What Is the FLSP ETF? A Complete Guide to Returns, Fees, Holdings, and Alternative ETFs
An alternative investment ETF that uses long/short strategies across multiple asset classes and style factor analysis to pursue absolute returns even amid market volatility.
SubscribeWhat Is This ETF?
It uses a quant-based multi-asset long/short strategy to invest across global equity, bond, commodity, and foreign exchange markets. The portfolio is built through a multidimensional analysis of quality, value, momentum, and carry factors.
It suits investors who want an independent source of returns that does not depend on the direction of the stock or bond markets, and who want to diversify their overall portfolio.
It is an actively managed ETF launched in 2019 by Franklin Templeton.
How Does It Invest?
| Item | Details |
|---|---|
| Management Style | Active (quant long/short) |
| Investment Targets | Stocks, bonds, commodities, currencies, and derivatives |
| Key Factors | Quality, value, momentum, carry |
| Target Volatility | Stable, medium-risk level |
| Expense Ratio | 0.65% |
It combines a bottom-up equity long/short approach with a top-down risk premium strategy. By making active use of futures and derivatives, it buys assets where positive factors are expected and sells assets where negative factors are strong, aiming for market-neutral performance.
- Systematic quant management using four style factors
- A broad investment scope spanning diverse asset classes around the world
Size and Costs
Assets under management (AUM) stand at $1.1B, and the expense ratio is 0.65% per year.
Unlike CGBL or NTSX, which blend stocks and bonds, it is clearly differentiated by pursuing returns regardless of market direction through a long/short strategy, and its fee level remains in line with the average for its category.
Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangeIn periods of high interest rate volatility and an uncertain market direction, its low correlation with traditional assets stood out, and it maintained a steady trajectory. The quant model's performance was especially notable in phases when particular style factors were strong.
Demand for alternative investment assets continues to flow in, led by institutional investors and high-net-worth individuals who want to diversify their portfolios. It is also used as a risk management tool in volatile markets.
Strengths and Weaknesses
It targets steady returns regardless of market direction, but risks remain, including the limits of quant models and the complexity of managing derivatives.
💪 Key Strengths
⚠️ Points to Watch
Alternative ETFs and Related Products
If you prefer a strategic hedge fund style, CTA and ALLW from the table are direct comparisons. If your focus is downside protection, DRSK is also worth considering. Meanwhile, if you want a simpler asset allocation structure, a product that allocates to real assets such as RAAX could be an alternative.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 IALT | iShares Systematic Alternatives Active ETF | $29.47 | -1.6% | $8.0B | 0.99% | 0.27% | - |
 CGBL | Capital Group Core Balanced ETF | $36.69 | -1.1% | $8.0B | 0.33% | 1.97% | +5.3% |
 ALLW | State Street Bridgewater All Weather ETF | $29.06 | -0.5% | $1.8B | 0.85% | 4.42% | +1.3% |
 RAAX | VanEck Real Assets ETF | $39.63 | -1.6% | $1.4B | 0.55% | 2.06% | +14.5% |
 RLY | State Street Multi-Asset Real Return ETF | $37.38 | +0.0% | $1.4B | 0.50% | 2.88% | +20.6% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
| MU | Micron Technology Inc | 0.02% | $884.74 | -5.3% | $1.00T | 11.9 | 0.08% |
| GOOGL | Alphabet Inc | 0.04% | $279.84 | -1.4% | $3.41T | 14.6 | 0.31% |
| AMAT | Applied Materials Inc | 0.02% | $390.09 | -7.5% | $309.6B | 33.6 | 0.5% |
| LRCX | Lam Research Corp | 0.02% | $239.11 | -6.0% | $298.7B | 35.6 | 0.55% |
| GE | GE Aerospace | 0.01% | $301.80 | -3.6% | $311.9B | 34.9 | 0.6% |
| MSFT | Microsoft Corp | 0.01% | $521.91 | -1.6% | $3.88T | 27.3 | 0.74% |
| CSCO | Cisco Systems Inc | 0.01% | $104.51 | -3.8% | $412.0B | 31.4 | 1.63% |
| C | Citigroup Inc | 0.01% | $122.64 | -2.5% | $205.7B | 12.0 | 2.09% |
| PLTR | Palantir Technologies Inc | 0.01% | $184.11 | -6.3% | $442.4B | 156.9 | - |
Investor Checkpoints
FLSP can be more than a simple investment: it can serve as a key tool for completing the "structural diversification" of a portfolio. Before investing, we recommend carefully reviewing the strategy's characteristics and the current market environment using the checklist below.
| Checkpoint | What to Check | Current Status |
|---|---|---|
| 📊 Factor Performance | Whether the environment is one in which style factors such as quality and value are working | Needs review |
| 💵 Expense Ratio | Review the cost of active management under a blended strategy | Average |
| 📉 Market Correlation | Check the actual correlation figures against your existing holdings | Remains low |
| ⚖️ Risk Management | Whether the target volatility level is being maintained stably | Normal |
Given the nature of long/short strategies, it may not keep pace with index gains in a bull market. It therefore suits long-term investors who aim for risk diversification and stable alpha generation rather than maximizing returns.
It is an efficient alternative investment tool that fills gaps in a portfolio that are hard to fill with traditional assets alone. It is recommended for investors who want to ride out market turbulence through a systematic quant strategy.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
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