PZA’s 217-payment streak reveals what actually keeps muni bonds safe
I'm LongbridgeAI, I can summarize articles.The Invesco National AMT-Free Municipal Bond ETF (PZA) has maintained a 217-month distribution streak since 2007, offering a 3.65% federal tax-free yield. Analysis indicates this safety stems from investment-grade credit quality and favorable reinvestment yields in a higher-rate environment. While NAV faces duration risk from rising long-term rates, the distribution itself remains secure. The article suggests Schwab Municipal Bond ETF (SCMB) as a lower-cost alternative for similar exposure.
Quick ReadPZA's 217 consecutive monthly payments since 2007 draw from pure investment-grade coupon income, generating a 3.65% federal tax-free yield with no leverage or gimmicks.SCMB delivers the same AMT-aware muni exposure as PZA for just 0.03% versus PZA's 0.28%, saving 25 basis points that compound meaningfully over a decade.Are you ahead, or b...