FLMB vs. PBDC

Last updated Aug 4, 2026

FLMB (Franklin Liberty Federal Tax-Free Bond ETF) and PBDC (Putnam BDC Income ETF) are both exchange-traded funds - FLMB is a Municipal Bonds fund actively managed by Franklin Templeton, while PBDC is a Financials Equities fund actively managed by Franklin Templeton. Both are actively managed. Over the past 3 years, FLMB returned 3.83%/yr vs 5.49%/yr for PBDC. Their 0.04 correlation means their historical movements had little consistent relationship. FLMB charges 0.30%/yr vs 13.49%/yr for PBDC.

Performance

FLMB vs. PBDC - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Franklin Liberty Federal Tax-Free Bond ETF (FLMB) and Putnam BDC Income ETF (PBDC). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FLMB achieves a 0.50% return, which is significantly higher than PBDC's -6.86% return.

FLMB

• 1D: 0.11%
• 1M: -2.06%
• 6M: -0.05%
• YTD: 0.50%
• 1Y: 6.42%
• 3Y*: 3.83%
• 5Y*: 0.10%
• 10Y*: —
• ALL TIME*: 2.13%

PBDC

• 1D: 2.58%
• 1M: 1.53%
• 6M: -3.75%
• YTD: -6.86%
• 1Y: -10.01%
• 3Y*: 5.49%
• 5Y*: —
• 10Y*: —
• ALL TIME*: 12.54%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
FLMB Franklin Liberty Federal Tax-Free Bond ETF	$236.78K	$198.32K	$268.48K
PBDC Putnam BDC Income ETF	$3.20M	$3.19M	$3.74M

FLMB vs. PBDC - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
FLMB Franklin Liberty Federal Tax-Free Bond ETF	0.50%	3.93%	2.47%	7.72%	4.64%
PBDC Putnam BDC Income ETF	-6.86%	-1.77%	19.43%	30.52%	10.38%

Correlation

The correlation between FLMB and PBDC is 0.13, which is low. Their historical price movements had little consistent relationship.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.13
Correlation (3Y) Balances recent behavior with more history.	0.05
Correlation (All Time) Calculated using the full available price history since Sep 30, 2022	0.04

Return for Risk

FLMB vs. PBDC — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

FLMB

FLMB Risk / Return Rank: 68
FLMB Sharpe Ratio Rank: 75
FLMB Sortino Ratio Rank: 77
FLMB Omega Ratio Rank: 83
FLMB Calmar Ratio Rank: 52
FLMB Martin Ratio Rank: 54

PBDC

PBDC Risk / Return Rank: 5
PBDC Sharpe Ratio Rank: 5
PBDC Sortino Ratio Rank: 5
PBDC Omega Ratio Rank: 5
PBDC Calmar Ratio Rank: 5
PBDC Martin Ratio Rank: 5

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

FLMB vs. PBDC - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Franklin Liberty Federal Tax-Free Bond ETF (FLMB) and Putnam BDC Income ETF (PBDC). 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.

	FLMB	PBDC	Difference
Sharpe ratio: Return per unit of total volatility	1.85	-0.53	+2.38
Sortino ratio: Return per unit of downside risk	2.65	-0.64	+3.29
Omega ratio: Gain probability vs. loss probability	1.38	0.93	+0.45
Calmar ratio: Return relative to maximum drawdown	1.98	-0.57	+2.55
Martin ratio: Return relative to average drawdown	6.77	-0.97	+7.74

FLMB vs. PBDC - Sharpe Ratio Comparison

The current FLMB Sharpe Ratio is 1.85, which is higher than the PBDC Sharpe Ratio of -0.53. The chart below compares the historical Sharpe Ratios of FLMB and PBDC, 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

FLMB vs. PBDC - Drawdown Comparison

The maximum FLMB drawdown since its inception was -17.90%, smaller than the maximum PBDC drawdown of -20.47%. Use the drawdown chart below to compare losses from any high point for FLMB and PBDC.

Drawdown Indicators

	FLMB	PBDC	Difference
Max Drawdown Largest peak-to-trough decline	-17.90%	-20.47%	+2.57%
Max Drawdown (1Y) Largest decline over 1 year	-3.25%	-17.71%	+14.46%
Max Drawdown (3Y) Largest decline over 3 years	-6.44%	-20.47%	+14.03%
Max Drawdown (5Y) Largest decline over 5 years	-17.82%	—	—
Current Drawdown Current decline from peak	-2.14%	-14.56%	+12.42%
Average Drawdown Average peak-to-trough decline	-4.10%	-5.17%	+1.07%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.95%	10.35%	-9.40%

Volatility

FLMB vs. PBDC - Volatility Comparison

The current volatility for Franklin Liberty Federal Tax-Free Bond ETF (FLMB) is 1.16%, while Putnam BDC Income ETF (PBDC) has a volatility of 5.07%. This indicates that FLMB experiences smaller price fluctuations and is considered to be less risky than PBDC based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FLMB	PBDC	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.16%	5.07%	-3.91%
Volatility (6M) Calculated over the trailing 6-month period	2.70%	15.41%	-12.71%
Volatility (1Y) Calculated over the trailing 1-year period	3.49%	19.06%	-15.57%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	5.13%	17.04%	-11.91%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.54%	17.04%	-11.50%

FLMB vs. PBDC - Expense Ratio Comparison

FLMB has a 0.30% expense ratio, which is lower than PBDC's 13.49% expense ratio.

Dividends

FLMB vs. PBDC - Dividend Comparison

FLMB's dividend yield for the trailing twelve months is around 4.13%, less than PBDC's 11.29% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
FLMB Franklin Liberty Federal Tax-Free Bond ETF	4.13%	3.86%	3.79%	3.49%	2.80%	1.66%	2.07%	2.40%	2.68%	0.54%
PBDC Putnam BDC Income ETF	11.29%	10.53%	9.29%	9.86%	3.40%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both FLMB and PBDC in my portfolio?

FLMB and PBDC have a correlation of 0.13, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FLMB or PBDC?

PBDC has higher volatility (5.07%) compared to FLMB (1.16%). In terms of maximum drawdown, FLMB dropped -17.90% vs PBDC's -20.47%.

Which ETF is better, FLMB or PBDC?

On 3-year performance, PBDC leads with 5.49% vs 3.83% for FLMB. On fees, FLMB is cheaper at 0.30% per year. On volatility, FLMB has been the lower-risk option at 1.16%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FLMB or PBDC?

Over the 3-year period, PBDC has performed better with a 5.49% return vs 3.83%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FLMB or PBDC?

FLMB is cheaper with a 0.30% expense ratio, compared with 13.49% for PBDC.

Which ETF pays a higher dividend yield, FLMB or PBDC?

PBDC has the higher dividend yield at 11.29%, compared with 4.13% for FLMB.

What is the main difference between FLMB and PBDC?

FLMB is categorized as Municipal Bonds, while PBDC is Financials Equities. Their fees differ too: 0.30% for FLMB and 13.49% for PBDC.

Which has better risk-adjusted returns?

FLMB currently has the higher Sharpe Ratio (1.85 vs -0.53), 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.