Franklin Templeton has unveiled two new Article 8 UCITS ETFs, expanding its lineup of sustainable investment products with a focus on ESG integration and carbon footprint reduction. The Franklin S&P 500 Screened UCITS ETF and the Franklin S&P World Screened UCITS ETF are designed to offer institutional investors cost-efficient exposure to U.S. and global equities while meeting strict sustainability criteria.
Tracking the newly developed S&P 500 Guarded Index and S&P Guarded World Index, the ETFs aim for at least a 10% improvement in both ESG ratings and carbon intensity versus their parent benchmarks. Developed in collaboration with S&P Dow Jones Indices, these indices apply strategic weighting techniques that maintain tight alignment with traditional core equity indices—minimizing performance deviation while enhancing sustainability.
The ETFs apply rigorous exclusion criteria, screening out companies involved in thermal coal, tobacco, controversial weapons, and those flagged for serious violations of ESG principles or the UN Global Compact. This ensures compliance with Article 8 standards while preserving exposure to core equity markets.
Available in 13 European countries and listed on major platforms including XETRA, LSE, Euronext Paris, and Borsa Italiana, the ETFs are priced competitively—0.09% for the S&P 500 version and 0.14% for the global fund—making them accessible for institutional strategies seeking ESG alignment.
“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,” said Caroline Baron, Head of ETF Distribution, EMEA.
