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.

Benchmark: Bloomberg 3-year Municipal Bond Index
Fund Inception Date⁴: 03/18/2013
Listing Exchange: NYSE Arca
Dividend Frequency, if any: Monthly
Distribution Rate at NAV⁵As of 03/31/2026 (Updated Daily): 3.18%
30-Day SEC Yield—With Waiver^6,7,8As of 02/28/2026 (Updated Monthly): 3.07%
30-Day SEC Yield—Without Waiver^7,8As of 02/28/2026 (Updated Monthly): 3.05%
Taxable Equivalent Yield—With WaiverAs of 02/28/2026 (Updated Monthly): 5.19%
Taxable Equivalent Yield—Without WaiverAs of 02/28/2026 (Updated Monthly): 5.15%

Expenses & Fees

As of 10/08/2025

Gross Expense Ratio⁹: 0.20%
Net Expense Ratio^9,10: 0.20%

Identifiers

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

Average Annual Total Returns As of 02/28/2026

View performance section for additional info As of 02/28/2026

Market Price Return

NAV Return

4.60%1 Year
4.31%3 Years
2.34%5 Years
2.00%10 Years
1.74%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 02/28/2026 % of Total (Updated Monthly)

State / U.S. Territory Focus
California12.68%
Industrial Dev. Revenue and Pollution Control20.77%
Housing14.80%
Texas8.56%
Kentucky6.14%
Education10.65%
Local10.45%
Florida5.12%
Health Care9.20%
Ohio4.65%
Utilities8.03%
Transportation7.80%
Special Tax5.98%
Lease4.58%
Other Revenue Bonds2.46%

Additional Fund Info

Fiscal Year End: November 30
Listing Date⁴: 10/27/2025
ETF Type: Active
Morningstar Category: Muni National Short

Trading Characteristics

(Updated Daily)

Shares Outstanding: 17,739,161
Daily Volume: N/A
20-Day Average Volume: N/A

Manager and Commentary

Commentary Highlights

December 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

¹²

As of 02/28/2026

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 02/28/2026

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

Month End

As of 02/28/2026

Bloomberg 3-year Municipal Bond Index (%)

Month End

As of 02/28/2026

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: 5 out of 5 stars
As of 02/28/2026

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

5 Years: 5 Years: 5 out of 5 stars
195 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 of03/31/2026 (Updated Daily)

Total Net Assets: $175.86 Million

Positions

As of 02/28/2026 (Updated Monthly)

Number of Holdings

Fund: 217

Portfolio Statistics

As of 02/28/2026 (Updated Monthly)

Effective Duration

Fund: 2.28 Years
Benchmark: 2.33 Years

Average Weighted Maturity

Fund: 3.49 Years
Benchmark: —

Sector Allocation

As of 02/28/2026 % of Total (Updated Monthly)

Sector Allocation
Sector	% of Total
Industrial Dev. Revenue and Pollution Control	20.77%
Housing	14.80%
Education	10.65%
Local	10.45%
Health Care	9.20%
Utilities	8.03%
Transportation	7.80%
Special Tax	5.98%
Lease	4.58%
Other Revenue Bonds	2.46%
State General Obligation	2.11%
Refunded	1.16%
Not Available	1.12%
Cash & Cash Equivalents	0.90%

Holdings
As of 03/31/2026 (Updated Daily)

PUTNAM GOVT MMKT FND-P

KNOXVILLE CMNTY FRN 12/27

CA HSG FIN AGY-A FRN 8/63

WHITING IN ENVR FRN 12/44

BIRMINGHAM WTR 3.75 9/26

KING HSG BIRCH C 5.5 5/38

OWEN CO-VAR-REF- FRN 6/40

MAIN STREET NATU FRN 7/52

CA ST UNIV-B2 FRN 11/49

ORO GRANDE ESD-COP 4 9/28

Distributions & Tax

Federal ID Number

For information on tax years prior to 2008, please contact us

These amounts represent distributions paid by the fund, foreign taxes passed through (if any), and other distribution characteristics for the calendar year selected. These amounts are reported to shareholders on Form 1099-DIV.

Distributions per Share ($)

Year

Tax Information
Record Date	Ordinary Dividends Dividends paid by a fund that are derived from interest, dividends, net short-term capital gains and other types of ordinary income earned by the fund. For a fund that elects to pass through its foreign taxes paid (a non-cash item), a shareholder's allotted share of foreign taxes has been added to the “Ordinary Dividends” cash distributions received by the shareholder. If the fund passed through foreign taxes paid and later is refunded any portion of those taxes by a foreign tax authority, any interest paid to the fund on that refund is also required to be included in “Ordinary Dividends”.	Qualified Dividends The portion of a fund’s “Ordinary Dividends” that may be eligible for a reduced capital gain tax rate. To be eligible for the lower tax rates, certain holding periods apply and shareholders should consult their tax advisor to determine the amount eligible for the reduced rate. This amount represents both cash distributions and non-cash amounts, such as foreign taxes paid, that have been allocated to shareholders.	Capital Gain Distributions	Unrecaptured Section 1250 Gain	Non-Taxable Return Of Capital	Section 199a Dividends The portion of a fund’s “Ordinary Dividends” generated by a real estate investment trust or earned by a fund from its investments in real estate investment trusts, subject to limitations. Individual (non-corporate) shareholders may be entitled to a special deduction from gross income for “Section 199A Dividends” received from a fund. To qualify for this deduction certain holding periods apply and shareholders should consult their tax advisor.	Foreign Tax Paid	Exempt Interest Dividends	Interest on Tax Reclaim Refunds
Dec 01	0.000084	—	—	—	—	—	—	0.027916	—
Dec 19	0.000086	—	—	—	—	—	—	0.028594	—
	0.00017	—	—	—	—	—	—	0.05651	—

Dec 01

Dec 19

Supplemental Tax Information

Foreign Source Income: —
Foreign Source Qualified Dividends: —
Direct U.S. Government Obligations The portion of “Ordinary Dividends” attributable to earnings from US Treasury and certain other government securities may be categorized as a fund containing US government obligations. This income may be exempt from state personal income taxes. The percentage for direct US government obligation interests available for tax-exempt treatment may be limited in states that require the fund to meet certain minimum thresholds. Shareholders should consult their tax advisor to determine the availability of exemptions in their state.: 0.43%
Specified Private Activity Bond Interest: 15.39%
Dividends Received Deduction: —
Section 163(j): 100.00%
Indiana Resident Taxable Income: 94.83%
Utah Resident Taxable Income The portion of “Exempt-Interest Dividends” subject to Utah income tax. Subject to certain exceptions, the state of Utah provides that income earned from non-federal government entities outside of Utah (non-Utah municipal bonds) is taxable to Utah resident shareholders. Income earned from states that do not tax Utah obligations are also exempt. Shareholders should consult their tax advisor about applicability.: 62.90%

Tax-Exempt Income By Jurisdiction

Alabama: 4.52%

Alaska: 1.21%

Arizona: 2.87%

California: 10.08%

Colorado: 1.01%

Connecticut: 0.47%

Dist. of Columbia: 1.45%

Florida: 8.98%

Georgia: 2.69%

Guam: 0.06%

Hawaii: 0.35%

Idaho: 0.25%

Illinois: 0.97%

Indiana: 1.66%

Kentucky: 5.75%

Louisiana: 3.34%

Maine: 0.08%

Maryland: 0.07%

Massachusetts: 1.14%

Michigan: 1.11%

Minnesota: 1.44%

Missouri: 2.35%

Montana: 0.90%

Nebraska: 1.54%

Nevada: 0.96%

New Hampshire: 0.08%

New Jersey: 2.34%

New Mexico: 2.19%

New York: 3.31%

North Carolina: 2.70%

North Dakota: 0.99%

Ohio: 4.38%

Pennsylvania: 3.03%

Puerto Rico: 1.24%

South Carolina: 0.42%

South Dakota: 0.14%

Tennessee: 4.18%

Texas: 10.09%

US Virgin Islands: 0.76%

Utah: 1.37%

Virginia: 1.86%

Washington: 5.59%

Wisconsin: 0.51%

Franklin Templeton and its specialized investment managers 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. Each investor’s tax situation is different, and is based on an individual’s tax bracket, type of account used for investment and other factors. Any such taxpayer should seek advice based on the taxpayer's particular circumstances from an independent tax advisor.

Pricing

Pricing History

As of 03/31/2026 (Updated Daily)

Time Period

From

From Date

To Date

Daily Fund Prices

As of 03/31/2026

Share Prices

As of 03/31/2026

NAV ¹(Net Asset Value): $9.91
NAV Change ¹: $0.01
NAV Change (%) ¹: 0.10%
Market Price ¹: $9.90
Market Price Change ¹: $0.00
Market Price Change (%) ¹: 0.00%

52-Week Range

Highest NAV As of 02/27/2026: $10.02
Lowest NAV As of 04/09/2025: $9.75
Highest Market Price As of 02/25/2026: $10.04
Lowest Market Price As of 03/25/2026: $9.89

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

Total Returns include change in share price, assume reinvestment of all distributions, and reflect the deduction of fund expenses and applicable fees. Total returns, distribution rate, and yields reflect any applicable expense reductions and fee waivers; without these reductions, the results would have been lower.

Certain share classes are only offered to eligible investors as stated in the prospectus. Different minimums may apply to clients of certain service agents. All classes of shares are not available through all distribution channels. See the Fund's prospectus for additional information.

Most funds offer multiple share classes. Share classes are subject to different fees and expenses, which will affect their performance.

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.

Investors should carefully consider a fund's investment goals, risks, sales charges and expenses before investing. The prospectus contains this and other information. Please read the prospectus carefully before investing or sending money.

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.
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 excludes special distributions. The Distribution Rate is subject to change and is not guaranteed nor 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.
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.

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Sunday	Monday	Tuesday	Wednesday	Thursday	Friday	Saturday

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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

Sector Allocation

Distributions & Tax

Federal ID Number

Pricing

Chart

Daily Fund Prices

Documents

Risks

Important Information

Footnotes

Ratings ³