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Franklin Templeton Launches New US Treasury ETF for Investors Seeking Low-Risk Income

Strategic Insights

— 2 min read

Franklin Templeton has unveiled its latest addition to its range of exchange-traded funds (ETFs), the Franklin US Treasury 0-1 Year UCITS ETF. This index-tracking ETF offers investors an opportunity to gain exposure to short-term US Treasury securities, providing a competitive yield with a lower-risk investment profile. With a global presence, this new ETF will be listed on major European exchanges and offers investors a fixed income solution that can serve as a core component of their bond portfolios or a satellite allocation for those seeking income and relatively lower risk.

Key Takeaways:

  • The Franklin US Treasury 0-1 Year UCITS ETF will track the Bloomberg US Short Treasury Index, which comprises approximately 100 US Treasury notes, bonds, and bills with maturities between one month and one year.
  • The ETF aims to provide a fixed income solution with a lower-risk profile compared to the broader bond market, making it suitable for investors seeking income and relatively lower volatility.
  • The ETF will be managed by Albert Chan, William W. Chong, and Jesse Hurwitz, who have more than four decades of combined experience in the asset management industry and proven track records in managing ETF strategies.
  • Caroline Baron, Head of EMEA ETF Distribution, emphasizes the ETF's goal of providing easy and efficient access to the US treasury market, focusing on short-term securities to deliver a lower-risk investment option with attractive yield potential.
  • Matthew Harrison, Head of Americas (ex-US) Europe & UK, highlights the new ETF as an excellent building block for investors looking to cushion their portfolios during volatile markets.
  • The Franklin US Treasury 0-1 Year UCITS ETF will list on the Deutsche Börse Xetra on 2 July and Euronext Paris, Borsa Italiana, and Cboe Europe in Netherlands on 3 July.
  • The ETF will be registered for distribution in Austria, Denmark, Finland, France, Germany, Ireland (country of domicile), Italy, Luxembourg, Netherlands, Spain, and Sweden.

Statistics:

  • The Franklin US Treasury 0-1 Year UCITS ETF tracks the Bloomberg US Short Treasury Index, which consists of approximately 100 securities.
  • The ETF offers a fixed income solution that can be the core of investors' bond portfolios or a satellite allocation for investors seeking income and relatively lower risk compared to the broader bond market.
  • The ETF has a fixed yield potential, making it suitable for investors looking to cushion their portfolios during volatile markets.
  • The ETF will be managed by experienced portfolio managers with more than four decades of combined experience in the asset management industry.
  • The ETF will list on multiple European exchanges and be registered for distribution in 11 countries.

Sources:

  • Franklin Templeton press release
  • Bloomberg US Short Treasury Index
  • Deutsche Börse Xetra
  • Euronext Paris
  • Borsa Italiana
  • Cboe Europe in Netherlands

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