Franklin Templeton Unveils New US Mega Cap ETF in Europe
- Franklin Templeton has expanded its US equity suite in Europe.
- The new fund captures 100 US mega-cap stocks from the Solactive GBS United States 500 index.
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 Targets Top US Stocks
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), Amazon.com 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.”
Large-Cap ETFs on the Rise
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.
This article was originally published at etf.com sister publication ETF Stream.
