Municipal Bonds

Featured

MAAX Adds to Duration as Bond Yields Attempt to Stabilize

Blog | February 17

High Yield Munis Benefit from Anticipated Fiscal Support

Blog | January 15

Democratic Control of Senate Creates a Tailwind for Muni Bonds

Blog | December 18

Strong Demand, Not Enough Supply Continues to Drive Munis

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Related Funds

XMPT
VanEck Vectors CEF Municipal Income ETF

SHYD
VanEck Vectors Short High Yield Muni ETF

MLN
VanEck Vectors Long Muni ETF

ITM
VanEck Vectors Intermediate Muni ETF

SMB
VanEck Vectors Short Muni ETF

HYD
VanEck Vectors High Yield Muni ETF

Market Updates*

While spreads have tightened since the March 2020 sell-off, we believe there is room to tighten given the prospects of a faster-than-expected recovery.
The current recovery is already well under way, helped by a stronger economic and financial foundation, more immediate fiscal and monetary response, and some direct aid to state and local governments.
Names and sectors that were more affected by the pandemic—such as corporate-backed munis, healthcare and special tax—are likely to drive performance, while tobacco and COFINA (Puerto Rico’s Sales Tax Financing Corporation) may continue to provide good carry and marginal price appreciation.

Fund Description

The VanEck Vectors^®High Yield Muni ETF (HYD^®) seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the Bloomberg Barclays Municipal Custom High Yield Composite Index (LMEHTR), which is intended to track the overall performance of the U.S. dollar denominated high yield long-term tax-exempt bond market.

Fund Ticker
HYD
Exchange
Cboe
ETF Structure
Physical
Administrator
Van Eck Associates
Custodian
State Street Bank and Trust Company
Index Ticker
LMEHTR
Index Rebalancing
Monthly
2020 Preliminary NAIC
Designation⁷
4.C

as of 04/19/21

30-Day SEC Yield¹
2.83%
Total Net Assets
$3.4B
Number of Holdings
1886
Options
Available
Gross Expense Ratio²
0.35%
Net Expense Ratio/TER²
0.35%
Distribution Frequency
Monthly

^{1, 2, 7}See Important Disclosure.

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Geographical Weightings (%) as of 03/31/21

State
% of Net Assets
■
California
12.9
■
Illinois
12.5
■
New York
8.7
■
New Jersey
8.3
■
Florida
5.4
■
Ohio
4.8
■
Texas
4.7
■
Pennsylvania
3.9
■
Puerto Rico
3.8
■
Colorado
3.3
■
Wisconsin
2.8
■
Arizona
2.4
■
Alabama
2.0
■
Virginia
1.5
■
Maryland
1.4
■
Iowa
1.4
■
Washington
1.2
■
Michigan
1.2
■
Missouri
1.1
■
Minnesota
1.1
■
Other
15.6

Portfolio Composition (%)
as of 03/31/21

% of Net Assets
Stocks
0.00
Bonds
99.63
Other
0.00
Cash
0.37

Currency Exposure (%)

as of 03/31/21

U.S. Dollar
99.63
Other/Cash
0.37

Credit Quality (%) as of 03/31/21

Composite		% of Net Assets
Investment Grade	AAA	0.04
	BBB	23.99
Non-Investment Grade	BB	21.90
	B	7.88
	CCC	4.51
Total Investment Grade	--	24.03
Total Non-Investment Grade	--	34.29
Not Rated	--	41.32

Source: Barclays. Rating is a proprietary composite of various rating agencies.

3-YR Risk Measures*

as of 03/31/21

Beta vs. S&P 500 Index
0.14
Correlation vs. S&P 500 Index
0.30
Volatility (Standard Deviation)
8.34
Sharpe Ratio
0.32

Source: VanEck, FactSet

*Beta is a measure of sensitivity to market movements. Correlation measures the extent of linear association between the ETF performance and the index performance. Volatility is the annualized standard deviation of the ETF's monthly returns. Sharpe ratio measures risk-adjusted return, and represents the ETF's return less the risk free rate divided by the standard deviation. See S&P 500 Index definition.⁶

Sector Weightings (%) as of 03/31/21

Sector
% of Net Assets
■
Health Care
19.4
■
Industrial Revenue
16.4
■
Special Tax
11.2
■
Tobacco
10.5
■
Education
10.0
■
Local
8.3
■
Transportation
8.0
■
Leasing
7.6
■
State
2.8
■
Housing
2.8
■
Water & Sewer
2.0
■
Power
0.5
■
Cash
0.4
■
Solid Waste/Res Recovery
0.1

Maturity (%) as of 03/31/21

Average Portfolio Maturity: 20.68 Years