Franklin Templeton has announced the launch of two sustainable, thematic ETFs: the Franklin Future of Food UCITS ETF and the Franklin Future of Health and Wellness UCITS ETF. These ETFs bring the total number of thematic ETFs to three and Article 8 SFDR compliant ETFs to 10 in the Franklin Templeton ETF range.
The Franklin Future of Food UCITS ETF tracks the performance of the Solactive Sustainable Food Index, while the Franklin Future of Health and Wellness UCITS ETF tracks the Solactive Sustainable Health and Wellness Index. These indices are designed to provide exposure to companies in the food and healthcare industries, respectively, that demonstrate innovation, utilize technology, and contribute to the United Nations Sustainable Development Goals (SDGs).
The Solactive Sustainable Food Index includes companies from industries such as agriculture machinery, smart farming, aquaculture, and sustainable and healthy food. The companies included must be deemed by Institutional Shareholder Services (ISS) to be contributing to SDG 2 (Zero Hunger), SDG 9 (Industry, Innovation & Infrastructure), SDG 12 (Responsible Consumption & Production), SDG 13 (Climate Action), SDG 14 (Life Below Water), or SDG 15 (Life On Land).
The Solactive Sustainable Health and Wellness Index includes companies involved in areas such as genomics, medical imaging, e-healthcare, mind and body wellness, senior diseases, and independent aging. These companies are recognized by ISS to be contributing to SDG 3 (Good Health and Well-being).
Both ETFs are managed by Franklin Templeton and will be listed on the Deutsche Börse Xetra, London Stock Exchange, and Borsa Italiana. They are registered in multiple countries across Europe and will be available to investors in Austria, Denmark, Finland, France, Germany, Ireland, Italy, Luxembourg, Spain, Sweden, and the UK.
Franklin Templeton emphasizes that these new ETFs offer exposure to innovative and sustainable practices aligned with the UN SDGs. They provide investors with opportunities for diversification and have the potential to outperform traditional indices. The ETFs also have competitive fees, with a total expense ratio (TER) of 0.30 per cent, making them among the lowest-cost sustainable solutions in their respective categories in Europe.