Schwab Launches Muni Bond ETF

“As bond yields have risen, fixed income investing is more attractive than it has been in years, making this an opportune moment to introduce a new choice for investors seeking a low-cost, straightforward approach to income, diversification and risk management in their portfolios,”  John Sturiale, head of product management and innovation, Schwab Asset Management, said in a statement.

The Schwab Municipal Bond ETF aims to closely track, before fees and expenses, the total return of the ICE AMT-Free Core U.S. National Municipal Index, which measures the performance of the U.S. AMT-free municipal bond market. It seeks to provide income exempt from federal taxes and not subject to the federal alternative minimum tax, the firm said.

The fund, Schwab Asset Management’s eighth bond ETF and the 29th Schwab ETF overall, invests only in high-quality, investment-grade rated securities, according to the organization.