An asset class that includes bonds issued by US state and local governments. While these bonds aren’t as safe as US Treasuries (aka T-bonds), most municipal bonds have investment-grade credit quality ratings, and historically, they’ve defaulted (aka been unable to pay) less than 2% of the time. Plus, municipal bonds’ interest is exempt from federal (and potentially state) taxes.
Ellevest Digital and Premium investment portfolios that include Municipal Bonds in the investment mix do so through mutual or exchange-traded funds (ETFs), not individual bonds.
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