Franklin Templeton is planning to enter the exchange-traded fund space, according to a regulatory filing made with the Securities and Exchange Commission (SEC).
The company filed a registration statement with the SEC on 1 August 2013 for a new fund called the Franklin Short Duration US Government ETF, which it intends to list on the NYSE Arca.
According to the filing, the actively-managed fund, which will have expense ratio of 0.30 per cent, will invest “at least 80 per cent of its net assets in securities issued or guaranteed by the US government, its agencies, or instrumentalities.”
The fund will also invest in mortgage-backed securities, and will use interest rate-related derivative transactions to hedge risk.
