Franklin Putnam active ETF: the Focused US Research UCITS ETF launches on the LSE

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Article created by the editorial staff of ETFWorld.co.uk

Harry Reeves, Head of UK Wholesale Franklin Templeton

Listing on the London Stock Exchange and other markets

The listing process took place in two stages. On 14 October, the ETF was admitted to trading on Xetra. On 15 October, it was listed on the London Stock Exchange and on Borsa Italiana, in the ETFplus segment.

In London, two quotation lines are available, in dollars and sterling respectively.

Fee structure

The prospectus provides for a maximum TER of 0.39 per cent per annum of the net asset value. Until 30 September 2028, Franklin Templeton is applying a reduction of 0.08 per cent, bringing the effective cost to the investor down to 0.31 per cent per annum. The fee waiver expires on 1 October 2028; from that date, unless otherwise specified, the TER may return to up to 0.39%.

The strategy

The ETF selects the most compelling stocks within Putnam’s broader US Research strategy. According to the issuer, this strategy has outperformed the S&P 500 index in 7 of the last 8 years, in markets driven by both growth and value stocks. This figure relates to the strategy and not to the ETF, which is newly established.

The investment process is based on fundamental research. The fund managers collaborate with sector-specialist analysts to identify individual investment ideas, which are then combined into a concentrated portfolio. A dedicated risk management team, led by Matt LaPlant, CFA, is responsible for mitigating any portfolio bias towards specific factors or investment styles.

The management team

The ETF is managed by five professionals:

Kate Lakin

Matt LaPlant, CFA

Jackie Cavanaugh

Robert Gray

Will Rives, CFA

According to the company, the team has an average of 22 years’ experience in the investment sector.

The Putnam Research range in Europe

The new ETF joins two mutual funds in the Franklin Templeton Global Funds (FTGF) range that apply the same research approach as Putnam. The recently launched FTGF Putnam Global Research Fund combines the US Research strategy with Putnam’s research on non-US markets in a global portfolio. The ETF, on the other hand, offers a portfolio more focused solely on US equity ideas.

Source: Franklin Templeton.

In the United States, the same strategy has been available in ETF format since last month. According to Franklin Templeton’s website, the Putnam Focused Equity Fund was reorganised into the Putnam Focused U.S. Research ETF (ticker PFRX) following the close of trading on 25 September 2026.

Matthew Harrison, Head of EMEA and Americas (ex-US), commented: “This launch further strengthens our active ETF platform and highlights the depth of our expertise in US equities. As our fourth active US equity ETF and thirteenth US equity UCITS ETF overall, it reflects our long-term commitment to offering investors differentiated active solutions across a broad range of investment vehicles.”

“The introduction of Putnam’s established US Research strategy in ETF format is a clear example of how we are combining Franklin Templeton’s investment expertise, global scale and distribution strength. Backed by a global ETF platform worth $84 billion, we are well positioned to offer investors a broader range of our established investment strategies.”Michele Quinto, Country Head Italy at Franklin Templeton, added: “The listing on Borsa Italiana makes a high-conviction US equity strategy available to Italian investors too, combining Putnam’s fundamental research with the efficiency, transparency and flexibility of the ETF vehicle. It is a further step in our commitment to bringing innovative, high-quality active solutions to the Italian market.”

Harry Reeves, Head of UK Wholesale commented: “Many UK investors are beginning to turn to active ETFs to access flexible and cost-efficient investment products. With US equities continuing to play a central role in investor portfolios, we believe there is a compelling opportunity for strategies that look beyond index exposure and focus on identifying individual companies with strong long-term potential.

“The launch of the Franklin Putnam Focused US Research UCITS ETF gives UK investors access to Putnam’s established fundamental research capabilities through a concentrated, high-conviction portfolio. It further strengthens our investment offering in the UK, giving clients greater choice in how they access our investment capabilities across asset classes and investment vehicles.”

Kate Lakin, Portfolio Manager at Putnam Investments, said: “The ETF draws on the in-depth sector expertise of our research team, placing stock selection at the heart of the investment process. By focusing on our best ideas, we aim to generate excess returns, whilst using disciplined risk management to limit exposure to factors or styles.”

Franklin Templeton’s ETF platform

Franklin Templeton’s global ETF platform comprises both index-tracking and actively managed funds. According to the company, as at September 2026, it managed approximately $84 billion globally.

Conclusions

With the Franklin Putnam Focused US Research UCITS ETF, Franklin Templeton brings the concentrated version of Putnam’s US Research strategy to the UCITS ETF format. The fund is tradable on the London Stock Exchange, Borsa Italiana and Xetra. For investors, key considerations include the portfolio, which is limited to 30–45 securities, the S&P 500 benchmark and an effective TER of 0.31 per cent, valid until 30 September 2028.

Source: ETFWorld