SAN MATEO, Calif., Oct. 11, 2018 — Franklin Templeton Investments today introduced three new passive ETFs to its Franklin LibertyShares® lineup—Franklin FTSE Saudi Arabia ETF (FLSA), Franklin FTSE South Africa ETF (FLZA) and Franklin FTSE Latin America ETF (FLLA)—expanding its suite of single country and regional market cap-weighted ETFs to now include 23 funds.
“Many investors are looking to go beyond broad-based emerging markets or developed markets portfolios to capture the differences in performance that individual countries or regions can experience at different times based on a variety of market events,” said Patrick O’Connor, head of global ETFs. “We offer investors access to a large proportion of this universe in order to make these tactical allocations using passive ETFs.”
The new passive ETFs are listed on the NYSE Arca:
- Franklin FTSE Saudi Arabia ETF (FLSA) seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the FTSE Saudi Arabia Capped Index, a market capitalization-weighted index representing the performance of Saudi Arabian large- and mid-cap stocks.
- Franklin FTSE South Africa ETF (FLZA*) seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the FTSE/JSE South Africa Capped Index, a market capitalization-weighted index representing the performance of South African large- and mid-cap stocks.
- Franklin FTSE Latin America ETF (FLLA) seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the FTSE Latin America Capped Index, a market capitalization-weighted index representing the performance of Latin American large- and mid-cap stocks.
Dina Ting, vice president, head of Global Index Portfolio Management and senior portfolio manager, and Louis Hsu, vice president and portfolio manager, Global ETFs, manage the new ETFs. They also manage the firm’s existing suite of passive ETFs, which includes both developed markets (Australia, Canada, Europe, Europe Hedged, France, Germany, Switzerland, Hong Kong, Italy, Japan, Japan Hedged, United Kingdom and South Korea) and emerging markets (Brazil, China, Mexico, India, Russia, Taiwan and Asia ex Japan).
Franklin LibertyShares’ passive ETFs are market cap-weighted and benchmarked to country and regional 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 $16 trillion in assets currently benchmarked to its indexes.
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Franklin LibertyShares, Franklin Templeton’s global ETF platform, enables investors to build portfolios with precision by using its range of active, smart beta and passive ETFs. Franklin LibertyShares has more than $2 billion in assets under management globally as of September 30, 2018 and is supported by the strength and resources of one of the world’s largest asset managers. For more information, please visit https://www.libertyshares.com.
Important Information about the Funds
All investments involve risks, including possible loss of principal. Special risks are associated with foreign investing, including currency fluctuations, economic instability and political developments. Investments in developing markets involve heightened risks related to the same factors, in addition to those associated with these markets’ smaller size, lesser liquidity and lack of established legal, political, business and social frameworks to support securities markets. Investments in securities of Saudi Arabian, Latin American and South African issuers involve risks that are specific to Saudi Arabia, Latin America and South Africa, respectively, including certain legal, regulatory, political and economic risks. Because these funds invest their assets primarily in companies in a specific country or region, the funds may also experience greater volatility than funds that are more broadly diversified geographically. Non-diversified funds may invest in a relatively small number of issuers and, as a result, be subject to greater risk of loss with respect to its portfolio securities. These and other risk considerations are discussed in each fund’s prospectus.
ETFs trade like stocks, fluctuate in market value and may trade at prices above or below the ETF’s net asset value. Brokerage commissions and ETF expenses will reduce returns.
ETF shares may be bought or sold throughout the day at their market price, not their Net Asset Value (NAV), on the exchange on which they are listed. Shares of ETFs are tradable on secondary markets and may trade either at a premium or a discount to their NAV on the secondary market.
Investors should carefully consider a fund’s investment goals, risks, charges and expenses before investing. To obtain a summary prospectus and/or prospectus, which contains this and other information, talk to your financial advisor, call us at (800) DIAL BEN/342-5236 or visit libertyshares.com. Please carefully read a prospectus before you invest or send money.
All rights in the FTSE indices (the “Indices”) vest in FTSE International Limited (“FTSE”). “FTSE®” is a trade mark of the London Stock Exchange Group companies and is used by FTSE under license. The Franklin FTSE ETFs (the “ETFs”) have been developed solely by Franklin Templeton. The Index is calculated by FTSE or its agent. FTSE and its licensors are not connected to and do not sponsor, advise, recommend, endorse or promote the ETFs and do not accept any liability whatsoever to any person arising out of (a) the use of, reliance on or any error in the Indices or (b) investment in or operation of the ETFs. FTSE makes no claim, prediction, warranty or representation either as to the results to be obtained from the ETFs or the suitability of the Index for the purpose to which it is being put by Franklin Templeton.
*Franklin FTSE South Africa ETF (FLZA) is not in any way sponsored, endorsed, sold or promoted by FTSE International Limited (“JSE”), the London Stock Exchange Group companies (“LSEG”) or JSE Limited (“JSE”) (collectively “the Licensor Parties”) and none of the Licensor Parties make any warranty or representation whatsoever, expressly or implied, either as to the results to be obtained from the use of the FTSE/JSE South Africa RIC Capped Index (the “Index”) and/or the figure at which the said Index stands at any particular time on any particular day or otherwise. The Index is compiled and calculated by FTSE in conjunction with JSE. None of the Licensor Parties shall be liable (whether in negligence or otherwise) to any person for any error in the Index and none of the Licensor Parties shall be under any obligation to advise any person of any error therein.
“FTSE®” is a trade mark of LSEG, “JSE” is a trade mark of the JSE, and both are used by FTSE under license.
About Franklin Templeton Investments
The funds’ principal underwriter is Franklin Templeton Distributors, Inc., a wholly-owned subsidiary of Franklin Resources, Inc. [NYSE:BEN], a global investment management organization operating as Franklin Templeton Investments. Franklin Templeton Investments provides global and domestic investment management to retail, institutional and sovereign wealth clients in over 170 countries. Through specialized teams, the company has expertise across all asset classes – including equity, fixed income, alternative and custom solutions. The company’s more than 650 investment professionals are supported by its integrated, worldwide team of risk management professionals and global trading desk network. With offices in over 30 countries, the California-based company has 70 years of investment experience and over $717 billion in assets under management as of September 30, 2018. For more information, please visit franklintempleton.com.
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