Franklin FTSE China ETF (FLCH)

Overview

The Franklin FTSE China ETF (FLCH) seeks to track the investment results of the FTSE China Index, providing exposure to large- and mid-capitalization China equities. The fund primarily focuses on the Chinese stock market, offering diversification across various sectors within the Chinese economy. Its investment strategy is passive, aiming to replicate the performance of the underlying index.

Reputation and Reliability

Franklin Templeton is a well-established global investment management firm with a long track record and a strong reputation in the ETF market.

Management Expertise

Franklin Templeton has a team of experienced portfolio managers and investment professionals overseeing their ETF offerings.

Goal

The ETF's goal is to track the investment results of the FTSE China Index before fees and expenses.

Investment Approach and Strategy

Strategy: The ETF uses a passive management strategy, attempting to replicate the performance of the FTSE China Index.

Composition The ETF primarily holds stocks of Chinese companies across various sectors including consumer discretionary, financials, technology and communication.

Market Share: FLCH has a moderate market share among China-focused ETFs.

Total Net Assets (AUM): 734418548

Key Competitors

• MCHI
• ASHR
• KWEB
• FXI

Competitive Landscape

The China ETF market is highly competitive. FLCH offers a broad exposure to the Chinese market, but its lower expense ratio gives it an advantage compared to certain competitors such as FXI. However, larger competitors like MCHI benefit from greater liquidity and trading volume. KWEB focuses on Chinese internet companies giving it a sector specific exposure versus FLCH.

Historical Performance: The historical performance varies depending on the period of time analyzed. This data needs to be pulled directly from a financial data source. It will show the returns over various time periods, such as 1-year, 3-year, 5-year, and 10-year periods. The dataset is the annual return of each year.

Benchmark Comparison: The ETF's performance should closely track the FTSE China Index. Deviations may occur due to tracking error, fees, and expenses. The benchmark is FTSE China Index.

Expense Ratio: 0.09

Average Trading Volume

The average daily trading volume of FLCH is moderately liquid, allowing investors to buy and sell shares without significant price impact.

Bid-Ask Spread

The bid-ask spread is typically narrow, indicating relatively low trading costs.

Market Environment Factors

The ETF's performance is highly correlated with the performance of the Chinese economy and stock market, influenced by factors such as economic growth, government policies, and global trade relations.

Growth Trajectory

The ETF's growth trajectory depends on the overall growth of the Chinese economy and the performance of the companies included in the FTSE China Index. Changes may be made to holdings to reflect index rebalancing.

Competitive Edge

FLCH's competitive advantage lies in its very low expense ratio of 0.09%, which makes it an attractive option for cost-conscious investors seeking broad exposure to the Chinese stock market. This can give it an edge in the price sensitive segment of the ETF market. The fund benefits from the established reputation of Franklin Templeton as a trusted ETF provider. However, the ETF has a limited AUM versus its peers.

Volatility

The ETF's volatility mirrors the volatility of the Chinese stock market. Emerging markets tend to be volatile.

Market Risk

The ETF is subject to market risk, which is the possibility of investment losses due to factors that affect the overall performance of financial markets.

Ideal Investor Profile

The ideal investor is seeking broad exposure to the Chinese stock market, seeking cost-effective diversification, and is comfortable with the risks associated with investing in emerging markets.

Market Risk

The ETF is suitable for long-term investors seeking to diversify their portfolios with exposure to China, especially those with a buy-and-hold strategy.

Franklin FTSE China ETF (FLCH) offers a cost-effective way to access the Chinese equity market. It tracks the FTSE China Index, providing broad exposure across various sectors. With a low expense ratio of 0.09%, FLCH is an attractive choice for investors seeking efficient diversification. However, investors should be aware of the risks associated with investing in emerging markets and the competitive landscape of the China ETF market.

Data Sources:

• Franklin Templeton Website
• ETF.com
• Morningstar
• etfdb.com
• Bloomberg

Disclaimers:

The information provided is for informational purposes only and should not be considered investment advice. Investment decisions should be based on individual circumstances and consultation with a qualified financial advisor. Market data is subject to change.