New Van Eck High-Yield Muni ETF has quite different characteristics than corporate junk bond funds. 

While high-yield bond exchange-traded funds have proved to be popular with investors in recent years, similar options for muni investors haven't been so plentiful. The only available high-yield muni funds have been either in the closed-end marketplace or through traditional open-end mutual funds. 

But that has changed. The Market Vectors High-Yield Municipal Index ETF (NYSE Arca: HYD) was launched on Feb. 5, becoming the first of its kind in the ETF marketplace. It's expected to wind up with an annual expense ratio of 0.35%.The average high-yield muni mutual fund charges 0.63%, according to Morningstar. 

"The muni high-yield segment is very interesting and has real potential in the format of an ETF," said Harvey Hirsch, a senior vice president at Van Eck Global. "About 10% of the muni market is now represented by high-yield issues."

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