ETF Evaluator: Franklin New York Municipal Income ETF () Follow This ETF

Franklin New York Municipal Income ETF Overview

Franklin New York Municipal Income ETF (FTNY) is an actively managed Municipal Bond Muni New York Long exchange-traded fund (ETF). Franklin Templeton Investments launched the ETF in 2018.

The investment seeks high a level of current income exempt from federal income tax and New York State and City personal income taxes as the investment manager believes is consistent with preservation of capital. Under normal circumstances, the fund invests so that at least 90% of the fund's income distributions are exempt from federal income tax and New York State and City personal income taxes, except during times of adverse market conditions, when more than 10% of the fund's income distributions could be subject to these taxes.

About Franklin New York Municipal Income ETF (FTNY)

There are 4 members of the management team with an average tenure of 3.77 years: Michael Conn (2024), John Bonelli (2024), Garrett Hamilton (2016) and Christopher Sperry (2024). 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 New York Municipal Income ETF has 257 securities in its portfolio. The top 10 holdings constitute 19.4% 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 New York Municipal Income ETF is part of the Fixed Income global asset class and is within the Municipal Bond ETF group. Franklin New York Municipal Income ETF has 1.4% 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 97.6% (96.3% domestic bond, 1.4% foreign bond and 0.0% convertible bond). Franklin New York Municipal Income ETF has 2.4% of the portfolio in cash.

Assets Under Management

The fund has $594 million in total assets, which is above the $437 million average for the Muni New York 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.

FTNY 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 New York Municipal Income ETF expense ratio is below average compared to funds in the Muni New York Long category. Franklin New York Municipal Income ETF has an expense ratio of 0.36%, which is 2% higher than its category average, making the fund expense ratio grade a C. 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 New York Municipal Income ETF has a portfolio turnover rate of 15%, which indicates that it holds its assets around / 0.1 years. By way of comparison, the average portfolio turnover is 19% for the Muni New York Long category.

Recently, in the month of July 2026, Franklin New York Municipal Income ETF returned -2.2%, which earned it a grade of D, as the Muni New York 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 New York Municipal Income ETF has a trailing yield of 3.54%, which is below the 3.72% category average. The fund normally distributes its income monthly.

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 New York Municipal Income ETF Grades

Year to date, the ETF has returned 0.9%, 0.1 percentage points better than the category, which translates into a grade of B. The fund has returned 6.8% over the past year (grade of C), 3.1% over the past three years (grade of B) and 0.3% per year over the past five years (grade of B) and 1.8% per year over the past 10 years (grade of A).

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