FLJP Profile
The Franklin FTSE Japan ETF is designed to provide investors with broad exposure to Japanese equities by tracking the FTSE Japan Capped Index. Under normal market conditions, the fund commits at least 80% of its total assets to investments in the component securities of this index, as well as depositary receipts representing these securities. The FTSE Japan Capped Index, derived from the broader FTSE Japan Index, includes a range of large- and mid-capitalization stocks listed on Japanese exchanges.
The FTSE Japan Index, the basis for the underlying index, is a benchmark that reflects the performance of the Japanese stock market by including companies with significant market capitalization and liquidity. By capping the index, the FTSE Japan Capped Index limits the weight of individual securities, thereby reducing the impact of the largest companies and ensuring a more balanced representation of the market. This approach aims to provide a diversified view of the Japanese equity market, mitigating the risks associated with heavy concentration in a few large firms.
The ETF's investment strategy is focused on achieving a performance that closely mirrors the FTSE Japan Capped Index. This includes a diverse range of sectors and industries within the Japanese market, from technology and finance to consumer goods and industrials. By investing in the index’s component securities and depositary receipts, the fund offers exposure to a wide array of Japanese companies, capturing both growth and value opportunities within the country’s equity market.
In addition to its core investments, the Franklin FTSE Japan ETF may utilize depositary receipts to gain exposure to Japanese stocks that are traded on international exchanges. This can provide additional liquidity and flexibility in managing the fund's holdings. The ETF is aimed at investors seeking to capitalize on the growth potential of Japan’s economy while benefiting from a diversified portfolio of leading Japanese companies.
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