Core Viewpoint - Municipal bonds are performing well in early 2026, making them an attractive option for advisors and income investors, particularly through low-cost ETFs like the Schwab Municipal Bond ETF (SCMB) [1] Group 1: ETF Overview - The Schwab Municipal Bond ETF (SCMB) has $3.6 billion in assets and tracks the ICE AMT-Free Core U.S. National Municipal Index, providing broad exposure to the U.S. tax-exempt municipal market [1] - SCMB has an effective duration of 6.8 years, positioning it as an intermediate-term fund that can help reduce portfolio correlations with equities and longer-dated bonds [1] - The ETF charges a low expense ratio of 0.03% per year, equating to $3 on a $10,000 investment, making it cost-effective for investors [1] Group 2: Investment Timing and Seasonal Factors - Investors are advised not to rush into SCMB, as historical trends suggest that better pricing may be available in the coming months [1] - March has historically been the worst month for the municipal market, primarily due to investors liquidating holdings to meet tax obligations due in April [1] - While seasonal trends may not always repeat, holding SCMB longer allows investors to accumulate more income [1] Group 3: Income and Risk Considerations - SCMB offers a 30-day SEC yield of 3.25% and a yield-to-maturity of 3.78%, making it an appealing income-generating investment [1] - Approximately 64.60% of SCMB's holdings are revenue bonds, raising concerns about government funding issues, though these are viewed more as headline risks rather than credible threats to the municipal bond market [1] - The majority of SCMB's holdings are rated AAA, AA, or A, indicating a strong credit quality [1]