FLQM tracks an index of US-listed mid-cap stocks that are selected and weighted based on four different factors: quality, value, momentum, and low volatility. By tilting toward these factors, the index attempts to achieve a lower level of risk and higher risk-adjusted performance than the broader mid-cap equity market. Quality and value are assessed using fundamental metrics: ROE, earnings variability, and leverage ratios for quality, and earnings yield, dividend yield, and book-to-price ratios for value. Meanwhile, momentum (6- and 12-month risk-adjusted price movements) and volatility (beta) embrace technical attributes. Although FLQM incorporates all four factors, the portfolio emphasizes fundamental rather than technical components, with quality and value given 50% and 30% weight, respectively, while momentum and volatility claim only 10% each. The index undergoes semi-annual rebalance and reconstitution with the weights of each company capped at 1%. Prior to Aug. 1, 2022, the fund traded under the name Franklin LibertyQ U.S. mid-cap Equity ETF.