Virginia Muni Bond Funds Investment Overview

Investing in Virginia muni bond funds can be a smart move for those looking to diversify their portfolios and potentially earn tax-free income. These funds invest in municipal bonds issued by local governments and other public entities in Virginia.

One of the main benefits of Virginia muni bond funds is their ability to provide a relatively stable source of income. This is because municipal bonds are typically backed by the credit of the issuing entity, making them a lower-risk investment.

Virginia muni bond funds have historically offered competitive yields compared to other bond funds. For example, the average yield of a Virginia muni bond fund can range from 2% to 4% per year.

Investors should consider their individual financial goals and risk tolerance when deciding whether to invest in a Virginia muni bond fund.

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The Nuveen Virginia Municipal Bond Fund is a solid choice for investors looking for a low-risk investment. This fund has been around since March 27, 1986.

The fund is managed by Stephen Candido, who brings a wealth of experience to the table. He's been at the helm since, and has a proven track record of delivering steady returns.

The fund's shares are denoted as Class A, and are priced in USD. It's domiciled in the US, which means you can rest assured that it's subject to the same regulations and oversight as other US-based investments.

Here are some key details about the fund:

Virginia muni bond funds offer competitive yields, with some funds offering yields of 3-4% or more.

These funds invest in municipal bonds issued by Virginia local governments, which are generally considered to be low-risk investments.

The tax-exempt status of these bonds can provide significant tax benefits to investors, especially those in high tax brackets.

Investors should be aware that some Virginia muni bond funds may have higher minimum investment requirements, such as $1,000 or $5,000.

Overall, Virginia muni bond funds can be a solid choice for investors seeking stable returns and tax benefits.

The holdings of a fund or investment portfolio can be a complex and nuanced topic. The issuer of a bond or other security is the entity that issues the debt, and it's a crucial factor in understanding the creditworthiness of the investment.

In the example of a municipal bond, the issuer is often a state or local government entity, such as the State of California or the City of New York. These issuers are responsible for repaying the debt, and their creditworthiness can impact the investment's value.

Here's a breakdown of some of the issuers and their corresponding weights in the portfolio:

Each issuer has its own unique characteristics and creditworthiness, which can impact the investment's value. For example, the State of California has a higher weight in the portfolio, indicating a larger investment in California-based bonds.

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When analyzing exposure breakdowns, it's essential to consider various factors that can impact investment performance.

Geography plays a significant role in exposure breakdowns, and results can vary depending on the region or country.

The sector in which an investment is made can also greatly affect its performance.

Maturity is another crucial factor, as investments with different maturity dates can have varying levels of risk and potential returns.

Credit quality is also a key consideration, as it can significantly impact the likelihood of default or repayment.

Here's a breakdown of the different categories:

Investing in bonds can be a great way to diversify your portfolio and earn some returns, but it's essential to understand the different types of bonds and their performance. The bond sector breakdown is a crucial aspect of this.

Municipal bonds have a 100% weighting in this breakdown, indicating they are the primary type of bond being considered. Their return low is 44.39%, while their return high is 100.00%.

The weighting of derivative bonds is 0.00%, suggesting they are not a significant portion of this investment. Their return low is -3.69%, and their return high is 53.54%.

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Cash and equivalents have a 0.00% weighting, meaning they are not a part of this investment. However, their return low is 0.00%, and their return high is 44.41%.

Securitized bonds also have a 0.00% weighting, but their return low is 0.00%, and their return high is 5.93%.

Government bonds have a 0.00% weighting, but their return low is 0.00%, and their return high is 52.02%.

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When evaluating dividend yield, it's essential to consider the overall performance of the investment. Dividend yield is a percentage that represents the ratio of the annual dividend payment to the stock's current price.

FVATX has a dividend yield of 3.41%, which is a relatively stable figure compared to other investments. The Category Low and Category High dividend yields are 0.00% and 14.51%, respectively. This indicates that FVATX's dividend yield is above average.

The dividend yield of FVATX ranks 24.90% among its peers. This suggests that FVATX is a strong performer in terms of dividend yield.

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Lipper rankings are a great way to measure the performance of Virginia muni bond funds. They're based on total return, and each share class is ranked relative to its category.

A Percentile rank is a percentage value between one and 100 percent assigned to each fund. The top percentile (1) is designated as better performing, while the bottom percentile (100) is the worst performing.

To give you a better idea, here are some examples of Lipper rankings for Virginia muni bond funds:

Keep in mind that past performance is no guarantee of future results, so it's essential to consider other factors when evaluating Virginia muni bond funds.

Return Trailing Ranking is a way to measure a fund's performance over a specific period of time.

The ranking is based on the fund's return compared to its category, with the top percentile being the best performing and the bottom percentile being the worst.

You can see this in action in the Return Ranking - Trailing table, which shows the fund's return over various periods, including YTD, 1 Yr, 3 Yr, 5 Yr, and 10 Yr.

In the YTD period, the fund's return was -1.0%, which ranked 78.37% in its category.

Here are the rankings for the different periods:

These rankings can give you an idea of how a fund has performed relative to its peers over time.

The Net Income Ratio is a key performance metric that helps you understand how well your business is doing financially. It's calculated as a percentage of your net income compared to your total revenue.

FVATX, a company we'll be looking at, has a Net Income Ratio of 2.18%. This means that for every dollar they make, they're keeping 2.18 cents as net income.

In comparison, the Category Low is -0.53%, indicating that some companies in the same industry are actually losing money. On the other hand, the Category High is 5.33%, showing that some companies are doing significantly better than FVATX.

Here's a rough idea of where FVATX ranks in terms of Net Income Ratio: they're at 36.37% in the FVATX % Rank. This tells us how their performance stacks up against others in the industry.

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Morningstar ratings for Virginia muni bond funds may vary among share classes and are based on historical risk-adjusted total returns, which are not indicative of future results.

You can find Morningstar ratings for specific funds by checking their profile on the Morningstar website.

FVATX, a Virginia muni bond fund, has received ratings based on its historical performance. However, it's essential to remember that past performance is not a guarantee of future results.

Here's a summary of FVATX's return ranking over different periods:

*Annualized

FVATX has performed relatively well in certain periods, such as 2023, where it returned 6.8% and ranked 21.89% in its category. However, in other periods, like 2022, it returned -11.0% and ranked 74.54% in its category.

Fees and expenses are an essential consideration when investing in Virginia muni bond funds. The management fee for some funds may be as low as 0.05% of the fund's investment capital.

You'll also find that acquired fund fees and expenses are typically zero, while other expenses are also minimal. For example, in one fund, the expense ratio is a mere 0.05%.

Here's a breakdown of the fees you might encounter: Fee TypePercentageManagement Fee0.05%Expense Ratio0.05% Keep in mind that these figures are subject to change and may not reflect extraordinary expenses incurred by the fund over the past fiscal year.

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Fees and expenses can eat into your investment returns, so it's essential to understand what you're paying for. The management fee, for example, is a whopping 0.05% of your investment capital.

Some funds may have acquired fund fees and expenses, which can range from 0.00% to 0.05% of your investment capital. However, in the example I'm referring to, it's a flat 0.00%.

Other expenses can also add up, but in this particular fund, they're a mere 0.00%. The expense ratio, which is the total of all fees and expenses, is also a flat 0.05%.

Here's a breakdown of the fees and expenses:

Keep in mind that these figures are subject to change and may not reflect extraordinary expenses incurred by the fund. It's always a good idea to review the fund's prospectus for the most up-to-date information.

Sales fees can eat into your investment returns, so it's essential to understand what they are and how they work. Here's a breakdown of the sales fees you might encounter.

Front-load sales fees charge you a percentage of your investment's assets under management (AUM), which can range from 4.20% as seen in some funds. This means if you invest $10,000, you'll pay $420 in sales fees.

Deferred-load sales fees, on the other hand, don't charge a percentage of AUM, but instead, charge a lower percentage of the investment's value when you sell. However, in the provided data, we see that deferred-load sales fees are listed as N/A, indicating this type of fee is not applicable in this example.

Category returns for front-load sales fees can vary, with a low end of 0.50% and a high end of 4.75%. This means that if you invest in a fund with a front-load sales fee, you can expect returns in this range, but you'll need to factor in the sales fee.

Here's a comparison of front-load and deferred-load sales fees in terms of category returns:

Distribution information for Virginia Muni bond funds can be a bit complex, but let's break it down.

Record dates, ex-dates, and payable dates are important to note, as they indicate when distributions are made. These dates can be found in the fund's distribution schedule.

Distributions can be broken down into income, short-term capital gains, long-term capital gains, and return of capital. The total distribution amount will be a combination of these components.

The average earnings per share and average undistributed net investment income per share are estimates, using an average of the last three months for most funds. However, some funds like preferred securities, mortgage-backed securities, and floating rate funds use an average of the last six months.

Distributions are asset-weighted, meaning they're calculated based on the current market value of investments held in the portfolio. This includes bonds held in a tender option bond trust, even if the fund only owns a residual inverse floater.

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Here are some key distribution metrics for Virginia Muni bond funds:

Dividend yield is another important metric, currently at 3.4% for Virginia Muni bond funds. Distributions are made monthly, providing a regular income stream for investors.

The Taxable-Equivalent Yield for a Fund's share class with a negative SEC 30-Day Yield is not provided because it does not represent the yield that must be earned on a taxable investment in order to equal the yield of the Fund on an after-tax basis.

The SEC 30-Day Yield is computed under an SEC standardized formula and is based on the maximum offer price per share. Past performance does not guarantee future results.

Credit ratings are subject to change and are based on the highest rating given by one of the following national rating agencies: S&P, Moody's or Fitch.

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The Taxable-Equivalent Yield is a key metric in pricing, representing the yield that must be earned on a fully taxable investment to equal the yield of the Fund on an after-tax basis at a specified tax rate.

This yield is based on the Fund's Distribution Rate or SEC 30-Day Yield, and takes into account the combined federal and state (if applicable) income tax rate.

The SEC 30-Day Yield is computed under a standardized formula and is based on the maximum offer price per share.

Past performance does not guarantee future results, so it's essential to consider current pricing metrics when making investment decisions.

The Taxable-Equivalent Yield is not provided for share classes with a negative SEC 30-Day Yield, as it doesn't provide a meaningful comparison of the Fund's yield against a taxable investment at the assumed tax rate.

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Credit quality is a crucial aspect of pricing and credit, and it's essential to understand the different ratings and their implications.

AAA, AA, A, and BBB are investment grade ratings, which means they are considered stable and low-risk.

Credit ratings are subject to change, so it's vital to stay up-to-date on the latest developments.

Holdings designated Not Rated, or NR, are not rated by national rating agencies such as S&P, Moody's, or Fitch.

This can be due to various reasons, including the issuer's lack of credit history or the agency's inability to obtain sufficient information.