1-Star ETFs Poised to Plunge: SPDR Nuveen Barclays Capital Short-Term Municipal Bond?
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, the SPDR Nuveen Barclays Capital Short-Term Municipal Bond ETF (NYS: SHM) has received the dreaded one-star ranking.
With that in mind, let's take a closer look at this SPDR muni ETF and see what CAPS investors are saying about the ETF right now.
SPDR Nuveen Barclays ST Muni ETFfacts
Inception | October 2007 |
Total Net Assets | $1.6 billion |
Investment Approach | Seeks to provide investment results that correspond generally to an index that tracks the short-term tax-exempt municipal bond market and provides income that is exempt from federal income taxes. |
Expense Ratio | 0.2% |
Dividend Yield | 1.3% |
Year-to-Date / 1-Year / 3-Year Returns | 1.4% / 1.9% / 2.6% |
Alternatives | iShares S&P National AMT-Free Municipal Bond Fund |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 93% of the 14 All-Star members who have rated the ETF believe it will underperform the S&P 500 going forward.
Earlier this month, one of those Fools, TerryHogan, succinctly summed up the bear case for our community:
Short term municipal bonds? Are you kidding me? While I don't see any kind of Meredith Whitney apocalypse in the near future, there are enough large defaults to be somewhat worried. The main reason I'd red thumb it that the only real appreciation is coming through yield, and it's lower than S&P. Easy call.
If you want market-thumping returns, you need to protect your portfolio from any undue risk. Luckily, our special report on ETFs highlights three funds that are poised to soar in the next recovery. It's 100% free, but won't last forever, so click here to access it now.
Want to see how well (or not so well) the stocks in this series are performing? Follow theTrackPoisedToCAPS account.
The article 1-Star ETFs Poised to Plunge: SPDR Nuveen Barclays Capital Short-Term Municipal Bond? originally appeared on Fool.com.
Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.
