Northern Trust Launches Fixed Income ETF Suites
New Active ETFs Feature Innovative Distributing Ladder Design
Two suites of innovative distributing ladder ETFs use patent-pending technology designed to help investors manage the decumulation phase of retirement income and achieve cash flow management goals, while minimizing taxes or protecting against inflation. The third suite offers low-fee, tax-exempt bond index ETFs across different maturities, leveraging Northern Trust Asset Management’s more than 30 years of experience managing municipal bond portfolios for investors.
“Northern Trust ETFs are designed from investor insights derived over decades of managing money for many of the wealthiest individuals in the country,” Northern Trust Asset Management President
“In an increasingly complex market environment, investors need access to innovative new solutions that efficiently and transparently aid them in managing their risk and empower them to achieve their most important financial goals,” Northern Trust Asset Management Global Head of ETFs and Funds
Northern Trust Tax-Exempt Distributing Ladder ETF Suite
Northern Trust Tax-Exempt Distributing Ladder ETFs are an innovative retirement income and cash flow management tool, designed to provide investors tax-exempt monthly income and annual return of principal for the life of the fund, in the convenience of a single ETF. Each fund holds a portfolio of high-quality municipal bonds with staggered maturity dates, in an exchange-traded product offering a level of accessibility, liquidity, diversification and transparency not typically found in traditional bond ladders.
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Northern Trust 2030 Tax-Exempt Distributing Ladder ETF(NYSE: MUNA) -
Northern Trust 2035 Tax-Exempt Distributing Ladder ETF(NYSE: MUNB) -
Northern Trust 2045 Tax-Exempt Distributing Ladder ETF (NYSE: MUNC) -
Northern Trust 2055 Tax-Exempt Distributing Ladder ETF (NYSE: MUND)
Northern Trust Inflation-Linked Distributing Ladder ETF Suite
Northern Trust Inflation-Linked Distributing Ladder ETFs are an innovative retirement income and cash flow management tool, designed to provide investors inflation-protected monthly income and annual return of principal with inflation protection for the life of the fund, in the convenience of a single ETF. Each fund holds a portfolio of TIPS with staggered maturity dates, in an exchange-traded product offering a level of accessibility, liquidity, diversification and transparency not typically found in traditional bond ladders.
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Northern Trust 2030 Inflation-Linked Distributing Ladder ETF (NYSE: TIPA) -
Northern Trust 2035 Inflation-Linked Distributing Ladder ETF (NYSE: TIPB) -
Northern Trust 2045 Inflation-Linked Distributing Ladder ETF (NYSE: TIPC) -
Northern Trust 2055 Inflation-Linked Distributing Ladder ETF (NYSE: TIPD)
Northern Trust Tax-Exempt Bond ETF Suite
Northern Trust Tax-Exempt Bond ETFs provide investors tax-exempt income with low fees. Funds track different maturity segments of the municipal bond market, providing a diversified portfolio of investment grade municipal bonds at the investor’s preferred time horizon and risk level.
- Northern Trust Short Term Tax-Exempt Bond ETF (NASDAQ: TAXS)
- Northern Trust Intermediate Tax-Exempt Bond ETF (NASDAQ: TAXI)
- Northern Trust Tax-Exempt Bond ETF (NASDAQ: TAXT)
The 11 funds launched today are the first under the new Northern Trust ETFs brand. Northern Trust Asset Management’s current ETFs, FlexShares® Exchange Traded Funds, will be renamed to Northern Trust ETFs in 2026. For current investors in FlexShares ETFs, the renaming will not affect the funds, their investment process, or portfolio managers.
About Northern Trust ETFs
Northern Trust ETFs, designed from investor insights and built to meet diverse goals.
ETFs built on a legacy of deep insight into investor needs – many of the largest institutions and some of the wealthiest individuals in the
About Northern Trust Asset Management
Northern Trust Asset Management is a global investment manager that helps investors navigate changing market environments in efforts to realize their long-term objectives. Entrusted with
Northern Trust Asset Management is composed of
About
Before investing, carefully consider the investment objectives, risks, charges and expenses. This and other information are in the prospectus and a summary prospectus, copies of which may be obtained by visiting https://ntam.northerntrust.com/united-states/individual/etfs . Read the prospectus carefully before you invest.
FlexShares ETFs are distributed by
All investments are subject to investment risk, including the possible loss of principal amount invested. Investments do not typically grow at an even rate of return and may experience negative growth. As with any type of portfolio structuring, attempting to reduce risk and increase return could, at certain times, unintentionally reduce returns.
NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE
Risks applicable to NT Tax-Exempt Bond Suite:
Liquidity Risk is the risk that certain securities may be less liquid than others, which may make them difficult or impossible to sell at the time and the price that the Fund would like, and the Fund may have to lower the price, sell other securities instead or forgo an investment opportunity, adversely affecting the value of the Fund’s investments and its returns. Municipal Investments Risk is the risk that the value of municipal security generally depends on the financial and credit status of the issuer. Constitutional amendments, legislative enactments, executive orders, administrative regulations, voter initiatives, and the issuer’s regional economic conditions may affect municipal security’s value, interest payments, repayment of principal and the Fund’s ability to sell the security. Municipal Market Volatility Risk is the risk that the Fund may be adversely affected by volatility in the municipal market. The municipal market can be significantly affected by adverse tax, legislative, political or public health changes and the financial condition of the issuers of municipal securities. Small Fund Risk is the risk that the Fund will not grow to or maintain an economically viable size, in which case it may experience greater tracking error to its Underlying Index than it otherwise would at higher asset levels, or it could ultimately liquidate without shareholder approval.
Risks applicable to Tax-Exempt Distributing Ladder ETF Suite:
Credit (or Default) Risk is the risk that the inability or unwillingness of an issuer or guarantor of a fixed-income security, or a counterparty to a repurchase or other transaction, to meet its principal or interest payments or other financial obligations in a timely manner will adversely affect the value of the Fund’s investments and its returns. Fluctuation of Yield and Principal Payment Risk is the risk that the Fund, unlike a direct investment in a bond that has a level coupon payment and a fixed payment at maturity, will make distributions of income that vary over time. Unlike a direct investment in bonds, the breakdown of returns between Fund distributions are not predictable at the time of your investment. Fund Termination Risk is the risk that, unlike an investment in a traditional investment company with perpetual existence, the Fund is designed to liquidate in the terminal year and thus a shareholder of the Fund will not receive distributions from the Fund beyond the terminal year. Liquidity Risk is the risk that certain securities may be less liquid than others, which may make them difficult or impossible to sell at the time and the price that the Fund would like, and the Fund may have to lower the price, sell other securities instead or forgo an investment opportunity, adversely affecting the value of the Fund’s investments and its returns. Municipal Investments Risk is the risk that the value of a municipal security generally depends on the financial and credit status of the issuer. Constitutional amendments, legislative enactments, executive orders, administrative regulations, voter initiatives, and the issuer’s regional economic conditions may affect a municipal security’s value, interest payments, repayment of principal and the Fund’s ability to sell the security. Municipal Market Volatility Risk is the risk that the Fund may be adversely affected by volatility in the municipal market. The municipal market can be significantly affected by adverse tax, legislative, political or public health changes and the financial condition of the issuers of municipal securities. Return of Capital/Distribution Risk is the risk that the Fund’s distributions will involve a return of capital, which, although not currently taxable, may lower a shareholder’s basis in the Fund’s shares, thus potentially subjecting the shareholder to future tax consequences in connection with the sale of Fund shares, even if sold at a loss to the shareholder’s original investment. Small Fund Risk is the risk that the Fund will not grow to or maintain an economically viable size, in which case it may liquidate prior to the anticipated liquidation date in the terminal year, thus impacting the Fund’s ability to achieve its investment objective.
Risks applicable to Inflation-Linked Distributing Ladder ETF Suite:
Credit (or Default) Risk is the risk that the inability or unwillingness of an issuer or guarantor of a fixed-income security, or a counterparty to a repurchase or other transaction, to meet its principal or interest payments or other financial obligations in a timely manner will adversely affect the value of the Fund’s investments and its returns. Fluctuation of Yield and Principal Risk is the risk that the Fund, unlike a direct investment in a bond that has a level coupon payment and a fixed payment at maturity, will make distributions of income that vary over time. Unlike a direct investment in bonds, the breakdown of returns between Fund distributions are not predictable at the time of your investment. Fund Termination Risk is the risk that, unlike an investment in a traditional investment company with perpetual existence, the Fund is designed to liquidate in the terminal year and thus a shareholder of the Fund will not receive distributions from the Fund beyond the terminal year. Inflation-Indexed Securities Risk is the risk that the value of inflation protected securities, such as TIPS, generally will fluctuate in response to changes in real interest rates, generally decreasing when real interest rates rise and increasing when real interest rates fall. In addition, interest payments on inflation-protected securities will generally vary up or down along with the rate of inflation. Return of Capital/Distribution Risk is the risk that the Fund’s distributions will involve a return of capital, which, although not currently taxable, may lower a shareholder’s basis in the Fund’s shares, thus potentially subjecting the shareholder to future tax consequences in connection with the sale of Fund shares, even if sold at a loss to the shareholder’s original investment. Small Fund Risk is the risk that the Fund will not grow to or maintain an economically viable size, in which case it may liquidate prior to the anticipated liquidation date in the terminal year, thus impacting the Fund’s ability to achieve its investment objective.
Individual bonds carry an obligation to fully return principal to investors at maturity while the Northern Distributing Ladder ETFs have no such obligation. The net asset value of the ETFs will decline over time as income payments are made to shareholders.
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