Moreover, there are just a few bond initiatives for this election season. For example, California’s Proposition 2, or the so-called Rainy Day Budget Stabilization Act, will help provide a greater cushion for the state government in case of another financial crisis or emergency.

The proposition “has the potential to significantly improve the state’s financial flexibility and credit rating going forward,” Hayes said.

California accounts for a large portion of the broad muni bond ETFs, including 22.7% in MUB, 15.1% in ITM and 11.7% in MUNI. Alternatively, investors can specifically target California muni bonds through the iShares California AMT-Free Muni Bond ETF (NYSEArca: CMF), SPDR Nuveen Barclays California Municipal Bond ETF (NYSEArca: CXA) and PowerShares Insured California Municipal Bond Portfolio (NYSEArca: PWZ). [Strong Finances Boost Appeal of California Muni ETFs]

For more information on the munis market, visit our municipal bonds category.

Max Chen contributed to this article.