What is the FLRU ETF ?
FLRU ETF Overview
The FLRU ETF, known as the Franklin FTSE Russia FTE, is an exchange-traded fund that aims to provide investors with exposure to the Russian market. Under normal market conditions, the fund invests at least 80% of its assets in the component securities of the FTSE Russia Capped Index and in depositary receipts representing such securities. The FTSE Russia Capped Index is designed to measure the performance of Russian large- and mid-capitalization stocks. It is a free float-adjusted market capitalization weighted index maintained and calculated by FTSE Russell. To ensure diversification, the index has a capping methodology applied quarterly to issuer weights, limiting a single issuer's weight to 25% of the index and not allowing all issuers above 5% to cumulatively exceed 50% of the index's weight.
FLRU ETF: Underlying and Exposure: What Does It Track and How?
The underlying index for the [ETF NAME] is the FTSE Russia Capped Index, which includes 37 securities as of May 31, 2022. These securities have capitalizations ranging from $569 million to $110.25 billion. To be eligible for inclusion in the index, FTSE Russell considers various measures such as the company's place of incorporation, listing country, investor protection regulations, tax domicile, location of headquarters, factors of production, and currency of denomination.
The FLRU ETF employs a passive or indexing investment approach to closely correspond to the performance of the FTSE Russia Capped Index. There are two primary strategies used for this purpose:
Replication Strategy: Under this approach, the fund invests in all the component securities of the FTSE Russia Capped Index, replicating their respective weightings in the index as closely as possible.
Representative Sampling Strategy: In certain circumstances, it may not be possible or practicable to replicate the entire index. In such cases, the fund may use a representative sampling strategy. It selects securities that collectively have an investment profile similar to that of the FTSE Russia Capped Index, including risk factors, performance attributes, and other characteristics like market capitalization and industry weightings.
FLRU overlap What is the FLRU ETF ?
FLRU ETF: Benefits to Invest in This ETF
Investing in the FLRU ETF offers several advantages for investors seeking exposure to the Russian market. Some of the key benefits include:
Diversification: By investing in an ETF that tracks a broad index of Russian stocks, investors gain exposure to a diverse range of companies across various sectors.
Cost-Efficiency: The FLRU ETF follows a passive investment approach, which typically incurs lower management fees compared to actively managed funds.
Liquidity: As an exchange-traded fund, the FLRU ETF provides liquidity and can be bought and sold throughout the trading day at prevailing market prices.
Transparency: ETFs regularly disclose their holdings, allowing investors to know exactly what assets they own within the fund.
FLRU ETF: Considerations Before Investing
While the FLRU ETF offers exposure to the Russian market, there are some important factors to consider before investing:
Country-Specific Risks: Investing in a single-country ETF like FLRU ETF exposes investors to the specific risks associated with Russia's economy and market.
Currency Risk: For investors outside of Russia, there is a currency risk as the fund's returns will be influenced not only by the performance of the underlying stocks but also by fluctuations in the Russian ruble's value relative to their home currency.
Political and Regulatory Risks: Russia's political and regulatory landscape may impact the performance of the underlying securities, affecting the ETF's returns.
Industry Concentration: The FTSE Russia Capped Index has a notable concentration in the oil, gas, and consumable fuels industry. This means the performance of the ETF could be heavily influenced by the performance of companies in this sector.
Conclusion
In conclusion, the FLRU ETF provides investors with exposure to the Russian market through its tracking of the FTSE Russia Capped Index. It offers diversification, cost-efficiency, and liquidity benefits typical of ETF investments. However, investors should be aware of country-specific risks, currency risk, and industry concentration before making investment decisions. As with any investment, it is crucial to conduct thorough research and consider individual financial goals and risk tolerance.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. The content provided is not offering any investment advisory services.
FLRU ETF issuer
FLRU ETF official page
FLRU quote and analysis
Discover the top holdings, correlations, and overlaps of ETFs using our visualization tool.
Our app allows you to build and track your portfolio.
To learn more about the FLRU Franklin FTSE Russia ETF, access our dedicated page now.
FAQ
What is the FLRU ETF?
The FLRU ETF, also known as the Emles @Home ETF, is an exchange-traded fund that aims to provide exposure to companies in the United States that substantially focus on and benefit from the trend of increased and diverse home activities.
What is the underlying index that the FLRU ETF aims to track?
The FLRU ETF aims to track the performance of the Emles @Home Index, which includes U.S. dollar-denominated equities and American Depository Receipts (ADRs) of companies primarily offering products and/or services related to at-home lifestyle and living under various sub-themes.
What types of companies are included in the FLRU ETF?
The FLRU ETF includes companies from sectors such as industrials, consumer discretionary, consumer staples, health care, information technology, and communication services. These companies primarily offer products and services related to at-home work productivity, e-commerce, home health and fitness, home security, home entertainment and telecommunications, home supplies and goods, and digital lifestyle and social media platforms.
How does the FLRU ETF work?
The FLRU ETF aims to replicate the Emles @Home Index by investing at least 80% of its assets in the stocks that make up the Index. The fund holds each stock in approximately the same proportion as its weighting in the Index.
What are the advantages of investing in the FLRU ETF?
Investing in the FLRU ETF provides exposure to companies benefiting from the trend of increased home activities, which can offer potential growth opportunities. Additionally, the ETF's passive or indexing approach can result in lower costs and reduce some risks associated with active management.