ETF Education Report: Franklin Minnesota Municipal Income ETF (FTMN)

What this ETF is trying to do

The Franklin Minnesota Municipal Income ETF (FTMN) is an exchange-traded fund. While the specific investment strategy is not detailed in the provided data, municipal income ETFs generally focus on providing income through bonds issued by local governments.

What the numbers show

As of October 6, 2026, the current price of FTMN is $8.20.

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 shows the change in the share price alone. The YTD price return is approximately -7.24%.

• Year-to-Date (YTD) Total Return: This shows the overall return, which includes both the share price change and the distributions paid out. The YTD total return is approximately -4.93%.

Because the total return (-4.93%) is higher than the price return (-7.24%), it shows that the distributions helped offset some of the share-price decline.

Income and distribution explanation

This ETF provides cash payments called distributions. The distribution yield is approximately 3.16%. This number describes the cash paid out relative to the current ETF price.

The fund has made 11 distributions over the last 12 months, and they usually happen on a monthly basis. Most of these payments have been made on Mondays. It is important to remember that a distribution yield tells you how much cash was paid out, but it does not guarantee that the investor earned that amount as a total return.

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. A falling market price (the share-price decline) does not always mean that NAV erosion is happening.

For this ETF, the "severe erosion-risk flag" is not active. However, the data for the erosion score was withheld because there is not enough verified price history available to provide a score.

Pros

• The fund provides regular cash distributions, which usually occur monthly.

• The total return is higher than the price return, meaning distributions are helping to cushion the impact of the falling share price.

Cons

• The fund has experienced a negative YTD price return of approximately -7.24%.

• The total return for the year is also negative at approximately -4.93%.

Beginner takeaway

When looking at an ETF like FTMN, it is helpful to distinguish between the share price and the total return. The share price has gone down this year, but the cash distributions have helped make the total loss a bit smaller. Always remember that high yields provide cash, but they do not prevent the share price from falling.