(FLKR) Franklin FTSE South Korea - Ratings and Ratios

The Franklin FTSE South Korea ETF (NYSE ARCA: FLKR) is a non-diversified exchange-traded fund designed to track the performance of South Korean large- and mid-capitalization stocks. Under normal market conditions, the fund invests at least 80% of its assets in the component securities of the FTSE South Korea Capped Index and in depositary receipts representing such securities. The FTSE South Korea Capped Index is a market-capitalization-weighted index derived from the FTSE South Korea Index, with a cap applied to the largest constituents to prevent excessive concentration. This structure ensures a balanced representation of the South Korean equity market while maintaining exposure to key sectors.

From a technical perspective, FLKR is currently trading below its 20-day SMA of 19.14, with a last price of 18.60, indicating bearish momentum in the short term. The 50-day SMA at 18.66 is slightly above the current price, suggesting potential resistance. However, the 200-day SMA at 20.22 remains above the current price, signaling a longer-term downtrend. The ATR of 0.30 reflects relatively low volatility, which may indicate a period of consolidation in the near term.

From a fundamental perspective, the fund has an AUM of $120.95M, which is moderate for a single-country ETF. This size allows for efficient trading liquidity while avoiding excessive market impact. The funds focus on South Korean equities provides exposure to a market with strong technological and industrial sectors, though it also carries risks associated with geopolitical tensions and currency fluctuations.

3-Month Forecast: Based on the technical and fundamental data, FLKR is expected to face headwinds in the near term, with the 20-day SMA below the 50-day SMA and the 200-day SMA declining. The ATR suggests limited volatility, which may lead to a sideways trading range. However, the moderate AUM and the funds exposure to South Koreas industrial and technology sectors could provide support if global risk sentiment improves. Support is likely to be tested near the $18 level, while resistance may emerge at the 50-day SMA of 18.66. Overall, the outlook is cautiously bearish, with potential for stabilization if broader market conditions improve.