I last covered the VanEck High Yield Muni ETF (BATS:HYD) in late 2023. In that article, I argued that HYD's good tax-advantaged yield made the fund a buy. Since then, the fund has posted reasonably good returns, outperforming many other bond sub-asset classes before taxes. After-tax returns would look even stronger, although these would obviously vary. Right now, HYD offers investors a tax-advantaged 4.3% yield. Although the dividend yield itself is lower than that of most bonds and bond sub-asset classes, it is a reasonably good after-tax yield for most investors, especially those in higher tax brackets.
