Franklin Templeton Launches Templeton Emerging Markets Debt ETF (TEMD)

New actively managed ETF is designed to bridge U.S. dollar and local currency emerging markets debt exposures

SAN MATEO, Calif.--(BUSINESS WIRE)--Franklin Templeton, a global investment leader, today announced the launch of the Templeton Emerging Markets Debt ETF (NYSE Arca: TEMD), an actively managed exchange-traded fund designed for investors seeking interest income and capital appreciation from emerging market debt while aiming to manage currency risk more dynamically.

TEMD expands Franklin Templeton’s actively managed fixed income ETF lineup, offering an emerging markets debt strategy positioned between fully U.S. dollar–denominated and fully local currency–denominated approaches. Unlike indexed strategies that are structurally tied to one currency segment, TEMD is designed to provide access across both segments of the market, offering the potential for attractive yield while seeking to actively manage currency exposure relative to local currency only strategies.

“The Templeton Global Macro team has over three decades of experience navigating emerging markets and evaluating interest-rate, currency, and sovereign credit spread opportunities in this sector on a country-by-country basis,” said Christine Yuhui Zhu, Co-Portfolio Manager of TEMD and member of the Templeton Global Macro Team. “TEMD is designed to give investors a research-driven, active approach that can allocate across both the hard and local currency segments while staying disciplined about risk.”

TEMD is built to combine a hard-currency anchor with flexibility to add select local currency and EM-currency opportunities, while using derivatives to help manage currency, rate and credit exposures. Under normal market conditions, the fund invests at least 80% of its net assets in emerging market debt securities and in derivatives and other instruments that provide similar investment exposure. The fund also invests at least 50% of its net assets in U.S. dollar denominated and euro denominated debt securities issued by emerging market countries included in the J.P. Morgan EMBI Global Diversified Index (and related derivatives). To the extent the fund invests in euro denominated debt securities, its euro currency exposure may be hedged back to the U.S. dollar, and the fund may use derivatives, including currency and cross-currency forwards and currency options, to efficiently adjust and manage exposures across currencies, interest rates, duration, and credit.

The fund applies a holistic, research-intensive approach that leverages multiple lenses, including in-depth country analysis, macroeconomic modeling, and local perspectives to uncover high conviction investment opportunities as identified by the portfolio management team. Alongside Christine Yuhui Zhu, additional portfolio managers from the Templeton Global Macro Team include Michael Sheehan, Vivek Ahuja, and Jaap Willems.

“We continue to see strong demand for research-driven active fixed income delivered through the ETF vehicle, especially in areas where investors want more flexibility than traditional index exposures can provide,” said David Mann, Head of ETF Product and Capital Markets at Franklin Templeton.

This launch represents a strategic expansion of Franklin Templeton’s fixed income ETF offerings and enhances the firm’s growing lineup of ETFs, which now spans 88 ETFs across active, passive, and smart beta strategies, with over $60 billion in ETF assets under management globally, as of January 9, 2026.

For more information, please visit Franklin Templeton ETFs and ETPs.

About Franklin Templeton

Franklin Templeton is a trusted investment partner, delivering tailored solutions that align with clients’ strategic goals. With deep portfolio management expertise across public and private markets, we combine investment excellence with cutting-edge technology. Since our founding in 1947, we have empowered clients through strategic partnership, forward-looking insights, and continuous innovation – providing the tools and resources to navigate change and capture opportunity.

To learn more, visit franklintempleton.com and follow us on LinkedIn.

Franklin Resources, Inc. [NYSE: BEN]

Important Information

ETFs and ETPs trade like stocks, fluctuate in market value and may trade at prices above or below the ETFs/ETPs net asset value. Brokerage commissions and ETF/ETP expenses will reduce returns.

ETF/ETP shares may be bought or sold throughout the day at their market price, not their Net Asset Value (NAV), on the exchange on which they are listed. Shares of ETFs/ETPs are tradable on secondary markets and may trade either at a premium or a discount to their NAV on the secondary market.

What are the risks?

All investments involve risks, including possible loss of principal. International investments are subject to special risks, including currency fluctuations and social, economic and political uncertainties, which could increase volatility. These risks are magnified in emerging markets. Fixed income securities involve interest rate, credit, inflation and reinvestment risks, and possible loss of principal. As interest rates rise, the value of fixed income securities falls. Low-rated, high-yield bonds are subject to greater price volatility, illiquidity and possibility of default. Derivative instruments can be illiquid, may disproportionately increase losses, and have a potentially large impact on performance. Currency management strategies could result in losses to the fund if currencies do not perform as expected. To the extent the portfolio invests in a concentration of certain securities, regions or industries, it is subject to increased volatility. Liquidity risk exists when securities or other investments become more difficult to sell, or are unable to be sold, at the price at which they have been valued. The portfolio is, or could become, non-diversified and may invest in a relatively small number of issuers, which may negatively impact the performance and result in greater fluctuation in value. The manager may consider environmental, social and governance (ESG) criteria in the research or investment process; however, ESG considerations may not be a determinative factor in security selection. In addition, the manager may not assess every investment for ESG criteria, and not every ESG factor may be identified or evaluated. The fund is newly organized, with a limited history of operations. These and other risks are discussed in the fund's prospectus.

Before investing, carefully consider a fund's investment objectives, risks, charges and expenses. You can find this and other information in each prospectus, or summary prospectus, if available, at www.franklintempleton.com. Please read it carefully.

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