How should muni ETF investors be reacting to the post-election bond market volatility?
Investors drawn to funds with a balance of interest rate risk and dividends.
The biggest municipal bankruptcy in U.S. history has created more questions than answers, but don’t shun all bond ETFs.
The ETF market is full of problem-solving gems, even if they’re hard to find.
Guggenheim Completes Claymore Purchase
In mid-October, privately held institutional money manager Guggenheim Partners completed its acquisition of Claymore Group Inc. The deal covers all aspects of Claymore’s operations, including Claymore Securities Inc., Claymore Investments Inc. in Canada and Claymore Advisors, LLC.
State Street Global Advisors launched the world’s second variable rate demand obligation ETF, the SPDR S&P VRDO Municipal Bond ETF (NYSE Arca: VRD), on Sept. 24. It tracks the performance of the S&P National AMT-Free Municipal VRDO Index, which holds VRDOs issued by U.S. states, local governments and agencies. The fund charges 0.20 percent in annual expenses.
State Street Global Advisors launched the world’s second variable rate demand obligation exchange-traded fund, a peculiar type of municipal bond fund that functions almost like a muni-market money market product.
The SPDR S&P Municipal VRDO ETF will track an index of variable rate demand obligations.
Muni funds have a lot of appealing features right now for income-minded investors. And economists believe the muni rally might not be finished yet.