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MFS Grows ETF Lineup With 2 New Active Income Funds

BY | ETF Database
9:19 am ET 09/10/26 | 8 VIEWS
On Thursday, September 10, MFS Investment Management expanded its ETF collection with the launch of two new funds. Both funds provide new, actively managed takes on short-duration fixed income exposure.Key Takeaways MFS Investment Management has released two new funds, adding new active fixed income ETFs to its library. The MFS Active Short Duration Income ETF (MFSD) focuses on high-quality corporate bonds and structured debt. The MFS Active Short Muni Bond ETF (MFSX) leans into municipal bonds. Both active funds present compelling opportunity sets in the current environment. Especially given how well short-duration corporate bonds and munis can perform amid shifting interest rates. “It has been an exciting year for MFS’ ETF lineup, with continued launches underscoring the strong momentum behind our expanding platform,” noted Emily Dupre, National Sales Manager at MFS. “Following the launch of two additional equity ETFs in June, expanding our fixed income offering felt like a natural next step amid strong client demand. We believe these kinds of higher-quality, shorter-duration strategies can be compelling for investors reluctant to put money to work in a more volatile macro environment.”A New Take on Short-Duration BondsThe first fund on the docket is the MFS Active Short Duration Income ETF. With a net expense ratio of 25 basis points, MFSD looks to provide income and capital appreciation by investing in short-duration bonds. This includes a focus on high-quality corporate bonds, along with an allocation towards structured debt. In terms of duration, MFSD’s portfolio team looks to keep the fund’s dollar-weighted average duration similar to that of the Bloomberg 1-5 Year Government/Credit Bond Index, give or take one year. This lower duration can help the fund pursue compelling income while mitigating the impact of rising interest rates. As part of the advantage of active management, MFSD may shift its sector and quality exposures. Doing so can help the fund better position itself during shifting market conditions, while potentially accessing new opportunities for dynamic income. See More: Navigate Interest Rate Uncertainty With CLO ExposureAn Active Muni OpportunityThe other ETF joining the MFS lineup on Thursday is the MFS Active Short Muni Bond ETF. An actively managed municipal bond fund, MFSX seeks to generate income that is exempt from U.S. federal income tax. MFSX has a net expense ratio of 0.25%. When choosing municipal securities to invest in, MFSX’s portfolio team blends bottom-up and macro analysis, while keeping valuation and risk in mind. This new municipal bond fund looks to keep its dollar-weighted effective duration no longer than three years. MFSD and MFSX join a growing MFS roster where several established strategies have been seeing strong momentum. For instance, the MFS Blended Research International Equity ETF (BRIE) recently crossed the $500 million AUM threshold. This international equity fund gained over $300 million in net flows over the past six months, as of September 8, 2026. For more news, information, and analysis, visit the Fixed Income Content Hub.

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