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FLCA - ETF AI Analysis

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FLCA

Franklin FTSE Canada ETF (FLCA)

Rating:74Outperform
Price Target:
FLCA’s rating suggests it is a solid, but not flawless, way to invest in Canadian stocks, with strength coming from high-quality leaders like Canadian Natural (CNQ) and Agnico Eagle (AEM), which show strong financial performance, efficient operations, and supportive earnings call commentary. Major bank holdings such as Royal Bank of Canada (RY), TD, and Bank of Nova Scotia (BNS) also support the fund through resilient earnings, dividends, and generally positive technical trends, though issues like high leverage, cash flow pressures, and occasional overbought signals introduce some caution. The main risk factor is the fund’s heavy concentration in Canadian financials and a few large names, meaning setbacks in these sectors or companies could weigh heavily on overall performance.
Positive Factors
Low Expense Ratio
The fund charges a relatively low fee, which helps investors keep more of their returns over time.
Strong Recent Performance
The ETF has shown solid gains over the past month, three months, and year to date, indicating recent positive momentum.
Financial and Resource Strength
Many of the largest holdings in Canadian banks, energy, and materials companies have been performing well, supporting the fund’s overall results.
Negative Factors
Heavy Sector Concentration
A large share of the portfolio is in financials, energy, and materials, which increases the impact if these sectors face a downturn.
Underperforming Key Holding
One of the top positions, Shopify, has been weak this year, which can drag on the fund’s performance given its sizable weight.
Limited Sector Balance
Exposure to areas like technology, consumer, utilities, and real estate is relatively small, offering less diversification across different parts of the economy.

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

FLCA Summary

The Franklin FTSE Canada ETF (FLCA) is a fund that aims to track the FTSE Canada RIC Capped Index, giving you broad exposure to the Canadian stock market in a single investment. It holds a mix of large, mid, and small Canadian companies across many sectors, with a big focus on banks, energy, and materials. Well-known holdings include Royal Bank of Canada and Shopify. Someone might invest in FLCA to diversify into Canada’s resource-rich and financial-heavy economy. A key risk is that the fund can rise or fall with the Canadian market, especially financial and energy stocks.
How much will it cost me?The Franklin FTSE Canada ETF (FLCA) 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 to operate than actively managed funds.
What would affect this ETF?The Franklin FTSE Canada ETF (FLCA) could benefit from strong performance in Canada's financial sector, which makes up a significant portion of its holdings, as well as potential growth in energy and materials driven by global demand for resources. However, it may face challenges from fluctuating commodity prices, regulatory changes in the energy sector, or economic slowdowns that impact the Canadian market. Additionally, interest rate hikes could negatively affect financial stocks, which are heavily weighted in this ETF.

FLCA Top 10 Holdings

FLCA leans heavily on Canada’s big banks, with Royal Bank of Canada and Toronto-Dominion leading the charge as they continue to rise and set the tone for the fund. Energy names like Enbridge and Canadian Natural are also pulling their weight, with steady-to-strong momentum that taps into Canada’s resource backbone. On the flip side, Shopify has been losing steam, acting as a noticeable drag, while Brookfield’s more mixed performance adds some wobble. Overall, this is a Canada-first play, concentrated in financials and energy rather than global tech giants.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Royal Bank Of Canada8.33%$61.98M$267.10B47.42%
75
Outperform
Toronto Dominion Bank5.90%$43.94M$191.51B65.00%
74
Outperform
Shopify3.99%$29.70M$136.12B-1.72%
77
Outperform
Enbridge3.90%$29.05M$126.06B23.83%
69
Neutral
Bank Of Montreal3.53%$26.25MC$158.56B54.41%
74
Outperform
Canadian Bank of Commerce3.42%$25.45MC$148.96B69.24%
74
Outperform
Agnico Eagle3.21%$23.90M$92.14B55.26%
80
Outperform
Brookfield Corporation3.17%$23.61M$103.17B18.71%
65
Neutral
Bank Of Nova Scotia3.15%$23.42MC$136.79B52.47%
77
Outperform
Canadian Natural3.13%$23.26MC$135.17B50.34%
81
Outperform

FLCA Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
50.90
Positive
100DMA
50.43
Positive
200DMA
47.77
Positive
Market Momentum
MACD
0.28
Positive
RSI
57.68
Neutral
STOCH
78.30
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For FLCA, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 51.95, equal to the 50-day MA of 50.90, and equal to the 200-day MA of 47.77, indicating a bullish trend. The MACD of 0.28 indicates Positive momentum. The RSI at 57.68 is Neutral, neither overbought nor oversold. The STOCH value of 78.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FLCA.

FLCA Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$749.89M0.09%
74
Outperform
$10.52B0.19%
74
Outperform
$5.37B0.50%
74
Outperform
$916.41M0.59%
69
Neutral
$886.29M0.15%
71
Outperform
$884.99M0.50%
76
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FLCA
Franklin FTSE Canada ETF
52.58
12.15
30.05%
BBCA
JPMorgan BetaBuilders Canada ETF
EWC
iShares MSCI Canada ETF
SYLD
Cambria Shareholder Yield ETF
FDMO
Fidelity Momentum Factor ETF
HLAL
Wahed FTSE USA Shariah 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.
DisclaimerThis 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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