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16 important things you should know about Invesco VMICX mutual fund

Updated: July 12, 2021
29
Bull Case
  • 3-year return above the benchmark
  • 10-year return above the benchmark
Bear Case
  • Low net assets
  • 5-year return below the benchmark
  • 15-year return below the benchmark
  • High expense ratio
  • Sales load and/or distribution fees

Before we start: if you’re looking for VMICX “stock” price, you can quickly find it out by visiting Finny and typing "VMICX quote". If you’re looking for a quick scoop on VMICX "stock" (price chart, key stats, buy or sell analysis and holdings), go to Finny and look for "VMICX". You’ll get all this info in one place.

Are you looking to buy or sell VMICX? Or perhaps you’re looking for VMICX fact sheet, and learn about its alternatives? If so, you came to the right place.

In this VMICX mutual fund review, we’ll address key questions our readers have been asking us about this fund, above and beyond what you can find in its prospectus, and on Morningstar or Yahoo Finance.

Here is what you’ll be able to find in this review:

  • Fact Sheet: VMICX performance, returns, expense ratio, holdings and dividend yield;
  • Analysis: VMICX buy or sell; the pros and cons of investing in VMICX mutual fund;
  • Alternatives: other ETFs and mutual funds you should consider as alternatives to VMICX.

And here is the list of questions we’ll answer:

  1. Describe AIM Tax-Exempt Funds (Invesco Tax-Exempt Funds): Invesco Municipal Income Fund; Class C Shares (VMICX).
  2. What are VMICX holdings?
  3. What is VMICX performance? What are VMICX historical returns?
  4. How many up and down years did VMICX have historically?
  5. What is VMICX dividend yield?
  6. What is VMICX minimum initial investment amount?
  7. What is VMICX expense ratio?
  8. Does VMICX have any sales loads or 12b-1 distribution expenses?
  9. What is VMICX tax efficiency (tax-cost ratio)?
  10. What is VMICX beta? How would you assess VMICX risk?
  11. What is VMICX Sharpe ratio?
  12. What is VMICX Finny Score? VMICX buy or sell?
  13. What are the pros of investing in VMICX? What are VMICX buy reasons?
  14. What are the cons of investing in VMICX? What are VMICX sell reasons?
  15. Compare and contrast: VMICX vs VTMSX.

So let’s start. Scroll down to the question that interests you the most.

Fact Sheet

1. Describe AIM Tax-Exempt Funds (Invesco Tax-Exempt Funds): Invesco Municipal Income Fund; Class C Shares (VMICX).

The Fund seeks to provide a high level of current income exempt from federal income tax, consistent with preservation of capital by investing at least 80% of its assets in a diversified portfolio of tax-exempt municipal securities rated investment grade at the time of purchase.

2. What are VMICX top holdings?

VMICX has 0 stock holdings and 763 bond holdings.

The top 10 holdings represent 6.50% of total assets. Here are the top holdings:

Name Symbol % Assets
PUBLIC AUTH FOR COLO ENERGY NAT GAS PUR REV 6.5% N/A 1.11%
BUCKEYE OHIO TOB SETTLEMENT FING AUTH 5% N/A 0.72%
ROANOKE VA ECONOMIC DEV AUTH HOSP REV 5% N/A 0.68%
WASHINGTON ST CONVENTION CTR PUB FACS DIST 5% N/A 0.63%
TENNESSEE ENERGY ACQUISITION CORP GAS REV 4% N/A 0.61%
NEW YORK TRANSN DEV CORP SPL FAC REV 5% N/A 0.60%
SALT VERDE FINL CORP SR GAS REV ARIZ 5% N/A 0.58%
LUCAS CNTY OHIO HOSP REV 5.25% N/A 0.53%
METROPOLITAN WASH D C ARPTS AUTH ARPT SYS REV 5% N/A 0.53%
ALLEGHENY CNTY PA HOSP DEV AUTH REV 5% N/A 0.51%

3. What is VMICX performance? What are VMICX historical returns?

VMICX has generated the following returns:

  • 1-month return is 0.57%;
  • 3-month return is 2.50%;
  • 1-year return is 2.50%;
  • 3-year return is 4.60%;
  • 5-year return is 2.70%;
  • 10-year return is 4.09%;
  • 15-year return is 3.36%.

4. How many up and down years did VMICX have historically?

In the last 10 years, VMICX had 7 up years and 3 down years.

VMICX up and down years

5. What is VMICX dividend yield?

VMICX yield is 2.21%.

6. What is VMICX minimum initial investment amount?

VMICX minimum initial investment amount is $1.00K.

7. What is VMICX expense ratio?

VMICX expense ratio is 1.56%. The expense ratio of a fund is the total percentage of fund assets used for administrative, management, and all other expenses.

VMICX expenses

8. Does VMICX have any sales loads or 12b-1 distribution expenses?

VMICX 12b-1 distribution fee is 1. VMICX front-end sales load is 0. VMICX back-end sales load is 1.

9. What is VMICX tax efficiency (tax-cost ratio)?

  • 1-year ax cost ratio is 0%;
  • 3-year ax cost ratio is 0%.
VMICX tax costs

10. What is VMICX beta? How would you assess VMICX risk?

VMICX Beta

11. What is VMICX Sharpe ratio?

  • 3-year Sharpe ratio is 0.56;
  • 5-year Sharpe ratio is 0.31;
  • 10-year Sharpe ratio is 0.75;
  • 15-year Sharpe ratio is 0.41.
VMICX Sharpe ratio

Analysis

12. What is Finny Score? buy or sell?

Finny Score is 29. Our quantitative analysis shows 2 reasons to buy and 5 reasons to sell it, resulting in the Finny Score of 29.

13. What are the pros of investing in VMICX? What are VMICX buy reasons?

The following are VMICX strengths from our perspective:

  • VMICX 3-year return is 4.6%, which is in line with the 3-year return of the benchmark index (S&P Municipal Bond TR), 4.94%.
  • VMICX 10-year return is 4.09%, which is in line with the 10-year return of the benchmark index (S&P Municipal Bond TR), 4.33%.

14. What are the cons of investing in VMICX? What are VMICX negatives?

The following are VMICX weaknesses from our perspective:

  • VMICX net assets are $210.10 million. This fund is not a popular choice with retail investors.
  • VMICX 5-year return is 2.7%, which is lower than the 5-year return of the benchmark index (S&P Municipal Bond TR), 3.19%.
  • VMICX 15-year return is 3.36%, which is lower than the 15-year return of the benchmark index (S&P Municipal Bond TR), 4.43%.
  • VMICX expense ratio is 1.56%, which is not negligible. Is the fund expensive to you, and does it align to your investment strategy?
  • Warning: this fund has a 12b1 and deferred sales fee. The maximum 12b1 fee is 1%, while the maximum deferred sales load is 1%. A 12b-1 fee is an annual marketing or distribution fee on a mutual fund. Deferred sales load is a back-end sales charge and is imposed when an investor redeems shares.

Alternatives

15. Compare and contrast: VMICX vs VTMSX.

Both VMICX and VTMSX are mutual funds. VMICX has a lower 5-year return than VTMSX (2.7% vs 15.6%). VMICX has a higher expense ratio than VTMSX (1.56% vs 0.09%). Below is the comparison between VMICX and VTMSX.

VMICX VTMSX
Segment Tax Exempt Fixed Income: Muni National Long U.S. Equity: Small Blend
Net Assets $210.10M $8.43B
Expense Ratio 1.56% 0.09%
Management Style active passive (index-based)
Underlying Index N/A N/A
YTD Return 2.74% 23.11%
1-Year Return 2.5% 2.47%
3-Year Return 4.6% 11.75%
5-Year Return 2.7% 15.6%
10-Year Return 4.09% 13.2%
Dividend Yield 2.21% 1%

VTMSX profile: The Fund seeks long-term growth of capital by investing primarily in equity securities included in Standard & Poor's Small-Cap 600 Index.

For further information, check out VMICX vs VTMSX comparison details.

In the VMICX review, we covered VMICX key stats (return, performance, yield, expense ratio, and holdings), buy and sell analysis, and alternative investments. If this review was helpful to you, feel free to check out other mutual fund and ETF reviews.
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