1-Star ETFs Poised to Plunge: iShares S&P New York AMT-Free Municipal Bond?

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, the iShares S&P New York AMT-Free Municipal Bond Fund (NYSE: NYF ) has received the dreaded one-star ranking.

With that in mind, let's take a closer look at NYF and see what CAPS investors are saying about the ETN right now.

NYF facts

Inception	October 2007
Total Net Assets	$117.3 million
Investment Approach	Seeks investment results that correspond generally to the price and yield performance of the S&P New York AMT-Free Municipal Bond Index. The underlying index measures the performance of the investment grade segment of the New York municipal bond market.
Expense Ratio	0.25%
1-Year / 3-Year / 5-Year Annual Returns	8.5% / 5.2% / 5.8%
Dividend Yield	3.1%
Alternatives	PowerShares Insured New York Muni Bond SPDR Nuveen Barclays Capital New York Muni Bond

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 57% of the 47 members who have rated NYF believe the ETF will underperform the S&P 500 going forward.

Just this past summer, one of those Fools, All-Star TerryHogan, succinctly summed up the NYF bear case for our community: "When interest rates go up, which they have to eventually, this guy will go down. In the meantime, if the S&P can return more than [3% per year] this should be an easy [underperform pick]."

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.

Jeff Fischer and team have demystified options. And they can rack up income like $1,030... $2,626... and $3,228 on a schedule you can set your watch by!
That's why we're glad to announce every single one of their closely guarded strategies is available to YOU during May and June – 100% FREE, no strings attached! Just enter your email address in the box below...

Fool contributor Brian D. Pacampara has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. 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 Motley Fool has a disclosure policy.

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 icon found on every comment.