Fund Evaluator:
E*TRADE No Fee Municipal Bond Index (ETMUX)
Follow This Fund
Best Performing in Muni National Long Over the Last Year
| 7.5% | Victory Tax Exempt Long-Term (USTEX) |
| 7.3% | Vanguard High-Yield Tax-Exempt Adm (VWALX) |
| 7.2% | Vanguard High-Yield Tax-Exempt (VWAHX) |
| 7.1% | Thrivent Municipal Bond S (TMBIX) |
| 7.0% | T. Rowe Price Core Municipal Bond (PRTAX) |
Fund Details
E*TRADE No Fee Municipal Bond Index Overview
E*TRADE No Fee Municipal Bond Index (ETMUX) is a passively managed Municipal Bond Muni National Long fund. Morgan Stanley launched the fund in 2025.
The investment seeks to provide investment results that, before fees and expenses, if any, are similar to the Bloomberg Municipal Managed Money Intermediate (1-17 Year) Index. Under normal circumstances, the fund invests at least 80% of its net assets (plus any borrowings for investment purposes) in municipal securities, the interest on which is exempt from regular federal income tax. The index is a market value-weighted grouping of municipal bonds rated in the top two ratings categories (AA-rated and AAA-rated) with maturities between one and seventeen years, in addition to key rate duration bands.
About E*TRADE No Fee Municipal Bond Index (ETMUX)
There are 3 members of the management team with an average tenure of 1.30 years: Brian Barney (2025), Devin Cooch (2025), Alison Wagner (2025). Management tenure is more important for actively managed funds than passive index funds.
The fund has 1 primary benchmark: Bloomberg Muni MM 1-17 Yr Bond Ind index with a weighting of 100%. E*TRADE No Fee Municipal Bond Index has 140 securities in its portfolio. The top 10 holdings constitute 18.3% of the fund’s assets. The fund meets the SEC requirement of being classified as a diversified fund. The fund is not considered to have an ESG focus with its investment selection and management.
E*TRADE No Fee Municipal Bond Index is part of the Fixed Income global asset class and is within the Municipal Bond fund group. E*TRADE No Fee Municipal Bond Index has 0.0% 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 96.8% (96.8% domestic bond, 0.0% foreign bond and 0.0% convertible bond). E*TRADE No Fee Municipal Bond Index has 3.2% of the portfolio in cash.
Assets Under Management
The fund has $33 million in total assets, which is below the $1 billion average for the Muni National Long 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.
ETMUX 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 E*TRADE No Fee Municipal Bond Index expense ratio is low compared to funds in the Muni National Long category. E*TRADE No Fee Municipal Bond Index has an expense ratio of 0.00%, which is 100% lower than its category average, making the fund expense ratio grade a A. 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. E*TRADE No Fee Municipal Bond Index has a portfolio turnover rate of 7%, indicating that holds its assets around 0.1 years. By way of comparison, the average portfolio turnover is 38% for the Muni National Long category.
Recently, in the month of July 2026, E*TRADE No Fee Municipal Bond Index returned -1.9%, which earned it a grade of C, as the Muni National Long category had an average return of -1.9%. 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 funds in that category.
E*TRADE No Fee Municipal Bond Index has a trailing yield of 4.36%, which is above the 3.72% 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.
E*TRADE No Fee Municipal Bond Index Grades
Year to date, the fund has returned -0.5%, 1.4 percentage points worse than the category, which translates into a grade of F. The fund has returned 4.2% over the past year (grade of F).
For more mutual fund grades, analysis and screening tools to help your investment discovery, join AAII for a $2, full-access trial. Learn more here: https://invest.aaii.com/membership.
Otherwise, for more information about E*TRADE No Fee Municipal Bond Index, including its riskiness, submit your email to unlock the rest of the article.
Gain access to exclusive AAII member-only content.
ETMUX 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 |
|
| ETMUX Return (NAV) | -1.9% | -1.1% | 4.2% | na | na | na |
| ETMUX Grade | C | F | F | na | na | na |
| +/- Category | -0.0% | -0.7% | -2.1% | na | na | na |
| Muni National Long Avg | -1.9% | -0.3% | 6.3% | 3.2% | 0.0% | 1.8% |
| ETMUX Tax Cost Ratio | na | na | 0.0% | na | na | na |
ETMUX Annual NAV Total ReturnsData as of 7/31/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| ETMUX Return (NAV) | -0.5% | na | na | na | na | na | na | na | na | na | na |
| ETMUX Grade | F | na | na | na | na | na | na | na | na | na | na |
| +/- Category | -1.4% | na | na | na | na | na | na | na | na | na | na |
| Muni National Long Avg | 0.9% | 3.0% | 2.5% | 6.8% | -11.6% | 2.8% | 4.7% | 8.1% | 0.7% | 5.8% | 0.2% |
| Risk Measures | |
| Standard Deviation: | na |
| Total Risk Index: | na |
| Category Risk Index: | na |
| Category Risk Grade: | |
| Beta: | na |
| R-Squared: | na |
| Leveraged Fund: | No |
| Inverse Fund: | No |
| Portfolio Characteristics | |
| Equity Investment Style: | na |
| Bond Investment Style: | na |
| Yield: | 4.4% |
| Dividend Distribution: | Monthly |
| Cap Gains Distribution: | Annually |
| Total Assets: | $33 Mil |
| Fund Total Assets: | $ 34 Mil |
| Share Class Type: | Other |
| Portfolio Turnover: | 7% |
Management Team
| Number of Managers: 3 | |||
| Longest Tenure: 1.3 years | |||
| Average Tenure: 1.3 years | |||
| Managers (Year): Barney Brian (2025), Cooch Devin (2025), Wagner Alison (2025) | |||
Portfolio Composition (as of 6/30/26)
| # of Holdings: | 140 |
| % in Top 10 Holdings: | 18.3% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | 0.0% |
Portfolio Allocation |
|
| Domestic Stock: | 0.0% |
| Foreign Stock: | 0.0% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 96.8% |
| Foreign Bond: | 0.0% |
| Convertible Bond: | 0.0% |
| Other: | 0.0% |
| Cash: | 3.2% |
Purchase Information
| Fund Family: | Morgan Stanley |
| Phone Number: | 800-869-6397 |
| Website: |
| Status: | Open |
| Inception Date: | April 11, 2025 |
| Min. Initial Purchase: | $ 0 |
| Min. Initial IRA Purchase: | $ 0 |
| True No-Load: | Yes |
| Front Load Maximum: | 0.00% |
| Deferred Charge Maximum: | 0.00% |
| Redemption Charge Maximum: | 0.00% |
| 12b-1 Fee: | na |
Expenses and Fees | |
| Expense Ratio (%): | 0.00% ( Rating : Low ) |
| Category Average Expense Ratio (%): | 0.78% |
| Share Class: | E*TRADE No Fee Municipal Bond Index |
| Min. Subsequent Purchase: | $ 0 |
| Min. Subsequent IRA Purchase: | $ 0 |
