VTEB ETF

In a changing bond market landscape, more wealth managers are recommending municipal bonds. The Federal Reserve is set to ease monetary policy and a new president will take office in 2025.

Forthcoming market volatility from an election year may have fixed income investors shying away from bonds. However, it's an ideal time to get municipal debt exposure.

A forthcoming presidential election might create some angst among prospective investors in municipal bonds. However, history typically shows that election years don't produce major volatility swings.

VTEB is a straightforward municipal bond index ETF offered by Vanguard, featuring a tax-advantaged 3.0% dividend yield. Many investors may find that other ETFs offer higher after-tax yields and additional advantages compared to VTEB.

Municipal bonds are praised for the tax-exempt income they offer to investors seeking fixed income. A deeper examination reveals the concrete benefits that municipal bond sales can bring to the communities receiving the funding.

Record issuance in municipal bonds is injecting the debt market with a healthy dose of supply. Combined with elevated yields, this puts municipal bonds in play for any bond portfolio to benefit.

Fixed income investors who haven't already strategized about how they want to limit their tax burden in 2024 may want to consider municipal bonds. Municipal bonds are lauded in the bond markets for their relative stability versus other riskier debt holdings.

Valuations for muni bonds are currently attractive, trading at levels not seen since the global financial crisis. And with munis posting 5.9% total returns last month, this asset class offers investors the opportunity to enjoy high rewards with low risk.

Valuations for municipal bonds are very attractive right now. And as yields remain strong, so do their fundamentals.