FLQS - ETF AI Analysis

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

Rating:70Neutral

Price Target:―

The Franklin LibertyQ U.S. Small Cap Equity ETF (FLQS) demonstrates a solid overall rating, driven by strong contributions from holdings like CareTrust REIT (CTRE) and Rambus (RMBS). CTRE benefits from robust revenue growth and strategic expansions, while RMBS is bolstered by its strong positioning in the AI market and solid cash generation. However, the ETF's rating is slightly tempered by weaker holdings like TXNM Energy, which faces challenges such as declining profit margins and negative free cash flow. A key risk factor is the ETF's exposure to small-cap stocks, which can be more volatile compared to larger companies.

Positive Factors

Strong Top Holdings

Several of the ETF’s largest positions, such as InterDigital and Hims & Hers Health, have shown strong year-to-date performance, supporting overall returns.

Sector Diversification

The ETF spreads its investments across multiple sectors, including Technology, Industrials, and Consumer Cyclical, reducing reliance on any single industry.

Low Expense Ratio

With an expense ratio of 0.35%, the ETF is relatively affordable compared to many actively managed funds, helping investors keep more of their returns.

Negative Factors

High U.S. Concentration

The ETF is heavily focused on U.S. companies, with over 99% geographic exposure, limiting diversification across global markets.

Mixed Short-Term Performance

The ETF’s one-month performance has been negative, which may concern investors looking for consistent short-term gains.

Small Cap Volatility

As a small-cap-focused fund, the ETF may be more sensitive to market fluctuations and economic uncertainty compared to large-cap funds.

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

AUM69.15M

RegionNorth America

Expense Ratio0.35%

Beta0.85

IssuerFranklin

Inception DateApr 26, 2017

Dividend Yield1.12%

Asset ClassEquity

Index TrackedLibertyQ US Small Cap Equity

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume3,508

30 Day Avg. Volume3,955

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

51.07

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering488

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

FLQS Summary

The Franklin LibertyQ U.S. Small Cap Equity ETF (FLQS) is an investment fund that focuses on small-cap companies in the U.S., which are typically smaller businesses with high growth potential. It follows the LibertyQ US Small Cap Equity index and uses a strategy to pick stocks based on factors like quality, value, and momentum. Some of its holdings include companies like Rambus and InterDigital. Investors might consider FLQS for diversification and the chance to benefit from the growth of smaller, innovative companies. However, small-cap stocks can be more volatile, meaning their prices may rise and fall more sharply than larger companies.

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

The Franklin LibertyQ U.S. Small Cap Equity ETF (FLQS) leans heavily into U.S. small-cap stocks, with a notable focus on technology, industrials, and consumer cyclical sectors. Rambus and InterDigital are rising stars in the tech space, benefiting from strong fundamentals and strategic positioning, while Jackson Financial and Moog are steady performers, bolstered by solid earnings and growth in their respective industries. However, lagging momentum from Qualys and CareTrust REIT has slightly tempered the fund’s overall performance. With its sector diversity and small-cap focus, FLQS offers a dynamic mix of innovation and growth potential.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
JXN	Jackson Financial Incorporation	1.14%	$814.39K	$7.98B	38.71%	73 Outperform
MOG.A	Moog	1.01%	$723.72K	$8.80B	31.73%	73 Outperform
WTS	Watts Water Technologies	1.00%	$714.68K	$9.59B	46.62%	77 Outperform
ESNT	Essent Group	1.00%	$713.96K	$6.25B	18.70%	73 Outperform
ANF	Abercrombie Fitch	0.97%	$689.76K	$5.95B	-19.31%	78 Outperform
CTRE	CareTrust REIT	0.95%	$680.69K	$8.25B	41.60%	80 Outperform
RMBS	Rambus	0.93%	$660.57K	$9.83B	62.44%	78 Outperform
FCFS	FirstCash	0.86%	$613.48K	$7.29B	55.02%	74 Outperform
IDCC	InterDigital	0.83%	$588.84K	$7.90B	65.54%	76 Outperform
TXNM	TXNM Energy	0.82%	$588.16K	$6.44B	27.10%	60 Neutral

FLQS Technical Analysis

Technical Analysis Sentiment

Positive

Last Price―

Price Trends

50DMA

42.97

Positive

100DMA

43.22

Positive

200DMA

41.52

Positive

Market Momentum

MACD

0.28

Negative

RSI

64.81

Neutral

STOCH

92.04

Negative

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 43.94, equal to the 50-day MA of 42.97, and equal to the 200-day MA of 41.52, indicating a bullish trend. The MACD of 0.28 indicates Negative momentum. The RSI at 64.81 is Neutral, neither overbought nor oversold. The STOCH value of 92.04 is Negative, 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
FLQS	―	―	$69.15M	0.35%	―
FSCC	―	―	$85.50M	0.36%	―
AFSM	―	―	$72.60M	0.75%	―
STXK	―	―	$72.21M	0.18%	―
BKSE	―	―	$62.53M	0.04%	―
SYZ	―	―	$57.19M	0.74%	―

Performance Comparison

FLQS

Franklin LibertyQ U.S. Small Cap Equity ETF

44.71

3.92

9.61%

FSCC

Federated Hermes MDT Small Cap Core ETF

―

AFSM

First Trust Active Factor Small Cap ETF

―

STXK

Strive 2000 ETF

―

BKSE

BNY Mellon US Small Cap Core Equity ETF

―

SYZ

Lazard US Systematic Small Cap 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.

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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