Franklin FTSE Mexico ETF (FLMX)

Overview

The Franklin FTSE Mexico ETF (FLMX) seeks to track the investment results of the FTSE Mexico RIC Capped Index, which represents the performance of Mexican large and mid-capitalization stocks.

Reputation and Reliability

Franklin Templeton is a well-established and reputable asset management firm with a long history in the financial industry.

Management Expertise

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

Goal

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

Investment Approach and Strategy

Strategy: The ETF employs a passive management investment approach by tracking the FTSE Mexico RIC Capped Index.

Composition The ETF primarily holds stocks of Mexican companies included in the FTSE Mexico RIC Capped Index.

Market Share: FLMX's market share within the Mexico-focused ETF category is moderate, but it faces competition from larger and more established funds.

Total Net Assets (AUM): 178400000

Key Competitors

• iShares MSCI Mexico ETF (EWW)
• Amplify Mexico ETF (MXAO)

Competitive Landscape

The Mexico-focused ETF market is dominated by EWW. FLMX competes on expense ratio and tracking the FTSE index, while EWW tracks the MSCI index. MXAO is actively managed. FLMX offers a potentially cheaper option, while EWW provides greater liquidity.

Historical Performance: Historical performance data should be sourced from financial data providers. This includes returns for 1-year, 3-year, 5-year, and 10-year periods.

Benchmark Comparison: The ETF's performance should be compared to the FTSE Mexico RIC Capped Index. Any outperformance or underperformance should be investigated.

Expense Ratio: 0.19

Average Trading Volume

The average trading volume is relatively moderate, which could impact the ease of buying and selling shares, particularly for large orders.

Bid-Ask Spread

The bid-ask spread is generally tight, indicating reasonable liquidity, but it can widen during periods of market volatility.

Market Environment Factors

Economic indicators in Mexico, such as GDP growth, inflation, and interest rates, significantly affect FLMX. Sector-specific growth prospects within the Mexican economy, such as consumer discretionary or financials, also play a role. Global market conditions and investor sentiment towards emerging markets are also crucial.

Growth Trajectory

Growth trends of FLMX are tied to Mexican economic growth and investor appetite for emerging market exposure. Changes in strategy are not frequent, as it's designed to track an index. Holdings change based on index rebalancing.

Competitive Edge

FLMX's competitive advantage lies primarily in its low expense ratio compared to some competitors. It offers exposure to the Mexican equity market at a relatively lower cost. However, it lacks the AUM and trading volume of EWW, limiting its appeal to some investors. It aims to track the FTSE Mexico RIC Capped Index, providing a differentiated approach from MSCI.

Volatility

FLMX's volatility is linked to the inherent volatility of the Mexican stock market, influenced by political and economic instability.

Market Risk

Specific risks include currency risk (fluctuations in the Mexican Peso), political risk (policy changes in Mexico), and economic risk (potential recessions or downturns in the Mexican economy).

Ideal Investor Profile

The ideal investor is someone seeking exposure to the Mexican equity market for diversification or to capitalize on potential growth opportunities in Mexico.

Market Risk

FLMX is suitable for long-term investors with a moderate to high-risk tolerance who want passive exposure to the Mexican stock market. It is less suitable for active traders due to lower trading volume compared to its competitor.

The Franklin FTSE Mexico ETF provides exposure to the Mexican equity market via a passively managed fund that tracks the FTSE Mexico RIC Capped Index. It offers a competitive expense ratio but has less AUM and trading volume than its main competitor, EWW. Investors should be aware of the risks associated with investing in emerging markets like Mexico, including currency fluctuations and political instability. FLMX is best suited for long-term investors seeking diversification and exposure to Mexican equities at a relatively low cost.

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. Market data is subject to change. Investors should conduct their own due diligence before making any investment decisions.