Buy maturity-date municipal bond ETFs. Unlike other fixed-income funds, these innovative offerings, introduced by iShares in January, hold munis until their end date. So you get diversification plus the return of your principal, barring default -- as long as you don't cash out before maturity. iShares' six such funds have maturities ranging from 2012 (
MUAA) to 2017 (
MUAF).
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