XDAT Profile
The Franklin Exponential Data ETF is an actively managed exchange-traded fund that focuses on investing in equity securities related to its theme of "exponential data." Under normal market conditions, the fund commits at least 80% of its net assets to stocks of companies that are deemed to benefit from or drive the exponential growth of data. This includes a focus on companies involved in data collection, processing, analysis, and application across various sectors. The fund predominantly invests in common stocks, reflecting its aim to capture growth potential within the data-driven economy.
The investment strategy of the Franklin Exponential Data ETF is broad, allowing for investments across all economic sectors and market capitalizations. This approach means the fund may hold shares of large-cap, mid-cap, and small-cap companies that are involved in the data sector, including those based both domestically and internationally. The investment manager has the flexibility to invest in companies from developed markets as well as emerging markets, providing a comprehensive exposure to global opportunities in the data space.
By targeting companies that are integral to the exponential growth and utilization of data, the fund seeks to capitalize on trends such as big data, artificial intelligence, and advanced analytics. These technologies are increasingly pivotal in transforming industries and generating new business opportunities. The fund’s investment process involves identifying and investing in companies that are well-positioned to leverage these trends, potentially offering investors significant growth prospects aligned with the expanding role of data in the global economy.
As a non-diversified fund, the Franklin Exponential Data ETF concentrates its investments within its thematic focus on data-driven companies. This concentrated investment approach allows for deeper exposure to the exponential data sector but may also entail higher risk compared to more diversified investment strategies. Investors should consider the potential for increased volatility and sector-specific risks associated with the fund's focus on exponential data when evaluating their investment options.
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