Conservative income-seeking investors, including plenty of retirees, often flock to municipal bonds. However, the asset class encountered some headwinds earlier this year as 10-year Treasury yields spiked.
Fortunately, those yields are steadying and the iShares National Muni Bond ETF (NYSEArca: MUB) is getting its groove back. MUB, the largest municipal bond exchange traded fund by assets, is higher by almost 1% over the past month. In muni bond terms, that’s good work in such a short time frame.
“Municipals posted a third consecutive month of positive performance in May amid a backdrop of rangebound interest rates and favorable supply-demand dynamics,” according to BlackRock research.
ETF TRENDS
by TODD SHRIBER
JUNE 11, 2021