FLCOFranklin Investment Grade Corporate ETF

Get income Stay safe9y track recordRanked #29 of 340 in this goal

A high level of current income while seeking preservation of capital.

By Franklin Templeton Investments · Launched 2016

Annual Cost

0.35%

#1,706 of 5,562 · low cost

Fund Size

$581M

#1,448 of 5,562 · large

Dividend YieldGoal

4.63%

Track Record

9 years

#1,489 of 5,562 · established

Performance

Total-return NAV · USD

Growth of $10,000

$10,507+5.1%

Total-return NAV, USD. Net of fund fees, before tax.

Classification

How Beacon categorizes this fund

Asset class

Fixed income

Region

North america

Strategy

Active selection

What it actually holds

By weight

Concentration

Top 10 holdings = 12.9% of fund✓ well diversified

GOLDMAN SACHS GROUP INC

1.8%

BANK OF AMERICA CORP

1.3%

WELLS FARGO & COMPANY

1.3%

AT&T INC

1.3%

MORGAN STANLEY

1.3%

JPMORGAN CHASE & CO

1.2%

BANK OF AMERICA CORP

1.2%

T-MOBILE USA INC

1.2%

CITIBANK NA

1.2%

JPMORGAN CHASE & CO

1.2%

Asset allocation

Bonds

99.2%

Cash

0.5%

Preferred

0.3%

Risk profile

Last 12 months · Sharpe & Sortino need 3+ years

Volatility (1Y)

4.4%Low

Year-on-year price swings

Max drawdown

-22.7%Moderate

Worst peak-to-trough loss

Sharpe (3Y)

0.29Below average

Sortino (3Y)

0.41Moderate downside risk

Bond profile

Duration

4.6 years

Avg maturity

9.5 years

Credit ratings

US Government

0.1%

6.8%

50.0%

BBB

42.6%

0.6%

Where to buy

Listing

Exchange: NYSE Arca

Full fund details

Objective: A high level of current income while seeking preservation of capital.
Strategy: Invests primarily in investment grade corporate debt securities, rated BBB- or better, and may use derivatives for exposure. Focuses on credit quality to reduce risk and preserve capital. May invest in convertible, preferred securities, and U.S. Treasury securities, with up to 40% in foreign securities and 15% in non-U.S. dollar securities. Uses top-down and bottom-up analysis for investment selection, considering macroeconomic trends and issuer conditions, and may utilize quantitative models for portfolio construction.
Inception date: October 3, 2016
Fund family: Franklin Templeton Investments

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Our take

Structural notes on how this fund behaves. Read our guide on the 6 warning signs.

Closet indexing

Warning

Closet indexer — active fees, passive behavior

This fund charges active-management fees but closely tracks its benchmark index. You may be paying a premium for active management that does not meaningfully exist — a combination of high R² versus the benchmark, low tracking error, and a TER sitting well above the passive peer-group median.

R²: 96.0%
TE: 1.9%
Beta: 0.81
Fee: 5× 0.07%

Source: Cremers & Petajisto (2009) · Amihud & Goyenko (2013) · ESMA (2016)

Why we flagged this: strategy=active_selection + high_r_squared+low_tracking_error+fee_premium

Educational analysis of structural product characteristics. Not investment advice. Always read the fund prospectus and consult a qualified advisor before investing. More

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Data updated on 2026-06-20