FLBR - FLBR- Taking A Positive Stance Now

2024-06-28 13:25:22 ET

Summary

• FLBR has delivered negative returns of 17% and underperformed emerging markets and global stocks in 2024.
• Despite the adverse performance so far, we are now prepared to turn more optimistic on FLBR as some key macro-economic variables are in a better place.
• Despite an unappealing payout in June, FLBR's yield of over 7.3% still looks very compelling.
• The ETF offers solid long-term earnings growth potential of 17.5% but is priced at a massive P/E discount to EMs and global stocks.
• The risk-reward on the charts looks appealing, and fund inflows have picked up of late.

Introduction

The Franklin FTSE Brazil ETF ( FLBR ), a $158m-sized ETF that offers a cost-competitive route to a portfolio of 85 Brazilian stocks, hasn’t fared too well in 2024; this year while global stocks have generated double-digit returns, and emerging markets have notched up gains of over 6%, FLBR has lost its way, declining by close to -17%!...

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