Franklin FTSE Europe Hedged ETF (FLEH)

Overview

The described fund is an investment vehicle that primarily allocates its assets in stocks that are part of the FTSE Developed Europe Hedged to USD Index. This index focuses on tracking the performance of large- and mid-capitalization companies from developed European countries, with the additional feature of hedging against the US dollar, thereby potentially reducing currency risk for investors. The fund's strategy involves investing at least 80% of its total assets in the securities that comprise the index, as well as in depositary receipts that represent these securities. This can also be achieved indirectly through investments in the Franklin FTSE Europe ETF, which follows the same or a similar index. The fund aims to replicate the index's performance by closely matching its investment allocations with those of the index's components, providing investors with exposure to the European market while attempting to mitigate currency fluctuation impacts.

Products and Services

The fund provides a variety of products and services designed to meet the needs of investors looking to gain exposure to developed European markets while managing currency risk. These include:

• Investment in Component Securities of the Index: The fund invests a substantial portion of its assets in the actual securities that make up the FTSE Developed Europe Hedged to USD Index. This approach aims to mirror the index's movements and performance as closely as possible, providing investors with a transparent and directly correlated investment option regarding European equities.
• Investment in Depositary Receipts: In addition to direct investments in the component securities, the fund may also invest in depositary receipts representing such securities. These financial instruments allow the fund to hold shares in foreign companies while trading in U.S. dollars, thus offering an effective solution for investors seeking international diversification without dealing with the complexities of foreign currency transactions.
• Indirect Investment Through Franklin FTSE Europe ETF: The fund can also indirectly invest in the European markets by allocating assets to the Franklin FTSE Europe ETF, which is designed to track the performance of the same or a similar index. This method provides an additional layer of diversification and risk management, leveraging the expertise of the Franklin Templeton investments team in navigating the European equity landscape.