The article discusses a new ETF launched by BondBloxx’s Joanna Gallegos called IR+M Tax-Aware Short Duration ETF (TAXX) and its strategies for capturing profits in the municipal funds space. Here are three key highlights from the article:
1. The ETF, launched less than a month ago, aims to focus on the relative value of after-tax income in municipal bond portfolios. Gallegos sees actively managed municipal bond exchange-traded funds as an income-generating opportunity, even in a high rate environment where the Federal Reserve might cut interest rates.
2. TAXX’s holdings comprise almost 62% municipal bonds, with its largest muni holdings in states like Illinois, Pennsylvania, New Jersey, New York, and Alabama. The fund also includes exposure to corporate and securitized bonds, offering a mixed-bond approach to increase after-tax total returns.
Editorial content by Sierra Knightley
