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Author: loveoldcars Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 35468  
Subject: Re: Muni-Bond: Mutual Fund vs. Closed-End ETF ? Date: 7/6/2007 1:57 PM
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Hi Gromit,

1) Does a closed-end ETF have turnover of it's investments?

Yes, but being muni-bonds it's very little. If they can trade and increase value and/or payout they will. Also, sometimes a bond is called, or matures and has to be replaced.

Some bonds always trade at a premium; some always at a discount, and most trade above and below. Just because a CEF is trading above NAV doesn't mean it's a bad buy. Just because a CEF is trading below NAV doesn't make it a good buy.

One of my favorite Nat'l muni-CEF's is Nuveen's NXZ, currently yielding about 5.6%. It spends almost all its time at a premium; just as actual muni-bonds that pay an above avg. coupon(among other things), trade at a premium to par.

I'm a LTBH investor also, and find these muni-CEF's a nice diversification and income producer

any other questions; fire away, I'm learning too!!

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