Franklin Templeton is a known and established investment firm, having 75+ years of asset management experience. In Canada, the firm is deftly building an ETF product shelf that provides investors with foundational exposure to differing asset classes and investment themes. In this ETF Issuer article, we will look at the existing ETF product offerings of Franklin Templeton Canada, highlighting the investment solutions that are most prominent and how they can be of benefit to investors.

Franklin Templeton Background

Established in 1947, Franklin Templeton has grown to become one of the world’s largest asset managers with approximately $1.45 trillion (USD) in assets under management, as of September 30, 2023. Given the firm’s scale and reach, Franklin Templeton has expertise in active, factor-based, and passive investing; alongside extensive multi-asset capabilities that can address the unique needs of both individual and institutional investors.

Franklin Templeton’s ETF Offerings

Franklin Templeton Canada has grown their ETF offerings quickly, since launching their initial ETF mandates in 2017. Presently, the firm has 19 ETF offerings, which can be categorized under three investment styles – Passive ETFs, Smart Beta ETFs, and Active ETFs.

Passive ETFs 

Passive ETFs provide indexed exposure to a targeted country's or region's equity market at a low cost. Within Franklin Templeton’s product shelf, the following ETFs follow this investment approach:

• Franklin FTSE Japan Index ETF (Ticker: FLJA)
• Franklin International Equity Index ETF (Ticker: FLUR)
• Franklin FTSE U.S. Index ETF (Ticker: FLAM)
• Franklin FTSE Canada All Cap Index ETF (Ticker: FLCD)

Smart Beta ETFs 

Smart Beta refers to a methodology of index construction that seeks to achieve better risk-adjusted returns compared to traditional market capitalization-weighted benchmark indexes. Within Franklin Templeton’s product shelf, the following ETFs follow this investment approach:

• Franklin Emerging Markets Equity Index ETF (Ticker: FLEM)
• Franklin Global Dividend Quality Index ETF (Ticker: FLGD)
• Franklin International Multifactor Index ETF (Ticker: FLDM)
• Franklin U.S. Large Cap Multifactor Index ETF (Ticker: FLUS)

Active ETFs 

Active ETFs seek a specific investment objective through experienced manager views. Within Franklin Templeton’s product shelf, the following ETFs follow this investment approach:

• Franklin Innovation Fund (Ticker: FINO)
• Franklin Global Growth Fund (Ticker: FGGE)
• Franklin Bissett Ultra Short Bond Fund ETF (Ticker: FHIS)
• Franklin Bissett Core Plus Bond Fund ETF (Ticker: FLCP)
• Franklin Bissett Corporate Bond Fund ETF (Ticker: FLCI)
• Franklin Global Core Bond Fund ETF (Ticker: FLGA)
• Franklin Brandywine Global Sustainable Income Optimiser Fund ETF (Ticker: FBGO)
• Franklin ClearBridge Sustainable Global Infrastructure Income Fund (Ticker: FCII)
• Franklin ClearBridge Sustainable International Growth Fund (Ticker: FCSI)
• Franklin Bissett Short Duration Bond Fund ETF (Ticker: FLSD)
• Franklin Western Asset Core Plus Bond Fund ETF (Ticker: FWCP)

Franklin Templeton ETFs: Fund Size & Performance

Within Franklin Templeton’s ETF product shelf, the top five largest funds by AUM are as follows:

• Franklin Global Core Bond Fund ETF (Ticker: FLGA) | Net Assets: $334,917,168 | Annual 2023 Return: 5.80%
• Franklin FTSE U.S. Index ETF (Ticker: FLAM) | Net Assets: $256,435,752 | Annual 2023 Return: 23.26%
• Franklin International Equity Index ETF (Ticker: FLUR) | Net Assets: $223,107,703 | Annual 2023 Return: 14.69%
• Franklin FTSE Canada All Cap Index ETF (Ticker: FLCD) | Net Assets: $195,724,976 | Annual 2023 Return: 12.13%
• Franklin Bissett Ultra Short Bond Fund ETF (Ticker: FHIS) | Net Assets: $121,123,998 | Annual 2023 Return: 5.48%

Conclusion

Franklin Templeton’s current ETF product offerings provide investors with foundational equity and fixed income exposures, while also affording them the ability to choose from investment styles attuned to their investment preference (i.e. passive, smart beta, or active). For investors that are seeking ETF solutions capable of being core holdings for their portfolio Franklin Templeton’s line-up would be a starting point to consider.

Please note this article is for information purposes only and does not in any way constitute investment advice. It is essential that you seek advice from a registered financial professional prior to making any investment decision.