Should Franklin U.S. Mid Cap Multifactor Index ETF (FLQM) Be on Your Investing Radar?

Looking for broad exposure to the Mid Cap Blend segment of the US equity market? You should consider the Franklin U.S. Mid Cap Multifactor Index ETF (FLQM), a passively managed exchange traded fund launched on 04/26/2017.The fund is sponsored by Franklin Templeton Investments. It has amassed assets over $1.13 billion, making it one of the average sized ETFs attempting to match the Mid Cap Blend segment of the US equity market.Why Mid Cap BlendMid cap companies have market capitalization between $2 billion and $10 billion. They usually have higher growth prospects than large cap companies and are less volatile than small cap companies. Thus, companies that fall under this category provide a stable and growth-heavy investment.Typically holding a combination of both growth and value stocks, blend ETFs also demonstrate qualities seen in value and growth investments.CostsSince cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.Annual operating expenses for this ETF are 0.30%, putting it on par with most peer products in the space.It has a 12-month trailing dividend yield of 1.23%.Sector Exposure and Top HoldingsIt is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.This ETF has heaviest allocation to the Industrials sector--about 24.10% of the portfolio. Consumer Discretionary and Information Technology round out the top three.Looking at individual holdings, Fair Isaac Corp (FICO) accounts for about 1.39% of total assets, followed by Dr Horton Inc (DHI) and Pultegroup Inc (PHM).The top 10 holdings account for about 11.3% of total assets under management.Performance and RiskFLQM seeks to match the performance of the LibertyQ U.S. Mid Cap Equity Index before fees and expenses. The LibertyQ U.S. Mid Cap Equity Index includes U.S. mid-capitalization companies that have favorable exposure to four investment style factors - quality, value, momentum and low volatility.The ETF return is roughly 19.65% so far this year and is up about 34.69% in the last one year (as of 11/07/2024). In the past 52-week period, it has traded between $42.43 and $57.13.The ETF has a beta of 1.02 and standard deviation of 17.20% for the trailing three-year period. With about 207 holdings, it effectively diversifies company-specific risk.AlternativesFranklin U.S. Mid Cap Multifactor Index ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, FLQM is a good option for those seeking exposure to the Style Box - Mid Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.The Vanguard Mid-Cap ETF (VO) and the iShares Core S&P Mid-Cap ETF (IJH) track a similar index. While Vanguard Mid-Cap ETF has $73.30 billion in assets, iShares Core S&P Mid-Cap ETF has $97.07 billion. VO has an expense ratio of 0.04% and IJH charges 0.05%.Bottom-LinePassively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.Want key ETF info delivered straight to your inbox?Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.Get it free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Franklin U.S. Mid Cap Multifactor Index ETF (FLQM): ETF Research Reports PulteGroup, Inc. (PHM): Free Stock Analysis Report D.R. Horton, Inc. (DHI): Free Stock Analysis Report Fair Isaac Corporation (FICO): Free Stock Analysis Report iShares Core S&P Mid-Cap ETF (IJH): ETF Research Reports Vanguard Mid-Cap ETF (VO): ETF Research ReportsTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks