The S&P Municipal Bond Puerto Rico Index has experienced a 26.41% bond performance uptick thus far this year, giving investors with an appetite for high yields food for thought when looking for fixed income opportunities in the municipal bond market.
In particular, ETFs with exposure to Puerto Rico bonds have been benefitting from the rise in the index, such as the VanEck Vectors Short High-Yield Muni ETF (NYSEArca: SHYD) and the VanEck Vectors High-Yield Municipal ETF (NYSEArca: HYD).
SHYD seeks to replicate the price and yield performance of the Bloomberg Barclays Municipal High Yield Short Duration Index. SHYD invests In securities that comprise the benchmark index, which is composed of publicly traded municipal bonds that cover the U.S. dollar denominated high yield short-term tax-exempt bond market.
HYD seeks to replicate the performance of the Bloomberg Barclays Municipal Custom High Yield Composite Index. Like SHYD, HYD normally invests in securities that comprise the benchmark index, which is comprised of publicly traded municipal bonds that cover the U.S. dollar denominated high yield long-term tax-exempt bond market.