Municipal Bonds Definition

Learn the definition of municipal bonds and other ETF terminology from the glossary.

Reviewed by: Staff
Edited by: Staff

Learn more about Municipal Bonds

Municipal Bond ETFs occupy a distinct niche within the fixed-income landscape, investing in debt securities issued by state and local governments. These tax-exempt bonds finance public projects and services, offering investors an avenue to generate income from interest payments while potentially enjoying tax advantages. Municipal Bond ETFs appeal to investors seeking both income and the opportunity to contribute to community development. By combining the attributes of fixed-income investments with the tax benefits associated with municipal bonds, these ETFs provide a unique and socially responsible dimension to investors' portfolios, aligning financial goals with civic contributions.

Related Terms

ETF Glossary is’s collection of key terms and definitions related to exchange-traded funds. ETFs are investment funds that are traded on stock exchanges, and they can encompass a wide range of asset classes, including stocks, bonds, commodities and more. Given the diverse range of ETFs and the complexity of financial markets, having a clear understanding of ETF-related terminology is instrumental for investors looking to make informed decisions, manage risks effectively and navigate the evolving landscape of ETF investments.