Taxable Bond Fund
A taxable bond fund is a mutual fund or ETF that primarily invests in bonds whose interest is subject to federal income tax. The fund's income distributions are generally taxable to shareholders, and may be taxed at ordinary income rates and, for some investors, at state or local rates.
Example: For example, a taxable bond fund with a mix of corporate bonds and U.S. government securities may generate annual distributions that are taxable to shareholders in a standard taxable account. The fund's performance will reflect changes in interest rates, credit conditions, and fees.
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