Franklin Templeton Launches New Emerging Markets Debt ETF with 80% Asset Allocation
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6d ago
0mins
Source: seekingalpha
- New Fund Launch: Franklin Templeton debuted its Emerging Markets Debt ETF on Thursday, aiming to allocate at least 80% of its net assets to emerging market debt securities, catering to the growing investor interest in these markets.
- Investment Strategy: The ETF's strategy is positioned between fully U.S. dollar-denominated and fully local currency-denominated debt, with at least 50% of assets invested in U.S. dollar and euro-denominated debt securities issued by emerging market countries, enhancing portfolio diversification.
- Market Context: Amid stretched U.S. valuations and a weaker dollar narrative, investors are increasingly shifting capital into foreign and emerging markets, reflecting strong interest in emerging market debt, especially as the iShares MSCI Emerging Markets ETF has gained 7.6% year-to-date.
- Competitive Landscape: The ETF launch comes at a time when the S&P 500 has remained roughly flat year-to-date while rising 14% over the past year, indicating the appeal of emerging market debt and potentially providing Franklin with new growth opportunities in a competitive market.
Analyst Views on BEN
Wall Street analysts forecast BEN stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for BEN is 23.83 USD with a low forecast of 21.00 USD and a high forecast of 31.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
6 Analyst Rating
1 Buy
1 Hold
4 Sell
Moderate Sell
Current: 25.500
Low
21.00
Averages
23.83
High
31.00
Current: 25.500
Low
21.00
Averages
23.83
High
31.00
About BEN
Franklin Resources, Inc. is a global investment management company with subsidiaries operating as Franklin Templeton and serving clients in over 150 countries. Through its specialist investment managers, the Company offers specialization on a global scale, bringing capabilities in equity, fixed income, alternatives and multi-asset solutions. It provides its investment management and related services to retail, institutional and high-net-worth investors in jurisdictions worldwide. Its investment products include its sponsored funds, as well as institutional and high-net-worth separate accounts, retail separately managed account programs, sub-advised products, and other investment vehicles. Its funds include registered funds (including exchange-traded funds) and unregistered funds. It offers its services and products under its various distinct brand names, including, but not limited to, Alcentra, Benefit Street Partners, Brandywine Global Investment Management, Canvas, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
