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The Second VRDO ETF Hits the Market: VRD
State Street Global Advisors (SSgA) launched the SPDR S&P VRDO Municipal Bond ETF (VRD) yesterday (September 24, 2009). The underlying S&P National AMT-Free Municipal VRDO Index tracks investment grade variable rate demand obligations (“VRDOs”) issued by municipalities.
A VRDO is a short-term tax-exempt fixed income security whose yield is reset on a periodic basis (typically weekly or monthly). VRDOs tend to be issued with very long maturities (often 30-40 years). However, since they include a “put” feature that coincides with the periodic yield reset, VRDOs are considered short-term securities.
If you think these sound suspiciously like the 28Sep2009 | Invest With An Edge | 0 comments | Continued
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