“Healthy inflows so far this year suggest demand for munis remains strong. For the week ended February 21, muni bond funds, including mutual funds and ETFs, took in $347 million of net new money, raising overall net inflows for 2018 to $6.8 billion,” reports ETF Daily News.
History shows that municipal bonds can also help investors endure significant declines in equity markets.
“Municipal bonds have been steady growers not just in times of rising interest rates but also during market downturns. In the past 20 years, the stock market has undergone two massive declines, and in both cases, short-term, investment-grade munis–those carrying an A rating or higher–helped investors stanch the losses,” according to ETF Daily News.
Bond ETF investors can also look to quality muni bond options like iShares National AMT-Free Muni Bond ETF (NYSEArca:MUB) and the SPDR Nuveen Bloomberg Barclays Municipal Bond ETF (NYSEArca:TFI).
For more information on the munis market, visit our municipal bonds category.