Rockefeller Unveils Trio of Muni Bond ETFs

Each of the three funds has a net expense ratio of 0.55%. While each ETF uses a different strategy, they all aim to provide investors with current income.

RMOP aims to generate current income that is exempt from federal income tax. Additionally, the ETF seeks to provide long-term capital appreciation.

To execute the fund strategy, RMOP usually invests at least half of its assets into municipal bonds with an investment rating of BBB+ or lower. Thusly, its portfolio could include investments in high-yield bonds.

A West Coast strategy, RMCA seeks to generate income that is exempt from both federal and California state income tax. To do so, the fund invests mostly in California municipal bonds.

Additionally, the fund may invest in debt securities outside of California, should the security be exempt from both federal and California income tax. Per the fund prospectus, RMCA may also invest up to a quarter of its total assets into muni bonds with an investment rating of BB+ or lower.

For investors interested in the municipal bonds in the Empire State, RMNY may be able to help. The fund’s goal is to deliver current income to investors that is exempt from both federal and New York State income taxes.

To achieve its investment goals, RMNY primarily invests in New York muni bonds. Much like RMCA, the fund may also invest in debt securities outside of the state, should the security still be exempt from regular federal and New York income taxes. Additionally, the ETF may also invest up to a quarter of its total assets in municipal bonds with an investment grate at or lower than BB+.

All three of the funds reserve the right to invest in securities across a variety of maturity ranges. However, the prospectus notes that each ETF expects to focus on securities with a longer maturity to provide potential for higher yields.

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