Franklin U.S. Large Cap Multifactor ETF - Insights and Impact

ETFs Popularity Grows. Franklin U.S. Large Cap Multifactor Index ETF (FLQL) boasts strong assets and cost efficiency, with its top holdings being AAPL, NVDA, and MSFT. Investors may find significant value here.

Date: 26-03-2025

AI Rating: 6

Overview of FLQL
The Franklin U.S. Large Cap Multifactor Index ETF (FLQL) is noted for attracting over $1.45 billion in assets since its launch. This indicates strong investor confidence and interest in the ETF.

Performance Metrics
The fund has demonstrated varied performance, losing about 0.93% so far this year but achieving a 10.25% increase over the last year. This presents a mixed picture; while short-term performance appears slightly negative, the longer-term growth could attract investors looking for stable returns.

Top Holdings
Among its holdings, Apple Inc (AAPL) accounts for 6.92%, followed by Nvidia Corp (NVDA) and Microsoft Corp (MSFT). The concentrated exposure to these large-cap tech firms suggests that fluctuations in their stock prices could significantly impact FLQL's performance, potentially increasing its volatility.

Risk Management
With a beta of 0.94, FLQL is less volatile than the market, and a standard deviation of 16.08% over three years indicates a moderate risk level. Investors seeking stability with some growth potential may find FLQL appealing.

Expense Ratio and Dividends
The ETF has an annual operating expense of 0.15%, which is competitive and can lead to better long-term returns compared to higher-cost ETFs. The 12-month trailing dividend yield is reported at 1.19%, which, while modest, offers a source of income for investors.

Final Thoughts
Given the solid asset base, efficient costs, and diversified exposure to large-cap segments, FLQL appears to be a favorable choice for investors looking for long-term growth and stability within the Large Cap Blend segment of the market.

Stocks: AAPL NVDA MSFT FLQL SPY VOO