Top 5 Highest Yielding Zacks #1 Ranked Municipal Bond Mutual Funds - Highest Yielding Zacks #1 Ranked Funds
March 15 2012 - 11:07AM
Zacks
Debt securities will always be the natural choice of the
risk-averse investor because this category of instruments provides
regular income flow at low levels of risk. Income from regular
dividends helps to ease the pain caused by plunging stock prices.
When considering safety of capital invested, municipal bond mutual
funds are second only to those investing in government securities.
In addition, the interest income earned form these securities are
exempt from federal taxes and in many cases from state taxes as
well.
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
|
Oppenheimer AMT-Free Municipals A
|
6.68%
|
MFS Municipal High-Income A
|
6.61%
|
Nuveen High Yield Municipal Bond A
|
5.91%
|
Invesco Van Kampen High Yield Municipal A
|
5.68%
|
Eaton Vance High-Yield Municipal Income A
|
5.39%
|
Oppenheimer AMT-Free Municipals
A (OPTAX) seeks high current income free from federal
income taxes. The fund 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 24.04% in the last one year
period.
The municipal bond mutual fund has a minimum initial
investment of $1,000 and an expense ratio of 0.74% compared to a
category average of 1.02%.
MFS Municipal High-Income A (MMHYX) invests the
majority of its assets in instruments not subject to federal income
tax. It may invest substantially all of its assets in debt
securities of low quality. The municipal bond mutual fund returned
16.66% in the last one year period.
The Fund Manager is Gary A. Lasman and he has managed this
municipal bond mutual fund since 2006.
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 20.27% in the last
one year period.
As of December 2011, this municipal bond mutual fund held 1492
issues, with 1.37% 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 16.56% 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%.
Eaton Vance High-Yield Municipal Income A
(ETHYX) seeks high current income free from federal income taxes.
The fund invests heavily in debt securities issued by the states of
the US, the District of Columbia and related government agencies.
The municipal bond mutual fund returned 18.42% in the last one year
period.
The Fund Manager is Gary A. Lasman and he has managed this
municipal bond mutual fund since 2006.
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.
To read this article on Zacks.com click here.
Zacks Investment Research