Tax Free Bond Fund ETF: iShares S&P National Municipal Bond MUB ETF

Barclays iShares, the pioneer in the Exchange Traded Funds (ETF) market, have also been the pioneer in coming up with a unique ETF fund based on the bond segment, that too with the advantage of tax benefit or tax exemption. Barclays Global Investors has the credit of launching the first municipal bond exchange-traded fund ETF called the iShares S&P National Municipal Bond ETF Fund that trades on the American Stock Exchange.

What is the iShares S&P National Municipal Bond ETF Fund all about?
The name of the fund is iShares S&P National Municipal Bond Fund and this ETF fund based upon the municipal bonds is designed to track a liquid, institutional-quality municipal bond index. The underlying index that will be tracked by the iShares S&P National Municipal Bond ETF Fund is the S&P National Municipal Bond Index SPMUNUST . This index is a broad, comprehensive, market value-weighted index designed to measure the performance of the investment-grade U.S. municipal bond market.

A bond must be denominated in US Dollars & must have a rating of at least BBB- by Standard & Poor’s, Baa3 by Moody’s, or BBB- by Fitch for inclusion in this index.
On 1st August 2008, the Index consists of approximately 7,580 bonds, with a total market value of approximately US$ 478.8 billion.
What are the benefits of iShares S&P National Municipal Bond ETF Fund?
This iShares S&P National Municipal Bond ETF Fund is actually a unique product, as here both the investors and traders can bet or invest their money on the municipal bonds, but with the benefit of trading them as stocks. One can also short sell, trade on margin and take benefits by volatility to earn money by trading on these stocks.

What are the holding patterns of iShares S&P National Municipal Bond Fund
As on August 6th, the holding of iShares S&P National Municipal Bond ETF were: OREGON ST DEPT ADMINISTRATIVE 5%, NYC LDC - GOLDMAN SACHS 5.25%, NC ST 5%, MASSACHUSETTS ST SCH BLDG AUTH DED 4.5%, IL ST 5%, OREGON ST 4.5%, REGIONAL TRANSN DIST COLO SALES TA 4.5%, GREENVILLE CNTY S C SCH DIST I 5.5%, NORTH CAROLINA ST 5%, CITIZENS PPTY INS CORP FLA 5%

Sector wise allocation is as follows: Various Purpose 22.07% , Transportation 17.53% , Utility 16.04% , Tax-Revenue 11.38% , School District 8.32% , Education 6.12% , Building 4.81% , Authority 3.53% , General Purpose 3.31% , Improvement 3.07%.

Trading details and information about iShares S&P National Municipal Bond ETF Fund?
Related Index SPMUNUST , NAV Per Share MUB.NV , Und. Trading Value MUB.IV , Shares Outstanding MUB.SO , Est. Cash MUB.EU , Total Cash MUB.TC , CUSIP 464288414
iShares S&P National Municipal Bond Fund

What is the annual expense ratio of iShares S&P National Municipal Bond ETF?
Annual expense ratio is currently 0.25 percent for iShares S&P National Municipal Bond ETF.
Are there any tax benefits of iShares S&P National Municipal Bond ETF Fund?
Yes. The iShares S&P National Municipal Bond ETF Fund will offer tax-free interest to the holders.