Think Global, Invest Smart: John Templeton’s ETF Playbook📘

Welcome back to ETF UNO's "Legendary Portfolio" series, where we explore great investors and ask: "If they could only buy ETFs today, which ticker symbols would they choose?"

Today, we're featuring Sir John Templeton. Grab your coffee (or a weekend mimosa) as we create the "Templeton 2025 ETF Portfolio" with five funds, each described in a single sentence, to enhance your brokerage account.

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🧭The Mind of a Contrarian: Templeton's Core Philosophy

Sir John Templeton was a Kentucky-born Rhodes Scholar and British knight recognised for his contrarian investment strategies. Often called the "greatest global stock picker of the century," he pioneered the principle of "buy low, sell high." In the 1960s, when most investors focused on the U.S. and Europe, Templeton explored emerging markets, buying undervalued stocks in Asia and Latin America, an approach many considered reckless at the time.

His Templeton Growth Fund achieved an impressive average annual return of about 15% over 38 years, delivering returns across various market conditions. This success led to the creation of Franklin Templeton, now a highly respected investment firm.

John Templeton was both smart and disciplined. His strategy of buying during "points of maximum pessimism"—like borrowing to invest in 104 struggling companies at the start of World War II—built his fortune. His core principles remain valuable for ETF investors today.

Here is a breakdown of John Templeton's investing style in bullet points:

• 🏦Invest, Don't Gamble: Treat the market as a place for building long-term wealth, not a casino for short-term bets. Success comes from patience and research, not luck.

• 💎Seek Value and Quality: Look for companies that are leaders in their field, have strong finances, and have trusted brands. Buy the stock, not the overall market trend.

• ☂️Buy When Others Despair: Be a contrarian. The best bargains are found when pessimism is at its peak. As he said, "If you want to have a better performance than the crowd, you must do things differently from the crowd".

• 🛡️Focus on Real Returns: Always account for the erosive effects of taxes and inflation on your profits. The true goal is to increase your purchasing power over time.

• 🌐Diversify Globally: Spread your investments across different countries and sectors. The future is always uncertain, and diversification is your best defence against the unforeseeable.

• 🚪Stay Open-Minded: Be ready to invest anywhere in the world where value exists. There is no single asset or country that is always the best investment.

📊The Templeton-Inspired ETF Portfolio

If Sir John Templeton were constructing a portfolio today using only ETFs, he would likely emphasise low-cost, rules-based funds that align with his core principles of global value, quality, and dividend income. Below are five ETFs that embody his philosophy, along with the specific Templeton principle each one represents.

1. Putnam Focused Large Cap Value ETF (PVAL)

$PVAL ( ▲ 6.68% ) is a thoughtfully curated portfolio consisting of 30 to 40 deeply undervalued U.S. stocks. It is built on a multi-factor model that emphasises disciplined, quantitative approaches to acquiring stocks at low prices. PVAL reflects Templeton's commitment to investing in undervalued companies by focusing on U.S. stocks that are trading below their intrinsic value. This makes it a contemporary interpretation of traditional value investing.

2. Franklin International Low Volatility High Dividend ETF (LVHI)

$LVHI ( ▼ 0.08% ) offers affordable access to high-quality, dividend-paying companies in developed markets outside the U.S., combining income with international diversification. LVHI embodies Templeton’s global perspective by providing diversified international exposure that underlines steady income and reduced volatility.

3. Franklin Templeton Core Bond ETF (FLCB)

$FLCB ( ▲ 0.29% ) serves as a core holding of U.S. corporate bonds, providing stability and income that helps safeguard the portfolio's real return from market volatility. This investment enhances the portfolio's overall stability and aligns with Templeton's belief that effective diversification should include high-quality bonds alongside equities.

It's important to note that PVAL, LVHI, and FLCB are all ETFs managed by Franklin Templeton. Several investment selections should come from this firm, which carries his name. These ETFs embody Templeton's investment philosophy of seeking value and quality, institutionalised into modern, accessible strategies.

4. Vanguard FTSE Emerging Markets ETF (VWO)

This ETF provides direct and comprehensive exposure to the growth potential of emerging markets, which are considered the new frontier for investors looking for value. VWO embodies the core principles of Templeton, offering broad access to markets where long-term growth potential and investment opportunities remain available.

5. Schwab U.S. Dividend Equity ETF (SCHD)

SCHD invests in 100 high-quality U.S. companies that have a strong history of sustainable dividends. It focuses on financial health and reliable income, which aligns with Templeton’s long-term investment strategy of selecting quality companies that provide investors with consistent and growing dividends over time.

Lessons from the Original Global ETF Investor🌍

Sir John Templeton's story teaches us that successful investing is less about predicting the future and more about adhering to a disciplined, principled approach. It's about having the courage to be different and the patience to let compounding work.

By combining these ETFs, you create a portfolio with a distinctly Templeton flavour:

• A global scope (through LVHI and VWO)

• A focus on undervalued and quality assets (through PVAL and SCHD)

• A defence against inflation and volatility (through FLCB and SCHD's dividends)

• All wrapped in the low-cost, diversified structure of ETFs

This blend seeks not just growth, but thoughtful growth designed to build real wealth over time.

We hope you enjoyed this simple weekend reading and feel inspired to view your investments through the perspective of one of history's greats.

Would you like more insights like this? The journey to smarter investing is more enjoyable within a community. Join the ETF UNO family to receive valuable insights, simplified strategies, and weekly deep dives delivered directly to you. Let's continue learning from the legends and work together to build better portfolios.

Happy weekend, happy bargain-hunting, and see you in the next edition!

DISCLAIMER: This article is for informational purposes only and does not constitute investment advice. Always conduct your own research and consider consulting with a financial advisor before making investment decisions.