TAXS

📎 Investment Objective

The Northern Trust Short-Term Tax-Exempt Bond ETF seeks to provide a high level of current income exempt from regular federal income tax, while preserving capital and maintaining a low portfolio duration.

✨ Key Features

• Focuses on short-term, high-quality municipal bonds to generate tax-exempt income
• Actively managed to maintain a low portfolio duration of 1-3 years
• Seeks to provide a steady stream of tax-exempt income with lower volatility than longer-term municipal bond funds
• Expense ratio of 0.00%, making it a low-cost option for tax-exempt fixed income exposure

⚠️ Primary Risks

• Interest rate risk: As interest rates rise, the value of the fund's holdings may decline
• Credit risk: The fund is exposed to the risk of default or downgrade of the municipal bonds it holds
• Liquidity risk: The municipal bond market can be less liquid than other fixed income markets, which may impact the fund's ability to sell holdings
• Tax risk: Changes in tax laws or regulations could affect the tax-exempt status of the municipal bonds held by the fund

👤 Best For

This ETF may be suitable for investors seeking tax-exempt income and lower interest rate risk, such as those in higher tax brackets or with a shorter investment horizon. It can be used as a core holding or to complement a broader fixed income portfolio.