Two new Standard & Poor’s indexes tracking municipal bonds launched yesterday, paving the way for Vanguard to enter the municipal exchange-traded fund business.

Vanguard, which is based in Valley Forge, Pa., in June announced plans to launch three muni bond ETFs — one each for short-, intermediate-, and long-term munis. These passively managed ETFs will be designed to mimic the performance of a target index maintained by Standard & Poor’s. Before the ETFs could launch, Standard & Poor’s had to create the indexes the funds will be created to track.

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