Municipal bonds
Building a pathway to tax-advantaged income
Even as many investments falter amid high inflation and rising interest rates, municipal (muni) bonds may offer unique opportunities for stable, tax-advantaged income in today’s market.
Issued by state and local governments to fund essential projects, municipal bonds have historically shown high credit quality and resilience relative to other fixed income assets. Their interest payments are generally exempt from federal – and often state – taxes, which means investors can keep more of what they earn compared to taxable bonds.
In the current high-rate environment, elevated tax-exempt yields on muni bonds provide a compelling opportunity to earn attractive returns while still benefiting from valuable tax breaks.
Why invest in municipal bonds
Tax-advantaged income
Offering interest income that’s often tax-free, municipal bonds help investors maximize their after-tax yield vs. taxable bonds. For higher-bracket investors, tax-exempt municipal bond interest may boost take-home income without raising tax burden.
High credit quality + stability
Backed by state and local governments, municipal bonds have historically shown strong credit quality and low default rates, supporting income reliability and capital preservation.
Resilience in changing markets
Across inflation and rate cycles, municipal bonds have historically held up well, helping moderate portfolio volatility and improve diversification for long-term investors.
Why Aberdeen Investments for municipal bonds investing
Deep municipal expertise
With decades in munis, Aberdeen’s dedicated specialists pair rigorous credit research with ongoing monitoring across investment-grade municipal bonds and high-yield markets to identify opportunities and manage risk seeking consistent outcomes across market environments.
Broad range of municipal solutions
Aberdeen offers a broad suite of municipal bond strategies spanning ultra-short to high-yield municipal bonds and across maturities and credit tiers. This range lets investors tailor muni exposure for conservative, short-term income or higher-yield opportunities through cost-effective, transparent solutions.
Long-term partnership & client support
We view investing as a long-term partnership, supporting municipal bond clients with ongoing education, market insights, and municipal bond portfolio guidance. Our commitment goes beyond products to help investors use munis effectively to meet their income goals with confidence.
Featured products
abrdn Ultra Short Municipal Income Active ETF
Ticker: AMUN
abrdn Short Duration High Yield Municipal Fund
Class A
abrdn Ultra Short Municipal Income Fund
Class A
abrdn National Municipal Income Fund
Ticker: VFL
