Designed to provide broad exposure to the Large Cap Blend segment of the US equity market, the Franklin U.S. Large Cap Multifactor Index ETF (FLQL Quick QuoteFLQL - Free Report) is a passively managed exchange traded fund launched on 04/26/2017.

The fund is sponsored by Franklin Templeton Investments. It has amassed assets over $1.56 billion, making it one of the larger ETFs attempting to match the Large Cap Blend segment of the US equity market.

Why Large Cap Blend

Companies that find themselves in the large cap category typically have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.

Typically holding a combination of both growth and value stocks, blend ETFs also demonstrate qualities seen in value and growth investments.

Costs

Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.

Annual operating expenses for this ETF are 0.15%, making it one of the cheaper products in the space.

It has a 12-month trailing dividend yield of 1.16%.

Sector Exposure and Top Holdings

Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.

This ETF has heaviest allocation to the Information Technology sector--about 34.40% of the portfolio. Healthcare and Telecom round out the top three.

Looking at individual holdings, Nvidia Corp (NVDA Quick QuoteNVDA - Free Report) accounts for about 6.42% of total assets, followed by Microsoft Corp (MSFT Quick QuoteMSFT - Free Report) and Apple Inc (AAPL Quick QuoteAAPL - Free Report) .

The top 10 holdings account for about 34.29% of total assets under management.

Performance and Risk

FLQL seeks to match the performance of the LibertyQ US Large Cap Equity Index before fees and expenses. The LibertyQ US Large Cap Equity Index seeks to achieve a lower level of risk and higher risk-adjusted performance than the Russell 1000 Index over the long term by applying a multi-factor selection process, which is designed to select equity securities from the Russell 1000 Index that have favorable exposure to four investment style factors quality, value, momentum and low volatility.

The ETF has added roughly 10.89% so far this year and is up about 18.52% in the last one year (as of 07/29/2025). In the past 52-week period, it has traded between $50.10 and $64.69.

The ETF has a beta of 0.94 and standard deviation of 16.25% for the trailing three-year period. With about 217 holdings, it effectively diversifies company-specific risk.

Alternatives

Franklin U.S. Large Cap Multifactor Index ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, FLQL is a great option for investors seeking exposure to the Style Box - Large Cap Blend segment of the market. There are other additional ETFs in the space that investors could consider as well.

The SPDR S&P 500 ETF (SPY Quick QuoteSPY - Free Report) and the Vanguard S&P 500 ETF (VOO Quick QuoteVOO - Free Report) track a similar index. While SPDR S&P 500 ETF has $651.02 billion in assets, Vanguard S&P 500 ETF has $702.71 billion. SPY has an expense ratio of 0.09% and VOO charges 0.03%.

Bottom-Line

Passively 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.