Shortly after
The funds, which are still awaiting SEC approval, will likely appeal to higher-income investors looking for the tax advantages of municipal bonds, which are typically not subject to federal taxes. Thus, municipal bonds frequently deliver higher after-tax returns than corporate or treasury bonds.
“This potentially will have a very attractive yield compared to most municipal bond mutual funds,” said financial adviser Marvin Appel, who believes the funds will probably charge fees of 20 basis points, compared to the average 64 basis points on municipal bond mutual funds.
“In the muni bond world, just a few percentage points can separate the winners from the losers, so costs are of paramount importance,” said Sonya Morris, editor of Morningstar ETFInvestor.
The staff of Money Management Executive ("MME") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MME, and have not prepared, sponsored, endorsed, or approved these summaries.
