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Using Municipal Bond ETFs To Avoid Tax Hikes

Tue, 05 Mar 2013 07:00:51 -0500

Nothing rings more true than Ben Franklin’s famous quote, “In this world nothing is certain but death and taxes.” Looking past the morbid side of that statement, higher taxes are almost certainly coming in the next few years, regardless of who is in office, as local counties, states and the federal government all look to fill their dwindling coffers [see How To Take Profits And Cut Losses When Trading ETFs]. This year’s past “Fiscal Cliff” battle highlighted the budget struggles facing the nation. The country faces a debt dilemma and ultimately many Americans will be paying more in taxes in the years ahead based on the agreement reached to prevent the automatic spending cuts. However, those Americans in the top three tax brackets will be feeling the brunt of the cliff’s resolution. Wealthier Americans will jump on their family income taxes and some will pay an additional percentage on certain [...]

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Muni bonds may be money makers in 2013

Fri, 28 Dec 2012 06:35:43 -0500

Municipal debt is being considered by more investors because, simply put, these bonds often carry higher yields than their taxable counterparts, writes Deborah Levine.

Weathering Economic Headwinds: ETFs To Prepare Like Bill Gross

Wed, 12 Dec 2012 09:00:38 -0500

This month, legendary bond king Bill Gross published his investment outlook, aptly titled “Strawberry Fields – Forever?”, in which he warned investors to be prepared to face some “structural economic headwinds” in the next few years. In addition to the aftermath of the 2008 financial crisis we still feel today, diminished productivity gains and the looming fiscal cliff, Gross points out other blaring red flags that investors need to pay attention to, as these critical factors will likely hamper economic growth in not only the United States, but also in other developed nations around the globe [see 101 ETF Lessons Every Financial Advisor Should Learn]. In recent years, the United States has experienced lackluster growth and painfully high levels of unemployment, and, at this point in time, our road to recovery still seems quite far away. Gross, however, states that there are other underlying problems that will likely prevent real economic growth, or what he identifies [...]

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PIMCO ETF Manager Bill Gross Buying Munis on Looming Taxes

Sat, 01 Dec 2012 06:38:42 -0500

With the fiscal cliff looming over America and potential tax hikes across the board, Bill Gross, the manager behind the PIMCO Total Return Fund, believes tax-free municipal bonds are an attractive option. Investors can gain access to the muni bond securities through the exchange traded fund...

Sector Watch: Municipal Bonds

Thu, 29 Nov 2012 09:38:04 -0500

by Geoff Considine Municipal bonds are issued by states and municipalities and typically have tax advantages relative to other fixed income assets. In general, income from muni bonds is tax exempt at the federal level and at the state level for investors living in the issuing state. Municipal bonds have historically been favored by investors in high [...]

Muni Bond ETFs and the Election

Tue, 06 Nov 2012 05:58:13 -0500

Municipal bond exchange traded fund investors could be impacted by the outcome of the presidential election, so they are watching for any potential changes to the federal income-tax exemption status on munis as the government tries to tackle the growing deficit problem. In outlining their goals to...

Muni Bond ETFs Stay the Course

Fri, 29 Jun 2012 07:00:07 -0400

Doomsayers who depicted an imminent implosion in the municipal bonds market back in 2010 helped drive a mass exodus from munis related exchange traded funds. However, as no real threat manifested, the attractive yields and tax advantages in muni bonds helped bring investors back to the market. In...

Risks of Muni Bond ETFs

Wed, 27 Jun 2012 07:00:34 -0400

Income hunters are taking on more municipal bonds and exchange traded funds to compensate their fixed-income yields as Treasuries remain near historic lows. However, potential investors should be wary of the higher yields as there are no free lunches. Issuers are lowering the safeguards in the...

Muni Bond ETFs as Alternative to Treasuries

Wed, 06 Jun 2012 13:38:24 -0400

Municipal bonds haven’t been trashed by massive defaults as some analysts predicted. Muni bonds and exchange traded funds are even thriving as an alternative to historic low-yielding Treasuries. “Month-to-date and year-to-date performance of all muni high-yield bond sectors (with the...

Muni Bond ETFs Rise on State Fiscal Outlook, Europe Woes

Mon, 14 May 2012 09:45:38 -0400

California’s higher-than-expected budget deficit of $16 billion is a reminder of the fiscal difficulties many states are facing after the 2008 financial meltdown. Governor Jerry Brown said the shortfall grew from $9.2 billion in January in part because tax collections have not come in as high as...

Forbes Low Cost All Star Lineup

Wed, 25 Apr 2012 10:36:20 -0400

By MyPlanIQ:

William Baldwin of Forbes looks at 27 super cheap ETFs -- 15 with equity exposure and 12 in bonds. You ...

Investment Management: Retirement Income ETFs Portfolios Review

Wed, 15 Feb 2012 14:56:47 -0500

Retirement Income ETFs plan is designed for income producing purpose: high dividend (yield) stock ETFs are chosen for both US stocks and international stocks asset classes. For emerging market stocks, WisdomTree Emerging Markets Equity Income ETF (DEM) is used. Furthermore, JPMorgan Alerian MLP Index ETN (AMJ) is added to high income producing U.S. stocks category. Their 401K [...]

Uncertainty Over Tax Breaks May Hit Muni Bond ETFs

Tue, 14 Feb 2012 13:02:12 -0500

Exchange traded funds that invest in municipal bonds have been steady so far this week following the Obama administration’s proposals to limit tax breaks on muni bonds for wealthy investors. In the proposed 2013 budget, the administration is seeking to limit tax breaks some individuals can receive...

Muni Bond ETFs on a Roll as Yields Hit Record Lows

Fri, 27 Jan 2012 08:11:12 -0500

Municipal bond exchange traded funds are spiking as rates drop to record lows, prompting worries this corner of the fixed-income market is getting ahead of itself. “The municipal bond market has been on a seven-week march to all-time low rates (yields),” says James Colby, an ETF...

Dividend Stock ETF, Asset Allocation Portfolios For The Coming Decade

Thu, 12 Jan 2012 09:48:50 -0500

By MyPlanIQ:

As world wide deleveraging process is in full swing, investors are facing a big dilemma for their retirement investments including 401K investments, IRA investments or taxable investments. On one hand, companies with high growth perspective (such as small companies) are expected to slow down in their earnings growth. With current not too cheap stock market valuation, high growth stocks are losing their appeal in the coming decade. On the other hand, bonds are now offering meager yields. The two traditional portfolio growth assets will not only not do well, they will also subject investors to highly volatile portfolio capital swing.

Companies that pay steady dividends usually have solid cash flows and wide moats in their business. In equity investing, these high quality companies are the only place to be in the coming decade, as advocated by great investors Bill Gross, Jeremy Grantham and others.

We maintain an investment plan called

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Muni Bond ETFs Enjoy Big Rally

Tue, 10 Jan 2012 10:00:45 -0500

An exchange traded fund that invests in municipal bonds is on a five-day winning streak amid reports that supply is tight in this area of the fixed income market. The iShares S&P National AMT-Free Municipal Bond Fund (NYSEArca: MUB) has rallied nearly 3% over the past week. [Muni Bond ETF Rises...

Tax Efficiency Report Card

Tue, 10 Jan 2012 07:00:24 -0500

The year-end periods provides the ETF industry with a couple of opportunities to flex its collective muscle; performance comparisons generally tend to favor those products with lower expense ratios–a defining feature of exchange-traded funds. But early January also puts another benefit of exchange-traded products into focus: enhanced tax efficiency relative to traditional mutual funds. The nuances of the exchange-traded structure have the potential to bring additional tax efficiencies to investors thanks to the availability of an “in kind redemption” that ultimately gives investors more control over the timing of tax obligations. Mutual funds, on the other hand, have a nasty tendency to stick remaining shareholders with tax liabilities incurred as a result of redemptions by others–a development that can obviously be undesirable [see Tax Loss Harvesting With ETFs: 6 Ideas To Lower Client Liabilities]. ETFs won’t allow investors to skip out on their taxes, but this product structure can deliver [...]

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State Street Launches High Yield Muni Bond Fund (HYMB)

Thu, 14 Apr 2011 14:00:23 -0400

State Street, the issuer behind the two largest U.S.-listed ETFs, made a new addition to the fixed income portion of its product lineup this week. The recently-launched SPDR Nuveen S&P High Yield Municipal Bond ETF (HYMB) will seek to replicate the performance of the S&P Municipal High Yield Index, a benchmark that consists of bonds issued by U.S. states and territories, local governments or agencies, that are rated below investment grade. High Yield Muni Bond ETF In Focus The underlying index includes more than 21,000 individual issues, with the largest issues going to California (15%), New York (11%), and Florida (7.2%). A number of smaller states/territories also find their way into the top ten such as Puerto Rico, Tennessee, and Colorado. In terms of individual holdings, some extremely long-dated issues dominate the top of the list. Two of the underlying index’s biggest allocations go to Tobacco Settlement bonds that mature in [...]

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Why investors shouldn’t break with muni bonds

Fri, 14 Jan 2011 20:29:31 -0500

The perils of owning municipal bonds nowadays have been overstated, and many mutual funds and ETFs offer diversification of credit risk.

California pays more for notes, shifts debt plans

Thu, 18 Nov 2010 14:49:39 -0500

California paid a higher yield than previously expected to sell $10 billion in revenue anticipation notes on Thursday, completing its first of three big debt sales while the municipal bond market continues to be mired in a major selloff.

Wide World Of Muni Bond ETFs

Thu, 07 Oct 2010 07:00:52 -0400

As investors have become more comfortable with the idea of achieving fixed income exposure through the exchange-traded structure, bond ETF assets have skyrocketed and the number of funds has increased rapidly. For those in higher tax brackets, municipal bonds have always been a popular option, as the tax-exempt feature of the interest payment boosts the tax-equivalent yield realized. And many in these higher tax brackets have embraced ETFs as the most efficient means of achieving exposure: the S&P National AMT-Free Municipal Bond Fund (MUB) has more than $2 billion in assets. But while MUB is the most popular ETF offering exposure to the muni bond market, it’s hardly the only option available. Below, we profile more targeted muni bond ETF options covering various durations, credit qualities, and geographies [for more ETF insights, sign up for our free ETF newsletter]: High Yield Muni Bond ETF For investors looking to capture the potential tax [...]

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PIMCO Launches Active Short Term Muni Bond ETF (SMMU)

Tue, 02 Feb 2010 08:51:47 -0500

Tuesday marks the first day of trading for the PIMCO Short Term Municipal Bond Strategy Fund (SMMU), the third actively-managed ETF from the Newport Beach, California-based bond fund giant. The fund is designed for investors seeking tax-exempt income, and consists of a diversified portfolio of short duration, high credit quality bonds that carry interest income ...

PIMCO Launches Active Short Term Muni Bond ETF (SMMU)

Tue, 02 Feb 2010 08:51:47 -0500

Bond ETFs: Beware of a Bubble

Thu, 28 Jan 2010 16:00:46 -0500

Bond ETFs: Good Times Coming to an End?

Thu, 21 Jan 2010 17:00:26 -0500

How to Use Bond ETFs

Wed, 15 Apr 2009 16:00:58 -0400

The Benefits Of Muni Bond ETFs

Wed, 08 Apr 2009 17:40:25 -0400

Municipal bonds are proving to be a winning asset class in the past year, as yields are decent and related exchange traded funds (ETFs) gave well-rounded, low cost exposure. Retirees and income-oriented investors alike enjoyed gains averaging 4.6% in the six national, short and intermediate-term tax-free municipal bond ETFs on the market. ...

The Benefits of Muni Bond ETFs

Tue, 07 Apr 2009 18:00:48 -0400

Some Relief In ETFs As Bailout Plan Nears Approval

Thu, 02 Oct 2008 13:00:22 -0400

After a failure that rocked Wall Street and exchange traded funds (ETFs) earlier this week, the $700 billion bailout package seems closer to reality. The Senate approved the bill, and now it’s off to the House, report Julie Hirschfeld Davis and Charles Babington for the Associated Press. Leaders in the House are working quickly to convert [...]

News about

Using Municipal Bond ETFs To Avoid Tax Hikes

Related Posts:

Muni bonds may be money makers in 2013

Weathering Economic Headwinds: ETFs To Prepare Like Bill Gross

Related Posts:

PIMCO ETF Manager Bill Gross Buying Munis on Looming Taxes

Sector Watch: Municipal Bonds

Muni Bond ETFs and the Election

Muni Bond ETFs Stay the Course

Risks of Muni Bond ETFs

Muni Bond ETFs as Alternative to Treasuries

Muni Bond ETFs Rise on State Fiscal Outlook, Europe Woes

Forbes Low Cost All Star Lineup

Investment Management: Retirement Income ETFs Portfolios Review

Uncertainty Over Tax Breaks May Hit Muni Bond ETFs

Muni Bond ETFs on a Roll as Yields Hit Record Lows

Dividend Stock ETF, Asset Allocation Portfolios For The Coming Decade

Muni Bond ETFs Enjoy Big Rally

Tax Efficiency Report Card

Related Posts:

State Street Launches High Yield Muni Bond Fund (HYMB)

Related Posts:

Why investors shouldn’t break with muni bonds

California pays more for notes, shifts debt plans

Wide World Of Muni Bond ETFs

PIMCO Launches Active Short Term Muni Bond ETF (SMMU)

PIMCO Launches Active Short Term Muni Bond ETF (SMMU)

Bond ETFs: Beware of a Bubble

Bond ETFs: Good Times Coming to an End?

How to Use Bond ETFs

The Benefits Of Muni Bond ETFs

The Benefits of Muni Bond ETFs

Some Relief In ETFs As Bailout Plan Nears Approval