Franklin Templeton adds alternative ETF to active ETF offering in the US
Franklin Templeton has expanded its active ETF lineup in the US with the addition of its first alternative ETF, the Franklin Liberty Systematic Style Premia ETF (FLSP).
The fund seeks to deliver absolute return (positive returns in rising or falling markets) by employing a multi-asset, long/short strategy. FLSP is actively risk-managed, seeking a target annualised volatility of 8 per cent, and targets four style factors: quality, value, momentum and carry.
“We are thrilled to bring our first alternative ETF to the market,” says Patrick O’Connor, global head of ETFs for Franklin Templeton. “FLSP is unique due to our intentional focus on building an alternative investment while seeking to minimise any correlation to traditional equity and fixed income asset classes. We find investors need tools to help mute or dampen volatility and to find more consistent returns across market cycles or in times of market stress. FLSP looks to address those challenges—and many others—in a low-cost, liquid ETF.”
This new ETF leverages the team’s focus on factor-based research, which is the same team behind its LibertyQ smart beta ETFs. Building this capability was a natural extension for Franklin’s ETF business.
FLSP will be managed by Dr. Chandra Seethamraju, senior vice president, head of quantitative strategies for Franklin Templeton Multi-Asset Solutions. This actively managed ETF does not seek to replicate the performance of a specified index and is listed on the NYSE Arca.