Consequently, muni bond ETFs, which offer attractive tax-free income, may still attract investor interest. For instance, MUB has a 2.81% taxable equivalent 30-day SEC yield for those in the highest income bracket. TFI has a 3.35% taxable equivalent yield. ITM shows a 3.27% taxable equivalent 30-day SEC yield. The high-yield muni bond ETFs have even higher income opportunities, with HYD’s 7.38% taxable equivalent yield and HYMB’s 7.61% taxable equivalent yield.

While the Federal Reserve has embarked on the start of interest rate normalization, many still believe that rate hikes will be gradual, so long-term debt may still have some breathing room

“We still think that the end of the yield curve won’t move much,” Ed Lopez, marketing director at Van Eck Global, told ETF Trends in a call.

Consequently, investors may also look to longer duration muni funds, such as the Market Vectors Long Municipal Index ETF (NYSEArca: MLN), which has a 11.5 year duration and a 2.90% 30-day SEC yield or a 4.8% taxable equivalent yield.

Max Chen contributed to this article.