Franklin Templeton has announced the launch of its first actively managed equity UCITS ETF for UK investors – the Franklin ClearBridge US Smaller Companies UCITS ETF.
The new ETF will be listed on the London Stock Exchange (LSE) on 3 November. The firm writes that this launch marks an important milestone for Franklin Templeton in the UK market, expanding its active ETF suite into US equities and reinforcing its position as a pioneer in active ETF innovation across asset classes, investment styles, and geographies.
Andrew Ashton, Head of UK, Franklin Templeton, says: “We are delighted to offer UK investors Franklin Templeton’s first active equity ETF showcasing our unique model that blends specialist investment expertise with global scale and ETF innovation. Powered by ClearBridge Investments’ decades of US equity experience and proven success in small- and mid-cap strategies, this ETF targets an asset class known for strong long-term growth. This new offering will complement our existing UK fund range, which already provides investors with access to a comprehensive selection of US equity options, including active and passive strategies across small and large capitalisations. The addition further strengthens our offering to ensure we are well-positioned to meet the needs of UK clients.”
The Franklin ClearBridge US Smaller Companies UCITS ETF seeks to deliver long-term capital appreciation by identifying high-quality US growth companies early in their lifecycle – those with strong cash flows, resilient business models, and the potential to become the large-caps of tomorrow.
The strategy provides diversification beyond mega-caps, offering broader access to US economic growth and exposure to early-stage innovators often overlooked in large-cap portfolios. It is grounded in rigorous, bottom-up research across a broad investment universe of around 2,500 securities in the Russell 2500 Index, with the team meeting every company before investing and maintaining active, ongoing engagement. An integrated ESG analysis and a disciplined risk framework underpin the approach, ensuring diversified growth drivers and controlled portfolio risk. The fund has a total expense ratio of 0.49 per cent.
With over 75 years of active investment heritage, Franklin Templeton writes that it was among the first to launch active ETFs in the US in 2013. In 2018, it made its fixed income investment capabilities available to UK investors in ETF wrappers, with key fund launches such as the Franklin Euro Short Maturity UCITS ETFand the first active Euro green bond ETF, the Franklin Sustainable Euro Green Bond UCITS ETF.
Building on this legacy, the firm writes that it is bringing active US equity ETFs to UK investors, debuting with the Franklin ClearBridge US Smaller Companies UCITS ETF. Managed by ClearBridge Investments, a specialist investment manager of Franklin Templeton with over USD200 billion in assets, the strategy seeks true alpha through bottom-up stock selection, dynamic risk management, and long-term conviction.
Lotfi Ladjemi, Vice President, ETF Distribution for UK, Franklin Templeton adds: “The UK ETF market is maturing rapidly, with investors increasingly using ETFs not just for broad market exposure but for more targeted, outcome-driven allocations. Active ETFs have a vital role to play in this evolution, enabling investors to pursue active strategies with the same efficiency, cost-effectiveness and liquidity that they expect from traditional ETFs. At Franklin Templeton, we see this as a natural step in the continued development of the UK ETF landscape and are well positioned to support clients with a comprehensive suite of both active and indexed solutions.”
The Franklin ClearBridge US Smaller Companies UCITS ETF is co-managed by Brian M. Angerame, Jeffrey E. Bailin, Aram E. Green and Matthew S. Lilling, who together bring many decades of expertise in small and mid-cap investing.
Aram Green, Portfolio Manager, ClearBridge Investments, says: “We believe this is a particularly compelling time for small-cap investing. Smaller US companies are trading at historically attractive valuations relative to large caps, yet many display robust fundamentals and long growth runways. In a market dominated by a handful of mega-cap names, we see numerous opportunities for active stock pickers to uncover high-quality businesses early in their lifecycle—companies with strong cash flows, innovative resilient business models, and the potential to become tomorrow’s market leaders.”
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