Franklin Templeton has launched a US mega-cap ETF for UK and European investors.
The Franklin US Mega Cap 100 UCITS ETF is designed to provide investors with targeted exposure to the top 100 US mega-cap stocks which are the leading companies from the world’s largest equity market.
The new ETF will track the Solactive US Mega Cap 100 Select Index, which in turn tracks the performance of the 100 largest companies within the Solactive GBS United States 500 Index. The selection is based on total market capitalisation. Companies involved in controversial weapons are excluded.
By weighting components according to their free-float market capitalisation, the index aims to ensure broad market representation while maintaining diversification.
See also: Franklin Templeton launches ESG versions of S&P 500 and S&P World
Managed by Dina Ting, head of global index portfolio management, and Lorenzo Crosato, ETF portfolio manager, it will have a TER of 0.09%.
This offering is a further addition to the Franklin Templeton ETF range and brings the total number of its indexed ETFs to 28 and dedicated US Equity exposure ETFs to five.
The ETF will list on the Deutsche Börse Xetra (XETRA) on 8 May, and the London Stock Exchange (LSE), Euronext Paris and the Borsa Italiana on 9 May. It is registered in Austria, Denmark, Finland, France, Germany, Ireland (country of domicile), Italy, Luxembourg, Netherlands, Spain, Sweden and the UK.
Caroline Baron, head of ETF distribution, EMEA, at Franklin Templeton, said: “Looking back 30 years, the largest 100 securities in US equities have captured greater market upside than a broader index such as the S&P 500. This ETF can be utilised by investors as a nimble tool to dial up US equity market exposure or quickly implement a risk-on trade, offering a distinct risk-return profile.”
Matt Harrison, head of Americas (ex-US), Europe and UK, added: “Franklin Templeton is dedicated to building out its ETF range to provide investors with a diverse array of tools to achieve their investment goals. The launch of the Franklin US Mega Cap 100 UCITS ETF exemplifies this commitment. This new ETF not only offers attractive performance potential but also serves as a strategic tool for investors to overweight the largest growth names in the US market.”
Franklin Templeton’s global ETF platform has approximately $38bn in assets under management.
