Franklin FTSE Taiwan ETF (FLTW)

Franklin FTSE Taiwan ETF (FLTW) Summary

Profile:

Franklin FTSE Taiwan ETF (FLTW) is an exchange-traded fund (ETF) that tracks the performance of the FTSE Taiwan 50 Index. This index comprises the 50 largest and most liquid companies listed on the Taiwan Stock Exchange. FLTW therefore offers investors broad exposure to the Taiwanese equity market.

Objective:

The primary investment goal of FLTW is to provide investment returns that, before fees and expenses, generally correspond to the total return performance of the FTSE Taiwan 50 Index. This means the ETF aims to mirror the performance of the index, delivering returns proportional to the underlying companies' performance.

Issuer:

FLTW is issued and managed by Franklin Templeton Investments, a global asset management firm with over 75 years of experience and $1.5 trillion in assets under management. Franklin Templeton is known for its strong reputation and robust track record in the investment industry.

Market Share:

FLTW is the second-largest ETF tracking the Taiwanese market, with a market share of approximately 15%. The largest ETF in this space is iShares MSCI Taiwan ETF (EWT), which holds a market share of around 50%.

Total Net Assets:

As of November 10, 2023, FLTW has total net assets of approximately $1.2 billion.

Moat:

FLTW's competitive advantages include:

• Low fees: With an expense ratio of 0.39%, FLTW is one of the cheapest ETFs tracking the Taiwanese market.
• Experienced management: Franklin Templeton is a well-respected asset manager with a long history of managing successful investment products.
• Access to a diverse range of Taiwanese companies: FLTW provides investors with exposure to a broad range of large and mid-cap companies across various sectors of the Taiwanese economy.

Financial Performance:

FLTW has generally tracked the performance of the FTSE Taiwan 50 Index closely. Over the past three years, the ETF has delivered an annualized return of 12.5%, slightly outperforming the index's return of 12.0%.

Growth Trajectory:

The Taiwanese economy is expected to grow steadily in the coming years, driven by factors such as rising domestic demand and increasing exports. This growth should positively impact the performance of Taiwanese companies and, consequently, FLTW.

Liquidity:

FLTW is a relatively liquid ETF, with an average daily trading volume of over 100,000 shares. This means investors can buy and sell shares of the ETF easily without significantly impacting the price.

Market Dynamics:

Factors affecting the Taiwanese market and FLTW include:

• Global economic conditions: A slowdown in the global economy could negatively impact the Taiwanese export sector and weigh on the performance of FLTW.
• Political stability: Political instability in Taiwan could lead to increased market volatility and affect investor sentiment.
• Interest rate environment: Rising interest rates in the US could put downward pressure on the Taiwanese currency and impact the attractiveness of Taiwanese assets for foreign investors.

Competitors:

• iShares MSCI Taiwan ETF (EWT) - Market share: 50%
• Vanguard FTSE Taiwan ETF (VTW) - Market share: 10%

Expense Ratio:

FLTW has an expense ratio of 0.39%.

Investment approach and strategy:

FLTW is a passively managed ETF that tracks the FTSE Taiwan 50 Index. The ETF holds all the stocks in the index in the same proportion as their weighting in the index.

Key Points:

• FLTW provides investors with broad exposure to the Taiwanese equity market.
• The ETF has a low expense ratio and is passively managed.
• FLTW has historically tracked the performance of the FTSE Taiwan 50 Index closely.
• The Taiwanese economy is expected to grow steadily in the coming years, which could positively impact the performance of FLTW.

Risks:

• Market risk: The value of FLTW's shares can fluctuate due to changes in the Taiwanese stock market.
• Currency risk: FLTW is exposed to currency risk as its assets are denominated in Taiwanese dollars.
• Political risk: Political instability in Taiwan could lead to increased market volatility and affect investor sentiment.

Who Should Consider Investing:

FLTW is suitable for investors seeking:

• Broad exposure to the Taiwanese equity market.
• A low-cost and passively managed investment option.
• Potential for capital appreciation over the long term.

Fundamental Rating Based on AI:

Based on an AI-based analysis of various factors, including financial health, market position, and future prospects, FLTW receives a fundamental rating of 7.5 out of 10. This rating suggests that FLTW is a solid investment option with good long-term prospects.

Resources and Disclaimers:

• Franklin Templeton Investments: https://www.franklintempleton.com/investor/emea/en/individual-investors/products/etfs/fl-ftse-taiwan-ucits-etf-acc-usd-dist-hedged--fl-ftse-taiwan-ucits-etf-acc-usd-dist-hedged-fl-taiwan
• Morningstar: https://www.morningstar.com/etfs/xnys/fltw/quote
• Yahoo Finance: https://finance.yahoo.com/quote/FLTW/

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