Fixed income Municipal bonds

From short-term, high-grade portfolios to long-term, high-yield strategies, we offer tax-exempt solutions for a broad range of needs.
Explore our line-up

Why partner with us Providing consistent, tax-free income since 1976

Municipal bonds have a history of offering attractive yields and income free from federal and, in some cases, state income taxes. As the 6th largest municipal bond manager by assets1, we have the ability to access preferred market opportunities and gain valuable market insight.

Access

We provide investors unique access to a range of municipal bond investments across various vehicles including mutual funds, ETFs and separately managed accounts (SMAs).

Acumen

With over 50 advanced degrees and designations and 20 years of average experience, our team provides keen judgment to identify the best potential opportunities.2

Insights

We are committed to providing financial professionals with regular insights on the municipal bond market that help enhance your business and connect with your clients.

$60B+ in assets managed

Industry’s 2nd largest high yield municipal bond manager and 6th largest municipal bond manager.1

1976 Launch of first municipal fund

We have half century of experience managing municipal bond assets.2

5 LSEG Lipper awards

This leading global investing benchmark recognized our performance across five strategies in 2026.3

Mark paris

Invesco Municipal bond capabilities

Mark Paris, CIO and Head of Municipal Bond investing describes how municipal bonds can appeal to a wide range of investors. 

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What we offer Municipal Bond line-up

Ticker Fund name Vehicle Duration Download
ORNAX Invesco Rochester® Municipal Opportunities Fund Mutual Fund Long Fact sheet
ACTHX Invesco High Yield Municipal Fund Mutual Fund Long Fact sheet
ISHAX Invesco Short Duration High Yield Municipal Fund Mutual Fund Limited Fact sheet
IROC Invesco Rochester® High Yield Municipal ETF ETF Intermediate Fact sheet
OIA Invesco Municipal Income Opportunities Trust Closed-End Fund Long Fact sheet
Ticker Fund name Vehicle Duration Download
VKMMX Invesco Municipal Income Fund Mutual Fund Long Fact sheet
OPTAX Invesco AMT-Free Municipal Income Fund  Mutual Fund Long Fact sheet
VKLMX Invesco Intermediate Term Municipal Income Fund Mutual Fund Intermediate Fact sheet
INTM Invesco Intermediate Municipal ETF ETF Intermediate Fact sheet
PZA Invesco National AMT-Free Municipal Bond ETF ETF Long Fact sheet
BAB Invesco Taxable Municipal Bond ETF ETF Long Fact sheet
IIM Invesco Value Municipal Income Trust Closed-End  Fund Long Fact sheet
IQI Invesco Quality Municipal Income Trust Closed-End Fund Long Fact sheet
VGM Invesco Trust for Investment Grade Municipals Closed-End Fund Long Fact sheet
VKI Invesco Advantage Municipal Income Trust II Closed-End  Fund Long Fact sheet
VKQ Invesco Municipal Trust Closed-End  Fund Long Fact sheet
VMO Invesco Municipal Opportunity Trust Closed-End  Fund Long Fact sheet
Ticker Fund name Vehicle Duration Download
ATFAX Invesco Limited Term Municipal Income Fund Mutual Fund Limited Fact sheet
ORSTX Invesco Short Term Municipal Fund Mutual Fund Short Fact sheet
PVI Invesco Floating Rate Municipal Income ETF ETF Ultrashort Fact sheet
Ticker Fund name Vehicle Duration Download
OPCAX Invesco California Municipal Fund Mutual Fund Long Fact sheet
OLCAX Invesco Limited Term California Municipal Fund Mutual Fund Limited Fact sheet
RMUNX Invesco Rochester® New York Municipals Fund Mutual Fund Long Fact sheet
OPNYX Invesco Rochester® AMT-Free New York Municipal Fund Mutual Fund Long Fact sheet
LTNYX Invesco Rochester® Limited Term New York Municipal Fund Mutual Fund Limited Fact sheet
OPATX Invesco Pennsylvania Municipal Fund Mutual Fund Long Fact sheet
ONJAX Invesco New Jersey Municipal Fund Mutual Fund Long Fact sheet
PZT Invesco New York AMT-Free Municipal Bond ETF ETF Long Fact sheet
VCV Invesco California Value Municipal Income Trust Closed-End  Fund Long Fact sheet
VTN Invesco Trust for Investment Grade New York Municipals Closed-End  Fund Long Fact sheet
VPV Invesco Pennsylvania Value Municipal Income Trust Closed-End  Fund Long Fact sheet
Ticker Fund name Vehicle Duration Download
BSMQ Invesco BulletShares 2026 Municipal Bond ETF ETF Target Duration Fact sheet
BSMR Invesco BulletShares 2027 Municipal Bond ETF ETF Target Duration Fact sheet
BSMS Invesco BulletShares 2028 Municipal Bond ETF ETF Target Duration Fact sheet
BSMT Invesco BulletShares 2029 Municipal Bond ETF ETF Target Duration Fact sheet
BSMU Invesco BulletShares 2030 Municipal Bond ETF ETF Target Duration Fact sheet
BSMV Invesco BulletShares 2031 Municipal Bond ETF ETF Target Duration Fact sheet
BSMW Invesco BulltetShares 2032 Municipal Bond ETF ETF Target Duration Fact Sheet
BSSX Invesco BulletShares 2033 Municipal Bond ETF ETF Target Duration Fact Sheet
BSMY Invesco BulletShares 2034 Municipal Bond ETF ETF Target Duration N/A

Related resources

Frequently asked questions

The income produced by municipal bonds is typically exempt from income taxes at the federal level. Municipal bonds may also be exempt from state and local taxes based on where the investor resides.

In our view, there are many good reasons to invest in the municipal bond market now.

First, muni yields are as high as they've been in 15 years following two years of unprecedented interest rate hikes by the Fed.4

Second, municipal bonds have a long history of low defaults compared to corporate bonds because they fund essential American services.5

Third, the municipal yield curve is steeper than the Treasury yield curve. A steep yield curve means that there is value in duration. Municipal investors who own longer dated munis may be compensated much more than those in longer dated Treasuries.

Fourth, federal, state and in some places local tax rates are high and we don't see them going down. This may provide additional value to the muni tax exemption.

Our high conviction approach to investing aims to deliver a highly competitive yield by exploiting anomalies that exist in the high yield municipal market.  The Invesco Municipal Bond team employs a bottom-up, research-oriented approach to generate income-driven total return. Our experienced credit research staff works to uncover value in non-rated bonds, which may offer the potential for higher yield and total return.

We believe in giving investors choices that work for their unique needs. Invesco Rochester High Yield Municipal ETF is an actively managed exchange-traded fund that seeks current income exempt from federal income tax.

We view risk from multiple lenses and manage it using both integrated and independent approaches. First, risk management is embedded within our investment process. Second, multiple governance structures provide independent oversight and monitoring. Third comes senior management and board review.

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    • 1

      Source: Simfund, Invesco Ltd, as of March 31, 2026.
    • 2

      Source: Invesco Ltd.
    • 3

      LSEG Lipper Fund Awards. © 2026 LSEG Lipper. The LSEG Lipper Fund Awards, granted annually, highlight funds and fund companies that have excelled in delivering consistently strong risk-adjusted performance relative to their peers.

      The LSEG Lipper Fund Awards are based on the Lipper Leader for Consistent Return rating, which is a risk-adjusted performance measure calculated over 36, 60 and 120 months. The fund with the highest Lipper Leader for Consistent Return (Effective Return) value in each eligible classification wins the LSEG Lipper Fund Award. For more information, see lipperfundawards.com. Although LSEG makes reasonable efforts to ensure the accuracy and reliability of the data contained herein, their accuracy is not guaranteed by LSEG Lipper. Invesco California Municipal Fund Y shares were named best in-class among 28 California Municipal Debt Funds, for 10-year period ending November 30, 2025. Invesco Rochester® Municipal Opportunities Fund Y shares were named best in-class among 38 High Yield Municipal Debt Funds for the 10-year period ending November 30, 2025. Invesco New Jersey Municipal Fund R6 shares were named best in-class among 12 New Jersey Municipal Debt Funds for the 5-year period ending November 30, 2025. Invesco Rochester® New York Municipals Fund Y shares were named best in-class among 22 New York Municipal Debt Funds for the 10-year period ending November 30, 2025. Invesco Pennsylvania Municipal Fund Y shares were named best in-class among 13 Pennsylvania Municipal Debt Funds for the 10-year period ending November 30, 2025.
    • 4

      Source: Bloomberg, Municipal Bond Index as of December 31, 2024.
    • 5

      Municipal bonds have a long history of low defaults compared to corporate bonds, because they fund essential American services. Credit fundamentals have been strong for the past several years, and they remain so. As of the first quarter of 2025, S&P Global Ratings (S&P) reported it was the 16th consecutive quarter and Moody’s Investors Service (Moody’s) reported it was the 17th consecutive. S&P reported an upgrade/downgrade ratio of 1.4, while Moody’s reported an upgrade/downgrade ratio of 2.6. (S&P Global Ratings and Moody’s Investors Service, as of March 31, 2025)