First Trust Municipal High Income ETF Price & Performance (FMHI)

Major institutions, including Raymond James Financial and LPL Financial, significantly increased their holdings in the First Trust Municipal High Income ETF during the fourth quarter. The ETF, which invests primarily in U.S. municipal bonds, saw robust inflows as investors seek tax-advantaged income amid rising municipal bond issuance and shifting market dynamics.123

First Trust Municipal High Income ETF declared a monthly dividend of $0.1640 per share, payable on April 30, 2025. This move underscores the fund’s ongoing commitment to income generation, appealing to investors amid elevated yields and increased demand for high-yield municipal bonds in the current market environment.453

Surging issuance and attractive yields have driven $4.8 billion into high-yield municipal bond funds in early 2025. Despite underperformance relative to other fixed income sectors, investors are drawn by favorable taxable-equivalent yields and low credit risk, with expectations that technical factors will improve later this year.63