Core Insights - The article discusses the appeal of municipal bonds as a tax-efficient investment option for investors looking to reduce capital gains payments as the tax year ends [1][2] - Active ETFs, particularly those focused on municipal bonds, are highlighted as a way to maximize returns while benefiting from tax exemptions [3][4] Group 1: Municipal Bonds Appeal - Municipal bonds are positioned as a solid alternative for fixed income assets, especially as certain bond segments lose appeal due to falling rates [2] - The tax-exempt nature of municipal bonds can significantly reduce the total tax bill for investors, which is particularly relevant if the stock market performs well in 2025 [2] Group 2: Active ETFs and Performance - The T. Rowe Price Intermediate Municipal Income ETF (TAXE) is presented as a strong option, charging a fee of 24 basis points while actively investing in municipal bonds exempt from Federal taxes [3][4] - TAXE has achieved a year-to-date return of 5.1% and offers a current yield of 4.44% as of September 30, showcasing its competitive performance [4]

Fall has arrived, and with the crisp breezes and falling leaves comes a less pleasant reminder: the end of the tax year. Investors and advisors all must contend with paying the tax man for their previous income and gains. A variety of options exist, however, to offset those taxes, from tax loss harvesting to tax-exempt muni bonds. One ETF, the T. Rowe Price Intermediate Municipal Income ETF (TAXE), stands out in the later tax-exempt ETFs category for its active approach, leaning on T. Rowe Price's research ...