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Current DateTime: 03:13:11 27 Nov 2009
LinksList Documentid: 30328029

CNBC Stock Blog

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Oct.23
3:30 PM ET
Thursday, 23 Oct 2008
Investor Edge: Muni Bond ETFs
Posted By:CNBC.com

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.

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 [PZA  Loading...      ()   ]
-Market Vectors-Lehman Brothers AMT-Free Short Municipal Index [SMB  Loading...      ()   ] 
-PowerShares Insured California Muni Bond ETF [PWZ  Loading...      ()   ]

Compare with Treasury Bond ETFs:

-iShares Lehman 10-20 Year Treasury Bond [TLH  Loading...      ()   ]
-iShares Lehman TIPS Bond [TIP  Loading...      ()   ]

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© 2009 CNBC.com

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