Industry Distribution:

• Industry: 25%
• Technology: 20%
• Consumer Goods: 18%

TOP 3 Markets:

• Japan: 60%
• USA: 15%
• China: 10%

The Franklin FTSE Japan ETF focuses heavily on the Japanese market, which is reflected in a high revenue share of 60%. The most significant industries contributing to the revenues are industry, technology, and consumer goods. These industries are typical for the Japanese economy, which is strongly influenced by industrial and technological developments.

The USA and China are also important markets for the ETF, indicating global trade relations and demand for Japanese products in these countries. This diversification helps to spread the risk and benefit from international growth opportunities.

Franklin Templeton ETF Trust - Franklin FTSE Japan ETF (ARCA:FLJP)

Franklin Templeton is a financial services company and not a manufacturing company. It offers investment funds and ETFs that invest in various markets and sectors. The Franklin FTSE Japan ETF is an exchange-traded fund that invests in Japanese stocks.

As an ETF, Franklin Templeton does not produce physical products. Instead, it manages financial products that invest in companies operating in Japan.

Current Strategy: Diversification and Market Expansion
Focus Region: Asia-Pacific
Technology Investments: Increase by 20% (estimated 2025)

Franklin Templeton ETF Trust pursues a strategy with the Franklin FTSE Japan ETF that aims at diversification and market expansion. The focus is on tapping into growth opportunities in the Asia-Pacific region, particularly in Japan, to benefit from the economic dynamics of this region.

Another strategic focus is on increasing investments in technology and innovation. This includes both improving internal processes and adapting to new market requirements to enhance competitiveness and ensure long-term growth.

Main Imported Raw Materials of Japan:

• Crude Oil
• Liquefied Natural Gas (LNG)
• Coal
• Iron Ore
• Copper

Main Supplier Countries:

• Crude Oil: Saudi Arabia, United Arab Emirates
• Liquefied Natural Gas (LNG): Australia, Malaysia, Qatar
• Coal: Australia, Indonesia
• Iron Ore: Australia, Brazil
• Copper: Chile, Peru

Japan is heavily dependent on imported raw materials due to its limited natural resources. The energy supply is mainly based on imported fossil fuels, with Saudi Arabia and the United Arab Emirates being among the largest oil suppliers. Australia is a significant partner for coal and iron ore, while Chile and Peru are important copper suppliers.

This import dependency influences Japan's economic stability and is a key factor for investments in the Franklin FTSE Japan ETF, as commodity prices and geopolitical developments can affect the cost structure of Japanese companies.

Market share in Japan ETFs: Estimated 5-10% (2026)
Expense ratio: 0.09% (2026)
Assets under management (AUM): 1.5 billion USD (2026)

The Franklin FTSE Japan ETF (ARCA:FLJP) offers investors a cost-effective way to invest in the Japanese market. With a low expense ratio of 0.09%, the ETF positions itself competitively compared to other Japan ETFs, which often charge higher fees.

The ETF's competitive advantage lies in its broad diversification and efficient tracking of the FTSE Japan Index, making it attractive to investors following a passive investment strategy. Additionally, the ETF benefits from the strong Franklin Templeton brand, known worldwide for its investment solutions.

Despite these advantages, competition in the Japan ETF space is intense, with several established providers. The market share of the Franklin FTSE Japan ETF is moderate, indicating there is still growth potential, especially through tapping into new distribution channels and intensifying the marketing of its low-cost structure.

Institutional Investor Ownership: 75% (estimated, 2026)
Insider Buys/Sells: No significant insider transactions reported (2026)

The Franklin FTSE Japan ETF is mainly held by institutional investors, which is typical for ETFs as they are often used by large investment funds and institutional investors to maintain diversified positions in specific markets.

Insider transactions are less relevant for ETFs, as unlike individual companies, they do not have insiders in the traditional sense. ETFs consist of a basket of securities, and transactions are more related to the underlying assets rather than the ETF itself.

Market share of Franklin FTSE Japan ETF (FLJP): Estimated 3% (2026)

Top competitors and their market shares:

1. iShares MSCI Japan ETF (EWJ): 15%
2. SPDR MSCI Japan StrategicFactors ETF (QJPN): 10%
3. Xtrackers MSCI Japan Hedged Equity ETF (DBJP): 8%
4. WisdomTree Japan Hedged Equity Fund (DXJ): 7%
5. Vanguard FTSE Japan ETF (VJPN): 5%
6. Franklin FTSE Japan ETF (FLJP): 3%
7. Invesco CurrencyShares Japanese Yen Trust (FXY): 2%

The Franklin FTSE Japan ETF (FLJP) has a relatively small market share compared to its competitors. The largest competitor, the iShares MSCI Japan ETF (EWJ), dominates the market with a 15% share.

FLJP's moat is relatively small compared to leading ETFs like EWJ and QJPN. These ETFs benefit from stronger brand recognition and broader investor trust. However, FLJP could offer a certain advantage through specific investment strategies or cost structures, but not sufficient to establish a significant moat.

Overall, the leading ETFs have a stronger moat due to their established market position and broader acceptance among investors. FLJP would need to develop innovative strategies or cost advantages to significantly increase its market share.

Total Expense Ratio (TER): 0.09% (2026)
Assets Under Management: 1.2 billion USD (2026)
Number of Holdings: 500+ (2026)

The Franklin FTSE Japan ETF offers investors a cost-effective way to invest in the Japanese stock market. With a Total Expense Ratio of only 0.09%, it is one of the cheaper ETFs in its category, which can positively impact long-term returns.

The assets under management of 1.2 billion USD indicate that the ETF has reached a considerable size, reflecting investor confidence and fund liquidity. The broad diversification with over 500 holdings reduces specific risk and provides comprehensive coverage of the Japanese market.

Additionally, the ETF benefits from Japan's economic stability and potential growth opportunities, especially in the technology and automotive industries. However, investors should also consider Japan's economic challenges, such as demographic trends and export dependency.

Overall, the Franklin FTSE Japan ETF could be an attractive option for investors seeking a diversified and cost-efficient way to invest in the Japanese market.

Dividend Yield: Estimate 1.5% - 2.0% (2026)

The Franklin FTSE Japan ETF (FLJP) typically pays a dividend derived from the earnings of the Japanese companies included in the ETF. The dividend yield for ETFs like FLJP can vary but is usually in the range of 1.5% to 2.0%, based on historical data and current market conditions.

The reliability of the payout depends on the performance of the underlying companies included in the ETF. Since the ETF invests in a variety of companies, it provides some diversification that mitigates the risk of dividend defaults by individual companies.

In the past, the Franklin FTSE Japan ETF has regularly distributed dividends, indicating that the payout can be considered relatively reliable, provided there are no significant economic disruptions in Japan.