Fund Evaluator:

Thrivent High Yield Municipal Bond S Overview

Thrivent High Yield Municipal Bond S (THMBX) is an actively managed Municipal Bond High Yield Muni fund. Thrivent Funds launched the fund in 2018.

The investment seeks a high level of current income exempt from federal income taxes. Under normal market conditions, the fund invests at least 80% of its net assets (plus the amount of any borrowing for investment purposes) in municipal bonds, the income of which is exempt from federal income taxation. It invests at least 50% of its assets in debt securities that, at the time of purchase, are rated within or below the "BBB" major rating category by S&P or Fitch, or the "Baa" major rating category by Moody's, or are unrated but considered to be of comparable quality by the Adviser.

About Thrivent High Yield Municipal Bond S (THMBX)

There are 2 members of the management team with an average tenure of 5.84 years: Stephanie Woeppel (2023), Johan Åkesson (2018). Management tenure is more important for actively managed funds than passive index funds.

The fund has 2 primary benchmarks: Bloomberg Municipal TR USD index with a weighting of 100% and Bloomberg 65% High Grade/35% HY TR USD index with a weighting of 100%. Thrivent High Yield Municipal Bond S has 255 securities in its portfolio. The top 10 holdings constitute 8.6% 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.

Thrivent High Yield Municipal Bond S is part of the Fixed Income global asset class and is within the Municipal Bond fund group. Thrivent High Yield Municipal Bond S has 1.4% 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 100.0% (98.6% domestic bond, 1.4% foreign bond and 0.0% convertible bond). Thrivent High Yield Municipal Bond S has 0.0% of the portfolio in cash.

Assets Under Management

The fund has $60 million in total assets, which is below the $816 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.

THMBX 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 Thrivent High Yield Municipal Bond S expense ratio is average compared to funds in the High Yield Muni category. Thrivent High Yield Municipal Bond S has an expense ratio of 0.59%, which is 40% 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. Thrivent High Yield Municipal Bond S has a portfolio turnover rate of 43%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 50% for the High Yield Muni category.

Recently, in the month of June 2026, Thrivent High Yield Municipal Bond S returned 1.3%, which earned it a grade of B, as the High Yield Muni category had an average return of 1.2%. 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.

Thrivent High Yield Municipal Bond S has a trailing yield of 4.27%, which is below the 4.36% category average. The fund normally distributes its income monthly.

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.

Thrivent High Yield Municipal Bond S Grades

Year to date, the fund has returned 3.7%, 0.3 percentage points better than the category, which translates into a grade of B. The fund has returned 8.9% over the past year (grade of B), 5.5% over the past three years (grade of B) and 0.9% per year over the past five years (grade of C).

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 Thrivent High Yield Municipal Bond S, including its riskiness, submit your email to unlock the rest of the article.