Franklin Templeton's New ETFs Aim To Multiply Dividends...And Investor Confidence

Franklin Templeton kicked off 2025 with a bang, launching two ETFs that aim to bring a fresh approach to dividend income investing. Meet Franklin U.S. Dividend Multiplier ETF (NYSE:XUDV) and Franklin International Dividend Multiplier ETF (NYSE:XIDV), both curated to multiply dividend income.

Todd Mathias, head of U.S. ETF Product Strategy at Franklin Templeton, summed it up. “With competitive expense ratios of 0.09% for XUDV and 0.19% for XIDV, these ETFs provide cost-effective access to strategies that combine enhanced dividend income with next generation portfolio design, serving as a compelling option for investors seeking access to long-only equity income. These strategies are particularly well-suited for fee-based advisors, sophisticated clients, and general retail investors seeking efficient, diversified equity solutions."

A Closer Look At The Mechanics

The U.S. Dividend Multiplier ETF and the International Dividend Multiplier ETF don't just screen for high-yield stocks, they take things one level up. These ETFs have integrated New Frontier's proprietary optimization techniques to enhance dividend income and risk-managed capital appreciation.

The Franklin U.S. Dividend Multiplier ETF tracks the VettaFi New Frontier U.S. Dividend Select Index, which yielded 4.1% as of Jan. 21 and focuses on U.S.-based dividend opportunities. Meanwhile, the Franklin International Dividend Multiplier ETF mirrors the VettaFi New Frontier International Dividend Select Index, which delivered 7.5% yield as of Jan. 21.

Robert Michaud, chief investment officer at New Frontier, describes these ETFs as a game-changer. "By applying our time-tested optimization to dividend strategies, we’ve built an index to pursue enhanced dividend yield coupled with risk-managed capital appreciation. This launch is setting a new standard in the ETF industry through effective investment technology. We’re confident these ETFs will redefine expectations for dividend-focused investments and demonstrate the power of advanced optimization in portfolio construction.”

Dividend-focused ETFs are nothing new, but the two fresh ETFs by Franklin Templeton aim to bridge the gap between high yields and risk-managed growth.

See Next: Leuthold Group Introduces Select Industries ETF, Focus On Companies Ready To Outperform

Photo: Shutterstock