Fidelity Investments announced the launch of two fixed-income ETFs: the Fidelity Municipal Bond Opportunities ETF (FMUB) and the Fidelity Systematic Municipal Bond Index ETF (FMUN).
According to Fidelity’s Portfolio Construction Insights, the number of portfolios that utilize fixed income ETFs increased by 6% over the past year, and over two-thirds of portfolios analyzed had a fixed income allocation, reinforcing investor demand in the fixed income ETF market. And the ETFs are listed on Nasdaq and are available commission-free for individual investors and financial advisors through Fidelity’s online brokerage platforms today.
These new ETFs will maintain the same investment strategies as the previous mutual funds. And the portfolio management team for FMUB includes experienced co-managers Cormac Cullen, Michael Maka, and Elizah McLaughlin, and for FMUN includes experienced co-managers Brandon Bettencourt and Mark Lande. The products are competitively priced with a gross expense ratio of 0.30% for FMUB and 0.05% for FMUN.
With these new additions, Fidelity adds about $229 million in assets to its fixed-income ETF lineup. Fidelity’s full exchange-traded lineup consists of 78 strategies with $109 billion in assets as of March 31, 2025. The firm maintains its leadership position in traditional mutual funds with an expansive lineup of more than 470 actively managed and index mutual funds, all offered commission-free and with no investment minimums.
Fidelity is one of the industry’s most experienced fixed income managers, with over $2.3 trillion in assets under management as of December 31, 2024. And Fidelity’s fixed income capabilities, which span the full breadth of fixed income strategies from money market funds to high yield portfolios to credit alternatives, are built upon its excellence in proprietary research, with an unrivaled team of research analysts, portfolio managers, and traders.
Fidelity’s exchange-traded lineup consists of 78 ETFs and ETPs with $109 billion in assets under management, including 30 actively managed equity ETFs, 15 fixed income ETFs, 13 equity factor ETFs, six passive thematic ETFs, 11 passive equity sector ETFs, two digital asset ETPs, and Fidelity ONEQ. With the launch of these new products, Fidelity now offers an ETF in every major fixed income bond asset class, including municipal bonds, taxable investment-grade bonds, and taxable high-yield bonds.
KEY QUOTE:
“Reinforcing Fidelity’s commitment to providing clients with investment choice, we are launching our first municipal bond ETFs and building upon our decade-long presence in the Fixed Income ETF space. These new offerings aim to meet client demand in the municipal bond market and provide investors with superior value, powered by our legacy of fundamental and quantitative research capabilities.”
- Greg Friedman, head of ETF Management and Strategy at Fidelity Investments
