First Trust Municipal High Income ETF

Frequently Asked Questions About FMHI

What does FMHI invest in?

The First Trust Municipal High Income ETF operates as an actively managed exchange-traded fund. Its primary goal is to generate income that is exempt from regular federal income taxes, with a secondary focus on achieving long-term capital appreciation. Typically, to achieve these aims, the Fund commits a minimum of 80% of its net assets (including any borrowed capital) to municipal debt securities. These are commonly referred to as "Municipal Securities" and are characterized by interest payments that are free from federal income tax.

What is the expense ratio of FMHI?

First Trust Municipal High Income ETF (FMHI) charges an expense ratio of 0.49%. This is the annual fee deducted from fund assets to cover management and operations.

What is FMHI's dividend yield?

FMHI's trailing-twelve-month yield is 4.40%, calculated from the sum of dividends over the past year divided by the current price.

What is the duration of FMHI?

Effective duration measures FMHI's sensitivity to interest-rate changes — a duration of 6 means a 1% rate move shifts NAV by roughly 6% in the opposite direction. FMHI's current duration is published on the fund's factsheet on the issuer's website.

What is the credit quality of FMHI?

FMHI's credit quality breakdown — the share of holdings rated AAA through CCC and below — is published on the fund's factsheet. Higher-quality (investment-grade) funds yield less but carry less default risk than high-yield / junk bond funds.

What is the yield to maturity of FMHI?

Yield to maturity (YTM) is the total return you'd earn from FMHI if every bond in the portfolio is held to maturity at the current price. FMHI's YTM is published on the fund's factsheet on the issuer's website — it differs from the trailing-12-month yield because YTM reflects current bond prices rather than historical income paid.