Fees for the new Canadian, U.S. and
international low volatility, high dividend index ETFs are some of
the lowest in this category
TORONTO, March 28,
2024 /CNW/ - Franklin Templeton Canada today
announced a new suite of low cost, index ETFs that combine the
complementary factors of high dividends – backed by strong
corporate earnings and profitability – with low volatility to help
reduce overall risk in a portfolio. Today, Franklin
Canadian Low Volatility High Dividend Index ETF (FLVC),
Franklin U.S. Low Volatility High Dividend Index ETF (FLVU)
and Franklin International Low Volatility High Dividend Index
ETF (FLVI) will be listed on Cboe Canada Inc. FLVC, FLVU and
FLVI are available for 15, 12 and 25 basis points,
respectively.
"Instead of needing to invest in different factors separately,
this combined strategy of seeking sustainable high dividends and
low volatility offers investment advisors 'the best of both worlds'
and complements a portfolio of active and passive strategies by
aiming to provide higher income and reduce overall risk,"
said Ahmed Farooq, SVP, head
of Retail ETF Distribution, Franklin
Templeton Canada. "While many dividend strategies focus
on what dividends have been paid in the past, this suite of index
ETFs also looks ahead to see what dividends can potentially be
maintained and whether companies will remain profitable to support
it."
The new suite of index ETFs is constructed using a
rules-based index process with the following factors:
- High dividends: A dividend and profitability screen filters
stocks that are projected to continue to pay relatively high
dividend yields and the companies are projected to remain
profitable over the next four quarters to support their dividend
payment.
- Low volatility: Measure realized price and earnings volatility,
in addition to projected earnings, to identify changes in market
sentiment and risk.
- Stable yield score: Combining sustainable dividend yield with
volatility measures, while adjusting the yield upward when price
and earnings volatility are low, and vice versa.
Andrew Ashton, head of
Americas (ex-US) Distribution and chairman of Franklin Templeton Canada added:
"We remain committed to bringing our best strategies – like this
C$2 billion low volatility, high
dividend strategy we offer in the U.S. market – to the Canadian
market and tailoring it to meet the unique needs of Canadian
investors, while expanding our innovative ETF offerings and income
lineup."
"We continue to focus on offering ETFs at a low cost, as this
follows our recent announcement that Franklin Multi-Asset ETF
portfolios are among the lowest fees in their category."
Franklin Templeton employees will
gather to ring Cboe's closing bell on April
3, 2024, to celebrate the listings of FLVC, FLVU and
FLVI.
For more information on Franklin
Templeton's ETF lineup, please visit
franklintempleton.ca/etf.
About Franklin Templeton
Franklin Resources, Inc. [NYSE:BEN] is a global investment
management organization with subsidiaries operating as Franklin Templeton and serving clients in over
150 countries. In Canada, the company's subsidiary is Franklin
Templeton Investments Corp., which operates as Franklin Templeton Canada. Franklin Templeton's mission is to help clients
achieve better outcomes through investment management expertise,
wealth management and technology solutions. Through its specialist
investment managers, the company offers specialization on a global
scale, bringing extensive capabilities in fixed income, equity,
alternatives and multi-asset solutions. With more than 1,400
investment professionals, and offices in major financial markets
around the world, the California-based company has over 75 years of
investment experience and approximately US$1.6 trillion (approximately CAN$2.2 trillion)
in assets under management as of February
29, 2024. For more information, please
visit franklintempleton.ca and connect with Franklin Templeton on X (formerly known as
Twitter), Facebook and LinkedIn, and read the Beyond
Bulls & Bears blog.
Commissions, management fees and expenses all may be
associated with investments in ETFs. Investors should carefully
consider an ETF's investment objectives and strategies, risks, fees
and expenses before investing. The simplified prospectus and ETF
facts contain this and other information. Please read the
simplified prospectus and ETF facts carefully before investing.
ETFs trade like stocks, fluctuate in market value and may trade at
prices above or below the ETF's net asset value. Brokerage
commissions and ETF expenses will reduce returns. ETFs are not
guaranteed, their values change frequently, and past performance
may not be repeated.
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reserved.
SOURCE Franklin Templeton Investments Corp.