Franklin Templeton announces the launch of two new article 8 indexed ETFs, the Franklin S&P 500 Screened UCITS ETF and the Franklin S&P World Screened UCITS ETF.
This offering is a further addition to the suite of index tracking ETFs in the Franklin Templeton ETF range and brings the total number of UCITS ETFs classified as either article 8 or 9 to 17. The new ETFs will list on the Deutsche Börse (XETRA) on 16 April 2025, London Stock Exchange (LSE) and Euronext Paris on 17 April 2025, and the Borsa Italiana on 24 April 2025. They are now registered for distribution in Austria, Denmark, Finland, France, Germany, Ireland, Italy, Luxembourg, Netherlands, Spain, Sweden and the United Kingdom.
The Franklin S&P 500 Screened UCITS ETF and the Franklin S&P World Screened UCITS ETF will invest in large and mid-capitalisation stocks in the US and globally respectively. The new ETFs will track the S&P 500 Guarded Index and the S&P Guarded World index, which provide a screened equity exposure with an enhanced ESG profile and a focus on minimising performance deviation to their respective parent index (the S&P 500 Index and the S&P World Index), thus providing core low tracking error allocations.
Caroline Baron, Head of ETF Distribution, EMEA, Franklin Templeton, commented: “These new ETFs offer a cost-efficient and transparent way to access core equity exposures with enhanced ESG profiles and reduced carbon footprint, keeping a tight tracking to traditional core indices. These ETFs would be suitable for investors looking to invest in core exposures that are article 8 compliant and those seeking a tight tracking versus the traditional benchmarks such as S&P 500 and S&P World. These ETFs could be used with traditional core solutions to complement them for example.”
London-based Lotfi Ladjemi, Vice President, ETF Distribution, added: The Franklin S&P 500 Screened UCITS ETF and Franklin S&P World Screened UCITS ETF have been developed to support strategic asset allocation needs, offering cost-efficient, sustainable access to screened benchmark indices. These ETFs align with the growing investor focus on integrating ESG considerations without compromising on index performance.”
Key Features of the Franklin S&P 500 Screened UCITS ETF and the Franklin S&P World Screened UCITS ETF
- Market-like returns: The ETFs are constructed to provide broad diversified market coverage with some exclusions and relative weighting constraints targeting market-like returns with a low tracking error relative to the S&P 500 and S&P World Index respectively.
- Tangible ESG targets: The two new funds target a minimum 10% improvement in carbon intensity and a 10% minimum improvement in ESG rating versus their parent indices.
- Business exclusions: Companies involved in controversial businesses such as thermal coal, tobacco, controversial weapons and military arms are excluded as well as those companies which have been involved in serious ESG or UN Global Compact related controversies.
- Cost-efficiency: These article 8 ETFs are priced competitively at 0.09% (Franklin S&P 500 Screened UCITS ETF) and 0.14% (Franklin S&P World Screened UCITS ETF), making them attractive options for investors looking for a cost-effective article 8 solution.
Both new ETFs will be managed by Dina Ting, Head of Global Index Portfolio Management, and Lorenzo Crosato, ETF Portfolio Manager, who have more than three decades of combined experience in the asset management industry and proven track records in managing ETF strategies.
Rafaelle Lennox, Head of UCITS ETF Product Strategy, Franklin Templeton, said: “We are pleased to have collaborated with S&P in the creation of this unique index range, the S&P Guarded index family. These indices achieve two objectives which include an enhanced ESG and lower carbon emission profile while maintaining minimal performance deviation from the parent indices, S&P 500 and S&P World respectively. This is unique in the market and supports our clients’ evolving needs.”
Franklin Templeton’s global ETF platform enables investors to pursue their desired investment 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 $35 billion in assets under management as of 31 March 2025.
For more information on the Franklin Templeton ETF range please visit: www.franklintempleton.co.uk.
