Looking to diversify from a tumultuous, volatile domestic U.S. equity market? Many investors are likely looking at their options to do so. Foreign and international equity ETFs include a wide variety of options, but some, of course, stand out. Franklin Templeton offers a variety of single-country and regional ETFs that target particular countries or regional markets. In that space, one fund that stands out in particular could be the Europe ETF FLEU.
The Franklin FTSE Eurozone ETF (FLEU ) charges just 9 basis points (bps) to track the FTSE Developed Eurozone Index. That market-cap-weighted index of large= and midcap firms focuses on companies within the eurozone region. What’s more, per FactSet analysis, the strategy can use equity futures and swaps to enhance value and minimize costs.
The strategy has returned 12.3% YTD, according to ETF Database data, and 13.5% over the last five years. That beat both its ETF Database Category and FactSet Segment averages over both time frames. The category average YTD sat at 9%, while the ETF’s FactSet Segment average sat at 7.3% as of April 15.
FLEU isn’t the only fund to watch, of course. Its regional focus offers exposure to multiple notable markets, but single-country ETFs can provide a big boost, too.
The Franklin FTSE Germany ETF (FLGR ) also charges the low fee of just 9 bps. FGLR solely targets just German firms, and in doing so, it has returned 16.3% YTD. That has almost doubled the fund’s ETF Database Category and FactSet Segment averages. The strategy has also returned 13.77% over five years, beating those averages in that time, too, per ETF Database.
ETFs continue to provide some notable options for investors looking to toggle exposures. With tax efficiency, transparency, and tradability, funds like FLGR and FLEU could really help investors diversify from domestic turbulence.
For more information, please visit VettaFi.com | ETF Trends.
