Municipal Bond ETF Model Portfolio 4th Quarter Rebalance

Rebalance for 4th Quarter 2018

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Data as of 9/21/2018

Sources: VanEck www.vaneck.com, iShares by BlackRock www.ishares.com, and The Vanguard Group www.vanguard.com. Table is provided for illustrative purposes only. Past performance is not a guarantee of future results. TEY = Taxable Equivalent Yield calculated at an assumed 37% tax rate.

Rebalancing objective: Generate incremental yield over market “beta” while maintaining duration risk exposure

  • Keep overall duration at or about 5.5 years while generating above market yields
  • Anticipate more steepening of the curve on the long end
  • Take advantage of incremental yields of short term high yield municipal bonds
  • Stay as liquid as possible using larger ETFs and that have options available on the ETF where possible
  • Stay efficient by keeping management fees as low as possible

Notes:

  • Taxable Equivalent Yield = Tax Exempt Yield / (1 – Federal Tax Rate)
  • 2018 tax brackets, however not all tax brackets are represented herein
  • End of day yields are used

Analyst Disclosure:

  • JR Rieger and or the Rieger Report LLC has not received compensation either directly or indirectly from the sponsor(s) of the ETF(s) included in this report.
  • At the time of this writing, JR Rieger does not own the ETF(s) cited in this report.
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