Other muni bond ETFs include SPDR Nuveen Barclays Capital Short Term Municipal Bond (NYSEArca: SHM), iShares S&P Short Term National AMT-Free Municipal Bond ETF (NYSEArca: SUB) and SPDR Barclays Capital Municipal BondETF (NYSEArca: TFI).
Despite the rally in municipal bonds last year, the spread between municipal bonds and Treasuries is now the widest since 2009, writes Russ Koesterich, iShares global chief investment strategist. “This is as much a reflection of Treasuries being expensive as it is evidence that municipals are cheap,” he said. “Still, current spreads do offer investors an opportunity for a significant after-tax pickup in income. Second, municipal finances continue to improve, with state revenues up approximately 4% in 2011.”
iShares S&P National AMT-Free Municipal Bond Fund
