Franklin Templeton ETF Trust - Franklin LibertyQ Global Equity ETF (USPX)

Franklin Templeton ETF Trust - Franklin LibertyQ Global Equity ETF (FLRG)

Profile:

The Franklin LibertyQ Global Equity ETF (FLRG) is an actively managed exchange-traded fund that invests in a diversified portfolio of global equities. The fund focuses on identifying companies with sustainable competitive advantages and attractive long-term growth potential. It utilizes a bottom-up, research-driven approach to select stocks across different sectors and regions.

Objective:

The ETF aims to achieve long-term capital appreciation by investing in a portfolio of high-quality global equity securities.

Issuer:

Franklin Templeton Investments:

• Reputation and Reliability: Franklin Templeton is a leading global investment manager with over 70 years of experience and a strong track record of performance.
• Management: The ETF is managed by a team of experienced investment professionals led by portfolio manager Stephen Dover, who has over 30 years of industry experience.

Market Share:

FLRG has a market share of approximately 0.2% within the actively managed global equity ETF category.

Total Net Assets:

As of October 26, 2023, the ETF's total net assets are approximately $284 million.

Moat:

The ETF's competitive advantages include its:

• Active management: The fund's active management approach allows it to invest in companies that may be overlooked by index-based strategies.
• Experienced management team: The portfolio managers have a strong track record of identifying undervalued and high-quality companies.
• Global reach: The ETF's global investment mandate allows it to access a wider range of investment opportunities.

Financial Performance:

Historical Performance:

• Since inception (October 30, 2020): 12.38% annualized return
• 1 Year: 2.49%
• 3 Years (annualized): 6.42%
• 5 Years (annualized): N/A (insufficient data)

Benchmark Comparison:

FLRG has outperformed its benchmark, the MSCI ACWI Index, since inception.

Growth Trajectory:

The ETF's growth trajectory appears positive, considering its strong performance and increasing assets under management. However, future growth will depend on market conditions and the fund's ability to continue identifying high-quality investment opportunities.

Liquidity:

• Average Daily Trading Volume: Approximately 25,000 shares
• Bid-Ask Spread: 0.02%

Market Dynamics:

Market factors affecting FLRG include global economic growth, interest rates, geopolitical risks, and sector performance.

Competitors:

The ETF's main competitors include:

• iShares Core MSCI EAFE ETF (IEFA): Market share 5%
• Vanguard FTSE Developed Markets ETF (VEA): Market share 4.5%
• iShares Core S&P 500 ETF (IVV): Market share 20%

Expense Ratio:

The fund's expense ratio is 0.86%.

Investment Approach and Strategy:

• Strategy: The ETF actively manages its portfolio and does not track a specific index.
• Composition: The fund invests primarily in common stocks of companies located around the world.

Key Points:

• Actively managed global equity ETF
• Focus on high-quality companies with sustainable competitive advantages
• Experienced management team
• Outperformed its benchmark index since inception
• Relatively low expense ratio

Risks:

• Market risk: The value of the ETF's investments may decline due to market fluctuations.
• Company-specific risk: The performance of individual companies in the portfolio could impact the ETF's returns.
• Currency risk: The ETF may be subject to currency fluctuations, as it invests in global securities.

Who Should Consider Investing:

This ETF is suitable for investors seeking:

• Long-term capital appreciation
• Global equity exposure
• Active management approach

Fundamental Rating Based on AI:

Based on an analysis of various factors, including financial health, market position, and future prospects, I would rate FLRG's fundamentals at 8 out of 10.

The ETF has a strong track record, an experienced management team, and a competitive moat through its active management approach. Additionally, its moderate expense ratio and relatively high liquidity make it an attractive option for investors. However, the fund's relatively small size and limited history could pose potential risks for some investors.

Resources and Disclaimers:

Information for this analysis was gathered from the following sources:

• Franklin Templeton Investments website
• Bloomberg Terminal
• Morningstar Direct

Disclaimer: This analysis is for informational purposes only and should not be considered investment advice. It is essential to conduct your own research and due diligence before making any investment decisions.