It is often said that criticism is the price of success. This certainly appears to be the case with ETFs, which have enjoyed tremendous growth over the past few years but are the recipient of frequent criticism. Criticism has come from various quarters, but there is some unease that it often comes from individuals outside the industry who perhaps do not grasp all the technical intricacies of the product or from parties whose vested interests may be under threat. Industry experts from HANetf, Franklin Templeton, Lyxor and State Street Global Advisers scrutinise the latest allegations.

Franklin Templeton is set to launch two actively managed fixed income ETFs in Europe. The funds, which will initially list on the Deutsche Börse and LSE, are the Franklin Liberty Euro Short Maturity UCITS ETF and the Franklin Liberty USD Investment Grade Corporate Bond UCITS ETF. David Zahn, head of European fixed income at Franklin Templeton Investments, said, “As active managers, we have the flexibility to pursue investment opportunities that are beyond the fund’s benchmark index to help identify the most attractive securities to invest in.”

Franklin Templeton Investments has launched three new actively managed fixed income ETFs on Cboe BZX Exchange – the Franklin Liberty Senior Loan ETF (FLBL US), Franklin Liberty High Yield Corporate ETF (FLHY US) and Franklin International Aggregate Bond ETF (FLIA US). Patrick O’Connor, head of global ETFs, Franklin Templeton, said, “As investors look to get more income out of their fixed income allocation, these new ETFs enable them to access additional fixed income sectors globally in a targeted way.”

Franklin Templeton has extended its reach into Europe by cross-listing five smart beta ETFs on the SIX Swiss Exchange. The ETFs, targeting global, US, or European equities, are part of the Franklin Liberty Shares range and consist of multi-factor and quality income strategies. They are already available on the London Stock Exchange, Deutsche Börse and Borsa Italiana.

Franklin Templeton Investments has added four new ETFs to its line-up of passively managed country and regional funds, introducing exposures to equities listed in India, Russia, Asia Pacific ex-Japan, and Switzerland. Patrick O’Connor, head of global ETFs at Franklin Templeton Investments, said, “Our suite of passive country- and region-specific ETFs has been well received in the marketplace, as clients look for low-cost vehicles that can be used to access different exposures for their portfolios or solutions capabilities.”

Franklin Templeton has continued its expansion into Europe by cross-listing its five recently launched European domiciled ‘LibertyShares’ ETFs onto Italy’s Borsa Italiana. The range includes three multi-factor ETFs providing global, US and emerging markets exposure, and a pair of quality dividend ETFs targeting global and European equities. Patrick O’Connor, global head of ETFs for Franklin Templeton, said Italy was a “strategic market” for the firm and that the Borsa Italiana listings were “a fundamental step towards our aim of creating a global ETF platform.”

Franklin Templeton Investments Canada has launched two smart beta ETFs on Toronto Stock Exchange, providing exposure to quality dividend-paying stocks globally and emerging market equities selected using a multifactor approach. Duane Green, president and CEO, Franklin Templeton Investments Canada, said, “In building out our ETF platform, we are now offering advisors and investors a range of options to help diversify a Canadian-focused portfolio.”

ETF flows have started to chase the fund fee cuts that have become a staple of the industry in recent months, according to new research released by FactSet. The report comes in the wake of numerous announcements in the last few months of fee reductions and new ultra-low-cost funds from major players, including Charles Schwab, State Street Global Advisors, Franklin Templeton, Deutsche Asset Management and Invesco PowerShares.

Franklin Templeton has unveiled its first fully passive ETFs, including 14 single-country and two regional funds. The ETFs, which track market cap-weighted indices designed by FTSE Russell, are scheduled to be listed on NYSE Arca on 6 November 2017. Patrick O’Connor, global head of ETFs for Franklin Templeton, said: “Our new suite of passive ETFs will provide a cost-effective way to access beta solutions, further rounding out our offerings for US investors.”

Franklin Templeton has added to its line-up of Europe-listed ETFs with the launch of the Franklin Templeton LibertyQ Emerging Markets UCITS ETF, tracking the performance of large- and mid-cap emerging markets stocks selected using a multi-factor approach. Vivek Kudva, head of EMEA and India at Franklin Templeton, said, “We think this new strategy can be utilised as a strategic and long-term allocation for those investors looking for an alternative way of accessing emerging markets as part of their diversified portfolio.”