In fact, it was announced last week that one of the smaller muni ETFs, the Columbia Intermediate Municipal Bond ETF (GMMB), with $5.3 million in assets under management, will be closed in August. (Muni investors should also be aware that ETF.com has added a new category to be able to search for taxable municipal ETFs, which, as of now, includes only the PowerShares Taxable Municipal Bond Portfolio (BAB).
The enhancement provides the opportunity to remind investors that taxable municipals can often be an attractive alternative to other taxable bonds, with the additional benefit of a different credit risk profile.)
Right now, the 10- to 15-year part of the muni bond yield curve is fairly steep. The 10-year spot captures 77% of the 30-year yield, but the 15-year spot offers 92% of the max yield. Some investors may find value extending within this part of the curve (as of 6/23/17, based on the AP MBIS muni curve).
Patrick Luby is the municipal strategist at CreditSights Wealth. As of this writing, neither the author nor his firm held positions in the securities mentioned. For more information or feedback, please contact us at [email protected] or call us at 212-340-3898 or 1-800-460-3320. This article is not intended as an offer or solicitation with respect to the purchase or sale of any security or as personalized investment advice. CreditSights Wealth publishes investment research but does not recommend the purchase or sale of financial products or securities, and does not give personalized financial or investment advice. Recommendations made in a report may not be suitable for all investors. See Important Disclosures at https://cswealth.com/disclaimer.