FTSM Dividend: Yield, Schedule, and What to Expect
Last updated July 2026
Short answer
FTSM's approximate 4.14% yield (as of August 2026) makes it an income-oriented fund, about $414 a year on a $10,000 position before tax. It tracks an ultra-short-duration US bond index and passes through the income its holdings generate, monthly, net of the 0.29% expense ratio. If income is your goal, FTSM earns its place as a yield-paying core holding. If total return is the goal, the yield matters less than cost and what it holds. Yield is a recent snapshot, not a promise; verify the current figure with First Trust.
How does the FTSM dividend work?
FTSM holds what is in an ultra-short-duration US bond index, collects the income those holdings generate, and distributes it to shareholders monthly, net of its 0.29% fee. The yield you see is trailing distributions divided by price, so it drifts as both change: a falling price raises the quoted yield without a single extra dollar being paid out.
FTSM holds ultra-short-duration US bonds, bundled into one ticker. It distributes about 4.14%, and that payout moves with rates rather than being fixed. It launched in 2014. At 0.29% it costs more than the typical ultrashort bond fund, nearer 0.15%.
What FTSM's dividend pays on a real position
- Approximate yield: 4.14% (August 2026).
- Income on $10,000: roughly $414 a year before tax, or about $4,140 on $100,000.
- Versus the market: the S&P 500 yields around 1.2%, so FTSM pays more.
- Schedule: monthly, in line with how this kind of fund collects income. First Trust publishes the exact ex-dividend and pay dates.
- Fee: the 0.29% expense ratio comes out before you receive anything, so the yield above is already net of it.
How FTSM distributions are taxed
FTSM distributes interest rather than corporate dividends, and interest is generally taxed as ordinary income rather than at the lower qualified-dividend rates. US Treasury interest is usually exempt from state and local tax, and municipal interest is usually exempt from federal tax, which is why funds like this often sit in a tax-advantaged account. First Trust's annual 1099 shows the actual split. Inside an IRA, Roth, or 401(k) none of it applies while the money stays in the account. Full detail is in how dividends are taxed. This is not tax advice.
If income is your goal, compare FTSM against dividend-focused funds. See the best dividend ETFs roundup and best ETFs for monthly income, or analyze how FTSM's income fits your real portfolio in Walnut.
The bottom line on the FTSM dividend
The bottom line: at an approximate 4.14% yield, FTSM is an income-oriented fund. If income is your goal, its yield earns its place alongside the an ultra-short-duration US bond index exposure it carries. If total return is the goal, the yield matters less than cost and what it holds. Treat the figure as a moving snapshot, not a fixed rate, and verify the current yield with First Trust.
More on FTSM
- What is FTSM? (holdings, cost, performance, and the themes it covers)
- Is FTSM a buy? (what you are buying, the case for it, and what to weigh)
Investing in FTSM with AI
Connect the broker you already use and ask Walnut's AI how FTSM fits what you actually hold: what it overlaps with, what it leaves you exposed to, and how it has tracked the S&P 500. Read-only by default, and you approve anything before it reaches your broker.
FAQ
What is FTSM's dividend yield?
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Approximately 4.14% as of August 2026. On a $10,000 position that is roughly $414 of distributions a year before tax. The S&P 500 yields around 1.2%, so FTSM pays meaningfully more than the broad market. Yield is trailing distributions divided by price, so it moves when either changes; verify the current figure on First Trust's fund page.
How often does FTSM pay a dividend?
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FTSM is a bond or Treasury fund, and funds of that kind almost always distribute monthly rather than quarterly, because the income they collect arrives monthly too. First Trust publishes the exact ex-dividend and pay dates in FTSM's distribution calendar, which is the figure to rely on.
Does FTSM pay monthly dividends?
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Yes, FTSM is the kind of fund that distributes monthly. That suits people who want the income to arrive on a regular cadence, though monthly payments make no difference to total return, only to timing. Confirm the schedule on First Trust's distribution calendar.
Where does FTSM's dividend come from?
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FTSM tracks an ultra-short-duration US bond index. The fund collects the income those holdings generate and passes it through to you. The 0.29% expense ratio is taken out along the way, so the yield you see is already net of the fee: you do not pay it separately.
When is FTSM's ex-dividend date?
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First Trust sets and publishes it on FTSM's fund page, and it moves with each distribution, so we do not quote a fixed date here. What it means is the cutoff: buy on or after the ex-dividend date and the seller keeps that distribution. Buying just before the ex-date to capture a payment is not free money, because the fund's price typically drops by roughly the distribution amount when it goes ex.
Can I reinvest FTSM dividends?
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Yes. Most brokers let you turn on automatic dividend reinvestment (a DRIP) so FTSM distributions buy more shares, often fractional ones, without you doing anything. It compounds the position over time. It does not change the tax treatment: in a taxable account the distribution is taxable in the year it is paid, whether you reinvest it or take the cash.
Is FTSM a good choice for dividend income?
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Walnut is informational, not investment advice. FTSM yields roughly 4.14%, which is a genuine income yield. At that rate, $100,000 in FTSM generates roughly $4,140 a year before tax. The trade-off to check is what you give up elsewhere: higher-yielding funds often tilt toward slower-growing sectors or use options strategies that cap upside. See the best dividend ETFs roundup to compare.
Are FTSM dividends qualified?
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Mostly no. FTSM distributes interest income rather than corporate dividends, and interest is generally taxed as ordinary income, not at the lower qualified-dividend rates. US Treasury interest is usually exempt from state and local tax, and municipal bond interest is usually exempt from federal tax, which is why bond funds are often held in tax-advantaged accounts. Your 1099 from First Trust breaks out the actual categories. This is not tax advice.
Walnut is informational, not investment advice. Dividend yields and schedules are approximate, stamped to August 2026, and change; verify current figures with First Trust or your broker.