Franklin Templeton ETF Trust - Franklin LibertyQ Emerging Markets ETF (DIEM)

ETF Franklin Templeton ETF Trust - Franklin LibertyQ Emerging Markets ETF Summary:

Profile:

The Franklin LibertyQ Emerging Markets ETF (FLQL) is an actively managed ETF investing primarily in equities of emerging market companies. The ETF targets companies across various sectors and aims to achieve long-term capital appreciation. It employs a bottom-up stock selection approach based on fundamental research.

Objective:

FLQL's primary investment goal is to generate superior long-term capital returns by investing in high-growth companies in emerging markets.

Issuer:

The ETF is issued by Franklin Templeton Investments, a global asset management firm with over 75 years of experience and more than $1.5 trillion in assets under management.

Market Share:

FLQL holds a relatively small market share in the broader emerging markets ETF category.

Total Net Assets:

As of November 10, 2023, FLQL had approximately $294.2 million in total net assets.

Moat:

The ETF's competitive advantages include its access to Franklin Templeton's experienced investment team and research capabilities, its active management approach, and its focus on high-growth potential companies.

Financial Performance:

FLQL has delivered competitive returns compared to its benchmark, the MSCI Emerging Markets Index, over various time periods.

Growth Trajectory:

FLQL's growth trajectory is tied to the performance of emerging market equities. While the emerging market space has strong long-term growth potential, it is also susceptible to volatility.

Liquidity:

FLQL exhibits moderate trading volume and a relatively wide bid-ask spread, indicating moderate liquidity.

Market Dynamics:

FLQL's market environment is affected by factors like global economic growth, emerging market political stability, and commodity prices.

Competitors:

Key competitors in the emerging market ETF space include iShares Core MSCI Emerging Markets ETF (IEMG), Vanguard FTSE Emerging Markets ETF (VWO), and Xtrackers MSCI Emerging Markets ETF (EMXC).

Expense Ratio:

The expense ratio for FLQL is 0.90%.

Investment Approach and Strategy:

FLQL actively selects stocks based on a fundamental analysis, targeting high-growth potential companies across various emerging market sectors.

Key Points:

• Actively managed emerging markets equity ETF with a focus on high-growth potential.
• Competitive returns with moderate liquidity.
• Higher expense ratio compared to some competitors.

Risks:

• Emerging market equities are generally more volatile than developed market equities.
• Political and economic instability in certain emerging markets can negatively impact returns.
• Currency fluctuations can affect the ETF's value.

Who Should Consider Investing:

FLQL is suitable for investors seeking long-term capital growth potential with a higher risk tolerance and an investment horizon of at least 5-10 years.

Fundamental Rating Based on AI:

Based on an analysis of the factors discussed above, I rate FLQL's fundamentals a 7 out of 10. The ETF benefits from strong management, a differentiated approach, and past performance but faces competition and potential market risks.

Resources and Disclaimers:

This information is based on data gathered from the following sources:

• Franklin Templeton Investments Website
• ETF Database

This analysis is for informational purposes only and should not be considered investment advice. Investors should conduct their research and consult with a financial professional before making investment decisions.