At a glance
HYD charges 0.32% a year, above the 0.17% average of the 7 funds most like it (the 7th cheapest of 8). It has $4.43B in assets, the 5th largest of that group; it paid 4.47% of its price in distributions over the past 12 months, monthly. Over the past year it returned +0.9% with distributions reinvested, the best of those 8 funds; over three years it returned +5.5% a year. At its worst it fell 35.6% in the 2020 crash (S&P 500: 33.7%) and 17.9% in the 2022 bear market (S&P 500: 24.5%). Its ten largest positions make up 6.3% of the fund, out of 2,103 in all.
The short version
VanEck High Yield Muni ETF (HYD) holds about 2,100 tax-exempt municipal bonds and tracks the ICE Broad High Yield Crossover Municipal Index. That index puts 70% in below-investment-grade ("junk") bonds and 30% in lower-rated investment-grade bonds. This mix produced a trailing yield of 4.47% as of October 27, 2026. It also carries more credit risk than broad muni funds, and its 0.32% expense ratio is well above the 0.17% peer average.
Price history
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HYD +0.9% 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 | |
|---|---|---|---|---|---|---|
| HYD official prospectus, to Dec 31, 2025 | — | +2.61% | — | +0.20% | +2.24% | — |
| ICE US Broad Municipal Index (reflects no deduction for fees, expenses or taxes) index, same period | — | +4.10% | — | +0.92% | +2.35% | — |
| HYD price data to Oct 27, 2026 | 0.0% | +0.9% | +5.5% | -0.4% | +1.7% | +4.5% |
- Over the year to Oct 27, 2026, HYD returned +0.9%, 1st of 8 among similar funds.
- Its 5-year annualized return was -0.4% and its 10-year +1.7%.
- In the 2020 COVID crash it fell 35.6% and regained its old high 14.2 months after the low.
- Its worst full calendar year was 2022 (-16.0%); its best was 2012 (+16.0%).
- The deepest fall in its price history was 35.6% (Feb 26, 2020 to Mar 18, 2020), recovered by May 24, 2021.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | -0.0% | — |
| 2025 | +2.8% | +2.61% |
| 2024 | +4.9% | +4.50% |
| 2023 | +6.5% | +5.50% |
| 2022 | -16.0% | -15.25% |
| 2021 | +5.0% | +5.33% |
| 2020 | +0.2% | -0.05% |
| 2019 | +9.3% | +9.17% |
| 2018 | +2.2% | +2.10% |
| 2017 | +9.7% | +10.56% |
| 2016 | +0.4% | +0.33% |
| 2015 | +5.1% | — |
| 2014 | +14.9% | — |
| 2013 | -9.1% | — |
| 2012 | +16.0% | — |
| 2011 | +11.0% | — |
| 2010 | +0.3% | — |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 33.3% over that stretch · deepest drop along the way 35.6%, back to its old high 14.2 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 17.2% over that stretch · deepest drop along the way 17.9%, not recovered by the end of the data |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $1.6700 | |
| 2025 | $2.1900 | -1.4% |
| 2024 | $2.2200 | +4.7% |
| 2023 | $2.1200 | +5.5% |
| 2022 | $2.0100 | -7.8% |
| 2021 | $2.1800 | -12.1% |
| 2020 | $2.4800 | -5.0% |
| 2019 | $2.6100 | -3.3% |
| 2018 | $2.7000 | +2.3% |
| 2017 | $2.6400 | -2.2% |
| 2016 | $2.7000 | -9.4% |
| 2015 | $2.9800 | -3.9% |
| 2014 | $3.1000 | -7.2% |
| 2013 | $3.3400 | +1.2% |
| 2012 | $3.3000 | -5.2% |
| 2011 | $3.4800 | -12.6% |
| 2010 | $3.9800 |
What's inside
As of Jul 31, 2026, the fund held 2,103 securities; the ten largest made up 6.34% of assets.
| Holding | Weight | |
|---|---|---|
| Puerto Rico Sales Tax Financing Corp Sales Tax Revenue Bonds and notes | 0.98% | |
| Chicago Board of Education Bonds and notes | 0.79% | |
| Tobacco Settlement Financing Corp Bonds and notes | 0.71% | |
| Buckeye Tobacco Settlement Financing Authority Bonds and notes | 0.69% | |
| New York Transportation Development Corp Bonds and notes | 0.61% | |
| Puerto Rico Sales Tax Financing Corp Sales Tax Revenue Bonds and notes | 0.58% | |
| Chicago Board of Education Bonds and notes | 0.53% | |
| Florida Development Finance Corp Bonds and notes | 0.52% | |
| New York Transportation Development Corp Bonds and notes | 0.48% | |
| Arkansas Development Finance Authority Bonds and notes | 0.45% | |
| City of Houston TX Airport System Revenue Bonds and notes | 0.45% | |
| Iowa Finance Authority Bonds and notes | 0.44% | |
| Puerto Rico Sales Tax Financing Corp Sales Tax Revenue Bonds and notes | 0.44% | |
| Florida Development Finance Corp Bonds and notes | 0.44% | |
| California Municipal Finance Authority Bonds and notes | 0.43% |
By country
United States 96.77%By issuer
Municipalities 96.77%The bonds mature in 19.2 years on average (weighted by size), with an average coupon of 4.8%.
Source: N-PORT holdings report as of Jul 31, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Jul 31, 2026, investors added a net $316.2M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +0.70%, +1.08%, -1.54%.
How it works
HYD is an index fund. It tries to match the price and yield performance of the ICE Broad High Yield Crossover Municipal Index, before fees, and does not try to beat it. The index covers long-term, US dollar, tax-exempt municipal bonds. These are debts issued by states, cities and public authorities. The index sets a fixed credit mix: 70% below investment grade, 25% rated BBB (the lowest investment-grade tier) and 5% rated A. It rebalances on the last calendar day of each month.
Buying every bond in the index would be impractical and costly. So VanEck uses "sampling": it buys a subset of bonds picked to have roughly the same risk and return traits as the index. The fund normally keeps at least 80% of total assets in index securities. A separate rule to hold at least 80% in municipal securities can change only by shareholder vote. As of July 31, 2026, the fund held 2,103 issues, and the top 10 made up just 6.34% of assets. The largest was a Puerto Rico Sales Tax Financing Corp bond at about 1%.
Many holdings are revenue bonds, which are repaid only from a project's own income. Industrial development and health care were significant sectors as of April 30, 2026. The average maturity was 19.2 years, so prices react strongly when interest rates move.
What it really costs
- HYD charges 0.32% a year, versus an average of 0.17% for the similar funds below (7th of 8, cheapest first).
- Using the prospectus's standard example, $10,000 invested would cost about $33 in the first year and $406 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| HYD | $33 | $103 | $180 | $406 |
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
Its main draw is monthly income that is generally exempt from federal tax, but its heavy junk-bond weighting makes it riskier than a typical muni fund.
HYD could add monthly income that is generally free of federal income tax. Its trailing yield was 4.47%, or $2.21 per share, as of October 27, 2026. It costs 0.32% a year: $33 in year one and $406 over 10 years in the SEC's standard $10,000 example. The fund launched in February 2009, after the 2008 crisis. In the 2020 COVID crash it fell 35.6% between February 26 and March 18 and took about 14 months to recover. In 2022, its worst calendar year, it lost 15.25%. As of October 27, 2026, it had not regained its January 2022 peak. A retiree who has to sell shares in a slump like that would lock in losses. The tax break also adds little inside an IRA. 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
- Investors with taxable accounts who want monthly tax-exempt income. The trailing yield was 4.47% as of October 27, 2026, but this comes with junk-bond credit risk.
- Investors who want high-yield muni exposure spread across about 2,100 bonds. No single holding topped 1% of assets as of July 31, 2026.
- People comparing high-yield muni ETFs: HYD's 0.32% expense ratio is slightly below the 0.35% charged by its closest match, HYMB.
Look elsewhere if
- Cost-focused investors: HYD's 0.32% is far above VTEB's 0.03% and MUB's 0.05%, though those funds hold mostly higher-quality bonds.
- Anyone who may need to sell in a downturn. HYD fell 35.6% in early 2020 and lost 15.25% in 2022.
- Investors who hold bonds mainly in IRAs or 401(k)s, where tax-exempt interest brings no extra tax advantage.
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 |
|---|---|---|---|---|---|
| HYD this fund | 19.2 yrs | 0.32% | $4.43B | +0.9% | +5.5% |
| HYMB SPDR Nuveen Bloomberg High Yield Municipal … | 20.5 yrs | 0.35% | $3.09B | -0.5% | +5.6% |
| PZA Invesco National AMT-Free Municipal Bond ETF | 22.5 yrs | 0.28% | $4.24B | -2.7% | +3.8% |
| JMUB JPMorgan Municipal ETF | 16.7 yrs | 0.18% | $8.75B | -0.2% | +4.4% |
| TFI SPDR Nuveen Bloomberg Municipal Bond ETF | 15.1 yrs | 0.23% | $3.12B | -0.8% | +3.9% |
| VTEB Vanguard Tax-Exempt Bond ETF | 14.5 yrs | 0.03% | $48.52B | +0.1% | +4.4% |
| MUB iShares National Muni Bond ETF | 13.5 yrs | 0.05% | $45.38B | -0.2% | +3.7% |
| CMF iShares California Muni Bond ETF | 12.4 yrs | 0.08% | $4.63B | -0.6% | +3.8% |
Questions investors ask
Does HYD pay monthly dividends?
Yes, HYD pays income every month. Over the 12 months to October 27, 2026, it paid $2.21 per share, a trailing yield of 4.47%. The payments come from interest on its municipal bonds, which is generally exempt from federal income tax. Amounts vary from month to month. Issuers can also "call" bonds, meaning repay them early, when rates fall. The fund may then have to reinvest at lower yields.
What's the difference between HYD and HYMB?
They are close cousins. Both own high-yield municipal bonds. HYMB, the SPDR Nuveen Bloomberg High Yield Municipal Bond ETF, was the fund most similar to HYD by maturity and issuer mix. HYD costs 0.32% a year, compared with 0.35% for HYMB. As of October 27, 2026, HYD returned 0.9% over one year and HYMB returned -0.5%. Their three-year annualized returns were 5.5% and 5.6%. HYMB's average maturity was slightly longer: 20.5 years, compared with 19.2 for HYD.
Is HYD interest tax-free?
Mostly, at the federal level. HYD tracks an index of tax-exempt municipal bonds, so the interest it pays out is generally free of federal income tax. That doesn't make the fund fully tax-free. State income tax may apply to interest from bonds issued in other states, and gains when you sell shares are taxable. The tax benefit also matters little inside an IRA or 401(k). A tax adviser can confirm how the rules apply to a specific situation.
How much did HYD lose in 2022?
HYD lost 15.25% in calendar 2022, its worst year in the prospectus record. Rising interest rates hit long-term bonds hard, and HYD's average maturity was 19.2 years. From its January 3, 2022 peak, it fell 17.9% by September 30, 2022. As of October 27, 2026, it had not returned to that peak. Its deepest drop was even larger: 35.6% in early 2020, which took about 14 months to recover.
Is HYD good for retirement income?
That depends on the account and on how much risk a retiree can take. HYD pays monthly, tax-exempt income, with a 4.47% trailing yield as of October 27, 2026. That may suit retirees with taxable accounts. But 70% of its index is junk-rated, and it fell 35.6% in early 2020. Over the 10 years to December 31, 2025, it returned 2.24% a year after fees. The ICE US Broad Municipal Index returned 2.35% over the same period.