Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



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 (NYSE: 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 ETF facts

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
PowerShares VRDO Tax-Free Weekly
Market Vectors Short Municipal Index ETF

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 the TrackPoisedTo CAPS account.

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.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2003515, ~/Articles/ArticleHandler.aspx, 10/27/2016 4:52:30 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 7 hours ago Sponsored by:
DOW 18,199.33 30.06 0.17%
S&P 500 2,139.43 -3.73 -0.17%
NASD 5,250.27 -33.13 -0.63%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes