iShares National Muni Bond ETF: $MUB

The iShares National Muni Bond ETF (MUB) is a popular exchange-traded fund (ETF) that aims to provide investors with exposure to the US municipal bond market. Municipal bonds, also known as "munis," are debt securities issued by states, cities, and other local government entities to finance public projects such as roads, schools, and water treatment facilities. Munis are attractive to investors because the interest earned on them is typically tax-free at the federal level and, in some cases, at the state and local levels as well.

MUB is managed by BlackRock, one of the world's largest asset managers. The ETF tracks the S&P National AMT-Free Municipal Bond Index, which includes a broad range of investment-grade muni bonds issued by state and local governments across the US. As of December 2021, MUB had a total of over 2,400 holdings with an average maturity of around 15 years.

One of the key advantages of MUB is its diversification. By investing in a broad range of muni bonds, the ETF helps to spread risk and reduce the impact of any individual bond default. MUB has a relatively low expense ratio of 0.07%, which is lower than the average for muni bond funds.

MUB is a popular choice for investors looking to add tax-free income to their portfolios. It is particularly suitable for high-income earners who are looking to reduce their tax burden. However, it's important to note that muni bond prices can be affected by changes in interest rates and credit risk, and the fund's performance may vary as a result.

MUB can be purchased through a brokerage account, and it can be held in a variety of account types, including individual retirement accounts (IRAs), taxable accounts, and trusts. Investors should carefully consider their investment objectives and risk tolerance before deciding whether MUB is a suitable investment. It is always a good idea to consult with a financial advisor or tax professional before making any investment decisions.