The Franklin FTSE Australia ETF (FLAU) offers investors targeted exposure to the Australian equity market through the FTSE Australia RIC Capped Index. With an expense ratio of 0.09%, FLAU provides a cost-effective way to access a diversified portfolio of Australian stocks. The fund has $0.08 billion in assets under management and aims to closely replicate the performance of its benchmark index, making it a straightforward choice for investors seeking exposure to the Australian economy. Past performance does not guarantee future results.
Franklin FTSE Australia ETF (FLAU) ETF — Price, Holdings & Analysis
The Franklin FTSE Australia ETF (FLAU) offers investors targeted exposure to the Australian equity market through the FTSE Australia RIC Capped Index. With an expense ratio of 0.09%, FLAU provides a cost-effective way to access a diversified portfolio of Australian stocks. The fund has $0.08 billion in assets under management and aims to closely replicate the performance of its benchmark index, making it a straightforward choice for investors seeking exposure to the Australian economy. Past performance does not guarantee future results.
ETF Overview
Seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the FTSE Australia RIC Capped Index (the FTSE Australia Capped Index).
FLAU seeks to replicate the performance of the FTSE Australia RIC Capped Index, providing investors with exposure to the Australian equity market. The ETF's holdings are heavily weighted towards Financial Services, which constitutes 38.8% of the portfolio, followed by Basic Materials at 24.3%. This concentration reflects the composition of the Australian stock market. Top holdings include Commonwealth Bank of Australia (12.09%), BHP Group Ltd (11.86%), and National Australia Bank Ltd (6.21%). FLAU's investment strategy is passive, aiming to mirror the index rather than actively selecting stocks. This approach results in a lower expense ratio compared to actively managed funds. The fund's country exposure is primarily to Australia (97.8%), with smaller allocations to New Zealand, Ireland, and the United States. FLAU is suitable for investors seeking broad exposure to the Australian market with a focus on large-cap companies. Past performance does not guarantee future results.
Risk Metrics
FLAU's risk profile is influenced by its concentration in the Financial Services and Basic Materials sectors, which together account for over 63% of the portfolio. This sector concentration could lead to increased volatility if these sectors underperform. The ETF's beta of 1.23 indicates that it is more volatile than the overall market. The fund's expense ratio of 0.09% is relatively low, which helps to minimize the impact of expenses on returns. However, the fund's relatively small AUM of $0.08 billion could pose liquidity risks. Investors should also consider the currency risk associated with investing in Australian equities, as fluctuations in the Australian dollar can impact returns. Past performance does not guarantee future results.
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Risk Metrics
Beta: 1.23
Questions & Answers
What is FLAU and what does it track?
FLAU, or the Franklin FTSE Australia ETF, is an exchange-traded fund designed to track the performance of the FTSE Australia RIC Capped Index. This index represents the Australian equity market, providing investors with exposure to a broad range of Australian companies. The ETF aims to replicate the index's performance by holding a portfolio of stocks that mirrors the index's composition. As of today, March 15, 2026, FLAU has an AUM of $0.08 billion and holds 110 stocks, offering a diversified approach to investing in the Australian market. Past performance does not guarantee future results.
What is the expense ratio for FLAU?
The expense ratio for FLAU is 0.09%. This means that for every $10,000 invested in the fund, $9 is used to cover the fund's operating expenses. This is relatively low compared to the average expense ratio for equity ETFs, which is approximately 0.44%. The lower expense ratio can make FLAU an attractive option for investors looking to minimize costs while gaining exposure to the Australian equity market. Past performance does not guarantee future results.
What are the top holdings in FLAU?
As of March 15, 2026, the top holdings in FLAU are Commonwealth Bank of Australia (12.09%), BHP Group Ltd (11.86%), and National Australia Bank Ltd (6.21%). These top three holdings represent a significant portion of the fund's assets, reflecting the concentration of the Australian stock market in these large-cap companies. Other notable holdings include Westpac Banking Corp (6.03%) and ANZ Group Holdings Ltd (4.93%). These financial institutions and resource companies play a crucial role in the Australian economy and contribute significantly to FLAU's overall performance. Past performance does not guarantee future results.
Is FLAU a good long-term investment?
Whether FLAU is a suitable long-term investment depends on an individual's investment goals and risk tolerance. FLAU provides exposure to the Australian equity market, which can offer diversification benefits to a global portfolio. The fund's low expense ratio of 0.09% can help minimize costs over the long term. However, the may be worth researching fund's concentration in the Financial Services and Basic Materials sectors, as well as its beta of 1.23, which indicates higher volatility compared to the overall market. Past performance does not guarantee future results.
How does FLAU compare to similar ETFs?
FLAU competes with other ETFs that provide exposure to the Australian equity market. Key factors to consider when comparing FLAU to similar ETFs include the expense ratio, AUM, and tracking methodology. FLAU's expense ratio of 0.09% is competitive. The fund's strategy of tracking the FTSE Australia RIC Capped Index may differ from other ETFs that track different indices or use different weighting methodologies. Investors should compare the historical performance and risk characteristics of different ETFs before making an investment decision. Past performance does not guarantee future results.
Does FLAU pay dividends?
While FLAU's investment objective is to track the performance of the FTSE Australia RIC Capped Index, its current dividend yield is 0.00% as of March 15, 2026. Investors seeking dividend income should carefully evaluate FLAU's dividend distribution history and compare it to other ETFs that focus on dividend-paying stocks. It is important to note that dividend yields can fluctuate over time and are not guaranteed. Past performance does not guarantee future results.