I'm thinking about jumping back into National Muni's, considering several OEF's, such as GSMIX (GS Muni income fund), MEMTX (Black Rock), BNMSX (Baird Core Inter.), among other (Nat. Intermediate) funds.
Not really interested in HY and don't want to have multiple Muni funds. Hoping to park some cash into a Nat. Inter. Muni to get a decent yield and total return!
Right now I have a bunch of cash sitting in FZDXX (Fido MM) with 7-day yield of 2.39% (taxable).
It is a long-term investment, so i don't believe i would be late-to-the-party, correct???
Any thoughts on these funds or others?
Any other suggestions?
Thanks for any and all thoughts, recommendations and ideas!
If you don't want to jump up to long-duration IG munis for the better yield, you might look into relatively higher quality, short-term high yield muni funds. HY in muni-land isn't as risky as comparably rated HY corps.
Best buy from schwab.com they have much better qualities munis and most st if them not junk rated
Crash, I live in Florida, no state tax, of course.
MikeM and others, FZDXX has a nice yield but no Cap. Apprec. My thoughts were as AndyJ stated "not something I'd count on from where we are now".
I'm just not crazy about HY but maybe that's the only place to get yield and CA or maybe as johnN suggested individual muni's, which I have not looked into yet.
Any further thoughts are appreciated!!!
NZF as an example would double your current MM fund for income.
CEFs (example below, also NXQ...)
year to date MUB is up 0.6% while a good MM FZDXX is only at 0.2%...for 3 months MUB is up 3.1% while FZDXX 0.6%
Matt is diffidently late because the next 3 month will not be at 3.1% for MUB. I continue to own Munis as long as they have their momentum.
I agree with the point you made though.
If you're looking for schooling on CEF's there are plenty of 101 course sites:
to start with or just Google "how to invest in CEF's"
I highly recommend the M* 'Closed-End Funds' discussion board FWIW
Second, In opposition to my original post, I decided to invest in a HY muni OEF (GHYAX; Goldman Sachs).
I am now looking to partner GHYAX with another muni fund with shorter "duration" and a tad lower on the "risk" scale.
The OEF's I came across originally (GSMIX (GS Muni income fund), MEMTX (Black Rock), BNMSX (Baird Core Inter.), Eaton Vance and a couple of other Nat. Intermediate funds) still seem to be legit options, along with the suggested CEF's.
But the metrics of these funds appear inferior to short-duration HY muni's such as ISHAX (Invesco).
What am I missing? Am I miss-interpreting the numbers?
Any thoughts, ideas, suggestions and recommendations are greatly welcome!
For me, ISHAX might be a named as a short duration high yield muni fund; but, from my perspective, it is anything but a short duration fund as it carries an average duration of 4.64 years with an average effective maturity being listed, by M*, at 9.37 years. To me, this is not a short duration high yield muni fund. I'm thinking short duration would be within a 1 to 3 year range with an average effective maturity likewise falling within that range as well.
P.S. Matt, I use NVHAX quite a bit. I don't invest in IG munis much at all these days; absent leverage, their yields have been pretty paltry for years.
I do use muni CEFs (Pimco, Invesco, and Nuveen have some pretty decent ones), but not when they're at high valuations like they are now. Pimco's are generally at high premia now, and they just announced some distribution cuts early this week. I'll own a muni CEF or two when the next selloff comes along. You might look into that route, but it does take some time to get your personal investment schtick down with CEFs.
Good luck -- AJ
SMD - Short Municipal Debt Funds - Funds invest in municipal debt issues with dollar-weighted average maturities of less than three years.
SIM - Short-Intmdt Municipal Debt Funds - Funds invest in municipal debt issues with dollar-weighted average maturities of one to five years.
ISHAX has an average effective weighted maturity of 9.37 years. (Effective maturity is generally shorter than stated maturity because it incorporates the likelihood of being called.) That makes it clearly not short term by Lipper definitions. Likewise, M* shows the fund as intermediate term.
wxman123, if understand you correctly, you are using VWALX as your "core" muni holding and supplementing it with other muni's?
I currently own GHYAX, Goldman Sachs HY muni; how (un)wise would it be to pair GHYAX with another HY muni? What if the the HY muni was of short duration such as NVHAX.
Any further input would be greatly appreciated!