Is there an indicator or ETF to estimate what the price of a Muni Bond Fund will be at end of closing day?

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andysnp
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Is there an indicator or ETF to estimate what the price of a Muni Bond Fund will be at end of closing day?

Post by andysnp » Thu Mar 26, 2020 8:14 am

If I have VFIAX (Vanguard's S and P 500 Fund), I can simply follow VOO (ETF equivalent of VFIAX) to estimate the price of VFIAX at the end of closing day.

Is there a way to do the same thing with a Muni Bond Fund?

I have VMATX, Vanguard's MA Muni Bond Fund. How can I estimate what the price will be at the end of the day? Is there an similar Bond ETF to look at to help determine what the price will be?

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grabiner
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Re: Is there an indicator or ETF to estimate what the price of a Muni Bond Fund will be at end of closing day?

Post by grabiner » Thu Mar 26, 2020 10:22 am

There are muni ETFs which you can track. You can go to ETF.com to select a muni ETF which is close in strategy to your muni fund and which trades in high volumes, or just use MUB to track the general muni market.

However, because of illiquidity in the muni market, muni ETFs have not been tracking funds well in the last few weeks. If a muni hasn't traded recently, a muni mutual fund must estimate its value, and its estimate might disagree with the estimates made by ETF traders.
Wiki David Grabiner

Topic Author
andysnp
Posts: 25
Joined: Mon Aug 20, 2018 5:53 pm

Re: Is there an indicator or ETF to estimate what the price of a Muni Bond Fund will be at end of closing day?

Post by andysnp » Thu Mar 26, 2020 11:06 am

Wow Grabiner, that is so helpful!!

Yes it looks like MUB is pretty good at getting a general idea of how the fund will perform at the end of the day.

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