Grab a Slice of PZA in These Uncertain Times


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PowerShares Insured National Municipal Bond Portfolio Fund ( PZA ) -- This exchange-traded fund ( ETF ), which seeks to return the price and yield performance of Merrill Lynch National Insured Long-Term Core Municipal Securities Index, has been very stable since October 2009, trading between $23 and $24 a share. 

PZA Chart  

Chart Legend

PZA is a place to house money tax-free in times of uncertainty, and with a federal tax-free yield of 4.75%, it has drawn investors' attention.

But it is not risk-free, and in a time of sharply increasing interest rates the price could fall. 

Thus, if purchased, an investor might consider placing a stop-loss order at just under the 200-day moving average, now at $22.75.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing Investing Ideas
Referenced Stocks: ETF , PZA

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