TORONTO, June 5, 2017 /CNW/ - Franklin Templeton Investments Canada announced that two Franklin LibertyShares strategic beta ETFs, Franklin LibertyQT U.S. Equity Index ETF (FLUS) and Franklin LibertyQT International Equity Index ETF (FLDM), will begin trading on the Toronto Stock Exchange (TSX) at market open today.
"Joining our initial offering of two actively managed ETFs that began trading on May 30, our Franklin LibertyQT strategic beta ETFs will provide Canadian investors with U.S. and international equity options for their portfolios," said Duane Green, president and CEO of Franklin Templeton Investments Canada. "Our dedicated team of specialized ETF experts applies research-driven insights to traditional index investing to pursue specific investment outcomes via these new strategic beta ETF offerings."
Franklin LibertyQT strategic beta ETFs are constructed with their respective indices grounded in both fundamental and quantitative analysis. Each LibertyQT ETF seeks to replicate a systematic, rules-based index that applies four custom factor weightings: quality (50 per cent), value (30 per cent), momentum (10 per cent) and low volatility (10 per cent).
"Our multi-factor approach to strategic beta ETFs has the potential to increase returns and reduce risk over the long term relative to a market capitalization weighted approach, as different factors outperform at various stages of the market cycle," said Patrick O'Connor, head of Global ETFs for Franklin Templeton Investments. "Our expert quantitative team has identified four well-established factors, applying a custom mix with an emphasis on quality and value, which has the potential to help drive attractive returns, while seeking a degree of downside protection."
Managed by Dina Ting, VP and senior portfolio manager, Global ETFs, based in San Mateo, California, the two strategic beta ETFs are:
- Franklin LibertyQT U.S. Equity Index ETF (FLUS) seeks to replicate the performance of the LibertyQ U.S. Large Cap Equity Index, before fees and expenses. It invests primarily in equity securities of large- and mid-capitalization U.S. issuers.
- Franklin LibertyQT International Equity Index ETF (FLDM) seeks to replicate the performance of the LibertyQ International Equity Index, before fees and expenses. It invests primarily in equity securities of issuers located in developed markets, excluding the U.S. and Canada.
Franklin LibertyQT indices overweight two indicators of long-term performance: quality and value. With an emphasis on quality, each index seeks to identify securities that have potential for long-term performance and balance sheet strength. The indices also incorporate two additional technical factors: momentum and low volatility. Momentum is geared to identify investment trends, while low volatility may help provide a defensive measure against market downturns.
The Franklin LibertyShares suite of actively managed and strategic beta ETFs leverage the investment expertise, management insights and deep resources of Franklin Templeton Investments, a recognized global leader in asset management.
About Franklin Templeton Investments
Franklin Templeton Investments Corp. (known as Franklin Templeton Investments Canada) is a subsidiary of Franklin Resources, Inc. [NYSE:BEN]. Franklin Resources, Inc. is a global investment management organization operating as Franklin Templeton Investments, which provides global and domestic investment management to retail, institutional and sovereign wealth clients in over 170 countries. Through specialized teams, the company has expertise across all asset classes – including equity, fixed income, alternative and custom solutions. The company's more than 650 investment professionals are supported by its integrated, worldwide team of risk management professionals and global trading desk network. With offices in over 30 countries, the California-based company has 70 years of investment experience and approximately US$741 billion (C$1,011 billion) in assets under management as of April 30, 2017.
For more information, please visit LibertyShares.ca or franklintempleton.ca. Connect with Franklin Templeton on Twitter (@FTI_Canada) and read the Beyond Bulls & Bears blog featuring perspectives from Franklin Templeton investment professionals around the world.
Commissions, management fees and expenses may all be associated with investments in ETFs. Investors should carefully consider an ETF's investment objectives and strategies, risks, fees and expenses before investing. The prospectus and ETF facts contain this and other information. Please read the prospectus and ETF facts carefully before investing. ETFs trade like stocks, fluctuate in market value and may trade at prices above or below the ETF's net asset value. Brokerage commissions and ETF expenses will reduce returns. Performance of an ETF may vary significantly from the performance of an index, as a result of transaction costs, expenses and other factors. ETFs are not guaranteed, their values change frequently and past performance may not be repeated.
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SOURCE Franklin Templeton Investments Corp.
For further information: Media contact: Sarah Kingdon, Corporate Communications, Franklin Templeton Investments, 416.957.6191