Franklin Templeton Investments Launches New Line of Strategic Beta Products

Jun 6 2016 | 10:49pm ET

Franklin Templeton Investments has introduced a new line of business, named LibertyShares, and a related family of strategic beta ETFs.

The new suite of strategic beta ETFs use the trade name LibertyQ, according to a statement. Strategic beta, or sometimes referred to as “smart” beta, products seek to enhance returns or minimize risk relative to a traditional market-capitalization-weighted benchmark.

The new suite includes three multi-factor core portfolio funds and one fund that focuses on stocks with high and persistent dividend income. Franklin Templeton's strategic beta ETFs use proprietary indices that have employed a research-driven approach in customizing their factor weightings of quality, value, momentum and low volatility to pursue lower volatility and higher risk-adjusted returns over the long term versus relevant cap-weighted benchmarks.

"Many of our clients have embraced the ETF wrapper for its benefits, including liquidity, tax efficiency and transparency, and now they are looking for more than what a traditional market cap-weighted index can offer," said Patrick O'Connor, head of global ETFs for Franklin Templeton Investments. "LibertyQ offers investors our fundamental and quantitative expertise that drives our ability to seek specific outcomes with reduced risk, packaged within the ETF wrapper."

Details on the new ETFs are as follows: 

  • Franklin LibertyQ Global Equity ETF (NYSE: FLQG) tracks the LibertyQ Global Equity Index, which offers global equity exposure and seeks to achieve higher risk-adjusted returns than the MSCI ACWI Index.
  • Franklin LibertyQ Emerging Markets ETF (NYSE: FLQE) tracks the LibertyQ Emerging Markets Index, which offers broad emerging markets exposure and seeks to achieve higher risk-adjusted returns than the MSCI Emerging Markets Index.
  • Franklin LibertyQ International Equity Hedged ETF (NYSE: FLQH) tracks the LibertyQ International Equity Hedged Index, which offers international developed markets exposure and seeks to achieve higher risk-adjusted returns than the MSCI EAFE Index.
  • Franklin LibertyQ Global Dividend ETF (NYSE: FLQD) tracks the LibertyQ Global Dividend Index, which offers global exposure to high-quality, dividend-oriented stocks to help meet investors' needs for income and total return.

Based in California, Franklin Templeton Investments is one of the largest money managers in the world, with offices in 35 countries and more than $747 billion in assets under management as of April 30, 2016.


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