FLMB vs. PYPY

Last updated Jul 12, 2026

FLMB (Franklin Liberty Federal Tax-Free Bond ETF) and PYPY (Yieldmax PYPL Option Income Strategy ETF) are both exchange-traded funds - FLMB is a Municipal Bonds fund actively managed by Franklin Templeton, while PYPY is a Derivative Income fund actively managed by YieldMax. Both are actively managed. Over the past year, FLMB returned 8.17% vs -34.51% for PYPY. At a 0.09 correlation, their price movements are largely independent. FLMB charges 0.30%/yr vs 1.01%/yr for PYPY.

Performance

FLMB vs. PYPY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Franklin Liberty Federal Tax-Free Bond ETF (FLMB) 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, FLMB achieves a 2.12% return, which is significantly higher than PYPY's -19.62% return.

FLMB

• 1D: -0.10%
• 1M: 0.23%
• 6M: 1.69%
• YTD: 2.12%
• 1Y: 8.17%
• 3Y*: 4.27%
• 5Y*: 0.50%
• 10Y*: —

PYPY

• 1D: 1.42%
• 1M: 6.94%
• 6M: -19.27%
• YTD: -19.62%
• 1Y: -34.51%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

FLMB vs. PYPY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
FLMB Franklin Liberty Federal Tax-Free Bond ETF	2.12%	3.93%	2.47%	7.86%
PYPY Yieldmax PYPL Option Income Strategy ETF	-19.62%	-30.17%	43.88%	6.19%

Correlation

The correlation between FLMB and PYPY is 0.16, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.16
Correlation (All Time) Calculated using the full available price history since Sep 26, 2023	0.09

Return for Risk

FLMB vs. PYPY — Risk / Return Rank

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

FLMB

FLMB Risk / Return Rank: 79
FLMB Sharpe Ratio Rank: 88
FLMB Sortino Ratio Rank: 91
FLMB Omega Ratio Rank: 91
FLMB Calmar Ratio Rank: 61
FLMB Martin Ratio Rank: 63

PYPY

PYPY Risk / Return Rank: 2
PYPY Sharpe Ratio Rank: 1
PYPY Sortino Ratio Rank: 2
PYPY Omega Ratio Rank: 1
PYPY Calmar Ratio Rank: 2
PYPY Martin Ratio Rank: 3

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.

FLMB vs. PYPY - Risk-Adjusted Trends Comparison

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

	FLMB	PYPY	Difference
Sharpe ratio: Return per unit of total volatility	2.27	-1.12	+3.39
Sortino ratio: Return per unit of downside risk	3.40	-1.44	+4.85
Omega ratio: Gain probability vs. loss probability	1.47	0.79	+0.69
Calmar ratio: Return relative to maximum drawdown	2.43	-0.81	+3.25
Martin ratio: Return relative to average drawdown	8.90	-1.29	+10.19

FLMB vs. PYPY - Sharpe Ratio Comparison

The current FLMB Sharpe Ratio is 2.27, which is higher than the PYPY Sharpe Ratio of -1.12. The chart below compares the historical Sharpe Ratios of FLMB 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

FLMB vs. PYPY - Drawdown Comparison

The maximum FLMB drawdown since its inception was -17.90%, smaller than the maximum PYPY drawdown of -53.64%. Use the drawdown chart below to compare losses from any high point for FLMB and PYPY.

Drawdown Indicators

	FLMB	PYPY	Difference
Max Drawdown Largest peak-to-trough decline	-17.90%	-53.64%	+35.74%
Max Drawdown (1Y) Largest decline over 1 year	-3.25%	-47.14%	+43.89%
Max Drawdown (3Y) Largest decline over 3 years	-7.33%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-17.90%	—	—
Current Drawdown Current decline from peak	-0.56%	-46.75%	+46.19%
Average Drawdown Average peak-to-trough decline	-4.12%	-17.32%	+13.20%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.90%	29.58%	-28.68%

Volatility

FLMB vs. PYPY - Volatility Comparison

The current volatility for Franklin Liberty Federal Tax-Free Bond ETF (FLMB) is 0.59%, while Yieldmax PYPL Option Income Strategy ETF (PYPY) has a volatility of 6.98%. This indicates that FLMB 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

	FLMB	PYPY	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.59%	6.98%	-6.39%
Volatility (6M) Calculated over the trailing 6-month period	2.48%	29.20%	-26.72%
Volatility (1Y) Calculated over the trailing 1-year period	3.49%	34.19%	-30.70%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	5.10%	30.85%	-25.75%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.55%	30.85%	-25.30%

FLMB vs. PYPY - Expense Ratio Comparison

FLMB has a 0.30% expense ratio, which is lower than PYPY's 1.01% expense ratio.

Dividends

FLMB vs. PYPY - Dividend Comparison

FLMB's dividend yield for the trailing twelve months is around 4.03%, less than PYPY's 66.52% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
FLMB Franklin Liberty Federal Tax-Free Bond ETF	4.03%	3.86%	3.79%	3.49%	2.80%	1.66%	2.07%	2.40%	2.68%	0.54%
PYPY Yieldmax PYPL Option Income Strategy ETF	66.52%	64.68%	48.65%	5.70%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both FLMB and PYPY in my portfolio?

FLMB and PYPY have a correlation of 0.16, 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 PYPY?

PYPY has higher volatility (6.98%) compared to FLMB (0.59%). In terms of maximum drawdown, FLMB dropped -17.90% vs PYPY's -53.64%.

Which ETF is better, FLMB or PYPY?

On 1-year performance, FLMB leads with 8.17% vs -34.51% for PYPY. On fees, FLMB is cheaper at 0.30% per year. On volatility, FLMB has been the lower-risk option at 0.59%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FLMB or PYPY?

Over the 1-year period, FLMB has performed better with a 8.17% return vs -34.51%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FLMB or PYPY?

FLMB is cheaper with a 0.30% expense ratio, compared with 1.01% for PYPY.

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

PYPY has the higher dividend yield at 66.52%, compared with 4.03% for FLMB.

What is the main difference between FLMB and PYPY?

FLMB is categorized as Municipal Bonds, while PYPY is Derivative Income. They also come from different issuers: Franklin Templeton and YieldMax. Their fees differ too: 0.30% for FLMB and 1.01% for PYPY.

Which has better risk-adjusted returns?

FLMB currently has the higher Sharpe Ratio (2.27 vs -1.12), 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.