Should Franklin U.S. Mid Cap Multifactor Index ETF (FLQM) Be on Your Investing Radar?

Core Viewpoint - The Franklin U.S. Mid Cap Multifactor Index ETF (FLQM) is a passively managed ETF that provides broad exposure to the Mid Cap Blend segment of the US equity market, with assets exceeding $1.63 billion [1] Group 1: Fund Overview - FLQM was launched on April 26, 2017, and is sponsored by Franklin Templeton Investments [1] - The ETF targets mid-cap companies with market capitalizations between $2 billion and $10 billion, which are seen as having higher growth prospects compared to large-cap companies while being less risky than small-cap firms [2] Group 2: Costs and Performance - The ETF has an expense ratio of 0.30%, which is competitive within its peer group, and a 12-month trailing dividend yield of 1.42% [3] - FLQM aims to match the performance of the LibertyQ U.S. Mid Cap Equity Index, which includes mid-cap companies with favorable exposure to quality, value, momentum, and low volatility factors [6] - As of July 16, 2025, FLQM has experienced a year-to-date loss of approximately -0.08% but has gained about 4.04% over the past year [6] Group 3: Sector Exposure and Holdings - The ETF has a significant allocation to the Industrials sector, comprising about 22.90% of the portfolio, followed by Consumer Discretionary and Financials [4] - Idexx Laboratories Inc (IDXX) represents about 1.34% of total assets, with the top 10 holdings accounting for approximately 11.82% of total assets under management [5] Group 4: Risk and Alternatives - FLQM has a beta of 0.97 and a standard deviation of 16.55% over the trailing three-year period, indicating effective diversification of company-specific risk with around 205 holdings [7] - The ETF carries a Zacks ETF Rank of 3 (Hold), suggesting it is a viable option for investors seeking exposure to the Mid Cap Blend market segment [8] - Alternatives include the Vanguard Mid-Cap ETF (VO) and the iShares Core S&P Mid-Cap ETF (IJH), which have significantly larger asset bases and lower expense ratios [9]