ETF Research Center

The Franklin FTSE Australia ETF tracks a market-cap-weighted index of Australian large- and midcap stocks.

FUND BASICS
Category	International Equities
Fund Sponsor	Franklin Templeton
Website	www.libertyshares.com
Inception date	Nov 02, 2017
Assets (mns)	$13
Currency	USD
Expense ratio	9 bp
Distributions	Semi-annual

FUND STRUCTURE
Regulation	Open-Ended Fund
Custodian
Weighting	Market Cap
Index replication
Uses derivatives	No
Options available	No

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	103
Wgt avg mkt cap (mns)	$43,744
Large cap (>$10bn)	71.4%
Mid cap ($2-10bn)	27.4%
Small cap (<$2bn)	1.2%
Developed mkts	99.4%
Emerging mkts	0.6%

TOP TEN HOLDINGS
Total	50.0 %
COMMONWEALTH BANK OF AUSTRAL	8.8 %
CSL LIMITED	7.4 %
BHP BILLITON LTD	6.9 %
WESTPAC BANKING CORP	6.0 %
NATIONAL AUSTRALIA BANK LTD	5.2 %
AUST AND NZ BANKING GROUP	4.7 %
WOOLWORTHS LIMITED	3.0 %
WESFARMERS LIMITED	2.9 %
MACQUARIE GROUP LTD	2.7 %
TRANSURBAN GROUP	2.5 %

TOP COUNTRY EXPOSURE
	AUSTRALIA	95.6 %
	BRITAIN	1.5 %
	IRELAND	0.8 %
	NEW ZEALAND	0.4 %

HISTORICAL PERFORMANCE info

	Custom date range	Compare to
	thru

Standardized Annual Returns (thru October 31)
Year-to-date	1 year	5 years	10 years	Since Incep.
19.8%	16.1%	--	--	5.0%

Market Correlations
versus...	Beta	R-squared
S&P500	0.63	64%
MSCI EAFE	0.76	72%
MSCI Emg. Mkts.	0.56	59%

Technical Indicators
Recent close	$25.90
30d moving avg.	$25.63
Annualized volatility	11.6%
Short interest (ETF)	7.3%
Relative strength (RSI)	66

Liquidity measures
Avg. volume (thou.)	2
Turnover	0.4%
Bid/Ask (% of price)	0.15%
ADV underlying (mns)	$2,943

Distributions

FINDING ALTERNATIVE FUNDS

Below is a list of 20 potential alternatives to the Franklin FTSE Australia ETF based on the alternatives' overlap in portfolio holdings with FLAU. Consider funds with lower expense ratios and/or higher ALTAR Score™ ratings as possible alternatives.

Benchmark ticker:

FLAU

Expense:

9 bp

ALTAR Score™:

6.1%

ALTERNATIVE ETFs BASED ON OVERLAP WITH FLAU
Ticker	Fund Name	Overlap¹ vs FLAU (%)	Expense ratio (bp)	Savings vs FLAU (bp)	ALTAR Score™ (%)	ALTAR vs FLAU (%)
EWA	iShares MSCI Australia	88.6	47	-38	5.7	-0.4
BBAX	JPMorgan BetaBuilders Developed Asia ex-Japan	56.0	19	-10	6.6	+0.5
EPP	iShares MSCI Pacific ex-Japan	55.2	48	-39	6.4	+0.3
FAUS	First Trust Australia	28.6	80	-71	5.4	-0.7
SCIX	Global X Scientific Beta Asia ex-Japan	27.6	38	-29	6.2	+0.2
AXJL	WisdomTree Asia Pacific Ex-Japan	22.5	48	-39	9.2	+3.1
DVYA	iShares Asia/Pacific Dividend 30	17.7	49	-40	8.3	+2.2
FPA	First Trust Asia Pac Ex-Japan AlphaDEX	17.7	80	-71	8.8	+2.8
IDOG	ALPS International Sector Dividend Dogs	17.0	50	-41	7.4	+1.4
IPAC	iShares Core MSCI Pacific	16.0	9	0	7.5	+1.5
RFAP	First Trust Riverfront Dynamic Asia Pacific	15.4	83	-74	7.4	+1.3
VPL	Vanguard Pacific ETF	14.5	9	0	7.9	+1.8
IDV	iShares DJ Int'l Select Dividend	12.8	49	-40	8.5	+2.5
PICK	iShares MSCI Global Select Metals & Mining	12.3	39	-30	7.6	+1.5
IDHD	Invesco S&P Intl Developed High Div Low Volatility	12.3	30	-21	6.5	+0.4
IDMO	Invesco S&P Int'l Dev. Momentum	11.6	25	-16	4.7	-1.4
DEEF	Xtrackers FTSE Dev ex-US Comprehensive Factor	11.0	24	-15	7.1	+1.0
DWMF	WisdomTree International Multifactor Fund	11.0	38	-29	6.4	+0.4
INTF	iShares FactorSelect MSCI International	10.9	30	-21	8.4	+2.3
EFAS	Global X MSCI SuperDividend EAFE	10.1	55	-46	8.5	+2.4

¹Overlap is the percentage of holdings by weight that are identical. For example, if Fund A has a 2% position in Apple, Inc. (AAPL) and Fund B has a 5% position, their overlapping position in AAPL is 2%.

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RESULTS & ESTIMATES

	2014	2015	2016	2017	2018	2019E	2020E
Sales per share	**	**	**	**	**	**	**
Earnings per share	**	**	**	**	**	**	**
Dividends per share	**	**	**	**	**	**	**
Book value per share	**	**	**	**	**	**	**

Sales per share growth		**%	**%	**%	**%	**%	**%
EPS growth		**%	**%	**%	**%	**%	**%

Sales per share growth		**%	**%	**%	**%	**%	**%
EPS growth		**%	**%	**%	**%	**%	**%

OTHER FUNDAMENTAL METRICS

Long term EPS growth est.	**%		Debt-to-equity	**x
Asset turnover	**%		Assets-to-equity	**x

Return on equity

Revision activity*

*Six months ago = 100

Net margins

Compound annual growth rates

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VALUATION METRICS

	2018	2019E	2020E
Price-to-sales	**	**	**
Price-to-earnings	**	**	**
Price-to-cash flow	**	**	**
Price-to-growth	**	**	**
Price-to-book value	**	**	**
Yield	**	**	**

Historical valuation trends

Forward multiple:	Franklin FTSE Australia
Relative to:	S&P500	MSCI EAFE	MSCI Emg. Mkts.	Other ETF:

UNDERWEIGHT

Below average appreciation potential. A rating of UNDERWEIGHT is assigned to ETFs with ALTAR Scores in the 2nd quintile (ranking higher than only 20%-40%) of their category. Typically, funds in this category consist of stocks trading at relatively expensive valuations and/or having below-average fundamentals.

ALTAR Score™

Calculation of ALTAR Score™
Avg. Return on Equity	12.4	%
Divided by: Fwd. P/BV	2.0	x
Less: Expense ratio	9	bp
Equals: ALTAR Score	6.1	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.92	CATEGORY AVERAGE	1.63

The composite rating is a weighted average of analysts' consensus recommendations for individual ETF constituents, based on the following scale: BUY = 1; OVERWEIGHT = 1.5, HOLD = 2; UNDERWEIGHT = 2.5; and SELL = 3. Readers are cautioned that because analyst ratings tend to be inflated, the composite score may be more useful as a relative measure of sentiment between funds rather than as a stand-alone recommendation.