State Street Global Advisors' newest ETF began trading Thursday on NYSE Arca. The SPDR S&P VRDO Municipal Bond ETF invests in municipal variable rate demand obligations. The expense ratio is 20 basis points.

The press release described VRDOs as “offering attractive yields and stable income” often exempt from taxes. The new ETF will track the just-launched S&P National AMT-Free Municipal VRDO Index.

“Developed in response to increasing demand for VRDOs, the SPDR S&P VRDO Municipal Bond ETF provides investors with access to a hard to reach corner of the municipal bond market where the required minimum denomination for issue purchase is $100,000,” stated James Ross, senior managing director at State Street Global Advisors. 

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