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YLDEFranklin ClearBridge Enhanced Income ETF

Get income9y track recordRanked #730 of 1,622 in this goal

Seeks to provide income and long-term capital appreciation.

By Franklin Templeton Investments · Launched 2017

Annual Cost

0.48%

#2,335 of 5,562 · average

Fund Size

$158M

#2,507 of 5,562 · mid-size

Dividend YieldGoal

6.86%

Track Record

9 years

#1,561 of 5,562 · established

Performance

Total-return NAV · USD
Growth of $10,000
$11,416+14.2%

Total-return NAV, USD. Net of fund fees, before tax.

Classification

How Beacon categorizes this fund

Asset class

Alternative

Strategy

Option income

What it actually holds

By weight

Concentration

Top 10 holdings = 31.6% of fundwell diversified

Microsoft Corp
4.1%
Exxon Mobil Corp
3.8%
Broadcom Inc
3.8%
Williams Cos Inc/The
3.3%
Alphabet Inc
3.2%
Nestle SA
2.9%
Becton Dickinson & Co
2.7%
Texas Instruments Inc
2.7%
JPMorgan Chase & Co
2.5%
Air Products and Chemicals Inc
2.4%

Asset allocation

Stocks
98.2%
Cash
1.8%

Risk profile

Last 12 months · Sharpe & Sortino need 3+ years
Volatility (1Y)
9.4%Low

Year-on-year price swings

Max drawdown
-33.2%Severe

Worst peak-to-trough loss

Sharpe (3Y)
0.94Decent risk-adjusted returns
Sortino (3Y)
1.34Good downside protection

Where to buy

Listing

Exchange
NASDAQ Global Select Market

Full fund details

Objective
Seeks to provide income and long-term capital appreciation.
Strategy
Actively managed ETF pursuing an enhanced equity income strategy by investing primarily in U.S. large-cap dividend-paying common stocks (selected bottom-up by ClearBridge for quality dividends and dividend growth, may include REITs and foreign issuers via depositary receipts) and overlaying an uncovered index call-writing program managed by Franklin MOST that sells short-dated call options on U.S. large-cap equity indices such as the S&P 500. Targets a 6%-8% annual payout distributed monthly.
Inception date
May 22, 2017
Fund family
Franklin Templeton Investments

Our take

Structural notes on how this fund behaves. Read our guide on the 6 warning signs.

Covered call
Warning

Covered call ETF — yield ≠ total return

The high distribution yield is not free income — it comes from selling upside via call options. Research finds these strategies systematically underperform their underlying index over full cycles, typically by 100–300 basis points per year depending on the option-overlay design. The monthly distributions make the shortfall hard to see in return summaries.

Source: Israelov & Ndong, 'A Devil's Bargain: When Generating Income Undermines Investment Returns' (NDVR, 2023)

Why we flagged this: strategy=option_income + option_income_strategy

Educational analysis of structural product characteristics. Not investment advice. Always read the fund prospectus and consult a qualified advisor before investing. More

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Data updated on 2026-06-20