##  [# State Street Launches ESG Muni Bond ETF ](/sections/daily-etf-watch/state-street-launches-esg-muni-bond-etf) 

 

# State Street Launches ESG Muni Bond ETF 

 

 

 It’s the fifth collaboration between SSgA and Nuveen.



 

 

 

 

 [![DanMika200x200.jpg](/sites/default/files/styles/author_image_icon/public/2023-02/DanMika200x200.jpg?itok=W3yFiWn- "DanMika200x200.jpg")](/contributors/dan-mika) 

[By Dan Mika](/contributors/dan-mika)

 Apr 05, 2022

 Edited by: Dan Mika

 

 

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State Street and Nuveen are rolling out their fifth ETF together, this time offering an ESG-tinted spin on municipal bonds.

The actively managed [**SPDR Nuveen Municipal Bond ESG ETF (MBNE)**](https://www.sec.gov/Archives/edgar/data/1516212/000119312522094901/d320757d497k.htm) launched on the Cboe Global Markets on Tuesday, charging a 0.43% expense ratio.

MBNE holds municipal bonds selected by subadvisor Nuveen from the investable universe set by the Bloomberg 3-15 Year Blend (2-17) Municipal Bond Index with a focus on bonds rated A, similar to the [**SPDR Nuveen Municipal Bond ETF (MBND)**](https://www.etf.com/mbnd).

The new fund goes further by using an internal Nuveen rating system to rank municipalities by their adherence to the UN Sustainable Development Goals from a scale of one to five. Bonds from municipalities with a three or higher on that scale are allowed in the fund, along with so-called green bonds from issuers under that baseline that are specifically earmarked for environmental infrastructure projects.

MBNE’s lone competitor in the ESG muni theme is the [**VanEck HIP Sustainable Muni ETF (SMI)**](https://etf.com/smi), which is also actively managed and only targets earmarked project bonds. SMI charges 19 basis points less than MBNE.

SPDR currently manages nearly $12 billion in assets in its four existing ETFs with Nuveen.

*Contact Dan Mika at* [*dan.mika@etf.com*](mailto:dmika@etf.com)*, and follow him on* [*Twitter*](https://twitter.com/DanMikaTweets)



 

 

 [ Dan Mika ](/contributors/dan-mika) 

 

 

  Dan Mika is a reporter for etf.com. He has previously covered business for the Ames Tribune and Cedar Rapids Gazette in Iowa, and BizWest Media in…   [View Bio](/contributors/dan-mika)

 



 

 


 Related Topics  [ESG](http://www.etf.com/topics/esg) 

 [Fixed Income](http://www.etf.com/topics/fixed-income) 

 [Active Management](http://www.etf.com/topics/active-management) 

 [Muni](http://www.etf.com/topics/muni-etfs) 

 [Bond](http://www.etf.com/topics/bond)