Category Review
Municipal bond funds are down for the year after a third-quarter selloff erased the first-half gain
First Trust Smith Unconstrained Bond ETF
$23.84−0.01 (−0.04%)
- 0.86%
- $3.1B
- −1.0%
- 4.88%
- 0.6M sh
- $23.90
- low $23.56high $25.63
The ETF.net UCON Grade
C
Score 54 out of 100
- 72 of 117
Score 54 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.
Cost
The fund’s net expense ratio, ranked against its category.F3 out of 100Rank 114 of 117Mission
Whether the fund did what it promised, tested against its stated mandate.A96 out of 100Rank 64 of 101Risk
How the fund held up when markets fell: downside volatility, drawdowns and tail loss.B66 out of 100Rank 22 of 116Tradability
How easy the fund is to trade: daily volume, and how far its price strays from net asset value.B55 out of 100Rank 50 of 117Holdings
How concentrated the fund is, and how complete and current its disclosed holdings are.A80 out of 100Rank 11 of 116Durability
Whether the fund is likely to stay open, judged by its age, its assets and its issuer’s assets.A78 out of 100Rank 18 of 117
Our read on UCON
CA bond fund with no index to hug. UCON's mandate keeps at least 80% in fixed income and leaves the rest of the map open, spreading roughly a thousand positions across the bond market and paying out monthly.
The fund seeks to maximize long-term total return and normally invests at least 80% of its net assets in fixed-income securities.
Why people hold it
- No benchmark leash. The mandate requires at least 80% in fixed income and otherwise lets the manager roam sectors, credit tiers and maturities in pursuit of long-term total return.ftportfolios.com
- Roughly a thousand bond positions, so no single issuer's stumble dominates the portfolio.
- Cash lands monthly, and this is a multi-billion-dollar, actively traded fund rather than a thin newcomer nobody quotes.
- Trading since 2018, so the strategy has been run through both the zero-rate era and the hiking cycle that ended it.
Worth knowing
- 0.86% a year is active-manager pricing. Index aggregate trackers in the same aisle, like BND and SPAB, charge 0.03%.
- Unconstrained also means unbenchmarked. The portfolio can look nothing like a core bond index, so it moves on its own schedule.
- The mix reflects a manager's judgment, not an index rulebook, so what you own can shift as their view of rates and credit shifts.
UCON Holdings
- Bonds
- 451
- 14%
- U.S. Treasury Note, 4.25%, due 07/31/2028
Sectors
- Utilities61.5%
- Financials38.5%
Geography
- United States92.27%
- Canada2.81%
- Cayman Islands0.77%
- United Kingdom0.71%
- Switzerland0.63%
- Saudi Arabia0.60%
- Ireland0.60%
- Bermuda0.44%
- 1.16%
UCON 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.
UCON$9,898
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 | UCON |
|---|---|
| Year to date | −2.0% |
| 1 month | −1.6% |
| 3 months | −2.7% |
| 1 year | −1.0% |
| 3 years | +4.9% |
| 5 years | +2.2% |
| 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 | UCON |
|---|---|---|
| 2026 YTD | −2.0% | |
| 2025 | +7.0% | |
| 2024 | +4.7% | |
| 2023 | +7.7% | |
| 2022 | −5.7% | |
| 2021 | +1.0% | |
| 2020 | +6.5% |
UCON in the news
UCON Dividends
- 4.88%
- $1.16
- $0.10 per share
- Monthly
Distribution history
UCON Risk
- 3.9%
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.
- 0.04
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.
- −9.5%
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.
- 0.59
How it’s calculated: beta
The beta figure is supplied by FMP. The comparison index depends on the fund’s broad asset class.
UCON Cost
0.86%
UCON0.86%
- The middle half of US Aggregate Bond funds
- Median 0.34%
109 of the 113 US Aggregate Bond funds charge less.
Other funds in US Aggregate Bond
- BAGGSHarbor Disciplined Bond ETF (AGGS)Expense ratio 0.35%1 year return −1.3%
- CBKFIBNY Mellon Active Core Bond ETFExpense ratio 0.40%1 year return —
- CBCPLBNY Mellon Core Plus ETFExpense ratio 0.40%1 year return —
- CBLTDBluemonte Long Term Bond ETFExpense ratio 0.28%1 year return −5.4%
- CJPIBJPMorgan International Bond Opportunities ETFExpense ratio 0.50%1 year return +0.5%