Franklin FTSE China ETF(AMEX:FLCH)

FLCH offers representative coverage of the Chinese equity market. As with any fund providing exposure to Chinese equities, it is important to consider which shares are being used. As such, FLCH provides exposure to Chinese large- and mid-cap stocks as represented by H-Shares, B-Shares, and A-shares as well as N-Shares, Red-Chips, P-Chips and S-Chips. FTSE Russell determines eligible securities for the underlying index based on measures such as the companys place of incorporation, quality of investor protection, tax domicile, location of headquarters/factors of production, and currency denomination. The fund selects and weights its constituents by market-cap, employing a pure-vanilla strategy. Holdings are then constrained quarterly so that no individual constituent has a weight greater than 20% and the aggregate weight of constituents with over 4.5% allocation is capped at 48% weight of the portfolio. The index is reviewed semi-annually.