Core Insights - The article discusses the importance of tax-loss harvesting for investors and highlights the T. Rowe Price Intermediate Municipal Income ETF (TAXE) as a viable option for reinvesting proceeds while minimizing tax impact [1][5]. Group 1: ETF Overview - TAXE is a tax-exempt ETF that aims to generate high income through municipal securities exempt from federal income taxes, charging a low fee of 24 basis points [2]. - The ETF has recently surpassed $100 million in assets under management (AUM) and has attracted nearly $75 million in year-to-date (YTD) flows, indicating strong investor interest [2]. Group 2: Performance Metrics - The ETF has delivered a year-to-date return of 5.4% and has outperformed its category average over the last three months [4]. - For November, TAXE provided an income dividend of $0.1533 per share and a yield to maturity of 3.89% as of October 31 [4]. Group 3: Investment Strategy - The management of TAXE relies on T. Rowe Price's fundamental research and macroeconomic analysis to evaluate the credit quality, prices, and yields of municipal bonds [3]. - The ETF serves as an attractive option for investors looking to reinvest cash from tax-loss harvesting sales, especially given the wash sale rule that restricts reinvestment into similar categories for 30 days [5].

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]

Core Insights - The T. Rowe Price Intermediate Municipal Income ETF (TAXE) offers an active investment approach in the tax-exempt ETF category, leveraging T. Rowe Price's research capabilities to provide income through municipal bonds exempt from federal income taxes [1][2]. Investment Strategy - TAXE charges a competitive fee of 24 basis points and targets intermediate maturity municipal bonds across various credit ratings and categories [2]. - The fund's active managers evaluate multiple factors such as prices, yields, credit quality, interest rates, and economic conditions to assess investment potential, allowing for flexibility to include high-yield municipal bonds [3]. Performance Metrics - Year-to-date, TAXE has returned 3.3%, outperforming the FactSet Segment average of 2% during the same period [4]. - The fund has achieved a yield to maturity of 4.07% as of August 31, according to T. Rowe Price data [4]. Advantages of Active Management - Active management in tax-exempt ETFs addresses limitations faced by passive funds, such as early bond calls that can disrupt allocations [4]. - T. Rowe Price's managers utilize the firm's fundamental research capabilities to gain deeper insights into the municipal bond market, potentially enhancing portfolio performance [4].