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Is Franklin U.S. Equity Index ETF (USPX) a Strong ETF Right Now?
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Making its debut on 06/01/2016, smart beta exchange traded fund Franklin U.S. Equity Index ETF (USPX - Free Report) provides investors broad exposure to the Style Box - All Cap Blend category of the market.
What Are Smart Beta ETFs?
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
The fund is managed by Franklin Templeton Investments. USPX has been able to amass assets over $1.65 billion, making it one of the larger ETFs in the Style Box - All Cap Blend. Before fees and expenses, USPX seeks to match the performance of the MORNINGSTAR US TARGET MARKET EXPOSURE ID.
The Morningstar US Target Market Exposure Index targets large and mid-capitalization U.S. stocks representing the top 85% of the U.S. equity market by float-adjusted market capitalization.
Cost & Other Expenses
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.
With one of the least expensive products in the space, this ETF has annual operating expenses of 0.03%.
The fund has a 12-month trailing dividend yield of 1.06%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
USPX's heaviest allocation is in the Information Technology sector, which is about 35.4% of the portfolio. Its Financials and Consumer Discretionary round out the top three.
When you look at individual holdings, Nvidia Corp (NVDA) accounts for about 7.64% of the fund's total assets, followed by Microsoft Corp (MSFT) and Apple Inc (AAPL).
USPX's top 10 holdings account for about 38.22% of its total assets under management.
Performance and Risk
The ETF return is roughly 17.7% so far this year and it's up approximately 15.44% in the last one year (as of 11/12/2025). In the past 52-week period, it has traded between $43.36 and $60.40
The fund has a beta of 0.92 and standard deviation of 15.45% for the trailing three-year period. With about 538 holdings, it effectively diversifies company-specific risk .
Alternatives
Franklin U.S. Equity Index ETF is a reasonable option for investors seeking to outperform the Style Box - All Cap Blend segment of the market. However, there are other ETFs in the space which investors could consider.
iShares Core S&P Total U.S. Stock Market ETF (ITOT) tracks S&P Total Market Index and the Vanguard Total Stock Market ETF (VTI) tracks CRSP US Total Market Index. iShares Core S&P Total U.S. Stock Market ETF has $79.65 billion in assets, Vanguard Total Stock Market ETF has $563.83 billion. ITOT has an expense ratio of 0.03% and VTI changes 0.03%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - All Cap Blend
Bottom Line
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.
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Is Franklin U.S. Equity Index ETF (USPX) a Strong ETF Right Now?
Making its debut on 06/01/2016, smart beta exchange traded fund Franklin U.S. Equity Index ETF (USPX - Free Report) provides investors broad exposure to the Style Box - All Cap Blend category of the market.
What Are Smart Beta ETFs?
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
The fund is managed by Franklin Templeton Investments. USPX has been able to amass assets over $1.65 billion, making it one of the larger ETFs in the Style Box - All Cap Blend. Before fees and expenses, USPX seeks to match the performance of the MORNINGSTAR US TARGET MARKET EXPOSURE ID.
The Morningstar US Target Market Exposure Index targets large and mid-capitalization U.S. stocks representing the top 85% of the U.S. equity market by float-adjusted market capitalization.
Cost & Other Expenses
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.
With one of the least expensive products in the space, this ETF has annual operating expenses of 0.03%.
The fund has a 12-month trailing dividend yield of 1.06%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
USPX's heaviest allocation is in the Information Technology sector, which is about 35.4% of the portfolio. Its Financials and Consumer Discretionary round out the top three.
When you look at individual holdings, Nvidia Corp (NVDA) accounts for about 7.64% of the fund's total assets, followed by Microsoft Corp (MSFT) and Apple Inc (AAPL).
USPX's top 10 holdings account for about 38.22% of its total assets under management.
Performance and Risk
The ETF return is roughly 17.7% so far this year and it's up approximately 15.44% in the last one year (as of 11/12/2025). In the past 52-week period, it has traded between $43.36 and $60.40
The fund has a beta of 0.92 and standard deviation of 15.45% for the trailing three-year period. With about 538 holdings, it effectively diversifies company-specific risk .
Alternatives
Franklin U.S. Equity Index ETF is a reasonable option for investors seeking to outperform the Style Box - All Cap Blend segment of the market. However, there are other ETFs in the space which investors could consider.
iShares Core S&P Total U.S. Stock Market ETF (ITOT) tracks S&P Total Market Index and the Vanguard Total Stock Market ETF (VTI) tracks CRSP US Total Market Index. iShares Core S&P Total U.S. Stock Market ETF has $79.65 billion in assets, Vanguard Total Stock Market ETF has $563.83 billion. ITOT has an expense ratio of 0.03% and VTI changes 0.03%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - All Cap Blend
Bottom Line
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.