Why I like municipal bond closed-end funds (CEFs) now:

  • Muni CEFs are currently trading at an average discount of 9.35% to their net asset values (NAVs).
  • These significant discounts can represent value in a world where value appears scarce.
  • Buying funds at a discount may enhance the yield investors receive.
  • Yields are currently attractive, averaging approximately 5.8% (at share price), which on a taxable equivalent basis was 6.4% and 9.6% for those investors in the lowest (10%) and highest (39.6%) tax brackets, respectively, on July 22.



Source: Van Eck Global Research. As of 7/22/15. This chart does not represent XMPT’s premium/discount. It represents the weighted average premium/discount of the underlying closed-end funds (CEFs) held by XMPT. There are many factors that influence the up-down movement of a closed-end fund’s share price, such as the fund’s yield, performance, and investor demand.


Why I like the Market Vectors® CEF Municipal Income ETF (XMPT) to access CEFs:

  • XMPT is a portfolio of 84 CEFs in a single trade, offering diversification by fund manager, CEF active investment strategy, and underlying muni bond assets.
  • It offers the benefits of an ETF, including an attractive management fee and tax efficiency.
  • It also offers monthly distributions.
  • The ETF seeks to track an intelligent Index designed to take advantage of CEF’s propensity to shift between premiums and discounts.


For more information visit XMPT now.