FKTIX vs. AGG
FKTIX (Franklin Federal Tax Free Income Fund) and AGG (iShares Core U.S. Aggregate Bond ETF) are both funds - FKTIX is a Municipal Bonds fund managed by Franklin Templeton, while AGG is a Total Bond Market fund tracking the Bloomberg U.S. Aggregate Bond Index. Over the past 10 years, FKTIX returned 2.12%/yr vs 1.53%/yr for AGG. At a 0.50 correlation, their price movements are largely independent. FKTIX charges 0.64%/yr vs 0.03%/yr for AGG.
Performance
FKTIX vs. AGG - Performance Comparison
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Returns By Period
In the year-to-date period, FKTIX achieves a 2.19% return, which is significantly higher than AGG's 0.39% return. Over the past 10 years, FKTIX has outperformed AGG with an annualized return of 2.12%, while AGG has yielded a comparatively lower 1.53% annualized return.
FKTIX
- 1D
- 0.00%
- 1M
- 1.93%
- YTD
- 2.19%
- 6M
- 2.73%
- 1Y
- 8.01%
- 3Y*
- 4.73%
- 5Y*
- 1.01%
- 10Y*
- 2.12%
AGG
- 1D
- -0.27%
- 1M
- 0.53%
- YTD
- 0.39%
- 6M
- 0.47%
- 1Y
- 4.45%
- 3Y*
- 3.94%
- 5Y*
- 0.06%
- 10Y*
- 1.53%
FKTIX vs. AGG - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
FKTIX Franklin Federal Tax Free Income Fund | 2.19% | 4.84% | 3.44% | 6.72% | -11.67% | 2.51% | 5.64% | 7.41% | 0.61% | 3.61% |
AGG iShares Core U.S. Aggregate Bond ETF | 0.39% | 7.19% | 1.31% | 5.65% | -13.02% | -1.77% | 7.48% | 8.46% | 0.09% | 3.55% |
Correlation
The correlation between FKTIX and AGG is 0.50, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.50 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.58 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.51 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.48 |
Correlation (All Time) Calculated using the full available price history since Sep 26, 2003 | 0.50 |
The correlation between FKTIX and AGG has been stable across timeframes, ranging from 0.48 to 0.58 - a consistent structural relationship.
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Return for Risk
FKTIX vs. AGG — Risk / Return Rank
FKTIX
AGG
FKTIX vs. AGG - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Franklin Federal Tax Free Income Fund (FKTIX) and iShares Core U.S. Aggregate Bond ETF (AGG). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| FKTIX | AGG | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.34 | ||
| Sortino ratioReturn per unit of downside risk | +2.26 | ||
| Omega ratioGain probability vs. loss probability | 1.62 | 1.21 | +0.42 |
| Calmar ratioReturn relative to maximum drawdown | 2.59 | 1.62 | +0.97 |
| Martin ratioReturn relative to average drawdown | 9.10 | 4.69 | +4.41 |
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Drawdowns
FKTIX vs. AGG - Drawdown Comparison
The maximum FKTIX drawdown since its inception was -18.53%, roughly equal to the maximum AGG drawdown of -18.43%. Use the drawdown chart below to compare losses from any high point for FKTIX and AGG.
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Drawdown Indicators
| FKTIX | AGG | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -18.53% | -18.43% | -0.10% |
Max Drawdown (1Y)Largest decline over 1 year | -3.11% | -2.76% | -0.35% |
Max Drawdown (3Y)Largest decline over 3 years | -6.99% | -6.11% | -0.88% |
Max Drawdown (5Y)Largest decline over 5 years | -17.09% | -17.82% | +0.73% |
Max Drawdown (10Y)Largest decline over 10 years | -17.09% | -18.43% | +1.34% |
Current DrawdownCurrent decline from peak | -0.01% | -2.01% | +2.00% |
Average DrawdownAverage peak-to-trough decline | -2.34% | -2.71% | +0.37% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.88% | 0.95% | -0.07% |
Volatility
FKTIX vs. AGG - Volatility Comparison
The current volatility for Franklin Federal Tax Free Income Fund (FKTIX) is 0.84%, while iShares Core U.S. Aggregate Bond ETF (AGG) has a volatility of 1.11%. This indicates that FKTIX experiences smaller price fluctuations and is considered to be less risky than AGG based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| FKTIX | AGG | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.84% | 1.11% | -0.27% |
Volatility (6M)Calculated over the trailing 6-month period | 2.38% | 2.84% | -0.46% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.20% | 3.82% | -0.62% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 4.67% | 6.10% | -1.43% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 4.28% | 5.41% | -1.13% |
FKTIX vs. AGG - Expense Ratio Comparison
FKTIX has a 0.64% expense ratio, which is higher than AGG's 0.03% expense ratio.
Dividends
FKTIX vs. AGG - Dividend Comparison
FKTIX's dividend yield for the trailing twelve months is around 3.79%, less than AGG's 3.98% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
AGG iShares Core U.S. Aggregate Bond ETF | 3.98% | 3.89% | 3.74% | 3.13% | 2.39% | 1.77% | 2.14% | 2.70% | 2.72% | 2.32% | 2.39% | 2.45% |
FKTIX Franklin Federal Tax Free Income Fund | 3.79% | 4.92% | 3.94% | 3.15% | 3.23% | 2.64% | 2.88% | 3.81% | 3.77% | 3.80% | 3.86% | 3.78% |
Frequently Asked Questions
FKTIX and AGG have a correlation of 0.50, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
AGG has higher volatility (1.11%) compared to FKTIX (0.84%). In terms of maximum drawdown, FKTIX dropped -18.53% vs AGG's -18.43%.
FKTIX currently has the higher Sharpe Ratio (2.52 vs 1.17), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.
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