FLAU ETF: What Is It? A Complete Guide to Returns, Expense Ratio, Holdings, and Alternative ETFs
The Franklin FTSE Australia ETF (FLAU) is a single-country ETF that invests in large- and mid-cap Australian stocks in proportion to their market capitalization. Key selection criteria are the outlook for Australia's materials- and financials-heavy market, a low expense ratio, and dividend exposure, and it is often compared with EWA and similar funds.
SubscribeWhat Is the Franklin FTSE Australia ETF?
This single-country ETF tracks the FTSE Australia Index and holds large- and mid-cap stocks listed on the Australian stock market in proportion to their market capitalization. It directly reflects the structure of the Australian market, which carries heavy weightings in materials and financials.
It suits long-term investors who want diversified exposure to the single Australian market and are considering an international country allocation centered on the resources and financials sectors.
It is a passive (index-tracking) ETF managed by Franklin Templeton.
How Does the Franklin FTSE Australia ETF Invest?
| Item | Details |
|---|---|
| Tracked Index | FTSE Australia Index |
| Management Style | Passive (index tracking) |
| Rebalancing Frequency | Quarterly |
| Dividend Frequency | Semiannual |
| Issuer | Franklin Templeton |
| Expense Ratio | 0.09% |
The fund holds Australian large- and mid-cap stocks on a market-cap-weighted basis and tracks the performance of the broad Australian market. With heavy weightings in resources and materials as well as in bank-centered financials, it is sensitive to the commodity cycle and the Australian economy. Changes to the index composition are reflected through regular rebalancing.
- Single-country exposure with a concentrated allocation to the Australian market
- Part of a low-cost country ETF series
Franklin FTSE Australia ETF Size and Costs (AUM and Management Fee)
Assets under management (AUM) stand at $221.9M, and the expense ratio is 0.09% per year.
Its lower expense ratio is a strength compared with EWA, which offers the same Australian exposure, though trading liquidity may differ.
Franklin FTSE Australia ETF Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangeThe Australian market has tended to rise and fall with commodity prices, bank earnings, and Asian demand. The resource cycle and currency movements both affect performance, and the short-term direction is influenced by global risk appetite.
Single-country ETFs see fund inflows and outflows depending on demand for international country allocation. Interest in Australia-focused products tends to grow when commodity strength or expectations of Asian growth come to the fore, while money may flow out during risk-averse periods.
Franklin FTSE Australia ETF Strengths and Weaknesses
Its strengths are a low expense ratio and core exposure to the Australian market, while the concentration in materials and financials and currency volatility are cited as weaknesses.
💪 Key Strengths
⚠️ Points to Watch
Franklin FTSE Australia ETF Alternatives and Related Products
Direct substitutes for single-country Australian exposure include EWA, which tracks the MSCI Australia Index, allowing you to compare index methodology, expense ratio, and liquidity. The EWC, EWU, and EWG shown in the table are single-country ETFs for other developed markets such as Canada, the United Kingdom, and Germany, and serve as comparison candidates for investors looking to allocate across countries.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 EWC | iShares MSCI Canada ETF | $60.13 | -0.6% | $7.6B | 0.50% | 1.25% | +16.2% |
 EWU | iShares MSCI United Kingdom ETF | $47.76 | -0.1% | $3.7B | 0.50% | 3.13% | +9.8% |
 EWL | iShares MSCI Switzerland ETF | $64.90 | +0.0% | $3.1B | 0.50% | 1.68% | +11.8% |
 EWP | iShares MSCI Spain ETF | $59.63 | -0.5% | $2.1B | 0.50% | 2.79% | +13.5% |
 EWG | iShares MSCI Germany ETF | $42.81 | -0.5% | $2.1B | 0.49% | 1.94% | +2.7% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
| BHP | BHP Group Limited ADR | 0.24% | $80.51 | -1.9% | $204.6B | 20.8 | 3.66% |
| WDS | Woodside Energy Group Ltd ADR | 0.05% | $21.24 | +0.1% | $40.3B | 13.2 | 6.61% |
| RIO | Rio Tinto plc ADR | 0.05% | $83.28 | -2.0% | $104.5B | 11.3 | 5.7% |
 JHX | James Hardie Industries plc | 0.02% | $27.56 | -3.1% | $16.0B | 45.7 | - |
 APA | APA Corp | 0.01% | $47.66 | +2.0% | $16.0B | 7.8 | 2.12% |
Franklin FTSE Australia ETF Investor Checkpoints
Here are the points to review before investing in FLAU. Checking in advance the Australian market's characteristic concentration in materials and financials, the Australian dollar exchange rate, the fee structure, and trading liquidity will give you a clearer understanding of the nature of single-country exposure.
| Checkpoint | What to Check | Current Status |
|---|---|---|
| 💵 Expense Ratio | Check cumulative costs over a long holding period | Low |
| 🏦 Sector Composition | Check the degree of concentration in materials and financials | Concentrated |
| 💱 Currency | Check the impact of the Australian dollar exchange rate | Not hedged |
| 💧 Liquidity | Check trading volume and bid-ask spread | Needs review |
Concentration in materials and financials and fluctuations in the Australian dollar are the main drivers of short-term volatility. The fund may underperform relatively during periods of falling commodity prices or slowing Asian demand.
It is a suitable choice for long-term investors who want to diversify into the Australian market at a low cost. If you need to compare methodology and liquidity, it is advisable to review EWA and similar funds alongside it.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
This article reflects information as of July 2, 2026.
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