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A Standout High-Yield Muni Fund

Bronze-rated MainStay MacKay High Yield Muni rewards investors who have patience for short-term volatility.


Alaina Bompiedi: Over the last five years, assets in the Morningstar High Yield Muni category have grown by nearly 80%, with five newcomers entering the category in just the last year. Among this increasingly diverse peer group, Bronze-rated MainStay MacKay High Yield Muni stands out.

At a bird's eye level, this fund's broad characteristics look fairly average. Its SEC yield of 3.2% sits squarely in the middle of the category, while its 7 1/2-year duration is just on the longer end. And like many high-yield muni funds, it underweights general obligation bonds, preferring revenue bonds instead.

Alaina Bompiedi does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.