Franklin Templeton has launched first passive ETFs within its Franklin LibertyShares range, with an initial suite of four market-cap weighted, emerging markets country ETFs covering Brazil, China, Korea and India.
Franklin FTSE Brazil Ucits ETF, Franklin FTSE China Ucits ETF and Franklin FTSE Korea Ucits ETF will list on the Deutsche Börse (DB) on 5 June, thereafter on the London Stock Exchange (LSE) and Borsa Italiana on 7 June and then on the SIX Swiss Exchange on 19 June. The firm also plans to list the Franklin FTSE India Ucits ETF on DB, LSE, Borsa Italiana and SIX shortly after.
The funds' total expense ratios are the lowest in Europe (TER is on average 70% lower than other emerging markets country Ucits ETFs) for their respective categories, thus empowering investors with the ability and options to realise the full potential of beta-driven solutions. Total Expense Ratio (TER) for Brazil, China and India ETF fund is only 0.19% and for Korea ETF fund is only 0.09%, which is lowest in Europe.
Caroline Baron, head of ETF Sales EMEA, Franklin Templeton said: "We have introduced four new emerging markets country passive ETFs at the lowest fees, to European investors. It was logical for us to start with Brazil, China, India and Korea, since these four high-growth countries represent the biggest country allocations within client portfolios and broad emerging markets indices. It is important to note that our new passive ETFs will be physically replicated which is rare in the emerging markets country ETF category. This is due to strong client feedback noting their preference over synthetically replicated ETFs."
The new passive emerging markets ETFs are market cap-weighted and benchmarked to country indices from FTSE Russell, leveraging the global index provider's capabilities and expertise across developed and emerging markets. FTSE Russell is one of the largest index providers in the marketplace globally, with approximately $16trn in assets currently benchmarked to its indices.