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Which Is the Better iShares Bond ETF for Your Tax Bracket: IGIB or MUB?

The Motley Fool·
Which Is the Better iShares Bond ETF for Your Tax Bracket: IGIB or MUB?

The article compares two iShares bond ETFs: IGIB (corporate bonds) offers a higher 4.90% yield but is fully taxable, while MUB (municipal bonds) provides a 3.20% yield with federal tax exemption. For high-bracket taxpayers in taxable accounts, MUB's after-tax returns can match or exceed IGIB's despite the lower stated yield. MUB also demonstrates lower volatility and shallower drawdowns, making it more stable during market stress. IGIB is better suited for lower-bracket investors or those in retirement accounts.

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