Muni Bond ETFs Launch as Conversions Continue

Core Insights - Two issuers, AllianceBernstein and Franklin Templeton, launched actively managed municipal bond ETFs, converting mutual funds into ETF wrappers as the trend accelerates in the industry [1][5] - AllianceBernstein's municipal platform has grown significantly, with assets under management (AUM) increasing from $35 billion in 2016 to over $83 billion as of August 31 [2][4] - Franklin Templeton plans to convert 10 Putnam muni bond mutual funds into ETFs, expected between Q4 2025 and Q1 2026 [5] AllianceBernstein (AB) ETFs - AB launched the New York Intermediate Municipal ETF (NYM) and the Core Bond ETF (CORB), with Jane Street as the lead market maker [2][3] - NYM aims to maximize total return for New York residents while ensuring safety of principal, with a management fee of 0.27% [3] - CORB seeks a moderate to high rate of current income, investing at least 80% of its net assets in fixed income securities, with a management fee of 0.28% [4] - AB's active fixed income ETFs now exceed $5.5 billion, and total active ETF AUM has surpassed $10 billion [4] Franklin Templeton ETFs - Franklin Templeton introduced five state-specific muni income ETFs, including those for Massachusetts, New Jersey, Minnesota, Ohio, and Pennsylvania, with a management fee of 0.35% [6][7] - The conversions maintain the same muni bond strategies but offer the structural features of ETFs [8] - Franklin Templeton's U.S. ETF platform includes over 70 ETFs with approximately $50 billion in AUM as of October 23 [8]