The firm’s first passive products in Canada focus on specific countries and regions
Actively managed strategies have been Franklin Templeton’s bread and butter, but as low fees continue to be a priority among investors, it is expanding into another corner of Canada’s ETF space.
Franklin Templeton has bolstered its Franklin LibertyShares ETF offerings in Canada by launching its first suite of passive ETFs on the TSX. The new products are aimed at providing investors with region- or country-specific exposure at a low fee.
“With market-moving events like trade tensions and Brexit, investors and their advisors as well as institutional investors are looking to precisely act upon specific country and regional market views," said Duane Green, president and CEO, Franklin Templeton Investments Canada.
"These new passive ETFs provide Canadian investors with individual country and regional exposure options – including the first Japan ETF and Europe ETF that excludes the U.K. – at a very low cost," he added.
The firm’s passive ETF lineup includes:
- The Franklin FTSE Canada All Cap Index ETF (FLCD), which invests primarily in equity securities of Canadian issuers. It seeks to replicate the performance of the FTSE Canada All Cap Domestic Index and comes with a management fee of 5 bps.
- The Franklin FTSE U.S. Index ETF (FLAM), which is primarily invested in equity securities of mid- and large-capitalization U.S. issuers, seeking to replicate the performance of FTSE USA Index. Its management fee is 7 bps.
- The Franklin FTSE Japan Index ETF (FLJA) makes direct or indirect investments primarily in equity securities of mid- and large-capitalization Japanese issuers. Seeking to replicate the performance of FTSE Japan Index, the fund has a management fee of 9 bps.
- Franklin FTSE Europe ex U.K. Index ETF (FLUR) invests primarily in equity securities of mid- and large-capitalization issuers in developed markets in Europe excluding the United Kingdom. It aims to replicate the performance of FTSE Developed Europe ex U.K. Index. The management fee is 9 bps.
“Following the popularity of our competitively-priced passive ETFs listed in the U.S. on the NYSE, we are now offering similar passive ETFs in Canada on the TSX – with some of the lowest pricing across the board," said Patrick O'Connor, head of global ETFs, Franklin Templeton. "The addition of passive ETFs to our active and smart beta ETF suites provides Canadians with a broader array of investment options to help them construct portfolios designed to reach their desired outcomes."
The new passive ETFs, which are market cap-weighted and benchmarked to indices provided by FTSE Russell, will be managed by Dina Ting. Based in San Mateo, California, Ting is vice president, head of Global Index Portfolio Management and senior portfolio manager, who also manages Franklin Templeton’s smart beta ETFs.