- ORIGINAL NEWS
New ETF looks to profit from municipal bonds
- SUMMARY
Introducing BondBloxx’s Tax-Aware Short Duration ETF, TAXX, designed to maximize profits in the municipal funds market.
Launched recently, TAXX leverages the concept of after-tax income, enabling investors to focus on the true value of their earnings.
Unlike traditional municipal bond portfolios, TAXX incorporates a unique blend of municipal, corporate, and securitized bonds.
This diversified approach provides investors with a broader opportunity to enhance their after-tax total returns.
Joanna Gallegos, co-founder of BondBloxx, emphasizes that this ETF excels in a high-interest rate environment.
Even if the Federal Reserve initiates interest rate cuts later this year, TAXX is projected to generate solid returns.
As of now, TAXX boasts a tax-equivalent yield of approximately 6%.
With over 60% of its holdings invested in municipal bonds and strategic allocations in Illinois, Pennsylvania, New Jersey, New York, and Alabama, TAXX seeks to achieve a balance between tax efficiency and capital preservation.
Despite its recent launch, TAXX has already generated decent returns since its inception on March 14, making it an attractive investment option for those seeking income opportunities in these evolving market conditions.
- NEWS SENTIMENT CHECK
- Overall sentiment:
positive
Positive
“BondBloxx’s Joanna Gallegos is behind the IR+M Tax-Aware Short Duration ETF (TAXX) — which launched less than a month ago.”
“the firm’s co-founder and COO told CNBC’s “ETF Edge” on Monday”
Negative
“the five largest holdings by state as of Thursday were mostly state Illinois, Pennsylvania, New Jersey, New”
“As of Friday, TAXX is down 0.2% since its launch date”