Tied to the Barclays Capital Municipal Pre-Refunded Treasury-Escrowed Index, it is the first such ETF of its kind.
Pre-refunded munis are bonds that have been refinanced by their issuers, remain outstanding in the municipal market and are secured by Treasury obligations and state and local government bonds backed by the U.S. government.
Van Eck said that pre-re munis offer a compelling risk-reward profile in todays difficult economic and financial climate.
We are pleased to lead the way in providing a convenient and cost-effective means of accessing the highest-quality and most liquid segment of the municipal bond market, said Jan van Eck, principal of Van Eck Global. Pre-refunded bonds, given their high credit quality, liquidity and relatively low levels of price volatility can truly be called munis for the risk averse.
