U.S. ETF providers have been setting their eyes on European investors as an untapped market for growth, with California-based Franklin Templeton among the latest to step across the Atlantic.
Franklin Templeton has launched a number of European-listed ETFs as part of a drive to defend its business against competitors like BlackRock and Vanguard, reports Chris Flood for Financial Times.
Fighting back against waning interest for actively managed mutual funds, Franklin Templeton has been rolling out smart beta or alternative index-based ETFs, with the latest starting trading in Germany and London.
“Our strategic goal, three years in the making, has been to build a world class global ETF platform. Following successful launches in the US and Canada, we are very excited to bring our Franklin LibertyShares™ ETF platform to Europe.” Patrick O’Connor, head of Global ETFs for Franklin Templeton, said in a note. “Our first European offerings aim to help investors achieve specific investment outcomes such as strong risk-adjusted returns, lower volatility and downside protection.”
The Franklin LibertyQ UCITS ETF range will help European investors access custom Franklin LIbertyQ indices, which screen components based on quality, value, momentum and volatility. The range includes two multi-factor equity funds which have a specific focus on quality stocks, including the The Franklin LibertyQ Global Equity SRI UCITS ETF and Franklin LibertyQ U.S. Equity UCITS ETF, along with two income focused funds which invest in stocks demonstrating high and persistent dividend income, including the Franklin LibertyQ Global Dividend UCITS ETF and Franklin LibertyQ European Dividend UCITS ETF. The new ETFs in Europe have been seeded with $15 million.
“Liberty for us means giving clients freedom of choice in their investment decisions, and as our client needs evolve, so do we. The introduction of the Franklin LibertyQ Shares range to European investors is a significant milestone for our business. We believe the addition of smart beta ETFs will complement our existing active management product ranges, and will offer our clients additional investment solutions and vehicles in which to construct their investment portfolio,” Vivek Kudva, managing director, EMEA and India, said in a note.
Franklin made its initial move into the U.S. ETF market in June 2016, gathering $750 million in assets across 11 strategies, and then moved into Canada in May with four ETFs that have gathered C$150 million, or $123 million.
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