ETF Evaluator: First Trust New York High Inc Mncpl ETF () Follow This ETF

First Trust New York High Inc Mncpl ETF Overview

First Trust New York High Inc Mncpl ETF (FMNY) is an actively managed Municipal Bond Muni New York Long exchange-traded fund (ETF). First Trust launched the ETF in 2021.

The investment seeks to provide current income that is exempt from regular federal income taxes and New York income taxes, and its secondary objective is long-term capital appreciation. The fund seeks to achieve its investment objectives by investing at least 80% of its net assets (including investment borrowings) in municipal debt securities that pay interest that is exempt from regular federal income taxes and New York State and New York City income taxes. It may invest in Municipal Securities of any duration and any maturity, however, the Advisor expects it will have an effective duration of approximately 3-9 years. The fund is non-diversified.

About First Trust New York High Inc Mncpl ETF (FMNY)

There are 3 members of the management team with an average tenure of 3.96 years: Johnathan Wilhelm (2021), Shawn O'Leary (2024) and Thomas Byron (2022). Management tenure is more important for actively managed ETFs than passive index ETFs.

The ETF has 2 primary benchmarks: Bloomberg Municipal TR USD index with a weighting of 100% and Bloomberg Muni New York 12-17yr TR USD index with a weighting of 100%. First Trust New York High Inc Mncpl ETF has 111 securities in its portfolio. The top 10 holdings constitute 20.3% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a nondiversified fund. The ETF is not considered to have an ESG focus with its investment selection and management.

First Trust New York High Inc Mncpl ETF is part of the Fixed Income global asset class and is within the Municipal Bond ETF group. First Trust New York High Inc Mncpl ETF has 4.2% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 0.0% There is 0.0% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 98.8% (94.6% domestic bond, 4.2% foreign bond and 0.0% convertible bond). First Trust New York High Inc Mncpl ETF has 1.2% of the portfolio in cash.

Assets Under Management

The fund has $38 million in total assets, which is below the $437 million average for the Muni New York Long category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

FMNY Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The First Trust New York High Inc Mncpl ETF expense ratio is average compared to funds in the Muni New York Long category. First Trust New York High Inc Mncpl ETF has an expense ratio of 0.49%, which is 38% higher than its category average, making the fund expense ratio grade a D. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. First Trust New York High Inc Mncpl ETF has a portfolio turnover rate of 32%, which indicates that it holds its assets around / 0.0 years. By way of comparison, the average portfolio turnover is 19% for the Muni New York Long category.

Recently, in the month of July 2026, First Trust New York High Inc Mncpl ETF returned -2.0%, which earned it a grade of C, as the Muni New York Long category had an average return of -2.0%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all ETFs in that category.

First Trust New York High Inc Mncpl ETF has a trailing yield of 3.78%, which is above the 3.72% category average. The fund normally distributes its income monthly.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

First Trust New York High Inc Mncpl ETF Grades

Year to date, the ETF has returned 0.6%, 0.2 percentage points worse than the category, which translates into a grade of C. The fund has returned 5.9% over the past year (grade of D), 3.3% over the past three years (grade of A) and 0.1% per year over the past five years (grade of D).

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