MUB - MUB: Aligns With The House View But We'd Rather Go Zero Credit Risk
2024-03-12 03:34:58 ET
Summary
- iShares National Muni Bond ETF tracks the muni bond market with big exposure to California and New York.
- The maturity walls in 2024 and 2025 may impact the economy and trigger the economic scenario that the Fed likely foresees to reduce rates.
- MUB will benefit on that front, but credit rating issues in California and New York are something that we'd prefer to avoid, as California could have problems one day.
The iShares National Muni Bond ETF ( MUB ) tracks the listed muni bond market, with substantial exposure to California and New York states in the US. The duration is quite long on this ETF at 6 years , so speculation on relatively short-term factors will matter. The ETF is super efficient with an expense ratio of 0.05%....
MUB: Aligns With The House View, But We'd Rather Go Zero Credit Risk