- Business
- Franklin FTSE Japan Hedged ETF (FLJH) is a passively managed exchange-traded fund that seeks to track the performance, before fees and expenses, of the FTSE Japan RIC Capped Hedged to USD Index, providing market-cap weighted exposure to large- and mid-cap Japanese equities while mitigating yen currency risk through hedging strategies such as currency forwards. The fund holds approximately 488 securities across diversified sectors including industrials (24.41%), financials (17.25%), consumer discretionary (16.41%), and information technology (13.12%), with top holdings such as Toyota Motor Corporation (4.01%), Mitsubishi UFJ Financial Group, Inc. (3.25%), and Sony Group Corporation (3.18%); it features a low net expense ratio of 0.09%, semi-annual dividend distributions, and trades on the NYSE Arca exchange. FLJH targets USD-based investors seeking Japanese equity returns without direct currency exposure, with assets under management around $110.67 million and a weighted average market capitalization of $61.87 billion.
Launched on November 2, 2017, as part of Franklin Templeton's initial suite of 16 passive single-country and regional ETFs, FLJH is issued by Franklin Templeton ETF Trust within Franklin Resources, Inc. (Franklin Templeton), with portfolio management by Franklin Advisory Services, LLC; the fund is domiciled in the United States and lists on NYSE Arca under ticker FLJH (CUSIP 35473P637). Headquartered in San Mateo, California, Franklin Templeton oversees the ETF's operations, including semi-annual index reconstitution and tax-efficient structure as a regulated investment company.
Recent developments include semi-annual distributions such as $0.62826 per share on June 20, 2025, and $0.83215 per share on December 20, 2024, reflecting adjustments amid Japanese market dynamics like Bank of Japan policy normalization and inflation trends; a notable dividend cut of 3% occurred on June 19, 2025, following an 88% drop in June 2024, tied to net asset value fluctuations and underlying index cash flows. The fund delivered a one-year total return of 32.41% as of November 30, 2025, amid strong Japanese equity performance driven by economic rebound and corporate reforms, though it underperformed broader developed markets year-to-date. No major acquisitions, partnerships, funding rounds, or structural changes specific to FLJH were reported in the last 1-2 years, with focus remaining on passive tracking amid evolving yen hedging efficacy.