Municipal Bond ETFs Offer Attractive RatesTom Lydonupdated Sep 10, 2008TweetAt GET.com we maintain complete editorial integrity on our content & provide transparent & unbiased information. Companies don't pay us to include their products although we receive a compensation when you successfully apply to products from our partners. See how we make money here.At GET.com we maintain complete editorial integrity.One beneficiary of the Treasury’s takeover of Fannie Mae and Freddie Mac is Treasury bond exchange traded funds (ETFs).Treasuries advanced on Tuesday, pushing yields down, as concerns about the health of the banking system here pulled investors back to the safety of government debt, reports Deborah Levine for MarketWatch. It didn’t help that this morning, concerns arose over the ability of Lehman Brothers (LEH) to raise capital.Traders are noting that Treasurys still face pressure, as the government may have to issue more debt in the coming quarters to support the mortgage agencies.Some Treasury bond ETFs include:iShares Lehman TIPS Bond (TIP), up 5.2% year-to-dateiShaers Lehman 20+ Year Treasury Bond (TLT), up 7.1% year-to-dateMunicipal bonds and the ETFs that focus on them are one of the most popular and interesting investments for 2008. Eileen Ambrose for The Baltimore Sun explains that investors in high-income tax brackets favor the bonds because the interest income generated is exempt from federal taxes and, in some cases, state taxes. Investors also flock to municipal bonds for safety.Bond insurance is now an issue, as this is what guarantees the interest payments and principle on bonds in case of default. Muni-bond insurers in recent years have gone and started insuring riskier securities that involve the subprime mortgages. You can guess where that led, and now issuers are offering a higher rate on bonds to attract investors. Lucky for some investors, bond yields are up.ETFs offer good access to municipal bonds, as they track a benchmark of bonds and they can be broken up and traded through out the day. Some of the many available municipal bond ETFs are:SPDR Lehman Municipal Bond ETF (TFI), up 2.1% year-to-datePowerShares Insured National Municipal Bond Portfolio (PZA), down 1.4% year-to-dateiShares S&P National Municipal Bond Fund (MUB), up 1.9% year-to-dateEditorial Disclosure: Any personal views and opinions expressed by the author in this article are the author's own and do not necessarily reflect the viewpoint of GET.com. The editorial content on this page is not provided by any of the companies mentioned, and has not been reviewed, approved or otherwise endorsed by any of these entities. Opinions expressed here are author's alone, not those of the companies mentioned, and have not been reviewed, approved or otherwise endorsed by any of these entities.