So that's why I say there's plenty of meat left on the bone for investing in credit munis," McFee said.
Sector outlook Municipal bond funds buy and hold fixed income instruments issued by state and local governments or related entities.
Over the past month, major index funds iShares National Muni Bond ETF (MUB) and Vanguard Tax-Exempt Bond ETF (VTEB) have raked in about $2.2 billion of combined inflows, according to FactSet.
The big iShares and Vanguard muni funds have each returned about 1.7%, year to date, compared with 1.6% for the iShares Core U.S.
And Vanguard is not the only asset manager pushing new muni funds into the market.
Persons:
weren't, Steve McFee, McFee, Goldman Sachs
Organizations:
Vanguard, Bond, McFee, AAA, Muni Bond ETF, Vanguard muni, iShares, Aggregate Bond