The Franklin LibertyQ Emerging Market Ucits ETF is the fifth product to be added to the Franklin LibertyShares Smart Beta Ucits ETF range.
It will be listed on both the London Stock Exchange and the Deutsche Borse.
The ETF tracks the LibertyQ Emerging Markets Index, an in-house designed index constructed with a weighting to four factors – quality, value, momentum and low volatility. According to Franklin Templeton the fund is the first in emerging markets Ucits smart beta ETF in Europe to incorporate all four of these factors.
It will target attractively valued high quality emerging market stocks, using momentum to identify investment trends and avoid value traps, and low volatility to provide a defensive measure against downturns.
Lower risk option
Patrick O’Connor, head of global ETFs, said: “We believe emerging markets offer some of the most compelling opportunities available in equity markets today and many investors are looking for a lower risk option of accessing the sector.
“A multi-factor screened approach can help to identify attractive opportunities within emerging markets, while providing diversification among investment factors, resulting in a potentially less volatile return profile.”
The ETF, which began trading on the LSE on Thursday, joins two other multi-factor ETFs in LibertyQ suite – Global Equity SRI and US Equity – and two income focused funds – Global Dividend and European Dividend.