ETF Research Center

The Franklin LibertyQ U.S. Small-Cap Equity ETF tracks a multi-factor US small-cap index based on a composite scores of quality, value, momentum, and low-volatility.

FUND BASICS
Category	US Equities
Fund Sponsor	Franklin ETF Trust
Website	www.libertyshares.com
Inception date	Apr 26, 2017
Assets (mns)	$23
Currency	USD
Expense ratio	35 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	488
Wgt avg mkt cap (mns)	$2,520
Large cap (>$10bn)	0.0%
Mid cap ($2-10bn)	59.0%
Small cap (<$2bn)	41.0%
Developed mkts	99.9%
Emerging mkts	0.1%

TOP TEN HOLDINGS
Total	9.2 %
ESSENT GROUP LTD	1.1 %
DECKERS OUTDOOR CORP	1.0 %
AMEDISYS INC	1.0 %
HAEMONETICS CORP/MASS	0.9 %
TEXAS ROADHOUSE INC	0.9 %
J2 GLOBAL COMMUNICATIONS INC	0.9 %
PERFORMANCE FOOD GROUP COMPANY	0.9 %
MSA SAFETY INC	0.9 %
TREX COMPANY INC	0.9 %
GLOBUS MEDICAL INC - A	0.8 %

TOP COUNTRY EXPOSURE
	UNITED STATES	96.6 %
	BERMUDA	2.1 %
	IRELAND	0.6 %
	PUERTO RICO	0.5 %
	PANAMA	0.1 %

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.
14.2%	3.7%	--	--	5.9%

Market Correlations
versus...	Beta	R-squared
S&P500	0.90	73%
MSCI EAFE	0.78	45%
MSCI Emg. Mkts.	0.49	28%

Technical Indicators
Recent close	$28.32
30d moving avg.	$28.36
Annualized volatility	13.7%
Short interest (ETF)	0.0%
Relative strength (RSI)	68

Liquidity measures
Avg. volume (thou.)	2
Turnover	0.3%
Bid/Ask (% of price)	0.16%
ADV underlying (mns)	$6,215

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

FLQS

Expense:

35 bp

ALTAR Score™:

6.3%

ALTERNATIVE ETFs BASED ON OVERLAP WITH FLQS
Ticker	Fund Name	Overlap¹ vs FLQS (%)	Expense ratio (bp)	Savings vs FLQS (bp)	ALTAR Score™ (%)	ALTAR vs FLQS (%)
JPSE	JPMorgan Diversified Return U.S. Small Cap Equity	37.3	29	6	5.1	-1.3
IJR	iShares Core S&P Small-Cap	35.6	7	28	6.2	-0.1
SLY	SPDR S&P 600 Small Cap	35.6	15	20	6.2	-0.1
DES	WisdomTree Smallcap Dividend	35.1	38	-3	7.4	+1.1
VIOO	Vanguard S&P Small-Cap 600	35.0	15	20	6.0	-0.3
GSSC	Goldman Sachs Activebeta U.S. Small Cap Equity	34.8	20	15	5.9	-0.4
SMLF	iShares FactorSelect MSCI USA Small-Cap	34.2	30	5	6.4	+0.1
IWO	iShares Russell 2000 Growth	34.1	24	11	0.9	-5.4
VTWG	Vanguard Russell 2000 Growth	32.9	20	15	0.9	-5.4
IWM	iShares Russell 2000	30.0	19	16	3.8	-2.5
IJT	iShares S&P 600 SmallCap Growth	29.8	25	10	4.6	-1.7
SLYG	SPDR S&P600 Small Cap Growth	29.8	15	20	4.8	-1.6
VIOG	Vanguard S&P Small-Cap 600 Growth	29.7	20	15	4.6	-1.7
CSF	Compass EMP US Discovery 500 Enhanced Vol.	29.1	35	0	7.4	+1.0
CSA	Victory CEMP US Small Cap Volatility Wtd	29.1	35	0	7.3	+1.0
VTWO	Vanguard Russell 2000	28.9	15	20	3.8	-2.5
PSC	Principal U.S. Small Cap Index	28.8	38	-3	6.4	+0.0
EWSC	Invesco S&P Small Cap 600 Equal Weight	28.8	40	-5	5.8	-0.5
ISMD	Inspire Small/Mid Cap Impact	28.5	61	-26	4.8	-1.5
RNSC	Small Cap US Equity Select	28.5	60	-25	6.3	0.0

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 LibertyQ U.S. Small Cap Equity
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	13.5	%
Divided by: Fwd. P/BV	2.0	x
Less: Expense ratio	35	bp
Equals: ALTAR Score	6.3	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.66	CATEGORY AVERAGE	1.55

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.