TrueWealth Financial Buys $12 Million of First Trust Managed Municipal ETF
Key Points
On February 04, 2026, TrueWealth Financial Partners disclosed a new position in First Trust Managed Municipal ETF (NASDAQ:FMB), making it one of the firm’s top holdings as reported in its 13F for the fourth quarter.
What happened
According to a SEC filing dated February 04, 2026, TrueWealth Financial Partners purchased 248,749 shares. The estimated transaction value, based on the average trading pricing during the quarter, was $12.7 million. This made FMB a top position in the fund, representing 11% of reported assets under management (AUM).
What else to know
- Top holdings after the filing:
- NYSEMKT:SPIB: $12.8 million (10.6% of AUM)
- NYSEMKT: FMB: $12.7 million (10.5% of AUM)
- NYSEMKT:DFAX: $8.2 million (6.8% of AUM)
- NYSEMKT:DFAC: $6.4 million (5.3% of AUM)
- NYSEMKT:SPTM: $6.3 million (5.2% of AUM)
- As of February 04, 2026, shares were priced at $51.54, up 4.27% over the past year, underperforming the S&P 500 by 11.2 percentage points.
- The fund’s dividend yield stood at 3.36% as of February 05, 2026.
ETF overview
| Metric | Value |
|---|---|
| AUM | $1.9 billion |
| Dividend yield | 3.36% |
| Price (as of market close February 4, 2026) | $51.54 |
| 1-year total return | 4.27% |
ETF snapshot
- The investment strategy centers on allocating at least 80% of net assets to municipal debt securities that generate income exempt from regular federal income taxes.
- Top state exposure includes Texas (13.5%), Florida (7.3%), and New York (6.3%).
- The ETF is structured as an open-end fund and is listed on the NASDAQ exchange.
First Trust Managed Municipal ETF (FMB) is a municipal bond ETF with a net asset value of $1.9 billion, offering investors tax-exempt income through exposure to a diversified portfolio of municipal debt securities. First Trust Managed Municipal ETF (FMB) provides a 3.36% dividend yield and offers tax-advantaged income in a liquid, exchange-traded format.
What this transaction means for investors
TrueWealth Financial Partners added several stock and bond ETFs in the quarter, including the First Trust Managed Municipal ETF. This purchase, along with additions of Dimensional U.S. Core Equity (DFAC) and others, demonstrates a balanced investment strategy that targets growth and income.
Fund managers often adjust their portfolios to account for changing market conditions, economic outlooks, shifts in interest rates, and inflows and outflows of investor capital. Interest rates have shown potential to come down. This is especially true given the Federal Reserve’s pivot toward rate cuts to stimulate the economy.
Adding more bonds, particularly a tax-free option like FMB, could pay off a year from now if interest rates are lower. Buying quality bond ETFs now could be a smart strategy to generate more income and returns, in anticipation of the possibility that interest rates continue to fall in 2026.
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John Ballard has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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