Franklin Templeton has launched a US equity ETF which tilts towards companies with high dividend yields.

The Franklin US Dividend Tilt UCITS ETF (UDVD) debuts with a total expense ratio (TER) of 0.12% and is listed on Deutsche Boerse and the London Stock Exchange, with listings on Euronext Paris and Borsa Italiana to follow.

UDVD tracks the Morningstar US Dividend Enhanced Select Index-NR which seeks to maintain a low tracking error relative to the broad US market, while tilting towards companies offering high dividend yields.

Dina Ting, head of global index portfolio management at Franklin Templeton, who will manage the strategy alongside Lorenzo Crosato, ETF portfolio manager, said: “Enhanced yield can help investors weather potential volatility given uncertainties over major policy changes, such as tariffs and their impact on inflation and balance of trades.

“Our rules-based strategy, featuring a relatively low active risk compared to the broad market, can be an ideal core or satellite allocation for investors seeking diversified US market exposure.”

Caroline Baron (pictured), head of ETF distribution, EMEA, added that the product is “particularly suited” to investors looking to generate more income from US equities – generally known for lower yields and higher capital appreciation versus other developed markets.

Franklin Templeton recently introduced a Saudi Arabia ETF and received approval for a tokenised UCITS fund on a public region.