Franklin Templeton launches a new active ETF on US equities

The product, already listed on Deutsche Börse Xetra since 27 January, expands the range of systematically actively managed instruments offered by the company to European investors.

The ETF complements the FTIF Franklin Core U.S. Enhanced Equity Fund, launched in October 2025, applying the same investment strategy. The objective is to provide long-term capital growth through a diversified portfolio of US equities, while maintaining a low tracking error relative to the benchmark index.

The Core Enhanced Strategy: Between Passive and Active

The ETF employs an active quantitative strategy designed to bridge the gap between passive and traditional active management. The process is based on a proprietary multi-factor model that assigns a weighted score to factors such as quality, value and sentiment, supplemented with alpha signals from Franklin Templeton’s specialised teams.

The main operational feature is the low expected tracking error, which under normal market conditions is between 1% and 2% relative to the benchmark. This approach aims to deliver controlled and consistent outperformance, positioning the product as a core element of a portfolio.

Lisa Wang, Head of EMEA Investment Strategy at Franklin Templeton Investment Solutions, said: ‘The Franklin Core US Enhanced Equity UCITS ETF is designed to be “core, but better”: benchmark-aware, diversified and with a controlled risk profile. Our process combines systematic factor signals with an overlay based on our convictions and a proprietary risk model to help keep unwanted exposures in check and tracking error carefully managed.’

The launch strengthens Franklin Templeton’s US equity offering, which now comprises seven ETFs.

This ETF is part of the company’s broader range of active products, which boasts over 75 years of investment management experience and a global research platform with over 600 professionals.

The ETF is registered for distribution in several European countries, including Italy, Germany, France, Spain and the United Kingdom, and is also listed on the London Stock Exchange as of 28 January.

The launch of the Franklin Core US Enhanced Equity UCITS ETF responds to market demand for actively managed “core” instruments, offering investors a new vehicle to expose the core of their portfolio to US equities through a disciplined and risk-controlled process.