RVNU Profile
The Xtrackers Municipal Infrastructure Revenue Bond ETF is designed to provide investors with exposure to a diversified portfolio of municipal securities. Under normal market conditions, the fund invests at least 80% of its total assets in securities that are constituents of its underlying index, with typical allocations often exceeding this threshold. This index comprises a broad array of tax-exempt municipal securities issued by various governmental and quasi-governmental entities, including states, cities, counties, and districts, as well as their associated agencies.
The underlying index focuses on municipal bonds that are specifically issued to finance infrastructure projects. These securities are structured to provide investors with income that is generally exempt from federal income taxes, making them particularly appealing to those in higher tax brackets. By targeting revenue bonds, which are backed by specific revenue streams rather than general taxation, the ETF aims to offer investors an opportunity to support critical infrastructure while seeking a stable income stream.
Municipal infrastructure bonds often finance essential projects such as transportation systems, water and sewer facilities, and public buildings. The Xtrackers Municipal Infrastructure Revenue Bond ETF invests in a range of these securities, providing broad exposure to various infrastructure sectors and regional markets. This diversification helps to mitigate risk by spreading investments across different issuers and project types, enhancing the potential for stable returns over time.
The fund's strategy is to align closely with the performance of its benchmark index, which is specifically designed to capture the dynamics of the municipal infrastructure sector. By focusing on tax-exempt revenue bonds, the Xtrackers ETF seeks to offer investors both the benefits of municipal bond income and the added stability of infrastructure investments. This approach aims to attract investors seeking long-term capital preservation and income generation through a tax-advantaged vehicle.
|
