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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+0.1%$163B63Also top graded40 of 63
Short-Duration Municipal BondsASUB+1.6%$41B27AVTES19 of 27
High-Yield Municipal BondsACGHM+0.9%$19.6B18AFMUB14 of 18
Intermediate Municipal BondsATAXI+0.6%$15.6B19Also top graded12 of 19
Long-Duration Municipal BondsBLMUB−0.6%$3.09B5Also top graded3 of 5

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Target Maturity Bond

Defined-Maturity MunicipalAIBMQ+1.0%$5.27B32Also top graded14 of 32

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