TAFI

AB Tax-Aware Short Duration Municipal ETF

$25.25

+0.00%

Market closed. Last update: 10:57 PM ET

📎 Investment Objective

The AB Tax-Aware Short Duration Municipal ETF (TAFI) seeks to provide current income that is exempt from federal income tax, while preserving capital and maintaining a low duration profile.

Overview

ETF tracking AB Tax-Aware Short Duration Municipal ETF

Category Municipal Bonds

Issuer Other

Inception Date 2022-09-14

Market Cap $913.9M

Average Volume N/A

Dividend Yield 2.65%

52-Week Range $24.70 - $25.39

VWAP $25.26

Performance

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Investment Summary

📎 Investment Objective

The AB Tax-Aware Short Duration Municipal ETF (TAFI) seeks to provide current income that is exempt from federal income tax, while preserving capital and maintaining a low duration profile.

🎯 Investment Strategy

The fund invests primarily in a diversified portfolio of municipal bonds with short-term maturities, typically less than 5 years. The portfolio is actively managed to maintain a low duration and emphasize bonds that are expected to be less sensitive to changes in interest rates. The fund aims to generate tax-exempt income while managing interest rate risk.

✨ Key Features

Focuses on short-term municipal bonds to provide tax-exempt income with lower interest rate sensitivity
Actively managed portfolio to optimize credit quality and duration profile
Targets a low duration of 2-3 years to reduce interest rate risk
Seeks to provide a stable, tax-efficient income stream for investors

⚠️ Primary Risks

Interest rate risk: The fund's value may decline if interest rates rise
Credit risk: The fund is exposed to the risk of default by municipal bond issuers
Liquidity risk: The municipal bond market can be less liquid than other fixed income sectors
Tax risk: Changes in tax laws could affect the tax-exempt status of the fund's income

👤 Best For

The AB Tax-Aware Short Duration Municipal ETF may be suitable for investors seeking tax-exempt income and lower interest rate risk, such as those in higher tax brackets or with a shorter investment horizon. It can serve as a conservative, low-duration component of a diversified fixed income portfolio.