At a glance
SMMU charges 0.35% a year, above the 0.26% average of the 7 funds most like it (the 6th cheapest of 8). It has $1.14B in assets, the 7th largest of that group; it paid 2.87% of its price in distributions over the past 12 months, monthly. Over the past year it returned +2.3% with distributions reinvested, the best of those 8 funds; over three years it returned +4.1% a year. At its worst it fell 5.1% in the 2020 crash (S&P 500: 33.7%) and 4.1% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 3 months and 14 months after the lows. Its ten largest positions make up 14.0% of the fund, out of 348 in all.
The short version
PIMCO Short Term Municipal Bond Active ETF (SMMU) is an actively managed fund. It holds investment-grade municipal bonds whose interest is generally exempt from federal income tax, and it keeps the portfolio's average duration at or below about three years. That short duration has kept its price swings small. Its 0.35% expense ratio is higher than the 0.26% average of the similar funds compared here.
Price history
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SMMU +2.3% 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 | |
|---|---|---|---|---|---|---|
| SMMU official prospectus, to Dec 31, 2025 | — | +4.15% | — | +1.77% | +1.82% | — |
| SMMU price data to Oct 27, 2026 | +1.8% | +2.3% | +4.1% | +2.2% | +2.0% | +1.6% |
- Over the year to Oct 27, 2026, SMMU returned +2.3%, 1st of 8 among similar funds.
- Its 5-year annualized return was +2.2% and its 10-year +2.0%.
- In the 2020 COVID crash it fell 5.1% and regained its old high 2.5 months after the low.
- Its worst full calendar year was 2022 (-2.4%); its best was 2023 (+5.0%).
- The deepest fall in its price history was 5.1% (Mar 9, 2020 to Mar 20, 2020), recovered by Jun 4, 2020.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +1.8% | — |
| 2025 | +4.1% | +4.15% |
| 2024 | +2.7% | +2.55% |
| 2023 | +5.0% | +4.44% |
| 2022 | -2.4% | -2.40% |
| 2021 | +0.2% | +0.27% |
| 2020 | +2.9% | +2.83% |
| 2019 | +3.5% | +3.43% |
| 2018 | +1.6% | +1.38% |
| 2017 | +2.4% | +1.99% |
| 2016 | -0.8% | -0.25% |
| 2015 | +1.2% | — |
| 2014 | +0.6% | — |
| 2013 | +0.2% | — |
| 2012 | +1.1% | — |
| 2011 | +2.1% | — |
| 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 4.3% over that stretch · deepest drop along the way 5.1%, back to its old high 2.5 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 3.6% over that stretch · deepest drop along the way 4.1%, back to its old high 13.5 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $1.0700 | |
| 2025 | $1.4100 | -6.6% |
| 2024 | $1.5100 | -9.6% |
| 2023 | $1.6700 | +138.6% |
| 2022 | $0.7000 | +125.8% |
| 2021 | $0.3100 | -50.0% |
| 2020 | $0.6200 | -34.0% |
| 2019 | $0.9400 | +10.6% |
| 2018 | $0.8500 | +18.1% |
| 2017 | $0.7200 | +46.9% |
| 2016 | $0.4900 | +2.1% |
| 2015 | $0.4800 | +37.1% |
| 2014 | $0.3500 | +21.5% |
| 2013 | $0.2880 | -48.1% |
| 2012 | $0.5544 | +6.6% |
| 2011 | $0.5200 |
What's inside
As of Jun 30, 2026, the fund held 348 securities; the ten largest made up 14.03% of assets.
| Holding | Weight | |
|---|---|---|
| United States Treasury Bonds and notes | 2.24% | |
| United States Treasury Bonds and notes | 1.81% | |
| Connecticut State Health & Educational Facilities Authority Bonds and notes | 1.75% | |
| New York City Municipal Water Finance Authority Bonds and notes | 1.34% | |
| Fort Bend Independent School District Bonds and notes | 1.25% | |
| Tarrant County Cultural Education Facilities Finance Corp Bonds and notes | 1.22% | |
| United States Treasury Bonds and notes | 1.19% | |
| Miami-Dade County Housing Finance Authority Bonds and notes | 1.10% | |
| Connecticut State Health & Educational Facilities Authority Bonds and notes | 1.09% | |
| Connecticut State Health & Educational Facilities Authority Bonds and notes | 1.04% | |
| Oklahoma City Public Property Authority Bonds and notes | 0.96% | |
| Massachusetts Development Finance Agency Bonds and notes | 0.96% | |
| FED HOME LN DISCOUNT NT Bonds and notes | 0.89% | |
| Harris County Cultural Education Facilities Finance Corp Bonds and notes | 0.88% | |
| Development Authority of Burke County Bonds and notes | 0.87% |
By country
United States 98.87%By issuer
Municipalities 87.32%US Treasury 6.25%US government-sponsored enterprises 5.3%The bonds mature in 13.9 years on average (weighted by size), with an average coupon of 3.86%.
Source: N-PORT holdings report as of Jun 30, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Jun 30, 2026, investors added a net $92.7M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +0.30%, +0.24%, +0.29%.
How it works
SMMU does not track an index. Managers at Pacific Investment Management Company (PIMCO) choose the bonds. At least 80% of assets go into municipal bonds, which are debt issued by states, cities and their agencies. At the time each bond was issued, the issuer's bond counsel judged its interest to be exempt from federal income tax. The fund avoids bonds whose interest is subject to the alternative minimum tax. It may buy only investment-grade debt, rated Baa or higher by Moody's or the equivalent. When rating agencies disagree, PIMCO uses the highest rating. The manager looks for bonds with consistently attractive yields or competitive prices.
Duration measures how much a bond's price moves when interest rates change. The fund's average duration is not expected to exceed three years, and neither is its dollar-weighted average maturity. As of June 30, 2026, it held bonds from 348 issuers: 87.32% municipalities, 6.25% U.S. Treasuries and 5.3% government-sponsored enterprises. The two largest positions were Treasury notes at 2.24% and 1.81%. Next came Connecticut State Health & Educational Facilities Authority bonds at 1.75%. The top 10 made up 14.03% of the fund.
The fund may use derivatives and forward-settling trades, which can create leverage. Its June 30, 2026 report showed no derivatives. Portfolio turnover was 34%.
What it really costs
- SMMU charges 0.35% a year, versus an average of 0.26% for the similar funds below (6th of 8, cheapest first).
- Using the prospectus's standard example, $10,000 invested would cost about $36 in the first year and $443 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| SMMU | $36 | $113 | $197 | $443 |
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 holds short-duration, investment-grade municipal bonds that have moved far less than stocks, and it pays tax-exempt income monthly.
SMMU could serve as a steady, tax-aware place for money a retiree expects to spend within a few years. Its losses have been modest but not zero. In the 2020 COVID crash it fell 5.1% between March 9 and March 20, 2020, its deepest drop on record, and it recovered by June 4, 2020. In the 2022 bear market it lost 4.1% and took about 13.5 months to recover, until November 14, 2023. Its worst calendar year was 2022, at -2.4%. Its price history doesn't go back to 2008. A retiree who had to sell in 2022 would have locked in a small loss. The trailing 12-month yield was 2.87% as of October 27, 2026, paid monthly. Costs are $36 in the first year on $10,000 under the SEC's standard example. 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
- Investors in higher tax brackets who want monthly income that is generally exempt from federal income tax and comes from investment-grade bonds.
- Retirees setting aside cash needs for the next few years, given its sub-three-year duration and worst calendar year of -2.4% in 2022.
- Investors who prefer active selection by PIMCO across 348 issuers to a fixed index of municipal bonds.
Look elsewhere if
- Cost-focused investors. Its 0.35% expense ratio is well above MUB's 0.05% and VTEB's 0.03%.
- Investors in low tax brackets or tax-deferred accounts, where the tax-exempt feature of municipal income adds little value.
- Investors who need growth or a fund that has never lost money. It lost 4.1% in 2022 and took 13.5 months to recover.
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 |
|---|---|---|---|---|---|
| SMMU this fund | 13.9 yrs | 0.35% | $1.14B | +2.3% | +4.1% |
| MUB iShares National Muni Bond ETF | 13.5 yrs | 0.05% | $45.38B | -0.2% | +3.7% |
| VTEB Vanguard Tax-Exempt Bond ETF | 14.5 yrs | 0.03% | $48.52B | +0.1% | +4.4% |
| TFI SPDR Nuveen Bloomberg Municipal Bond ETF | 15.1 yrs | 0.23% | $3.12B | -0.8% | +3.9% |
| CMF iShares California Muni Bond ETF | 12.4 yrs | 0.08% | $4.63B | -0.6% | +3.8% |
| MEAR iShares Short Maturity Municipal Bond Activ… | 13.1 yrs | 0.25% | $1.36B | +1.9% | +3.3% |
| FMB First Trust Managed Municipal ETF | 15.5 yrs | 0.65% | $2.05B | 0.0% | +4.3% |
| FSMB First Trust Short Duration Managed Municipa… | 11.7 yrs | 0.55% | $621.7M | +1.7% | +3.8% |
Questions investors ask
Is SMMU tax-free?
Mostly, at the federal level. At least 80% of assets go into municipal bonds whose interest is exempt from federal income tax, and the fund avoids bonds subject to the alternative minimum tax. As of June 30, 2026, though, about 6.25% sat in U.S. Treasuries and 5.3% in government-sponsored enterprise debt. Interest from those holdings is not federally tax-exempt. State tax treatment depends on where you live and which states issued the bonds.
Does SMMU pay monthly dividends?
Yes. SMMU pays income monthly. Over the 12 months to October 27, 2026, it paid $1.44 per share, a trailing yield of 2.87%. That income comes from interest on short-term municipal bonds, so the amount can change from month to month as the bonds in the portfolio, and interest rates, change.
What's the difference between SMMU and MEAR?
Both are actively managed short-term municipal bond ETFs. MEAR, the iShares Short Maturity Municipal Bond Active ETF, is cheaper, with a 0.25% expense ratio against SMMU's 0.35%. SMMU had the higher returns as of October 27, 2026: 2.3% over one year versus MEAR's 1.9%, and 4.1% a year over three years versus 3.3%. The two funds are similar in size, with SMMU at $1.14 billion and MEAR at $1.36 billion in their latest reports.
How much did SMMU lose in 2022?
SMMU returned -2.4% in calendar 2022, its worst year, according to its prospectus. Its worst quarter was the first quarter of 2022, at -2.42%. From its January 3, 2022 high to its September 29, 2022 low, the price fell 4.1%. It took about 13.5 months to recover, regaining its high by November 14, 2023. Rising interest rates pushed bond prices down that year.
Is SMMU more expensive than MUB or VTEB?
Yes. SMMU's expense ratio is 0.35%, compared with 0.05% for MUB and 0.03% for VTEB. Under the SEC's standard example, $10,000 in SMMU would cost about $36 in the first year and $443 over 10 years. SMMU's return over the year to October 27, 2026 was 2.3%. MUB returned 0.2% and VTEB 0.1% over the year to October 30, 2026. MUB and VTEB are broad, index-based national municipal bond funds, not short-term funds.