May 26, 2021
U.S. president Joe Biden’s $2 trillion infrastructure proposal was expected to give municipal bonds a boost, and so far, the proof is in the pudding. Data from municipal bond space show that inflows have been surging, giving exchange traded fund (ETF) investors something to cheer about.
With Biden’s proposal, local and state government bonds are expected to help fund the ambitious plan to improve the country’s infrastructure. From the traditional roads and bridges to new initiatives to bolster internet access and renewable energy sources, municipal bonds will be at the forefront of the plan’s funding.
For Debt Stability and Tax Exemption, Consider Muni Bond ETFs May 12, 2021
With the tax deadline around the corner, it’s not too late to start thinking about next year by adding tax-free municipal bonds through assets like the
VTEB tracks the Standard & Poor’s National AMT-Free Municipal Bond Index, which measures the performance of the investment-grade segment of the U.S. municipal bond market. MUB seeks to track the investment results of the S&P National AMT-Free Municipal Bond IndexTM, which also measures the performance of the investment-grade segment of the U.S. municipal bond market.
The sampling approach means that both funds hold a subset of bonds within the index in order to replicate the yield, duration, and credit quality of the debt. This method allows the funds to avoid trading expensive bonds that could harm performance and, in addition, minimize tracking errors.
May 11, 2021
The widely followed S&P National AMT-Free Municipal Bond Index, a broad gauge of municipal debt, is modestly higher over the past month.
Generally speaking, municipal bonds don’t deliver big gains in short time frames, but the index’s recent uptick confirms investors are returning to an asset class many retirees lean on for reducing risk and generating income.
“Investors have poured a net $39 billion into municipal-bond mutual funds this year through Thursday, according to data compiled by Municipal Market Analytics, the most over the same period since 2008,” reports Sebastian Pellejero for the Wall Street Journal. “Returns on the debt, which local governments use to fund public works such as sewers or bridges, have beaten those of corporate bonds and Treasurys.”