Van Eck Files For Junk Muni ETF, BroadSouth Plans Its Debut

by on August 31, 2012 | ETFs Mentioned:

Equity markets have been drifting sideways with a downward bias as low trading volume remains a dominant theme while anticipation ahead of today’s speech at Jackson Hole has also played a key part in keeping a lid on investors’ confidence. Despite the rather uneventful trading activity on Wall Street, investors have digested a number of encouraging releases this week, including a slight pop in housing prices, pending home sales, as well as a solid GDP revision. On the product development front, activity has also been quiet and below we highlight the most recent SEC proposals [see also Billionaires Trust GLD, Why Can't You?].

Van Eck has filed plans to beef up its lineup of fixed-income offerings [see SEC Filing]:

  • Market Vectors Short High-Yield Municipal Index ETF: This fund will be comprised of publicly-traded municipal bonds that cover the U.S. dollar denominated high yield, short-term, tax-exempt bond market. Van Eck currently offers a number of municipal bond funds, of which the Market Vectors High Yield Municipal Index ETF (HYD) holds the number one spot in terms of popularity; HYD boasts $808 million in assets under management since launching in early 2009 [see also Touring The Muni Bond ETF Universe].
New York-based money manager BroadSouth Investment Management is planning to enter the ETF industry as the firm has filed with the SEC to offer a diverse lineup of ETFs focused on both equities and bonds. The company’s filing for “exemptive relief” goes on to show that growth is by no means cooling off in the industry despite the summer doldrums on Wall Street. BroadSouth identified S&P Dow Jones Jones Indexes as potential providers, meaning that the firm does not plan to self-index like a number of other issuers [see ETFs In A Box: Q&A With Garrett Stevens].

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Disclosure: No positions at time of writing.