Several years ago, there was fear that many states would default on their bonds. That proved to be an overreaction. Default rates have been very low, with few surprises. Only those bonds with poor records continued to have poor records. Thus, tax-free bonds of a long-term nature are being gobbled up by savvy investors, and this fund holds only bonds of at least a 15-year maturity.
Technically the fund is in a low-risk bull market having held at its bullish support line for over 16 months. It recently broke a double-top indicating that it will likely continue to appreciate while at the same time produce higher-than-average rates of tax-free income.
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