Rate cut expectations and a bout of equity market turbulence have led muni bonds and related ETFs to perk up.
That’s good news for conservative income investors. But the asset class could be best approached with the benefit of active management. ETFs such as the Eaton Vance Intermediate Municipal Income ETF (EVIM) deliver on that front. The fund could be one of the municipal bond ETFs to consider over the remainder of this year and into 2025.
The reasoning for that assertion is simple. The current interest rate climate and related expectations for rate cuts could be indicators that active management has a window of opportunity to outshine passive muni strategies. Additionally, active managers can more swiftly seize upon credit and value opportunities than index-based muni bond rivals.
etftrends.com
by Todd Shriber
August 12, 2024