Top 5 Highest Yielding Zacks #1 Ranked Municipal Bond Mutual Funds - Highest Yielding Zacks #1 Ranked Funds
April 18 2012 - 12:22PM
Zacks
Interest income exempt from federal income tax is among the many
distinct advantages that municipal bonds offer to investors. They
also show very little correlation with returns from equity
investments. Thus, they offer relatively high yields at lower
levels of risk and are considered second only to government
securities in terms of safety of capital invested. By holding a
well diversified portfolio of such securities, mutual funds
significantly lower the associated default risk.
Below we will share with you the 5 highest yielding Zacks #1 ranked
municipal bond mutual funds. Each has earned a Zacks #1 Rank
(Strong Buy) as we expect these mutual funds to outperform their
peers in the future. To view the Zacks Rank and past
performance of all municipal bond funds, investors can click here
to see the complete list of funds.
Mutual Fund
|
Sec 30 Day Yield
|
Lord Abbett High Yield Municipal Bond A
|
6.12%
|
Oppenheimer AMT-Free Municipals A
|
5.91%
|
Nuveen High Yield Municipal Bond A
|
5.91%
|
Invesco Van Kampen High Yield Municipal A
|
5.68%
|
Invesco High Income Municipal A
|
5.12%
|
Lord Abbett High Yield Municipal Bond A (HYMAX) seeks
high current income free from federal income taxes. The fund
invests a large share of its assets in municipal bonds, the
interest form which is not subject to federal income tax. The
municipal bond mutual fund returned 13.7% in the last one year
period.
The municipal bond mutual fund has a minimum initial investment
of $1,000 and an expense ratio of 0.82% compared to a category
average of 1.02%.
Oppenheimer AMT-Free Municipals A (OPTAX) primarily
invests in municipal securities exempt from federal individual
income tax. At least 25% of its assets are used to purchase
securities below investment grade. The municipal bond mutual fund
returned 24.67% in the last one year period.
The Fund Manager is Daniel G. Loughran and he has managed this
municipal bond mutual fund since 2002.
Nuveen High Yield Municipal Bond A (NHMAX) seeks high
current income free from federal income taxes. The fund invests the
majority of its assets in municipal bonds. At least 65% of its
assets are invested in bonds rated investment grade or lower. The
municipal bond mutual fund returned 21.99% in the last one year
period.
As of February 2012, this municipal bond mutual fund held 1528
issues, with 1.25% of its total assets invested in Tennessee Engy
Acquisition C Jr R 5.625%.
Invesco Van Kampen High Yield Municipal A (ACTHX) invests
a large proportion of its assets in municipal securities. The fund
focuses on acquiring instruments of medium and low quality. The
municipal bond mutual fund returned 17.22% in the last one year
period.
The municipal bond mutual fund has a minimum initial investment
of $1,000 and an expense ratio of 0.76% compared to a category
average of 1.02%.
Invesco High Income Municipal A (AHMAX) seeks total
return. The fund invests in a diversified portfolio of municipal
securities. The majority of the fund's assets are invested in
municipal bond securities that are rated BBB/Baa or lower by
Standard & Poor's Ratings Services or other nationally renowned
rating firms. The municipal bond mutual fund returned 16.5% in the
last one year period.
The Fund Manager is Franklin Ruben and he has managed this
municipal bond mutual fund since 1998.
To view the Zacks Rank and past performance of all municipal bond
funds, investors can click here to see the complete list of
funds.
About Zacks Mutual Fund Rank
By applying the Zacks Rank to mutual funds, investors can find
funds that not only outpaced the market in the past but are also
expected to outperform going forward. Learn more about the Zacks
Mutual Fund Rank at http://www.zacks.com/funds.
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