Franklin FTSE Taiwan ETF (FLTW)

Overview

The Franklin FTSE Taiwan ETF (FLTW) seeks to track the investment results of the FTSE Taiwan RIC Capped Index, which represents the performance of large- and mid-capitalization stocks in Taiwan. The fund offers exposure to the Taiwanese equity market, with a focus on companies across various sectors. It is designed for investors seeking broad diversification within the Taiwanese economy.

Reputation and Reliability

Franklin Templeton is a well-established and reputable global investment management firm with a long history in the financial services industry. It is known for offering a diverse range of investment products and has a solid track record.

Management Expertise

Franklin Templeton has a team of experienced investment professionals managing its ETFs. These professionals possess a deep understanding of global markets and utilize robust investment strategies.

Goal

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

Investment Approach and Strategy

Strategy: The fund employs a passive management strategy, seeking to replicate the performance of the FTSE Taiwan RIC Capped Index.

Composition The ETF primarily holds stocks of large- and mid-capitalization companies listed on Taiwanese exchanges. It aims for full replication of the index, holding stocks in similar proportions.

Market Share: FLTW has a moderate market share among Taiwan-focused ETFs.

Total Net Assets (AUM): 380000000

Key Competitors

• iShares MSCI Taiwan ETF (EWT)
• First Trust Taiwan AlphaDEX Fund (FTW)

Competitive Landscape

The competitive landscape for Taiwan ETFs is dominated by iShares MSCI Taiwan ETF (EWT), which has a significantly larger AUM and market share. FLTW competes on expense ratio and tracking the FTSE index. Advantages of FLTW could be a slightly lower expense ratio depending on market conditions, while a disadvantage is its smaller AUM and trading volume compared to EWT.

Historical Performance: Historical performance data is dependent on the specific timeframe and should be evaluated against its benchmark.

Benchmark Comparison: The ETF's performance should closely track the FTSE Taiwan RIC Capped Index. Any deviations should be attributed to tracking error and fund expenses.

Expense Ratio: 0.19

Average Trading Volume

The ETF's average trading volume is moderate and can vary depending on market conditions.

Bid-Ask Spread

The bid-ask spread can fluctuate based on trading volume and market volatility.

Market Environment Factors

Economic growth in Taiwan, global demand for Taiwanese exports (especially semiconductors), and geopolitical factors impacting the region influence FLTW's performance.

Growth Trajectory

The ETF's growth is tied to the performance of the Taiwanese equity market. Changes in strategy are unlikely given its passive nature, but holdings will be rebalanced to reflect index changes.

Competitive Edge

FLTW's competitive advantages include its low expense ratio and its tracking of the FTSE Taiwan RIC Capped Index, which may offer a different composition compared to other Taiwan ETFs. The fund's passive management approach ensures that it will closely follow its benchmark. However, the dominance of EWT in the market makes it challenging for FLTW to gain significant market share. Franklin Templetonu2019s brand recognition provides a degree of trust and stability.

Volatility

The ETF's volatility is tied to the volatility of the Taiwanese equity market and global market conditions. Emerging market equities can be volatile.

Market Risk

The ETF is subject to market risk associated with investments in Taiwanese equities, including economic downturns, political instability, and currency fluctuations.

Ideal Investor Profile

The ideal investor is someone seeking broad exposure to the Taiwanese equity market as part of a diversified portfolio. This includes those who may be looking for specific exposure to the Taiwanese economy.

Market Risk

The ETF is suitable for long-term investors seeking exposure to the Taiwanese equity market and who are comfortable with the risks associated with emerging markets.

The Franklin FTSE Taiwan ETF (FLTW) offers investors a low-cost and efficient way to gain exposure to the Taiwanese equity market. By tracking the FTSE Taiwan RIC Capped Index, it provides a diversified portfolio of large- and mid-capitalization Taiwanese stocks. However, it faces strong competition from larger, more liquid ETFs like EWT. Investors should consider their risk tolerance, investment horizon, and desired level of diversification before investing.

Data Sources:

• Franklin Templeton Website
• ETF.com
• Morningstar

Disclaimers:

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