You always have to pay 30% tax on T-Bond funds/ETFs?

Discussion in 'ETFs' started by crgarcia, Oct 5, 2009.

  1. T-Bonds are tax exempt.

    Yet, with T-Bond funds you have to pay 30% on the fund "dividends" that are actually interests (coupon) from T-Bonds.

    Is there a way around this?
  2. Trade in an IRA?
  3. No.
  4. OK, don't buy the ETFs?
  5. Thanks, then what may I buy to get a tax-free T-Bond fund?

    (I may hedge somewhat against bond price drops, using options)

    Current T-Bill short-term yields suck.