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Posted by
Two Blokes Jun 27 -
Filed in
Stock
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5 views
Invesco Municipal Trust offers tax-free income via a leveraged municipal bond closed-end fund, but performance has lagged due to long-duration interest rate risk. A significant portion of VKQ's high yield is return of capital, not earned income, which I find misleading and potentially confusing for less sophisticated investors. The fund's 1.3% expense ratio is high for a bond fund, especially given its middling performance and reliance on over-distribution to close the NAV discount.
