Three top-ranked municipal bond mutual funds with tax-free income and historical annualized returns.

From Nasdaq: 2025-03-17 07:35:00

Municipal bond mutual funds offer investors a tax-free income with regular interest payments. Three top-ranked funds include Victory Tax Exempt Short Term Fund (USSTX), American High-Income Municipal Bond (AMHIX), and Putnam Strategic Intermediate Muncpl (PPNAX). These funds have Zacks Mutual Fund Rank #1 and historical annualized returns ranging from 1.7% to 2.1%.

Victory Tax Exempt Short Term Fund (USSTX) focuses on tax-exempt securities with a 3-year annualized return of 2.1% and an expense ratio of 0.46%. American High-Income Municipal Bond (AMHIX) aims for high current income exempt from federal taxes and has a 3-year annualized return of 2%. Putnam Strategic Intermediate Muncpl (PPNAX) seeks high current income exempt from federal taxes with a 3-year annualized return of 1.7%.

Investors interested in municipal bond funds can explore the full list of funds to make informed decisions. For more insights and top-performing mutual fund recommendations, subscribe to Zacks’ free Fund Newsletter for weekly updates. Check out Zacks Investment Research for the latest stock recommendations and market insights.



Read more at Nasdaq: Buy These 3 Municipal Bond Funds to Lessen Your Portfolio Risk