ETF Research Center

FLKR tracks a market-cap-weighted index of large- and midcap South Korean companies. lf

FUND BASICS
Category	International Equities
Fund Sponsor	Franklin Templeton
Website	www.libertyshares.com
Inception date	Nov 02, 2017
Assets (mns)	$15
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	138
Wgt avg mkt cap (mns)	$72,768
Large cap (>$10bn)	68.1%
Mid cap ($2-10bn)	25.6%
Small cap (<$2bn)	6.4%
Developed mkts	0.0%
Emerging mkts	100.0%

TOP TEN HOLDINGS
Total	45.8 %
SAMSUNG ELECTRONICS CO LTD	18.4 %
HYNIX SEMICONDUCTOR INC	6.3 %
NHN CORP	3.2 %
SHINHAN FINANCIAL GROUP LTD	2.9 %
CELLTRION INC	2.7 %
SAMSUNG ELECTRONICS-PFD	2.6 %
HYUNDAI MOTOR CO	2.6 %
KB FINANCIAL GROUP INC	2.5 %
HYUNDAI MOBIS	2.3 %
POSCO	2.2 %

TOP COUNTRY EXPOSURE
	SOUTH KOREA	99.1 %

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.
0.3%	3.1%	--	--	-10.4%

Market Correlations
versus...	Beta	R-squared
S&P500	0.89	43%
MSCI EAFE	1.26	67%
MSCI Emg. Mkts.	1.08	76%

Technical Indicators
Recent close	$20.91
30d moving avg.	$20.28
Annualized volatility	20.0%
Short interest (ETF)	2.4%
Relative strength (RSI)	63

Liquidity measures
Avg. volume (thou.)	2
Turnover	0.3%
Bid/Ask (% of price)	0.34%
ADV underlying (mns)	$2,982

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

FLKR

Expense:

9 bp

ALTAR Score™:

10.5%

ALTERNATIVE ETFs BASED ON OVERLAP WITH FLKR
Ticker	Fund Name	Overlap¹ vs FLKR (%)	Expense ratio (bp)	Savings vs FLKR (bp)	ALTAR Score™ (%)	ALTAR vs FLKR (%)
EWY	iShares MSCI Korea	88.9	59	-50	10.0	-0.5
DBKO	Xtrackers MSCI S Korea Hedged	88.4	58	-49	10.0	-0.4
FKO	First Trust South Korea AlphaDEX	43.9	80	-71	11.4	+1.0
BICK	First Trust BICK Index Fund	23.1	64	-55	6.1	-4.3
AIA	iShares S&P Asia 50	22.7	50	-41	9.5	-1.0
FPA	First Trust Asia Pac Ex-Japan AlphaDEX	21.9	80	-71	8.7	-1.7
FRDM	Freedom 100 Emerging Markets ETF	19.2	49	-40	8.1	-2.3
KEMX	KraneShares MSCI Emerging Markets EX China Index	19.1	49	-40	8.7	-1.7
EMXC	iShares MSCI Emerging Markets ex China	18.1	49	-40	8.7	-1.8
REEM	Invesco Emerging Markets Revenue ETF	17.0	46	-37	11.7	+1.3
EEMA	iShares MSCI Emg Mkts Asia	16.8	50	-41	8.7	-1.8
UEVM	USAA MSCI Emerging Markets Value Momentum Blend Index	16.5	45	-36	13.1	+2.6
MFEM	PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity	15.7	49	-40	9.0	-1.5
XCEM	Columbia EM Core ex-China	15.0	16	-7	7.7	-2.8
AAXJ	iShares MSCI Asia ex-Japan	14.1	67	-58	8.2	-2.3
FLAX	Franklin FTSE Asia Ex Japan	13.7	19	-10	8.7	-1.8
JHEM	John Hancock Multifactor Emerging Markets	13.6	55	-46	8.8	-1.6
EEMX	SPDR MSCI Emerging Markets Fossil Fuel Free	13.3	30	-21	8.6	-1.9
GEM	Goldman Sachs ActiveBeta Emg Mkts Equity	13.3	45	-36	9.2	-1.3
EMGF	iShares Edge MSCI Multifactor Emerging Markets	12.8	45	-36	10.1	-0.4

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

SPECULATIVE

Deeply undervalued but risky. A rating of SPECULATIVE is assigned to ETFs with ALTAR Scores in the top quintile (the top 20%) of their category, indicating exceptional appreciation potential. However, often these are narrowly-focused funds or in industries with structural issues, which may also make them very risky. Nonetheless they may still be useful as part of a well-diversified portfolio.

ALTAR Score™

Calculation of ALTAR Score™
Avg. Return on Equity	8.5	%
Divided by: Fwd. P/BV	0.8	x
Less: Expense ratio	9	bp
Equals: ALTAR Score	10.5	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.29	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.