PowerShares Capital Management continues to revolutionize the exchange traded fund (ETF) market by launching the first ever family of municipal bond ETFs. It announced Tuesday that the first of these ETFs should begin trading in October. PowerShares will also be adding to the relatively small list of fixed-income ETFs. They are:
- PowerShares Insured Municipal Bond ETF – This ETF is based on an upcoming Merrill Lynch U.S. Insured Core Municipal Securities Index that will adjust monthly. The index will track AAA insured tax-exempt long-term debt. It excludes single- and multi-family housing bonds, tobacco bonds and all securities subject to AMT (Alternative Minimum Tax).
- PowerShares National Municipal Bond Portfolio – This ETF is based on an upcoming Merrill Lynch U.S. Core Municipal Securities Index that will also adjust monthly. The index will track investment grade tax-exempt long-term debt. It excludes the same components as the Merrill Lynch U.S. Insured Core Municipal Securities Index.
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