Franklin Templeton lists new emerging markets distribution ETF on the London Stock Exchange: TER 0.11% and physically replicated

It is a passively managed ETF that tracks the FTSE Emerging Index NR, a broad, free-float-adjusted market capitalisation-weighted benchmark derived from the FTSE Global Equity Index Series, which covers 98% of global investable market capitalisation. The index captures large- and mid-cap companies from global emerging markets.

Low cost and clean structure

The Total Expense Ratio is 0.11%, a level that places the product among the most competitive in the diversified emerging markets ETF sector. The replication is physical: the fund holds all the securities in the index in proportions corresponding to their weighting in the benchmark. Sampling techniques are only used in cases where the direct purchase of a component is inefficient or impractical. The use of derivatives is limited to hedging and efficient portfolio management.

The stated objective is to minimise tracking error relative to the benchmark, regardless of market direction.

Distribution class and trading currency

The class listed today is an income distribution class, with the trading currency being the euro. The accumulation class (ISIN IE0004I037N4, ticker EMER), listed in October 2024, was already available on the London market. The addition of the Dis class completes the offering for investors who prefer to receive dividends periodically.

SFDR Article 6 Classification

The fund is classified as Article 6 under the Sustainable Finance Disclosure Regulation. It does not promote environmental or social characteristics and does not pursue a sustainable investment objective.

Market context: emerging markets in 2026

The launch of the product comes at a time of renewed interest in the asset class. The FTSE Emerging index rose by 25.1% in 2025 and continued to perform well in the early months of 2026. According to an analysis by Franklin Templeton, the index is trading at 15.7 times forward earnings, representing a 31% discount compared to developed markets.

A survey by the Association of Investment Companies conducted at the end of 2025 identified emerging markets as the preferred region for 38% of investment trust managers in terms of expected performance in 2026.

Franklin Templeton and the ETF platform

With this listing, Franklin Templeton continues to expand its UCITS range. The company, which managed over $1.7 trillion in total assets as at 31 January 2026, had exceeded $50 billion in ETF assets under management by the end of 2025.