What's Going on With Municipal-Bond Funds?
High-yield muni funds are leading the pack. Here are some of our favorites.
Elizabeth Foos
Beth Foos is an associate director for Morningstar Research Services LLC, a wholly owned subsidiary of Morningstar, Inc. She covers fixed income, focusing primarily on municipal-bond strategies. Before joining the manager research team in 2014, she was a municipal credit analyst.
Foos has more than 10 years of experience in public finance. Before joining Morningstar in 2011, she was an analyst for Moody’s Investors Service and a consultant to local governments for the Michigan Municipal League. Foos has also held various roles in marketing and public relations for Time Inc. and Teach for America.
Foos holds a bachelor’s degree in political science and a master’s degree in public policy from the University of Michigan.
Latest
Munis in the Year of COVID
A recap of 2020’s roller-coaster ride in the muni markets and questions about what comes next.
A Wild Ride Through Muniland
Usually a relatively stable part of the market, munis have seen an uptick in volatility in the past several months.
Are Municipal-Bonds Always a Safe Haven?
This market hasn't been immune to trouble stemming from the coronavirus-related volatility.
Muni Funds See Record Inflows in 2019
Investors' appetite for municipal bonds soared last year, helping push already low muni yields even lower.
AMT Muni Funds Are Worth a Look
Tax law changes could create new opportunities for muni investors.
2 Winning Muni Funds
MFS Municipal Income MFIAX and T. Rowe Price Tax-Free Income have a lot to offer.
Powerhouse Manager Will Be Missed at Wells Fargo Muni Bond
The change promoted a downgrade from the fund's Morningstar Analyst Rating of Silver to Bronze.
3 Superior Managers on Today's Muni Bond Market
Three of the industry's finest discuss where they're finding value and what risks to consider.
A Bronze-Rated Muni Fund With a Solid Team
More than a decade of comanagement and a sizable team make Wells Fargo Intermediate Tax/AMT-Free Fund an option to chew on.
Effective Risk-Taking at This Intermediate-Term Bond Fund
The Bronze-rated Hartford Total Return Bond should reward patient investors who are comfortable with its risks.
Muni Bond Fortunes Could Improve
Rising rates, tax changes, and outflows have hurt the muni market this year, but signs point to a solid end to the year.
Calculated Bets Pay Off for This Muni Fund
Silver-rated MFS Municipal Income Fund is willing to bet on lower quality bonds, if the price is right.
Patience Needed for This Interest-Rate-Sensitive Bond Fund
Silver-rated Vanguard Long-Term Investment-Grade's significant interest-rate sensitivity means the fund can lag its peers as rates rise.
An Excellent Core Choice for Muni Investors
Despite some personnel changes, Fidelity Municipal Income earns a Gold rating.
Interest Rates, Tax Changes, and the Muni-Bond Market
Morningstar's Beth Foos discusses today's municipal-bond landscape and the rise of passive muni funds.
Tax Reform Shakes Up the Muni Market Landscape
The debate over tax changes sparked a record amount of muni market activity at the end of 2017 and the impact of the final bill will be felt for months ahead.
Decreased Supply Could Bode Well for Munis
Elements of the tax changes could dampen some demand, but overall the market isn't predicting disaster for municipal bonds.
3 Muni Bond Funds to Ease Interest-Rate Jitters
Our analysts think these holdings are resilient in the face of rising interest rates.
Bond Fund Picks for a Rising Interest-Rate Environment
Our analysts offer these three picks as the Fed is set to raise interest rates.
Straightforward Approach Pays Off for This Muni Fund
Gold-rated T. Rowe Summit Muni Intermediate focuses on in-depth, bottom-up research.
A Mixed Quarter for the Municipal Market
A few distressed credits struggled in the third quarter, but yield-hungry investors kept their appetite for medium- and lower-quality munis.
Indexing Comes to Muni-Ville
Passive investing in the municipal market is gaining steam.
A Silver-Rated Vanguard Fund for Long-Term Bond Investors
Vanguard Long-Term Investment-Grade Fund has performed well, but it is one of the most interest-rate-sensitive taxable bond funds.
Muni Market Rebound in First Half
High-yield munis have performed best this year, but tax and healthcare reform could impact the market going forward.
Munis Keep Raking in Cash, Posting Respectable Gains
Despite concerns about Puerto Rico and higher rates, municipal-bond funds have continued their run in 2016.
Will a Manager Change Derail This Vanguard Bond Fund?
With a solid long-term record and low fees, Vanguard Long-Term Investment-Grade earns a Morningstar Analyst Rating of Silver.
Topnotch Muni Bond Fund Loses Veteran Manager
Muni manager Jamie Pagliocco is stepping down from Fidelity Municipal Income, but we don't expect changes as a result, says Morningstar's Beth Foos.
The Struggle Continues in Puerto Rico
Nearly a year after Puerto Rico Governor Alejandro Garcia Padilla declared that the commonwealth couldn't pay its debt, little has been resolved to give its residents or its investors any solace.
A Solid Choice for Broad Exposure to the U.S. Muni Market
This fund is the largest and most-liquid municipal-bond ETF.
Vanguard Tackles the Pitfalls of Muni Indexing
The mutual fund giant takes a passive approach to the diverse and fragmented muni-bond market -- and takes on iShares, to boot.
This Medalist Muni Fund Takes a Measured Approach
A long-tenured team and an improving expense profile burnish the appeal of Bronze-rated BlackRock National Municipal Fund.
6 Elite Muni Funds
Morningstar's Beth Foos shares some of our top picks for tax-sensitive investors seeking short-term, longer-term, or high-yield muni funds.
Slow-and-Steady Wins the Race for This Muni Fund
Although Gold-rated T. Rowe Price Tax-Free High Yield doesn't top its category in any one year, its long-term returns best nearly all peers by avoiding the muni market's riskiest pockets.
Vanguard's New Venture: Indexing Muni Bonds
Stable market conditions and client demand signal the right time for the firm to launch the first tax-exempt index open-end mutual fund.
A Look at Fidelity’s Tax-Exempt Lineup
Fidelity’s municipal-bond funds are worthy of note.
This Muni Fund Stands Tall Among Its Peers
Silver-rated MFS Municipal Income has been a top performer in its category over the long term and has a competitive price tag to boot.
A Cautious Muni Fund for a Rocky Market
Gold-rated Fidelity Tax-Free Bond steers clear of leverage and volatile parts of the market, offering downside protection when the market heads south.
Added Credit Risk Has Paid Off for This Muni Fund
Bronze-rated USAA Tax Exempt Intermediate-Term's fondness for midquality issues can lead to underperformance in down markets, but the fund has excelled over the long term.
A Steady, Low-Cost Muni Fund
Silver-rated Vanguard Intermediate-Term Tax-Exempt Fund boasts solid long-term returns, thanks in part to its straightforward approach and low costs.
Puerto Rico Back in the Hot Seat
Investors should expect continued volatility.
This Income-Oriented Muni Fund Shines When Rates Are Low
Focusing on longer-maturity bonds, Silver-rated Franklin Federal Intermediate-Term Tax-Free Income could experience heightened volatility when interest rates tick up.
How Non-Traditional Bond Managers Are Navigating
Three non-traditional bond managers discuss the evolution of their strategies, main inputs into their portfolio construction, and how they expect to navigate the changing market environment ahead.
A Muni Fund That Doesn't Shy Away From Risk
Though it can be bumpy at times, Silver-rated Wells Fargo Advantage Municipal Bond has successfully invested in mid- and lower-quality tiers of the market over the long term.
This Muni Fund Keeps a Lid on Volatility
Bronze-rated Wells Fargo Advantage Ultra Short-Term Municipal Income has delivered solid long-term returns with low volatility, but it can lag more rate-sensitive peers.
Munis: A New Flexible Mandate
Breaking the mold.
Will Muni Funds Continue Their Run?
After a strong 2014, we're keeping an eye on interest rates and issuance, which could both creep higher and sting in 2015. Plus, two muni-fund picks worth a look today.
Munis Mount a Comeback
After struggling dearly in 2013's challenging environment, muni funds have turned in solid performance as interest rates, defaults, and new issuance remain low, and credit quality has improved.
Municipal Outlook: An Appetite for Risk Amid Low Supply
At a price, investors are still willing to take on municipal credit risk--even from some of the highest-profile and most fiscally distressed issuers.
Our Outlook for the Municipal Markets
Relevant questions (and answers) for investors as they continue their research into bankruptcy and pension issues.