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How To Choose A Municipal Bond Fund

edited August 2012 in Fund Discussions
Hi MFO,

Learn Bonds just published the following article. Please let me know if you find it helpful.

http://www.learnbonds.com/how-to-choose-a-municipal-bond-fund/

Best,

Marc Prosser
Publisher
Learn Bonds

Comments

  • A few thoughts:
    -In step 1, Washington is listed twice: "(Florida, Texas, Nevada, Washington, Washington, Alaska, Wyoming, and South Dakota)".
    -A claim that a national fund provides higher yield is not true.
    -Are there really muni bonds index funds (i mean classic mutual funds, not ETFs)?
    -Would your readers benefit from some risk disclosures, such as California has significant bond supply because they can't get their sh*t together (oops, budget deficit closed) and such?
    -Should you be mentioning that high yield municipal bonds have none of the risks of the high yield corporate bonds, but the common name?

    The article is very simplistic and I would hope that those who pick up muni funds (i.e. higher income individuals) are sophisticated enough to make their choices based on other research.

    This could work as a filter though. i would only add that leaving out closed-end-funds addresses a fraction of investable muni funds universe.
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