New ETF Series to apply a systematic ‘dividend rotation’ strategy enabling investors to capture total return without taxable income distributions.

F/m Investments (“F/m”), an $18 billion investment firm and an innovative provider of exchange-traded funds (ETFs), today announced the launch of the F/m Compoundr Series of ETFs, a suite of tax-efficient fixed income ETFs developed in partnership with Compoundr LLC, the firm behind the Compoundr Strategy. These ETFs are the first to implement an investable index specifically designed to address the impact of dividend tax drag.

The two inaugural ETFs in the series are the F/m Compoundr High Yield Bond ETF (CPHY) and the F/m Compoundr U.S. Aggregate Bond ETF (CPAG). Both funds are the first to employ Compoundr’s rules-based dividend rotation strategy, powered by the newly launched Nasdaq Compoundr™ Indexes. This innovative approach allows investors to gain exposure to income-generating asset classes while gaining greater control over the timing and character of the taxable income they recognize.

“This is exactly the kind of real-world challenge our team is built to solve,” said Alexander Morris, CEO of F/m Investments. “With Compoundr, we’re targeting one of the most underappreciated frictions in the market: dividends that some investors would rather avoid.”

The Compoundr strategy works by rotating between economically equivalent portfolio holdings just before their ex-dividend dates, shifting the return profile toward deferred capital gains instead of current income. This tax-efficient exposure to high-yield and aggregate bonds—anchored by transparent, rules-based indexes developed in collaboration with Nasdaq—helps investors compound their after-tax returns more effectively over time.

“The ETF structure often assumes that dividends are always desirable, but for many investors—particularly trusts and tax-sensitive accounts—they’re not,” said David Cohen, Partner at Compoundr LLC. “Compoundr provides access to the exposures investors want, without the tax inefficiencies they don’t. This is a transparent, rules-based dividend deferral strategy built to preserve the investment thesis while eliminating unnecessary taxable income.”

“We’re giving investors more control over when and how they realize income—within the inherently efficient structure of an ETF,” added David Littleton, President of F/m Investments. “High-yield and investment-grade bonds were ideal starting points, but this strategy has broad applicability across many asset classes going forward.”

The launch coincides with the three-year anniversary of F/m’s innovative U.S. Benchmark Series, which includes the flagship F/m 3-Month Treasury Bill ETF (TBIL). Since debuting in 2022, the series has grown to over $7 billion in assets, with TBIL alone surpassing $5 billion in AUM as of July 31, 2025.

Both ETFs are listed on Nasdaq. The F/m Compoundr High Yield Bond ETF (CPHY) is managed by John Han, Marcin Zdunek, and Kevin Conrath, while the F/m Compoundr U.S. Aggregate Bond ETF (CPAG) is managed by Peter Baden, Marcin Zdunek, and Kevin Conrath. Each fund tracks its corresponding Nasdaq Compoundr™ Index and rotates monthly, offering exposure without yield-based tax liability.

The F/m Compoundr Series is the result of a partnership between F/m Investments, Compoundr, NASDAQ, and lead market makers Susquehanna International Group (CPAG) and GTS Mischler, a division of Mischler Financial (CPHY).

These launches mark a breakthrough in ETF design, introducing a first-of-its-kind structure purpose-built for tax-aware fixed-income investors. The Compoundr strategy and the new F/m Compoundr ETF lineup represent the next chapter in F/m’s mission to drive innovation.

About F/m Investments

F/m Investments is a $18 billion investment firm providing diversified investment strategies to advisors and institutional investors across asset classes, markets, and styles. For more information, please visit www.fminvest.com.

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