##  [# Municipal Bonds Definition](/etf-education-center/etf-glossary/municipal-bonds) 

 

# Municipal Bonds Definition

 

 

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



 

 

 

 

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[By ETF Glossary](/authors/etf-glossary)

 Jan 16, 2024

 Edited by: ETF.com Staff

 

 

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## 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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  ETF Glossary is etf.com’s collection of key terms and definitions related to exchange-traded funds. ETFs are investment funds that are traded on stock…   [View Bio](/authors/etf-glossary)

 



 

 


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