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Best ETFs for Tax-Efficient Investing

Funds whose income is exempt from federal tax, mostly municipal bonds, or whose structure keeps taxable distributions low. The tax treatment depends on where you live and how you hold the fund. Each fund is graded against the other funds in its own category.

Categories for Lower Taxes

The categories for Lower Taxes, by Group
CategoryTop graded fundCategory return, YTDReturn YTDIts funds’ return since 1 January, weighted by assets.AssetsFundsCheapest fundA or B share

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Municipal Bond

Other Municipal BondAVTEB+0.5%$164B63Also top graded40 of 63
Short-Duration Municipal BondsASUB+1.7%$41.1B27AVTES19 of 27
High-Yield Municipal BondsACGHM+1.3%$19.8B18AFMUB14 of 18
Intermediate Municipal BondsATAXI+1.0%$15.7B19Also top graded12 of 19
Long-Duration Municipal BondsBVTEL0.0%$3.1B5BLMUB3 of 5

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Target Maturity Bond

Defined-Maturity MunicipalAIBMP+1.1%$5.29B32AIBMQ14 of 32

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