The Unique ETF Strategy of Franklin Templeton Investments

Hi, I'm Tom Lydon, ETF Trends Editor, here in Chicago at the Morning Star ETF Conference, here with David Man, Head of Global ETF Capital Markets at Franklin Templeton. Good to see you, David, I see you too, so Franklin Templeton is the world's star money. manager in the ETF space, you guys must be excited, very excited, it's now the three month anniversary of the products that we just launched. The company has been wonderful until reaching the top of the house. A lot of emotion. Many conversations with wholesalers and contractors. Some dedicated specialists really spread the word about our products, so for the average investor who has known Franklin Templeton over the years, what are some of the things investors can expect about how their strategies might be different?

In June we launched strategic beta ETFs, emerging markets, global stocks with international coverage and a dividend product, as we really try to leverage the best of

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in the way we think about stocks and the fundamental factors that drive those stocks to create custom indexes that we think would be a better result. for our investors and it has really resonated well with them. Most people don't know that they have offices around the world, they have an incredible research team and I imagine, and I'm not trying to put words in your mouth, but by putting these factors together you're trying to pull from all the research. around the world to decide which factors were the most important, it's true, you have exactly where I probably would have said it better than before, but Yes, you know, taking advantage of the breadth of the company is everywhere, all over the world and, really, what are the factors between momentum, volatility, quality value that the company's almost 70 years of research leads to saying, hey, this is it? the wait is this is the combination that will lead to a better outcome, well, people know if it's a great story and their mutual funds, but today's advisors understand the tax efficiency of ETFs, the lower costs, but also that inherent discipline, so what he found are certain disciplines. it works and that's why you can have factors for them, it's that right, that's exactly right, yes, many conversations investors have gravitated towards ETS for all the reasons you said and now as your teacher you ask more questions about what you can do inside that etf wrapper.

That's where we can start to harness the power of the individual factors that you just mentioned, so we're seeing a lot of research and seeing flows that, as you know, initially the ETFs got a lot of domestic equity assets and now they're starting to flow. Initially, more products were launched globally, but now factors and multi-factors continue to get a higher percentage of assets. Are you seeing that too and is that why you decided to be a space ETF? Yes, that's exactly right, we know we've seen the same thing. The trend as well and the encouraging part is really what you know in terms of the evolution by watching the migration to those market cap indices and now all of a sudden those investors are saying, "Wait a minute, we like the rapper DTF, we like have a rules-based methodology.” we like

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, so let's put it all together and that leads us to create those weighting factors that we think have made them very interesting products for our freedom of franklin q absolutely fine, congratulations, you're off to a great start, thank you very much.

We hope to follow you in the future. Wonderful thanks for the time, thank you.