SPDR Nuveen Bloomberg Short Term Municipal Bond ETF

The State Street SPDR Nuveen ICE Short Term Municipal Bond ETF (SHM) tracks the ICE 1-5 Year AMT-Free Broad Municipal Index: higher-rated state and local bonds maturing in one to five years, with interest generally free of federal income tax. Short maturities usually mean milder price swings than longer-term municipal funds, though it lost 3.8% in 2022. Its 0.20% fee is below the 0.24% peer average but well above iShares' SUB at 0.07%.

• Over the year to Oct 27, 2026, SHM returned +1.2%, 6th of 8 among similar funds.
• Its 5-year annualized return was +1.0% and its 10-year +1.2%.
• In the 2020 COVID crash it fell 11.6% and regained its old high 2 months after the low.
• Its worst full calendar year was 2022 (-3.8%); its best was 2008 (+6.0%).
• The deepest fall in its price history was 11.6% (Mar 9, 2020 to Mar 19, 2020), recovered by May 19, 2020.

As of Jun 30, 2026, the fund held 1,045 securities; the ten largest made up 5.34% of assets.

The bonds mature in 6.2 years on average (weighted by size), with an average coupon of 4.82%.

• Over the three months to Jun 30, 2026, investors added a net $23.7M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +0.28%, +0.20%, +0.35%.

State Street's SSGA Funds Management runs the fund, and Nuveen Asset Management picks the bonds as sub-adviser. The fund tracks the ICE 1-5 Year AMT-Free Broad Municipal Index. To get into the index, a bond must be tax-exempt at the federal level and priced in US dollars. It must also have an average rating of Baa3/BBB- or higher from Moody's, S&P and Fitch, which is the lowest investment-grade rating. It can't be subject to the alternative minimum tax (a separate federal tax that can catch some muni interest). It needs a fixed interest rate, 1 to 5 years left until it matures, and a minimum issue size.

The index weights each bond by its market value. It is rebalanced on the last calendar day of each month. Bonds leave once they have less than a year left, and newer bonds take their place. The index held 15,054 securities as of July 31, 2026. The fund buys only a sample of them. It held 1,045 as of June 30, 2026, and its ten largest made up 5.34% of assets.

The bonds include general obligation bonds, which are backed by the issuer's full faith and credit. They also include revenue bonds, which are repaid from one source of money, plus pre-refunded and insured bonds. At least 80% of assets must be in index bonds, and at least 80% in investments whose income is exempt from federal tax.

• SHM charges 0.2% a year, versus an average of 0.24% for the similar funds below (5th of 8, cheapest first).
• Using the prospectus's standard example, $10,000 invested would cost about $20 in the first year and $255 over 10 years (assuming a 5% annual return).

Its short-maturity, investment-grade muni bonds have usually moved far less than stocks, though it has still had losses.

SHM could hold money that will be needed within a few years and earn income that is generally free of federal tax along the way. It paid $1.29 per share over the 12 months to October 27, 2026, a 2.72% yield, and it pays monthly. Its losses have been small but real. In the COVID crash it fell 11.6% between March 9 and March 19, 2020, and recovered by May 19. The 2022 rate rise took longer to undo. A 5.9% decline didn't fully recover until August 2, 2024, about 22 months later, and 2022 was its worst calendar year at -3.8%. A retiree selling shares during that stretch would have taken a loss. The SEC's standard example puts the cost at $20 in the first year on $10,000. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.

Matched by bond funds with the closest average maturity and issuer mix (N-PORT).