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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.

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