Top 5 High Yield Leveraged Tax Free Nuveen National Muni Municipal Bond Closed End Fund CEFs
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Nuveen Investments is known for its Closed End Funds (CEFs) offerings. Nuveen also offers other investment products such as Mutual Funds, Managed Accounts, and Commodity Exchanged Traded Products. If you use CEFConnect, also known as ETFConnect before, you should know Nuveen. Nuveen is the website provider for CEFConnect. I usually do my research from this CEFconnect and CEFA before I’m doing additional research through individual CEF website. This article will look into Top 5 high yield Leveraged Tax Free Nuveen National Municipal CEFs. I’ll also provide a table for comparison and details of the funds.
Investing in Muni Bond Fund is a good way for investment asset diversification. Most of the distribution or dividend is tax free. Investor doesn't have to pay any tax for most of the dividend. Though, there might be a small AMT tax portion. These funds are also known as tax exempt muni bond CEFs.
The list is sorted by looking at the highest yield first. Next, I’ll check the average credit quality of the fund. Finally, I'll look the fund market cap. The fund should have more than $100Million cap for better liquidity. Most of the fund have investment grade credit quality (i.e. BBB+ or higher). Note: Since this is a leveraged fund, the fund volatility maybe higher than non-leveraged funds or ETFs. The Top 5 High Yield Leveraged Tax Free Nuveen National Municipal CEFs are:
- Nuveen Muni Market Opportunities
- Nuveen Select Quality Municipal
- Nuveen Municipal Advantage
- Nuveen Dividend Advantage 3
- Nuveen Dividend Advantage 2
If you are interested in other muni CEFs, please check my previous article:
Muni Bond CEF Fund Info
No
| Ticker
| Fund Name
| Closing Price
| Effective Leverage
| Distribution Rate
| Market Cap
| Baseline Expense
| Avg Credit Quality
|
|---|---|---|---|---|---|---|---|---|
1
| NMO
| Nuveen Muni Mkt Opportunities
| $12.93
| 41.34%
| 7.56%
| $591M
| 1.24%
| AA-
|
2
| NQS
| Nuveen Select Quality Muni
| $13.88
| 41.03%
| 7.44%
| $474M
| 1.11%
| AA-
|
3
| NMA
| Nuveen Municipal Advantage
| $13.30
| 39.68%
| 7.44%
| $577M
| 1.21%
| AA-
|
4
| NZF
| Nuveen Dividend Advantage 3
| $13.51
| 38.02%
| 7.28%
| $546M
| 0.91%
| AA-
|
5
| NXZ
| Nuveen Dividend Advantage 2
| $13.21
| 37.21%
| 7.27%
| $389M
| 1.28%
| AA
|
6
| NPT
| Nuveen Premium Income Muni 4
| $11.91
| 39.26%
| 7.15%
| $515M
| 1.09%
| AA-
|
7
| NPI
| Nuveen Premium Income Muni
| $12.84
| 40.32%
| 7.15%
| $820M
| 1.05%
| AA
|
8
| NEV
| Nuveen Enhanced Muni Value
| $12.85
| 36.03%
| 7.10%
| $247M
| 0.11%
| A-
|
9
| NQU
| Nuveen Quality Income Muni
| $13.44
| 38.50%
| 7.05%
| $729M
| 1.08%
| AA
|
10
| NAD
| Nuveen Dividend Advantage
| $13.09
| 39.02%
| 6.97%
| $514M
| 1.11%
| AA-
|
Note: all info is updated as 12/09/2010. More funds performance can be found below.
1. Nuveen Muni Market Opportunities NMO
Nuveen Muni Market Opportunities seeks current income exempt from regular federal income tax. The secondary investment objective is the portfolio value enhancement. Total Common Assets is $590.451M. The Annual Expense Ratio is 1.31%. The fund manager is Thomas C. Spalding Jr. since 2003. The Top 5 municipal states are California, Illinois, Texas, Washington and Colorado. The fund average credit quality is AA-.
2. Nuveen Select Quality Municipal - NQS
Nuveen Select Quality Municipal is another fund sponsored by Nuveen Asset Management. Nuveen Select Quality Municipalobjective is to seekcurrent income exempt from regular federal income tax. The secondary investment objective is the portfolio value enhancement. Total Common Assets is $463.748M. The Annual Expense Ratio is 1.15%. The fund manager is Thomas C. Spalding Jr. since 2003. The Top 5 municipal states are Illinois, Texas, Colorado, California and Michigan. The fund average credit quality is AA-. The average bond duration in this fund is 11.67 years.
3. Nuveen Municipal Advantage – NMA
Nuveen Municipal Advantage seeks current income exempt from regular federal income tax. The secondary investment objective is the portfolio value enhancement. Total Common Assets is $590.517M. The Annual Expense Ratio is 1.31%. The fund manager is Thomas C. Spalding Jr. since 2003. The Top 5 municipal states are California, Illinois, Texas, Louisiana and Colorado. The fund average credit quality is AA-. The average bond duration in this fund is 10.08 years.
4. Nuveen Dividend Advantage 3 - NZF
Nuveen Dividend Advantage 3 is another fund sponsored by Nuveen Asset Management. Nuveen Dividend Advantage 3 fund’s objective is to provide current income exempt from regular federal income tax and to enhance portfolio value. Total Common Assets is $563.169M. The Annual Expense Ratio is 1.03%. The fund manager is Paul Brennan since 2006. The Top 5 municipal states are Texas, Illinois, Washington, California and Michigan. The fund average credit quality is AA-. The average bond duration in this fund is 6.71 years.
5. Nuveen Dividend Advantage 2 - NXZ
Similar to Nuveen Dividend Advantage 3, Nuveen Dividend Advantage 2 is another fund sponsored by Nuveen Asset Management. Nuveen Dividend Advantage 2 fund’s objective is to provide current income exempt from regular federal income tax and to enhance portfolio value. Total Common Assets is $410M. The Annual Expense Ratio is 1.73%. The fund manager is Thomas C. Spalding Jr since 2003. The Top 5 municipal states are Texas, Illinois, California, Michigan and Colorado. The fund average credit quality is AA-. The average bond duration in this fund is 7.20 years.
Where and how to buy these CEFs
You will need a brokerage to buy closed end funds (CEFs) such as:
- eOption – You can trade stock, CEF, ETF for $3.00 per trade.
- TradeKing – You can trade stock as well as CEF for $4.95 per trade. You can also trade mutual funds.
- Marsco – Investors and traders can trade stock, etf, cef for $3.95 per trade
- SogoTrade - You can trade stock, CEF, ETF for $3.00 per trade.
Disclosure: I have no affiliation with any of these funds. I also have no position in any of these funds. Please do your own research for additional details. Please trade and invest responsibly. Past Performance is No Guarantee of Future Results.
Muni CEF Performance - Updated Dec 9th, 2010
No
| Fund Name
| Ticker
| Closing Price
| NAV
| Premium / Discount
| Distribution Rate
| YTD Rtn on Price
|
|---|---|---|---|---|---|---|---|
1
| Nuveen Muni Mkt Opportunities
| NMO
| $12.93
| $13.00
| -0.54%
| 7.56%
| 3.25%
|
2
| Nuveen Select Quality Muni
| NQS
| $13.88
| $13.67
| 1.54%
| 7.44%
| 5.16%
|
3
| Nuveen Municipal Advantage
| NMA
| $13.30
| $13.70
| -2.92%
| 7.44%
| -0.64%
|
4
| Nuveen Dividend Advantage 3
| NZF
| $13.51
| $13.99
| -3.43%
| 7.28%
| 6.85%
|
5
| Nuveen Dividend Advantage 2
| NXZ
| $13.21
| $13.97
| -5.44%
| 7.27%
| -2.42%
|
6
| Nuveen Premium Income Muni 4
| NPT
| $11.91
| $12.33
| -3.41%
| 7.15%
| 4.09%
|
7
| Nuveen Premium Income Muni
| NPI
| $12.84
| $13.50
| -4.89%
| 7.15%
| 3.60%
|
8
| Nuveen Enhanced Muni Value
| NEV
| $12.85
| $13.51
| -4.89%
| 7.10%
| 3.24%
|
9
| Nuveen Quality Income Muni
| NQU
| $13.44
| $13.72
| -2.04%
| 7.05%
| 4.64%
|
10
| Nuveen Dividend Advantage
| NAD
| $13.09
| $13.69
| -4.38%
| 6.97%
| 2.90%
|
11
| Nuveen Investment Quality Muni
| NQM
| $13.53
| $14.07
| -3.84%
| 6.96%
| 7.72%
|
12
| Nuveen Performance Plus Muni
| NPP
| $13.72
| $14.23
| -3.58%
| 6.87%
| 3.45%
|
13
| Nuveen Premier Muni Income
| NPF
| $12.70
| $13.77
| -7.77%
| 6.85%
| 3.77%
|
14
| Nuveen Insured Quality Muni
| NQI
| $12.45
| $13.32
| -6.53%
| 6.84%
| -3.21%
|
15
| Nuveen Premium Income Muni 2
| NPM
| $13.07
| $14.04
| -6.91%
| 6.79%
| 3.85%
|
16
| Nuveen Premier Ins Muni Inc
| NIF
| $13.22
| $14.11
| -6.31%
| 6.72%
| 0.66%
|
17
| Nuveen Insured MuniOpportunity
| NIO
| $13.01
| $13.92
| -6.54%
| 6.64%
| 2.23%
|
18
| Nuveen Ins Premium Inc 2
| NPX
| $11.72
| $12.69
| -7.64%
| 6.35%
| 0.30%
|
19
| Nuveen Ins Div Adv Muni
| NVG
| $13.35
| $14.44
| -7.55%
| 6.29%
| -1.57%
|
20
| Nuveen Ins Tax Free Adv
| NEA
| $13.16
| $14.13
| -6.86%
| 6.20%
| -0.34%
|
21
| Nuveen Municipal Value Fund 2
| NUW
| $15.54
| $15.68
| -0.89%
| 5.79%
| 3.40%
|
22
| Nuveen Municipal Income
| NMI
| $9.95
| $10.34
| -3.77%
| 5.73%
| -4.63%
|
23
| Nuveen Select TaxFree Income
| NXP
| $13.60
| $13.82
| -1.59%
| 5.25%
| -3.80%
|
24
| Nuveen Municipal Value
| NUV
| $9.17
| $9.37
| -2.13%
| 5.10%
| -1.09%
|
25
| Nuveen Select TaxFree Income 2
| NXQ
| $13.07
| $13.14
| -0.53%
| 5.10%
| -1.58%
|
26
| Nuveen Select TaxFree Income 3
| NXR
| $13.14
| $13.74
| -4.37%
| 4.89%
| -6.42%
|
27
| Nuveen Select Maturities Muni
| NIM
| $9.86
| $10.15
| -2.86%
| 4.26%
| -1.19%
|
