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Municipal Bond ETFs

Expect More from Your Munis.

VanEck's municipal income ETFs offer investors the ability to exercise control over their portfolio yield, duration, and credit exposure at different points in the interest rate cycle.

Target Exposures | Tax-Exempt Income | Low Cost

The indices underlying each ETF target specific maturity ranges or credit exposures, resulting in distinct performance yield and duration characteristics. 

Yield Curve Positioning
Tactical
Yield Curve Positioning
Credit Quality Focused
Smart Beta

Tactically Managed

Actively managed with a proprietary model that uses various objective, data-driven indicators in an attempt to identify periods of heightened credit and/or duration risks. The strategy seeks the tax-exempt income and enhanced risk-adjusted total return by allocating among selected VanEck Vectors municipal bond ETFs.

Yield Curve Positioning

Our investment grade municipal ETF product offerings seek to track indices that reflect a unique segmentation of the investment grade municipal yield curve.

Credit Quality Focused

Our credit-focused municipal ETF product offerings seek to track indices that include both the highest yielding and the highest credit quality available.

Smart Beta

Intelligent index weighting rules that underweight CEFs trading at higher premiums and overweight those trading at wider discounts.


Customized Municipal Exposures

Based on their own views on credit and interest rates, investors may find a customized fit for their portfolio.

 

Source: VanEck, Bloomberg. As of 6/30/2019. Past performance is no guarantee of future results. Modified Duration measures a bond’s sensitivity to interest rate changes that reflects the change in a bond’s price given a change in yield. 30-Day SEC Yield is a standard calculation developed by the Securities and Exchange Commission that allows for fairer comparisons among bond funds. It is based on the most recent 30-day period. This yield figure reflects the interest earned during the period after deducting a Fund’s expenses for the period. In the absence of expense waivers or reimbursements, the 30-Day SEC Yield would have been as follows, MAAX: -0.09%, XMPT: 4.14% on 6/30/2019. See the reverse for standardized performance. Effective Duration measures a bond’s sensitivity to interest rate changes that reflects the change in a bond’s price given a change in yield. This duration measure is appropriate for bonds with embedded options.


ETFs Provide Low Cost Access to Munis

The fees of an investment vehicle are important; they affect an investor's ultimate return. The average net expense ratio of municipal bond ETFs was more than 52 bps lower as compared to municipal bond mutual funds and was more than 173 bps lower as compared to municipal bond closed-end funds. Many investors may prefer municipal bond ETFs for this reason.

 

Source: Morningstar. As of 06/31/19. Fees for municipal bond ETFs compared against the average net expense ratio of mutual funds and closed-end funds in the Morningstar Municipal Bond U.S. Category Group. There were 50 funds in the Muni ETF Category, 1,850 funds in the Muni Mutual Fund Category, 148 funds in the Muni Closed-End Fund Category.

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