The iShares Barclays 20+ Yr Treas.Bond (ETF) (NYSE: TLT) hit a new two-year closing high this week, as money continues to flow into low-yielding bond ETFs.
While the U.S. Treasury trade may be getting very long in the tooth, there is another area within fixed income that may be able to hold up better when interest rates start to increase. The municipal bond market offers lower yields than corporate bonds, but carries tax advantages that potentially appeal to those in high tax brackets.
Two municipal bond ETFs that cover the gamete of the asset class are detailed below.
Market Vectors High Yield
The ...
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