Franklin Templeton Launches US Mega Cap 100 ETF for UK and European Investors

• With this new ETF investors can target the 100 largest US companies by providing a nimble solution to dial up equity market exposure or implement a risk-on trade

London, 7 May 2025 – Franklin Templeton¹ is pleased to announce the launch of its new Franklin US Mega Cap 100 UCITS ETF². The new ETF is designed to provide investors with targeted exposure to the top 100 US mega-cap stocks which are the leading companies from the world’s largest equity market. This offering is a further addition to the Franklin Templeton ETF range and brings the total number of its indexed ETFs to 28 and dedicated US Equity exposure ETFs to five.

The ETF will list on the Deutsche Börse Xetra (XETRA) on 8 May 2025, London Stock Exchange (LSE), Euronext Paris and the Borsa Italiana on 9 May 2025. Furthermore, it is registered in Austria, Denmark, Finland, France, Germany, Ireland (country of domicile), Italy, Luxembourg, Netherlands, Spain, Sweden and the United Kingdom.

The new ETF will track the Solactive US Mega Cap 100 Select Index³, which in turn tracks the performance of the 100 largest companies within the Solactive GBS United States 500 Index. The selection is based on total market capitalization.  Companies involved in controversial weapons are excluded. By weighting components according to their free-float market capitalisation, the index aims to ensure broad market representation while maintaining diversification.

Caroline Baron, Head of ETF Distribution, EMEA, Franklin Templeton, commented: “Looking back 30 years, the largest 100 securities in US equities have captured greater market upside than a broader index such as the S&P 500. This ETF can be utilised by investors as a nimble tool to dial up US equity market exposure or quickly implement a risk-on trade, offering a distinct risk-return profile.”

Key Features of the Franklin US Mega Cap 100 UCITS ETF

• Enhanced Performance Potential: The new ETF will focus on the top 100 US mega-cap stocks, which have historically outperformed broader indices.
• Targeted Exposure: It will provide a strategic tool for investors to overweight the largest growth names in the US market.
• Cost-Effective: The new ETF offers a cost-efficient solution for accessing the top US mega-cap equities with a total expense ratio (TER) of 0.09%⁴

The new ETFs 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 proven track records in managing ETF strategies.

Matt Harrison, Head of Americas (ex-US), Europe and UK, added: "Franklin Templeton is dedicated to building out its ETF range to provide investors with a diverse array of tools to achieve their investment goals. The launch of the Franklin US Mega Cap 100 UCITS ETF exemplifies this commitment. This new ETF not only offers attractive performance potential but also serves as a strategic tool for investors to overweight the largest growth names in the US market.”

Lotfi Ladjemi, Vice President, ETF Distribution, added: "This ETF expands the range of US equity solutions offered by Franklin Templeton ETF, which currently include multifactor, Paris-aligned, high dividend, and low-tracking ESG."

Rafaelle Lennox, Head of UCITS ETF Product Strategy, Franklin Templeton, pointed out: "The US equity market remains a powerhouse in global investing, fueled by ongoing innovation and strong earnings growth. By focusing on the leading 100 companies by market capitalization, this exposure will adapt and evolve to represent the underlying US equity market as it changes over time.”

Franklin Templeton’s global ETF platform enables investors to pursue their desired investment 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 $35 billion in assets under management globally as of 31 March 2025.

		Xetra Ticker	LSE Tickers		Borsa Italiana Ticker	Euronext Paris Ticker
Fund Name	ISIN	EUR	USD	GBP	EUR	EUR
Franklin US Mega Cap 100 UCITS ETF	IE0008M1R3N4	USMC	USMC	U100	US100	US100

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 $1.53 trillion in assets under management as of 31 March 2025. For more information, please visit www.franklintempleton.co.uk and follow us on LinkedIn, X, and Facebook.
2. Franklin US Mega Cap 100 UCITS ETF is a sub-funds of the Franklin Templeton ICAV, an Irish Collective Asset-managed Vehicle, incorporated under the laws of Ireland.
3. The Solactive US Mega Cap 100 Select Index NTR tracks the performance of the 100 largest companies from the US stock market, selected from the Solactive GBS United States 500 Index, after excluding companies with verified ongoing involvement in controversial weapons. It is calculated as a NTR index in USD. Solactive | Indices
4. The charges are the fees the Fund charges to investors to cover the costs of running the Fund. Additional costs, including transaction fees, will also be incurred. These costs are paid out by the Fund, which will impact on the overall return of the Fund. Fund charges will be incurred in multiple currencies, meaning that payments may increase or decrease as a result of currency exchange fluctuations.

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.

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.

Key Risks: The Fund intends to track the performance of large capitalisation stocks in developed markets globally. Such assets have historically been subject to price movements due to such factors as general stock market volatility, changes in the financial outlook or fluctuations in currency markets. As a result, the performance of the Fund can fluctuate significantly over relatively short time periods. Funds are subject to the following risks which are materially relevant: 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. 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 is 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. 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 levels. Sustainability Risk: The fund's integration of sustainability risks in the investment decision process may have the effect of excluding profitable investments from the investment universe of the fund and may also cause the fund to sell investments that will continue to perform well. A sustainability risk could materialise due to an environmental, social or governance event or condition which may impact the fund's investments and negatively affect the returns of the 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.

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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