Franklin Templeton has launched an actively managed US equity income exchange-traded fund (ETF) for European investors, listing tomorrow on the London Stock Exchange.
The Franklin US Income Equity Focus UCITS ETF will have a total expense ratio of 0.35% and is the firm's third active US equity ETF, taking its UCITS US equity ETF range to twelve.
Managed by Todd Brighton, Brendan Circle and Edward Perks, it targets income and capital growth through a portfolio of US large-cap equities and is designed to provide diversified exposure to the US market with lower volatility. The team also runs the Franklin Income strategy, an income-focused multi-asset fund launched in 1948.
According to Franklin Templeton, the portfolio can serve as a core holding in an investor’s equity sleeve or as a source of supplemental income for retirement.
"For more than 75 years, our active, research-driven approach has focused on delivering attractive income and growth potential across market cycles," Perks said. "The Franklin US Income Equity Focus UCITS ETF brings that philosophy to European investors through an actively managed strategy that seeks to generate income, participate in US equity market upside and help manage volatility over time."
The firm’s head of EMEA and Americas ex-US, Matthew Harrison, said the launch is a response to the growing interest from investors in active ETFs that “combine high-quality active management with the flexibility and transparency of the ETF wrapper”.