Muni Bond ETFs

At this time, tax-free investors can exhale knowing that their tax-free income streams remain preserved as we roll off the second strong performance year in a row; the Barclays Municipal Bond Index returned 6.78% in 2012. With higher taxes coming for many Americans, I believe the tax-free coupon makes munis all the more desirable.

James Colby is a portfolio manager and senior municipal strategist at Market Vectors ETFs.