Franklin Templeton, begun trading 4 new ETFs, the Franklin LibertyQ International Equity Hedged ETF (Nyse Arca: FLQH), the Franklin LibertyQ Emerging Markets ETF (Nyse Arca: FLQE), the Franklin LibertyQ Global Equity ETF (Nyse Arca: FLQG) and the Franklin LibertyQ Global Dividend ETF (Nyse Arca: FLQD) on Friday, June 03, 2015.
Here is a synopsis of the new ETF:
1.
FUND INFORMATION:
| Symbol: FLQH | Exchange: NYSE ARCA |
| Name: Franklin LibertyQ International Equity Hedged ETF | Net Expense Ratio: 0.40% |
FUND OBJECTIVE:
The Franklin LibertyQ International Equity Hedged ETF seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the LibertyQ International Equity Hedged Index.
REFERENCE INDEX:
The LibertyQ International Equity Hedged Index is a systematic, rules-based proprietary index that is owned and calculated by MSCI Inc. (MSCI). The International Equity Hedged Underlying Index is based on the MSCI EAFE Index using a methodology developed with Franklin Templeton to reflect Franklin Templeton’s desired investment strategy. The MSCI EAFE Index is a free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the U.S. and Canada.
The International Equity Hedged Underlying Index includes stocks from developed market countries in Europe, Australasia and the Far East that have favorable exposure to multiple investment style factors. The International Equity Hedged Underlying Index seeks to achieve a lower level of risk and higher risk-adjusted performance than the MSCI EAFE Index over the long term by applying a multi-factor selection process, which is designed to select equity securities from the MSCI EAFE Index that have exposure to 4 investment style factors – quality, value, momentum and low volatility. Factors are common characteristics that relate to a group of issuers or securities that are important in explaining the returns and risks of those issuers’ securities. The “quality” factor incorporates descriptors such as return on equity, earnings variability, cash return on assets and leverage. The “value” factor incorporates descriptors such as price to earnings, price to forward earnings, price to book value and dividend yield.
The “momentum” factor incorporates descriptors such as 6-month risk adjusted price momentum and 12-month risk-adjusted price momentum. The “low volatility” factor incorporates descriptors such as historical beta (i.e., a measure of the volatility of a security relative to the total market). The International Equity Hedged Underlying Indexincorporates a hedge against the currency risk of the securities included in the International Equity Hedged Underlying Index against the U.S. dollar.
Top 10 Holdings (06/03/16):
| ROG | ROCHE HOLDING AG GENUSSCHEIN | 2.11% |
| AZN | ASTRAZENECA PLC | 2.07% |
| UNA | UNILEVER NV CVA | 2.05% |
| NOVOB | NOVO NORDISK A/S B | 2.04% |
| ULVR | UNILEVER PLC | 2.03% |
| GSK | GLAXOSMITHKLINE PLC | 2.00% |
| NESN | NESTLE SA REG | 1.99% |
| 9433 | KDDI CORP | 1.99% |
| BATS | BRITISH AMERICAN TOBACCO PLC | 1.97% |
| RB | RECKITT BENCKISER GROUP PLC | 1.96% |
Geographic Breakdown (06/03/16):
| UNITED KINGDOM | 26.66% |
| JAPAN | 18.20% |
| AUSTRALIA | 13.61% |
| SWITZERLAND | 9.01% |
| SPAIN | 4.68% |
| GERMANY | 3.83% |
| HONG KONG | 3.54% |
| DENMARK | 3.30% |
| FRANCE | 3.03% |
| SWEDEN | 2.44% |
Useful Links:
FLQH Home Page
2.
FUND INFORMATION:
| Symbol: FLQE | Exchange: NYSE ARCA |
| Name: Franklin LibertyQ Emerging Markets ETF | Net Expense Ratio: 0.55% |
FUND OBJECTIVE:
The Franklin LibertyQ Emerging Markets ETF seek to provide investment results that closely correspond, before fees and expenses, to the performance of the LibertyQ Emerging Markets Index.
REFERENCE INDEX:
The LibertyQ Emerging Markets Index is a systematic, rules-based proprietary index that is owned and calculated by MSCI Inc. (MSCI). The Emerging Markets Underlying Index is based on the MSCI Emerging Markets Index using a methodology developed with Franklin Templeton to reflect Franklin Templeton’s desired investment strategy. The MSCI Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure the equity market performance of emerging markets.
The Emerging Markets Underlying Index includes stocks from emerging market countries that have favorable exposure to multiple investment style factors. The Emerging Markets Underlying Index seeks to achieve a lower level of risk and higher risk-adjusted performance than the MSCI Emerging Markets Index over the long term by applying a multi-factor selection process, which is designed to select equity securities from the MSCI Emerging Markets Index that have exposure to 4 investment style factors – quality, value, momentum and low volatility. Factors are common characteristics that relate to a group of issuers or securities that are important in explaining the returns and risks of those issuers’ securities. The “quality” factor incorporates descriptors such as return on equity, earnings variability, cash return on assets and leverage. The “value” factor incorporates descriptors such as price to earnings, price to forward earnings, price to book value and dividend yield. The “momentum” factor incorporates descriptors such as 6-month risk adjusted price momentum and 12-month risk-adjusted price momentum. The “low volatility” factor incorporates descriptors such as historical beta (i.e., a measure of the volatility of a security relative to the total market).
Top 10 Holdings (06/03/16):
| — | NEW TAIWAN DOLLAR | 14.28% |
| INDA | ISHARES MSCI INDIA ETF | 10.34% |
| — | UAE DIRHAM | 2.13% |
| — | QATARI RIAL | 1.91% |
| 3008 | LARGAN PRECISION CO LTD | 1.69% |
| 2412 | CHUNGHWA TELECOM CO LTD | 1.26% |
| 2357 | ASUSTEK COMPUTER INC | 1.16% |
| 2330 | TAIWAN SEMICONDUCTOR MANUFAC | 1.14% |
| 3045 | TAIWAN MOBILE CO LTD | 1.12% |
| 941 | CHINA MOBILE LTD | 1.12% |
Geographic Breakdown (06/03/16):
| SOUTH KOREA | 15.46% |
| TAIWAN | 14.30% |
| UNITED STATES | 10.34% |
| RUSSIA | 8.95% |
| CHINA | 6.79% |
| SOUTH AFRICA | 6.69% |
| BRAZIL | 6.48% |
| INDONESIA | 4.54% |
| MALAYSIA | 4.35% |
| MEXICO | 3.80% |
Useful Links:
FLQE Home Page
3.
FUND INFORMATION:
| Symbol: FLQG | Exchange: NYSE ARCA |
| Name: Franklin LibertyQ Global Equity ETF | Net Expense Ratio: 0.35% |
FUND OBJECTIVE:
The Franklin LibertyQ Global Equity ETF seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the LibertyQ Global Equity Index.
REFERENCE INDEX:
The LibertyQ Global Equity Index is a systematic, rules-based proprietary index that is owned and calculated by MSCI Inc. (MSCI). The Global Equity Underlying Index is based on the MSCI ACWI Index using a methodology developed with Franklin Templeton to reflect Franklin Templeton’s desired investment strategy. The MSCI ACWI Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets.
The Global Equity Underlying Index includes stocks from developed and emerging market countries that have favorable exposure to multiple investment style factors.
The Global Equity Underlying Index seeks to achieve a lower level of risk and higher risk-adjusted performance than the MSCI ACWI Index over the long term by applying a multi-factor selection process, which is designed to select equity securities from the MSCI ACWI Index that have exposure to 4 investment style factors – quality, value, momentum and low volatility. Factors are common characteristics that relate to a group of issuers or securities that are important in explaining the returns and risks of those issuers’ securities. The “quality” factor incorporates descriptors such as return on equity, earnings variability, cash return on assets and leverage. The “value” factor incorporates descriptors such as price to earnings, price to forward earnings, price to book value and dividend yield. The “momentum” factor incorporates descriptors such as 6-month risk adjusted price momentum and 12-month risk-adjusted price momentum. The “low volatility” factor incorporates descriptors such as historical beta (i.e., a measure of the volatility of a security relative to the total market).
Top 10 Holdings (06/03/16):
| — | NEW TAIWAN DOLLAR | 2.52% |
| INDA | ISHARES MSCI INDIA ETF | 1.48% |
| INTC | INTEL CORP | 1.04% |
| ROG | ROCHE HOLDING AG GENUSSCHEIN | 1.03% |
| CSCO | CISCO SYSTEMS INC | 1.03% |
| PFE | PFIZER INC | 1.02% |
| GILD | GILEAD SCIENCES INC | 1.02% |
| IBM | INTL BUSINESS MACHINES CORP | 1.02% |
| V | VISA INC CLASS A SHARES | 1.01% |
| UNH | UNITEDHEALTH GROUP INC | 1.01% |
Geographic Breakdown (06/03/16):
| UNITED STATES | 55.02% |
| UNITED KINGDOM | 9.12% |
| JAPAN | 4.79% |
| AUSTRALIA | 3.60% |
| CANADA | 2.55% |
| TAIWAN | 2.53% |
| SOUTH KOREA | 2.37% |
| SWITZERLAND | 2.36% |
| CHINA | 1.96% |
| HONG KONG | 1.84% |
Useful Links:
FLQG Home Page
4.
FUND INFORMATION:
| Symbol: FLQD | Exchange: NYSE ARCA |
| Name: Franklin LibertyQ Global Dividend ETF | Net Expense Ratio: 0.45% |
FUND OBJECTIVE:
The Franklin LibertyQ Global Dividend ETF seek to provide investment results that closely correspond, before fees and expenses, to the performance of the LibertyQ Global Dividend Index.
REFERENCE INDEX:
The LibertyQ Global Dividend Index is a systematic, rules-based proprietary index that is owned and calculated by MSCI Inc. (MSCI). The Global Dividend Underlying Index is based on the MSCI ACWI ex REITs Index using a methodology developed with Franklin Templeton to reflect Franklin Templeton’s desired investment strategy. The MSCI ACWI ex REITs Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets, excluding REIT securities.
The Global Dividend Underlying Index includes stocks from developed and emerging market countries with high and persistent dividend income that have favorable exposure to a quality investment style factor. Factors are common characteristics that relate to a group of issuers or securities that are important in explaining the returns and risks of those issuers’ securities. The Global Dividend Underlying Index seeks to achieve a lower level of risk and higher risk-adjusted performance than the MSCI ACWI ex REITs Index over the long term by applying dividend persistence and yield screens and the quality factor selection process. First, dividend persistence and yield screens are applied to the equity securities of the MSCI ACWI ex REITs Index in order to (i) exclude securities with negative year-over-year dividend per share growth in any of the last five years (securities with insufficient data to calculate such growth are also excluded) and (ii) exclude securities with a five year average monthly dividend yield of less than 1.2 times the average of the five year average monthly dividend yields of the securities of the MSCI ACWI ex REITs Index. Second, equity securities are then selected based on their exposure to the quality investment style factor, which incorporates descriptors such as return on equity, earnings variability, cash return on assets and leverage.
Top 10 Holdings (06/03/16):
| 939 | CHINA CONSTRUCTION BANK H | 2.21% |
| ROG | ROCHE HOLDING AG GENUSSCHEIN | 2.11% |
| NOVN | NOVARTIS AG REG | 2.11% |
| INTC | INTEL CORP | 2.09% |
| SAN | SANOFI | 2.07% |
| DD | DU PONT (E.I.) DE NEMOURS | 2.07% |
| BNS | BANK OF NOVA SCOTIA | 2.04% |
| UNA | UNILEVER NV CVA | 2.03% |
| BMY | BRISTOL MYERS SQUIBB CO | 2.03% |
| ULVR | UNILEVER PLC | 2.01% |
Geographic Breakdown (06/03/16):
| UNITED STATES | 32.96% |
| UNITED KINGDOM | 16.91% |
| AUSTRALIA | 11.80% |
| CANADA | 10.53% |
| SWITZERLAND | 4.22% |
| SWEDEN | 3.55% |
| JAPAN | 3.42% |
| BRAZIL | 3.12% |
| CHINA | 2.21% |
| FRANCE | 2.18% |
Useful Links:
FLQD Home Page