New York Life Investments launched a new actively managed municipal bond ETF, designed to serve those investors wanting to attain higher levels of tax-exempt income with interest rates near record highs.
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The company launched the NYLI MacKay Muni Allocation ETF (NYSE:MMMA), a strategy that combines a core allocation to predominantly long-duration, investment-grade municipal bonds with a tactical sleeve in high-yield munis.
The strategy is designed to balance income generation with selective risk-taking, at a time when duration and credit selection are back in the spotlight.
MMMA is managed by a team from MacKay Shields. Co-Portfolio Manager Michael Denlinger said that current market conditions have created a compelling entry point for long-duration municipal strategies, noting that tax-exempt yields are at some of the most attractive levels seen in more than 10 years.
He added that an active approach allows investors to potentially benefit from higher income today while positioning for price appreciation if interest rates begin to ease. In an environment where duration risk and issuer fundamentals matter more than usual, the fund is intended to address both, he said.
The launch will help extend the product offerings for active municipal bond ETFs already managed by New York Life Investments. These existing products include NYLI MacKay Muni Short Duration ETF (NYSE:MMSD), NYLI MacKay Muni Insured ETF (NYSE:MMIN), NYLI MacKay Muni Intermediate ETF (NYSE:MMIT) and the NYLI MacKay California Muni Intermediate ETF (NYSE:MMCA). With MMMA, the firm is adding a longer-duration option to round out the suite.
As of Sept. 30, New York Life Investments oversaw $799.4 billion in assets under management. MacKay Municipal Managers was entrusted with $81.6 billion in municipal bond assets, underscoring its role as a major player in active muni investing — proving, once again, that boring bonds can still make headlines.
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