FTNJ vs. ZTAX

Last updated Jun 4, 2026

FTNJ (Franklin New Jersey Municipal Income ETF) and ZTAX (X-Square Municipal Income Tax Free ETF) are both Municipal Bonds funds. FTNJ is passively managed, while ZTAX is actively managed. At a 0.05 correlation, their price movements are largely independent. FTNJ charges 0.35%/yr vs 1.14%/yr for ZTAX.

Performance

FTNJ vs. ZTAX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Franklin New Jersey Municipal Income ETF (FTNJ) and X-Square Municipal Income Tax Free ETF (ZTAX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FTNJ achieves a 1.80% return, which is significantly higher than ZTAX's 0.20% return.

FTNJ

• 1D: -0.06%
• 1M: 0.63%
• YTD: 1.80%
• 6M: 2.23%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

ZTAX

• 1D: 0.00%
• 1M: -1.80%
• YTD: 0.20%
• 6M: 5.42%
• 1Y: 6.21%
• 3Y*: 4.56%
• 5Y*: —
• 10Y*: —

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

FTNJ vs. ZTAX - Yearly Performance Comparison

	2026 (YTD)	2025
FTNJ Franklin New Jersey Municipal Income ETF	1.80%	0.34%
ZTAX X-Square Municipal Income Tax Free ETF	0.20%	-5.81%

Correlation

The correlation between FTNJ and ZTAX is 0.05, 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 (All Time) Calculated using the full available price history since Nov 11, 2025	0.05

Return for Risk

FTNJ vs. ZTAX — Risk / Return Rank

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

ZTAX

ZTAX Risk / Return Rank: 14
ZTAX Sharpe Ratio Rank: 12
ZTAX Sortino Ratio Rank: 13
ZTAX Omega Ratio Rank: 15
ZTAX Calmar Ratio Rank: 17
ZTAX Martin Ratio Rank: 16

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.

FTNJ vs. ZTAX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Franklin New Jersey Municipal Income ETF (FTNJ) and X-Square Municipal Income Tax Free ETF (ZTAX). 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

	FTNJ	ZTAX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	—	0.24	—
Sharpe Ratio (All Time) Calculated using the full available price history	1.17	0.20	+0.97

Drawdowns

FTNJ vs. ZTAX - Drawdown Comparison

The maximum FTNJ drawdown since its inception was -2.72%, smaller than the maximum ZTAX drawdown of -15.33%. Use the drawdown chart below to compare losses from any high point for FTNJ and ZTAX.

Drawdown Indicators

	FTNJ	ZTAX	Difference
Max Drawdown Largest peak-to-trough decline	-2.72%	-15.33%	+12.61%
Max Drawdown (1Y) Largest decline over 1 year	—	-10.47%	—
Max Drawdown (3Y) Largest decline over 3 years	—	-15.33%	—
Current Drawdown Current decline from peak	-0.20%	-6.58%	+6.38%
Average Drawdown Average peak-to-trough decline	-0.61%	-6.81%	+6.20%
Ulcer Index Depth and duration of drawdowns from previous peaks	—	4.22%	—

Volatility

Volatility by Period

	FTNJ	ZTAX	Difference
Volatility (1M) Calculated over the trailing 1-month period	—	4.07%	—
Volatility (6M) Calculated over the trailing 6-month period	—	21.96%	—
Volatility (1Y) Calculated over the trailing 1-year period	3.35%	26.32%	-22.97%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.35%	26.84%	-23.49%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.35%	26.84%	-23.49%

FTNJ vs. ZTAX - Expense Ratio Comparison

FTNJ has a 0.35% expense ratio, which is lower than ZTAX's 1.14% expense ratio.

Dividends

FTNJ vs. ZTAX - Dividend Comparison

FTNJ's dividend yield for the trailing twelve months is around 1.98%, less than ZTAX's 4.56% yield.

Position	TTM	2025	2024	2023
FTNJ Franklin New Jersey Municipal Income ETF	1.98%	0.54%	0.00%	0.00%
ZTAX X-Square Municipal Income Tax Free ETF	4.56%	4.58%	4.55%	2.14%

Frequently Asked Questions

Can I hold both FTNJ and ZTAX in my portfolio?

FTNJ and ZTAX have a correlation of 0.05, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, FTNJ or ZTAX?

On fees, FTNJ is cheaper at 0.35% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, FTNJ or ZTAX?

FTNJ is cheaper with a 0.35% expense ratio, compared with 1.14% for ZTAX.

Which ETF pays a higher dividend yield, FTNJ or ZTAX?

ZTAX has the higher dividend yield at 4.56%, compared with 1.98% for FTNJ.

What is the main difference between FTNJ and ZTAX?

They also come from different issuers: Franklin Templeton and X-Square. Their fees differ too: 0.35% for FTNJ and 1.14% for ZTAX.