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FLJH - ETF AI Analysis

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FLJH

Franklin FTSE Japan Hedged ETF (FLJH)

Rating:68Neutral
Price Target:
FLJH’s rating reflects a generally solid portfolio of major Japanese companies, led by strong holdings like Toyota and Hitachi, which benefit from robust financial health, positive earnings outlooks, and supportive technical trends. Financial groups such as Mitsubishi UFJ and Sumitomo Mitsui also add stability with good profitability and reasonable valuations, though some names like Mitsubishi and SoftBank Group weigh on the fund due to weaker momentum, overvaluation concerns, and leverage and cash flow issues. The main risk factor is the fund’s concentration in Japanese equities, which ties its performance closely to Japan’s economic and market conditions.
Positive Factors
Low Expense Ratio
The fund charges a relatively low fee, which helps investors keep more of their returns over time.
Broad Sector Diversification in Japan
Holdings spread across many sectors like industrials, technology, financials, and consumer companies help reduce the impact of weakness in any single industry.
Generally Positive Recent Performance
The ETF has shown steady gains over the past month, three months, and year-to-date, indicating supportive recent market conditions for its strategy.
Negative Factors
Heavy Concentration in Japan
With the vast majority of assets invested in Japanese companies, the fund is highly sensitive to economic and market conditions in Japan.
Mixed Performance Among Top Holdings
While several major positions like large financial and technology names have performed strongly, some key holdings such as Sony and SoftBank have been weak, which can drag on overall results.
Significant Exposure to Cyclical Sectors
Large weights in industrials, financials, and consumer cyclical stocks mean the fund may be more affected by economic slowdowns or shifts in business cycles.

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

FLJH Summary

FLJH is an exchange-traded fund that tracks the FTSE Japan RIC Capped Hedged to USD Index, giving you broad exposure to the Japanese stock market while trying to reduce the impact of yen–dollar currency swings. It owns many types of companies, including industrial, technology, and financial firms, with well-known names like Toyota and Sony among its top holdings. Someone might invest in FLJH to diversify outside the U.S. and tap into potential growth in Japan in a single, low-cost fund. A key risk is that Japanese stocks can still rise or fall significantly with market conditions.
How much will it cost me?The Franklin FTSE Japan Hedged ETF (FLJH) 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 keeps costs down.
What would affect this ETF?The Franklin FTSE Japan Hedged ETF (FLJH) could benefit from Japan's advancements in technology and industrial sectors, as well as potential growth in consumer markets driven by economic recovery or increased global trade. However, challenges such as rising interest rates, economic slowdowns in Japan, or regulatory changes affecting key holdings like Toyota and Sony could negatively impact the ETF's performance. Additionally, fluctuations in the U.S. dollar and yen exchange rates, despite the hedging strategy, may still influence returns.

FLJH Top 10 Holdings

FLJH leans heavily into Japan’s industrial and financial engines, with Toyota and Hitachi recently losing a bit of speed and acting as mild brakes on performance. The big banks, led by Mitsubishi UFJ and Sumitomo Mitsui, have been more of a steady, if choppy, tailwind, helping offset some of that drag. On the brighter side, trading houses like Mitsubishi and Mitsui & Co have been rising and quietly pulling the fund forward. With all holdings based in Japan and currency risk hedged, this ETF is a focused bet on Japan Inc. itself.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Toyota Motor3.93%$5.38M¥42.32T43.92%
80
Outperform
Mitsubishi UFJ Financial Group3.21%$4.40M¥31.22T60.04%
76
Outperform
Hitachi,Ltd.2.23%$3.05M¥21.34T51.62%
77
Outperform
Sony2.10%$2.87M¥20.11T5.27%
73
Outperform
Sumitomo Mitsui Financial Group2.07%$2.83M¥20.53T64.48%
77
Outperform
Mitsubishi2.04%$2.79M¥20.48T113.51%
60
Neutral
Tokyo Electron1.89%$2.58M¥17.58T99.94%
73
Outperform
Mitsui & Co1.78%$2.44M¥17.90T135.16%
74
Outperform
Advantest1.74%$2.38M¥15.30T264.32%
75
Outperform
SoftBank Group1.68%$2.30M¥20.82T145.02%
64
Neutral

FLJH Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
40.86
Positive
100DMA
39.24
Positive
200DMA
36.10
Positive
Market Momentum
MACD
-0.10
Negative
RSI
55.24
Neutral
STOCH
80.70
Negative
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For FLJH, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 40.17, equal to the 50-day MA of 40.86, and equal to the 200-day MA of 36.10, indicating a bullish trend. The MACD of -0.10 indicates Negative momentum. The RSI at 55.24 is Neutral, neither overbought nor oversold. The STOCH value of 80.70 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FLJH.

FLJH Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$139.28M0.09%
68
Neutral
$740.82M0.15%
72
Outperform
$262.45M0.58%
66
Neutral
$236.82M0.80%
69
Neutral
$140.21M0.48%
70
Outperform
$120.57M0.50%
69
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FLJH
Franklin FTSE Japan Hedged ETF
41.18
14.12
52.18%
EWJV
iShares MSCI Japan Value ETF
OPPJ
WisdomTree Japan Opportunities Fund
FJP
First Trust Japan AlphaDEX Fund
JPXN
iShares Japan Large-Cap
NBJP
Neuberger Berman Japan Equity 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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