The Market Vectors ETF, assuming it comes to market, would track the Barclays Plc’s Custom Puerto Rico Municipal Composite Index. In addition to Puerto Rico, American Samoa, Guam, the Northern Mariana Islands and the Virgin Islands could be represented in the ETF, though the bulk of the fund’s assets would be allocated to Puerto Rico, Bloomberg reported.
The PowerShares Insured New York Municipal Bond Portfolio (NYSEArca: PZT), which has a 30-day SEC yield of almost 4.1%, holds several Puerto Rican muni issues, including two among its top-10 holdings. The $792.7 million Market Vectors High-Yield Municipal Index ETF (NYSEArca: HYD) allocates a small percentage of its weight across several Puerto Rico muni issues as well.
Market Vectors High-Yield Municipal Index ETF
ETF Trends editorial team contributed to this post. Tom Lydon’s clients own shares of HYD.