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

BAB Top Performer Intra-day
Price $30.90
Today’s Change -0.23%
4:00pm 03/31/2020
PZA Bottom Performer Intra-day
Price $25.80
Today’s Change -1.34%
4:00pm 03/31/2020

ETF.com Insight

With 7 ETFs and over $29.00B 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 IQ MacKay Municipal Insured ETF (MMIN), with a total return of 1.95%. Meanwhile, the most popular ETF is the iShares National Muni Bond ETF (MUB) with $15.38BB in assets under management.

Investors should take a look at the Invesco Taxable Municipal Bond ETF (BAB). This fund has been chosen as an Analyst Pick by FactSet, thus is the best ETF for the average investor. BAB tracks a broad index of taxable investment grade municipal debts selected and weighted by market value. BAB has an expense ratio of 0.28% and tracks the BofA Merrill Lynch US Taxable Municipal Securities Plus Index.

ETF.com Efficiency Insight

The average efficiency score in the Fixed Income: U.S. - Government, Local Authority/Municipal Investment Grade segment is 87 out of 100, with the iShares National Muni Bond ETF(MUB) obtaining the highest rating of 97 out of 100.

Costs dominate the discussion around efficiency. ETFs in the segment have an average expense ratio of 0.29% 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 0.06%.

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 88 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 241.48M in daily average volume. Investors should also find ample liquidity in the Vanguard Tax-Exempt Bond ETF (VTEB), with $94.11M 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
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