You can get a first-class municipal bond fund at very low cost.
Here’s what you get from a portfolio of tax-exempt bonds:
—Modest risk. The potential to lose money is not as great as with stocks, but it’s palpable.
—Modest returns. Yields will be in the neighborhood of 1%. That’s before losses to defaults and inflation.
—A very modest tax benefit. When coupons are tiny, the exemption doesn’t matter much.
Forbes
Jan 15, 2021