ETF Evaluator: Fidelity Systematic Municipal Bd Idx ETF () Follow This ETF

Fidelity Systematic Municipal Bd Idx ETF Overview

Fidelity Systematic Municipal Bd Idx ETF (FMUN) is a passively managed Municipal Bond Muni National Interm exchange-traded fund (ETF). Fidelity Investments launched the ETF in 2019.

The investment seeks to provide a high current yield exempt from federal income tax. The fund normally invests at least 80% of assets in municipal securities whose interest is exempt from federal income tax (but may be subject to the federal alternative minimum tax). It normally invests at least 80% of assets in securities included in the Fidelity Systematic U.S. Municipal Bond IndexSM, which aims to increase exposure to municipal bonds with higher risk-adjusted performance and liquidity characteristics relative to traditional market-capitalization weighted U.S. investment grade municipal bond indices.

About Fidelity Systematic Municipal Bd Idx ETF (FMUN)

There are 3 members of the management team with an average tenure of 3.24 years: Brandon Bettencourt (2019), Mark Lande (2024) and Van Eswara (2025). Management tenure is more important for actively managed ETFs than passive index ETFs.

The ETF has 1 primary benchmark: Bloomberg Municipal TR USD index with a weighting of 100%. Fidelity Systematic Municipal Bd Idx ETF has 1205 securities in its portfolio. The top 10 holdings constitute 7.6% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a diversified fund. The ETF is not considered to have an ESG focus with its investment selection and management.

Fidelity Systematic Municipal Bd Idx ETF is part of the Fixed Income global asset class and is within the Municipal Bond ETF group. Fidelity Systematic Municipal Bd Idx ETF has 0.0% 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 98.7% (98.7% domestic bond, 0.0% foreign bond and 0.0% convertible bond). Fidelity Systematic Municipal Bd Idx ETF has 0.4% of the portfolio in cash.

Assets Under Management

The fund has $180 million in total assets, which is below the $2 billion average for the Muni National Interm 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.

FMUN 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 Fidelity Systematic Municipal Bd Idx ETF expense ratio is low compared to funds in the Muni National Interm category. Fidelity Systematic Municipal Bd Idx ETF has an expense ratio of 0.05%, which is 82% lower than its category average, making the fund expense ratio grade a A. 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. Fidelity Systematic Municipal Bd Idx ETF has a portfolio turnover rate of 69%, which indicates that it holds its assets around / 0.0 years. By way of comparison, the average portfolio turnover is 41% for the Muni National Interm category.

Recently, in the month of July 2026, Fidelity Systematic Municipal Bd Idx ETF returned -1.8%, which earned it a grade of F, as the Muni National Interm category had an average return of -1.6%. 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.

Fidelity Systematic Municipal Bd Idx ETF has a trailing yield of 3.34%, which is below the 3.53% 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.

Fidelity Systematic Municipal Bd Idx ETF Grades

Year to date, the ETF has returned 0.1%, 0.2 percentage points worse than the category, which translates into a grade of D. The fund has returned 5.1% over the past year (grade of C), 2.8% over the past three years (grade of F) and 0.1% per year over the past five years (grade of F).

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