FLJH - ETF AI Analysis

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Franklin FTSE Japan Hedged ETF (FLJH)

Rating:69Neutral

Price Target:―

FLJH’s rating suggests it is a solid but not top-tier way to invest in Japanese stocks while hedging currency risk. Strong, diversified leaders like Toyota and major financial groups such as Mitsubishi UFJ and Mizuho support the fund’s quality through robust earnings, healthy balance sheets, and positive stock trends, though some holdings like Mitsubishi Heavy Industries and SoftBank introduce risks from overvaluation, high leverage, and weaker technical signals. The main risk is that the fund is concentrated in Japan, so its performance is heavily tied to the health of the Japanese economy and markets.

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)

AUM121.83M

RegionAsia-Pacific

Expense Ratio0.09%

Beta0.97

IssuerFranklin

Inception DateNov 02, 2017

Dividend Yield7.77%

Asset ClassEquity

Index TrackedFTSE Japan RIC Capped Hedged to USD Net Tax Index

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume63,903

30 Day Avg. Volume32,543

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

47.15

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering486

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

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 is essentially a bet on Japan Inc., with the heavy lifting coming from its big banks and industrial and tech champions. Mitsubishi UFJ, Sumitomo Mitsui, and Mizuho are all rising, giving the fund a strong financial backbone. Toyota and Hitachi are also pulling their weight, adding steady industrial and tech-driven momentum. On the flip side, Sony has been losing steam and SoftBank is clearly lagging, acting as a brake on returns. Overall, this is a Japan-only play, tilted toward financials, industrials, and chip-related names like Tokyo Electron and Advantest.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
7203	Toyota Motor	4.28%	$5.07M	¥45.67T	25.15%	80 Outperform
8306	Mitsubishi UFJ Financial Group	3.46%	$4.10M	¥31.36T	46.99%	76 Outperform
6501	Hitachi,Ltd.	2.64%	$3.13M	¥24.49T	38.06%	77 Outperform
6758	Sony	2.33%	$2.76M	¥21.10T	-2.66%	73 Outperform
8316	Sumitomo Mitsui Financial Group	2.22%	$2.63M	¥21.05T	50.83%	77 Outperform
6857	Advantest	2.03%	$2.41M	¥18.66T	203.78%	75 Outperform
8035	Tokyo Electron	2.00%	$2.37M	¥18.93T	61.16%	73 Outperform
8411	Mizuho Financial Group	1.83%	$2.17M	¥16.86T	50.02%	77 Outperform
9984	SoftBank Group	1.82%	$2.16M	¥24.28T	77.89%	64 Neutral
7011	Mitsubishi Heavy Industries	1.66%	$1.97M	¥15.19T	97.36%	60 Neutral

FLJH Technical Analysis

Technical Analysis Sentiment

Positive

Last Price―

Price Trends

50DMA

37.98

Positive

100DMA

36.58

Positive

200DMA

33.44

Positive

Market Momentum

MACD

0.39

Positive

RSI

60.80

Neutral

STOCH

38.26

Neutral

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 39.35, equal to the 50-day MA of 37.98, and equal to the 200-day MA of 33.44, indicating a bullish trend. The MACD of 0.39 indicates Positive momentum. The RSI at 60.80 is Neutral, neither overbought nor oversold. The STOCH value of 38.26 is Neutral, 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
FLJH	―	―	$121.83M	0.09%	―
EWJV	―	―	$594.46M	0.15%	―
DBJP	―	―	$532.92M	0.45%	―
FJP	―	―	$222.95M	0.80%	―
OPPJ	―	―	$156.79M	0.58%	―
JPXN	―	―	$124.39M	0.48%	―

Performance Comparison

FLJH

Franklin FTSE Japan Hedged ETF

39.67

10.90

37.89%

EWJV

iShares MSCI Japan Value ETF

―

DBJP

Xtrackers MSCI Japan Hedged Equity ETF

―

FJP

First Trust Japan AlphaDEX Fund

―

OPPJ

WisdomTree Japan Opportunities Fund

―

JPXN

iShares Japan Large-Cap

―

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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