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FLQS - ETF AI Analysis

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FLQS

Franklin LibertyQ U.S. Small Cap Equity ETF (FLQS)

Rating:70Neutral
Price Target:
FLQS, the Franklin LibertyQ U.S. Small Cap Equity ETF, earns a solid overall rating driven by several strong holdings like CareTrust REIT, Watts Water Technologies, Rambus, and Primoris Services, which all show robust financial performance, growth initiatives, and generally positive outlooks. Some positions, such as Esco Technologies and Viavi Solutions, face headwinds from bearish or mixed technical trends, high valuations, or profitability challenges, which slightly weigh on the fund’s rating. The main risk factor is its focus on smaller U.S. companies, where valuations and technical swings can be more volatile, even when fundamentals look strong.
Positive Factors
Strong Lead Holding
The largest position, Rambus, has shown strong gains this year, giving the fund a helpful performance boost.
Broad Sector Diversification
Holdings are spread across many sectors like technology, industrials, consumer cyclical, financials, and health care, which helps reduce the impact of weakness in any one area.
Solid Recent Performance
The ETF has delivered steady gains over the past month, three months, and year-to-date, showing positive recent momentum.
Negative Factors
High U.S. Concentration
Almost all assets are invested in U.S. companies, offering very little geographic diversification outside the United States.
Mixed Results Among Top Holdings
While several top positions have performed well, at least one key holding has shown weak results this year, which can drag on overall returns.
Moderate Expense Ratio
The fund’s expense ratio is not especially low for an ETF, meaning fees take a noticeable, ongoing bite out of investor returns.

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

FLQS Summary

Franklin LibertyQ U.S. Small Cap Equity ETF (FLQS) tracks the LibertyQ US Small Cap Equity index, focusing on smaller U.S. companies with potential for long-term growth. It spreads investments across many sectors, including technology, industrials, and consumer companies, and holds names like Rambus and Moog. Someone might consider FLQS to diversify beyond large, well-known stocks and tap into the growth potential of smaller firms in a single, convenient fund. A key risk is that small-cap stocks can be more volatile, so the ETF’s price can move up and down more sharply than the overall market.
How much will it cost me?The Franklin LibertyQ U.S. Small Cap Equity ETF (FLQS) has an expense ratio of 0.35%, which means you’ll pay $3.50 per year for every $1,000 invested. This cost is slightly higher than average for ETFs because it uses a smart beta approach, actively selecting stocks based on factors like quality, value, and momentum rather than simply tracking an index.
What would affect this ETF?The Franklin LibertyQ U.S. Small Cap Equity ETF (FLQS) could benefit from economic growth and innovation in the U.S., particularly in sectors like technology and consumer cyclical, which are heavily represented in its holdings. However, rising interest rates or economic slowdowns may negatively impact small-cap stocks, as these companies often rely on borrowing and are more sensitive to market volatility. Additionally, sector-specific challenges, such as regulatory changes in healthcare or financials, could pose risks to the ETF's performance.

FLQS Top 10 Holdings

FLQS is leaning into U.S. small caps with a noticeable tilt toward industrial and tech names, and that’s where much of the action is. Viavi Solutions has been the star of the show lately, surging on strong momentum and deal news, while FirstCash and Esco Technologies are also pulling their weight with steady gains. On the flip side, financials like Essent Group and Jackson Financial are lagging and acting as a bit of a brake. Overall, performance is being driven by a handful of rising industrial and tech players in a fully U.S.-focused portfolio.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Moog1.19%$551.98K$9.57B71.60%
73
Outperform
Esco Technologies1.09%$503.73K$7.59B82.65%
70
Neutral
Watts Water Technologies1.08%$498.82K$9.77B40.53%
77
Outperform
FirstCash1.06%$491.33K$8.35B55.57%
74
Outperform
Jackson Financial Incorporation1.06%$488.55K$7.41B20.24%
73
Outperform
CareTrust REIT1.02%$473.78K$8.29B30.05%
80
Outperform
Viavi Solutions1.01%$467.92K$8.17B209.38%
71
Outperform
Rambus0.97%$450.09K$9.70B70.75%
78
Outperform
Essent Group0.95%$440.79K$5.51B-0.77%
73
Outperform
Primoris Services0.92%$426.19K$8.14B153.57%
75
Outperform

FLQS Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
44.14
Negative
100DMA
43.60
Negative
200DMA
42.89
Positive
Market Momentum
MACD
-0.47
Negative
RSI
48.15
Neutral
STOCH
48.69
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For FLQS, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 42.88, equal to the 50-day MA of 44.14, and equal to the 200-day MA of 42.89, indicating a neutral trend. The MACD of -0.47 indicates Negative momentum. The RSI at 48.15 is Neutral, neither overbought nor oversold. The STOCH value of 48.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FLQS.

FLQS Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$46.14M0.35%
70
Neutral
$76.47M0.75%
70
Neutral
$71.84M0.04%
66
Neutral
$69.81M0.18%
66
Neutral
$56.29M0.74%
65
Neutral
$48.83M0.34%
70
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FLQS
Franklin LibertyQ U.S. Small Cap Equity ETF
43.05
5.81
15.60%
AFSM
First Trust Active Factor Small Cap ETF
BKSE
BNY Mellon US Small Cap Core Equity ETF
STXK
Strive 2000 ETF
SYZ
Lazard US Systematic Small Cap Equity ETF
ROSC
Hartford Multifactor Small Cap 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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