Please be open to feedback and constructive criticism from others, and consider their suggestions and advice when making decisions or forming opinions.
- Manlobbi
Investment Strategies / Mechanical Investing
No. of Recommendations: 1
doing some deep dives into asset allocation tools.
given decent interest rate environment, there seems to be solid support that a very broad range of variables support 5-10% of total taxable investments go into muni (even if you are in a tax-free state).
with that in mind, my big ask is looking for anyone with experience in a muni fund\etf that is :
* active
* low expense
* <4yr mean\median
* manager generally holds to maturity
so far, have only run across 1 publicly traded that might fit the bill.
also interested in any benefits beyond a lower institutional level expense ratio.
No. of Recommendations: 2
MEAR?
All bond funds are active.
Given the meager yields, I don't know why you would opt for munis instead of short T bill ETFs that are exempt from state taxes. Competitive tax savings in < 38% Fed tax bracket and vastly safer.
No. of Recommendations: 1
w/out going into the allocation justification...
being overweight MM past ~3 yrs is now spitting out too much taxable cash at marginal fed (not 15% div !) rates.
state rates are piddly add-on for me, and also looking for family member w/no state inc tax.
funds that mandate sticking to muni index\agg PROFILES (duration,quality,etc..) are not 'active', regardless of what they choose as benchmark (usually the same as profile).
No. of Recommendations: 2
NUVEEN has a number of Bond and Taxfree ETF's you might want to look at.
NEA TaxFree, monthly div, yield 7.55%, NUVEEN AMT FREE QLTY MUN INCME COM
NVG TaxFree, monthly div, yield 7.56%, NUVEEN AMT FREE MUN CR INC FD COM
NMZ TaxFree, monthly div, yield 7.24%, NUVEEN MUN HIGH INCOME OPPORTU COM
Full disclosure, I own all 3.
Russ
No. of Recommendations: 2
NEA TaxFree, monthly div, yield 7.55%, NUVEEN AMT FREE QLTY MUN INCME COM
NVG TaxFree, monthly div, yield 7.56%, NUVEEN AMT FREE MUN CR INC FD COM
NMZ TaxFree, monthly div, yield 7.24%, NUVEEN MUN HIGH INCOME OPPORTU COM
A few caveats.
These are CEFs, not ETFs. You may or may not be able to sell your shares when you want to.
They are leveraged. More upside, more downside.
I could not find the expense ratio information on the Nuveen website. I suspect they are 1 to 2%.
The 7% yield almost certainly includes a return of capital component. I can give you a 10% yield for 10 years without any effort by just taking $100 from you and paying you $10 per year.
Credit quality is mostly junk - at least some of the bonds are going to default.
No. of Recommendations: 3
From Nuveen's 19a report regarding NEA (a 19a report is an SEC-required report on the amount of a distribution that's unrelated to investment income. Often (usually?) that's a return of capital) (
https://documents.nuveen.com/Documents/Nuveen/Defa... ):
Return of capital for its fiscal year ending 31 Oct, ROC was nearly 22% of the year's total distribution, and it's 7% YTD (31 May).
Expense ratio was 2.33% (
https://www.nuveen.com/en-us/closed-end-funds/nea-... and select "Annual expense ratio" at the first menu bar below the Fund Description.
Regulatory Leverage was above 38% and Effective Leverage was nearly 40.5%. I'm unclear on the difference, but that's more leverage than interests me.
I'm less concerned about the investment quality; with 1100+ holdings, the risk of any particular investment, or any (small) collection of them, is well enough spread across the fund that the fund seems reasonably unlikely to go bust.
NVG and NMZ are similar.
Eric Hines
No. of Recommendations: 1
is anyone aware of what break vanguard gets on outsized nuveen fees?
vwsux is a $15b fund that has NUVEEN INSD TAX-FREE ADVANTAGE MUN as its own top holding, and nuveen is 3 out its of top 6.
