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.
$70B
Municipal bond assets under management
24+
Investment professionals
21
Years of financial experience, on average
10
Research analysts
Data as of June 30, 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 2026. 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 60% of the flows within the municipal bond space (compared to 40% for mutual funds) - mirroring the broader industry trend of increased ETF adoption.4
While the majority of muni ETF assets sit in passive strategies, 100% of muni ETF launches in the first half of 2026 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 |
April 14, 2026
Private credit and public high yield can look similar on the surface, according to the Franklin Templeton Fixed Income high yield team. Both offer income and both carry credit risk. The bigger difference is how each market lets investors see price and manage that risk as conditions change.
February 25, 2026
On this month’s Talking Markets podcast, we sit down with guests Rick Polsinello from the Franklin Templeton Institute and Ben Barber of Franklin Templeton Fixed Income to discuss the US economy and the municipal bond market in 2026. They cover why they view the economy as resilient, some key investment themes for the year, and the growing opportunity within municipal bonds.
January 20, 2026
Looking ahead to 2026, Franklin Templeton Fixed Income Municipal Bond Director Ben Barber says there are a few key factors that will likely shape the municipal bond market.
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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.
Footnotes
