Franklin FTSE Taiwan ETF (FLTW) is a concentrated play on semiconductors and AI infrastructure, with 21.7% in TSMC and over 70% in tech. FLTW's performance and risk profile are tightly linked to TSMC's earnings, semiconductor industry cycles, and high capital expenditure requirements. At a forward P/E of 21.8x, strong growth is already priced in; further upside requires continued robust demand and positive earnings surprises.
Franklin FTSE Taiwan ETF (NYSEARCA:FLTW - Get Free Report) saw a significant growth in short interest during the month of February. As of February 27th, there was short interest totaling 314,786 shares, a growth of 83.4% from the February 12th total of 171,599 shares. Currently, 2.9% of the shares of the company are sold short.
The Franklin FTSE Taiwan ETF is one of two ETFs that offer pure-play coverage to Taiwanese stocks, with giant-caps accounting for the majority of the portfolio. FLTW has some structural flaws, but in the areas where it matters (cost efficiency, performance track record), it shines over its larger peer, EWT. Taiwanese exports are currently growing at a record pace of over 50%, with tech exports fuelling this momentum (FLTW has 70% exposure to tech stocks).
| Name | Quantity | Cost | Value | Profit ($) | Gain (%) |
|---|---|---|---|---|---|
| JD Jim Dushek HARBOUR INVESTMENTS Inc. | 2,618 | $116,741.29 | $255,870.23 | $139,128.94 | 119.18% |
Christopher C. Powers Farther Finance Advisors, LLC | 503 | $33,664.23 | $47,141.16 | $13,476.93 | 40.03% |
Curtis Burkholder Bare Financial Services, Inc | 91 | $4,749.34 | $8,770.58 | $4,021.24 | 84.67% |
Focus Financial Network Inc. Focus Financial Network, Inc. | 2,645 | $279,614 | $254,634.15 | -$24,979.85 | -8.93% |
AMY TEH Arrowpoint Investment Partners (Singapore) Pte. Ltd. | 3,700 | $252,007 | $355,995.5 | $103,988.5 | 41.26% |
| ARCA Exchange | US Country |
The described fund is an investment vehicle that specializes in allocating its assets primarily in Taiwanese securities. It is constructed to follow the performance metrics of the FTSE Taiwan Capped Index, focusing on investing in large- and mid-capitalization stocks within Taiwan. This Index is a variation of the broader FTSE Taiwan Index, specifically designed to provide a comprehensive measurement of the Taiwanese stock market, albeit with certain cap limitations to ensure a balanced representation. This fund characterizes itself as non-diversified, meaning it invests a significant portion of its assets in a smaller number of securities, which could lead to higher volatility and risk/reward potential for investors. By investing at least 80% of its assets in the index's component securities and depositary receipts that represent such securities, the fund aims to closely replicate the performance of the FTSE Taiwan Capped Index under normal market conditions.
The core product of the fund is the investment service it offers, centered around the FTSE Taiwan Capped Index. This service is designed for investors looking to gain exposure to Taiwanese large- and mid-cap stocks through a financial product that aims to mirror the performance of the mentioned index. By investing in the component securities of the index and in depositary receipts representing such securities, the fund provides an accessible avenue for both individual and institutional investors to participate in the Taiwanese market.
The fund's non-diversified nature represents a specific investment strategy choice, offering potential investors a product with a concentration in a limited number of positions. This approach might appeal to those who are looking to invest in a focused manner within the Taiwanese stock market, understanding that such a strategy can come with higher volatility and potential for significant returns relative to more diversified options. This service is particularly aimed at investors who are comfortable with assuming a higher level of risk and who have a specific interest in the economic performance of Taiwan.