Franklin Templeton has launched a European equity ETF and US equity ETF which are compliant with the European Union’s Paris Aligned Benchmark (PAB).
The Franklin STOXX Europe 600 Paris Aligned Climate UCITS ETF (EUPA) and the Franklin S&P 500 Paris Aligned Climate UCITS ETF (500P) have a total expense ratio (TER) of 0.15%, the cheapest climate ETF offering in Europe.
EUPA and 500P will list on the Deutsche Boerse on the 30 July and will also list on the London Stock Exchange and Borsa Italiana on 31 July.
They will be registered in Austria, Denmark, Finland, Sweden and Switzerland thereafter.
EUPA and 500P offer exposure to European and US large- and mid-cap stocks, respectively, with the aim of reducing climate change risk but also accessing low carbon transition opportunities.
EUPA tracks the Paris-Aligned version of the STOXX Europe 600 index and 500P tracks a similar version of the S&P 500 which are seeking EU Climate Benchmark certification.
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Caroline Baron (pictured), head of ETF sales EMEA at Franklin Templeton, commented: “These new launches are an extension of our current sustainable investment offering within our strong line up of 16 smart beta, active and passive ETF strategies for European investors.”
Julie Moret, global head of ESG at Franklin Templeton, added: “The ascent of climate change on the EU’s regulatory agenda has resulted in the creation of two new EU climate benchmarks, which provide clear rules that ensure the indices are comparable and transparent.
“The EU Climate Benchmark regulation suggests we will see a significant uplift in the adoption of climate-aligned investments across European markets, with investors moving away from the notion that they are niche products to building portfolios with sustainable finance at their core.”
Franklin Templeton joins Amundi, Deka and Lyxor which have also launched climate ETF ranges in Europe this year.