Why Muni Bond ETFs Make Sense in 2025
The Internal Revenue Service has announced new tax brackets for 2025. This makes now an ideal time to revisit the benefits of muni bond ETFs.
MUB: Rates Headed In Right Direction, But Supply Should Increase
The iShares National Muni Bond ETF is poised for strong performance due to its high duration and expected rate cuts by the Fed. Municipal bond issuances are likely to increase, but the overall duration effect from falling rates will be favorable for MUB. MUB has minimal credit risk, with most issuers rated around AA, and offers a low expense ratio of 0.05%.
MUB: Buy For The Tax-Equivalent Yield Of Nearly 6%, Stay For The Capital Gains
iShares National Muni Bond ETF offers tax-free municipal bond exposure with $37.6 billion in assets under management and a low expense ratio of 0.05%. The ETF has a 30-day SEC yield of 3.49% and potential for capital gains, despite lower one-year and five-year performance numbers. Reasons to consider buying MUB include potential tax increases, expiration of Trump tax cuts, late economic cycle, and Federal Reserve projections.
Warren Buffett's Nebraska grabs top spot in new ranking of state finances
States can't rely on affordability alone to help drive an influx of newcomers from higher-cost states to boost their tax revenues and overall finances.
