ETF Research Center

The Franklin FTSE Europe ETF tracks a market-cap-weighted index of large- and midcap stocks in developed European countries.

FUND BASICS
Category	International Equities
Fund Sponsor	Franklin Templeton
Website	www.libertyshares.com
Inception date	Nov 02, 2017
Assets (mns)	$69
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	581
Wgt avg mkt cap (mns)	$76,976
Large cap (>$10bn)	86.5%
Mid cap ($2-10bn)	12.7%
Small cap (<$2bn)	0.5%
Developed mkts	99.4%
Emerging mkts	0.6%

TOP TEN HOLDINGS
Total	17.2 %
NESTLE SA-REG	3.2 %
ROCHE HOLDING AG-GENUSSCHEIN	2.3 %
NOVARTIS AG-REG	2.1 %
HSBC HOLDINGS PLC	1.6 %
SAP AG	1.4 %
TOTAL SA	1.4 %
BP PLC	1.4 %
ROYAL DUTCH SHELL PLC-A SHS	1.4 %
ASTRAZENECA PLC	1.3 %
ROYAL DUTCH SHELL PLC-B SHS	1.2 %

TOP COUNTRY EXPOSURE
	BRITAIN	25.2 %
	FRANCE	15.9 %
	SWITZERLAND	15.0 %
	GERMANY	13.8 %
	NETHERLANDS	6.5 %
	SPAIN	4.3 %
	SWEDEN	4.2 %
	ITALY	3.7 %
	DENMARK	2.8 %
	BELGIUM	1.6 %

HISTORICAL PERFORMANCE info

	Custom date range	Compare to
	thru

Standardized Annual Returns (thru November 30)
Year-to-date	1 year	5 years	10 years	Since Incep.
19.3%	13.7%	--	--	1.5%

Market Correlations
versus...	Beta	R-squared
S&P500	0.77	71%
MSCI EAFE	1.03	97%
MSCI Emg. Mkts.	0.75	79%

Technical Indicators
Recent close	$24.60
30d moving avg.	$24.50
Annualized volatility	13.3%
Short interest (ETF)	0.2%
Relative strength (RSI)	62

Liquidity measures
Avg. volume (thou.)	2
Turnover	0.1%
Bid/Ask (% of price)	0.09%
ADV underlying (mns)	$28,123

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

FLEE

Expense:

9 bp

ALTAR Score™:

6.8%

ALTERNATIVE ETFs BASED ON OVERLAP WITH FLEE
Ticker	Fund Name	Overlap¹ vs FLEE (%)	Expense ratio (bp)	Savings vs FLEE (bp)	ALTAR Score™ (%)	ALTAR vs FLEE (%)
HFXE	IQ 50 PERCENT HEDGED FTSE EUROPE	97.0	30	-21	6.7	-0.2
FLEH	Franklin FTSE Europe Hedged	96.7	9	0	6.9	+0.1
BBEU	JPMorgan BetaBuilders Europe	92.1	9	0	6.8	+0.0
DBEU	Xtrackers Europe Hedged	91.8	45	-36	6.5	-0.3
IEV	iShares S&P Europe 350	89.6	59	-50	6.4	-0.5
IEUR	iShares Core MSCI Europe	88.0	9	0	6.8	-0.0
VGK	Vanguard FTSE Europe	87.8	9	0	6.9	+0.0
FEU	SPDR DJ Stoxx 50	86.0	9	0	6.8	-0.0
GSEU	Goldman Sachs ActiveBeta Europe Equity	70.9	25	-16	6.3	-0.5
EFA	iShares MSCI EAFE	60.5	31	-22	6.9	+0.1
EFAX	SPDR MSCI EAFE Fossil Fuel Free	58.8	20	-11	7.0	+0.1
DBEF	Xtrackers MSCI EAFE Hedged	58.8	35	-26	6.9	+0.1
HFXI	IQ 50 Percent Hedged FTSE Int'l	57.2	20	-11	7.2	+0.4
PBDM	Invesco PureBeta FTSE Developed ex-North America	57.1	7	2	7.4	+0.6
DOL	WisdomTree Int'l Large Cap Dividend	55.0	48	-39	7.7	+0.9
ESGD	iShares MSCI EAFE ESG Optimized	54.7	20	-11	6.8	-0.0
IEFA	iShares Core MSCI EAFE	53.9	7	2	7.0	+0.1
DDWM	WisdomTree Dynamic Currency Hedged Int'l Equity	53.1	35	-26	7.8	+1.0
SCHF	Schwab International Equity	52.9	6	3	7.3	+0.5
DWM	WisdomTree DEFA Fund	52.7	48	-39	7.6	+0.8

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 Europe
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	11.1	%
Divided by: Fwd. P/BV	1.6	x
Less: Expense ratio	9	bp
Equals: ALTAR Score	6.8	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.64	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.