ETF Research Center

The Franklin LibertyQ U.S. Equity ETF tracks a multi-factor US large-cap index. Stocks are selected and weighted based on a combination of quality, value, momentum, and low-volatility factors.

FUND BASICS
Category	US Equities
Fund Sponsor	Franklin ETF Trust
Website	www.libertyshares.com
Inception date	Apr 26, 2017
Assets (mns)	$1,497
Currency	USD
Expense ratio	15 bp
Distributions	Quarterly

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

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	248
Wgt avg mkt cap (mns)	$125,936
Large cap (>$10bn)	92.5%
Mid cap ($2-10bn)	7.4%
Small cap (<$2bn)	0.0%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	11.0 %
NEXTERA ENERGY GROUP	1.1 %
MICROSOFT CORP	1.1 %
MASTERCARD INC-CLASS A	1.1 %
APPLE INC	1.1 %
BRISTOL-MYERS SQUIBB CO	1.1 %
INTUIT INC	1.1 %
COCA-COLA CO/THE	1.1 %
BIOGEN IDEC INC	1.1 %
HOME DEPOT INC	1.1 %
INTL BUSINESS MACHINES CORP	1.1 %

TOP COUNTRY EXPOSURE
	UNITED STATES	96.7 %
	IRELAND	1.1 %
	BRITAIN	0.7 %
	SWITZERLAND	0.3 %
	BERMUDA	0.1 %

HISTORICAL PERFORMANCE info

	Custom date range	Compare to
	thru

Standardized Annual Returns (thru January 31)
Year-to-date	1 year	5 years	10 years	Since Incep.
-1.3%	18.4%	--	--	13.7%

Market Correlations
versus...	Beta	R-squared
S&P500	0.87	92%
MSCI EAFE	0.75	57%
MSCI Emg. Mkts.	0.49	42%

Technical Indicators
Recent close	$34.77
30d moving avg.	$35.52
Annualized volatility	11.4%
Short interest (ETF)	0.0%
Relative strength (RSI)	56

Liquidity measures
Avg. volume (thou.)	181
Turnover	0.4%
Bid/Ask (% of price)	0.08%
ADV underlying (mns)	$70,573

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

FLQL

Expense:

15 bp

ALTAR Score™:

6.8%

ALTERNATIVE ETFs BASED ON OVERLAP WITH FLQL
Ticker	Fund Name	Overlap¹ vs FLQL (%)	Expense ratio (bp)	Savings vs FLQL (bp)	ALTAR Score™ (%)	ALTAR vs FLQL (%)
JQUA	JPMorgan U.S. Quality Factor ETF	53.4	12	3	5.8	-0.9
QARP	Xtrackers Russell 1000 US Quality at a Reasonable Price ETF	48.4	19	-4	6.6	-0.2
OQAL	Invesco Russell 1000 Quality Factor ETF	46.7	19	-4	6.0	-0.8
EQWL	Invesco Russell Top 200 Equal Weight ETF	45.2	25	-10	6.4	-0.3
QUS	SPDR MSCI USA StrategicFactors ETF	44.7	15	0	5.9	-0.9
MFUS	PIMCO RAFI Dynamic Multi-Factor U.S. Equity ETF	44.7	29	-14	6.4	-0.4
OUSA	O'Shares FTSE US Quality Dividend ETF	44.5	48	-33	6.1	-0.7
DLN	WisdomTree U.S. LargeCap Dividend Fund	44.1	28	-13	6.7	-0.1
USDY	Pacific Global US Equity Income ETF	43.7	29	-14	7.7	+0.9
FQAL	Fidelity Quality Factor ETF	43.5	29	-14	5.8	-1.0
DTD	WisdomTree U.S.Total Dividend Fund	43.4	28	-13	6.8	+0.0
OVOL	Invesco Russell 1000 Low Volatility Factor ETF	43.3	19	-4	6.6	-0.2
SPXN	ProShares S&P 500 Ex-Financials ETF	41.8	27	-12	5.7	-1.0
DYNF	BlackRock U.S. Equity Factor Rotation ETF	41.8	30	-15	6.6	-0.2
GSLC	Goldman Sachs ActiveBeta U.S. Large Cap Equity ETF	41.7	9	6	6.0	-0.8
VYM	Vanguard High Dividend Yield Index ETF	41.7	6	9	7.4	+0.6
DIVB	iShares U.S. Dividend & Buyback ETF	40.9	25	-10	6.9	+0.2
DGRO	iShares Core Dividend Growth ETF	40.8	8	7	6.6	-0.2
OYLD	Invesco Russell 1000 Yield Factor ETF	40.8	19	-4	7.4	+0.6
QRFT	Qraft Ai-Enhanced U.S. Large Cap ETF	40.8	75	-60	4.3	-2.5

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

	2015	2016	2017	2018	2019	2020E	2021E
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

	2019	2020E	2021E
Price-to-sales	**	**	**
Price-to-earnings	**	**	**
Price-to-cash flow	**	**	**
Price-to-growth	**	**	**
Price-to-book value	**	**	**
Yield	**	**	**

Historical valuation trends

Forward multiple:	Franklin LibertyQ U.S. Equity ETF
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	27.6	%
Divided by: Fwd. P/BV	4.0	x
Less: Expense ratio	15	bp
Equals: ALTAR Score	6.8	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.62	CATEGORY AVERAGE	1.56

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.