Category Review
Municipal bond funds are down for the year after a third-quarter selloff erased the first-half gain
Franklin Dynamic Municipal Bond ETF
$23.41+0.12 (+0.52%)
- 0.30%
- $2.3B
- −1.9%
- 4.26%
- 1.1M sh
- $23.26
- low $23.04high $25.46
The ETF.net FLMI Grade
A
Score 72 out of 100
- 13 of 63
Score 72 of 100 falls in the A band. A is 70 or higher, B 55 to under 70, C 40 to under 55, D 25 to under 40, F under 25.
Cost
The fund’s net expense ratio, ranked against its category.C52 out of 100Rank 29 of 63Mission
Whether the fund did what it promised, tested against its stated mandate.A100 out of 100Rank 1 of 59Risk
How the fund held up when markets fell: downside volatility, drawdowns and tail loss.C54 out of 100Rank 24 of 63Tradability
How easy the fund is to trade: daily volume, and how far its price strays from net asset value.A89 out of 100Rank 1 of 63Holdings
How concentrated the fund is, and how complete and current its disclosed holdings are.B67 out of 100Rank 24 of 63Durability
Whether the fund is likely to stay open, judged by its age, its assets and its issuer’s assets.A76 out of 100Rank 12 of 63
Our read on FLMI
AFranklin's muni fund skips the index-hugging route: a hands-on book of roughly 1,300 tax-exempt bonds, paying out monthly. Federal-tax-free income is the entire job description, and it has been at it since 2017.
The fund seeks high current income exempt from federal income taxes. It normally invests at least 80% of net assets in municipal securities whose interest is federally tax-exempt.
Why people hold it
- One mission, stated plainly: high current income exempt from federal income tax, with at least 80% of net assets in municipal securities. No side quests.
- Roughly 1,300 bonds spread the credit risk thin, so no single issuer's bad headline sets the tone for the portfolio.
- Income lands monthly, matching how most people actually spend it.
- Actively traded, and it sticks tightly to the mandate in its prospectus. One of the stronger implementations in a crowded muni field.
Worth knowing
- At 0.30% a year, the fee sits at the muni ETF median but well above index giants like VTEB and SCMB at 0.03%. The premium buys a managed book, not an index.
- The tax break is federal. State and local treatment depends on where you live and what the fund holds.
- It's a bond fund, so share prices move with interest rates even while the tax-exempt coupons keep arriving.
FLMI Holdings
- Bonds
- 1,425
- 18%
- Ky Pub Energy Auth 5 6/34
Geography
- United States100.00%
FLMI Performance
Shows how $10,000 changes over the selected period, with cash distributions reinvested at the closing price on each ex-dividend date.
Not enough history yet.
FLMI$9,807
Returns run to the Oct 12, 2026 close, with cash distributions reinvested. Each period starts on the same date that many months or years earlier. Periods over one year show the average yearly return.
| Period | FLMI |
|---|---|
| Year to date | −3.4% |
| 1 month | −2.5% |
| 3 months | −5.8% |
| 1 year | −1.9% |
| 3 years | +4.7% |
| 5 years | +1.0% |
| 10 years | — |
Calendar-year total return with cash distributions hypothetically reinvested at the ex-dividend date’s closing price. The current year shows year to date.
| Year | Return bar | FLMI |
|---|---|---|
| 2026 YTD | −3.4% | |
| 2025 | +5.9% | |
| 2024 | +4.9% | |
| 2023 | +7.9% | |
| 2022 | −10.2% | |
| 2021 | +4.1% | |
| 2020 | +6.1% |
FLMI in the news
FLMI Dividends
- 4.26%
- $0.99
- $0.09 per share
- Monthly
Distribution history
FLMI Risk
- 5.8%
How it’s calculated: standard deviation
The sample standard deviation of monthly total returns, multiplied by the square root of 12.
Uses up to 36 complete months, with at least 12 required. Total returns include reinvested distributions.
- 0.04
How it’s calculated: Sharpe ratio
Subtract each month’s Treasury-bill return from the fund’s monthly total return.
Divide the average of those excess returns by their sample standard deviation, then multiply by the square root of 12.
Uses up to 36 complete months, with at least 12 required. Each month uses the Treasury yield quoted at the end of the previous month.
- −14.4%
How it’s calculated: maximum drawdown
The largest percentage decline from an earlier peak, using total returns with reinvested distributions.
Uses up to five years through the last close, with at least 12 months required.
- 0.89
How it’s calculated: beta
The beta figure is supplied by FMP. The comparison index depends on the fund’s broad asset class.
FLMI Cost
0.30%
FLMI0.30%
- The middle half of Other Municipal Bond funds
- Median 0.30%
28 of the 63 Other Municipal Bond funds charge less.
Other funds in Other Municipal Bond
- ATAXFAmerican Century Diversified Municipal Bond ETFExpense ratio 0.25%1 year return −1.9%
- ACGMUCapital Group Municipal Income ETFExpense ratio 0.27%1 year return −1.2%
- AFMUNFidelity Systematic Municipal Bond Index ETFExpense ratio 0.05%1 year return −2.6%
- APZAInvesco National AMT-Free Municipal Bond ETFExpense ratio 0.28%1 year return −4.7%
- BHMOPHartford Municipal Opportunities ETFExpense ratio 0.29%1 year return −1.6%