At a glance
CMF charges 0.08% a year, below the 0.24% average of the 7 funds most like it (the 3rd cheapest of 8). It has $4.63B in assets, the 4th largest of that group; it paid 3.02% of its price in distributions over the past 12 months, monthly. Over the past year it returned −0.6% with distributions reinvested, 7th of those 8 funds; over three years it returned +3.8% a year. At its worst it fell 14.6% in the 2020 crash (S&P 500: 33.7%) and 11.9% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 4 months and 35 months after the lows. Its ten largest positions make up 3.9% of the fund, out of 1,719 in all.
The short version
iShares California Muni Bond ETF (CMF) tracks the ICE AMT-Free California Municipal Index. The index is a broad basket of investment-grade bonds issued by California and its school districts, universities, water utilities and other agencies. The interest is generally exempt from federal and California income taxes and from the federal alternative minimum tax. That matters most to Californians in higher tax brackets. The fund costs 0.08% a year, below the 0.24% average of similar muni funds.
Price history
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CMF -0.6% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| CMF official prospectus, to Dec 31, 2025 | — | +3.61% | — | +0.50% | +1.93% | — |
| CMF price data to Oct 27, 2026 | -1.0% | -0.6% | +3.8% | +0.4% | +1.6% | +3.1% |
- Over the year to Oct 27, 2026, CMF returned -0.6%, 7th of 8 among similar funds.
- Its 5-year annualized return was +0.4% and its 10-year +1.6%.
- In the 2020 COVID crash it fell 14.6% and regained its old high 3.8 months after the low.
- Its worst full calendar year was 2022 (-8.2%); its best was 2011 (+16.5%).
- The deepest fall in its price history was 16.4% (Dec 26, 2014 to Jun 10, 2015), recovered by Feb 20, 2020.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | -1.0% | — |
| 2025 | +3.3% | +3.61% |
| 2024 | +1.6% | +1.25% |
| 2023 | +5.7% | +5.59% |
| 2022 | -8.2% | -8.09% |
| 2021 | +0.8% | +0.70% |
| 2020 | +4.5% | +4.57% |
| 2019 | +6.9% | +7.15% |
| 2018 | +1.0% | +0.69% |
| 2017 | +4.6% | +4.85% |
| 2016 | -0.1% | -0.21% |
| 2015 | +3.0% | — |
| 2014 | +11.4% | — |
| 2013 | -2.7% | — |
| 2012 | +7.3% | — |
| 2011 | +16.5% | — |
| 2010 | -2.6% | — |
| 2009 | +8.1% | — |
| 2008 | +0.6% | — |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Gained 2.8% over that stretch · deepest drop along the way 13.2%, back to its old high 2.7 months after the low |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 13.5% over that stretch · deepest drop along the way 14.6%, back to its old high 3.8 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 10.4% over that stretch · deepest drop along the way 11.9%, back to its old high 35.4 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $1.2600 | |
| 2025 | $1.6700 | +5.7% |
| 2024 | $1.5800 | +18.8% |
| 2023 | $1.3300 | +20.9% |
| 2022 | $1.1000 | +12.2% |
| 2021 | $0.9800 | -14.0% |
| 2020 | $1.1400 | -8.1% |
| 2019 | $1.2400 | -0.8% |
| 2018 | $1.2500 | +1.2% |
| 2017 | $1.2350 | -3.5% |
| 2016 | $1.2800 | -15.2% |
| 2015 | $1.5100 | -8.8% |
| 2014 | $1.6550 | -2.4% |
| 2013 | $1.6950 | -4.8% |
| 2012 | $1.7800 | -12.5% |
| 2011 | $2.0350 | -2.2% |
| 2010 | $2.0800 | +4.8% |
| 2009 | $1.9850 | +10.9% |
| 2008 | $1.7900 |
What's inside
As of Aug 31, 2026, the fund held 1,719 securities; the ten largest made up 3.85% of assets, and 3.24% sat in cash and money-market holdings.
| Holding | Weight | |
|---|---|---|
| Los Angeles Unified School District Bonds and notes | 0.47% | |
| University of California Bonds and notes | 0.45% | |
| California Educational Facilities Authority Bonds and notes | 0.43% | |
| Los Angeles Unified School District Bonds and notes | 0.41% | |
| California State University Bonds and notes | 0.40% | |
| University of California Bonds and notes | 0.38% | |
| State of California Bonds and notes | 0.36% | |
| State of California Bonds and notes | 0.34% | |
| East County Advanced Water Purification Joint Powers Authority Bonds and notes | 0.31% | |
| East Bay Municipal Utility District Water System Revenue Bonds and notes | 0.30% | |
| Los Angeles Department of Water & Power Bonds and notes | 0.30% | |
| State of California Bonds and notes | 0.30% | |
| State of California Bonds and notes | 0.29% | |
| State of California Bonds and notes | 0.27% | |
| University of California Bonds and notes | 0.27% |
By country
United States 97.17%By issuer
Municipalities 97.17%The bonds mature in 12.4 years on average (weighted by size), with an average coupon of 4.46%.
Source: N-PORT holdings report as of Aug 31, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Aug 31, 2026, investors added a net $291.3M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +0.78%, -1.71%, -0.17%.
How it works
CMF follows the ICE AMT-Free California Municipal Index, which is built by ICE Data Indices, a company independent of BlackRock. The index holds tax-exempt bonds issued by the State of California and its local governments and agencies. To qualify, a bond must be investment grade. That means a rating of at least BBB- from S&P or Fitch, or Baa3 from Moody's, and if the agencies disagree, the lowest rating counts. Each bond must also come from an offering of at least $50 million, have at least $5 million still outstanding and have at least a month left before it matures. As of February 28, 2026, the index had 11,290 issues.
Each bond's weight in the index depends on its market value, with a cap to limit concentration. The index is rebalanced on the last calendar day of each month. BlackRock does not buy every bond. It uses "representative sampling": it owns a smaller set of bonds chosen to match the index's interest-rate sensitivity (duration), maturity, credit quality and yield. At least 80% of assets must be in index bonds. As of August 31, 2026, the fund had 1,719 holdings, and the 10 largest made up just 3.85% of assets.
The fund may put up to 10% of assets in futures, options, swaps or bonds outside the index, but it held no derivatives as of August 31, 2026. Spare cash, 3.24% of assets on that date, goes into municipal money market funds.
What it really costs
- CMF charges 0.08% a year, versus an average of 0.24% for the similar funds below (3rd of 8, cheapest first).
- Using the prospectus's standard example, $10,000 invested would cost about $8 in the first year and $103 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| CMF | $8 | $26 | $45 | $103 |
Structure and tax notes
- Bond prices move opposite to interest rates; the longer the maturities it holds, the more its price reacts to rate changes.
In a retirement portfolio
It pays monthly interest that is generally free of federal and California income tax, but its price can drop sharply when interest rates rise.
CMF could add tax-advantaged income. It paid $1.68 a share in the 12 months to October 27, 2026, a 3.02% yield, paid monthly. Its declines have been sharper than many people expect from bonds. It fell 13.2% in 2008 but recovered in about three months. It fell 14.6% in March 2020 and was back by July. The 11.9% drop in 2022 took until September 2025 to recover. Its worst calendar year was 2022, at -8.09%. Its deepest price-based drop, 16.4% from December 2014 to June 2015, took 56 months to recover. Anyone forced to sell during a stretch like that would lock in losses. Costs are low: 0.08% a year, or $103 over 10 years on $10,000 in the SEC's standard example. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- California residents in higher tax brackets who want monthly interest that is generally exempt from federal and state income tax and the federal AMT.
- Cost-conscious investors: the 0.08% expense ratio is well below the 0.24% average for similar muni funds.
- Investors who want broad California exposure: 1,719 holdings as of August 31, 2026, none above about 0.5% of assets.
Look elsewhere if
- Investors outside California, who don't get the state tax break. National funds like MUB (0.05%) and VTEB (0.03%) cost less.
- Anyone who needs steady value: CMF fell 11.9% in 2022 and didn't fully recover until September 2025.
- Investors wary of single-state risk: trouble with California's budget, economy or politics could hit nearly every bond the fund owns.
Close alternatives
Matched by bond funds with the closest average maturity and issuer mix (N-PORT).
| Fund | Avg. maturity | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| CMF this fund | 12.4 yrs | 0.08% | $4.63B | -0.6% | +3.8% |
| ITM VanEck Intermediate Muni ETF | 12.4 yrs | 0.18% | $2.12B | -0.3% | +4.6% |
| MUB iShares National Muni Bond ETF | 13.5 yrs | 0.05% | $45.38B | -0.2% | +3.7% |
| VTEB Vanguard Tax-Exempt Bond ETF | 14.5 yrs | 0.03% | $48.52B | +0.1% | +4.4% |
| TFI SPDR Nuveen Bloomberg Municipal Bond ETF | 15.1 yrs | 0.23% | $3.12B | -0.8% | +3.9% |
| FMB First Trust Managed Municipal ETF | 15.5 yrs | 0.65% | $2.05B | 0.0% | +4.3% |
| MUNI PIMCO Intermediate Municipal Bond Active Ex… | 15.3 yrs | 0.35% | $3.09B | +0.2% | +4.7% |
| JMUB JPMorgan Municipal ETF | 16.7 yrs | 0.18% | $8.75B | -0.2% | +4.4% |
Questions investors ask
Is CMF interest tax-free in California?
Generally, yes. CMF mostly holds California municipal bonds. Their interest is exempt from federal and California state income taxes and from the federal alternative minimum tax. The prospectus adds that interest exempt from federal tax is also exempt from the 3.8% Medicare tax on net investment income. Profits from selling fund shares are a separate matter and can be taxed. Tax rules can change, so a tax professional can confirm how they apply in a given situation.
Does CMF pay monthly dividends?
Yes. CMF pays income every month. In the 12 months to October 27, 2026, it paid $1.68 per share, a trailing yield of 3.02%. That figure looks backward. Payouts can fall when rates drop and the fund has to reinvest money from maturing or called bonds at lower yields, a risk its prospectus flags. For a California resident, a tax-free yield can be worth more than the same yield from a taxable bond fund.
CMF vs ITM: which muni ETF is cheaper?
CMF is cheaper, at 0.08% a year compared with 0.18% for the VanEck Intermediate Muni ETF (ITM). The two look alike on paper, and both have an average maturity of 12.4 years. CMF holds only California bonds, which is why its interest is also free of California income tax for state residents. ITM returned -0.3% in the year to October 27, 2026, against -0.6% for CMF. Over three years, ITM returned 4.6% a year and CMF 3.8%.
Is CMF good for retirees?
It depends on the retiree's tax situation and how much price movement they can live with. CMF may suit California retirees who want monthly, largely tax-exempt income at a low 0.08% yearly cost. It is not a stable-value holding, though. It lost 8.09% in 2022, its worst calendar year, and its 11.9% drop that year took about 35 months to recover. Its bonds have an average maturity of 12.4 years, so rising interest rates can pull its price down noticeably.
Why are CMF's long-term returns so low?
Mostly because of interest rates. As of December 31, 2025, CMF returned 1.93% a year over 10 years and 0.50% a year over five years. Its 8.09% loss in 2022 pulled both figures down. Bond prices fall when interest rates rise, and longer-maturity bonds fall more. As of October 27, 2026, its three-year return of 3.8% a year ranked last among eight similar funds, although it was also the third-cheapest of the group.