CGHM vs HTAX

CGHMACapital Group Municipal High-Income ETF

HTAXCNomura National High-Yield Municipal Bond ETF

In short

CGHM Index high-yield muni funds stop where the ratings stop. CGHM is Capital Group's active version: built to lean into lower-rated and unrated tax-exempt bonds, with the income paid out monthly.

HTAX Most muni ETFs stick to the safest paper. HTAX heads down the credit ladder on purpose, running Macquarie's flagship high-yield muni playbook in an ETF: active, federally tax-exempt income from medium- and lower-grade bonds, paid monthly.

Stated mandate

CGHM The fund seeks a high level of current income that is exempt from regular federal income tax.

HTAX The fund seeks a high level of current interest income that is exempt from regular federal income tax, primarily by investing in municipal securities.

Why people hold it

• CGHM The mandate is the whole point: at least 60% in bonds rated BBB+/Baa1 or below, or unrated, the corner of the muni market index funds cap or skip.yahoo.comcapitalgroup.com
• Income lands monthly and is exempt from regular federal income tax, spread across roughly 600 bond positions rather than a few big credits.
• A young fund that is already a multi-billion-dollar one, and what it holds lines up closely with the mandate it advertises.
• Sits in the upper half of the muni ETF field we grade, a solid showing for an active fund fishing in the market's messier waters.

• HTAX Runs the same yield-focused objective and process as Macquarie's flagship high-yield muni mutual fund, managed by the firm's municipal bond team.macquarie.com
• At least 80% of net assets sits in municipal securities whose income is exempt from federal income tax, tilted toward medium- and lower-grade issuers.sec.gov
• Pays monthly, and the 0.49% management fee is the whole sticker: no 12b-1 fees, no separate other expenses.sec.gov

Worth knowing

• CGHM At 0.34% it runs above the 0.30% muni cohort median, and well above plain index core muni funds like VTEB (0.03%) and MUB (0.05%).
• Lower-rated and unrated munis carry more credit and liquidity risk than investment-grade muni funds, so swings can be sharper when credit gets stressed.yahoo.com
• Launched in 2024, so the history here is short and has not yet run through a full credit cycle.

• HTAX At 0.49% it costs well above plain index muni ETFs like VTEB (0.03%) and MUB (0.05%). Active credit work is what you are paying up for.
• Medium- and lower-grade munis carry more default and liquidity risk than an investment-grade index fund, so prices can swing harder when credit gets nervous.sec.gov
• A 2025 launch with a short record, and it trades lightly next to the category's giants, which can mean wider bid-ask spreads.

Full CGHM profile⁠

Full HTAX profile⁠