Fixed Income: U.S. - Government, Local Authority/Municipal Investment Grade Short-Term
With 10 ETFs and over $15.11B in combined AUM, the Fixed Income: U.S. - Government, Local Authority/Municipal Investment Grade Short-Term 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 VanEck Short Muni ETF (SMB), with a total return of 0.42%. Meanwhile, the most popular ETF is the iShares Short-Term National Muni Bond ETF (SUB) with $6.02BB in assets under management.
Investors should take a look at the SPDR Nuveen Bloomberg Barclays Short Term Municipal Bond ETF (SHM). This fund has been chosen as an Analyst Pick by FactSet, thus is the best ETF for the average investor. SHM tracks an index of publicly traded short-term tax-exempt US municipal bonds rated AA- or better. SHM has an expense ratio of 0.20% and tracks the Bloomberg Municipal Managed Money Short Index.
ETF.com Efficiency Insight
The average efficiency score in the Fixed Income: U.S. - Government, Local Authority/Municipal Investment Grade Short-Term segment is 91 out of 100, with the iShares Short-Term National Muni Bond ETF(SUB) 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 0.20% per year, with the iShares Short-Term National Muni Bond ETF (SUB) having the lowest expense ratio, charging investors 0.07% yearly.
Investors should look for funds with tight tracking, such as the iShares iBonds Dec 2022 Term Muni Bond ETF (IBMK), with a 12-month median tracking difference of -0.14%.
ETF.com Tradability Insight
The average tradability score in the Fixed Income: U.S. - Government, Local Authority/Municipal Investment Grade Short-Term segment is 82 out of 100, with the iShares Short-Term National Muni Bond ETF(SUB) obtaining the highest rating of 100 out of 100.
The iShares Short-Term National Muni Bond ETF (SUB) is the undisputed segment leader when it comes to liquidity. The fund trades 37.18M in daily average volume. Investors should also find ample liquidity in the JPMorgan Ultra-Short Municipal Income ETF (JMST), with $18.15M in daily dollar volume.
Use limit orders to trade funds such as the Invesco BulletShares 2023 Municipal Bond ETF(BSMN), due to their double-digit market spreads.
ETF.com Fit Insight
The Bloomberg Barclays Municipal Short (1-5 Y) 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.