FKTIX vs. PYPY

Last updated Jun 23, 2026

FKTIX (Franklin Federal Tax Free Income Fund) and PYPY (Yieldmax PYPL Option Income Strategy ETF) are both funds - FKTIX is a Municipal Bonds fund managed by Franklin Templeton, while PYPY is a Derivative Income fund actively managed by YieldMax. Over the past year, FKTIX returned 8.01% vs -39.50% for PYPY. At a 0.03 correlation, their price movements are largely independent. FKTIX charges 0.64%/yr vs 1.01%/yr for PYPY.

Performance

FKTIX vs. PYPY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Franklin Federal Tax Free Income Fund (FKTIX) and Yieldmax PYPL Option Income Strategy ETF (PYPY). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FKTIX achieves a 2.19% return, which is significantly higher than PYPY's -24.96% 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%

PYPY

• 1D: -0.26%
• 1M: -4.78%
• YTD: -24.96%
• 6M: -26.42%
• 1Y: -39.50%
• 3Y*: —
• 5Y*: —
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

FKTIX vs. PYPY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
FKTIX Franklin Federal Tax Free Income Fund	2.19%	4.84%	3.44%	7.25%
PYPY Yieldmax PYPL Option Income Strategy ETF	-24.96%	-30.17%	43.88%	6.19%

Correlation

The correlation between FKTIX and PYPY is 0.09, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.09
Correlation (All Time) Calculated using the full available price history since Sep 26, 2023	0.03

Return for Risk

FKTIX vs. PYPY — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

FKTIX

FKTIX Risk / Return Rank: 72
FKTIX Sharpe Ratio Rank: 84
FKTIX Sortino Ratio Rank: 89
FKTIX Omega Ratio Rank: 90
FKTIX Calmar Ratio Rank: 50
FKTIX Martin Ratio Rank: 46

PYPY

PYPY Risk / Return Rank: 1
PYPY Sharpe Ratio Rank: 1
PYPY Sortino Ratio Rank: 1
PYPY Omega Ratio Rank: 1
PYPY Calmar Ratio Rank: 2
PYPY Martin Ratio Rank: 1

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

FKTIX vs. PYPY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Franklin Federal Tax Free Income Fund (FKTIX) and Yieldmax PYPL Option Income Strategy ETF (PYPY). 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	PYPY	Difference
Sharpe ratio: Return per unit of total volatility	2.52	-1.17	+3.69
Sortino ratio: Return per unit of downside risk	4.00	-1.53	+5.53
Omega ratio: Gain probability vs. loss probability	1.62	0.77	+0.85
Calmar ratio: Return relative to maximum drawdown	2.59	-0.84	+3.43
Martin ratio: Return relative to average drawdown	9.10	-1.41	+10.51

FKTIX vs. PYPY - Sharpe Ratio Comparison

The current FKTIX Sharpe Ratio is 2.52, which is higher than the PYPY Sharpe Ratio of -1.17. The chart below compares the historical Sharpe Ratios of FKTIX and PYPY, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

FKTIX vs. PYPY - Drawdown Comparison

The maximum FKTIX drawdown since its inception was -18.53%, smaller than the maximum PYPY drawdown of -53.64%. Use the drawdown chart below to compare losses from any high point for FKTIX and PYPY.

Drawdown Indicators

	FKTIX	PYPY	Difference
Max Drawdown Largest peak-to-trough decline	-18.53%	-53.64%	+35.11%
Max Drawdown (1Y) Largest decline over 1 year	-3.11%	-47.14%	+44.03%
Max Drawdown (3Y) Largest decline over 3 years	-6.99%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-17.09%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-17.09%	—	—
Current Drawdown Current decline from peak	-0.01%	-50.29%	+50.28%
Average Drawdown Average peak-to-trough decline	-2.34%	-16.73%	+14.39%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.88%	28.04%	-27.16%

Volatility

FKTIX vs. PYPY - Volatility Comparison

The current volatility for Franklin Federal Tax Free Income Fund (FKTIX) is 0.84%, while Yieldmax PYPL Option Income Strategy ETF (PYPY) has a volatility of 6.99%. This indicates that FKTIX experiences smaller price fluctuations and is considered to be less risky than PYPY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FKTIX	PYPY	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.84%	6.99%	-6.15%
Volatility (6M) Calculated over the trailing 6-month period	2.38%	28.78%	-26.40%
Volatility (1Y) Calculated over the trailing 1-year period	3.20%	33.94%	-30.74%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.67%	30.97%	-26.30%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.28%	30.97%	-26.69%

FKTIX vs. PYPY - Expense Ratio Comparison

FKTIX has a 0.64% expense ratio, which is lower than PYPY's 1.01% expense ratio.

Dividends

FKTIX vs. PYPY - Dividend Comparison

FKTIX's dividend yield for the trailing twelve months is around 3.79%, less than PYPY's 74.46% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
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%
PYPY Yieldmax PYPL Option Income Strategy ETF	74.46%	64.68%	48.65%	5.70%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both FKTIX and PYPY in my portfolio?

FKTIX and PYPY have a correlation of 0.09, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FKTIX or PYPY?

PYPY has higher volatility (6.99%) compared to FKTIX (0.84%). In terms of maximum drawdown, FKTIX dropped -18.53% vs PYPY's -53.64%.

Which has better risk-adjusted returns?

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.