ETF Education Report: Putnam ETF Trust Franklin New York Municipal Income (FTNY)

What this ETF is trying to do

The FTNY ETF is an investment fund that focuses on New York municipal income. While the specific holdings are not listed in this report, these types of funds generally aim to provide income to investors through municipal bonds.

What the numbers show

As of October 5, 2026, the current price of one share is $7.32.

When looking at how the fund has performed so far this year (Year-to-Date), it is important to look at two different numbers:

• YTD Price Return: This shows the change in the share price alone. The price return for this year is approximately -6.69%.

• YTD Total Return: This shows the overall return, which includes both the price change and the distributions (cash payments) made to investors. The total return for this year is approximately -3.92%.

Because the total return (-3.92%) is higher than the price return (-6.69%), it shows that the cash distributions helped offset some of the share-price decline.

Income and distribution explanation

This ETF provides cash payments to investors, known as distributions.

• Distribution Yield: The yield is approximately 3.88%. This number describes the cash distributions relative to the current ETF 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 last year was approximately $0.28 per share.

It is important to remember that a distribution yield is not the same as a total return. A high yield provides cash, but it does not guarantee that the share price will stay the same or go up.

NAV erosion explanation

"NAV erosion" is a term used to describe when the value of the underlying assets in a fund decreases over time. While investors often watch for this, there is no "severe erosion-risk flag" for this ETF. The report notes that the erosion score is withheld due to insufficient verified price history.

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 helping to cushion the impact of the falling share price.

Cons

• The fund has experienced a share-price decline so far this year.

• The YTD total return is currently negative.

Beginner takeaway

When looking at an ETF like FTNY, 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 provided to investors have helped make the total return slightly better than the price return alone. Always remember that receiving cash distributions does not prevent the share price from falling.