Franklin Templeton on Monday introduced three actively managed fixed-income exchange-traded funds, which expands its existing roster of four active bond ETFs managed by the Franklin Templeton Fixed Income Group.
The Franklin Liberty Senior Loan ETF (FLBL) provides exposure to senior loans, including loans referred to as leveraged loans, bank loans and/or floating rate loans. The fund invests mainly in income-producing, senior floating interest rate corporate loans made to or issued by U.S. companies, non-U.S. entities and U.S. subsidiaries of non-U.S. entities. Its net expense ratio is 0.45 percent.
The Franklin Liberty High Yield Corporate ETF (FLHY) focuses on high-yield corporate debt securities and investments that provide exposure to high-yield corporate debt securities. The fund may enter into certain derivative transactions, principally in the form of currency and cross currency forwards and swap agreements, including interest rate and credit default swaps (including credit default index swaps). The net expense ratio is 0.40 percent.
Last but not least, the Franklin Liberty International Aggregate Bond ETF (FLIA) invests mostly in fixed- and floating-rate bonds issued by governments, government agencies and governmental-related or corporate issuers located outside the U.S. Bonds include debt obligations of any maturity such as bonds, notes, bills and debentures. The fund may enter into various currency-related transactions involving derivative instruments, principally currency and cross currency forwards, but it may also use currency futures contracts. It sports the lowest net expense ratio of the group at 0.35 percent.