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Franklin Templeton Launches the Franklin Small Cap Enhanced ETF (FSML)
SAN MATEO, Calif., December 11, 2025--Franklin Templeton, a global investment leader with more than $1.6 trillion in assets under management, today announced the launch of the Franklin Small Cap Enhanced ETF (NYSE Arca: FSML), a new addition to the firm’s expanding active ETF lineup in the United States. FSML seeks long-term capital appreciation using a systematic multi-factor investment framework that incorporates a proprietary conviction factor leveraging the insights from Franklin Templeton’s
About this update from Franklin Resources, Inc.
[{"type":"text","content":"Actively managed FSML blends a proprietary multi-factor model with conviction insights from Franklin Templeton’s specialist investment managers","length":143,"tagName":"p","attribs":{}},{"type":"text","content":"SAN MATEO, Calif., December 11, 2025--(BUSINESS WIRE)--Franklin Templeton, a global investment leader with more than $1.6 trillion in assets under management, today announced the launch of the Franklin Small Cap Enhanced ETF (NYSE Arca: FSML), a new addition to the firm’s expanding active ETF lineup in the United States. FSML seeks long-term capital appreciation using a systematic multi-factor investment framework that incorporates a proprietary conviction factor leveraging the insights from Franklin Templeton’s specialist managers—an approach designed to offer a more informed and adaptive way to access small-cap opportunities.","length":635,"tagName":"p"},{"type":"text","content":"FSML is managed by Adrian H. Chan, CFA, Eric Johnson, CFA, and Jacqueline Kenney, CFA, members of the Franklin Templeton Investment Solutions (FTIS) team, the firm’s multi-asset and quantitative research unit. The fund invests primarily in equity securities of small-capitalization companies within the Russell 2000 Index universe. Its investment process is built on a proprietary multi-factor model that evaluates companies across quality, value, sentiment, and alternative signals, while incorporating a conviction signal derived from holdings-level views of four Franklin Templeton Specialized Investment Managers: ClearBridge Investments, Franklin Templeton, Royce Investment Partners, and Putnam Investment Management.","length":723,"tagName":"p"},{"type":"text","content":"A defining feature of the strategy is the proprietary conviction factor, which is derived from benchmark-relative positioning and contributions to risk across the sub-advisors’ small-cap portfolios. These insights are incorporated alongside the insights derived from the other four factors leveraged in the portfolio, creating a more nuanced portfolio construction process than traditional factor-only approaches. The strategy is generally rebalanced monthly to maintain its targeted exposures.","length":494,"tagName":"p"},{"type":"text","content":""Small-cap markets are shaped by both broad structural forces and company-specific dynamics," said Adrian Chan, Head of Quantita...