Franklin Templeton launches multi-factor EM Ucits ETF

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Franklin Templeton Investments has listed the Franklin LibertyQ Emerging Markets UCITS ETF on the Deutsche Börse (DB) and London Stock Exchange (LSE), upping its Franklin LibertySharesTM Smart Beta Ucits ETF suite to five products.

The smart beta ETF seeks to outperform the MSCI Emerging Markets Index with lower volatility by tracking the LibertyQ Emerging Markets Index, that blends four factors – quality, value, momentum and low volatility.

It targets high quality emerging market stocks, attractively valued using momentum to identify investment trends and avoid value traps and low volatility to provide a defensive measure against downturns.

Patrick O’Connor, head of Global ETFs, said: “We believe emerging markets offer some of the most compelling opportunities available in equity markets today and many investors are looking for a lower risk option of accessing the sector. A multi-factor screened approach can help to identify attractive opportunities within emerging markets, while providing diversification among investment factors, resulting in a potentially less volatile return profile.”

“We are very excited to announce the addition of a fifth ETF to our Franklin LibertySharesTM Smart Beta Ucits ETF range, the Franklin LibertyQ Emerging Markets UCITS ETF. We believe in giving our clients freedom of choice and options in their investment decisions, hence we called our range ‘Liberty’. We think this new strategy can be utilised as a strategic and long-term allocation for those investors looking for an alternative way of accessing emerging markets as part of their diversified portfolio,” Vivek Kudva, head of EMEA and India, Franklin Templeton Investments added.

Franklin Templeton Investments had $753bn in assets under management as at 30 September 2017.

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