Van Eck Associates Corp., a New York asset management company, launched the Market Vectors High-Yield Municipal Index Exchange-Traded Fund.
The fund, introduced last week and traded on the NYSE Arca exchange, is the first ETF to focus on the high-yield segment of the municipal bond market, Van Eck said.
It tracks the Barclays Capital Municipal Custom High Yield Composite Index, which has a 25% weighting in investment-grade triple-B bonds and a 75% weighting in bonds with lower ratings.
The fund is the fifth municipal bond ETF in Van Eck's Market Vector family, which also includes the Market Vectors Short Municipal Index ETF, the Market Vectors Intermediate Municipal Index ETF, the Market Vectors Long Municipal Index ETF, and the Market Vectors Pre-Refunded Municipal Index ETF.
Van Eck had $8.2 billion of assets under management as of Dec. 31. Its Market Vectors exchange-traded funds had $4.5 billion.