VanEck Launches Two New Municipal Bond ETFs

vaneck-logoVanEck just unveiled two new municipal bond-focused ETFs today, both of which offer exposure to intermediate-term muni bonds.

The VanEck Vectors AMT-Free 12-17 Year Intermediate Municipal Index ETF (BATS:ITML) and VanEck Vectors AMT-Free 6-8 Year Intermediate Municipal Index ETF (BATS:ITMS) give investors the “potential to gain incremental returns as investments move from longer maturities to shorter maturities, also known as rolling down the yield curve.”

From the press release:

“Historically, the intermediate portion of the curve has been a “sweet spot” in munis, having offered one of the greatest potential to gain incremental returns as investments move from longer maturities to shorter maturities, also known as rolling down the yield curve. ITM, and now ITML and ITMS, provide targeted ways for investors to potentially capture that opportunity in highly refined ways,” said James Colby, Portfolio Manager with VanEck.

ITML seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the Bloomberg Barclays AMT-Free 12-17 Year Intermediate Continuous Municipal Index, while ITMS seeks the same with the Bloomberg Barclays AMT-Free 6-8 Year Intermediate Continuous Municipal Index. Income is generally exempt from federal taxes and the Alternative Minimum Tax (AMT). Each of the new funds has an expense ratio of 0.24 percent.

We’ll be sure to provide more info on these two new funds once they get a bit of trading history under their belts. Until then, you can check out our ratings, news, and data on 32 other Municipal Bond ETFs.

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