(FTSD) Franklin Liberty Short - Ratings and Ratios

The Franklin Liberty Short Duration U.S. Government ETF (FTSD) is an exchange-traded fund that primarily invests in U.S. government securities, aiming to provide liquidity and preserve capital. Under normal market conditions, the fund allocates at least 80% of its net assets to securities issued or guaranteed by the U.S. government, its agencies, or instrumentalities.

The fund employs a short-duration strategy, which typically involves investing in securities with shorter maturities to minimize interest rate risk. To achieve its investment objective, FTSD may utilize interest rate-related derivative transactions, such as U.S. Treasury futures contracts and options on interest rate/bond futures, to manage its exposure to interest rate fluctuations.

From a performance perspective, key metrics to monitor for FTSD include its yield, duration, and credit quality. Given its focus on U.S. government securities, the funds credit quality is likely to be high. The funds yield can be compared to other short-duration government ETFs to assess its relative attractiveness. Additionally, the funds duration can be evaluated to determine its sensitivity to interest rate changes.

Some key performance indicators (KPIs) to track for FTSD include its expense ratio, tracking error, and Sharpe ratio. The expense ratio can help investors understand the funds operating costs, while the tracking error can indicate the funds ability to replicate its underlying index. The Sharpe ratio can provide insight into the funds risk-adjusted returns, allowing investors to evaluate its performance relative to its volatility.