ETF Evaluator: Franklin U.S. Dividend Bstr Idx ETF () Follow This ETF

Franklin U.S. Dividend Bstr Idx ETF Overview

Franklin U.S. Dividend Bstr Idx ETF (XUDV) is a passively managed U.S. Equity Large Value exchange-traded fund (ETF). Franklin Templeton Investments launched the ETF in 2025.

The investment seeks to provide investment results that closely correspond, before fees and expenses, to the VettaFi New Frontier U.S. Dividend Select Index. Under normal market conditions, the fund invests at least 80% of its assets in the component securities of the index. The index is based on the VettaFi U.S. Equity Large-Cap 500 Index and is constructed by applying an optimization process to the Parent Index that aims to deliver excess dividend yield balanced against volatility relative to the broad market as represented by the parent index.

About Franklin U.S. Dividend Bstr Idx ETF (XUDV)

There are 4 members of the management team with an average tenure of 1.52 years: Hailey Harris (2025), Dina Ting (2025), Basit Amin (2025) and Joe Diederich (2025). Management tenure is more important for actively managed ETFs than passive index ETFs.

The ETF has 1 primary benchmark: VettaFi New Front U.S. Div Select TR USD index with a weighting of 100%. Franklin U.S. Dividend Bstr Idx ETF has 97 securities in its portfolio. The top 10 holdings constitute 43.8% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a diversified fund. The ETF is not considered to have an ESG focus with its investment selection and management.

Franklin U.S. Dividend Bstr Idx ETF is part of the Equity global asset class and is within the U.S. Equity ETF group. Franklin U.S. Dividend Bstr Idx ETF has 2.4% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 97.1% There is 2.4% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). Franklin U.S. Dividend Bstr Idx ETF has 0.3% of the portfolio in cash.

Assets Under Management

The fund has $77 million in total assets, which is below the $5 billion average for the Large Value category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

XUDV Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Franklin U.S. Dividend Bstr Idx ETF expense ratio is low compared to funds in the Large Value category. Franklin U.S. Dividend Bstr Idx ETF has an expense ratio of 0.09%, which is 76% lower than its category average, making the fund expense ratio grade a A. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. Franklin U.S. Dividend Bstr Idx ETF has a portfolio turnover rate of 17%, which indicates that it holds its assets around / 0.1 years. By way of comparison, the average portfolio turnover is 40% for the Large Value category.

Recently, in the month of July 2026, Franklin U.S. Dividend Bstr Idx ETF returned 3.2%, which earned it a grade of B, as the Large Value category had an average return of 2.4%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all ETFs in that category.

Franklin U.S. Dividend Bstr Idx ETF has a trailing yield of 3.36%, which is above the 1.70% category average. The fund normally distributes its income quarterly and its capital gains annually.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

Franklin U.S. Dividend Bstr Idx ETF Grades

Year to date, the ETF has returned 24.2%, 9.8 percentage points better than the category, which translates into a grade of A. The fund has returned 30.7% over the past year (grade of A).

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