ETF Education Report: Franklin Municipal High Yield ETF (FTMH)

What this ETF is trying to do

The Franklin Municipal High Yield ETF (FTMH) is an exchange-traded fund listed on the NYSE. While the specific investment strategy is not detailed in the provided data, the name suggests it focuses on high-yield municipal bonds.

What the numbers show

As of October 5, 2026, the current price of FTMH is $10.84.

When looking at how the fund has performed this year, it is important to look at two different numbers:

• Year-to-Date (YTD) Price Return: This is approximately -6.31%. This number only measures how much the share price has changed.

• Year-to-Date (YTD) Total Return: This is approximately -2.97%. The total return is different because it includes the impact of distributions (cash payments) received by the fund.

Because the total return is a higher number than the price return, it shows that the cash distributions helped offset some of the share-price decline.

Income and distribution explanation

Some investors look for ETFs that pay out regular cash. This is called a "distribution yield."

• Distribution Yield: The current yield is approximately 4.65%.

• Payout Frequency: This fund usually pays out monthly. In the last 12 months, there were 11 payouts.

• Trailing Distributions: The amount paid out over the last year was approximately $0.50 per share.

It is important to remember that a high distribution yield does not guarantee you will make money. A fund can pay out cash even if its share price is falling.

NAV erosion explanation

"NAV erosion" refers to a decline in the Net Asset Value, which is the actual value of the assets held by the fund. While a falling share price can sometimes be related to NAV erosion, they are not the same thing.

For this ETF, there is no "severe erosion-risk flag" active. However, the data notes that the erosion score is withheld because there is not enough verified price history available to provide a score.

Pros

• The fund provides regular cash distributions, which usually happen on a monthly basis.

• The total return is higher than the price return, meaning distributions are providing some value back to the fund.

Cons

• The year-to-date price return is negative, meaning the share price has declined.

• There is no data provided regarding the fund's top holdings or specific portfolio exposure.

Beginner takeaway

When looking at an ETF like FTMH, it is helpful to distinguish between the share price and the total return. The share price tells you how much the cost of one share has changed, while the total return shows how much you would have earned if you also included the cash distributions. Always remember that a high yield is not a guarantee of profit.