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3 Muni Bond Funds to Ease Interest-Rate Jitters

Our analysts think these holdings are resilient in the face of rising interest rates.

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Jeremy Glaser: With interest rates rising, many muni bond investors are getting nervous. We talked to our analysts to share three of their favorite muni bond funds they think will help ease some of these jitters.

Beth Foos: Funds in Morningstar's muni National Short category generally take on less interest-rate risk than the typical national muni bond fund. Because of this, they are less likely to see a significant impact on returns if interest rates rise. Investors that are interested in tax efficiency as well as being concerned for rising interest rates are well served by taking a look at this category.

Elizabeth Foos does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.

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