ETF Education Report: Franklin Municipal Income ETF (FTMU)

What this ETF is trying to do

The Franklin Municipal Income ETF (FTMU) is an exchange-traded fund. While the specific investment strategy is not detailed in the provided data, the name suggests it focuses on municipal income.

What the numbers show

As of October 5, 2026, the current price of FTMU is $7.33.

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 -6.21%. This number only measures how much the share price has changed.

• Year-to-Date (YTD) Total Return: This is approximately -3.21%. This number includes both the change in share price and the impact of distributions.

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

Income and distribution explanation

Some investors look at ETFs specifically to receive regular cash payments, known as distributions.

• Distribution Yield: The yield for this ETF is approximately 4.14%. This describes the cash distributions relative to the current share price.

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

• Trailing Distributions: The amount paid out over the trailing period was approximately $0.30 per share.

It is important to remember that a high distribution yield does not guarantee an investor will earn that same percentage as a total return.

NAV erosion explanation

"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the assets held by the fund). A falling market price is a "share-price decline," which is not the same thing as NAV erosion. For this ETF, there is no severe erosion-risk flag present. The erosion score is currently withheld due to insufficient verified price history.

Pros

• The fund provides regular distributions, which usually occur 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 YTD price return is negative, meaning the share price has declined so far this year.

• The YTD total return is also negative.

Beginner takeaway

When looking at an ETF like FTMU, it is helpful to distinguish between the share price and the total return. The share price tells you what the ETF costs, while the total return shows how much value was gained or lost including the cash distributions paid out to investors. High yields can provide income, but they do not prevent the share price from falling.