The new ETF uses a disciplined approach that incorporates a combination of quantitative analysis and fundamental research. In seeking attractive income, the active fund will focus on non-rated bonds, lower investment-grade bonds and speculative-grade or “high yield” municipal bonds, while offering daily liquidity and full transparency of underlying holdings.
The Municipal High Income ETF will seek to provide federally tax-exempt income and long-term capital appreciation by investing in municipal lease obligations, municipal general obligation bonds, municipal revenue bonds, municipal notes, municipal cash equivalents, private activity bonds ,and pre-refunded and escrowed to maturity bonds. The portfolio will hold at least 50% of municipal securities rated below investment grade or more commonly known as junk or high-yield debt, along with up to 10% of assets in distressed municipal securities. The fund expects the weighted average maturity to be less than or equal to 14 years.
For more information on new fund products, visit our new ETFs category.