It's official, Franklin [ profile] has entered the ETF arena.

Its first ETF product, the Franklin Short Duration U.S. Government ETF, began trading today on the NYSE Arca.

According to the company, the product is an actively managed ETF which "seeks a high level of current income and preservation of capital by following a short duration US government portfolio strategy. The fund is designed for US investors who are income focused while also looking to achieve lower volatility than intermediate and longer duration strategies. It is also designed for investors looking for a portfolio free from corporate credit risk."

"With Franklin Short Duration US Government ETF, we are taking a yield-driven approach and investing where we see the most attractive short-term yield potential across various US government bond sectors, including higher yielding MBS (Mortgage-Backed Securities), ARMS (Adjustable Rate Mortgage Securities) and TIPS (Treasury Inflation-Protected Securities)," stated Roger Bayston , the fund's lead portfolio manager and senior vice president of Franklin Templeton Fixed Income Group.

Bayston stated that "this actively managed ETF can take advantage of opportunities outside of the index (Barclays U.S. Government 1-3 Year Index), which has a much narrower opportunity set. The fund may be attractive to risk-averse investors who seek monthly income potential and relative price stability across changing interest rate environments, and do not want exposure to corporate credit cycles."

Ever since the recently gave approval to a number of new ETF formats, scores of fund firms have scaled the regulatory ramparts with their active ETF proposals, including State Street and BlackRock and First Trust .

Fidelity's own entrants hit the scene late last month.  

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