ZTWO vs. ZMUN

Last updated Aug 2, 2026

ZTWO (F/M 2-Year Investment Grade Corporate Bond ETF) and ZMUN (F/m Ultrashort Tax-Free Municipal ETF) are both exchange-traded funds - ZTWO is a Short-Term Bond fund tracking the ICE 2-Year US Target Maturity Corporate Index - Benchmark TR Gross, while ZMUN is a Municipal Bonds fund tracking the Bloomberg Municipal Bond Currently Callable Index. Both are passively managed. Their 0.20 correlation means their historical movements had little consistent relationship. ZTWO charges 0.15%/yr vs 0.30%/yr for ZMUN.

Performance

ZTWO vs. ZMUN - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in F/M 2-Year Investment Grade Corporate Bond ETF (ZTWO) and F/m Ultrashort Tax-Free Municipal ETF (ZMUN). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ZTWO achieves a 1.30% return, which is significantly lower than ZMUN's 2.09% return.

ZTWO

• 1D: -0.12%
• 1M: -0.05%
• 6M: 0.87%
• YTD: 1.30%
• 1Y: 3.23%
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: 4.43%

ZMUN

• 1D: 0.04%
• 1M: 0.20%
• 6M: 1.82%
• YTD: 2.09%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
ZMUN F/m Ultrashort Tax-Free Municipal ETF	$247.22K	$279.15K	$385.45K
ZTWO F/M 2-Year Investment Grade Corporate Bond ETF	$88.61K	$63.37K	$67.56K

ZTWO vs. ZMUN - Yearly Performance Comparison

	2026 (YTD)	2025
ZTWO F/M 2-Year Investment Grade Corporate Bond ETF	1.30%	1.15%
ZMUN F/m Ultrashort Tax-Free Municipal ETF	2.09%	0.67%

Correlation

The correlation between ZTWO and ZMUN is 0.20, which is low. Their historical price movements had little consistent relationship.

	Correlation
Correlation (All Time) Calculated using the full available price history since Sep 30, 2025	0.20

Return for Risk

ZTWO vs. ZMUN — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

ZTWO

ZTWO Risk / Return Rank: 94
ZTWO Sharpe Ratio Rank: 94
ZTWO Sortino Ratio Rank: 96
ZTWO Omega Ratio Rank: 95
ZTWO Calmar Ratio Rank: 90
ZTWO Martin Ratio Rank: 94

ZMUN

Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

ZTWO vs. ZMUN - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for F/M 2-Year Investment Grade Corporate Bond ETF (ZTWO) and F/m Ultrashort Tax-Free Municipal ETF (ZMUN). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	ZTWO	ZMUN	Difference
Sharpe ratio: Return per unit of total volatility	2.67	—	—
Sortino ratio: Return per unit of downside risk	4.26	—	—
Omega ratio: Gain probability vs. loss probability	1.53	—	—
Calmar ratio: Return relative to maximum drawdown	3.92	—	—
Martin ratio: Return relative to average drawdown	18.21	—	—

Drawdowns

ZTWO vs. ZMUN - Drawdown Comparison

The maximum ZTWO drawdown since its inception was -0.93%, which is greater than ZMUN's maximum drawdown of -0.13%. Use the drawdown chart below to compare losses from any high point for ZTWO and ZMUN.

Drawdown Indicators

	ZTWO	ZMUN	Difference
Max Drawdown Largest peak-to-trough decline	-0.93%	-0.13%	-0.80%
Max Drawdown (1Y) Largest decline over 1 year	-0.93%	—	—
Current Drawdown Current decline from peak	-0.12%	0.00%	-0.12%
Average Drawdown Average peak-to-trough decline	-0.10%	-0.02%	-0.08%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.20%	—	—

Volatility

Volatility by Period

	ZTWO	ZMUN	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.41%	—	—
Volatility (6M) Calculated over the trailing 6-month period	1.09%	—	—
Volatility (1Y) Calculated over the trailing 1-year period	1.37%	0.54%	+0.83%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	1.49%	0.54%	+0.95%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	1.49%	0.54%	+0.95%

ZTWO vs. ZMUN - Expense Ratio Comparison

ZTWO has a 0.15% expense ratio, which is lower than ZMUN's 0.30% expense ratio.

Dividends

ZTWO vs. ZMUN - Dividend Comparison

ZTWO's dividend yield for the trailing twelve months is around 4.45%, more than ZMUN's 2.92% yield.

Position	TTM	2025	2024
ZMUN F/m Ultrashort Tax-Free Municipal ETF	2.92%	0.70%	0.00%
ZTWO F/M 2-Year Investment Grade Corporate Bond ETF	4.13%	4.31%	0.39%

Frequently Asked Questions

Can I hold both ZTWO and ZMUN in my portfolio?

ZTWO and ZMUN have a correlation of 0.20, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, ZTWO or ZMUN?

On fees, ZTWO is cheaper at 0.15% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, ZTWO or ZMUN?

ZTWO is cheaper with a 0.15% expense ratio, compared with 0.30% for ZMUN.

Which ETF pays a higher dividend yield, ZTWO or ZMUN?

ZTWO has the higher dividend yield at 4.13%, compared with 2.92% for ZMUN.

What is the main difference between ZTWO and ZMUN?

ZTWO is categorized as Short-Term Bond, while ZMUN is Municipal Bonds. ZTWO tracks ICE 2-Year US Target Maturity Corporate Index - Benchmark TR Gross, while ZMUN tracks Bloomberg Municipal Bond Currently Callable Index. Their fees differ too: 0.15% for ZTWO and 0.30% for ZMUN.