FLQM Profile
The Franklin U.S. Mid Cap Multifactor Index ETF seeks to replicate the performance of its underlying index by investing at least 80% of its total assets in the component securities of this index. The underlying index, known as the Franklin U.S. Mid Cap Multifactor Index, is an adaptation of the Russell Midcap Index, tailored through a specialized methodology developed in collaboration with Franklin Templeton. This customized approach is designed to reflect Franklin Templeton's investment strategy, which focuses on capturing the potential growth and performance characteristics of mid-cap U.S. stocks.
The Russell Midcap Index provides a comprehensive benchmark for the performance of mid-cap U.S. companies, encompassing a broad range of sectors and industries. By investing in this index, the Franklin U.S. Mid Cap Multifactor Index ETF offers exposure to a diverse set of mid-sized companies, which are typically characterized by their potential for higher growth compared to larger, established firms. The index includes companies that are mid-sized in terms of market capitalization but are positioned for significant growth and innovation within their respective industries.
Franklin Templeton's multifactor investment methodology applied to the index incorporates several key financial factors, such as value, momentum, quality, and low volatility. This approach aims to enhance the ETFs performance by selecting stocks that exhibit these favorable characteristics, thereby improving the funds risk-return profile. The strategy is designed to capture potential alpha by focusing on mid-cap companies that meet specific criteria for financial health and growth potential, offering investors the advantage of a well-researched and systematic stock selection process.
The Franklin U.S. Mid Cap Multifactor Index ETF provides investors with an opportunity to gain diversified exposure to mid-cap U.S. equities through a fund that systematically applies a multifactor investment approach. The ETF is managed with an emphasis on maintaining alignment with the multifactor characteristics of the index, and it is continuously rebalanced to reflect the evolving investment landscape. This strategic focus aims to deliver robust long-term performance and resilience against market fluctuations while capitalizing on the growth potential inherent in the mid-cap segment.
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