With Higher Taxes on the Way, Consider Municipal Bond ETFs

Baltimore Sun reporter

Ambrose notes that the traditionally safe investment class has recently become more risky as bond insurance companies have seen their own financial troubles and the slowing economy negatively impacts state and local tax revenue.

However, the higher risk has resulted in higher yields and with the upcoming election bringing the promise of higher taxes, now might be a good time to look into Municipal Bond ETFs.

The SPDR Lehman Municipal Bond ETF (TFI) tracks the U.S. long term tax-exempt bond market and includes general obligation, revenue, pre-refunded and insured issues. Local bonds from California, New York, Nevada and Texas make up the top holdings.

A complete listing of Tax-Exempt ETFs is available in the ETF Directory at ETF MarketPro.

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