Many Boomers in 2025 need dependable passive income, and one outstanding way to achieve this is to invest in exchange-traded funds (ETFs). Unlike open-end mutual funds, ETFs trade on major exchanges like stocks. They own financial assets, including stocks, bonds, currencies, debt, futures contracts, and commodities such as gold bars. Having more passive income can help cover rising costs, such as mortgages, insurance, taxes, and other expenses. This makes it easier for investors to set aside money for future needs as they prepare for or begin retirement. Dependable recurring dividends from quality high-yield municipal bond ETFs are a recipe for success.
Interest from most municipal bonds is exempt from federal income tax and may also be exempt from state and local taxes if you live in the state that issued the bond. However, there are exceptions, as some muni bonds may be subject to the federal alternative minimum tax (AMT), and interest from bonds issued in a state other than your own is typically taxed at the state level.
One significant advantage of owning municipal bond ETFs is that they can be sold at any time when the markets are trading. We screened our 24/7 Wall St. ETF research database and found four top funds that have these qualities:
- High dividend payout every 30 days. However, in some months, the payout doubles and the fund skips a month. Double-check before investing.
- Trades at or at a discount to net asset value.
- Major Wall Street firms manage them.
- Reasonable expense ratio.
Four top funds hit our screens, making sense for investors seeking dependable, monthly distributions rather than quarterly ones. NAV means the current net asset value of the fund.
SPDR Nuveen ICE High Yield Municipal Bond ETF (HYMB)
The fund invests substantially all, but at least 80%, of its total assets in the securities comprising the index and in securities that the sub-adviser determines have economic characteristics that are substantially identical to the financial characteristics of the securities that comprise the index. The index is market capitalization-weighted and designed to measure the performance of lower-rated (A3/A+ or lower) and unrated U.S. dollar-denominated tax-exempt debt. The fund targets bonds rated below investment grade, providing yields superior to other funds in the category.
> Dividend yield = 4.55% paid monthly
> NAV = $24.94
> Expense ratio = 0.35%
> Assets under management = $2.72 billion
VanEck High-Yield Municipal Index ETF (HYD)
The fund typically invests at least 80% of its total assets in securities that comprise the benchmark index. The index consists of publicly traded municipal bonds that cover the U.S. dollar-denominated high-yield long-term tax-exempt bond market. This is one of the largest and most established high-yield muni ETFs.
> Dividend yield = 4.31% paid monthly
> NAV = $50.71
> Expense ratio = 0.32%
> Assets under management $3.48 billion
JPMorgan High Yield Municipal ETF (JMHI)
Under normal circumstances, the fund invests at least 80% of its assets in municipal securities, the income from which is exempt from federal income tax. Municipal securities may include, but are not limited to, variable rate demand obligations, short-term municipal notes, municipal bonds, tax-exempt commercial paper, private activity and industrial development bonds, tax anticipation notes, and participations in pools of municipal securities. The fund is an actively managed high-yield muni fund, and the expense ratio is very reasonable given the active management.
> Dividend yield = 4.3% paid monthly
> NAV = $50.32
> Expense ratio = 0.35%
> Assets under management $225 million
Nuveen Municipal Value Fund Inc. (NUV)
This is the only fund in the group that uses a low 6.05% leverage level. Many funds sell preferred shares, using the proceeds to buy more bonds, hence the leverage. The fund’s main objective is to achieve a current income exempt from federal income tax. The fund’s secondary objective is the enhancement of portfolio value through the selection of tax-exempt bonds and municipal market sectors. The fund seeks to achieve its investment objectives by investing in a portfolio of municipal securities, a significant portion of which the fund’s investment sub-adviser believes are underrated and undervalued, based upon its bottom-up, research-driven investment strategy. Under normal circumstances, the fund will invest at least 80% of its assets in municipal securities, the income from which is exempt from regular federal income taxes.
> Dividend yield = 4.3% paid monthly
> NAV = $9.19
> Expense ratio = 0.60%
> Assets under management $121 million
Four Stocks That Yield at Least 12% Are Passive Income Kings
Top Gaining Stocks
Top Losing Stocks