Franklin FTSE Latin America ETF (FLLA)

Overview

The Franklin FTSE Latin America ETF (FLPA) seeks to track the investment results of the FTSE Latin America All Cap Index, providing exposure to a broad range of Latin American companies. It focuses on capturing the performance of the Latin American equity market, utilizing a passive investment strategy.

Reputation and Reliability

Franklin Templeton is a well-established asset manager with a long history and a reputation for providing a wide range of investment products.

Management Expertise

Franklin Templeton has a dedicated team of investment professionals with experience in managing international and emerging market equity strategies.

Goal

To track the investment results of the FTSE Latin America All Cap Index.

Investment Approach and Strategy

Strategy: The ETF employs a passive management strategy, aiming to replicate the performance of its benchmark index.

Composition The ETF primarily holds stocks of companies located in Latin America, reflecting the composition of the FTSE Latin America All Cap Index.

Market Share: FLPA's market share in the Latin America equities ETF sector is relatively small compared to larger competitors.

Total Net Assets (AUM): 40120000

Key Competitors

• ILF
• GXG
• LATM
• EWW

Competitive Landscape

The Latin America ETF market is dominated by larger, more established funds like ILF. FLPA offers a similar investment approach but faces challenges in gaining market share due to its smaller size and lower trading volume. Competitors have the advantage of greater brand recognition and liquidity.

Historical Performance: Historical performance data should be obtained from reliable financial data sources and presented in a table format for different time periods (e.g., 1 year, 3 years, 5 years, 10 years, and since inception).

Benchmark Comparison: Compare the ETF's returns to the FTSE Latin America All Cap Index to assess tracking efficiency. Quantify differences using tracking error metrics.

Expense Ratio: 0.19

Average Trading Volume

The average daily trading volume for FLPA is relatively low, which may impact the ease of buying and selling shares.

Bid-Ask Spread

The bid-ask spread for FLPA can be relatively wide, indicating higher transaction costs, especially for large trades.

Market Environment Factors

Economic indicators in Latin America (GDP growth, inflation, interest rates), political stability, commodity prices (especially oil and metals), and currency fluctuations significantly impact FLPA's performance.

Growth Trajectory

FLPA's growth trajectory depends on the overall economic growth and market sentiment towards Latin America. Changes in index composition and investment strategy remain consistent with its index tracking objective.

Competitive Edge

FLPA's competitive advantage lies in its low expense ratio compared to some competitors. It offers a cost-effective way to gain exposure to a broad Latin American equity market. Its passive management approach ensures that it closely tracks the FTSE Latin America All Cap Index. However, it lacks the brand recognition and liquidity of larger competitors, limiting its ability to attract significant inflows.

Volatility

FLPA exhibits higher volatility due to its exposure to emerging markets, which are inherently more volatile than developed markets. Review standard deviation and beta to quantify volatility.

Market Risk

FLPA is subject to market risk, including political instability, economic downturns, currency fluctuations, and regulatory changes in Latin American countries.

Ideal Investor Profile

FLPA is suitable for investors seeking diversified exposure to the Latin American equity market and willing to accept the associated risks of emerging market investments.

Market Risk

FLPA is best suited for long-term investors with a higher risk tolerance and a strategic allocation to emerging markets. It is not ideal for short-term traders due to its lower liquidity and potential for wider bid-ask spreads.

The Franklin FTSE Latin America ETF provides a cost-effective way to gain exposure to a broad range of Latin American equities. It tracks the FTSE Latin America All Cap Index, offering a diversified portfolio of companies in the region. However, it faces competition from larger and more liquid ETFs, which limits its market share. Investors should be aware of the inherent risks associated with emerging market investments, including political and economic instability, as well as currency fluctuations and low liquidity.

Data Sources:

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

Disclaimers:

The data provided is for informational purposes only and should not be considered investment advice. Past performance is not indicative of future results. Consult with a financial advisor before making any investment decisions.