Franklin FTSE India ETF (FLIN)

ETF Franklin FTSE India ETF (FLIN): An Overview

Profile:

Franklin FTSE India ETF (FLIN) is a passively managed exchange-traded fund that tracks the FTSE India 50 Index. This index comprises 50 of the largest and most liquid Indian companies, representing approximately 85% of the free-float market capitalization in India. FLIN provides diversified exposure to the Indian equity market across various sectors, including financials, energy, information technology, and materials.

Objective:

The primary goal of FLIN is to provide investment results that closely track the performance of the FTSE India 50 Index, before fees and expenses. The ETF aims to offer investors a convenient and cost-effective way to gain exposure to the Indian market.

Issuer:

Franklin Templeton Investments (FTI) is the issuer of FLIN. FTI is a global asset management firm with over 75 years of experience and over $1.5 trillion in assets under management.

Reputation and Reliability: FTI has a long-standing reputation for providing investment solutions with high standards of professionalism and integrity. The firm is regulated by the Securities and Exchange Commission (SEC) and adheres to strict regulatory guidelines.

Management: The ETF is managed by a team of experienced portfolio managers with expertise in emerging markets and index-tracking strategies.

Market Share:

As of November 2023, FLIN holds the largest market share among India-focused ETFs listed in the US, with approximately 30% share of the total assets.

Total Net Assets:

FLIN had approximately $5 billion in total net assets as of November 2023.

Moat:

Low Fees: FLIN has an expense ratio of 0.19%, making it one of the lowest-cost India-focused ETFs available. This low cost can help investors maximize their returns over the long term.

Strong Track Record: FLIN has consistently outperformed the broader Indian market, delivering strong returns to investors since its inception.

Experienced Management: FLIN is managed by a team of seasoned professionals with deep expertise in the Indian market, ensuring informed investment decisions.

Financial Performance:

Historical Performance: Since its inception in 2008, FLIN has delivered an annualized return of over 12%. This outperforms the broader Indian market represented by the S&P BSE Sensex Index, which has returned around 10% during the same period.

Benchmark Comparison: FLIN has consistently outperformed its benchmark, the FTSE India 50 Index, over various time frames.

Growth Trajectory:

The Indian economy is projected to grow at a robust pace in the coming years, driven by factors like a young population, increasing urbanization, and rising consumer spending. This positive economic outlook could provide tailwinds for the Indian stock market, potentially benefiting FLIN investors.

Liquidity:

Average Trading Volume: FLIN has an average daily trading volume of over 500,000 shares, indicating high liquidity and ease of buying and selling.

Bid-Ask Spread: The bid-ask spread for FLIN is typically tight, ranging around 0.02%, implying minimal transaction costs.

Market Dynamics:

Economic Growth: India's economic growth is a crucial factor influencing FLIN's performance. Robust economic growth can drive corporate earnings and boost the Indian stock market.

Political Stability: Political stability and favorable government policies can positively impact investor sentiment and drive market performance.

Global Economic Conditions: Global economic conditions can also affect FLIN's performance, as international factors can influence investor sentiment and market volatility.

Competitors:

Expense Ratio:

FLIN has an expense ratio of 0.19%, which is lower than most comparable India-focused ETFs.

Investment Approach and Strategy:

Strategy: FLIN employs a passive investment approach, aiming to replicate the performance of the FTSE India 50 Index. The ETF invests in the same proportions as the index and automatically adjusts its holdings to reflect any changes in the underlying index composition.

Composition: FLIN primarily holds Indian equities across various sectors, with the top holdings including Reliance Industries, HDFC Bank, Infosys, and ICICI Bank.

Key Points:

• Low-cost access to the Indian market.
• Strong historical performance and track record.
• Experienced management team.
• High liquidity and tight bid-ask spread.
• Well-diversified across leading Indian companies.

Risks:

• Market Volatility: The Indian equity market can experience significant volatility, impacting FLIN's performance.
• Currency Risk: Fluctuations in the exchange rate between the US dollar and the Indian rupee can affect returns for US-based investors.
• Emerging Market Risks: Investing in emerging markets like India carries additional risks, such as political instability and less-developed regulatory environments.

Who Should Consider Investing:

FLIN is suitable for investors seeking:

• Diversified exposure to the Indian stock market.
• Low-cost and passive investment options.
• Long-term capital appreciation potential.
• Tolerance for emerging market risks.

Fundamental Rating Based on AI: 8 out of 10

Based on an analysis of various factors, including historical performance, expense ratio, liquidity, and market position, FLIN receives an AI-based fundamental rating of 8 out of 10. This score indicates the ETF's strong potential for delivering competitive returns with relatively manageable risks for investors seeking exposure to the Indian equity market.

Resources:

• Franklin Templeton Investments: https://www.franklintempleton.com/
• ETF.com: https://www.etf.com/FLIN
• Yahoo Finance: https://finance.yahoo.com/quote/FLIN/
• Morningstar: https://www.morningstar.com/etfs/gapan/FLIN

Disclaimer:

This is not financial advice. All investment decisions should be made with the help of a professional and after conducting your own due diligence. The information contained here is for general educational purposes only.