VanEck's Muni Bond ETF Shifts to High Yield in Q4 Rebalance

VanEck's muni bond ETF, XMPT, maintained all 49 holdings during its Q4 rebalance but shifted to higher-yielding funds, favoring tax-exempt income in a market with a 6.3% yield compared to the 1-year Treasury rate of 3.5%. Capital flowed to Nuveen Municipal High Income Opportunity Fund and BlackRock MuniVest Fund II, while reducing exposure to quality-focused holdings like Nuveen Quality Municipal Income Fund and Nuveen Municipal Credit Income Fund. Five BlackRock municipal bond closed-end funds in the index have shareholder-approved merger agreements expected to close in February 2026, which may trigger additional index changes.