12-05-2025
Franklin Templeton Unveils New US Mega Cap ETF in Europe
Franklin Templeton has expanded its U.S. equity suite in Europe with the launch of a U.S. megacap ETF.
The Franklin US Mega Cap 100 UCITS ETF (USMC) will be listed on the London Stock Exchange (LSE), Deutsche Borse, Euronext Paris and Borsa Italiana with a total expense ratio (TER) of 0.09%.
USMC tracks the Solactive US Mega Cap 100 Select index, which offers exposure to 100 largest companies in the Solactive GBS United States 500 index.
The index's top holdings include: Nvidia Corp. (NVDA), Apple Inc. (AAPL), Inc. (AMZN), Microsoft Corp. (MSFT) and AT&T Inc. (T).
Caroline Baron (pictured), head of ETF distribution for EMEA at Franklin Templeton, said, 'Looking back 30 years, the largest 100 securities in U.S. equities have captured greater market upside than a broader index such as the S&P 500.
'This ETF can be utilised by investors as a nimble tool to dial up U.S. equity market exposure or quickly implement a risk-on trade, offering a distinct risk-return profile.'
ETFs that offer a slice of the "top" constituents in a given index are on the rise in Europe. BlackRock Inc. (BLK) launched the iShares S&P 500 Top 20 UCITS ETF (SP20) in November of 2024, capturing the largest companies within the S&P 500 index.
The iShares NASDAQ 100 Top 30 UCITS ETF (QTOP), which tracks the 30 largest companies in the Nasdaq-100 index, launched shortly thereafter.
Elsewhere, Franklin Templeton launched an S&P 500 ETF and an S&P World ETF with ESG tilts. The Franklin S&P 500 Screened UCITS ETF (SP5S) and Franklin S&P World Screened UCITS ETF (SPWR) were listed in April 2025 with total expense ratios of 0.09% and 0.14%, respectively.
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