At a glance
FLAU charges 0.09% a year, below the 0.2% average of the 6 funds most like it (the 3rd cheapest of 7). It has $85.6M in assets, the 7th largest of that group; it paid 3.05% of its price in distributions over the past 12 months, semiannual. Over the past year it returned +10.5% with distributions reinvested (S&P 500: +11.5%), the weakest of those 7 funds; over three years it returned +17.2% a year. At its worst it fell 44.7% in the 2020 crash (S&P 500: 33.7%) and 24.4% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 8 months and 17 months after the lows. Its ten largest positions make up 54.7% of the fund, out of 106 in all.
The short version
Franklin FTSE Australia ETF (FLAU) is an index fund that tracks the FTSE Australia RIC Capped Index, which holds about 100 large and mid-size Australian companies, led by BHP and Commonwealth Bank of Australia. Its 0.09% expense ratio is less than half the 0.20% average of similar funds. It leans heavily on banks and miners, and with about $86 million in assets as of June 30, 2026, it is the smallest fund in its peer group.
Price history
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FLAU +10.5% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| FLAU official prospectus, to Dec 31, 2025 | — | +16.47% | — | +6.74% | — | +6.96% |
| FTSE Australia Index-NR index, same period | — | +16.43% | — | +6.76% | — | +6.95% |
| FTSE Australia Capped Index-NR index, same period | — | +16.43% | — | +6.76% | — | +6.95% |
| FLAU price data to Oct 27, 2026 | +13.1% | +10.5% | +17.2% | +6.7% | — | +7.8% |
- Over the year to Oct 27, 2026, FLAU returned +10.5%, 7th of 7 among similar funds.
- Its 5-year annualized return was +6.7%.
- In the 2020 COVID crash it fell 44.7% and regained its old high 7.7 months after the low.
- Its worst full calendar year was 2018 (-10.0%); its best was 2019 (+23.3%).
- The deepest fall in its price history was 45.7% (Jan 17, 2020 to Mar 23, 2020), recovered by Nov 19, 2020.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +13.1% | — |
| 2025 | +15.9% | +16.47% |
| 2024 | +1.8% | +0.92% |
| 2023 | +12.6% | +13.38% |
| 2022 | -5.5% | -5.42% |
| 2021 | +9.9% | +9.93% |
| 2020 | +11.1% | +11.04% |
| 2019 | +23.3% | +23.20% |
| 2018 | -10.0% | -12.25% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 44.7% over that stretch · deepest drop along the way 44.7%, back to its old high 7.7 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 18.2% over that stretch · deepest drop along the way 24.4%, back to its old high 17.2 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.4900 | |
| 2025 | $1.0200 | +8.5% |
| 2024 | $0.9400 | -8.7% |
| 2023 | $1.0300 | -33.5% |
| 2022 | $1.5500 | +2.6% |
| 2021 | $1.5100 | +147.5% |
| 2020 | $0.6100 | -46.5% |
| 2019 | $1.1400 | +20.0% |
| 2018 | $0.9500 |
What's inside
As of Jun 30, 2026, the fund held 106 securities; the ten largest made up 54.68% of assets.
| Holding | Weight | |
|---|---|---|
| BHP GROUP LTD | 12.80% | |
| COMMONWEALTH BANK OF AUSTRALIA | 11.64% | |
| WESTPAC BANKING CORP | 5.10% | |
| NATIONAL AUSTRALIA BANK LTD | 4.91% | |
| ANZ GROUP HOLDINGS LTD | 4.52% | |
| WESFARMERS LTD | 4.32% | |
| MACQUARIE GROUP LTD | 3.70% | |
| RIO TINTO LTD | 2.71% | |
| GOODMAN GROUP | 2.63% | |
| CSL LTD | 2.36% | |
| WOODSIDE ENERGY GROUP LTD | 2.26% | |
| WOOLWORTHS GROUP LTD | 2.06% | |
| TRANSURBAN GROUP | 1.90% | |
| QBE INSURANCE GROUP LTD | 1.60% | |
| ARISTOCRAT LEISURE LTD | 1.40% |
By country
Australia 97.44%Ireland 0.92%New Zealand 0.72%United States 0.42%By asset type
Stocks 99.49%What changed recently
- Over the three months to Jun 30, 2026, investors withdrew a net $5.2M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +7.22%, +1.21%, -2.72%.
How it works
FLAU follows the FTSE Australia RIC Capped Index, which FTSE Russell builds from its FTSE Australia Index of large- and mid-size Australian stocks. FTSE Russell decides which companies count as Australian by looking at where each one is incorporated, listed, taxed and headquartered, and the currency its shares trade in. Each stock is weighted by free-float market capitalization, meaning company size counting only the shares available to trade. As of May 31, 2026, the index held 107 stocks worth between $1.02 billion and $227.70 billion each.
Every quarter, the index applies caps. No single company can exceed 25%, and companies weighing more than 5% can't add up to more than 50% combined. These limits matter because a few giants dominate. As of June 30, 2026, BHP made up 12.8% of the fund and Commonwealth Bank 11.6%, and the top 10 holdings made up 54.7%. The index, and therefore the fund, is concentrated in banking and in metals and mining.
Franklin Templeton generally aims to own every stock in the index at its index weight. When that isn't practical, it may hold a representative sample instead. It may use stock index futures and total return swaps to invest spare cash, and currency contracts to settle trades and handle distributions. Portfolio turnover was 7%, so trading is light.
What it really costs
- FLAU charges 0.09% a year, versus an average of 0.2% for the similar funds below (3rd of 7, cheapest first).
- Using the prospectus's standard example, $10,000 invested would cost about $9 in the first year and $116 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| FLAU | $9 | $29 | $51 | $116 |
In a retirement portfolio
As a single-country fund concentrated in Australian banks and mining, with BHP Group at 12.8% and Commonwealth Bank of Australia at 11.6% of assets as of June 30, 2026, it fits better as a smaller add-on than as a foundation.
FLAU launched in November 2017, so it has no record from the 2008 financial crisis. Its deepest drop was 45.7%, from January 17 to March 23, 2020, and it took about eight months to recover. In 2022 it fell 24.4% from April to September, then took about 17 months to recover. Its worst calendar year was 2018, a 12.25% loss. Selling shares near those lows to fund spending would have locked in losses.
Payouts over the year to October 27, 2026 equaled 3.05% of the share price, paid twice a year. The 0.09% expense ratio is below the 0.20% average for similar funds; the SEC's standard example puts costs at $9 in year one and $116 over 10 years on $10,000. Results also hinge on commodity demand, which drives much of Australia's economy. Past results don't predict the future, and a plan should weigh the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors wanting a low-cost slice of Australia at 0.09% a year, compared with a 0.20% average for similar funds.
- Income-minded holders who are fine with a 3.05% trailing yield (as of October 27, 2026) paid twice a year instead of monthly.
- Those seeking direct exposure to Australia's big banks and miners, such as BHP, Commonwealth Bank and Westpac, as a small part of a portfolio.
Look elsewhere if
- Investors wanting broader Asia-Pacific exposure; funds like BBAX and EPP share about two-thirds of FLAU's holdings but cover more markets.
- Anyone uneasy with concentration: the top 10 holdings made up 54.7% of assets as of June 30, 2026, weighted toward banks and mining.
- Those who prefer larger funds; at about $86 million as of June 30, 2026, FLAU is the smallest of seven comparable funds and saw recent net outflows.
Close alternatives
Matched by closest holdings overlap from the latest N-PORT reports (no similar fund shares 20% or more of its holdings).
| Fund | Overlap | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| FLAU this fund | — | 0.09% | $85.6M | +10.5% | +17.2% |
| BBAX JPMorgan BetaBuilders Developed Asia Pacifi… | 65% | 0.19% | $6.73B | +14.0% | +17.7% |
| EPP iShares MSCI Pacific ex Japan ETF | 63% | 0.48% | $2.32B | +10.7% | +17.8% |
| IPAC iShares Core MSCI Pacific ETF | 18% | 0.09% | $2.65B | +16.0% | +20.6% |
| VPL Vanguard FTSE Pacific ETF | 14% | 0.07% | $13.10B | +22.2% | +22.6% |
| EFA iShares MSCI EAFE ETF | 7% | 0.32% | $77.98B | +13.5% | +18.2% |
| IEFA iShares Core MSCI EAFE ETF | 6% | 0.07% | $190.11B | +13.7% | +18.5% |
Questions investors ask
Does FLAU pay dividends?
Yes. FLAU pays distributions twice a year. Over the 12 months through October 27, 2026, it paid about $1.07 per share, a yield of 3.05%. The income comes from dividends paid by its Australian holdings, mainly large banks and miners such as Commonwealth Bank, Westpac and BHP. Payments vary from one distribution to the next, and because they arrive only twice a year, they are lumpier than income from a fund that pays monthly.
What's the difference between FLAU and BBAX?
FLAU holds only Australian stocks, while JPMorgan BetaBuilders Developed Asia Pacific-ex Japan ETF (BBAX) covers a wider developed Asia-Pacific region. About 65% of their holdings overlap. FLAU costs 0.09% a year and BBAX costs 0.19%. BBAX is much larger, with about $6.7 billion in assets as of July 31, 2026, compared with about $86 million for FLAU. As of October 27, 2026, BBAX returned 14% over one year versus 10.5% for FLAU, and 17.7% a year over three years versus 17.2%.
What is the expense ratio of FLAU?
FLAU's expense ratio is 0.09% a year, according to its prospectus filed July 27, 2026. Similar funds average 0.20%. In the SEC's standard example, which assumes $10,000 invested, a 5% annual return and a sale at the end of each period, total costs would be about $9 after one year, $29 after three years, $51 after five years and $116 after 10 years. Vanguard FTSE Pacific ETF (VPL) costs less, at 0.07%, but it covers a broader region.
What are FLAU's top holdings?
As of June 30, 2026, FLAU's largest holdings were BHP Group (12.8%), Commonwealth Bank of Australia (11.6%), Westpac (5.1%), National Australia Bank (4.9%), ANZ Group (4.5%), Wesfarmers (4.3%) and Macquarie Group (3.7%). The fund held 106 companies in total, but the top 10 made up 54.7% of assets. The index it tracks was concentrated in banking and in metals and mining, so those two industries drive much of its performance.
How has FLAU performed since it launched?
As of December 31, 2025, FLAU returned 16.47% over one year, 6.74% a year over five years and 6.96% a year since its November 2017 launch. Those results closely match its index, which returned 6.76% a year over five years. Results have been uneven. The fund lost 12.25% in 2018 and gained 23.2% in 2019, its strongest calendar year. Based on price, it was up 13.1% for 2026 through October 27.