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]."

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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.


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