New Listing

Franklin Templeton unveils Taiwan ETF

Cheapest Taiwan ETF in Europe by 31 basis points

Tom Eckett

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Franklin Templeton has expanded its single-country emerging market range with the launch of a Taiwan ETF.

The Franklin FTSE Taiwan UCITS ETF is set to list on Deutsche Boerse on 22 March, the London Stock Exchange and Borsa Italiana on 23 March with a total expense ratio (TER) of 0.19%, 31 basis points than the next cheapest Taiwan exposure.

The ETF will track the FTSE Taiwan 30/18 index which currently offers exposure to 108 large and mid-cap Taiwan companies.

To limit over-concentration, index constituents are capped quarterly so the largest company’s weighting does not exceed 30% and the remaining stocks do not exceed 18%.

The ETF currently has a 61.4% weighting to the technology sector and a 16.8% weighting to financials.

Caroline Baron (pictured), head of ETF business development, EMEA, at Franklin Templeton, commented: “Taiwan is home to some of the most technologically advanced companies globally and continues to offer attractive investment prospects, given its market leadership in high-growth sectors like electronic circuits, automation and semiconductors.

“Our single-country ETFs allow investors to tailor their emerging market allocations rather than follow the country weights of broader emerging market indices where China could account for more than 35%.”

Julian Ide, head of EMEA distribution at Franklin Templeton, added: “Offering greater choices to investors via emerging market ETFs will further enable our clients to use them as building blocks to diversify their portfolios.”

The latest launch takes the firm’s single-country emerging market ETF range to five. The other four are:

This is the first ETF in Europe to offer exposure to a FTSE Russell Taiwan index. The other three Taiwan ETFs from HSBC Asset Management, BlackRock and DWS track MSCI indices.

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