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Northern Trust launches eight distributing ladder ETFs with new target dates
The new lineup adds target maturity options across 5, 10, 20, and 30-year horizons and pays principal to investors annually rather than rolling it into later rungs.
Northern Trust Asset Management expanded its distributing ladder ETF lineup with the launch of eight new funds on Wednesday, August 26, 2026, adding additional target maturity options to existing strategies. Each distributing ladder ETF is built around a laddered portfolio, with each rung tied to a specific calendar year. Bonds in each rung mature within that year, and unlike traditional bond ladder ETFs that reinvest called principal into a future rung, distributing ladder ETFs pay that principal out to investors on an annual basis. Northern Trust also said the funds will liquidate after the final rung is complete, and it highlighted concerns that inflation and taxes can erode the income investors rely on for future spending needs. Dave Abner, Northern Trust Asset Management global head of ETFs and funds, said the expanded suite is designed to help investors plan with more precision through a simple ETF structure. The eight new ETFs split between Treasury inflation-protected securities and municipal bonds. The Northern Trust 2031, 2036, 2046, and 2056 Inflation-Linked Distributing Ladder ETFs focus on TIPS, while the Northern Trust 2031, 2036, 2046, and 2056 Tax-Exempt Distributing Ladder ETFs focus on municipal bonds.