Market Vectors Municipal Bond Exchange-Traded Funds Top $1 Billion In AUM

New York-based asset manager Van Eck Global announced today that its family of municipal bond Exchange-Traded Funds (ETFs) recently passed the $1 billion mark in combined assets under management (AUM).

“Municipal bonds have emerged into the spotlight after long being one of the quieter corners of the investment landscape, and investors and advisors are seeing their current attractiveness as well as the potential benefits offered by investing through ETFs such as those in our Market Vectors suite,” said Jim Colby, portfolio manager and senior municipal strategist with Van Eck Global. “Historically low yields on Treasuries have made the search for yield far more difficult than it’s been in quite some time. In this environment, we’re pleased to offer a range of funds that span the risk/return spectrum, providing a number of choices for income-focused investors as they build their portfolios.”

Colby noted that the growth experienced by Market Vectors’ municipal bond ETFs came even as the muni marketplace was faced with high-profile prognostications of doom at the start of 2011. “Thankfully, the massive wave of defaults that some had predicted did not come to pass,” continued Colby. “In fact, defaults remained at or below historical norms throughout the year.”

Since launching its first municipal bond ETF in late 2007, Van Eck has steadily added to its roster. The firm’s full range of muni-income oriented ETF offerings now includes:

• Market Vectors High-Yield Municipal Index ETF (NYSE Arca: HYD): tracks and index that focuses on the non-investment grade portion of the municipal bond market
• Market Vectors Long Municipal Index ETF (NYSE Arca: MLN): tracks an index that focuses on long-duration bonds with a nominal maturity of 17 years or more; MLN has earned a 4-star Morningstar rating on both a 3-year and overall basis (as of 1/31/12)
• Market Vectors Intermediate Municipal Index ETF (NYSE Arca: ITM): the first muni ETF launched by Van Eck, in December of 2007, this fund tracks an index that focuses on medium-duration bonds with a nominal maturity of 6 to 17 years; ITM has earned a 4-star Morningstar rating on both a 3-year and overall basis (as of 1/31/12)
• Market Vectors Short Municipal Index ETF (NYSE Arca: SMB): tracks an index that focuses on short-duration bonds with a nominal maturity of 1-6 years; SMB has earned a 3-star Morningstar rating on both a 3-year and overall basis (as of 1/31/12)
• Market Vectors Pre-Refunded Municipal Index ETF (NYSE Arca: PRB): tracks an index that focuses on pre-refunded and escrowed-to-maturity municipal securities, meaning the debt obligations are directly issued of unconditionally guaranteed by the US government
• Market Vectors CEF Municipal Income ETF (NYSE Arca: XMPT): the first and only U.S. listed ETF designed to track and index that provide exposure to a basket of municipal bond-focused closed-end funds

As part of the firm’s commitment to investor and advisor education, the company recently launched a weekly blog on the Van Eck Global website titled “MUNI NATION” where Colby shares his thoughts on the state of the muni marketplace, themes and trends of note, key statistics and more. The blog can be found at http://www.vaneck.com/blogs/muni-nation/.

“We’ve been pleased with the interest that our municipal bond ETFs have garnered in the marketplace. We believe it’s important that we continue to do our best to educate and inform investors, potential investors and the advisor community,” said Jan van Eck. “As munis become an ever more important component in building an income portfolio, we plan to remain at the forefront of product development, investor education and market insights.”

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