Overview
High-yield municipal bonds — around 2,000 lower-rated and unrated munis paying 4.5% federal-tax-free.
Top Holdings
| Ticker | Holding | Weight |
|---|---|---|
| PR | Puerto Rico restructured bonds | 3.8% |
| TOB | Tobacco settlement bonds | 3.2% |
| ARPT | Airport revenue bonds | 2.6% |
| CCRC | Senior-living facility bonds | 2.4% |
| CHRT | Charter school bonds | 2.2% |
| HOSP | Hospital revenue bonds | 2.1% |
| IDB | Industrial development bonds | 1.9% |
| TIF | Tax-increment financing | 1.7% |
| UNIV | Private university bonds | 1.5% |
| TOLL | Toll road revenue bonds | 1.4% |
Fund Details
Investment Thesis
High-yield munis are the income market's quiet arbitrage: default rates far below equivalent-rated corporates, yields that gross up spectacularly after tax — HYD's 4.5% tax-free is worth 7%+ to a top-bracket investor — and a retail-dominated market where an index fund harvests illiquidity premiums. Credit work matters (Puerto Rico taught everyone); diversification across 2,000 issues is the answer.
Who It's For
High-bracket income investors stepping past investment-grade munis for real yield, in taxable accounts where the exemption bites. The muni market's junk-bond fund, monthly payer.
10-Year History
| Year | Close | % Chg |
|---|---|---|
| 2016 | $42.38 | -- |
| 2017 | $45.34 | +7.0% |
| 2018 | $46.70 | +3.0% |
| 2019 | $50.90 | +9.0% |
| 2020 | $52.43 | +3.0% |
| 2021 | $55.58 | +6.0% |
| 2022 | $46.69 | -16.0% |
| 2023 | $49.02 | +5.0% |
| 2024 | $50.00 | +2.0% |
| 2025 | $51.00 | +2.0% |
| Year | Yield |
|---|---|
| 2016 | 4.20% |
| 2017 | 4.00% |
| 2018 | 4.40% |
| 2019 | 4.00% |
| 2020 | 3.80% |
| 2021 | 3.40% |
| 2022 | 4.30% |
| 2023 | 4.60% |
| 2024 | 4.40% |
| 2025 | 4.50% |
| Year | AUM | % Chg |
|---|---|---|
| 2016 | $1.8B | -- |
| 2017 | $2.3B | +27.8% |
| 2018 | $2.2B | -4.3% |
| 2019 | $3B | +36.4% |
| 2020 | $2.8B | -6.7% |
| 2021 | $4B | +42.9% |
| 2022 | $3B | -25.0% |
| 2023 | $3.2B | +6.7% |
| 2024 | $3.5B | +9.4% |
| 2025 | $3.8B | +8.6% |
Historical figures are ETFHub estimates modelled from asset-class return patterns and may differ from official fund records. Data as of August 2026.
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