"The fund's mission is straightforward: deliver as much federal tax-exempt income as possible while managing credit risk through active security selection rather than passive index replication."
"The fund's 30-day SEC yield of about 5.2% translates to a tax-equivalent yield of nearly 8.8% for investors in the highest tax brackets."
"Income comes from two sources: the tax exemption on municipal bond interest, and a deliberate tilt toward lower-rated and unrated bonds that carry higher coupons."
"The net expense ratio is about 0.4%, with a fee waiver in place through June 30, 2026, keeping costs lean for an actively managed fund."
The iShares High Yield Muni Active ETF (HIMU) aims to provide federal tax-exempt income while managing credit risk through active security selection. It converted from a mutual fund to an ETF, lowering entry costs. The fund's 30-day SEC yield of about 5.2% equates to a tax-equivalent yield of nearly 8.8% for high tax bracket investors. HIMU holds 894 positions, with a significant portion in unrated securities, allowing for higher yields. The net expense ratio is approximately 0.4%, and monthly distributions have been consistent, providing a predictable income stream.
Read at 24/7 Wall St.
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