Franklin European Quality Dividend UCITS ETF

Issuer: Franklin Templeton

Asset Class: Equity

TER: 25bps

Trading Currency: USD

Pays Income: False

Listing Date: 04 Sep 2025

Ticker: DVDE

ISIN: IE000IMGE5W5

This fund offers targeted exposure to the European equity market through a strategy that focuses on high-quality companies with a history of attractive and sustainable dividend payments. By tracking a specialised factor-based index, the fund moves beyond traditional market-cap weighting to a more discerning, rules-based selection process. The core objective is to identify and invest in European firms that not only exhibit strong financial health but also consistently reward their shareholders. This approach is designed for investors looking to access the potential for capital growth from European stocks while incorporating a defensive layer through the quality and value characteristics inherent in high-dividend-paying companies.

The underlying index employs a multi-factor methodology, first screening a broad universe of European stocks for specific quality metrics. These include high profitability, as measured by return on equity, and financial robustness, indicated by low leverage and stable earnings growth. From this refined pool of high-quality companies, the index then selects constituents that offer high and persistent dividend yields. This dual-factor approach aims to capture the premium associated with both quality and value factors, seeking to provide a more resilient performance profile across different market cycles. The portfolio is fully physically replicated, meaning it holds the actual shares of the underlying companies, offering transparency and direct ownership.

As an accumulating share class, all dividend income generated by the portfolio's holdings is automatically reinvested back into the fund, allowing investors to benefit from the power of compounding over the long term. This makes it particularly suitable for those with a long-term investment horizon who are focused on capital growth rather than immediate income generation. The strategy provides a core European equity holding that is diversified across multiple countries and sectors, while its systematic focus on quality and dividends offers a potential for enhanced risk-adjusted returns compared to the broader market.