Franklin Templeton Introduces New Theme-based ETF

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by Gladis Monteiro · 3 min read
Franklin Templeton Introduces New Theme-based ETF
The headquarters of Franklin Templeton Investments. Photo: Wikimedia Commons

The thematic ETF by Franklin Templeton will track the Solactive Global Metaverse Innovation Net Total Return Index.

Amidst the growing impact of the metaverse and related blockchain technology, not only the technology-driven companies, but even mainstream investment companies are jumping onto the bandwagon. Within a week of investment company Fidelity International launching five ETFs based on the metaverse theme, we have another asset management entity ready to enter this ETF sector – Franklin Templeton.

Thematic ETF by Franklin Templeton

Franklin Templeton, a leader in asset management, became the second company to launch a metaverse ETF in Europe. Named ‘The Franklin Metaverse UCITS ETF (FLRA), the ETF will be listed on the Deutsche Boerse, London Stock Exchange and Borsa Italiana. As per the report by ETF Stream, the listing will happen with a total expense ratio of 0.30%. This ETF will track the Solactive Global Metaverse Innovation Net Total Return Index. The latter provides direct exposure to those companies that are involved with the metaverse and related technology in a significant way. This index currently comprises 60 companies and the top five holdings constitute Apple, Paypal, Alphabet, Meta Platforms and Microsoft.

The company’s global index portfolio management head Dina Ting sees a great business opportunity in the metaverse space considering the e-commerce market’s growth estimates between $2 trillion to $2.6 trillion by 2030/ She also cited how other big tech companies have already taken steps towards this new area. Similarly, the company’s ETF business development head Caroline Baron expressed her delight in acknowledging how Franklin Templeton is one of the first movers in the metaverse space and its efforts toward providing European investors exposure to companies across the segment.

ETFs are similar to mutual funds however unlike the latter they can be bought on a stock exchange. These exchange-traded funds will track a specific sector, index, or commodity and offer pooled investment security to the investors. Their price fluctuates throughout the day as shares are traded on the market. Additionally, they are more economical and liquid when compared to another investment channel, mutual funds. Other reasons for its burgeoning growth are the low expense ratio and broker commission that it offers.

About Franklin Templeton

With over 70 years of existence, Franklin Templeton is a global asset management firm that brings together its experience and expertise to offer both institutions as well as individuals tailored support in achieving their financial goals. The company is guided by a long-term value creation goal and to support this aim, it constantly develops innovative tools and products for its clients to get the maximum benefit from their investment services. It currently has over $1.4 T worth of assets under management. With over 9500 + employees including 1300+ investment professionals, Franklin Templeton offers profound expertise and boutique specialization across geographies, asset groups, and investment strategies. They are a superbly agile entity backed by a global infrastructure, independent, entrepreneurial managers, and global strength.

Funds & ETFs, Market News, News
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