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 large, well-established Australian banks and resource companies that show strong financial performance and attractive dividends, such as BHP, ANZ, and Rio Tinto. High-quality names like CSL also support the fund’s quality, though some holdings like Macquarie Group and Goodman Group face issues such as high leverage, weaker revenue growth, and bearish price trends. The main risk is the fund’s heavy concentration in a few big financial and mining stocks, which can make it more sensitive to downturns in those sectors.

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)

AUM76.99M

RegionAsia-Pacific

Expense Ratio0.09%

Beta0.86

IssuerFranklin

Inception DateNov 02, 2017

Dividend Yield2.97%

Asset ClassEquity

Index TrackedFTSE Australia RIC Capped Index

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume24,058

30 Day Avg. Volume19,830

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

36.46

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 the big banks, with Commonwealth Bank, NAB, Westpac, ANZ, and Macquarie steering the ship. Those financial heavyweights have mostly been rising, giving the fund a solid tailwind. On the resources side, BHP and Rio Tinto have also been climbing, adding extra fuel from the materials sector. The main drag comes from CSL, which has been losing steam and tempering some of those gains. Overall, it’s a concentrated bet on Australian financials and miners, with performance tied closely to the local economy and commodity cycle.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
CBA	Commonwealth Bank of Australia	12.63%	$9.87M	AU$287.21B	16.93%	64 Neutral
BHP	BHP Group Ltd	11.05%	$8.63M	AU$260.16B	59.08%	68 Neutral
NAB	National Australia Bank Limited	6.30%	$4.92M	AU$143.28B	55.67%	64 Neutral
WBC	Westpac Banking	6.14%	$4.80M	AU$139.51B	51.70%	69 Neutral
ANZ	ANZ Group Holdings	4.88%	$3.81M	AU$112.27B	46.28%	70 Outperform
WES	Wesfarmers Limited	3.74%	$2.93M	AU$85.67B	16.94%	68 Neutral
CSL	CSL	3.08%	$2.41M	AU$70.13B	-37.45%	75 Outperform
MQG	Macquarie Group Limited	2.99%	$2.34M	AU$72.57B	-4.60%	56 Neutral
WDS	Woodside Energy Group	2.51%	$1.96M	AU$57.31B	30.14%	71 Outperform
RIO	Rio Tinto Limited	2.49%	$1.95M	AU$218.49B	41.63%	78 Outperform

FLAU Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price―

Price Trends

50DMA

33.52

Positive

100DMA

32.30

Positive

200DMA

31.59

Positive

Market Momentum

MACD

0.22

Positive

RSI

49.55

Neutral

STOCH

32.57

Neutral

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For FLAU, the sentiment is Neutral. The current price of undefined is equal to the 20-day moving average (MA) of 34.89, equal to the 50-day MA of 33.52, and equal to the 200-day MA of 31.59, indicating a neutral trend. The MACD of 0.22 indicates Positive momentum. The RSI at 49.55 is Neutral, neither overbought nor oversold. The STOCH value of 32.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FLAU.

FLAU Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
FLAU	―	―	$76.99M	0.09%	65 Neutral
EWA	―	―	$1.39B	0.50%	66 Neutral
GSJY	―	―	$80.26M	0.25%	70 Outperform
JPY	―	―	$73.01M	0.60%	70 Outperform
NDIA	―	―	$59.08M	0.76%	59 Neutral
JAPN	―	―	$24.25M	0.85%	62 Neutral

Performance Comparison

FLAU

Franklin FTSE Australia ETF

34.40

7.83

29.47%

EWA

iShares MSCI Australia ETF

―

GSJY

Goldman Sachs ActiveBeta Japan Equity ETF

―

JPY

Lazard Japanese Equity ETF

―

NDIA

Global X India Active ETF

―

JAPN

Horizon Kinetics Japan Owner Operator 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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