Baird Short-Term Municipal Bond Fund
Baird Funds Inc · 2 share classes
Fund classification
Classified from what the fund holds · as of 2026 Q2
Baird Short-Term Municipal Bond Fund is a U.S. bond index fund that tracks the Bloomberg 1-5 Year Short Municipal Index.
- Asset class
- Bonds
- Region
- United States
- Management
- Index (passive)
- Fund type
- Open-end fund
- Credit quality
- Investment grade
- Rate sensitivity
- Short duration
Fund profile
As filed in the prospectus · 2026 Q2
The investment objective of the Baird Short-Term Municipal Bond Fund (the Fund) is to seek current income that is exempt from federal income tax and is consistent with the preservation of capital.
The fund invests at least 80% of its net assets in federally tax-exempt municipal bonds, maintaining a portfolio duration aligned with the Bloomberg 1-5 Year Short Municipal Index (2.36 years as of March 2026) and targeting a dollar-weighted average effective maturity between three months and three years. The advisor selects securities based on credit quality, interest rate outlook, yield curve positioning, tax considerations, sector valuations, and regional economic conditions, with up to 10% permitted in non-investment grade obligations. Because the fund may hold obligations that are unrated, downgraded after purchase, or in partial default, credit quality can diverge from initial assessments.
| Share class | Expense ratio |
|---|---|
| BTMIX | 0.30% |
| BTMSX | 0.55% |
Portfolio turnover 27.00% · as of 2026 Q2
Allocation
Asset groups · long / short shown separately, never netted · 2026 Q2
| Bonds | 97.14% |
| Cash & short-term | 2.56% |
Latest quarter
What changed since the fund's previous filing
Largest new: US TREASURY N/B ×2, CALIFORNIA ST MUNI FIN AUTH RE, WASHINGTON ST HSG FIN COMMISSI, ENERGY S E AL A COOPERATIVE DI, FORT BEND TX INDEP SCH DIST, BLACK BELT ENERGY GAS DIST AL, BALDWIN CITY KS
Largest exited: US TREASURY N/B, MOBILE AL INDL DEV BRD POLL CO, ILLINOIS ST SALES TAX REVENUE, WILLIAMSON JACKSON ETC CNTYS I, INLIVIAN NC MF REVENUE, COLORADO ST HLTH FACS AUTH REV, MAIN STREET NATURAL GAS INC GA, ARLINGTON TX HSG FIN CORP MF H
Return profile
Total return as filed — price change plus distributions reinvested · trailing figures to Apr 2026
| Share class | 1-year | 3-year | 5-year | Vol | Worst fall |
|---|---|---|---|---|---|
| +4.70% | +12.08% | +9.65% | 1.63% | -1.12% | |
| +4.33% | +11.27% | +8.31% | 1.61% | -1.28% |
These classes hold the same portfolio, so the 1.33pp spread over 5 years is the cost difference between them — roughly 0.27pp a year — not a difference in what they own.
May 2026 and Jun 2026 have been filed since the trailing figures were struck, so they are not in the table above or the curve — every figure here shares one cut-off, which is what makes them comparable with other funds.
Debt profile
What this fund holds — value-weighted across its bond and securitized long positions · as of 2026-06-30
Share of the fund's debt by how its coupon behaves — the fact that decides whether a rate move reaches this portfolio at all.
| Fixed rate | 79.7% |
| Floating rate | 20.3% |
Share of the fund's debt value in each maturity band, shortest first.
| <1y | 8.3% |
| 1-3y | 21.6% |
| 3-5y | 21.5% |
| 5-10y | 21.5% |
| 10y+ | 27.2% |
These three overlap — one holding can be in arrears and paying in kind at once — so they are shown separately and never summed.
Risk profile
Interest-rate and credit-spread sensitivity, both in years · as of 2026Q2
Most of this fund’s sensitivity is to interest rates, with credit spreads carrying nearly as much.
Where the loss would come from. The two shocks are the same size, so this is the balance of the fund's two sensitivities rather than a bet on one moving more.
| Interest rates | 51% |
| Credit spreads | 49% |
Filers report the impact of a 0.01% move only, so the total is our own scaling of that one number and overstates the loss on most bonds — read it as approximate, never as precise. The two sensitivities overlap rather than add up: they measure the same positions against different shocks, which is why the durations above are shown side by side and never summed.
Share of the fund's spread duration carried by each credit tier.
| Investment grade | +2.07 yr |
| High yield | +0.15 yr |
Share of duration at each point, shortest first. A positive figure loses value when spreads widen; a negative one offsets — a credit hedge.
| 3 mo | 0.07 yr | 3% |
| 1 yr | 0.73 yr | 32% |
| 5 yr | 1.28 yr | 55% |
| 10 yr | 0.23 yr | 10% |
| 30 yr | 0.00 yr | 0% |
| 3 mo | 0.03 yr | 1% |
| 1 yr | 0.50 yr | 22% |
| 5 yr | 1.20 yr | 54% |
| 10 yr | 0.47 yr | 21% |
| 30 yr | 0.02 yr | 1% |
The two bands measure the same positions against different shocks and do not add — a Treasury carries rate duration and no spread duration, a floating-rate credit the reverse. Rate tenors are also summed across every currency the fund discloses.
Show the numbers
| Tenor | Rate yrs | IG yrs | HY yrs | IG $/bp | HY $/bp |
|---|---|---|---|---|---|
| 3 mo | +0.07 | +0.02 | +0.00 | $5.6k | $830 |
| 1 yr | +0.73 | +0.47 | +0.03 | $110.9k | $5.9k |
| 5 yr | +1.28 | +1.13 | +0.07 | $266.5k | $16.9k |
| 10 yr | +0.23 | +0.42 | +0.05 | $99.1k | $11.8k |
| 30 yr | +0.00 | +0.02 | +0.00 | $4.9k | $11 |
Dollar change per 1bp of spread movement, as filed and sign-anchored. A blank cell was not filed; a zero was.
Holdings
By % of NAV · equity positions carry filed share counts · every resolvable issuer links to its company page
| Ticker | Issuer | %NAV | Value | Shares |
|---|---|---|---|---|
| — | Federated Institutional Tax-Fr | 2.56% | $60.37M | — |
| — | US TREASURY N/B4.00% · due 2030-07-31 | 1.47% | $34.75M | — |
| — | RURAL WTR FING AGY KY PUBLIC P2.88% · due 2028-08-01 | 0.46% | $10.93M | — |
| — | PUBLIC FIN AUTH WI REVENUE4.00% floating · due 2055-01-01 | 0.44% | $10.41M | — |
| — | TEXAS ST TRANSPRTN COMMISSION5.00% floating · due 2042-08-15 | 0.44% | $10.32M | — |
| — | HARRIS CNTY TX CULTURAL EDU FA5.00% floating · due 2050-05-15 | 0.44% | $10.29M | — |
| — | MARYLAND ST3.00% · due 2032-08-01 | 0.42% | $9.97M | — |
| — | SEATTLE WA MUNI LIGHT & PWR RE2.92% floating · due 2045-05-01 | 0.41% | $9.79M | — |
| — | VAN WERT CNTY OH HOSP FACS REV6.13% · due 2049-12-01 | 0.41% | $9.72M | — |
| — | NEW YORK CITY NY HSG DEV CORP3.40% floating · due 2062-11-01 | 0.39% | $9.27M | — |
Top 10 positions are 7.46% of net assets, top 25 12.64%, across 942 issuers.
See more of this fund's book
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