For financial advisors, tax season should not be the only time to talk to clients about municipal bonds. However, with April 15 arriving this week, the timing is ideal to examine how muni bond ETFs are rapidly becoming a cornerstone of fixed-income allocations in 2026.
Key Takeaways:
- Tax season creates a prime entry point for municipal bond ETFs, which gathered $12 billion in the first quarter of 2026.
- While passive ETFs dominate, investors are increasingly pivoting to active management. Funds from Capital Group (CGMU) and JPMorgan (JMUB) have gained in popularity.
- Vanguard’s active municipal bond ETF (VCRM) surpassed $1 billion in assets, signaling that advisors have comfort with professional bond selection.
advisorperspectives.com
by Todd Rosenbluth of VettaFi
4/14/26