Muni ETFs held $80 billion as of the end of the third quarter, up from less than $50 billion two years ago, Federal Reserve data shows
But trying to track prices in real time can be tricky in a market where about 50,000 state and local governments sell debt and some bonds go years without changing hands.
“Newer investors tend to be more comfortable with the ETF structure,” said Steve Laipply, U.S. head of Bond ETFs at., which controls $36 billion in muni bond ETFs. “It’s this desire for transparency and nimbleness in trading.” “When you enter the order you know exactly what the price is going to be,” Mr. Winter said, adding that the speed helps him jump on bargains in equities or commodities.
Since many munis trade infrequently, valuation services parse through trade data and estimate bond values. In normal times, ETF share prices and the estimated values of the underlying bonds move in lockstep in part because financial firms take advantage of any mismatch by buying up falling shares, exchanging them with the ETF sponsor for the underlying bonds and selling those bonds.
At a VanEck ETF that tracks the even less liquid high-yield municipal market, the gap lasted more than two months.
Ireland Latest News, Ireland Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Bernstein upgrades Caterpillar to outperform, says machinery stock can jump more than 20%For CNBCPro subscribers: Bernstein upgrades Caterpillar to outperform, says machinery stock can jump more than 20%.
Read more »
How to reinvest profits into your small business, according to expertsQ4 is the most profitable time of year for many business owners. Here are 4 ways you can reinvest surplus cash into your company.
Read more »
Where graduates of Yale Law's class of 1996 ended up after 25 yearsYale Law is one of the most powerful law schools in the country. Insider tracked where its graduates ended up 25 years later.
Read more »
How identity literacy can keep your online information safeOur personal safety is under attack. Here's how embracing 'identity literacy' can help. AU10TIXLimited ad
Read more »
Exclusive look at synthetic cannabis biotech Hyasynth pitch deckHere's the 13-slide pitch deck that helped IndieBio-backed Hyasynth land a total of $10 million to produce synthetic cannabis compounds
Read more »
Jack Dorsey bashes Web3. Here's what other crypto experts think.Insider tells the global tech, finance, markets, media, healthcare, and strategy stories you want to know.
Read more »