ETF Research Center

The Franklin FTSE China ETF tracks a market-cap-weighted index of large- and midcap companies in China.

FUND BASICS
Category	Emerging Market Equities
Fund Sponsor	Franklin Templeton
Website	www.libertyshares.com
Inception date	Nov 02, 2017
Assets (mns)	$42
Currency	USD
Expense ratio	19 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	770
Wgt avg mkt cap (mns)	$210,397
Large cap (>$10bn)	83.1%
Mid cap ($2-10bn)	15.4%
Small cap (<$2bn)	1.2%
Developed mkts	19.8%
Emerging mkts	80.2%

TOP TEN HOLDINGS
Total	50.3 %
ALIBABA GROUP HOLDING LTD. SPONSOR	18.2 %
TENCENT HOLDINGS LTD	13.4 %
CHINA CONSTRUCTION BANK-H	3.7 %
PING AN INSURANCE GROUP CO-H	3.2 %
IND & COMM BK OF CHINA - H	2.7 %
MEITUAN DIANPING	2.3 %
CHINA MOBILE LIMITED	2.1 %
BAIDU INC - SPON ADR	1.8 %
BANK OF CHINA LTD - H	1.5 %
JD.COM INC-ADR	1.5 %

TOP COUNTRY EXPOSURE
	CHINA	85.9 %
	HONG KONG	12.1 %
	SINGAPORE	0.0 %
	BRITISH VIRGIN ISLANDS	0.0 %

HISTORICAL PERFORMANCE info

	Custom date range	Compare to
	thru

Standardized Annual Returns (thru December 31)
Year-to-date	1 year	5 years	10 years	Since Incep.
24.2%	24.2%	--	--	0.9%

Market Correlations
versus...	Beta	R-squared
S&P500	1.33	70%
MSCI EAFE	1.52	71%
MSCI Emg. Mkts.	1.29	85%

Technical Indicators
Recent close	$26.12
30d moving avg.	$24.63
Annualized volatility	22.7%
Short interest (ETF)	0.2%
Relative strength (RSI)	76

Liquidity measures
Avg. volume (thou.)	5
Turnover	0.3%
Bid/Ask (% of price)	0.15%
ADV underlying (mns)	$39,029

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

FLCH

Expense:

19 bp

ALTAR Score™:

8.5%

ALTERNATIVE ETFs BASED ON OVERLAP WITH FLCH
Ticker	Fund Name	Overlap¹ vs FLCH (%)	Expense ratio (bp)	Savings vs FLCH (bp)	ALTAR Score™ (%)	ALTAR vs FLCH (%)
MCHI	iShares MSCI China	89.1	59	-40	8.1	-0.4
GXC	SPDR S&P China ETF	81.2	59	-40	8.1	-0.5
KALL	KraneShares MSCI China All Shares	62.2	49	-30	8.1	-0.4
BKF	iShares MSCI BRIC	59.4	67	-48	7.7	-0.9
WCHN	WisdomTree ICBCCS S&P China 500	57.3	55	-36	8.1	-0.4
CN	Xtrackers Harvest MSCI All China	56.5	50	-31	8.2	-0.3
CHIL	Global X MSCI China Large-Cap 50	54.4	29	-10	9.3	+0.8
CXSE	WisdomTree China ex-State Owned Enterprises	53.2	32	-13	6.1	-2.4
GMF	SPDR S&P Emerging Asia Pacific	44.3	49	-30	7.4	-1.1
EEMA	iShares MSCI Emg Mkts Asia	43.4	50	-31	7.9	-0.6
FXI	iShares China Large-Cap	40.3	74	-55	12.5	+4.0
FLAX	Franklin FTSE Asia Ex Japan	38.4	19	0	7.8	-0.7
AAXJ	iShares MSCI Asia ex-Japan	38.3	67	-48	7.4	-1.1
PBEE	Invesco PureBeta FTSE Emerging Markets	37.7	14	5	8.4	-0.1
SCHE	Schwab Emerging Markets Equity	37.4	13	6	7.9	-0.6
AIA	iShares S&P Asia 50	34.2	50	-31	8.4	-0.1
VWO	Vanguard Emerging Markets	33.2	12	7	7.9	-0.6
EEMX	SPDR MSCI Emerging Markets Fossil Fuel Free	32.9	30	-11	7.9	-0.6
2800-HK	Tracker Fund of Hong Kong	32.8	9	10	9.8	+1.3
EEM	iShares MSCI Emerging Markets	32.7	67	-48	7.7	-0.9

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%.

Content on this tab for subscribers only**

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

Content on this tab for subscribers only

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 China
Relative to:	S&P500	MSCI EAFE	MSCI Emg. Mkts.	Other ETF:

NEUTRAL

Average appreciation potential. A rating of NEUTRAL is assigned to ETFs with ALTAR Scores in the middle quintile (ranking between 40%-60%) of their category. This indicates that valuations adequately reflect the fundamentals of stocks in these funds.

ALTAR Score™

Calculation of ALTAR Score™
Avg. Return on Equity	14.5	%
Divided by: Fwd. P/BV	1.7	x
Less: Expense ratio	19	bp
Equals: ALTAR Score	8.5	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.26	CATEGORY AVERAGE	1.48

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.