Franklin High Yield Tax-Free Income Fund
Franklin Tax Free Trust · 5 share classes
Fund classification
Classified from what the fund holds · as of 2026 Q2
Franklin High Yield Tax-Free Income Fund is an actively managed U.S. bond fund.
- Asset class
- Bonds
- Region
- United States
- Management
- Actively managed
- Fund type
- Open-end fund
- Credit quality
- High yield
- Rate sensitivity
- Long duration
Fund profile
As filed in the prospectus · 2026 Q2
To provide investors with a high current yield exempt from federal income taxes. Its secondary goal is capital appreciation to the extent possible and consistent with the Fund's principal investment goal.
The fund invests at least 80% of its net assets in municipal securities whose interest is exempt from federal income taxes, selecting securities based on credit quality, yield, structure, and pricing to balance risk and return. Up to 20% may be held in securities subject to federal or state income taxes or the alternative minimum tax. The fund may hold securities across any rating category, including unrated and defaulted securities, and concentrates no more than 25% of assets in any single state, though it may allocate up to 35% to U.S. territories.
| Share class | Expense ratio |
|---|---|
| FHYVX | 0.56% |
| FRHIX | 0.66% |
| FHYIX | 1.20% |
| FHYRX | 0.51% |
| FHYQX | 0.81% |
Portfolio turnover 12.16% · as of 2026 Q2
Allocation
Asset groups · long / short shown separately, never netted · 2026 Q2
| Bonds | 94.76% |
| Other | 3.67% |
| Cash & short-term | 0.79% |
Latest quarter
What changed since the fund's previous filing
Largest new: Arizona Health Facilities Authority, Southeast Energy Authority A Cooperative District ×2, Jefferson Center Metropolitan District No. 2, Metropica Community Development District, Black Belt Energy Gas District, Woodlands Section 9 Community Development District, New Jersey Health Care Facilities Financing Authority
Largest exited: City of New York NY, Oregon State Facilities Authority, Metropolitan Transportation Authority, County of Burleigh ND, Colorado Health Facilities Authority, Military Installation Development Authority ×2, Tobacco Settlement Financing Corp.
Return profile
Total return as filed — price change plus distributions reinvested · trailing figures to Apr 2026
| Share class | 1-year | 3-year | 5-year | Vol | Worst fall |
|---|---|---|---|---|---|
| +7.53% | +17.16% | +6.36% | 4.78% | -6.62% | |
| +7.46% | +16.89% | +5.97% | 4.80% | -6.68% | |
| +6.83% | +14.62% | +2.65% | 4.77% | -6.78% | |
| +7.70% | +17.44% | +6.70% | 4.68% | -6.72% | |
| +7.41% | +16.36% | +5.18% | 4.58% | -6.70% |
These classes hold the same portfolio, so the 4.05pp spread over 5 years is the cost difference between them — roughly 0.81pp a year — not a difference in what they own.
May 2026 has been filed since the trailing figures were struck, so it is 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 2026-05-31
Share of the fund's debt by how its coupon behaves — the fact that decides whether a rate move reaches this portfolio at all.
| Fixed rate | 81.6% |
| Zero-coupon or unclassified | 17.3% |
| Floating rate | 1.1% |
Share of the fund's debt value in each maturity band, shortest first.
| <1y | 3.6% |
| 1-3y | 2.7% |
| 3-5y | 3.2% |
| 5-10y | 7.0% |
| 10y+ | 83.5% |
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
Most of this fund’s sensitivity is to interest rates, with credit spreads carrying nearly as much.
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.
| Interest rates | 51% |
| Credit spreads | 49% |
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.
Share of the fund's spread duration carried by each credit tier.
| High yield | +5.50 yr |
| Investment grade | +1.68 yr |
Share of duration at each point, shortest first. A positive figure loses value when spreads widen; a negative one offsets — a credit hedge.
| 3 mo | 0.01 yr | 0% |
| 1 yr | 0.06 yr | 1% |
| 5 yr | 0.17 yr | 2% |
| 10 yr | 2.72 yr | 37% |
| 30 yr | 4.38 yr | 60% |
| 3 mo | 0.01 yr | 0% |
| 1 yr | 0.05 yr | 1% |
| 5 yr | 0.17 yr | 2% |
| 10 yr | 2.66 yr | 37% |
| 30 yr | 4.28 yr | 60% |
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
| Tenor | Rate yrs | IG yrs | HY yrs | IG $/bp | HY $/bp |
|---|---|---|---|---|---|
| 3 mo | +0.01 | +0.01 | +0.00 | $3.2k | $130 |
| 1 yr | +0.06 | +0.04 | +0.02 | $16.9k | $8.4k |
| 5 yr | +0.17 | +0.07 | +0.10 | $33.8k | $46.1k |
| 10 yr | +2.72 | +0.86 | +1.81 | $404.6k | $854.0k |
| 30 yr | +4.38 | +0.71 | +3.57 | $333.3k | $1.69m |
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
| Ticker | Issuer | %NAV | Value | Shares |
|---|---|---|---|---|
| — | Vanguard Tax-Exempt Bond Index ETF | 2.93% | $138.49M | — |
| — | San Joaquin Hills Transportation Corridor Agency0.00% · due 2027-01-01 | 2.13% | $100.65M | — |
| — | Public Authority for Colorado Energy6.50% · due 2038-11-15 | 1.53% | $72.23M | — |
| — | Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue0.00% · due 2051-07-01 | 1.18% | $55.55M | — |
| — | San Joaquin Hills Transportation Corridor Agency6.00% · due 2045-01-15 | 0.96% | $45.51M | — |
| — | San Joaquin Hills Transportation Corridor Agency6.00% · due 2046-01-15 | 0.96% | $45.51M | — |
| — | San Mateo Foster City School District0.00% · due 2042-08-01 | 0.96% | $45.45M | — |
| — | Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue5.00% · due 2058-07-01 | 0.94% | $44.53M | — |
| — | Upper Illinois River Valley Development Authority0.00% · due 2044-12-01 | 0.88% | $41.47M | — |
| — | District of Columbia0.00% · due 2046-06-15 | 0.85% | $40.03M | — |
Top 10 positions are 13.32% of net assets, top 25 22.71%, across 629 issuers.
See more of this fund's book
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