US mid-cap ETF promises Canadian investors exposure beyond US large caps with a multifactor approach and low fees
Franklin Templeton Canada has listed the Franklin US Mid Cap Multifactor Index ETF (FMID) on Cboe Canada Inc., offering Canadian investors exposure beyond US large-cap equities.
The ETF, which follows a multifactor investment approach focusing on high quality and value, has a management fee of 30 basis points.
“Many investors are concerned about valuations and the concentration of top-weighted stocks in the S&P 500 Index and are seeking to diversify beyond large-cap equities,” said Ahmed Farooq, SVP, head of Retail ETF Distribution at Franklin Templeton Canada.
He noted that FMID invests in established US businesses using a multifactor approach, focusing on specific factors to differentiate from passive US mid-cap indices.
FMID expands Franklin Templeton’s US ETF offerings for Canadian investors.
The firm’s lineup includes the Franklin FTSE US Index ETF (FLAM) and Franklin US Large Cap Multifactor ETF (FLUS), both rated 4-star by Morningstar, as well as the recently introduced Franklin US Low Volatility High Dividend Index ETF (FLVU).
“We continue to bring our best investment ideas and innovative solutions to the Canadian market to address client needs,” said Dennis Tew, head of Distribution and Business Strategy at Franklin Templeton Canada.
He noted that the $2bn US Mid Cap Multifactor Index ETF strategy has been in the US market for over seven years and has gained $1.2bn in flows over the past year.
To mark the listing of FMID, Franklin Templeton employees rang Cboe Canada's closing bell last January 30.
