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Tarwheel said:VTMFX is a great option if you have Vanguard accounts.
VTMFX is a great option if you have Vanguard accounts.
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Morningstar Risk Rating★★★★
Number of Years Up26
Number of Years Down4
Best 1 Yr Total Return (Feb 3, 2019)25.29%
Worst 1 Yr Total Return (Feb 3, 2019)-13.85%
How does best & worst return happen in same year ?
Think I will check else ware .
Or buy good Muni bonds funds in Vanguard
I'm thinking that this is a typo ... Below is the link for the detail you referenced above.
https://finance.yahoo.com/quote/FLAAX/ then click on the performance tab.
Perhaps, they meant 02/03/2009.
And, yes ... I owned this fund back then (2008 & 2009)... and the tax free muni's took a big hit along with most everything else. Remember ... The Great Recession? Many investors had to sell quality investments to meet margin calls. This forced asset valuations downward as there were little buyers to be found. As can be seen form the graph this fund became a great buy back during this time period.
To see the graph and how asset values declined ... click on the below link and set the graph to max.
Have a good one Derf ... and, thanks again for stopping by and making comment.
I hope you are doing well?
Here's a list of all the 4 and 5 star muni mutual funds at Fidelity sorted by yield. Don't forget there are several good ETFs out there as well. I hope you find what you're looking for.
What this means is that on average, unless you're in the 22% or higher tax bracket, munis aren't going to make much sense for you.
Suppose you invest $1,000 in a Treasury yielding 2%. You'll get $20 in interest in a year. If you're in a 12% bracket, then you'll have $17.60 after taxes. If you're in the 22% bracket, you'll have $15.60 after taxes.
If you'd invested in a muni yielding 80% as much, you'd have 80% x $20 = $16 interest. That's a good deal compared with the Treasury if you're in the 22% bracket, but not so good if you're in the lower 12% bracket.
If you do a search on muni treasury ratio, you'll come up with sites with current data.
R W Baird reports the current ratio (for 10 year maturity bonds) is 85%.
Raymond James reports 83.5% (10 year), and says that last week the ratio was 80.2%.
VTMFX manages its equity holdings directly, so it can control cap gains a bit better than TAIFX which holds equity funds that are not tax-sensitive. This is reflected in a somewhat better tax cost ratio over the past 1 and 3 years as calculated by M*.
TAIFX tax cost ratios: http://performance.morningstar.com/fund/tax-analysis.action?t=TAIFX
VTMFX tax cost ratios: http://performance.morningstar.com/fund/tax-analysis.action?t=VTMFX
I appreciate comments from MSF and Tarwheel, very helpful.