VanEck Vectors CEF Municipal Income ETF [XMPT] Stock Forecast

ETFs Of CEFs: Diversification And Higher Distributions

The XMPT ETF is a fund-of-funds of closed-end funds focusing on municipal bond investments. Municipal bonds have very high duration due to the long-term nature of their assets, hence municipal bond funds tend to be very sensitive to interest rates. Given my view that long-term interest rates may continue to rise or stay higher for longer, I advise avoiding the XMPT ETF.

The VanEck CEF Municipal Income ETF invests based on the S-Network Municipal Bond Closed-End Fund Index. Both the ETF and its index are reviewed in detail.  I also compare XMPT against both a set of municipal bond ETFs and CEFs. The added risk of investing in CEFs is shown when comparing XMPT against three other municipal bond "true" ETFs.

By Michael Cohick Director of Product Management A Q&A guide for the VanEck CEF Muni Income ETF (XMPT), a diversified, rules-based, and cost-effective ETF tracking the S-Network Municipal Bond Closed-End Fund Index.

VettaFi's Associate Director of Research, Roxanna Islam, joined the Active Investment Company Alliance's The NAVigator podcast and host Chuck Jaffe to talk ETFs, and specifically, buying closed-end funds in the ETF wrapper.

Many investors are unfamiliar with the closed-end fund structure or uncomfortable with their premium/discount volatility. There are only a few options for ETFs of CEFs, but they are all very different strategies and may appeal to different types of investors.

Closed-end funds are known for their high distribution rate and potential to provide current income. But many investors are unfamiliar with their structure or uncomfortable with their premium/discount volatility.

Investors should consider the opportunities in the municipal bond market and turn to related exchange traded fund strategies to diversify back into this fixed income category.

Municipal bonds now offer yields not seen in more than a decade (aside from a spike at the onset of the pandemic). Investors need to pay attention to these higher income levels as they consider portfolio positioning for 2023.

XMPT invests in closed-end funds that invest in municipal bonds. Munis have been getting hit hard as interest rates rise, but CEF discounts are also widening.

VanEck Vectors CEF Municipal Income ETF is a US stock and trading under the symbol XMPT

VanEck Vectors CEF Municipal Income ETF stock price is $20.27 today.

Yes, VanEck Vectors CEF Municipal Income ETF is a publicly traded company.