At a glance
XMPT charges 3.4% a year, above the 0.86% average of the 7 funds most like it (the most expensive of 8). It has $219.5M in assets, the 8th largest of that group; it paid 7.02% of its price in distributions over the past 12 months, monthly. Over the past year it returned −3.6% with distributions reinvested, the weakest of those 8 funds; over three years it returned +9.6% a year. At its worst it fell 27.9% in the 2022 bear market (S&P 500: 24.5%), and is still below its earlier high. Its ten largest positions make up 59.4% of the fund, out of 38 in all.
The short version
VanEck CEF Muni Income ETF (XMPT) is a fund of funds. It tracks the S-Network Municipal Bond Closed-End Fund Index by owning about 38 closed-end funds that hold tax-exempt municipal bonds. Its trailing 12-month yield was 7.02% as of October 27, 2026, paid monthly. The trade-offs are total expenses of 3.40% a year, mostly from the underlying funds, and larger price swings caused by those funds' borrowing and changing discounts.
Price history
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XMPT -3.6% 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 | |
|---|---|---|---|---|---|---|
| XMPT official prospectus, to Dec 31, 2025 | — | +7.87% | — | -0.45% | +2.71% | — |
| ICE US Broad Municipal Index (reflects no deduction for fees, expenses or taxes) index, same period | — | +4.10% | — | +0.92% | +2.35% | — |
| XMPT price data to Oct 27, 2026 | -4.1% | -3.6% | +9.6% | -2.0% | — | +0.8% |
- Over the year to Oct 27, 2026, XMPT returned -3.6%, 8th of 8 among similar funds.
- Its 5-year annualized return was -2.0%.
- Its worst full calendar year was 2022 (-24.0%); its best was 2025 (+8.0%).
- The deepest fall in its price history was 35.2% (Aug 23, 2021 to Oct 25, 2023), not yet recovered.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | -4.1% | — |
| 2025 | +8.0% | +7.87% |
| 2024 | +7.5% | +6.85% |
| 2023 | +2.6% | +2.67% |
| 2022 | -24.0% | -23.76% |
| 2021 | +7.9% | +8.34% |
| 2020 | — | +7.32% |
| 2019 | — | +20.33% |
| 2018 | — | -5.91% |
| 2017 | — | +8.32% |
| 2016 | — | +1.53% |
| 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 | Not in the price data, which starts Jun 2, 2020 |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 27.1% over that stretch · deepest drop along the way 27.9%, not recovered by the end of the data |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $1.0900 | |
| 2025 | $1.2800 | +2.4% |
| 2024 | $1.2505 | +50.7% |
| 2023 | $0.8300 | -25.2% |
| 2022 | $1.1100 | +0.9% |
| 2021 | $1.1000 |
What's inside
As of Jul 31, 2026, the fund held 38 securities; the ten largest made up 59.39% of assets.
| Fund held | Weight | |
|---|---|---|
| Nuveen AMT-Free Quality Municipal Income Fund | 7.42% | |
| BlackRock MuniHoldings Fund Inc | 7.40% | |
| Nuveen Quality Municipal Income Fund | 7.03% | |
| BlackRock MuniYield Quality Fund Inc | 6.23% | |
| Nuveen AMT-Free Municipal Credit Income Fund | 6.09% | |
| Nuveen Municipal Credit Income Fund | 5.40% | |
| BlackRock Municipal 2030 Target Term Trust | 5.30% | |
| Nuveen Municipal High Income Opportunity Fund | 5.00% | |
| BlackRock MuniYield Quality Fund III Inc | 4.83% | |
| Nuveen Municipal Value Fund Inc | 4.68% | |
| PIMCO Municipal Income Fund II | 3.67% | |
| Nuveen Select Tax-Free Income Portfolio | 2.42% | |
| Aberdeen Municipal Income Fund | 2.38% | |
| Western Asset Managed Municipals Fund Inc | 2.15% | |
| Invesco Municipal Opportunity Trust | 2.03% |
By country
United States 99.65%By asset type
Stocks 99.65%What changed recently
- Over the three months to Jul 31, 2026, investors added a net $15.9M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +1.23%, +1.88%, -3.05%.
How it works
XMPT is passive. Before fees, it aims to match the price and yield performance of the S-Network Municipal Bond Closed-End Fund Index, which is made up of US-listed closed-end funds. A closed-end fund has a fixed number of shares that trade like a stock. Its share price can sit above (a premium) or below (a discount) the value of the bonds it owns. XMPT normally puts at least 80% of its assets in the index's securities. It also puts at least 80% in investments whose income is exempt from federal income tax, and changing that rule needs shareholder approval. The fund doesn't try to beat the index or move to cash for defense.
As of July 31, 2026, it held 38 funds, and the top ten made up 59.4% of assets. The largest were Nuveen AMT-Free Quality Municipal Income Fund (7.4%), BlackRock MuniHoldings Fund (7.4%) and Nuveen Quality Municipal Income Fund (7.0%). Federal law limits how much of any one closed-end fund it can own. Turnover was 13%.
There are two layers to understand. You pay XMPT's 0.40% management fee plus its share of the underlying funds' costs, for 3.40% in total. Those underlying funds may borrow to invest (leverage) and may hold junk bonds, so their values can swing more. Some income may be subject to the alternative minimum tax (AMT), and it is generally subject to state income tax.
What it really costs
- XMPT charges 3.4% a year, versus an average of 0.86% for the similar funds below (8th of 8, cheapest first).
- Of that, 0.4% is the management fee; the rest covers other fund expenses.
- Using the prospectus's standard example, $10,000 invested would cost about $343 in the first year and $3,685 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| XMPT | $343 | $1,045 | $1,769 | $3,685 |
Structure and tax notes
- Invests in other funds rather than directly in stocks or bonds, so its holdings are those funds.
- 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 a high, monthly payout of mostly federally tax-exempt income, though its cost and swings are well above those of a typical bond fund.
XMPT could add monthly income that is mostly exempt from federal income tax. Its trailing 12-month yield was 7.02% ($1.40 a share) as of October 27, 2026. That income is expensive. Total expenses are 3.40% a year. In the SEC's $10,000 example, that comes to $343 in the first year and $3,685 over ten years. Price data starts in June 2020, so it doesn't cover the 2008 crisis or the 2020 crash, but the prospectus shows a 7.32% gain for 2020. In 2022, the fund lost 23.76%. Its deepest drop was 35.2%, from August 2021 to October 2023, and it had not recovered as of October 27, 2026. Someone who had to sell shares during that stretch would have locked in losses.
Past results don't predict the future. A plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors in higher tax brackets who want monthly income mostly exempt from federal tax, with a 7.02% trailing yield as of October 27, 2026.
- People who want one index-based fund holding about 38 municipal closed-end funds, mostly run by managers such as Nuveen and BlackRock.
- Holders who can live with larger swings than a typical bond fund, including a 35.2% drop from August 2021 to October 2023.
Look elsewhere if
- Cost-conscious investors: total expenses of 3.40% a year, mostly from the underlying funds, cost $343 per $10,000 in the SEC's first-year example.
- Anyone who may need to sell in a downturn. The fund lost 23.76% in 2022 and had not regained its 2021 peak by October 2026.
- Investors using IRAs, where tax-exempt income adds no benefit, or those who need income free of state tax or the AMT.
Close alternatives
Matched by other buffer (defined-outcome) funds, largest first.
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| XMPT this fund | 3.4% | $219.5M | -3.6% | +9.6% |
| BUFR FT Vest Laddered Buffer ETF | 0.95% | $10.49B | +11.6% | +16.8% |
| BUFD FT Vest Laddered Deep Buffer ETF | 0.95% | $2.04B | +9.5% | +13.9% |
| PJAN Innovator U.S. Equity Power Buffer ETF - Ja… | 0.79% | $1.44B | +10.5% | +14.8% |
| PDEC Innovator U.S. Equity Power Buffer ETF - De… | 0.79% | $984.1M | +11.6% | +14.9% |
| FDEC FT Vest US Equity Buffer ETF - December | 0.85% | $1.31B | +12.9% | +18.5% |
| FJAN FT Vest US Equity Buffer ETF - January | 0.85% | $1.47B | +12.3% | +17.4% |
| FFEB FT Vest U.S. Equity Buffer Fund - February | 0.85% | $1.42B | +12.9% | +18.6% |
Questions investors ask
Does XMPT pay monthly dividends?
Yes. XMPT pays distributions every month. Over the 12 months to October 27, 2026, it paid $1.40 a share, a trailing yield of 7.02%. The income comes from the 38 municipal closed-end funds it owns, so the amount can change from month to month and isn't guaranteed. Part of that high yield reflects the underlying funds' use of borrowed money, which also adds risk.
Is XMPT income tax-free?
Mostly at the federal level, but not entirely. The fund normally puts at least 80% of its assets in investments whose income is exempt from federal income tax. Some of that income may still be subject to the alternative minimum tax (AMT), and it is generally subject to state income tax. The prospectus also warns that a bond's tax-exempt status could be lost after it is bought.
Why is XMPT's expense ratio so high?
Because it is a fund of funds. XMPT's own management fee is 0.40%, but it also pays its share of the underlying closed-end funds' costs, including their advisory and administration fees. Those costs bring total annual expenses to 3.40%, per the prospectus filed August 27, 2026. In the SEC's standard example, $10,000 invested would cost $343 in the first year and $3,685 over ten years.
How does XMPT compare with a regular municipal bond index?
It has been more volatile, with mixed results. As of December 31, 2025, XMPT returned 7.87% over one year, against 4.10% for the ICE US Broad Municipal Index. Over five years, it averaged -0.45% a year, against 0.92% for the index. Over ten years, it averaged 2.71%, against 2.35%. The index deducts no fees. XMPT's bigger swings come from closed-end fund discounts and leverage.
How much did XMPT lose in 2022?
XMPT lost 23.76% in 2022, its worst calendar year in the prospectus. Its worst quarter was the first quarter of 2022, at -14%. Rising interest rates push bond prices down, and the underlying funds' leverage and changing discounts can make those drops larger. Its deepest decline, 35.2% from August 2021 to October 2023, had not been fully recovered as of October 27, 2026.