Franklin Templeton’s head of ETF product and capital markets David Mann heard “a lot of good chatter” at Exchange 2023. Two main themes dominated the chatter: Franklin Templeton’s “active fixed income lineup,” and “where to get income.”
See more: Franklin Templeton Launches Multi-Asset Income ETF
Speaking with NYSE’s Judy Shaw about active fixed income, Mann first discussed municipal bond funds. He noted that while “mutual fund munis lost $140 billion” last year, “ETFs brought in $30 billion.”
“So, all of a sudden,” Mann said, investors are “getting more comfortable with getting ETF exposure in muni bonds.” Plus, active fixed income is then added into the mix, thanks to the ETF Rule. So now, investors realize that the operational efficiencies they’re “used to are now happening in ETFs.”
“We think those two trends are combining nicely to give active exposure within municipal bonds for ETFs,” Mann added.
With that in mind, Mann recommends investors consider two muni ETFs from Franklin Templeton. One is the Franklin Municipal Green Bond ETF (FLMB ). The other is the Franklin Dynamic Municipal Bond ETF (FLMI ). “Both have seen some nice flows inflows recently,” he said.
At the time of the interview, Mann said Franklin Templeton’s global fund lineup had $15 billion in assets.
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