ETF Research Center

The Franklin FTSE Japan Hedged ETF tracks a market-cap-weighted index of large- and midcap companies in Japan. The fund is currency hedged for USD-based investors.

FUND BASICS
Category	International Equities
Fund Sponsor	Franklin Templeton
Website	www.libertyshares.com
Inception date	Nov 02, 2017
Assets (mns)	$5
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	504
Wgt avg mkt cap (mns)	$35,294
Large cap (>$10bn)	70.9%
Mid cap ($2-10bn)	26.5%
Small cap (<$2bn)	2.6%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	18.2 %
TOYOTA MOTOR CORP	4.5 %
SONY CORP	2.3 %
SOFTBANK GROUP CORP.	1.8 %
MITSUBISHI UFJ FINANCIAL GRO	1.7 %
KEYENCE CORP	1.6 %
TAKEDA PHARMACEUTICAL CO LTD	1.5 %
RECRUIT HOLDINGS CO LTD	1.3 %
KDDI CORPORATION	1.3 %
HONDA MOTOR CO LTD	1.2 %
SHIN-ETSU CHEMICAL CO LTD	1.2 %

TOP COUNTRY EXPOSURE
	JAPAN	98.7 %

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.
20.4%	20.4%	--	--	1.9%

Market Correlations
versus...	Beta	R-squared
S&P500	0.92	72%
MSCI EAFE	1.08	76%
MSCI Emg. Mkts.	0.68	51%

Technical Indicators
Recent close	$25.82
30d moving avg.	$25.86
Annualized volatility	15.6%
Short interest (ETF)	0.0%
Relative strength (RSI)	54

Liquidity measures
Avg. volume (thou.)	0
Turnover	0.0%
Bid/Ask (% of price)	0.14%
ADV underlying (mns)	$13,680

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

FLJH

Expense:

9 bp

ALTAR Score™:

7.7%

ALTERNATIVE ETFs BASED ON OVERLAP WITH FLJH
Ticker	Fund Name	Overlap¹ vs FLJH (%)	Expense ratio (bp)	Savings vs FLJH (bp)	ALTAR Score™ (%)	ALTAR vs FLJH (%)
HFXJ	IQ 50 Percent Hedged FTSE Japan	97.6	30	-21	7.6	-0.1
FLJP	Franklin FTSE Japan	97.3	9	0	7.8	+0.1
BBJP	JPMorgan BetaBuilders Japan	91.8	19	-10	7.7	-0.1
EWJ	iShares MSCI Japan	90.2	47	-38	7.4	-0.3
DBJP	Xtrackers MSCI Japan Hedged	89.1	45	-36	7.3	-0.4
QJPN	SPDR MSCI Japan Quality Mix	88.8	14	-5	7.9	+0.2
JPXN	iShares JPX-Nikkei 400	83.8	48	-39	7.5	-0.2
JPN	Xtrackers Japan JPX-Nikkei 400 Equity	83.5	9	0	7.8	+0.1
GSJY	Goldman Sachs ActiveBeta Japan Equity	76.5	25	-16	7.5	-0.2
IPAC	iShares Core MSCI Pacific	60.0	9	0	7.2	-0.5
DXJ	WisdomTree Japan Hedged Equity	57.5	48	-39	8.3	+0.6
EWJE	iShares MSCI Japan Equal Weighted	54.7	15	-6	7.0	-0.7
VPL	Vanguard Pacific ETF	53.4	9	0	7.5	-0.2
EWJV	iShares MSCI Japan Value	49.8	15	-6	10.5	+2.8
SCIJ	Global X Scientific Beta Japan	44.6	39	-30	6.9	-0.8
RFAP	First Trust Riverfront Dynamic Asia Pacific	44.3	83	-74	7.0	-0.7
JPMV	iShares MSCI Japan Min Volatility	42.7	30	-21	6.8	-1.0
IVLU	iShares MSCI Int'l Developed Value Factor	35.2	30	-21	10.4	+2.6
REFA	Invesco International Revenue ETF	31.7	42	-33	8.6	+0.9
PQIN	PGIM QMA Strategic Alpha International Equity	28.2	29	-20	7.1	-0.6

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

OVERWEIGHT

Above average appreciation potential. A rating of OVERWEIGHT is assigned to ETFs with ALTAR Scores in the 4th quintile (ranking higher than 60%-80%) of their category. Typically, funds in this category consist of stocks trading at attractive valuations and/or having above-average fundamentals.

ALTAR Score™

Calculation of ALTAR Score™
Avg. Return on Equity	9.5	%
Divided by: Fwd. P/BV	1.2	x
Less: Expense ratio	9	bp
Equals: ALTAR Score	7.7	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.56	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.