Franklin Templeton launches new Franklin US Dividend Tilt UCITS ETF for European Investors

• This new cost-effective index tracking ETF gives investors access to a broad and diversified US income strategy at a low cost of 12bp
• This ETF is suitable for investors seeking income and capital appreciation from US equities

London, 14 January 2025 – Franklin Templeton¹ is pleased to announce the launch of its new Franklin US Dividend Tilt UCITS ETF². This offering is a further addition to a suite of index tracking dividend ETFs in the Franklin Templeton ETF range and brings the total number of its indexed ETFs to 26.

The Franklin US Dividend Tilt UCITS ETF invests in large and mid-capitalisation stocks in the US and is designed to offer income and capital appreciation from US equities. The ETF tracks the Morningstar US Dividend Enhanced Select Index-NR, which aims to maximise dividend yield while maintaining low tracking error relative to the broader US market.

Caroline Baron, Head of ETF Distribution, EMEA, Franklin Templeton, commented: “As US equities are an important allocation for our clients, we are delighted to offer this differentiated US equity income solution, which provides both a tilted exposure towards dividend-paying stocks and a high US equity market participation. The ETF is particularly suited for investors looking to generate income and capitalise on the potential growth of US equities, which are known for offering lower yields, but higher capital appreciation compared to other developed markets.”

The ETF will list on the Deutsche Börse Xetra (XETRA) on 15 January 2025, London Stock Exchange (LSE) and Euronext Paris on 16 January 2025, and the Borsa Italiana on 28 January 2025. Furthermore, it is registered in Austria, Denmark, Finland, France, Germany, Ireland, Italy, Luxembourg, Netherlands, Spain, Sweden and the United Kingdom.

Key Features of the Franklin US Dividend Tilt UCITS ETF:

• Broad Exposure: The ETF includes 282 US securities, offering significant diversification and reducing the risk of large sector biases which commonly occur in dividend strategies.
• Maximised Yield with Market Alignment: The ETF is designed to deliver higher dividend yield with minimal deviation from its parent index, Morningstar US Target Market Exposure Index, achieving a balance of capital appreciation and income distribution.
• Cost-efficiency: Priced competitively at just 0.12%, the ETF is positioned well below the typical cost range for US dividend-focused ETFs.

The new ETF will be managed by Dina Ting, Head of Global Index Portfolio Management, and Lorenzo Crosato, ETF Portfolio Manager, who have more than three decades of combined experience in the asset management industry and extensive track records in managing ETF strategies.

Dina Ting added: “The Franklin US Dividend Tilt UCITS ETF seeks to extract the maximum yield per unit of risk, balancing additional yield with the capital appreciation that favors US equity exposure post-election. Enhanced yield can help investors weather potential volatility given uncertainties over major policy changes, such as tariffs and their impact on inflation and balance of trades. Our rules-based strategy, featuring a relatively low active risk compared to the broad market, can be an ideal core or satellite allocation for investors seeking diversified US market exposure.”

Franklin Templeton’s global ETF platform enables investors to pursue their desired outcomes through a range of indexed and active ETFs. Supported by the strength and resources of one of the world’s largest asset managers, the global ETF platform has approximately $33 billion in assets under management globally as of 31 December 2024.

For more information on the Franklin Templeton ETF range please visit: www.franklintempleton.co.uk.

-ENDS-

Contacts:

Oliver Trenk  Corporate Communications Manager Franklin Templeton Tel: +49 69 27223-718 Email: [email protected]

Dorine Johnson Head of Corporate Communications EMEA Franklin Templeton Tel: + 44 207 073 8538 Email: [email protected]

Notes to Editors:

This is a marketing communication. Please refer to the prospectus of the UCITS and to the KIID/KID before making any final investment decisions.

1. Franklin Resources, Inc. [NYSE:BEN] is a global investment management organisation with subsidiaries operating as Franklin Templeton and serving clients in over 150 countries. 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 specialisation on a global scale, bringing extensive capabilities in fixed income, equity, alternatives and multi-asset solutions. With more than 1,500 investment professionals, and offices in major financial markets around the world, the California-based company has over 75 years of investment experience and approximately $1.6 trillion in assets under management as of 31 December 2024. For more information, please visit www.franklintempleton.co.uk and follow us on LinkedIn, X, and Facebook.

2. Franklin US Dividend Tilt UCITS ETF is a sub-funds of the Franklin Templeton ICAV, an Irish Collective Asset-managed Vehicle, incorporated under the laws of Ireland.

The views expressed are those of the investment manager and the comments, opinions and analyses are rendered as of the publication date and may change without notice. The information provided in this material is not intended as complete analysis of every material fact regarding any country, region or market.

An investment in Franklin Templeton ICAV range entails risks, which are described in the prospectus, its supplements and in the relevant Key Investor Information Document. The Fund's documents are available in English, German and French from your local website. In addition, a Summary of Investor Rights is available from www.franklintempleton.lu/investor-rights. Franklin Templeton ICAV is notified for marketing in multiple EU Member States under the UCITS Directive. Franklin Templeton ICAV can terminate such notifications for any share class and/or sub-fund at any time by using the process contained in Article 93a of the UCITS Directive.

All MSCI data is provided "as is." The Fund described herein is not sponsored or endorsed by MSCI. In no event shall MSCI, its affiliates or any MSCI data provider have any liability of any kind in connection with the MSCI data or the Fund described herein. Copying or redistributing the MSCI data is strictly prohibited. Important data provider notices and terms available at www.franklintempletondatasources.com.

The value of shares in the fund and income received from it can go down as well as up and investors may not get back the full amount invested. Past performance is not an indicator or a guarantee of future performance. Performance may also be affected by currency fluctuations. Currency fluctuations may affect the value of overseas investments. There is no guarantee that the fund will meet its objective. Significant fund risks include: Index License Risk: To utilise an Index, the Fund may need to have a licence agreement signed with the Index Provider. If, at any time in respect of an Index, the licence granted terminates or disputed, impaired or ceases to exist ,the Directors may be forced to replace the Index with another Index. Such a substitution or any delay in such a substitution may have an adverse impact on the Sub-Fund. Index related risk: the risk that quantitative techniques used in creating the Index the Fund seeks to track do not generate the intended result, or that the portfolio of the Fund deviates from its Index composition or performance. Index Tracking Risk: No financial instrument or set of investment techniques enables the returns of any Index to be reproduced or tracked exactly. Changes in the investments of any Sub-Fund and re-weightings of the relevant Index may give rise to various transaction costs, operating expenses or inefficiencies which may adversely impact a Sub-Fund's tracking of an Index. Passive Investment Risk: An Index Tracking Sub-Fund will be negatively affected by general declines in the securities and asset classes represented in its Index. Because Index Tracking Sub-Funds are not “actively” managed, Market disruptions and regulatory restrictions could have an adverse effect on an Index Tracking Sub-Fund's ability to adjust its exposure to the required levelsForeign Currency risk: the risk of loss arising from exchange-rate fluctuations or due to exchange control regulations. Counterparty risk: the risk of failure of financial institutions or agents (when serving as a counterparty to financial contracts) to perform their obligations, whether due to insolvency, bankruptcy or other causes. Derivative Instruments risk: the risk of loss in an instrument where a small change in the value of the underlying investment may have a larger impact on the value of such instrument. Derivatives may involve additional liquidity, credit and counterparty risks. Single Country/Region Risk: This fund invests primarily in US, which means that it is more sensitive to local economic, market, political or  regulatory events in US, and will be more affected by these events than other funds that invest in a broader range of regions. Equity risk: Prices of equities may be affected by factors such as economic, political, market, and issuer-specific changes. Such changes may adversely affect the value of the equities regardless of company-specific performance.

For a full discussion of all the risks applicable to this Fund, please refer to the “Risk Considerations” section of the current prospectus of Franklin Templeton ICAV.

Franklin Templeton ICAV UCITS ETFs (domiciled outside of the U.S. or Canada) may not be directly or indirectly offered or sold to residents of the United States of America or Canada. ETFs trade like stocks, fluctuate in market value and may trade at prices above or below their net asset value. Brokerage commissions and ETF expenses will reduce returns.

This press release is intended to be of general interest only and does not constitute professional advice. Franklin Templeton and its management groups have exercised professional care and diligence in the collection and processing of the information in this press release. Franklin Templeton makes no representations or warranties with respect to the accuracy of this document. Franklin Templeton shall not be liable to any user of this report or to any other person or entity for the inaccuracy of information contained in this press release or for any errors or omissions in its contents, regardless of the cause of such inaccuracy, error or omission.

Any research and analysis contained in this document has been procured by Franklin Templeton for its own purposes.

Please consult your financial advisor before deciding to invest.

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