Written by Nick Ackerman, co-produced by Stanford Chemist
Municipal bond funds are a great way to gain exposure to a diversified portfolio of these fixed-income assets. These assets provide a safer income, second only to U.S. treasuries for those that live in the U.S. The primary driver for investing in muni bonds and funds that have muni exposure is that they provide federally tax-free income for shareholders. In the CEF structure, this tax advantage is passed through to shareholders.
Additionally, safety is another reason worth exploring muni offerings. The four funds we are covering today