With the expiration of the “Bush Era” tax cuts and the additional healthcare law taxes, taxpayers are feeling the pinch of higher taxes. Municipal bonds offer a possible solution.

  • Seek high-quality, low-volatility income. Municipal bonds have long offered a source of high-quality, low-volatility income.
  • Keep more of what you own. Municipals are unique in that they offer the benefit of income exempt from federal income taxes (and in some cases, state taxes).
  • Enhance your income portfolio. Adapt to higher taxes by increasing allocations to municipal funds.
Municipal Tax-Equivalent Yields Rival Those of High Yield Bonds

Investment Solutions

Mitigate the impact of taxes on an income portfolio

Seek to generate tax-exempt income

Carefully consider the Funds' investment objectives, risk factors, and charges and expenses before investing. This and other information can be found in the Funds' prospectuses or, if available, the summary prospectuses which may be obtained visiting the iShares ETF and BlackRock Mutual Fund prospectus pages. Read the prospectus carefully before investing.

Investing involves risk, including possible loss of principal.

Bond values fluctuate in price so the value of your investment can go down depending on market conditions. The two main risks related to fixed income investing are interest-rate risk and credit risk. Typically, when interest rates rise, there is a corresponding decline in the market value of bonds. Credit risk refers to the possibility that the issuer of the bond will not be able to make principal and interest payments.

There may be less information on the financial condition of municipal issuers than for public corporations. The market for municipal bonds may be less liquid than for taxable bonds. Some investors may be subject to federal or state income taxes or the Alternative Minimum Tax (AMT). Capital gains distributions, if any, are taxable.

The strategies discussed are strictly for illustrative and educational purposes and should not be construed as a recommendation to purchase or sell, or an offer to sell or a solicitation of an offer to buy any security. There is no guarantee that any strategies discussed will be effective.

The Funds are distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRock”).

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