VanEck High Yield Muni ETF

HYD

Börsenwert 4,05 Mrd. $

Most retirees compare bond yields at face value and quietly leave money on the table.

VanEck High Yield Muni ETF offers a high tax-equivalent yield of ~7.38% for top-bracket investors, driven by high-yield, longer-maturity municipal bonds. HYD's attractive yield comes with significant interest-rate sensitivity, as its ~9.35-year modified duration exposes investors to considerable downside from rate increases. Rising inflation and energy prices, combined with a hawkish rate outlook, create a challenging environment for HYD's long duration, including considerable lower-rated muni exposure.

Treasury's pivot toward long-bond buybacks gives duration buyers their first clear green light in months — and the November midterms may add a second leg. Key takeaways Treasury's decision to at least double 10- to 30-year buybacks is a policy signal, not a technical footnote.

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The iShares High Yield Muni Active ETF (HIMU) is an actively managed portfolio holding approximately 900 municipal bonds.

Muni ETFs just posted record inflows. Jim Colby on why low volatility, strong risk-adjusted returns, and tax-advantaged yields keep drawing investors in.

The 10-year Treasury yields 4.43%, which sounds competitive until a high earner runs it through the tax screen.

When advisors and investors hear the terms “high yield” or “junk” as it relates to bonds, they understandably have some apprehension. After all, junk bonds carry elevated credit risk relative to their investment-grade peers.

HYD is a muni bond ETF, investing in both high-yield and investment-grade muni bonds. It has a tax-advantaged 4.4% yield, which should provide above-average income to some investors in higher tax brackets. It seems broadly inferior to FLMI, another muni bond ETF, with higher-quality holdings and stronger performance.

As we navigate the first quarter of 2026, advisor interest is increasingly shifting toward traditional hedges and quality-oriented products. VanEck, a pioneer in thematic and hard-asset investing, has seen its lineup take center stage as market participants grapple with a shifting macro environment.