Franklin U.S. Large Cap Multifactor ETF Shows Strong Potential

The Franklin U.S. Large Cap Multifactor Index ETF (FLQL) highlights solid performance and low expenses. Strong holdings in tech and consumer discretionary sectors appeal to investors looking for stability and growth, making FLQL a promising investment in large cap blend segment.

Date: 30-05-2025

AI Rating: 7

Performance Insights: The Franklin U.S. Large Cap Multifactor Index ETF (FLQL) shows a notable performance in the current year with an increase of approximately 2.39% thus far and a remarkable 12.76% over the past year. Its consistent return over the last year indicates a strong investor confidence among large-cap funds. Maintaining a beta of 0.93 suggests that FLQL is less volatile than the broader market, which is attractive for risk-averse investors looking to mitigate fluctuations in their portfolios.

Expense Ratio and Yield: With an annual operating expense ratio of only 0.15%, the ETF presents a cost-effective option for investors. Lower expense ratios are advantageous as they result in higher net returns over the long run. In addition, the 12-month trailing dividend yield of 1.15% offers a pleasant supplemental income for long-term holders, reinforcing the value proposition of this ETF.

Sector Allocation: The ETF has a substantial 33.3% allocation to the Information Technology sector, which is significant given the sector's potential for growth. With major holdings including Apple Inc. (AAPL), Nvidia Corp (NVDA), and Microsoft Corp (MSFT), the ETF is positioned in areas of strength within the market where technological innovation is rapidly advancing.

Market Outlook: Given its diversified holding across 214 companies, FLQL is effectively reducing idiosyncratic risk while presenting an opportunity to benefit from growth in larger, more stable companies. The broader large-cap blend segment currently benefits from recovering economic conditions and consumer spending trends post-pandemic. Overall, the positioning of FLQL in the large-cap blend segment and its multi-factor strategy is likely to maintain its attractiveness among institutional and retail investors alike.

Stocks: AAPL NVDA MSFT FLQL SPY VOO