Municipal Bonds

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As the U.S. braces for a rising interest rate environment, exchange traded fund (ETF) investors may adopt a bond ladder strategy to hedge against the risks through maturity- or target-date ETF options. With the Fed intent on hiking rates ahead, investors can implement a bond laddering strategy through defined-maturity bond funds to hedge their fixed-income positions. […]

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 […]

Fixed-income investors seeking to diversify their holdings can look to municipal bonds and related exchange traded funds for their attractive yields, especially in a taxable investment portfolio. On the recent webcast, Goundhog Day: Will the Muni Market See Its Shadow in 2016?, Ashton P. Goodfield, Co-Head of the Municipal Bond Department and Portfolio Manager for Municipal […]

Municipal bond exchange traded funds could continue to strengthen in the month ahead as supply falls off with muni debt sales set to decline and the amount of redemptions and maturing debt on the rise. Year-to-date, the iShares National AMT-Free Muni Bond ETF (NYSEArca: MUB) gained 0.6%, SPDR Nuveen Barclays Municipal Bond ETF (NYSEArca: TFI) […]

Municipal debt and bond-related exchange traded funds have been standout performers over the past couple of years. But what can muni bond investors expect for the year ahead? On the upcoming webcast, Goundhog Day: Will the Muni Market See Its Shadow in 2016?, Lisa Poniewaz, ETF Regional Vice President at Deutsche Asset Management, Ashton P. Goodfield, […]

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 […]

Jan van Eck, CEO of Van Eck Global, joined ETF Trends publisher Tom Lydon to go over some alternative fixed-income exchange traded fund strategies as we look to higher interest rates ahead. For instance, van Eck pointed to safer municipal bonds and even high-yield munis as a way for investors to continue to generate attractive […]

Invesco PowerShares introduces DWIN that targets diversified, high-yielding assets The new ETF is a fund of funds, which means that it holds ETFs as its underlying component It may also favor overweighting U.S. Treasuries and reduce holdings to less than five components Invesco PowerShares has introduced a multi-asset income exchange traded fund to provide yield-oriented investors […]

Municipal debt yields are back to a half-century low, but muni bond exchange traded fund investors have not been dissuaded by the prospect of ultra-low payouts. Yields for muni debt securities are back to their lowest level since 1965 as a rally in safe-haven assets bolstered demand, reports Brian Chappatta for Bloomberg. The yield on […]

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 […]

Municipal debt and bond-related exchange traded funds have been outperforming Treasuries and could maintain their momentum ahead as more investors turn to the relatively stable and strong asset. “The audience for the asset class continues to expand with increasing interest from non-traditional domestic and foreign buyers,” according to the BlackRock Municipals Group. “As demand is […]

The Federal Reserve could announce an interest rate hike next week. Consequently, fixed-income investors may want to think about ways to limit the negative impact of rising rates, such as moving down the yield curve to short-term bond exchange traded funds. When interest rates rise, the price of older bonds with lower rates fall. Since […]

As exchange traded fund providers fuel an ongoing fee war in an attempt to one-up each other to attract assets, investors should look beyond expense ratios and consider other factors that make an ETF suitable for their investment horizon. Earlier this month, BlackRock (NYSE: BLK) trimmed the fees on seven of its iShares Core ETFs, […]

Though municipal bonds and the exchange traded funds that hold that debt are viewed as potentially vulnerable to potential changes in Federal Reserve interest rate policy, these funds have remained popular with conservative income investors. Now, municipal bond investors could see a wave of new issuance as municipalities race to get bonds to market in […]

As the markets prepare for a rising interest rate environment, bond exchange traded fund investors may turn to more defensive strategies to prop up performance and mitigate rate risks. Charles Schwab strategists argue that fixed income will offer opportunities as the Federal Reserve is set to hike interest rates, but the strategies may boring, reports […]

Despite the billions that has flowed into exchange traded funds, the municipal bond ETF space still has plenty of room to grow. Through September 30, actively managed municipal-debt funds had $573 billion in assets under management, compared to just $20 billion for index funds – the largest active-to-passive difference for eight distinct fund types tracked […]

Municipal debt and bond-related exchange traded funds may not be glamorous, but local debt securities are outperforming corporate bonds and giving many other assets a run for their money. For instance, the iShares National AMT-Free Muni Bond ETF (NYSEArca: MUB), which has a 4.72 year duration and a 1.64% 30-day SEC yield or a 2.89% […]

While the U.S. is stuck with an anemic inflation rate, investors can ride out a deflationary environment through certain assets and exchange traded funds. According to the Bureau of Labor Statistics, the total national rate of inflation was 0.2% in August, reports Jeff Cox for CNBC. Only the West had a positive Consumer Price Index […]

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 […]

Fixed income investors may generate robust taxable equivalent yields from a municipal bond exchange traded fund that tracks a basket of closed end funds. On the recent webcast, Attractive Value Now Seen in Municipal Bond Closed-End Funds, Paul Mazzilli, senior advisor for S-Network Global Indexes, pointed out that muni-closed end funds, or CEFs, represent over […]

After the recent bout of volatility, investors may find an opportunity in the municipal bond market and related exchange traded funds. On the upcoming webcast, Attractive Value Now Seen in Municipal Bond Closed-End Funds, James Colby, senior municipal strategist at Van Eck Global, Paul Mazzilli, senior advisor for S-Network Global Indexes, and Michael Cohick, ETF […]

Despite the elevated volatility as a result of slowing economic growth and uncertainty over the Federal Reserve rate hike, investors may still find value in some fixed-income assets and related exchange traded funds. For instance, Russ Koesterich, global chief investment strategist and head of the model portfolio & solutions business at BlackRock, still favors a […]

While fixed-income investors may not experience another robust run in traditional bond assets, municipal bonds and related exchange traded funds may still offer stability in a volatile market environment. The munis market has been pressured this year by rising new issues, or greater supply, but Christopher Alwine, head of the municipal bond group at Vanguard, […]

Fixed-income investors who like a more hands on approach in managing their bond investments can take a look at two new iShares municipal bond exchange traded funds that could fit well in a laddered portfolio strategy. BlackRock’s iShares recently launched the iBonds Dec 2021 AMT-Free Muni Bond ETF (NYSEArca: IBMJ) and the iBonds Dec 2022 […]

A play on the famous catchphrase offered by the fictional James Bond in the movie Goldfinger begins to describe, I believe, the state of the financial markets as August came to a close. Yes, the world’s markets have been shaken these past two weeks with declines in asset values that The New York Times1 suggested […]

The Vanguard Group has filled out a glaring gap in its fixed-income exchange traded fund investment suite, adding its first municipal bond ETF. On Tuesday, Vanguard introduced the Vanguard Tax-Exempt Bond Index Fund (NYSEArca: VTEB). “Vanguard is a pioneer in index investing and a leader in municipal bond fund management. Our new fund enables us […]

Although summer is not yet over, the “vacation” that many investors seem to have taken with respect to their muni investment perspective may well be coming to an end. The timeline leading up to the summer months included headline-generating withdrawals from mutual funds and a calendar of newly issued bonds that may push the 2015 […]

A fair number of commenters, callers and perma-bulls were relatively tough on me in May when I suggested a strategic decision to raise cash levels. They were even tougher on me when I mentioned the possibility of picking up safer havens like intermediate treasuries via iShares 7-10 Year Treasury Bond (IEF) and intermediate-to-long duration municipal […]