As 2025 approaches, municipal bonds and related ETFs present intriguing opportunities for fixed-income investors. Actively managed options, like the ALPS Intermediate Municipal Bond ETF (MNBD), are outperforming some passive counterparts, showcasing the value of active management in this space.
Experts predict declining muni bond issuance in early 2025, creating a favorable supply backdrop for the asset class. Attractive after-tax yields, such as 6.1% for high tax brackets, are expected to sustain strong demand across mutual funds, ETFs, and managed accounts.
Goldman Sachs Asset Management anticipates robust technical support for munis, highlighting net supply reductions and compelling credit opportunities.
Finsum: For investors seeking accessible exposure, ETFs like MNBD simplify participation in the municipal bond market.