There’s already an expansive universe of dividend growth exchange traded funds addressing domestic and foreign equities with many of these products being index-based.

The intersection of passive structures and dividend growth investing has served advisors, clients and ordinary investors as highlighted by the fact that there’s hundreds of billions of dollars allocated to dividend growth ETFs. In fact, the landscape of dividend ETFs is littered with passive payout growth funds that $10 billion-plus products in their own rights.

But let’s think about dividend growth investing through a more sophisticated lens. Many of the passive products in the space use indexes rooted in dividend increase streaks. Five, 10, 20 years, whatever. Yes, that methodology helps identify payout growth in the strictest sense, but this style of capital allocation also leaves ample room for active management to thrive.

Enter the Franklin Dividend Growth ETF (NYSE: FRIZ), which debuted on Friday, Aug. 29. The actively managed ETF is the latest addition to Franklin Templeton’s ETF lineup, now numbering 137 active and passive funds with a combined $47 billion in assets under management as of Aug. 21.

Focus on FRIZ

Beyond active management, FRIZ stands apart from established, passive rivals in another way: it’s high conviction strategy. While some dividend growth ETFs have dozens upon dozens or even 100+ holdings, the new Franklin Templeton ETF limits its roster to 30 to 50 holdings.

“The fund invests in a high-conviction portfolio of companies across the market-cap spectrum and in a diverse range of industries and sectors,” said the issuer in a statement. “FRIZ’s portfolio managers focus on identifying companies with resilient business models, good corporate governance, and sustainable competitive advantages. The strategy draws on Franklin Equity Group’s robust fundamental research platform and dedicated team specializing in bottom-up dividend growth investing. ”

FRIZ will attempt to beat the NASDAQ US Broad Dividend Achievers Index, which requires that member firms have minimum dividend increase streaks of 10 years. So that’s a solid foundation for prosaic dividend growth strategies and one that can be enhanced with the active management offered by FRIZ. For advisors prioritizing the people element of active funds, the rookie delivers the goods.

“The fund is led by the same experienced team behind the firm’s flagship Franklin Rising Dividends strategy – Matt Quinlan, Amritha Kasturirangan, and Nayan Sheth,” adds the issuer.

FRIZ Fine Points

FRIZ highlights the benefits of ETFs not relying solely on payout increase streaks to construct portfolios. For example, the new fund allocates nearly 17% of its portfolio to Microsoft (NASDAQ: MSFT), Broadcom (NASDAQ: AVGO) and Apple (NASDAQ: AAPL) – notable because any passive ETF with a dividend increase streak requirement in excess of 10 years is unlikely to hold those high-flying tech names.

In other words, because it’s actively managed, FRIZ has the ability to tap into technology’s ascent as a credible dividend destination more rapidly than many index-based rivals.

FRIZ charges 0. 49% per year, or $49 on a $10,000 investment. Yes, there cheaper passive products, but that expense ratio compares favorably with the 0. 92% median on actively managed mutual funds.