Franklin LibertySharesTM range gives investors access to Smart Beta ETFs
Four exchange traded funds issued by Franklin Templeton have been tradable on Xetra and Börse Frankfurt since Thursday. The new ETFs allow European investors to participate in the performance of Franklin LibertyQ indices for the first time.
The composition of these indices is based on a weighting of four factors: quality, valuation, momentum and volatility. The underlying smart beta strategies represent an investment alternative to conventional indices weighted by market capitalisation.
The primary listing of Franklin LibertyQ ETFs further expands our smart beta offering by adding multi-factor strategies. As there is currently very keen investor interest in Europe in these two types of strategy, the funds are an ideal supplement to our Xetra product range,” commented Dr Martin Reck, Managing Director Cash Market at Deutsche Börse.
Our strategic goal, three years in the making, has been to build a world class global ETF platform. Following successful launches in the US and Canada, we are very excited to bring our Franklin LibertyShares™ ETF platform to Europe.” said Patrick O’Connor, head of Global ETFs. “Our first European offerings aim to help investors achieve specific investment outcomes such as strong risk-adjusted returns, lower volatility and downside protection.
The range includes two multi-factor equity funds which have a specific focus on quality stocks:
- The Franklin LibertyQ Global Equity SRI UCITS ETF invests in stocks globally that are considered to be environmentally and socially responsible. It tracks the performance of the LibertyQ Global Equity SRI Index3 the constituents of which are selected from the MSCI AC World SRI Index3 using a multi-factor selection process with a focus on quality.
- The Franklin LibertyQ U.S. Equity UCITS ETF invests in large and mid-capitalisation stocks in the U.S. and tracks the performance of the LibertyQ U.S. Large Cap Equity Index3 the constituents of which are selected from the Russell 1000® Index3 using a multi-factor selection process with a focus on quality.
And two income focused funds which invest in stocks demonstrating high and persistent dividend income:
- The Franklin LibertyQ Global Dividend UCITS ETF invests in high quality stocks globally. It tracks the performance of the LibertyQ Global Dividend Index3 the constituents of which are selected from the MSCI AC World ex-REITS Index3 using a dividend persistence and yield screen followed by a quality screen.
- The Franklin LibertyQ European Dividend UCITS ETF invests in high quality stocks in developed countries in Europe. It tracks the performance of the LibertyQ European Dividend Index3 the constituents of which are selected from the MSCI Europe IMI ex REITS Index3 using a dividend persistence and yield screen followed by a quality screen.
The product offering in Deutsche Börse’s XTF segment currently comprises a total of 1,164 exchange traded funds. This selection, together with an average monthly trading volume of around €12 billion, makes Xetra Europe’s leading trading venue for ETFs.
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