More precision. More control. More opportunity. In today’s evolving landscape, staying ahead means having the right tools. Whether you're seeking income, diversification, or managing risk, our actively managed muni ETF strategies give you the flexibility, expertise, and confidence to do more.
Franklin Templeton Fixed Income is one of the largest municipal bond fund managers in the nation, and we apply an active approach that seeks to provide tax-efficient portfolios. Our team of investment professionals conducts in-depth research to uncover opportunities others may miss, and places a premium on risk management, which is fully incorporated into our process.
$67B
Municipal bond assets under management
25+
Investment professionals
24
Years of financial experience, on average
12
Research analysts
Data as of March 31, 2026
Learn more about why active management may lead to more favorable outcomes compared to a passive approach.
Investing in municipal bonds is difficult because the market is vast in size and complex, with a fragmented trading system making it difficult to navigate – for example, there are 50,000 issuers for municipal securities, compared to 6,000 for corporate securities.1
The proportion of municipal bonds rated AAA has fallen sharply since 2007–from 69% to just 17% in 2025. That dramatic shift underscores the need for the in-depth research from professional managers covering every level of the market.2
For many issuers, obtaining a credit rating is not cost effective. Comprehensive credit research is critical to achieve a thorough understanding of non-rated market participants.
When the municipal bond yield curve is steep, it presents opportunities for active managers to add value by exploiting differences in relative value and yields across various bond maturities.
While municipal bond indexes (and the index ETFs that track them) provide broad exposure to the muni market, they do not offer full market coverage. Key segments, representing roughly 1/3 of the investible muni market, are often excluded from the underlying indexes.3
Over the last 36 months, ETFs account for 64% of the flows within the municipal bond space (compared to 36% for mutual funds) - mirroring the broader industry trend of increased ETF adoption.4
While the majority of muni ETF assets sit in passive strategies, 76% of muni ETF launches in 2025 were active.4
| Name | Inception Date | Expense Ratio (%) |
|---|---|---|
| Franklin Dynamic Municipal Bond ETF - FLMI | 8/31/2017 | 0.30 |
| Franklin Municipal Green Bond ETF - FLMB | 8/31/2017 | 0.30 |
| Franklin Municipal High Yield ETF - FTMH | 09/09/1985 | 0.35 |
| Franklin Municipal Income ETF - FTMU | 12/31/1976 | 0.30 |
| Franklin Short-Term Municipal Income ETF - FTMS | 03/18/2013 | 0.20 |
June 8, 2026
Municipals delivered solid May performance, supported by strong fund flows and resilient credit fundamentals. The Franklin Templeton municipal bond team believes munis offer a compelling story around stability, demand, and relative value despite a heavy issuance backdrop.
June 4, 2026
As the population ages, municipal credit is evolving. Jennifer Johnston, Director of Municipal Bond Research at Franklin Templeton Fixed Income, breaks down what the “Silver Tsunami” means for key healthcare sectors and investors in the final part of this two-part muni credit research series.
May 11, 2026
Western Asset: The Muni Monthly covers performance, supply and demand technicals, fundamentals and valuations.
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All investments involve risk, including possible loss of principal.
Please see each product's web page for specific details regarding investment objective, risks, performance, and other important information. Review this information and view the prospectus or summary prospectus carefully before you make any investment decision.
ETFs trade like stocks, fluctuate in market value and may trade at prices above or below their net asset value. Brokerage commissions and ETF expenses will reduce returns.
Franklin Distributors, LLC. Member FINRA/SIPC.
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