TFI - BAB: A Muni Bond Play But Suboptimal Results

2024-04-09 18:03:35 ET

Summary

• Invesco Taxable Municipal Bond ETF offers exposure to the municipal bond market, providing diversification and potential higher yields.
• The BAB ETF invests primarily in high-grade bonds, with a concentration in the Local Authorities sector, which can be both a strength and a risk.
• BAB has underperformed compared to other muni bond funds, potentially due to its duration and sampling strategy, making it a less exciting investment option.

The municipal bond market needs more attention from investors in a world where everyone is seemingly YOLOing into equities. If you agree, the Invesco Taxable Municipal Bond ETF ( BAB ) may be worth considering, as it's a part of the muni market most wouldn't necessarily consider....

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