FRANKLIN TEMPLETON MULTI-ASSET SOLUTIONS
Investing for outcomes requires the right tools. Our smart beta ETFs allow you to work with precision, as their methodology was designed with purpose—to seek to produce stronger risk-adjusted returns over the long term. The funds target a proprietarily engineered factor weighting across Value, Momentum and Low Volatility and emphasize our, robust definition of Quality.
A Comprehensive View of Quality
Quality has several definitions in the industry, sometimes only measured by a single metric. Our robust, comprehensive measurement criteria seeks to replicate traditional financial statement analysis. Multiple descriptors are utilized to more effectively capture the desired characteristics across industries, countries and business operating models. Our belief is that to best capture Quality systematically, a more prudent approach considers more than just a few characteristics.
Advancements in Smart Beta Index Design – Not All Factors Are Created Equal
Since the 1970s, investment strategies that seek to track cap-weighted indexes have become an increasingly popular choice for many investors. While these strategies offer broad market exposure, they also have limitations.
This paper explores some of the shortcomings of cap-weighted index investing and presents the results of our research, which suggests that designing an index around criteria other than market cap may offer investors an attractive alternative.
Download this paper to learn more.
Currently Available Smart Beta ETFs
FLQG Franklin LibertyQ Global Equity ETF
FLQE Franklin LibertyQ Emerging Markets ETF
FLQH Franklin LibertyQ International Equity Hedged ETF
FLQL Franklin LibertyQ U.S. Equity ETF
FLQM Franklin LibertyQ U.S. Mid Cap Equity ETF
FLQS Franklin LibertyQ U.S. Small Cap Equity ETF
Understanding the Libertyq Factor Methodology
Chandra Seethamraju, Ph.D., Director of Qualitative Strategies, Franklin Templeton Multi-Asset Solutions, discusses the methodology behind Franklin’s multi-factor smart beta ETFs, including the rationale behind LibertyQ’s custom factor definitions and their factor weightings.
IMPORTANT LEGAL INFORMATION
All investments involve risks.
Performance of the smart beta and passive ETFs may vary significantly from the performance of an index as a result of transactions costs, expenses and other factors. Smart beta and passive ETFs track their respective benchmark indexes, as listed in the Prospectus(s). The active ETFs are actively managed, but there is no guarantee that the manager’s investment decisions will produce the desired results.
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. There is no guarantee that any strategy will achieve its objective. Franklin LibertyShares ETFs are not riskless investments, and investors can lose money.
Franklin LibertyShares ETFs are not sponsored, endorsed, issued, sold or promoted by or affiliated with MSCI Inc. and FTSE Russell, Inc. MSCI Inc. does not make any representation regarding the advisability of investing in any Franklin ETF. Russell® and FTSE® are trademarks of FTSE Russell. Additional important data provider notices and terms available at www.franklintempletondatasources.com.
Investors should carefully consider a fund’s investment goals, risks, charges and expenses before investing. To obtain a Franklin Templeton fund summary prospectus and/or prospectus that contains this and other information, call 1-800-342-5236 or visit www.libertyshares.com. Investors should read the prospectus carefully before investing. All investments involve risks, including possible loss of principal.
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