At a glance
FLUD charges 0.15% a year, below the 0.17% average of the 7 funds most like it (the 4th cheapest of 8). It has $531.7M in assets, the 8th largest of that group; it paid 4.08% of its price in distributions over the past 12 months, monthly. Over the past year it returned +3.8% with distributions reinvested, the best of those 8 funds; over three years it returned +5.0% a year. At its worst it fell 1.3% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 6 months after the low. Its ten largest positions make up 5.6% of the fund, out of 413 in all.
The short version
Franklin Ultra Short Bond ETF (FLUD) is an actively managed Franklin Templeton fund. It holds high-quality, short-term US dollar bonds and cash-like investments, aiming for income while protecting capital. It keeps its average duration (a gauge of interest-rate sensitivity) at one year or less and concentrates in bonds from banks and other financial companies. Its 0.15% expense ratio is slightly below the 0.17% average of similar funds.
Price history
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FLUD +3.8% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| FLUD official prospectus, to Dec 31, 2025 | — | +5.12% | — | +3.37% | — | +3.22% |
| Bloomberg U.S. Aggregate Index index, same period | — | +7.30% | — | -0.36% | — | -0.22% |
| ICE Bof A U.S. 3-Month Treasury Bill Index index, same period | — | +4.18% | — | +3.17% | — | +2.91% |
| FLUD price data to Oct 27, 2026 | +2.9% | +3.8% | +5.0% | +3.9% | — | +3.4% |
- Over the year to Oct 27, 2026, FLUD returned +3.8%, 1st of 8 among similar funds.
- Its 5-year annualized return was +3.9%.
- Its worst full calendar year was 2022 (+0.1%); its best was 2023 (+5.9%).
- The deepest fall in its price history was 1.7% (Aug 24, 2021 to Jun 14, 2022), recovered by Jan 18, 2023.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +2.9% | — |
| 2025 | +5.3% | +5.12% |
| 2024 | +5.4% | +5.67% |
| 2023 | +5.9% | +5.92% |
| 2022 | +0.1% | +0.14% |
| 2021 | — | +0.19% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 0.8% over that stretch · deepest drop along the way 1.3% |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.7300 | |
| 2025 | $1.1200 | -8.9% |
| 2024 | $1.2300 | +6.0% |
| 2023 | $1.1600 | +251.5% |
| 2022 | $0.3300 |
What's inside
As of Jun 30, 2026, the fund held 413 securities; the ten largest made up 5.6% of assets, and 26.23% sat in cash and money-market holdings.
| Holding | Weight | |
|---|---|---|
| UNITED STATES OF AMERICA - BUREAU OF THE PUBLIC DEBT Bonds and notes | 0.88% | |
| UNITED STATES OF AMERICA - BUREAU OF THE PUBLIC DEBT Bonds and notes | 0.83% | |
| BNP PARIBAS SA Bonds and notes | 0.51% | |
| AERCAP IRELAND CAPITAL DAC / AERCAP GLOBAL AVIATION TRUST Bonds and notes | 0.51% | |
| NATWEST GROUP PLC Bonds and notes | 0.49% | |
| SOCIETE GENERALE SA Bonds and notes | 0.49% | |
| T-MOBILE USA INC Bonds and notes | 0.48% | |
| ING GROEP NV Bonds and notes | 0.47% | |
| CAIXABANK SA Bonds and notes | 0.47% | |
| AT&T INC Bonds and notes | 0.46% | |
| MACQUARIE BANK LTD Bonds and notes | 0.45% | |
| PNC BANK NA Bonds and notes | 0.45% | |
| CREDIT AGRICOLE SA Bonds and notes | 0.45% | |
| BARCLAYS PLC Bonds and notes | 0.45% | |
| HONEYWELL AEROSPACE INC Bonds and notes | 0.44% |
By country
United States 40.58%Canada 6.34%United Kingdom 4.58%France 4.48%Japan 4.11%By issuer
Companies 72.17%US Treasury 1.71%The bonds mature in 1.8 years on average (weighted by size), with an average coupon of 4.55%.
Source: N-PORT holdings report as of Jun 30, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Jun 30, 2026, investors added a net $298.5M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +0.38%, +0.35%, +0.31%.
How it works
FLUD does not track an index. Its managers choose the holdings. At least 80% of net assets go into bonds and bond-like investments. The fund targets an average duration of one year or less. Duration estimates how much a bond's price moves when interest rates change, so a short duration means small price swings. Holdings are mostly investment grade, meaning rated BBB- or better by S&P or Baa3 or better by Moody's. A large share sits in cash, commercial paper, certificates of deposit, repurchase agreements and money market funds. Even so, FLUD is not a money market fund and does not aim for a stable $1.00 share price.
The managers combine a "top-down" view of the economy with "bottom-up" research on sectors and issuers. They may also use quantitative models. The fund concentrates in financial industries and may buy dollar-denominated foreign bonds, including emerging-market debt. Some holdings pay variable rates that reset over time. Portfolio turnover was 34%.
As of June 30, 2026, the fund held 519 positions from 413 issuers, and the top 10 made up just 5.6% of assets. Cash was 26.23%. The bonds' average maturity was 1.8 years and their average coupon was 4.55%. The largest positions were two US Treasury notes maturing in 2028, followed by bonds from BNP Paribas, AerCap and NatWest.
What it really costs
- FLUD charges 0.15% a year, versus an average of 0.17% for the similar funds below (4th of 8, cheapest first).
- Using the prospectus's standard example, $10,000 invested would cost about $15 in the first year and $191 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| FLUD | $15 | $48 | $85 | $191 |
Structure and tax notes
- Bond prices move opposite to interest rates; the longer the maturities it holds, the more its price reacts to rate changes.
In a retirement portfolio
It aims to preserve capital with very short-term, investment-grade bonds, and its price has barely moved even in bad bond years.
FLUD could hold money a retiree expects to spend within a year or two. It launched in July 2020, so it has no record in the 2008 or 2020 crashes. In the 2022 bear market it fell 1.3% between January 3 and June 14, then recovered by December 21, 2022. Its deepest drop was 1.7%, from August 2021 to June 2022, and it took about seven months to recover. Even its worst calendar year, 2022, ended with a 0.14% gain. Selling shares in a bad year has cost little so far. The trailing 12-month yield was 4.08% as of October 27, 2026, paid monthly. That income falls when rates fall, and the focus on financial companies adds sector risk. Costs come to $15 in the first year on $10,000. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Savers parking money they expect to spend within a year or two who can accept small price swings in exchange for monthly income.
- Investors wanting investment-grade, US dollar bonds with a duration of one year or less, which limits losses when interest rates rise.
- Fee-aware investors: the 0.15% expense ratio is below the 0.17% peer average, about $15 in the first year on $10,000.
Look elsewhere if
- Anyone needing a stable $1 share price or FDIC insurance. FLUD is not a money market fund, and its price moves.
- Investors wary of bank risk. The fund concentrates in financials, and BNP Paribas, NatWest, Société Générale and Barclays are among its largest holdings.
- Investors who want the lowest fee or a large fund. ICSH charges 0.08%, VUSB 0.10%, and FLUD is the smallest of eight similar funds.
Close alternatives
Matched by bond funds with the closest average maturity and issuer mix (N-PORT).
| Fund | Avg. maturity | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| FLUD this fund | 1.8 yrs | 0.15% | $531.7M | +3.8% | +5.0% |
| JPST JPMorgan Ultra-Short Income ETF | 2 yrs | 0.18% | $41.13B | +3.1% | +4.8% |
| ICSH iShares Ultra Short-Term Bond Active ETF | 1.8 yrs | 0.08% | $8.14B | +3.5% | +4.9% |
| BKUI BNY Mellon Ultra Short Income ETF | 1.6 yrs | 0.12% | $574.7M | +3.5% | +4.9% |
| ULST SPDR SSgA Ultra Short Term Bond ETF | 1.3 yrs | 0.2% | $532.7M | +3.1% | +4.7% |
| VUSB Vanguard Ultra-Short Bond ETF | 2.8 yrs | 0.1% | $8.94B | +3.5% | +5.1% |
| YEAR AB Ultra Short Income ETF | 1.2 yrs | 0.25% | $1.54B | +3.0% | +4.7% |
| RAVI FlexShares Ultra-Short Income Fund | 3.4 yrs | 0.25% | $1.49B | +3.7% | +4.9% |
Questions investors ask
Does FLUD pay monthly dividends?
Yes. FLUD pays distributions monthly, funded by the interest on its bonds and cash holdings. Over the 12 months to October 27, 2026, it paid $1.02 per share, a trailing yield of 4.08%. The amount isn't fixed. The prospectus warns that payouts may fall when interest rates drop, when a bond it holds defaults, or when the fund sells a bond at a loss.
Is FLUD a money market fund?
No. The prospectus says FLUD is not a money market fund and does not try to keep a stable $1.00 share price. It holds a lot of cash and money market securities (26.23% cash as of June 30, 2026), but also bonds with an average maturity of 1.8 years. Its share price moves, and its worst quarter was a 0.8% loss in early 2022. It is not FDIC insured.
FLUD vs JPST: what's the difference?
Both are actively managed ultra-short bond ETFs, and their holdings are 94% similar. FLUD charges 0.15% a year versus 0.18% for JPMorgan's JPST. JPST is far larger, with about $41.1 billion in net assets as of August 31, 2026, versus FLUD's $531.7 million as of June 30, 2026. FLUD's one-year price return was 3.8% as of October 27, 2026. JPST's was 3.5% as of October 30, 2026.
Can you lose money in FLUD?
Yes, though its losses have been small so far. FLUD's deepest drop was 1.7%, from August 24, 2021, to June 14, 2022, when interest rates rose sharply. It fully recovered by January 18, 2023. The main risks are rising rates, a bond issuer failing to pay, and its concentration in banks and other financial companies, which could hurt it during a financial-sector slump.
How has FLUD performed compared with Treasury bills?
It has been modestly ahead. As of December 31, 2025, FLUD returned 5.12% over one year, 3.37% a year over five years, and 3.22% a year since launch. The ICE BofA US 3-Month Treasury Bill Index returned 4.18%, 3.17% and 2.91% over the same periods. That extra return pays investors for taking on more credit and interest-rate risk than T-bills carry.