Franklin Dynamic Municipal Bond ETF

Franklin Templeton ETF Trust · 1 share class

Actively managed U.S. bond ETF
One fund, 1 share class:FLMI
$2.30B NAV
1,337 positions · as of 2026-06-30 · filed 2026-08-27

Fund classification

Classified from what the fund holds · as of 2026 Q2

Franklin Dynamic Municipal Bond ETF is an actively managed U.S. bond ETF.

Asset class
Bonds
Region
United States
Management
Actively managed
Fund type
ETF
Credit quality
Investment grade
Rate sensitivity
Intermediate duration

Fund profile

As filed in the prospectus · 2025 Q3

A high level of current income that is exempt from federal income taxes.

Strategy · summarised

The fund invests at least 80% of its net assets in municipal securities whose interest is exempt from federal income taxes, selecting securities across credit qualities and structures to balance risk and return, with an average effective duration target of two to eight years. Up to 20% may be held in securities subject to federal or state income taxes or the alternative minimum tax. Because the fund may invest in below-investment-grade and defaulted municipal securities, credit risk is material to returns.

Expenses
0.30%one share class
Share classExpense ratio
FLMI0.30%

Portfolio turnover 49.83% · as of 2025 Q3

Allocation

Asset groups · long / short shown separately, never netted · 2026 Q2

99.91%
of net assets
Bonds99.91%

Latest quarter

What changed since the fund's previous filing

2026Q2 vs 2026Q1: 156 new28 exited

Largest new: TEXAS MUNICIPAL GAS ACQUISITION AND SUPPLY CORP V (TX), PUBLIC ENERGY AUTHORITY OF KENTUCKY (KY), NEW JERSEY HEALTH CARE FACILITIES FINANCING AUTHORITY (NJ) ×2, HIGHER EDUCATION STUDENT ASSISTANCE AUTHORITY (NJ), FW SKYLINE PUB FAC CORP TEX, NEW YORK (NY), CITY OF, HILLSBOROUGH COUNTY INDUSTRIAL DEVELOPMENT AUTHORITY (FL)

Largest exited: WINCHESTER VA ECONOMIC DEV AUTH, MONTGOMERY CNTY MD, NEW YORK N Y CITY MUN WTR FIN AUTH, METROPOLITAN TRANSN AUTH N Y, GRAND TRAVERSE COUNTY HOSPITAL FINANCE AUTHORITY (MI), COLORADO HEALTH FACS AUTH, ATLANTA (GA), CITY OF, METROPOLITAN NASHVILLE ARPT AUTH TENN

Return profile

Total return as filed — price change plus distributions reinvested · trailing figures to Apr 2026

1-year
+7.51%
3-year
+17.78%
5-year
+11.40%
Volatility
4.21%
Worst 3-yr fall
-4.59%
Cumulative return· Jul 2023 – Apr 2026

May 2026 and Jun 2026 have been filed since the trailing figures were struck, so they are not in the table above or the curve — every figure here shares one cut-off, which is what makes them comparable with other funds.

Debt profile

What this fund holds — value-weighted across its bond and securitized long positions · as of 2026-06-30

Avg coupon
4.75%
Avg maturity
16.45 yr
Coupon type

Share of the fund's debt by how its coupon behaves — the fact that decides whether a rate move reaches this portfolio at all.

17%
floating
Fixed rate82.8%
Floating rate17.1%
Zero-coupon or unclassified0.1%
Maturity ladder

Share of the fund's debt value in each maturity band, shortest first.

<1y10y+
<1y0.3%
1-3y0.9%
3-5y1.4%
5-10y22.8%
10y+74.6%
Flagged holdings
Defaulted: 0.11% · $2.55M · 14 positions
In arrears: 0.01% · $0.23M · 1 positions
Paid in kind: none reported

These three overlap — one holding can be in arrears and paying in kind at once — so they are shown separately and never summed.

Risk profile

Interest-rate and credit-spread sensitivity, both in years · as of 2026Q2

More of this fund’s sensitivity sits in credit spreads than in interest rates — a rate rally that comes with a credit selloff works against it.

Interest-rate duration
6.75 yr
approx. move per 100bp
Credit-spread duration
6.84 yr
approx. move per 100bp
If rates and spreads both rise 100bp

Where the loss would come from. The two shocks are the same size, so this is the balance of the fund's two sensitivities rather than a bet on one moving more.

≈ -13.5%
of value
Credit spreads50%
Interest rates50%

Filers report the impact of a 0.01% move only, so the total is our own scaling of that one number and overstates the loss on most bonds — read it as approximate, never as precise. The two sensitivities overlap rather than add up: they measure the same positions against different shocks, which is why the durations above are shown side by side and never summed.

Credit risk by quality

Share of the fund's spread duration carried by each credit tier.

+6.84
yrs total
Investment grade+6.33 yr
High yield+0.51 yr
Where the risk sits on the curve

Share of duration at each point, shortest first. A positive figure loses value when spreads widen; a negative one offsets — a credit hedge.

Interest rate6.75 yr total
3 mo30 yr
3 mo0.01 yr0%
1 yr0.28 yr4%
5 yr1.78 yr26%
10 yr3.98 yr59%
30 yr0.70 yr10%
Credit spread6.84 yr total
3 mo30 yr
3 mo0.00 yr0%
1 yr0.11 yr2%
5 yr2.60 yr38%
10 yr4.11 yr60%
30 yr0.02 yr0%

The two bands measure the same positions against different shocks and do not add — a Treasury carries rate duration and no spread duration, a floating-rate credit the reverse. Rate tenors are also summed across every currency the fund discloses.

Show the numbers
TenorRate yrsIG yrsHY yrsIG $/bpHY $/bp
3 mo+0.01+0.00+0.00$699$62
1 yr+0.28+0.10+0.02$22.7k$3.7k
5 yr+1.78+2.40+0.19$552.7k$44.7k
10 yr+3.98+3.81+0.30$875.9k$69.3k
30 yr+0.70+0.02+0.00$4.2k$499

Dollar change per 1bp of spread movement, as filed and sign-anchored. A blank cell was not filed; a zero was.

Holdings

By % of NAV · equity positions carry filed share counts · every resolvable issuer links to its company page

Issuer%NAVValue
SOUTHEAST ENERGY AUTHORITY (AL)5.00% · due 2035-11-011.78%$40.92M
PUBLIC ENERGY AUTHORITY OF KENTUCKY (KY)5.00% · due 2036-05-011.74%$40.07M
PUBLIC ENERGY AUTHORITY OF KENTUCKY (KY)5.00% · due 2033-12-011.60%$36.76M
CALIFORNIA COMMUNITY CHOICE FINANCING AUTHORITY (CA)5.00% · due 2036-03-011.47%$33.91M
TENNESSEE ENERGY ACQUISITION CORP (TN)5.00% · due 2035-12-011.42%$32.65M
METROPOLITAN PIER & EXPOSITION AUTHORITY (IL)4.00% · due 2042-12-151.34%$30.86M
SOUTHEAST ENERGY AUTHORITY (AL)5.00% floating · due 2056-01-011.34%$30.79M
BLACK BELT ENERGY GAS DISTRICT (THE) (AL)5.50% floating · due 2056-11-011.32%$30.42M
BLACK BELT ENERGY GAS DISTRICT (THE) (AL)5.00% · due 2035-10-011.27%$29.27M
TEXAS MUNICIPAL GAS ACQUISITION AND SUPPLY CORP V (TX)5.00% · due 2036-04-011.03%$23.59M
Showing 10 of 1,337Sign in to see more

Top 10 positions are 14.32% of net assets, top 25 25.36%, across 651 issuers.

See more of this fund's book

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