Core Viewpoint - The First Trust Short Duration Managed Municipal ETF (FSMB) focuses on U.S. municipal debt to provide federally tax-exempt income while maintaining a short interest-rate profile [1] Group 1: Investment Strategy - The portfolio primarily invests in investment-grade general obligation and revenue bonds, with selective allocations to below-investment-grade issues when credit analysis supports it [1] - Security selection is based on bottom-up fundamental analysis, considering issuers, pledged revenues, covenants, call structures, and use-of-proceeds, while integrating event risk and liquidity assessments at the CUSIP level [1] Group 2: Portfolio Construction - The portfolio aims for a short effective duration with laddered and barbell exposures around refunding cycles and call dates [1] - Issue sizes, state concentrations, and sector weights are managed to control idiosyncratic and geographic risk [1] - Cash and high-quality short municipal bonds are utilized as liquidity buffers [1] Group 3: Rebalancing and Adjustments - Rebalancing and adjustments are made based on relative-value shifts across curves, calls, and credit tiers, or when issuer fundamentals or tax law dynamics change [1]