iShares High Yield Muni Active ETF

HIMU

Market cap $2.22B

The iShares High Yield Muni Active ETF (CBOE:HIMU) sits in one of the more specialized corners of the bond market: actively managed, below-investment-grade and non-rated municipal debt, wrapped in an ETF and pitched at investors hunting tax-advantaged income that ordinary muni funds cannot match.

The active bond ETF wrapper is about to absorb a structural shift. the PIMCO Active Bond ETF (NYSEARCA:BOND | BOND Price Prediction) sits near $92 after a 6% total return over the past year, while Fidelity's Fidelity Total Bond ETF (NYSEARCA:FBND) and BlackRock's iShares High Yield Muni Active ETF (BATS:HIMU) round out a trio positioned to catch fund flows from the roughly 100 mutual fund-to-ETF conversions State Street expects in 2026.

For investors in higher federal tax brackets, the headline yield on a municipal bond fund understates the real value of the income.

Investors in the top federal tax bracket who hold corporate bond funds can lose a large portion of their yield to taxes before they see a dollar of income.

The world of exchange-traded funds (ETFs) is as vast as it is exciting. Investors looking for a way to gain highly diversified exposure to the markets at a very low cost have increasingly gravitated toward such investing vehicles, with some investors now growing concerned that too much concentration exists within these price-insensitive investing vehicles.