From Nasdaq: 2025-05-09 06:33:00

Municipal bonds, or “muni bonds,” are issued by governmental entities to fund public projects and provide tax-free interest payments. Investors seeking stable tax-free income may consider municipal bonds mutual funds, like Colorado Bondshares HICOX, Vanguard Limited Term Tax-exempt Fund VMLTX, and Invesco Limited Term Municipal Income Fund AITFX, all top-ranked with Zacks Mutual Fund Rank #1.

Colorado Bondshares HICOX focuses on tax-exempt bonds in Colorado, with 5-year annualized returns of 4.4% and 30.8% of net assets in Miscellaneous Bonds. Vanguard Limited Term Tax-exempt Fund VMLTX invests in high-quality municipal bonds, aiming for a 2-6 year maturity average, with 5-year annualized returns of 2.6% and an expense ratio of 0.17%.

Invesco Limited Term Municipal Income Fund AITFX seeks income exempt from federal tax with investment-grade municipal debt securities, providing a 2.4% 5-year annualized return and managed by Jack Connelly since April 2016. For more information on municipal bond funds, investors can access a complete list with Zacks Rank and past performance.

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Read more at Nasdaq: Buy These 3 Top-Ranked Municipal Bond Funds for Stable Returns