FIMU vs TAXI

FIMUCFidelity Intermediate Municipal Income ETF

TAXIANorthern Trust Intermediate Tax-Exempt Bond ETF

In short

FIMU Not a new fund so much as a new door into an old one: FIMU is an ETF share class of Fidelity's actively managed intermediate muni strategy, holding the same bonds, run by the same managers, carrying the same track record.

TAXI The middle rung of Northern Trust's three-part muni lineup: intermediate maturities of 1 to 15 years, thousands of investment-grade bonds, federally tax-exempt income paid monthly, all for five basis points.

Stated mandate

FIMU The fund seeks a high level of current income exempt from federal income tax while preserving capital. It normally invests at least 80% of assets in investment-grade municipal securities and maintains a dollar-weighted average maturity of 3 to 10 years.

TAXI The fund seeks to track the performance of the ICE Intermediate Term Focused Municipal Bond Index before fees and expenses. It is designed for tax-exempt income through passively managed, investment-grade municipal bonds with intermediate maturities of 1–15 years.

Why people hold it

• FIMU One of Fidelity's first three ETF share classes: same portfolio, same managers and the same track record as the existing mutual fund, now in an exchange-traded wrapper.fidelity.comsec.gov
• Clear guardrails: normally at least 80% of assets in investment-grade municipal bonds paying federally tax-exempt interest, with average maturity held between 3 and 10 years.fidelity.com
• Costs 0.30% net of a waiver through April 30, 2028 (0.31% gross), near the typical fee in the intermediate muni category. Income is paid quarterly.

• TAXI Charges 0.05% where the typical muni fund charges 0.30%. That ties iShares' MUB and sits within a hair of the Vanguard and Schwab giants at the top of the aisle.
• Roughly 2,500 investment-grade municipal bonds, sampled to track the ICE Intermediate Term Focused Municipal Bond Index. Breadth, not bond-picking, carries the credit risk.flexshares.com
• Income is exempt from federal tax and paid monthly, and the index only counts bonds that also dodge the federal alternative minimum tax.stockanalysis.com
• One setting on a three-position dial: short (TAXS), intermediate (TAXI) and all-maturity (TAXT) from the same desk, so you can shift rate exposure without switching shops.northerntrust.com

Worth knowing

• FIMU Cheaper routes into the category exist: TAXI charges 0.05%, ITM 0.18%, and EVIM 0.11% net of a waiver through February 1, 2027.
• Still a thinly traded, smaller fund, so bid-ask spreads and order size matter more here than with the category's most-traded names.
• The ETF class only started trading in June 2026; its own market history is short, even though the underlying strategy's record runs longer.fidelity.com

• TAXI It opened in August 2025. The record is short, so there is little history to judge it against older muni funds.
• Trades lightly next to the category's household names, and its asset base is modest, which can show up as wider spreads at the moment you transact.
• The 1 to 15 year band is a middle seat: less rate whiplash than long-dated munis, more price movement than a short-maturity fund. Bonds here still move when yields do.flexshares.com

Full FIMU profile⁠

Full TAXI profile⁠