Nine new bond ETFs match the index fund beside them, or cost more
State Street, Northern Trust, Victory Capital, New York Life and T. Rowe Price listed nine bond ETFs from September 22 to October 1, 2026, with waiver fees of 0.34% on two funds and 0.18% on a third.
Key takeaways
State Street, Northern Trust, Victory Capital, New York Life and T. Rowe Price listed nine bond ETFs between Tuesday, September 22 and Thursday, October 1, 2026. None of the nine costs less than the index fund set beside it.
Fees on the funds already listed are as of Monday, October 5, except where a prospectus or fact-sheet date is named. Fee now is what an investor pays after a waiver, where the prospectus has one. Where it does not, the two fee columns are the same.
On VMHY and MMHI, the manager covers part of the cost, and the investor pays 0.34%. On VMSD, the waiver leaves 0.18%.
The single-year funds cost more
On Wednesday, September 23, State Street added three actively managed funds to its MyIncome suite. Each is built to close on a date, so an investor can hold a series of years instead of one bond fund that never matures.
MYCP holds corporate bonds and is built to liquidate on or about December 15, 2036. MYHF holds corporate bonds rated below investment grade, the riskier tier, and MYML holds municipal bonds, the debts of states and cities. Those two are built to liquidate on or about December 15, 2032.
State Street says the funds "do not seek to distribute any predetermined amount at maturity." In the final year, money from bonds that come due early can sit in cash.
iShares already runs an index fund for each of those years, and each one costs less. The 0.35% on IBHL is the expense ratio in the current prospectus, equal to the management fee, with other expenses at zero.
Invesco's 2032 high-yield fund, BSJW, charges 0.42% as of Sunday, October 4. State Street's high-yield fund falls between that fee and iShares. Its municipal fund, at 0.20%, is above iShares at 0.10% and above Invesco's BSMW at 0.18%, also as of Sunday, October 4.
A shorter list, at the same fee
Northern Trust's two state funds began on Tuesday, September 22. Both track an index. Interest is meant to be free of federal income tax and of income tax in that state.
TXCA matches VTEC at 0.06%, the fee in Vanguard's prospectus dated Friday, March 27, 2026. iShares' California fund, CMF, charges 0.08%. TXNY matches the 0.09% on NYF and on Vanguard's New York fund, MUNY.
Northern Trust's index description requires a bond to have at least one day and less than 20 years left to final maturity. As of Tuesday, June 30, 2026, CMF had 11.76% of its portfolio in bonds with 20 to 25 years left and 8.29% beyond 25 years. MUNY, the same day, had 23.5% in the 20-to-30-year range and 3.3% past 30 years.
As of Sunday, October 4, VTEC held bonds due in 2048 and 2061. As of Wednesday, September 30, NYF held bonds due in 2049 and 2055.
Three low fees are waivers
Nasdaq's notice of Monday, September 21 said Victory's two funds were anticipated to begin trading on Wednesday, September 23. Victory dates the inception to Tuesday, September 22.
The September 21 prospectus puts the full fee on VMHY at 0.77%. The adviser has agreed to waive its fee and cover expenses so the total does not exceed 0.34% through at least Sunday, October 31, 2027.
Only the fund's board can end that agreement. The adviser may recoup waived fees for up to three years after the fiscal year of the waiver.
VMSD works the same way. The full fee is 0.62%, and the cap is 0.18% through at least the same date, with the same right to recoup. The fund aims to keep its sensitivity to interest rates within two years of a three-year municipal bond index, and it may put up to 20% of assets in bonds rated below investment grade.
That 0.18% is still more than twice the 0.07% on SUB. SUB holds investment-grade bonds with one month to five years left, so the higher fee is not a charge for the same portfolio.
After the waiver, VMHY is 0.34% against HYD at 0.32% on VanEck's fact sheet dated Monday, August 31, 2026. iShares' active high-yield municipal fund, HIMU, lists a 0.40% expense ratio and a 0.39% net fee in its current prospectus, and it keeps at least 65% of assets in high-yield bonds.
New York Life launched MMHI on Thursday, October 1. It trades on NYSE Arca, and MacKay Shields manages the portfolio.
The prospectus dated Tuesday, September 22 lists a full fee of 0.69%. One agreement caps expenses at 0.40% unless the board ends it. A further waiver takes the fee an investor pays to 0.34% until Saturday, August 28, 2027.
The fund expects to put at least 60% of assets in municipal bonds rated BBB+ or Baa1 or lower. Those letters are still investment grade at the top of that range, and the fund can own lower-rated bonds as well. New York Life says it excludes distressed bonds and bonds that are not paying interest.
Emerging-market bonds cost more too
T. Rowe Price said TDEM began trading on Nasdaq on Thursday, October 1. Its inception date is Wednesday, September 30. It charges 0.45%. Managers mix emerging-market government bonds, company bonds and bonds in local currencies, and the fund can own debt of any rating, including bonds that have defaulted.
LEMB charges 0.30% and does not buy company bonds. BNY Mellon's active fund, BEMD, charges 0.40% and focuses on emerging-market bonds in dollars, euros and sterling.
On VMHY, VMSD and MMHI, the waiver fee still does not beat the index fund beside each one.
ETFs in this story
Frequently asked questions
Does any of the nine cost less than the index fund beside it?
None of the nine costs less than the index fund set beside it.
Which new funds match the fee beside them?
TXCA matches VTEC at 0.06%, and TXNY matches NYF at 0.09%.
What do the waiver fees leave an investor paying?
The investor pays 0.34% on VMHY and MMHI, and the waiver leaves 0.18% on VMSD.
Do those waiver fees beat the index fund beside them?
On VMHY, VMSD and MMHI, the waiver fee still does not beat the index fund beside each one.
