Two issuers brought actively managed municipal bond ETFs to market on Monday. AllianceBernstein (AB) and Franklin Templeton rolled out funds targeting different slices of the muni space, converting their mutual funds into ETF wrappers as muni mutual fund conversions accelerate across the industry.
AB launched two actively managed ETFs on the New York Stock Exchange. This added to the firm’s growing suite of fixed income ETF offerings, according to a Monday press release.
The AB New York Intermediate Municipal ETF (NYM) and AB Core Bond ETF (CORB) began trading with Jane Street serving as the lead market maker for both funds, according to the release.
The launches add to AB’s municipal platform. Its platform has grown from $35 billion in AUM in 2016 to over $83 billion as of August 31, according to the release. October 2025 saw 15 mutual fund conversions among a record 137 total ETF launches, according to FactSet.
Both funds target different segments of the fixed income market, according to the prospectuses. NYM seeks to provide safety of principal and maximize total return after accounting for federal, state and local taxes for New York residents, according to the prospectus. The fund carries a 0.27% management fee.
CORB seeks to provide safety of principal and a moderate to high rate of current income. It has a 0.28% management fee, according to the prospectus. The fund invests at least 80% of its net assets in fixed income securities. It maintains an average portfolio quality rating minimum of A.
AB now has over $5.5 billion in active fixed income ETFs. The firm’s total active ETF AUM has crossed the $10 billion mark, according to the release.
Franklin Templeton Conversions
Franklin Templeton announced plans in May 2025 to convert 10 Putnam muni bond mutual funds into ETFs. The conversions are expected between the fourth quarter of 2025 and the first quarter of 2026, according to a press release.
Five state-specific muni income ETFs began trading around November 10, 2025, on NYSE Arca, according to Franklin Templeton. These include the Franklin Massachusetts Municipal Income ETF (FTMA), the Franklin New Jersey Municipal Income ETF (FTNJ), the Franklin Minnesota Municipal Income ETF (FTMN), the Franklin Ohio Municipal Income ETF (FTOH) and the Franklin Pennsylvania Municipal Income ETF (FTPA).
Each ETF carries a 0.35% management fee and is converted from its predecessor Putnam mutual fund, according to the prospectus.
The remaining conversions include funds focused on California, New York, short-term municipal income, national tax-exempt income, and tax-free high yield strategies, according to the release.
The conversions provide the same muni bond strategies with the structural features of an ETF, according to the release. Franklin Templeton’s U.S. ETF platform includes over 70 ETFs with approximately $50 billion in AUM as of October 23, according to the firm.
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