At a glance
MINN charges 0.25% a year, above the 0.16% average of the 7 funds most like it (the 6th cheapest of 8). It has $46.8M in assets, the 8th largest of that group; it paid 3.16% of its price in distributions over the past 12 months, monthly. Over the past year it returned −2.0% with distributions reinvested, 7th of those 8 funds; over three years it returned +4.5% a year. At its worst it fell 17.0% in the 2022 bear market (S&P 500: 24.5%), and is still below its earlier high. Its ten largest positions make up 23.3% of the fund, out of 126 in all.
The short version
The Mairs & Power Minnesota Municipal Bond ETF (MINN) is an actively managed fund. It buys bonds issued by Minnesota school districts, cities, agencies and the state itself, and it aims to pay income free from federal and Minnesota income tax. Its 0.25% annual fee is higher than the 0.03% charged by Vanguard Tax-Exempt Bond ETF (VTEB), a national fund. MINN is also small, with about $46.8 million in assets as of June 30, 2026.
Price history
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MINN -2.0% 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 | |
|---|---|---|---|---|---|---|
| MINN official prospectus, to Dec 31, 2025 | — | +4.80% | — | — | — | -0.32% |
| MINN price data to Oct 27, 2026 | -2.2% | -2.0% | +4.5% | -0.6% | — | -0.6% |
- Over the year to Oct 27, 2026, MINN returned -2.0%, 7th of 8 among similar funds.
- Its 5-year annualized return was -0.6%.
- Its worst full calendar year was 2022 (-12.3%); its best was 2025 (+5.6%).
- The deepest fall in its price history was 18.4% (Jul 19, 2021 to Oct 31, 2022), not yet recovered.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | -2.2% | — |
| 2025 | +5.6% | +4.80% |
| 2024 | +0.1% | +0.38% |
| 2023 | +5.4% | +5.26% |
| 2022 | -12.3% | -12.20% |
| 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 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 15.5% over that stretch · deepest drop along the way 17%, not recovered by the end of the data |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.5600 | |
| 2025 | $0.6600 | +15.8% |
| 2024 | $0.5700 | +42.5% |
| 2023 | $0.4000 | +37.9% |
| 2022 | $0.2900 |
What's inside
As of Jun 30, 2026, the fund held 126 securities; the ten largest made up 23.27% of assets.
| Holding | Weight | |
|---|---|---|
| STILLWATER MN INDEP SCH DIST # Bonds and notes | 2.59% | |
| MINNESOTA ST Bonds and notes | 2.46% | |
| UNIV OF MINNESOTA MN Bonds and notes | 2.43% | |
| MINNESOTA ST Bonds and notes | 2.40% | |
| MET COUNCIL MINNEAPOLIS-SAINT Bonds and notes | 2.39% | |
| SOUTH WASHINGTON CNTY MN INDEP Bonds and notes | 2.33% | |
| MINNESOTA ST Bonds and notes | 2.20% | |
| MANKATO MN INDEP SCH DIST #77 Bonds and notes | 2.18% | |
| ROCHESTER MN HLTH CARE FACS RE Bonds and notes | 2.15% | |
| NEW LONDON SPICER MN INDEP SCH Bonds and notes | 2.14% | |
| MADELIA MN INDEP SCH DIST #837 Bonds and notes | 2.14% | |
| WEST SAINT PAUL MN INDEP SCH D Bonds and notes | 2.09% | |
| SAINT PAUL MN INDEP SCH DIST # Bonds and notes | 1.78% | |
| BLOOMINGTON MN Bonds and notes | 1.77% | |
| NORTH MANKATO MN PORT AUTH COM Bonds and notes | 1.76% |
By country
United States 98.41%By issuer
Municipalities 98.41%The bonds mature in 10.9 years on average (weighted by size), with an average coupon of 4.53%.
Source: N-PORT holdings report as of Jun 30, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Jun 30, 2026, investors added a net $3.8M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +1.26%, +0.33%, +0.51%.
How it works
MINN is actively managed: its adviser, Mairs & Power, Inc., picks bonds rather than tracking an index. Normally at least 80% of net assets goes into municipal bonds paying interest exempt from both regular federal and Minnesota state income tax, mostly issued by the state and its cities, school districts and agencies. Up to 20% can go into bonds with taxable interest, including bonds subject to the alternative minimum tax (AMT), a separate federal tax some taxpayers owe.
At least 75% must be investment grade when bought, meaning rated BBB-/Baa3 or higher by at least one rating agency. Up to 25% may be lower-rated “junk” bonds (no lower than B-/B3) or unrated bonds, but nothing in or near default. The fund has no target average maturity.
The adviser researches each bond before buying and mostly buys and holds for income. It may sell if credit weakens, to lock in gains or limit losses, or to adjust duration (sensitivity to rate changes). The April 2026 prospectus lists 16% turnover. As of June 30, 2026, the fund owned 126 holdings and no derivatives; average maturity was 10.9 years. The largest were Stillwater Independent School District No. 834 (2.6%), the State of Minnesota and the University of Minnesota; the top 10 made up 23% of assets.
What it really costs
- MINN charges 0.25% a year, versus an average of 0.16% for the similar funds below (6th of 8, cheapest first).
- Using the prospectus's standard example, $10,000 invested would cost about $26 in the first year and $318 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| MINN | $26 | $80 | $141 | $318 |
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
MINN pays income monthly from Minnesota municipal bonds, and that income is meant to be free of federal and Minnesota income tax.
MINN pays income every month. Its trailing 12-month yield was 3.16% as of October 27, 2026. For a Minnesota taxpayer holding it in a taxable account, that income is meant to be free of federal and state income tax. Inside an IRA or 401(k), where income is already sheltered from tax, that benefit adds little. In the SEC's standard example, $10,000 invested would cost about $26 in fees in the first year.
The fund launched in March 2021, so it has no record from the 2008 or 2020 crashes. In 2022, as interest rates climbed, it fell 17% between January 4 and September 29. Its deepest drop was 18.4%, from July 2021 to October 2022, and it had not fully recovered as of October 27, 2026. A retiree who had to sell shares in a year like 2022 would have locked in losses. 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
- Minnesota taxpayers who want monthly income that is meant to be free of both federal and Minnesota income tax, held in a taxable account.
- Investors who prefer an active, buy-and-hold manager that mostly owns investment-grade bonds from Minnesota school districts, the state and local governments.
- Holders who can ride out bond-price swings like 2022's 12.2% loss, in a portfolio averaging about 11 years to maturity.
Look elsewhere if
- Non-Minnesotans, who generally would not get the state tax break. National funds such as VTEB (0.03%) or MUB (0.05%) cost far less.
- Savers investing through IRAs or 401(k)s, where tax-exempt income adds little because the account already shelters income from tax.
- Investors who want a large, heavily traded fund. MINN was the smallest of eight compared funds, and small ETFs can trade at wider price spreads.
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 |
|---|---|---|---|---|---|
| MINN this fund | 10.9 yrs | 0.25% | $46.8M | -2.0% | +4.5% |
| CMF iShares California Muni Bond ETF | 12.4 yrs | 0.08% | $4.63B | -0.6% | +3.8% |
| DFNM Dimensional National Municipal Bond ETF | 8.8 yrs | 0.17% | $2.24B | +0.7% | +3.6% |
| MUB iShares National Muni Bond ETF | 13.5 yrs | 0.05% | $45.38B | -0.2% | +3.7% |
| BAB Invesco Taxable Municipal Bond ETF | 14.5 yrs | 0.28% | $900.7M | -2.4% | +5.8% |
| VTEB Vanguard Tax-Exempt Bond ETF | 14.5 yrs | 0.03% | $48.52B | +0.1% | +4.4% |
| MEAR iShares Short Maturity Municipal Bond Activ… | 13.1 yrs | 0.25% | $1.36B | +1.9% | +3.3% |
| TFI SPDR Nuveen Bloomberg Municipal Bond ETF | 15.1 yrs | 0.23% | $3.12B | -0.8% | +3.9% |
Questions investors ask
Is MINN tax-free in Minnesota?
Mostly, yes. The fund aims for income exempt from both federal and Minnesota income tax. At least 80% of net assets must be in municipal bonds that pay that kind of interest. Up to 20% can be in bonds whose interest is taxable, including bonds subject to the federal alternative minimum tax. Also, if you sell shares for more than you paid, the gain is taxable.
Does MINN pay monthly dividends?
Yes. MINN pays income monthly. Over the 12 months to October 27, 2026, it paid about $0.68 per share, a trailing yield of 3.16%. Payments can change over time. When rates fall, issuers may repay callable bonds early, and the fund then has to reinvest the money at lower rates. The fund can also hold zero-coupon bonds, which pay no cash until they mature.
MINN vs VTEB: what's the difference?
VTEB holds municipal bonds from across the US. MINN focuses on Minnesota bonds so that Minnesota taxpayers can avoid state income tax too. VTEB costs 0.03% a year compared with MINN's 0.25%. VTEB is also much larger, at $48.5 billion as of July 31, 2026. Over three years, annualized returns were similar: 4.5% for MINN (as of October 27, 2026) and 4.4% for VTEB (as of October 30). Over one year, MINN returned -2.0% and VTEB returned 0.1%.
How much did MINN lose in 2022?
MINN lost 12.2% in calendar 2022, according to its prospectus. That was its worst year so far. Its worst quarter was the first quarter of 2022, at -8.29%. Rising interest rates pushed bond prices down. The fund's deepest drop was 18.4%, from July 2021 to October 2022, and it had not fully recovered as of October 27, 2026. From its start through December 31, 2025, the fund's average annual return was -0.32%.
What is MINN's expense ratio?
MINN's expense ratio is 0.25% a year, according to its prospectus filed April 28, 2026. In the SEC's standard example, $10,000 invested with a 5% annual return would cost about $26 after one year, $141 after five years and $318 after ten. Seven similar funds charged 0.16% on average. MINN ranked 6th of 8 on cost, well above national funds such as VTEB (0.03%) and MUB (0.05%).