AVMU Profile
Avantis Core Municipal Fixed Income ETF is an investment fund designed to provide investors with exposure to municipal fixed income securities that offer interest payments exempt from federal income tax. Under typical market conditions, the fund allocates at least 80% of its net assets, including any borrowings for investment purposes, to these tax-advantaged municipal bonds. This focus aims to deliver income that is free from federal taxation, making it an attractive option for investors seeking tax-efficient investment solutions.
The fund’s investment strategy emphasizes a focus on investment-grade securities. These are bonds rated as investment grade by an independent rating agency, or those deemed to have comparable credit quality by the fund's advisor if a rating is not available. Investment-grade securities are typically issued by municipalities with strong credit profiles, which are less likely to default and offer more stable returns compared to lower-rated bonds. The emphasis on high-quality securities helps to manage risk while aiming to provide reliable income.
To achieve its investment objectives, the Avantis Core Municipal Fixed Income ETF employs a rigorous selection process that involves evaluating municipal bonds based on credit ratings, financial stability, and economic conditions. The fund's approach ensures that it maintains a portfolio of bonds with robust credit profiles, thus enhancing the stability of income and mitigating potential risks associated with municipal fixed income investments.
Investors in the Avantis Core Municipal Fixed Income ETF benefit from a focused strategy that combines tax-exempt income with high credit quality. By concentrating on investment-grade municipal securities, the fund seeks to offer a stable and tax-efficient income stream. The fund’s commitment to investing in high-quality bonds reflects a sophisticated approach to managing municipal fixed income portfolios, providing investors with a reliable and tax-advantaged investment opportunity.
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