Market Vectors launches the Short High-Yield Municipal ETF

|By:, SA News Editor

Earlier today the Market Vectors Short High-Yield Municipal Index ETF (SHYD) became available for income minded investors.

Much like the popular Market Vectors High Yield Municipal Index ETF (HYD), which currently offers an effective duration of 11 years, this ETF offers exposure to non-investment grade municipal bonds, but will maintain a 25% allocation to investment grade bonds.

By holding funds with maturities ranging from 1 to 10 years, SHYD's short term exposure could offer investors a way to avoid the effects of raising Treasury yields, while still investing in high-yield funds.

Other high-yield municipal bond ETFs: HYMB, SHYD