FLHY Profile
Franklin High Yield Corporate ETF focuses on providing investors with access to high yield corporate debt securities, commonly known as "junk bonds," which offer higher returns compared to investment-grade bonds but come with increased risk. Under normal market conditions, the fund allocates at least 80% of its net assets to high yield corporate debt securities, targeting a broad array of issuers with lower credit ratings that offer potentially higher yields.
The fund has the flexibility to invest up to 100% of its total assets in high yield debt securities, including those issued by both U.S. and foreign companies. This global approach includes securities from developing or emerging markets, expanding the investment universe to capture a diverse range of opportunities. The ability to invest in both U.S. dollar and non-U.S. dollar denominated debt provides further diversification and potential for enhanced returns.
Managed by Franklin Templeton, the ETF leverages the firm's extensive experience in high yield markets to navigate the complexities of credit risk and interest rate fluctuations. The management team employs rigorous credit analysis and market research to identify high yield bonds with favorable risk-reward profiles. This proactive approach helps in selecting securities that align with the fund’s investment objectives while managing potential risks.
The Franklin High Yield Corporate ETF is designed for investors seeking higher income through exposure to high yield bonds, with a focus on maximizing returns while understanding the inherent risks. Its broad investment mandate allows for significant flexibility in security selection and geographic exposure, making it suitable for investors looking to enhance their portfolio's yield and gain access to diverse high yield opportunities.
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