New York Life Investment Management Launches Actively Managed Muni High Income ETF
Event summary
- New York Life Investment Management launched the NYLIM MacKay Muni High Income ETF (MMHI) on October 1, 2026.
- MMHI is an actively managed ETF focused on higher-yielding municipal bonds, managed by the MacKay Municipal Managers team.
- The fund aims to provide high tax-exempt income, with at least 60% of assets in municipal securities rated BBB+/Baa1 or below.
- MacKay Municipal Managers oversees nearly $87 billion in municipal assets and is supported by 30 investment professionals.
The big picture
The launch of MMHI reflects the growing demand for actively managed, high-income municipal bond products in a market characterized by increased issuance and yield opportunities. With $837.6 billion in assets under management as of June 30, 2026, New York Life Investment Management is leveraging its specialized municipal bond expertise to tap into this segment. The strategy emphasizes municipal bonds capable of generating current income while excluding distressed and non-accruing debt, aiming to capitalize on pricing inefficiencies.
What we're watching
- Market Differentiation
- Whether MMHI can distinguish itself in a crowded municipal bond ETF market through active management and rigorous credit underwriting.
- Credit Risk Management
- The effectiveness of MMHI's approach in managing the credit risks inherent in higher-yielding municipal securities.
- Investor Demand
- The pace at which investors adopt MMHI, given the current market environment favoring higher starting yields and increased municipal issuance.
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