Franklin Templeton Unveils New ETF Focused on U.S. Mid-Caps
Franklin U.S. Mid Cap Multifactor Index ETF Launch
Cboe Canada Inc. is thrilled to announce the launch of an exciting new exchange-traded fund (ETF) through Franklin Templeton Canada, marking a noteworthy expansion in their ETF offerings. The newly minted Franklin U.S. Mid Cap Multifactor Index ETF is now trading under the symbol FMID, catering to investors looking to tap into the robust performance of mid-capitalization U.S. equities.
Understanding the Underlying Index
This new fund is designed to align with the performance of the LibertyQ U.S. Mid Cap Equity Index – NR, a sophisticated and innovative systematic index. It uses a carefully structured multi-factor approach to select equity securities from the Russell Midcap Index – NR. This approach emphasizes quality, value, momentum, and low volatility, ensuring that the chosen equities are positioned to thrive in various market conditions.
Why Focus on Mid-Cap Stocks?
In today’s market landscape, many investors express concerns regarding stock valuations, particularly the significant concentration found within large-cap stocks like those in the S&P 500 Index. Ahmed Farooq, Senior Vice President and Head of Retail ETF Distribution at Franklin Templeton Canada, noted that there is a growing demand for diversification beyond these top-weighted stocks. This ETF is thoughtfully structured to help investors diversify their portfolios while accessing the vast growth potential presented by established U.S. businesses, all through a multifactor strategy-oriented approach.
Benefits of Investing in FMID
Investors now have the opportunity to trade FMID alongside eight other Franklin Templeton ETFs currently listed on Cboe Canada. This accessibility allows individuals to utilize their preferred investment channels, such as discount brokerage platforms and full-service dealers, thus enhancing their investment decision-making processes.
Expert Collaboration for Market Advancement
Rob Marrocco, Global Head of ETF Listings at Cboe Global Markets, expressed enthusiasm about the collaboration with Franklin Templeton. He stated, “Cboe Canada is honored to be Franklin Templeton’s listing venue of choice for the latest addition to their product shelf. We are thrilled to continue our collaboration with a likeminded advocate for progress and choice in the Canadian ETF market.” This partnership signifies a lasting commitment to visually and strategically advancing the Canadian ETF landscape.
Cboe Canada's Role in the ETF Market
Cboe Canada stands as one of the premier marketplaces for Exchange-Traded Funds (ETFs) from Canada’s leading issuers. The exchange has distinguished itself by facilitating a remarkable portion of the trading volume in Canadian listed securities. Through its innovative platforms, Cboe Canada is home to a wide variety of investment products, including Canadian Depositary Receipts (CDRs) and a selection of renowned international growth companies.
Investors can explore a complete suite of Cboe-listed securities, including detailed ETF data, enabling them to remain informed about their investment choices.
About Cboe Canada and Franklin Templeton
Cboe Canada operates as a Tier 1 stock exchange that focuses on providing a top-tier listing environment for companies shaping future economies. Established in 2015, it offers a commitment to quality liquidity and investor trust, alongside unfettered access to necessary market data. Within the larger network of Cboe Global Markets, known for its comprehensive exchange network across North America, Europe, and Asia Pacific, Cboe is at the forefront of capital market solutions.
Franklin Resources, Inc. (NYSE: BEN) encompasses a global investment management organization with a vast footprint in over 150 countries. The organization is focused on enhancing client outcomes through sophisticated investment management and technology solutions. With over 1,500 investment professionals and a legacy exceeding 75 years, Franklin Templeton manages approximately US$1.6 trillion in assets, underscoring its position in the financial services industry.
Frequently Asked Questions
What is FMID?
FMID stands for Franklin U.S. Mid Cap Multifactor Index ETF, recently launched on Cboe Canada to provide exposure to mid-cap U.S. equities.
What index does FMID track?
FMID tracks the LibertyQ U.S. Mid Cap Equity Index – NR, which employs a rules-based methodology to select stocks based on quality, value, momentum, and low volatility.
What are the benefits of mid-cap stocks?
Mid-cap stocks offer a balance of growth potential and stability, often outperforming their larger counterparts under certain market conditions.
How can investors trade FMID?
Investors can trade FMID units through regular investment channels, including discount brokerage platforms and full-service dealers.
Where can I find more information about Cboe Canada?
More information about Cboe Canada, including its listed securities, can be found on their official website.
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