FTMS vs. TAXS

Last updated Jun 6, 2026

FTMS (Franklin Short-Term Municipal Income ETF) and TAXS (Northern Trust Short-Term Tax-Exempt Bond ETF) are both Municipal Bonds funds. FTMS is actively managed, while TAXS is passively managed. At a 0.43 correlation, their price movements are largely independent. FTMS charges 0.21%/yr vs 0.05%/yr for TAXS.

Performance

FTMS vs. TAXS - 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 Short-Term Tax-Exempt Bond ETF (TAXS). 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 TAXS's 0.95% return.

FTMS

• 1D: 0.05%
• 1M: 0.54%
• YTD: 1.41%
• 6M: 1.62%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

TAXS

• 1D: -0.04%
• 1M: 0.39%
• YTD: 0.95%
• 6M: 1.33%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

FTMS vs. TAXS - Yearly Performance Comparison

	2026 (YTD)	2025
FTMS Franklin Short-Term Municipal Income ETF	1.41%	0.37%
TAXS Northern Trust Short-Term Tax-Exempt Bond ETF	0.95%	0.94%

Correlation

The correlation between FTMS and TAXS is 0.43, 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 28, 2025	0.43

Return for Risk

FTMS vs. TAXS - 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 Short-Term Tax-Exempt Bond ETF (TAXS). 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.

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

Sharpe Ratios by Period

	FTMS	TAXS	Difference
Sharpe Ratio (All Time) Calculated using the full available price history	1.69	2.78	-1.09

Drawdowns

FTMS vs. TAXS - Drawdown Comparison

The maximum FTMS drawdown since its inception was -1.24%, which is greater than TAXS's maximum drawdown of -0.84%. Use the drawdown chart below to compare losses from any high point for FTMS and TAXS.

Drawdown Indicators

	FTMS	TAXS	Difference
Max Drawdown Largest peak-to-trough decline	-1.24%	-0.84%	-0.40%
Current Drawdown Current decline from peak	-0.01%	-0.07%	+0.06%
Average Drawdown Average peak-to-trough decline	-0.30%	-0.23%	-0.07%

Volatility

Volatility by Period

	FTMS	TAXS	Difference
Volatility (1Y) Calculated over the trailing 1-year period	1.77%	1.00%	+0.77%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	1.77%	1.00%	+0.77%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	1.77%	1.00%	+0.77%

FTMS vs. TAXS - Expense Ratio Comparison

FTMS has a 0.21% expense ratio, which is higher than TAXS'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. TAXS - Dividend Comparison

FTMS's dividend yield for the trailing twelve months is around 1.97%, more than TAXS's 1.82% yield.

Position	TTM	2025
FTMS Franklin Short-Term Municipal Income ETF	1.97%	0.57%
TAXS Northern Trust Short-Term Tax-Exempt Bond ETF	1.82%	0.74%

Frequently Asked Questions

Can I hold both FTMS and TAXS in my portfolio?

FTMS and TAXS have a correlation of 0.43, 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 TAXS?

On fees, TAXS 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 TAXS?

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

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

FTMS has the higher dividend yield at 1.97%, compared with 1.82% for TAXS.

What is the main difference between FTMS and TAXS?

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