Three ETFs that are likely to be influenced if the municipal bond market melts down are:

SPDR Nuveen Barclays Capital Municipal Bond ( TFI)

SPDR Nuveen S&P VRDO Muni Bond ( VRD)

Market Vectors High Yield Muni ETF ( HYD)

Investors in ETFs like these can benefit from using an exit strategy that identifies price points at which systemic risk may cause the ETFs' values to fall. Such a strategy can be found at

-- Written by Kevin Grewal in Laguna Niguel, Calif.

At the time of publication, Grewal had no positions in equities mentioned.
Kevin Grewal serves as the editorial director and research analyst at The ETF Institute, which is the only independent organization providing financial professionals with certification, education, and training pertaining to exchange-traded funds (ETFs). Additionally, he serves as the editorial director at where he focuses on mitigating risks and implementing exit strategies to preserve equity. Prior to this, Grewal was an analyst at a small hedge fund where he constructed portfolios dealing with stock lending, exchange-traded funds, arbitrage mechanisms and alternative investments. He is an expert at dealing with ETFs and holds a bachelor's degree from the University of California along with a MBA from the California State University, Fullerton.

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