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

Franklin LibertyQ Global Equity ETF (FLQL) Summary

Profile

FLQL is an actively managed ETF that invests in a diversified portfolio of global equities. It seeks to achieve long-term capital appreciation by investing in companies with strong fundamentals and attractive growth prospects. The ETF utilizes a quantitative model to identify undervalued stocks across various sectors and countries.

Objective

The primary objective of FLQL is to provide investors with long-term capital appreciation through exposure to a diversified portfolio of global equities.

Issuer

The issuer of FLQL is Franklin Templeton ETF Trust, a subsidiary of Franklin Resources, Inc. (BEN).

Reputation and Reliability

Franklin Templeton is a global investment management firm with over 75 years of experience and a strong reputation for its investment expertise. The firm manages over $1.5 trillion in assets across various investment products.

Management

The portfolio management team responsible for FLQL has extensive experience in global equity investing. The team utilizes a quantitative model and fundamental analysis to identify investment opportunities.

Market Share

FLQL's market share in the global equity ETF space is relatively small, representing approximately 0.02% of the total assets invested in global equity ETFs.

Total Net Assets

As of November 3, 2023, FLQL has approximately $23 million in total net assets.

Moat

FLQL's competitive advantages include:

• Quantitative Model: The ETF leverages a proprietary quantitative model to identify undervalued stocks, potentially offering an edge over traditional investment approaches.
• Global Diversification: The ETF's global investment strategy provides investors with exposure to diverse markets and sectors, potentially mitigating risks associated with any single region or industry.
• Experienced Management Team: Franklin Templeton's experienced investment team brings a wealth of knowledge and expertise to managing the ETF.

Financial Performance

FLQL has a relatively short track record, having launched in December 2021. Since its inception, the ETF has outperformed its benchmark, the MSCI World Index, by a small margin. However, it is important to note that past performance is not indicative of future results.

Growth Trajectory

While FLQL has shown promising initial performance, it is still early to assess its long-term growth trajectory. The ETF's success will depend on its ability to consistently identify undervalued stocks and generate returns for investors.

Liquidity

FLQL has an average daily trading volume of approximately 10,000 shares. The bid-ask spread is typically narrow, indicating relatively low trading costs.

Market Dynamics

Market dynamics that could impact FLQL include:

• Global economic growth: Strong global economic growth could benefit the ETF's performance by driving corporate earnings and stock prices higher.
• Interest rate environment: Rising interest rates could make equities less attractive relative to fixed-income investments, potentially impacting the ETF's performance.
• Geopolitical risks: Global events such as trade tensions or political instability could create volatility in the markets, affecting the ETF's performance.

Competitors

FLQL's main competitors in the global equity ETF space include:

• iShares Core MSCI World ETF (IWDA) - Market share: 6.5%
• Vanguard FTSE All-World UCITS ETF (VWRL) - Market share: 5.8%
• Xtrackers MSCI World UCITS ETF (1C) - Market share: 4.2%

Expense Ratio

FLQL has an expense ratio of 0.58%.

Investment Approach and Strategy

• Strategy: FLQL utilizes a quantitative model to identify undervalued stocks across various sectors and countries. The model considers factors such as financial ratios, price momentum, and analyst estimates.
• Composition: The ETF primarily invests in common stocks of companies located in developed and emerging markets. The portfolio is diversified across various sectors, with no single sector representing more than 25% of the total assets.

Key Points

• Actively managed global equity ETF with a focus on undervalued stocks.
• Strong track record since inception, outperforming its benchmark.
• Experienced management team with a proven quantitative model.
• Relatively low expense ratio.

Risks

• Market volatility: The ETF is subject to market volatility, which can lead to fluctuations in its share price.
• Quantitative model risk: The ETF's reliance on a quantitative model for stock selection carries the risk of model error or unexpected market behavior.
• Currency risk: The ETF's global exposure can lead to currency risk, as fluctuations in exchange rates can impact its performance.

Who Should Consider Investing

FLQL is suitable for investors seeking:

• Long-term capital appreciation through exposure to global equities.
• Active management with a focus on undervalued stocks.
• A diversified portfolio across sectors and countries.

Fundamental Rating Based on AI

Based on an AI-based analysis of various factors, including financial health, market position, and future prospects, FLQL receives a fundamental rating of 7 out of 10. The AI analysis suggests that the ETF has a strong investment approach and a solid track record, but its small market share and short history leave room for improvement.

Resources and Disclaimers

• Franklin Templeton ETF Trust website: https://www.franklintempleton.com/investments/etfs/flql
• Morningstar ETF report: https://www.morningstar.com/etfs/xus/flql/quote

Disclaimer: The information provided in this summary is for informational purposes only and should not be considered as investment advice. Please consult with a qualified financial advisor before making any investment decisions.