Summary
HYD Chart
HYD: High Yield Munis Present A Clear Contrarian Play (Rating Upgrade)
HYD offers exposure to high-yield, long-term, tax-exempt U.S. municipal bonds, appealing to income-focused investors seeking tax advantages. The fund aims to track the overall performance of the high-yield muni bond market, providing diversified access to this asset class. Current market pricing and yield levels present a contrarian entry point for investors comfortable with elevated credit risk.
HYD: This High-Yield ETF Is A Strong Buy
VanEck High Yield Muni ETF offers attractive, tax-free income, strong yield, liquidity, and broad diversification, making it compelling for taxable portfolios. HYD's current 4.67% SEC yield translates to a much higher tax-equivalent yield, especially for high earners, with lower default risk than high-yield corporates. Potential Fed rate cuts could boost HYD's price, offering both income and capital gains; the current price is below historical highs, adding upside potential.
Bond ETF HYD Could Be a 2025 Winner
Municipal bonds aren't the most exciting segment of the fixed income market. However, they are increasingly gaining positive calls heading into 2025.
VanEck High Yield Muni ETF (HYD) FAQ
What is the stock price today?
On which exchange is it traded?
What is its stock symbol?
Does it pay dividends? What is the current yield?
What is its market cap?
Has VanEck High Yield Muni ETF ever had a stock split?
VanEck High Yield Muni ETF Profile
| BATS Exchange | US Country |
Overview
The described company appears to be a mutual fund that specializes in investing in the high yield, long-term tax-exempt municipal bond market in the United States. By committing at least 80% of its total assets to securities within the benchmark index that it follows, the fund seeks to offer investors exposure to the performance of U.S. dollar-denominated municipal bonds. These bonds are known for their tax-exempt status, which can make them an attractive option for investors looking for ways to reduce their taxable income. The focus on high-yield bonds within this market segment suggests that the fund aims to deliver higher returns compared to those associated with more conservative municipal bonds, albeit with a potentially higher level of risk.
Products and Services
The company's main product offerings and services revolve around investment in the high-yield municipal bond market, providing a range of services to cater to the investment needs of its clients.
- Benchmark Index-Focused Municipal Bond Fund
This product offers investors a focused investment strategy that aligns with the performance of a specified benchmark index. By investing predominantly in securities that comprise the index, the fund seeks to replicate the index's returns and behavior. This index consists of a diverse array of publicly traded municipal bonds covering the high yield, long-term, tax-exempt bond market in the US. This service is ideal for investors seeking exposure to high yield municipal bonds without having to pick individual securities.
- High Yield Municipal Bond Investments
The fund provides an investment avenue into the high yield municipal bond sector, which is known for offering higher returns in comparison to standard, tax-exempt municipal bonds. These bonds come with a higher risk due to their high yield nature but are appealing for those looking to enhance their income while still benefiting from the tax-exempt status of municipal bonds. Suitable for income-focused investors who are willing to tolerate higher levels of risk for potentially greater rewards.
- Tax-Exempt Investment Solutions
A core advantage of investing in municipal bonds through this fund is the tax-exempt income it potentially offers. This is particularly beneficial for investors in higher tax brackets seeking to minimize their taxable income through their investments. The fund's focus on the U.S. dollar-denominated long-term tax-exempt bond market ensures that investors can gain exposure to a range of municipal bonds designed to provide income that is not subject to federal (and in some cases, state and local) income taxes.
