Municipal Bond ETFs: Key Takeaways
Long Municipal Bond ETFs:
- Tend to have a shorter duration than their corporate bond ETF counterparts.
- Tend to have significantly lower management fees than actively managed muni bond funds.
- Currently have yields when viewed from the Taxable Equivalent Yield perspective that are comparable to corporate bond ETFs.
- MUB and VTEB have deep trading volume (as a liquidity proxy) and low management fees.
- TFI, PZA and ITM tend to have longer durations and higher management fees relative to this peer group.
Short Term Municipal Bond ETFs:
- Tend to have durations that are comparable to their corporate bond ETF counterparts.
- Currently have yields (both nominal and Taxable Equivalent Yields) that are lower than their corporate bond counterparts.
Long & Intermediate National Municipal Bond ETFs
(Over $500million in Assets)
1. Assets Under Management. 2. As of 3/31/2018. 3. Advisor is waiving 18bps of the 25bp management fee until 5/31/2023. 4. Advisor is waiving 7bps of the 30bp management fee until 10/31/2018. 5. As of May 31, 2018.
Sources: ishares by Blackrock, https://www.ishares.com/us,The Vanguard Group https://investor.vanguard.com/corporate-portal/, State Street Global Advisors https://us.spdrs.com, PowerShares by Invesco https://www.invesco.com/portal/site/us/psgateway, VanEck www.vaneck.com, Yahoo Finance www.Yahoo.finance.com Trading volume data & closing price. Data as of 6/22/2018 or as otherwise stated. Table is shown for illustrative purposes only. Past performance is not indicative of future results.
Short Term National Municipal Bond ETFs
(Over $500million in Assets)
1. Assets Under Management. 2Advisor is waiving 18bps of the 25bp management fee until 5/31/2023. 3 As of May 31, 2018.
Data as of 6/22/2018 or as otherwise noted.
Sources: ishares by Blackrock, https://www.ishares.com/us,The Vanguard Group https://investor.vanguard.com/corporate-portal/, State Street Global Advisors https://us.spdrs.com/en, PowerShares by Invesco https://www.invesco.com/portal/site/us/psgateway, VanEck www.vaneck.com, Yahoo Finance www.Yahoo.finance.com Trading volume data & closing price. Table is shown for illustrative purposes only. Past performance is not indicative of future results.
I.G. Municipal Bond ETFs v. I. G. Corporate Bond ETFs
Data as of 6/22/2018
Sources: VanEck www.vaneck.com, iShares by BlackRock www.ishares.com, and The Vanguard Group www.vanguard.com. Table is provided for illustrative purposes only. Past performance is not a guarantee of future returns. TEY = Taxable Equivalent Yield calculated at an assumed 37% tax rate.
Short Term Municipal Bond ETFs v. Short Term Corporate Bond ETFs
Data as of 6/22/2018
Sources: iShares by BlackRock www.ishares.com, The Vanguard Group www.vanguard.com and State Street Global Advisors https://us.spdrs.com. Table is provided for illustrative purposes only. Past performance is not a guarantee of future returns. TEY = Taxable Equivalent Yield calculated at an assumed 37% tax rate.