RVNU’s index is intended to track federal tax-exempt municipal bonds that have been issued with the intention of funding federal, state and local infrastructure projects such as water and sewer systems, public power systems, toll roads, bridges, tunnels, and many other public use projects. The index will attempt to only hold those bonds issued by state and local municipalities where the interest and principal repayments are generated from dedicated revenue sources. [Muni Credit Risk Remains Muted]

By tracking the index, the fund will focus its investments on infrastructure revenue bond holdings that generally have less fluctuation of income, sales and property tax revenue as well as generally less exposure to underfunded pensions and other post-employment benefit obligations.

For more information on munis, visit our municipal bonds category.

Financial advisors who are interested in learning more about U.S. municipal infrastructure revenue bonds can register for the Tuesday, August 18 webcast here.