Franklin Templeton has expanded its US equity suite with the launch of a US mega cap ETF.
The Franklin US Mega Cap 100 UCITS ETF (USMC) will be listed on London Stock Exchange (LSE), Deutsche Borse, Euronext Paris and Borsa Italiana with a total expense ratio (TER) of 0.09%.
USMC tracks the Solactive US Mega Cap 100 Select index, which offers exposure to 100 largest companies in the Solactive GBS United States 500 index.
Caroline Baron (pictured), head of ETF distribution for EMEA, Franklin Templeton, said: “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.”
ETFs that offer a slice of the ‘top’ constituents in a given index are on the rise in Europe. BlackRock launched the iShares S&P 500 Top 20 UCITS ETF (SP20), capturing the largest companies within the S&P 500 index.
The iShares NASDAQ 100 ex-Top 30 UCITS ETF (QTOP) launched shortly after.
Elsewhere, Franklin Templeton launched an S&P 500 ETF and an S&P World ETF with ESG tilts.
