The iShares bond ladder of Muni ETFs constructs a portfolio of bonds over a range of maturity dates, aligned with the time horizon of the investor, securing effective yearly pay-outs (coupons and principal)
The shorter maturity bonds, with fewer coupon payments remaining. will be less impacted by rate variations while the long-term bonds will remain volatile, considering the probability that interest rates will change over their remaining duration
Held to maturity, the investment in selected laddered ETFs offers a stream of income unaffected by interest rate variability - but remaining exposed to potential credit risk of the underlying debt, issued by municipalities with lower credit standing (impacted by potential downgrades related to the financial health, economic stability, and governance of local entities)