Van Eck unveils muni fund

Van Eck Global has launched a high-yield municipal bond exchange traded fund, the Market Vectors High-Yield Municipal Fund (HYD).
FEB 06, 2009
By  Bloomberg
Van Eck Global, an asset management firm based in New York, has launched a high-yield municipal bond exchange traded fund, the Market Vectors High-Yield Municipal Fund (HYD). The investment “may be of potential interest to investors looking to augment their tax-free income through investments in high-yield municipal obligations, particularly since it offers compelling benefits when compared to individual bond purchases and traditional fund platforms,” Jan van Eck, principal of the firm, said in a release. Although high-yield municipal bonds have experienced sharp price declines in the current market, their current prices relative to historical default rates “suggest considerable value,” Mr. van Eck said in the release. The Market Vectors fund attempts to replicate the price and yield of the Barclays Capital Municipal Custom High-Yield Composite Index (LMEHTR) before fees and expenses. The index maintains a 25% weighting in investment-grade triple-B bonds and a 75% weighting in below-grade bonds. It provides exposure to a diverse array of high-yield municipal bond sectors, including health care, industrial development, special tax and airports. HYD is the fifth municipal bond ETF in the Market Vectors lineup.

Latest News

SEC charges Chicago-based investment adviser with overbilling clients more than $2.5M in fees
SEC charges Chicago-based investment adviser with overbilling clients more than $2.5M in fees

Eliseo Prisno, a former Merrill advisor, allegedly collected unapproved fees from Filipino clients by secretly accessing their accounts at two separate brokerages.

Apella Wealth comes to Washington with Independence Wealth Advisors
Apella Wealth comes to Washington with Independence Wealth Advisors

The Harford, Connecticut-based RIA is expanding into a new market in the mid-Atlantic region while crossing another billion-dollar milestone.

Citi's Sieg sees rich clients pivoting from US to UK
Citi's Sieg sees rich clients pivoting from US to UK

The Wall Street giant's global wealth head says affluent clients are shifting away from America amid growing fallout from President Donald Trump's hardline politics.

US employment report reactions: Overall better than expected, but concerns with underlying data
US employment report reactions: Overall better than expected, but concerns with underlying data

Chief economists, advisors, and chief investment officers share their reactions to the June US employment report.

Creative Planning's Peter Mallouk slams 'offensive' congressional stock trading
Creative Planning's Peter Mallouk slams 'offensive' congressional stock trading

"This shouldn’t be hard to ban, but neither party will do it. So offensive to the people they serve," RIA titan Peter Mallouk said in a post that referenced Nancy Pelosi's reported stock gains.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.