Franklin U.S. Small Cap Multifactor Index ETF (FLQS)

Overview

The fund described operates as an investment vehicle, primarily focusing on securities that are part of the Russell 2000® Index. It adheres to a specific investment strategy developed in collaboration with Franklin Templeton. By dedicating at least 80% of its assets to the component securities of the designated underlying index, the fund seeks to mirror or capitalize on the performance of these securities. The approach signifies a targeted investment in a diversified portfolio of small-cap U.S. companies, reflecting Franklin Templeton's investment philosophy and objectives within the constraints of the Russell 2000® Index framework. This strategy aims to provide investors with exposure to a broad range of sectors and industries in the small-cap arena, offering potential for growth and income.

Products and Services

• Component Securities Investment

This service involves the fund investing a minimum of 80% of its assets directly into the securities that constitute the underlying index, the Russell 2000®. The selection of these securities is based on a methodology developed jointly by the fund and Franklin Templeton. This disciplined approach ensures that the investments are closely aligned with the fund's desired investment strategy, focusing on small-cap U.S. companies that meet their criteria.

• Russell 2000® Index-focused Strategy

The investment strategy is tailored to reflect the performance and composition of the Russell 2000® Index, utilizing a proprietary methodology developed with Franklin Templeton. By targeting the component securities of this index, the fund aims to benefit from the growth and value opportunities presented by small-cap companies within the U.S. market. This strategy is designed to achieve a balance between risk and return, capitalizing on the potential high rewards associated with investing in small-cap stocks, while also considering the inherent risks.