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First Trust Municipal High Income ETF (FMHI) Hits 52-Week High

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For investors looking for momentum, First Trust Municipal High Income ETF (FMHI - Free Report) is probably a suitable pick. The fund just hit a 52-week high and is up 15.6% from its 52-week low price of $48.07/share.

Let’s take a look at the fund and its near-term outlook to gain an insight into where it might be headed:

FMHI in Focus

The fund’s primary investment objective is to seek to provide federally tax-exempt income, and its secondary objective is long-term capital appreciation.It has AUM of $207.8 million and charges 55 basis points in annual fees.

Why the Move?

These bonds are excellent choices for investors seeking a steady stream of tax-free income. The aggravating pandemic was troubling for muni bonds. Since entities like airports, schools and colleges were closed during the lockdown, munis were severely hurt. Lower levels of tax collections were a concern. Notably, with economies reopening on the back of better COVID-19 metrics, accelerated vaccination reducing health risks, and fiscal stimulus boosting consumers’ financial health, munis have a brighter outlook. This is making funds like FMHI an attractive investment option.

More Gains Ahead?

It seems like the fund will remain strong, with a positive weighted alpha of 13.59, which gives cues of further rally.

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