BlackRock’s High-Yield Muni Fund Becomes Actively-Managed ETF

BlackRock Inc. is converting its high-yield municipal bond fund into an actively-managed ETF in a bid to grow assets under management by providing a lower-cost and more liquid investment vehicle.

The new fund, called the iShares High Yield Muni Active ETF, is trading under the ticker HIMU. It will continue to invest in high-yield state and local government debt across a variety of sectors and seek to outperform its benchmark, according to a Monday statement from the investment firm.

“Through the ETF wrapper, HIMU aims to take advantage of the attractive yield levels and strong credit quality in municipal ...