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These Are The Top Muni Pennsylvania Funds

If you are planning to invest in Pennsylvania municipal debt, then investing via Muni Pennsylvania funds is a better option. Muni Pennsylvania funds invest in a portfolio of municipal debt...

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This story originally appeared on ValueWalk

If you are planning to invest in Pennsylvania municipal debt, then investing via Muni Pennsylvania funds is a better option. Muni Pennsylvania funds invest in a portfolio of municipal debt of varying durations. These funds are more appealing to the residents of Pennsylvania as the income from these securities are usually free from federal and Pennsylvania state taxes. Let’s take a look at the top ten Muni Pennsylvania funds.

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Top Muni Pennsylvania Funds

We have used the past one-year return numbers (from money.usnews.com) to rank the top Muni Pennsylvania funds. These are the top ten Muni Pennsylvania funds:

  1. Vanguard PA Long-Term Tax-Exempt Fund (VPAIX, 4.41%)

Vanguard Pennsylvania Long-Term Tax-Exempt Fund (MUTF:VPAIX) usually invests in high-quality municipal bonds from Pennsylvania state and local governments, regional governmental and public financing authorities. It has total assets of more than $4.50 billion, and has returned almost 2% in the last six months and over 6% in the last three years. VPAIX’s top three holdings are: COMMONWEALTH FING AUTH PA TOB MASTER SETTLEMENT PMT REV, ALLEGHENY CNTY PA HIGHER ED BLDG AUTH UNIV REV and LEHIGH CNTY PA GEN PURP HOSP REV.

  1. Western Asset Pennsylvania Municipals Fd (SBPAX, 4.45%)

Western Asset Pennsylvania Municipals Fund (MUTF:SBPAX) invests a minimum of 80% of its assets in "Pennsylvania municipal securities." It has total assets of more than $164 million, and has returned almost 2% in the last six months and over 4% in the last three years. SBPAX’s top three holdings are: WESTMORELAND CNTY PA MUN AUTH MUN SVC REV 0%, MONTGOMERY CNTY PA INDL DEV AUTH HEALTH FACS REV 5% and DELAWARE CNTY PA REGL WTR QUALITY CTL AUTH SWR REV 5%.

  1. Putnam Pennsylvania Tax Exempt Income Fd (PTEPX, 4.61%)

Putnam Pennsylvania Tax Exempt Income Fund (MUTF:PTEPX) generally invests in investment-grade quality bonds with intermediate- to long-term maturities. It has total assets of more than $156 million, and has returned over 2% in the last six months and over 5% in the last three years. PTEPX’s top three holdings are: 5 Year Treasury Note Future Sept 21, PENNSYLVANIA ST TPK COMMN TPK REV 5% and WHITING IND ENVIRONMENTAL FACS REV 5%.

  1. Nuveen PA Municipal Bond Fund (FPNTX, 4.66%)

Nuveen Pennsylvania Municipal Bond Fund (MUTF:FPNTX) may also invest up to 20% of its net assets in below investment grade municipal bonds. It has total assets of more than $566 million, and has returned 2% in the last six months and over 5% in the last three years. FPNTX’s top three holdings are: ALLEGHENY CNTY PA HOSP DEV AUTH REV 4%, Energy HBR Corp and COMMONWEALTH FING AUTH PA TOB MASTER SETTLEMENT PMT REV 4%.

  1. BNY Mellon Pennsylvania Fund (PTPAX, 4.69%)

BNY Mellon Pennsylvania Fund (MUTF:PTPAX) invests a minimum of 70% of its assets in investment grade or the unrated equivalent. It has total assets of more than $120 million, and has returned almost 2% in the last six months and almost 5% in the last three years. PTPAX’s top three holdings are: MONTGOMERY CNTY PA INDL DEV AUTH RETIREMENT CMNTY REV 5%, PENNSYLVANIA ST TPK COMMN OIL FRANCHISE TAX REV 5% and PENNSYLVANIA ST TPK COMMN TPK REV 5%.

  1. AB Municipal Income II Pennsylvania Port (APAAX, 5.15%)

AB Municipal Income Fund II Pennsylvania Portfolio (MUTF:APAAX) normally invests in municipal securities whose interest is exempt from federal income tax, but may be subject to the federal alternative minimum tax for certain taxpayers. It has total assets of more than $68 million, and has returned more than 2% in the last six months and almost 5% in the last three years. APAAX’s top two holdings are: COMMONWEALTH FING AUTH PA TOB MASTER SETTLEMENT PMT REV 5% and PHILADELPHIA PA 5.25%.

  1. MFS Pennsylvania Municipal Bond Fund (MFPAX, 5.42%)

MFS Pennsylvania Municipal Bond Fund (MUTF:MFPAX) usually invests in investment grade quality debt instruments, but may also put money in below investment grade quality debt securities. It has total assets of more than $200 million, and has returned more than 2% in the last six months and over 5% in the last three years. MFPAX’s top three holdings are: PHILADELPHIA PA ARPT REV 0.05%, PENNSYLVANIA ST TPK COMMN TPK REV 4% and PITTSBURGH PA WTR & SWR AUTH WTR & SWR SYS REV 4%.

  1. BlackRock PA Municipal Bond Fund (MAPYX, 5.68%)

BlackRock Pennsylvania Municipal Bond Fund (MUTF:MAPYX) invests mainly in a portfolio of long-term investment grade Pennsylvania municipal bonds. It has total assets of more than $611 million, and has returned more than 2% in the last six months and over 4% in the last three years. MAPYX’s top three holdings are: BlackRock Liquidity MuniCash Instl, PENNSYLVANIA ECONOMIC DEV FING AUTH SOLID WASTE DISP REV 0.43% and PENNSYLVANIA ECONOMIC DEV FING AUTH REV 5%.

  1. Invesco Pennsylvania Muncpl (OPATX, 6.61%)

Invesco Pennsylvania Municipal Fund (MUTF:OPATX) invests in Pennsylvania municipal securities, as well as in derivatives and other instruments with similar economic characteristics. It has total assets of more than $910 million, and has returned more than 2% in the last six months and over 7% in the last three years. OPATX’s top two holdings are: CHILDRENS TR FD P R TOB SETTLEMENT REV 0% and PHILADELPHIA PA ARPT REV 5%.

  1. Delaware Tax-Free PA Fund (DELIX, 7.44%)

Delaware Tax-Free Pennsylvania Fund (MUTF:DELIX) invests in securities whose income is exempt from federal income tax, federal alternative minimum tax and Pennsylvania’s personal income taxes. It has total assets of more than $470 million, and has returned more than 3% in the last six months and over 5% in the last three years. DELIX’s top two holdings are: PENNSYLVANIA ECONOMIC DEV FING AUTH SOLID WASTE DISP REV 5.38% and PHILADELPHIA PA ARPT REV 5%.