3 Top Active Muni ETFs

Tom Murphy: Despite ongoing bond market volatility and economic uncertainty, the case for municipal bonds remains compelling. Munis offer attractive levels of tax-free income, relatively low volatility, and diversification. If you’re considering a muni strategy, an actively managed ETF is an intriguing option.

Today, I’ll help narrow down your choices and walk through three active ETFs worth considering when building your muni portfolio for the long haul.

3 Top Active Muni ETFs

1. JPMorgan Municipal ETF JMUB
2. Capital Group Municipal Income CGMU
3. Goldman Sachs Municipal Income ETF GMUB

Let’s start with Gold-rated JPMorgan Municipal ETF, ticker JMUB. There’s a lot to like about J.P. Morgan’s muni team. Three veterans draw from a strong research group and deep supporting resources. The managers often seek slightly more credit interest rate risks than the average peer, and the relative value lens often leads to more exposure to higher-yielding sectors such as industrial development revenue bonds. The elevated risks can introduce short stretches of underperformance during bouts of volatility, but the ETF has rewarded investors with strong risk-adjusted returns over the long term. And its 18 basis point annual fee strengthens the ETF’s appeal.

Next up is Gold-rated Capital Group Municipal Income, ticker CGMU. This ETF was launched in October 2022, so its track record is relatively short, but the comanagers have deep muni market experience and a history of strong decision-making in their mutual fund offerings. Here, Capital Group adopted its signature multimanager approach in January 2026. This shift improves accountability and execution while giving each manager room to showcase their individual strengths. The strategy’s research-driven approach gives the team flexibility to add credit risk when it sees value, and the managers may invest up to 35% in below-investment-grade debt. That means the ETF may do relatively well in strong muni markets, but returns may stumble more than peers when the market sells off. Deep resources, improved portfolio construction, and a 27-basis-point annual fee should keep the strategy competitive across market cycles.

Finally, we have Silver-rated Goldman Sachs Municipal Income ETF, ticker GMUB. Three muni veterans have managed the ETF since its July 2024 inception and adhere to a team-based approach. While operating an ETF is a new endeavor for this group, there’s no lack of muni experience here. The managers boast an attractive long-term track record with sibling mutual fund Goldman Sachs Dynamic Municipal Income GSMIX by taking more risk than the typical peer. Here, the managers will keep the portfolio’s guardrails tighter. For instance, while the mutual fund can allocate up to 30% in below-investment-grade bonds, the ETF will only invest up to 15%. As such, relative returns should be more consistent here as opposed to the mutual fund’s boom-or-bust profile. Investors also stand to benefit from the ETF’s 18-basis-point expense ratio.