Thanks to a hefty amount of tax uncertainty, historically high yields and overall strong fiscal health, municipal bonds have continued to be a top draw for many investors across different tax brackets. Fund flows into muni ETFs have continued to rise, and more recently, the number of active ETF offerings in the space has jumped. More than half of all the active ETFs in the space have launched within the last two years.
And it turns out, that might be a great thing for investors.
According to asset manager AllianceBernstein, being active in the muni sector is better than simply following an index. Historically, outperformance has been on the active investor’s side. And there are three reasons why.
dividend.com
by Aaron Levitt
Mar 10, 2025