MUB is not light on states with pension risk. Munis issue by California, New York, Illinois and New Jersey combine for about 52% of the fund’s weight.

High-yield muni bond ETFs have been hit this year by rising rates, though it is worth noting that all of the ETFs mentioned in this piece have traded higher over the past 90 days, a time frame that has seen the Detroit pension controversy escalate.

S&P Capital IQ has marketweight ratings on the Market Vectors High Yield Municipal Index ETF (NYSEArca: HYD) and the SPDR Nuveen S&P High Yield Municipal Bond ETF (NYSEArca: HYMB). California, Illinois and New Jersey combine for over 29% of HYMB’s weight.

iShares National AMT-Free Muni Bond ETF

ETF Trends editorial team contributed to this post. Tom Lydon’s clients own shares of HYD.