ETFdb Logo
  • ETF Database
  • Channels
    • Themes
      • Active ETF
      • Alternatives Channel
      • Artificial Intelligence
      • China Insights
      • Climate Insights
      • Core Strategies
      • Crypto
      • Disruptive Technology
      • Energy Infrastructure
      • ETF Building Blocks
      • ETF Education
      • ETF Investing
      • ETF Strategist
      • Faith-Based Investing
      • Financial Literacy
      • Fixed Income
      • Free Cash Flow
      • Innovative ETFs
      • Invest Beyond Cash
      • Leveraged & Inverse
      • Modern Alpha
      • Portfolio Strategies
      • Tax Efficient Income
    • Asset Class
      • Equity
        • U.S. Equity
        • Int'l Developed
        • Emerging Market Equities
      • Alternatives
        • Gold/Silver/Critical Materials
        • Crypytocurrency
        • Currency
        • Volatility
      • Fixed Income
        • Investment Grade Corporates
        • US Treasuries & TIPS
        • High Yield Corporates
        • Int'l Fixed Income
    • ETF Ecosystem
    • ETFs in Canada
    • Market Outlook
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Database Categories
    • Indexes
    • Scenario Analysis
    • Watchlists
    • Head-To-Head ETF Comparison Tool
    • Mutual Fund To ETF Converter
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
  • Research
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Index Education
    • Index Insights
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Multimedia
    • ETF 360 Video Series
    • ETF of the Week Podcast
    • Gaining Perspective Podcast
    • ETF Prime Podcast
    • Video
  • Company
    • About VettaFi
    • Get VettaFi’ed
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. Core Strategies Channel
  2. Look Out for the Midterm Muni Bond Boom in TAXF  
Core Strategies Channel
Share

Look Out for the Midterm Muni Bond Boom in TAXF  

Nick Peters-GoldenNov 17, 2022
2022-11-17

The partisan swing – or lack thereof – in last week’s midterm elections dominated the news, but investors may also want to note the significant investment in municipal bonds voters made. The American electorate approved tens of billions in municipal project funding on Election Day, which may interest investors in state-level municipal bond exposures in a diversified municipal bond ETF like the American Century Diversified Municipal Bond ETF (TAXF B).

Voters approved $57 billion out of $63 billion in funds on the ballot with results already available, with as much as $90 billion still up for grabs for state and local governments. While municipal bonds lost some of their luster so far this year, communities across the United States still face significant infrastructure concerns, from roads and bridges to new schools and water pipes.

$35 billion will be bonded for in Texas as the Sun Belt continues to grow, while high school construction costs continue to take large bites out of public spending. As the Biden Administration’s infrastructure bill funds begin to get out into projects around the country, states may continue to be emboldened to address longtime infrastructure items on their lists.

Municipal bonds’ tax friendliness may also prove attractive to investors with tax time coming and tax-loss harvesting opportunities abounding in mutual funds and some of the bigger equity ETFs. As such, investors across the tax spectrum, but especially those in higher tax brackets, may want to consider the merits of TAXF.

The actively managed, diversified municipal bond ETF charges a 29 basis point fee. TAXF allocates up to 35% of its portfolio to riskier municipal securities based on the market environment, having returned 1.7% over the last month compared to -3.7% returns over the last three months.

TAXF has added $20 million in net inflows for the last three months and $68 million over six months according to VettaFi as well. The ETF is currently priced at $48.80, still a distance from its 200-day simple moving average of $50.2, while also offering an annual dividend yield of 1.88%.

While the Republicans’ victory in the House of Representatives may cause a divided and gridlocked Federal government, the last election also spawned several new trifectas in state governments in which one party has total control. That, and voters’ direct support for billions in spending, may create a fertile environment for investors via TAXF and its diversified approach to municipal bonds and their yields.

For more news, information, and strategy, visit the Core Strategies Channel.

Loading Articles...
Our Sites
  • VettaFi
  • Advisor Perspectives
  • ETF Trends
Tools
  • ETF Screener
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Database Pro
More Tools
  • Financial Advisor & RIA Center
Explore ETFs
  • ETF News
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Information
  • Contact Us
  • Terms of Use and Privacy Policy
  • © 2025 VettaFi LLC. All rights reserved.

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X