TFI SPDR Nuveen Bloomberg Municipal Bond ETF

Interest income exempt from federal income tax is among the many distinct advantages that municipal bonds offer to investors. They also show very little correlation with returns from equity investments. Thus, they offer relatively high yields at lower levels of risk and are considered second only to government securities in terms of safety of capital invested. By holding a well diversified portfolio of such securities, Municipal Bond ETFs significantly lower the associated default risk.

Below we will share with you the top 3 highest yielding Zacks #1 ranked municipal bond mutual funds.

Exchange Traded Fund	SEC Yield
Market Vectors Long Municipal Index ETF	4.51%
iShares S&P CA AMT-Free Municipal Bond	3.65%
SPDR Nuveen Barclays Capital Muni Bond	3.00%

Market Vectors Long Municipal Index ETF (MLN) - this ETF seeks to track the performance and yield of the Barclays Capital AMT-Free Long Continuous Municipal index. This ETF has returned over 14.4% year to date.  This ETF has a below average expense ratio of 0.24%. The top holding of this ETF is Houston Tex Util Sys Rev Comb Util 5% Note.iShares S&P CA AMT-Free Municipal Bond ETF (CMF) - seeks to replicate the price and yield performance before fees of the California Municipal Bond Sector. This ETF has a below category expense ratio of 0.25% and has $185 million in net assets. The top holding of this ETF is California Statewide Communities Bond.

SPDR Nuveen Barclays Capital Muni Bond (TFI) - seeks to relicate the price and yield performance of Barclays Capital Municipal Managed Money Index. This ETF has a very low expense ratio of 0.22% versus the category average of 0.25%. The top holding of this ETF is Triborough Brdg & Tunl Auth 5% Note.

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Zacks Investment Research
 
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