IBMO

As part of iShares' AMT-Free Muni Term ETF suite, IBMO behaves more like a bond than a typical bond fund. The fund provides bullet maturity—in this case December 2026—instead of perpetual exposure to a maturity pocket of the muni space. As the fund matures, its maturity, duration, and YTM will decline. On its target date, IBMO will unwind and return all capital to the investors. Coupon payments received from underlying securities are exempted from both the federal income tax and the alternative minimum tax. As such, IBMO can be a component of a tax-exempted bond ladder. Its low fee is competitive with most funds in the funds in this space.