Two new Franklin LibertyShares strategic beta ETFs – the Franklin LibertyQT US Equity Index ETF (FLUS) and the Franklin LibertyQT International Equity Index ETF (FLDM) – have begun trading on the Toronto Stock Exchange (TSX).
“Joining our initial offering of two actively managed ETFs that began trading on May 30, our Franklin LibertyQT strategic beta ETFs will provide Canadian investors with US and international equity options for their portfolios,” says Duane Green, president and CEO of Franklin Templeton Investments Canada. “Our dedicated team of specialised ETF experts applies research-driven insights to traditional index investing to pursue specific investment outcomes via these new strategic beta ETF offerings.”
Franklin LibertyQT strategic beta ETFs are constructed with their respective indices grounded in both fundamental and quantitative analysis. Each LibertyQT ETF seeks to replicate a systematic, rules-based index that applies four custom factor weightings: quality (50 per cent), value (30 per cent), momentum (10 per cent) and low volatility (10 per cent).
“Our multi-factor approach to strategic beta ETFs has the potential to increase returns and reduce risk over the long term relative to a market capitalisation weighted approach, as different factors outperform at various stages of the market cycle,” says Patrick O’Connor, head of Global ETFs for Franklin Templeton Investments. “Our expert quantitative team has identified four well-established factors, applying a custom mix with an emphasis on quality and value, which has the potential to help drive attractive returns, while seeking a degree of downside protection.”