SPDR Nuveen S&P High Yield Muni (HYMB), 10.2%, 15.2%
Market Vectors High Yield Muni (HYD), 10.1%, 15.1%
Market Vectors Long Muni (MLN), 5.4%, 8.1%
PowerShares Insured National Muni (PZA), 4.9%, 7.3%PowerShares Insured New York Muni (PZT), 3.9%, 5.8% iShares California Muni (CMF), 3.8%, 5.7% SPDR Barclays Muni (TFI), 2.6%, 3.9% SPDR S&P 500 (SPY), 4.4%, 4.4%
What is particularly impressive about the results are the taxable-equivalent yields. With far less traditional risk than the U.S. stock market, PowerShares National Muni produced a 7.3% taxable equivalent yield for the 33% tax bracket over the last six months. If one engaged in slightly more risk by investing in a collection of long-dated muni maturities via Market Vectors Long Muni, an investor has seen an 8.1% taxable equivalent yield for the 33% tax bracket over the last six months. Both PZA and MLN compare quite favorably compared to SPY's 4.4%. In essence, the net gains for muni ETFs are remarkably potent. As long as the masses continue piling into bond funds of all stripes, pushing down bond yields, you might expect the segment to remain attractive. If PZA or MLN dropped significantly below a 200-day moving average, however, one might move to minimize exposure.
You can listen to the ETF Expert Radio Show "LIVE", via podcast or on your iPod. You can follow me on Twitter @ETFexpert. Disclosure Statement: ETF Expert is a website that makes the world of ETFs easier to understand. Gary Gordon, Pacific Park Financial and/or its clients may hold positions in ETFs, mutual funds and investment assets mentioned. The commentary does not constitute individualized investment advice. The opinions offered are not personalized recommendations to buy, sell or hold securities. At times, issuers of exchange-traded products compensate Pacific Park Financial or its subsidiaries for advertising at the ETF Expert website. ETF Expert content is created independently of any advertising relationships. You may review additional ETF Expert at the site.
Gary Gordon reads: Real Clear Markets
On Twitter, Gary Gordon follows: Jonathan Hoenig
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