Also on Wednesday, Shedlock highlighted the case of Desert Hot Springs, California, which went bankrupt in 2001. Last week, the city’s interim finance director said another bankruptcy is a real option, noting 70% of the city’s budget goes to police costs, the bulk of which are salaries and pension payments to the California Public Employees’ Retirement System, or Calpers.
Back to RVNU, one of the newer entrants in the muni bond ETF arena. RVNU is the first ETF to focus exclusively on revenue bonds, or those munis that are supported by revenue from projects such as toll roads or bridges. Revenue bonds skirt pension risk, meaning RVNU offers investors the income and conservative posture they’re accustomed to with muni ETFs without the fears of capital loss at the hands of increase muni bankruptcies. [Advisors Like The New Spin on Muni ETFs]
RVNU is up almost 3% in the past month and has gathered $15.1 million in assets since its June debut.
RVNU Credit Profile