Donnernv (< 20)

Donnernv's CAPS Blog

Extremely High Yield Managed Muni ETFs

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December 30, 2009 – Comments (4) | RELATED TICKERS: NQU

If you are seeking high yield managed muni funds, this site has a comprehensive listing. I have a major position in NQU.

Their management fees are compensation for their (I hope) expertise in selecting lower risk munis while still capturing high untaxed yields.

Of course, do your own DD.

http://static.seekingalpha.com/article/165682-9-yields-still-available-on-municipal-bond-funds

Heck of a lot better than CDs or Treasuries.

4 Comments – Post Your Own

#1) On December 30, 2009 at 8:02 PM, Tastylunch (30.00) wrote:

thanks donnernv. I'll check it out.

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#2) On December 30, 2009 at 8:43 PM, Donnernv (< 20) wrote:

As an added note...if I were going to do this in a BIG way, I'd split the stash up 5-10 ways among these ETFs to further minimize the risk of a default in one muni issuer.

Since they trade throughout the day like stocks, they are appropriate as a parking place for significant funds while awaiting clarification on the market trends upcoming.

They'll hold up well with a sinking U$D, but be wary of skyrocketing interest rates.

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#3) On December 30, 2009 at 8:55 PM, Donnernv (< 20) wrote:

I should add that PIMCO has just introduced a new managed ETF (MUNI) that yields somewhat in excess of 5%. They are probably the best in the world at evaluating risk in munis.

Their management fees are slightly higher than most (an added 0.11%) but the added expertise and safety may be worth it.

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#4) On December 30, 2009 at 11:34 PM, rd80 (99.31) wrote: