Municipal Bond, also known as ‘muni’, is a bond issued by a local government (state, municipality or county) in order to finance the local expenditures such as highways, new schools, hospitals etc. Municipal bonds are exempt from the federal taxes. Moreover, if the investor lives in the same state in which the muni is issued, he is also exempted from the local taxes. Regarding to this, investors make higher profits than by investing in Treasuries or corporate bonds that pay the same interest rate. Investing in ETFs which are associated with the municipal bonds is relatively safe. Therefore, municipal bonds are considered to be a good option for older investors. It is a conservative investment strategy, although it is not risk-free. There are a few risk factors, such as credit risk, interest-rate risk, call-risk or market risk. Investing via Exchange Traded Funds that hold many different muni issues is less volatile than purchasing a single municipal bond.
AMT-Free ETFs on average are in the medium-term up 4% in 6 months.
California, AMT-Free, Investment Grade, Municipal Bond ETF is in the medium-term up 7% in 1 year. In the long-term up 63% in 16 years.
New York, AMT-Free ETF is in the medium-term up 1.50% in 2 months and up 4% in 5 months and up 6% in 1 year. In the long-term up 31% in 16 years.
High Yield, Municipal Bond ETFs on average are in the medium-term up 6% in 6 months.
Municipal Bond, Bond, Infrastructure ETF is in the medium-term up 2% in 2 months and up 6% in 5 months.
Treasury Bonds, Government debt, Municipal Bond, Zero-Coupon ETF is in the medium-term up 5% in 2 months and up 15% in 1 year. In the long-term up 117% in 13 years.
|Symbol||Company Name||Price||Change||Total net assets||Total expense ratio|
|CMF||iShares S&P California Mun Bnd Fnd||115.06||0.04%||260.5 M||0.25%|
|CXA||SPDR Nuveen Barclays Cap Clfrn Mncpl Bnd||24.99||0.2%|
|FMB||First Trust Managed Municipal ETF||50.95||0.14%|
|GMMB||Columbia Intermediate Municipal Bond||52.12||2.94%|
|HYD||Market Vectors High Yield Muni. Ind||29.27||-0.14%||0.35%|
|HYMB||SPDR Series Trust||55.99||0.41%||0.5%|
|INY||SPDR Nuveen Barclays Capitl NY Mncpl Bnd||24.42||0.2%|
|ITM||Market Vectors-Inter. Muni. Index||23.03||0.09%||0.24%|
|MLN||Market Vectors Long Municipal Index||19.14||0.05%||0.24%|
|MUB||iShares S&P Natnl AMT - Free Munpl Bd Fd||107.83||3.11 B||0.25%|
|MUNI||PIMCO Intermediate Mun Bond Strat Fund||52.6||0.17%||0.35%|
|NYF||iShares S&P AMT-Fr Mncpl Bnd Fd||108.48||0.1%||124.06 M||0.25%|
|PRB||Market Vectors Pre-Refunded Mun. In||24.21||-0.07%||0.24%|
|PVI||PowerShares VRDO Tax Free Weekly Por ETF||24.9||0.25%|
|PWZ||PowerShares Insured Cali Muni Bond||25.14||0.28%|
|PZA||PowerShares Insured Nati Muni Bond||24.69||0.12%||0.28%|
|PZT||PowerShares Insured NY Muni. Bond||23.69||0.28%|
|RVNU||DBX ETF TR TRACKERS MUNICIPAL INFRASTR||25.57||0.3%|
|SHM||SPDR Nvn Barclys Cptl Shrt Trm Mncpl Bnd||47.86||0.04%||0.2%|
|SHYD||Market Vectors Short Hi-Yld Muni Idx ETF||23.77||-0.38%|
|SMB||Market Vectors Short Municipal Index ETF||17.23||0.12%||0.2%|
|SMMU||PIMCO Short Term Mncpl||49.52||0.02%||0.35%|
|SUB||iShares S&P Short Term Natnl Mupl Bd ETF||104.86||-0.02%||832.53 M||0.25%|
|TFI||SPDR Nuveen Barclays Capital Municpl Bnd||47.36||0.3%||0.3%|
|XMPT||Market Vectors ETF Trust||25.64||-0.19%|
|ZROZ||PIMCO 25 Yr Zro Cupn US Ty Inx Fd ETF||108.36||0.22%||0.15%|