MCEF ETF — Holdings & Analysis

The First Trust Flexible Municipal High Income ETF (MCEF) is an actively managed fund with $0.02 billion in assets under management and an expense ratio of 0.66%.

MCEF primarily invests in municipal debt securities that pay interest exempt from regular federal income taxes. The fund's strategy focuses on providing high current income by allocating investments across various municipal debt instruments, offering potential tax advantages for investors in higher tax brackets. Past performance does not guarantee future results.

First Trust Flexible Municipal High Income ETF (MCEF) ETF — Price, Holdings & Analysis

The First Trust Flexible Municipal High Income ETF (MCEF) is an actively managed fund with $0.02 billion in assets under management and an expense ratio of 0.66%. MCEF primarily invests in municipal debt securities that pay interest exempt from regular federal income taxes. The fund's strategy focuses on providing high current income by allocating investments across various municipal debt instruments, offering potential tax advantages for investors in higher tax brackets. Past performance does not guarantee future results.

ETF Overview

Under normal market conditions, the fund seeks to achieve its investment objective by investing at least 80% of its net assets (plus any investment borrowings) in municipal debt securities that pay interest that is exempt from regular federal income taxes. Municipal debt securities are generally issued by or on behalf of states, territories or possessions of the United States and the District of Columbia and their political subdivisions, agencies, authorities and other instrumentalities.

The First Trust Flexible Municipal High Income ETF (MCEF) aims to generate income by investing at least 80% of its net assets in municipal debt securities that are exempt from regular federal income taxes. These securities are issued by states, territories, and their political subdivisions. MCEF's investment approach involves actively selecting municipal bonds and other related investments to maximize income while managing risk. The fund's top holdings include closed-end funds such as Nuveen AMT-Free Muni Credit Inc (NVG) at 5.09%, Nuveen AMT-Free Quality Muni Inc (NEA) at 5.03%, and Nuveen Quality Muni Income Fund (NAD) at 4.57%. The fund's sector allocation is heavily concentrated in Cash & Others at 100.0%. The fund's investment strategy is focused on the United States, with 100% of its exposure in US markets. MCEF's flexible approach allows it to adapt to changing market conditions and seek out opportunities within the municipal bond market. Past performance does not guarantee future results.

Risk Metrics

MCEF carries a beta of 2.01, indicating higher volatility compared to the broader market. The fund's expense ratio of 0.66% can create a drag on returns, particularly in a low-yield environment. A significant risk lies in its concentration, with the top 10 holdings accounting for approximately 41.35% of the fund's assets. This focused allocation means that the performance of a few key holdings can significantly impact the overall fund performance. The fund's sector allocation is entirely in Cash & Others, which may limit diversification and expose the fund to risks associated with liquidity and cash management. these may be worth researching concentration and sector risks when evaluating MCEF. Past performance does not guarantee future results.

Expense Ratio

0.66%

What does MCEF hold?

Holding	Weight
Nuveen AMT-Free Muni Credit Inc (NVG)	5.09%
Nuveen AMT-Free Quality Muni Inc (NEA)	5.03%
Nuveen Quality Muni Income Fund (NAD)	4.57%
BlackRock MuniYield Quality (MQY)	4.03%
BlackRock MuniYield Qty III (MYI)	4.00%
Invesco Quality Muni Income Trust (IQI)	3.97%
BlackRock Muni Inter Duration (MUI)	3.91%
BlackRock MuniHoldings Fund (MHD)	3.77%
Nuveen Municipal Credit Opps Fund (NMCO)	3.58%
Nuveen Municipal Credit Income (NZF)	3.43%

How Is the Fund Allocated?

Sector	Weight
Cash & Others	100.0%
Industrials	0.0%

Country	Weight
United States	100.0%

Dividend Yield

3.69%

Invesco QQQ Trust, Series 1 (QQQ) — 0.18% expense ratio
State Street Technology Select Sector SPDR ETF (XLK) — 0.08% 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
iShares MSCI Emerging Markets ETF (EEM) — 0.72% expense ratio
State Street SPDR S&P 500 ETF (SPY) — 0.09% expense ratio

First Trust RiverFront Dynamic Emerging Markets ETF (RFEM) (International Equity) — 0.99% expense ratio
FT Energy Income Partners Enhanced Income ETF (EIPI) (Sector Equity) — 1.11% expense ratio
First Trust Europe AlphaDEX Fund (FEP) (International Equity) — 0.80% expense ratio
First Trust Emerging Markets Small Cap AlphaDEX Fund (FEMS) (International Equity) — 0.80% expense ratio
First Trust NASDAQ Clean Edge Green Energy Index Fund (QCLN) (Sector Equity) — 0.56% expense ratio
First Trust Developed Markets ex-US AlphaDEX Fund (FDT) (International Equity) — 0.80% expense ratio

Risk Metrics

Beta: 2.01

Questions & Answers

What is MCEF and what does it track?

The First Trust Flexible Municipal High Income ETF (MCEF) is an actively managed ETF that focuses on generating high current income by investing primarily in municipal debt securities.

These securities are exempt from regular federal income taxes, making the fund potentially attractive to investors seeking tax-advantaged income.

What is the expense ratio for MCEF?

The expense ratio for the First Trust Flexible Municipal High Income ETF (MCEF) is 0.66%. This means that for every $10,000 invested in the fund, $66 is used to cover the fund's operating expenses.

While this expense ratio provides access to a diversified portfolio of municipal bonds, it is important to consider the impact of expenses on overall returns.

What are the top holdings in MCEF?

As of 2026-03-15, the top holdings in the First Trust Flexible Municipal High Income ETF (MCEF) are: Nuveen AMT-Free Muni Credit Inc (NVG) at 5.09%, Nuveen AMT-Free Quality Muni Inc (NEA) at 5.03%, Nuveen Quality Muni Income Fund (NAD) at…

4.57%, BlackRock MuniYield Quality (MQY) at 4.03%, and BlackRock MuniYield Qty III (MYI) at 4.00%.

Is MCEF a good long-term investment?

Whether MCEF is a suitable long-term investment depends on an individual's investment goals, risk tolerance, and tax situation. The fund's focus on tax-exempt municipal bonds can be attractive for investors seeking income that is not subject to federal income taxes.

MCEF has a dividend yield of 3.69% as of 2026-03-15.

How does MCEF compare to similar ETFs?

MCEF competes with other municipal bond ETFs and closed-end funds in the market. Compared to passively managed municipal bond ETFs, MCEF has a higher expense ratio of 0.66% due to its active management strategy.

Some competitor ETFs may have lower expense ratios, potentially offering a cost advantage.

Does MCEF pay dividends?

Yes, the First Trust Flexible Municipal High Income ETF (MCEF) pays dividends. As of 2026-03-15, MCEF has a dividend yield of 3.69%. The fund distributes income to shareholders regularly, reflecting the interest earned from its holdings of municipal debt securities.

These dividends are generally exempt from regular federal income taxes, making them attractive to investors seeking tax-advantaged income.