Rockefeller New York Municipal Bond ETF

Frequently Asked Questions About RMNY

What does RMNY invest in?

The Rockefeller New York Municipal Bond ETF (RMNY) primarily allocates its capital across a broad spectrum of municipal bonds, irrespective of their duration, aiming to deliver income that is generally free from both federal and New York State income taxes. The fund maintains the flexibility to commit up to a quarter of its portfolio to debt instruments graded as medium investment quality or lower, encompassing higher-yielding, speculative-grade bonds. It may also invest in private activity bonds, where the interest income qualifies as a tax-preference item, requiring shareholders subject to the Alternative Minimum Tax (AMT) to account for these distributions in their computations. Furthermore, RMNY's exposure to inverse floaters, typically stemming from municipal tender option bond financing arrangements, could reach as much as 35%. The fund intends to concentrate a significant portion of its investments in bonds characterized by higher issuance volumes, which may include municipal debt from Puerto Rico that is exempt from New York income taxes. Additionally, it has the option to invest in certain specialized municipal bonds, such as tobacco settlement bonds, occasionally known as "dirt bonds." While its primary focus is on tax-exempt income, a portion of the fund's holdings might generate taxable interest. Operated under active management, the fund's investment strategy considers elements like relative value, prevailing market supply and demand, identified market inefficiencies, and specific, opportunistic situations.

What is the expense ratio of RMNY?

Rockefeller New York Municipal Bond ETF (RMNY) charges an expense ratio of 0.55%. This is the annual fee deducted from fund assets to cover management and operations.

What is RMNY's distribution yield?

RMNY's trailing-twelve-month yield is 4.51%, calculated from the sum of distributions over the past year divided by the current price.

How does RMNY's covered-call strategy work?

RMNY sells call options against the stocks (or index) it holds, collecting premium income that gets passed through to shareholders as distributions. The strategy generates above-market income in flat or rising markets but caps upside. When the underlying rallies past the strike, the gains above the strike go to the option buyer, not the fund.

What is the duration of RMNY?

Effective duration measures RMNY's sensitivity to interest-rate changes: a duration of 6 means a 1% rate move shifts NAV by roughly 6% in the opposite direction. RMNY's current duration is published on the fund's factsheet on the issuer's website.

What is the credit quality of RMNY?

RMNY's credit quality breakdown (the share of holdings rated AAA through CCC and below) is published on the fund's factsheet. Higher-quality (investment-grade) funds yield less but carry less default risk than high-yield / junk bond funds.