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Trending ETFs

Name

As of 05/17/2024

Price

Aum/Mkt Cap

YIELD

Annualized forward dividend yield. Multiplies the most recent dividend payout amount by its frequency and divides by the previous close price.

Exp Ratio

Expense ratio is the fund’s total annual operating expenses, including management fees, distribution fees, and other expenses, expressed as a percentage of average net assets.

Watchlist

$23.51

$178 M

1.09%

$0.26

0.65%

Vitals

YTD Return

8.6%

1 yr return

10.8%

3 Yr Avg Return

7.3%

5 Yr Avg Return

N/A

Net Assets

$178 M

Holdings in Top 10

26.0%

52 WEEK LOW AND HIGH

$23.5
$20.97
$24.10

Expenses

OPERATING FEES

Expense Ratio 0.65%

SALES FEES

Front Load N/A

Deferred Load N/A

TRADING FEES

Turnover 189.89%

Redemption Fee N/A


Min Investment

Standard (Taxable)

N/A

IRA

N/A


Fund Classification

Fund Type

Exchange Traded Fund


Name

As of 05/17/2024

Price

Aum/Mkt Cap

YIELD

Annualized forward dividend yield. Multiplies the most recent dividend payout amount by its frequency and divides by the previous close price.

Exp Ratio

Expense ratio is the fund’s total annual operating expenses, including management fees, distribution fees, and other expenses, expressed as a percentage of average net assets.

Watchlist

$23.51

$178 M

1.09%

$0.26

0.65%

FLSP - Profile

Distributions

  • YTD Total Return 8.6%
  • 3 Yr Annualized Total Return 7.3%
  • 5 Yr Annualized Total Return N/A
  • Capital Gain Distribution Frequency N/A
  • Net Income Ratio 0.69%
DIVIDENDS
  • Dividend Yield 1.1%
  • Dividend Distribution Frequency Annual

Fund Details

  • Legal Name
    Franklin Systematic Style Premia ETF
  • Fund Family Name
    Franklin Templeton Group of Funds
  • Inception Date
    Dec 20, 2019
  • Shares Outstanding
    2800000
  • Share Class
    N/A
  • Currency
    USD
  • Domiciled Country
    US
  • Manager
    Vaneet Chadha

Fund Description

The Fund seeks to achieve its investment goal by allocating its assets across two underlying “alternative” investment strategies, which represent top-down and bottom-up approaches to capturing factor-based risk premia. A “risk premium” is the economic concept that an investor should receive a premium (that is, a higher expected return) for bearing risk. In other words, risk premium refers to the return that is expected for assuming a particular market risk. The strategies consist of a top-down risk premia strategy and a bottom-up long/short equity strategy, each of which is described below.

Top-down risk premia strategy. The top-down risk premia strategy focuses on value, momentum and carry factors in taking both long and short positions across equity, fixed income, commodity and currency asset classes. The exposure to the commodity and currency asset classes is obtained indirectly through the use of derivatives, while the exposure to the equity and fixed income asset classes is primarily obtained indirectly through the use of derivatives. Under normal market conditions, the top-down risk premia strategy invests primarily in equity, interest rate/bond and commodity index futures; equity and commodity-linked total return swaps; and currency forwards.

·Value – Value strategies favor investments that appear cheap over those that appear expensive based on fundamental measures related to price, seeking to capture the tendency for relatively cheap assets to outperform relatively expensive assets. The investment manager seeks to buy assets that are “cheap” and sell or short those that are “expensive.” For purposes of the top-down risk premia strategy, examples of value measures include using price to earnings, price to forward earnings, price to book value and dividend yield.

·Momentum – Momentum strategies favor investments that have performed relatively well over those that have underperformed over the medium-term (i.e., one year or less), seeking to capture the tendency that an asset’s recent relative performance will continue in the near future. The investment manager seeks to buy assets that recently outperformed their peers and sell or short those that recently underperformed. For purposes of the top-down risk premia strategy, examples of momentum measures include simple price momentum (measured over the prior twelve months with the most recent month removed) for selecting stocks and price- and yield-based momentum for selecting bonds.

·Carry – An asset’s “carry” is its expected return assuming market conditions, including its price, stay the same. Carry strategies favor investments with higher yields over those with lower yields, seeking to capture the tendency for higher-yielding assets to provide higher returns than lower-yielding assets. The

investment manager seeks to take long positions in high-yielding assets and sell or take short positions in low-yielding assets. An example of carry measures includes selecting currencies and bonds based on interest rates.

Bottom-up long/short equity strategy. The bottom-up long/short equity strategy focuses on quality, value and momentum factors in determining whether to hold long or short positions in individual equity securities. Under normal market conditions, the bottom-up long/short equity strategy invests primarily in equity securities and derivative instruments, including equity index futures and equity total return swaps, with equity index futures and equity total return swaps being used to obtain short exposures. Long/short equity strategies generally seek to produce returns from investments in the equity markets by taking long and short positions in stocks and stock indices (through the use of derivatives or through a short position in an exchange-traded fund (ETF)). Long positions benefit from an increase in the price of the underlying instrument, while short positions benefit from a decrease in that price.

·Quality – Quality strategies favor investments that exhibit relatively higher quality characteristics. Examples of quality measures include return on equity, earnings variability, cash return on assets and leverage.

·Value – For the bottom-up long/short equity strategy, the value factor is used to identify cheapness by using earnings, book value, sales and cash flow ratios relative to market capitalization, and enterprise value compared against a peer group. For purposes of the bottom-up long/short equity strategy, examples of value measures include earnings yield; earnings before interest, tax, depreciation and amortization (EBITDA) to enterprise value; and dividend yield.

·Momentum – For the bottom-up long/short equity strategy, the momentum factor is used to identify investment trends by looking at historical price movements that are believed to persist and forward-looking information from analyst estimates. For purposes of the bottom-up long/short equity strategy, examples of momentum measures include 12-month return with the most recent month removed (simple price momentum) and analyst earnings-per-share forecasts for growth acceleration.

Under normal market conditions, the investment manager seeks to allocate assets between the two factor-based risk premia alternative investment strategies described above according to each strategy’s estimated risk, as measured by historical returns based risk models. The allocation to each strategy is driven by the estimated risk contribution of each individual strategy to the Fund's overall investment strategy, which the investment manager seeks to keep within certain pre-determined bounds.

Through the two strategies, the investment manager invests the Fund’s assets based on a systematic investment process for securities selection and asset allocation by utilizing quantitative models. Quantitative models are proprietary

systems that rely on mathematical computations to identify investment opportunities. By employing these two approaches, the investment manager seeks to provide positive absolute return over time while maintaining a relatively low correlation with traditional markets. The exposure to individual factors may vary based on the market opportunity of the individual factors.

Through the two strategies, the Fund may invest in or obtain exposure to: (i) equity securities (which may include common stocks and preferred stocks), (ii) debt securities (which may include bonds, notes, debentures, banker’s acceptances and commercial paper), (iii) commodity-linked derivative instruments and (iv) currency-related derivative instruments. The Fund may invest in or obtain exposure to securities of U.S. and foreign companies of any capitalization size, including those located in emerging markets. The debt securities may include securities of the U.S. government, its agencies and instrumentalities and sovereign, quasi-sovereign and corporate bonds. In addition, the debt securities in which the Fund may invest or obtain exposure to may be of any maturity or duration. The Fund also may, from time to time, hold significant amounts of cash or cash equivalents, including money market instruments and affiliated or unaffiliated money market funds, due to its investments in derivative instruments. The Fund may engage in active and frequent trading as part of its investment strategies.

The Fund may use derivatives for both hedging and non-hedging (investment) purposes. The Fund’s derivative investments may include, among other instruments: (i) futures contracts, including futures on equity, interest rate/bond and commodity indices; (ii) swaps, including equity and commodity-linked total return swaps; and (iii) currency forward contracts. These derivatives may be used to enhance Fund returns, increase liquidity, gain long or short exposure to certain instruments, markets or factors in a more efficient or less expensive way and/or hedge risks associated with its other portfolio investments. The results of such transactions are expected to represent a material component of the Fund’s investment returns. As a result of the Fund’s use of derivatives, the Fund may have economic leverage, which means the sum of the Fund’s investment exposures through its use of derivatives may significantly exceed the amount of assets invested in the Fund, although these exposures may vary over time.

The Fund will hold its commodity-linked derivative instruments indirectly through a wholly-owned subsidiary established in the Cayman Islands (Subsidiary).

 
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FLSP - Performance

Return Ranking - Trailing

Period FLSP Return Category Return Low Category Return High Rank in Category (%)
YTD 8.6% -73.0% 19.4% 66.31%
1 Yr 10.8% -9.1% 86.9% 99.64%
3 Yr 7.3%* -9.5% 16.2% N/A
5 Yr N/A* -4.9% 14.4% N/A
10 Yr N/A* -0.9% 7.5% N/A

* Annualized

Return Ranking - Calendar

Period FLSP Return Category Return Low Category Return High Rank in Category (%)
2023 1.9% -22.7% 305.1% 97.78%
2022 -1.8% -9.8% 27.3% N/A
2021 10.0% -20.8% 10.9% N/A
2020 -21.6% -12.4% 29.4% N/A
2019 N/A -10.5% 15.8% N/A

Total Return Ranking - Trailing

Period FLSP Return Category Return Low Category Return High Rank in Category (%)
YTD 8.6% -73.0% 19.4% 70.97%
1 Yr 10.8% -13.4% 86.9% 98.18%
3 Yr 7.3%* -9.5% 16.2% N/A
5 Yr N/A* -5.3% 14.4% N/A
10 Yr N/A* -0.9% 7.5% N/A

* Annualized

Total Return Ranking - Calendar

Period FLSP Return Category Return Low Category Return High Rank in Category (%)
2023 3.1% -22.7% 305.1% 97.78%
2022 0.3% -9.8% 27.3% N/A
2021 11.4% -20.8% 10.9% N/A
2020 -15.2% -8.4% 29.4% N/A
2019 N/A -10.2% 18.0% N/A

FLSP - Holdings

Concentration Analysis

FLSP Category Low Category High FLSP % Rank
Net Assets 178 M 1.5 M 5.01 B 71.22%
Number of Holdings 300 4 4478 42.76%
Net Assets in Top 10 34.5 M -398 M 2.55 B 84.81%
Weighting of Top 10 25.99% 13.1% 100.0% N/A

Top 10 Holdings

  1. State Street Institutional US Government Money Market Fund 13.14%
  2. Meta Platforms Inc 1.92%
  3. Berkshire Hathaway Inc 1.51%
  4. Visa Inc 1.48%
  5. Mastercard Inc 1.44%
  6. Microsoft Corp 1.35%
  7. Accenture PLC 1.31%
  8. Intuit Inc 1.31%
  9. Adobe Inc 1.28%
  10. AbbVie Inc 1.25%

Asset Allocation

Weighting Return Low Return High FLSP % Rank
Stocks
78.49% -3.75% 97.95% 1.77%
Cash
22.32% -6278.21% 410.43% 79.51%
Preferred Stocks
0.00% -0.12% 46.97% 66.78%
Convertible Bonds
0.00% 0.00% 87.92% 78.80%
Bonds
0.00% -326.45% 6347.80% 80.92%
Other
-0.81% -21.53% 148.54% 38.87%

Stock Sector Breakdown

Weighting Return Low Return High FLSP % Rank
Technology
18.99% 0.00% 39.58% 73.23%
Industrials
12.35% 0.00% 21.45% 20.08%
Healthcare
12.03% 0.00% 45.63% 19.69%
Consumer Cyclical
10.45% 0.00% 29.09% 63.39%
Financial Services
10.01% 0.00% 59.28% 43.31%
Communication Services
8.71% 0.00% 21.78% 53.15%
Consumer Defense
6.99% 0.00% 13.62% 17.72%
Basic Materials
6.99% 0.00% 27.46% 23.62%
Energy
6.11% 0.00% 100.00% 36.22%
Real Estate
4.22% 0.00% 51.26% 62.60%
Utilities
3.14% 0.00% 9.23% 43.70%

Stock Geographic Breakdown

Weighting Return Low Return High FLSP % Rank
US
54.32% -8.85% 91.88% 5.65%
Non US
24.17% -19.62% 42.11% 7.42%

FLSP - Expenses

Operational Fees

FLSP Fees (% of AUM) Category Return Low Category Return High Rank in Category (%)
Expense Ratio 0.65% 0.29% 31.15% 82.37%
Management Fee 0.65% 0.00% 2.50% 22.61%
12b-1 Fee N/A 0.00% 1.00% N/A
Administrative Fee N/A 0.01% 0.30% N/A

Sales Fees

FLSP Fees (% of AUM) Category Return Low Category Return High Rank in Category (%)
Front Load N/A 2.50% 5.75% N/A
Deferred Load N/A 1.00% 5.00% N/A

Trading Fees

FLSP Fees (% of AUM) Category Return Low Category Return High Rank in Category (%)
Max Redemption Fee N/A 1.00% 2.00% N/A

Related Fees

Turnover provides investors a proxy for the trading fees incurred by mutual fund managers who frequently adjust position allocations. Higher turnover means higher trading fees.

FLSP Fees (% of AUM) Category Return Low Category Return High Rank in Category (%)
Turnover 189.89% 0.00% 491.00% 33.06%

FLSP - Distributions

Dividend Yield Analysis

FLSP Category Low Category High FLSP % Rank
Dividend Yield 1.09% 0.00% 4.56% 3.18%

Dividend Distribution Analysis

FLSP Category Low Category High Category Mod
Dividend Distribution Frequency Annual Annually Quarterly Annually

Net Income Ratio Analysis

FLSP Category Low Category High FLSP % Rank
Net Income Ratio 0.69% -2.51% 6.83% 15.11%

Capital Gain Distribution Analysis

FLSP Category Low Category High Capital Mode
Capital Gain Distribution Frequency Annually Annually Annually

Distributions History

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FLSP - Fund Manager Analysis

Managers

Vaneet Chadha


Start Date

Tenure

Tenure Rank

Dec 18, 2019

2.45

2.5%

Vaneet Chadha is a research analyst for Franklin Templeton Solutions. He is a member of the FTS Global Investment Committee and is the portfolio manager for the global tactical allocation investment strategies. Prior to joining Franklin Templeton Investments in 2012, Mr. Chadha worked at Citadel LLC for over three years where most recently he worked as a quantitative developer supporting long short relative value credit strategies. Previously at Citadel, he also completed a financial technology associate rotation program working for various businesses such as options market making and global equities. Mr. Chadha holds a bachelor of computer engineering from University of Delhi and a master's degree in quantitative and computational finance from Georgia Institute of Technology. He is a Chartered Financial Analyst (CFA) Charterholder.

Chandrakanth Seethamraju


Start Date

Tenure

Tenure Rank

Dec 18, 2019

2.45

2.5%

Chandra Seethamraju is the director of quantitative strategies at Franklin Systematic, the quantitative hub of Franklin Templeton Multi-Asset Solutions. His research focuses on empirical research to support the different investment strategies that the group offers. He is also responsible for developing the models and the methodology behind Franklin Templeton's Smart Beta ETF's. Prior to joining Franklin Templeton Investments in 2013, Dr. Seethamraju was a vice president and senior research analyst at Mellon Capital Management in San Francisco.

Sundaram Chettiappan


Start Date

Tenure

Tenure Rank

Dec 18, 2019

2.45

2.5%

Sundaram Chettiappan is a vice president and senior research analyst for Franklin Systematic, the quantitative hub of Franklin Templeton Multi-Asset Solutions. He is focused on factor based strategies in Quantitative Equities. Prior to joining Franklin Templeton Investments in 2018 Mr.Chettiappan worked at Balyasny Asset Management where he was a Senior Quantitative Researcher building deep fundamental sector based long short models within the Systematic Strategies group.

Tenure Analysis

Category Low Category High Category Average Category Mode
0.02 17.37 4.48 1.67