Franklin Templeton has launched a further active US equity ETF for UK investors.
The Franklin Core US Enhanced Equity UCITS ETF, which will list on the London Stock Exchange tomorrow morning (28 January), will use a quantitative process to invest in equities, while keeping the expected level of tracking error between 1-2% in normal market conditions.
The strategy will be managed by a team including head of quantitative equity portfolio management Brett Risser, head of solutions research Jacqueline Hurley Kenney and Adrian Chan, head of quantitative investments.
The fund is the seventh US equity UCITS ETF in Franklin Templeton’s stable. It is classified as Article 8 under the Sustainable Finance Disclosure Regulation.
See also: ‘The cost cat among the pigeons’: Hargreaves Lansdown cuts platform fees
Franklin Templeton’s ‘core enhanced’ approach employs a quantitative selection process, which assigns a weighted score across quality, value, sentiment and alternative factors.
Andrew Ashton, head of UK, said: “This launch is particularly relevant for UK investors as approaches to portfolio construction continue to evolve. After several years in which passive exposures have led the way, investors are increasingly reassessing where active management can play a more meaningful role, particularly within core US equity allocations.
“Building on the momentum of our ETF range, this strategy is designed to serve as a dependable core allocation, targeting stable relative returns with disciplined active risk management. It reinforces our focus on providing UK clients with greater choice by delivering specialist active capabilities in a format aligned with evolving portfolio construction needs.”
Lisa Wang, head of EMEA investment strategy, Franklin Templeton Investment Solutions, added: “The Franklin Core US Enhanced Equity UCITS ETF is designed to be ‘core, but better’ benchmark-aware, diversified and risk-controlled.
“Our process combines systematic factor signals with a conviction overlay and a proprietary risk model to help keep unintended exposures in check and tracking error tightly managed.”
