Franklin Templeton Launches Franklin Liberty Ultra Short Bond ETF (FLUD)

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San Mateo, CA, July 16, 2020 – Franklin Templeton today announced the expansion of its active ETF lineup with the addition of its 10th fixed income ETF offering, Franklin Liberty Ultra Short Bond ETF (FLUD). FLUD aims to provide a high level of current income while seeking to maintain an average duration under one year and preserve capital. FLUD can also be used to pursue income while maintaining liquidity needs.  

“As a multi-sector fund, concentrated in financials-related industries, FLUD provides investors with diversification in the ultra-short investment category and seeks a higher yield potential than traditional cash investments, with limited additional risks,” said Patrick O’Connor, global head of ETFs for Franklin Templeton. “Franklin Templeton is once again delivering its time-tested expertise in active fixed income management through this very competitively priced, low cost ETF. FLUD leverages our unique approach of blending top-down macroeconomic views, bottom-up fundamental research, and proprietary, quantitative analysis.”

FLUD, which is listed on the NYSE Arca, is managed by David Yuen, senior vice president, head of multi-sector and quantitative strategies, Shawn Lyons, CFA®, vice president, portfolio manager, Johnson Ng, CFA®, vice president, senior trader, portfolio manager, Tom Runkel, CFA®, vice president, portfolio manager, and Kent Burns, CFA®, senior vice president, portfolio manager—all with Franklin Templeton Fixed Income.

“FLUD invests in investment grade short maturity fixed income securities issued by governments and agencies as well as corporate credit and securitized securities,” said Yuen. “Sector allocation and security selection will be the primary drivers in pursuing income.”

FLUD adds an ultra-short duration option to Franklin LibertyShares’ range of active fixed income ETFs that also includes:

Ticker

Fund Name

FLCB

Franklin Liberty U.S. Core Bond ETF

FLCO

Franklin Liberty Investment Grade Corporate ETF

FTSD

Franklin Liberty Short Duration U.S. Government ETF

FLMB  

Franklin Liberty Federal Tax-Free Bond ETF

FLMI   

Franklin Liberty Federal Intermediate Tax-Free Bond Opportunities ETF

FLHY

Franklin Liberty High Yield Corporate ETF

FLIA

Franklin Liberty International Aggregate Bond ETF

FLBL

Franklin Liberty Senior Loan ETF

FLGV

Franklin Liberty U.S. Treasury Bond ETF


Franklin LibertyShares, the firm’s global ETF platform, enables investors to pursue their desired outcomes through a range of active, smart beta and passive ETFs. LibertyShares has more than $7.9 billion in assets under management globally as of June 30, 2020, including nearly $4.3 billion in active fixed income ETFs, and is supported by the strength and resources of one of the world’s largest asset managers. Gather insights on ETF investing by visiting franklintempleton.com/etfs and follow Franklin LibertyShares on Twitter: @libertyshares.

Important Information about the Fund

All investments involve risks, including possible loss of principal. The Fund’s focus on the credit quality of its portfolio is intended to reduce credit risk and help to preserve the Fund’s capital. The Fund is not a money market fund and does not seek to maintain a stable net asset value of $1.00 per share. Interest rate movements, unanticipated changes in mortgage prepayment rates and other risk factors will affect the Fund’s share price and yield. Bond prices, and thus the Fund’s share price, generally move in the opposite direction of interest rates. Therefore, as the prices of bonds in the Fund adjust to a rise in interest rates, the Fund’s share price may decline. By focusing its investments in financials related industries, the Fund carries much greater risks of adverse developments and price movements in such industries than a fund that invests in a wider variety of industries. Because the Fund concentrates in a specific industry or group of industries, there is also the risk that the Fund will perform poorly during a slump in demand for securities of companies in such industries. The Fund’s investment in foreign securities involves certain risks including currency fluctuations and economic and political uncertainties. Investments in developing markets involve heightened risks related to the same factors, in addition to those associated with their relatively small size and lesser liquidity. Investing in derivative securities involves special risks as such may not achieve the anticipated benefits and/or may result in losses to the Fund. These and other risks are discussed in the Fund’s prospectus.

ETFs trade like stocks, fluctuate in market value and may trade at prices above or below the ETF’s net asset value. Brokerage commissions and ETF expenses will reduce returns.

ETF shares may be bought or sold throughout the day at their market price, not their Net Asset Value (NAV), on the exchange on which they are listed. Shares of ETFs are tradable on secondary markets and may trade either at a premium or a discount to their NAV on the secondary market.

Investors should carefully consider a fund’s investment goals, risks, charges, and expenses before investing. To obtain a summary prospectus and/or prospectus, which contains this and other information, talk to your financial advisor, call us at (800) DIAL BEN/342-5236 or visit franklintempleton.com. Please carefully read a prospectus before you invest or send money.

About Franklin Templeton

The funds’ principal underwriter is Franklin Templeton Distributors, Inc., a wholly-owned subsidiary of Franklin Resources, Inc. [NYSE:BEN] is a global investment management organization operating, together with its subsidiaries, as Franklin Templeton. Franklin Templeton’s goal is to deliver better outcomes by providing global and domestic investment management to retail, institutional and sovereign wealth clients in over 170 countries. Through specialized teams, the company has expertise across all asset classes—including equity, fixed income, alternative and custom solutions. The company’s more than 600 investment professionals are supported by its integrated, worldwide team of risk management professionals and global trading desk network. With offices in more than 30 countries, the California-based company has more than 70 years of investment experience and more than $622 billion in assets under management as of June 30, 2020. For more information, please visit franklintempleton.com.