Active ETFs are rapidly becoming a dominant force in asset management. In 2025, they accounted for 86% of all new U.S.-listed ETF launches, underscoring their accelerating adoption.1
Active ETFs give portfolio managers the flexibility to pursue opportunities based on research-driven insights—rather than simply tracking a benchmark like passive ETFs. This approach can help manage issuer-level concentration risk and adapt to changing market conditions.
Managed by Franklin Templeton investment professionals, these strategies are supported by global research teams with more than 75 years of experience delivering active investment solutions across market cycles.
Active ETFs combine professional portfolio management with the structural benefits of the ETF wrapper, including:
Together, these features help make active ETFs a cost-efficient and flexible alternative to traditional mutual funds.
Our Active ETFs
1. Source: Bloomberg. As of December 18, 2025.
2. Source: SEC Adopts New Rule to Modernize Regulation of Exchange-Traded Funds https://www.sec.gov/news/press-release/2019-190.
Mutual Funds and ETFs, offer different choices to access professional investment management, but have important differences including with respect to fees, ownership structure, investment minimums, customization and tax efficiency.
Active ETFs are actively managed and there is no guarantee that the manager’s investment decisions will produce the desired results.
All investments involve risks, including possible loss of principal.
Distributions to shareholders may decline when prevailing interest rates fall or when a fund experiences defaults on debt securities it holds. Changes in the financial strength of a bond issuer or in a bond’s credit rating may affect its value. Stock prices fluctuate, sometimes rapidly and dramatically, due to factors affecting individual companies, particular industries or sectors, or general market conditions. Special risks are associated with foreign investing, including currency fluctuations, economic instability and political developments; investments in emerging markets involve heightened risks related to the same factors.
ETFs trade like stocks, fluctuate in market value and may trade at prices above or below their net asset value. Brokerage commissions and ETF expenses will reduce returns.
For more information on any of our funds, contact your financial professional or download a free prospectus.
Investors should carefully consider a fund’s investment goals, risks, charges and expenses before investing. Download a summary prospectus and/or prospectus, which contains this and other information. Please carefully read a prospectus before you invest or send money.
