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Muni Bond ETF (MUB) Hits New 52-Week High

Sanghamitra Saha

For investors seeking momentum, iShares National Muni Bond ETF MUB is probably on radar now. The fund just hit a 52-week high, which is up roughly 5.2% from its 52-week low price of $106.42/share.

But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea on where it might be headed:

MUB in Focus

The underlying S&P National AMT-Free Municipal Bond Index measures the performance of the investment-grade segment of the U.S. municipal bond market. The fund holds about 3,773 securities.

The Index includes municipal bonds from issuers that are primarily state or local governments or agencies such that the interest on the bond is exempt from U.S. federal income taxes. It charges 7 bps in fees (see all Municipal Bond ETFs here).

Why the Move?

Dovish Fed comments have kept long-term U.S. Treasury bond yields at subdued level this year. Also, renewed trade tensions brightened the appeal for safe assets like muni bond ETFs.

More Gains Ahead? Though the fund has a Zacks Rank #3 (Hold), the fund has a positive weighted alpha of 4.00 which hints at more gains. So, there is definitely still some promise for those who want to ride on this surging ETF a little longer.

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iShares National Muni Bond ETF (MUB): ETF Research Reports
 
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