FMB - BAB: A Different View On Muni Bonds But Not A Better One
2024-01-26 07:00:00 ET
Summary
- Invesco Taxable Municipal Bond ETF invests in taxable debt issued by U.S. states, their subdivisions and their entities.
- BAB has a higher risk profile compared to the benchmark iShares National Muni Bond ETF.
- The BAB ETF has outperformed some competitors and shows a higher yield, with a caveat about taxes.
- Decay in inflation-adjusted value and income stream make this fund unattractive as a long-term investment.
Strategy
Invesco Taxable Municipal Bond ETF (BAB) started investing operations on 11/17/2009 and tracks the ICE BofA US Taxable Municipal Securities Plus Index. It has 722 holdings, a trailing 12-month distribution yield of 3.74%, and an expense ratio of 0.28%. Distributions are paid monthly....
BAB: A Different View On Muni Bonds, But Not A Better One