- Indexes track mid-to-large capitalisation stocks in four high-growth markets
- Four new ETFs will be available for trading on several European exchanges including London Stock Exchange and Borsa Italiana
FTSE Russell, the global index, data and analytics provider, announces that four of its FTSE Russell UCITS Capped Indexes covering Brazil, China, India and South Korea have been licenced to Franklin Templeton. The indexes will be used as the underlying benchmark for four new exchange traded funds (ETFs)
The licensing of the FTSE China 30/18 Capped Index, FTSE Brazil 30/18 Capped Index, FTSE India 30/18 Capped Index and FTSE Korea 30/18 Capped Index, follows the recent launch of ETFs linked to FTSE Russell benchmarks using similar capped methodologies by Franklin Templeton in the US and Canada. The indexes represent the performance of large and mid-capitalisation stocks in the individual country. To limit over concentration in any single security, constituents of the respective indexes are capped quarterly so that the largest company’s weight does not exceed 30% and any remaining company weight does not exceed 18%.
Stéphane Degroote, Managing Director, ETFs and Derivatives EMEA, FTSE Russell said:
“We are pleased that Franklin Templeton has selected several of our 30/18 Capped index products as the underlying benchmark for four new emerging markets ETFs listed in Europe. These products will provide European investors with access to large and mid-cap stocks in a number of high-growth countries including China, Brazil, India and South Korea. FTSE Russell is a leading provider of indexes used by ETF issuers for a range of investable products with over $16 trillion in assets under management tracking our benchmarks.”
Caroline Baron, Head of ETF Sales, EMEA at Franklin Templeton commented:
“We are delighted to work with FTSE Russell for the launch of our first passive emerging markets country ETFs which will provide European investors with efficient access to four high-growth emerging markets at low cost.”
*The product names of the four Franklin Templeton ETFs are as follows:
Franklin FTSE Brazil UCITS ETF (will aim track the FTSE Brazil 30/18 Capped Index)
Franklin FTSE China UCITS ETF (will aim to track the FTSE China 30/18 Capped Index)
Franklin FTSE Korea UCITS ETF (will aim to track the FTSE South Korea 30/18 Capped Index)
Franklin FTSE India UCITS ETF (will aim to track the FTSE India 30/18 Capped Index)
Lucie Holloway +44 (0)20 7797 1222
Oliver Mann +44 (0)20 7797 1746
About FTSE Russell:
FTSE Russell is a global index leader that provides innovative benchmarking, analytics and data solutions for investors worldwide. FTSE Russell calculates thousands of indexes that measure and benchmark markets and asset classes in more than 70 countries, covering 98% of the investable market globally.
FTSE Russell index expertise and products are used extensively by institutional and retail investors globally. Approximately $16 trillion is currently benchmarked to FTSE Russell indexes. For over 30 years, leading asset owners, asset managers, ETF providers and investment banks have chosen FTSE Russell indexes to benchmark their investment performance and create ETFs, structured products and index-based derivatives.
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