What Is the MMSD ETF? Returns, Expense Ratio, Holdings and Alternative ETFs at a Glance
The NYLI MacKay Muni Short Term Bond ETF (MMSD) is an actively managed ETF that invests in short-term US municipal bonds. Its strengths are federally tax-exempt after-tax income and short duration, and the key selection criteria are the differences in fees and strategy versus passive short-term muni ETFs such as SUB and SHM. Investors should also review the monthly distributions and the outlook.
SubscribeWhat Is the NYLI MacKay Muni Short Term Bond ETF?
This is an actively managed bond ETF that concentrates its investments in the short-maturity segment of municipal bonds issued by US state and local governments and public agencies. It seeks both the federal income tax exemption on interest income and low interest rate sensitivity.
It suits conservative bond investors who want after-tax income while keeping interest rate volatility low.
The ETF is run with an active management approach by New York Life Investments.
How Does the NYLI MacKay Muni Short Term Bond ETF Invest?
| Item | Details |
|---|---|
| Tracking Index | Actively managed (does not track a benchmark) |
| Management Style | Active (security selection) |
| Rebalancing Frequency | Ongoing (at the discretion of the managers) |
| Distribution Frequency | Monthly |
| Expense Ratio | 0.25% |
| Issuer | New York Life Investments |
Rather than replicating an index, the MacKay Shields management team evaluates credit quality, maturity and relative value to select the short-term municipal bonds it holds. The strategy keeps duration short to limit price swings when rates rise while securing tax-exempt income.
- Federally tax-exempt income
- Short duration for low interest rate sensitivity
NYLI MacKay Muni Short Term Bond ETF Size and Costs (AUM and Management Fee)
Assets under management (AUM) stand at $84.5M, and the expense ratio is 0.25% per year.
Compared with passive short-term muni ETFs, active management leaves room for security selection, but investors should also weigh the fee level and the variability of management results.
NYLI MacKay Muni Short Term Bond ETF Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangeBecause short-term municipal bonds have brief maturities, their prices tend to fluctuate less with interest rate changes than longer-term bonds. Recent movements have also tended to be gradual, following the direction of rates and municipal bond supply and demand.
This is a category with steady demand for tax-exempt income, and fund flows vary with the rate environment and tax-related interest. The short end of the curve is also used as a cash-like alternative, drawing attention during volatile markets.
NYLI MacKay Muni Short Term Bond ETF Pros and Cons
Tax-exempt income and low interest rate sensitivity are its strengths, while the active management fee and the credit and liquidity risks typical of municipal bonds are points to watch.
💪 Key Strengths
⚠️ Points to Watch
NYLI MacKay Muni Short Term Bond ETF Alternative ETFs and Related Products
SUB, SHM, VTES and others shown in the table are low-cost short-term muni ETFs that track an index, and they differ from the actively managed MMSD in management style and fee structure. Comparison candidates outside the table include MUB and VTEB, which invest in a broad range of municipal bonds without maturity limits, and SMMU is also worth considering as an actively managed muni product in the same short-term segment.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 SUB | iShares Short-Term National Muni Bond ETF | $105.81 | +0.1% | $13.2B | 0.07% | 2.58% | -0.6% |
 VTES | Vanguard Short-Term Tax Exempt Bond ETF | $100.23 | +0.1% | $4.1B | 0.05% | 2.68% | -1.4% |
 SHM | State Street SPDR Nuveen ICE Short Term Municipal Bond ETF | $47.32 | +0.1% | $3.5B | 0.20% | 2.71% | -1.6% |
 CGSM | Capital Group Short Duration Municipal Income ETF | $26.13 | +0.1% | $1.7B | 0.25% | 2.92% | -1.0% |
 TAFI | AB Tax-Aware Short Duration Municipal ETF | $24.87 | +0.0% | $1.5B | 0.27% | 3.14% | -1.7% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
 NYT | New York Times Co | 0.08% | $69.58 | +0.2% | $11.2B | 29.0 | 1.29% |
 MAIN | Main Street Capital Corp | 0.02% | $53.51 | -1.1% | $5.0B | 10.8 | 7.77% |
 USLM | United States Lime & Minerals Inc | 0.01% | $111.71 | +0.2% | $3.2B | 23.9 | 0.21% |
 NJR | New Jersey Resources Corp | 0.01% | $53.16 | -0.9% | $5.4B | 14.7 | 3.62% |
NYLI MacKay Muni Short Term Bond ETF Investor Checkpoints
Here are the points to review before investing in MMSD. Since this is a tax-advantaged municipal bond product, check your own tax situation along with interest rate, credit and liquidity risks in advance, and also review the fee level and distribution trends.
| Checkpoint | What to Check | Current Status |
|---|---|---|
| 💵 Expense Ratio | Check the active management fee level | Needs review |
| 🏛️ Tax Benefits | Whether the federal income tax exemption applies | Municipal bond feature |
| ⏱️ Duration | Interest rate sensitivity of the short-term segment | Low |
| 💧 Liquidity | Trading conditions in the municipal bond market | Needs review |
Credit risk among municipal issuers and a contraction in municipal market liquidity are the main sources of volatility. Even in the short-term segment, prices can fluctuate if rates change sharply, so caution is warranted.
This is a short-term municipal bond ETF worth considering for conservative investors who want both after-tax income and low interest rate sensitivity. If you want to reduce the fee burden, a passive alternative is the better fit, while this ETF suits those who want active selection.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
This article reflects information as of July 2, 2026.
Today's 5 AI picks, all free