Franklin Templeton has announced plans to liquidate and dissolve its Franklin Sustainable International Equity ETF (MCSE), with the process set to wrap up around January 16, 2026. The move marks the end of the fund’s journey in the increasingly crowded sustainable investing space.

Trading on NASDAQ will cease prior to market open on January 12, 2026, while the fund will stop accepting creation orders after December 19, 2025. Shareholders can continue to trade the ETF on NASDAQ until market close on January 9, 2026. Any unsold shares will be redeemed for cash equal to the net asset value (NAV), including dividends and capital gains, around January 16, 2026.

During the liquidation process, which begins before January 9, the fund’s portfolio may hold cash and securities that diverge from its usual investment strategies. Investors should note that customary brokerage commissions may apply if shares are sold before the fund stops trading.

Tax implications are also on the horizon. For shareholders in taxable accounts, liquidation proceeds are generally treated as a sale of shares, potentially triggering capital gains or losses. The fund may also declare taxable distributions of income or capital gains during the liquidation. Franklin Templeton recommends shareholders consult tax advisers to understand the impact based on individual circumstances.

The closure of MCSE underscores a broader trend in the ETF market: even sustainable investment products face headwinds when competing in a crowded field. While environmental, social, and governance (ESG) investing continues to grow, fund closures like this highlight the pressure on providers to maintain liquidity, differentiation, and investor interest.