But trying to track prices in real time can be tricky in a market where about 50,000 state and local governments sell debt and some bonds go years without changing hands.
“Newer investors tend to be more comfortable with the ETF structure,” said Steve Laipply, U.S. head of Bond ETFs at., which controls $36 billion in muni bond ETFs. “It’s this desire for transparency and nimbleness in trading.” “When you enter the order you know exactly what the price is going to be,” Mr. Winter said, adding that the speed helps him jump on bargains in equities or commodities.
Since many munis trade infrequently, valuation services parse through trade data and estimate bond values. In normal times, ETF share prices and the estimated values of the underlying bonds move in lockstep in part because financial firms take advantage of any mismatch by buying up falling shares, exchanging them with the ETF sponsor for the underlying bonds and selling those bonds.
At a VanEck ETF that tracks the even less liquid high-yield municipal market, the gap lasted more than two months.
Truly the corona virus pandemic have really affected me financially, but with of the help Anthony_Claw through her Forex investment, I’m gradually getting back on my feet financially
Malaysia Malaysia Latest News, Malaysia Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
How to reinvest profits into your small business, according to expertsQ4 is the most profitable time of year for many business owners. Here are 4 ways you can reinvest surplus cash into your company. 对于许多企业主来说，第四季度是一年中利润最高的时期。这里有4种方法可以让你把多余的现金再投资到你的公司。 I wish there was surplus 🤦🏽♂️
Source: BusinessInsider - 🏆 729. / 51 Read more »