Top 5 Highest Yielding Zacks #1 Ranked Municipal Bond Mutual Funds - Highest Yielding Zacks #1 Ranked Funds
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 |
Oppenheimer AMT-Free Municipals A |
6.68% |
MFS Municipal High-Income A |
6.61% |
Invesco Van Kampen High Yield Municipal A |
5.68% |
Eaton Vance High-Yield Municipal Income A |
5.39% |
BlackRock High Yield Municipal A |
5.27% |
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 16.4% 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 11.22% in the
last one year period.
The Fund Manager is Gary A. Lasman and he has managed this
municipal bond mutual fund since 2006.
Invesco Van Kampen High Yield Municipal A (ACTHX) seeks
current income exempt from federal taxes. The fund 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 11.3% in the last one year period.
As of September 2011, this municipal bond mutual fund held 1214
issues, with 0.74% of its total assets invested in New Jersey Econ
Dev Auth 6.25%.
Eaton Vance High-Yield Municipal Income A (ETHYX) invests
heavily in debt securities issued by the states of the US, the
District of Columbia and related government agencies and exempt
from federal income tax. The municipal bond mutual fund returned
11.64% in the last one year period.
The municipal bond mutual fund has a minimum initial investment
of $1,000 and an expense ratio of 0.99% compared to a category
average of 1.02%.
BlackRock High Yield Municipal A (MDYHX) seeks high
income exempt from federal income taxes. The fund invests primarily
in municipal bonds. At least 65$ of its assets are utilized to
purchase bonds of medium to low quality. The municipal bond mutual
fund returned 11.83% in the last one year period.
The Fund Manager is Theodore Jaeckel Jr. 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