Muni bond ETFs invest in municipal bonds. These bonds are issued by a local government or territory, or their agencies. One of the attractive features of municipal bonds is that interest income is excluded from gross income for federal income tax purposes.
Municipal bond ETFs are part of the following ETF.com market segments:
- Fixed Income U.S. Municipals Build America Bonds
- Fixed Income California Municipals Investment Grade
- Fixed Income U.S. Municipals
- Fixed Income U.S. Municipals High Yield
- Fixed Income U.S. Municipals Investment Grade Short Term
- Fixed Income U.S. Municipals Investment Grade Intermediate
- Fixed Income New York Municipals Investment Grade
- Fixed Income U.S. Municipals VRDO Floating Rate
With 38 ETFs traded in the U.S. markets, Muni ETFs gather total assets under management of $29.13B. The average expense ratio is of 0.36%. Muni ETFs can be found in the following asset classes:
- Fixed Income
The largest Muni ETF is the iShares National Muni Bond ETF MUB with $9.19B in assets. In the last trailing year, the best performing Muni ETF was the HYD at 11.10%. The most-recent ETF launched in the Muni space was the First Trust Municipal High Income ETF FMHI in 11/01/17.