“In a more fragmented market, the sampling approach a manager uses to align with an index is extremely important,” Peyton Studebaker, managing director of Caprin Asset Management, told the WSJ.
For instance, Studebaker’s clients are invested in the Market Vectors Intermediate Municipal Index ETF (NYSEArca: ITM), which has a 0.24% expense ratio, a 7.16 year duration and a 2.14% 30-day SEC yield, or a 3.54% taxable equivalent 30-day SEC yield for those in the highest income bracket.
“Intermediate muni ETFs offer a more-reasonable risk/reward in today’s interest-rate environment,” Studebaker added.
For more information on the munis market, visit our municipal bonds category.
Max Chen contributed to this article.