FMB vs. SHM - ETF Comparison
FMB - First Trust Managed Municipal ETF
The First Trust Managed Municipal ETF is an actively managed bond fund that invests in a diversified portfolio of investment-grade municipal bonds, primarily in the United States, aiming to provide income and capital preservation.
SHM - SPDR Nuveen Bloomberg Short Term Municipal Bond ETF
The SPDR Nuveen Bloomberg Short Term Municipal Bond ETF is a fixed income fund that tracks an index of short-term municipal bonds, providing tax-efficient income and relatively low risk. The fund offers broad diversification with over 788 holdings and a low expense ratio, making it a solid choice for investors seeking exposure to the US municipal bond market with lower levels of risk.
| FMB | SHM | |
|---|---|---|
| Fund Name | First Trust Managed Municipal ETF | SPDR Nuveen Bloomberg Short Term Municipal Bond ETF |
| Fund Provider | First Trust | State Street |
| Index | Active (No Index) | Bloomberg Municipal Managed Money Short |
| Asset Class | Bonds | Bonds |
| Listing | US-listed | US-listed |
| Expense Ratio | 0.65% | 0.20% |
| Inception Date | 2014-05-13 | 2007-10-10 |
| Number Of Holdings | 1350 | 788 |
| Currency | USD | USD |
| Region | United States | United States |
| Bond Type | Municipal Bonds | Municipal Bonds |
| Leveraged | Non-leveraged | Non-leveraged |
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Key Metrics
Performance Metrics
Risk Metrics
Detailed Returns
Benchmark Comparison
Key Metrics
Performance Metrics
Risk Metrics
Detailed Returns
Benchmark Comparison
Performance Analysis
The performance analysis examines historical data to assess the returns of the investment strategy, including key metrics such as Cumulative returns, End of Year (EoY) returns, and risk-adjusted returns like the Sharpe ratio or the Sortino ratio.
Cumulative Returns
End of Year Returns Table
End of Year Returns
Risk Analysis
The risk analysis refers to an assessment of potential negative events that could lead to a loss of capital. Conducting a risk analysis can help in deciding whether an investment should be made. This is done using risk metrics such as drawdowns, volatility and beta which reflect stakeholders' confidence in the consistency of an investment strategy.
Drawdowns
Drawdowns Table
Monte Carlo Simulation
The Monte Carlo simulation is a statistical method used to forecast portfolio returns by generating a wide range of potential outcomes through random sampling from historical asset price data. It helps investors assess the potential risk and return of a portfolio under various market conditions. The simulation takes into account the initial investment and optionally simulates cash flow scenarios like fixed contributions, fixed withdrawals, or percentage withdrawals.
IMPORTANT: The forecast generated through Monte Carlo simulations is purely hypothetical and does not guarantee future returns. Investment decisions should be made with consideration of various factors, and past performance is not indicative of future results.