HMOP vs VCRM

HMOPBHartford Municipal Opportunities ETF

VCRMAVanguard Core Tax-Exempt Bond E

In short

HMOP Most muni ETFs buy the index and call it a day. HMOP hands the keys to Wellington: an active muni portfolio that can hold up to 35% high yield paper, roam any maturity, and pay federally tax-exempt income monthly.

VCRM Vanguard's active answer in a mostly-index category: managers working the whole muni curve for 0.12% a year, under half the muni ETF median fee. Monthly income, exempt from federal personal income taxes.

Stated mandate

HMOP The fund seeks current income generally exempt from federal income tax together with long-term total return.

VCRM The fund seeks total return through current income exempt from federal personal income taxes and capital appreciation.

Why people hold it

• HMOP Actively run by sub-adviser Wellington, with room for up to 35% in below-investment-grade munis and bonds of any maturity, corners index trackers cannot reach.sec.gov
• Monthly income that is generally exempt from federal tax, spread across roughly 500 holdings and diversified over states and sectors.sec.gov
• At 0.29%, it charges about what the typical muni ETF does, unusual for a fund with a live manager picking the bonds.
• Trading since 2017 and sitting in the upper half of a crowded muni ETF field.

• VCRM Active management priced at 0.12% a year, less than half the 0.30% median for muni ETFs.
• Run by Vanguard's Fixed Income Group, with all-curve exposure to primarily high-quality investment-grade munis spread across sectors, states and credit tiers.prnewswire.com
• Pays monthly, with income the fund seeks to keep exempt from federal personal income taxes.vanguard.com
• Sticks tightly to its stated mandate and grades among the strongest implementations in its muni peer group.

Worth knowing

• HMOP Index heavyweights VTEB (0.03%) and MUB (0.05%) cost a fraction of this. The premium buys active judgment, not index tracking.
• High yield munis and any-maturity latitude mean credit and rate exposure shift with the manager's view, not a fixed benchmark.sec.gov
• Some of the income can be subject to the Alternative Minimum Tax.sec.gov

• VCRM You pay up for the manager: index peers VTEB and SCMB run at 0.03%, a quarter of VCRM's 0.12%.
• Launched in November 2024, so there is only a short record to judge the active mandate on.
• All-curve exposure puts longer maturities in the mix, so prices move with rates. And the exemption is federal: state treatment of a national muni fund depends on where you live.prnewswire.com

Full HMOP profile⁠

Full VCRM profile⁠