Invesco PowerShares has announced an upcoming adjustment to the name, underlying index, investment objective and strategy for one of its US municipal bond ETFs.

As of 31 May 2017, the PowerShares Build America Bond Portfolio will adopt the BofA Merrill Lynch US Taxable Municipal Securities Plus Index.

The PowerShares Build America Bond Portfolio will change its underlying index from the BofA Merrill Lynch Build America Bond Index to the BofA Merrill Lynch US Taxable Municipal Securities Plus Index. To reflect the change in index, the fund will subsequently be called the PowerShares Taxable Municipal Bond Portfolio.

The BofA Merrill Lynch Build America Bond Index is designed to track the performance of US dollar-denominated Build America Bonds publicly issued by US states and territories.

Build America Bonds (BABs) were introduced in 2009 as part of President Obama’s American Recovery and Reinvestment Act to create jobs and stimulate the economy. BABs attempt to achieve this by lowering the cost of borrowing for state and local governments in financing new projects. The bonds feature tax credits and/or federal subsidies for bondholders and state and local government bond issuers.

In contrast, the BofA Merrill Lynch US Taxable Municipal Securities Plus Index tracks the performance of US dollar denominated municipal debt publicly issued by US states and territories where the income raised is not exempt from tax for investors. Taxable municipal bonds are generally issued to finance a project or activity that does not provide a major benefit to the public.

The ETF will maintain its current index provider, product ticker (BAB) and management fee (0.28%).

Invesco’s Board of Trustees has approved the changes to the ETF which will take effect as of market close on 31 May 2017.

Invesco has announced the decision to undertake the ETF changes was made according to its “commitment to aligning its fund offerings to meet an evolving investment landscape.”