HYD: High Yield Munis Present A Clear Contrarian Play (Rating Upgrade)
HYD offers exposure to high-yield, long-term, tax-exempt U.S. municipal bonds, appealing to income-focused investors seeking tax advantages. The fund aims to track the overall performance of the high-yield muni bond market, providing diversified access to this asset class. Current market pricing and yield levels present a contrarian entry point for investors comfortable with elevated credit risk.
HYD: This High-Yield ETF Is A Strong Buy
VanEck High Yield Muni ETF offers attractive, tax-free income, strong yield, liquidity, and broad diversification, making it compelling for taxable portfolios. HYD's current 4.67% SEC yield translates to a much higher tax-equivalent yield, especially for high earners, with lower default risk than high-yield corporates. Potential Fed rate cuts could boost HYD's price, offering both income and capital gains; the current price is below historical highs, adding upside potential.
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HYD: Munis Have Momentum And Tailwinds To Keep It Going (Rating Upgrade)
Munis often rise in the months following Fed rate cuts, suggesting there is still time to get in on this play. The fund's California exposure bothers me less given how strong equity returns have been. This means personal income tax revenues in the state will rise next year. High yield munis default less than comparable corporates, supporting positions in this fund.
HYD: Great Tax Equivalent Yield
VanEck High Yield Muni ETF offers high-yield, tax-free income by focusing on municipal bonds, making it attractive for investors in higher tax brackets. The HYD ETF's diversified portfolio includes 1,475 holdings and a 30-day SEC yield of 4.2%, with a taxable equivalent yield of 6.73% for top tax brackets. The fund's broad sector and geographic allocation, with a significant portion in California, adds stability but also focuses risk on specific states.
Some Green Shoots for Muni Bonds
With the help of a brief flight-to-safety trade and hopes that the Federal Reserve will soon cut interest rates, perhaps by more than expected, bonds have gotten a lift. And muni bonds are participating in that upside.
HYD: Strong Muni Bond ETF, Tax-Advantaged 4.3% Yield
VanEck High Yield Muni ETF is a simple muni bond index ETF. It offers investors a tax-advantaged 4.3% yield. Said yield is higher than average for a muni bond ETF. After-tax yields seem higher than average, too, depending on the specific tax rate.
Beacon Pointe Advisors LLC Reduces Stock Position in VanEck High Yield Muni ETF (BATS:HYD)
Beacon Pointe Advisors LLC cut its holdings in VanEck High Yield Muni ETF (BATS:HYD – Free Report) by 14.3% in the 4th quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 42,410 shares of the company’s stock after selling 7,086 shares during the period. Beacon Pointe Advisors LLC owned 0.07% of VanEck High Yield Muni ETF worth $2,190,000 as of its most recent SEC filing. A number of other hedge funds have also bought and sold shares of the business. Bank of New York Mellon Corp purchased a new stake in shares of VanEck High Yield Muni ETF in the third quarter worth about $19,017,000. Millington Financial Advisors LLC lifted its stake in VanEck High Yield Muni ETF by 13.8% in the 3rd quarter. Millington Financial Advisors LLC now owns 6,196 shares of the company’s stock worth $304,000 after purchasing an additional 749 shares in the last quarter. Orcam Financial Group grew its position in shares of VanEck High Yield Muni ETF by 6.0% during the 3rd quarter. Orcam Financial Group now owns 23,649 shares of the company’s stock valued at $1,160,000 after purchasing an additional 1,332 shares in the last quarter. Private Advisor Group LLC grew its position in shares of VanEck High Yield Muni ETF by 56.7% during the 3rd quarter. Private Advisor Group LLC now owns 11,005 shares of the company’s stock valued at $540,000 after purchasing an additional 3,982 shares in the last quarter. Finally, SageView Advisory Group LLC purchased a new stake in shares of VanEck High Yield Muni ETF in the third quarter worth $254,000. VanEck High Yield Muni ETF Trading Down 0.3 % HYD opened at $51.80 on Monday. The company has a 50 day moving average price of $51.68 and a two-hundred day moving average price of $51.21. VanEck High Yield Muni ETF Cuts Dividend The firm also recently declared a dividend, which was paid on Friday, April 5th. Shareholders of record on Tuesday, April 2nd were given a dividend of $0.1942 per share. The ex-dividend date was Monday, April 1st. VanEck High Yield Muni ETF Company Profile (Free Report) The VanEck High Yield Muni ETF (HYD) is an exchange-traded fund that mostly invests in high yield fixed income. The fund tracks a market value-weighted index of high-yield, tax-exempt US municipal bonds. HYD was launched on Feb 4, 2009 and is managed by VanEck.
