Best Fit Municipal Debt Funds

Municipal ETFs invest in the debt issued by state and local governments to fund public works projects. Broadly, their income is free from federal taxes and sometimes state taxes if investors reside in the state in which the debt is issued. These funds are typically seen as some of the safest available because many are backed by the full faith and credit of a particular municipality.

All ranked ETFs meet our Best Fit criteria.

#1 iShares S&P Short Term National Municipal Bond Fund (SUB)

Asset Class: Fixed Income

Loading... Previous Close: $106.32
Performance (YTD): 0.64% Avg. Volume: 24,865
Fees: 0.25% Market Cap: Loading...

Benchmark: S&P Short-Term National AMT-Free Municipal Bond Index

#2 iShares S&P New York Municipal Bond Fund (NYF)

Asset Class: Fixed Income

Loading... Previous Close: $110.54
Performance (YTD): 3.87% Avg. Volume: 4,726
Fees: 0.25% Market Cap: Loading...

Benchmark: S&P New York AMT-Free Municipal Bond Index

#3 iShares S&P California Municipal Bond Fund (CMF)

Asset Class: Fixed Income

Loading... Previous Close: $113.98
Performance (YTD): 4.94% Avg. Volume: 10,403
Fees: 0.25% Market Cap: Loading...

Benchmark: S&P California AMT-Free Municipal Bond Index

#4 Market Vectors Short Municipal Index ETF (SMB)

Asset Class: Fixed Income

Loading... Previous Close: $17.74
Performance (YTD): 0.91% Avg. Volume: 48,915
Fees: 0.20% Market Cap: Loading...

Benchmark: Barclays Capital AMT-Free Short Continuous Municipal Index

#5 Market Vectors Intermediate Municipal Index ETF (ITM)

Asset Class: Fixed Income

Loading... Previous Close: $23.44
Performance (YTD): 3.58% Avg. Volume: 159,457
Fees: 0.24% Market Cap: Loading...

Benchmark: Barclays Capital AMT-Free Intermediate Continuous Municipal Index

#6 iShares S&P National Municipal Bond Fund (MUB)

Asset Class: Fixed Income

Loading... Previous Close: $110.40
Performance (YTD): 2.56% Avg. Volume: 241,807
Fees: 0.25% Market Cap: Loading...

Benchmark: S&P National AMT-Free Municipal Bond Index

#7 SPDR Barclays Capital Municipal Bond ETF (TFI)

Asset Class: Fixed Income

Loading... Previous Close: $24.39
Performance (YTD): 3.05% Avg. Volume: 251,320
Fees: 0.30% Market Cap: Loading...

Benchmark: Barclays Capital Municipal Managed Money Index

#8 PowerShares Build America Bond Portfolio (BAB)

Asset Class: Fixed Income

Loading... Previous Close: $29.83
Performance (YTD): 5.84% Avg. Volume: 153,711
Fees: 0.35% Market Cap: Loading...

Benchmark: BofA Merrill Lynch Build America Bond Index

#9 Market Vectors High-Yield Municipal Index ETF (HYD)

Asset Class: Fixed Income

Loading... Previous Close: $31.99
Performance (YTD): 9.37% Avg. Volume: 331,356
Fees: 0.35% Market Cap: Loading...

Benchmark: Barclays Capital Municipal Custom High Yield Composite Index

#10 PowerShares Insured National Municipal Bond Portfolio (PZA)

Asset Class: Fixed Income

Loading... Previous Close: $25.51
Performance (YTD): 5.55% Avg. Volume: 212,397
Fees: 0.35% Market Cap: Loading...

Benchmark: BofA Merrill Lynch National Insured Long-Term Core Plus Municipal Securities Index

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Top Performing MUNICIPAL DEBT FUNDS as of 04.04.2012