Muni ETFs compared to Tbills

u/Alter_The_Ending · Reddit — r/Bogleheads · January 07, 2026 at 18:19 · ⬆ 2 pts · 💬 16 comments  | View on Reddit ↗
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Original Reddit post

Author compares VTEB's tax-equivalent yield to T-bills and leans toward VTEB.

VTEB — LONG The author compares VTEB's 3.50% yield with a 4-week T-bill at 3.55% and calculates a tax-equivalent yield of 4.22% for VTEB using their 24% federal and 3.99% state tax rates. They argue this makes VTEB the obvious choice over T-bills despite conventional advice that munis are only worthwhile above the 32% bracket. They ask for insight but lean toward VTEB.

It seems like a no brainer to opt for VTEB instead of Tbills.

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u/Alter_The_Ending Reddit r/Bogleheads
Tax-equivalent yield makes VTEB preferable to T-bills
The author compares VTEB's 3.50% yield with a 4-week T-bill at 3.55% and calculates a tax-equivalent yield of 4.22% for VTEB using their 24% federal and 3.99% state tax rates. They argue this makes VTEB the obvious choice over T-bills despite conventional advice that munis are only worthwhile above the 32% bracket. They ask for insight but lean toward VTEB.
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This Reddit post, published January 07, 2026, features u/Alter_The_Ending discussing VTEB. 1 trade idea extracted by AI with direction and confidence scoring.

Speakers: u/Alter_The_Ending  · Tickers: VTEB