Understanding the LibertyQ Factor Methodology
Chandra Seethamraju, Ph.D., Vice President, Director of Systematic Modeling, Franklin Templeton Solutions, discusses the methodology behind Franklin’s multi-factor smart beta ETFs, including the rationale behind LibertyQ’s custom factor definitions and their factor weightings.
Smart beta refers to a methodology of index construction that seeks to achieve better risk-adjusted returns compared to traditional market capitalization-weighted benchmark indexes. There is no guarantee that any strategy will achieve its objective. Franklin LibertyQ ETFs are not riskless investments, and investors can lose money. For additional risk disclosures, please see the prospectus.