IWFG Profile
The IQ MacKay Municipal Insured ETF (IWFG) is an exchange-traded fund that seeks to track the performance of the IQ MacKay Municipal Insured Index. This index is designed to provide exposure to U.S. municipal bonds that are insured by financial guarantors.
The fund was launched on September 9, 2015, and has an expense ratio of 0.30%. It is managed by IndexIQ Advisors LLC, a subsidiary of New York Life Investment Management LLC.
The IQ MacKay Municipal Insured ETF aims to provide investors with exposure to U.S. municipal bonds that are insured by financial guarantors, which are typically large insurance companies that guarantee the principal and interest payments on the bonds. This can provide a level of credit enhancement that can make the bonds more attractive to investors.
The ETF invests in a diversified portfolio of investment-grade municipal bonds that are issued by U.S. states, territories, and political subdivisions. The bonds in the portfolio must be insured by one of the three major financial guarantors: Assured Guaranty Municipal Corp., Build America Mutual Assurance Company, or National Public Finance Guarantee Corporation. The fund typically invests at least 80% of its assets in bonds that meet these criteria.
The ETF is designed to provide income that is exempt from federal income taxes and may also be exempt from state and local taxes, depending on the state of residence of the investor. However, investors should consult with their tax advisors regarding the tax implications of investing in municipal bonds.
In summary, the IQ MacKay Municipal Insured ETF (IWFG) provides exposure to investment-grade municipal bonds that are insured by financial guarantors. The ETF seeks to provide income that is exempt from federal income taxes, making it an attractive option for investors seeking tax-exempt income.
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