Franklin Templeton Plans to Convert 10 Putnam Municipal Bond Mutual Funds into ETFs

Franklin Templeton has revealed plans to convert 10 of its Putnam municipal bond mutual funds into exchange-traded funds (ETFs), a move that significantly broadens its municipal bond ETF offerings. This development follows Franklin Resources, Inc. (NYSE:BEN) acquisition of Putnam Investments in January 2024. The transition is slated to take place between the fourth quarter of 2025 and the first quarter of 2026.

Franklin Resources, Inc. (NYSE:BEN) is a global investment management firm that serves clients in more than 150 countries through its network of subsidiaries.

Patrick O’Connor, who leads Global ETFs at Franklin Resources, Inc. (NYSE:BEN), indicated that the decision to convert the funds into ETFs was aimed at addressing investor demand for high-quality municipal bond strategies in a more cost-effective, flexible, and transparent format. He noted that the firm’s ETF offerings are designed to provide a broad range of options for all types of investors. According to him, the planned additions demonstrate the company’s ongoing commitment to this goal and represent a significant step forward as active fixed-income strategies continue to evolve within the ETF landscape.

Franklin Resources, Inc. (NYSE:BEN) introduced its first ETF in 2014, aiming to offer investors access to its investment expertise through a low-cost and transparent structure. Since then, the firm has steadily grown its ETF offerings worldwide, now covering active, passive, and smart beta strategies. As of May 15, 2025, its U.S. ETF platform features more than 70 funds, managing roughly $32 billion in assets. The planned changes to its product lineup are expected to further solidify the company’s standing as a leading provider of diverse ETF options across all strategy types.

The firm also emphasized the ongoing importance of municipal bonds in investor portfolios, noting their appeal due to federally tax-exempt income, historically low default rates, and their role as effective diversifiers within fixed-income allocations. BEN is up by over 10% in 2025 so far.

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