FTMU vs. TAXT

Last updated Jun 6, 2026

FTMU (Franklin Municipal Income ETF) and TAXT (Northern Trust Tax-Exempt Bond ETF) are both Municipal Bonds funds. FTMU is actively managed, while TAXT is passively managed. A 0.69 correlation means they provide meaningful diversification when combined. FTMU charges 0.30%/yr vs 0.05%/yr for TAXT.

Performance

FTMU vs. TAXT - Performance Comparison

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

Returns By Period

In the year-to-date period, FTMU achieves a 2.50% return, which is significantly higher than TAXT's 1.44% return.

FTMU

• 1D: -0.26%
• 1M: 0.57%
• YTD: 2.50%
• 6M: 2.93%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

TAXT

• 1D: -0.16%
• 1M: 0.41%
• YTD: 1.44%
• 6M: 1.70%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

FTMU vs. TAXT - Yearly Performance Comparison

	2026 (YTD)	2025
FTMU Franklin Municipal Income ETF	2.50%	-0.02%
TAXT Northern Trust Tax-Exempt Bond ETF	1.44%	0.45%

Correlation

The correlation between FTMU and TAXT is 0.69, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (All Time) Calculated using the full available price history since Oct 28, 2025	0.69

Return for Risk

FTMU vs. TAXT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Franklin Municipal Income ETF (FTMU) and Northern Trust Tax-Exempt Bond ETF (TAXT). 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

	FTMU	TAXT	Difference
Sharpe Ratio (All Time) Calculated using the full available price history	1.15	2.74	-1.59

Drawdowns

FTMU vs. TAXT - Drawdown Comparison

The maximum FTMU drawdown since its inception was -3.07%, which is greater than TAXT's maximum drawdown of -2.49%. Use the drawdown chart below to compare losses from any high point for FTMU and TAXT.

Drawdown Indicators

	FTMU	TAXT	Difference
Max Drawdown Largest peak-to-trough decline	-3.07%	-2.49%	-0.58%
Current Drawdown Current decline from peak	-0.26%	-0.63%	+0.37%
Average Drawdown Average peak-to-trough decline	-0.68%	-0.47%	-0.21%

Volatility

Volatility by Period

	FTMU	TAXT	Difference
Volatility (1Y) Calculated over the trailing 1-year period	3.62%	2.53%	+1.09%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.62%	2.53%	+1.09%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.62%	2.53%	+1.09%

FTMU vs. TAXT - Expense Ratio Comparison

FTMU has a 0.30% expense ratio, which is higher than TAXT's 0.05% expense ratio.

Dividends

FTMU vs. TAXT - Dividend Comparison

FTMU's dividend yield for the trailing twelve months is around 2.39%, less than TAXT's 2.55% yield.

Position	TTM	2025
FTMU Franklin Municipal Income ETF	2.39%	0.75%
TAXT Northern Trust Tax-Exempt Bond ETF	2.55%	1.23%

Frequently Asked Questions

Can I hold both FTMU and TAXT in my portfolio?

FTMU and TAXT have a correlation of 0.69, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, FTMU or TAXT?

On fees, TAXT 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, FTMU or TAXT?

TAXT is cheaper with a 0.05% expense ratio, compared with 0.30% for FTMU.

Which ETF pays a higher dividend yield, FTMU or TAXT?

TAXT has the higher dividend yield at 2.55%, compared with 2.39% for FTMU.

What is the main difference between FTMU and TAXT?

They also come from different issuers: Franklin Templeton and Northern Trust. Their fees differ too: 0.30% for FTMU and 0.05% for TAXT.