Overlay Shares Municipal Bond Fund

The Overlay Shares Municipal Bond Fund is a type of exchange-traded fund (ETF) that provides investors with exposure to a diversified portfolio of municipal bonds. These bonds are typically issued by states, cities, and local government entities to fund public projects such as schools, infrastructure, and utilities. The primary function of the fund is to offer potential tax-exempt income, as interest income from municipal bonds is often exempt from federal income taxes, and sometimes state and local taxes as well. This makes it particularly appealing to investors in higher tax brackets. The fund employs an overlay strategy, which involves derivatives to enhance income or mitigate risks without altering the underlying asset allocations. This approach aims to provide a more efficient balance between risk and return. The Overlay Shares Municipal Bond Fund plays a significant role in the financial market by appealing to investors seeking stable income with a degree of capital preservation, often used as a tool for diversification within a broader investment portfolio. Its focus on municipal bonds and the use of sophisticated overlay strategies highlight its importance in the realm of fixed-income investments.