Observes business of $VTEC: tax-exempt muni yield around ~3% — focus on after-tax return via federal/state exemptions.
VTEC is a Vanguard California tax-exempt municipal bond ETF that he holds for after-tax yield — it pays low ~3% but the income is exempt from federal and California taxes.
He uses VTEC to emphasize the “what you keep” concept: even with a lower headline rate, the tax treatment can raise the effective return for high-tax investors. His point is that the value comes from exemption benefits rather than trying to chase maximum APY.
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