Active ETFs deliver the best of both worlds: the innovation and flexibility of active management with the transparency and efficiency of the ETF structure. Demand is surging for instruments that combine liquidity, transparency, and operational flexibility—with the potential to outperform traditional benchmarks. In today's volatile markets, active ETFs provide specialized strategies, dynamic risk management, and the agility to respond quickly to changing conditions.
| ETF | Ticker | ISIN | TER* |
|---|---|---|---|
| Franklin Sustainable Euro Green Bond UCITS ETF | FLRG GR | IE00BHZRR253 | 0.25% |
| Franklin Sustainable Euro Green Corp 1–5 Year UCITS ETF | GCOR GR | IE0006K7DEL9 | 0.18% |
| Franklin Sustainable Euro Green Sovereign UCITS ETF | GSOV GR | IE000P0R7WK6 | 0.18% |
| Franklin Euro Short Maturity UCITS ETF | FVSH GY | IE00BFWXDY69 | 0.15% |
| Franklin Euro IG Corporate UCITS ETF | EIGC GR | IE000H0TSO96 | 0.15% |
| Franklin USD Investment Grade Corporate Bond UCITS ETF | FVUI GY | IE00BFWXDX52 | 0.35% |
| ETF | Ticker | ISIN | TER* |
|---|---|---|---|
| Franklin Core US Enhanced Equity UCITS ETF | FCEU GR | IE000CZU3JH0 | 0.20% |
| Franklin ClearBridge US Smaller Companies UCITS ETF | CBSM GR | IE000XJA2OU4 | 0.49% |
An ETF (Exchange Traded Fund) is an investment fund that holds a group of securities, such as stocks or bonds. ETFs are traded on a stock exchange, which means they can be bought and sold in a similar way to shares. ETFs have become popular because they offer transparent and cost-efficient access to different markets and investment themes.
An active ETF is managed by an investment team that makes decisions about which securities to buy or sell, rather than simply tracking an index.
Diversification – Investors gain exposure to many securities within a single fund
Intraday Trading – ETF shares can be bought and sold throughout the trading day at market prices
Cost Efficiency – ETFs often have lower ongoing fees than traditional investment funds, although brokerage costs may apply
Low starting amount – There is usually no minimum investment other than the price of one ETF unit
Transparency – ETFs typically disclose their holdings on a daily basis
Liquidity – ETFs are traded on exchanges and supported by market makers, helping investors buy and sell more easily
Individual Investor – Buys and sells ETF units through a brokerage account
ETF Sponsor – The financial institution that creates and manages the ETF
Authorized Participant (AP) – An institution that helps create and redeem ETF units
ETF Market Maker – A firm that supports trading by providing buy and sell prices on the exchange
No. With savings plans, even small amounts can be invested regularly – efficiently, automatically, and in a disciplined way.
*The total expense ratio of a fund (TER) expresses the sum of the costs and fees of a fund as a percentage of the average fund volume within the last financial year.
The ongoing charges are the fees the fund charges to investors to cover the costs of running the Fund. Additional costs, including transaction fees, will also be incurred. These costs are paid out by the Fund, which will impact on the overall return of the Fund. Fund charges will be incurred in multiple currencies, meaning that payments may increase or decrease as a result of currency exchange fluctuations. All charges will be paid out by the Fund, which will impact on the overall return of the Fund.
For the funds launched on 31 October 2023, TER waivers will expire from 1 November 2026: Franklin Euro IG Corporate UCITS ETF: TER includes a fee waiver of 0.03%, Franklin Sustainable Euro Green Corp 1–5 Year UCITS ETF: TER includes a fee waiver of 0.07%, Franklin Sustainable Euro Green Sovereign UCITS ETF: TER includes a fee waiver of 0.02%.
Further information is set out in the “Fees and Expenses” section of the Prospectus.
What are the key risks?
Franklin Sustainable Euro Green Bond UCITS ETF: counterparty risk, credit risk, foreign currency risk, secondary market trading risk
Franklin Sustainable Euro Green Corp 1-5 Year UCITS ETF: liquidity risk, counterparty risk, sustainability risk
Franklin Sustainable Euro Green Sovereign UCITS ETF: securitisation risk, liquidity risk, counterparty risk, sustainability risk
Franklin Euro Short Maturity UCITS ETF: counterparty risk, credit risk, derivative instruments risk, secondary market trading risk
Franklin Euro IG Corporate UCITS ETF: liquidity risk, counterparty risk, sustainability risk, liquidity risk,
Franklin USD Investment Grade Corporate Bond UCITS ETF: counterparty risk, credit risk, derivative instruments risk, secondary market trading risk
Franklin Core US Enhanced Equity UCITS ETF: foreign currency risk, derivative instruments risk, secondary market trading risk
Franklin ClearBridge US Smaller Companies UCITS ETF: counterparty risk, derivative instruments risk, equity risk, foreign currency risk
The Funds do not offer any capital guarantee or protection and you may not get back the amount invested. The Funds are subject to the following risks which are materially relevant:
Counterparty risk: the risk of failure of financial institutions or agents (when serving as a counterparty to financial contracts) to perform their obligations, whether due to insolvency, bankruptcy or other causes.
Credit risk: the risk of loss arising from default that may occur if an issuer fails to make principal or interest payments when due. This risk is higher if the Fund holds low-rated, sub-investment-grade securities.
Foreign currency risk: the risk of loss arising from exchange-rate fluctuations or due to exchange control regulations.
Secondary market trading risk: the risk that the shares purchased on the secondary market cannot usually be sold directly back to the Fund and that investors may therefore pay more than NAV per Share when buying shares or may receive less than the current NAV per Share when selling shares.
Liquidity risk: the risk that arises when adverse market conditions affect the ability to sell assets when necessary. Such risk may be triggered by (but not limited to) unexpected events such as environmental disasters or pandemics. Reduced liquidity may have a negative impact on the price of the assets.
Sustainability risk: The fund's integration of sustainability risks in the investment decision process may have the effect of excluding profitable investments from the investment universe of the fund and may also cause the fund to sell investments that will continue to perform well. A sustainability risk could materialise due to an environmental, social or governance event or condition which may impact the fund's investments and negatively affect the returns of the fund.
Securitisation risk: investment in securities which generate return from various underlying groups of assets such as mortgages, loans or other assets may bear a greater risk of loss due to possible default of some of the underlying assets.
Derivative instruments risk: the risk of loss in an instrument where a small change in the value of the underlying investment may have a larger impact on the value of such instrument. Derivatives may involve additional liquidity, credit and counterparty risks.
Equity risk: Prices of equities may be affected by factors such as economic, political, market, and issuer-specific changes. Such changes may adversely affect the value of the equities regardless of company specific performance.
For full details of all the risks applicable to this Fund, please refer to the “Risk Considerations” section of the current prospectus of Franklin Templeton ICAV.
Important Legal Information
Franklin USD Investment Grade Corporate Bond UCITS ETF, Franklin Euro IG Corporate UCITS ETF, Franklin Euro Short Maturity UCITS ETF, Franklin Core US Enhanced Equity UCITS ETF meet the requirements under Article 8 of the EU Sustainable Finance Disclosure Regulation (SFDR); the fund has binding commitments in its investment policy to promote environmental and/or social characteristics and any companies in which it invests should follow good governance practices.
Franklin Sustainable Euro Green Bond UCITS ETF, Franklin Sustainable Euro Green Corp 1–5 Year UCITS ETF and Franklin Sustainable Euro Green Sovereign UCITS ETF meet the requirements under Article 9 of the EU Sustainable Finance Disclosure Regulation (SFDR); the fund has an objective to make sustainable investments as defined in SFDR.
Further information in relation to the sustainability-related aspects of the Fund can be found at franklintempleton.lu/SFDR. Please review all of the fund's objectives and characteristics before investing.
All other funds meet the requirements under Article 6 of the EU Sustainable Finance Disclosure Regulation (SFDR); the fund does not promote environmental and/or social characteristics or have a sustainable investment objective under EU regulations.
This material is intended to be of general interest only and should not be construed as individual investment advice or a recommendation or solicitation to buy, sell or hold any security or to adopt any investment strategy. It does not constitute legal or tax advice. Special risks are associated with foreign investing, including currency fluctuations, economic instability and political developments. To the extent the fund focuses on particular countries, regions, industries, sectors or types of investment from time to time, it may be subject to greater risks of adverse developments in such areas at focus than a fund that invests in a wider variety of countries, regions, industries, sectors or investments. For the avoidance of doubt, if you make a decision to invest, you will be buying shares in the fund and will not be investing directly in the underlying assets of the fund.
Franklin Templeton ICAV ("the ETF" or “Fund”) investment returns and principal values will change with market conditions, and an investor may have a gain or a loss when they sell their shares. Please visit www.franklinresources.com/all-sites for the Franklin Templeton ICAV standardised and most recent month-end performance. There is no guarantee that any strategy will achieve its objective.
All performance data shown is in the fund's base currency. Performance data is based on the net asset value (NAV) of the ETF which may not be the same as the market price of the ETF. Individual investors may realise returns that are different to the NAV performance. Past performance does not predict future returns. The actual costs vary depending on the executing custodian. In addition, deposit costs may be incurred which could have a negative effect on the value. Please find out the costs due from the respective price lists from the processing/custodian bank. Changes in exchange rates could have positive or negative effects on this investment. Please visit www.franklinresources.com/all-sites to be directed to your local Franklin Templeton website for current performance, and to see the latest Prospectus or Supplement for further details. Information is historical and may not reflect current or future portfolio characteristics. All portfolio holdings are subject to change.
The Fund may use financial derivatives or other instruments which entail specific risks more fully described in the Fund's Documents. An investment in the ETF entails risks which are described in the latest Prospectus or Supplement and in the relevant KID/KIID. The Fund's documents are available in English, German and French from your local website or can be requested via FT's European Facilities Service which is available at www.eifs.lu/franklintempleton.
In addition, a Summary of Investor Rights is available from www.franklintempleton.lu/summary-of-investor-rights. The summary is available in English. Franklin Templeton ICAV is notified for marketing in multiple EU Member States under the UCITS Directive. Franklin Templeton ICAV can terminate such notifications for any share class and/or sub-fund at any time by using the process contained in Article 93a of the UCITS Directive.
Franklin Templeton ICAV (domiciled outside of the U.S. or Canada) may not be directly or indirectly offered or sold to residents of the United States of America or Canada. ETFs trade like stocks, fluctuate in market value and may trade at prices above or below the ETFs net asset value. Brokerage commissions and ETF expenses will reduce returns.
Indices are unmanaged, and one cannot invest directly in an index. They do not reflect any fees, expenses or sales charges.
Important data provider notices and terms available at www.franklintempletondatasources.com.
Issued by Franklin Templeton International Services S.à r.l. – Supervised by the Commission de Surveillance du Secteur Financier - 8A, rue Albert Borschette, L-1246 Luxembourg.
