The Intermediate Municipal Opportunities ETF will invest in municipal securities with a maturity of three to 10 years and may include debt of any rating, including those below investment grade and defaulted securities. The fund won’t focus on any single state and will not invest more than 15% of assets of a single state.
The Municipal Bond ETF is not much different from FLMI, but it will invest in muni securities with a longer maturity of five to 15 years and only hold securities rated in one of the top four ratings categories.
“The two ETFs are generally differentiated by the dollar-weighted average portfolio maturity levels they target and the credit ratings of municipal securities they may purchase,” according to a note.
For more information on new fund products, visit our new ETFs category.