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7 Muni-Bond ETFs That Stay On Track

TedTed
in Fund Discussions
FYI: Whether yields are 2% or 7%, investors will keep buying municipal bonds.
Except one major hurdle for ETF providers has been that muni-bond indexes are not always dynamic enough for the ETF to track. Because pricing mechanisms for some municipals can be difficult, especially if issues are small and thinly traded, investors must trust that prices reasonably reflect reality. This inefficiency can lead to drift from published NAV or premiums and discounts.
Regards,
Ted
http://www.marketwatch.com/story/7-muni-bond-etfs-that-stay-on-track-2015-04-04/print

Comments

  • varmint
    The municipals prefunded by treasuries would seem to be a conservative approach, it is something I am looking into. Would be interested in any comments from readers if they have PRB or something similar to it in a mutual fund. I am in municipal fund now that is long so I want to shorten duration with a short term fund or etf and something conservative oriented.
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