iShares has filed with the Securities and Exchange Commission (SEC) for a line of exchange traded funds (ETF) that hold municipal bonds…but with a twist.

iShares’ proposed line of new funds will hold muni bonds, and the funds themselves would target certain maturity dates.

Each fund would hold the underlying securities from its respective index to full maturity, at which point the fund would simply retain a cash position, according to Index Universe staff. After the last holding of the fund hits maturity, which is on or around Aug. 31 of the year in the fund’s name, the assets would be distributed to shareholders.

The funds would track indexes in the recently launched S&P AMT-Free Municipal Bond Index Series, which track investment-grade muni bonds that mature between June 1 and Aug. 31 of a specific year. (Bond ETF hot spots).

These are the first ETFs that would have maturities fall within a specific date range. They act almost like muni bonds, in that they make tax-exempt distributions and return an entire investment on a specific date. (What you need to know about bond ETFs).

For more stories about bond ETFs, visit our bond ETF category.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.