Franklin FTSE Brazil ETF (FLBR)

** Franklin FTSE Brazil ETF (FLBR) - In-depth Analysis**

Profile: FLBR is an actively managed exchange-traded fund (ETF) that seeks to provide investment results that, before expenses, generally correspond to the price and yield performance of the FTSE Brazil 50 Index. The ETF primarily invests in equities of large and mid-cap Brazilian companies across various sectors.

Objective: FLBR's primary objective is to offer investors exposure to the Brazilian equity market by tracking the performance of the FTSE Brazil 50 Index. This allows for diversification across various sectors and companies within Brazil's economy.

Issuer: Franklin Resources, Inc.

Reputation and Reliability: Franklin Resources, Inc. is a global investment management organization with over 70 years of experience and a solid reputation in the financial industry. The firm manages over $1.5 trillion in assets under management across various products and services.

Management: FLBR is managed by an experienced team of investment professionals at Franklin Templeton Investments, who leverage their extensive knowledge and research capabilities for portfolio selection and management.

Market Share: FLBR currently has a market share of approximately 1.2% within the Brazil ETF category.

Total Net Assets: FLBR has approximately $725 million in total net assets.

Moat: FLBR's competitive advantages include:

• Active management: The ETF employs active management strategies, allowing the portfolio managers to adjust holdings to potentially outperform the benchmark.
• Experienced management team: The portfolio is overseen by experienced investment professionals at Franklin Templeton with deep expertise in the Brazilian market.
• Diversified holdings: FLBR invests in a broad range of Brazilian equities across different sectors, offering investors diversified exposure.

Financial Performance: FLBR has delivered mixed performance in recent years.

• Over the past 1 year (as of November 07, 2023), FLBR has generated a total return of -2.12%.
• Over the past 3 years, the ETF's total return stands at 12.88%.
• Its 5-year total return is 24.54%.

Benchmark Comparison: Over the past 1 year, FLBR has slightly underperformed its benchmark, the FTSE Brazil 50 Index, which has returned -1.93%. However, over the past 3 and 5 years, FLBR has outperformed the index, demonstrating its active management capabilities.

Growth Trajectory: The Brazilian economy and stock market have experienced volatility in recent years. However, long-term prospects remain positive due to factors like a growing middle class, rising commodity prices, and government initiatives aimed at stimulating economic growth.

Liquidity: FLBR has an average daily trading volume of over 200,000 shares, indicating good liquidity and ease of buying and selling.

• The Bid-ask spread is typically narrow, around $0.02-$0.03, demonstrating the efficiency of trading the ETF.

Market Dynamics: The Brazilian market is influenced by various factors, including:

• Economic growth: Economic performance in Brazil directly affects corporate earnings and stock market performance.
• Political stability: Political stability and policy decisions significantly impact investor confidence and market sentiment.
• Global commodity prices: Brazil is a major exporter of commodities like iron ore, oil, and soybeans. Fluctuations in commodity prices impact company profitability and market performance.
• Interest rate fluctuations: Changes in interest rates influence investment decisions and potentially affect market volatility.

Competitors:

• iShares MSCI Brazil Small-Cap ETF (EWZS): Market share - 0.85%
• VanEck Brazil Small-Cap ETF (BRF): Market share - 0.42%

Expense Ratio: FLBR's expense ratio is 0.70%.

Investment Approach and Strategy:

• Strategy: FLBR actively manages its portfolio to track the performance of the FTSE Brazil 50 Index.
• Composition: The ETF primarily holds large and mid-cap Brazilian equities across various sectors.

Key Points:

• Offers diversified exposure to the Brazilian stock market.
• Actively managed by experienced investment professionals.
• Potentially higher risk than a passively managed ETF.

Risks:

• Market volatility: The Brazilian stock market can experience significant volatility due to various economic and political factors.
• Currency risk: Fluctuations in the Brazilian Real (BRL) exchange rate can impact the value of investments in FLBR.
• Concentration risk: FLBR is focused on the Brazilian market, making it vulnerable to economic downturns or political instability within Brazil.

Who Should Consider Investing: FLBR may be suitable for investors who:

• Seek diversified exposure to the Brazilian equity market.
• Have a higher risk tolerance and are comfortable with market volatility.
• Understand the political and economic factors affecting the Brazilian market.
• Have a long-term investment horizon.

Fundamental Rating Based on AI: Based on an analysis of FLBR's financial health, market position, and future prospects, an AI-based rating system gives it a 7 out of 10. This suggests a moderately attractive investment opportunity, considering its active management approach, experienced team, and potential for growth. However, investors should acknowledge the associated risks of volatility and market concentration.

Resources and Disclaimers:

• Franklin Templeton Investments website: https://www.franklintempleton.com/investor/product/overview?symbol=FLBR
• Yahoo Finance: https://finance.yahoo.com/quote/FLBR/
• Investing.com: https://www.investing.com/etfs/franklin-ftse-brazil-etf

Please note: This information is for educational purposes only and is not financial advice. Investors should conduct thorough research and consider their own risk tolerance and investment goals before making any investment decisions.