RVNU is the only U.S.-listed ETF that tracks long-term, investment-grade U.S. tax-exempt munis with dedicated revenue streams. The underlying index is intended to track federal tax-exempt municipal bonds that have been issued with the intention of funding, state and local infrastructure projects such as water and sewer systems, public power systems, toll roads, bridges, tunnels, and many other public use projects. The index will attempt to only hold those bonds issued by state and local municipalities where the interest and principal repayments are generated from dedicated revenue sources.
These revenue issuers typically carry less risk as compared to general obligation issuers. The debt issues come with dedicated revenue streams or essential purpose bonds that will receive steady payments in any economic environment. For instance, people will still pay electric and water bills no matter what.
For more information on the munis market, visit our municipal bonds category.