Good question, thanks for asking! I have stayed away from munis for multiple reasons. Since I am no longer acting in a fiduciary context as I did until I retired an advisor, individual tax situations make it difficult to discuss muni ETFs. More significantly, I have never had much interest in that area, as I am a total return investor and I put a high emphasis on credit quality. So while US Treasuries have their drawbacks, to me they are the purest way to invest in interest rate movements and pre-tax income return in the bond space. I also have my concerns long-term about many corporate and municipal issuers. Ticking time bomb in the case of some serially underfunded, poorly-managed segments of both worlds.
I hope that answers the question for you and other subscribers. Typical Rob the risk manager, eh? LOL.
Appreciate the reply and your perspective. I asked this since I/my wife are borderline going into/straddling a higher tax bracket (I know, no tax or investment advice!!) and I have stashed treasury ETF's in retirement accounts (to prevent federal taxation in taxable accounts) and use a ATM tax exempt Muni money market for liquid funds in taxable account. I have recently purchased 2 muni CEF's (I have invested in CEF's successfully for most of my investment experience) in said taxable account, thus the Muni ETF question. Your unique experience as a past advisor is appreciated to me in this educational platform...as is your willingness to share the nuances within specific asset classes during your decades of service to your clients. I call this "value added" to your current subscribers. Thanks again Rob!
Thanks for saying so. As I said on the live session the other day. I think I’m in this for the right reasons. I suspect that’s why I’m not easy to find. We don’t yell loudly about our work 😀
Rob in your ETF work to you follow any Municipal Bond ETF's? Thanks in advance, curious if you see anything similar to the variety of treasury ETF's your chart.
Good question, thanks for asking! I have stayed away from munis for multiple reasons. Since I am no longer acting in a fiduciary context as I did until I retired an advisor, individual tax situations make it difficult to discuss muni ETFs. More significantly, I have never had much interest in that area, as I am a total return investor and I put a high emphasis on credit quality. So while US Treasuries have their drawbacks, to me they are the purest way to invest in interest rate movements and pre-tax income return in the bond space. I also have my concerns long-term about many corporate and municipal issuers. Ticking time bomb in the case of some serially underfunded, poorly-managed segments of both worlds.
I hope that answers the question for you and other subscribers. Typical Rob the risk manager, eh? LOL.
Thanks again for writing in on this.
Appreciate the reply and your perspective. I asked this since I/my wife are borderline going into/straddling a higher tax bracket (I know, no tax or investment advice!!) and I have stashed treasury ETF's in retirement accounts (to prevent federal taxation in taxable accounts) and use a ATM tax exempt Muni money market for liquid funds in taxable account. I have recently purchased 2 muni CEF's (I have invested in CEF's successfully for most of my investment experience) in said taxable account, thus the Muni ETF question. Your unique experience as a past advisor is appreciated to me in this educational platform...as is your willingness to share the nuances within specific asset classes during your decades of service to your clients. I call this "value added" to your current subscribers. Thanks again Rob!
Thanks for saying so. As I said on the live session the other day. I think I’m in this for the right reasons. I suspect that’s why I’m not easy to find. We don’t yell loudly about our work 😀
Rob in your ETF work to you follow any Municipal Bond ETF's? Thanks in advance, curious if you see anything similar to the variety of treasury ETF's your chart.