Muni bond, municipal bonds, funds of all types have been taking a drubbing, and the weakness continues.
Muni bond funds still control most muni bond investments, with about a half-trillion dollars in assets compared with a mere $8 billion for muni ETF s (exchange-traded funds).
But much of the attention during the recent swoon is on muni ETFs, not because they're better or worse than regular muni bond funds, or the individual bonds themselves, but because they're simply easier to track on a tick-by-tick basis.
The biggest of all muni-bond ETFs is the I-Shares S&P National Muni Bond Fund , better known by its stock symbol, MUB. It comprises nearly 30 percent of all muni bond ETF assets.
After peaking in August at around $107, it’s now trading at around $100. Most of the decline has occurred over the past week, and while on a percentage basis that slide may appear small, it’s a big drop for a bond fund—especially one that yields 3.54 percent.
Among reasons for the decline:Page 1 of 3 | Next Page