Summary
High Earners Are Skipping Treasuries for These 3 Tax Free Muni ETFs Yielding Over 4 Percent After Tax
The 10-year Treasury yields 4.43%, which sounds competitive until a high earner runs it through the tax screen.
High Yield Munis Useful for Diversification, Extra Income
When advisors and investors hear the terms “high yield” or “junk” as it relates to bonds, they understandably have some apprehension. After all, junk bonds carry elevated credit risk relative to their investment-grade peers.
HYD: Toward My Preferred Strategy But Not Quite There
VanEck High Yield Muni ETF (HYD) is recommended for investors seeking tax-advantaged income, especially those in higher tax brackets. HYD captures excess yield by allocating to unrated and low-rated municipal bonds, exploiting perceived mispricing of credit risk in the muni market. The fund's strategy partially implements a favored approach—overweighting unrated bonds—yet does not pursue it as aggressively as some peers.
VanEck High Yield Muni ETF Investors
| Name | Quantity | Cost | Value | Profit ($) | Gain (%) |
|---|---|---|---|---|---|
| CE Curtis Ellergodt Rothschild Investment LLC | 1 | $50.2 | $51.12 | $0.92 | 1.83% |
| JD Jim Dushek HARBOUR INVESTMENTS Inc. | 2,210 | $111,032.2 | $112,997.08 | $1,964.88 | 1.77% |
 CliftonLarsonAllen Wealth Advisors CliftonLarsonAllen Wealth Advisors LLC | 63,082 | $3.21M | $3.23M | $11,383.59 | 0.35% |
| YA Yinka Akinsola Blue Trust Inc. | 1,041 | $52,538.84 | $53,200.3 | $661.46 | 1.26% |
| PF Phillip Fitzsimmons Hennion & Walsh Asset Management Inc. | 23,276 | $1.21M | $1.19M | -$18,576.03 | -1.54% |
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.
