F/m Investments has added a new ETF to its roster, with the full debut of its new ultrashort muni bond ETF, listed on the Nasdaq. The shop, which announced the fund as the first muni bond ETF to offer an ultrashort approach, officially launched ZMUN, the Ultrashort Municipal Bond ETF, on Wednesday. The strategy joins a suite led by the shop’s largest ETF by AUM, the US Treasury 3 Month Bill ETF (TBIL).
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The new ultrashort muni bond ETF’s tax exempt assets approach arrives just as many investors look to lessen their tax bills for the end of 2025. What sets ZMUN apart, however, is its ultrashort nature. According to a release from the shop, its ultrashort approach helps it offer competitive yields without longer duration risk.
“Traditionally, investors seeking tax-free income have had to compromise to achieve attractive yields, accepting longer-duration muni exposure with volatility, or taking on additional credit risk,” the firm’s release said. “ZMUN solves this problem by focusing exclusively on high-quality municipal bonds at or near their call dates, delivering a blend of steady, federally tax-exempt income with desirable yields, monthly distributions, and portfolio stability.”
Ultrashort Muni Bond ETF ZMUN Debuts
ZMUN will charge its investors 30 basis points (bps) to track the Bloomberg Municipal Bond Currently Callable Index. The muni bond ETF will invest in “currently callable” bonds with its index. It aims to reduce bills not only with its federally tax exempt bond exposures, but also via the ETF wrapper’s tax efficiency. Its index offers credit profiles with an average AA credit rating via Moody’s. It also offers monthly dividend payments.
The fund joins the asset manager’s roster of so-called “innovative fixed-income ETFs,” including TBIL. Outside of ZMUN and those ETFs, however, F/m Investments also recently saw the launch of another related ETF. The firm serves as adviser for the F/m Emerald Special Situations ETF (SPIT), also listed on the Nasdaq. SPIT actively invests in a small list of firms seeing major transformations, charging an 89 bps fee.
Looking ahead, F/m Investments’ ETFs, in house or advised, could help investors fine tune their allocations. With an uncertain year drawing to a close, more options mean more opportunity for investors and advisors of all kinds.
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