This Wealth Advisory Sold $3 Million of One Muni ETF but Kept $16 Million Still Invested

On January 29, RMR Wealth Builders disclosed in an SEC filing that it sold 66,572 shares of the First Trust Managed Municipal ETF (NASDAQ:FMB) in the fourth quarter, an estimated $3.40 million trade based on average quarterly pricing.

What happened

In a quarterly disclosure filed with the Securities and Exchange Commission on January 29, RMR Wealth Builders reported selling 66,572 shares of the First Trust Managed Municipal ETF (NASDAQ:FMB). The estimated transaction value was $3.40 million, calculated using the average closing price for the fourth quarter of 2025. The fund’s FMB stake ended the quarter valued at $16.14 million, down $3.24 million from the previous period, a figure that includes both trading activity and market price changes.

What else to know

After the sale, FMB accounts for 1.29% of RMR Wealth Builders’ reportable U.S. equity assets.

Top holdings after the filing:

• NYSEMKT: VOO: $117.69 million (9.4% of AUM)
• NYSEMKT: VUG: $116.29 million (9.3% of AUM)
• NYSEMKT: VTV: $106.24 million (8.5% of AUM)
• NYSEMKT: IJH: $74.88 million (6.0% of AUM)
• NYSEMKT: IEFA: $58.22 million (4.7% of AUM)

As of January 28, FMB was priced at $51.33, up 4.1% over the past year but lagging the S&P 500 by 10.9 percentage points.

ETF overview

ETF snapshot

• FMB’s investment strategy focuses on investing at least 80% of assets in municipal debt securities exempt from regular federal income taxes, seeking to provide tax-advantaged income.
• It’s structured as an exchange-traded fund (ETF), offering investors liquidity and transparency, with a competitive expense structure relative to actively managed municipal bond funds.
• The ETF targets income-oriented investors seeking federally tax-exempt yield through active management of municipal bonds.

The First Trust Managed Municipal ETF is a $2 billion actively managed municipal bond ETF listed on NASDAQ. The fund is designed to provide federally tax-exempt income by investing primarily in municipal debt securities, appealing to investors seeking tax-efficient yield. Its active management enables dynamic portfolio adjustments to optimize risk-adjusted returns, while the ETF structure offers daily liquidity and transparency. The fund's competitive dividend yield and positive one-year total return underscore its role as a core fixed income holding for income-oriented investors.

What this transaction means for investors

Tax-free income is supposed to be the calm part of a portfolio, so a meaningful trim here is a signal worth noticing. RMR Wealth Builders cut 66,572 shares of the First Trust Managed Municipal ETF in the fourth quarter, an estimated $3.40 million sale, leaving a $16.14 million position that now sits at 1.29% of its 13F assets. That matters because the rest of the book is largely equity first, with broad stock exposure dominating the top holdings. Shaving a muni sleeve can be as simple as rebalancing, but it can also reflect a view on rate sensitivity.

To be clear, FMB is not a cash substitute. The fund’s weighted average effective duration is about 7 years, with a weighted average maturity of 12.68 years, so price moves can show up quickly when yields jump. At the same time, the product is built for diversification at scale: about $1.94 billion in net assets and 1,208 holdings. The 30 day SEC yield was 3.23% as of December, or 5.46% on a taxable equivalent basis.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Vanguard Index Funds - Vanguard Growth ETF, Vanguard Index Funds - Vanguard Value ETF, and Vanguard S&P 500 ETF. The Motley Fool has a disclosure policy.