ETF Evaluator:
Franklin Dynamic Municipal Bond ETF ()
Follow This ETF
(as of Aug 26)
Best Performing in High Yield Muni Over the Last Year
| 10.8% | VanEck CEF Municipal Income ETF (XMPT) |
| 9.9% | Eaton Vance High Income Municipal ETF (EVYM) |
| 9.5% | Rockefeller Opportunistic Muncpl Bd ETF (RMOP) |
| 9.0% | Nomura National Hi-Yld Muncpl Bd ETF (HTAX) |
| 8.8% | Franklin Municipal High Yield ETF (FTMH) |
Risk
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Risk
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ETF Details
Franklin Dynamic Municipal Bond ETF Overview
Franklin Dynamic Municipal Bond ETF (FLMI) is an actively managed Municipal Bond High Yield Muni exchange-traded fund (ETF). Franklin Templeton Investments launched the ETF in 2017.
The investment seeks a high level of current income that is exempt from federal income taxes.
Under normal market conditions, 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 fund 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 in securities that pay interest that may be subject to the federal alternative minimum tax and, although not anticipated, in securities that pay interest subject to other federal or state income taxes.
About Franklin Dynamic Municipal Bond ETF (FLMI)
There are 5 members of the management team with an average tenure of 6.08 years: Daniel Workman (2017), Garrett Hamilton (2025), 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 2 primary benchmarks: Bloomberg Municipal TR USD index with a weighting of 100% and Bloomberg Municipal 1-15 Yr TR USD index with a weighting of 100%. Franklin Dynamic Municipal Bond ETF has 1382 securities in its portfolio. The top 10 holdings constitute 15.6% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a diversified fund. The ETF is not considered to have an ESG focus with its investment selection and management.
Franklin Dynamic Municipal Bond ETF is part of the Fixed Income global asset class and is within the Municipal Bond ETF group. Franklin Dynamic Municipal Bond ETF has 0.6% 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% (99.4% domestic bond, 0.6% foreign bond and 0.0% convertible bond). Franklin Dynamic Municipal Bond ETF has 0.0% of the portfolio in cash.
Assets Under Management
The fund has $2 billion in total assets, which is above the $990 million average for the High Yield Muni 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.
FLMI 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 Dynamic Municipal Bond ETF expense ratio is below average compared to funds in the High Yield Muni category. Franklin Dynamic Municipal Bond ETF has an expense ratio of 0.30%, which is 50% lower than its category average, making the fund expense ratio grade a A. 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 Dynamic Municipal Bond ETF has a portfolio turnover rate of 34%, which indicates that it holds its assets around / 0.0 years. By way of comparison, the average portfolio turnover is 38% for the High Yield Muni category.
Recently, in the month of July 2026, Franklin Dynamic Municipal Bond ETF returned -1.8%, which earned it a grade of C, as the High Yield Muni category had an average return of -1.8%. 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 Dynamic Municipal Bond ETF has a trailing yield of 3.96%, which is below the 4.58% 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 Dynamic Municipal Bond ETF Grades
Year to date, the ETF has returned 1.0%, 0.9 percentage points worse than the category, which translates into a grade of F. The fund has returned 6.4% over the past year (grade of D), 5.2% over the past three years (grade of B) and 1.6% per year over the past five years (grade of A).
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FLMI Trailing NAV Total Returns Data as of 7/31/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| FLMI Return (NAV) | -1.8% | -0.4% | 6.4% | 5.2% | 1.6% | na |
| FLMI Return (Price) | -1.7% | -0.3% | 6.8% | 5.1% | 1.7% | na |
| NAV +/- Price Return | -0.129% | -0.116% | -0.420% | 0.040% | -0.019% | na |
| High Yield Muni Avg | -1.8% | 0.3% | 7.4% | 4.8% | 0.2% | 2.2% |
| FLMI Grade (NAV) | C | F | D | B | A | na |
| +/- Category (NAV) | 0.0% | -0.7% | -1.0% | 0.4% | 1.5% | na |
| FLMI Tax-Cost Ratio | na | na | 0.0% | 0.0% | 0.0% | na |
FLMI Annual NAV Total ReturnsData as of 7/31/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| FLMI Return (NAV) | 1.0% | 5.9% | 5.1% | 7.7% | -10.2% | 4.0% | 6.3% | 6.8% | 0.4% | na | na |
| FLMI Return (Price) | 1.1% | 5.9% | 4.9% | 7.9% | -10.2% | 4.1% | 6.1% | 6.7% | 0.3% | na | na |
| NAV +/- Price Ret | 0.146% | 0.003% | -0.047% | 0.028% | 0.002% | 0.015% | -0.023% | -1.4% | -26.5% | na | na |
| High Yield Muni Avg | 1.9% | 4.1% | 5.5% | 6.4% | -14.8% | 6.0% | 3.9% | 10.4% | 1.1% | 7.1% | 0.7% |
| FLMI Grade (NAV) | F | A | D | B | A | F | A | F | F | na | na |
| +/- Category | -0.9% | 1.8% | -0.4% | 1.3% | 4.5% | -2.0% | 2.4% | -3.6% | -0.7% | na | na |
| Risk Measures | |
| Beta: | 0.90 |
| R-Squared: | 96% |
| Standard Deviation: | 5.2% |
| Category Risk Index: | 0.81 |
| Category Risk Rating: | Below Average |
| Total Risk Index: | 0.43 |
| Total Risk Rating: | Low |
| Portfolio Characteristics | |
| Yield: | 4.0% |
| Total Assets: | $ 2,323 Mil |
| Share Class Assets: | $ 2,323 Mil |
| Turnover: | 34.0% |
| Expense Ratio: | 0.30% |
| Index Fund: | No |
| Index Tracked: | Bloomberg Municipal TR USD |
| Index Weighting: | 100% |
| Leveraged: | No |
| Socially Responsible Fund: | No |
| Capital Gains Distribution Frequency: | Annually |
| Income Distribution Frequency: | Monthly |
Management Team
| Number of Managers: 5 | |||
| Longest Tenure: 8.9 years | |||
| Average Tenure: 6.1 years | |||
| Managers (Year): Workman Daniel (2017), Conn James (2017), Barber Ben (2020), Rivera Francisco (2020), Hamilton Garrett (2025) | |||
Portfolio Composition (as of 7/31/26)
| # of Holdings: | 1382 |
| % in Top 10 Holdings: | 15.6% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | 0.6% |
Portfolio Allocation |
|
| Domestic Stock: | 0.0% |
| Foreign Stock: | 0.0% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 99.4% |
| Foreign Bond: | 0.6% |
| Convertible Bond: | 0.0% |
| Other: | 0.0% |
| Cash: | 0.0% |
Purchase Information
| Legal Structure: | Open Ended Investment Company |
| Fund Family: | Franklin Templeton Investments |
| Phone Number: | 800-342-5236 |
| Website: | etf.franklintempleton.com |
| Inception Date: | August 31, 2017 |
Expenses and Fees
| Expense Ratio (%): | 0.30% (Rating: Below Avg) |
| Category Average Expense Ratio (%): | 0.60% |
