FTNY vs SCMB

FTNYBFranklin New York Municipal Income ETF

SCMBASchwab Municipal Bond ETF

In short

FTNY A 1983-vintage New York muni portfolio in ETF clothing, converted from a Putnam fund in 2025. Actively run for income exempt from federal, New York State and New York City income taxes, 0.36% net of a waiver through March 31, 2027.

SCMB Schwab's take on the core muni sleeve: three basis points, thousands of AMT-free bonds from across the country, and a monthly distribution. Bottom-of-the-table pricing, no frills attached.

Stated mandate

FTNY The fund seeks a high level of current income exempt from federal and New York State and City personal income taxes while preserving capital.

SCMB The fund seeks to track, before fees and expenses, the total return of an index representing the U.S. AMT-free municipal bond market.

Why people hold it

• FTNY Triple exemption: it targets interest free of federal, New York State and New York City personal income tax, a layer broad national muni funds don't aim for.sec.gov
• Not a startup fund. The portfolio ran as Putnam New York Tax Exempt Income Fund from 1983 and reorganized into this ETF in October 2025 with the same goal and strategy.franklintempleton.com
• Active security picking, roughly 300 bonds across general obligation, revenue and tender option issues, mainly investment grade with maturities of three years or longer.sec.gov
• Income lands monthly rather than quarterly.

• SCMB Three basis points a year, against a 0.30% median for muni bond funds. Among the top-graded names in the category, only Vanguard's VTEB matches that fee.
• Follows the ICE AMT-Free Core U.S. National Municipal Index across thousands of bonds and issuers, so no single borrower or state drives the portfolio.
• Plain passive plumbing done well: it stays close to its index, trades actively, and pays monthly. One of the stronger implementations in the muni aisle.

Worth knowing

• FTNY Cost runs above the category median: 0.36% net of a waiver through March 31, 2027 (0.37% gross), versus 0.03% at VTEB and 0.05% at MUB, both broad national index funds.
• Single-state by design, so New York budget and local credit news move this portfolio more than it would a 50-state muni fund.sec.gov
• The prospectus allows up to 25% in below-investment-grade bonds (none rated below B, max 10% in B), and some interest can fall under the federal AMT.sec.gov

• SCMB Launched in 2022, so its live record is shorter than muni staples like MUB and VTEB, even though the strategy is the same broad-market idea.
• Bond math still applies. This is a portfolio of municipal bonds, so share prices move opposite to interest rates.
• National in scope, not single-state like NYF, so it is not built around any one state's tax rules.

Full FTNY profile⁠

Full SCMB profile⁠