Franklin FTSE Eurozone ETF

Franklin FTSE Eurozone ETF (FLEU) is an index fund from Franklin Templeton. It tracks the FTSE Developed Eurozone Index, which holds about 260 large and mid-size companies from ten countries that use the euro. Its 0.09% expense ratio is far below the 0.51% charged by the iShares MSCI Eurozone ETF, which shares about 92% of its holdings. The tradeoff is size: with $71.4 million in assets as of June 30, 2026, it is the smallest fund in its peer group.

• Over the year to Oct 27, 2026, FLEU returned +6.4%, 8th of 9 among similar funds.
• Its worst full calendar year was 2024 (+2.3%); its best was 2025 (+41.5%).
• The deepest fall in its price history was 15.7% (Mar 19, 2025 to Apr 8, 2025), recovered by Apr 28, 2025.

As of Jun 30, 2026, the fund held 260 securities; the ten largest made up 29.58% of assets.

• 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: +8.30%, +3.48%, +1.87%.

FLEU aims to match the FTSE Developed Eurozone Index, before fees. FTSE Russell builds the index from large and mid-size stocks in ten developed eurozone countries: Austria, Belgium, Finland, France, Germany, Ireland, Italy, the Netherlands, Portugal and Spain. Stocks are weighted by free-float market value. That is a company's stock market value counting only the shares the public can trade, so the biggest companies count the most. As of May 31, 2026, the index had 261 securities, ranging from $1.73 billion to $622.83 billion in value.

The fund puts at least 80% of its assets in index stocks or depositary receipts, which are certificates that stand for foreign shares. It may own every index stock at its index weight, or a representative sample. As of June 30, 2026, it held 260 holdings. ASML made up 9.7%, Siemens 3.0% and Banco Santander 2.6%, and the top ten totaled 29.6%. By country, France was 25.1%, Germany 24.3% and the Netherlands 20.4%. The index was concentrated in financial services as of May 31, 2026, and the fund follows that weighting. Portfolio turnover was 6%.

The fund may use equity index futures and total return swaps to invest spare cash or to track the index more cheaply. As of June 30, 2026, it held one small Euro Stoxx 50 futures position. The prospectus describes currency contracts only for settling trades and handling distributions, so changes in the euro against the dollar pass through to returns. The fund uses no leverage or options.

• FLEU charges 0.09% a year, versus an average of 0.26% 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).

It adds low-cost exposure to large eurozone companies and the euro, which a US-focused portfolio usually lacks.

FLEU could add eurozone companies such as ASML, Siemens and Allianz to a US-heavy portfolio. It costs 0.09% a year, or $116 over 10 years on $10,000 in the SEC's standard example. The trailing yield was 2.84% as of October 27, 2026, paid in two installments a year. The fund launched in 2017, so it has no 2008 record. It fell 21.18% in the first quarter of 2020, ended 2020 up 0.46%, and lost 6.97% in 2022. Its worst calendar year was 2018, down 8.23%. In price data starting August 2023, its deepest drop was 15.7%, from March to April 2025, and it recovered in under a month. A retiree who has to sell during a slump could lock in losses, and swings in the euro add a second source of risk. 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.