First Trust Managed Municipal ETF (FMB)

ETF First Trust Managed Municipal ETF (FTB) Summary:

Profile: FTB is an actively managed ETF that invests primarily in intermediate-term and long-term investment-grade municipal bonds. It seeks to maximize total return through a combination of current income and capital appreciation.

Objective: The primary objective of FTB is to generate high current income exempt from federal income tax.

Issuer: First Trust Advisors LP is the issuer of FTB. They are a leading provider of exchange-traded funds (ETFs), with over $185 billion in assets under management.

Reputation and Reliability: First Trust has a strong reputation in the ETF industry, with a long track record of success. They are known for their innovative ETF products and commitment to investor education.

Management: The ETF is actively managed by a team of experienced portfolio managers at First Trust. The team has extensive experience in managing municipal bond portfolios.

Market Share: FTB has a market share of approximately 1.5% in the actively managed municipal bond ETF segment.

Total Net Assets: FTB has approximately $3.5 billion in assets under management.

Moat: The ETF's competitive advantages include its active management approach, experienced portfolio management team, and focus on high-quality municipal bonds.

Financial Performance: FTB has a strong track record of performance, outperforming its benchmark index and most of its peers over the past 3 and 5 years.

Benchmark Comparison: FTB has outperformed its benchmark index, the ICE BofAML US Municipal Bond 10+ Year Index, by an average of 0.5% per year over the past 3 and 5 years.

Growth Trajectory: The ETF has experienced steady growth in assets under management over the past few years. This trend is expected to continue as investors continue to seek tax-exempt income.

Liquidity: The ETF has a high average trading volume and a tight bid-ask spread, making it easy to buy and sell shares.

Market Dynamics: The market environment for municipal bonds is positive, with low interest rates and strong demand from investors. This is expected to continue to support the ETF's performance.

Competitors: The ETF's main competitors include iShares National AMT-Free Muni Bond ETF (MUB) and Vanguard Tax-Exempt Bond ETF (VTEB).

Expense Ratio: The ETF has an expense ratio of 0.50%.

Investment Approach and Strategy: The ETF actively manages its portfolio to achieve its investment objective. The portfolio managers select individual municipal bonds based on their credit quality, maturity, and yield.

Composition: The ETF invests primarily in investment-grade municipal bonds with maturities of 10 years or more.

Key Points:

• Actively managed for high current income.
• Invests in investment-grade municipal bonds.
• Strong track record of performance.
• High liquidity.

Risks:

• Interest rate risk: Changes in interest rates can affect the value of the ETF's holdings.
• Credit risk: The ETF invests in municipal bonds, which are subject to credit risk.
• Market risk: The ETF is subject to market risk, which means that its value can fluctuate.

Who Should Consider Investing: FTB is a good option for investors who are looking for high current income that is exempt from federal income tax. The ETF is also suitable for investors who are seeking a portfolio diversification tool.

Fundamental Rating Based on AI: 8.5/10

FTB receives a high rating based on its strong financial performance, competitive advantages, and experienced management team. The ETF is also well-positioned to benefit from the positive market environment for municipal bonds.

Resources and Disclaimers:

• First Trust Managed Municipal ETF (FTB) website: https://www.firsttrust.com/etf-funds/ftb-first-trust-managed-municipal-etf
• Morningstar: https://www.morningstar.com/etfs/arcx/ftb/performance
• ETF Database: https://etfdb.com/etf/FTB/ Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.