Franklin Short-Term Municipal Income ETF (FTMS)

The Franklin Short-Term Municipal Income ETF (FTMS) is an actively managed exchange-traded fund sponsored by Franklin Templeton. It aims to provide income exempt from federal income tax while limiting sensitivity to interest-rate changes.

The fund invests mainly in short-maturity municipal bonds from issuers across the United States, keeping portfolio duration relatively low. Holdings focus on investment-grade securities, and Franklin's municipal bond team selects issues through credit research and active management of maturities.

Municipal bond interest may be subject to the federal alternative minimum tax for some investors, and the fund's distributions of capital gains are generally taxable. Shares trade on NYSE Arca throughout the day like a stock, while the portfolio is managed in the style of a traditional municipal bond fund.