Fidelity Investments launched two new municipal bond ETFs on Monday, marking the firm’s first entry into the municipal bond ETF space, according to a company announcement.
The Fidelity Municipal Bond Opportunities ETF (FMUB) and the Fidelity Systematic Municipal Bond Index ETF (FMUN) begin trading on Nasdaq at the opening bell and will be available through Fidelity’s brokerage platforms, the company said.
FMUB and FMUN Arrive at the Right Time
The launch comes as investor appetite for fixed-income ETFs continues to strengthen, with Fidelity’s Portfolio Construction Insights revealing that fixed-income ETF utilization increased 6% over the past year, and more than two-thirds of portfolios analyzed now include fixed-income allocations.
“These new offerings aim to meet client demand in the municipal bond market and provide investors with superior value, powered by our legacy of fundamental and quantitative research capabilities,” said Greg Friedman, head of ETF management and strategy at Fidelity, in a company statement.
The firm has priced the actively managed FMUB at 0.3% and the index-based FMUN at 0.05%, positioning them competitively within the municipal bond ETF category, according to the announcement.
Advisor Adoption of Active ETFs Accelerates
The municipal bond ETFs maintain the same investment strategies as their predecessor mutual funds, with experienced management teams overseeing both products. With these additions, Fidelity adds approximately $229 million in assets under management to its fixed-income ETF lineup, according to the company.
The launch reflects a broader trend in advisor portfolio construction, with Fidelity’s data showing active ETF adoption has surged to 40% of advisors at the end of 2024 from just 13% in 2022, according to the firm’s Portfolio Construction Insights.
Fidelity’s ETF platform now includes offerings across all major fixed-income categories, including municipal bonds, taxable investment grade bonds and high-yield bonds, according to the company.
The firm’s exchange-traded lineup has grown to $109 billion in assets under management across 78 ETFs and ETPs as of March 31, 2025.
