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% |
Price history from exchange data. Dividend yields from reported distributions; some earlier years are derived from total-return vs price-return data or are ETFHub estimates. AUM history is an ETFHub estimate modelled from current assets and annual returns (fund flows not reflected) and may differ from official fund records. Data as of October 2026.
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