At a glance
FUMB charges 0.45% a year, above the 0.2% average of the 7 funds most like it (the 7th cheapest of 8). It has $246.5M in assets, the 8th largest of that group; it paid 3.04% of its price in distributions over the past 12 months, monthly. Over the past year it returned +3.0% with distributions reinvested, 2nd of those 8 funds; over three years it returned +3.1% a year. At its worst it fell 2.7% in the 2020 crash (S&P 500: 33.7%) and 1.0% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high within a month and 7 months after the lows. Its ten largest positions make up 8.5% of the fund, out of 240 in all.
The short version
First Trust Ultra Short Duration Municipal ETF (FUMB) is an actively managed fund of investment-grade municipal bonds. Their interest is generally exempt from regular federal income tax, and the managers keep the portfolio's duration under one year. It aims for small price swings and pays tax-exempt income monthly, with a 3.04% trailing yield as of October 27, 2026. Its 0.45% expense ratio is more than double the 0.20% average for similar funds.
Price history
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FUMB +3.0% 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 | |
|---|---|---|---|---|---|---|
| FUMB official prospectus, to Dec 31, 2024 | — | +2.79% | — | +1.52% | — | +1.60% |
| FUMB price data to Oct 27, 2026 | +2.2% | +3.0% | +3.1% | +2.3% | — | +1.9% |
- Over the year to Oct 27, 2026, FUMB returned +3.0%, 2nd of 8 among similar funds.
- Its 5-year annualized return was +2.3%.
- In the 2020 COVID crash it fell 2.7% and regained its old high 0.2 months after the low.
- Its worst full calendar year was 2022 (+0.1%); its best was 2025 (+3.1%).
- The deepest fall in its price history was 2.7% (Mar 9, 2020 to Mar 20, 2020), recovered by Mar 26, 2020.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +2.2% | — |
| 2025 | +3.1% | — |
| 2024 | +3.0% | +2.79% |
| 2023 | +2.9% | +3.20% |
| 2022 | +0.1% | -0.08% |
| 2021 | +0.6% | +0.33% |
| 2020 | +1.2% | +1.40% |
| 2019 | +1.8% | +1.81% |
| 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 1.1% over that stretch · deepest drop along the way 2.7%, back to its old high 0.2 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 0.6% over that stretch · deepest drop along the way 1% |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.4600 | |
| 2025 | $0.6500 | +14.0% |
| 2024 | $0.5700 | +23.9% |
| 2023 | $0.4600 | +109.1% |
| 2022 | $0.2200 | +83.3% |
| 2021 | $0.1200 | -33.3% |
| 2020 | $0.1800 | -48.6% |
| 2019 | $0.3500 |
What's inside
As of Jul 31, 2026, the fund held 240 securities; the ten largest made up 8.48% of assets.
| Holding | Weight | |
|---|---|---|
| CUMBERLAND COUNTY FINANCE CORP (NC) Bonds and notes | 1.01% | |
| MIAMI-DADE COUNTY EXPRESSWAY AUTHORITY (FL) Bonds and notes | 0.90% | |
| DALLAS-FORT WORTH TEX INTL ARPT Bonds and notes | 0.83% | |
| LOS ANGELES CALIF Bonds and notes | 0.83% | |
| MASSACHUSETTS PORT AUTHORITY (MA) Bonds and notes | 0.83% | |
| NORTH TEX TWY AUTH Bonds and notes | 0.82% | |
| OHIO AIR QUALITY DEVELOPMENT AUTHORITY (OH) Bonds and notes | 0.82% | |
| HUBER HEIGHTS OHIO Bonds and notes | 0.82% | |
| MIAMI-DADE CNTY FLA Bonds and notes | 0.81% | |
| NEW JERSEY ECONOMIC DEVELOPMENT AUTHORITY (NJ) Bonds and notes | 0.81% | |
| MISSISSIPPI BUSINESS FINANCE CORP (MS) Bonds and notes | 0.81% | |
| ALABAMA POWER COMPANY Bonds and notes | 0.81% | |
| TENDER OPT BD TR RCPTS / CTFS VAR STS Bonds and notes | 0.81% | |
| MISSION TEX ECONOMIC DEV CORP Bonds and notes | 0.81% | |
| CHARLOTTE HOUSING AUTHORITY (NC) Bonds and notes | 0.81% |
By country
United States 96.5%By issuer
Municipalities 96.5%The bonds mature in 5.3 years on average (weighted by size), with an average coupon of 4.41%.
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 $18.1M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +0.22%, +0.27%, +0.12%.
How it works
FUMB does not track an index. First Trust's portfolio managers choose the bonds. Normally at least 80% of net assets goes into municipal securities: debt issued by states, cities, agencies and authorities whose interest is exempt from regular federal income tax. At least 80% must be investment grade, meaning rated Baa3/BBB- or better by at least one rating agency, or judged of comparable quality if unrated. The managers favor bonds that pay for basic infrastructure or critical local services. They buy from issuers in at least 10 states and emphasize states with growing populations and healthy job markets.
The key rule is a weighted average duration under one year. Duration measures price sensitivity: each year of duration means roughly a 1% price move for every 1-point change in interest rates. Average stated maturity was 5.3 years as of July 31, 2026, which is longer than the duration. That is because the fund can own variable- and floating-rate bonds whose interest rates reset, such as holdings maturing in 2048 and 2063.
As of July 31, 2026, the fund held 240 bonds, and the top 10 made up 8.48% of assets. The largest were Cumberland County Finance Corp. (North Carolina) at about 1.0%, Miami-Dade County Expressway Authority and Dallas-Fort Worth International Airport. Turnover was 113%. The fund handles most creations and redemptions in cash, which can make it less tax-efficient than ETFs that exchange securities instead.
What it really costs
- FUMB charges 0.45% a year, versus an average of 0.2% 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
Its duration is under one year and its deepest drop was 2.7%, so it works more as a low-volatility place to park money than as a source of growth.
FUMB launched in November 2018, so it has no record from 2008. Its deepest drop was 2.7%, from March 9 to March 20, 2020, and it had recovered by March 26. In the 2022 bear market it fell about 1% and took 6.7 months to recover, by December 1, 2022. Its worst calendar year was 2022, at -0.08% according to the prospectus. For someone who may need to sell in a bad year, that record shows small, short dips. As of October 27, 2026, it paid a 3.04% trailing yield in monthly payments. That income is generally free of regular federal income tax, which helps most in a taxable account rather than an IRA. Watch the cost (0.45%, against a 0.20% peer average) and the modest growth: 1.52% a year over five years as of December 31, 2024. Past results don't predict future returns, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors in higher tax brackets who want monthly income that is generally exempt from regular federal income tax, held in a taxable account.
- Retirees setting aside cash for near-term spending who can accept small dips like the 2.7% drop in March 2020.
- Investors who want managers to pick bonds across 240 holdings and at least 10 states, with duration kept under one year.
Look elsewhere if
- Cost-focused investors: the 0.45% expense ratio ranked 7th of 8 similar funds, and iShares Short-Term National Muni Bond ETF charges 0.07%.
- IRA or 401(k) savers, who get no benefit from tax-exempt interest and might compare taxable ultra-short bond funds instead.
- Investors seeking growth or inflation protection: five-year average return was 1.52% a year as of December 31, 2024.
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 |
|---|---|---|---|---|---|
| FUMB this fund | 5.3 yrs | 0.45% | $246.5M | +3.0% | +3.1% |
| SHM SPDR Nuveen Bloomberg Short Term Municipal … | 6.2 yrs | 0.2% | $3.47B | +1.2% | +3.3% |
| SUB iShares Short-Term National Muni Bond ETF | 3.3 yrs | 0.07% | $11.64B | +2.1% | +3.3% |
| JMST JPMorgan Ultra-Short Municipal Income ETF | 2.7 yrs | 0.18% | $7.36B | +2.5% | +3.3% |
| TAFI AB Tax-Aware Short Duration Municipal ETF | 8.7 yrs | 0.27% | $1.38B | +1.6% | +3.9% |
| FSMB First Trust Short Duration Managed Municipa… | 11.7 yrs | 0.55% | $621.7M | +1.7% | +3.8% |
| CMF iShares California Muni Bond ETF | 12.4 yrs | 0.08% | $4.63B | -0.6% | +3.8% |
| ICSH iShares Ultra Short-Term Bond Active ETF | 1.8 yrs | 0.08% | $8.14B | +3.5% | +4.9% |
Questions investors ask
Does FUMB pay monthly dividends?
Yes. FUMB pays income monthly. Over the 12 months to October 27, 2026, it paid about $0.61 per share, a trailing yield of 3.04%. The income comes from interest on the municipal bonds it owns, so it is generally exempt from regular federal income tax. Payments can rise or fall as short-term rates change, because many of its holdings are short-dated or have rates that reset.
Is FUMB income tax-free?
Mostly at the federal level. At least 80% of net assets normally goes into bonds whose interest is exempt from regular federal income tax. But the fund can own private activity bonds, and interest on those may be subject to the alternative minimum tax. The fund holds bonds from at least 10 states, so its income is generally not exempt from state income tax. It also handles redemptions mostly in cash, which can make it less tax-efficient than some ETFs.
FUMB vs SHM: what's the difference?
The main differences are approach and cost. FUMB is actively managed and keeps its duration under one year. SPDR Nuveen Bloomberg Short Term Municipal Bond ETF (SHM) is the closest match by maturity and issuer mix, and it charges 0.20% against FUMB's 0.45%. SHM held longer bonds, averaging 6.2 years to maturity versus 5.3. Through October 27, 2026, FUMB returned 3.0% over one year and SHM 1.2%, but over three years SHM's 3.3% a year edged FUMB's 3.1%.
Can FUMB lose money?
Yes, though its losses have been small. Its deepest drop was 2.7%, in March 2020, and it recovered within days. Its worst quarter was -0.8%, in the first quarter of 2022, and its worst calendar year was 2022 at -0.08%. The fund is not a bank deposit and is not FDIC insured. It carries credit risk if issuers fail to pay, plus interest-rate and call risk, but its short duration limits how much rate moves affect its price.
How much does FUMB cost compared with other muni ETFs?
FUMB charges a 0.45% expense ratio, per its November 2025 prospectus. That is more than double the 0.20% average for similar funds and ranks 7th of 8 on cost. By comparison, iShares Short-Term National Muni Bond ETF charges 0.07% and JPMorgan Ultra-Short Municipal Income ETF charges 0.18%. Fees come straight out of a bond fund's yield, so the gap matters when yields are about 3%.