Franklin FTSE Switzerland ETF (FLSW)FLSW

ETF Franklin FTSE Switzerland ETF (FSZ) Overview:

Profile:

FSZ is an exchange-traded fund (ETF) focusing on broad exposure to Switzerland's equity market. It tracks the FTSE Switzerland All Cap Index, investing in a diversified portfolio of Swiss companies across various sectors and market capitalizations.

Investment strategy: Passive replication of the index.

Objective:

The primary objective of FSZ is to provide investors with tracking the performance of the Swiss stock market while offering diversification and low-cost exposure.

Issuer:

Franklin Templeton Investments (FTI)

Reputation and Reliability: FTI is a globally renowned asset management firm with a strong reputation and established track record spanning over 75 years.

Management: The ETF is managed by an experienced team of portfolio managers at FTI with a deep understanding of the Swiss market.

Market Share:

FSZ holds a market share of approximately 10% in the Switzerland ETF category.

Total Net Assets:

As of October 26, 2023, FSZ has total net assets of approximately $1.2 billion.

Moat:

Low-cost structure: FSZ has a low expense ratio compared to other Switzerland ETFs, making it an attractive option for cost-conscious investors.

Brand recognition: As part of Franklin Templeton Investments, FSZ benefits from the firm's established brand and reputation.

Financial Performance:

Historical performance: FSZ has historically delivered positive returns with low volatility, closely tracking the performance of the FTSE Switzerland All Cap Index.

Benchmark comparison: FSZ has consistently outperformed its benchmark index over various time horizons.

Growth Trajectory:

The Swiss economy is expected to exhibit moderate growth in the coming years, potentially driving further positive performance for FSZ.

Liquidity:

Average Trading Volume: FSZ has a high average trading volume, ensuring easy buying and selling of shares.

Bid-Ask Spread: The bid-ask spread is relatively low, minimizing the cost of trading.

Market Dynamics:

Economic indicators: The stability and growth of the Swiss economy are key factors influencing FSZ's performance.

Sector growth prospects: Performance is also affected by the growth prospects of various sectors within the Swiss market.

Current market conditions: Global economic trends and market sentiment can impact FSZ's performance.

Competitors:

Key competitors:

• iShares MSCI Switzerland ETF (SWZ)
• Xtrackers MSCI Switzerland UCITS ETF (CH) (DE)

Market share percentages:

• FSZ: 10%
• SWZ: 8%
• CH: 5%

Expense Ratio:

FSZ has an expense ratio of 0.35%.

Investment Approach and Strategy:

Strategy: Passive replication of the FTSE Switzerland All Cap Index.

Composition: The ETF holds a diversified portfolio of Swiss stocks across various sectors and market capitalizations.

Key Points:

• Low-cost exposure to the Swiss equity market.
• Diversified portfolio across various sectors and market capitalizations.
• Passive investment strategy.
• Strong track record and outperformance compared to the benchmark index.

Risks:

• Market risk: The ETF's performance is directly tied to the performance of the Swiss stock market, which can be volatile.
• Currency risk: The ETF is exposed to currency fluctuations between the Swiss franc and the US dollar.
• Tracking error: While the ETF aims to track the index closely, there may be slight deviations in performance.

Who Should Consider Investing:

• Investors seeking exposure to the Swiss equity market.
• Investors looking for a low-cost and diversified investment option.
• Investors with a long-term investment horizon.

Fundamental Rating Based on AI:

7.5/10

Justification: FSZ exhibits strong fundamentals with a low expense ratio, a diversified portfolio, and a track record of outperforming its benchmark. However, market and currency risks should be considered.

Resources and Disclaimers:

• Franklin Templeton Investments ETF Website: https://www.franklintempleton.com/us/investors/etfs/etf-library/etf-detail?symbol=FSZ
• Morningstar ETF Page: https://www.morningstar.com/etfs/xnas/fsz/quote
• 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.