More evidence is mounting that investors are increasingly looking to fill their portfolios with muni bonds.
Last week, VettaFi hosted its Q1 2025 Fixed Income Symposium. The symposium brought together a number of thought leaders to examine fixed income strategies for 2025.
During the symposium, attendees answered a variety of survey questions in regards to their fixed income outlook. One question in particular that stood out was how attendees are viewing municipal bond portfolios.
When asked about their plans for muni bond investing in 2025, 68% of attendees expressed intention to bolster municipal bond exposure this year. Crucially, 30% of respondents said they would use ETFs to build up muni bond weight in their portfolios.
These survey results from VettaFi are just the latest bit of proof that muni bonds are being seen as an attractive fixed income choice. In particular, the survey also showed that muni bond ETFs are a popular vehicle for staying engaged with municipals.
Muni Bond ETFs Offer Strong Benefits
With all of that in mind, investors might want to take a look at the Eaton Vance Short Duration Municipal Income ETF (EVSM ). EVSM gives investors access to an actively managed selection of short-duration munis.
Inside EVSM’s portfolio is a broad selection of muni bonds across a number of different sectors. This allows the fund to more easily capture momentum in particular muni bond sectors.
The average effective maturity for the fund currently sits at about 2.5 years. This time horizon can let investors take on muni enthusiasm while mitigating risk from long-term interest rate shifts.
With muni momentum on the rise, more and more investors are choosing to allocate assets to EVSM. As of February 11th, 2025, FactSet data shows that EVSM has seen over $18 million in net flows over the last month.
These flows may be due in part to the fund’s results. As of February 11th, 2025, EVSM is offering a 30 day SEC yield of 3.07%.
For more news, information, and analysis, visit The ETF Yield Channel.
