On Wednesday, August 26, 2026, Northern Trust Asset Management expanded its suite of distributing ladder ETFs with the launch of eight new funds. The newly launched ETFs offer additional target maturity options for Northern Trust’s existing strategies.
Key Takeaways:
- Northern Trust has grown its collection of distributing ladder ETFs, launching eight new funds for goals-focused investors.
- Four of the funds provide exposure to Treasury inflation-protected securities (TIPS), while the other four invest in high-quality municipal bonds.
- Distributing ladder ETFs offer structured income and annual principal. This can be ideal for goals-focused investors and those planning for retirement.
The Distributing Ladder ETF Suite Explained
To start, Northern Trust’s distributing ladder suite is built to help investors tackle financial goals, navigate long-term income, plan for retirement, and more. Each distributing ladder ETF is built around a laddered portfolio, with each rung representing a specific calendar year. Each rung holds a selection of bonds that reach maturity within that calendar year.
Distributing ladder ETFs handle things differently when it comes to principal. Traditionally, when a bond is called, a bond ladder ETF invests that principal into a future rung of the portfolio.
Instead of reinvesting the principal, distributing ladder ETFs pay it out to investors on an annual basis. Furthermore, the fund itself will liquidate once its final rung is complete.
“Inflation and taxes can both erode the income investors rely on to meet future spending needs,” noted Dave Abner, Northern Trust Asset Management global head of ETFs and funds. “By expanding our Distributing Ladder ETF suite, we’re giving investors more tools to plan for those needs with greater precision, whether they are seeking inflation-protected income, tax-exempt income or a defined maturity profile in a simple ETF structure.”
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