Franklin Templeton Launches Franklin Exponential Data ETF (XDAT) to Harness Data Transformation
Franklin Templeton has expanded its ETF lineup with the launch of the Franklin Exponential Data ETF (XDAT). This ETF aims to capitalize on companies involved in data management, including sectors like cloud computing and 5G. Patrick O’Connor highlighted the shift towards data transformation accelerated by the pandemic, suggesting a lasting impact on business quality. XDAT is actively managed by experienced portfolio managers and is listed on Cboe BZX Exchange. Franklin Templeton's ETF platform manages approximately $11.8 billion globally, focusing on innovative investment solutions.
- Launch of Franklin Exponential Data ETF (XDAT) focusing on data management sectors.
- Management by experienced portfolio managers near Silicon Valley.
- XDAT aims to benefit from long-term data transformation trends.
- Investment strategies may carry risk due to market fluctuations.
- Concentration in specific sectors may lead to greater losses.
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:
- Franklin Disruptive Commerce ETF (BUYZ) invests in companies benefitting from or facilitating advancements in emerging areas of the e-commerce space that are enabling more convenient, customized, secure and time-efficient transactions for both consumers and businesses.
- Franklin Genomic Advancements ETF (HELX) invests in companies benefitting from or facilitating advancements of new genomic-based research techniques and technologies designed to extend and enhance the quality of human and other life, driven by the advent of cost-effective and rapid gene sequencing.
- Franklin Intelligent Machines ETF (IQM) invests in companies benefitting from or facilitating advancements of machine learning technologies in areas like robotics, driverless vehicles and algorithmic data analysis.
Franklin Templeton’s ETF platform is designed to seek better client outcomes through a diverse and innovative product suite offered across asset classes and geographies. Over 90 ETFs are offered globally, providing solutions for a range of market conditions and investment opportunities through active, smart beta and passively managed ETFs. Our ETF platform has approximately
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.
ETFs trade like stocks, fluctuate in market value and may trade at prices above or below the ETF’s net asset value. Brokerage commissions and ETF expenses will reduce returns.
ETF shares may be bought or sold throughout the day at their market price, not their Net Asset Value (NAV), on the exchange on which they are listed. Shares of ETFs are tradable on secondary markets and may trade either at a premium or a discount to their NAV on the secondary market.
Investors should carefully consider a fund’s investment goals, risks, charges and expenses before investing. To obtain a summary prospectus and/or prospectus, which contains this and other information, talk to your financial advisor, call us at (800) DIAL BEN/342-5236 or visit franklintempleton.com. Please carefully read a prospectus before you invest or send money.
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
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