Ticker: BAB

Invesco Taxable Municipal Bond ETF

Invests in US dollar-denominated taxable municipal debt publicly issued by US states and territories, and their political subdivisions.

Product details

Why invest in BAB?

The Invesco Taxable Municipal Bond ETF is designed for investors seeking yield by investing in US taxable municipal bonds.

★★★★★
5-star overall Morningstar rating - Long-Term Bond Category

As of 9/30/2024 the Fund had an overall rating, based on risk-adjusted returns, of 5 stars out of 33 funds and was rated 4 stars out of 33 funds, 4 stars out of 32 funds and 5 stars out of 25 funds for the 3-, 5- and 10-year periods, respectively.

Attractive yield potential

Taxable municipal bonds don't have the same tax advantages of tax-exempt municipal bonds but they may offer higher potential yields.

Potential tax advantages

Taxable municipal bonds are often exempt from state and local income taxes for investors who reside in the state of issuance.

Secured by revenue streams

Taxable municipal bonds are secured with the same revenue streams and/or tax pledges that secure the tax-exempt bonds of the same issuers.

FAQ

Get timely answers to important questions regarding this product.

Taxable municipal bonds are issued by local governments to fund projects but may not have all the tax advantages of tax-emempt municipal bonds. Build America Bonds (BABs) are one example of taxable municipal bonds.

Income free from federal and, in some cases, state income taxes, can be appealing to any investor and especially to those in higher tax brackets.

Municipal bonds with fixed rates typically decline in price when interest rates rise.

BAB is based on the ICE BofAML US Taxable Municipal Securities Plus Index. The Index is designed to track the performance of US dollar-denominated taxable municipal debt publicly issued by US states and territories, and their political subdivisions, in the US market.

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Footnotes

  • The Invesco Taxable Municipal Bond ETF (the “Fund”) seeks to track the investment results (before fees and expenses) of the ICE BofA US Taxable Municipal Securities Plus Index (the “Underlying Index”).

  • Source: Morningstar Inc. Ratings are based on a risk-adjusted return measure that accounts for variation in a fund's monthly performance, placing more emphasis on downward variations and rewarding consistent performance. Open-end mutual funds and exchange-traded funds are considered a single population for comparison purposes. Ratings are calculated for funds with at least a three year history. The overall rating is derived from a weighted average of three-, five- and 10-year rating metrics, as applicable, excluding sales charges and including fees and expenses. ©2024 Morningstar Inc. All rights reserved. The information contained herein is proprietary to Morningstar and/or its content providers. It may not be copied or distributed and is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance does not guarantee future results. The top 10% of funds in a category receive five stars, the next 22.5% four stars, the next 35% three stars, the next 22.5% two stars and the bottom 10% one star. Ratings are subject to change monthly. Had fees not been waived and/or expenses reimbursed currently or in the past, the Morningstar rating would have been lower. Ratings for other share classes may differ due to different performance characteristics.