The Best Municipal Bonds ETFs
The table below compares the performance and other essential indicators like dividend yield and expense ratio of Municipal Bonds ETFs.
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.
- Number of ETFs
- 140
- Avg. Expense Ratio
- 0.30%
- Avg. Dividend Yield
- 3.05%
- Avg. 1 Year Return
- 5.98%
- Median Risk/Return Score
- 72 / 100
The Best Municipal Bonds ETFs
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| Symbol | Full Name | Category | Inception | Expense Ratio | YTD Return | 10Y Return (Annualized) | Dividend Yield | Risk / Return Rank | Max. Drawdown | Sharpe Ratio | Sortino Ratio | Omega Ratio | Martin Ratio | Calmar Ratio | Ulcer Index |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Invesco US Municipal Bond UCITS ETF Dist | Municipal Bonds | Feb 10, 2021 | 0.28% | 0.61% | — | 4.54% | 62 | ||||||||
| Invesco US Municipal Bond UCITS ETF Dist | Municipal Bonds | Feb 10, 2021 | 0.28% | 0.63% | — | 4.53% | 32 |
Best Municipal Bonds ETFs by Risk/Return Score
The top Municipal Bonds ETFs by PortfoliosLab Risk/Return Score are MYMG (98) and MYMF (96).
The score measures risk-adjusted performance over the past year, accounting for volatility, drawdown, and return consistency.
| Symbol | Name | Risk / Return Rank | AUM | Inception |
|---|---|---|---|---|
| State Street My2027 Municipal Bond ETF | 98 | 9.88M | Sep 2024 | |
| State Street My2026 Municipal Bond ETF | 96 | 8.74M | Sep 2024 | |
| First Trust Ultra Short Duration Municipal ETF | 96 | 230.57M | Nov 2018 | |
| iShares Short Maturity Municipal Bond ETF | 96 | 1.38B | Mar 2015 | |
| iShares Short-Term California Muni Active ETF | 94 | 360.67M | Oct 2007 |
Best-Performing Municipal Bonds ETFs Over 5 Years
The top Municipal Bonds ETFs is MEAR (2.42%).
Across the lineup, Municipal Bonds ETFs show an average 1-year return of 5.98% and an average 5-year return of 0.68%, providing a clearer view of performance across different investment horizons.
| Symbol | Name | Return 5Y | AUM | Inception |
|---|---|---|---|---|
| iShares Short Maturity Municipal Bond ETF | 2.42% | 1.38B | Mar 2015 | |
| Franklin Liberty Federal Intermediate Tax-Free Bon... | 2.20% | 2.10B | Aug 2017 | |
| First Trust Ultra Short Duration Municipal ETF | 1.99% | 230.57M | Nov 2018 | |
| Invesco VRDO Tax-Free ETF | 1.92% | 29.78M | Nov 2007 | |
| PIMCO Short Term Municipal Bond Active ETF | 1.89% | 1.06B | Feb 2010 |
Lowest-Cost Municipal Bonds ETFs
The top Municipal Bonds ETFs is SCMB (0.03%).
With an average expense ratio of 0.30%, Municipal Bonds ETFs remain a low-cost option for investors seeking broad market exposure, sector allocations, and diversified portfolio building blocks.
| Symbol | Name | Expense Ratio | AUM | Inception |
|---|---|---|---|---|
| Schwab Municipal Bond ETF | 0.03% | 3.87B | Oct 2022 | |
| Vanguard Tax-Exempt Bond ETF | 0.03% | 45.70B | Aug 2015 | |
| Fidelity Systematic Municipal Bond Index ETF | 0.05% | 178.36M | Jul 2019 | |
| Northern Trust Tax-Exempt Bond ETF | 0.05% | 59.79M | Aug 2025 | |
| Northern Trust Short-Term Tax-Exempt Bond ETF | 0.05% | 94.44M | Aug 2025 |
Highest-Yield Municipal Bonds ETFs
The top Municipal Bonds ETFs is OVM (6.14%).
Across the lineup, Municipal Bonds ETFs show an average dividend yield of 3.05%, offering investors a steady stream of income through regular dividend payments, making them attractive for income-seeking portfolios.
| Symbol | Name | Dividend Yield | AUM | Inception |
|---|---|---|---|---|
| Overlay Shares Municipal Bond ETF | 6.14% | 30.60M | Sep 2019 | |
| Simplify National Muni Bond ETF | 5.87% | 48.09M | Sep 2024 | |
| Rareview Tax Advantaged Income ETF | 5.08% | 18.13M | Oct 2020 | |
| X-Square Municipal Income Tax Free ETF | 4.56% | 4.54M | May 2023 | |
| SPDR Nuveen Bloomberg Barclays High Yield Municipa... | 4.54% | 2.93B | Apr 2011 |
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Top ETFs Comparisons
Compare the top ETFs symbols based on PortfoliosLab usage data.
Risk vs. Return Scatterplot
The Risk vs. Return Scatterplot allows you to quickly compare funds, stocks, and ETFs in one view. It displays the yearly return of an instrument on one axis and the risk (volatility) on the other.
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