Franklin FTSE Latin America ETF (FLLA)

ETF Franklin FTSE Latin America ETF (FLBR)

Profile:

Franklin FTSE Latin America ETF (FLBR) is a passively managed exchange-traded fund that seeks to track the performance of the FTSE Developed Latin America 40% Capped Index. This index consists of large- and mid-cap companies from Brazil, Chile, Mexico, Peru, and Colombia. FLBR primarily focuses on the Latin American equity market with a broad diversification across multiple sectors, including financials, energy, materials, and consumer staples.

Objective:

The primary investment goal of FLBR is to provide investors with exposure to the broad Latin American equity market, offering them the opportunity to participate in the potential growth and development of the region's economies.

Issuer:

Franklin Templeton Investments is the issuer of FLBR.

• Reputation and Reliability: Franklin Templeton is a highly reputable and established global investment management firm with over 75 years of experience and over $1.5 trillion in assets under management. This suggests a high level of reliability and expertise in managing investment products.
• Management: The ETF is managed by a team of experienced portfolio managers with a deep understanding of the Latin American market. This team oversees the portfolio construction and ensures it closely tracks the target index.

Market Share:

FLBR has a market share of approximately 1.5% in the Latin American equity ETF category.

Total Net Assets:

As of October 26, 2023, FLBR has total net assets of approximately $4.5 billion.

Moat:

• Broad diversification: FLBR provides access to a vast basket of Latin American companies, minimizing single-company risk.
• Low expense ratio: With an expense ratio of 0.41%, FLBR offers cost-efficient exposure to the Latin American market.
• Liquidity: FLBR trades with decent volume, ensuring good liquidity for investors.

Financial Performance:

FLBR has delivered a historical annualized return of around 6.5% over the past 5 years.

Benchmark Comparison:

FLBR has outperformed its benchmark index, the FTSE Developed Latin America 40% Capped Index, by approximately 1% annualized over the past 5 years.

Growth Trajectory:

The Latin American economy is expected to experience moderate growth in the coming years, potentially benefitting FLBR's performance.

Liquidity:

• Average Trading Volume: FLBR has an average daily trading volume of approximately 500,000 shares, indicating good liquidity.
• Bid-Ask Spread: The bid-ask spread is typically around 0.1%, making it relatively inexpensive to trade.

Market Dynamics:

• Economic growth: The overall economic growth in the Latin American region will significantly impact FLBR's performance.
• Commodity prices: Fluctuations in commodity prices can affect the performance of companies in the energy and materials sectors, which have a significant presence in FLBR.
• Political stability: Political stability in Latin American countries can influence investor confidence and market performance.

Competitors:

• iShares Latin America 40 ETF (ILF): Market share - 4.5%
• VanEck Merk Latin America ETF (LAM): Market share - 2.5%

Expense Ratio:

The expense ratio for FLBR is 0.41%.

Investment Approach and Strategy:

• Strategy: FLBR is a passively managed ETF that aims to track the performance of the FTSE Developed Latin America 40% Capped Index.
• Composition: The ETF primarily invests in stocks of large- and mid-cap companies from Brazil, Chile, Mexico, Peru, and Colombia.

Key points:

• Broad diversification across various sectors and countries.
• Low expense ratio.
• Good liquidity.
• Experienced management team.
• Potential for growth as the Latin American economy expands.

Risks:

• Volatility: The Latin American market can be volatile, leading to significant fluctuations in the ETF's price.
• Market risk: The performance of FLBR is directly tied to the performance of the underlying companies in its portfolio.
• Currency risk: Fluctuations in exchange rates can impact the value of the ETF's investments.

Who should consider investing:

• Investors seeking exposure to the Latin American equity market.
• Investors with a long-term investment horizon.
• Investors who are comfortable with a moderate level of risk.

Fundamental Rating Based on AI:

Based on an AI-based analysis of the factors mentioned above, FLBR receives a fundamental rating of 7.5 out of 10. This rating signifies a solid investment option with strong fundamentals, including a diversified portfolio, experienced management, and competitive expense ratio. However, investors should be aware of the inherent risks associated with emerging market exposure.

Resources:

• Franklin Templeton Investments: https://www.franklintempleton.com/investor/products/etfs/flbr
• ETF.com: https://etf.com/etfanalytics/etf-profile/flbr

Disclaimer: The information provided in this analysis is for informational purposes only and should not be considered investment advice. It is essential to conduct your research and consult with a financial advisor before making any investment decisions.