IndexIQ on Wednesday rolled out two actively managed municipal bond exchange-traded funds, marking the first actively managed funds from a company that has “Index” in its name.
The IQ MacKay Shields Municipal Intermediate ETF (MMIT) and the IQ MacKay Shields Municipal Insured ETF (MMIN) are actively managed by subadvisor MacKay Municipal Managers of MacKay Shields LLC.
MMIT invests mainly in investment grade municipal bonds and seeks to enhance total return potential through the subadvisor’s active management approach. MMIN seeks current income exempt from federal income tax.
MMIN focuses on investment-grade municipal bonds covered by an insurance policy guaranteeing the payment of principal and interest, and will also seek to enhance total return potential through the subadvisor’s active management approach.
The net expense ratios for both ETFs is 0.30 percent.