The Puerto Rico law “hit our market, but it was pretty isolated in terms of fund flows,” Mark Sommer, a manager at Fidelity Investments, said in the article. “The market has built up resilience over the last several years to the difficulties faced by some of these high-profile credits.”
Investment-grade-focused muni bond ETFs, like MUB and TFI do not have positions in Puerto Rico debt. However, high-yield muni bond ETFs may include exposure to the territory. For instance, the Market Vectors High Yield Municipal Index ETF (NYSEArca: HYD) has 4.3% in Puerto Rico and SPDR Nuveen S&P High Yield Municipal Bond ETF (NYSEArca: HYMB) has 5.2%. Year-to-date, HYD is up 9.4% and HYMB is up 11.8%. [Muni Nation: All Eyes on Puerto Rico]
iShares National AMT-Free Muni Bond ETF
For more information on the munis market, visit our municipal bonds category.
Max Chen contributed to this article.