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
- 146
- Avg. Expense Ratio
- 0.30%
- Avg. Dividend Yield
- 3.09%
- Avg. 1 Year Return
- 5.93%
- Median Risk/Return Score
- 83 / 100
The Best Municipal Bonds ETFs
146 results
| 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 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Vanguard Intermediate-Term Tax-Exempt Bond ETF | Municipal Bonds | Jan 29, 2024 | 0.08% | 0.89% | — | 3.06% | 74 | ||||||||
| Vanguard Long-Term Tax-Exempt Bond ETF | Municipal Bonds | May 20, 2025 | 0.09% | 1.79% | — | 3.70% | 86 | ||||||||
| Vanguard Short-Term Tax-Exempt Bond ETF | Municipal Bonds | Mar 8, 2023 | 0.07% | 0.70% | — | 2.74% | 69 | ||||||||
| WisdomTree Core Laddered Municipal ETF | Municipal Bonds | Apr 1, 2025 | 0.25% | 0.25% | — | 3.08% | 67 | ||||||||
| F/m Ultrashort Tax-Free Municipal ETF | Municipal Bonds | Sep 29, 2025 | 0.30% | 2.03% | — | 2.59% | — | ||||||||
| X-Square Municipal Income Tax Free ETF | Municipal Bonds | May 18, 2023 | 1.14% | 2.45% | — | 4.67% | 18 |
Best Municipal Bonds ETFs by Risk/Return Score
The top Municipal Bonds ETFs by PortfoliosLab Risk/Return Score are MYMG (98) and MYMF (97).
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 | 8.64M | Sep 2024 | |
| State Street My2026 Municipal Bond ETF | 97 | 8.74M | Sep 2024 | |
| Allspring Ultra Short Municipal ETF | 97 | 30.06M | Jul 2025 | |
| First Trust Ultra Short Duration Municipal ETF | 97 | 245.98M | Nov 2018 | |
| Goldman Sachs Ultra Short Municipal Income ETF | 97 | 50.33M | Jul 2024 |
Best-Performing Municipal Bonds ETFs Over 5 Years
The top Municipal Bonds ETFs is MEAR (2.45%).
Across the lineup, Municipal Bonds ETFs show an average 1-year return of 5.93% and an average 5-year return of 0.52%, providing a clearer view of performance across different investment horizons.
| Symbol | Name | Return 5Y | AUM | Inception |
|---|---|---|---|---|
| iShares Short Maturity Municipal Bond ETF | 2.45% | 1.36B | Mar 2015 | |
| First Trust Ultra Short Duration Municipal ETF | 2.03% | 245.98M | Nov 2018 | |
| Invesco VRDO Tax-Free ETF | 1.96% | 32.30M | Nov 2007 | |
| PIMCO Short Term Municipal Bond Active ETF | 1.91% | 1.14B | Feb 2010 | |
| Franklin Liberty Federal Intermediate Tax-Free Bon... | 1.91% | 2.30B | Aug 2017 |
Lowest-Cost Municipal Bonds ETFs
The top Municipal Bonds ETFs is VTEB (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 |
|---|---|---|---|---|
| Vanguard Tax-Exempt Bond ETF | 0.03% | 48.80B | Aug 2015 | |
| Schwab Municipal Bond ETF | 0.03% | 4.01B | Oct 2022 | |
| Fidelity Systematic Municipal Bond Index ETF | 0.05% | 183.09M | Jul 2019 | |
| Northern Trust Short-Term Tax-Exempt Bond ETF | 0.05% | 126.43M | Aug 2025 | |
| Northern Trust Tax-Exempt Bond ETF | 0.05% | 60.51M | Aug 2025 |
Highest-Yield Municipal Bonds ETFs
The top Municipal Bonds ETFs is OVM (5.31%).
Across the lineup, Municipal Bonds ETFs show an average dividend yield of 3.09%, 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 | 5.31% | 30.60M | Sep 2019 | |
| Simplify National Muni Bond ETF | 5.12% | 48.90M | Sep 2024 | |
| Rareview Tax Advantaged Income ETF | 4.94% | 18.13M | Oct 2020 | |
| X-Square Municipal Income Tax Free ETF | 4.67% | 4.54M | May 2023 | |
| State Street SPDR Nuveen ICE High Yield Municipal ... | 4.54% | 3.09B | Apr 2011 |
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Top ETFs Comparisons
Compare the top ETFs symbols based on PortfoliosLab usage data.
VTEB vs. BNDVTEB vs. VWIUXVTEB vs. VWAHXVTEB vs. VTEAXVTEB vs. FTABXMUB vs. MUNIMUB vs. VWIUXMUB vs. BNDMUB vs. JMUBMUB vs. VNJTXVTES vs. VSDMVTES vs. VGSHVTES vs. JMSTVTES vs. VUSBVTES vs. VKQSCMB vs. SWNTXSCMB vs. SCYBSCMB vs. SCHDSCMB vs. VWIUXSCMB vs. MUSTCMF vs. VCADXCMF vs. PWZCMF vs. VCAIXCMF vs. VCITXCMF vs. FCTFXSUB vs. SGOVSUB vs. SHMSUB vs. JMSTSUB vs. SMBSUB vs. FUMBHYD vs. VWALXHYD vs. HYGHYD vs. VWEAXHYD vs. HIMUHYD vs. FLMIHYMB vs. HIMUHYMB vs. MINOHYMB vs. NDMOHYMB vs. ITMHYMB vs. LEOVTEI vs. VWITXVTEI vs. VWLUXVTEI vs. MDXBXVTEI vs. PZAVTEI vs. VEMBXNYF vs. VNYUXNYF vs. VNYTXNYF vs. PZTNYF vs. FTFMXNYF vs. FMNY
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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5 Years