FTNY vs VCRM

FTNYBFranklin New York Municipal Income ETF

VCRMAVanguard Core Tax-Exempt Bond E

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.

VCRM Vanguard's active answer in a mostly-index category: managers working the whole muni curve for 0.12% a year, under half the muni ETF median fee. Monthly income, exempt from federal personal income taxes.

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.

VCRM The fund seeks total return through current income exempt from federal personal income taxes and capital appreciation.

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.

• VCRM Active management priced at 0.12% a year, less than half the 0.30% median for muni ETFs.
• Run by Vanguard's Fixed Income Group, with all-curve exposure to primarily high-quality investment-grade munis spread across sectors, states and credit tiers.prnewswire.com
• Pays monthly, with income the fund seeks to keep exempt from federal personal income taxes.vanguard.com
• Sticks tightly to its stated mandate and grades among the strongest implementations in its muni peer group.

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

• VCRM You pay up for the manager: index peers VTEB and SCMB run at 0.03%, a quarter of VCRM's 0.12%.
• Launched in November 2024, so there is only a short record to judge the active mandate on.
• All-curve exposure puts longer maturities in the mix, so prices move with rates. And the exemption is federal: state treatment of a national muni fund depends on where you live.prnewswire.com

Full FTNY profile⁠

Full VCRM profile⁠