Bond ETFs: the Ins and Outs

As fund observer, I would recommend investing in municipal bonds and take advantage of its tax-free feature. There are some great values in municipal bonds right now, which are yielding more than U.S. Treasury bonds as reports would say. If you're shopping for munis, keep a few pointers in mind. First, not all so-called tax-exempt bonds really are tax-exempt. While most munis pay interest that is free from federal income taxes, some types pay interest that's subject to the alternative minimum tax, or AMT. So if you're among the four million taxpayers ensnared by the AMT, be sure to ask whether any bonds you're considering are "AMT bonds." Next make sure you have access to accurate bond pricing which you can gain access here http://www.bondview.com/ among other data such as real time trading data, professional charts, bond value price,yield curves by state and bond type, rating info and bond industry news and discussions. Good luck! Hope this helps.

Shane Col of CA 1:45PM March 04, 2010