Franklin FTSE Brazil ETF (FLBR)

Overview

The Franklin FTSE Brazil ETF (FLBR) seeks to track the investment results of the FTSE Brazil RIC Capped Index, which represents the performance of Brazilian large- and mid-capitalization stocks. The fund offers exposure to the Brazilian equity market and aims for long-term growth by tracking the index's performance. The asset allocation is primarily focused on equity securities. The investment strategy is passive, seeking to replicate the index's holdings and weightings.

Reputation and Reliability

Franklin Templeton is a well-established global investment management firm with a long history and a solid reputation. They are known for providing a wide range of investment products and services.

Management Expertise

Franklin Templeton has a dedicated team of portfolio managers and research analysts with expertise in global equity markets, including emerging markets like Brazil.

Goal

To track the investment results of the FTSE Brazil RIC Capped Index.

Investment Approach and Strategy

Strategy: The ETF aims to track the FTSE Brazil RIC Capped Index, a market-capitalization weighted index representing the performance of Brazilian large- and mid-cap stocks.

Composition The ETF primarily holds stocks of Brazilian companies across various sectors.

Market Share: FLBR's market share is smaller compared to its main competitor.

Total Net Assets (AUM): 393800000

Key Competitors

• iShares MSCI Brazil ETF (EWZ)
• Amplify Brazil Symmetry 50 ETF (BZOO)

Competitive Landscape

The Brazilian equity ETF market is dominated by EWZ, which holds the largest AUM and market share. FLBR offers a slightly different index tracking approach with the FTSE Brazil RIC Capped Index. The competitive advantages of FLBR lie in its lower expense ratio sometimes and the potential for slight tracking differences compared to EWZ. The disadvantage is its lower liquidity.

Historical Performance: Historical performance data should be obtained from financial data providers for accurate figures. For example, annual returns for the past 5 years could be [10.5, -5.2, 22.1, 8.7, -12.3].

Benchmark Comparison: Benchmark comparison can be done by plotting FLBR's returns against the FTSE Brazil RIC Capped Index's returns over time.

Expense Ratio: 0.19

Average Trading Volume

The average trading volume indicates the ease of buying or selling the ETF and is relatively low.

Bid-Ask Spread

The bid-ask spread represents the difference between the highest price a buyer is willing to pay and the lowest price a seller is willing to accept, and may be narrow depending on the trading volume.

Market Environment Factors

Economic indicators such as GDP growth, inflation, interest rates, and currency fluctuations in Brazil significantly impact FLBR. Sector growth prospects within the Brazilian economy, such as materials, financials, and energy, influence the ETF's performance. Current market conditions, including global trade policies and investor sentiment towards emerging markets, affect FLBR.

Growth Trajectory

Growth trends may include increasing AUM, changes in holdings to better reflect the index, and adjustments to the investment strategy to optimize tracking. Any updates related to index methodology or other changes by FTSE will impact the strategy and holdings.

Competitive Edge

FLBR's competitive edge lies primarily in its lower expense ratio compared to some competitors, making it an attractive option for cost-conscious investors. The FTSE Brazil RIC Capped Index offers a slightly different weighting methodology which may result in performance variations versus other Brazil ETFs. Franklin Templeton's strong reputation as a global investment manager also provides a competitive advantage. However, its smaller AUM and lower trading volume may be a disadvantage compared to larger peers.

Volatility

Historical volatility can be measured by calculating the standard deviation of FLBR's returns over a specific period (e.g., 3-year or 5-year).

Market Risk

Specific risks associated with FLBR include political and economic instability in Brazil, currency risk due to fluctuations in the Brazilian Real, and sector-specific risks related to the dominant industries in the Brazilian market.

Ideal Investor Profile

The ideal investor for FLBR is someone seeking exposure to the Brazilian equity market for diversification or to capitalize on potential growth in Brazil. This investor is comfortable with the risks associated with emerging markets and currency fluctuations.

Market Risk

FLBR is suitable for long-term investors who have a higher risk tolerance and are seeking potential capital appreciation through exposure to the Brazilian stock market. It may also appeal to active traders looking to capitalize on short-term market movements, but they should be aware of liquidity considerations.

The Franklin FTSE Brazil ETF (FLBR) offers exposure to the Brazilian equity market by tracking the FTSE Brazil RIC Capped Index. Its advantages include a competitive expense ratio and Franklin Templeton's reputable management. However, the fund faces competition from larger, more liquid ETFs such as EWZ and it carries risks associated with emerging market investing. This ETF is suitable for long-term investors seeking growth potential in Brazil with a higher risk tolerance.

Data Sources:

• Franklin Templeton website
• ETF.com
• Morningstar
• Financial Times

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered investment advice. Investors should conduct their own research and consult with a financial advisor before making any investment decisions. Market conditions and ETF performance can change, and past performance is not indicative of future results.