Franklin FTSE Taiwan UCITS ETF

Issuer: Franklin Templeton

Asset Class: Equity

TER: 19bps

Trading Currency: USD

Pays Income: False

Listing Date: 23 Mar 2022

Ticker: FLXT

ISIN: IE000CM02H85

This investment offers targeted exposure to the Taiwanese equity market, a cornerstone of the global technology supply chain. Taiwan's economy is highly developed and export-oriented, with a particular dominance in the manufacturing of essential electronic components, most notably semiconductors. The island is home to the world's leading semiconductor foundries, which are critical for countless industries ranging from consumer electronics and automotive to artificial intelligence and high-performance computing. An allocation to this market provides a direct way to participate in the growth of these globally significant and innovative technology leaders. The economy is further supported by a skilled workforce and a strong focus on research and development, solidifying its position at the forefront of technological advancement.

The underlying portfolio comprises a selection of the largest and most liquid companies listed in Taiwan, offering a comprehensive snapshot of its corporate landscape. The investment vehicle is designed to closely track a specific market index, ensuring that its performance is representative of the broader Taiwanese market. The index it follows employs a capping mechanism, which limits the weight of any single company. This methodology enhances diversification within the portfolio, mitigating the risk associated with over-concentration in one dominant name, which can be a common feature in single-country emerging market indices. This structure provides a balanced representation of the country's key sectors, primarily technology and financials.

For investors, this provides an efficient and low-cost tool to gain precise exposure to a key Asian economy. It can serve as a strategic satellite holding to complement a core global or emerging markets portfolio, allowing for a tactical tilt towards the high-growth technology and semiconductor theme. By investing in this fund, one gains access to a dynamic market that is integral to many long-term secular growth trends. The physically replicated structure ensures direct ownership of the underlying shares, offering transparency and simplicity for those looking to invest in the future of Taiwan's influential economy.