Category Review
Municipal bond funds are down for the year after a third-quarter selloff erased the first-half gain
Franklin Municipal Income ETF
$7.35+0.05 (+0.68%)
- 0.30%
- $464M
- 0.3M sh
- $7.30
- low $7.23high $8.00
The ETF.net FTMU Grade
B
Score 61 out of 100
- 24 of 63
Score 61 of 100 falls in the B 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.A84 out of 100Rank 39 of 59Risk
How the fund held up when markets fell: downside volatility, drawdowns and tail loss.C46 out of 100Rank 35 of 63Tradability
How easy the fund is to trade: daily volume, and how far its price strays from net asset value.C54 out of 100Rank 30 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.B63 out of 100Rank 26 of 63
Our read on FTMU
BA municipal bond strategy with roots going back to 1976, now running inside an ETF. The job: income exempt from federal tax, spread across roughly 300 bonds, measured against the Bloomberg Municipal Bond Index, at a fee sitting right on the category median.
The fund seeks a high level of current income exempt from federal income tax, consistent with preservation of capital.
Why people hold it
- Long lineage. The strategy dates to 1976, which puts decades of rate cycles behind the approach now delivered in an ETF wrapper.
- The mandate is refreshingly plain: a high level of current income exempt from federal income tax, consistent with preservation of capital, spread over roughly 300 municipal bonds.
- The 0.30% fee lands exactly at the muni-cohort median and undercuts Franklin's own FTCA (0.35%), which is measured against the same Bloomberg muni benchmark.
Worth knowing
- Hands-on bond picking has a price. Broad index muni funds like VTEB and SCMB charge 0.03%, so 0.30% is what the active seat costs here.
- Payouts have arrived on an irregular cadence rather than a fixed monthly rhythm, so income timing is less predictable than at some muni peers.
- The tax break in the objective is federal. It says nothing about state or local income tax, which varies by where you live.
FTMU Holdings
- Bonds
- 275
- 16%
- PGLXX
FTMU 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.Not enough history yet.Not enough history yet.Not enough history yet.
FTMU$9,633
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 | FTMU |
|---|---|
| Year to date | −3.7% |
| 1 month | −3.0% |
| 3 months | −6.3% |
| 1 year | — |
| 3 years | — |
| 5 years | — |
| 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 | FTMU |
|---|---|---|
| 2026 YTD | −3.7% | |
| 2025 | 0.0% |
FTMU in the news
FTMU Dividends
- $0.03 per share
- Monthly
Distribution data unavailable.
Distribution history
FTMU Risk
- —
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.
- —
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.
- —
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.
- 0.16
How it’s calculated: beta
The beta figure is supplied by FMP. The comparison index depends on the fund’s broad asset class.
FTMU Cost
0.30%
FTMU0.30%
- 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
- BPWZInvesco California AMT-Free Municipal Bond ETFExpense ratio 0.28%1 year return −3.7%
- BPMIOPGIM Municipal Income Opportunities ETFExpense ratio 0.25%1 year return −0.6%
- BBABInvesco Taxable Municipal Bond ETFExpense ratio 0.28%1 year return −3.1%
- BMUSTColumbia Multi-Sector Municipal Income ETFExpense ratio 0.23%1 year return −2.8%
- BRVNUXtrackers Municipal Infrastructure Revenue Bond Active ETFExpense ratio 0.15%1 year return −2.6%