T. Rowe Price Intermediate Municipal Income ETF Price & Performance (TAXE)

The Vanguard 500 ETF (VOO) briefly overtook the SPDR S&P 500 ETF (SPY) as the largest ETF by assets under management, signaling a shift in investor preferences. While SPY has regained the top spot, VOO's rise highlights the growing appeal of ETFs tailored to retail and strategic investors.1

The re-inversion of the 10-year and 3-month Treasury yield curve has prompted investors to adopt more risk-averse approaches. This environment is fostering interest in actively managed bond strategies, with many advisors now allocating a significant portion of client portfolios to active fixed income management.2

Municipal bond funds have gained attention for their tax advantages and strong long-term performance. Funds like Colorado BondShares and First Eagle High Yield Municipal are among top performers, as investors seek options to minimize tax burdens while achieving steady returns in fixed income portfolios.3