Individual Bonds vs. Bond Funds: A Comparison | State Street

: If you live in a high-tax state like California or New York, buying bonds issued in your home state can exempt you from both federal and state income taxes. For example, a 3% yield on the CMF ETF can equate to a 6.6% tax-equivalent yield for top-bracket California residents.

Purchasing individual municipal bonds requires a platform with deep inventory and transparent pricing.