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Is Franklin U.S. Mid Cap Multifactor Index ETF (FLQM) a Strong ETF Right Now?
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The Franklin U.S. Mid Cap Multifactor Index ETF (FLQM - Free Report) was launched on 04/26/2017, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - Mid Cap Blend category of the market.
What Are Smart Beta ETFs?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
Managed by Franklin Templeton Investments, FLQM has amassed assets over $1.78 billion, making it one of the average sized ETFs in the Style Box - Mid Cap Blend. FLQM 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.
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.
Operating expenses on an annual basis are 0.30% for this ETF, which makes it on par with most peer products in the space.
It's 12-month trailing dividend yield comes in at 1.35%.
Sector Exposure and Top Holdings
ETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
Representing 19.9% of the portfolio, the fund has heaviest allocation to the Industrials sector; Consumer Discretionary and Healthcare round out the top three.
Taking into account individual holdings, Cummins Inc (CMI) accounts for about 1.44% of the fund's total assets, followed by Electronic Arts Inc (EA) and Idexx Laboratories Inc (IDXX).
FLQM's top 10 holdings account for about 12.66% of its total assets under management.
Performance and Risk
So far this year, FLQM has gained about 5.05%, and is down about -2.1% in the last one year (as of 11/28/2025). During this past 52-week period, the fund has traded between $46.92 and $58.63.
FLQM has a beta of 0.98 and standard deviation of 15.06% for the trailing three-year period. With about 207 holdings, it effectively diversifies company-specific risk .
Alternatives
Franklin U.S. Mid Cap Multifactor Index ETF is a reasonable option for investors seeking to outperform the Style Box - Mid Cap Blend segment of the market. However, there are other ETFs in the space which investors could consider.
Vanguard Mid-Cap ETF (VO) tracks CRSP US Mid Cap Index and the iShares Core S&P Mid-Cap ETF (IJH) tracks S&P MidCap 400 Index. Vanguard Mid-Cap ETF has $89.06 billion in assets, iShares Core S&P Mid-Cap ETF has $101.32 billion. VO has an expense ratio of 0.04% and IJH changes 0.05%.
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 - Mid 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. Mid Cap Multifactor Index ETF (FLQM) a Strong ETF Right Now?
The Franklin U.S. Mid Cap Multifactor Index ETF (FLQM - Free Report) was launched on 04/26/2017, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - Mid Cap Blend category of the market.
What Are Smart Beta ETFs?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
Managed by Franklin Templeton Investments, FLQM has amassed assets over $1.78 billion, making it one of the average sized ETFs in the Style Box - Mid Cap Blend. FLQM 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.
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.
Operating expenses on an annual basis are 0.30% for this ETF, which makes it on par with most peer products in the space.
It's 12-month trailing dividend yield comes in at 1.35%.
Sector Exposure and Top Holdings
ETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
Representing 19.9% of the portfolio, the fund has heaviest allocation to the Industrials sector; Consumer Discretionary and Healthcare round out the top three.
Taking into account individual holdings, Cummins Inc (CMI) accounts for about 1.44% of the fund's total assets, followed by Electronic Arts Inc (EA) and Idexx Laboratories Inc (IDXX).
FLQM's top 10 holdings account for about 12.66% of its total assets under management.
Performance and Risk
So far this year, FLQM has gained about 5.05%, and is down about -2.1% in the last one year (as of 11/28/2025). During this past 52-week period, the fund has traded between $46.92 and $58.63.
FLQM has a beta of 0.98 and standard deviation of 15.06% for the trailing three-year period. With about 207 holdings, it effectively diversifies company-specific risk .
Alternatives
Franklin U.S. Mid Cap Multifactor Index ETF is a reasonable option for investors seeking to outperform the Style Box - Mid Cap Blend segment of the market. However, there are other ETFs in the space which investors could consider.
Vanguard Mid-Cap ETF (VO) tracks CRSP US Mid Cap Index and the iShares Core S&P Mid-Cap ETF (IJH) tracks S&P MidCap 400 Index. Vanguard Mid-Cap ETF has $89.06 billion in assets, iShares Core S&P Mid-Cap ETF has $101.32 billion. VO has an expense ratio of 0.04% and IJH changes 0.05%.
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 - Mid 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.