Category Review
Municipal bond funds are down for the year after a third-quarter selloff erased the first-half gain
Fidelity Systematic Municipal Bond Index ETF
$47.45+0.31 (+0.66%)
- 0.05%
- $170M
- −2.6%
- 3.51%
- 0M sh
- $47.20
- low $46.32high $51.25
The ETF.net FMUN Grade
A
Score 72 out of 100
- 13 of 63
Score 72 of 100 falls in the A band. A is 70 or higher, B 55 to under 70, C 40 to under 55, D 25 to under 40, F under 25.
Cost
The fund’s net expense ratio, ranked against its category.A95 out of 100Rank 3 of 63Mission
Whether the fund did what it promised, tested against its stated mandate.A89 out of 100Rank 30 of 59Risk
How the fund held up when markets fell: downside volatility, drawdowns and tail loss.D39 out of 100Rank 52 of 63Tradability
How easy the fund is to trade: daily volume, and how far its price strays from net asset value.D27 out of 100Rank 52 of 63Holdings
How concentrated the fund is, and how complete and current its disclosed holdings are.A88 out of 100Rank 5 of 63Durability
Whether the fund is likely to stay open, judged by its age, its assets and its issuer’s assets.B61 out of 100Rank 29 of 63
Our read on FMUN
AFidelity's muni index fund runs on its own rules-based benchmark and charges 0.05% a year, a fraction of what the typical muni fund costs. Roughly 1,200 bonds, monthly payouts, all pointed at income the federal government doesn't tax.
The fund seeks high current income that is exempt from federal income tax. It normally invests at least 80% of assets in municipal securities whose interest is federally tax-exempt.
Why people hold it
- 0.05% a year against a roughly 0.30% median for muni bond funds. On tax-exempt income, that gap is the part you keep.
- Roughly 1,200 municipal bonds, so no single issuer or project carries the portfolio.
- Pays monthly, with at least 80% of assets in municipal securities whose interest is exempt from federal income tax.
- One of the stronger builds in the muni ETF group: passive, broad, and squarely inside its stated mandate.
Worth knowing
- Thinly traded and modest in size next to the category's giants, so bid-ask spreads can run wider.
- The benchmark is Fidelity's own Systematic U.S. Municipal Bond Index, not a licensed outside yardstick.institutional.fidelity.com
- Muni prices move with interest rates, and the tax break targeted here is federal. State-specific relief is a different product, like NYF for New York.
FMUN Holdings
- Bonds
- 1,186
- 6%
- Net Other Assets
Geography
- United States100.00%
FMUN Performance
Shows how $10,000 changes over the selected period, with cash distributions reinvested at the closing price on each ex-dividend date.
Not enough history yet.Not enough history yet.Not enough history yet.
FMUN$9,736
Returns run to the Oct 12, 2026 close, with cash distributions reinvested. Each period starts on the same date that many months or years earlier. Periods over one year show the average yearly return.
| Period | FMUN |
|---|---|
| Year to date | −3.8% |
| 1 month | −2.1% |
| 3 months | −5.6% |
| 1 year | −2.6% |
| 3 years | — |
| 5 years | — |
| 10 years | — |
Calendar-year total return with cash distributions hypothetically reinvested at the ex-dividend date’s closing price. The current year shows year to date.
| Year | Return bar | FMUN |
|---|---|---|
| 2026 YTD | −3.8% | |
| 2025 | +6.8% |
FMUN in the news
FMUN Dividends
- 3.51%
- $1.66
- $0.14 per share
- Monthly
Distribution history
FMUN Risk
- 5.6%
How it’s calculated: standard deviation
The sample standard deviation of monthly total returns, multiplied by the square root of 12.
Uses up to 36 complete months, with at least 12 required. Total returns include reinvested distributions.
- −0.58
How it’s calculated: Sharpe ratio
Subtract each month’s Treasury-bill return from the fund’s monthly total return.
Divide the average of those excess returns by their sample standard deviation, then multiply by the square root of 12.
Uses up to 36 complete months, with at least 12 required. Each month uses the Treasury yield quoted at the end of the previous month.
- −7.3%
How it’s calculated: maximum drawdown
The largest percentage decline from an earlier peak, using total returns with reinvested distributions.
Uses up to five years through the last close, with at least 12 months required.
- 1.03
How it’s calculated: beta
The beta figure is supplied by FMP. The comparison index depends on the fund’s broad asset class.
FMUN Cost
0.05%
FMUN0.05%
- The middle half of Other Municipal Bond funds
- Median 0.30%
2 of the 63 Other Municipal Bond funds charge less.
Other funds in Other Municipal Bond
- ACGMUCapital Group Municipal Income ETFExpense ratio 0.27%1 year return −1.2%
- AFLMIFranklin Dynamic Municipal Bond ETFExpense ratio 0.30%1 year return −1.9%
- APZAInvesco National AMT-Free Municipal Bond ETFExpense ratio 0.28%1 year return −4.7%
- BHMOPHartford Municipal Opportunities ETFExpense ratio 0.29%1 year return −1.6%
- BAVMUAvantis Core Municipal Fixed Income ETFExpense ratio 0.15%1 year return −2.5%