California isn’t just the largest state by population. It’s the largest issuer of municipal bonds, presenting its residents and fixed income investors all over the country with an array of opportunities.
So large is the California municipal bond market that some ETFs are dedicated to Golden State municipal debt. However, this is an example of a municipal bond segment where advisors and investors need to be selective. The American Century California Municipal Bond ETF (CATF) makes it easy to accomplish that goal.
CATF, which turns two years old in July, endeavors to generate robust income exempt from both federal and California taxes. That indicates its utility goes beyond that of investors residing in California. That said, California’s notoriously elevated taxes on high brackets could make this fund appealing for affluent, income-hungry residents of the state.
etftrends.com
Todd Shriber
May 20, 2026