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.

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.

Explore related funds

Research our related product offerings to learn how they could add value to investing goals.

  • US Fixed Income

    VKMMX

    Mutual Fund

    Invesco Municipal Income Fund

    Fixed Income
  • US Fixed Income

    PZA

    ETF

    Invesco National AMT-Free Municipal Bond ETF

    Fixed Income

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”).