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, earns a solid overall rating because many of its top holdings—like CareTrust REIT, Rambus, InterDigital, and Watts Water Technologies—show strong financial performance, positive earnings outlooks, and strategic growth positions, including exposure to areas like aerospace, defense, and AI. The rating is held back somewhat by valuation concerns, occasional bearish or mixed technical signals, and company-specific risks such as high leverage, cash flow constraints, and litigation, and investors should note that the fund is concentrated in smaller U.S. companies, which can be more volatile.

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)

AUM49.18M

RegionNorth America

Expense Ratio0.35%

Beta0.86

IssuerFranklin

Inception DateApr 26, 2017

Dividend Yield1.14%

Asset ClassEquity

Index TrackedLibertyQ US Small Cap Equity

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume27,440

30 Day Avg. Volume12,111

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

52.54

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering482

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 is leaning into U.S. small caps with a clear tilt toward industrials and niche tech names, and that mix is currently giving the fund a lift. Industrial players like Moog, Primoris Services, and Esco Technologies are rising and acting as key engines for performance, while steady growers such as Watts Water and FirstCash help smooth the ride. On the tech side, Rambus has been more mixed lately, losing a bit of steam in the short term, which slightly tugs on returns. Overall, the story is U.S.-only, industrial- and tech-flavored small-cap strength.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
MOG.A	Moog	1.25%	$606.36K	$10.17B	86.35%	73 Outperform
WTS	Watts Water Technologies	1.10%	$532.11K	$10.44B	42.37%	77 Outperform
JXN	Jackson Financial Incorporation	1.10%	$529.74K	$7.88B	29.56%	73 Outperform
CTRE	CareTrust REIT	1.06%	$511.39K	$8.79B	54.51%	80 Outperform
FCFS	FirstCash	1.01%	$489.86K	$8.23B	64.88%	74 Outperform
ESE	Esco Technologies	0.99%	$480.62K	$7.08B	65.04%	70 Neutral
IDCC	InterDigital	0.99%	$479.17K	$9.34B	65.86%	76 Outperform
IBP	Installed Building Products	0.95%	$457.66K	$8.43B	72.80%	74 Outperform
ESNT	Essent Group	0.94%	$452.55K	$5.63B	4.88%	73 Outperform
RMBS	Rambus	0.92%	$443.95K	$9.91B	60.57%	78 Outperform

FLQS Technical Analysis

Technical Analysis Sentiment

Negative

Last Price―

Price Trends

50DMA

44.80

Negative

100DMA

43.82

Positive

200DMA

42.85

Positive

Market Momentum

MACD

<0.01

Positive

RSI

39.13

Neutral

STOCH

36.35

Neutral

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For FLQS, the sentiment is Negative. The current price of undefined is equal to the 20-day moving average (MA) of 45.27, equal to the 50-day MA of 44.80, and equal to the 200-day MA of 42.85, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 39.13 is Neutral, neither overbought nor oversold. The STOCH value of 36.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FLQS.

FLQS Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
FLQS	―	―	$49.18M	0.35%	70 Neutral
AFSM	―	―	$86.40M	0.75%	70 Neutral
STXK	―	―	$74.23M	0.18%	66 Neutral
BKSE	―	―	$74.01M	0.04%	66 Neutral
SYZ	―	―	$58.91M	0.74%	66 Neutral
ROSC	―	―	$51.82M	0.34%	70 Outperform

Performance Comparison

FLQS

Franklin LibertyQ U.S. Small Cap Equity ETF

43.94

5.19

13.39%

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

―

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.

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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