The PowerShares ETF has an effective duration of 8.75 years, with an average maturity of 19.81 years. The ETF also has a heavy tilt toward California and Illinois issued debt.
BAB comes with a 4.01% 30-day SEC yield, but the bonds are not tax-exempt on the federal level.
Alternatively, investors can consider the SPDR Nuveen Barclays Build America Bond ETF (NYSEArca: BABS). However, BABS is smaller, more thinly traded and comes with a longer duration of 12.5 years. The ETF has a 3.91% 30-day SEC yield.
PIMCO recently announced that the actively managed Pimco Build America Bond ETF (NYSEArca: BABZ) will be liquidated on October 1. [PIMCO to Shutter Four ETFs, Add Three New Funds]
For more information on the munis market, visit our municipal bonds category.
Max Chen contributed to this article.