Municipals Thoughts from the Muni Desk
March 12, 2026
Fixed income Municipal bonds
From short-term, high-grade portfolios to long-term, high-yield strategies, we offer tax-exempt solutions for a broad range of needs.
Why partner with us Providing consistent, tax-free income since 1976
Municipal bonds have a history of offering attractive yields and income free from federal and, in some cases, state income taxes. As the 6th largest municipal bond manager by assets1, we have the ability to access preferred market opportunities and gain valuable market insight.
Access
We provide investors unique access to a range of municipal bond investments across various vehicles including mutual funds, ETFs and separately managed accounts (SMAs).
Acumen
With over 50 advanced degrees and designations and 20 years of average experience, our team provides keen judgment to identify the best potential opportunities.2
Insights
We are committed to providing financial professionals with regular insights on the municipal bond market that help enhance your business and connect with your clients.
$65B+ in assets managed
Industry’s 2nd largest high yield municipal bond manager and 6th largest municipal bond manager.1
1976 Launch of first municipal fund
We have half century of experience managing municipal bond assets.2
8 LSEG Lipper awards
This leading global investing benchmark recognized our performance across five strategies in 2025.3
Invesco Municipal bond capabilities
Mark Paris, CIO and Head of Municipal Bond investing describes how municipal bonds can appeal to a wide range of investors.
What we offer Municipal Bond line-up
| Ticker | Fund name | Vehicle | Duration | Download |
|---|---|---|---|---|
| ORNAX | Invesco Rochester® Municipal Opportunities Fund | Mutual Fund | Long | Fact sheet |
| ACTHX | Invesco High Yield Municipal Fund | Mutual Fund | Long | Fact sheet |
| ISHAX | Invesco Short Duration High Yield Municipal Fund | Mutual Fund | Limited | Fact sheet |
| IROC | Invesco Rochester® High Yield Municipal ETF* | ETF | Intermediate | Fact sheet |
| OIA | Invesco Municipal Income Opportunities Trust | Closed-End Fund | Long | Fact sheet |
*Effective after close of business February 20, 2025, The Fund will invest at least 75% of its total assets in low-to medium-quality municipal securities. The Fund’s name will change to “Invesco Rochester High Yield Municipal ETF.” As a result of this change, the Fund will also change its ticker to "IROC".
| Ticker | Fund name | Vehicle | Duration | Download |
|---|---|---|---|---|
| VKMMX | Invesco Municipal Income Fund | Mutual Fund | Long | Fact sheet |
| OPTAX | Invesco AMT-Free Municipal Income Fund | Mutual Fund | Long | Fact sheet |
| OPAMX | Invesco Environmental Focus Municipal Fund7 | Mutual Fund | Long | Fact sheet |
| VKLMX | Invesco Intermediate Term Municipal Income Fund | Mutual Fund | Intermediate | Fact sheet |
| INTM | Invesco Intermediate Municipal ETF | ETF | Intermediate | N/A |
| PZA | Invesco National AMT-Free Municipal Bond ETF | ETF | Long | Fact sheet |
| BAB | Invesco Taxable Municipal Bond ETF | ETF | Long | Fact sheet |
| IIM | Invesco Value Municipal Income Trust | Closed-End Fund | Long | Fact sheet |
| IQI | Invesco Quality Municipal Income Trust | Closed-End Fund | Long | Fact sheet |
| VGM | Invesco Trust for Investment Grade Municipals | Closed-End Fund | Long | Fact sheet |
| VKI | Invesco Advantage Municipal Income Trust II | Closed-End Fund | Long | Fact sheet |
| VKQ | Invesco Municipal Trust | Closed-End Fund | Long | Fact sheet |
| VMO | Invesco Municipal Opportunity Trust | Closed-End Fund | Long | Fact sheet |
| Ticker | Fund name | Vehicle | Duration | Download |
|---|---|---|---|---|
| ATFAX | Invesco Limited Term Municipal Income Fund | Mutual Fund | Limited | Fact sheet |
| ORSTX | Invesco Short Term Municipal Fund | Mutual Fund | Short | Fact sheet |
| PVI | Invesco Floating Rate Municipal Income ETF | ETF | Ultrashort | Fact sheet |
| Ticker | Fund name | Vehicle | Duration | Download |
|---|---|---|---|---|
| OPCAX | Invesco California Municipal Fund | Mutual Fund | Long | Fact sheet |
| OLCAX | Invesco Limited Term California Municipal Fund | Mutual Fund | Limited | Fact sheet |
| RMUNX | Invesco Rochester® New York Municipals Fund | Mutual Fund | Long | Fact sheet |
| OPNYX | Invesco Rochester® AMT-Free New York Municipal Fund | Mutual Fund | Long | Fact sheet |
| LTNYX | Invesco Rochester® Limited Term New York Municipal Fund | Mutual Fund | Limited | Fact sheet |
| OPATX | Invesco Pennsylvania Municipal Fund | Mutual Fund | Long | Fact sheet |
| ONJAX | Invesco New Jersey Municipal Fund | Mutual Fund | Long | Fact sheet |
| PZT | Invesco New York AMT-Free Municipal Bond ETF | ETF | Long | Fact sheet |
| VCV | Invesco California Value Municipal Income Trust | Closed-End Fund | Long | Fact sheet |
| VTN | Invesco Trust for Investment Grade New York Municipals | Closed-End Fund | Long | Fact sheet |
| VPV | Invesco Pennsylvania Value Municipal Income Trust | Closed-End Fund | Long | Fact sheet |
| Ticker | Fund name | Vehicle | Duration | Download |
|---|---|---|---|---|
| BSMQ | Invesco BulletShares 2026 Municipal Bond ETF | ETF | Target Duration | Fact sheet |
| BSMR | Invesco BulletShares 2027 Municipal Bond ETF | ETF | Target Duration | Fact sheet |
| BSMS | Invesco BulletShares 2028 Municipal Bond ETF | ETF | Target Duration | Fact sheet |
| BSMT | Invesco BulletShares 2029 Municipal Bond ETF | ETF | Target Duration | Fact sheet |
| BSMU | Invesco BulletShares 2030 Municipal Bond ETF | ETF | Target Duration | Fact sheet |
| BSMV | Invesco BulletShares 2031 Municipal Bond ETF | ETF | Target Duration | Fact sheet |
| BSMW | Invesco BulltetShares 2032 Municipal Bond ETF | ETF | Target Duration | Fact Sheet |
| BSSX | Invesco BulletShares 2033 Municipal Bond ETF | ETF | Target Duration | Fact Sheet |
| BSMY | Invesco BulletShares 2034 Municipal Bond ETF | ETF | Target Duration | N/A |
Frequently asked questions
The income produced by municipal bonds is typically exempt from income taxes at the federal level. Municipal bonds may also be exempt from state and local taxes based on where the investor resides.
In our view, there are many good reasons to invest in the municipal bond market now.
First, muni yields are as high as they've been in 15 years following two years of unprecedented interest rate hikes by the Fed.4
Second, municipal bonds have a long history of low defaults compared to corporate bonds because they fund essential American services.5
Third, the municipal yield curve is steeper than the Treasury yield curve. A steep yield curve means that there is value in duration. Municipal investors who own longer dated munis may be compensated much more than those in longer dated Treasuries.
Fourth, federal, state and in some places local tax rates are high and we don't see them going down. This may provide additional value to the muni tax exemption.
Our high conviction approach to investing aims to deliver a highly competitive yield by exploiting anomalies that exist in the high yield municipal market. The Invesco Municipal Bond team employs a bottom-up, research-oriented approach to generate income-driven total return. Our experienced credit research staff works to uncover value in non-rated bonds, which may offer the potential for higher yield and total return.
We believe in giving investors choices that work for their unique needs. Invesco Rochester High Yield Municipal ETF is an actively managed exchange-traded fund that seeks current income exempt from federal income tax.
We view risk from multiple lenses and manage it using both integrated and independent approaches. First, risk management is embedded within our investment process. Second, multiple governance structures provide independent oversight and monitoring. Third comes senior management and board review.
Discover more from Invesco
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Fixed Income
Invesco has many fixed income strategies to help you meet your goals, including taxable bonds, tax-free municipals, mutual funds, ETFs, and SMAs. -
Investment Grade
Learn more about our investment grade portfolios which are designed to deliver income, stability, and tax efficiency even under stressed market conditions. -
Fixed Income investing with ETFs
Discover the potential benefits of investing in Invesco’s fixed income ETFs, such as income generation, portfolio diversification, and risk mitigation.
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Transcript: Show transcript
Mark Paris:
Municipal bonds can be appealing options for a wide range of investors, especially those looking for tax-exempt income, but not all municipal bond managers are created equal. Here are three reasons to partner with Invesco for your municipal bond needs.
First, we offer a broad suite of municipal bond strategies from short-term high-grade portfolios to long-term high-yield strategies and everything in between. We offer potential solutions for a variety of investor needs, and you can access these strategies through mutual funds, ETFs, and separately managed accounts.
Second, we have an expert team with access to unique opportunities. Our municipal credit analysts average more than 20 years of experience, making them some of the industry's most seasoned analysts. They use a bottom-up in-depth credit research process. Every bond is thoroughly vetted and receives an internal rating before making it into one of our portfolios. Our portfolio managers make informed investment decisions by combining experience-based knowledge with market trends to discover attractive relative value opportunities.
Our size is another advantage. We're one of the five largest municipal bond managers by assets, a position that allows us the ability to access preferred market opportunities and gain valuable market insight. As a result, we tend to be a first call to over 120 national and regional municipal bond dealers.
These established relationships allow us to achieve superior execution in our daily transactions. This value-oriented combination of proprietary research and integrated risk management allows us to create highly diversified portfolios that aim to maximize risk adjusted returns
Third, we're here to enhance your total client experience. Helping your clients generate competitive tax-exempt income through municipal bonds is just one way we can strengthen your total client experience. At Invesco, we're committed to helping you connect with your clients, enhance your business, and optimize your portfolios through our full suite of solutions across asset classes. Let's start the conversation today. Reach out to your Invesco representative to learn more about Invesco's municipal bond solutions.
This information is intended for US residents.
This should not be considered a recommendation to purchase any investment product.
Interest rate risk refers to the risk that bond prices generally fall as interest rates rise and vice versa. An issuer may be unable to meet interest and/or principal payments, thereby causing its instruments to decrease in value and lowering the issuer’s credit rating.
This does not constitute a recommendation of any investment strategy for a particular investor. There is no guarantee these strategies will be able to meet their objectives. Past performance cannot guarantee future comparable results.
Before investing carefully read and consider fund investment objectives, risks, charges, expenses and more in the prospectus at invesco.com.
