Fixed income giant PIMCO is adding to its roster of actively managed ETFs with the addition of the PIMCO Short Term Municipal Bond Strategy (NYSE: SMMU).

This new offering from PIMCO could be of interest to conservative investors that are looking to generate some tax-exempt income.

The new ETF, which began trading on Tuesday, features a portfolio of high-quality, short-duration bonds that are exempt from federal income taxes.

SMMU, which is PIMCO's third actively managed ETF, will track the Barclays 1-3 Year Municipal Bond Index and compete against offerings such as the iShares S&P Short-Term Municipal Bond Index Fund (NYSE: SUB), the SPDR Barclays Short Term Municipal Bond ETF (NYSE: SHM) and the Market Vectors Short Municipal Bond Index ETF (NYSE: SMB).

Actively managed ETFs have been met with a tepid response thus far, but PIMCO previous offerings, the Enhanced Short Maturity Strategy Fund (NYSE: MINT) and the Municipal Bond Strategy Fund (NYSE: MUNI) have netted $45 million and $36 million in assets respectively, impressive totals given that the ETFs made their debuts in November and December.

All three PIMCO ETFs feature expense ratios of 0.35% and the company is planning two launch at least two more actively managed ETFs this year.