A Revolution in Innovation

Ahmed Farooq, CIMA®, CFP

Ahmed Farooq, CIMA®, CFP
Vice President - ETF Business Development at Franklin Templeton Canada

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We will all remember 2020 for many reasons, but key amongst them was how our dependence on technology was undeniably set in stone.

It has been amazing to see just how fast we have been able to pivot to the digital world, bringing some sense of normalcy to both our personal and work lives.  

Innovation is accelerating at a rapid pace, driving economic output and productivity gains despite the harsh business conditions brought on by widespread lockdowns. In certain sectors such as IT and finance, the shift to working from home has not hindered firms to any significant degree. In fact, companies such as Shopify—the best performing stock in the S&P/TSX Composite in 2020—have announced that working from home would be the new normal for their employees going forward, regardless of the pandemic.

It’s clear that we are living in a time of great economic and technological upheaval. This seismic change creates plenty of opportunities for investment, over both the short and long term. The innovation we are seeing today will shape the economy of the future, but as investors, how do we capitalize on the trends that are already dictating market growth?

Matt Moberg, portfolio manager for the Franklin Innovation strategy, believes we are entering a fourth industrial revolution, a period where companies are blurring the lines between the physical, digital, and biological spheres.

It is in this epoch of ingenuity that we are excited to announce the launch of the Franklin Innovation Active ETF (TSX:FINO). This strategy (also available as a mutual fund) invests in companies that are driving innovation, pioneering new technologies, new products, new ideas and new methodologies. These firms are at the forefront of an evolving global economy, whether it is in e-commerce, genetic breakthroughs, intelligent machines, new finance, or exponential data.

Such themes will be crucial to the future of the global economy, and FINO provides the access investors may need to stay ahead of the curve. This ETF utilizes the same strategy as Franklin DynaTech Fund, which was launched in the U.S. in 1968 and is managed by our U.S.-based Franklin team.

If you would like to learn more about the Franklin Innovation Active ETF, please reach out to your local Franklin Templeton Sales rep.

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Innovation in the ETF Ecosystem

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A Revolution in Innovation

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Fixing fixed income - Are passive fixed income ETFs broken?

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Go Global with our new lineup of ETFs

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What Are the Risks?

Commissions, management fees and expenses may all be associated with investments in ETFs. Investors should carefully consider an ETF’s investment objectives and strategies, risks, fees and expenses before investing. The prospectus and ETF facts contain this and other information. Please read the prospectus and ETF facts carefully before investing. ETFs trade like stocks, fluctuate in market value and may trade at prices above or below the ETF’s net asset value. Brokerage commissions and ETF expenses will reduce returns. Performance of an ETF may vary significantly from the performance of an index, as a result of transaction costs, expenses and other factors. The indicated rates of return are the historical annual compounded total returns including changes in share or unit value and reinvestment of all dividends or distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any security holder that would have reduced returns. ETFs are not guaranteed, their values change frequently and past performance may not be repeated.

Ahmed Farooq’s comments, opinions and analyses are for informational purposes only and should not be considered individual investment advice or recommendations to invest in any security or to adopt any investment strategy. Because market and economic conditions are subject to rapid change, comments, opinions and analyses are rendered as of the date of the posting and may change without notice. The material is not intended as a complete analysis of every material fact regarding any country, region, market, industry, investment or strategy.

All investments involve risks, including the possible loss of principal. Investments in foreign securities involve special risks including currency fluctuations, economic instability and political developments. Investments in emerging markets, of which frontier markets are a subset, involve heightened risks related to the same factors, in addition to those associated with these markets’ smaller size, lesser liquidity and lack of established legal, political, business and social frameworks to support securities markets. Because these frameworks are typically even less developed in frontier markets, as well as various factors including the increased potential for extreme price volatility, illiquidity, trade barriers and exchange controls, the risks associated with emerging markets are magnified in frontier markets. Stock prices fluctuate, sometimes rapidly and dramatically, due to factors affecting individual companies, particular industries or sectors, or general market conditions.