First Look At BlackRock’s HY Muni ETF (BATS:HYMU)

Explore the BlackRock High Yield Muni Income Bond ETF (BATS:HYMU) as a potential investment option in light of potential tax increases for the wealthy and rising interest rates. This ETF focuses on high-yield municipal bonds rated BBB or below by S&P, Fitch, or Baa by Moody’s, with maturities of five years or longer. It aims to benchmark against a composite index composed of various municipal bond indices. Managed by BlackRock, the fund seeks to maximize tax-free current income and capital appreciation through a portfolio of high yield U.S. municipal bonds. With $103m in assets under management and a 35bps fee, the ETF has a TTM yield of 4.4%. It offers exposure to various states and sectors, with a focus on short and long maturities. Top holdings include a mix of investment-grade and non-investment grade bonds, with monthly distributions fluctuating between $.06 and $.09. Compared to similar funds like VanEck High Yield Muni ETF (HYD) and SPDR® Nuveen Bloomberg High Yield Municipal Bond ETF (HYMB), HYMU has outperformed since its inception, making it a potential buy for investors seeking a municipal bond fund without leverage. Consider the potential impact of rising tax rates and lower interest rates on municipal bond performance when making investment decisions.



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