Fixed Income Active

FTMS Franklin Short-Term Municipal Income ETF

Tax-advantaged income. The fund pursues income free from federal income tax with a portfolio of municipal bonds selected from many states and market sectors.
Focus on high credit quality with lower interest rate sensitivity. The national portfolio invests mainly in investment grade bonds with a maturity of 3 years or less.
Muni expertise. Franklin Templeton is one of the largest active muni bond managers in the nation. The team’s experience navigating through multiple market cycles helps them uncover opportunities and identify risks.

Overview

See the risks and other important information.

Fund Facts

Fund description

The fund seeks as high a level of current income exempt from federal income tax as is consistent with preservation of capital.

Benchmark⁴: Bloomberg 3-year Municipal Bond Index
Fund Inception Date⁵: 03/18/2013
Listing Exchange: NYSE Arca
Dividend Frequency, if any: Monthly
Distribution Rate at NAV⁶As of 02/06/2026 (Updated Daily): 3.71%
30-Day SEC Yield—With Waiver^7,8,9As of 12/31/2025 (Updated Monthly): 3.32%
30-Day SEC Yield—Without Waiver^8,9As of 12/31/2025 (Updated Monthly): 3.31%
Taxable Equivalent Yield—With WaiverAs of 12/31/2025 (Updated Monthly): 5.61%
Taxable Equivalent Yield—Without WaiverAs of 12/31/2025 (Updated Monthly): 5.59%

Expenses & Fees

As of 10/08/2025

Gross Expense Ratio¹⁰: 0.20%
Net Expense Ratio^10,11: 0.20%

Identifiers

Ticker: FTMS
CUSIP Code: 746729730
ISIN Code: US7467297302
Bloomberg Code: FTMS US

Average Annual Total Returns As of 12/31/2025

View performance section for additional info As of 12/31/2025

Market Price Return

NAV Return

4.26%1 Year
3.90%3 Years
2.07%5 Years
1.92%10 Years
1.65%Since Inception
03/18/2013

Performance data quoted represents past performance, which does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than the original cost. Current performance may be lower or higher than the figures shown.

State / U.S. Territory Focus

View portfolio section for additional info

As of 12/31/2025 % of Total (Updated Monthly)

State / U.S. Territory Focus
California12.24%
Industrial Dev. Revenue and Pollution Control19.23%
Housing17.24%
Texas10.44%
Florida8.40%
Education10.16%
Health Care9.14%
Kentucky6.16%
Local8.82%
Ohio4.75%
Utilities7.57%
Transportation7.15%
Special Tax5.68%
Lease3.19%
Refunded3.04%

Additional Fund Info

Fiscal Year End: November 30
Listing Date⁵: 10/27/2025
ETF Type: Active
Morningstar Category: Muni National Short

Trading Characteristics

As of 02/06/2026 (Updated Daily)

Shares Outstanding: 16,389,161
Daily Volume: 49,422
20-Day Average Volume: 79030.45

Manager and Commentary

Commentary Highlights

12/31/2025

Markets: As per Barclays, in the fourth quarter of 2025 (Q4), new issuance of municipal (muni) bonds increased 14% year-over-year compared to 2024, culminating in a new annual record with tax-exempt issuance surpassing $500 billion, per Barclays. By quarter end, the yield on the benchmark 10-year UST note moved two basis points (bps) higher to 4.17%, and the yield on the 30-year UST bond increased by 11 bps to 4.84%. US market sentiment dipped in throughout the quarter due to consumers concerns over personal finances problems, driven by weak labor and persistent inflation expectations, according to the latest University of Michigan's consumer surveys. The mid-November resolution of the US federal government shutdown supported sentiment through year-end. The Federal Reserve (Fed) policy also drove overall returns, with three consecutive 25-bp rate cuts which were well received by the market. However, the future path of cuts grew ambiguous as Fed members were split on the need for further adjustments.
Contributors: Underweight allocation to bonds with two years to maturity and an overweight to 10-year maturing bonds.
Detractors: Security selection in BBB rated bonds and an underweight allocation to muni bonds with 6-months to maturity.
Outlook: Municipal bond valuations continue to appear attractive, particularly on a tax-adjusted basis. In a more challenging environment, strong bottom-up research and disciplined security selection will be essential to identifying relative value and preserving portfolio quality.

For complete information, please see the full commentary:

Franklin Templeton Fixed Income

Managed Fund Since 2024

Managed Fund Since 2016

Managed Fund Since 2024

Performance

Average Annual Total Returns

¹⁵

As of 12/31/2025

Performance data quoted represents past performance, which does not guarantee future results. Current performance may be lower or higher than the figures shown. Principal value and investment returns will fluctuate, and investors' shares, when redeemed, may be worth more or less than the original cost. Returns are based on Market Price or NAV, assume the reinvestment of all distributions and the deduction of all Fund expenses. Performance would have been lower if expenses had not been waived in various periods. Returns for periods of less than one year are not annualized.

Month End

Quarter End

As of

Franklin Short-Term Municipal Income ETF - Market Price Return (%)

Month End

As of 12/31/2025

Franklin Short-Term Municipal Income ETF - NAV Return (%)

Month End

As of 12/31/2025

Bloomberg 3-year Municipal Bond Index (%) ⁴

Month End

As of 12/31/2025

Prior to close of business on October 24, 2025, the ETF operated as an open-end mutual fund. The ETF has an identical investment goal and substantially similar investment strategies as the predecessor mutual fund. The NAV returns include returns of the Class R6 shares of the predecessor mutual fund prior to the ETF's commencement of operations. Prior to the ETF's listing on 10/27/2025, the NAV performance for the Class R6 shares of the predecessor mutual fund is used as a proxy for market price returns, which are typically calculated using the official closing price of the ETF. If the predecessor mutual fund had been structured as an exchange-traded fund, its performance may have differed. Returns for periods prior to inception of Class R6 shares are based on previous share classes. Returns for those shares were not adjusted for the lower operating expenses; had they been adjusted, performance would be higher.

Overall Morningstar Rating: Overall Morningstar Rating: 4 out of 5 stars
As of 01/31/2026

3 Years: 3 Years: 4 out of 5 stars
207 Funds in category

5 Years: 5 Years: 4 out of 5 stars
194 Funds in category

10 Years: —

Rating Category: Muni National Short

The fund's overall Morningstar Rating measures risk-adjusted returns and is derived from a weighted average of the performance figures associated with its 3-, 5- and 10-year (if applicable) rating metrics.

©2025 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.

Portfolio

Assets

As of02/08/2026 (Updated Daily)

Total Net Assets: $163.64 Million

Positions

As of 12/31/2025 (Updated Monthly)

Number of Holdings

Fund: 199

Portfolio Statistics

As of 12/31/2025 (Updated Monthly)

Effective Duration

Fund: 2.25 Years
Benchmark: 2.37 Years

Average Weighted Maturity

Fund: 3.47 Years
Benchmark: —

State / U.S. Territory Allocation

As of 12/31/2025 % of Total (Updated Monthly)

State / U.S. Territory Allocation
Geography	Fund
California	12.24%
Texas	10.44%
Florida	8.40%
Kentucky	6.16%
Ohio	4.75%
Alabama	4.33%
Washington	4.23%
Tennessee	3.93%
New York	3.54%
Louisiana	2.88%
Indiana	2.58%
Georgia	2.53%
Illinois	2.50%
Pennsylvania	2.45%
New Jersey	1.88%
Utah	1.66%
N/A	1.62%
Massachusetts	1.58%
Missouri	1.43%
Virginia	1.34%
District of Columbia	1.25%
Wisconsin	1.09%
North Carolina	1.09%
Montana	1.08%
Minnesota	1.06%
Alaska	1.00%
Colorado	0.99%
Michigan	0.97%
Nevada	0.95%
North Dakota	0.94%
South Dakota	0.93%
Nebraska	0.67%
Puerto Rico	0.65%
New Mexico	0.63%
Connecticut	0.62%
Arizona	0.46%
Hawaii	0.33%
Maine	0.33%
New Hampshire	0.33%
South Carolina	0.25%
Idaho	0.20%
Guam	0.19%
Maryland	0.13%
Cash & Cash Equivalents	3.39%

Holdings
As of 02/06/2026 (Updated Daily)

PUTNAM GOVT MMKT FND-P

POLK CO HSG FIN FRN 12/40

KNOXVILLE CMNTY FRN 12/27

WHITING IN ENVR FRN 12/44

KING HSG BIRCH C 5.5 5/38

BIRMINGHAM WTR 3.75 9/26

CA HSG FIN AGY-A FRN 8/63

OWEN CO-VAR-REF- FRN 6/40

MAIN STREET NATU FRN 7/52

CA ST UNIV-B2 FRN 11/49

Distributions & Tax

Distribution Frequency
Ex-Dividend Fund: This type of fund declares periodic dividends, which are paid to shareholders who own the fund as of a certain date - known as the "record date". After the record date, the fund is said to be trading "ex-dividend"(literally, without the dividend). An investor who buys shares during the interval between the record date and the payment of the dividend does not receive the dividend. A fund that's in the ex-dividend period is marked with an "x" in newspaper listings.

Daily Accrual Fund: This type of fund typically declares income dividends each day that its net asset value is calculated. These dividends remain in the fund until the designated reinvestment or payment date and are distributed to the shareholders, generally once a month, as additional shares or cash, respectively.: MonthlyThis fund is an ex-Dividend fund
Capital Gain Distributions: December

Proposed 2026 distribution dates for ETFs

Rates and Yields Read important information about results and other investment disclosures

Distribution Rate ⁶

As of 02/06/2026 (Updated Daily)

At Net Asset Value (NAV) 3.71%

30-Day SEC Yield ^7,8,9

As of 12/31/2025 (Updated Monthly)

w/ Waiver 3.32%

w/o Waiver 3.31%

Taxable Equivalent Yield ^7,12

As of 12/31/2025 (Updated Monthly)

w/ Waiver 5.61%

w/o Waiver 5.59%

Taxable Equivalent Distribution Rate ¹²

As of 02/02/2026 (Updated Monthly)

6.28%

Distributions are not guaranteed and are subject to change.

Final composition of the current year’s distribution—income, capital gains and/or return of capital—are based on US tax rules and will be determined by February of the following year. For tax characterization of a distribution, such as return of capital and tax-exempt income, click on the “Tax Information” tab above.

Distributions Per Share
Distributions with future dates are estimates and those figures are not final

02/03/2026

Annually, a fund must distribute all realized capital gains net of realized losses, so the fund will not be subject to an entity level income tax. A fund’s capital gain distribution in a particular year may be a result of the disposition of holdings that appreciated in value during prior years. Thus, while the fund may gain or lose value over the course of a year, a capital gain distribution paid by the fund may not be indicative of current performance of the fund.

The distributable amount of net capital gains are paid on a per-share basis to all investors who hold shares of the fund on the record date of the distribution and are recognized by the shareholder for tax purposes as of the ex-date of the distribution, regardless of when the gains or losses arose in the fund. Net gains on holdings held long term by the fund would be distributed to shareholders as a long-term capital gain distribution no matter how long the shareholder has owned shares in the fund.

Refer to the fund’s annual report or statement of additional information for specific information regarding distributions.

Pricing

Pricing History

As of 02/06/2026 (Updated Daily)

Time Period

From

From Date

To Date

Daily Fund Prices

As of 02/06/2026

Share Prices

As of 02/06/2026

NAV ¹(Net Asset Value): $9.98
NAV Change ¹: $0.00
NAV Change (%) ¹: 0.00%
Market Price ¹: $9.99
Market Price Change ¹: $0.00
Market Price Change (%) ¹: 0.00%

52-Week Range

Highest NAV As of 01/30/2026: $9.99
Lowest NAV As of 04/09/2025: $9.75
Highest Market Price As of 01/30/2026: $10.01
Lowest Market Price As of 12/19/2025: $9.90

Premium / Discount

As of 02/06/2026

30-Day Median Bid/Ask Spread: 0.20%
Bid / Ask Spread: $0.01
Avg. of Market Price vs. NAV at Close ¹³: 0.10%

Documents

Fund Literature

Fund Literature
Checkbox	Name	Download	Add to Cart
Checkbox	Factsheet - Franklin Short-Term Municipal Income ETF	Download Document
Checkbox	Product Commentary - Franklin Short-Term Municipal Income ETF	Download Document

Regulatory Documents

Regulatory Documents
Checkbox	Name	Download
Checkbox	Annual Report - Franklin Short-Term Municipal Income ETF - Single Class	Download Document
Checkbox	Annual Financial Statements And Other Information - Franklin Short-Term Municipal Income ETF	Download Document
Checkbox	Prospectus - Franklin Short-Term Municipal Income ETF	Download Document
Checkbox	Summary Prospectus - Franklin Short-Term Municipal Income ETF	Download Document
Checkbox	Statement Of Additional Information - Putnam ETF Trust	Download Document

Risks

All investments involve risks, including possible loss of principal. Fixed income securities involve interest rate, credit, inflation and reinvestment risks, and possible loss of principal. As interest rates rise, the value of fixed income securities falls. Active management does not ensure gains or protect against market declines. An investor may be subject to the federal Alternative Minimum Tax, and state and local taxes may apply. These and other risks are discussed in the fund's prospectus.

Important Information

Effective October 24, 2025, Putnam Short-Term Municipal Income Fund reorganized into this ETF. This fund has an identical investment goal and substantially similar investment strategies as its predecessor fund.

Fund dividends are generally subject to state and local income taxes, if any. For investors subject to the alternative minimum tax, a small portion of fund dividends may be taxable. Distributions of capital gains are generally taxable.

Franklin Distributors, LLC. Member FINRA, SIPC. All entities mentioned are Franklin Templeton affiliated companies. Investment Products: NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE.
Reports and other information about the funds are available on the EDGAR Database on the SEC's Internet site at www.sec.gov.

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Important data provider notices and terms available at www.franklintempletondatasources.com.

Performance data quoted represents past performance, which does not guarantee future results.

CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute.

Indexes are unmanaged and one cannot invest directly in an index. They do not reflect any fees, expenses or sales charges.

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 carefully before you make any investment decision. Investors cannot invest directly in an index, and unmanaged index returns do not reflect any fees, expenses or sales charges.

Carefully consider a fund’s investment objectives, risks, charges and expenses before investing. Please view the prospectus or summary prospectus for this and other information. Read it carefully.

Franklin Templeton, its affiliated companies, and its employees are not in the business of providing tax or legal advice to taxpayers. These materials and any tax-related statements are not intended or written to be used, and cannot be used or relied upon, by any such taxpayer for the purpose of avoiding tax penalties or complying with any applicable tax laws or regulations. Tax-related statements, if any, may have been written in connection with the “promotion or marketing” of the transaction(s) or matter(s) addressed by these materials, to the extent allowed by applicable law. Any such taxpayer should seek advice based on the taxpayer’s particular circumstances from an independent tax advisor.

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. ETF shares may be bought or sold throughout the day at their market price (MP), not their Net Asset Value (NAV), on the exchange on which they are listed. Shares of ETFs are tradable on secondary markets and may trade either at a premium or a discount to their NAV on the secondary market. Prior to trading in the secondary market, shares of the fund are "created" at NAV by market makers, large investors and institutions only in block-size Creation Units. Each "creator" or "Authorized Participant" enters into an authorized participant agreement with Franklin Distributors, LLC. Only an Authorized Participant may create or redeem Creation Units directly with the fund. Retail investors buy and sell shares of ETFs at market price (not NAV) in the secondary market throughout the trading day. These shares are not individually available for purchase or redemption directly from the ETF.

Franklin Distributors, LLC serves as the distributor of Creation Units for the ETFs on an agency basis. Franklin Distributors, LLC does not maintain a secondary market in the funds' shares.

Redemption payments will be effected within the specified number of calendar days following the date on which a request for redemption in proper form is made. For more information, please see the ETF’s statement of additional information (SAI) which can be found on the fund’s webpage.

The Bloomberg 3-Year Municipal Bond Index is a subset of the Bloomberg Municipal Bond Index that measures the performance of investment-grade issues with remaining maturities of two to four years.
Source: Bloomberg Indices.

Footnotes

Net Asset Value (NAV) returns are based on the NAV of the ETF/ETP. The fund’s NAV represents the per-share-value and is determined by dividing the total NAV of the fund by the number of shares outstanding; Market Price returns are based upon the official closing price of the ETF’s/ETP's shares. The fund calculates the NAV per share each business day and normally coincides with the close of trading on the exchange on which they are listed, typically 4 pm ET. The fund does not calculate the NAV on days the exchange is closed for trading. These returns do not represent investors’ returns had they traded shares at other times.
Figures are aggregate total return figures, have not been annualized and represent the change in value of an investment over the period indicated.
The Morningstar Rating™ for funds, or “star rating”, is calculated for managed products with at least a three-year history, and subject to change monthly. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk Adjusted Return measure that accounts for variation in a managed product’s monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total return, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total return. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. Ratings do not take into account the effects of sales charges and loads. Morningstar Rating is for the specified share class(es) only; other classes may have different performance characteristics. ©2025 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.
The Bloomberg 3-Year Municipal Bond Index is a subset of the Bloomberg Municipal Bond Index that measures the performance of investment-grade issues with remaining maturities of two to four years.
Source: Bloomberg Indices.
On 10/27/2025 this product converted from a mutual fund to an exchange traded fund and was listed on the exchange. No premium and discount information is available prior to listing date.
Distribution Rate is calculated by annualizing the most recent distribution amount paid, divided by the closing market price or NAV as of the date indicated. The Distribution Rate calculation includes income and return of capital, and excludes special distributions. The Distribution Rate is not guaranteed, subject to change, and is not a quotation of fund performance.
With Waiver means the performance quote reflects any applicable expense reductions and fee waivers.
During periods of rising inflation, fund yields can vary significantly from month-to-month and may not be repeated.
30-Day SEC Yield is calculated using the net income (interest and dividends) per share earned over a trailing 30-day period (annualized), divided by the fund’s share price at the end of that period. It may not equal the fund’s actual income distribution rate, which reflects the fund’s past dividends paid to shareholders.
Gross Expense Ratio reflects the total annual operating expenses for the share class shown, prior to the deduction of any waiver or reimbursement. Actual expenses may be higher and may impact portfolio returns. Net Expense Ratio reflects total expenses after any fee waivers, implemented expense caps or reimbursements. If a fund has contractual fee waivers, expense caps and/or reimbursements, the expiration date can be found by clicking on the information button next to the net expense ratio. Additional amounts may be voluntarily waived and/or reimbursed and may be modified or discontinued at any time without notice. Expense ratios are as of the most recent prospectus or annual report.
Net Expense Ratio represents the expense ratio applicable to investors.
The Taxable Equivalent Yield assumes the maximum regular federal income tax rate and the Medicare tax. Dividends are general subject to state and local taxes, if any. For investors subject to the alternative minimum tax, a small portion of fund dividends may be taxable. Distributions of capital gains may be taxable.
Premiums or discounts are the differences between the NAV and the Market Price of the Fund on a given day, generally at the time the NAV is calculated. A premium is the amount that the Fund is trading above the reported NAV, expressed as a percentage of the NAV. A discount is the amount that the Fund is trading below the reported NAV, expressed as a percentage of the NAV. The since inception premium/discount average is calculated by averaging the daily premium/discount since the inception of the fund. The daily premium/discount is the difference between the daily market price for shares of the Fund and the Fund's net asset value. The Market Price is determined using the closing price as of 4 pm ET on each trading day (when NAV is normally determined for most funds).
Premium / Discount reflects the difference between the NAV and the Market Price of the fund, and represents the amount that the fund is trading above or below its NAV, expressed as a percentage of the NAV.
Returns are average annualized total returns, except for those periods of less than one year, which are cumulative. Market Price returns are calculated using the closing price as of 4 pm ET on each trading day (when NAV is normally determined for most funds), and do not represent the returns you would receive if you traded shares at other times. Since shares of the fund did not trade in the secondary market until after the fund's inception, for the period from inception to the first day of secondary trading 10/27/25, the NAV of the fund is used as a proxy for the Market Price to calculate market returns. Index returns are adjusted for withholding taxes. Performance for the ETF/ETP and its benchmark index are as of the ETF's/ETP's last trading day before the end of the period.

Sunday	Monday	Tuesday	Wednesday	Thursday	Friday	Saturday

Sunday	Monday	Tuesday	Wednesday	Thursday	Friday	Saturday

Individual Investor

Financial Professional

Institutional Investor

FTMS Franklin Short-Term Municipal Income ETF

Popular Documents

Mutual fund reorganized into this ETF

Overview

Fund description

Expenses & Fees

Identifiers

State / U.S. Territory Focus

Additional Fund Info

Trading Characteristics

Manager and Commentary

Performance

Average Annual Total Returns

Ratings 3

Portfolio

State / U.S. Territory Allocation

Distributions & Tax

Rates and Yields Read important information about results and other investment disclosures

Pricing

Chart

Daily Fund Prices

Documents

Risks

Important Information

Footnotes

Ratings ³