Van Eck Global plans to start an exchange-traded fund consisting largely of Puerto Rico municipal securities, a move that may broaden demand for the commonwealth's debt as it re-enters the market for the first time since a new administration took office.
The asset manager filed paperwork with the Securities and Exchange Commission earlier this month to launch the Market Vectors Puerto Rico Municipal Index ETF, consisting of munis issued by Puerto Rico and several other U.S. territories. The fund would try to replicate the price and yield performance of the Barclays Custom Puerto Rico Municipal Composite Index. Van Eck portfolio managers James Colby and Michael Mazier will steer the fund, which would be listed on the NYSE Arca exchange. Van Eck declined to comment during the SEC registration period.