Amid a volatile stretch for equities, muni bonds and related ETFs could garner renewed attention as shelters from the risk asset storm.
Just look at the ALPS Intermediate Municipal Bond ETF (MNBD B+), which is higher by almost 1% year to date. No, municipal bonds will not outperform stocks over the long haul. But munis or ETFs such as MNBD could be sound ideas for investors looking to balance equity-heavy portfolios while bringing volatility-reducing, income-generating assets into the fold.
And while munis aren’t known for thrills, that trait could be alluring in the current market climate. That’s particularly so when coupled with MNBD’s status as an actively managed ETF. That could enable the fund’s managers capitalize on credit and duration opportunities.
etfdb.com
by Todd Shriber
Mar 07, 2025