Investors with a focus on tax-free income have two new choices to consider from Vanguard as the asset manager launches a pair of municipal bond exchange-traded funds.
Tax advantages The biggest selling point for municipal bond funds is the tax-free income they provide.
VTEC follows the S & P California AMT-Free Municipal Bond Index, while VTEI tracks the S & P Intermediate Term National AMT-Free Municipal Bond Index.
However, in November, $2.8 billion in assets flowed into intermediate-term muni bond funds, followed by another $2.3 billion in December, Morningstar found.
said Foos of municipal bond funds.
Persons:
Beth Foos, there's, VTEI, Jeffrey Johnson, Johnson, Morningstar, it's
Organizations:
Vanguard, California, Bond, Federal Reserve, Morningstar, York Life Investments, Free Municipal Bond Index, Free Municipal Bond, muni, Treasury
Locations:
California