YLDE | ClearBridge Dividend Strategy ESG ETF

YLDE ISSUER

The YLDE, managed by Franklin Templeton, is a fund that, under normal circumstances, allocates at least 80% of its net assets to dividend-paying stocks or similar instruments, adhering to specific financial and environmental, social, and governance (ESG) criteria. The subadviser employs a proprietary research approach developed over three decades, utilizing a fundamental, bottom-up methodology emphasizing company analysis, management, and stock selection. The fund excludes companies involved in the tobacco and coal industries and those deriving a significant portion of their revenue from controversial arms or gambling. ESG evaluations are integrated into the investment assessment, with sector-specific analysis assigning a proprietary ClearBridge ESG rating (A, AA, AAA) to each company. The subadviser engages companies on ESG matters through various means, such as meetings, proprietary methodologies, and proxy voting. The fund primarily invests in common stocks, including foreign issuers, focusing on high-quality companies with attractive dividends, potential dividend growth, and strong risk-adjusted returns based on both financial and ESG attributes. The subadviser commits to selling securities if they no longer meet financial or ESG criteria.

YLDE DIVIDEND

YLDE, managed by Franklin Templeton, is a dividend-focused fund that strategically invests at least 80% of its net assets in dividend-paying stocks or similar instruments. The fund aims to provide investors with a combination of income growth and capital appreciation over time. The portfolio managers focus on companies considered high quality, with an emphasis on those paying attractive dividends and possessing the potential for significant dividend growth. YLDE's investment strategy aligns with its financial and environmental, social, and governance (ESG) criteria, incorporating a comprehensive evaluation that integrates ESG factors into the assessment of each company's investment worthiness. By capitalizing on the convergence between a company's investment potential and its ESG attributes, the fund seeks to deliver consistent and competitive risk-adjusted returns to investors, making it an appealing option for those seeking a balance between income generation and responsible investing.

YLDE TRACKING

YLDE, managed by Franklin Templeton, employs a tracking strategy that involves a rigorous and proprietary research approach to monitor the financial and environmental, social, and governance (ESG) performance of companies within its portfolio. The subadviser utilizes a bottom-up research methodology with over three decades of experience, emphasizing company analysis, management, and stock selection. The fund is committed to tracking and evaluating ESG factors on a sector-specific basis, assigning proprietary ClearBridge ESG ratings (A, AA, AAA) to each company. This tracking process includes ongoing engagement with companies through ESG meetings, applying proprietary methodologies to assess progress, and exercising proxy voting. YLDE's tracking strategy ensures that investments align with established ESG criteria, allowing the fund to make informed decisions and maintain a portfolio that meets both financial and sustainability objectives. The subadviser's dedication to ongoing reviews and assessments ensures that the fund remains true to its tracking strategy and provides investors with a transparent and accountable investment approach.

YLDE CORRELATION

YLDE, managed by Franklin Templeton, adopts a correlation-aware investment strategy that considers the interplay between various factors in financial markets. The fund primarily invests in dividend-paying stocks and instruments with economic characteristics similar to dividend-paying stocks, all while adhering to stringent financial and environmental, social, and governance (ESG) criteria. The subadviser employs a fundamental, bottom-up research approach that analyzes correlations between company performance, management decisions, and stock selection. By emphasizing a correlation-aware strategy, the fund seeks to optimize risk-adjusted returns and enhance portfolio diversification. YLDE's commitment to evaluating correlations extends beyond financial metrics to encompass ESG considerations, ensuring that investments align with sustainable and responsible practices. This correlation-focused approach reflects the fund's dedication to providing investors with a well-rounded investment strategy that balances income generation, capital appreciation, and risk management in a dynamically correlated market environment.

YLDE SECTOR

YLDE, managed by Franklin Templeton, demonstrates a sector-focused investment strategy that emphasizes thorough analysis within specific industries. The subadviser employs a proprietary research approach, grounded in over three decades of experience, to assess and allocate investments based on sector-specific considerations. The fund's sector analysts conduct an in-depth evaluation of companies within their respective sectors, incorporating financial criteria as well as environmental, social, and governance (ESG) considerations. YLDE assigns proprietary ClearBridge ESG ratings (A, AA, AAA) to companies, reflecting their commitment to responsible investing within each sector. This sector-specific approach enables the fund to tailor its investments, ensuring that it remains aligned with both financial objectives and sustainable business practices. By combining a deep understanding of industry dynamics with a focus on ESG factors, YLDE strives to provide investors with a well-informed and sector-sensitive investment strategy.

YLDE EXPOSURE

YLDE, managed by Franklin Templeton, strategically manages its exposure by primarily investing in common stocks, preferred securities, convertible securities, and securities of other investment companies and real estate investment trusts (REITs). The fund may also invest in equity securities of foreign issuers directly or through depositary receipts. YLDE focuses on large-cap companies but maintains flexibility to invest in companies of any size. This exposure management aligns with the fund's overarching goal of seeking attractive dividends, potential for dividend growth, and consistent risk-adjusted returns. The subadviser employs a fundamental analysis approach to identify high-quality companies with strong balance sheets, dominant market positions, and reasonable valuations. YLDE's exposure management extends beyond financial metrics, as it integrates environmental, social, and governance (ESG) criteria into its investment decision-making process, ensuring a balanced and diversified portfolio that aligns with responsible investing principles.