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Best Tax-Free Municipal Bond Funds

edited March 13 in Fund Discussions

/7 Best Tax-Free Municipal Bond Funds
Municipal bonds are loved because they let investors keep more cash.

U.S. News & World Report

Line your pockets with municipal bonds.

Municipal bonds, issued by government entities such as states and counties, enjoy a special place in the hearts of income investors for one simple reason – they let investors keep more cash. Municipal bonds are typically exempt from federal taxation, and if issued within your state, the interest will also be state tax exempt. An investor in the 24% federal tax bracket would need a nearly 4% yield in a normally taxed bond to get the same take-home yield as a 3% municipal bond. The best provide steady income and balance out a risky stock portfolio. Mark Marinella, fund manager at Capital Group, prefers “actively managed, long-term strategies.” As volatility roils the stock market, here are seven of the best municipal bond funds for tax-exempt income.

Best tax-free municipal bond funds:

SPDR Nuveen Bloomberg Barclays Short Term Municipal Bond ETF (SHM)
Tax-Exempt Bond Fund of America (AFTEX)
Columbia Multi-Sector Municipal Income ETF (MUST)
Putnam Municipal Opportunities Trust (PMO)
iShares Ibonds Dec 2022 Term Muni Bond ETF (IBMK)
Nuveen High Yield Municipal Bond Fund A (NHMAX)
Vanguard Tax-Exempt Bond ETF (VTEB)/

Will these vehicles also bankrupt/dry up due to limited funds


  • PTIMX munis: down -1.64% YTD.
    sister fund, PTIAX multi-sector bonds +2.02%
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