U.S. president Joe Biden’s $2 trillion infrastructure proposal was expected to give municipal bonds a boost, and so far, the proof is in the pudding. Data from municipal bond space show that inflows have been surging, giving exchange traded fund (ETF) investors something to cheer about.
With Biden’s proposal, local and state government bonds are expected to help fund the ambitious plan to improve the country’s infrastructure. From the traditional roads and bridges to new initiatives to bolster internet access and renewable energy sources, municipal bonds will be at the forefront of the plan’s funding.
This, in turn, is fueling investor demand for munis. Rather than hold individual debt issues, fixed income investors can get access to the municipal debt market through the ETF wrapper.
ETF TRENDS
by BEN HERNANDEZ
MAY 26, 2021