New ETF delivers access to short-duration investment-grade municipal bonds near call dates, offering federally tax-exempt income with lower duration risk.
WASHINGTON – October 8, 2025 - F/m Investments (“F/m”), an $18 billion investment firm and an innovative provider of exchange-traded funds (ETFs), today announced the launch of the F/m Ultrashort Tax-Free Municipal ETF (NASDAQ: ZMUN). Designed to track the Bloomberg Municipal Bond Currently Callable Index, ZMUN is the first ETF dedicated to callable municipal bonds, offering investors efficient exposure to a targeted segment of the municipal bond market, unlocking opportunities for attractive tax-free income with reduced interest rate sensitivity.
Traditionally, investors seeking tax-free income have had to compromise to achieve attractive yields, accepting longer-duration muni exposure with volatility, or taking on additional credit risk. ZMUN solves this problem by focusing exclusively on high-quality municipal bonds at or near their call dates, delivering a blend of steady, federally tax-exempt income with desirable yields, monthly distributions, and portfolio stability.
“With ZMUN, we’re making it possible for a broader range of income seeking investors to access a portfolio of quality, short duration callable municipal bonds,” said Alexander Morris, F/m Investments CEO. “By targeting high-coupon municipal bonds near call dates, ZMUN seeks to deliver compelling yields with reduced duration risk. This strategy reflects our continued commitment to expanding investor access to precise, efficient tools across the fixed income spectrum.”
Key Features
- Tax-Free Yield - Seeks to provide enhanced income that is federally tax-exempt.
- Additional Tax Efficiency - ZMUN’s ETF structure helps defer taxable capital gains when bond prices increase.
- High Quality - Tracks an index with an average AA credit profile by Moody’s.
- Low Duration - Duration of less than one year limits interest rate sensitivity.
- Monthly Cashflow – ZMUN's monthly1 dividend payments are more frequent than the semi-annual payments of its underlying securities.
ZMUN can serve for some investors as a cash allocation option. With an average duration of less than one year, ZMUN can be a tax efficient alternative to money market funds.
“The launch of ZMUN comes at a pivotal moment for municipal bonds, as record issuance and policy uncertainty have elevated yields for high-quality issuers and investors are seeking to lock in federally tax-exempt income before expected Fed rate cuts,” said Justin Henessey, Portfolio Manager at F/m Investments. “By focusing on callable, investment-grade munis with ultrashort duration, we believe ZMUN is well-positioned to meet this demand and provide efficient access to a timely opportunity.”
ZMUN tracks the Bloomberg Municipal Bond Currently Callable Index, developed in collaboration between F/m and Bloomberg to bring structure and transparency to this specialized segment of the municipal market.
“Bloomberg Indices is proud of our collaboration with F/m to create the Municipal Bond Currently Callable Index and with it deliver to investors and advisors a new way to access callable munis with confidence through their ETF wrapper,” said Nick Gendron, Global Head of Fixed Income Index Product Management, Bloomberg Index Services Limited.
ZMUN joins F/m’s growing suite of innovative fixed-income ETFs, which includes the U.S. Benchmark Series, the U.S. Credit Series, and the Compoundr Series. With over $18 billion in assets under management, F/m continues to deliver tools that help investors and advisors manage risk, optimize income, and enhance portfolio efficiency.
About F/m Investments
F/m Investments, founded in 2018, is an independent asset management firm and a recognized innovator in exchange-traded funds (ETFs). The Firm offers a growing suite of ETFs, as well as mutual funds and separately managed account strategies, designed to meet the evolving needs of financial advisors, institutions, and individual investors. For more information, please visit www.fminvest.com.
Media Contact:
Tucker Slosburg
Lyceus Group
fmpr@lyceusgroup.com
(206) 635-4196