Northern Trust says MUNC’s municipal-bond ladder has 20 rungs, with the final rung scheduled for 2045. The fund’s objective permits shareholder payments from tax-exempt income, principal, or a blend of the two.
Some cash paid to shareholders may represent invested capital rather than earnings. The federal tax exemption does not necessarily extend to municipal-bond interest under state and local tax rules.
Northern Trust’s 2035 Tax-Exempt Distributing Ladder ETF (MUNB) also makes monthly payments that may include investment income and principal, as discussed in earlier coverage of MUNB’s distributions.
