Northern Trust Asset Management has launched three new fixed income exchange-traded fund (ETF) suites, catering to fixed income investors looking for laddering strategies that focus specifically on municipal and inflation-linked bonds as well as those looking for core muni options to complement a portfolio.
The three product suites include 11 ETFs total. Two suites are ideal for those looking to employ an innovative, low-cost distributing ladder strategy in municipal and inflation-linked bonds for cash flow optimization. The third set focuses on investors looking to get cost-effective, core muni exposure in three different maturity timeframes.
“Northern Trust has a strong heritage in the ETF market under the FlexShares brand. Given the growing adoption by advisors, it is great to see them expand their lineup with a suite of fixed income ETFs,” said TMX VettaFi head of research Todd Rosenbluth.
Distributing Ladder Technology in Munis
Municipal bonds have long been lauded for their income that’s devoid of federal income tax, but these days they’re offering a combination of yield as well as credit quality. With that, investors can utilize patent-pending distributing ladder technology for munis with the following funds (using a 0.18% expense ratio):
Per a press release, each fund will consist of rungs that signify varying maturity dates. For example, with MUNA, there are five rungs — bonds in the fund will mature in 2026, 2027, 2028, 2029, and finally 2030. Investors can choose to step further out on the yield curve all the way until 2055 with MUND. Northern Trust noted that after each rung, the invested capital is returned. Unlike a traditional bond ladder, it is not reinvested into the next rung on the bond ladder. Rather, investors are able to use that returned capital however they like. As mentioned, the technology is undergoing patent approval with the the U.S. Patent and Trademark Office.
“In an increasingly complex market environment, investors need access to innovative new solutions that efficiently and transparently aid them in managing their risk and empower them to achieve their most important financial goals,” Northern Trust Asset Management Global Head of ETFs and Funds Dave Abner said. “Northern Trust Distributing Ladder ETFs are designed to provide tax-exempt or inflation-protected monthly income and annual principal distributions without the complexity of building your own bond ladders.”
Countering Persistent Inflation
Inflation continues to remain top of mind for investors in the second half of 2025, and it’s proving to be more stubborn than initially anticipated. With that, inflation-linked bonds can help mute the impact of rising prices that can eat into the income provided by bonds.
Again, investors can use the patent-pending distributing ladder technology with these inflation-linked bond funds (that have an expense ratio of 0.10%):
- Northern Trust 2030 Inflation-Linked Distributing Ladder ETF (TIPA)
- Northern Trust 2035 Inflation-Linked Distributing Ladder ETF (TIPB)
- Northern Trust 2045 Inflation-Linked Distributing Ladder ETF (TIPC)
- Northern Trust 2055 Inflation-Linked Distributing Ladder ETF (TIPD)
Each fund will invest primarily in Treasury-inflation protected securities (TIPS), but can include other inflation-linked bonds as well.
Core Muni Exposure
The final set of funds are passive index funds with low expense ratios of 0.05%. This trio focuses specifically on muni exposure, and investors can tailor their exposure for short or intermediate term, as well as opt for an all-maturities option in TAXT.
- Northern Trust Short Term Tax-Exempt Bond ETF (TAXS)
- Northern Trust Intermediate Tax-Exempt Bond ETF (TAXI)
- Northern Trust Tax-Exempt Bond ETF (TAXT)
“They’re good for any type of portfolio that you might be building,” Abner said.
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