Jun. 26, 2025 9:10 PM ETInvesco Municipal Trust (VKQ)VKQTim Worstall5.02K Followers(12min)SummaryInvesco 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.Ultimately, I don't recommend VKQ: the use of return of capital and high fees make it unattractive for my investment approach.Mohamad Faizal Bin RamliSo, what's this tool for?Tools are made to do things. Using the tool for the purpose it was made for makes a certain sense.The same is true of financial instruments. They're designed to doThis article was written byTim Worstall5.02K FollowersTim Worstall is a wholesaler of rare earth metals and one of the global experts in the metal scandium. He is also a Fellow at the Adam Smith Inst in London and an writer for a number of media outlets, including The Times (London), Telegraph, The Register and even, very occasionally indeed, for the WSJ. This account is linked with that of Mohamad Machine-Chian: https://seekingalpha.com/user/52914142/commentsAnalyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Comments