FYI: Muni bonds—as measured by the ICE BofAML Municipal Index—have already delivered higher returns this year than they did in the entire 2018 calendar year. It’s a pocket of the fixed-income market that has been benefiting from strong demand and limited supply, and many are calling for more growth ahead.
That demand could remain supported by new rules impacting state and local tax (SALT) deductions. Until last tax season, taxpayers could deduct local and state taxes—things like income and property taxes—in their federal income tax returns without limits. But new legislation under the Tax Cuts and Jobs Act now caps SALT deductions to $10,000.
This limitation may have you looking for other ways to manage your tax bill—and munis are well-known for delivering tax-exempt interest. It’s a fixed-income darling for tax-sensitive investors.
Regards,
Ted
https://www.etf.com/sections/features-and-news/how-pick-muni-bond-etf?nopaging=1
