New ETF delivers access to short-duration investment-grade municipal bonds near call dates, offering federally tax-exempt income with lower duration risk.

F/m Investments (“F/m”), an $18 billion investment firm and an innovative provider of exchange-traded funds (ETFs), today announced the launch of the F/m Ultrashort Tax-Free Municipal ETF (NASDAQ: ZMUN). Designed to track the Bloomberg Municipal Bond Currently Callable Index, ZMUN is the first ETF dedicated to callable municipal bonds, offering investors efficient exposure to a targeted segment of the municipal bond market, unlocking opportunities for attractive tax-free income with reduced interest rate sensitivity.

Traditionally, investors seeking tax-free income have had to compromise to achieve attractive yields, accepting longer-duration muni exposure with volatility, or taking on additional credit risk. ZMUN solves this problem by focusing exclusively on high-quality municipal bonds at or near their call dates, delivering a blend of steady, federally tax-exempt income with desirable yields, monthly distributions, and portfolio stability.

“With ZMUN, we’re making it possible for a broader range of income seeking investors to access a portfolio of quality, short duration callable municipal bonds,” said Alexander Morris, F/m Investments CEO. “By targeting high-coupon municipal bonds near call dates, ZMUN seeks to deliver compelling yields with reduced duration risk. This strategy reflects our continued commitment to expanding investor access to precise, efficient tools across the fixed income spectrum.”

Key Features

• Tax-Free Yield - Seeks to provide enhanced income that is federally tax-exempt.
• Additional Tax Efficiency - ZMUN’s ETF structure helps defer taxable capital gains when bond prices increase.
• High Quality - Tracks an index with an average AA credit profile by Moody’s.
• Low Duration - Duration of less than one year limits interest rate sensitivity.
• Monthly Cashflow – ZMUN's monthly¹ dividend payments are more frequent than the semi-annual payments of its underlying securities.

ZMUN can serve for some investors as a cash allocation option. With an average duration of less than one year, ZMUN can be a tax efficient alternative to money market funds.

“The launch of ZMUN comes at a pivotal moment for municipal bonds, as record issuance and policy uncertainty have elevated yields for high-quality issuers and investors are seeking to lock in federally tax-exempt income before expected Fed rate cuts,” said Justin Henessey, Portfolio Manager at F/m Investments. “By focusing on callable, investment-grade munis with ultrashort duration, we believe ZMUN is well-positioned to meet this demand and provide efficient access to a timely opportunity.”

ZMUN tracks the Bloomberg Municipal Bond Currently Callable Index, developed in collaboration between F/m and Bloomberg to bring structure and transparency to this specialized segment of the municipal market.

“Bloomberg Indices is proud of our collaboration with F/m to create the Municipal Bond Currently Callable Index and with it deliver to investors and advisors a new way to access callable munis with confidence through their ETF wrapper,” said Nick Gendron, Global Head of Fixed Income Index Product Management, Bloomberg Index Services Limited.

ZMUN joins F/m’s growing suite of innovative fixed-income ETFs, which includes the U.S. Benchmark Series, the U.S. Credit Series, and the Compoundr Series. With over $18 billion in assets under management, F/m continues to deliver tools that help investors and advisors manage risk, optimize income, and enhance portfolio efficiency.

About F/m Investments

F/m Investments, founded in 2018, is an independent asset management firm and a recognized innovator in exchange-traded funds (ETFs). The Firm offers a growing suite of ETFs, as well as mutual funds and separately managed account strategies, designed to meet the evolving needs of financial advisors, institutions, and individual investors. For more information, please visit www.fminvest.com.

Investors should consider the investment objectives, risks, charges, and expenses before investing. For a prospectus or summary prospectus with this and other information about the Fund, please call 1-800-617-0004 or visit our website at www.fminvest.com. Read the prospectus or summary prospectus carefully before investing.

Investments involve risk. Principal loss is possible. Distributed by Quasar Distributors, LLC

1. The Fund expects to declare and pay distributions, if any, monthly, however it may declare and pay distributions more or less frequently.

Bloomberg Municipal Bond Currently Callable Index measures a subset of the municipal market that is at or near a call date with higher coupons. The index also includes lower outstanding and deal size minimums for a dozen specific states. Only tax-exempt, investment grade bonds are included but bonds that are subject to the Alternative Minimum Tax (AMT) are excluded. Municipal bonds for which the use of proceeds is unknown, for funds, or cash & equivalents are excluded.

Call Risk. During periods of falling interest rates, an issuer of a callable bond held by the Fund may “call” or repay the security before its stated maturity, and the Fund may have to reinvest the proceeds in securities with lower yields, which would result in a decline in the Fund’s income, or in securities with greater risks or with other less favorable features.

Credit Risk. The value of your investment in the Fund may change in response to changes in the credit ratings of the Fund’s portfolio securities. Generally, investment risk and price volatility increase as a security’s credit rating declines. The Fund’s performance could be hurt if an issuer of a debt security suffers an adverse change in financial condition that results in a payment default, security downgrade or inability to meet a financial obligation. Credit risk is greater for lower-rated securities.

Duration Risk. Duration is a measure of the price sensitivity of a debt security or portfolio to interest rate changes. Duration risk is the risk that longer-duration debt securities will be more volatile and thus more likely to decline in price, and to a greater extent, in a rising interest rate environment than shorter-duration debt securities. As interest rates rise, the value of a bond will fall in direct proportion to its duration and conversely, as interest rates fall, the value of a bond will increase in direct proportion to its duration. Therefore, the longer a bond’s duration (measured in years), the more sensitive its price will be to interest rate changes.

Fixed-Income Market Risk. The market value of as fixed-income security may decline due to general market conditions that are not specifically related to a particular issuer, such as real or perceived adverse economic conditions, changes in interest or currency rates or adverse investor sentiment generally. The fixed-income securities market can be susceptible to increases in volatility and decreases in liquidity.

Interest Rate Risk. Interest rate risk is the risk of losses attributable to changes in interest rates. In general, if prevailing interest rates rise, the values of debt instruments tend to fall, and if interest rates fall, the values of debt instruments tend to rise. Changes in the value of a debt instrument usually will not affect the amount of income the Fund receives from it but will generally affect the value of your investment in the Fund. Changes in interest rates may also affect the liquidity of the Fund’s investments in debt instruments. In general, the longer the maturity or duration of a debt instrument, the greater its sensitivity to changes in interest rates. The Fund is subject to the risk that the income generated by its investments may not keep pace with inflation.

Leverage Risk. Borrowing transactions, reverse repurchase agreements, securities lending transactions, and other investment transactions such as when-issued, delayed delivery, or forward commitment transactions may create investment leverage. If the Fund engages in transactions that have a leveraging effect on the Fund’s investment portfolio, the value of the Fund will be potentially more volatile, and all other risks will tend to be compounded.

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