Fixed Income: U.S. - Government, Local Authority/Municipal Investment Grade

BAB Top Performer Intra-day
Price $32.81
Today’s Change 0.18%
2:24pm 10/26/2021
RTAI Bottom Performer Intra-day
Price $27.51
Today’s Change -0.39%
4:00pm 10/25/2021

ETF.com Insight

With 10 ETFs and over $43.02B in combined AUM, the Fixed Income: U.S. - Government, Local Authority/Municipal Investment Grade segment provides exposure to the U.S. space with a focus on Investment Grade securities.

Year-to-date, the best-performing ETF in the segment is the Rareview Tax Advantaged Income ETF (RTAI), with a total return of 7.37%. Meanwhile, the most popular ETF is the iShares National Muni Bond ETF (MUB) with $23.60BB in assets under management.

Investors should take a look at the Vanguard Tax-Exempt Bond ETF (VTEB). This fund has been chosen as an Analyst Pick by FactSet, thus is the best ETF for the average investor. VTEB tracks a market-weighted index of investment-grade debt issued by state and local governments and agencies. Interest is exempt from US income tax and from AMT. VTEB has an expense ratio of 0.06% and tracks the S&P National AMT-Free Municipal Bond.

Performance Dispersion

ETF.com Efficiency Insight

The average efficiency score in the Fixed Income: U.S. - Government, Local Authority/Municipal Investment Grade segment is 78 out of 100, with the Vanguard Tax-Exempt Bond ETF(VTEB) obtaining the highest rating of 95 out of 100.

Costs dominate the discussion around efficiency. ETFs in the segment have an average expense ratio of 0.45% per year, with the Vanguard Tax-Exempt Bond ETF (VTEB) having the lowest expense ratio, charging investors 0.06% yearly.

Investors should look for funds with tight tracking, such as the Vanguard Tax-Exempt Bond ETF (VTEB), with a 12-month median tracking difference of -0.01%.

Tracking Difference (12 Month)

ETF.com Tradability Insight

The average tradability score in the Fixed Income: U.S. - Government, Local Authority/Municipal Investment Grade segment is 78 out of 100, with the Vanguard Tax-Exempt Bond ETF(VTEB) obtaining the highest rating of 100 out of 100.

The iShares National Muni Bond ETF (MUB) is the undisputed segment leader when it comes to liquidity. The fund trades 127.77M in daily average volume. Investors should also find ample liquidity in the Vanguard Tax-Exempt Bond ETF (VTEB), with $74.94M in daily dollar volume.

Use limit orders to trade funds such as the Overlay Shares Municipal Bond ETF(OVM), due to their double-digit market spreads.

ETF.com/ Block Liquidity

VTEB
5
4
3
2
1
MUB
5
4
3
2
1
TFI
5
4
3
2
1
PZA
5
4
3
2
1
BAB
5
4
3
2
1
MMIN
5
4
3
2
1
OVM
5
4
3
2
1
RTAI
5
4
3
2
1
AVMU
5
4
3
2
1
This measurement shows how easy it is to trade 25,000 shares of each ETF.

ETF.com Fit Insight

The Barclays Municipal Bond has been selected as the index that most accurately represents the market in question. The benchmark has been selected by the ETF Analytics team at FactSet, according to a series of guidelines to ensure this index accurately captures its market.

Investors trying to match a broad market exposure should pay attention to . This fund obtains a high Fit score and investors should capture market-like returns.

Other funds diverge from the market, by nature of their investment mandates; for example, follows a strategy and obtains a low Fit score compared with our neutral benchmark.

Index Methodology