VanEck CEF Municipal Income ETF (XMPT)

Overview

This fund is designed for investors seeking to generate income that is exempt from U.S. federal income tax, excluding the federal alternative minimum tax. It primarily focuses on investing in securities that not only offer tax-exempt income but also align with the fund's benchmark index, the CEFMX Index. This index is specifically composed of shares from U.S.-listed closed-end funds. Such a strategic focus suggests that the fund aims to provide a relatively stable income stream by investing in a mix of assets that are likely to benefit from the tax-exempt status, making it an attractive option for tax-sensitive investors.

Products and Services

• Tax-Exempt Income Investments

The fund specializes in investments that generate income exempt from U.S. federal income tax, though not exempt from the federal alternative minimum tax. By focusing on tax-exempt income, this service is tailored for investors who are looking to maximize their after-tax returns on investment. The fund achieves this by carefully selecting investments that not only provide favorable tax treatment but also align with its strategy for income generation and capital preservation.

• U.S.-Listed Closed-End Fund Investments

The fund invests at least 80% of its total assets in securities of issuers that are part of the CEFMX Index, which is composed of U.S.-listed closed-end funds. This approach provides investors with exposure to a diversified portfolio of closed-end funds, aiming to capitalize on the potentially higher yield and liquidity that these funds can offer. It also allows for a broad exposure to various market sectors and asset classes, adding an extra layer of diversification to an investor's portfolio.