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What Is the Real Cost of Volatility?

Losses have a greater impact than gains

After a loss, it takes a greater gain to return to your original value.

Imagine you invested $100,000 and your account declined 20%

If you gained 20% back, you would be $4,000 short of your initial investment

To fully recover from the 20% loss, you would need to gain 25%

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The return of volatility in U.S. markets offers an opportunity for investors to consider how the defensive nature of the Franklin LibertyQ smart beta ETFs may help position portfolios for continued equity market volatility.

  • Seeks to provide investment results that closely correspond, before fees and expenses, to the performance of its corresponding underlying index, LibertyQ U.S. Large Cap Equity Index
  • Pursues low downside capture and strong risk-adjusted returns
  • The index methodology employs a rules-based, custom multi-factor approach providing exposure to four well known factors: 50% Quality, 30% Value, 10% Momentum and 10% Low Volatility
FLQL
Franklin U.S. Large Cap Multifactor Index ETF
Total Net AssetsAs of 12/12/2025
$1.68 Billion
Asset Class
Equity
Inception Date
04/26/2017
Dividend Frequency
Quarterly
NAVAs of 12/12/2025
$69.47

Performance data represents past performance, which does not guarantee future results. Current performance may differ from figures shown. Investment return and principal value will fluctuate with market conditions, and you may have a gain or loss when you sell your shares.

All investments involve risks, including possible loss of principal.

All investments involve risks, including possible loss of principal.

Stock prices fluctuate, sometimes rapidly and dramatically, due to factors affecting individual companies, particular industries or sectors, or general market conditions. To the extent the fund concentrates in a specific industry or a group of industries, the fund will carry much greater risks of adverse developments and price movements in such industries than a fund that invests in a wider variety of industries; there is also the risk that the fund will perform poorly during a slump in demand for securities of companies in such industries. There can be no assurance that the fund's multi-factor stock selection process will enhance performance. Exposure to such investment factors may detract from performance in some market environments, perhaps for extended periods. Performance of the fund may vary significantly from the performance of an index, as a result of transactions costs, expenses and other factors. These and other risks are discussed in the fund's prospectus.

Carefully consider a fund's investment goals, risks, charges and expenses before investing. Download a LibertyShares ETF prospectus whick contains this and other information. Carefully read a prospectus before investing or sending money.

ETFs trade like stocks, fluctuate in market value and may trade at prices above or below their net asset value. Brokerage commissions and ETF expenses will reduce returns.

The LibertyQ U.S. Large Cap Equity Index was developed using Franklin Templeton’s proprietary methodology and seeks to reflect Franklin Templeton’s desired investment strategy. Incepted on 12/30/2016, the index is calculated and maintained by FTSE Russell and based on the Russell 1000® Index. The Franklin LibertyQ U.S. Equity ETF is not in any way sponsored, endorsed, sold or promoted by FTSE Russell. Russell® is a trademark of FTSE Russell. Additional important data provider notices and terms available at www.franklintempletondatasources.com.

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