Franklin FTSE South Korea ETF

Franklin FTSE South Korea ETF (FLKR) is a single-country exchange-traded fund launched by Franklin Templeton in 2017, offering a lower-cost alternative for investors seeking exposure to large- and mid-capitalisation South Korean companies. It is part of Franklin's broader suite of low-cost, FTSE-tracking single-country ETFs.

What does Franklin FTSE South Korea ETF track?

FLKR tracks the FTSE South Korea RIC Capped Index, which is based on the broader FTSE South Korea Index and uses a free-float-adjusted market-capitalisation-weighted methodology with a capping rule applied quarterly so that no single issuer exceeds 25% of the index weight, and issuers above 5% do not cumulatively exceed 50%. The fund invests at least 80% of its assets in the index's component securities and depositary receipts representing those securities.

What does Franklin FTSE South Korea ETF hold?

Holdings are concentrated in technology hardware and semiconductor manufacturing, reflecting South Korea's prominent role in global memory-chip production, alongside meaningful allocations to industrials, automotive manufacturing, and financial services companies. The capped index methodology helps moderate the concentration that would otherwise arise from a small number of dominant South Korean conglomerates, giving the fund somewhat more balanced sector exposure than an uncapped market-cap-weighted alternative.

Franklin FTSE South Korea ETF Investment strategy

FLKR generally follows a passive, representative-sampling approach, where the investment manager selects securities that collectively resemble the FTSE South Korea Capped Index in terms of risk factors, performance attributes, market capitalisation, and industry weightings, rather than necessarily holding every single index constituent. The fund may also use equity futures, total-return swaps, and currency forwards to better track the index, equitise cash, or facilitate efficient local-market settlement, while aiming to keep costs below comparable single-country South Korea ETFs from other issuers.