IndexIQ added two new funds to its fast-growing suite of fixed income ETF offerings on Wednesday: MacKay Shields Municipal Intermediate ETF (NYSE Arca: MMIT) and the IQ MacKay Shields Municipal Insured ETF (NYSE Arca: MMIN).
Both funds are actively managed by subadvisor MacKay Municipal Managers™ of MacKay Shields LLC, an award-winning investment team led by co-CIOs John Loffredo and Robert DiMella who collectively have over 50 years of investment experience and have managed municipal strategies together for over 20 years. They are supported by an experienced investment team that provides expertise across all facets of the municipal market.
Salvatore Bruno, Chief Investment Officer with IndexIQ, said these products allow them to bring the municipal bond expertise of MacKay Shields, a fellow New York Life Investment Management boutique, to investors through an innovative, cost-effective ETF chassis.
“We expect that these new products will allow more investors to gain the benefits of exposure to this complex, yet important, sector of the bond market,” Bruno said.
MMIT seeks current income exempt from federal income tax. The Fund seeks to achieve its objective by investing primarily in investment grade municipal bonds and will also seek to enhance total return potential through the subadvisor’s active management approach. MMIN seeks current income exempt from federal income tax.
MMIN principally invests in investment-grade municipal bonds covered by an insurance policy guaranteeing the payment of principal and interest, and will also seek to enhance total return potential through the subadvisor’s active management approach.