FLAU: FRANKLIN FTSE AUSTRALIA ETF
ETF Education Report: FRANKLIN FTSE AUSTRALIA ETF (FLAU)
What this ETF is trying to do
The FRANKLIN FTSE AUSTRALIA ETF (ticker: FLAU) is an exchange-traded fund that focuses on companies in Australia. It holds a variety of different stocks to provide exposure to the Australian market.
What the numbers show
When looking at an ETF, it is important to understand two different types of returns: price return and total return.
• Price Return: This measures only the change in the share price. For FLAU, the year-to-date (YTD) price return is approximately 8.95%. The one-year price return was about 6.51%, and the three-year price return was approximately 35.84%.
• Total Return: This includes the share price change plus any cash distributions (dividends) paid out. The YTD total return is approximately 10.52%, the one-year total return was about 10.07%, and the three-year total return was approximately 50.19%.
To see how the price has moved, we can look at an estimated price from roughly one year ago, which was $32.16. The current price is $34.25.
Income and distribution explanation
Some investors look for ETFs that pay out cash, known as distributions. FLAU has a distribution yield of approximately 3.12%. This means the cash distributed is about 3.12% of the ETF's price. Over the last 12 months, the trailing distributions were $1.07 per share. The distribution frequency is described as irregular or less frequent, with two payouts in the last year.
NAV erosion explanation
"NAV erosion" is a term used to describe when the value of the underlying assets in an ETF decreases significantly over time. It is important to note that a falling share price does not always mean NAV erosion is happening. For this ETF, the erosion-risk score is 100, and the label indicates "No price erosion detected." There is no severe erosion-risk flag for this fund.
Top Holdings
The following are the top holdings in this ETF (note that this is a partial list):
• BHP GROUP LTD: 14.07%
• COMMONWEALTH BANK OF AUSTRALIA: 10.66%
• NATIONAL AUSTRALIA BANK LTD: 4.81%
• WESTPAC BANKING CORP: 4.74%
• ANZ GROUP HOLDINGS LTD: 4.58%
• WESFARMERS LTD: 3.86%
• MACQUARIE GROUP LTD: 3.62%
• CSL LTD: 3.44%
• RIO TINTO LTD: 2.73%
• WOODSIDE ENERGY GROUP LTD: 2.48%
Pros
• The ETF shows a positive three-year total return of approximately 50.19%.
• The erosion-risk measurement is rated as "good."
Cons
• Distributions are irregular and occur less frequently.
Beginner takeaway
When studying FLAU, remember that the total return is higher than the price return because it includes cash distributions. While the ETF provides a distribution yield, high yields alone do not guarantee that an investment will grow in value. Always look at both the share price movement and the total return to get a full picture.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | BHP GROUP LTD | n/a | 14.07% |
| 2 | COMMONWEALTH BANK OF AUSTRALIA | n/a | 10.66% |
| 3 | NATIONAL AUSTRALIA BANK LTD | n/a | 4.81% |
| 4 | WESTPAC BANKING CORP | n/a | 4.74% |
| 5 | ANZ GROUP HOLDINGS LTD | n/a | 4.58% |
| 6 | WESFARMERS LTD | n/a | 3.86% |
| 7 | MACQUARIE GROUP LTD | n/a | 3.62% |
| 8 | CSL LTD | n/a | 3.44% |
| 9 | RIO TINTO LTD | n/a | 2.73% |
| 10 | WOODSIDE ENERGY GROUP LTD | n/a | 2.48% |