With the expected increase of state offerings ahead, yields on benchmark 10-year munis have increased to 2.29%, close to their highest since Aug. 4.
California and New York make up the two largest state weights in MUB at 22.4% and 20.1% of the ETF’s overall allocations, respectively. Alternatively, investors can also track California and New York munis through state-specific muni ETFs.
For California exposure, investors can take a look at the iShares California AMT-Free Muni Bond ETF (NYSEArca: CMF), SPDR Nuveen Barclays California Municipal Bond ETF (NYSEArca: CXA) and PowerShares Insured California Municipal Bond Portfolio (NYSEArca: PWZ). [Strong Finances Boost Appeal of California Muni ETFs]
The iShares New York AMT-Free Muni Bond ETF (NYSEArca: NYF), PowerShares New York AMT-Free Municipal Bond Portfolio (NYArca: PZT) and SPDR Nuveen Barclays NY Muni Bond (NYSEArca: INY) provide exposure to New York debt. [New York Muni ETFs Look Even Safer]
For more information on the munis market, visit our municipal bonds category.