Products May 4, 2017

Investment Products and Service Launches

Franklin Templeton Launches Strategic Beta ETFs and Vanguard Reduces Expense Ratios on Stock and Bond Funds.
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Franklin Templeton Launches Strategic Beta ETFs 

Franklin Templeton Investments has added three new strategic beta exchange-traded funds (ETFs) to its Franklin LibertyShares lineup. With these additions, the firm’s LibertyQ strategic beta ETF suite now includes U.S. equity-focused products investing in companies with favorable exposure to four investment style factors: quality, value, momentum and low volatility.

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The funds include the Franklin LibertyQ U.S. Equity ETF, which tracks an index generally including U.S. mid- and large-capitalization companies.Topping off the list are The Franklin LibertyQ U.S. Mid Cap Equity ETF the Franklin LibertyQ U.S. Small Cap Equity ETF.

“Our new U.S. equity strategic beta ETFs reflect our ongoing commitment to investors, by developing best-in-class offerings that seek to achieve better risk-adjusted returns over the long term,” says Patrick O’Connor, global head of ETFs at Franklin Templeton Investments. “Leveraging our firm’s 70 years of active management experience, our quantitative approach targets specific factors for consistent sources of return. In our proprietary approach, we place an emphasis on the ‘quality’ factor.”

For more information, visit LibertyShares.com.

NEXT: Vanguard Reduces Expense Ratios on Stock and Bond Funds 

Vanguard Reduces Expense Ratios on Stock and Bond Funds

Asset management firm Vanguard has reported lower expense ratios for 82 mutual fund and exchange-traded fund (ETF) shares.

The Vanguard Total Stock Market Index Fund reported lower expense ratios for four share classes: Institutional: a half basis point to 0.035%, Admiral: one basis point to 0.04%, ETF: one basis point to 0.04%, Investor: one basis point to 0.15%.

The Vanguard 500 Index Fund saw reductions across the following share classes: Admiral Shares: one basis point to 0.04%, ETF: one basis point to 0.04%, Investor: two basis points to 0.14%.

The Vanguard Total Bond Market Index Fund saw reductions across the following share classes: Institutional Plus: one basis point decline to 0.03%, Institutional: one basis point to 0.04%, Admiral: one basis point to 0.05%, ETF: one basis point to 0.05%, Investor: one basis point to 0.15%.

Fourteen additional Vanguard ETFs experienced expense ratio decreases: FTSE Developed Markets, Value, Growth, Short-Term Bond, Mid-Cap, Small-Cap, Intermediate-Term Bond, Large-Cap, Small-Cap Value, Mid-Cap Value, Small-Cap Growth, Extended Market, Long-Term Bond, and Mid-Cap Growth.

For a complete list of expense ratio changes, visit pressroom.vanguard.com.

Data & Research May 4, 2017

Retirement Savings Accounts a Planned Major Source of Retirement Income

Retirement savings accounts and Social Security are the top two sources of income that today's non-retirees expect to rely on the most.
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Fifty percent of non-retired Americans expect their 401(k) or another personal retirement savings account to be a major source of income in retirement—the highest percentage (by one point) that Gallup has recorded since April 2008.

At the same time, the 34% of non-retirees counting on Social Security as a major source of retirement income is near its peak in Gallup’s 17-year trends data. Prior to the recession, between 25% and 29% thought they would rely this heavily on Social Security, but this increased to 31% during the recession and has since ranged from 29% to 36%.

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Retirement savings accounts and Social Security are the top two sources of income that today’s non-retirees expect to rely on the most. This is true not only in the percentages predicting each will be a major source of income in later years, but also in terms of the combined percentages saying each will be a major or minor source—roughly 80% for both.

Following these sources of retirement security, regular savings accounts or certificates of deposit (CDs), as well as work-sponsored pension plans, figure as major potential income sources for 25% of non-retirees. More than half of non-retirees are counting on each as at least a minor source of income.

Roughly one in five non-retirees predicts home equity, part-time work and individual stock or stock mutual fund investments will be a major income source for them, and majorities of 55% to 71% identify each as at least a minor source.

Less than one in 10 non-retirees believe annuities or insurance plans, rent or royalty income, or inheritance money will be a major income source for them in retirement. In addition, less than half expect these to be either a major or minor source.

Current retirees report depending the most on Social Security, with 55% calling it a major income source for them and 89% saying it is either a major or minor source. This is followed by a work-sponsored pension, with 38% calling it a major source, and retirement savings accounts such as a 401(k) or Keogh, at 24%.

Results for the Gallup poll are based on telephone interviews conducted April 5 through 9, 2017, with a random sample of 1,019 adults, ages 18 and older. More information is here.

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