Franklin Templeton Canada Introduces a Suite of Low Volatility and High Dividend ETFs for Canadian InvestorsCanada NewsWire
TORONTO, March 28, 2024
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 TempletonFranklin 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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SOURCE Franklin Templeton Investments Corp.
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