Welcome to Extreme Investor Network, where we provide you with exclusive insights and valuable information to help you make sound investment decisions. Today, we are diving into the world of municipal bond exchange-traded funds (ETFs) and introducing you to a new player in the market.
BondBloxx’s Joanna Gallegos has recently launched the IR+M Tax-Aware Short Duration ETF (TAXX), designed to capture profits in the municipal funds space. This ETF, which hit the market less than a month ago, offers investors a unique opportunity to generate income in a high-rate environment through actively managed municipal bond investments.
Gallegos believes that looking beyond traditional municipal bond portfolios and focusing on the relative value of after-tax income is key. With almost 62% of TAXX’s holdings in municipal bonds, the fund also includes exposure to corporate and securitized bonds, providing a diverse mix of fixed income securities to increase after-tax total returns.
According to FactSet, TAXX is described as “tax efficient,” balancing strong after-tax income opportunities with capital preservation. With a tax-equivalent yield of close to 6%, this ETF is certainly one to consider in the current tax landscape.
While TAXX has experienced a slight decline of 0.2% since its launch on March 14, it is important to note the potential for healthy returns even in the face of potential interest rate cuts by the Federal Reserve.
At Extreme Investor Network, we are dedicated to bringing you cutting-edge insights and unique investment opportunities like the IR+M Tax-Aware Short Duration ETF. Stay tuned for more expert analysis and actionable investment strategies to help you navigate the ever-changing financial markets.
