A spate of municipal defaults have left some market participants skittish, but investors can consider a revenue-based municipal debt exchange traded fund to hedge potential risks in the muni bond market.

During a webcast on Tuesday Aug. 19 entitled What’s Next for Municipals?, Blair Ridley, Director and Portfolio Manager for Deutsche Asset & Wealth Management, Christina M. Wagner, President of EagleView Capital, and Sean Edkins, Director and ETF RVP for Deutsche Asset & Wealth Management, outline the impact of rising rates and tax-reform proposals that would impact municipal bonds, along with a muni investment option to mitigate default risks.

High-profile bankruptcy filings in Detroit, Michigan and Stockton, California, along with financial problems in Puerto Rico, have raised concerns in the munis space. Specifically, general-obligation bonds, which are backed by credit an the taxing ability of the issuing municipality, are under increased scrutiny as some cities fail to generate enough tax revenue to cover their debt.

Alternatively, investors can consider the db X-Trackers Municipal Infrastructure Revenue Bond Fund (NYSEArca: RVNU), the first ETF to focus exclusively on revenue bonds.