Franklin Templeton has launched two active bond ETFs on Xetra and Börse Frankfurt.
The Franklin Liberty Euro Short Maturity UCITS ETF is designed to enable investors to participate in the performance of euro-denominated bonds with short maturities. The ETF is actively managed and invests in both government and corporate bonds with fixed or variable coupons that have an investment grade rating or are considered equivalent by investment management. The ETF can also invest up to 20 per cent of its net assets in non-investment grade bonds.
The Franklin Liberty USD Investment Grade Corporate Bond UCITS ETF enables investment in investment grade bonds denominated in US dollars and issued by US or other foreign companies. Active management aims to invest at least 80 per cent of net fund assets in investment grade or equivalent bonds with fixed or variable coupons. In addition to corporate bonds, the ETF may also include government, municipal or supranational issuers.
Fees for the European ETF are 0.30 per cent and fees on the US version are 0.35 per cent. Both ETFs have distributing distribution policy.