The objective is high level of current income and higher risk adjusted returns relative to its benchmark. The ETF invests primarily in taxable investment grade securities, including securities issued by the U.S. Government, its agencies and instrumentalities, mortgage-backed and other asset-backed securities, corporate obligations, and municipal securities.
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Mutual fund giant Franklin Templeton Investments (BEN) recently launched their first ETF, the Franklin Short Duration U.S. Government ETF (FTSD) with an expense ratio of 0.30%.
This actively managed fund focuses on short term securities issued or guaranteed by the U.S., but also invests across other short term debt sectors; including government and government agency debt, Treasury Inflation-Protected Securities, Adjustable Rate Mortgages and Mortgage-Backed Securities.
"This actively managed ETF can take advantage of opportunities outside of the index (Barclays U.S. Government 1-3 Year Index), which has a much narrower opportunity set," said Roger Bayston, the fund's lead portfolio manager, in a press release.