American Century Diversified Municipal Bond ETF

TAXF

Börsenwert 691 Mio. $

Midterm elections are increasingly taking over the headlines, and that includes coverage of markets. While inflation, rates, and geopolitics probably have more outright impact on portfolios, investors and market watchers still look to midterm elections as a major event.

The yield on the 30-year hit a multi-decade high this week, spiking amid continued fiscal and monetary concerns. The 30-year hitting 5.45%, its highest mark since 2004, comes amid an already busy year for bonds.

Last minute shopping, cold weather — tax loss harvesting? Many investors and advisors are used to harvesting losses from their investments in the holiday season.

In more sanguine times, advisors and investors turn to bonds for portfolio diversification, income — and hopefully — some volatility reduction. However, things aren't always easy in the fixed income market, and the current environment proves as much.

The fixed income landscape continues to offer real opportunity this year as well as persistent, events-driven uncertainty. Still, cutting through the headlines, investors can find major opportunities inside the portfolios and in adding new funds.

The ETF landscape is a very competitive one right now, with more and more funds launched each year. That is producing a lot of fee competition as firms look to earn investor assets and bring attention to their standout strategies.

The municipal bond landscape continues to receive significant interest in both flows and supply. That, and investors looking to get muni bonds exposure for tax purposes in portfolios, positions them for serious ETF interest.

The muni bond landscape picked up significant interest to end 2025, with investors clamoring for the yields available therein. American Century Investments Vice President and Senior Portfolio Manager Joe Gotelli recently sat down with VettaFi to talk about the muni bonds outlook.

In broad terms, there appears to be little headline risk facing advisors and income investors mulling municipal bonds. All 50 states carry investment-grade credit ratings, confirming that their credit quality remains solid.

American Century Investments has established itself as an innovative player in the ETF space, after launching its first products in January 2018. The index-based American Century US Quality Value ETF (VALQ) and the actively managed American Century Diversified Corporate Bond ETF (KORP) are still trading today.