FLMB vs. TOAK

Last updated Jun 23, 2026

FLMB (Franklin Liberty Federal Tax-Free Bond ETF) and TOAK (Twin Oak Short Horizon Absolute Return ETF) are both exchange-traded funds - FLMB is a Municipal Bonds fund actively managed by Franklin Templeton, while TOAK is a Multistrategy fund actively managed by Twin Oak. Both are actively managed. Over the past year, FLMB returned 7.99% vs 3.65% for TOAK. At a correlation of -0.05, they often move in opposite directions. FLMB charges 0.30%/yr vs 0.25%/yr for TOAK.

Performance

FLMB vs. TOAK - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Franklin Liberty Federal Tax-Free Bond ETF (FLMB) and Twin Oak Short Horizon Absolute Return ETF (TOAK). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FLMB achieves a 2.21% return, which is significantly higher than TOAK's 1.50% return.

FLMB

• 1D: 0.00%
• 1M: 1.76%
• YTD: 2.21%
• 6M: 2.60%
• 1Y: 7.99%
• 3Y*: 4.13%
• 5Y*: 0.69%
• 10Y*: —

TOAK

• 1D: 0.02%
• 1M: 0.23%
• YTD: 1.50%
• 6M: 1.57%
• 1Y: 3.65%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

FLMB vs. TOAK - Yearly Performance Comparison

	2026 (YTD)	2025	2024
FLMB Franklin Liberty Federal Tax-Free Bond ETF	2.21%	3.93%	0.15%
TOAK Twin Oak Short Horizon Absolute Return ETF	1.50%	4.28%	1.36%

Correlation

The correlation between FLMB and TOAK is -0.08, 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	-0.08
Correlation (All Time) Calculated using the full available price history since Aug 20, 2024	-0.05

Return for Risk

FLMB vs. TOAK — Risk / Return Rank

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

FLMB

FLMB Risk / Return Rank: 68
FLMB Sharpe Ratio Rank: 74
FLMB Sortino Ratio Rank: 81
FLMB Omega Ratio Rank: 83
FLMB Calmar Ratio Rank: 51
FLMB Martin Ratio Rank: 52

TOAK

TOAK Risk / Return Rank: 50
TOAK Sharpe Ratio Rank: 36
TOAK Sortino Ratio Rank: 37
TOAK Omega Ratio Rank: 96
TOAK Calmar Ratio Rank: 42
TOAK Martin Ratio Rank: 40

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. TOAK - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Franklin Liberty Federal Tax-Free Bond ETF (FLMB) and Twin Oak Short Horizon Absolute Return ETF (TOAK). 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	TOAK	Difference
Sharpe ratio: Return per unit of total volatility	2.28	1.26	+1.02
Sortino ratio: Return per unit of downside risk	3.42	1.87	+1.56
Omega ratio: Gain probability vs. loss probability	1.48	1.77	-0.29
Calmar ratio: Return relative to maximum drawdown	2.47	2.03	+0.44
Martin ratio: Return relative to average drawdown	8.74	6.33	+2.41

FLMB vs. TOAK - Sharpe Ratio Comparison

The current FLMB Sharpe Ratio is 2.28, which is higher than the TOAK Sharpe Ratio of 1.26. The chart below compares the historical Sharpe Ratios of FLMB and TOAK, 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. TOAK - Drawdown Comparison

The maximum FLMB drawdown since its inception was -17.90%, which is greater than TOAK's maximum drawdown of -1.81%. Use the drawdown chart below to compare losses from any high point for FLMB and TOAK.

Drawdown Indicators

	FLMB	TOAK	Difference
Max Drawdown Largest peak-to-trough decline	-17.90%	-1.81%	-16.09%
Max Drawdown (1Y) Largest decline over 1 year	-3.25%	-1.81%	-1.44%
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	-0.15%	-1.55%	+1.40%
Average Drawdown Average peak-to-trough decline	-4.14%	-0.14%	-4.00%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.92%	0.58%	+0.34%

Volatility

FLMB vs. TOAK - Volatility Comparison

Franklin Liberty Federal Tax-Free Bond ETF (FLMB) has a higher volatility of 0.81% compared to Twin Oak Short Horizon Absolute Return ETF (TOAK) at 0.12%. This indicates that FLMB's price experiences larger fluctuations and is considered to be riskier than TOAK based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FLMB	TOAK	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.81%	0.12%	+0.69%
Volatility (6M) Calculated over the trailing 6-month period	2.48%	2.74%	-0.26%
Volatility (1Y) Calculated over the trailing 1-year period	3.53%	2.92%	+0.61%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	5.11%	2.19%	+2.92%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.56%	2.19%	+3.37%

FLMB vs. TOAK - Expense Ratio Comparison

FLMB has a 0.30% expense ratio, which is higher than TOAK's 0.25% expense ratio.

Dividends

FLMB vs. TOAK - Dividend Comparison

FLMB's dividend yield for the trailing twelve months is around 3.73%, while TOAK has not paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
FLMB Franklin Liberty Federal Tax-Free Bond ETF	3.73%	3.86%	3.79%	3.49%	2.80%	1.66%	2.07%	2.40%	2.68%	0.54%
TOAK Twin Oak Short Horizon Absolute Return ETF	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both FLMB and TOAK in my portfolio?

FLMB and TOAK have a correlation of -0.08, 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 TOAK?

FLMB has higher volatility (0.81%) compared to TOAK (0.12%). In terms of maximum drawdown, FLMB dropped -17.90% vs TOAK's -1.81%.

Which ETF is better, FLMB or TOAK?

On 1-year performance, FLMB leads with 7.99% vs 3.65% for TOAK. On fees, TOAK is cheaper at 0.25% per year. On volatility, TOAK has been the lower-risk option at 0.12%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FLMB or TOAK?

Over the 1-year period, FLMB has performed better with a 7.99% return vs 3.65%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FLMB or TOAK?

TOAK is cheaper with a 0.25% expense ratio, compared with 0.30% for FLMB.

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

FLMB has the higher dividend yield at 3.73%, compared with 0.00% for TOAK.

What is the main difference between FLMB and TOAK?

FLMB is categorized as Municipal Bonds, while TOAK is Multistrategy. They also come from different issuers: Franklin Templeton and Twin Oak. Their fees differ too: 0.30% for FLMB and 0.25% for TOAK.

Which has better risk-adjusted returns?

FLMB currently has the higher Sharpe Ratio (2.28 vs 1.26), 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.