Related Outside Content

With the Federal Reserve delaying its interest rate hike, municipal bond exchange traded funds maintained their momentum, with benchmark yields dipping to new lows. The iShares National AMT-Free Muni Bond ETF (NYSEArca: MUB) was slightly higher Wednesday, ending in the black for the 12th session in a row. MUB is up 3.2% year-to-date. Broad investment-grade […]

With the Federal Reserve holding off on raising interest rates to this point in 2016, investors have been flocking to longer-dated fixed income exchange traded funds, including municipal bond funds. Municipal bonds and the corresponding ETFs are popular among conservative, income investors for added yield, tax advantages and as an avenue for diversification in portfolios […]

Municipal bond exchange traded funds may not be the most exciting investment, but they have been maintained their momentum in 2016, providing investors with steady and stable returns. Fixed-income investors should take a second look at municipal bonds as they begin to fall behind Treasury bonds. “While tax-exempt munis have lagged strong-performing Treasuries so far […]

Each day ETFtrends.com publishes news, strategy and commentary on ETFs in the realms of Commodities, Currency, Equities and Smart-Beta to name a few. Here’s a look at the Top 15 Most Viewed Articles of the Week on ETF Trends, May 16-20, 2016. Click the headline to read the full article – enjoy! 1. A Very Positive Forecast […]

Each week ETF Trends publisher Tom Lydon sits down for “ETF of the Week” for MarketWatch on Chuck Jaffe’s MoneyLife Show where he highlights big movers and disappointments among exchange traded funds. This week, Lydon looked at the VanEck Vectors High-Yield Municipal Index ETF (HYD). The fund, which recently changed to VanEck Vectors from Market Vectors, is one fixed-income […]

Fixed-income investors who follow the benchmark Barclays U.S. Aggregate Bond Index may be missing out on the stability and yield opportunity found in municipal debt securities. Consequently, traders should consider including a muni bond exchange traded fund to round out their investment portfolios. Muni bonds help diversify a fixed-income portfolio and augment yields for those […]

Municipal debt and bond-related exchange traded funds have been used as a relatively stable fixed-income stream for many investment portfolios. Since muni bond interest is exempt from federal taxes, muni ETFs are a good way for investors seeking tax-exempt income, especially those in higher tax brackets. Due to its tax-exempt status, the asset category is […]

Puerto Rico was set to default on payments Monday, but fixed-income investors continue to pile into municipal bonds and related exchange traded funds, driving the market higher. The commonwealth was expected to default on $422 million in Government Development Bank debt, but investors kept pouring more money into tax-exempt muni funds last week, reports Brian […]

Note: This article is part of the ETF Strategist Channel By Justin Sibears Broadly speaking, total returns for most asset classes can be broken into two components: income and capital appreciation. For large-cap domestic equities, both sources of return look to be constrained for the coming decade. As of March, the S&P 500’s dividend yield was […]

High-yield, speculative-grade bond exchange traded funds are attracting billions of dollars as market volatility dissipates and investors look to capitalize on cheaper valuations in riskier assets after the recent sell-off. Investors funneled $2 billion into funds in high-yield and high-yield municipal debt peer groups over February, Todd Rosenbluth, S&P Global Market Intelligence Director of ETF […]

As people digest the changing Federal Reserve outlook, fixed-income investors may want to hold onto their municipal debt and bond-related exchange traded fund positions. “One area of the U.S. bond market that does merit attention is the municipal market,” according to Russ Koesterich, Global Chief Investment Strategist and Head of the Model Portfolio & Solutions […]

Even with mounting concern over Puerto Rico’s ability to repay debt obligations and ongoing speculation about when the Federal Reserve will finally increase interest rates, municipal exchange traded and mutual funds remain popular with investors. The munis market has been pressured this year by rising new issues, or greater supply, but Christopher Alwine, head of […]

Mounting concern over Puerto Rico’s ability to repay debt obligations could continue to add to volatility in high-yield municipal bond exchange traded funds. High-yield munis dropped off in late June on Puerto Rico default fears but has traded higher since, along with the broader markets. Over the past week, the Market Vectors High Yield Municipal […]

Greece or Puerto Rico. Investors have their pick of default poison, but investors in fixed income exchange traded and mutual funds would do well to monitor goings on in Puerto Rico because the U.S. territory’s imminent default could affect some well-known municipal bond funds. So dire is the situation in Puerto Rico, Gov. Alejandro García […]

With Greece captivating investors’ attention today, the reaction to Puerto Rico’s debt troubles might just be “Oh yeah, Puerto Rico is about to default.” That does not change the fact the U.S. territory cannot pay $72 billion in debts. So dire is the situation in Puerto Rico, Gov. Alejandro García Padilla told the New York […]

Earlier this week, Moody’s Investors Service lowered Chicago’s credit rating to junk status after the Illinois Supreme Court ruled against a state pension reform plan. Moody’s says Chicago’s public pension plan is underfunded by $20 billion, but some high-yield municipal bond exchange traded funds have remained durable in the face of the Chicago controversy. For […]

Another round of financing problems in Puerto Rico could shake the municipal debt market and bond-related exchange traded funds. According to the island’s Government Development Bank, the government could run out of cash by the end of September and could execute emergency measures, such as holding debt repayments, reports Edward Krudy for Reuters. Specifically, the […]

Speculation that the Federal Reserve is close to raising interest rates is not chasing investors from fixed income exchange traded funds. Investors added $35.7 billion to bond ETFs in the first quarter. Municipal bond funds got in on the action. In the first quarter 2015, investors put $1.4 billion of fresh money into municipal bond […]

Even with the specter of higher interest rates looming, some investors are not shying away from municipal bond exchange traded funds. To this point, 2015 has been a banner year for inflows to fixed income ETFs and data indicate muni ETFs are getting in on that action. Investors “have added about $1 billion to ETFs […]

Fixed income exchange traded funds are coming off a record year of asset gathering that saw two bond funds rank among the top 10 ETFs for added assets. To start 2015, municipal bond funds are keeping the torch burning for bond ETFs. “While investors pulled $4.9 billion out of taxable bond mutual funds in the […]

The shrinking municipal bonds market helped munis-related exchange traded funds outperform in the fixed-income space in 2014. However, the favorable supply and demand dynamics may be about to change and begin holding back the munis market. Over the past year, the iShares National AMT-Free Muni Bond ETF (NYSEArca: MUB) rose 8.7%, SPDR Nuveen Barclays Municipal […]

The municipal bond market and related exchange traded funds will continue to benefit from the supply-demand but investors could see short-term volatility from default speculation, notably in Puerto Rican debt. “I think the tailwinds are still very positive for municipal bonds,” Jim Colby, portfolio manager for Market Vectors’s suite of municipal bond ETFs, said on […]

After posting one of their best annual gains since 2011, municipal debt securities, along with related exchange traded funds, may begin to slow down. The iShares National AMT-Free Muni Bond ETF (NYSEArca: MUB) has increased 9.0% year-to-date and gained 10.3% over the past year. [MuniNation: Crosscurrents May Benefit Municipals] Now, PIMCO and Morgan Stanley warn […]

Despite Puerto Rico debt restructuring concerns, ongoing debt settlement talks in Detroit and elevated fears of additional public pension-induced municipal bankruptcies in other parts of the U.S., municipal bond ETFs have been solid performers in 2014. That includes the high-yield variety, such as the Market Vectors High Yield Municipal Index ETF (NYSEArca: HYD). Muni bond […]

Despite the Puerto Rico debt restructuring concerns, municipal bond exchange traded funds could still advance as new issuance falls to a 13 year low. Over the past month, the iShares National AMT-Free Muni Bond ETF (NYSEArca: MUB) and SPDR Nuveen Barclays Municipal Bond ETF (NYSEArca: TFI) are 0.3% higher. Year-to-date, the two ETFs have gained […]

Passively managed exchange traded funds usually do not make wholesale changes to their portfolios. Most of the underlying indices for passive ETFs rebalance quarterly and even then, holding and sector changes often boil down to just a few basis points. However, there are circumstances where issuers of passive ETFs opt to take a more active […]

Municipal bonds, along with related exchange traded funds, are trading at their deepest discount to U.S. Treasuries in four months after another round of debt concerns over Puerto Rico’s finances sparked a sell-off in muni funds. High-yield muni ETFs suffered the brunt of the blow, with the Market Vectors High Yield Municipal Index ETF (NYSEArca: […]

Fixed-income exchange traded fund investors have been hearing about the rate risk in long-term bonds, but now some are sounding the alarm on short-duration debt. “Last year, we were concerned primarily with reducing interest-rate risk by selling high grade (largely AAA and AA-rated) long-maturity municipal bonds and reinvesting in a combination of intermediate-term, investment-grade municipal […]

I do the “ETF of the Week” for MarketWatch every Thursday on Chuck Jaffe’s MoneyLife Show where I highlight big movers and disappointments among exchange traded funds. On Thursday, I focused on the Market Vectors High-Yield Municipal Index ETF (NYSEArca: HYD). Despite recent municipal defaults, tax-exempt muni debt can provide investors with attractive yields and […]

After the Detroit’s bankruptcy hindered demand, municipal bonds, along with related exchange traded funds, are posting robust gains on huge inflows. Year-to-date, the iShares S&P National AMT-Free Muni Bond ETF (NYSEArca: MUB) is up 6.3%, SPDR Nuveen Barclays Municipal Bond ETF (NYSEArca: TFI) rose 6.4% and Market Vectors Intermediate Municipal Index ETF (NYSEArca: ITM) increased […]