ETF Bond Type: High Yield Munis

ETFs, or exchange-traded funds, are investment vehicles that trade on stock exchanges and track a variety of underlying assets. ETFs typically offer diversification, low costs, and liquidity. High Yield Munis ETFs invest in municipal bonds with high yields. Municipal bonds are debt securities issued by state and local governments to finance public projects such as bridges, roads, and schools. Interest on municipal bonds is typically exempt from federal income tax, making them an attractive investment for taxpayers in high tax brackets. High Yield Munis ETFs offer exposure to the municipal bond market without the need to purchase individual bonds. ETFs are also more liquid than bonds, which can be difficult to sell prior to maturity. Nevertheless, investors should be aware that ETFs carry risks similar to those of other bond investments, including credit risk, interest rate risk, and call risk.