Which Is the Better iShares Bond ETF for Your Tax Bracket: IGIB or MUB?
IGIB yields more on paper, but MUB keeps more in your pocket if you are in a higher tax bracket. Here is how to figure out which one is right for you.
Overview
iShares 5-10 Year Investment Grade Corporate Bond ETF (NASDAQ:IGIB) offers higher yield through corporate debt, while iShares National Muni Bond ETF (NYSEMKT:MUB) provides tax-exempt municipal bonds with lower historical volatility.
The iShares National Muni Bond ETF (NYSEMKT:MUB) and the iShares 5-10 Year Investment Grade Corporate Bond ETF (NASDAQ:IGIB) are both massive fixed-income vehicles managed by iShares. While the muni bond fund focuses on state and local government debt to provide potentially tax-advantaged income, the corporate bond fund targets high-quality business debt with intermediate maturities. This comparison highlights how these two funds offer distinct risk-reward profiles for investors seeking stability or higher monthly payouts.
Details
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
Source
Originally published at www.fool.com.