FTMS vs. TAXI

Last updated Jun 27, 2026

FTMS (Franklin Short-Term Municipal Income ETF) and TAXI (Northern Trust Intermediate Tax-Exempt Bond ETF) are both Municipal Bonds funds. FTMS is actively managed, while TAXI is passively managed. At a 0.27 correlation, their price movements are largely independent. FTMS charges 0.21%/yr vs 0.05%/yr for TAXI.

Performance

FTMS vs. TAXI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Franklin Short-Term Municipal Income ETF (FTMS) and Northern Trust Intermediate Tax-Exempt Bond ETF (TAXI). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FTMS achieves a 1.41% return, which is significantly higher than TAXI's 1.17% return.

FTMS

• 1D: -0.20%
• 1M: 0.39%
• YTD: 1.41%
• 6M: 1.41%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

TAXI

• 1D: 0.04%
• 1M: 0.65%
• YTD: 1.17%
• 6M: 1.28%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

FTMS vs. TAXI - Yearly Performance Comparison

	2026 (YTD)	2025
FTMS Franklin Short-Term Municipal Income ETF	1.41%	0.47%
TAXI Northern Trust Intermediate Tax-Exempt Bond ETF	1.17%	1.03%

Correlation

The correlation between FTMS and TAXI is 0.27, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (All Time) Calculated using the full available price history since Oct 27, 2025	0.27

Return for Risk

FTMS vs. TAXI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Franklin Short-Term Municipal Income ETF (FTMS) and Northern Trust Intermediate Tax-Exempt Bond ETF (TAXI). 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.

Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.

Drawdowns

FTMS vs. TAXI - Drawdown Comparison

The maximum FTMS drawdown since its inception was -1.24%, smaller than the maximum TAXI drawdown of -2.23%. Use the drawdown chart below to compare losses from any high point for FTMS and TAXI.

Drawdown Indicators

	FTMS	TAXI	Difference
Max Drawdown Largest peak-to-trough decline	-1.24%	-2.23%	+0.99%
Current Drawdown Current decline from peak	-0.20%	-0.57%	+0.37%
Average Drawdown Average peak-to-trough decline	-0.28%	-0.48%	+0.20%

Volatility

Volatility by Period

	FTMS	TAXI	Difference
Volatility (1Y) Calculated over the trailing 1-year period	1.73%	1.88%	-0.15%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	1.73%	1.88%	-0.15%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	1.73%	1.88%	-0.15%

FTMS vs. TAXI - Expense Ratio Comparison

FTMS has a 0.21% expense ratio, which is higher than TAXI's 0.05% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

FTMS vs. TAXI - Dividend Comparison

FTMS's dividend yield for the trailing twelve months is around 1.97%, less than TAXI's 2.00% yield.

Position	TTM	2025
FTMS Franklin Short-Term Municipal Income ETF	1.97%	0.57%
TAXI Northern Trust Intermediate Tax-Exempt Bond ETF	2.00%	0.85%

Frequently Asked Questions

Can I hold both FTMS and TAXI in my portfolio?

FTMS and TAXI have a correlation of 0.27, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, FTMS or TAXI?

On fees, TAXI is cheaper at 0.05% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, FTMS or TAXI?

TAXI is cheaper with a 0.05% expense ratio, compared with 0.21% for FTMS.

Which ETF pays a higher dividend yield, FTMS or TAXI?

TAXI has the higher dividend yield at 2.00%, compared with 1.97% for FTMS.

What is the main difference between FTMS and TAXI?

They also come from different issuers: Franklin Templeton and Northern Trust. Their fees differ too: 0.21% for FTMS and 0.05% for TAXI.