ETF Evaluator:
Franklin Short Duration US Govt ETF (FTSD)
Follow This ETF
(as of Jul 31)
Best Performing in Short Government Over the Last Year
| 16.0% | SoFi Enhanced Yield ETF (THTA) |
| 5.1% | First Trust Low Duration Oppos ETF (LMBS) |
| 4.0% | Franklin Short Duration US Govt ETF (FTSD) |
| 3.9% | Xtrackers US 0-1 Year Treasury ETF (TRSY) |
| 3.7% | Short Government () |
Risk
Index
Risk
Index
ETF Details
Franklin Short Duration US Govt ETF Overview
Franklin Short Duration US Govt ETF (FTSD) is an actively managed Taxable Bond Short Government exchange-traded fund (ETF). Franklin Templeton Investments launched the ETF in 2013.
The investment seeks a high level of current income as is consistent with prudent investing, while seeking preservation of capital.
Under normal market conditions, the fund invests at least 80% of its net assets in securities issued or guaranteed by the U.S. government, its agencies, or instrumentalities. To pursue its investment goal, it may invest in certain interest rate-related derivative transactions, principally U.S. Treasury futures contracts and options on interest rate/bond futures.
About Franklin Short Duration US Govt ETF (FTSD)
There are 4 members of the management team with an average tenure of 5.27 years: Michael Salm (2024), Patrick Klein (2013), Jatin Misra (2024) and Neil Dhruv (2021). Management tenure is more important for actively managed ETFs than passive index ETFs.
The ETF has 2 primary benchmarks: Bloomberg US Agg Bond TR USD index with a weighting of 100% and Bloomberg US Govt 1-3 Yr TR USD index with a weighting of 100%. Franklin Short Duration US Govt ETF has 341 securities in its portfolio. The top 10 holdings constitute 46.5% 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 Short Duration US Govt ETF is part of the Fixed Income global asset class and is within the Taxable Bond ETF group. Franklin Short Duration US Govt ETF has -0.1% 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 92.8% (93.0% domestic bond, -0.1% foreign bond and 0.0% convertible bond). Franklin Short Duration US Govt ETF has 7.2% of the portfolio in cash.
Assets Under Management
The fund has $293 million in total assets, which is below the $3 billion average for the Short Government 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.
FTSD 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 Short Duration US Govt ETF expense ratio is below average compared to funds in the Short Government category. Franklin Short Duration US Govt ETF has an expense ratio of 0.25%, which is 71% higher than its category average, making the fund expense ratio grade a F. 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 Short Duration US Govt ETF has a portfolio turnover rate of 61%, which indicates that it holds its assets around / 0.0 years. By way of comparison, the average portfolio turnover is 192% for the Short Government category.
Recently, in the month of June 2026, Franklin Short Duration US Govt ETF returned 0.2%, which earned it a grade of A, as the Short Government category had an average return of 0.1%. 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 Short Duration US Govt ETF has a trailing yield of 4.49%, which is above the 4.29% 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 Short Duration US Govt ETF Grades
Year to date, the ETF has returned 1.2%, 0.2 percentage points better than the category, which translates into a grade of B. The fund has returned 4.0% over the past year (grade of A), 5.1% over the past three years (grade of A) and 2.6% per year over the past five years (grade of A) and 2.1% per year over the past 10 years (grade of A).
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FTSD Trailing NAV Total Returns Data as of 6/30/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| FTSD Return (NAV) | 0.2% | 0.7% | 4.0% | 5.1% | 2.6% | 2.1% |
| FTSD Return (Price) | 0.4% | 0.8% | 4.1% | 5.1% | 2.6% | 2.1% |
| NAV +/- Price Return | -0.151% | -0.057% | -0.120% | -0.050% | -0.014% | -0.011% |
| Short Government Avg | 0.1% | 0.5% | 3.7% | 4.5% | 2.0% | 1.9% |
| FTSD Grade (NAV) | A | A | A | A | A | A |
| +/- Category (NAV) | 0.1% | 0.2% | 0.3% | 0.6% | 0.5% | 0.2% |
| FTSD Tax-Cost Ratio | na | na | 1.8% | 1.9% | 1.4% | 1.2% |
FTSD Annual NAV Total ReturnsData as of 6/30/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| FTSD Return (NAV) | 1.2% | 5.5% | 5.1% | 4.9% | -3.1% | -0.9% | 3.0% | 3.0% | 1.2% | 0.8% | 1.0% |
| FTSD Return (Price) | 1.2% | 5.7% | 5.2% | 4.8% | -3.1% | -0.9% | 3.1% | 2.4% | 1.6% | 0.6% | 0.9% |
| NAV +/- Price Ret | -0.023% | 0.023% | 0.015% | -0.003% | -0.002% | 0.059% | 0.050% | -19.4% | 36.6% | -20.4% | -10.5% |
| Short Government Avg | 1.1% | 4.5% | 4.2% | 4.5% | -4.2% | -0.8% | 3.3% | 3.8% | 1.4% | 0.9% | 1.8% |
| FTSD Grade (NAV) | B | B | A | A | A | F | F | F | F | B | B |
| +/- Category | 0.2% | 1.0% | 0.9% | 0.3% | 1.1% | -0.1% | -0.3% | -0.9% | -0.2% | -0.1% | -0.8% |
| Risk Measures | |
| Beta: | 0.17 |
| R-Squared: | 82% |
| Standard Deviation: | 1.1% |
| Category Risk Index: | 0.65 |
| Category Risk Rating: | Below Average |
| Total Risk Index: | 0.09 |
| Total Risk Rating: | Low |
| Portfolio Characteristics | |
| Yield: | 4.5% |
| Total Assets: | $ 294 Mil |
| Share Class Assets: | $ 294 Mil |
| Turnover: | 61.0% |
| Expense Ratio: | 0.25% |
| Index Fund: | No |
| Index Tracked: | Bloomberg US Agg Bond TR USD |
| Index Weighting: | 100% |
| Leveraged: | No |
| Socially Responsible Fund: | No |
| Capital Gains Distribution Frequency: | |
| Income Distribution Frequency: | Monthly |
Management Team
| Number of Managers: 4 | |||
| Longest Tenure: 12.7 years | |||
| Average Tenure: 5.3 years | |||
| Managers (Year): Klein Patrick (2013), Dhruv Neil (2021), Salm Michael (2024), Misra Jatin (2024) | |||
Portfolio Composition (as of 6/30/26)
| # of Holdings: | 341 |
| % in Top 10 Holdings: | 46.5% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | -0.1% |
Portfolio Allocation |
|
| Domestic Stock: | 0.0% |
| Foreign Stock: | 0.0% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 93.0% |
| Foreign Bond: | -0.1% |
| Convertible Bond: | 0.0% |
| Other: | 0.0% |
| Cash: | 7.2% |
Purchase Information
| Legal Structure: | Open Ended Investment Company |
| Fund Family: | Franklin Templeton Investments |
| Phone Number: | 800-342-5236 |
| Website: | |
| Inception Date: | November 4, 2013 |
Expenses and Fees
| Expense Ratio (%): | 0.25% (Rating: Below Avg) |
| Category Average Expense Ratio (%): | 0.15% |
