Amid growing advisor interest in fixed income, American Century’s Joe Gotelli highlights municipal bonds as a timely opportunity, especially after recent market dislocations tied to fiscal uncertainty and tariff concerns. 

Despite early 2025 volatility, muni valuations remain appealing compared to taxable bonds, offering tax-free income and potential for excess returns as the Fed nears possible rate cuts. Gotelli notes that long-duration, high-quality muni assets may benefit in a softening growth environment, positioning investors for attractive long-term yields. 

American Century’s active muni ETFs—such as the Diversified Municipal Bond ETF (TAXF) and California Municipal Bond ETF (CATF)—use flexible strategies to manage duration, credit quality, and sector exposure while maintaining tax efficiency. Gotelli emphasizes Active management provides an advantage over passive approaches by allowing deeper credit research and selective exposure to specialized sectors like charter schools and tobacco settlement bonds. 

Finsum: Active ETF Fixed Income, gives investors innovative tools to navigate complex tax and interest rate dynamics.