May 9, 2026, 12:20 PMseekingalpha.comFLMI
FLMI: Not Too Much Signs Of Stress, But Inflation Coming Back
Security terms
Franklin Dynamic Municipal Bond ETF (FLMI) faces headwinds from rising yields and inflation expectations, especially due to the Iran War's impact on energy prices. FLMI's 7-year duration heightens sensitivity to upward yield curve shifts, making it less attractive versus cash or ultra-short duration fixed income. The ETF's 0.3% expense ratio is good compared to active alternatives, but significantly more than passive, though there is historical outperformance on FLMI.
