Municipal Bonds ETFs are a type of exchange-traded fund (ETF) that invest in municipal bonds, which are debt securities issued by state and local governments and their agencies to finance public projects such as roads, schools, and water treatment plants. These ETFs provide investors with exposure to the performance of the municipal bond market, which can include changes in the interest rates and credit quality of the underlying bonds.

Municipal Bonds ETFs can be a good investment option for investors looking for income and tax benefits. The interest paid on municipal bonds is generally tax-free at the federal level, and in some cases, it may also be tax-free at the state and local levels. Additionally, municipal bonds tend to have lower default risk than other types of bonds.

Municipal Bonds

The State Street My2027 Municipal Bond ETF (MYMG) is an actively managed target-maturity ETF that invests primarily in U.S. municipal bonds with effective maturities in 2027. The fund seeks to maximize current income exempt from regular federal income taxes while seeking preservation of capital using a risk-aware, top-down approach combined with bottom-up security selection. On or around December 15, 2027, the fund is designed to distribute any remaining principal and liquidate.

NasdaqGM

MYMG

The iShares Short-Term California Muni Active ETF seeks tax-exempt income through a diversified portfolio of short-term California municipal bonds, actively managed by BlackRock's municipal bond team.

CALI

The State Street My2026 Municipal Bond ETF (MYMF) is an actively managed target-maturity ETF that invests primarily in U.S. municipal bonds with effective maturities in 2026. The fund seeks to maximize current income exempt from regular federal income taxes while seeking preservation of capital using a risk-aware, top-down approach combined with bottom-up security selection. On or around December 15, 2026, the fund is designed to distribute any remaining principal and liquidate.

Symbol	Name	Sharpe Ratio (1Y)	Sharpe Ratio (5Y)	Sharpe Ratio (10Y)	Risk / Return Rank
MYMG	State Street My2027 Municipal Bond ETF	4.77	—	—	98
CALI	iShares Short-Term California Muni Active ETF	4.01	—	—	94
MYMF	State Street My2026 Municipal Bond ETF	3.95	—	—	96
MEAR	iShares Short Maturity Municipal Bond ETF	3.86	2.47	1.17	96
STAX	Macquarie Tax-Free USA Short Term ETF	3.85	—	—	87

Top Municipal Bonds ETFs by Sharpe Ratio

Top Municipal Bonds ETFs by Sharpe Ratio