"Many Boomers in 2025 need dependable passive income, and one outstanding way to achieve this is to invest in exchange-traded funds (ETFs). Unlike open-end mutual funds, ETFs trade on major exchanges like stocks. They own financial assets, including stocks, bonds, currencies, debt, futures contracts, and commodities such as gold bars. Having more passive income can help cover rising costs, such as mortgages, insurance, taxes, and other expenses."
"Interest from most municipal bonds is exempt from federal income tax and may also be exempt from state and local taxes if you live in the state that issued the bond. However, there are exceptions, as some muni bonds may be subject to the federal alternative minimum tax (AMT), and interest from bonds issued in a state other than your own is typically taxed at the state level."
"One significant advantage of owning municipal bond ETFs is that they can be sold at any time when the markets are trading. We screened our 24/7 Wall St. ETF research database and found four top funds that have these qualities: High dividend payout every 30 days. However, in some months, the payout doubles and the fund skips a month. Double-check before investing. Trades at or at a discount to net asset value. Major Wall Street firms manage them. Reasonable expense ratio."
High-yield municipal bond ETFs offer Boomers reliable monthly passive income and can help cover expenses during retirement. ETFs trade like stocks on major exchanges and hold diverse financial assets including stocks, bonds, currencies, debt, futures, and commodities. Interest on most municipal bonds is generally exempt from federal income tax and may be exempt from state and local taxes if issued by the investor's state, though some muni bonds can be subject to the AMT and out-of-state bond interest is typically taxed at the state level. Municipal bond ETFs provide liquidity, and certain funds offer high monthly payouts, low expense ratios, and professional management.
Read at 24/7 Wall St.
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