LTAX ETF — Holdings & Analysis

The Nomura Tax-Free USA ETF (LTAX) is an actively managed equity ETF with $0.01 billion in assets under management and an expense ratio of 0.39%.

LTAX focuses on securities exempt from federal income tax, including the federal alternative minimum tax, primarily holding municipal debt obligations. This ETF aims to provide tax-free income by investing in municipal bonds with maturities ranging from 5 to 30 years, differentiating itself through active management and a focus on tax-exempt income.

Nomura Tax-Free USA ETF (LTAX) ETF — Price, Holdings & Analysis

The Nomura Tax-Free USA ETF (LTAX) is an actively managed equity ETF with $0.01 billion in assets under management and an expense ratio of 0.39%. LTAX focuses on securities exempt from federal income tax, including the federal alternative minimum tax, primarily holding municipal debt obligations. This ETF aims to provide tax-free income by investing in municipal bonds with maturities ranging from 5 to 30 years, differentiating itself through active management and a focus on tax-exempt income.

ETF Overview

LTAX is actively managed and invests in securities exempt from federal income tax, including the federal alternative minimum tax (Federal AMT). It primarily holds municipal debt obligations issued by state and local governments for public purposes such as hospitals, schools, and capital expenses. Up to 20% of the portfolio may be allocated to high-yield debt securities. The fund aims to maintain a dollar-weighted average effective maturity of 5 to 30 years. Income levels may vary with interest rates and portfolio composition. The fund may concentrate on holdings in specific municipal bond sectors when supply in other sectors is limited. Municipal debt types include advance refunded bonds, revenue bonds, general obligation bonds, insured municipal bonds, private activity bonds, municipal leases, and certificates of participation.

The Nomura Tax-Free USA ETF (LTAX) is designed for investors seeking income exempt from federal income tax. LTAX achieves this by investing primarily in municipal debt obligations issued by state and local governments. These obligations fund public projects like hospitals, schools, and infrastructure. The fund may allocate up to 20% of its portfolio to high-yield debt securities, potentially increasing income at the cost of higher risk. LTAX actively manages its portfolio to maintain a dollar-weighted average effective maturity between 5 and 30 years. The fund's investment approach allows it to concentrate holdings in specific municipal bond sectors based on market conditions, including advance refunded bonds, revenue bonds, general obligation bonds, insured municipal bonds, private activity bonds, municipal leases, and certificates of participation. Income levels from LTAX may fluctuate with changes in interest rates and portfolio composition. As an actively managed fund, LTAX's performance depends heavily on the manager's skill in selecting and allocating municipal debt securities.

Risk Metrics

LTAX carries several risks inherent to its investment strategy. As an actively managed fund, its performance depends on the manager's ability to select securities, introducing manager risk. The fund's focus on municipal debt obligations exposes it to interest rate risk; rising interest rates can decrease the value of the bonds held by the fund. LTAX may concentrate its holdings in specific municipal bond sectors, increasing concentration risk. The fund's allocation of up to 20% to high-yield debt securities introduces credit risk, as these securities are more susceptible to default. With a beta of 0.00 (3Y), LTAX exhibits very low volatility relative to the market. The expense ratio of 0.39% will create a drag on performance, reducing net returns to investors. Past performance does not guarantee future results.

Expense Ratio

0.39%

Dividend Yield

0.00%

Invesco QQQ Trust, Series 1 (QQQ) — 0.18% expense ratio
State Street Energy Select Sector SPDR ETF (XLE) — 0.08% expense ratio
State Street SPDR Dow Jones Industrial Average ETF Trust (DIA) — 0.16% expense ratio
iShares Russell 2000 ETF (IWM) — 0.19% expense ratio
State Street Financial Select Sector SPDR ETF (XLF) — 0.08% expense ratio
State Street Technology Select Sector SPDR ETF (XLK) — 0.08% expense ratio
iShares MSCI Emerging Markets ETF (EEM) — 0.72% expense ratio
State Street SPDR S&P 500 ETF (SPY) — 0.09% expense ratio

Risk Metrics

Beta: 0.00

Questions & Answers

What is LTAX and what does it track?

The Nomura Tax-Free USA ETF (LTAX) is an actively managed ETF that focuses on providing income exempt from federal income tax. It achieves this by investing primarily in municipal debt obligations issued by state and local governments.

These municipal bonds fund various public projects, such as hospitals, schools, and infrastructure.

What is the expense ratio for LTAX?

The expense ratio for the Nomura Tax-Free USA ETF (LTAX) is 0.39%. This means that for every $10,000 invested in the fund, $39 is used to cover the fund's operating expenses.

What are the top holdings in LTAX?

As an actively managed fund, LTAX's holdings are subject to change. Because the fund invests primarily in municipal debt obligations, the top holdings would consist of municipal bonds issued by various state and local governments.

Specific top holdings are not available in the provided data.

Is LTAX a good long-term investment?

Whether LTAX is a suitable long-term investment depends on an individual investor's goals and risk tolerance. LTAX offers the potential for tax-exempt income, which can be attractive to investors in higher tax brackets.

The fund's active management and focus on municipal bonds may provide diversification and potentially stable returns.

How does LTAX compare to similar ETFs?

LTAX differentiates itself through its active management and focus on tax-exempt income from municipal bonds. While specific data on similar ETFs is unavailable, LTAX's expense ratio of 0.39% should be compared to other actively and passively managed municipal bond ETFs.

The fund's AUM of $0.01 billion is relatively small, which may impact liquidity and trading costs.

Does LTAX pay dividends?

According to the provided data, the Nomura Tax-Free USA ETF (LTAX) has a dividend yield of 0.00% as of 2026-03-15. This indicates that the fund is not currently distributing income in the form of dividends.

However, as a fund focused on municipal bonds, LTAX's primary objective is to generate tax-exempt income, which may be distributed at a later date.