Franklin FTSE Emerging Markets UCITS ETF

Issuer: Franklin Templeton

Asset Class: Equity

TER: 19bps

Trading Currency: GBP

Pays Income: False

Listing Date: 08 May 2026

Ticker: EMDS

ISIN: IE000GTF7GF4

This investment vehicle offers a straightforward and cost-effective way to gain broad exposure to the equity markets of developing nations. The fund's primary objective is to replicate the performance of a market-capitalisation-weighted index comprising large and mid-cap stocks from over 20 emerging market countries. By employing a physical replication strategy, the fund directly holds the underlying securities of the index, providing investors with transparent ownership of the constituent companies. This approach aims to deliver returns that closely mirror the benchmark, before accounting for fees and expenses, making it a suitable core holding for investors seeking to participate in the growth story of emerging economies.

Investing in emerging markets presents a compelling opportunity for long-term growth, often exceeding that of developed nations. This potential is fueled by powerful secular trends such as favourable demographics, rapid urbanisation, and the expansion of the consumer middle class. The portfolio is diversified across a wide array of countries, including economic powerhouses like China, Taiwan, India, and Brazil, and spans various sectors from technology and financials to consumer goods. However, this higher growth potential is accompanied by elevated risks, including increased market volatility, currency fluctuations, and geopolitical uncertainties. This particular fund is structured as a distributing share class, meaning it aims to pay out dividends received from its underlying holdings to investors on a semi-annual basis. This feature may appeal to those seeking a potential income stream in addition to capital appreciation.