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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
CategoryFundsAssetsCategory return, YTDA or B shareTop graded fundCheapest fund

Built for this goal

Municipal Bond

Other Municipal Bond63$160B−2.1%37 of 63AVTEBAVTEB
Short-Duration Municipal Bonds27$39.4B+0.7%22 of 27AVTESAVTES
High-Yield Municipal Bonds19$18.6B−1.4%14 of 19ACGHMAFMUB
Intermediate Municipal Bonds19$14.2B−1.5%12 of 19ATAXIATAXI
Long-Duration Municipal Bonds5$2.86B−3.2%3 of 5BLMUBBLMUB

Also fits this goal

Target Maturity Bond

Defined-Maturity Municipal32$5.11B0.0%13 of 32AIBMPAIBMP

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