Consider Muni ETFs as Fundamentals Remain Strong

Valuations for municipal bonds are very attractive right now. And as yields remain strong, so do their fundamentals.

“Only during the credit and liquidity strain of the global financial crisis have we seen muni bonds trade at these yield levels,” according to Vanguard. “Our credit analysts believe state balance sheets are on firm footing and there are plenty of high-quality credit opportunities within revenue sectors.”

Per Vanguard, the top-line yield for the broad market has been trading above the 98th percentile for the past two decades.

Muni Bond ETFs

Source: Bloomberg and Vanguard calculations, as of November 1, 2003, to October 31, 2023. Past performance is not a guarantee of future returns.

See more: “Munis on Track to Having a Strong Year