Franklin FTSE Hong Kong ETF (FLHK)

Overview

The company is focused on providing investment opportunities in the Hong Kong market by primarily investing in large- and mid-capitalization stocks that are part of the FTSE Hong Kong Capped Index. This investment fund aims to replicate the performance of the aforementioned index, which is a subset of the FTSE Hong Kong Index designed specifically to reflect the investment results of Hong Kong's largest and mid-sized companies. The fund operates under the principle of investing at least 80% of its assets in the securities that make up the index, as well as in depositary receipts representing such securities. Being non-diversified, the fund commits a larger portion of its assets to securities of fewer issuers, making it a potentially higher risk but also possibly higher reward investment compared to more diversified funds.

Products and Services

• FTSE Hong Kong Capped Index Investment

This service involves the fund investing at least 80% of its assets in the components of the FTSE Hong Kong Capped Index as well as in depositary receipts that represent these securities. This approach allows investors to gain exposure to the performance of Hong Kong’s large- and mid-capitalization stocks through a single investment product.

• Non-Diversified Fund Investing

The fund offers an investment strategy that does not spread its investments across many securities and instead focuses on a smaller number of securities. This non-diversified approach can lead to higher volatility and risk; however, it also offers the potential for higher returns by concentrating investment in fewer issuers believed to have favorable prospects.