Just been looking into municipal bond funds lately and found some solid options worth considering if you're into stable, tax-free income. Basically these muni bonds are issued by states and cities to fund public projects, and the interest you earn is typically exempt from federal taxes, which is pretty nice if you're in a higher tax bracket.



So I came across three top municipal bond funds that seem to have decent track records. Colorado Bondshares (HICOX) has been pulling in around 4.4% annualized returns over five years and keeps most of its portfolio in Colorado tax-exempt securities. Then there's Vanguard's Limited Term Tax-exempt Fund (VMLTX) with 2.6% returns - they focus on higher-rated municipal bonds and keep the average maturity pretty short, around 2-6 years. Last one is Invesco's Limited Term Municipal Income Fund (AITFX) sitting at 2.4% returns, also targeting shorter maturities.

If you're the type who wants regular income without worrying too much about volatility, these top municipal bond funds could be worth a look. They're more stable than equity-heavy stuff but still give you better returns than just parking cash anywhere. The expense ratios are pretty reasonable too - Vanguard's at 0.17% which is solid. Not financial advice obviously, just sharing what I've been researching. You checking out any muni bond funds yourself?
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
Add a comment
Add a comment
No comments
  • Pin