Municipal bond ETFs:what they yield and how rates move them
Bonds of US states and cities. Their interest is tax-free only for US taxpayers.
- 12 ETFs
- Yield to maturity 2.94% to 4.83%
- Rates +1%: -0.8% to -9.1%
US municipal
12ETF
$149B in total assets
The largest: VTEB, $48.5B
In a few words
We track 12 municipal bond ETFs, from their SEC filings. The yield to maturity of their bonds ranges from 2.94% (JMST) to 4.83% (PZA), before the funds' costs. If rates rose by 1 percentage point, their prices would change by about -0.8% (JMST) to -9.1% (PZA). In 2022 their total return ranged from -12.8% (PZA) to +0.1% (JMST).
All municipal bond ETFs
Every fund of the kind, from its own filings. Open one for its page.
- Vanguard Tax-Exempt Bond ETFYield (YTM)4.15%
- iShares National Muni Bond ETFYield (YTM)4.06%
- iShares Short-Term National Muni Bond ETFYield (YTM)2.99%
- JPMorgan Municipal ETFYield (YTM)4.35%
- JPMorgan Ultra-Short Municipal Income ETFYield (YTM)2.94%
- Capital Group Municipal Income ETFYield (YTM)3.89%
- iShares California Muni Bond ETFYield (YTM)3.80%
- Invesco National AMT-Free Municipal Bond ETFYield (YTM)4.83%
- Schwab Municipal Bond ETFYield (YTM)3.84%
- Vanguard California Tax-Exempt Bond ETFYield (YTM)3.92%
- PIMCO Intermediate Municipal Bond Active Exchange-Traded FundYield (YTM)3.94%
- Vanguard Core Tax-Exempt Bond ETFYield (YTM)4.71%
| ETF | |||||||
|---|---|---|---|---|---|---|---|
| Vanguard Tax-Exempt Bond ETF | 4.15% | – | -7.1% | 100% | -8.2% | -11.3% | $48.5B |
| iShares National Muni Bond ETF | 4.06% | – | -7.0% | 100% | -7.5% | -10.5% | $45.4B |
| iShares Short-Term National Muni Bond ETF | 2.99% | – | -2.0% | 100% | -2.2% | -3.9% | $11.6B |
| JPMorgan Municipal ETF | 4.35% | – | -6.2% | 93% | -7.5% | -10.5% | $8.8B |
| JPMorgan Ultra-Short Municipal Income ETF | 2.94% | – | -0.8% | 81% | +0.1% | -0.8% | $7.4B |
| Capital Group Municipal Income ETF | 3.89% | – | -4.9% | 83% | – | +1.6% | $6.3B |
| iShares California Muni Bond ETF | 3.80% | – | -6.8% | 100% | -8.1% | -11.2% | $4.6B |
| Invesco National AMT-Free Municipal Bond ETF | 4.83% | – | -9.1% | 100% | -12.8% | -16.8% | $4.2B |
| Schwab Municipal Bond ETF | 3.84% | – | -6.6% | 100% | – | -0.3% | $4.0B |
| Vanguard California Tax-Exempt Bond ETF | 3.92% | – | -6.9% | 100% | – | -0.3% | $3.3B |
| PIMCO Intermediate Municipal Bond Active Exchange-Traded Fund | 3.94% | – | -5.4% | 100% | -6.8% | -9.8% | $3.1B |
| Vanguard Core Tax-Exempt Bond ETF | 4.71% | – | -7.7% | 98% | – | +3.6% | $1.8B |
The full analysis
And what about stocks?
Bonds are only one side of investing. With Ploutos AI you can analyse a company through its official SEC filings, look into its financials and understand what lies behind the numbers. Every finding comes with a reference to its source, so you can check the data behind the analysis.
- A fair value range built from the filings
- Earnings quality, debt and red flags
- Insider and institutional moves
- The case for and the case against
What do municipal bond ETFs yield?
The yield to maturity of their bonds ranges from 2.94% (JMST) to 4.83% (PZA), before the funds' costs. That is not the distribution the ETFs pay, and it moves every day with prices.
How far would municipal bond ETFs fall if rates rose?
If rates rose by 1 percentage point, their prices would change by about -0.8% (JMST) to -9.1% (PZA). For each year of duration, the price moves about 1% against rates.
How did municipal bond ETFs do in 2022?
In 2022 their total return ranged from -12.8% (PZA) to +0.1% (JMST). That year rates rose sharply and most bonds had their worst year in decades.
Which are the largest municipal bond ETFs?
By net assets: VTEB (Vanguard Tax-Exempt Bond ETF, $48.5B), MUB (iShares National Muni Bond ETF, $45.4B), SUB (iShares Short-Term National Muni Bond ETF, $11.6B).
Other kinds of bond ETFs
Related pages
This page describes what bond ETFs hold, based on their SEC filings. Bond prices change every day and past returns do not say what comes next.