Van Eck Global launched its second municipal bond exchange-traded fund yesterday that will focus on bonds that mature 17 years and longer.

The Market Vectors Lehman Brothers AMT-Free Long Municipal Index ETF, ticker symbol MLN, is trading on the American Stock Exchange.

The ETF will track the price and yield performance of the Lehman Brothers AMT-Free Long Continuous Municipal Index. To be placed in the index, a bond must have a maturity greater than 17 years, be non-alternative minimum tax, fixed rate, part of a transaction greater than $75 million, and be issued within the past five years. To be included in the index, bonds must be rated by two of the major rating agencies. The threshold rating is Baa3 by Moody’s Investors Service or BBB-minus by Standard & Poor’s or Fitch Ratings.

The expense ratio is 24 basis points.

Jan van Eck, principal at Van Eck, said the company’s ETFs offer “more munis for the money.”

“I believe they both have a unique combination of benefits for many investors, including a structure that offers the potential for enhanced yield through broader diversification of index constituents,” van Eck said.

In early December, the company launched its first ETF that targeted bonds maturing from six through 17 years. A short-term, state-specific, and high-yield ETFs will be launched this year. The long-term ETF opened yesterday at $100.74 and closed at $100.74, with a volume of 100 shares.

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