The research firm has an overweight rating on HYMB. The ETF, which has almost $410 million in assets under management, has a 30-day SEC yield of 3.88% and an annual expense ratio of 0.45%. Supply risk could present headwinds for muni ETFs in 2015.
Supply is set to pick up in 2015 as municipal bond sales rise and the amount of redemptions and maturing debt dip. States and local governments are expected to sell $8.6 billion in bonds over the next 30 days, compared to $6.4 billion planned sales for the coming month a week ago. Meanwhile, municipalities have stated that there will be $12.1 billion in redemptions. [Muni ETFs Face Supply Risk]
The $1.5 billion HYD has a 30-day SEC yield of 4.32% and charges 0.35% per year. On a combined basis, HYD and HYMB have added over $96 million in new assets since the start of 2015.
Market Vectors High Yield Municipal Index ETF