Franklin Pennsylvania Municipal Income ETF (FTPA)

Overview

Franklin Pennsylvania Municipal Income ETF is an exchange-traded fund focused on providing high current income that is exempt from federal income tax as well as Pennsylvania state personal income tax. The primary aim of the fund is to preserve capital while delivering consistent income to investors. The ETF strategically invests a minimum of 80% of its net assets in investment-grade municipal bonds issued by the Commonwealth of Pennsylvania and its political subdivisions. The investment strategy emphasizes intermediate- to long-term maturities, maintaining an effective duration of approximately 7.79 years. Key sectors in which the fund primarily invests include health care (25.34%), education (19.69%), local government (16.25%), and transportation (12.20%). Notable holdings consist of Philadelphia PA Gas Works Revenue bonds along with various securities from school districts and hospital authorities. This ETF is managed by Franklin Templeton, known for its expertise in the active management of municipal bonds, and it was established through the reorganization of the Putnam Pennsylvania Tax Exempt Income Fund in November 2025, continuing a robust investment approach that dates back to 1989. As of now, the ETF has total net assets of around $80 million, offers monthly distributions, and boasts a 30-day SEC yield of about 3.96%. Additionally, it serves as a benchmark against the Bloomberg Municipal Bond Index while holding a solid Morningstar rating within the Muni Pennsylvania category, highlighting its focus on credit quality across AA, A, and BBB ratings.

Products and Services

• Municipal Bonds Investment:

  The ETF primarily invests in investment-grade municipal bonds. These bonds are issued by the Commonwealth of Pennsylvania and its political subdivisions, allowing investors to benefit from tax-exempt income while supporting local infrastructure and services.

• Sector Diversification:

  The fund targets various key sectors, including health care, education, local government, and transportation. This diversified approach helps reduce risk and provides exposure to multiple areas of the Pennsylvania economy.

• Capital Preservation:

  While focusing on generating income, the ETF prioritizes capital preservation, making it a suitable choice for conservative investors who value stability in their investments.

• Monthly Distributions:

  Investors benefit from regular income through monthly distributions, making it attractive for those seeking to generate consistent cash flow.

• Active Management by Franklin Templeton:

  The fund is managed by Franklin Templeton, a recognized leader in municipal bond management, leveraging their expertise and resources to strategically manage the ETF's portfolio for optimal performance.

• Performance Benchmarking:

  The ETF benchmarks against the Bloomberg Municipal Bond Index, providing insights into its performance relative to the broader municipal bond market, which assists investors in making informed decisions.

• Morningstar Rating:

  The ETF holds a Morningstar rating in the Muni Pennsylvania category, which emphasizes its commitment to credit quality and informs investors about its relative standing in the market.