iShares National Muni Bond ETF

MUB

Market cap $40.2B

Many investors in 2025 need dependable passive income, and one outstanding way to achieve this is to invest in exchange-traded funds (ETFs).

Many investors in 2025 need dependable passive income, and one outstanding way to achieve this is to invest in exchange-traded funds (ETFs).

I rate both MUB and VTEB as buys, expecting capital appreciation from anticipated rate cuts to 3.25–3.5% by Q1 2026. VTEB's longer maturity profile positions it for higher performance as rates decline, making it my preferred pick for this rate-cut thesis. Both ETFs offer high credit quality, strong liquidity, and diversification, but recent returns have been weak due to delayed rate cuts.

Building a strong retirement portfolio takes time and effort, but a solid foundation makes long-term success achievable. I learned that combining stability with selective opportunities creates a portfolio that's resilient and requires minimal adjustments. With the right balance, even small changes can enhance returns while letting me stay confident and sleep well through market swings.

Many investors in 2025 need dependable passive income, and one outstanding way to achieve this is to invest in exchange-traded funds (ETFs).

We've expected credit spreads to deteriorate for quite some time. In our view, new economic data, a technical lag in spread activity, and the Iran war might consolidate the argument. While re-inflation risk has to be acknowledged, we think investors will stay in and migrate to higher-quality bonds from riskier assets. The iShares National Muni Bond ETF is a prime candidate, showing less spread risk than investment grade bonds and lower volatility than intermediate-term treasury ETF, IEF.

Many investors in 2025 need dependable passive income, and one outstanding way to achieve this is to invest in exchange-traded funds (ETFs).

Maintaining a neutral stance on iShares National Muni Bond ETF due to opposing forces: Structural funding concerns versus diminished inflation worries. MUB's seven-year duration makes it sensitive to yield changes, but credit risk remains minimal as most holdings are AA-rated, and credit spreads have been under control. Inflation risks are subdued thanks to lower oil prices and modest U.S. import exposure, easing one major headwind for fixed income.

The Republican-controlled U.S. House passed President Trump's tax and spending bill by a razor-thin margin of 215-214 votes, adding $3.8 trillion to the national debt. The bill is now headed for the Senate approval.

Rising tariff turmoil has sparked a run from credit-sensitive instruments, with escalating trade tensions threatening economic stability. Wednesday's GDP print stoked recessionary fears when it showed the U.S. economy contracted for the first time since early 2022.