“Muni-to-Treasury ratios remain historically compelling, and recent market action has left munis attractive vs. corporate bonds as well,” Hayes added.
For instance, MUB, which has a 6.26 year duration, shows a tax equivalent 30-day SEC yield of 2.83% for those in the highest income bracket. In contrast, the iShares 7-10 Year Treasury Bond ETF (NYSEArca: IEF), which has a 7.74 year duration, has a 1.93% 30-day SEC yield. Additionally, the iShares iBoxx $ Investment Grade Corporate Bond ETF (NYSEArca: LQD), which has a 8.1 year duration, comes with a 3.07% 30-day SEC yield.
iShares National AMT-Free Muni Bond ETF
For more information on the munis market, visit our municipal bonds category.
Max Chen contributed to this article.