Franklin FTSE Europe ETF

Franklin FTSE Europe ETF (FLEE) is an index fund that tracks the FTSE Developed Europe Capped Index. The index holds about 500 large and mid-sized companies from developed European countries, led by the UK, Switzerland, France and Germany. FLEE's 0.09% yearly expense ratio is well below the 0.28% average of similar Europe funds, though Vanguard's VGK charges 0.06%. With about $116 million in assets as of June 30, 2026, FLEE is much smaller than its rivals.

• Over the year to Oct 27, 2026, FLEE returned +9.8%, 3rd of 9 among similar funds.
• Its 5-year annualized return was +8.7%.
• In the 2020 COVID crash it fell 36.6% and regained its old high 8 months after the low.
• Its worst full calendar year was 2022 (-15.2%); its best was 2025 (+35.7%).
• The deepest fall in its price history was 37.3% (Jan 17, 2020 to Mar 18, 2020), recovered by Nov 24, 2020.

As of Jun 30, 2026, the fund held 498 securities; the ten largest made up 20.88% of assets, and 2.14% sat in cash and money-market holdings.

• Over the three months to Jun 30, 2026, investors added a net $0.00 (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +7.26%, +2.59%, +0.76%.

FLEE follows the FTSE Developed Europe Capped Index, which FTSE Russell maintains. The index covers large and mid-sized companies in developed European countries. FTSE Russell decides which companies qualify using tests such as where a company is incorporated, listed and headquartered. As of May 31, 2026, the index held 500 stocks, ranging in size from $1.73 billion to $622.83 billion. Stocks are weighted by free-float market value, which counts only the shares available to the public, so bigger companies carry more weight. Each quarter a cap is applied: no single company can exceed 25% of the index, and companies above 5% can't together exceed 50%.

Franklin Templeton runs the fund passively. It puts at least 80% of its assets into index stocks and depositary receipts, which are certificates that stand for foreign shares. It can either hold every index stock at its index weight or hold a representative sample. Portfolio turnover was 5%. As of June 30, 2026, the fund held 498 holdings. ASML made up 5.2%, HSBC 2.2% and Novartis 2.0%, and the top ten together made up 20.9%.

The fund may use small positions in equity index futures, such as FTSE 100 and Euro Stoxx 50 contracts, and total return swaps to keep cash invested. It uses currency contracts to settle trades and protect distributions, not to hedge the whole portfolio. So returns in dollars also rise and fall with the euro, pound and Swiss franc.

• FLEE charges 0.09% a year, versus an average of 0.28% for the similar funds below (3rd of 9, 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).

FLEE adds low-cost exposure to about 500 developed European companies, which can balance a portfolio weighted toward US stocks.

FLEE holds European companies such as ASML, HSBC, Novartis and Roche. Its trailing 12-month yield was 3.22% as of October 27, 2026, paid twice a year. Costs are low: under the SEC's standard example, a $10,000 investment would cost $9 in expenses over one year and $116 over ten. The fund launched in 2017, so it has no record from 2008. In the 2020 COVID crash it fell 36.6% and took about 8 months to recover. In the 2022 bear market it dropped 31.5% and needed about 15 months to regain its high. Its worst calendar year was 2022, at −15.51%. Someone who has to sell shares during a drop like that locks in the loss. Twice-yearly payouts also make it a lumpy source of regular income. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.

Matched by holdings overlap from the latest N-PORT reports.