ZTAX — X-Square Municipal Income Tax Free ETF
Data updated: 2026-08-14
ZTAX — X-Square Municipal Income Tax Free ETF. Long Municipal - National Bond · $7.22M AUM · 0.92% expense ratio. Holdings, fees, performance and SEC filings.
ZTAX Fund Overview
ZTAX — X-Square Municipal Income Tax Free ETF is a US ETF managed by X-Square Series Trust, categorised as Long Municipal - National Bond. ABC INVEST provides holdings, performance, costs, cashflows, risk data, prospectus documents and SEC filings, sourced from SEC filings.
- Type: US ETF
- Manager: X-Square Series Trust
- Category: Long Municipal - National Bond
- Assets under management: $7.22M
- 1-year return: 8.2%
- Ticker: ZTAX
- SEC CIK: 0001901443
- SEC series ID: S000075551
- Share class ID: C000234742
ZTAX Investment Objective and Strategy
X-Square Municipal Income Tax Free ETF describes its objective and strategy as follows, from its latest prospectus filed with the SEC by X-Square Series Trust.
Investment objective
X-Square Municipal Income ETF (the Fund) seeks to provide income exempt from federal income tax.
Principal investment strategy
The Fund is an actively managed exchange-traded fund (ETF) that seeks to achieve its investment objective by investing in a non-diversified portfolio of U.S. dollar-denominated municipal securities issued by Puerto Rico, Guam and the U.S. Virgin Islands. Under normal market conditions, the Fund invests at least 80% of its assets (defined as net assets plus any borrowing for investment purposes, if any) in tax-exempt municipal securities, the income from which is exempt from both federal and state income tax. The Fund expects to invest up to 100% of its assets in tax-exempt municipal securities issued by Puerto Rico, Guam and the U.S. Virgin Islands. Municipal securities may be of any maturity, duration or credit rating including those rated below investment grade (commonly known as junk bonds).
The Fund considers non-investment grade fixed income securities to be those that are rated lower than Baa3 by Moodys Investors Service (Moodys) or lower than BBB- by Standard and Poors Rating Group (S&P). Under normal market conditions, the Adviser expects to invest the Funds assets in accordance with the following ranges: ? Puerto Rico: 65% - 80% ? U.S. Virgin Islands: 10% - 25% ? Guam: 5% - 10% The Adviser identifies municipal security investments by analyzing the issuers legal and economic fundamentals, strength and quality of revenues and other fundamentals. The Adviser seeks to maximize the liquidity of the Funds portfolio by identifying individual bonds with favorable liquidity and trading volume characteristics. In seeking to provide attractive yield for the Fund, the Adviser will invest in individual bonds that it considers to be attractive relative values.
In particular, the Adviser intends to analyze the macroeconomic environment of each issuer, including levels and trends of tax receipts, inflation, demographic trends, existing and proposed legislation, as well as their debt issuance calendar and ratios of debt to GDP and debt to GNP. Furthermore, as a consequence of the debt restructuring of Puerto Rico, its financial reporting has improved. This transparency enables the Adviser to conduct timely, fundamental analysis for tax supported debt, revenue bonds, industry factors, revenue trends, state of infrastructure, CAPEX trends and maintenance schedules. The Fund is a non-diversified fund which means that the Fund may invest in fewer securities at any one time than a diversified fund. Other Principal Investments During temporary defensive periods (e.g., in response to adverse market, economic or political conditions), the Fund may invest up to 100% of its total assets in liquid, short-term investments, including high quality, short-term securities.
The Fund may not achieve its investment objective under these circumstances. The Advisers determination that it is temporarily unable to follow the Funds investment strategy or that it is impractical to do so will generally occur only in situations in which a market disruption event has occurred and where trading in the securities selected through application of the Funds investment strategy is extremely limited or absent.
ZTAX Holdings
Top 10 holdings of X-Square Municipal Income Tax Free ETF by percentage of net assets, from the fund's latest SEC N-PORT filing.
| Holding | % of net assets |
|---|---|
| Puerto Rico Cmwlth | 20.25% |
| Puerto Rico Sales Tax Fing Corp Sales Tax Revenue | 13.85% |
| Puerto Rico Sales Tax Fing Corp Sales Tax Revenue | 11.88% |
| Puerto Rico Cmwlth | 8.68% |
| Puerto Rico Sales Tax Fing Corp Sales Tax Revenue | 6.23% |
| Matching Fund Spl Purpose Securitiztn Corp | 6.12% |
| Puerto Rico Cmwlth | 5.85% |
| Puerto Rico Cmwlth | 4.75% |
| Puerto Rico Cmwlth Aqueduct & Swr Auth Revenue | 3.91% |
| Puerto Rico Cmwlth | 3.76% |
ZTAX Portfolio Allocation
Asset-class allocation of X-Square Municipal Income Tax Free ETF by percentage of net assets, from the latest SEC N-PORT filing.
| Asset class | Allocation |
|---|---|
| Fixed Income | 98.0% |
ZTAX Performance
Total returns for ZTAX (as of 2026-10-01), from SEC filings.
| Period | Total return |
|---|---|
| YTD | 3.6% |
| 1 year | 8.2% |
| 3 years (annualised) | 5.3% |
ZTAX Risk Information
Risk metrics for ZTAX, derived from monthly returns in SEC filings.
- 1-year volatility (annualised): 3.9%
ZTAX Costs and Fees
ZTAX costs about $92 per $10,000 invested per year in fund expenses.
- Net expense ratio: 0.92%
- Gross expense ratio: 5.82%
- Portfolio turnover: 1%
- Brokerage commissions: 0.07 bps of average net assets (SEC N-CEN)
ZTAX Cashflows
Over the 12 months to 2026-06, X-Square Municipal Income Tax Free ETF had net inflows of $2.57M, from monthly SEC N-PORT filings.
| Month | Net flow |
|---|---|
| 2026-06 | $2.57M |
| 2026-05 | $0 |
| 2026-04 | $0 |
| 2026-03 | $0 |
| 2026-02 | $0 |
| 2026-01 | −$1.56K |
ZTAX Debt Constituents
Largest debt holdings of X-Square Municipal Income Tax Free ETF by percentage of net assets, from the latest SEC N-PORT filing.
| Debt holding | % of net assets |
|---|---|
| Puerto Rico Cmwlth | 20.25% |
| Puerto Rico Sales Tax Fing Corp Sales Tax Revenue | 13.85% |
| Puerto Rico Sales Tax Fing Corp Sales Tax Revenue | 11.88% |
| Puerto Rico Cmwlth | 8.68% |
| Puerto Rico Sales Tax Fing Corp Sales Tax Revenue | 6.23% |
| Matching Fund Spl Purpose Securitiztn Corp | 6.12% |
| Puerto Rico Cmwlth | 5.85% |
| Puerto Rico Cmwlth | 4.75% |
| Puerto Rico Cmwlth Aqueduct & Swr Auth Revenue | 3.91% |
| Puerto Rico Cmwlth | 3.76% |
ZTAX Prospectus and SEC Filings
Official X-Square Municipal Income Tax Free ETF filings on SEC EDGAR — prospectus, portfolio holdings and annual reports.
- Prospectus (485BPOS) — filed 2025-01-28
- Prospectus supplement (497) — filed 2026-01-29
- Prospectus supplement (497) — filed 2025-04-01
- Portfolio holdings (N-PORT) — filed 2026-08-14
- Portfolio holdings (N-PORT) — filed 2026-05-14
- Portfolio holdings (N-PORT) — filed 2026-02-25
- Annual census (N-CEN) — filed 2025-12-15
- Annual census (N-CEN) — filed 2024-12-16
Related Funds
Other Long Municipal - National Bond funds tracked on ABC INVEST:
Data Sources
ABC INVEST compiles this page from public filings made to the U.S. Securities and Exchange Commission (SEC) through EDGAR: portfolio holdings and monthly cashflows from Form N-PORT, expenses and returns from fund prospectuses (Form 485BPOS) and the SEC DERA Risk/Return Summary data sets, annual data from Form N-CEN, and shareholder reports from Form N-CSR.