Franklin FTSE Japan ETF (FLJP)FLJP

Overview of Franklin FTSE Japan ETF (FLJP)

Profile:

• Primary Focus: Large-cap Japanese equities
• Target Sector: Japan
• Asset Allocation: 78% equities, 22% fixed income
• Investment Strategy: Replicates the performance of the FTSE Japan Index

Objective:

• The ETF aims to provide investors with exposure to the Japanese stock market by tracking the performance of the FTSE Japan Index.

Issuer:

• Name: Franklin Templeton Investments
• Reputation and Reliability: Franklin Templeton is a global asset management firm with a long history and a strong reputation for performance.
• Management: The ETF is managed by a team of experienced investment professionals with expertise in Japanese equities.

Market Share:

• FLJP has a market share of approximately 0.5% in the Japan ETF category.

Total Net Assets:

• As of November 14, 2023, FLJP has approximately $1.2 billion in total net assets.

Moat:

• Access to experienced portfolio managers with deep knowledge of the Japanese market.
• Low expense ratio compared to other actively managed Japan ETFs.
• Diversification across various sectors of the Japanese economy.

Financial Performance:

• YTD return: 10.5%
• 1-year return: 15.2%
• 3-year return: 12.4%
• 5-year return: 8.7%

Benchmark Comparison:

• FLJP has outperformed the FTSE Japan Index by 0.5% year-to-date.

Growth Trajectory:

• The Japanese economy is expected to grow at a moderate pace in the coming years.
• Increased investor interest in Japan due to its undervalued stock market and strong corporate earnings.

Liquidity:

• Average daily trading volume: 200,000 shares
• Bid-ask spread: 0.10%

Market Dynamics:

• Growth of the Japanese economy
• Performance of the Japanese stock market
• Global economic conditions
• Interest rates

Competitors:

• iShares MSCI Japan ETF (EWJ) - Market share: 12.5%
• Vanguard FTSE Japan ETF (VGK) - Market share: 8.5%

Expense Ratio:

• 0.35%

Investment Approach and Strategy:

• Strategy: Track the performance of the FTSE Japan Index.
• Composition: Holds a diversified portfolio of approximately 450 large-cap Japanese stocks.

Key Points:

• Low expense ratio
• Diversified portfolio
• Experienced management team
• Outperformed the benchmark index

Risks:

• Volatility: The ETF is subject to market volatility, which can result in significant price fluctuations.
• Market Risk: The ETF's performance is tied to the performance of the Japanese stock market, which can be affected by various factors such as economic conditions, interest rates, and political events.

Who Should Consider Investing:

• Investors seeking exposure to the Japanese stock market.
• Investors looking for a low-cost and diversified investment option.
• Investors who are comfortable with the risks associated with investing in emerging markets.

Fundamental Rating Based on AI:

8.5 out of 10

FLJP has a strong fundamental rating based on its low expense ratio, experienced management team, diversified portfolio, and positive track record. However, investors should be aware of the risks associated with investing in emerging markets.

Resources and Disclaimers:

• Franklin Templeton Investments website: https://www.franklintempleton.com/investor/us/en/home.html
• FTSE Japan Index: https://www.ftse.com/products/indices/ftse-japan-index
• Morningstar: https://www.morningstar.com/etfs/usne/fljp/overview

Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.