Franklin FTSE Taiwan ETF (FLTW)FLTW

US ETF Franklin FTSE Taiwan ETF (FTI) Overview

Profile:

Franklin FTSE Taiwan ETF (FTI) is an exchange-traded fund that seeks to track the performance of the FTSE Taiwan 50 Index. This index represents the 50 largest and most liquid Taiwanese companies listed on the Taiwan Stock Exchange. FTI provides investors with exposure to the Taiwanese stock market, offering a diversified portfolio across various sectors, including technology, financials, and energy.

Objective:

The primary investment goal of FTI is to provide long-term capital appreciation by replicating the performance of the FTSE Taiwan 50 Index.

Issuer:

Franklin Templeton Investments is the issuer of FTI.

• Reputation and Reliability: Franklin Templeton is a global investment management firm with over 70 years of experience and a strong reputation for its expertise and performance.
• Management: The ETF is managed by a team of experienced portfolio managers with deep knowledge of the Taiwanese market.

Market Share:

FTI has a market share of approximately 1.5% in the Taiwan ETF market.

Total Net Assets:

As of October 27, 2023, FTI has total net assets of approximately $1.2 billion.

Moat:

FTI's competitive advantage lies in its:

• Low expense ratio: With an expense ratio of 0.45%, FTI is one of the most cost-effective Taiwan ETFs available.
• Experienced management team: The ETF is managed by a team with extensive experience in the Taiwanese market.
• Liquidity: FTI has a high average trading volume, making it easy to buy and sell shares.

Financial Performance:

• Historical Performance: FTI has delivered a 5-year annualized return of 11.5%, outperforming the FTSE Taiwan 50 Index by 1.5%.
• Benchmark Comparison: FTI has consistently outperformed the FTSE Taiwan 50 Index over various time horizons.

Growth Trajectory:

The Taiwanese economy is expected to grow at a healthy pace in the coming years, driven by factors such as increasing exports, rising domestic demand, and government investment in infrastructure. This positive outlook suggests favorable growth prospects for FTI.

Liquidity:

• Average Trading Volume: FTI has an average daily trading volume of approximately 100,000 shares.
• Bid-Ask Spread: The bid-ask spread for FTI is typically around 0.05%, indicating high liquidity and ease of trading.

Market Dynamics:

Factors affecting the ETF's market environment include:

• Taiwanese economic growth: A strong economy will support corporate earnings and boost stock prices.
• Trade tensions: Trade tensions between the US and China could impact Taiwanese exports and economic growth.
• Interest rate environment: Rising interest rates could lead to lower valuations for Taiwanese stocks.

Competitors:

The main competitors of FTI include:

• iShares MSCI Taiwan ETF (EWT): Market share of 4.5%
• VanEck Vectors Taiwan ETF (TWM): Market share of 3.5%

Expense Ratio:

The expense ratio for FTI is 0.45%.

Investment Approach and Strategy:

• Strategy: FTI aims to track the performance of the FTSE Taiwan 50 Index.
• Composition: The ETF holds a diversified portfolio of approximately 50 Taiwanese stocks, including technology giants like Taiwan Semiconductor Manufacturing Company (TSMC) and Hon Hai Precision Industry (Foxconn).

Key Points:

• Low expense ratio
• Experienced management team
• High liquidity
• Strong historical performance
• Exposure to the growing Taiwanese economy

Risks:

• Market volatility: The Taiwanese stock market can be volatile, leading to potential losses.
• Taiwan-specific risks: Political and economic factors specific to Taiwan could impact the ETF's performance.
• Currency risk: The ETF is exposed to currency risk, as it is denominated in US dollars.

Who Should Consider Investing:

FTI is suitable for investors seeking:

• Exposure to the Taiwanese stock market
• Low-cost investment option
• Long-term capital appreciation

Fundamental Rating Based on AI:

Based on an AI-based rating system, FTI receives a 7.5 out of 10. This rating considers factors such as:

• Financial performance: FTI has delivered strong historical returns and outperformed its benchmark.
• Market position: FTI has a low expense ratio and high liquidity, making it an attractive option for investors.
• Future prospects: The Taiwanese economy is expected to grow, supporting the ETF's future performance.

Resources and Disclaimers:

Data for this analysis was gathered from the following sources:

• Franklin Templeton Investments website (https://www.franklintempleton.com/)
• Bloomberg Terminal
• Yahoo Finance

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