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Muni Index Funds Are Moving Closer to Their Benchmarks

TS FI EMS technology can significantly enhance the sampling, pricing, and trading of large, diverse indices.


Municipal-bond exchange-traded funds, which attracted $10 billion in investor cash last year, are getting better at tracking their benchmarks.

The average gap between municipal-bond index fund returns and their targets fell to 0.35 percentage point for the three years ended Dec. 2019, compared with 0.57 percentage point for the 36-month period ended in November 2013, according to Morningstar Inc. Expanded electronic trading and improved sampling of bonds by large asset managers like The Vanguard Group Inc, BlackRock Inc., and State Street Corp. have lowered costs and made tracking more precise, said Neal Kosciulek, a Morningstar analyst.

Read the rest of the article via Bloomberg here 

  • Martin Braun

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