Fund
This exchange-traded fund (ETF) aims to generate substantial ongoing income that is exempt from ordinary federal income taxes. Its core investment strategy involves primarily acquiring bonds and notes issued by state, municipal, and public authorities. Typically, a minimum of 80% of its portfolio will be dedicated to these tax-exempt securities, though it retains the flexibility to invest entirely (up to 100%) in bonds whose interest might be subject to the Alternative Minimum Tax (AMT). A key feature of this fund is its emphasis on higher-yielding municipal debt: generally, at least 60% of its assets will be allocated to debt securities rated BBB+ or Baa1 or lower by recognized statistical rating organizations at the time of purchase, or to unrated bonds that the fund's investment adviser deems to be of equivalent quality. The fund's holdings are typically comprised of securities with intermediate to long-term maturities.
