“Van Eck Global has used municipal bond exchange-traded funds to make a name for itself in the tax-exempt investment arena, and the firm sees more growth ahead,” Steve Garmhausen Reports From Bank Investment Consultant.

“Prior to 2007, I don’t think anyone recognized Van Eck Global as an expert in the delivery of tax-exempt products, but we’re doing that now,” said Jim Colby, the senior municipal strategist for fixed income at the New York asset management company. “We’ve certainly asserted and positioned ourselves to be very competitive in that universe.”

“Companies began to introduce Muni-bond ETFs two years ago, and Van Eck has already launched five under its Market Vectors brand. Collectively, the funds have $350 million of assets under management,” Garmhausen Reports.

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“We’re certainly expecting that these funds are going to grow substantially larger than they are now,” Colby said. He declined to offer asset goals, but alluded to the possibility of doubling the assets next year. “If we double the size of our funds from here to there, we’d say, ‘OK.’”

That does not seem unreasonable, given that muni-bond ETF assets industrywide increased 200% in the 12 months ending Nov. 30, to $5.75 billion, according to Morningstar Inc.

Van Eck has the eighth-largest muni-bond ETF in the industry in its $120 million high-yield fund. That’s a fraction of the size of the leaders, however: BlackRock’s iShares S&P National AMT-Free Muni BondETF had $1.58 billion of assets to top the list, and the PowerShares VRDO Tax-Free Weekly Fund, which had $1.14 billion, according to Morningstar.

Muni-bond ETFs have caught on largely because they are an easy way to get in and out of the market, according to Scott Burns, the director of ETF analysis at Morningstar.

“I think people are seeing that the biggest problem with investing in muni bonds is liquidity,” he said. “Once you buy it, in a way you’re stuck with it.”

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