It’s that time of year again as investors and advisors look to their portfolios for ways to limit an impending tax bill. 2025’s ups and downs have left those portfolios with myriad opportunities for tax-loss harvesting, but the question remains: Where to reinvest the proceeds? For those looking to reduce tax impact overall for portfolios present and future, ETFs can help. One such tax-exempt ETF, TAXE, looks to produce a high level of income via tax-exempt assets, and recently hit an important milestone.
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The T. Rowe Price Intermediate Municipal Income ETF (TAXE) charges a fee of only 24 basis points. The fund actively invests in municipal securities exempt from Federal income taxes from a diverse range of credit qualities. The fund recently crossed over $100 million in ETF AUM following its launch last year. With almost $75 million in YTD flows, the municipal bond strategy seems to be quickly resonating with investors.
The ETF’s managers lean on T. Rowe Price’s fundamental research capabilities as well as the overall macroeconomic outlook to guide decision making. That includes assessing each muni bond’s credit quality as well as prices and yields.
That has helped the tax-free bond ETF return 5.4% YTD, per ETF Database data. TAXE has also performed well in the last three-month period, outperforming its ETF Database Category average in that time as well. In terms of income, the fund provided $0.1533 income dividend per share for November, per T. Rowe Price data. The fund also provided a 3.89% yield to maturity for investors as of October 31 this year.
The tax-loss harvesting ETF could, then, be an appealing landing spot for cash from tax-loss harvesting sales. The wash sale rule prevents investors and advisors from reinvesting tax-loss harvested proceeds into “substantially similar” categories for 30 days. For infome-focused investors who want to reduce their tax impact in the future, TAXE may intrigue.
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