Expect more from Government Bonds

FTSD - Franklin Liberty Short Duration U.S. Government ETF

Why Government Bonds?

Bonds issued and secured by the US government offer many potential benefits:

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The Power of Active Management

Not all government bonds are created equal. For example, U.S. Treasuries may not have as much potential for yield as some mortgage-backed securities (MBS). And a typical passive (index-tracking) government bond fund can only take one approach – investing in securities found in its benchmark.

FTSD seeks the highest-yielding short-term U.S. government bond opportunities, such as MBS and Agencies.


A range of yields-to-maturity for various indexes in the government bond space

As of March 31, 2020

Yield to Maturity Chart

Index performance data represents past performance, which does not guarantee future results. One cannot invest directly in an index. Money Markets are represented by the U.S. Benchmark Bill—1 Month. Source: Bloomberg. U.S. Gov Bonds 1-3 Year Maturity are represented by Bloomberg Barclays U.S. Government 1- 3 Yr TR USD Index. US MBS represented by Bloomberg Barclays U.S. MBS Index. Agencies represented by Bloomberg Barclays U.S. Aggregate: Agencies Index.


At Franklin Templeton, our active managers target the best opportunities in the short-term government bond universe by applying active quant management, which combines fundamental research and a proprietary, machine learning-driven ranking system.

Active management in action1,2

Data as of March 31, 2020

Sector notional exposure


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