New Listing

Franklin Templeton launches developed global equity ETF

Undercutting Vanguard’s VHVG

Theo Andrew

Global world

Franklin Templeton has expanded its range with the launch of a developed global equity ETF.

The Franklin FTSE Developed World UCITS ETF (DWLD) will list on the London Stock Exchange and Deutsche Boerse on 25 June and Euronext Milan later this week.

DWLD has a total expense ratio (TER) of 0.09%.

The ETF tracks the FTSE Developed Net Return index which offers exposure to large and mid-cap stocks in developed markets globally.

It undercuts the $2.6bn Vanguard FTSE Developed World UCITS ETF (VHVG), which tracks the same index but with a more expensive TER of 0.12%.

It is not the cheapest global developed market ETF in Europe, however, with the Amundi Prime Global UCITS ETF (PRWU) holding a TER of 0.05%.

Caroline Baron, head of ETF distribution EMEA at Franklin Templeton, commented: “With just one trade, investors can now access more than 2,000 stocks across 25 developed economies as part of a broad diversified, global portfolio.

“Drawing nearly $20bn in ETF flows in 2023, developed markets account for 40% of the world’s GDP and 74% of global equity market capitalisation, making this strategy an attractive equity allocation for our clients.”

Matthew Harrison, head of Americas ex-US, Europe and UK, global advisory services at Franklin Templeton, added: “DWLD offers international and highly diversified equity exposure and can provide the core equity building block within an investor’s allocation.

“Such building blocks are essential for model portfolios based on ETFs, which are witnessing significant growth in Europe.”

In April, Franklin Templeton launched the Franklin MSCI Word Catholic Principles UCITS ETF (FLXA) with a TER of 0.27%.

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