Barclays launches iShares S&P Short Term National Municipal Bond ETF

By Angela McDaniels

Tacoma, Wash., Nov. 7 - Barclays Global Investors said the new iShares S&P Short Term National Municipal Bond fund began trading Friday on the NYSE Arca under the ticker symbol "SUB."

The new exchange-traded fund is designed to track the S&P National 0-5 Year Municipal Bond index, which is market-value weighted and measures the performance of the short-term investment-grade segment of the U.S. municipal bond market.

As of Sept. 30, there were 1,725 issues in the index, according to a Barclays news release. Each issue must be at least $25 million and denominated in dollars to be eligible for inclusion.

"Recent volatility in the fixed-income markets has increased investor demand for products that are liquid and transparent," Matthew Tucker, head of U.S. fixed-income investment strategy at Barclays, said in the release.

"Municipals appeal to investors who seek tax-advantaged income and the yields are currently attractive."

The ETF's expense ratio is 0.25%.

Barclays Global Investors is a San Francisco-based asset manager and a provider of investment management products and services.

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