F/m Callable Tax-Free Municipal ETF (ZMUN)

Overview

The F/m Callable Tax-Free Municipal ETF is designed as a passively-managed exchange-traded fund (ETF) that aims to mirror the price and yield performance of the Bloomberg Municipal Bond Currently Callable Index. This fund specifically focuses on U.S. municipal investment-grade bonds that are approaching their call dates, offering investors the opportunity to benefit from higher coupon rates. By concentrating on tax-free income generation while effectively managing call risk, the fund seeks to provide favorable returns to investors. The portfolio primarily comprises investment-grade municipal bonds that possess callable features, thus enhancing the potential for yield and tax advantages.

Products and Services

• Callable Municipal Bonds

  The core offering of the ETF consists of callable municipal bonds, which are bonds that can be redeemed by the issuer before their maturity date. Investing in these bonds often provides higher coupon rates, delivering significant potential for tax-free income to the fund's investors while maintaining a focus on investment-grade security.

• Tax-Free Income Generation

  The ETF is structured to deliver tax-free income, appealing to investors seeking to maximize their after-tax returns. The underlying assets are primarily municipal bonds, which are typically exempt from federal taxes and, in some cases, state taxes, thus enhancing the return on investment for holders of the ETF.

• Passively-Managed Investment Strategy

  The fund employs a passive management strategy, aiming to replicate the performance of the Bloomberg Municipal Bond Currently Callable Index. This strategy minimizes management costs and seeks to accurately reflect the movements and yields of the benchmark index, making it an attractive option for investors who prefer a less actively managed approach.

• Call Risk Management

  The ETF specifically targets bonds that are nearing call dates, allowing for a strategic approach to managing call risk. By focusing on higher coupon bonds in proximity to their call dates, the fund aims to balance the benefits of yield with the potential for bonds to be called away from investors.