FLAU - ETF AI Analysis

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Franklin FTSE Australia ETF (FLAU)

Rating:65Neutral

Price Target:―

FLAU, the Franklin FTSE Australia ETF, has a solid overall rating driven mainly by strong, diversified leaders like Rio Tinto and CSL, which combine robust financial performance with healthy balance sheets and attractive dividends. Major bank holdings such as ANZ, BHP (a key resources name), and others also support the rating through stable revenues and dividend yields, though several show bearish or cautious technical trends and issues like high leverage or profit pressures. Weaker positions such as Macquarie Group and Goodman Group, which face mixed financials, bearish momentum, and valuation concerns, along with the fund’s heavy tilt toward Australian financials and resources, are the main factors that hold back an even higher rating and represent its key risk.

Positive Factors

Low Expense Ratio

The fund charges a relatively low fee, which helps investors keep more of their returns over time.

Broad Sector Spread Within Australia

Holdings are spread across many sectors, including financials, materials, consumer, health care, and real estate, which helps reduce the impact of weakness in any single industry.

Several Strong Top Holdings

Some of the largest positions, such as major resource and health care companies, have shown strong recent performance that supports the fund’s overall results.

Negative Factors

Heavy Concentration in Financials and Materials

A large portion of the portfolio is tied up in banks and resource companies, which increases the fund’s sensitivity to downturns in those two sectors.

Mixed Performance Among Biggest Positions

Several major bank holdings have shown weak recent performance, which can drag on the ETF’s returns even when other holdings are doing better.

High Dependence on Australia

Most of the fund’s assets are invested in Australian companies, so investors are heavily exposed to the Australian economy and currency rather than being broadly global.

FLAU vs. SPDR S&P 500 ETF (SPY)

AUM80.25M

RegionAsia-Pacific

Expense Ratio0.09%

Beta0.85

IssuerFranklin

Inception DateNov 02, 2017

Dividend Yield2.93%

Asset ClassEquity

Index TrackedFTSE Australia RIC Capped Index

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume8,586

30 Day Avg. Volume20,304

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

36.40

Price Target Upside― Downside

Rating ConsensusHold

Number of Analyst Covering104

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

FLAU Summary

The Franklin FTSE Australia ETF (FLAU) is a fund that aims to track the FTSE Australia RIC Capped Index, giving you broad exposure to the Australian stock market in a single investment. It holds many types of companies, with a big focus on banks and resource firms. Well-known holdings include Commonwealth Bank of Australia and mining giant BHP Group. Someone might invest in FLAU to diversify internationally and benefit from Australia’s resource-rich economy and financial sector. A key risk is that the fund is heavily tied to the Australian market, so its value can rise or fall with Australia’s economy and stock market.

How much will it cost me?The Franklin FTSE Australia ETF (FLAU) has an expense ratio of 0.09%, meaning you’ll pay $0.90 per year for every $1,000 invested. This is lower than average because it’s a passively managed fund that tracks an index, which typically costs less than actively managed funds.

What would affect this ETF?The Franklin FTSE Australia ETF (FLAU) could benefit from Australia's strong resource sector, particularly if global demand for commodities like iron ore and coal remains high, supporting top holdings like BHP Group and Rio Tinto. However, the ETF's heavy exposure to financials means it could face challenges if interest rates rise sharply, potentially impacting banks like Commonwealth Bank of Australia and Westpac Banking. Additionally, broader economic conditions in the Asia-Pacific region and changes in trade policies could influence the ETF's performance positively or negatively.

FLAU Top 10 Holdings

This Australia-focused ETF leans heavily on big banks and miners, so its story is a tug-of-war between finance and resources. Commonwealth Bank, Westpac, and National Australia Bank have been losing steam, acting as a brake on returns, even as ANZ holds relatively steady. On the brighter side, BHP and Rio Tinto are rising, giving the fund a lift as commodities improve, with CSL and Goodman adding a more mixed but generally supportive backdrop. Overall, it’s a concentrated bet on Australia’s financial and materials engines.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
CBA	Commonwealth Bank of Australia	12.08%	$9.89M	AU$283.47B	7.21%	64 Neutral
BHP	BHP Group Ltd	10.67%	$8.73M	AU$259.34B	44.85%	68 Neutral
NAB	National Australia Bank Limited	5.93%	$4.85M	AU$139.15B	33.49%	64 Neutral
WBC	Westpac Banking	5.87%	$4.80M	AU$137.56B	24.44%	69 Neutral
ANZ	ANZ Group Holdings	4.72%	$3.86M	AU$111.96B	36.15%	70 Outperform
WES	Wesfarmers Limited	4.24%	$3.47M	AU$100.06B	25.73%	68 Neutral
CSL	CSL	3.37%	$2.76M	AU$79.29B	-27.08%	75 Outperform
MQG	Macquarie Group Limited	3.21%	$2.63M	AU$80.52B	5.00%	56 Neutral
GMG	Goodman Group	2.61%	$2.13M	AU$63.02B	-6.68%	54 Neutral
RIO	Rio Tinto Limited	2.59%	$2.12M	AU$236.14B	53.86%	78 Outperform

FLAU Technical Analysis

Technical Analysis Sentiment

Positive

Last Price―

Price Trends

50DMA

32.14

Positive

100DMA

31.70

Positive

200DMA

31.03

Positive

Market Momentum

MACD

0.67

Negative

RSI

69.00

Neutral

STOCH

92.92

Negative

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For FLAU, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 33.31, equal to the 50-day MA of 32.14, and equal to the 200-day MA of 31.03, indicating a bullish trend. The MACD of 0.67 indicates Negative momentum. The RSI at 69.00 is Neutral, neither overbought nor oversold. The STOCH value of 92.92 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FLAU.

FLAU Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
FLAU	―	―	$80.25M	0.09%	―
EWA	―	―	$1.41B	0.50%	―
GSJY	―	―	$83.33M	0.25%	―
FCA	―	―	$79.46M	0.80%	―
JPY	―	―	$78.86M	0.60%	―
NDIA	―	―	$58.68M	0.76%	―

Performance Comparison

FLAU

Franklin FTSE Australia ETF

34.95

5.89

20.27%

EWA

iShares MSCI Australia ETF

―

GSJY

Goldman Sachs ActiveBeta Japan Equity ETF

―

FCA

First Trust China AlphaDEX Fund

―

JPY

Lazard Japanese Equity ETF

―

NDIA

Global X India Active ETF

―

Glossary

BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―

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