Franklin Templeton launches ESG-tilted ETFs in Europe, excluding controversial companies and following UN principles.

From Yahoo Finance: 2025-04-21 08:00:00

Franklin Templeton has launched two new ETFs in Europe, the S&P 500 Screened UCITS ETF (SP5S) and the Franklin S&P World Screened UCITS ETF (SPWR), with ESG tilts. SP5S tracks the S&P 500 Guarded index, while SPWR follows the S&P Guarded World index. Both ETFs have total expense ratios of 0.09% and 0.14%, respectively.

These ETFs exclude companies involved in specific business activities, environmental, social, and governance controversies, or those violating UN Global Compact principles. They are classified as Article 8 under the Sustainable Finance Disclosure Regulation (SFDR). Caroline Baron, head of ETF distribution, EMEA at Franklin Templeton, recommends them for investors seeking core exposures that are article 8 compliant.

The launches come after ESMA updated its guidelines on ESG fund naming rules, prompting many issuers to adjust existing ETFs to comply. These new ETFs offer a tight tracking versus traditional benchmarks like the S&P 500 and S&P World. They can be used to complement traditional core solutions.



Read more at Yahoo Finance: Franklin Templeton Launches New ESG-Tilted ETFs in Europe