First Trust Managed Municipal ETF

First Trust Exchange-Traded Fund III · 1 share class

Actively managed U.S. bond ETF
One fund, 1 share class:FMB
$2.01B NAV
1,256 positions · as of 2026-04-30 · filed 2026-06-22

Fund classification

Classified from what the fund holds · as of 2026 Q2

First Trust Managed Municipal ETF is an actively managed U.S. bond ETF.

Asset class
Bonds
Region
United States
Management
Actively managed
Fund type
ETF
Credit quality
Investment grade
Rate sensitivity
Intermediate duration

Fund profile

As filed in the prospectus · 2026 Q1

The First Trust Managed Municipal ETFs (the Fund ) primary investment objective is to generate current income that is exempt from regular federal income taxes and its secondary objective is long term capital appreciation.

Strategy · summarised

The fund invests at least 80% of assets in federal tax-exempt municipal debt securities, selecting bonds through analysis of interest rate and credit spread scenarios, sector positioning, new issue credit quality, secondary market tradability, and ongoing credit surveillance. At least 65% of assets must be in investment-grade securities at purchase, though the fund may hold up to 35% in below-investment-grade bonds and may retain securities that decline in credit quality after purchase. Because credit quality can deteriorate after purchase, holdings may drift below the investment-grade threshold without triggering forced sales.

Expenses
0.39%one share class
Share classExpense ratio
FMB0.39%

Portfolio turnover 32.00% · as of 2026 Q1

Allocation

Asset groups · long / short shown separately, never netted · 2026 Q2

99.44%
of net assets
Bonds99.44%

Latest quarter

What changed since the fund's previous filing

2026Q2 vs 2026Q1: 85 new39 exited

Largest new: CONNECTICUT ST HEALTH & EDL FACS AUTH, BLACK BELT ENERGY GAS DISTRICT (THE) (AL) ×3, ENERGY SOUTHEAST A COOPERATIVE DISTRICT (AL), PHILADELPHIA PA REDEV AUTH, KENTUCKY HSG CORP, HOUSTON TEX

Largest exited: KALAMAZOO MI HOSP FIN AUTH, MONROE CNTY GA DEV AUTH POLL C, OHIO ST, MISSION TX ECON DEV CORP SOL W, ILLINOIS ST HSG DEV AUTH MF HS, MISSOURI ST HLTH & EDUCTNL FAC, KENTUCKY ST PUBLIC ENERGY AUTH, CMNTY DEV ADMIN MD MF DEV REVE

Return profile

Total return as filed — price change plus distributions reinvested · trailing figures to Apr 2026

1-year
+6.06%
3-year
+11.06%
5-year
+3.87%
Volatility
3.80%
Worst 3-yr fall
-4.15%
Cumulative return· May 2023 – Apr 2026

Debt profile

What this fund holds — value-weighted across its bond and securitized long positions · as of 2026-04-30

Avg coupon
4.75%
Avg maturity
15.69 yr
Coupon type

Share of the fund's debt by how its coupon behaves — the fact that decides whether a rate move reaches this portfolio at all.

13%
floating
Fixed rate82.2%
Floating rate13.1%
Zero-coupon or unclassified4.7%
Maturity ladder

Share of the fund's debt value in each maturity band, shortest first.

<1y10y+
<1y0.5%
1-3y1.3%
3-5y2.4%
5-10y13.6%
10y+82.2%
Flagged holdings
Defaulted: 0.20% · $4.08M · 5 positions
In arrears: none reported
Paid in kind: none reported

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

More of this fund’s sensitivity sits in credit spreads than in interest rates — a rate rally that comes with a credit selloff works against it.

Interest-rate duration
6.34 yr
approx. move per 100bp
Credit-spread duration
6.41 yr
approx. move per 100bp
If rates and spreads both rise 100bp

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.

≈ -12.5%
of value
Credit spreads50%
Interest rates50%

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.

Credit risk by quality

Share of the fund's spread duration carried by each credit tier.

+6.41
yrs total
Investment grade+6.29 yr
High yield+0.12 yr
Where the risk sits on the curve

Share of duration at each point, shortest first. A positive figure loses value when spreads widen; a negative one offsets — a credit hedge.

Interest rate6.34 yr total
3 mo30 yr
3 mo0.02 yr0%
1 yr0.40 yr6%
5 yr1.64 yr26%
10 yr3.51 yr55%
30 yr0.77 yr12%
Credit spread6.41 yr total
3 mo30 yr
3 mo0.01 yr0%
1 yr0.25 yr4%
5 yr2.30 yr36%
10 yr3.81 yr59%
30 yr0.04 yr1%

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
TenorRate yrsIG yrsHY yrsIG $/bpHY $/bp
3 mo+0.02+0.01+0.00$2.7k$210
1 yr+0.40+0.23+0.01$46.8k$2.8k
5 yr+1.64+2.24+0.06$450.7k$11.4k
10 yr+3.51+3.76+0.05$756.2k$10.3k
30 yr+0.77+0.04+0.00$7.3k$63

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

Issuer%NAVValue
MEADE CNTY KY3.80% floating · due 2061-08-010.81%$16.20M
MAIN STREET NATURAL GAS INC (GA)4.00% floating · due 2052-09-010.73%$14.73M
BLACK BELT ENERGY GAS DISTRICT (THE) (AL)4.00% floating · due 2052-10-010.50%$10.12M
NEW YORK CITY TRANSITIONAL FINANCE AUTHORITY (THE) (NY)4.00% · due 2037-11-010.50%$10.09M
TEXAS MUNICIPAL GAS ACQUISITION AND SUPPLY CORP IV (TX)5.50% floating · due 2054-01-010.46%$9.30M
ENERGY SOUTHEAST A COOPERATIVE DISTRICT (AL)5.50% floating · due 2053-11-010.46%$9.24M
ATLANTA (GA), CITY OF4.00% · due 2037-07-010.45%$8.96M
DORMITORY AUTHORITY OF THE STATE OF NEW YORK (NY)5.00% · due 2038-03-150.41%$8.34M
SOUTHEAST ENERGY AUTHORITY (AL)4.00% floating · due 2051-11-010.41%$8.27M
PUERTO RICO SALES TAX FINANCING CORP4.50% · due 2034-07-010.41%$8.26M
Showing 10 of 1,256Sign in to see more

Top 10 positions are 5.15% of net assets, top 25 9.94%, across 657 issuers.

See more of this fund's book

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