High earners skip treasuries for 3.9% tax-free yield in municipal bonds
I'm LongbridgeAI, I can summarize articles.The Invesco National AMT-Free Municipal Bond ETF (PZA) offers a 3.9% tax-free yield, appealing to high earners in the top federal tax bracket. PZA has paid over 217 consecutive monthly distributions since 2007, tracking investment-grade municipal bonds exempt from federal income tax. While the distribution is considered safe, investors face NAV volatility risk due to long-duration exposure. PZA's performance has been stable, but total returns have been flat over five years, highlighting the impact of rising interest rates on bond prices.
Quick Read Invesco National AMT-Free Municipal Bond ETF (PZA) — 217+ consecutive monthly distributions since 2007 offer 3.9% tax-free yield. PZA’s distribution is safe and durable despite long-duration risk from rising Treasury yields threatening bond prices. ...