ETF Spotlight on iShares S&P National Municipal Bond (NYSEArca: MUB), part of a weekly series.
Assets: $1.3 billion
Holdings: The fund holds investment-grade municipal bonds, rated at least BBB- by Standard & Poor’s, Baa3 by Moody’s or BBB- by Fitch. Each bond must be denominated in U.S. dollars and have a minimum term to maturity of one calendar month.
Objective: MUB seeks to track the iShares S&P National AMT-Free Municipal Bond Index.
What’s Good
- MUB has an expense ratio of 0.25% with 409 holdings
- Yields 3.64%
- It’s up 6.1% year-to-date
- Muni bonds are exempt from federal taxes and, in some cases, state and local taxes
The Latest News
- Among fixed-income funds in the third quarter, municipal bonds nabbed seven of the top 10 spots
- There is still a large amount of debt hanging over many state and local economies, so demand for debt investments could remain high, according to analysts
- Municipal bond ETFs offer many benefits as they give investors a low-cost and safe way to invest in the municipal market
- Since municipal bonds are more transparent than any other bond, you know exactly where your money is
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The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.