FLCA: Warrants Broader Interest, But Wait For A Pullback

The Alpha Sieve4.82K FollowersFollow5ShareSavePlay(8min)CommentsSummaryFranklin FTSE Canada ETF offers low-cost, large-cap Canadian equity exposure with a financials-heavy portfolio and no healthcare sector allocation.FLCA, which has a best-in-class expense structure, outperforms larger peers on risk-adjusted returns and yield, but suffers from wider bid-ask spreads and lower trading volumes.FLCA is exhibiting strong momentum, and Canadian banks' sturdy tier 1 capital ratios reflect well on higher payouts.At 17x earnings and 2.5x book, FLCA trades at a premium to other developed markets, raising valuation concerns for value-oriented investors.FLCA's standalone price charts suggest overbought conditions. Richard Drury/DigitalVision via Getty Images ETF Profile The Franklin FTSE Canada ETF (FLCA), which has been in existence since November 2017, enables investors to participate in the movements of over 80 large and mid-sized Canadian stocks (although the former categoryThis article was written byThe Alpha Sieve4.82K FollowersFollowInvestment research, primarily oriented towards uncelebrated/under-covered stocks and ETFs, across North America, Latin America, Europe and Asia. Seeks to combine both fundamental and technical disciplines while making an investment/trading proposition.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.