ETF Evaluator: Franklin Municipal Green Bond ETF () Follow This ETF

Franklin Municipal Green Bond ETF Overview

Franklin Municipal Green Bond ETF (FLMB) is an actively managed Municipal Bond Muni National Long exchange-traded fund (ETF). Franklin Templeton Investments launched the ETF in 2017.

The investment seeks to maximize income exempt from federal income taxes to the extent consistent with prudent investing and the preservation of shareholders’ capital. The fund invests at least 80% of its net assets in municipal securities whose interest is free from federal income taxes, including the federal alternative minimum tax. Although the adviser tries to invest all of its assets in tax-free securities, it is possible that up to 20% of the fund's net assets may be invested in securities that pay interest that may be subject to the federal alternative minimum tax and in securities that pay interest subject to other federal or state income taxes.

About Franklin Municipal Green Bond ETF (FLMB)

There are 4 members of the management team with an average tenure of 6.61 years: Daniel Workman (2020), Ben Barber (2020), Francisco Rivera (2020) and James Conn (2017). Management tenure is more important for actively managed ETFs than passive index ETFs.

The ETF has 1 primary benchmark: Bloomberg Municipal TR USD index with a weighting of 100%. Franklin Municipal Green Bond ETF has 79 securities in its portfolio. The top 10 holdings constitute 38.5% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a diversified fund. The ETF is considered to have an ESG focus with its investment selection and management.

Franklin Municipal Green Bond ETF is part of the Fixed Income global asset class and is within the Municipal Bond ETF group. Franklin Municipal Green Bond ETF has 0.7% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 0.0% There is 0.0% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 100.0% (99.3% domestic bond, 0.7% foreign bond and 0.0% convertible bond). Franklin Municipal Green Bond ETF has 0.1% of the portfolio in cash.

Assets Under Management

The fund has $74 million in total assets, which is below the $744 million average for the Muni National Long category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

FLMB Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Franklin Municipal Green Bond ETF expense ratio is below average compared to funds in the Muni National Long category. Franklin Municipal Green Bond ETF has an expense ratio of 0.30%, which is 42% lower than its category average, making the fund expense ratio grade a D. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. Franklin Municipal Green Bond ETF has a portfolio turnover rate of 24%, which indicates that it holds its assets around / 0.0 years. By way of comparison, the average portfolio turnover is 22% for the Muni National Long category.

Recently, in the month of July 2026, Franklin Municipal Green Bond ETF returned -2.1%, which earned it a grade of D, as the Muni National Long category had an average return of -2.0%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all ETFs in that category.

Franklin Municipal Green Bond ETF has a trailing yield of 4.09%, which is below the 4.12% category average. The fund normally distributes its income monthly and its capital gains annually.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

Franklin Municipal Green Bond ETF Grades

Year to date, the ETF has returned 0.6%, 0.4 percentage points worse than the category, which translates into a grade of D. The fund has returned 7.0% over the past year (grade of D), 3.4% over the past three years (grade of C) and 0.1% per year over the past five years (grade of B).

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