Last year’s bond bonanza amid a flight to safety saw a large increase in capital inflows from banks and funds into municipal bonds. Investors looking for bond alternatives now can opt for a pair of muni-focused bond funds from Invesco with the Invesco National AMT-Free Municipal Bond ETF (PZA) and the Invesco VRDO Tax-Free Weekly ETF (PVI).
On one hand, PZA seeks to track the investment results of the ICE BofAML National Long-Term Core Plus Municipal Securities Index. The fund generally will invest at least 80% of its total assets in the components of the index.
The index is composed of U.S. dollar-denominated, tax-exempt municipal debt publicly issued by U.S. states and territories and their political subdivisions in the U.S. domestic market. PZA’s expense ratio comes in at 0.28%.
ETF TRENDS
by BEN HERNANDEZ
MARCH 18, 2021