If you're evaluating mutual funds for your investment portfolio or retirement account, this list highlights the best municipal bond funds to consider now, based on each fund outperforming the Bloomberg Barclays U.S. Municipal Bond Index over the last one-, three-, five- and 10-year periods. Shaded cells indicate the best-of-the-best funds based on 10-year performance. Of 454 municipal bond funds at least 10 years old, 31 of them, or 7%, won awards.
All returns as of Dec. 31, 2020.
View Full Special Report: Best Mutual Funds Awards
View All Award-Winning Funds In Each Category
Best Municipal Bond Funds
| Mutual fund | Symbol | 1-year total return (%) | 3-year average annual return (%) | 5-year average annual return (%) | 10-year average annual return (%) | Morningstar category | Closed to new inv |
|---|---|---|---|---|---|---|---|
| Benchmark: BBgBarc Municipal | 5.21 | 4.64 | 3.91 | 4.63 | |||
| Invesco Rochester Municipal Opps A | ORNAX | 5.84 | 9.59 | 8.11 | 8.27 | High Yield Muni | No |
| Invesco AMT-Free Municipal A | OPTAX | 7.51 | 8.98 | 7.05 | 8.25 | High Yield Muni | No |
| Nuveen CA High Yield Municipal Bond I | NCHRX | 5.96 | 5.69 | 5.47 | 8.25 | Muni California Long | No |
| MainStay MacKay High Yield Muncpl Bd I | MMHIX | 5.43 | 6.27 | 5.82 | 7.45 | High Yield Muni | No |
| Invesco California Mncpl A | OPCAX | 6.02 | 7.55 | 6.09 | 7.28 | Muni California Long | No |
| AB Municipal Income | MISHX | 6.23 | 6.04 | 5.87 | 7.24 | Muni National Long | No |
| AMG GW&K Municipal Enhanced Yield I | GWMEX | 6.32 | 5.74 | 5.50 | 6.72 | High Yield Muni | No |
| PIMCO High Yield Municipal Bond I | PHMIX | 6.21 | 6.23 | 6.13 | 6.64 | High Yield Muni | No |
| Invesco Rochester New York Municipals A | RMUNX | 5.80 | 9.18 | 7.52 | 6.53 | Muni New York Long | No |
| Delaware National Hi-Yld Muni Bd A | CXHYX | 5.89 | 5.56 | 5.27 | 6.47 | High Yield Muni | No |
| Dupree Taxable Municipal Bond | DUTMX | 6.23 | 4.94 | 4.80 | 6.23 | Muni National Long | No |
| Nuveen Municipal Total Return Mgd Accts | NMTRX | 5.24 | 5.13 | 4.74 | 6.11 | Muni National Long | No |
| Nuveen All-American Municipal Bond A | FLAAX | 5.63 | 4.86 | 4.54 | 5.82 | Muni National Long | No |
| Pioneer AMT-Free Municipal A | PBMFX | 6.75 | 5.40 | 4.42 | 5.81 | Muni National Long | No |
| Vanguard High-Yield Tax-Exempt | VWAHX | 5.39 | 5.23 | 4.85 | 5.64 | Muni National Long | No |
| Eaton Vance AMT-Free Municipal Income I | EVMBX | 5.34 | 4.82 | 3.96 | 5.55 | Muni National Long | No |
| Victory High Income Municipal Bond Y | RHMYX | 5.76 | 4.82 | 4.51 | 5.52 | High Yield Muni | No |
| Franklin CA Tax Free Income A1 | FKTFX | 5.29 | 4.86 | 4.28 | 5.52 | Muni California Long | Yes |
| Vanguard CA Long-Term Tax-Exempt Inv | VCITX | 5.51 | 4.86 | 4.27 | 5.46 | Muni California Long | No |
| PIMCO Municipal Bond Instl | PFMIX | 5.88 | 5.17 | 4.63 | 5.34 | Muni National Long | No |
| Vanguard Long-Term Tax-Exempt | VWLTX | 6.21 | 5.15 | 4.48 | 5.26 | Muni National Long | No |
| Franklin High Yield Tax Free Inc A1 | FRHIX | 5.86 | 5.12 | 4.05 | 5.25 | High Yield Muni | Yes |
| Vanguard OH Long-Term Tax-Exempt | VOHIX | 7.04 | 5.31 | 4.63 | 5.23 | Muni Ohio | No |
| Delaware Tax-Free USA A | DMTFX | 8.32 | 5.51 | 4.49 | 5.22 | Muni National Long | No |
| Vanguard NJ Long-Term Tax-Exempt Inv | VNJTX | 6.02 | 5.46 | 5.08 | 5.20 | Muni New Jersey | No |
| Virtus Seix High Grade Municipal Bond A | SFLTX | 6.84 | 4.93 | 4.13 | 5.15 | Muni National Long | No |
| MainStay MacKay Tax Free Bond B | MKTBX | 5.90 | 4.79 | 3.97 | 5.14 | Muni National Long | Yes |
| Vanguard PA Long-Term Tax-Exempt Inv | VPAIX | 5.86 | 5.19 | 4.54 | 5.12 | Muni Pennsylvania | No |
| Eaton Vance NJ Municipal Income A | ETNJX | 5.38 | 5.13 | 4.13 | 4.98 | Muni New Jersey | No |
| Vanguard NY Long-Term Tax-Exempt Inv | VNYTX | 5.43 | 4.71 | 4.07 | 4.83 | Muni New York Long | No |
| Vanguard MA Tax-Exempt Inv | VMATX | 6.47 | 5.14 | 4.24 | 4.83 | Muni Massachusetts | No |
