First Trust Ultra Short Duration Municipal ETF Announces Monthly Dividend

The First Trust Ultra Short Duration Municipal ETF (NYSEARCA:FUMB) has declared a monthly dividend of $0.05 per share. This announcement is an important update for investors who keep a close eye on dividend distributions from exchange-traded funds.

The ETF offers a forward yield of 2.99%. Such a yield can be attractive for investors looking for income through dividends while also gaining exposure to municipal bonds, which are often considered a safe investment option.

Dividend Payment Details

The dividend will be payable on January 31, with the record date set for January 22. Shareholders should be aware that the ex-dividend date is also January 22. This means that to receive this dividend, investors must ensure they purchase shares of the ETF before this date.

Understanding FUMB ETF

The First Trust Ultra Short Duration Municipal ETF is designed to provide income primarily through investments in short-duration, investment-grade municipal securities. A fund like this may appeal to conservative investors who prefer to have less volatility in their portfolios and are seeking tax-exempt income from municipal bonds.

For those interested in further information, resources such as the ETF's dividend scorecard and yield chart can provide more insights into its historical performance and growth in dividends. It's advisable for investors to consider both current yields and historical performance before making any investment decisions.

dividend, ETF, municipal