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Dividend-Focused ETF Gains Traction as Fed Cuts Rates
11 Nov
Summary
- Investors pour $2 billion into JPMorgan Municipal ETF in last month
- ETF offers tax-free income through investment-grade municipal bonds
- Active management aims to preserve capital amid interest rate changes
As of November 11, 2025, investors have been increasingly drawn to the JPMorgan Municipal ETF (JMUB), an actively managed fund that offers a portfolio of investment-grade municipal securities. Over the past month, the fund has seen over $2 billion in inflows as investors anticipate further interest rate cuts by the Federal Reserve.
The fund's primary appeal lies in its tax-free income, with its portfolio composed of around 1,700 positions in municipal bonds across the country. Approximately 60% of the holdings are rated AAA or AA, with an average life of just over seven years. This active approach allows the fund to manage factors like duration and credit quality in an effort to preserve capital, particularly important as the Fed continues to adjust monetary policy.
While JMUB may not have the massive asset base or popularity of some traditional ETFs, its recent surge in investor interest suggests it could be a compelling option for those seeking alternatives to the broader market's performance.
