FLMB vs. IBMO
FLMB (Franklin Liberty Federal Tax-Free Bond ETF) and IBMO (iShares iBonds Dec 2026 Term Muni Bond ETF) are both Municipal Bonds funds. FLMB is actively managed, while IBMO is passively managed. Over the past 5 years, FLMB returned 0.64%/yr vs 0.67%/yr for IBMO. A 0.54 correlation means they provide meaningful diversification when combined. FLMB charges 0.30%/yr vs 0.18%/yr for IBMO.
Performance
FLMB vs. IBMO - Performance Comparison
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Returns By Period
In the year-to-date period, FLMB achieves a 1.89% return, which is significantly higher than IBMO's 0.94% return.
FLMB
- 1D
- -0.09%
- 1M
- 0.74%
- YTD
- 1.89%
- 6M
- 2.27%
- 1Y
- 8.74%
- 3Y*
- 4.38%
- 5Y*
- 0.64%
- 10Y*
- —
IBMO
- 1D
- 0.01%
- 1M
- 0.26%
- YTD
- 0.94%
- 6M
- 1.23%
- 1Y
- 2.71%
- 3Y*
- 2.97%
- 5Y*
- 0.67%
- 10Y*
- —
FLMB vs. IBMO - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |
|---|---|---|---|---|---|---|---|---|
FLMB Franklin Liberty Federal Tax-Free Bond ETF | 1.89% | 3.93% | 2.47% | 7.72% | -12.16% | 0.80% | 7.39% | 5.51% |
IBMO iShares iBonds Dec 2026 Term Muni Bond ETF | 0.94% | 3.11% | 1.97% | 2.90% | -5.36% | -0.16% | 5.48% | 4.69% |
Correlation
The correlation between FLMB and IBMO is 0.15, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.15 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.38 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.52 |
Correlation (All Time) Calculated using the full available price history since Apr 5, 2019 | 0.54 |
Over the past year, the correlation between FLMB and IBMO has dropped to 0.15 - well below their long-term average of 0.54, suggesting their price drivers have been diverging.
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Return for Risk
FLMB vs. IBMO — Risk / Return Rank
FLMB
IBMO
FLMB vs. IBMO - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Franklin Liberty Federal Tax-Free Bond ETF (FLMB) and iShares iBonds Dec 2026 Term Muni Bond ETF (IBMO). 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.
| FLMB | IBMO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.10 | ||
| Sortino ratioReturn per unit of downside risk | -0.36 | ||
| Omega ratioGain probability vs. loss probability | 1.50 | 1.51 | -0.01 |
| Calmar ratioReturn relative to maximum drawdown | 2.70 | 7.20 | -4.50 |
| Martin ratioReturn relative to average drawdown | 9.56 | 21.39 | -11.84 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| FLMB | IBMO | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 2.37 | 2.47 | -0.10 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.13 | 0.31 | -0.19 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.42 | 0.41 | +0.01 |
Drawdowns
FLMB vs. IBMO - Drawdown Comparison
The maximum FLMB drawdown since its inception was -17.90%, which is greater than IBMO's maximum drawdown of -14.77%. Use the drawdown chart below to compare losses from any high point for FLMB and IBMO.
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Drawdown Indicators
| FLMB | IBMO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -17.90% | -14.77% | -3.13% |
Max Drawdown (1Y)Largest decline over 1 year | -3.25% | -0.38% | -2.87% |
Max Drawdown (3Y)Largest decline over 3 years | -7.33% | -1.76% | -5.57% |
Max Drawdown (5Y)Largest decline over 5 years | -17.90% | -8.86% | -9.04% |
Current DrawdownCurrent decline from peak | -0.46% | 0.00% | -0.46% |
Average DrawdownAverage peak-to-trough decline | -4.17% | -2.32% | -1.85% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.92% | 0.13% | +0.79% |
Volatility
FLMB vs. IBMO - Volatility Comparison
Franklin Liberty Federal Tax-Free Bond ETF (FLMB) has a higher volatility of 1.11% compared to iShares iBonds Dec 2026 Term Muni Bond ETF (IBMO) at 0.21%. This indicates that FLMB's price experiences larger fluctuations and is considered to be riskier than IBMO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| FLMB | IBMO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.11% | 0.21% | +0.90% |
Volatility (6M)Calculated over the trailing 6-month period | 2.46% | 0.84% | +1.62% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.70% | 1.11% | +2.59% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 5.11% | 2.15% | +2.96% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 5.58% | 4.52% | +1.06% |
FLMB vs. IBMO - Expense Ratio Comparison
FLMB has a 0.30% expense ratio, which is higher than IBMO's 0.18% expense ratio.
Dividends
FLMB vs. IBMO - Dividend Comparison
FLMB's dividend yield for the trailing twelve months is around 3.75%, more than IBMO's 2.39% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
FLMB Franklin Liberty Federal Tax-Free Bond ETF | 3.75% | 3.86% | 3.79% | 3.49% | 2.80% | 1.66% | 2.07% | 2.40% | 2.68% | 0.54% |
IBMO iShares iBonds Dec 2026 Term Muni Bond ETF | 2.39% | 2.37% | 2.15% | 1.65% | 0.89% | 0.62% | 1.03% | 1.01% | 0.00% | 0.00% |
Frequently Asked Questions
FLMB and IBMO have a correlation of 0.15, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
FLMB has higher volatility (1.11%) compared to IBMO (0.21%). In terms of maximum drawdown, FLMB dropped -17.90% vs IBMO's -14.77%.
On 5-year performance, IBMO leads with 0.67% vs 0.64% for FLMB. On fees, IBMO is cheaper at 0.18% per year. On volatility, IBMO has been the lower-risk option at 0.21%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 5-year period, IBMO has performed better with a 0.67% return vs 0.64%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
IBMO is cheaper with a 0.18% expense ratio, compared with 0.30% for FLMB.
FLMB has the higher dividend yield at 3.75%, compared with 2.39% for IBMO.
They also come from different issuers: Franklin Templeton and iShares. Their fees differ too: 0.30% for FLMB and 0.18% for IBMO.
IBMO currently has the higher Sharpe Ratio (2.47 vs 2.37), 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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