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Active tax-free ETFs like T. Rowe Price's muni bond funds offer strong yields and tax savings for long-term investors.

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26 May 2026
ETF Trends
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Bullish
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Active ETFs focused on tax-free income, such as T. Rowe Price's Long and Short Municipal Income ETFs, use fundamental research to select municipal bonds that generate robust yields while minimizing tax exposure. Launched in November, these funds target different maturities and credit qualities, offering yields above 4% as of April 30. Their active management aims to outperform traditional fixed income by carefully assessing credit and economic factors, making them attractive for investors seeking tax-efficient income and portfolio growth over the medium to long term.

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