Core Insights - The article emphasizes the importance of tax-exempt municipal bonds (munis) in investment portfolios, particularly for investors seeking capital appreciation or current income, especially those nearing retirement [1]. Group 1: Tax-Exempt ETF Overview - The T. Rowe Price Intermediate Municipal Income ETF (TAXE) offers an active management approach with a low fee of 24 basis points, launched in 2024, focusing on a range of credit qualities in intermediate maturity debt securities [2]. - The active strategy evaluates issuers based on metrics such as prices and yields, including considerations for junk bonds, resulting in a year-to-date return of 5.8% as of November 30, with a yield to maturity of 3.9% and a 30-day SEC Standardized Yield of 3.16% [3]. Group 2: Portfolio Integration - TAXE can serve as a strong fixed income addition to portfolios, helping to reduce overall tax exposure, with potential compounding benefits as portfolios reinvest savings from taxes [4]. - Active bond ETFs like TAXE possess structural advantages over passive funds, allowing for more flexibility in adapting to market changes, such as replacing bonds when necessary, and focusing on credit quality and yield [5]. Group 3: Future Outlook - As investors approach 2026, there will be a variety of ETFs available, with tax-exempt strategies like TAXE providing the necessary flexibility and adaptability for diverse investment portfolios [6].