As more investors enter the bond market, the space becomes more challenging as yield gets harder to come by, leaving investors clamoring for pathways to gains in the fixed income market. As such, Franklin Templeton announced the expansion of its active fixed income ETF lineup with the addition of Franklin Liberty U.S. Core Bond ETF (FLCB), which seeks to provide investors with diversified core fixed income exposure. FLCB is an active ETF that seeks total return through bottom-up fundamental bond selection and top-down sector allocation and is listed on the NYSE Arca.

“We believe active management is critical for achieving long-term returns and managing investment risk, particularly in multi-sector investment grade fixed income,” said Patrick O’Connor, global head of ETFs for Franklin Templeton. “We are thrilled to launch FLCB, which can serve as a core, building block allocation in an investor’s portfolio.”

Franklin Templeton’s fixed income and quantitative research teams review issuers and assess risks from multiple perspectives, which results in a truly holistic viewpoint on each potential investment. FLCB will be managed by David Yuen, SVP, head of quantitative and multi-sector strategies, Amy Cooper, VP, portfolio manager, Patrick Klein, SVP, portfolio manager, multi-sector strategies, and Tina Chou, VP, portfolio manager, with Franklin Templeton Fixed Income Group.

“The investment team has chosen to manage this fund with a low tracking error to the Bloomberg Barclays U.S. Aggregate Bond Index but has the flexibility to derive alpha through active sector allocation and security selection, providing a truly active core fixed income ETF,” added O’Connor.

Franklin LibertyShares active fixed income ETF strategies:

TickerFund Name
FLCBFranklin Liberty U.S. Core Bond ETF
FLCOFranklin Liberty Investment Grade Corporate ETF
FTSDFranklin Liberty Short Duration U.S. Government ETF
FLMBFranklin Liberty Municipal Bond ETF
FLMIFranklin Liberty Intermediate Municipal Opportunities ETF
FLHYFranklin Liberty High Yield Corporate ETF
FLIAFranklin Liberty International Aggregate Bond ETF
FLBLFranklin Liberty Senior Loan ETF

Franklin LibertyShares, the firm’s global ETF platform, enables investors to pursue their desired outcomes through a range of active, smart beta and passive ETFs. LibertyShares has more than $4 billion in assets under management globally as of August 31, 2019 and is supported by the strength and resources of one of the world’s largest asset managers. For more information, please visit franklintempleton.com/etfs.

Visit Franklin LibertyShares’ Capital Markets Corner for insights on ETF investing and follow Franklin LibertyShares on Twitter: @libertyshares.

For more market trends, visit ETF Trends.

Subscribe to our free daily newsletters!
Please enter your email address to subscribe to ETF Trends' newsletters featuring latest news and educational events.