Franklin Templeton has launched an emerging markets ex-China ETF and a FTSE emerging markets ETF.
The Franklin FTSE Emerging ex-China UCITS ETF (EMGM) and the Franklin FTSE Emerging Markets UCITS ETF (EXCN) will list on Deutsche Börse on 23 October and on the London Stock Exchange (LSE) and the Borsa Italiana one day later, both with total expense ratios (TER) of 0.11%.
EMGM tracks the FTSE Emerging ex China index which offers exposure to 993 large and mid-cap companies in emerging markets excluding China.
Its top three holdings are Taiwan Semiconductor Manufacturing (13%), Reliance Industries (2.1%) and HDFC Bank (2.1%).
Meanwhile, EXCN tracks the FTSE Emerging index which captures large and mid-cap companies in emerging markets, with its top three holdings being Taiwan Semiconductor Manufacturing (9%), Tencent (4.4%) and Alibaba (3%).
Jaspal Sagger, global head of product at Franklin Templeton, said: “Our market and client research has demonstrated that many clients are looking to customise their allocations to China.
“We also recognise that not all clients wish to manage their China allocation separately and prefer to simply seek broad emerging markets exposure. In this regard, the new Franklin FTSE Emerging Markets UCITS ETF complements the firm’s comprehensive offering of actively managed emerging market products.”
Fund selectors have previously highlighted the advantages of ex-China strategies, particularly for enhancing risk management and benefitting portfolio construction.
Elsewhere, Franklin Templeton expanded its single-country range with the launch of the Franklin FTSE Japan UCITS ETF (FLXJ) in July.
