MMIT Profile
The IQ MacKay Municipal Intermediate ETF is an actively managed exchange-traded fund that focuses on providing investors with a stable, tax-exempt income stream through a carefully selected portfolio of municipal bonds. Unlike passively managed funds that aim to replicate the performance of a specific index, this ETF utilizes an active management approach, allowing its portfolio managers to make strategic investment decisions based on current market conditions. This flexibility enables the fund to adapt to changes in the municipal bond market, optimizing returns while managing risk.
Under normal market conditions, the fund invests at least 80% of its assets, including net assets plus borrowings for investment purposes, in municipal debt securities. These securities are selected based on the opinion of bond counsel at the time of issuance, ensuring that the interest earned is exempt from federal income tax. The fund's intermediate duration strategy focuses on bonds with maturities that generally range between three and ten years. This approach balances the need for income generation with interest rate sensitivity, making it a suitable choice for investors seeking a moderate level of risk.
The IQ MacKay Municipal Intermediate ETF is designed to capitalize on the opportunities within the municipal bond market by investing in bonds that offer attractive yields relative to their risk profiles. The active management strategy employed by the fund allows it to navigate the complexities of the municipal bond market, which can vary significantly based on factors such as credit quality, geographic location, and sector. By actively selecting and managing its holdings, the fund aims to provide investors with a consistent source of tax-exempt income while preserving capital.
Managed by MacKay Shields, a firm with deep expertise in fixed income investing, particularly in municipal bonds, the IQ MacKay Municipal Intermediate ETF is tailored for investors who are looking for a tax-efficient investment option that offers both income and stability. The fund’s focus on intermediate-term bonds provides a balance between income potential and interest rate risk, making it an attractive option for conservative investors who prioritize tax-exempt income and are seeking a well-rounded municipal bond portfolio.
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