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Franklin LibertyQ U.S. Small Cap Equity ETF (FLQS)

Rating:70Neutral

Price Target:

$48.00

The Franklin LibertyQ U.S. Small Cap Equity ETF (FLQS) has a solid overall rating, reflecting a balanced mix of strong performers and some holdings with moderate risks. InterDigital (IDCC) stands out as a key contributor to the fund’s rating due to its robust profitability, strategic agreements, and positive growth outlook. Watts Water Technologies (WTS) also adds strength with its financial performance and strategic acquisitions, although challenges in European markets and tariffs present risks. On the weaker side, Jackson Financial (JXN) and Hims & Hers Health (HIMS) face valuation concerns and declining revenue or cash flow issues, which slightly weigh on the ETF’s overall rating. The fund’s diversification across holdings helps mitigate risks, but investors should note potential sector-specific vulnerabilities.

Positive Factors

Strong Top Holdings

Several of the ETF’s largest positions, such as InterDigital and Hims & Hers Health, have shown strong year-to-date performance, supporting overall returns.

Sector Diversification

The ETF spreads its investments across multiple sectors, including Technology, Industrials, and Consumer Cyclical, reducing reliance on any single industry.

Low Expense Ratio

With an expense ratio of 0.35%, the ETF is relatively affordable compared to many actively managed funds, helping investors keep more of their returns.

Negative Factors

High U.S. Concentration

The ETF is heavily focused on U.S. companies, with over 99% geographic exposure, limiting diversification across global markets.

Mixed Short-Term Performance

The ETF’s one-month performance has been negative, which may concern investors looking for consistent short-term gains.

Small Cap Volatility

As a small-cap-focused fund, the ETF may be more sensitive to market fluctuations and economic uncertainty compared to large-cap funds.

FLQS vs. SPDR S&P 500 ETF (SPY)

AUM70.60M

RegionNorth America

Expense Ratio0.35%

Beta0.90

IssuerFranklin

Inception DateApr 26, 2017

Dividend Yield1.17%

Asset ClassEquity

Index TrackedLibertyQ US Small Cap Equity

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume4,857

30 Day Avg. Volume12,873

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

50.26

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering485

FLQS Summary

The Franklin LibertyQ U.S. Small Cap Equity ETF (FLQS) is an investment fund that focuses on small-cap companies in the U.S., which are typically smaller businesses with high growth potential. It follows the LibertyQ US Small Cap Equity index and uses a strategy to pick stocks based on factors like quality, value, and momentum. Some of its holdings include companies like Rambus and InterDigital. Investors might consider FLQS for diversification and the chance to benefit from the growth of smaller, innovative companies. However, small-cap stocks can be more volatile, meaning their prices may rise and fall more sharply than larger companies.

How much will it cost me?The Franklin LibertyQ U.S. Small Cap Equity ETF (FLQS) has an expense ratio of 0.35%, which means you’ll pay $3.50 per year for every $1,000 invested. This cost is slightly higher than average for ETFs because it uses a smart beta approach, actively selecting stocks based on factors like quality, value, and momentum rather than simply tracking an index.

What would affect this ETF?The Franklin LibertyQ U.S. Small Cap Equity ETF (FLQS) could benefit from economic growth and innovation in the U.S., particularly in sectors like technology and consumer cyclical, which are heavily represented in its holdings. However, rising interest rates or economic slowdowns may negatively impact small-cap stocks, as these companies often rely on borrowing and are more sensitive to market volatility. Additionally, sector-specific challenges, such as regulatory changes in healthcare or financials, could pose risks to the ETF's performance.

FLQS Top 10 Holdings

The Franklin LibertyQ U.S. Small Cap Equity ETF (FLQS) is leaning heavily into the growth potential of U.S. small-cap stocks, with a notable focus on technology and industrials. Rambus and InterDigital are rising stars, benefiting from strong financial performance and strategic moves in AI and global partnerships, respectively. Meanwhile, Hims & Hers Health is dragging the fund with bearish momentum despite its ambitious growth initiatives. CareTrust REIT and Varonis Systems are steady contributors, showcasing solid fundamentals and strategic positioning. Overall, the fund’s concentration in dynamic sectors like tech and consumer cyclical reflects its pursuit of innovation-driven growth.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
RMBS	Rambus	1.56%	$1.10M	$11.16B	103.37%	78 Outperform
IDCC	InterDigital	1.46%	$1.03M	$9.61B	148.93%	79 Outperform
WTS	Watts Water Technologies	1.06%	$740.49K	$9.19B	39.30%	76 Outperform
JXN	Jackson Financial Incorporation	1.03%	$723.79K	$6.88B	-3.14%	63 Neutral
ESNT	Essent Group	0.97%	$680.35K	$5.90B	-1.66%	75 Outperform
LRN	Stride	0.95%	$668.16K	$6.70B	68.58%	75 Outperform
CTRE	CareTrust REIT	0.92%	$645.18K	$7.88B	10.62%	79 Outperform
VRNS	Varonis Systems	0.88%	$618.91K	$7.06B	7.18%	70 Neutral
IBP	Installed Building Products	0.87%	$612.30K	$7.36B	25.09%	74 Outperform
ESE	Esco Technologies	0.85%	$595.53K	$5.72B	71.90%	76 Outperform

FLQS Technical Analysis

Technical Analysis Sentiment

Negative

Last Price―

Price Trends

50DMA

43.68

Negative

100DMA

42.48

Positive

200DMA

41.24

Positive

Market Momentum

MACD

<0.01

Negative

RSI

41.73

Neutral

STOCH

41.88

Neutral

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For FLQS, the sentiment is Negative. The current price of undefined is equal to the 20-day moving average (MA) of 43.40, equal to the 50-day MA of 43.68, and equal to the 200-day MA of 41.24, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 41.73 is Neutral, neither overbought nor oversold. The STOCH value of 41.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FLQS.

FLQS Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
FLQS	―	―	$70.60M	0.35%	70 Neutral
ITWO	―	―	$80.65M	0.55%	60 Neutral
STXK	―	―	$66.13M	0.18%	65 Neutral
OASC	―	―	$59.80M	0.64%	66 Neutral
BKSE	―	―	$59.64M	0.04%	66 Neutral
FSCC	―	―	$55.25M	0.36%	64 Neutral

Performance Comparison

FLQS

Franklin LibertyQ U.S. Small Cap Equity ETF

42.75

1.44

3.49%

ITWO

ProShares Russell 2000 High Income ETF

―

STXK

Strive 2000 ETF

―

OASC

OneAscent Small Cap Core ETF

―

BKSE

BNY Mellon US Small Cap Core Equity ETF

―

FSCC

Federated Hermes MDT Small Cap Core ETF

―

Glossary

BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―

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