Category Review
Municipal bond funds are down for the year after a third-quarter selloff erased the first-half gain
Nomura Tax-Free USA ETF
$23.34+0.16 (+0.69%)
- 0.39%
- $7M
- 0M sh
- $23.15
- low $23.06high $25.47
The ETF.net LTAX Grade
D
Score 40 out of 100
- 54 of 63
Score 40 of 100 falls in the C band. A is 70 or higher, B 55 to under 70, C 40 to under 55, D 25 to under 40, F under 25. The letter stays D for now. A new letter must hold for 3 published runs before it replaces it.
Cost
The fund’s net expense ratio, ranked against its category.D26 out of 100Rank 44 of 63Mission
Whether the fund did what it promised, tested against its stated mandate.A76 out of 100Rank 48 of 59Risk
How the fund held up when markets fell: downside volatility, drawdowns and tail loss.C46 out of 100Rank 35 of 63Tradability
How easy the fund is to trade: daily volume, and how far its price strays from net asset value.F9 out of 100Rank 60 of 63Holdings
How concentrated the fund is, and how complete and current its disclosed holdings are.C48 out of 100Rank 43 of 63Durability
Whether the fund is likely to stay open, judged by its age, its assets and its issuer’s assets.F5 out of 100Rank 63 of 63
Our read on LTAX
DNomura's first swing at US municipal bonds: a 2026 launch chasing federally tax-free income with preservation of capital written into the mandate. New and small, at 0.39% in a category where the index giants charge pennies.
The Fund seeks a high level of current interest income exempt from federal income tax, subject to what municipal obligations can provide, prudent investment management, and preservation of capital.
Why people hold it
- The mandate is specific: current income exempt from federal income tax, paid as exempt-interest dividends, with preservation of capital named in the objective itself.
- A 2026 launch means a clean sheet: the portfolio gets built out of today's muni market rather than inheriting bonds bought in an older rate regime.
- Nomura is a global asset manager planting a flag in US munis, a corner of the market long dominated by a handful of domestic index shops.
Worth knowing
- At 0.39% a year it costs more than the category's index anchors (VTEB at 0.03%, MUB at 0.05%). That gap is the bar its portfolio choices have to clear.
- It launched in 2026 and hasn't built the scale or daily trading of the muni giants, which can show up as wider spreads at the moment you trade.
- The filing doesn't commit to a set payout schedule, so income timing is less predictable here than at muni funds that state a monthly cadence.
LTAX Holdings
- Bonds
- 110
- 22%
- Us Dollar
Geography
- United States100.00%
LTAX 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.Not enough history yet.Not enough history yet.
LTAX$9,294
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 | LTAX |
|---|---|
| Year to date | — |
| 1 month | −3.5% |
| 3 months | −7.1% |
| 1 year | — |
| 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 | LTAX |
|---|---|---|
| 2026 YTD | −4.9% |
LTAX in the news
LTAX Dividends
- $0.09 per share
- Monthly
Distribution data unavailable.
Distribution history
LTAX Risk
- —
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.
- —
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.
- —
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.
- 0.16
How it’s calculated: beta
The beta figure is supplied by FMP. The comparison index depends on the fund’s broad asset class.
LTAX Cost
0.39%
LTAX0.39%
- The middle half of Other Municipal Bond funds
- Median 0.30%
43 of the 63 Other Municipal Bond funds charge less.
Other funds in Other Municipal Bond
- CMINNMairs & Power Minnesota Municipal Bond ETFExpense ratio 0.25%1 year return −4.2%
- CRMCARockefeller California Municipal Bond ETFExpense ratio 0.55%1 year return −3.4%
- DRMNYRockefeller New York Municipal Bond ETFExpense ratio 0.55%1 year return −2.5%
- DMBNDState Street Nuveen Municipal Bond ETFExpense ratio 0.40%1 year return −2.7%
- DJCALJPMorgan California Tax Free Bond ETFExpense ratio 0.44%1 year return —