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 XUDV and Franklin International Dividend Multiplier ETF 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.

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