CGHM vs IROC

CGHMACapital Group Municipal High-Income ETF

IROCBInvesco Rochester High Yield Municipal 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.

IROC Invesco's Rochester muni desk, ETF-wrapped: active high-yield munis at 0.39% net of a waiver through December 31, 2026, with room to add leverage through tender option bonds and duration normally kept under 7.5 years.

Stated mandate

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

IROC The Fund is actively managed and seeks its objective by investing at least 80% of assets in high-yield municipal securities and economically similar derivatives or instruments. Income from the municipal securities is intended to be exempt from federal income taxes.

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.

• IROC Run by Invesco's long-standing Rochester municipal desk, with at least 80% of assets in high-yield munis whose income is intended to be exempt from federal income taxes.invesco.com
• Tools most index muni funds don't carry: inverse floaters (tender option bonds) for leverage, plus 144A and restricted paper, so the manager can hunt yield off-index.sec.gov
• Pays monthly, spread across roughly 200 bonds, with weighted average portfolio duration normally under 7.5 years.invesco.com

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.

• IROC Leverage cuts both ways: the prospectus notes inverse floaters typically swing more than similar-maturity bonds and can lose some or all of their principal.sec.gov
• Fee sits near the category median: 0.39% net of a waiver through December 31, 2026, then 0.40% gross. HYD (0.32%) and FMUB (0.30%) charge less, with no waiver attached.
• One of the smaller, thinner-traded funds in a category stocked with giants, so bid-ask spreads can matter as much as the fee.

Full CGHM profile⁠

Full IROC profile⁠