Municipal bond investors “have been spoiled with some pretty robust total returns for an asset class that’s not typically known for that,” Hayes said in the article.
Hayes now suggests that investors should avoid longer-maturity bonds and trade lower-rated debt for securities with higher grades.
High-yield municipal bond ETF options include:
- Market Vectors High Yield Municipal Index ETF (NYSEArca: HYD): 4.66% 30-day SEC yield; up 13.2% over the past year
- SPDR Nuveen S&P High Yield Municipal Bond ETF (NYSEArca: HYMB): 4.20% 30-day SEC yield; up 14.2% over the past year
Broad municipal bond ETFs include:
- iShares S&P National AMT-Free Municipal Bond Fund (NYSEArca: MUB): 1.61% 30-day SEC yield; up 2.1% over the past year
- SPDR Nuveen Barclays Municipal Bond ETF (NYSEArca: TFI): 1.68% 30-day SEC yield; up 4.5% over the past year
For more information on munis, visit our municipal bonds category.
Max Chen contributed to this article.