Franklin Templeton ETFs

Franklin Templeton

Founded in 1947, Franklin Templeton’s mission is to help clients achieve better outcomes through investment management expertise, wealth management and technology solutions.
Through its specialist investment managers, the company offers boutique specialization on a global scale, bringing extensive capabilities in equity, fixed income, multi-asset solutions and alternatives.

With offices in more than 30 countries and approximately 1,300 investment professionals, the California-based company has 75 years of investment experience and more than $ 1.4 trillion in assets under management as of June 30th 2023. Franklin Templeton, present for over 25 years in Italy, is one of the main foreign operators of asset management in the country. For more information visit the

Franklin Templeton ICAV, the firm’s global ETF platform, enables investors to pursue their desired outcomes through a range of active, smart beta and passive ETFs. Franklin Templeton ICAV has more than $ 15 billion in assets under management globally as of 31st May 2023 and is supported by the strength and resources of one of the world’s largest asset managers.
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Global strength. Boutique specialization

Franklin Templeton is focused on delivering better client outcomes. It’s why Franklin Templeton built a world-class investment firm that aims to offer the best of both worlds: global strength and boutique specialization. They bring together an unmatched collection of independent specialist investment managers to provide the clients deep expertise and specialization — within and across asset classes, investment styles, and geographies. They boast extensive multi-asset capabilities. And they offer hundreds of strategies across active, smart beta and passive approaches — in a full range of vehicles.
All this gives Franklin Templeton the ability to provide options best suited to the unique needs of every client, institutional or individual. Specialization and customization backed by the strength and resources of one of the world’s largest independent asset managers. Reliable, technology-driven, and tailored service. A commitment to doing what’s right for clients at all times.

Promotion for Directa Customers

From June, 27th 2022, ZERO fees trading on a pool of Franklin Templeton products:

The promotion is valid only on buy orders with minimum trade value of € 1,500
The list of products is available here

Active ETFs

Active ETFs are a type of ETF that has a management team that makes investment decisions based on research and insights to determine portfolio underlying positions and investments. They are actively managed to combine Franklin Templeton’s investment expertise and capabilities with the benefits of an ETF structure.

  • Potential for Better Investment Outcomes - Active ETFs have the potential to achieve better investment outcomes versus traditional index products, which are designed to track, not outperform, benchmark indices.
  • Access to Active Investment Expertise and Experience - Franklin Templeton is a trusted leader in active management with over 70 years of investing insights grounded in fundamental, bottom-up research. Franklin Templeton ICAV ETFs are supported by one of the industry’s largest global research platforms, operating in 35 countries with over 600 investment professionals.
  • Exchange Traded Fund Features (ETFs) - Similiar to traditional index and smart beta ETFs, active ETFs offer investors the ease of trading during market hours, competitive ETF pricing and transparency with access to portfolio holdings on a daily basis.

The first actively managed green bond ETF

Green Bond Franklin Templeton

Franklin Sustainable Euro Green Bond UCITS ETF
The fund's objective is to provide exposure to the European green bond market while simultaneously maximizing absolute returns. The fund invests at least 75% of its net asset value in bonds defined as green bonds and bonds aligned with climate sustainability (climate-aligned). The majority of the bonds in which the fund invests are denominated in European currencies.

  • A broader set of "green" opportunities - It invests in both bonds labeled as green and bonds aligned with climate, allowing managers to explore new opportunities beyond the pure green bond market.
  • Diverse sources of value-added - Managers actively employ sectoral rotation, security selection, duration and curve management to achieve extra returns and minimize risks.
  • Robust ESG research - The investment team utilizes a proprietary ESG model and conducts a rigorous bond selection process to determine if a security and issuer meet the standards of green-labeled bonds.

Franklin Sustainable Euro Green Bond UCITS ETF offers investors access to a diversified pool of bonds in the European green bond market, which is the world's largest and most advanced green bond market [1]. It serves as a sustainable investment solution for investors seeking a measurable environmental impact in their portfolios. The ETF benefits from extensive European research capabilities in bond investments and the expertise of the Franklin European Fixed Income team. ESG investment skills are provided through the integration of an ESG analyst into the investment team and are further enhanced by the research and additional resources of the Franklin Templeton team, consisting of global ESG specialists. The total expense ratio is 0.18% [2]

In a context of growing challenges related to climate change, the bond team at Franklin Templeton tells us about the importance of the concept of impact investing. Download the Environmental Impact Report 2022

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[1] Source: Bloomberg Barclays Bond Database. As of December 31, 2018
[2] The TER (Total Expense Ratio) corresponds to ongoing expenses, i.e., the fees that the fund charges investors to cover the Fund's management costs. Additional costs, including transaction fees, will also be incurred. These costs are borne by the Fund and will impact the overall performance of the Fund. Fund expenses will be incurred in multiple currencies, meaning payments may increase or decrease due to fluctuations in currency exchange rates. All expenses will be borne by the Fund and will impact the overall performance of the Fund. Please review all fund objectives and features before investing. As of May 1, 2023, the annual Total Expense Ratio ("TER") of the compartment reduces from 0.30% to 0.18% of NAV. This fee waiver, corresponding to 0.12%, will be valid until April 30, 2024.

There is no guarantee that any strategy will achieve its objective. ETFs are not riskless investments, and investors can lose money. An investment in Franklin Templeton ETFs entails risks which are described in the Fund's prospectus and Key Investor Information Document.

Emerging Markets ETFs

Mercati Emergenti Franklin Templeton

For many investors, emerging markets still only play an underrepresented role in their portfolio allocations. However, many of these economies are expected to contribute significantly to the world GDP (developing countries set to account for nearly 60% of world GDP by 2030, according to new estimates). While their competitive advantage often used to be based on cheap labour and access to raw materials, many have long shifted towards technological advancements and improved productivity as their source of growth.

When it comes to emerging markets allocations, however, there’s no one-size-fits-all. Disaggregating traditional, broad emerging markets exposures can help investors fine tune their strategic and tactical positioning according to their specific needs. That’s why Franklin Templeton has engineered a range of cost effective, broadly diversified single country ETFs that provide exposure to some of the most dynamic investment opportunities out there.

Key Markets in Focus

  • India – The Ambitious
    Over the course of a decade, India has lifted 271 million people out of poverty. This has helped stabilize its consumption share by well over 50%, a less volatile component of GDP growth compared to investments or net exports [1]. India is also one of the few major world economies where the working-age population is still growing, and according to projections, it is expected to increase by over a third by 2050. Progress is not only in quantity but also in quality; the country has emerged as a leader in the fight against climate change, fueling innovation and efficiency in the private sector as well as further state-led economic reforms [2].
  • Brasil - The Classic
    Brazil is traditionally considered a country with a relatively volatile currency and a strong correlation to commodity markets. This dependence is also a source of strength; Brazil provides almost a fifth of the global iron ore, ranking second after Australia. It is among the top 10 exporting nations of oil and in the top five for soft commodities [3]. Another driver is, of course, its size; the local working-age population is approximately 125 million people, and the country constitutes 50% of South America's GDP.
  • Cina - The Giant
    China is not only the most populous country, or the third-largest in terms of land area; China is also an economic giant, contributing approximately 18% to the global GDP [4]. Despite experiencing phases of high volatility, Chinese stocks have consistently outperformed global emerging markets in the long run. China is also undergoing a long-term transformation that positions the country as a potential leader in technology and other high-value products. For investors, it may make sense to consider the country as a separate allocation rather than within the context of emerging markets.
  • South Korea – The Innovator
    South Korea controls very few natural resources, but it controls something else: its strength in innovation. Its contribution to GDP is just under 5%, but in relative terms, Koreans invest almost double the OECD average in research and development, surpassing many European peers [5]. Consequently, the Korean stock market is heavily oriented towards technology companies, constituting about 50% of the index. Many of these companies are market leaders in high-growth and specialized sectors, such as semiconductors.
  • Taiwan – The Challenger
    With a territory equivalent to 0.4% of that of the United States, and a population equal to 1.7% of that of China, the island-state seems to thrive in its role as a challenger to global superpowers. Taiwan dominates the global semiconductor trade, holding almost two-thirds of the market [6], and establishes itself as a key logistical hub. Its role is crucial in global supply chains, not only as a producer but also as an operator of container ships.

Learn More
[1] UN, Forbes
[3] Statista; NS Energy Business Definition: Soft commodities, or agricultural commodities, are generally defined as those cultivated and/or harvested, as opposed to hard commodities, which come from mining or excavation. Coffee, for example, is a soft commodity, while gold is a hard commodity
[4] World Bank -
[5] Boston Consulting Group and Semiconductor Industry Association, 2020, p.7
[6] TrendForce, 2021,

The value of shares in the Fund and income received from it can go down as well as up and investors may not get back the full amount invested. Performance may also be affected by currency fluctuations. Currency fluctuations may affect the value of overseas investments. There is no guarantee that the Fund will meet its objective. Other significant risks include, but are not limited to: counterparty risk, currency risk, derivative risk, Emerging Markets risk, index risk, secondary market trading risk. For details on all risks applicable to funds, please refer to the "Risk Considerations" section of the fund in the current prospectus.

Smart Beta ETFs

Smart Beta ETFs are one of the fastest growing investment options available to investors. Smart beta is an index that has been designed to achieve a specific outcome, is an evolved way of creating an index, using rules to target companies that demonstrate specific “factors”, or drivers of performance, in order to achieve a specific objective. It targets a variety of factors, combining them in a strategic way, which may lead to stronger returns with less risk over time.

While many smart beta strategies utilize the same four factors (Quality, Value, Momentum and Low Volatility), many employ standard, widely accepted approaches to measuring these factor exposures. Franklin Templeton soughts to develop custom factor measures which they believe could provide a more comprehensive evaluation of a stock's exposure to each factor.

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Smart beta refers to a methodology of index construction that seeks to achieve better risk-adjusted returns compared to traditional market capitalization weighted benchmark indexes. There is no guarantee that any strategy will achieve its objective. Smart Beta ETFs are not riskless investments, and investors can lose money. For additional risk disclosures, please see the prospectus.

Thematic ETFs

Unique and comprehensive strategies that aim to capture opportunities arising from the most influential themes in the contemporary world. In collaboration with Solactive, a global index provider, Franklin Templeton has created portfolios that replicate diversified indices of companies aligned with each theme. Clients can effectively diversify their core exposures and build thematic satellite allocations with less conventional exposures.

  • Franklin Future of Food UCITS ETF
    Franklin Future of Food UCITS ETF aims to provide exposure to companies that are involved in sustainable practices in the food industry globally. The ETF aims to replicate as closely as possible the performance of the Solactive Sustainable Food Index, regardless of the performance of the latter, while trying to minimize as much as possible the deviation between the performance of the ETF and that of the Index. The Index consists of global stocks issued by developed market companies and is designed to measure the equity performance of those companies related to the food industry using efficient technologies, production and supply practices and/or demonstrate innovation with the aim of creating a sustainable food ecosystem.

  • Franklin Future of Health and Wellness UCITS ETF
    Franklin Future of Health and Wellness UCITS ETF intends to provide exposure to committed companies in the provision of sustainable products and services related to health and well-being globally. The ETF aims to replicate as closely as possible the performance of Solactive Sustainable Health and Wellness Index, regardless of the performance of the latter, while searching to minimise as much as possible the deviation between the performance of the ETF and that of the Index. The Index consists of global stocks issued by developed market companies and is designed to measure the equity performance of those companies that use technology and demonstrate innovation within the healthcare sector, as well as those companies that enable access to care, health or well-being for a wide range of consumers, including elderly.

  • Franklin Metaverse UCITS ETF
    Franklin Metaverse UCITS ETF intends to track the performance of the Index, which is composed of from listed stocks selected from the Solactive GBS Global Markets All Cap Index. The fund provides exposure to equities of globally listed companies operating in the metaverse. It aims to replicate the performance of the Solactive Global Metaverse Innovation Net Total Return index, seeking to minimize tracking error as much as possible.
    - Access to companies revolutionizing our digital interaction in this new virtual world.
    - A thematic technology portfolio tracking a diversified index of companies representing key players in this emerging and rapidly growing segment.
    - A forward-looking technology strategy that incorporates sustainability, while excluding companies deemed harmful to the United Nations Global Compact Principles.

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This material is intended to be of general interest only and does not constitute legal or tax advice nor is it an offer for shares or invitation to apply for shares or units of any of Franklin Templeton Investments’ fund ranges. Nothing in this material should be construed as investment advice. Investments entail risks. The value of investments and any income received from them can go down as well as up, and investors may not get back the full amount invested. Past performance is not an indicator, nor a guarantee of future performance.Reliance upon information in this material is at the sole discretion of the reader. Please read the prospectus and KIID carefully before you invest. Risk details and important legal information.

Advertising Message for promotional purpose - This announcement does not constitute an offer to sell or a investment solicitation. Please read carefully the characteristics of the financial instruments on offer and its associated risks, which are also present in the information provided by Directa ("Preliminary information", Section C - Information on financial instruments). ETFs, ETCs and ETNs (ETPs) and Certificates are complex financial instruments, with a significant risk of loss of the invested capital and whose price may include implicit costs. Directa therefore recommends to read the product offer documentation and the KID/KIID document, which describes the operating methods, costs and risks to which you are exposed by making the investment. The term "leverage" is used to describe investment strategies aimed at multiplying potential profits and losses. Leveraged investments may be made with the aim of obtaining possible higher returns, however leverage not only amplifies gains but also any losses. The investor is also exposed to the risk of early termination of the investment and of total loss of the invested capital or even more than it. The issuer pays Directa a fee upon execution, classifiable as an inducement pursuant to the Consob Intermediaries Regulation: for this reason, a conflict of interest may occur.