The launches are in response to increased demand for active funds. One is a dividend fund.
Franklin Templeton introduced two new actively managed exchange-traded funds (ETFs), both of which seek to generate income.
The Franklin Dividend Growth ETF (NYSE: FRIZ) is an actively managed fund that invests in financially sound, high-conviction U.S. companies with the potential to generate consistent dividend increases.
It includes a diverse array of stocks of various market cap sizes and sectors with a focus on companies with resilient business models, good corporate governance, and sustainable competitive advantages.
“We are seeing increased advisor demand for high-quality, research-driven active strategies delivered through the ETF vehicle,” David Mann, head of ETF product and capital markets at Franklin Templeton, said. “FRIZ expands our product suite into the large blend category and gives clients another way to access our dividend expertise in a highly diversified portfolio.”
The ETF is managed by a team that includes Matt Quinlan, Amritha Kasturirangan, and Nayan Sheth – the same team that runs Franklin’s Rising Dividends mutual fund.
Franklin Multisector Income ETF
The asset manager also released the Franklin Multisector Income ETF (NASDAQ: MULT) last week. This fund is also actively managed, but it seeks income through global fixed income investments.
The fund includes a wide range of bond sectors, including corporate credit, government and agency securities, securitized debt, and emerging markets.
“MULT brings together the depth and specialization of our fixed income platform with a clear focus on outcomes,” Mike Salm, portfolio manager at Franklin Templeton Fixed Income, said. “In a market defined by crosscurrents, from policy uncertainty to credit dispersion, we believe a flexible and research-intensive strategy like this can help investors better navigate risks while uncovering overlooked sources of income.”
The ETF is managed by Franklin Templeton Fixed Income, which includes more than 160 investment professionals worldwide and $224 billion assets under management. The senior members of the team, Salm, Patrick Klein, and Albert Chan, lead the ETF.
“Advisors and investors are increasingly looking to active ETFs for tools that can adapt in real time to a changing market landscape,” Mann said. “MULT adds to our growing suite of actively managed strategies designed to meet that demand, offering diversified income potential with the transparency and efficiency of the ETF vehicle.”
Franklin Templeton now has more than 137 ETFs across active, passive, and smart beta strategies. The ETFs have over $47 billion in assets under management.
