Franklin Sustainable International Equity ETF

Frequently Asked Questions About MCSE

What does MCSE invest in?

MCSE holds a high-conviction portfolio of 20 to 40 non-US equities of any market capitalization. It expects to invest in at least three countries and may include depositary receipts, preferred stocks, convertibles, and other ETFs in its equity investments. The fund uses a proprietary analytical framework to assign risk ratings according to various ESG factors related to governance and sustainability. Companies with high-risk ratings are filtered out. The fund also screens out companies significantly involved in tobacco, weapons, fossil fuels, and mining, as well as firms classified under metals and mining-related industries in GICS. MCSE focuses on reasonably valued companies with a strong history or potential for high and durable returns, as determined by the advisers evaluation of long-term potential. The fund aims to make a long-term capital commitment on its investments. On October 31, 2022, MCSE converted from a mutual fund to an actively managed ETF structure, starting with $30 million in net assets.

What is the expense ratio of MCSE?

Franklin Sustainable International Equity ETF (MCSE) charges an expense ratio of 0.59%. This is the annual fee deducted from fund assets to cover management and operations.

How big is MCSE?

Franklin Sustainable International Equity ETF (MCSE) manages $3.0M in total assets. AUM determines bid-ask liquidity and the fund's vulnerability to closure — funds below ~$50M are at higher risk of liquidation.

Is MCSE actively managed or an index fund?

MCSE is actively managed — the manager selects holdings rather than tracking an index. Active funds typically charge higher expense ratios than index funds (MCSE's is 0.59%) in exchange for the discretion to over- or under-weight positions.

When was MCSE launched?

Franklin Sustainable International Equity ETF (MCSE) launched in November 2015 and is managed by Franklin Templeton.

How has MCSE performed?

MCSE's total return — price change plus reinvested distributions — is charted at the top of this page. Switch the price chart to Total Return and pick a 1-year, 3-year, 5-year, or 10-year window to read the compound annual growth rate (CAGR) over each horizon.