Franklin Templeton Launches First Active Equity ETF for European Investors

The Franklin ClearBridge US Smaller Companies UCITS ETF marks the debut of Franklin Templeton’s first active equity ETF for European investors. It is managed by ClearBridge Investments, a specialized manager with $200 billion in assets under management and a proven 20-year track record in small and mid-cap investment strategies.

Franklin Templeton was among the first firms to promote active ETFs, entering the U.S. market in 2013 and launching one of the first active bond ETFs in Europe in 2018.

Franklin Templeton announces the launch of its first actively managed UCITS equity ETF – the Franklin ClearBridge US Smaller Companies UCITS ETF.

The new ETF was listed today, November 3rd, on Borsa Italiana, London Stock Exchange, and Euronext Paris, and was listed on Deutsche Börse Xetra on October 30th. It is registered for distribution in Italy, Austria, Denmark, Finland, France, Germany, Ireland (the domicile country), Luxembourg, the Netherlands, Spain, and Sweden.

This represents a significant milestone for Franklin Templeton in the EMEA region, expanding its range of active ETFs in the equity segment and strengthening its position as a pioneer in active ETF innovation across different asset classes, investment styles, and geographic areas. With over 75 years of active investment experience, Franklin Templeton was among the first companies to launch active ETFs in the United States in 2013 and, in 2018, introduced its bond investment expertise into an ETF, making it accessible to European investors through ETFs like the Franklin Euro Short Maturity UCITS ETF, which offers a Euro liquidity solution, and the first active Euro green bond ETF, the Franklin Sustainable Euro Green Bond UCITS ETF.

Continuing on this path, the company is now beginning to offer active equity ETFs to European investors, starting with the Franklin ClearBridge US Smaller Companies UCITS ETF. Managed by ClearBridge Investments, one of Franklin Templeton’s specialized investment managers with over $200 billion in assets under management, the strategy aims to generate true alpha through bottom-up stock selection, dynamic risk management, and long-term conviction.

Franklin ClearBridge Smaller US Companies UCITS ETF

Managed by ClearBridge Investments, Franklin Templeton’s specialized manager for U.S. equities, with a 20-year track record in small and mid-cap strategy investments, this ETF aims to achieve long-term capital appreciation by early identification of high-quality, early-growth stage U.S. companies – those with strong cash flows, resilient business models, and the potential to become tomorrow’s large-caps. The strategy offers diversification beyond mega-caps, allowing broader access to U.S. economic growth and exposure to emerging innovators often overlooked in large-cap focused portfolios. It is based on rigorous bottom-up research conducted on a broad investment universe of approximately 2,500 securities included in the Russell 2500 Growth Index, with the team meeting each company before investing and maintaining active and ongoing engagement, resulting in a high-conviction portfolio of 50-80 stocks. The approach is supported by integrated ESG analysis and a disciplined risk management framework, ensuring diversified growth drivers and controlled portfolio risk. The ETF has a Total Expense Ratio (TER) of 0.49%.

The ETF is co-managed by Brian M. Angerame, Jeffrey E. Bailin, Aram E. Green, and Matthew S. Lilling, who collectively boast many decades of experience in small and mid-cap strategy investments.

Aram Green, Portfolio Manager, ClearBridge Investments, commented: “We believe this is a particularly interesting time to invest in small-caps. U.S. small-cap companies show historically attractive valuations compared to large-caps, while also presenting solid fundamentals and long-term growth prospects. In a market dominated by a narrow group of mega-cap stocks, we see numerous opportunities for active managers to identify high-quality companies in the early stages of their life cycle – companies with robust cash flows, innovative and resilient business models, and the potential to become tomorrow’s market leaders.”

Franklin Templeton ETFs

The launch of the Franklin ClearBridge US Smaller Companies UCITS ETF is part of Franklin Templeton’s ongoing commitment to building a comprehensive, client-oriented ETF range. This new product joins the company’s active fixed income and index ETFs, offering investors a complete toolkit to pursue growth, income, and diversification objectives – all through a single, trusted provider. Supported by the strength and resources of one of the world’s largest asset managers, the global ETF platform managed over $50 billion in assets globally as of October 2025.

ClearBridge Investments

ClearBridge Investments, a Franklin Templeton specialist investment manager, is a leading global equity firm committed to generating differentiated and sustainable long-term results through authentic active management. With over 60 years of investment experience, ClearBridge offers a wide range of high-conviction, research-driven strategies covering global developed and emerging markets, local markets, and real assets. As of September 30, 2025, the firm manages over $200 billion in assets. Maintaining an independent investment approach, ClearBridge is headquartered in New York with offices in Baltimore, Calgary, Edinburgh, Fort Lauderdale, Leeds, London, Melbourne, and Sydney. Known for its research-based philosophy, disciplined risk management, and a culture of active engagement, ClearBridge’s investment teams cover approximately 1,500 securities and meet with about 1,000 companies annually. These characteristics underpin its success, particularly in the U.S. small and mid-cap equity segment, reinforcing its position as Franklin Templeton’s premier equity specialist.