Franklin Templeton ETF Trust - Franklin LibertyQ Global Equity ETF (USPX)

Overview

The Franklin LibertyQ Global Equity ETF (FLQG) seeks to provide investment results that closely correspond to the performance of the LibertyQ Global Equity Index. It employs a rules-based approach to select and weight securities based on quality, value, momentum, and low volatility factors, targeting a diversified portfolio of global equities.

Reputation and Reliability

Franklin Templeton is a well-established global investment management firm with a long history and strong reputation.

Management Expertise

Franklin Templeton has extensive experience in managing equity and factor-based ETFs, with a dedicated team overseeing the LibertyQ series.

Goal

Seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the LibertyQ Global Equity Index.

Investment Approach and Strategy

Strategy: The ETF aims to track the LibertyQ Global Equity Index, which utilizes a multi-factor model based on quality, value, momentum, and low volatility to select and weight securities.

Composition The ETF primarily holds a diversified portfolio of global equities, focusing on large and mid-cap companies across developed and emerging markets.

Market Share: FLQG's market share within the global equity ETF category is relatively small compared to larger, more established ETFs.

Total Net Assets (AUM): 285416623

Key Competitors

• iShares MSCI ACWI ETF (ACWI)
• Vanguard Total World Stock ETF (VT)
• SPDR Portfolio Developed World ex-US ETF (SPDW)

Competitive Landscape

The global equity ETF market is highly competitive, with numerous ETFs offering exposure to similar asset classes. FLQG competes on its multi-factor approach and aims to provide potentially enhanced returns compared to broad market-cap weighted ETFs. However, it faces stiff competition from larger, more liquid ETFs with lower expense ratios.

Historical Performance: Historical performance data should be reviewed to assess the ETFu2019s returns over various time periods, including 1-year, 3-year, 5-year, and 10-year periods.

Benchmark Comparison: The ETF's performance should be compared to the LibertyQ Global Equity Index and other relevant global equity benchmarks to evaluate its effectiveness.

Expense Ratio: 0.45

Average Trading Volume

The ETF's average trading volume is moderate, which may impact the ease of buying and selling shares, especially for large orders.

Bid-Ask Spread

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

Market Environment Factors

Global economic growth, interest rate policies, and geopolitical events can influence the performance of the ETF's underlying holdings.

Growth Trajectory

The ETF's growth trajectory depends on its ability to attract assets and generate competitive returns compared to its peers, while also remaining sensitive to factor rotations in the market.

Competitive Edge

FLQG's competitive edge lies in its multi-factor investment approach, which seeks to identify companies with attractive characteristics based on quality, value, momentum, and low volatility. This approach aims to provide potentially enhanced returns and risk-adjusted performance compared to traditional market-cap weighted indexes. The ETF's relatively lower expense ratio compared to other factor-based ETFs can also be considered an advantage. However, factor strategies can experience periods of underperformance, and the ETF's success depends on the effectiveness of its factor selection methodology. The ETF is also relatively new compared to competitors.

Volatility

The ETF's volatility will be influenced by the volatility of its underlying equity holdings and the overall market environment.

Market Risk

The ETF is subject to market risk, which is the risk that the overall market declines, leading to losses in the ETF's value. Specific risks include currency risk, emerging markets risk, and sector-specific risks depending on the ETF's holdings.

Ideal Investor Profile

The ETF is suitable for investors seeking diversified exposure to global equities with a focus on factor-based investing.

Market Risk

The ETF is suitable for long-term investors seeking to enhance returns and manage risk through a multi-factor approach.

The Franklin LibertyQ Global Equity ETF (FLQG) offers a multi-factor approach to global equity investing, seeking to outperform broad market-cap weighted indexes. While it offers a potentially enhanced return profile, it is subject to market risk and the potential for factor strategies to underperform. Its relatively small AUM and trading volume compared to its competitors make it important for investors to consider liquidity. It best suits long-term investors looking for factor exposure but may want to consider larger ETFs for liquidity purposes.

Data Sources:

• Franklin Templeton Website
• ETF.com
• Morningstar

Disclaimers:

The data provided is for informational purposes only and should not be considered investment advice. Investment decisions should be based on individual circumstances and after consulting with a qualified financial advisor. Market share data is approximate and may vary depending on the source.