Franklin U.S. Core Dividend Tilt Index ETF

Franklin U.S. Core Dividend Tilt Index ETF (UDIV) tracks the Morningstar US Dividend Enhanced Select Index. That index takes the broad US market of large and mid-size companies and reweights it to lean toward stocks with higher dividend yields. It still looks much like the overall market: NVIDIA, Apple and Microsoft were its top three holdings as of June 30, 2026. Its 0.06% expense ratio is low, though S&P 500 funds such as IVV and VOO charge 0.03%.

• Over the year to Oct 27, 2026, UDIV returned +17.2%, 1st of 9 among similar funds.
• Its worst full calendar year was 2025 (+19.0%); its best was 2024 (+26.5%).
• The deepest fall in its price history was 19.2% (Feb 19, 2025 to Apr 8, 2025), recovered by Jun 24, 2025.

As of Jun 30, 2026, the fund held 281 securities; the ten largest made up 35.79% of assets.

By sector

• Over the three months to Jun 30, 2026, investors added a net $14.5M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +11.31%, +5.92%, -0.98%.

Franklin Templeton's UDIV tracks the Morningstar US Dividend Enhanced Select Index. That index starts from a broader parent, the Morningstar US Target Market Exposure Index. The parent holds the large and mid-sized US companies that make up the top 85% of the stock market, measured by the value of their publicly available shares. Each quarter, a computer optimizer picks and weights stocks to get a higher dividend yield than the parent. Dividend yield here means the past year's dividends divided by price. The optimizer also limits how far the index's returns can drift from the parent's.

Each stock's weight is capped at whichever is lower: three times its weight in the parent, or its parent weight plus 0.5%. Sectors stay within 5% of their parent weights. Turnover, the share of the portfolio swapped out, is normally capped at 10% per rebuild. So the fund still looks like the broad market, and it holds some stocks that pay no dividend. As of June 30, 2026, NVIDIA (7.0%), Apple (6.4%) and Microsoft (4.4%) were the largest holdings.

The fund may hold every stock in the index. When that isn't practical, it may hold a representative sample instead, which may track the index less closely. It rebalances quarterly, after the index does. It may use equity futures and total return swaps, which are contracts that copy stock returns, mainly to keep cash invested. As of June 30, 2026, that meant one tiny S&P 500 futures position.

• UDIV charges 0.06% a year, versus an average of 0.07% for the similar funds below (6th of 9, cheapest first).
• Using the prospectus's standard example, $10,000 invested would cost about $6 in the first year and $76 over 10 years (assuming a 5% annual return).

It owns a broad, market-like mix of about 281 US large and mid-size stocks at a low cost, with only a mild lean toward dividend payers.

UDIV could anchor the US stock portion of a portfolio. Its one-year beta was 1.01 as of October 27, 2026. Beta measures how much a fund moves with the market, so a figure near 1 means it moved roughly in step. That cuts both ways. Its prospectus shows a 15.09% loss in 2022, its worst calendar year from 2017 through 2025, and a 23.91% drop in the first quarter of 2020. In price data starting August 2022, its deepest fall was 19.2%, from February 19 to April 8, 2025. It had recovered by June 24, 2025. Anyone forced to sell during a stretch like that would lock in losses.

Income is modest: the trailing yield was 1.41% as of October 27, 2026, paid quarterly. Costs are low, at $76 over 10 years on $10,000 in the SEC's standard example. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.

Matched by holdings overlap from the latest N-PORT reports.