ETF Evaluator:
Capital Group Municipal High-Income ETF ()
Follow This ETF
(as of Aug 26)
Best Performing in High Yield Muni Over the Last Year
| 10.8% | VanEck CEF Municipal Income ETF (XMPT) |
| 9.9% | Eaton Vance High Income Municipal ETF (EVYM) |
| 9.5% | Rockefeller Opportunistic Muncpl Bd ETF (RMOP) |
| 9.0% | Nomura National Hi-Yld Muncpl Bd ETF (HTAX) |
| 8.8% | Franklin Municipal High Yield ETF (FTMH) |
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ETF Details
Capital Group Municipal High-Income ETF Overview
Capital Group Municipal High-Income ETF (CGHM) is an actively managed Municipal Bond High Yield Muni exchange-traded fund (ETF). Capital Group launched the ETF in 2024.
The investment seeks to provide a high level of current income exempt from regular federal income tax.
Under normal circumstances, the fund will invest at least 80% of its assets in, or derive at least 80% of its income from, securities that are exempt from regular federal income tax. The fund invests at least 60% of its portfolio in debt securities rated BBB+ or below or Baa1 or below by Nationally Recognized Statistical Rating Organizations designated by the fund’s investment adviser, or unrated but determined by the fund’s investment adviser to be of equivalent quality.
About Capital Group Municipal High-Income ETF (CGHM)
There are 3 members of the management team with an average tenure of 1.68 years: Chad Rach (2024), Jerome Solomon (2024) and Lee Chu (2025). Management tenure is more important for actively managed ETFs than passive index ETFs.
Capital Group Municipal High-Income ETF has 3501 securities in its portfolio. The top 10 holdings constitute 6.6% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a diversified fund. The ETF is not considered to have an ESG focus with its investment selection and management.
Capital Group Municipal High-Income ETF is part of the Fixed Income global asset class and is within the Municipal Bond ETF group. Capital Group Municipal High-Income ETF has 7.4% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 0.0% There is 0.0% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 99.6% (92.1% domestic bond, 7.4% foreign bond and 0.0% convertible bond). Capital Group Municipal High-Income ETF has 0.4% of the portfolio in cash.
Assets Under Management
The fund has $3 billion in total assets, which is above the $990 million average for the High Yield Muni category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.
CGHM Performance and Fees
The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Capital Group Municipal High-Income ETF expense ratio is below average compared to funds in the High Yield Muni category. Capital Group Municipal High-Income ETF has an expense ratio of 0.34%, which is 43% lower than its category average, making the fund expense ratio grade a B. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.
High portfolio turnover can translate to higher expenses and lower aftertax returns. Capital Group Municipal High-Income ETF has a portfolio turnover rate of 25%, which indicates that it holds its assets around / 0.0 years. By way of comparison, the average portfolio turnover is 38% for the High Yield Muni category.
Recently, in the month of July 2026, Capital Group Municipal High-Income ETF returned -1.6%, which earned it a grade of C, as the High Yield Muni category had an average return of -1.8%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all ETFs in that category.
Capital Group Municipal High-Income ETF has a trailing yield of 4.05%, which is below the 4.58% category average.
The fund normally distributes its income monthly and its capital gains annually.
It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.
Capital Group Municipal High-Income ETF Grades
Year to date, the ETF has returned 2.1%, 0.2 percentage points better than the category, which translates into a grade of B. The fund has returned 8.2% over the past year (grade of B).
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CGHM Trailing NAV Total Returns Data as of 7/31/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| CGHM Return (NAV) | -1.6% | 0.4% | 8.2% | na | na | na |
| CGHM Return (Price) | -1.4% | 0.5% | 8.5% | na | na | na |
| NAV +/- Price Return | -0.271% | -0.078% | -0.274% | na | na | na |
| High Yield Muni Avg | -1.8% | 0.3% | 7.4% | 4.8% | 0.2% | 2.2% |
| CGHM Grade (NAV) | C | C | B | na | na | na |
| +/- Category (NAV) | 0.2% | 0.1% | 0.8% | na | na | na |
| CGHM Tax-Cost Ratio | na | na | 0.0% | na | na | na |
CGHM Annual NAV Total ReturnsData as of 7/31/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| CGHM Return (NAV) | 2.1% | 4.4% | na | na | na | na | na | na | na | na | na |
| CGHM Return (Price) | 2.1% | 4.6% | na | na | na | na | na | na | na | na | na |
| NAV +/- Price Ret | -0.002% | 0.035% | na | na | na | na | na | na | na | na | na |
| High Yield Muni Avg | 1.9% | 4.1% | 5.5% | 6.4% | -14.8% | 6.0% | 3.9% | 10.4% | 1.1% | 7.1% | 0.7% |
| CGHM Grade (NAV) | B | B | na | na | na | na | na | na | na | na | na |
| +/- Category | 0.2% | 0.3% | na | na | na | na | na | na | na | na | na |
| Risk Measures | |
| Beta: | na |
| R-Squared: | na |
| Standard Deviation: | na |
| Category Risk Index: | na |
| Category Risk Rating: | |
| Total Risk Index: | na |
| Total Risk Rating: | |
| Portfolio Characteristics | |
| Yield: | 4.1% |
| Total Assets: | $ 3,223 Mil |
| Share Class Assets: | $ 3,223 Mil |
| Turnover: | 25.0% |
| Expense Ratio: | 0.34% |
| Index Fund: | No |
| Index Tracked: | N/A |
| Index Weighting: | 100% |
| Leveraged: | No |
| Socially Responsible Fund: | No |
| Capital Gains Distribution Frequency: | Annually |
| Income Distribution Frequency: | Monthly |
Management Team
| Number of Managers: 3 | |||
| Longest Tenure: 2.1 years | |||
| Average Tenure: 1.7 years | |||
| Managers (Year): Rach Chad (2024), Solomon Jerome (2024), Chu Lee (2025) | |||
Portfolio Composition (as of 6/30/26)
| # of Holdings: | 3501 |
| % in Top 10 Holdings: | 6.6% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | 7.4% |
Portfolio Allocation |
|
| Domestic Stock: | 0.0% |
| Foreign Stock: | 0.0% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 92.1% |
| Foreign Bond: | 7.4% |
| Convertible Bond: | 0.0% |
| Other: | 0.0% |
| Cash: | 0.4% |
Purchase Information
| Legal Structure: | Open Ended Investment Company |
| Fund Family: | Capital Group |
| Phone Number: | 800-421-4225 |
| Website: | capitalgroup.com/etf |
| Inception Date: | June 25, 2024 |
Expenses and Fees
| Expense Ratio (%): | 0.34% (Rating: Below Avg) |
| Category Average Expense Ratio (%): | 0.60% |
