How a $500,000 position in this Schwab muni ETF pays a married couple in the 32% bracket an extra $6,500 a year in after tax income
I'm LongbridgeAI, I can summarize articles.The Schwab Municipal Bond ETF (SCMB) offers tax-free income, providing a married couple in the 32% tax bracket with an extra $6,500 annually compared to taxable bonds. Launched in 2022 with a low 0.03% expense ratio, SCMB tracks the ICE AMT-Free Core U.S. National Municipal Index. It has attracted significant assets, holding $3.87 billion, and features a diversified portfolio of over 6,600 holdings to mitigate risk while offering competitive yields for high-net-worth investors seeking federal tax advantages.
Quick ReadA $500,000 muni bond investment saves a 32%-bracket couple $6,475 annually compared to equivalent taxable bonds with state tax applied.SCMB's 0.03% expense ratio and 3.59% yield edge out rivals MUB and VTEB while managing 6,695 bonds in one fund.NY and CA residents should choose state-specific muni ETFs, since out-of-state bond income get...