The Franklin LibertyQ U.S. Large Cap Equity ETF (FLQL) is managed by Franklin Templeton, a renowned global investment firm with a rich history of providing innovative investment solutions to clients worldwide. Established with the aim to offer investors exposure to U.S. large-cap equities, FLQL is designed to track the proprietary U.S. Large Cap Underlying Index, meticulously maintained and calculated by FTSE Russell. This index combines the extensive expertise of Franklin Templeton with the methodology of the Russell 1000® Index to achieve a lower level of risk and higher risk-adjusted performance. As of May 31, 2023, the U.S. Large Cap Underlying Index represented approximately 93% of the total market capitalization of the Russell 3000® Index, demonstrating its significance in the investment landscape. With a focus on factors like quality, value, and momentum, FLQL offers investors a comprehensive strategy for seeking returns in the U.S. large-cap equity market.
The Franklin LibertyQ U.S. Equity ETF (FLQL) may not be primarily designed for dividend investors, but it still provides exposure to dividend distributions based on the underlying index. These distributions typically follow a quarterly schedule and are contingent on the dividend policies and performance of the individual companies within the index. FLQL is composed of U.S. equities known for their quality and can offer investors both potential capital appreciation and some dividend income, making it an attractive option for those seeking a balanced approach to investing.
Tracking the U.S. Large Cap Underlying Index is the primary objective of the FLQL (Franklin LibertyQ U.S. Large Cap Equity ETF). Under normal market conditions, the fund invests at least 80% of its assets in the component securities of the U.S. Large Cap Underlying Index, which is systematically maintained and calculated by FTSE Russell. This proprietary index is derived from the Russell 1000® Index and employs a multi-factor selection process focused on quality, value, and momentum factors, aiming to achieve favorable risk-adjusted performance. FLQL utilizes a passive indexing approach and may use replication or representative sampling strategies to closely correspond to the U.S. Large Cap Underlying Index's performance. Additionally, the fund may use equity futures and total return swaps to enhance tracking and manage liquidity, with a focus on industry concentration similar to the benchmark index. As of May 31, 2023, the U.S. Large Cap Underlying Index was concentrated in the technology sector. FLQL offers investors exposure to a diverse basket of large-cap U.S. stocks aligned with Franklin Templeton's desired investment strategy.
The correlation aspect of the Franklin LibertyQ U.S. Large Cap Equity ETF (FLQL) primarily centers on its relationship with the U.S. Large Cap Underlying Index. Given that FLQL predominantly invests in the component securities of this index, it exhibits a strong correlation with the large-cap segment of the U.S. equity market. This correlation is known for offering investors a reliable tool for gaining exposure to large-cap stocks while emphasizing factors such as quality, value, and momentum. FLQL's correlation with the U.S. Large Cap Underlying Index allows investors to assess its performance relative to this benchmark, making it an essential tool for portfolio diversification and risk management. For more in-depth insights into FLQL's correlations and overlaps with other assets, consider utilizing the ETF Insider web app, which provides comprehensive data visualization and analysis for all U.S. ETFs.
The Franklin LibertyQ U.S. Large Cap Equity ETF (FLQL) primarily focuses on the U.S. large-cap equity sector, with an emphasis on capturing the potential for long-term growth and risk-adjusted performance. FLQL seeks to replicate the performance of the U.S. Large Cap Underlying Index, which is designed to provide exposure to quality, value, and momentum factors within the U.S. large-cap equities market. The index selection process aims to achieve lower risk and higher risk-adjusted returns compared to traditional market-cap-weighted indices. As of the last available data in May 2023, the U.S. Large Cap Underlying Index was concentrated in the technology sector, reflecting the ongoing importance of technology companies in the U.S. large-cap equities landscape.
The FLQL ETF's exposure dynamics are pivotal for investors aiming to align with specific markets, regions, or sectors. For a deeper understanding of FLQL's market alignment, the ETF insider tool offers invaluable insights. This web app facilitates a deep dive into the intricate details of every US ETF, boasting a user-friendly interface that clearly displays overlaps, correlations, and other vital data points.
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