Franklin Templeton has launched two new Article 8 UCITS ETFs, expanding its ESG-focused product line for UK and European investors.
The new offerings—the Franklin S&P 500 Screened UCITS ETF and the Franklin S&P World Screened UCITS ETF—add to the firm’s growing suite of sustainable index-tracking funds. With the latest additions, Franklin Templeton now has 17 UCITS ETFs classified under Article 8 or 9 of the Sustainable Finance Disclosure Regulation (SFDR).
The funds are being listed on major European exchanges in April 2025, including Deutsche Börse, London Stock Exchange, Euronext Paris, and Borsa Italiana. Distribution will span countries, including the UK, France, Germany, and the Netherlands.
The ETFs aim to offer efficient access to US and global equities through the S&P 500 Guarded Index and the S&P Guarded World Index. These screened benchmarks incorporate ESG criteria while maintaining a low tracking error relative to the broader S&P 500 and S&P World indices.
Franklin Templeton head of ETF distribution EMEA Caroline Baron said, “These new ETFs offer a cost-efficient and transparent way to access core equity exposures with enhanced ESG profiles and reduced carbon footprint, keeping a tight tracking to traditional core indices. These ETFs would be suitable for investors looking to invest in core exposures that are article 8 compliant and those seeking a tight tracking versus the traditional benchmarks such as S&P 500 and S&P World. These ETFs could be used with traditional core solutions to complement them for example.”
Vice president of ETF distribution Lotfi Ladjemi added, “The Franklin S&P 500 Screened UCITS ETF and Franklin S&P World Screened UCITS ETF have been developed to support strategic asset allocation needs, offering cost-efficient, sustainable access to screened benchmark indices. These ETFs align with the growing investor focus on integrating ESG considerations without compromising on index performance.”
The funds offer several notable features. They are designed to deliver broad market returns with minimal deviation from standard benchmarks. ESG enhancements include at least a 10% improvement in both carbon intensity and ESG scores relative to their parent indices. They also exclude companies involved in controversial sectors such as tobacco, thermal coal, and weapons manufacturing, along with firms flagged for significant ESG-related controversies or UN Global Compact violations.
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