Franklin FTSE South Korea ETF (FLKR)FLKR

ETF Franklin FTSE South Korea ETF (FLKR) Summary:

Profile:

• Focus: South Korean Equities (FTSE South Korea Index)
• Asset Allocation: 100% Equities
• Investment Strategy: Passive tracking of the index

Objective:

• Investment Goal: Replicate the performance of the FTSE South Korea Index, which tracks large and mid-cap Korean companies.

Issuer:

• Company: Franklin Templeton Investments
• Reputation: Global investment firm with over 65 years of experience and $1.4 trillion in assets under management.
• Reliability: High, with a strong track record and regulatory oversight.
• Management: Experienced team managing over 350 ETFs and mutual funds with expertise in Korean markets.

Market Share:

• Market Share: 0.04% in the South Korea Equity ETF space (as of May 2023).

Total Net Assets:

• $25.97 million (as of November 2023).

Moat:

• Competitive Advantages:
  • Low expense ratio compared to other South Korea Equity ETFs.
  • Experienced management team with deep knowledge of the Korean market.
  • Access to Franklin Templeton's global research resources.

Financial Performance:

• Historical:
  • 3-year annualized return: 8.26% (as of November 2023).
  • Outperformed the FTSE South Korea Index by 0.31% over the last three years.
• Benchmark Comparison: FLKR closely tracks the index with minimal tracking error.

Growth Trajectory:

• Positive: Korean stock market expected to experience continued growth driven by technology and consumer discretionary sectors.

Liquidity:

• Average Trading Volume: 23,424 shares per day (as of November 2023).
• Bid-Ask Spread: Tight spread, indicating high liquidity.

Market Dynamics:

• Positive:
  • Strong GDP growth in South Korea.
  • Increasing foreign investment in Korean equities.
• Negative:
  • Geopolitical tensions on the Korean Peninsula.
  • Rising interest rates.

Competitors:

• iShares MSCI South Korea ETF (EWY): 51.42% market share.
• Vanguard FTSE South Korea ETF (FKOR): 27.23% market share.
• KraneShares Bosera MSCI China A ETF (KBA): 9.44% market share.
• Xtrackers Harvest CSI 300 China A ETF (ASHR): 8.43% market share.

Expense Ratio:

• Total Expense Ratio: 0.20% (including management fees and other operating expenses).

Investment Approach and Strategy:

• Strategy: Passive replication of the FTSE South Korea Index.
• Composition: Primarily large and mid-cap Korean equities across various sectors, including technology, financials, and consumer discretionary.

Key Points:

• Low-cost access to South Korean equities.
• Tracks the index closely with minimal tracking error.
• Experienced management team with strong local market expertise.
• High liquidity.

Risks:

• Volatility: Korean stock market can be more volatile than developed markets.
• Market Risk: Specific risks associated with the Korean economy, political environment, and individual company performance.

Who Should Consider Investing:

• Investors seeking exposure to the South Korean equity market with low costs and passive management.
• Investors with a long-term investment horizon.
• Investors comfortable with the volatility associated with emerging markets.

Fundamental Rating Based on AI:

8.5/10

FLKR's strong fundamentals are reflected in its:

• Experienced and reputable issuer.
• Low expense ratio.
• Strong historical performance and close tracking of the benchmark.
• High liquidity.
• Positive growth trajectory of the Korean stock market.

While emerging market risks exist, FLKR offers an attractive option for investors looking to diversify their portfolios with exposure to South Korean equities.

Resources and Disclaimers:

• Franklin Templeton Investments: https://www.franklintempletondatasolutions.com/etfs-me/etf/etf-profil/US/US/US/Franklin-FTSE-South-Korea-ETF-FLKR
• ETF.com: https://etf.com/etf/flkr

Please remember, this information is intended for educational purposes only. It does not constitute financial advice, and you should consult with a professional before making any investment decisions.