FLKR Profile
The Franklin FTSE South Korea ETF aims to provide investors with targeted exposure to the South Korean equity market by tracking the FTSE South Korea Capped Index. Under typical market conditions, the fund allocates at least 80% of its assets to the securities included in this index and to depositary receipts that represent these securities. This strategy is designed to ensure that the fund’s performance closely mirrors that of the FTSE South Korea Capped Index, offering investors a direct investment in prominent South Korean companies.
The FTSE South Korea Capped Index is derived from the broader FTSE South Korea Index and focuses on measuring the performance of large- and mid-cap stocks listed in South Korea. The index employs a capping approach to limit the influence of any single stock, thereby promoting a more balanced representation of the market. This capping mechanism helps mitigate the risk associated with high concentrations of individual stocks, ensuring a diversified exposure to the South Korean equity market.
As a non-diversified fund, the Franklin FTSE South Korea ETF maintains a concentrated investment in South Korean large- and mid-cap companies. These companies typically span key sectors such as technology, manufacturing, and consumer goods, reflecting South Korea's position as a major global economic player. The fund provides investors with concentrated exposure to the South Korean market’s growth prospects and economic dynamics, which are driven by a robust and innovative industrial base.
Investing in the Franklin FTSE South Korea ETF offers a strategic opportunity to capitalize on South Korea’s economic growth and market potential. However, the fund’s focus on a specific region and market segment means that it may experience heightened exposure to regional economic fluctuations and sector-specific risks. Investors should assess how this fund aligns with their overall investment strategy and consider both the opportunities and risks associated with investing in the South Korean market.
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