Franklin Plans Three ETF Conversions, Including U.S. Fund Overhaul

Franklin Templeton plans to reorganize three internal-use mutual funds into ETFs during 2027. Its International and Emerging Markets Core Equity funds will convert into newly created enhanced-equity ETFs, while Franklin U.S. Core Equity will merge into an existing ETF that will be renamed Franklin Core U.S. Enhanced Equity ETF and switch from a multifactor index strategy to active management. Headline ETF fees will be 0.20%, 0.30% and 0.15%, respectively, but will be permanently waived for existing fund investors. The emerging-markets conversion may also require portfolio sales and incur transaction costs.