The munis bonds also offer relatively attractive yields, especially for those in the higher income brackets. TFI has a 2.25% 30-day SEC yield or a 3.97% tax equivalent 30-day SEC yield for those in the highest income bracket. MUB has a 1.86% 30-day SEC yield and a 3.28% tax equivalent 30-day SEC yield. ITM has a 2.4% 30-day SEC yield and a 3.98% tax equivalent 30-day SEC yield.

However, both Anne Lester, senior portfolio manager at JPMorgan, and Rieder warned that investors should pare down their expectations as the shifting outlook on interest rates means that fixed-income investments may not be as profitable as they have been in the past.

For more information on the fixed-income market, visit our bond ETFs category.

Max Chen contributed to this article.