The Market Vectors offering includes municipal bond CEFs that employ leveraged, unleveraged, high yield and high-yield leveraged municipal bond strategies, writes Reuben Sushman for Seeking Alpha.
Since XMPT is a type of fund-of-funds, the ETF has acquired fund fees and expenses. It’s net expense ratio is 1.65%, significantly higher than the average ETF offering. However, expenses are currently capped at 0.40% until September 1, 2015.
Sushman also points out that the ETF, which only has about $34.2 million in assets under management, has not attracted a lot of investor investor because of the ETF’s lack of diversification. Specifically, Nuveen funds make up eight of the top fifteen CEFs in XMPT’s holdings, or 53% of the ETF.
For more information on CEFs, visit our closed-end funds category.
Max Chen contributed to this article.