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Adding Municipals? 3 Muni ETFs That Have Led Over 3 Years

BY | ETF Database

8:53 am ET 09/22/26 | 7 VIEWS

Related Symbols
FLMI
IROC

Municipal bonds have seen an uptick in interest as more investors look to reduce tax exposures. Economic headwinds are putting pressure on overall portfolios, while shifting yield pictures are seeing portfolios refresh their debt holdings. With municipals offering yields at notable highs and strong issuance, muni ETFs could intrigue. The Franklin Dynamic Municipal Bond ETF (FLMI ), for example, can appeal as one of three recent leading muni performers by AUM.Key Takeaways: Muni bonds have been a popular segment this year, with near record issuance. The top three muni bond ETFs over the last three years per ETF Database data all invest actively. FLMI, JMHI, and IROC have all returned more than 4% over the last three year period according to that data set. FLMI charges a 30 basis point (bps) fee to actively invest in muni securities. Among the top muni ETFs by AUM, FLMI has returned 4.75% over the last three years, per ETF Database data. The strategy actively invests in tax-exempt munis, looking to maintain a maturity of three to 10 years in its suite. It offered a 4% distribution rate as of September 18 and 4.2% 30-day SEC yield as of August 31, per Franklin Templeton data. The JP Morgan High Yield Municipal ETF (JMHI B-), meanwhile, charges 35 bps for its own actively take on muni bonds. The fund, which recently hit its three-year ETF milestone, has returned 4.53% over three years ending in September. JMHI offered a 4.37% 30-Day SEC yield as of August 31, per JP Morgan data. Finally, among the top three muni bond ETFs by returns with at least $100 million in AUM, the Invesco Rochester High Yield Municipal ETF (IROC C+) charges a 39 bps fee. The fund actively invests in high yield muni bonds. IROC has returned 4.44% over the last three years. It provided a 5.01% 30-day SEC yield and a 5.11% distribution rate as of September 18. See more: 3 Floating Rate ETFs to Try as Interest Rates Set to Rise Together, that trio of ETFs represent some appealing long-term performers in the muni bonds space. As the category continues to grow in popularity this year, funds like FLMI, JMHI, and IROC have a potential role to play. For those looking into the space for the long term, the trio may intrigue. For more news, information, and analysis, visit the Fixed Income Content Hub.

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