PIMCO Short-Term Muni Bond ETF Starts Trading Today
PIMCO's Term Municipal Bond Strategy Fund (NYSE: SMMU), the third actively managed bond ETF from the fixed income giant, made its trading debut today.
The ETF is designed for investors looking for tax exempt income. SMMU uses a portfolio of highly rated short duration bonds that provides income that is exempt from federal taxes.
SMMU tracks the the Barclays Capital 1-3 Year Municipal Bond Index and will compete against the iShares S&P Short-Term National Muni Bond Index Fund (NYSE: SUB), the SPDR Barclays Short Term Municipal Bond ETF (NYSE: SHM), and Market Vectors Short Municipal Index ETF (NYSE: SMB).
Actively managed ETFs are expected to see impressive growth this year and PIMCO is planning at least two more related offerings.
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