Franklin Templeton Launches New Active ETF, 'XDAT' | ETF Trends

On Thursday, Franklin Templeton announced the expansion of its thematic active ETF lineup with the addition of Franklin Exponential Data ETF (XDAT). XDAT seeks capital appreciation by investing in companies focused on or expected to benefit from the use of large data sets and/or the growth of data, including the creation, collection, cleaning, analyzing, storage, securing, transport, and/or sale of data. This includes, but is not limited to, cloud computing, data analysis, new security techniques, optical fiber, 5G, and datacenter and tower infrastructure.

“We believe the coronavirus pandemic has driven a long-term, structural acceleration of data transformation, improving the quality of businesses,” said Patrick O’Connor, global head of ETFs for Franklin Templeton. “As data continues to become increasingly important in our economy, the launch of XDAT showcases our continued efforts to remain nimble and adapt to the trends and needs of our clients in an evolving marketplace.”

XDAT is listed on the Cboe BZX Exchange, Inc. (CBOE) and will be actively managed by seasoned portfolio managers Matthew Moberg, CPA, and Joyce Lin, CFA, within Franklin Equity Group. Both are located near Silicon Valley and have a long history of investing in the craft of innovation.

Matt Moberg, senior portfolio manager with Franklin Equity Group, added, “In our view, the rapid adoption of technological solutions during the pandemic is just the beginning. As we come to terms with how to live in a post-pandemic world, data is becoming essential to running a business, and those who manage it well have a competitive advantage, especially in the age of socially distancing.”

Building Off Thematics

Franklin Templeton’s thematic innovation ETFs invest in companies at the forefront of transformational technology. Other thematic ETFs include the Franklin Disruptive Commerce ETF (BUYZ), which invests in companies benefitting from or facilitating advancements in emerging areas of the e-commerce space that enable more convenient, customized, secure, and time-efficient transactions for both consumers and businesses.

There’s also the Franklin Genomic Advancements ETF (HELX), which invests in companies benefitting from or facilitating advancements of new genomic-based research techniques and technologies designed to extend and enhance the quality of human and other life, driven by the advent of cost-effective and rapid gene sequencing. 

Lastly, the Franklin Intelligent Machines ETF (IQM) invests in companies benefitting from or facilitating advancements of machine learning technologies in areas like robotics, driverless vehicles, and algorithmic data analysis.

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