FLGR Profile
The Franklin FTSE Germany ETF is designed to provide investors with exposure to the performance of major German companies through its tracking of the FTSE Germany Capped Index. Typically, the fund allocates at least 80% of its assets to the securities that make up this index and depositary receipts representing these securities. This approach ensures that the ETF mirrors the performance of the FTSE Germany Capped Index, which serves as a benchmark for large- and mid-cap stocks in Germany.
The FTSE Germany Capped Index is a variant of the FTSE Germany Index, specifically engineered to measure the performance of large- and mid-capitalization companies listed on German exchanges. The capping mechanism used in the index restricts the weight of individual stocks, ensuring that no single company overly influences the index’s performance. This design aims to provide a more balanced representation of the German equity market while capturing the dynamics of the country's leading industries.
The fund's non-diversified nature indicates a concentrated investment strategy, focusing primarily on a select group of large- and mid-cap German companies. This concentration can lead to a higher exposure to specific sectors predominant in Germany, such as automotive, industrials, chemicals, and financial services. Consequently, investors may experience amplified sensitivity to the performance of these key sectors and any macroeconomic factors affecting the German market.
By investing in the Franklin FTSE Germany ETF, investors gain targeted exposure to Germany’s prominent companies, offering potential benefits from the economic and corporate developments within the country. However, this concentrated investment strategy also entails risks, including increased volatility and sector-specific impacts, which should be considered when evaluating the fund’s suitability within a diversified investment portfolio.
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