Deutsche X-trackers Muni Infras Revn Bd
According to the American Society of Civil Engineers, the US has to spend ~$3.6 trillion by 2020 to make needed infrastructure improvements. This should mean more municipal bonds (MUB) will be issued to help finance these projects.
Average maturity for new municipal bond issues came in lower at 15.2 years in Q1 2014 compared to 16.3 years in 2013 and an average of 17.7 years over the period 1996-2013.
Texas led the long-term municipal bond issuance tables in Q1 2014, with about ~$8.8 billion worth of bonds issued.
Besides matching the duration, convexity, and present value distribution of cash flows, there are other ways to effectively index a bond portfolio to a benchmark.
The chief advantage of investing in municipal bonds (VRD) is that the interest income on most of them is exempt from federal income taxes and often state and local taxes as well.
The municipal bond (RVNU) market’s debt outstanding on December 31, 2013, stood at ~$3.7 trillion, making up about 9.2% of the total outstanding debt in the U.S.