IQ MacKay Municipal Insured ETF

MMIN

Market cap $343M

Municipal bonds are back to offer compelling risk-adjusted opportunities, but future decisions from Washington can either act as a tailwind or headwind. Municipal bond funds saw net inflows during 2024, first annual inflow since 2021—which was a record year. 2024 was a record year in municipal bond issuance. With attractive yields, the market may start to pay more attention to tax-equivalent yield advantages offered through municipal debt.

We take a look at the municipal sector after a rollercoaster ride. We find that longer-duration munis remain attractive, particularly relative to corporate bonds. Separately, muni CEF discounts are wide and higher-quality bonds look best.