The fund invests in bonds issued by various US states and local governments. It holds mostly securities eligible for federal income tax exemption, giving investors tax-advantaged income.

It suits high-income investors in top tax brackets who want to reduce their tax burden while still earning stable interest income.

It is an actively managed ETF launched by BNY Mellon in 2026.

The fund allocates a significant portion of its assets to investment-grade bonds for stability, and invests the remainder flexibly in high-yield bonds to enhance returns. It adjusts duration nimbly in response to interest rate changes and the credit environment.

• A flexible portfolio spanning both investment-grade and high-yield bonds
• Regular tax-free cash flow through monthly distributions

Assets under management (AUM) stand at $1.5B, and the Expense Ratio is 0.49% per year.

Compared with the passive index-tracking ETFs shown in the table, such as MUB and VTEB, BMOP is distinguished by its active management, which seeks additional returns through security selection and duration adjustments based on market conditions.

Prices fluctuate with supply and demand in the municipal bond market and the direction of US monetary policy, while demand for tax-free assets among high-income investors has remained solid.

Since the conversion from a mutual fund to an ETF, improved accessibility has led to steady inflows from individual investors and asset management platforms seeking stable tax-free income.

The fund combines tax advantages with the flexibility of active management, but investors should consider the risk of price declines when interest rates rise and the higher cost of active management.

MUB and VTEB in the table are the leading passive vehicles for gaining low-cost exposure to the broad municipal bond market. Investors seeking higher profitability can consider active alternatives such as JMUB or CGMU, and those who want investments focused on a specific region can also review state-specific ETFs such as CMF (California).

These are the key checkpoints to review before investing in BMOP. Please make your final investment decision after fully considering the characteristics of this fund, which combines the tax-free effect of the US municipal bond market with active management.

Municipal bonds are sensitive to interest rate changes. Investors should also note that if local government finances deteriorate, for example during an economic downturn, credit spreads may widen and cause short-term losses.

This is an active solution suited to affluent investors seeking stable tax-free income. It is a good alternative for investors who expect higher returns than passive ETFs while still wanting professional risk management.