Fund managers are beginning to offer a wide variety of municipal bond exchange-traded funds, but most small investors have yet to take advantage of these new products, primarily because they tend to hold muni bonds throughout their duration.

Van Eck Global last week launched an intermediate-term municipal bond ETF, designed to offer investors tax-exempt income through exposure to investment-grade municipal bonds with a nominal maturity of six to 17 years, and the New York money manager plans to launch similar products soon.

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