About VanEck Vectors High-Yield Municipal Index ETF (HYD)

The VanEck Vectors High-Yield Municipal Index ETF (HYD) is an exchange-traded fund that seeks to track the performance of the Bloomberg Barclays Municipal Custom High Yield Composite Index. This index includes publicly traded municipal bonds that are rated below investment grade or unrated. HYD provides investors with exposure to a diversified portfolio of high-yield municipal bonds, which are typically issued by state and local governments to finance various projects.

One of the key advantages of investing in HYD is the potential for attractive tax-exempt income. Unlike taxable bond investments, the interest earned from municipal bonds is generally exempt from federal income tax and, in some cases, state and local taxes as well. This can be particularly beneficial for investors in higher tax brackets, as it allows them to keep more of their investment returns.