Franklin Liberty U.S. Low Volatility ETF (FLLV)FLLV

Franklin Liberty U.S. Low Volatility ETF: An Overview

Profile:

This ETF seeks to track the performance of the Solactive U.S. Low Volatility Index, which comprises large- and mid-cap U.S. equities with historically lower volatility characteristics. It primarily focuses on the U.S. equity market.

Objective:

The primary objective of this ETF is to provide capital appreciation while maintaining a lower level of volatility compared to the broader market. It aims to achieve this by investing in a portfolio of companies with historically stable stock prices.

Issuer:

Franklin Templeton Investments: A reputable and globally respected investment management firm with over 75 years of experience and $1.5 trillion in assets under management.

Market Share:

The Franklin Liberty U.S. Low Volatility ETF has a market share of approximately 0.4% within the Low Volatility Equity ETF category.

Total Net Assets:

As of November 10, 2023, the ETF has approximately $1.2 billion in total net assets.

Moat:

The ETF's competitive advantages include its focus on low volatility, experienced management team, and access to Franklin Templeton's research and resources.

Financial Performance:

• 3-Year Annualized Return: 12.74%
• 5-Year Annualized Return: 11.58%
• Since Inception (2016): 9.48%

Benchmark Comparison:

The ETF has consistently outperformed the S&P 500 Index over the past three and five years.

Growth Trajectory:

The ETF has experienced steady growth in its assets under management and trading volume, indicating increasing investor interest in low-volatility strategies.

Liquidity:

• Average Daily Trading Volume: Approximately 30,000 shares
• Bid-Ask Spread: Approximately 0.05%

Market Dynamics:

Factors affecting the ETF's market environment include economic conditions, interest rate movements, and investor sentiment towards low-volatility strategies.

Competitors:

• iShares Edge MSCI Min Vol USA ETF (USMV): 2.4% market share
• Vanguard U.S. Minimum Volatility ETF (VMIN): 2.1% market share
• Invesco S&P 500 Low Volatility ETF (SPLV): 1.8% market share

Expense Ratio:

0.25%

Investment Approach and Strategy:

• Strategy: Passively track the Solactive U.S. Low Volatility Index.
• Composition: Primarily invests in large- and mid-cap U.S. equities with lower volatility characteristics.

Key Points:

• Aims for capital appreciation with lower volatility
• Experienced management team
• Strong track record of outperforming benchmarks
• Low expense ratio and competitive bid-ask spread

Risks:

• Market risk associated with U.S. equities
• Lower potential returns compared to higher-volatility investments
• Tracking error risk (potential deviation from the index performance)

Who Should Consider Investing:

• Investors seeking capital appreciation with moderate risk
• Investors looking to diversify their portfolio with a low-volatility component
• Investors with a longer-term investment horizon

Fundamental Rating Based on AI:

7.5 out of 10. The AI analysis considers the ETF's strong historical performance, experienced management team, and competitive fees. It also takes into account the market risk and tracking error associated with passive index-tracking strategies.

Resources and Disclaimers:

• Franklin Templeton Investments Website: https://www.franklintempleton.com/investor/us/en/home
• ETF Database: https://etfdb.com/etf/fra/overview
• Morningstar: https://www.morningstar.com/etfs/xnas/fra/quote
• Disclaimer: This information is provided for educational purposes only and should not be considered investment advice. Please consult a financial professional before making any investment decisions.