First Trust Municipal High Income ETF (FMHI) Stock Analysis
For informational purposes only. Not financial advice. Analysis by Sedat ANAK, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
First Trust Municipal High Income ETF (FMHI) trades at $47.58. First Trust Municipal High Income ETF (FMHI) is an actively managed fund focused on providing federally tax-exempt income and long-term capital appreciation. Market cap: $994M, Sector: Financial services.
Price as of Aug 20, 2026 · Last analyzed: Mar 18, 2026Analyst Coverage for FMHI: FMHI does not currently have published analyst price targets in our coverage universe. This is common for smaller-cap names with limited Wall Street coverage. In the absence of analyst consensus, our AI model evaluates FMHI against Financial Services peers across nine fundamental dimensions and assigns an underweight signal based on the underlying data.
FMHI: 1/3 scored disciplines lean bearish. Dominant signal: Izzy Englander bullish.
How is this calculated? →First Trust Municipal High Income ETF (FMHI) Financial Services Profile
First Trust Municipal High Income ETF (FMHI) is an actively managed fund seeking federally tax-exempt income by investing in municipal debt securities. With a focus on long-term capital appreciation, FMHI operates within the asset management sector, offering investors exposure to the municipal bond market.
What Is the Investment Thesis for FMHI?
FMHI presents an investment opportunity for those seeking tax-exempt income through municipal bonds. The fund's active management aims to optimize returns in varying market conditions. With a market capitalization of $994M and a beta of 0.95, FMHI exhibits moderate market sensitivity. The primary value driver is the fund's ability to generate consistent tax-exempt income for investors. A potential catalyst is the increasing demand for tax-advantaged investment options. However, potential risks include interest rate fluctuations and credit risk within the municipal bond market. Investors may want to evaluate these factors when evaluating FMHI's suitability for their portfolios.
Based on FMP financials and quantitative analysis
FMHI Key Highlights
FMHI's primary objective is to provide federally tax-exempt income, appealing to investors seeking tax-advantaged returns.
- The fund invests at least 80% of its net assets in municipal debt securities, ensuring a focused approach to the municipal bond market.
- FMHI is actively managed, allowing for adjustments to the portfolio based on market conditions and credit analysis.
- The ETF structure provides liquidity and ease of trading for investors.
- FMHI's market cap is $0.95B as of 2026-03-18.
Who Are FMHI's Competitors?
FMHI is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | AI Score |
|---|---|---|---|---|
| AVES Avantis Emerging Markets Value ETF | $64.83 | -0.35% | $925M | 47 |
| CDC VictoryShares US EQ Income Enhanced Volatility Wtd ETF | $77.27 | -0.73% | $729M | 47 |
| CGSM Capital Group Short Duration Municipal Income ETF | $26.28 | -0.11% | $1.20B | — |
| CHAT Roundhill Investments - Generative AI & Technology ETF | $87.80 | +0.03% | $1.84B | 47 |
| GWX State Street SPDR S&P International Small Cap ETF | $46.02 | +0.14% | $923M | 47 |
| CII BlackRock Enhanced Capital and Income Fund, Inc. | $24.10 | -1.31% | $988M | 64 |
| RNP Cohen & Steers REIT and Preferred Income Fund, Inc. | $20.35 | -0.83% | $977M | 60 |
| FPF First Trust Intermediate Duration Preferred & Income Fund | $17.65 | -0.34% | $1.07B | 56 |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are FMHI's Key Strengths?
Actively managed approach.
- Focus on tax-exempt income.
- Diversified portfolio of municipal bonds.
- Established brand of First Trust.
What Are FMHI's Weaknesses?
Active management fees can be higher than passive ETFs.
- Performance depends on the skill of the fund managers.
- Susceptible to interest rate risk.
- Credit risk associated with municipal bonds.
What Could Drive FMHI Stock Higher?
Potential changes in tax laws could increase demand for tax-exempt investments.
- Active management strategy aims to outperform passive benchmarks in varying market conditions.
- Increasing investor focus on income-generating assets.
What Are the Key Risks for FMHI?
Rising interest rates could negatively impact bond prices.
- Credit downgrades of municipal bonds could lead to losses.
- Market volatility could affect the fund's performance.
- Competition from other municipal bond ETFs could pressure fees.
What Are the Growth Opportunities for FMHI?
- Increased Demand for Tax-Exempt Income: As tax rates potentially rise, the demand for tax-exempt investments like municipal bonds is expected to increase. FMHI is well-positioned to capitalize on this trend by offering a diversified portfolio of municipal securities. The market for municipal bonds is substantial, with trillions of dollars outstanding, providing ample opportunities for FMHI to grow its assets under management. This growth is expected to be ongoing as investors seek to minimize their tax liabilities.
- Active Management Outperformance: FMHI's active management strategy allows it to potentially outperform passive municipal bond ETFs. By carefully selecting and managing its portfolio, FMHI can identify undervalued securities and adjust its holdings based on market conditions. The success of this strategy depends on the expertise of the fund managers and their ability to generate alpha. The timeline for this growth opportunity is continuous, as active management is an ongoing process.
- Expansion of Product Offerings: First Trust could expand its municipal bond ETF offerings to cater to different investor preferences and risk profiles. This could include launching ETFs focused on specific sectors of the municipal bond market, such as healthcare or education. By diversifying its product line, First Trust can attract a wider range of investors and increase its market share. The timeline for this growth opportunity is medium-term, as it requires product development and regulatory approval.
- Strategic Partnerships: FMHI could form strategic partnerships with financial advisors and wealth management firms to distribute its ETF to a broader audience. By leveraging the distribution networks of these partners, FMHI can increase its visibility and attract new investors. This growth opportunity is particularly relevant in the current environment, where financial advisors are increasingly using ETFs in client portfolios. The timeline for this growth opportunity is short-term, as partnerships can be established relatively quickly.
- Technological Innovation: FMHI can leverage technology to enhance its investment process and improve its operational efficiency. This could include using data analytics to identify investment opportunities and automating certain tasks to reduce costs. By embracing technological innovation, FMHI can gain a competitive advantage and deliver better results for its investors. The timeline for this growth opportunity is long-term, as it requires ongoing investment in technology and talent.
What Are FMHI's Competitive Advantages?
- Established brand reputation of First Trust.
- Expertise in municipal bond investing.
- Active management strategy seeking to outperform passive benchmarks.
What Does FMHI Do?
The First Trust Municipal High Income ETF (FMHI) is an actively managed exchange-traded fund designed to provide investors with federally tax-exempt income while also pursuing long-term capital appreciation. The fund achieves this by investing primarily in municipal debt securities, specifically those that pay interest exempt from regular federal income taxes. FMHI operates within the asset management industry, focusing on the municipal bond market. The fund's investment strategy involves actively selecting and managing a portfolio of municipal bonds to optimize income and capital gains. This active management approach distinguishes FMHI from passively managed index funds, allowing the fund managers to adjust the portfolio based on market conditions and credit analysis. FMHI aims to maintain at least 80% of its net assets in municipal securities, ensuring a consistent focus on tax-exempt income. The fund's investment decisions are guided by in-depth research and analysis of the municipal bond market, including factors such as credit quality, interest rates, and economic trends. By offering a diversified portfolio of municipal bonds, FMHI provides investors with a convenient way to access this asset class and potentially benefit from its tax advantages.
What Products and Services Does FMHI Offer?
- Invests in municipal debt securities.
- Seeks to provide federally tax-exempt income.
- Aims for long-term capital appreciation.
- Actively manages a portfolio of municipal bonds.
- Conducts credit analysis and market research.
- Offers a diversified portfolio of municipal bonds.
How Does FMHI Make Money?
- Generates revenue through management fees charged on assets under management (AUM).
- Invests in municipal bonds to generate tax-exempt income.
- Utilizes active management to optimize portfolio performance.
What Industry Does FMHI Operate In?
FMHI operates within the asset management industry, specifically focusing on the municipal bond market. This market is influenced by factors such as interest rates, credit quality, and economic conditions. The competitive landscape includes other asset managers offering municipal bond funds, both actively and passively managed. FMHI differentiates itself through its active management approach, aiming to outperform passive strategies by identifying undervalued opportunities and managing risk effectively. The municipal bond market provides tax-exempt income, making it attractive to investors in higher tax brackets.
Who Are FMHI's Key Customers?
- Individual investors seeking tax-exempt income.
- Financial advisors and wealth managers.
- Institutional investors looking for municipal bond exposure.
First Trust Municipal High Income ETF (FMHI) Valuation Context
Valued at $994M, FMHI is classified as a small-cap stock.
Key Financial Metrics
Return on equity for First Trust Municipal High Income ETF stands at 0.0%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 0.0%, showing how much profit it generates from its asset base. FMHI trades at a trailing price-to-earnings ratio of 0.00, below the Financial Services sector average of ~18x. Its free cash flow yield is 0.0%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.00 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is 0.0%, the inverse of the P/E and a quick read on earnings relative to price.
FMHI Financials
Bull Case vs Bear Case
Bull Case
- Actively managed approach.
- Focus on tax-exempt income.
- Diversified portfolio of municipal bonds.
- Established brand of First Trust.
Bear Case
- Active management fees can be higher than passive ETFs.
- Performance depends on the skill of the fund managers.
- Susceptible to interest rate risk.
- Credit risk associated with municipal bonds.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · August 2026
FMHI Latest News
No recent news available for FMHI.
FMHI Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for FMHI.
Price Targets
Wall Street price target analysis for FMHI.
FMHI MoonshotScore
What does this score mean?
The MoonshotScore rates FMHI 0-100 on quantitative fundamentals — growth, financial health, valuation, momentum, and risk.
Common Questions About FMHI (Financial Services)
What does First Trust Municipal High Income ETF do?
The First Trust Municipal High Income ETF (FMHI) is an actively managed exchange-traded fund that invests primarily in municipal debt securities. Its main goal is to provide investors with income that is exempt from federal income taxes, while also aiming for long-term capital appreciation.
What are the main risks for FMHI?
The main risks for FMHI include interest rate risk, which can negatively impact bond prices as rates rise. Credit risk is also a concern, as downgrades or defaults of municipal bonds can lead to losses. Market volatility can affect the fund's performance, and competition from other municipal bond ETFs could pressure fees.
What are the key factors to evaluate for FMHI?
Evaluate FMHI on fundamentals, analyst consensus, and risk factors. FMHI presents an investment opportunity for those seeking tax-exempt income through municipal bonds. Not financial advice.
How frequently does FMHI data refresh on this page?
FMHI's price was last updated on Aug 20, 2026 and refreshes on page view during U.S. market hours — it is not a real-time exchange feed. Fundamentals update after quarterly filings; the MoonshotScore recalculates nightly; news aggregates continuously.
What has driven FMHI's recent stock price performance?
First Trust Municipal High Income ETF (FMHI) moves on earnings results, analyst revisions, sector rotation, and market sentiment. Notable catalyst: Actively managed approach. See the News tab for the latest drivers. Past performance does not predict future results.
Should investors consider FMHI overvalued or undervalued right now?
First Trust Municipal High Income ETF (FMHI) has no trailing P/E available here, so lean on price-to-sales and cash flow in the Financials tab. Compare P/E, P/S, and EV/EBITDA against sector peers for a full view.
How do I research FMHI before investing?
Before investing in First Trust Municipal High Income ETF (FMHI), research these four areas: (1) the company's revenue model and competitive position (see Company Overview), (2) financial health through revenue growth, margins, and cash flow (see MoonshotScore), (3) analyst consensus ratings and price targets (see Analyst tab), and (4) specific risk factors that could impact the stock (see Risk Factors section).
Why might investors consider adding FMHI to a portfolio?
Key strength of First Trust Municipal High Income ETF (FMHI): Actively managed approach. Weigh rewards against risks and diversify. Not financial advice.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- AI analysis pending for FMHI.
- Data is based on information available as of 2026-03-18.