Franklin Templeton Launches Franklin Exponential Data ETF (XDAT) to Harness Data Transformation
Franklin Templeton today announced the expansion of its thematic active ETF lineup with the addition of Franklin Exponential Data ETF (XDAT). XDAT seeks capital appreciation by investing in companies focused on or expected to benefit from the use of large data sets and/or the growth of data, including the creation, collection, cleaning, analyzing, storage, securing, transport, and/or sale of data. This includes, but is not limited to, cloud computing, data analysis, new security techniques, optical fiber, 5G and datacenter and tower infrastructure.
"We believe the coronavirus pandemic has driven a long-term, structural acceleration of data transformation, improving the quality of businesses," said Patrick O'Connor, global head of ETFs for Franklin Templeton. "As data continues to become increasingly important in our economy, the launch of XDAT showcases our continued efforts to remain nimble and adapt to the trends and needs of our clients in an evolving marketplace."
XDAT is listed on the Cboe BZX Exchange, Inc. (CBOE) and will be actively managed by seasoned portfolio managers Matthew Moberg, CPA® and Joyce Lin, CFA® within Franklin Equity Group. Both are located near Silicon Valley and have a long history of investing in the craft of innovation.
Matt Moberg, senior portfolio manager with Franklin Equity Group, added, "In our view, the rapid adoption of technological solutions during the pandemic is just the beginning. As we come to terms with how to live in a post-pandemic world, data is becoming essential to running a business, and those who manage it well have a competitive advantage, especially in the age of socially distancing."
Franklin Templeton's thematic innovation ETFs invest in companies at the forefront of transformational technology. Other thematic ETFs include:
Important Information about the Fund
All investments involve risks, including possible loss of principal. Stock prices fluctuate, sometimes rapidly and dramatically, due to factors affecting individual companies, particular industries or sectors, or general market conditions. The Funds' investment strategies incorporate the identification of thematic investment opportunities and their performance may be negatively impacted if the investment manager does not correctly identify such opportunities or if a theme develops in an unexpected manner. By concentrating their investments in consumer discretionary-related, health care-related and information technology-related industries, respectively, the Franklin Disruptive Commerce ETF, Franklin Genomic Advancements ETF and Franklin Exponential Data ETF carry much greater risk of adverse developments and price movements in such industries compared to a fund that invests in a wider variety of industries. The Franklin Intelligent Machines ETF has significant exposure to the technology sector. Companies operating within the technology sector may be affected by worldwide technological developments, the success of their products and services (which may be outdated quickly), anticipated products or services that are delayed or cancelled, and investor perception of the company and/or its products or services. Special risks are associated with foreign investing, including currency fluctuations, economic instability, and political developments. As non-diversified funds, the Funds may invest in a relatively small number of issuers and, as a result, be subject to greater risk of loss with respect to its portfolio securities. These and other risks are discussed in each Fund's prospectus.
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About Franklin Templeton
The Funds' principal underwriter is Franklin Templeton Distributors, Inc., a wholly-owned subsidiary of Franklin Resources, Inc. [NYSE:BEN] is a global investment management organization with subsidiaries operating as Franklin Templeton and serving clients in over 165 countries. Franklin Templeton's mission is to help clients achieve better outcomes through investment management expertise, wealth management and technology solutions. Through its specialist investment managers, the company brings extensive capabilities in equity, fixed income, multi-asset solutions and alternatives. With offices in more than 30 countries and approximately 1,300 investment professionals, the California-based company has over 70 years of investment experience and approximately $1.5 trillion in assets under management as of December 31, 2020. For more information, please visit franklintempleton.com.
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