FLQL Profile
The Franklin U.S. Large Cap Multifactor Index ETF aims to deliver investment returns that closely mirror those of its underlying index by investing at least 80% of its total assets in the securities that comprise this index. The underlying index, known as the Franklin U.S. Large Cap Multifactor Index, is a customized version of the Russell 1000 Index, designed in collaboration with Franklin Templeton to align with its specific investment strategies. This approach is intended to capture broad exposure to the large-cap segment of the U.S. equity market while incorporating multifactor investment principles.
The Russell 1000 Index represents a comprehensive benchmark for the performance of the largest U.S. companies by market capitalization. By leveraging this index, the Franklin U.S. Large Cap Multifactor Index ETF provides investors with access to a diverse array of large-cap stocks across various sectors and industries, including technology, finance, consumer discretionary, and healthcare. The customized multifactor methodology applied by Franklin Templeton aims to enhance the indexs return potential by focusing on specific investment factors that have historically driven performance, such as value, momentum, quality, and low volatility.
The fund's investment strategy involves a sophisticated factor-based approach to stock selection, which seeks to optimize returns by incorporating multiple financial metrics and valuation criteria. This methodology is designed to improve risk-adjusted performance relative to traditional market-cap weighted indices. As a result, the ETF aims to provide investors with a portfolio that benefits from the large-cap markets growth potential while mitigating some of the risks associated with broad market exposure.
In addition to tracking the performance of its underlying index, the Franklin U.S. Large Cap Multifactor Index ETF offers investors the advantage of diversification across a wide range of large-cap U.S. companies. The funds investment process involves continuous monitoring and rebalancing to ensure alignment with the index's multifactor characteristics. This strategy is geared toward delivering enhanced long-term performance potential and greater resilience against market volatility.
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