(FUMB) First Trust Ultra Short - Ratings and Ratios

The First Trust Ultra Short Duration Municipal ETF (FUMB) is designed to invest at least 80% of its net assets in municipal debt securities that are exempt from regular federal income taxes, targeting a portfolio duration of less than one year. This indicates a focus on short-term, tax-efficient investments.

Given its investment objective, FUMB is likely to appeal to investors seeking low-risk, short-term municipal bond exposure with tax advantages. The funds ultra-short duration suggests it is positioned to be relatively insensitive to interest rate changes, making it a potentially stable choice in volatile markets.

To evaluate FUMBs performance, key metrics to consider include its Yield to Maturity (YTM), which would indicate the total return an investor can expect if they hold the fund until maturity, and its expense ratio, which affects net returns. Additionally, the funds credit quality, as measured by the average credit rating of its holdings, is crucial for assessing the risk of default.

Comparing FUMB to its peers in the Muni National Short ETF category can provide insights into its relative performance, including its returns over various periods (e.g., 1-year, 3-year, 5-year), its Sharpe Ratio, which measures risk-adjusted returns, and its tracking error against relevant municipal bond indices.

FUMBs Assets Under Management (AUM) of $207 million indicates a moderate level of investor interest. While not as large as some ETFs, it is sufficiently sizable to provide liquidity. Investors should monitor the funds liquidity, trading volume, and bid-ask spreads to ensure they can enter or exit positions efficiently.