Muni Bond Funds (Closed End) - High Yield, Tax-Free Diversification

Muni Bond Funds provide investors with an opportunity to achieve high yields that are not subject to federal taxes. Additionally, in buying through a closed end fund these investments are able to diversify risk even buy at a discount to Net Asset Value.

There are several muni bond funds offered that are broken out by state, region, type of municipality and all sorts of other classifications. Some key factors to consider are what the rating of the underlying securities are, whether the closed end fund trades at a discount or premium to NAV (see more on Closed End Funds below), and whether the municipalities are concentrated in an area that is viewed to be at high risk of multiple defaults. For instance, California, Illinois, Nevada, New Jersey and some other states hit hard by the housing crisis are viewed by many as being at a high risk of defaulting on debt obligations.

What muni bond funds (CEFs) offer is typically broader diversification in both the municipalities involved, as well as the duration of the bonds, all delivered free of federal taxes. Often times, muni bond closed end funds will yield north of 5%, while similar duration Treasury yields have moved much lower. With the tax picture somewhat clouded, if high income individuals continue to see their tax rates increase, that makes muni bonds even more attractive, which would like drive up the share prices of CEFs holding munis.

Many muni bond funds rely on low cost leverage to boost their returns as well. While this can lead to more volatility on the way down should massive defaults start to occur, it juices returns when things are steady.

Here's a broad muni bond fund list:

AKP Alliance CA Municipal Income AYN Alliance NY Municipal Income AFB AllianceBernstein Nat Muni Inc XAA American Municipal Income APX BlackRock Apex Municipal RAA BlackRock CA Inv Quality Muni BJZ BlackRock CA Muni 2018 Term BFZ BlackRock CA Municipal Income BFO BlackRock FL Municipal 2020 BAF BlackRock Ins Muni Inc Inv Tr BYM BlackRock Ins Muni Inc Trust BMT BlackRock Insured Muni Term RFA BlackRock Inv Quality Muni Inc BKN BlackRock Invst. Quality Muni BTA BlackRock Long-Term Muni Adv BZM BlackRock MD Muni Bond BPK BlackRock Muni 2018 Term Trust MUI BlackRock Muni Inter Duration MNE BlackRock Muni NY Intermed. Du MUA BlackRock MuniAssets Fund BKK BlackRock Municipal 2020 BBK BlackRock Municipal Bond BIE BlackRock Municipal Bond Inv BFK BlackRock Municipal Income BLE BlackRock Municipal Income II BBF BlackRock Municipal Income Inv MEN BlackRock MuniEnhanced MUC BlackRock MuniHoldings CA Insu MHD BlackRock MuniHoldings Fund MUH BlackRock MuniHoldings Fund II MUE BlackRock MuniHoldings Ins II MFL BlackRock Muniholdings Ins Inv MUS BlackRock MuniHoldings Insured MUJ BlackRock MuniHoldings NJ Insu MHN BlackRock MuniHoldings NY Insu MVF BlackRock MuniVest MVT BlackRock MuniVest Fund II MYD BlackRock MuniYield MZA BlackRock MuniYield Arizona MYC BlackRock MuniYield CA MCA BlackRock MuniYield CA Insured MFT BlackRock MuniYield Ins Invest MYI BlackRock MuniYield Insured MYF BlackRock MuniYield Inv Fund MYM BlackRock MuniYield MI Ins II MIY BlackRock MuniYield MI Insured MYJ BlackRock MuniYield NJ MJI BlackRock MuniYield NJ Insured MYN BlackRock MuniYield NY Insured MPA BlackRock MuniYield PA Insured MQY BlackRock MuniYield Quality MQT BlackRock MuniYield Quality II BLJ BlackRock NJ Municipal Bond BNJ BlackRock NJ Municipal Income BSE BlackRock NY Ins Muni Inc RNY BlackRock NY Inv Quality Muni BLH BlackRock NY Muni 2018 Term BQH BlackRock NY Municipal Bond BFY BlackRock NY Municipal Inc II BNY BlackRock NY Municipal Income BPS BlackRock PA Strategic Muni BSD BlackRock Strategic Muni BHV BlackRock VA Municipal Bond VAZ Delaware AZ Municipal Income VCF Delaware Invest CO Muni Income VFL Delaware Invest National Muni VMM Delaware MN Muni Income II DMF Dreyfus Municipal Income DSM Dreyfus Strategic Muni Bond LEO Dreyfus Strategic Municipals KTF DWS Municipal Income KSM DWS Strategic Muni Income EIA EV CA Muni Bond II EVM EV CA Municipal Bond CEV EV CA Municipal Income MAB EV MA Municipal Bond MMV EV MA Municipal Income MIW EV MI Municipal Bond EMI EV MI Municipal Income EIM EV Municipal Bond EIV EV Municipal Bond II EVN EV Municipal Income EOT EV National Muni Opps Trust EMJ EV NJ Municipal Bond EVJ EV NJ Municipal Income NYH EV NY Muni Bond II ENX EV NY Municipal Bond EVY EV NY Municipal Income EIO EV OH Municipal Bond EVO EV OH Municipal Income EIP EV PA Municipal Bond EVP EV PA Municipal Income FPT Federated Premier Inter Muni FMN Federated Premier Muni Income IIC Invesco CA Insured Muni Income IQC Invesco CA Quality Muni Sec IMS Invesco Ins Muni Securities ICS Invesco Insured CA Muni Secu IIM Invesco Insured Muni Income IMC Invesco Insured Municipal Bond IMT Invesco Insured Municipal Trus OIB Invesco Muni Income Opp II OIC Invesco Muni Income Opp III OIA Invesco Muni Income Opps Trust PIA Invesco Muni Premium Income IQN Invesco NY Quality Muni Sec IQI Invesco Quality Muni Income IQT Invesco Quality Muni Invest IQM Invesco Quality Municipal Secs VKI Invesco VK Adv Muni Inc II VCV Invesco VK CA Value Muni VMV Invesco VK MA Value Muni Inc VGM Invesco VK Muni Invst. Grade T VMO Invesco VK Muni Opps. Trust VKQ Invesco VK Municipal Trust VOQ Invesco VK OH Quality Muni VPV Invesco VK PA Value Muni VKL Invesco VK Select Sector Muni VIM Invesco VK Trust Insured Muni MZF Managed Dur Inv Grade Muni CCA MFS California Insured Muni CXE MFS High Income Municipal CMU MFS High Yield Municipal Trust CXH MFS Investment Grade Muni MFM MFS Municipal Income MXN Minnesota Muni Inc II MXA Minnesota Muni Income Port NBW Neuberger Berman CA Inter Muni NBH Neuberger Berman Inter Muni NBO Neuberger Berman NY Inter Muni NFZ Nuveen AZ Div Adv Muni NKR Nuveen AZ Div Adv Muni 2 NXE Nuveen AZ Div Adv Muni 3 NAZ Nuveen AZ Premium Income Muni NZH Nuveen CA Div Adv Muni 3 NQC Nuveen CA Inv Quality Muni NCO Nuveen CA Muni Markets Opps. NCA Nuveen CA Muni Value NCB Nuveen CA Municipal Value 2 NCU Nuveen CA Premium Income Muni NUC Nuveen CA Quality Income Muni NVC Nuveen CA Select Quality Muni NFC Nuveen CT Div Adv Muni Fund NGK Nuveen CT Div Adv Muni Fund 2 NGO Nuveen CT Div Adv Muni Fund 3 NTC Nuveen CT Premium Income Muni NEV Nuveen Enhanced Muni Value NZX Nuveen GA Div Adv Muni Fund NKG Nuveen GA Div Adv Muni Fund 2 NPG Nuveen GA Premium Income Muni NKL Nuveen Ins CA Div Adv Muni NVG Nuveen Ins Div Adv Muni NKO Nuveen Ins NY Dvd Adv Muni NIO Nuveen Insured MuniOpportunity NQI Nuveen Insured Quality Muni NQM Nuveen Investment Quality Muni NMB Nuveen MA Div Adv Muni Fund NMT Nuveen MA Premium Income Muni NFM Nuveen MD Div Adv Muni Fund NZR Nuveen MD Div Adv Muni Fund 2 NWI Nuveen MD Div Adv Muni Fund 3 NMY Nuveen MD Premium Income Muni NZW Nuveen MI Div Adv Muni Fund NMP Nuveen MI Premium Income Muni NUM Nuveen MI Quality Income Muni NMZ Nuveen Muni High Inc Opp NMD Nuveen Muni High Inc Opp 2 NMO Nuveen Muni Mkt Opportunities NMA Nuveen Municipal Advantage NMI Nuveen Municipal Income NUV Nuveen Municipal Value NUW Nuveen Municipal Value Fund 2 NRB Nuveen NC Div Adv Muni Fund NNO Nuveen NC Div Adv Muni Fund 2 NII Nuveen NC Div Adv Muni Fund 3 NNC Nuveen NC Premium Income Muni NUJ Nuveen NJ Div Adv Muni 2 NXJ Nuveen NJ Div Advantage Muni NQJ Nuveen NJ Invstmt Quality Muni NJV Nuveen NJ Municipal Value Fund NNJ Nuveen NJ Premium Income Muni NAN Nuveen NY Div Adv Muni Fund NXK Nuveen NY Div Adv Muni Fund 2 NQN Nuveen NY Invstmt Quality Muni NNY Nuveen NY Municipal Value NYV Nuveen NY Municipal Value 2 NNP Nuveen NY PerformancePlus Muni NVN Nuveen NY Select Quality Muni NXI Nuveen OH Div Adv Muni NBJ Nuveen OH Div Adv Muni 2 NVJ Nuveen OH Div Adv Muni 3 NUO Nuveen OH Quality Income Muni NXM Nuveen PA Div Adv Muni Fund NVY Nuveen PA Div Adv Muni Fund 2 NQP Nuveen PA Invstmt Quality Muni NPN Nuveen PA Municipal Value Fund NPY Nuveen PA Premium Income Muni2 NPP Nuveen Performance Plus Muni NIF Nuveen Premier Ins Muni Inc NPF Nuveen Premier Muni Income NPI Nuveen Premium Income Muni NPM Nuveen Premium Income Muni 2 NPT Nuveen Premium Income Muni 4 NQU Nuveen Quality Income Muni NIM Nuveen Select Maturities Muni NQS Nuveen Select Quality Muni NTX Nuveen TX Quality Income Muni NGB Nuveen VA Div Adv Muni Fund NNB Nuveen VA Dvd Adv Muni 2 NPV Nuveen VA Premium Income Muni PCQ PIMCO CA Municipal Income PCK PIMCO CA Municipal Income II PZC PIMCO CA Municipal Income III PMF PIMCO Municipal Income PML PIMCO Municipal Income II PMX PIMCO Municipal Income III PNF PIMCO NY Municipal Income PNI PIMCO NY Municipal Income II PYN PIMCO NY Municipal Income III MAV Pioneer Muni High Inc Adv MHI Pioneer Municipal High Income PMM Putnam Managed Muni Income PMO Putnam Municipal Opportunities MMU Western Asset Managed Muni MTT Western Asset Muni Defined Opp MHF Western Asset Muni High Income MNP Western Asset Municipal Part

High Yield Closed End Funds

High Yield ETFs

Municipal Bonds

Return from Muni Bond Funds to High Yield Income