Investor Edge: Muni Bond ETFs
In this installment of CNBC 101 — the investors' mini-seminar — learn the potential advantages of investing via municipal bond ETFs.
Muni exchange-traded funds (ETF):
-Hold basket of state and city bonds
-Often have tax-free yields, many now at record highs
Some have yields higher than taxable yields of similar-termed Treasurys.
- Click & watch CNBC 101 video for 3 Top Performing Muni ETFs
CNBC's Bertha Coombs notes that the State of California sought to raise $4 billion through bond sales; instead, it amassed $5 billion.
Caveat: Muni yields can be volatile. Some have been moving between 25-50 basis points over the last 10 days.
More Municipal Bond ETFs:
-PowerShares Insured National Municipal Bond Portfolio
-Market Vectors-Lehman Brothers AMT-Free Short Municipal Index
-PowerShares Insured California Muni Bond ETF
Compare with Treasury Bond ETFs:
-iShares Lehman 10-20 Year Treasury Bond
-iShares Lehman TIPS Bond