Franklin Templeton has launched its first range of exchange traded funds in Europe, becoming the latest US manager seeking to profit from the growing appeal of passive funds to investors in the region.

Four funds from Franklin's ETF offering, branded LibertyShares, began trading on Germany's Deutsche Börse today. The funds follow "smart" indices that differ from standard market benchmarks in certain ways; one invests in environmentally and socially responsible stocks, for example, while another prioritises those that pay high dividends.