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Most retirees compare bond yields at face value and quietly leave money on the table.
VanEck High Yield Muni ETF offers a high tax-equivalent yield of ~7.38% for top-bracket investors, driven by high-yield, longer-maturity municipal bonds. HYD's attractive yield comes with significant interest-rate sensitivity, as its ~9.35-year modified duration exposes investors to considerable downside from rate increases. Rising inflation and energy prices, combined with a hawkish rate outlook, create a challenging environment for HYD's long duration, including considerable lower-rated muni exposure.
Treasury's pivot toward long-bond buybacks gives duration buyers their first clear green light in months — and the November midterms may add a second leg. Key takeaways Treasury's decision to at least double 10- to 30-year buybacks is a policy signal, not a technical footnote.
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The iShares High Yield Muni Active ETF (HIMU) is an actively managed portfolio holding approximately 900 municipal bonds.
Muni ETFs just posted record inflows. Jim Colby on why low volatility, strong risk-adjusted returns, and tax-advantaged yields keep drawing investors in.
A married couple filing jointly with $400,000 of taxable income occupies one of the highest tax brackets many affluent retirees and professionals will encounter before reaching the top tier. At that income level, federal taxes already take a meaningful bite out of interest income, and investors in high-tax states can face an even steeper combined burden.... This $750,000 Municipal Bond Sleeve Pays a High-Earner Couple $33,000 a Year of Federal-Tax-Free Income
The 10-year Treasury yields 4.43%, which sounds competitive until a high earner runs it through the tax screen.