Market Vectors High Yield Municipal Index ETF (NYSEArca: HYD)
30-Day SEC Yield: 5.91%
Effective Duration: 11 years
Comment: Municipal bonds have been a favored destination for conservative income investors for years, but some of the air has come out of that trade this year due to rising interest rates and concerns about the higher rate of municipal defaults. Earlier this year, BlackRock said that investors should avoid longer-maturity bonds and trade lower-rated debt for securities with higher grades. HYD has not recovered from its tapering-induced tumble and trades only modestly higher today than where it did in late June. [BlackRock Cautious on Muni Bond ETFs]