The ETF Rule 'Opens Doors': Templeton's Mann

The video discusses the performance and management of low volatility ETFs, focusing on a specific actively managed ETF that uses fundamental stock picking to reduce volatility. It compares this ETF with SPLV and USMV, highlighting its tech sector exposure and performance edge. David Mann from Franklin Templeton explains their approach to leveraging active expertise and fundamentals for a smoother investment experience. The discussion also covers investor behavior, volatility factors, and Franklin Templeton's strategy for mutual funds and ETFs.

What gives the actively managed low volatility ETF an edge over SPLV and USMV?

• More diversified sectors

• Lower management fees

• Higher exposure to technology

• Higher exposure to utilities

According to David Mann, what is crucial for creating a stable low volatility ETF?

• Reducing management fees

• Focusing on short-term gains

• Leveraging active expertise and fundamental stock picking

• Investing heavily in tech stocks

What is a common mistake investors make with low volatility stocks, according to David Kostin?

• Focusing on stocks with muted price swings

• Choosing stocks with high volatility

• Investing in stocks with stable earnings growth

• Ignoring sector constraints

How does Franklin Templeton utilize its active managers in their ETF products?

• By focusing solely on passive management

• By creating entirely new management teams

• By leveraging the expertise of their mutual fund managers

• By outsourcing management to third parties

What operational aspect of ETFs does Franklin Templeton emphasize to investors?

• ETFs are only suitable for short-term investments

• There is no operational difference between active and passive ETFs

• ETFs offer less liquidity than mutual funds

• ETFs have higher fees than mutual funds