Barclays Global Investors'
first muni-bond ETF began trading on the AMEX today. It is the first municipal bond ETF available to U.S. investors.
"We think there is a demand for this kind of ETF from investors," Matt Tucker
, head of fixed income solutions at BGI, told the MFWire
The fund tracks the S&P National Municipal Bond Index, which includes bonds from issuers that are primarily state or local governments or agencies such that the interest in the bond is exempt from U.S. federal income taxes. The expense ratio is 25 bps.
Tucker says that BGI has filed for two additional muni-bond ETFs that cover California and New York.
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