Franklin Templeton to Liquidate Sustainable International Equity ETF in January 2026

Investors will have until January 9 to sell shares before trading halts, with liquidation proceeds distributed soon after.

September 10, 2025

Franklin Templeton Shutters International Sustainability Fund Amid Strategic Realignment

Franklin Templeton is winding down the Franklin Sustainable International Equity ETF, with a full liquidation scheduled for January 16, 2026. The decision—approved by the ETF Trust’s Board of Trustees on September 4—means investors now have a clear runway to exit their positions before trading is halted.

The key dates are straightforward. The fund will stop accepting creation orders after markets close on December 19, 2025. Trading on Nasdaq will be halted before the market opens on January 12, 2026. But the window to act closes even sooner: January 9 is the last day shares can be sold on the exchange. After that, the ETF will be delisted and proceeds from the liquidation will be sent out—currently targeted for January 16.

As the liquidation process begins—likely before January 9—the fund’s portfolio will shift. Instead of tracking its sustainable equity mandate, it will hold a mix of cash and securities that may not align with its original investment objective. Investors who remain through the liquidation date will receive the net asset value of their holdings, including any capital gains and dividends.

What Investors Need to Know

There are also tax factors to consider. For most taxable accounts, the proceeds will be treated as a sale of shares, with capital gains or losses realized based on each investor’s cost basis. The fund may also issue income or capital gain distributions during the liquidation. For investors, it’s a good time to check in with a tax advisor to map out the implications.

The move reflects how fund providers continue to re-evaluate their product lineups in response to investor demand, market dynamics, and strategy shifts. In this case, shareholders have a clearly defined timeline and multiple paths to exit—whether that’s selling in the market or receiving a final redemption in cash.

If you hold this ETF, mark your calendar. The trading window stays open through January 9, and final proceeds are expected to follow one week later.