Franklin Templeton Launches FTSE Japan ETF for European Investors

• At 9 basis points, the new passive ETF gives investors access to more than 500 Japanese companies across a diverse range of industries
• With $6 trillion in market capitalisation, Japanese equities can be used as a core building block within an investor’s portfolio

Franklin Templeton announces the launch of its new Franklin FTSE Japan UCITS ETF. This offering is the first Japan index tracking ETF in the Franklin Templeton ETF range and brings the total number of its indexed ETFs to 22.

The Franklin FTSE Japan UCITS ETF invests in large and mid-capitalisation stocks in Japan. It is passively managed and tracks the performance of the FTSE Japan Index – NR (Net Return), a market-capitalisation weighted index representing the performance of large and mid-cap companies in Japan aiming to capture 90%³ of the investable Japanese equity market universe.

Caroline Baron, Head of ETF Distribution, EMEA, Franklin Templeton, said: “We are pleased to offer this new, single country index tracking Japan equity UCITS ETF to European investors. Investors can now gain diversified exposure to more than 500 Japanese companies across a wide range of industries.”

“The Japanese equity market is the second largest equity market in Asia-Pacific and the largest developed market in the region. Following decades of deflationary tendencies, Japan’s central bank recently stated it sees a virtuous cycle between wages and prices intensifying, which should further help to bolster consumption and investments. The country’s strong position on the global technology supply chain, including semiconductors, along with a renewed focus on corporate governance and shareholder value should also bode well for the domestic equity market.”

The Franklin FTSE Japan UCITS ETF will list on the Deutsche Börse Xetra (XETRA) on 30 July 2024, London Stock Exchange (LSE) and Euronext Amsterdam on 31 July 2024, and the Borsa Italiana on 4 September 2024. It is registered in Austria, Denmark, Finland, France, Germany, Ireland, Italy, Luxembourg, Netherlands, Spain, Sweden and the United Kingdom.

Competitive fees and tenured managers

The new ETF will provide European investors with cost-efficient, UCITS-compliant, Japanese equity exposure at one of the lowest total expense ratios (TER⁴) of 0.09% in Europe for its respective category. It will be managed by Dina Ting, Head of Global Index Portfolio Management, and Lorenzo Crosato, ETF Portfolio Manager, Franklin Templeton, who have more than three decades of combined experience in the asset management industry and extensive track records in managing ETF strategies.

Matthew Harrison, Head of Americas (ex-US), Europe & UK, Franklin Templeton, said: “Following the launch of the Franklin FTSE Developed World UCITS ETF a few weeks ago, we are delighted to expand our offering of core equity index tracking products with the launch of this new, low-cost FTSE Japan ETF. With $6 trillion⁵ in market capitalisation and Japanese market returns expected to recover, Japanese equities can be a core equity building block option within an investor’s portfolio.”

Franklin Templeton’s global ETF platform enables investors to pursue their desired outcomes through a range of indexed and active ETFs. Supported by the strength and resources of one of the world’s largest asset managers, the global ETF platform has approximately $27 billion in assets under management globally as of 30 June 2024.