No. of Recommendations: 3
Only problem is the leverage in many of the funds.

If you see it as a problem, you can easily pick non-leveraged funds. E.g, to stay within Nuveen's family and California munis, NCA (yielding 5.04%) vs NKX (modestly leveraged and thus yielding 6.82%).

They had very similar behavior over the last 3 months, but if you look back a year, NCA -9%, NKX -17% -- that's where you see leverage vs lack thereof. You pays your money and you takes your chances...!-)

Me, buying NKX recently at `distressed` levels, I deliberately chose to go for their modest and prudent leverage. Somebody who's otherwise leveraged, or contrary to even modest leverage in principle, can easily choose non-leveraged funds like NCA. No prob: they're both bargains!-)
Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.