: Can be costlier due to wide "bid-ask spreads" for retail-sized trades ($1,000–$100,000). A Vanguard report highlights that retail muni bond spreads averaged 56.4 basis points, compared to just 20.2 for institutional-scale trades.
: Benefit from institutional pricing and economies of scale, though they carry annual expense ratios. Income Predictability buying bonds vs bond funds
: Have no fixed maturity date; the principal value fluctuates with market interest rates, though professional managers actively maintain a target duration. Cost Efficiency & Pricing : Can be costlier due to wide "bid-ask