On Thursday, BondBloxx expanded its selection of ETF coverage with the release of two new funds. Each of these funds is actively managed and has a net expense ratio of 35 basis points.
“Since launching TAXX, we’ve had numerous conversations with advisors who aren’t just looking to the strategy as a municipal bond replacement, but who have been actively allocating to the strategy as part of their core bond holdings,” said Tony Kelly, Co-Founder of BondBloxx. “TXXI is positioned to become a key component of the intermediate sleeve of a core bond portfolio.”
First up is the BondBloxx IR+M Tax-Aware Intermediate Duration ETF (TXXI). TXXI looks to provide particularly competitive after-tax income with the added benefit of preservation of capital.
As the fund’s title implies, TXXI looks for intermediate-duration offerings that could provide significant after-tax income. At least half of the fund’s total assets will be allocated into munis with interest that is immune from U.S. federal income tax. Most of the fund’s investments will be used for investment-grade securities, though TXXI may invest in a smaller selection of junk bonds as well.
“Since launching TAXX, we’ve had numerous conversations with advisors who aren’t just looking to the strategy as a municipal bond replacement, but who have been actively allocating to the strategy as part of their core bond holdings,” noted Kelly. “TXXI is positioned to become a key component of the intermediate sleeve of a core bond portfolio.”
An Opportunity for Massachusetts Residents
For Massachusetts residents, the BondBloxx IR+M Tax-Aware ETF for Massachusetts Residents (TAXM) may be worth consideration. This fund’s goal is to provide resonating after-tax revenue for Massachusetts residents, along with preservation of capital.
Much like TXXI, TAXM focuses its assets on investment grade assets. Additionally, the fund puts at least half of its portfolio into municipal securities, while leaving room for high yield bonds.
Where TAXM stands out is through its tax-conscious strategy. This fund looks for fixed income securities with interest payments that are exempt from both federal and Massachusetts income taxes. As such, this fund could thus serve as a crucial means for building income for investors based in The Bay State.
These new funds launch during a particular opportune moment for BondBloxx. Recently, BondBloxx celebrated crossing the $4 billion threshold in ETF AUM.
See More: BondBloxx Fixed Income ETFs Surpass $4 Billion in Total AUM
“BondBloxx has been one of the innovators in the fixed income industry,” added Todd Rosenbluth, Head of Research at VettaFi. “It is great to see them expand their lineup ahead of the Exchange conference."
Members of the BondBloxx team, including Kelly, will be present at the Exchange Conference to discuss approaches to fixed income investing. To learn more about Exchange and register to attend, visit exchangeetf.com.
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