Muni Bond ETFs Still Attractive

Then there’s the supply issue. This year, the muni market was dominated by current and advance refundings ahead of the Fed’s rate hike. That’s pretty much run its course. The issuance calendar in 2016 is likely to be dominated by financings for long-deferred infrastructure projects.

So, here’s the deal: MUB’s now trading at the $110 level. The long-term charts point to a technical objective of $140. With a tax-free current yield of 2.5 percent and a duration of 6.3 years, MUB seems like a pretty good portfolio diversifier, don’t you think? 

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Disclosure: Brad Zigler pens's Alternative Insights newsletter. Formerly, he headed up marketing and research for the Pacific Exchange's (now NYSE Arca) option ...

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