Understand the pros and cons of muni bond investing with VanEck’s comprehensive guide.
Municipal bonds, commonly referred to as “munis,” are debt securities issued by states, cities, counties, and other state governmental entities to fund public projects. These bonds are a favorite among investors in high tax brackets seeking steady income with tax advantages, as they often provide tax-free interest at the federal and sometimes state and local levels.
By investing in munis, investors provide financing for essential community projects such as schools, highways, and hospitals while receiving regular interest payments.
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