Franklin Templeton has announced the launch of two new article 8 ETFs.

The new ETFs are the Franklin S&P 500 Screened UCITS ETF and the Franklin S&P World Screened UCITS ETF. They will invest in large and mid-capitalisation stocks in the US and globally respectively and track the S&P 500 Guarded Index and the S&P Guarded World index which provide equity exposure with enhanced ESG profiles.

The two new funds target a minimum 10% improvement in carbon intensity and a 10% minimum improvement in ESG rating versus their parent indices. Companies involved in controversial businesses such as thermal coal, tobacco, controversial weapons and military arms are excluded as well as those companies which have been involved in serious ESG or UN Global Compact related controversies.

Both new ETFs will be managed by Dina Ting, head of global index portfolio management, and Lorenzo Crosato, ETF portfolio manager.

Rafaelle Lennox, Head of UCITS ETF Product Strategy, Franklin Templeton, said, “We are pleased to have collaborated with S&P in the creation of this unique index range, the S&P Guarded index family. These indices achieve two objectives which include an enhanced ESG and lower carbon emission profile while maintaining minimal performance deviation from the parent indices, S&P 500 and S&P World respectively. This is unique in the market and supports our clients’ evolving needs.”

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