State Street Global Advisors has launched the SPDR S&P VRDO Municipal bond ETF (VRD).

The new ETF is designed to provide investors with access to municipal variable rate demand obligations (VRDOs), an asset class offering attractive yields and stable income that is exempt from federal taxes and often state and local income taxes as well.

VRD tracks the S&P National AMT-Free Municipal VRDO Index. The index includes VRDOs issued by U.S. states, local governments, or agencies and provides exposure to more than 377 issues.

The expense ratio for the new ETF is 0.20% and the average yield to maturity for the index is 0.55%.

For more ETF investing choices, see the tax-exempt ETF directory.