Rieger Report® ETF Face-off: MUB v MMIN

ETF Face-off: MUB v. MMIN

The edge still goes to the actively managed IQ MacKay Municipal Insured ETF (MMIN) in this face-off v. the passive iShares National Municipal Bond ETF (MUB).

Simply put MMIN’s active management, opportunistic capabilities and insured bond combination has provided higher yields and better performance year-to-date in this volatile marketplace.

While performance of actively managed municipal funds and ETFs v. an index and passively managed ETFs is not impressive, see S&P’s SPIVA Scorecards www.spindices.com, MMIN’s management team has been together for many years giving it the advantage to be opportunistic while the assets under management grow. The thesis I have is the smaller the fund, the more impactful single opportunistic buying opportunities can be on the returns of that fund.

Two negatives for MMIN still exist:

  1. Smaller ETFs are inherently less liquid than larger ETFs, so if a rapid exit at the price you want is your goal, then perhaps MUB is a better option.
  2. By its nature as an active fund, it is less transparent than MUB.

The $15billion iShares National Municipal Bond ETF (MUB) does what it was created for: tracks the investment grade municipal bond market and provides tremendous liquidity for those that need it.

Municipal ETFs: MUB v. MMIN

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Sources: iShares.com, NYLinvestments.com and Yahoo.com. Table is provided for illustrative purposes only. Past performance is not a guarantee of future results. Data as of 5/6/2020. unless otherwise noted. (1) Data as of 4/302020.

Municipal ETFs Face Off: MUB v. MMIN 

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Analyst Disclosures

  • At the time of this writing, JR Rieger’s fixed income related holdings include investment grade individual municipal bonds, insured municipal bonds, a municipal bond money market fund and a position in the VanEck Vectors High-Yield Municipal Index ETF (HYD).

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