Northern Trust 2035 Tax-Exempt Distributing Ladder ETF (MUNB) makes monthly payments that can include both investment income and principal, a distinction that can affect their tax treatment.
The fund’s municipal-bond holdings are arranged along maturities through 2035. Some payments may return part of investors’ capital, and a portion may receive a different tax classification at year-end.
Interest on municipal bonds generally avoids regular federal income tax, but state and local taxes can still apply.
