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Franklin Short-Term Municipal Income ETF (FTMS) Diversifiers

ETF · Currency in USD · Last updated Jun 27, 2026

The Franklin Short-Term Municipal Income ETF (FTMS) is an actively managed fund that provides exposure to investment-grade U.S. municipal bonds with maturities of three years or less. The income generated is generally exempt from federal personal income taxes, and the short-maturity focus is intended to limit interest-rate sensitivity while delivering tax-advantaged income.

Looking to diversify beyond FTMS? The ETFs below have the lowest correlation with FTMS — they tend to move on their own, which can help reduce risk when the rest of your portfolio drops. The stock ideas table highlights individual companies that behave independently from FTMS.

Best Diversifiers for FTMS

2 ETFs have low correlation with FTMS (below 0.3), 0 of which are negatively correlated. The least correlated is First Trust Ultra Short Duration Municipal ETF (FUMB) (Municipal Bonds) with a 1Y correlation of 0.07, roughly unchanged from 0.07 over 5 years.

SymbolNameCorrelation 1YCorrelation 3YCorrelation 5YRisk / Return RankCategoryCompare
FUMB
First Trust Ultra Short Duration Municipal ETF0.070.070.07
97
Municipal Bonds, Ultrashort BondFTMS vs FUMB
MEAR
iShares Short Maturity Municipal Bond ETF0.260.260.26
96
Municipal BondsFTMS vs MEAR

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Diversification Analysis

Build a portfolio that complements FTMS

Add FTMS to the Diversification Analyzer to see how it overlaps with your other holdings and which assets balance it best.

Analyze a portfolio with FTMS