FLBR: FRANKLIN FTSE BRAZIL ETF
ETF Education Report: FRANKLIN FTSE BRAZIL ETF (FLBR)
What this ETF is trying to do
The FRANKLIN FTSE BRAZIL ETF (FLBR) is an exchange-traded fund that focuses on companies in Brazil. It holds a variety of different stocks to provide exposure to that market. Based on the top holdings provided, the fund includes companies like VALE SA, ITAU UNIBANCO HLDG S A, and PETROLEO BRASILEIRO SA PETROBR. Because the list of holdings is partial, these are just some of the largest companies in the fund, not all of them.
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 FLBR, the one-year price return was approximately 49.25%. The year-to-date (YTD) price return was approximately 42.68%.
• Total Return: This includes the share price change plus any cash distributions (dividends) paid out. The one-year total return was approximately 59.34%, and the YTD total return was approximately 44.40%.
To see how the price has changed over time, we can look at the current price of $27.18 and compare it to an estimated price from roughly one year ago, which was approximately $18.21.
Income and distribution explanation
Some investors look for ETFs that pay out cash, known as distributions. FLBR has a distribution yield of approximately 4.76%. This means the cash distributed is about 4.76% of the ETF's price. Over the last 12 months, there were 3 payouts. It is important to remember that a high distribution yield is not the same as total return, and receiving cash does not guarantee that your original investment will stay the same value.
NAV erosion explanation
"NAV erosion" is a term used to describe when the value of the underlying assets in a fund decreases significantly. StockValueFinder uses an "erosion-risk score" to measure this risk. For FLBR, the erosion score is 100, and the label states "No price erosion detected." There is no severe erosion-risk flag for this ETF.
Pros
• The fund has shown positive price returns and total returns over the one-year, three-year, and year-to-date periods.
• It provides a distribution yield for those seeking cash income.
Cons
• The fund's distributions are described as "irregular" or "less frequent," meaning they do not happen on a set schedule.
• Investing in specific regional markets like Brazil can involve different risks than investing in a global fund.
Beginner takeaway
When studying FLBR, notice the difference between the share price growth and the total return. The total return is higher because it includes the cash distributions paid to investors. Always remember that while distributions provide cash, they are separate from the movement of the share price itself.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | VALE SA | n/a | 11.34% |
| 2 | ITAU UNIBANCO HLDG S A | n/a | 8.88% |
| 3 | PETROLEO BRASILEIRO SA PETROBR | n/a | 8.52% |
| 4 | PETROLEO BRASILEIRO SA PETROBRAS | n/a | 7.73% |
| 5 | BANCO BRADESCO S A | n/a | 3.69% |
| 6 | B3 SA BRASIL BOLSA BALCAO | n/a | 3.41% |
| 7 | ITAUSA S.A. | n/a | 3.16% |
| 8 | WEG SA | n/a | 3.09% |
| 9 | AXIA ENERGIA | n/a | 2.93% |
| 10 | n/a | n/a | 2.69% |