Franklin FTSE Canada ETF

Franklin FTSE Canada ETF (FLCA) is an index fund that tracks the FTSE Canada RIC Capped Index, which held 86 large and mid-size Canadian stocks as of May 31, 2026. Royal Bank of Canada and Toronto-Dominion Bank are its largest holdings. Its 0.09% expense ratio is lower than the similar funds compared here, including JPMorgan BetaBuilders Canada ETF (0.19%) and iShares MSCI Canada ETF (0.50%). The trade-offs are a heavy bank weighting and a much smaller asset base.

• Over the year to Oct 27, 2026, FLCA returned +22.1%, 2nd of 5 among similar funds.
• Its 5-year annualized return was +12.0%.
• In the 2020 COVID crash it fell 41.5% and regained its old high 8.2 months after the low.
• Its worst full calendar year was 2018 (-15.6%); its best was 2025 (+34.6%).
• The deepest fall in its price history was 41.5% (Feb 19, 2020 to Mar 23, 2020), recovered by Nov 27, 2020.

As of Jun 30, 2026, the fund held 86 securities; the ten largest made up 44.18% of assets.

• Over the three months to Jun 30, 2026, investors added a net $54.0M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +6.87%, +0.90%, -1.69%.

FLCA follows a passive approach. It tries to match the FTSE Canada RIC Capped Index, before fees. FTSE Russell builds and maintains that index. FTSE Russell decides which companies count as Canadian by looking at where each one is incorporated, listed, taxed and headquartered. The index weights stocks by free-float market capitalization: the market value of the shares the public can actually trade. Bigger companies get bigger weights. As of May 31, 2026, the index held 86 stocks valued between $5.76 billion and $266.66 billion.

Every quarter, the index caps its weights so that no single company tops 25%, and companies above 5% can't add up to more than 50%. Those caps limit single-company risk but not sector risk. As of May 31, 2026, the index was concentrated in banking, and the fund concentrates to the same degree. As of June 30, 2026, Royal Bank of Canada was 9.6% of the fund, Toronto-Dominion Bank was 6.7%, and the top ten holdings made up 44%.

The fund must keep at least 80% of its assets in index stocks. It can hold every stock at index weight, or a representative sample. It may use futures and total return swaps to put cash to work, and currency contracts to settle trades and pay distributions. As of June 30, 2026, it held no derivatives and almost 100% stocks. Portfolio turnover was 17%.

• FLCA charges 0.09% a year, versus an average of 0.29% for the similar funds below (1st of 5, 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).

FLCA adds low-cost exposure to one developed market outside the US, but its tilt toward Canadian banks and energy makes it a complement, not a core holding.

FLCA launched in November 2017, so it has no record from the 2008 crisis. In the 2020 COVID crash, it fell 41.5% between February 19 and March 23, 2020. That was its deepest drop, and it recovered by November 27, 2020, about eight months later. In 2022, it fell 24.2% from March 30 to October 12 and took about 18 months to recover, until April 9, 2024. Its worst calendar year was 2018, at -15.8%. Selling shares to cover spending during a slump like that would lock in losses.

The yield over the past 12 months was 1.68% as of October 27, 2026. The fund pays twice a year, so it isn't a steady source of monthly income. Costs are low: in the SEC's standard $10,000 example, $9 in the first year and $116 over ten years. Past results don't predict future ones, and a plan should look at the whole portfolio, not one fund.

Matched by closest holdings overlap from the latest N-PORT reports (no similar fund shares 20% or more of its holdings).