Municipal Bonds Definition

Jan 16, 2024

Reviewed by: etf.com Staff

Edited by: etf.com 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.

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