SHYM

📎 Investment Objective

The iShares Short Duration High Yield Muni Active ETF (SHYM) seeks to provide a high level of current income that is generally exempt from federal income taxes by investing primarily in a portfolio of high-yield municipal bonds with short durations.

✨ Key Features

• Actively managed portfolio of high-yield municipal bonds
• Emphasis on shorter-duration bonds to help manage interest rate risk
• Seeks to provide high current income that is generally exempt from federal income taxes
• Low expense ratio of 0.00%

⚠️ Primary Risks

• Credit risk: The fund is exposed to the risk of default or downgrade of the municipal bonds it holds
• Interest rate risk: Shorter-duration bonds can still be affected by changes in interest rates
• Liquidity risk: The high-yield municipal bond market may have lower liquidity than the broader municipal bond market
• Tax risk: Municipal bond income may become taxable if the fund does not meet certain requirements

👤 Best For

This ETF may be suitable for investors seeking high current income that is generally exempt from federal income taxes, and who have a higher risk tolerance and a shorter investment horizon. It may be particularly appealing to investors in higher tax brackets who are looking to generate tax-efficient income.