FLCB Profile
The Franklin U.S. Core Bond ETF aims to provide investors with income and capital preservation by focusing on a diversified portfolio of U.S. bonds. Under normal market conditions, the fund allocates at least 80% of its net assets to bonds issued by U.S. entities, which include government securities, corporate debt, and both mortgage-backed and asset-backed securities. The fund's primary investment focus is on high-quality, investment-grade debt securities, ensuring a relatively low risk profile.
The fund’s strategy involves maintaining sector, credit, and duration exposures that are generally in line with those of its benchmark, the Bloomberg U.S. Aggregate Bond Index. This index is a broad measure of the U.S. investment-grade bond market, encompassing a diverse range of debt securities, including government, corporate, and mortgage-backed bonds. By mirroring the index’s characteristics, the fund aims to offer performance that reflects the overall market for U.S. core bonds.
To enhance its investment strategy, the Franklin U.S. Core Bond ETF may utilize a variety of interest rate and credit-related derivatives. These include U.S. Treasury futures, interest rate swaps, and credit default swaps, which are employed to manage interest rate exposure and credit risk effectively. The use of these financial instruments allows the fund to adjust its risk profile and enhance returns based on prevailing market conditions.
As part of Franklin Templeton’s suite of investment products, the Franklin U.S. Core Bond ETF benefits from the firm’s extensive expertise in fixed income investing. The fund’s approach seeks to deliver stable income and capital preservation while providing investors with a well-rounded exposure to the U.S. bond market. Its active management and strategic use of derivatives are designed to adapt to changing market environments and optimize performance relative to the fund's benchmark.
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