Franklin Templeton today announced the expansion of its active ETF lineup with the addition of its ninth active fixed income ETF offering, Franklin Liberty U.S. Treasury Bond ETF (FLGV). FLGV seeks income by investing primarily in Treasury bonds, bills and notes, and investments that provide exposure to direct obligations of the U.S. Treasury.
"The launch of FLGV further exemplifies our steadfast belief that active management is critical to achieving investor goals in fixed income," said Patrick O’Connor, global head of ETFs for Franklin Templeton. "Franklin Templeton Fixed Income has engineered a seamless active quant approach—where portfolio managers, analysts, traders and data scientists work as one team to create a synergistic loop between quantitative and fundamental analysis. We believe marrying our time-tested fundamental expertise and data science insights gives us a competitive edge in navigating challenging investment environments to best serve our clients."
FLGV is managed by Patrick Klein, senior vice president, portfolio manager, and Warren Keyser, senior vice president, portfolio manager, and is listed on NYSE Arca. FLGV adds a Treasury-bond focused option to Franklin LibertyShares’ robust active fixed income ETF lineup:
"With FLGV, we are investing primarily in Treasuries across the entire maturity spectrum, for investors looking to generate income in their portfolios without taking on corporate credit risk," said Klein. "We have chosen to manage this fund with a low tracking error to the Bloomberg Barclays U.S. Treasury Index, but we still retain flexibility to drive alpha, primarily through duration and yield curve positioning and with selective, limited allocations to U.S. Treasury Inflation Indexed Notes (TIPS), U.S. Agency Mortgage Backed Securities, and other U.S. Government and Agency Guaranteed Securities."
Franklin LibertyShares, the firm’s global ETF platform, enables investors to pursue their desired outcomes through a range of active, smart beta and passive ETFs. LibertyShares has more than $7 billion in assets under management globally as of May 31, 2020, including nearly $4 billion in active fixed income ETFs, and is supported by the strength and resources of one of the world’s largest asset managers. Gather insights on ETF investing by visiting franklintempleton.com/etfs and follow Franklin LibertyShares on Twitter: @libertyshares.
Important Information about the Fund
All investments involve risks, including possible loss of principal. Interest rate movements, unscheduled mortgage prepayments and other risk factors will affect the fund’s share price and yield. Bond prices, and thus a fund’s share price, generally move in the opposite direction of interest rates. Therefore, as the prices of bonds in the fund adjust to a rise in interest rates, the fund’s share price may decline. Changes in the financial strength of a bond issuer or in a bond’s credit rating may affect its value. These and other risks are discussed in the fund’s prospectus.
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.
ETF shares may be bought or sold throughout the day at their market price, not their Net Asset Value (NAV), on the exchange on which they are listed. Shares of ETFs are tradable on secondary markets and may trade either at a premium or a discount to their NAV on the secondary market.
Investors should carefully consider a fund’s investment goals, risks, charges and expenses before investing. To obtain a summary prospectus and/or prospectus, which contains this and other information, talk to your financial advisor, call us at (800) DIAL BEN/342-5236 or visit franklintempleton.com. Please carefully read a prospectus before you invest or send money.
About Franklin Templeton
The funds’ principal underwriter is Franklin Templeton Distributors, Inc., a wholly-owned subsidiary of Franklin Resources, Inc. [NYSE:BEN] is a global investment management organization operating, together with its subsidiaries, as Franklin Templeton. Franklin Templeton’s goal is to deliver better outcomes by providing global and domestic investment management to retail, institutional and sovereign wealth clients in over 170 countries. Through specialized teams, the company has expertise across all asset classes—including equity, fixed income, alternative and custom solutions. The company’s more than 600 investment professionals are supported by its integrated, worldwide team of risk management professionals and global trading desk network. With offices in more than 30 countries, the California-based company has more than 70 years of investment experience and more than $617 billion in assets under management as of May 31, 2020. For more information, please visit franklintempleton.com.
Copyright © 2020. Franklin Templeton. All rights reserved.