Both ETFs join a growing family of fixed income ETF offerings from IndexIQ, including three first-of-their-kind factor-based fixed income offerings: the IQ Enhanced Core Bond U.S. ETF (NYSE Arca: AGGE) and IQ Enhanced Core Plus Bond U.S. ETF (NYSE Arca: AGGP), which were launched in May of 2016, and the IQ S&P High Yield Low Volatility Bond ETF (HYLV), the first high yield low volatility fixed income ETF, which launched in February of 2017.
Related: 2017 End of Year Market, ETF Outlook
MacKay Municipal Managers Portfolio Manager David Dowden said a number of major changes have taken place in the municipal bond category in recent years, introducing new risks and inefficiencies.
“The benefits of active management in the municipal bond arena are clear when one looks at the dizzying array of credit types available, the substantial number of new issuances entering the market each year, and the dramatically different liquidity environment to be found in the space now,” Dowden said. “Much of the alpha to be generated in municipal bonds is based on market access and a strong understanding of supply and demand dynamics; all of which we strive to deliver to clients.”
For more information on new fund products, visit our new ETFs category.