At a glance
FTSM charges 0.29% a year, above the 0.12% average of the 7 funds most like it (the 7th cheapest of 8). It has $6.50B in assets, the 8th largest of that group; it paid 4.1% of its price in distributions over the past 12 months, monthly. Over the past year it returned +3.5% with distributions reinvested, 3rd of those 8 funds; over three years it returned +4.6% a year. At its worst it fell 4.1% in the 2020 crash (S&P 500: 33.7%) and 0.5% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 3 months after the low. Its ten largest positions make up 7.3% of the fund, out of 657 in all.
The short version
First Trust Enhanced Short Maturity ETF (FTSM) is an actively managed bond fund. It holds hundreds of short-term, investment-grade corporate bonds, asset-backed securities and Treasury notes, and it aims to pay income while keeping price swings small. It targets an average duration (a gauge of interest-rate sensitivity) under one year. Its 0.29% expense ratio is lower than PIMCO's similar MINT (0.35%) but well above the 0.12% average for similar funds.
Price history
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FTSM +3.5% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| FTSM official prospectus, to Dec 31, 2025 | — | +4.62% | — | +3.17% | +2.43% | +2.17% |
| FTSM price data to Oct 27, 2026 | +2.8% | +3.5% | +4.6% | +3.7% | +2.6% | +2.3% |
- Over the year to Oct 27, 2026, FTSM returned +3.5%, 3rd of 8 among similar funds.
- Its 5-year annualized return was +3.7% and its 10-year +2.6%.
- In the 2020 COVID crash it fell 4.1% and regained its old high 2.7 months after the low.
- Its worst full calendar year was 2021 (0.0%); its best was 2024 (+5.3%).
- The deepest fall in its price history was 4.1% (Mar 3, 2020 to Mar 20, 2020), recovered by Jun 10, 2020.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +2.8% | — |
| 2025 | +4.7% | +4.62% |
| 2024 | +5.3% | +5.20% |
| 2023 | +5.1% | +5.17% |
| 2022 | +1.0% | +0.97% |
| 2021 | 0.0% | +0.04% |
| 2020 | +1.1% | +1.14% |
| 2019 | +2.9% | +2.82% |
| 2018 | +1.9% | +1.85% |
| 2017 | +1.5% | +1.54% |
| 2016 | +1.2% | +1.13% |
| 2015 | +0.4% | — |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 3.4% over that stretch · deepest drop along the way 4.1%, back to its old high 2.7 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Gained 0.1% over that stretch · deepest drop along the way 0.5% |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $1.8400 | |
| 2025 | $2.5700 | -12.9% |
| 2024 | $2.9500 | +7.3% |
| 2023 | $2.7500 | +183.5% |
| 2022 | $0.9700 | +304.2% |
| 2021 | $0.2400 | -67.1% |
| 2020 | $0.7300 | -50.0% |
| 2019 | $1.4600 | +14.1% |
| 2018 | $1.2800 | +54.7% |
| 2017 | $0.8275 | +34.6% |
| 2016 | $0.6150 | +112.1% |
| 2015 | $0.2900 |
What's inside
As of Jul 31, 2026, the fund held 657 securities; the ten largest made up 7.34% of assets, and 10.65% sat in cash and money-market holdings.
| Holding | Weight | |
|---|---|---|
| UNITED STATES OF AMERICA - BUREAU OF THE PUBLIC DEBT Bonds and notes | 1.72% | |
| UNITED STATES OF AMERICA - BUREAU OF THE PUBLIC DEBT Bonds and notes | 0.98% | |
| TARGA RESOURCES 0826 Bonds and notes | 0.92% | |
| ENTERPRISE PRODUCTS Bonds and notes | 0.62% | |
| HUNTINGTON NATIONAL BANK Bonds and notes | 0.54% | |
| T-MOBILE USA INC Bonds and notes | 0.54% | |
| HALEON US CAPITAL LLC Bonds and notes | 0.53% | |
| KINDER MORGAN INC Bonds and notes | 0.51% | |
| CRH AMERICA FINANCE INC Bonds and notes | 0.50% | |
| WILLIS NORTH AMERICA INC Bonds and notes | 0.48% | |
| SOLVENTUM CORP Bonds and notes | 0.47% | |
| HUNTINGTON NATIONAL BANK Bonds and notes | 0.47% | |
| CCL INDUSTRIES INC Bonds and notes | 0.47% | |
| HYATT HOTELS CORP Bonds and notes | 0.46% | |
| AON NORTH AMERICA INC Bonds and notes | 0.46% |
By country
United States 75.26%Cayman Islands 5.81%Canada 4.11%United Kingdom 1.33%Netherlands 0.87%By issuer
Companies 81.04%US government-sponsored enterprises 5.9%US Treasury 2.7%The bonds mature in 4.7 years on average (weighted by size), with an average coupon of 4%.
Source: N-PORT holdings report as of Jul 31, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Jul 31, 2026, investors added a net $110.7M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +0.34%, +0.26%, +0.33%.
How it works
FTSM does not track an index. Its adviser, First Trust Advisors L.P., picks the bonds. At least 80% of net assets goes into US dollar debt: corporate bonds, government and agency securities, mortgage- and asset-backed securities, municipal bonds and foreign issuers' dollar bonds. The managers combine a top-down view of bond sectors and market trends with security-by-security research, screening for credit quality, yield, rate sensitivity and liquidity. They sell a bond when something similar looks better value, when it no longer pays enough for its credit risk, or to keep the portfolio diversified.
The rules limit risk. All debt must be investment grade from at least one rating agency when bought, or judged comparable if unrated. Average duration stays under one year, so a 1% rise in rates would cut the value by roughly 1% or less. Average maturity stays under three years. Up to 10% can go into AAA-rated collateralized loan obligations (CLOs), which are bundles of business loans sliced into tiers, with AAA as the top tier. Private asset-backed securities and CLOs together are capped at 35%.
As of July 31, 2026, the fund held 689 positions, and the top 10 made up only 7.3%. The two largest were Treasury notes due in 2028 and 2027. Next came Targa Resources and Enterprise Products. Bonds and notes were 62%, other asset-backed securities 21%, CLOs 6% and cash about 11%. Turnover was 76%. The fund handles some redemptions in cash, which may make it less tax-efficient than other ETFs.
What it really costs
- FTSM charges 0.29% a year, versus an average of 0.12% for the similar funds below (7th of 8, cheapest first).
Structure and tax notes
- Bond prices move opposite to interest rates; the longer the maturities it holds, the more its price reacts to rate changes.
In a retirement portfolio
It is built to protect capital and pay steady income, with an average duration under one year and very small price swings.
FTSM could hold money set aside for the next year or two of spending. It launched in 2014, so it has no 2008 record. Its deepest drop was 4.1%, from March 3 to March 20, 2020, during the COVID crash. It recovered by June 10, 2020, about 2.7 months later. In the 2022 bear market it dipped only 0.5% and was back by September 2, 2022. Its weakest calendar year was 2021, at 0.04%. So selling in a bad year has cost little, but 2020 shows it is not cash and is not FDIC insured. The trailing 12-month yield was 4.1% as of October 27, 2026, paid monthly. That income will shrink if short-term rates fall. The 0.29% fee is above the 0.12% average for similar funds. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Retirees keeping a one-to-two-year spending reserve who want monthly income and can accept brief dips like the 4.1% drop in March 2020.
- Investors who want active management like PIMCO's MINT at a lower cost: 0.29% versus 0.35%, with all debt investment grade when bought.
- People who want very low rate sensitivity: average duration under one year, and one-year volatility of 0.4% as of October 27, 2026.
Look elsewhere if
- Cost-focused investors: index-based short-term bond ETFs such as VCSH and SPSB charge 0.03% to 0.04%, versus FTSM's 0.29%.
- Anyone who needs guaranteed principal: FTSM isn't FDIC insured, about 81% of it is corporate debt, and its price can fall.
- Investors seeking long-term growth: it returned 2.43% a year over the 10 years through December 31, 2025, so it is built for stability, not growth.
Close alternatives
Matched by bond funds with the closest average maturity and issuer mix (N-PORT).
| Fund | Avg. maturity | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| FTSM this fund | 4.7 yrs | 0.29% | $6.50B | +3.5% | +4.6% |
| VCSH Vanguard Short-Term Corporate Bond ETF | 3.5 yrs | 0.03% | $51.74B | +1.9% | +5.7% |
| MINT PIMCO Enhanced Short Maturity Active Exchan… | 6.3 yrs | 0.35% | $16.43B | +3.9% | +4.9% |
| SPSB SPDR Portfolio Short Term Corporate Bond ETF | 2.4 yrs | 0.04% | $10.63B | +2.3% | +5.1% |
| JPST JPMorgan Ultra-Short Income ETF | 2 yrs | 0.18% | $41.13B | +3.1% | +4.8% |
| PULS PGIM Ultra Short Bond ETF | 8.8 yrs | 0.15% | $18.71B | +4.1% | +5.2% |
| BSV Vanguard Short-Term Bond ETF | 2.9 yrs | 0.03% | $69.75B | +1.7% | +4.5% |
| BIV Vanguard Intermediate-Term Bond ETF | 7.5 yrs | 0.03% | $52.45B | -0.7% | +5.1% |
Questions investors ask
Is FTSM safe for retirement savings?
FTSM is low risk but not risk-free. Its average duration is under one year, and all its debt must be investment grade when bought, so price swings have been small. Even so, it fell 4.1% from March 3 to March 20, 2020, before recovering by June 10. It is not a bank deposit and is not FDIC insured. About 81% of its holdings were corporate debt as of July 31, 2026, so credit risk is real.
Does FTSM pay monthly dividends?
Yes. FTSM pays income monthly. Over the 12 months to October 27, 2026, it paid about $2.45 per share, a trailing yield of 4.1%. The payments come from interest on its short-term bonds and asset-backed securities. Because its holdings mature or reset quickly, its income tends to follow short-term interest rates. If the Federal Reserve keeps cutting rates, the monthly payments will likely shrink.
What's the difference between FTSM and MINT?
Both are actively managed short-maturity bond ETFs with similar goals. FTSM charges 0.29% a year, and PIMCO's MINT charges 0.35%. MINT is much larger, at about $16.4 billion as of June 30, 2026, against FTSM's $6.5 billion as of July 31, 2026. MINT has returned more: 4.2% over one year and 5.0% a year over three years as of October 29, 2026. FTSM returned 3.5% and 4.6% as of October 27, 2026.
Is FTSM a money market fund?
No. FTSM is a bond ETF, not a money market fund. Money market funds follow strict SEC rules on maturity and quality, and many aim to hold a steady $1 share price. FTSM's share price moves every day. It can hold bonds maturing in a few years, and it keeps average duration under one year rather than days. It can own some money market securities, but it lost value in early 2020, which money market funds are designed to avoid.
How has FTSM performed over the long term?
FTSM has delivered modest, steady returns. Through December 31, 2025, it returned 4.62% over one year, 3.17% a year over five years and 2.43% a year over ten years. Results follow interest rates closely: it returned just 0.04% in 2021, when rates were near zero, then 5.17% in 2023, 5.2% in 2024 and 4.62% in 2025. Its weakest quarter was a 1.29% loss in early 2020.