Editor’s Note
Franklin Templeton has introduced a new exchange-traded fund, the Franklin Responsibly Sourced Gold ETF (FGLD), which aims to track the price of gold bullion. The fund, with an expense ratio of 0.15%, will be listed on NYSE Arca.
Franklin Templeton announced the launch of the Franklin Responsibly Sourced Gold ETF (FGLD). FGLD is designed to reflect the performance of the price of gold bullion, less the fund’s operating expenses, and is priced at 15 basis points. The shares will trade on NYSE Arca.
The fund defines “responsibly sourced gold” as London Good Delivery gold bars refined on or after June 1, 2012, that have been refined in accordance with the London Bullion Market Association’s (“LBMA”) Responsible Gold Guidance. The LBMA’s Responsible Gold Guidance sets minimum requirements for the entire gold supply chain for all refiners wishing to trade on the London Bullion Market, aiming to ensure that London Good Delivery gold is mined through a verified supply chain that meets certain internationally recognized ethical standards.
Todd Mathias, Head of U.S. ETF Product Strategy, commented on the listing: “As we continue to thoughtfully build our ETF platform for the future, we are excited to be an industry leader with this listing. The LBMA’s responsible sourcing program is designed to protect the integrity of the global gold supply chain by requiring approved refiners to demonstrate their efforts to respect the global environment and combat money laundering, terrorist financing, and human rights abuses. Many clients view gold’s historically low correlation to traditional stocks and bonds as an important diversification tool, and we expect that to continue. We are excited to bring an ESG-focused ETF to this asset class.”
Franklin Templeton’s ETF platform is designed to seek better client outcomes by offering a diverse and innovative suite of products across asset classes and geographies. The platform offers over 50 ETFs in the U.S., providing solutions for a range of market conditions and investment opportunities through actively managed, smart beta, and passively managed ETFs. As of March 31, 2022, the firm’s U.S. ETF platform managed over $12 billion in assets, backed by the strength and resources of one of the world’s largest asset managers.