Best Place To Buy Municipal Bonds -

: Individual bonds offer "principal protection" if held to maturity, whereas bond funds fluctuate in value based on interest rates. However, experts at Charles Schwab recommend individual bonds only for those who can hold at least 10 different issuers to ensure proper diversification.

For most retail investors, funds are a better option as they provide instant diversification and higher liquidity than individual bonds. Expense Ratio 30-Day SEC Yield (April 2026) Schwab Municipal Bond ETF iShares National Muni Bond ETF VanEck High Yield Muni ETF 0.32%–0.35% iShares California Muni Bond ETF best place to buy municipal bonds

: If you live in a high-tax state like California or New York, buying bonds issued in your home state can exempt you from both federal and state income taxes. For example, a 3% yield on the CMF ETF can equate to a 6.6% tax-equivalent yield for top-bracket California residents. : Individual bonds offer "principal protection" if held