A Solid Choice for Broad Exposure to the U.S. Muni Market
This fund is the largest and most-liquid municipal-bond ETF.
Because municipal-bond interest is exempt from federal taxes, municipal-bond funds are most appropriate for investors seeking tax-exempt income--particularly those in high tax brackets--and fit best in taxable accounts. IShares National AMT-Free Municipal Bond (MUB) offers exposure to U.S. investment-grade tax-exempt municipal bonds. It may be a suitable core holding for investors looking to diversify their bond portfolios and obtain some tax relief. The Barclays U.S. Aggregate Bond Index does not include municipal bonds, so the fund can act as a complement to an existing core bond allocation.
High-profile bankruptcy filings in Detroit, Michigan (2013), and Stockton, California (2012), and, more recently, the substantial financial stress in Puerto Rico and the state of Illinois have increased volatility in the municipal-bond market over the past several years. Widespread credit concerns have largely subsided, however, as fundamentals have improved across the muni market in 2014 and 2015. Importantly, the fund does not have exposure to Puerto Rico or Stockton, and minimal exposure to Detroit (0.02%), which reduces its actual credit-risk exposure.
Elizabeth Foos does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.
Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.
We’d like to share more about how we work and what drives our day-to-day business.
We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.
How we use your information depends on the product and service that you use and your relationship with us. We may use it to:
To learn more about how we handle and protect your data, visit our privacy center.
Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.
To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.
Read our editorial policy to learn more about our process.