On Thursday, Franklin Templeton expanded its active ETF lineup with the addition of its 10th fixed income ETF offering, the Franklin Liberty Ultra Short Bond ETF (FLUD).
FLUD aims to provide a high level of current income while seeking to maintain an average duration under one year and preserve capital. FLUD can also be used to pursue income while maintaining liquidity needs.
“As a multi-sector fund, concentrated in financials-related industries, FLUD provides investors with diversification in the ultra-short investment category and seeks a higher yield potential than traditional cash investments, with limited additional risks,” says Patrick O’Connor, global head of ETFs for Franklin Templeton.
“Franklin Templeton is once again delivering its time-tested expertise in active fixed income management through this very competitively priced, low-cost ETF. FLUD leverages our unique approach of blending top-down macroeconomic views, bottom-up fundamental research, and proprietary, quantitative analysis.”
FLUD, which is listed on the NYSE Arca, is managed by David Yuen, senior vice president, head of multi-sector and quantitative strategies, Shawn Lyons, CFA, vice president, portfolio manager, Johnson Ng, CFA, vice president, senior trader, portfolio manager, Tom Runkel, CFA, vice president, portfolio manager, and Kent Burns, CFA, senior vice president, portfolio manager—all with Franklin Templeton Fixed Income.
“FLUD invests in investment-grade short-maturity fixed-income securities issued by governments and agencies as well as corporate credit and securitized securities,” says Yuen. “Sector allocation and security selection will be the primary drivers in pursuing income.”
FLUD adds an ultra-short duration option to Franklin LibertyShares’ range of active fixed income ETFs that also includes:
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 $7.9 billion in assets under management globally as of June 30, 2020, including nearly $4.3 billion in active fixed-income ETFs, and is supported by the strength and resources of one of the world’s largest asset managers.
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