iShares Intermediate Muni Income Active ETF

iShares Intermediate Muni Income Active ETF (INMU) is a BlackRock fund whose managers pick mostly investment-grade municipal bonds. The interest on those bonds is generally free from federal income tax, and the fund pays it out monthly. Its 0.30% expense ratio is well above VTEB (0.03%) and MUB (0.05%). Its price returns led its group of similar funds over one and three years through October 27, 2026.

• Over the year to Oct 27, 2026, INMU returned +1.2%, 1st of 8 among similar funds.
• Its 5-year annualized return was +1.6%.
• Its worst full calendar year was 2022 (-7.8%); its best was 2023 (+6.5%).
• The deepest fall in its price history was 10.7% (Aug 5, 2021 to Oct 31, 2022), recovered by Aug 1, 2024.

As of Jul 31, 2026, the fund held 456 securities; the ten largest made up 8.71% of assets, and 4.18% sat in cash and money-market holdings.

The bonds mature in 15 years on average (weighted by size), with an average coupon of 4.8%.

• Over the three months to Jul 31, 2026, investors added a net $89.0M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +0.37%, +0.71%, -1.63%.

INMU does not track an index. BlackRock's managers choose municipal bonds that they believe offer a relatively high potential for total return compared with their risk. Municipal bonds are loans to states, cities, agencies and similar issuers. Under a policy that shareholders must vote to change, at least 80% of assets go into these bonds. Some interest may still count toward the federal alternative minimum tax (AMT). The fund may buy bonds of any credit rating, or no rating at all. It aims to hold mainly investment-grade bonds but can also own high-yield "junk" bonds.

The managers target a duration of four to six years. Duration is a measure of how much a bond fund's price moves when interest rates change. Bond prices fall when rates rise, so a longer duration means bigger swings. As of July 31, 2026, the fund held bonds from 456 issuers, with an average maturity of 15 years and an average coupon of 4.8%. Cash was 4.18%. The largest positions were Connecticut special tax revenue bonds (1.02%), Commonwealth of Pennsylvania bonds (1.00%) and Port of Portland airport revenue bonds (0.98%). The top ten made up 8.71% of the fund.

Turnover was 66% in the prospectus filed November 25, 2025. The fund is legally "non-diversified," which means it can put more money into fewer issuers. It may also handle redemptions in cash. That can force sales that create taxable gains.

• INMU charges 0.3% a year, versus an average of 0.23% for the similar funds below (5th of 8, cheapest first).
• Of that, 0.4% is the management fee; the rest covers other fund expenses.
• The fee includes a 0.11% waiver from the adviser, which may end.
• Using the prospectus's standard example, $10,000 invested would cost about $31 in the first year and $507 over 10 years (assuming a 5% annual return).

INMU's main job is to pay steady monthly income that is generally free from federal income tax, with moderate sensitivity to interest rates.

INMU could add tax-advantaged monthly income to a taxable account. Its trailing 12-month yield was 3.43% ($0.81 a share) as of October 27, 2026. The fund launched in March 2021, so it has no record from the 2008 or 2020 crashes. In the 2022 bear market it fell 9.8% between January 4 and September 30, 2022. It did not regain its earlier peak until July 17, 2024. Its deepest drop was 10.7%, from August 2021 to October 2022, and recovery took about 21 months. According to the prospectus, its worst calendar year was 2022, at -6.69%. Anyone forced to sell shares during that stretch would have locked in losses. The cost is 0.30% a year, or $31 on $10,000 in the first year under the SEC's standard example. Past results don't predict future ones. A plan should look at the whole portfolio, not one fund.

Matched by bond funds with the closest average maturity and issuer mix (N-PORT).