MUNI CEF

by
Leo Wealth
A portfolio of municipal closed-end funds that generates a federal tax-exempt yield for US investors.

Strategy Description

Though not an ETF portfolio, our Municipal Closed-End Fund portfolio offers similar exchange-traded and diversification benefits to investors.

Muni CEFs offer a yield advantage to Municipal ETFs because they a)utilize leverage, and b) can be purchased at a material discount to fair value.

We review the entire universe of Municipal Closed-End Funds to identify those with the best potential for performance, least credit risk, least duration and leverage, and highest yield.

This portfolio is materially less liquid than municipal ETFs and discounts to fair value can always get worse before getting better, thus creating more short-term volatility than directly-held municipal bonds or municipal ETFs. However, the compensation for the risk is materially higher yield.

For the long-term investor seeking to improve tax-exempt yield, this is a portfolio worth reviewing. 

Portfolio Performance

2020202120222023YTD
Portfolio (%)4.4310.41-25.353.890.36
Annualized ReturnStandard DeviationDividend Yield
Portfolio1.43%12.48%4.5%

Allocation Breakdown

Asset Class


Equity0
Fixed Income99.51%
Commodities0
Cash0.49%

Geo


America100%

Sector


Investment Grade66.14%
High Yield3.5%
Other30.36%

Top Holdings

Asset ClassWeight (%)
1. Invesco Trust for Investment Grade Municipals20.30%
2. BlackRock MuniVest Fund Inc20.00%
3. Nuveen AMT-Free Quality Municipal Income Fund20.00%
4. BlackRock Municipal Income Trust II19.63%
5. Western Asset Managed Municipals Fund Inc19.58%

Related Investments

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Expert and Personal Financial Guidance

We offer a personal, calculated plan for your finances. Get in touch to learn how we can help support your family’s future and build a richer life.

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