Franklin Templeton has launched a systematic active equity exchange-traded fund (ETF) to provide long-term capital growth through a diversified US equity portfolio.
Franklin Core US Enhanced Equity UCITS ETF mirrors the investment approach of the existing Franklin Core US Enhanced Equity Fund and will begin trading on the London Stock Exchange on 28 January.
The fund utilises a quantitative, multi-factor model to ensure a low tracking error, also integrating proprietary alpha signals from Franklin Templeton’s investment managers.
Lisa Wang, head of EMEA investment strategy at Franklin Templeton Investment Solutions, said: “The Franklin Core US Enhanced Equity UCITS ETF is designed to be ‘core, but better,’ benchmark-aware, diversified and risk-controlled. Our process combines systematic factor signals with a conviction overlay and a proprietary risk model to help keep unintended exposures in check and tracking error tightly managed.”
The ETF is categorised as Article 8 under the EU’s Sustainable Finance Disclosure Regulation, which means the management of the fund accounts for select environmental and social characteristics.
This launch adds to Franklin Templeton’s Core Enhanced fund range, which was first introduced in October 2025. The Core Enhanced Equity funds are sector, industry and factor neutral.
Andrew Ashton, head of UK at Franklin Templeton, said: “This launch is particularly relevant for UK investors as approaches to portfolio construction continue to evolve. After several years in which passive exposures have led the way, investors are increasingly reassessing where active management can play a more meaningful role, particularly within core US equity allocations.”
Franklin Core US Enhanced Equity UCITS ETF will be managed by Brett Risser, Jacqueline Hurley Kenney and Adrian Chan, the firm’s head of quantitative equity portfolio management, head of solutions research and head of quantitative investments respectively.