Who owns municipal bonds?
Individual, or “retail,” investors are the largest holders of municipal securities. They hold 35 percent of municipal bonds directly and another 36 percent indirectly through mutual funds, closed-end funds, UITs, and ETFs. According to ICI’s most recent data, investment companies of all types hold $907 billion, or 36 percent, of the $2.5 trillion municipal bond market. Mutual funds alone account for 32 percent of all U.S. municipal securities, totaling over $809 billion. Closed-end funds hold 4 percent, totaling $89 billion; municipal bond UITs hold $8 billion; and ETFs that track municipal bond indices hold $575 million in assets.
