Northern Trust Launches 3 New Fixed Income ETF Suites with Innovative Laddering Strategies

Northern Trust Asset Management has introduced three new fixed income ETF suites, focusing on municipal and inflation-linked bonds, as well as core muni options. The suites include 11 ETFs, two of which utilize patent-pending distributing ladder technology for munis, and the third set offers cost-effective, core muni exposure in three maturity timeframes. The technology allows for tax-exempt or inflation-protected monthly income and annual principal distributions without the complexity of building a bond ladder.

Northern Trust Asset Management has introduced three new fixed income ETF suites, focusing on municipal and inflation-linked bonds, as well as core muni options. The suites include 11 ETFs, two of which utilize patent-pending distributing ladder technology for munis, and the third set offers cost-effective, core muni exposure in three maturity timeframes. The technology allows for tax-exempt or inflation-protected monthly income and annual principal distributions without the complexity of building a bond ladder.

The Northern Trust Tax-Exempt Distributing Ladder ETF Suite comprises four funds with staggered maturities from 2030 to 2055, designed to provide tax-exempt monthly income and annual return of principal. Each fund holds a portfolio of high-quality municipal bonds with staggered maturity dates. The Northern Trust Inflation-Linked Distributing Ladder ETF Suite also consists of four funds with similar maturities, providing inflation-protected monthly income and annual return of principal. The third suite, the Northern Trust Tax-Exempt Bond ETF Suite, offers low-fee, tax-exempt bond index ETFs across different maturities, leveraging Northern Trust Asset Management’s extensive experience in managing municipal bond portfolios.

Northern Trust President Daniel Gamba stated, "Our ETFs provide clients with thoughtfully constructed solutions for their investing needs. The creation of distributing ladder ETFs marks an important step forward for our platform, the industry, and investors." Dave Abner, Global Head of ETFs and Funds at Northern Trust Asset Management, added, "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."

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.

Northern Trust Asset Management is a global investment manager with $1.3 trillion in assets under management as of June 30, 2025. The company combines robust capital markets research, expert portfolio construction, and comprehensive risk management to craft innovative and efficient solutions that seek to deliver targeted investment outcomes.

References:

[1] https://www.businesswire.com/news/home/20250818854773/en/Northern-Trust-Launches-Fixed-Income-ETF-Suites