"When retirees face higher tax brackets from pension income, Social Security, and portfolio withdrawals, every percentage point of yield eaten by taxes matters. JPMorgan Municipal Bond ETF (NASDAQ:JMUB) addresses this challenge through federally tax-exempt municipal bond income. For retirees in the 32% bracket, the fund's 3.5% yield delivers the equivalent purchasing power of a 5.1% taxable return. This tax efficiency became even more accessible following a 2025 merger that created the largest active municipal bond ETF with enhanced liquidity and scale."
"JMUB generates monthly tax-free income while preserving capital through a balanced approach to credit quality and duration. The fund maintains an A+ average credit rating by focusing on investment-grade issuers, avoiding the default risks that come with reaching for yield in lower-rated municipal debt. With roughly six years of effective duration, the fund occupies a sweet spot that offers more yield than money market funds while remaining less volatile than long-duration portfolios."
JMUB provides federally tax-exempt monthly income aimed at increasing after-tax purchasing power for investors in higher tax brackets. The fund targets investment-grade municipal issuers, maintaining an A+ average credit rating and avoiding higher default risk associated with lower-rated debt. Active management adjusts credit quality and duration to capture relative value, and the portfolio holds about 1,750 positions across state and local government debt for broad diversification. With roughly six years of effective duration, JMUB offers more yield than money market funds with less volatility than long-duration portfolios. A 2025 merger increased scale and liquidity, and a five-year return of 6.3% outpaced a passive national muni ETF by over 200 basis points despite a 0.18% expense ratio.
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