FLQS - ETF AI Analysis

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

Rating:70Neutral

Price Target:―

FLQS, the Franklin LibertyQ U.S. Small Cap Equity ETF, has an overall rating that suggests it holds a generally solid mix of small-cap stocks with attractive fundamentals and growth potential. Strong contributors like CareTrust REIT, with its robust revenue growth and low leverage, and Rambus, with its strong cash generation and strategic AI positioning, help support the fund’s quality. Some holdings face headwinds such as high valuations, leverage, or mixed technical signals, and the fund’s focus on U.S. small caps means investors should be aware of the added volatility and sector- or theme-specific risks that can come with this segment of the market.

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)

AUM71.44M

RegionNorth America

Expense Ratio0.35%

Beta0.85

IssuerFranklin

Inception DateApr 26, 2017

Dividend Yield1.13%

Asset ClassEquity

Index TrackedLibertyQ US Small Cap Equity

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume6,839

30 Day Avg. Volume4,356

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

51.36

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering485

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

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 leans into U.S. small caps with a tilt toward tech, industrials, and consumer names, and its recent story is mostly about quiet strength rather than big drama. Rambus is one of the main engines, riding strong momentum tied to AI and chip demand, while Moog and Primoris Services add steady lift from aerospace, defense, and infrastructure work. Installed Building Products is also rising, helped by construction activity. On the softer side, Essent Group has been lagging, and InterDigital’s mixed trading has kept it from fully pulling its weight, but no single stock dominates the fund.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
MOG.A	Moog	1.19%	$850.09K	$10.21B	68.09%	73 Outperform
JXN	Jackson Financial Incorporation	1.16%	$829.59K	$8.08B	22.02%	73 Outperform
RMBS	Rambus	1.16%	$826.86K	$12.25B	84.73%	78 Outperform
WTS	Watts Water Technologies	1.06%	$756.66K	$9.98B	44.75%	77 Outperform
ESNT	Essent Group	0.97%	$694.64K	$6.08B	8.02%	73 Outperform
CTRE	CareTrust REIT	0.97%	$689.45K	$8.34B	40.90%	80 Outperform
IDCC	InterDigital	0.89%	$637.21K	$8.40B	78.40%	76 Outperform
PRIM	Primoris Services	0.89%	$635.70K	$8.01B	93.11%	75 Outperform
FCFS	FirstCash	0.89%	$632.90K	$7.52B	56.21%	74 Outperform
IBP	Installed Building Products	0.88%	$626.99K	$7.82B	44.91%	74 Outperform

FLQS Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price―

Price Trends

50DMA

43.74

Positive

100DMA

43.44

Positive

200DMA

42.05

Positive

Market Momentum

MACD

0.26

Positive

RSI

51.51

Neutral

STOCH

19.70

Positive

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For FLQS, the sentiment is Neutral. The current price of undefined is equal to the 20-day moving average (MA) of 44.61, equal to the 50-day MA of 43.74, and equal to the 200-day MA of 42.05, indicating a neutral trend. The MACD of 0.26 indicates Positive momentum. The RSI at 51.51 is Neutral, neither overbought nor oversold. The STOCH value of 19.70 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FLQS.

FLQS Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
FLQS	―	―	$71.44M	0.35%	―
FSML	―	―	$99.42M	0.45%	―
AFSM	―	―	$77.46M	0.75%	―
STXK	―	―	$73.75M	0.18%	―
BKSE	―	―	$65.52M	0.04%	―
SYZ	―	―	$58.46M	0.74%	―

Performance Comparison

FLQS

Franklin LibertyQ U.S. Small Cap Equity ETF

44.53

2.60

6.20%

FSML

Franklin Small Cap Enhanced 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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