SHM

📎 Investment Objective

The SPDR Nuveen ICE Short Term Municipal Bond ETF (SHM) seeks to provide investment results that, before fees and expenses, correspond generally to the price and yield performance of the ICE Short AMT-Free Municipal Core Index.

✨ Key Features

• Focuses on municipal bonds with short-term maturities, typically less than 5 years
• Seeks to track the performance of the ICE Short AMT-Free Municipal Core Index
• Designed to provide income that is generally exempt from federal income taxes
• Low expense ratio of 0.00%

⚠️ Primary Risks

• Interest rate risk: The value of the fund's holdings may decline if interest rates rise
• Credit risk: The fund is exposed to the risk of default by the issuers of the municipal bonds it holds
• Liquidity risk: The municipal bond market can experience periods of lower liquidity, which may impact the fund's ability to sell holdings
• Tax risk: Changes in tax laws or adverse determinations by tax authorities could affect the tax-exempt status of the municipal bonds

👤 Best For

This ETF may be suitable for investors seeking exposure to short-term municipal bonds as part of a diversified fixed income portfolio. It may be particularly appealing to investors in higher tax brackets who are looking for tax-exempt income. However, investors should be aware of the risks associated with municipal bonds and be comfortable with the fund's short-term focus.