The shorter duration Market Vectors Short High-Yield Municipal Index ETF (NYSEArca: SHYD) was unchanged Monday even with a 4.5% weight Puerto Rican munis. Some actively managed mutual funds have significantly larger Puerto Rico exposure than ETF rivals.
“Oppenheimer Rochester Fund Municipals (RMUNX), an actively managed mutual fund has 77% of its assets in NY state bonds, but most of the rest of the assets is in Puerto Rico bonds. Similarly Oppenheimer Rochester New Jersey Municipal Fund (ONJAX) has 29% of assets in bonds issued by Puerto Rico, despite what some New Jersey residents might expect,” according to S&P Capital IQ.
SPDR Nuveen S&P High Yield Municipal Bond ETF
Tom Lydon’s clients own shares of HYD.