HYD

📎 Investment Objective

The VanEck High Yield Muni ETF (HYD) seeks to provide high current income exempt from federal income tax by investing primarily in high-yield municipal bonds.

✨ Key Features

• Focuses on high-yield municipal bonds, which can provide higher income but also carry greater risk
• Actively managed portfolio aiming to outperform the high-yield municipal bond market
• Seeks to provide tax-exempt income for investors in higher tax brackets
• Relatively low assets under management and no performance history

⚠️ Primary Risks

• High-yield municipal bonds have a greater risk of default or credit downgrades compared to investment-grade munis
• Active management style introduces the risk of underperformance versus the broader high-yield muni market
• Lack of performance history makes it difficult to evaluate the fund's long-term track record
• Low assets under management could impact the fund's liquidity and tradability

👤 Best For

This ETF may be suitable for investors in higher tax brackets seeking tax-exempt income, who have a higher risk tolerance and can withstand the volatility associated with high-yield municipal bonds. However, the lack of performance history makes it a less proven option compared to more established high-yield muni funds.