FLJH Profile
The Franklin FTSE Japan Hedged ETF primarily allocates at least 80% of its assets to securities included in the FTSE Japan Capped Hedged Index, as well as depositary receipts representing these securities. The fund may also gain exposure through investments in the Franklin FTSE Japan ETF, an underlying fund. The FTSE Japan Capped Hedged Index is a derivative of the FTSE Japan Hedged to USD Index and is designed to reflect the performance of large- and mid-capitalization stocks from Japan.
The ETF's hedging strategy aims to protect investors from fluctuations in the value of the Japanese yen relative to the U.S. dollar. By utilizing currency-hedging techniques, the fund seeks to minimize the impact of currency exchange rate movements on its returns, allowing investors to focus on the performance of Japanese equities without the added volatility of currency risk. This approach is particularly beneficial for U.S.-based investors seeking to invest in Japanese stocks while mitigating potential currency-related losses.
The FTSE Japan Capped Hedged Index includes a diversified range of Japanese companies, covering various sectors such as technology, industrials, consumer goods, and financial services. The capping methodology employed in the index ensures that no single stock has an excessive weight, thus maintaining a balanced representation of the Japanese market. This helps reduce concentration risk and provides a more stable investment profile.
Managed by Franklin Templeton, the ETF benefits from the firm’s extensive expertise in global equity and currency management. Franklin Templeton’s comprehensive research and strategic approach support the fund’s goal of delivering competitive returns while managing currency exposure. The firm’s focus on innovative investment solutions underscores its commitment to providing investors with effective tools for accessing international markets while controlling risk.
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