UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-23124
Franklin Templeton ETF Trust
(Exact name of registrant as specified in charter)
One Franklin Parkway, San Mateo, CA 94403-1906
(Address of principal executive offices) (Zip code)
Alison Baur
One Franklin Parkway
San Mateo, CA 94403-1096
(Name and address of agent for service)
Registrant’s telephone number, including area code: 650-312-2000
Date of fiscal year end: March 31, 2024
Date of reporting period: September 30, 2024
| ITEM 1. | REPORT TO STOCKHOLDERS. |
| a) | The following is a copy of the report transmitted to shareholders pursuant to Rule30e-1 under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30e-1.) |
| b) | Include a copy of each notice transmitted to stockholders in reliance on Rule 30e-3 under the Act (17 CFR 270.30e-3) that contains disclosures specified by paragraph (c)(3) of that rule. |
Not applicable.
The Semi-Annual Report to Stockholders is filed herewith.
| | |
Franklin Emerging Market Core Dividend Tilt Index ETF | |
DIEM | NYSE Arca, Inc.NYSEArca |
| Semi-Annual Shareholder Report | September 30, 2024 |
|
This semi-annual shareholder report contains important information about Franklin Emerging Market Core Dividend Tilt Index ETF for the period April 1, 2024, to September 30, 2024.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)
| | |
Fund Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment*,† |
| Franklin Emerging Market Core Dividend Tilt Index ETF | $10 | 0.19% |
| * | Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher. |
KEY FUND STATISTICS (as of September 30, 2024)
| |
Total Net Assets | $14,308,945 |
Total Number of Portfolio Holdings* | 578 |
Portfolio Turnover Rate | 28.82% |
| * | Does not include derivatives, except purchased options, if any. |
WHAT DID THE FUND INVEST IN? (as of September 30, 2024)
Portfolio Composition*,† (% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
| † | Certain categories may represent less than 0.1%. |
| |
| WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? |
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| • prospectus • proxy voting information • financial information • holdings • tax information |
| Franklin Emerging Market Core Dividend Tilt Index ETF | PAGE 1 | DIEM-STSR-1124 |
27.325.09.18.66.55.55.25.04.12.61.10.0
| | |
Franklin International Core Dividend Tilt Index ETF | |
DIVI | NYSE Arca, Inc.NYSEArca |
| Semi-Annual Shareholder Report | September 30, 2024 |
|
This semi-annual shareholder report contains important information about Franklin International Core Dividend Tilt Index ETF for the period April 1, 2024, to September 30, 2024.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)
| | |
Fund Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment*,† |
| Franklin International Core Dividend Tilt Index ETF | $5 | 0.09% |
| * | Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher. |
KEY FUND STATISTICS (as of September 30, 2024)
| |
Total Net Assets | $1,001,483,104 |
Total Number of Portfolio Holdings* | 467 |
Portfolio Turnover Rate | 14.78% |
| * | Does not include derivatives, except purchased options, if any. |
WHAT DID THE FUND INVEST IN? (as of September 30, 2024)
| |
Portfolio Composition* | % of Total Investments |
Financials | 23.6% |
Industrials | 12.9% |
Health Care | 11.8% |
Consumer Discretionary | 11.3% |
Information Technology | 9.6% |
Materials | 7.2% |
Consumer Staples | 7.0% |
Utilities | 5.0% |
Communication Services | 4.7% |
Energy | 3.8% |
Real Estate | 3.0% |
Short-Term Investments | 0.1% |
| |
Geographic Composition* | % of Total Investments |
Europe | 60.2% |
Asia | 27.5% |
Australia & New Zealand | 11.0% |
North America | 0.7% |
Middle East & Africa | 0.5% |
Short-Term Investments | 0.1% |
| * | Does not include derivatives, except purchased options, if any. |
| Franklin International Core Dividend Tilt Index ETF | PAGE 1 | DIVI-STSR-1124 |
| |
| WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? |
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| • prospectus • proxy voting information • financial information • holdings • tax information |
| Franklin International Core Dividend Tilt Index ETF | PAGE 2 | DIVI-STSR-1124 |
| | |
Franklin U.S. Core Dividend Tilt Index ETF | |
UDIV | NYSE Arca, Inc.NYSEArca |
| Semi-Annual Shareholder Report | September 30, 2024 |
|
This semi-annual shareholder report contains important information about Franklin U.S. Core Dividend Tilt Index ETF for the period April 1, 2024, to September 30, 2024.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)
| | |
Fund Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment*,† |
| Franklin U.S. Core Dividend Tilt Index ETF | $3 | 0.06% |
| * | Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher. |
KEY FUND STATISTICS (as of September 30, 2024)
| |
Total Net Assets | $35,702,668 |
Total Number of Portfolio Holdings* | 283 |
Portfolio Turnover Rate | 7.75% |
| * | Does not include derivatives, except purchased options, if any. |
WHAT DID THE FUND INVEST IN? (as of September 30, 2024)
Portfolio Composition*,† (% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
| † | Certain categories may represent less than 0.1%. |
| |
| WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? |
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| • prospectus • proxy voting information • financial information • holdings • tax information |
| Franklin U.S. Core Dividend Tilt Index ETF | PAGE 1 | UDIV-STSR-1124 |
33.811.510.38.88.26.35.45.14.74.21.70.0
| | |
Franklin U.S. Large Cap Multifactor Index ETF | |
FLQL | Cboe BZX Exchange, Inc.CboeBZX |
| Semi-Annual Shareholder Report | September 30, 2024 |
|
This semi-annual shareholder report contains important information about Franklin U.S. Large Cap Multifactor Index ETF for the period April 1, 2024, to September 30, 2024.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)
| | |
Fund Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment*,† |
| Franklin U.S. Large Cap Multifactor Index ETF | $8 | 0.15% |
| * | Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher. |
KEY FUND STATISTICS (as of September 30, 2024)
| |
Total Net Assets | $1,358,514,639 |
Total Number of Portfolio Holdings* | 215 |
Portfolio Turnover Rate | 27.63% |
| * | Does not include derivatives, except purchased options, if any. |
WHAT DID THE FUND INVEST IN? (as of September 30, 2024)
Portfolio Composition* (% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
| |
| WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? |
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| • prospectus • proxy voting information • financial information • holdings • tax information |
| Franklin U.S. Large Cap Multifactor Index ETF | PAGE 1 | FLQL-STSR-1124 |
33.615.310.79.79.58.36.02.61.61.41.00.3
| | |
Franklin U.S. Mid Cap Multifactor Index ETF | |
FLQM | Cboe BZX Exchange, Inc.CboeBZX |
| Semi-Annual Shareholder Report | September 30, 2024 |
|
This semi-annual shareholder report contains important information about Franklin U.S. Mid Cap Multifactor Index ETF for the period April 1, 2024, to September 30, 2024.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)
| | |
Fund Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment*,† |
| Franklin U.S. Mid Cap Multifactor Index ETF | $15 | 0.30% |
| * | Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher. |
KEY FUND STATISTICS (as of September 30, 2024)
| |
Total Net Assets | $1,037,146,231 |
Total Number of Portfolio Holdings* | 206 |
Portfolio Turnover Rate | 12.12% |
| * | Does not include derivatives, except purchased options, if any. |
WHAT DID THE FUND INVEST IN? (as of September 30, 2024)
Portfolio Composition* (% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
| |
| WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? |
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| • prospectus • proxy voting information • financial information • holdings • tax information |
| Franklin U.S. Mid Cap Multifactor Index ETF | PAGE 1 | FLQM-STSR-1124 |
23.119.212.311.810.26.94.74.64.02.01.10.1
| | |
Franklin U.S. Small Cap Multifactor Index ETF | |
FLQS | Cboe BZX Exchange, Inc.CboeBZX |
| Semi-Annual Shareholder Report | September 30, 2024 |
|
This semi-annual shareholder report contains important information about Franklin U.S. Small Cap Multifactor Index ETF for the period April 1, 2024, to September 30, 2024.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)
| | |
Fund Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment*,† |
| Franklin U.S. Small Cap Multifactor Index ETF | $18 | 0.35% |
| * | Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher. |
KEY FUND STATISTICS (as of September 30, 2024)
| |
Total Net Assets | $42,328,976 |
Total Number of Portfolio Holdings* | 494 |
Portfolio Turnover Rate | 11.53% |
| * | Does not include derivatives, except purchased options, if any. |
WHAT DID THE FUND INVEST IN? (as of September 30, 2024)
Portfolio Composition*,† (% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
| † | Certain categories may represent less than 0.1%. |
| |
| WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? |
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| • prospectus • proxy voting information • financial information • holdings • tax information |
| Franklin U.S. Small Cap Multifactor Index ETF | PAGE 1 | FLQS-STSR-1124 |
23.615.614.311.18.46.75.04.84.23.92.40.0
| | |
Franklin Disruptive Commerce ETF | |
BUYZ | Cboe BZX Exchange, Inc.CboeBZX |
| Semi-Annual Shareholder Report | September 30, 2024 |
|
This semi-annual shareholder report contains important information about Franklin Disruptive Commerce ETF for the period April 1, 2024, to September 30, 2024.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)
| | |
Fund Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment† |
| Franklin Disruptive Commerce ETF | $26 | 0.50% |
KEY FUND STATISTICS (as of September 30, 2024)
| |
Total Net Assets | $10,309,728 |
Total Number of Portfolio Holdings* | 47 |
Portfolio Turnover Rate | 1.79% |
| * | Does not include derivatives, except purchased options, if any. |
WHAT DID THE FUND INVEST IN? (as of September 30, 2024)
Portfolio Composition* (% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
| |
| WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? |
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| • prospectus • proxy voting information • financial information • holdings • tax information |
| Franklin Disruptive Commerce ETF | PAGE 1 | BUYZ-STSR-1124 |
37.522.013.69.07.87.11.61.4
| | |
Franklin Dynamic Municipal Bond ETF | |
FLMI | NYSE Arca, Inc.NYSEArca |
| Semi-Annual Shareholder Report | September 30, 2024 |
|
This semi-annual shareholder report contains important information about Franklin Dynamic Municipal Bond ETF for the period April 1, 2024, to September 30, 2024.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)
| | |
Fund Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment† |
| Franklin Dynamic Municipal Bond ETF | $15 | 0.30% |
KEY FUND STATISTICS (as of September 30, 2024)
| |
Total Net Assets | $323,020,276 |
Total Number of Portfolio Holdings* | 604 |
Portfolio Turnover Rate | 29.29% |
| * | Does not include derivatives, except purchased options, if any. |
WHAT DID THE FUND INVEST IN? (as of September 30, 2024)
Portfolio Composition* (% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
| |
| WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? |
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| • prospectus • proxy voting information • financial information • holdings • tax information |
| Franklin Dynamic Municipal Bond ETF | PAGE 1 | FLMI-STSR-1124 |
26.818.915.413.97.97.82.81.51.41.21.21.00.2
| | |
Franklin Exponential Data ETF | |
XDAT | Cboe BZX Exchange, Inc.CboeBZX |
| Semi-Annual Shareholder Report | September 30, 2024 |
|
This semi-annual shareholder report contains important information about Franklin Exponential Data ETF for the period April 1, 2024, to September 30, 2024.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)
| | |
Fund Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment*,† |
| Franklin Exponential Data ETF | $25 | 0.49% |
| * | Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher. |
KEY FUND STATISTICS (as of September 30, 2024)
| |
Total Net Assets | $5,935,700 |
Total Number of Portfolio Holdings* | 42 |
Portfolio Turnover Rate | 2.95% |
| * | Does not include derivatives, except purchased options, if any. |
WHAT DID THE FUND INVEST IN? (as of September 30, 2024)
Portfolio Composition* (% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
| |
| WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? |
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| • prospectus • proxy voting information • financial information • holdings • tax information |
| Franklin Exponential Data ETF | PAGE 1 | XDAT-STSR-1124 |
67.216.56.66.11.52.1
| | |
Franklin Focused Growth ETF | |
FFOG | Cboe BZX Exchange, Inc.CboeBZX |
| Semi-Annual Shareholder Report | September 30, 2024 |
|
This semi-annual shareholder report contains important information about Franklin Focused Growth ETF for the period April 1, 2024, to September 30, 2024.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)
| | |
Fund Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment*,† |
| Franklin Focused Growth ETF | $29 | 0.55% |
| * | Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher. |
KEY FUND STATISTICS (as of September 30, 2024)
| |
Total Net Assets | $124,869,552 |
Total Number of Portfolio Holdings* | 28 |
Portfolio Turnover Rate | 5.96% |
| * | Does not include derivatives, except purchased options, if any. |
WHAT DID THE FUND INVEST IN? (as of September 30, 2024)
Portfolio Composition* (% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
| |
| WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? |
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| • prospectus • proxy voting information • financial information • holdings • tax information |
| Franklin Focused Growth ETF | PAGE 1 | FFOG-STSR-1124 |
48.713.213.010.45.25.02.71.8
| | |
Franklin Genomic Advancements ETF | |
HELX | Cboe BZX Exchange, Inc.CboeBZX |
| Semi-Annual Shareholder Report | September 30, 2024 |
|
This semi-annual shareholder report contains important information about Franklin Genomic Advancements ETF for the period April 1, 2024, to September 30, 2024.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)
| | |
Fund Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment† |
| Franklin Genomic Advancements ETF | $25 | 0.50% |
KEY FUND STATISTICS (as of September 30, 2024)
| |
Total Net Assets | $9,720,388 |
Total Number of Portfolio Holdings* | 60 |
Portfolio Turnover Rate | 5.37% |
| * | Does not include derivatives, except purchased options, if any. |
WHAT DID THE FUND INVEST IN? (as of September 30, 2024)
Portfolio Composition* (% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
| |
| WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? |
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| • prospectus • proxy voting information • financial information • holdings • tax information |
| Franklin Genomic Advancements ETF | PAGE 1 | HELX-STSR-1124 |
95.52.32.00.2
| | |
Franklin High Yield Corporate ETF | |
FLHY | Cboe BZX Exchange, Inc.CboeBZX |
| Semi-Annual Shareholder Report | September 30, 2024 |
|
This semi-annual shareholder report contains important information about Franklin High Yield Corporate ETF for the period April 1, 2024, to September 30, 2024.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)
| | |
Fund Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment† |
| Franklin High Yield Corporate ETF | $21 | 0.40% |
KEY FUND STATISTICS (as of September 30, 2024)
| |
Total Net Assets | $573,901,475 |
Total Number of Portfolio Holdings* | 250 |
Portfolio Turnover Rate | 13.05% |
| * | Does not include derivatives, except purchased options, if any. |
WHAT DID THE FUND INVEST IN? (as of September 30, 2024)
Portfolio Composition*,† (% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
| † | Certain categories may represent less than 0.1%. |
| |
| WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? |
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| • prospectus • proxy voting information • financial information • holdings • tax information |
| Franklin High Yield Corporate ETF | PAGE 1 | FLHY-STSR-1124 |
95.31.50.03.2
| | |
Franklin Income Equity Focus ETF | |
INCE | NYSE Arca, Inc.NYSEArca |
| Semi-Annual Shareholder Report | September 30, 2024 |
|
This semi-annual shareholder report contains important information about Franklin Income Equity Focus ETF (previously known as Franklin U.S. Low Volatility ETF) for the period April 1, 2024, to September 30, 2024.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)
| | |
Fund Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment† |
| Franklin Income Equity Focus ETF | $15 | 0.29% |
KEY FUND STATISTICS (as of September 30, 2024)
| |
Total Net Assets | $96,117,012 |
Total Number of Portfolio Holdings* | 73 |
Portfolio Turnover Rate | 5.92% |
| * | Does not include derivatives, except purchased options, if any. |
WHAT DID THE FUND INVEST IN? (as of September 30, 2024)
Portfolio Composition* (% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
| |
| WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? |
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| • prospectus • proxy voting information • financial information • holdings • tax information |
| Franklin Income Equity Focus ETF | PAGE 1 | INCE-STSR-1124 |
32.011.010.37.67.46.16.15.85.04.73.10.9
| | |
Franklin Income Focus ETF | |
INCM | NYSE Arca, Inc.NYSEArca |
| Semi-Annual Shareholder Report | September 30, 2024 |
|
This semi-annual shareholder report contains important information about Franklin Income Focus ETF for the period April 1, 2024, to September 30, 2024.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)
| | |
Fund Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment† |
| Franklin Income Focus ETF | $20 | 0.38% |
KEY FUND STATISTICS (as of September 30, 2024)
| |
Total Net Assets | $331,089,654 |
Total Number of Portfolio Holdings* | 225 |
Portfolio Turnover Rate | 14.56% |
| * | Does not include derivatives, except purchased options, if any. |
WHAT DID THE FUND INVEST IN? (as of September 30, 2024)
Portfolio Composition* (% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
| |
| WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? |
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| • prospectus • proxy voting information • financial information • holdings • tax information |
| Franklin Income Focus ETF | PAGE 1 | INCM-STSR-1124 |
41.230.116.411.21.1
| | |
Franklin Intelligent Machines ETF | |
IQM | Cboe BZX Exchange, Inc.CboeBZX |
| Semi-Annual Shareholder Report | September 30, 2024 |
|
This semi-annual shareholder report contains important information about Franklin Intelligent Machines ETF for the period April 1, 2024, to September 30, 2024.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)
| | |
Fund Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment† |
| Franklin Intelligent Machines ETF | $26 | 0.50% |
KEY FUND STATISTICS (as of September 30, 2024)
| |
Total Net Assets | $25,309,849 |
Total Number of Portfolio Holdings* | 56 |
Portfolio Turnover Rate | 5.23% |
| * | Does not include derivatives, except purchased options, if any. |
WHAT DID THE FUND INVEST IN? (as of September 30, 2024)
Portfolio Composition* (% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
| |
| WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? |
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| • prospectus • proxy voting information • financial information • holdings • tax information |
| Franklin Intelligent Machines ETF | PAGE 1 | IQM-STSR-1124 |
75.911.58.73.9
| | |
Franklin International Aggregate Bond ETF | |
FLIA | Cboe BZX Exchange, Inc.CboeBZX |
| Semi-Annual Shareholder Report | September 30, 2024 |
|
This semi-annual shareholder report contains important information about Franklin International Aggregate Bond ETF for the period April 1, 2024, to September 30, 2024.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)
| | |
Fund Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment† |
| Franklin International Aggregate Bond ETF | $13 | 0.25% |
KEY FUND STATISTICS (as of September 30, 2024)
| |
Total Net Assets | $583,559,826 |
Total Number of Portfolio Holdings* | 84 |
Portfolio Turnover Rate | 11.92% |
| * | Does not include derivatives, except purchased options, if any. |
WHAT DID THE FUND INVEST IN? (as of September 30, 2024)
| |
Portfolio Composition* | % of Total Investments |
Foreign Government and Agency Securities | 97.0% |
Corporate Bonds & Notes | 2.7% |
Short-Term Investments | 0.3% |
| |
Geographic Composition* | % of Total Investments |
Europe | 46.3% |
Asia | 37.2% |
Supranationals | 6.0% |
North America | 5.2% |
Australia & New Zealand | 3.0% |
Latin America & Caribbean | 1.1% |
Middle East & Africa | 0.9% |
Short-Term Investments | 0.3% |
| * | Does not include derivatives, except purchased options, if any. |
| |
| WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? |
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| • prospectus • proxy voting information • financial information • holdings • tax information |
| Franklin International Aggregate Bond ETF | PAGE 1 | FLIA-STSR-1124 |
| | |
Franklin Investment Grade Corporate ETF | |
FLCO | NYSE Arca, Inc.NYSEArca |
| Semi-Annual Shareholder Report | September 30, 2024 |
|
This semi-annual shareholder report contains important information about Franklin Investment Grade Corporate ETF for the period April 1, 2024, to September 30, 2024.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)
| | |
Fund Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment† |
| Franklin Investment Grade Corporate ETF | $18 | 0.35% |
KEY FUND STATISTICS (as of September 30, 2024)
| |
Total Net Assets | $579,919,649 |
Total Number of Portfolio Holdings* | 192 |
Portfolio Turnover Rate | 17.70% |
| * | Does not include derivatives, except purchased options, if any. |
WHAT DID THE FUND INVEST IN? (as of September 30, 2024)
Portfolio Composition* (% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
| |
| WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? |
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| • prospectus • proxy voting information • financial information • holdings • tax information |
| Franklin Investment Grade Corporate ETF | PAGE 1 | FLCO-STSR-1124 |
95.82.31.9
| | |
Franklin Municipal Green Bond ETF | |
FLMB | NYSE Arca, Inc.NYSEArca |
| Semi-Annual Shareholder Report | September 30, 2024 |
|
This semi-annual shareholder report contains important information about Franklin Municipal Green Bond ETF for the period April 1, 2024, to September 30, 2024.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)
| | |
Fund Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment† |
| Franklin Municipal Green Bond ETF | $15 | 0.30% |
KEY FUND STATISTICS (as of September 30, 2024)
| |
Total Net Assets | $107,553,147 |
Total Number of Portfolio Holdings* | 133 |
Portfolio Turnover Rate | 14.45% |
| * | Does not include derivatives, except purchased options, if any. |
WHAT DID THE FUND INVEST IN? (as of September 30, 2024)
Portfolio Composition* (% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
| |
| WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? |
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| • prospectus • proxy voting information • financial information • holdings • tax information |
| Franklin Municipal Green Bond ETF | PAGE 1 | FLMB-STSR-1124 |
16.015.914.213.510.99.96.95.94.81.80.10.1
| | |
Franklin Senior Loan ETF | |
FLBL | Cboe BZX Exchange, Inc.CboeBZX |
| Semi-Annual Shareholder Report | September 30, 2024 |
|
This semi-annual shareholder report contains important information about Franklin Senior Loan ETF for the period April 1, 2024, to September 30, 2024.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)
| | |
Fund Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment† |
| Franklin Senior Loan ETF | $23 | 0.45% |
KEY FUND STATISTICS (as of September 30, 2024)
| |
Total Net Assets | $586,516,720 |
Total Number of Portfolio Holdings* | 271 |
Portfolio Turnover Rate | 7.92% |
| * | Does not include derivatives, except purchased options, if any. |
WHAT DID THE FUND INVEST IN? (as of September 30, 2024)
Portfolio Composition* (% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
| |
| WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? |
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| • prospectus • proxy voting information • financial information • holdings • tax information |
| Franklin Senior Loan ETF | PAGE 1 | FLBL-STSR-1124 |
85.04.80.30.19.8
| | |
Franklin Systematic Style Premia ETF | |
FLSP | NYSE Arca, Inc.NYSEArca |
| Semi-Annual Shareholder Report | September 30, 2024 |
|
This semi-annual shareholder report contains important information about Franklin Systematic Style Premia ETF for the period April 1, 2024, to September 30, 2024.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)
| | |
Fund Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment*,† |
| Franklin Systematic Style Premia ETF | $31 | 0.62% |
| * | Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher. |
KEY FUND STATISTICS (as of September 30, 2024)
| |
Total Net Assets | $205,770,210 |
Total Number of Portfolio Holdings* | 336 |
Portfolio Turnover Rate | 58.20% |
| * | Does not include derivatives, except purchased options, if any. |
WHAT DID THE FUND INVEST IN? (as of September 30, 2024)
Portfolio Composition* (% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
| |
| WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? |
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| • prospectus • proxy voting information • financial information • holdings • tax information |
| Franklin Systematic Style Premia ETF | PAGE 1 | FLSP-STSR-1124 |
11.68.57.56.74.54.43.62.62.51.81.245.1
| | |
Franklin U.S. Core Bond ETF | |
FLCB | NYSE Arca, Inc.NYSEArca |
| Semi-Annual Shareholder Report | September 30, 2024 |
|
This semi-annual shareholder report contains important information about Franklin U.S. Core Bond ETF for the period April 1, 2024, to September 30, 2024.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)
| | |
Fund Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment*,† |
| Franklin U.S. Core Bond ETF | $8 | 0.15% |
| * | Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher. |
KEY FUND STATISTICS (as of September 30, 2024)
| |
Total Net Assets | $2,372,441,204 |
Total Number of Portfolio Holdings* | 397 |
Portfolio Turnover Rate | 9.93% |
| * | Does not include derivatives, except purchased options, if any. |
WHAT DID THE FUND INVEST IN? (as of September 30, 2024)
Portfolio Composition* (% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
| |
| WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? |
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| • prospectus • proxy voting information • financial information • holdings • tax information |
| Franklin U.S. Core Bond ETF | PAGE 1 | FLCB-STSR-1124 |
65.529.01.80.80.60.32.0
| | |
Franklin U.S. Treasury Bond ETF | |
FLGV | NYSE Arca, Inc.NYSEArca |
| Semi-Annual Shareholder Report | September 30, 2024 |
|
This semi-annual shareholder report contains important information about Franklin U.S. Treasury Bond ETF for the period April 1, 2024, to September 30, 2024.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)
| | |
Fund Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment*,† |
| Franklin U.S. Treasury Bond ETF | $5 | 0.09% |
| * | Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher. |
KEY FUND STATISTICS (as of September 30, 2024)
| |
Total Net Assets | $886,948,865 |
Total Number of Portfolio Holdings* | 25 |
Portfolio Turnover Rate | 102.49% |
| * | Does not include derivatives, except purchased options, if any. |
WHAT DID THE FUND INVEST IN? (as of September 30, 2024)
Portfolio Composition* (% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
| |
| WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? |
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| • prospectus • proxy voting information • financial information • holdings • tax information |
| Franklin U.S. Treasury Bond ETF | PAGE 1 | FLGV-STSR-1124 |
99.60.4
| | |
Franklin Ultra Short Bond ETF | |
FLUD | NYSE Arca, Inc.NYSEArca |
| Semi-Annual Shareholder Report | September 30, 2024 |
|
This semi-annual shareholder report contains important information about Franklin Ultra Short Bond ETF for the period April 1, 2024, to September 30, 2024.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)
| | |
Fund Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment*,† |
| Franklin Ultra Short Bond ETF | $4 | 0.07% |
| * | Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher. |
KEY FUND STATISTICS (as of September 30, 2024)
| |
Total Net Assets | $6,242,950 |
Total Number of Portfolio Holdings* | 36 |
Portfolio Turnover Rate | 74.68% |
| * | Does not include derivatives, except purchased options, if any. |
WHAT DID THE FUND INVEST IN? (as of September 30, 2024)
Portfolio Composition* (% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
| |
| WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? |
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| • prospectus • proxy voting information • financial information • holdings • tax information |
| Franklin Ultra Short Bond ETF | PAGE 1 | FLUD-STSR-1124 |
67.432.6
| | |
Franklin FTSE Asia Ex Japan ETF | |
FLAX | NYSE Arca, Inc.NYSEArca |
| Semi-Annual Shareholder Report | September 30, 2024 |
|
This semi-annual shareholder report contains important information about Franklin FTSE Asia Ex Japan ETF for the period April 1, 2024, to September 30, 2024.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)
| | |
Fund Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment*,† |
| Franklin FTSE Asia Ex Japan ETF | $10 | 0.19% |
| * | Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher. |
KEY FUND STATISTICS (as of September 30, 2024)
| |
Total Net Assets | $30,317,607 |
Total Number of Portfolio Holdings* | 1,567 |
Portfolio Turnover Rate | 2.64% |
| * | Does not include derivatives, except purchased options, if any. |
WHAT DID THE FUND INVEST IN? (as of September 30, 2024)
Portfolio Composition*,† (% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
| † | Certain categories may represent less than 0.1%. |
| |
| WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? |
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| • prospectus • proxy voting information • financial information • holdings • tax information |
| Franklin FTSE Asia Ex Japan ETF | PAGE 1 | FLAX-STSR-1124 |
23.820.615.28.88.34.94.54.13.83.12.90.0
| | |
Franklin FTSE Australia ETF | |
FLAU | NYSE Arca, Inc.NYSEArca |
| Semi-Annual Shareholder Report | September 30, 2024 |
|
This semi-annual shareholder report contains important information about Franklin FTSE Australia ETF for the period April 1, 2024, to September 30, 2024.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)
| | |
Fund Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment*,† |
| Franklin FTSE Australia ETF | $5 | 0.09% |
| * | Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher. |
KEY FUND STATISTICS (as of September 30, 2024)
| |
Total Net Assets | $59,935,602 |
Total Number of Portfolio Holdings* | 106 |
Portfolio Turnover Rate | 2.28% |
| * | Does not include derivatives, except purchased options, if any. |
WHAT DID THE FUND INVEST IN? (as of September 30, 2024)
Portfolio Composition* (% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
| |
| WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? |
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| • prospectus • proxy voting information • financial information • holdings • tax information |
| Franklin FTSE Australia ETF | PAGE 1 | FLAU-STSR-1124 |
34.421.68.77.06.96.64.13.92.52.31.60.4
| | |
Franklin FTSE Brazil ETF | |
FLBR | NYSE Arca, Inc.NYSEArca |
| Semi-Annual Shareholder Report | September 30, 2024 |
|
This semi-annual shareholder report contains important information about Franklin FTSE Brazil ETF for the period April 1, 2024, to September 30, 2024.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)
| | |
Fund Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment*,† |
| Franklin FTSE Brazil ETF | $9 | 0.19% |
| * | Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher. |
KEY FUND STATISTICS (as of September 30, 2024)
| |
Total Net Assets | $164,862,294 |
Total Number of Portfolio Holdings* | 84 |
Portfolio Turnover Rate | 9.32% |
| * | Does not include derivatives, except purchased options, if any. |
WHAT DID THE FUND INVEST IN? (as of September 30, 2024)
Portfolio Composition* (% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
| |
| WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? |
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| • prospectus • proxy voting information • financial information • holdings • tax information |
| Franklin FTSE Brazil ETF | PAGE 1 | FLBR-STSR-1124 |
25.519.217.110.910.38.72.52.41.90.80.60.1
| | |
Franklin FTSE Canada ETF | |
FLCA | NYSE Arca, Inc.NYSEArca |
| Semi-Annual Shareholder Report | September 30, 2024 |
|
This semi-annual shareholder report contains important information about Franklin FTSE Canada ETF for the period April 1, 2024, to September 30, 2024.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)
| | |
Fund Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment*,† |
| Franklin FTSE Canada ETF | $5 | 0.09% |
| * | Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher. |
KEY FUND STATISTICS (as of September 30, 2024)
| |
Total Net Assets | $412,387,329 |
Total Number of Portfolio Holdings* | 51 |
Portfolio Turnover Rate | 1.88% |
| * | Does not include derivatives, except purchased options, if any. |
WHAT DID THE FUND INVEST IN? (as of September 30, 2024)
Portfolio Composition*,† (% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
| † | Certain categories may represent less than 0.1%. |
| |
| WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? |
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| • prospectus • proxy voting information • financial information • holdings • tax information |
| Franklin FTSE Canada ETF | PAGE 1 | FLCA-STSR-1124 |
41.018.211.39.79.34.53.21.81.00.0
| | |
Franklin FTSE China ETF | |
FLCH | NYSE Arca, Inc.NYSEArca |
| Semi-Annual Shareholder Report | September 30, 2024 |
|
This semi-annual shareholder report contains important information about Franklin FTSE China ETF for the period April 1, 2024, to September 30, 2024.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)
| | |
Fund Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment*,† |
| Franklin FTSE China ETF | $11 | 0.19% |
| * | Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher. |
KEY FUND STATISTICS (as of September 30, 2024)
| |
Total Net Assets | $139,562,756 |
Total Number of Portfolio Holdings* | 951 |
Portfolio Turnover Rate | 5.63% |
| * | Does not include derivatives, except purchased options, if any. |
WHAT DID THE FUND INVEST IN? (as of September 30, 2024)
Portfolio Composition*,† (% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
| † | Certain categories may represent less than 0.1%. |
| |
| WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? |
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| • prospectus • proxy voting information • financial information • holdings • tax information |
| Franklin FTSE China ETF | PAGE 1 | FLCH-STSR-1124 |
31.519.316.66.05.84.64.63.63.22.52.30.0
| | |
Franklin FTSE Europe ETF | |
FLEE | NYSE Arca, Inc.NYSEArca |
| Semi-Annual Shareholder Report | September 30, 2024 |
|
This semi-annual shareholder report contains important information about Franklin FTSE Europe ETF for the period April 1, 2024, to September 30, 2024.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)
| | |
Fund Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment*,† |
| Franklin FTSE Europe ETF | $5 | 0.09% |
| * | Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher. |
KEY FUND STATISTICS (as of September 30, 2024)
| |
Total Net Assets | $86,873,740 |
Total Number of Portfolio Holdings* | 521 |
Portfolio Turnover Rate | 3.67% |
| * | Does not include derivatives, except purchased options, if any. |
WHAT DID THE FUND INVEST IN? (as of September 30, 2024)
Portfolio Composition* (% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
| |
| WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? |
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| • prospectus • proxy voting information • financial information • holdings • tax information |
| Franklin FTSE Europe ETF | PAGE 1 | FLEE-STSR-1124 |
19.716.915.410.49.77.37.24.64.23.31.20.1
| | |
Franklin FTSE Eurozone ETF | |
FLEU | NYSE Arca, Inc.NYSEArca |
| Semi-Annual Shareholder Report | September 30, 2024 |
|
This semi-annual shareholder report contains important information about Franklin FTSE Eurozone ETF for the period April 1, 2024, to September 30, 2024.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)
| | |
Fund Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment*,† |
| Franklin FTSE Eurozone ETF | $5 | 0.09% |
| * | Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher. |
KEY FUND STATISTICS (as of September 30, 2024)
| |
Total Net Assets | $21,478,090 |
Total Number of Portfolio Holdings* | 270 |
Portfolio Turnover Rate | 2.37% |
| * | Does not include derivatives, except purchased options, if any. |
WHAT DID THE FUND INVEST IN? (as of September 30, 2024)
Portfolio Composition* (% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
| |
| WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? |
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| • prospectus • proxy voting information • financial information • holdings • tax information |
| Franklin FTSE Eurozone ETF | PAGE 1 | FLEU-STSR-1124 |
20.817.613.413.27.56.76.25.24.53.61.20.1
| | |
Franklin FTSE Germany ETF | |
FLGR | NYSE Arca, Inc.NYSEArca |
| Semi-Annual Shareholder Report | September 30, 2024 |
|
This semi-annual shareholder report contains important information about Franklin FTSE Germany ETF for the period April 1, 2024, to September 30, 2024.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)
| | |
Fund Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment*,† |
| Franklin FTSE Germany ETF | $5 | 0.09% |
| * | Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher. |
KEY FUND STATISTICS (as of September 30, 2024)
| |
Total Net Assets | $31,809,006 |
Total Number of Portfolio Holdings* | 69 |
Portfolio Turnover Rate | 2.38% |
| * | Does not include derivatives, except purchased options, if any. |
WHAT DID THE FUND INVEST IN? (as of September 30, 2024)
Portfolio Composition*,† (% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
| † | Certain categories may represent less than 0.1%. |
| |
| WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? |
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| • prospectus • proxy voting information • financial information • holdings • tax information |
| Franklin FTSE Germany ETF | PAGE 1 | FLGR-STSR-1124 |
20.120.119.211.37.47.16.53.72.42.20.0
| | |
Franklin FTSE Hong Kong ETF | |
FLHK | NYSE Arca, Inc.NYSEArca |
| Semi-Annual Shareholder Report | September 30, 2024 |
|
This semi-annual shareholder report contains important information about Franklin FTSE Hong Kong ETF for the period April 1, 2024, to September 30, 2024.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)
| | |
Fund Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment*,† |
| Franklin FTSE Hong Kong ETF | $5 | 0.09% |
| * | Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher. |
KEY FUND STATISTICS (as of September 30, 2024)
| |
Total Net Assets | $13,733,981 |
Total Number of Portfolio Holdings* | 72 |
Portfolio Turnover Rate | 3.94% |
| * | Does not include derivatives, except purchased options, if any. |
WHAT DID THE FUND INVEST IN? (as of September 30, 2024)
Portfolio Composition*,† (% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
| † | Certain categories may represent less than 0.1%. |
| |
| WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? |
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| • prospectus • proxy voting information • financial information • holdings • tax information |
| Franklin FTSE Hong Kong ETF | PAGE 1 | FLHK-STSR-1124 |
39.818.214.510.38.74.52.50.50.50.40.10.0
| | |
Franklin FTSE India ETF | |
FLIN | NYSE Arca, Inc.NYSEArca |
| Semi-Annual Shareholder Report | September 30, 2024 |
|
This semi-annual shareholder report contains important information about Franklin FTSE India ETF for the period April 1, 2024, to September 30, 2024.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)
| | |
Fund Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment*,† |
| Franklin FTSE India ETF | $10 | 0.19% |
| * | Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher. |
KEY FUND STATISTICS (as of September 30, 2024)
| |
Total Net Assets | $1,812,150,182 |
Total Number of Portfolio Holdings* | 245 |
Portfolio Turnover Rate | 2.83% |
| * | Does not include derivatives, except purchased options, if any. |
WHAT DID THE FUND INVEST IN? (as of September 30, 2024)
Portfolio Composition* (% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
| |
| WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? |
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| • prospectus • proxy voting information • financial information • holdings • tax information |
| Franklin FTSE India ETF | PAGE 1 | FLIN-STSR-1124 |
23.212.811.110.09.39.26.95.85.54.01.50.7
| | |
Franklin FTSE Japan ETF | |
FLJP | NYSE Arca, Inc.NYSEArca |
| Semi-Annual Shareholder Report | September 30, 2024 |
|
This semi-annual shareholder report contains important information about Franklin FTSE Japan ETF for the period April 1, 2024, to September 30, 2024.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)
| | |
Fund Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment*,† |
| Franklin FTSE Japan ETF | $5 | 0.09% |
| * | Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher. |
KEY FUND STATISTICS (as of September 30, 2024)
| |
Total Net Assets | $2,100,944,485 |
Total Number of Portfolio Holdings* | 497 |
Portfolio Turnover Rate | 2.24% |
| * | Does not include derivatives, except purchased options, if any. |
WHAT DID THE FUND INVEST IN? (as of September 30, 2024)
Portfolio Composition* (% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
| |
| WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? |
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| • prospectus • proxy voting information • financial information • holdings • tax information |
| Franklin FTSE Japan ETF | PAGE 1 | FLJP-STSR-1124 |
24.217.613.613.07.76.36.25.43.71.30.90.1
| | |
Franklin FTSE Japan Hedged ETF | |
FLJH | NYSE Arca, Inc.NYSEArca |
| Semi-Annual Shareholder Report | September 30, 2024 |
|
This semi-annual shareholder report contains important information about Franklin FTSE Japan Hedged ETF for the period April 1, 2024, to September 30, 2024.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)
| | |
Fund Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment*,† |
| Franklin FTSE Japan Hedged ETF | $4 | 0.09% |
| * | Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher. |
KEY FUND STATISTICS (as of September 30, 2024)
| |
Total Net Assets | $72,846,338 |
Total Number of Portfolio Holdings* | 487 |
Portfolio Turnover Rate | 8.61% |
| * | Does not include derivatives, except purchased options, if any. |
WHAT DID THE FUND INVEST IN? (as of September 30, 2024)
Portfolio Composition* (% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
| |
| WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? |
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| • prospectus • proxy voting information • financial information • holdings • tax information |
| Franklin FTSE Japan Hedged ETF | PAGE 1 | FLJH-STSR-1124 |
23.917.613.512.97.66.36.15.33.71.30.90.9
| | |
Franklin FTSE Latin America ETF | |
FLLA | NYSE Arca, Inc.NYSEArca |
| Semi-Annual Shareholder Report | September 30, 2024 |
|
This semi-annual shareholder report contains important information about Franklin FTSE Latin America ETF for the period April 1, 2024, to September 30, 2024.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)
| | |
Fund Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment*,† |
| Franklin FTSE Latin America ETF | $9 | 0.19% |
| * | Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher. |
KEY FUND STATISTICS (as of September 30, 2024)
| |
Total Net Assets | $52,180,559 |
Total Number of Portfolio Holdings* | 147 |
Portfolio Turnover Rate | 4.45% |
| * | Does not include derivatives, except purchased options, if any. |
WHAT DID THE FUND INVEST IN? (as of September 30, 2024)
Portfolio Composition*,† (% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
| † | Certain categories may represent less than 0.1%. |
| |
| WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? |
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| • prospectus • proxy voting information • financial information • holdings • tax information |
| Franklin FTSE Latin America ETF | PAGE 1 | FLLA-STSR-1124 |
24.016.315.613.011.88.04.72.42.21.60.40.0
| | |
Franklin FTSE Mexico ETF | |
FLMX | NYSE Arca, Inc.NYSEArca |
| Semi-Annual Shareholder Report | September 30, 2024 |
|
This semi-annual shareholder report contains important information about Franklin FTSE Mexico ETF for the period April 1, 2024, to September 30, 2024.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)
| | |
Fund Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment*,† |
| Franklin FTSE Mexico ETF | $9 | 0.19% |
| * | Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher. |
KEY FUND STATISTICS (as of September 30, 2024)
| |
Total Net Assets | $94,929,551 |
Total Number of Portfolio Holdings* | 40 |
Portfolio Turnover Rate | 4.23% |
| * | Does not include derivatives, except purchased options, if any. |
WHAT DID THE FUND INVEST IN? (as of September 30, 2024)
Portfolio Composition*,† (% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
| † | Certain categories may represent less than 0.1%. |
| |
| WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? |
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| • prospectus • proxy voting information • financial information • holdings • tax information |
| Franklin FTSE Mexico ETF | PAGE 1 | FLMX-STSR-1124 |
32.118.716.713.711.65.61.60.0
| | |
Franklin FTSE Saudi Arabia ETF | |
FLSA | NYSE Arca, Inc.NYSEArca |
| Semi-Annual Shareholder Report | September 30, 2024 |
|
This semi-annual shareholder report contains important information about Franklin FTSE Saudi Arabia ETF for the period April 1, 2024, to September 30, 2024.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)
| | |
Fund Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment*,† |
| Franklin FTSE Saudi Arabia ETF | $19 | 0.39% |
| * | Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher. |
KEY FUND STATISTICS (as of September 30, 2024)
| |
Total Net Assets | $18,350,016 |
Total Number of Portfolio Holdings* | 64 |
Portfolio Turnover Rate | 8.88% |
| * | Does not include derivatives, except purchased options, if any. |
WHAT DID THE FUND INVEST IN? (as of September 30, 2024)
Portfolio Composition* (% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
| |
| WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? |
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| • prospectus • proxy voting information • financial information • holdings • tax information |
| Franklin FTSE Saudi Arabia ETF | PAGE 1 | FLSA-STSR-1124 |
38.017.510.79.49.03.83.62.92.21.61.20.1
| | |
Franklin FTSE South Korea ETF | |
FLKR | NYSE Arca, Inc.NYSEArca |
| Semi-Annual Shareholder Report | September 30, 2024 |
|
This semi-annual shareholder report contains important information about Franklin FTSE South Korea ETF for the period April 1, 2024, to September 30, 2024.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)
| | |
Fund Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment*,† |
| Franklin FTSE South Korea ETF | $4 | 0.09% |
| * | Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher. |
KEY FUND STATISTICS (as of September 30, 2024)
| |
Total Net Assets | $120,538,120 |
Total Number of Portfolio Holdings* | 158 |
Portfolio Turnover Rate | 7.47% |
| * | Does not include derivatives, except purchased options, if any. |
WHAT DID THE FUND INVEST IN? (as of September 30, 2024)
Portfolio Composition*,† (% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
| † | Certain categories may represent less than 0.1%. |
| |
| WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? |
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| • prospectus • proxy voting information • financial information • holdings • tax information |
| Franklin FTSE South Korea ETF | PAGE 1 | FLKR-STSR-1124 |
32.917.013.310.98.36.95.93.01.20.60.0
| | |
Franklin FTSE Switzerland ETF | |
FLSW | NYSE Arca, Inc.NYSEArca |
| Semi-Annual Shareholder Report | September 30, 2024 |
|
This semi-annual shareholder report contains important information about Franklin FTSE Switzerland ETF for the period April 1, 2024, to September 30, 2024.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)
| | |
Fund Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment*,† |
| Franklin FTSE Switzerland ETF | $5 | 0.09% |
| * | Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher. |
KEY FUND STATISTICS (as of September 30, 2024)
| |
Total Net Assets | $57,839,669 |
Total Number of Portfolio Holdings* | 54 |
Portfolio Turnover Rate | 3.49% |
| * | Does not include derivatives, except purchased options, if any. |
WHAT DID THE FUND INVEST IN? (as of September 30, 2024)
Portfolio Composition*,† (% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
| † | Certain categories may represent less than 0.1%. |
| |
| WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? |
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| • prospectus • proxy voting information • financial information • holdings • tax information |
| Franklin FTSE Switzerland ETF | PAGE 1 | FLSW-STSR-1124 |
36.217.816.911.29.65.11.11.00.90.20.0
| | |
Franklin FTSE Taiwan ETF | |
FLTW | NYSE Arca, Inc.NYSEArca |
| Semi-Annual Shareholder Report | September 30, 2024 |
|
This semi-annual shareholder report contains important information about Franklin FTSE Taiwan ETF for the period April 1, 2024, to September 30, 2024.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)
| | |
Fund Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment*,† |
| Franklin FTSE Taiwan ETF | $10 | 0.19% |
| * | Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher. |
KEY FUND STATISTICS (as of September 30, 2024)
| |
Total Net Assets | $271,358,116 |
Total Number of Portfolio Holdings* | 130 |
Portfolio Turnover Rate | 26.97% |
| * | Does not include derivatives, except purchased options, if any. |
WHAT DID THE FUND INVEST IN? (as of September 30, 2024)
Portfolio Composition* (% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
| |
| WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? |
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| • prospectus • proxy voting information • financial information • holdings • tax information |
| Franklin FTSE Taiwan ETF | PAGE 1 | FLTW-STSR-1124 |
63.418.45.14.13.22.71.90.70.20.20.1
| | |
Franklin FTSE United Kingdom ETF | |
FLGB | NYSE Arca, Inc.NYSEArca |
| Semi-Annual Shareholder Report | September 30, 2024 |
|
This semi-annual shareholder report contains important information about Franklin FTSE United Kingdom ETF for the period April 1, 2024, to September 30, 2024.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)
| | |
Fund Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment*,† |
| Franklin FTSE United Kingdom ETF | $5 | 0.09% |
| * | Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher. |
KEY FUND STATISTICS (as of September 30, 2024)
| |
Total Net Assets | $731,907,856 |
Total Number of Portfolio Holdings* | 104 |
Portfolio Turnover Rate | 4.58% |
| * | Does not include derivatives, except purchased options, if any. |
WHAT DID THE FUND INVEST IN? (as of September 30, 2024)
Portfolio Composition*,† (% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
| † | Certain categories may represent less than 0.1%. |
| |
| WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? |
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| • prospectus • proxy voting information • financial information • holdings • tax information |
| Franklin FTSE United Kingdom ETF | PAGE 1 | FLGB-STSR-1124 |
19.317.113.811.911.110.37.24.32.81.21.00.0
| | |
BrandywineGLOBAL-Dynamic US Large Cap Value ETF | |
DVAL | The Nasdaq Stock Market LLCNASDAQ |
| Semi-Annual Shareholder Report | September 30, 2024 |
|
This semi-annual shareholder report contains important information about BrandywineGLOBAL-Dynamic US Large Cap Value ETF for the period April 1, 2024, to September 30, 2024.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)
| | |
Fund Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment*,† |
| BrandywineGLOBAL-Dynamic US Large Cap Value ETF | $25 | 0.49% |
| * | Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher. |
KEY FUND STATISTICS (as of September 30, 2024)
| |
Total Net Assets | $116,319,447 |
Total Number of Portfolio Holdings* | 116 |
Portfolio Turnover Rate | 33.79% |
| * | Does not include derivatives, except purchased options, if any. |
WHAT DID THE FUND INVEST IN? (as of September 30, 2024)
Portfolio Composition* (% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
| |
| WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? |
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| • prospectus • proxy voting information • financial information • holdings • tax information |
| BrandywineGLOBAL-Dynamic US Large Cap Value ETF | PAGE 1 | DVAL-STSR-1124 |
28.313.811.410.69.78.96.85.13.50.81.1
| | |
BrandywineGLOBAL - U.S. Fixed Income ETF | |
USFI | The Nasdaq Stock Market LLCNASDAQ |
| Semi-Annual Shareholder Report | September 30, 2024 |
|
This semi-annual shareholder report contains important information about BrandywineGLOBAL - U.S. Fixed Income ETF for the period April 1, 2024, to September 30, 2024.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)
| | |
Fund Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment*,† |
| BrandywineGLOBAL - U.S. Fixed Income ETF | $20 | 0.39% |
| * | Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher. |
KEY FUND STATISTICS (as of September 30, 2024)
| |
Total Net Assets | $12,697,989 |
Total Number of Portfolio Holdings* | 21 |
Portfolio Turnover Rate | 24.85% |
| * | Does not include derivatives, except purchased options, if any. |
WHAT DID THE FUND INVEST IN? (as of September 30, 2024)
Portfolio Composition* (% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
| |
| WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? |
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| • prospectus • proxy voting information • financial information • holdings • tax information |
| BrandywineGLOBAL - U.S. Fixed Income ETF | PAGE 1 | USFI-STSR-1124 |
94.92.03.1
| | |
ClearBridge Sustainable Infrastructure ETF | |
INFR | The Nasdaq Stock Market LLCNASDAQ |
| Semi-Annual Shareholder Report | September 30, 2024 |
|
This semi-annual shareholder report contains important information about ClearBridge Sustainable Infrastructure ETF for the period April 1, 2024, to September 30, 2024.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)
| | |
Fund Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment*,† |
| ClearBridge Sustainable Infrastructure ETF | $31 | 0.59% |
| * | Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher. |
KEY FUND STATISTICS (as of September 30, 2024)
| |
Total Net Assets | $9,210,008 |
Total Number of Portfolio Holdings* | 33 |
Portfolio Turnover Rate | 5.70% |
| * | Does not include derivatives, except purchased options, if any. |
WHAT DID THE FUND INVEST IN? (as of September 30, 2024)
Portfolio Composition* (% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
| |
| WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? |
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| • prospectus • proxy voting information • financial information • holdings • tax information |
| ClearBridge Sustainable Infrastructure ETF | PAGE 1 | INFR-STSR-1124 |
67.419.27.12.34.0
| | |
Western Asset Bond ETF | |
WABF | The Nasdaq Stock Market LLCNASDAQ |
| Semi-Annual Shareholder Report | September 30, 2024 |
|
This semi-annual shareholder report contains important information about Western Asset Bond ETF for the period April 1, 2024, to September 30, 2024.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)
| | |
Fund Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment*,† |
| Western Asset Bond ETF | $18 | 0.35% |
| * | Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher. |
KEY FUND STATISTICS (as of September 30, 2024)
| |
Total Net Assets | $42,333,867 |
Total Number of Portfolio Holdings* | 556 |
Portfolio Turnover Rate | 32.73% |
| * | Does not include derivatives, except purchased options, if any. |
WHAT DID THE FUND INVEST IN? (as of September 30, 2024)
Portfolio Composition*,† (% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
| † | Certain categories may represent less than 0.1%. |
| |
| WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? |
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| • prospectus • proxy voting information • financial information • holdings • tax information |
| Western Asset Bond ETF | PAGE 1 | WABF-STSR-1124 |
43.536.87.56.71.00.80.20.10.03.4
| | |
Martin Currie Sustainable International Equity ETF | |
MCSE | The Nasdaq Stock Market LLCNASDAQ |
| Semi-Annual Shareholder Report | September 30, 2024 |
|
This semi-annual shareholder report contains important information about Martin Currie Sustainable International Equity ETF for the period April 1, 2024, to September 30, 2024.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)
| | |
Fund Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment† |
| Martin Currie Sustainable International Equity ETF | $29 | 0.59% |
KEY FUND STATISTICS (as of September 30, 2024)
| |
Total Net Assets | $33,357,267 |
Total Number of Portfolio Holdings* | 25 |
Portfolio Turnover Rate | 9.62% |
| * | Does not include derivatives, except purchased options, if any. |
WHAT DID THE FUND INVEST IN? (as of September 30, 2024)
| |
Portfolio Composition* | % of Total Investments |
Health Care | 27.6% |
Information Technology | 21.7% |
Industrials | 16.3% |
Consumer Discretionary | 14.1% |
Materials | 7.8% |
Financials | 6.5% |
Consumer Staples | 6.0% |
| |
Geographic Composition* | % of Total Investments |
Europe | 79.8% |
North America | 16.3% |
Australia & New Zealand | 3.9% |
| * | Does not include derivatives, except purchased options, if any. |
| |
| WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? |
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| • prospectus • proxy voting information • financial information • holdings • tax information |
| Martin Currie Sustainable International Equity ETF | PAGE 1 | MCSE-STSR-1124 |
| | |
Franklin U.S. Equity Index ETF | |
USPX | NYSE Arca, Inc.NYSEArca |
| Semi-Annual Shareholder Report | September 30, 2024 |
|
This semi-annual shareholder report contains important information about Franklin U.S. Equity Index ETF for the period April 1, 2024, to September 30, 2024.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)
| | |
Fund Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment*,† |
| Franklin U.S. Equity Index ETF | $2 | 0.03% |
| * | Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher. |
KEY FUND STATISTICS (as of September 30, 2024)
| |
Total Net Assets | $1,123,175,133 |
Total Number of Portfolio Holdings* | 571 |
Portfolio Turnover Rate | 1.68% |
| * | Does not include derivatives, except purchased options, if any. |
WHAT DID THE FUND INVEST IN? (as of September 30, 2024)
Portfolio Composition*,† (% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
| † | Certain categories may represent less than 0.1%. |
| |
| WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? |
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| • prospectus • proxy voting information • financial information • holdings • tax information |
| Franklin U.S. Equity Index ETF | PAGE 1 | USPX-STSR-1124 |
31.113.111.710.29.08.75.83.32.42.42.30.0
| | |
Franklin FTSE Russia ETF | |
| FLRU |
| Semi-Annual Shareholder Report | September 30, 2024 |
|
This semi-annual shareholder report contains important information about Franklin FTSE Russia ETF for the period April 1, 2024, to September 30, 2024.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.
This report describes changes to the Fund that occurred during the reporting period.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)
| | |
Fund Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment† |
| Franklin FTSE Russia ETF | $0 | 0.00% |
KEY FUND STATISTICS (as of September 30, 2024)
| |
Total Net Assets* | $4,719 |
Total Number of Portfolio Holdings | 36 |
Portfolio Turnover Rate | 0.00% |
| * | As of September 30, 2024, the Fund’s portfolio was comprised of Russian equity securities (fair valued at $0) and USD cash. |
WHAT DID THE FUND INVEST IN? (as of September 30, 2024)
Portfolio Composition*,† (% of Total Net Assets)
| * | As of September 30, 2024, the Fund’s portfolio was comprised of Russian equity securities (fair valued at $0) and USD cash. |
| † | Certain categories may represent less than 0.1%. |
HOW HAS THE FUND CHANGED?
The Fund is in the process of liquidating its assets and winding up its business pursuant to a plan of liquidation.
For more complete information, you may review the Fund’s current prospectus and any applicable supplements at https://www.franklintempleton.com/regulatory-fund-documents or upon request at (800) DIAL BEN/342-5236 or prospectus@franklintempleton.com.
| Franklin FTSE Russia ETF | PAGE 1 | FLRU-STSR-1124 |
| |
| WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? |
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| • prospectus • proxy voting information • financial information • holdings • tax information |
| Franklin FTSE Russia ETF | PAGE 2 | FLRU-STSR-1124 |
0.00.00.00.00.00.00.00.0100.0
Not applicable.
| ITEM 3. | AUDIT COMMITTEE FINANCIAL EXPERT. |
Not applicable.
| ITEM 4. | PRINCIPAL ACCOUNTANT FEES AND SERVICES. |
Not applicable.
| ITEM 5. | AUDIT COMMITTEE OF LISTED REGISTRANTS. |
Not applicable.
| ITEM 6. | SCHEDULE OF INVESTMENTS. |
| (a) | Please see schedule of investments contained in the Financial Statements and Financial Highlights included under Item 7 of this Form N-CSR. |
| ITEM 7. | FINANCIAL STATEMENTS AND FINANCIAL HIGLIGHTS FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES. |
Franklin Templeton
ETF Trust
Financial Statements and Other Important Information
| Semi-Annual | September 30, 2024 |
| Franklin Emerging Market Core Dividend Tilt Index ETF |
| Franklin International Core Dividend Tilt Index ETF |
| Franklin U.S. Core Dividend Tilt Index ETF |
| Franklin U.S. Large Cap Multifactor Index ETF |
| Franklin U.S. Mid Cap Multifactor Index ETF |
| Franklin U.S. Small Cap Multifactor Index ETF |
| Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Financial Highlights
Franklin Emerging Market Core Dividend Tilt Index ETF
| | Six Months Ended
September 30, 2024
(unaudited) | Year Ended March 31, |
| | 2024 | 2023 | 2022 | 2021 | 2020 |
| Per share operating performance | | | | | | |
| (for a share outstanding throughout the period) | | | | | | |
| Net asset value, beginning of period | $25.68 | $23.88 | $28.33 | $30.78 | $22.20 | $29.70 |
| Income from investment operationsa: | | | | | | |
| Net investment incomeb | 0.73 | 1.07 | 1.39 | 1.32 | 0.84 | 1.24 |
| Net realized and unrealized gains (losses) | 3.27 | 1.86 | (4.42) | (2.55) | 8.55 | (6.96) |
| Total from investment operations | 4.00 | 2.93 | (3.03) | (1.23) | 9.39 | (5.72) |
| Less distributions from net investment income | (1.06) | (1.13) | (1.42) | (1.22) | (0.81) | (1.78) |
| Net asset value, end of period | $28.62 | $25.68 | $23.88 | $28.33 | $30.78 | $22.20 |
| Total returnc | 16.14% | 12.67% | (10.36)% | (4.21)% | 42.57% | (20.55)% |
| Ratios to average net assetsd | | | | | | |
| Expenses before waiver and payments by affiliates | 0.19% | 0.19% | 0.29% | 0.45% | 0.45% | 0.49% |
| Expenses net of waiver and payments by affiliates | 0.19% | 0.19% | 0.29% | 0.45% | 0.45% | 0.49% |
| Net investment income | 5.44% | 4.47% | 5.83% | 4.28% | 3.15% | 4.26% |
| Supplemental data | | | | | | |
| Net assets, end of period (000’s) | $14,309 | $12,838 | $11,939 | $17,000 | $24,627 | $57,711 |
| Portfolio turnover ratee | 28.82%f | 51.44%f | 110.78%f | 34.27%f | 40.22%f | 44.11%f |
| aThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of Creation Unit Fund shares in relation to income earned and/or fluctuating fair value of the investments of the Fund. |
| bBased on average daily shares outstanding. |
| cTotal return is not annualized for periods less than one year. Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. |
| dRatios are annualized for periods less than one year. |
| ePortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash ("Cash creations"). |
| fPortfolio turnover rate excluding cash creations was as follows: | 28.82% | 51.44% | 110.78% | 34.27% | 36.91% | 41.78% |
| franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Semi-Annual Report | 1 |
Franklin Templeton ETF Trust
Schedule of Investments, September 30, 2024 (unaudited)
Franklin Emerging Market Core Dividend Tilt Index ETF
| | | Industry | Shares | | Value |
| | Common Stocks 98.6% | | | | |
| | Australia 0.0%† | | | | |
| a | Yancoal Australia Ltd. | Oil, Gas & Consumable Fuels | 1,500 | | $ 6,295 |
| | Brazil 3.2% | | | | |
| | Ambev SA | Beverages | 21,500 | | 51,640 |
| | Banco Santander Brasil SA | Banks | 2,000 | | 10,426 |
| | BB Seguridade Participacoes SA | Insurance | 3,500 | | 22,816 |
| | Caixa Seguridade Participacoes SA | Insurance | 3,000 | | 8,015 |
| | Cia Energetica de Minas Gerais | Electric Utilities | 1,950 | | 5,221 |
| | Cia Siderurgica Nacional SA | Metals & Mining | 3,000 | | 7,101 |
| | CPFL Energia SA | Electric Utilities | 1,000 | | 6,231 |
| | CSN Mineracao SA | Metals & Mining | 3,000 | | 3,801 |
| | Energisa SA | Electric Utilities | 1,000 | | 8,225 |
| | Hypera SA | Pharmaceuticals | 2,000 | | 9,633 |
| | Localiza Rent a Car SA | Ground Transportation | 4,025 | | 30,303 |
| | Lojas Renner SA | Specialty Retail | 2,000 | | 6,633 |
| | Natura & Co. Holding SA | Personal Care Products | 5,000 | | 12,900 |
| | Petroleo Brasileiro SA | Oil, Gas & Consumable Fuels | 10,500 | | 75,716 |
| | Telefonica Brasil SA | Diversified Telecommunication Services | 2,000 | | 20,500 |
| | TIM SA | Wireless Telecommunication Services | 4,000 | | 13,757 |
| | Vale SA | Metals & Mining | 12,500 | | 145,777 |
| | Vibra Energia SA | Specialty Retail | 4,000 | | 17,188 |
| | | | | | 455,883 |
| | Chile 0.4% | | | | |
| | Banco de Chile | Banks | 225,145 | | 28,761 |
| | Cia Sud Americana de Vapores SA | Marine Transportation | 79,040 | | 4,842 |
| | Empresas CMPC SA | Paper & Forest Products | 5,735 | | 9,989 |
| | Enel Chile SA | Electric Utilities | 136,415 | | 7,520 |
| | | | | | 51,112 |
| | China 27.9% | | | | |
| | 37 Interactive Entertainment Network Technology Group Co. Ltd., Class A | Entertainment | 500 | | 1,279 |
| | Agricultural Bank of China Ltd., Class H | Banks | 140,000 | | 65,967 |
| | AIMA Technology Group Co. Ltd., Class A | Automobiles | 500 | | 2,679 |
| b | Alibaba Group Holding Ltd., Class A | Broadline Retail | 7,500 | | 106,212 |
| | Anhui Conch Cement Co. Ltd., Class A | Construction Materials | 1,500 | | 5,603 |
| | Anhui Conch Cement Co. Ltd., Class H | Construction Materials | 6,170 | | 18,151 |
| | Anhui Gujing Distillery Co. Ltd., Class A | Beverages | 200 | | 5,802 |
| | Anhui Gujing Distillery Co. Ltd., Class B | Beverages | 500 | | 8,059 |
| | ANTA Sports Products Ltd., Class A | Textiles, Apparel & Luxury Goods | 6,040 | | 73,444 |
| | AviChina Industry & Technology Co. Ltd., Class H | Aerospace & Defense | 10,000 | | 4,892 |
| | Bank of Beijing Co. Ltd., Class A | Banks | 9,000 | | 7,510 |
| | Bank of Changsha Co. Ltd., Class A | Banks | 2,000 | | 2,392 |
| | Bank of Chengdu Co. Ltd., Class A | Banks | 1,500 | | 3,376 |
| | Bank of China Ltd., Class H | Banks | 295,000 | | 139,382 |
| | Bank of Communications Co. Ltd., Class A | Banks | 16,000 | | 16,918 |
| | Bank of Communications Co. Ltd., Class H | Banks | 45,000 | | 34,528 |
| | Bank of Hangzhou Co. Ltd., Class A | Banks | 2,500 | | 5,037 |
| | Bank of Jiangsu Co. Ltd., Class A | Banks | 7,500 | | 9,002 |
| | Bank of Nanjing Co. Ltd., Class A | Banks | 4,000 | | 6,258 |
| | Bank of Shanghai Co. Ltd., Class A | Banks | 5,000 | | 5,637 |
| | Bank of Suzhou Co. Ltd., Class A | Banks | 1,500 | | 1,734 |
| | Baoshan Iron & Steel Co. Ltd., Class A | Metals & Mining | 9,000 | | 8,925 |
| | Beijing Enterprises Holdings Ltd., Class H | Gas Utilities | 2,500 | | 8,980 |
| | Beijing New Building Materials PLC, Class A | Building Products | 1,000 | | 4,712 |
| | BOC Hong Kong Holdings Ltd. | Banks | 19,000 | | 60,908 |
| 2 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin Emerging Market Core Dividend Tilt Index ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | China (continued) | | | | |
| | BYD Electronic International Co. Ltd. | Communications Equipment | 5,000 | | $ 20,953 |
| | C&D International Investment Group Ltd. | Real Estate Management & Development | 5,000 | | 10,840 |
| | China CITIC Bank Corp. Ltd., Class A | Banks | 10,000 | | 10,016 |
| | China CITIC Bank Corp. Ltd., Class H | Banks | 45,000 | | 28,735 |
| | China Construction Bank Corp., Class A | Banks | 2,000 | | 2,266 |
| | China Construction Bank Corp., Class H | Banks | 260,000 | | 196,820 |
| | China Everbright Bank Co. Ltd., Class A | Banks | 18,500 | | 9,516 |
| | China Everbright Bank Co. Ltd., Class H | Banks | 15,000 | | 5,098 |
| a | China Feihe Ltd. | Food Products | 20,000 | | 15,140 |
| | China Life Insurance Co. Ltd., Class H | Insurance | 40,000 | | 80,438 |
| | China Longyuan Power Group Corp. Ltd., Class A | Independent Power Producers & Energy Traders | 2,000 | | 4,795 |
| | China Longyuan Power Group Corp. Ltd., Class H | Independent Power Producers & Energy Traders | 15,000 | | 13,614 |
| | China Medical System Holdings Ltd. | Pharmaceuticals | 7,000 | | 8,066 |
| | China Merchants Bank Co. Ltd., Class A | Banks | 7,500 | | 40,304 |
| | China Merchants Bank Co. Ltd., Class H | Banks | 19,000 | | 94,297 |
| | China Merchants Expressway Network & Technology Holdings Co. Ltd., Class A | Transportation Infrastructure | 2,500 | | 4,497 |
| | China Merchants Port Holdings Co. Ltd. | Transportation Infrastructure | 6,670 | | 10,631 |
| | China Merchants Shekou Industrial Zone Holdings Co. Ltd., Class A | Real Estate Management & Development | 3,500 | | 6,126 |
| | China Minsheng Banking Corp. Ltd., Class A | Banks | 14,000 | | 8,042 |
| | China Minsheng Banking Corp. Ltd., Class H | Banks | 35,000 | | 14,284 |
| | China Overseas Land & Investment Ltd., Class A | Real Estate Management & Development | 20,000 | | 40,991 |
| | China Pacific Insurance Group Co. Ltd., Class A | Insurance | 500 | | 2,793 |
| | China Pacific Insurance Group Co. Ltd., Class H | Insurance | 1,000 | | 3,605 |
| | China Petroleum & Chemical Corp., Class A | Oil, Gas & Consumable Fuels | 17,000 | | 16,906 |
| | China Petroleum & Chemical Corp., Class H | Oil, Gas & Consumable Fuels | 150,000 | | 93,466 |
| | China Railway Group Ltd., Class A | Construction & Engineering | 2,500 | | 2,347 |
| | China Railway Group Ltd., Class H | Construction & Engineering | 5,000 | | 2,626 |
| a | China Resources Mixc Lifestyle Services Ltd. | Real Estate Management & Development | 3,000 | | 13,499 |
| | China Resources Power Holdings Co. Ltd. | Independent Power Producers & Energy Traders | 10,000 | | 27,164 |
| | China Resources Sanjiu Medical & Pharmaceutical Co. Ltd., Class A | Pharmaceuticals | 500 | | 3,401 |
| | China Shenhua Energy Co. Ltd., Class A | Oil, Gas & Consumable Fuels | 2,500 | | 15,574 |
| | China Shenhua Energy Co. Ltd., Class H | Oil, Gas & Consumable Fuels | 19,000 | | 85,735 |
| | China Tourism Group Duty Free Corp. Ltd., Class A | Specialty Retail | 1,000 | | 11,031 |
| a | China Tourism Group Duty Free Corp. Ltd., Class H | Specialty Retail | 500 | | 4,847 |
| a | China Tower Corp. Ltd., Class H | Diversified Telecommunication Services | 220,000 | | 29,173 |
| c | China Vanke Co. Ltd., Class A | Real Estate Management & Development | 3,500 | | 4,861 |
| c | China Vanke Co. Ltd., Class H | Real Estate Management & Development | 12,000 | | 11,509 |
| | China Zheshang Bank Co. Ltd., Class A | Banks | 7,500 | | 3,151 |
| | China Zheshang Bank Co. Ltd., Class H | Banks | 15,000 | | 4,248 |
| | Chongqing Brewery Co. Ltd., Class A | Beverages | 200 | | 2,004 |
| | Chongqing Changan Automobile Co. Ltd., Class A | Automobiles | 3,000 | | 6,378 |
| | Chongqing Changan Automobile Co. Ltd., Class B | Automobiles | 7,500 | | 3,766 |
| | Chongqing Rural Commercial Bank Co. Ltd., Class A | Banks | 4,000 | | 3,109 |
| | Chongqing Rural Commercial Bank Co. Ltd., Class H | Banks | 10,000 | | 5,188 |
| | Chow Tai Fook Jewellery Group Ltd., Class A | Specialty Retail | 10,000 | | 11,265 |
| franklintempleton.com | Semi-Annual Report | 3 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin Emerging Market Core Dividend Tilt Index ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | China (continued) | | | | |
| | CITIC Ltd., Class B | Industrial Conglomerates | 35,000 | | $ 41,365 |
| | Citic Pacific Special Steel Group Co. Ltd., Class A | Metals & Mining | 500 | | 974 |
| | COFCO Sugar Holding Co. Ltd., Class A | Food Products | 1,000 | | 1,467 |
| | COSCO SHIPPING Holdings Co. Ltd., Class A | Marine Transportation | 5,000 | | 11,224 |
| | COSCO SHIPPING Holdings Co. Ltd., Class H | Marine Transportation | 15,000 | | 25,182 |
| | CSPC Pharmaceutical Group Ltd. | Pharmaceuticals | 44,000 | | 34,271 |
| | Daqin Railway Co. Ltd., Class A | Ground Transportation | 7,500 | | 7,351 |
| | Dong-E-E-Jiao Co. Ltd., Class A | Pharmaceuticals | 500 | | 4,408 |
| | Dongfang Electric Corp. Ltd., Class A | Electrical Equipment | 1,000 | | 2,258 |
| | Dongfang Electric Corp. Ltd., Class H | Electrical Equipment | 2,000 | | 2,734 |
| | ENN Energy Holdings Ltd. | Gas Utilities | 4,000 | | 30,924 |
| | ENN Natural Gas Co. Ltd., Class A | Gas Utilities | 1,000 | | 2,941 |
| | Flat Glass Group Co. Ltd., Class A | Semiconductors & Semiconductor Equipment | 500 | | 1,445 |
| | Flat Glass Group Co. Ltd., Class H | Semiconductors & Semiconductor Equipment | 2,000 | | 3,368 |
| | Focus Media Information Technology Co. Ltd., Class A | Media | 5,500 | | 5,556 |
| | Foxconn Industrial Internet Co. Ltd., Class A | Electronic Equipment, Instruments & Components | 4,500 | | 16,197 |
| | Fuyao Glass Industry Group Co. Ltd., Class A | Automobile Components | 1,000 | | 8,316 |
| a | Fuyao Glass Industry Group Co. Ltd., Class H | Automobile Components | 3,200 | | 21,526 |
| a | Ganfeng Lithium Group Co. Ltd., Class H | Chemicals | 1,000 | | 2,884 |
| | Giant Network Group Co. Ltd., Class A | Entertainment | 500 | | 844 |
| | Goneo Group Co. Ltd., Class A | Electrical Equipment | 290 | | 3,450 |
| | Gree Electric Appliances, Inc. of Zhuhai, Class A | Household Durables | 2,000 | | 13,700 |
| | Guangdong Construction Engineering Group Co. Ltd., Class A | Construction & Engineering | 2,500 | | 1,415 |
| | Guangdong HEC Technology Holding Co. Ltd., Class A | Metals & Mining | 1,500 | | 1,697 |
| | Guanghui Energy Co. Ltd., Class A | Oil, Gas & Consumable Fuels | 3,000 | | 3,082 |
| | Guangxi Guiguan Electric Power Co. Ltd., Class A | Independent Power Producers & Energy Traders | 2,000 | | 2,012 |
| | Guangzhou Development Group, Inc., Class A | Oil, Gas & Consumable Fuels | 1,500 | | 1,442 |
| | Guangzhou Yuexiu Capital Holdings Group Co. Ltd., Class A | Capital Markets | 2,500 | | 2,461 |
| d | Guotai Junan Securities Co. Ltd., Class A | Capital Markets | 3,000 | | 6,301 |
| a,d | Guotai Junan Securities Co. Ltd., Class H | Capital Markets | 4,000 | | 4,071 |
| b | H World Group Ltd. | Hotels, Restaurants & Leisure | 500 | | 1,960 |
| a,b | Haidilao International Holding Ltd. | Hotels, Restaurants & Leisure | 8,000 | | 19,631 |
| | Haier Smart Home Co. Ltd., Class A | Household Durables | 2,500 | | 11,484 |
| | Haier Smart Home Co. Ltd., Class H | Household Durables | 12,000 | | 48,201 |
| | Hangzhou First Applied Material Co. Ltd., Class A | Semiconductors & Semiconductor Equipment | 1,000 | | 2,523 |
| | Hangzhou Oxygen Plant Group Co. Ltd., Class A | Chemicals | 500 | | 1,688 |
| | Hebei Yangyuan Zhihui Beverage Co. Ltd., Class A | Food Products | 500 | | 1,653 |
| | Heilongjiang Agriculture Co. Ltd., Class A | Food Products | 500 | | 1,062 |
| | Henan Shenhuo Coal Industry & Electricity Power Co. Ltd., Class A | Metals & Mining | 1,000 | | 2,869 |
| | Henan Shuanghui Investment & Development Co. Ltd., Class A | Food Products | 1,500 | | 5,806 |
| | Hengan International Group Co. Ltd. | Personal Care Products | 3,750 | | 12,939 |
| | Hengdian Group DMEGC Magnetics Co. Ltd., Class A | Electronic Equipment, Instruments & Components | 500 | | 1,014 |
| | Hengli Petrochemical Co. Ltd., Class A | Chemicals | 2,000 | | 4,475 |
| | Hisense Home Appliances Group Co. Ltd., Class A | Household Durables | 500 | | 2,536 |
| 4 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin Emerging Market Core Dividend Tilt Index ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | China (continued) | | | | |
| | Hisense Home Appliances Group Co. Ltd., Class H | Household Durables | 2,000 | | $ 7,467 |
| | Hisense Visual Technology Co. Ltd., Class A | Household Durables | 500 | | 1,599 |
| | HLA Group Corp. Ltd., Class A | Specialty Retail | 2,000 | | 2,166 |
| | Huaibei Mining Holdings Co. Ltd., Class A | Metals & Mining | 1,000 | | 2,573 |
| | Huatai Securities Co. Ltd., Class A | Capital Markets | 1,000 | | 2,515 |
| a | Huatai Securities Co. Ltd., Class H | Capital Markets | 3,000 | | 4,836 |
| | Huaxia Bank Co. Ltd., Class A | Banks | 6,000 | | 6,370 |
| | Huaxin Cement Co. Ltd., Class A | Construction Materials | 500 | | 1,017 |
| | Huayu Automotive Systems Co. Ltd., Class A | Automobile Components | 1,000 | | 2,562 |
| | Hubei Jumpcan Pharmaceutical Co. Ltd., Class A | Pharmaceuticals | 500 | | 2,238 |
| | Humanwell Healthcare Group Co. Ltd., Class A | Pharmaceuticals | 500 | | 1,507 |
| | Hunan Valin Steel Co. Ltd., Class A | Metals & Mining | 3,500 | | 2,350 |
| | Industrial & Commercial Bank of China Ltd., Class H | Banks | 255,000 | | 152,327 |
| | Industrial Bank Co. Ltd., Class A | Banks | 8,000 | | 22,027 |
| | Inner Mongolia Dian Tou Energy Corp. Ltd., Class A | Oil, Gas & Consumable Fuels | 1,000 | | 2,831 |
| | Inner Mongolia ERDOS Resources Co. Ltd., Class B | Metals & Mining | 2,500 | | 2,295 |
| | Inner Mongolia Junzheng Energy & Chemical Industry Group Co. Ltd., Class A | Chemicals | 3,000 | | 1,968 |
| | Inner Mongolia MengDian HuaNeng Thermal Power Corp. Ltd., Class A | Independent Power Producers & Energy Traders | 3,000 | | 2,058 |
| | Inner Mongolia Yili Industrial Group Co. Ltd., Class A | Food Products | 2,500 | | 10,384 |
| | Inner Mongolia Yitai Coal Co. Ltd., Class B | Oil, Gas & Consumable Fuels | 5,000 | | 10,720 |
| | JA Solar Technology Co. Ltd., Class A | Semiconductors & Semiconductor Equipment | 1,500 | | 2,904 |
| | Jason Furniture Hangzhou Co. Ltd., Class A | Household Durables | 500 | | 2,220 |
| b | JD.com, Inc., Class A | Broadline Retail | 7,750 | | 166,724 |
| | Jiangsu Financial Leasing Co. Ltd., Class A | Financial Services | 2,000 | | 1,537 |
| | Jiangsu Pacific Quartz Co. Ltd., Class A | Semiconductors & Semiconductor Equipment | 500 | | 2,143 |
| | Jiangsu Phoenix Publishing & Media Corp. Ltd., Class A | Media | 500 | | 858 |
| | Jiangsu Yanghe Distillery Co. Ltd., Class A | Beverages | 500 | | 7,086 |
| | Jinduicheng Molybdenum Co. Ltd., Class A | Metals & Mining | 1,000 | | 1,700 |
| | Jinko Solar Co. Ltd., Class A | Semiconductors & Semiconductor Equipment | 4,660 | | 5,866 |
| | Jinneng Holding Shanxi Coal Industry Co. Ltd., Class A | Oil, Gas & Consumable Fuels | 500 | | 1,218 |
| | Jointown Pharmaceutical Group Co. Ltd., Class A | Health Care Providers & Services | 2,580 | | 2,116 |
| b | KE Holdings, Inc., Class A | Real Estate Management & Development | 6,000 | | 46,038 |
| | Keda Industrial Group Co. Ltd., Class A | Machinery | 1,000 | | 1,242 |
| | Kingboard Holdings Ltd. | Electronic Equipment, Instruments & Components | 3,340 | | 8,471 |
| | Kingnet Network Co. Ltd., Class A | Entertainment | 1,000 | | 1,699 |
| | LB Group Co. Ltd., Class A | Chemicals | 1,000 | | 2,968 |
| | Lenovo Group Ltd. | Technology Hardware, Storage & Peripherals | 39,000 | | 53,222 |
| | Li Ning Co. Ltd. | Textiles, Apparel & Luxury Goods | 12,500 | | 31,703 |
| | Livzon Pharmaceutical Group, Inc., Class A | Pharmaceuticals | 300 | | 1,742 |
| | Livzon Pharmaceutical Group, Inc., Class H | Pharmaceuticals | 1,000 | | 3,804 |
| a,b | Longfor Group Holdings Ltd. | Real Estate Management & Development | 12,420 | | 24,048 |
| | Luzhou Laojiao Co. Ltd., Class A | Beverages | 600 | | 12,834 |
| | Meihua Holdings Group Co. Ltd., Class A | Chemicals | 1,000 | | 1,557 |
| a,b,c | Meituan, Class B | Hotels, Restaurants & Leisure | 1,000 | | 22,144 |
| | Ming Yang Smart Energy Group Ltd., Class A | Electrical Equipment | 1,000 | | 1,543 |
| | MINISO Group Holding Ltd. | Broadline Retail | 2,000 | | 9,565 |
| franklintempleton.com | Semi-Annual Report | 5 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin Emerging Market Core Dividend Tilt Index ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | China (continued) | | | | |
| | Minmetals Capital Co. Ltd., Class A | Capital Markets | 2,000 | | $ 1,906 |
| | Nanjing Iron & Steel Co. Ltd., Class A | Metals & Mining | 3,000 | | 2,079 |
| b | NetEase, Inc. | Entertainment | 7,517 | | 145,646 |
| | Ningbo Deye Technology Co. Ltd., Class A | Machinery | 200 | | 2,906 |
| | Ningbo Shanshan Co. Ltd., Class A | Chemicals | 1,000 | | 1,332 |
| | Ningbo Tuopu Group Co. Ltd., Class A | Automobile Components | 500 | | 3,305 |
| a | Nongfu Spring Co. Ltd., Class H | Beverages | 10,000 | | 44,030 |
| | People’s Insurance Co. Group of China Ltd., Class H | Insurance | 40,000 | | 19,105 |
| | Perfect World Co. Ltd., Class A | Entertainment | 1,000 | | 1,372 |
| | PetroChina Co. Ltd., Class H | Oil, Gas & Consumable Fuels | 130,000 | | 106,109 |
| | PICC Property & Casualty Co. Ltd., Class H | Insurance | 32,000 | | 47,459 |
| | Ping An Bank Co. Ltd., Class A | Banks | 8,000 | | 13,957 |
| | Ping An Insurance Group Co. of China Ltd., Class A | Insurance | 3,000 | | 24,472 |
| | Ping An Insurance Group Co. of China Ltd., Class H | Insurance | 24,200 | | 156,245 |
| | Pingdingshan Tianan Coal Mining Co. Ltd., Class A | Oil, Gas & Consumable Fuels | 1,500 | | 2,349 |
| | Poly Developments & Holdings Group Co. Ltd., Class A | Real Estate Management & Development | 5,000 | | 7,880 |
| | Postal Savings Bank of China Co. Ltd., Class A | Banks | 16,500 | | 12,401 |
| a | Postal Savings Bank of China Co. Ltd., Class H | Banks | 45,000 | | 26,939 |
| | Qingdao Rural Commercial Bank Corp., Class A | Banks | 2,500 | | 1,068 |
| | Sany Heavy Equipment International Holdings Co. Ltd. | Machinery | 5,000 | | 3,746 |
| | Shaanxi Beiyuan Chemical Industry Group Co. Ltd., Class A | Chemicals | 1,500 | | 945 |
| | Shaanxi Coal Industry Co. Ltd., Class A | Oil, Gas & Consumable Fuels | 4,000 | | 15,763 |
| | Shan Xi Hua Yang Group New Energy Co. Ltd., Class A | Oil, Gas & Consumable Fuels | 1,500 | | 1,815 |
| | Shandong Hi-speed Co. Ltd., Class A | Transportation Infrastructure | 1,000 | | 1,316 |
| | Shandong Weigao Group Medical Polymer Co. Ltd., Class H | Health Care Equipment & Supplies | 12,000 | | 8,682 |
| c | Shanghai Bairun Investment Holding Group Co. Ltd., Class A | Beverages | 500 | | 1,647 |
| | Shanghai Baosight Software Co. Ltd., Class A | Software | 1,000 | | 4,714 |
| | Shanghai Baosight Software Co. Ltd., Class B | Software | 4,000 | | 6,860 |
| | Shanghai M&G Stationery, Inc., Class A | Commercial Services & Supplies | 500 | | 2,530 |
| | Shanghai Pudong Development Bank Co. Ltd., Class A | Banks | 6,500 | | 9,408 |
| | Shanghai Rural Commercial Bank Co. Ltd., Class A | Banks | 3,500 | | 3,716 |
| | Shanghai Yuyuan Tourist Mart Group Co. Ltd., Class A | Specialty Retail | 2,000 | | 1,823 |
| | Shanxi Coal International Energy Group Co. Ltd., Class A | Trading Companies & Distributors | 1,000 | | 1,995 |
| | Shanxi Coking Coal Energy Group Co. Ltd., Class A | Oil, Gas & Consumable Fuels | 2,500 | | 3,415 |
| | Shanxi Lu’an Environmental Energy Development Co. Ltd., Class A | Oil, Gas & Consumable Fuels | 1,500 | | 3,783 |
| | Shenergy Co. Ltd., Class A | Independent Power Producers & Energy Traders | 2,000 | | 2,440 |
| | Shengyi Technology Co. Ltd., Class A | Electronic Equipment, Instruments & Components | 1,000 | | 2,978 |
| | Shenzhen Transsion Holdings Co. Ltd., Class A | Technology Hardware, Storage & Peripherals | 413 | | 6,369 |
| | Shenzhou International Group Holdings Ltd. | Textiles, Apparel & Luxury Goods | 4,500 | | 40,872 |
| | Sichuan Kelun Pharmaceutical Co. Ltd., Class A | Pharmaceuticals | 500 | | 2,286 |
| | Sichuan Road & Bridge Group Co. Ltd., Class A | Construction & Engineering | 2,000 | | 2,009 |
| 6 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin Emerging Market Core Dividend Tilt Index ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | China (continued) | | | | |
| | Sinoma International Engineering Co., Class A | Construction & Engineering | 1,000 | | $ 1,643 |
| | Sinoma Science & Technology Co. Ltd., Class A | Chemicals | 500 | | 912 |
| | Sinopharm Group Co. Ltd., Class H | Health Care Providers & Services | 8,000 | | 21,423 |
| | Sinotrans Ltd., Class A | Air Freight & Logistics | 1,500 | | 1,183 |
| | Sinotrans Ltd., Class H | Air Freight & Logistics | 10,000 | | 5,124 |
| | Sinotruk Hong Kong Ltd. | Machinery | 2,500 | | 7,515 |
| | TCL Zhonghuan Renewable Energy Technology Co. Ltd., Class A | Semiconductors & Semiconductor Equipment | 1,500 | | 2,220 |
| b | Tencent Holdings Ltd. | Interactive Media & Services | 4,000 | | 228,954 |
| | Tianjin Pharmaceutical Da Re Tang Group Corp. Ltd., Class A | Pharmaceuticals | 500 | | 2,536 |
| | Tianqi Lithium Corp., Class A | Chemicals | 500 | | 2,515 |
| | Tonghua Dongbao Pharmaceutical Co. Ltd., Class A | Pharmaceuticals | 1,000 | | 1,253 |
| | Tongwei Co. Ltd., Class A | Semiconductors & Semiconductor Equipment | 2,000 | | 6,524 |
| a | Topsports International Holdings Ltd. | Specialty Retail | 15,000 | | 6,662 |
| | Trina Solar Co. Ltd., Class A | Semiconductors & Semiconductor Equipment | 1,005 | | 3,219 |
| | Tsingtao Brewery Co. Ltd., Class A | Beverages | 500 | | 5,598 |
| | Tsingtao Brewery Co. Ltd., Class H | Beverages | 3,295 | | 25,792 |
| | Uni-President China Holdings Ltd. | Food Products | 5,000 | | 4,693 |
| | Want Want China Holdings Ltd. | Food Products | 20,000 | | 13,750 |
| | Weichai Power Co. Ltd., Class A | Machinery | 3,000 | | 6,803 |
| | Weichai Power Co. Ltd., Class H | Machinery | 10,000 | | 18,487 |
| | Western Superconducting Technologies Co. Ltd., Class A | Metals & Mining | 287 | | 1,904 |
| | Wuchan Zhongda Group Co. Ltd., Class A | Distributors | 2,500 | | 1,822 |
| | Wuliangye Yibin Co. Ltd., Class A | Beverages | 1,500 | | 34,830 |
| | WuXi AppTec Co. Ltd., Class A | Life Sciences Tools & Services | 1,000 | | 7,481 |
| a | WuXi AppTec Co. Ltd., Class H | Life Sciences Tools & Services | 1,500 | | 10,544 |
| | Xiamen C & D, Inc., Class A | Trading Companies & Distributors | 1,500 | | 2,188 |
| | Xinyi Solar Holdings Ltd. | Semiconductors & Semiconductor Equipment | 31,000 | | 16,842 |
| a | Yadea Group Holdings Ltd. | Automobiles | 6,000 | | 10,675 |
| | Yankuang Energy Group Co. Ltd., Class A | Oil, Gas & Consumable Fuels | 1,950 | | 4,653 |
| | Yankuang Energy Group Co. Ltd., Class H | Oil, Gas & Consumable Fuels | 20,100 | | 28,413 |
| | Youngor Fashion Co. Ltd., Class A | Real Estate Management & Development | 2,000 | | 2,309 |
| | Yuexiu Property Co. Ltd. | Real Estate Management & Development | 5,000 | | 4,094 |
| | Yunnan Baiyao Group Co. Ltd., Class A | Pharmaceuticals | 500 | | 4,358 |
| | Yunnan Energy New Material Co. Ltd., Class A | Chemicals | 500 | | 2,444 |
| | Yunnan Yuntianhua Co. Ltd., Class A | Chemicals | 500 | | 1,617 |
| | Yutong Bus Co. Ltd., Class A | Machinery | 1,000 | | 3,765 |
| | Zangge Mining Co. Ltd., Class A | Chemicals | 500 | | 2,054 |
| | Zhejiang China Commodities City Group Co. Ltd., Class A | Broadline Retail | 500 | | 689 |
| | Zhejiang Chint Electrics Co. Ltd., Class A | Electrical Equipment | 1,000 | | 3,249 |
| | Zhejiang Dahua Technology Co. Ltd., Class A | Electronic Equipment, Instruments & Components | 1,500 | | 3,691 |
| | Zhejiang Huayou Cobalt Co. Ltd., Class A | Metals & Mining | 500 | | 2,108 |
| | Zhejiang Weixing New Building Materials Co. Ltd., Class A | Building Products | 500 | | 1,069 |
| | Zhejiang Zheneng Electric Power Co. Ltd., Class A | Independent Power Producers & Energy Traders | 4,500 | | 4,327 |
| | Zhongsheng Group Holdings Ltd. | Specialty Retail | 4,000 | | 7,426 |
| | Zhuzhou Kibing Group Co. Ltd., Class A | Building Products | 1,000 | | 910 |
| | Zoomlion Heavy Industry Science & Technology Co. Ltd., Class A | Machinery | 3,000 | | 3,249 |
| | Zoomlion Heavy Industry Science & Technology Co. Ltd., Class H | Machinery | 8,000 | | 5,881 |
| | ZTE Corp., Class A | Communications Equipment | 1,500 | | 6,676 |
| franklintempleton.com | Semi-Annual Report | 7 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin Emerging Market Core Dividend Tilt Index ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | China (continued) | | | | |
| | ZTE Corp., Class H | Communications Equipment | 4,000 | | $ 10,351 |
| b | ZTO Express Cayman, Inc. | Air Freight & Logistics | 2,000 | | 50,441 |
| | | | | | 3,998,509 |
| | Colombia 0.3% | | | | |
| | Bancolombia SA | Banks | 1,495 | | 12,980 |
| | Ecopetrol SA | Oil, Gas & Consumable Fuels | 25,185 | | 11,343 |
| | Grupo de Inversiones Suramericana SA | Financial Services | 115 | | 799 |
| | Grupo Energia Bogota SA ESP | Gas Utilities | 14,565 | | 8,654 |
| | Interconexion Electrica SA ESP | Electric Utilities | 2,455 | | 10,046 |
| | | | | | 43,822 |
| | Czech Republic 0.3% | | | | |
| | CEZ AS | Electric Utilities | 785 | | 30,592 |
| | Komercni Banka AS | Banks | 375 | | 13,244 |
| | | | | | 43,836 |
| | Greece 0.8% | | | | |
| | Eurobank Ergasias Services & Holdings SA, Class A | Banks | 12,900 | | 29,629 |
| | Hellenic Telecommunications Organization SA | Diversified Telecommunication Services | 975 | | 16,856 |
| | Helleniq Energy Holdings SA | Oil, Gas & Consumable Fuels | 420 | | 3,274 |
| | Jumbo SA | Specialty Retail | 525 | | 15,058 |
| | Metlen Energy & Metals SA | Industrial Conglomerates | 510 | | 20,138 |
| | Motor Oil Hellas Corinth Refineries SA | Oil, Gas & Consumable Fuels | 290 | | 6,881 |
| | OPAP SA | Hotels, Restaurants & Leisure | 905 | | 16,120 |
| | | | | | 107,956 |
| | Hong Kong 1.6% | | | | |
| | Beijing Enterprises Water Group Ltd., Class A | Water Utilities | 20,000 | | 6,231 |
| | Bosideng International Holdings Ltd., Class A | Textiles, Apparel & Luxury Goods | 20,000 | | 11,484 |
| | China Everbright Environment Group Ltd., Class B | Commercial Services & Supplies | 20,000 | | 9,656 |
| | China Gas Holdings Ltd., Class A | Gas Utilities | 16,000 | | 14,893 |
| | China Mengniu Dairy Co. Ltd., Class B | Food Products | 15,000 | | 36,112 |
| | China Power International Development Ltd., Class H | Independent Power Producers & Energy Traders | 25,000 | | 11,941 |
| | China Resources Gas Group Ltd., Class A | Gas Utilities | 4,000 | | 16,144 |
| | China Resources Land Ltd., Class H | Real Estate Management & Development | 17,500 | | 64,548 |
| | Far East Horizon Ltd. | Financial Services | 10,000 | | 7,325 |
| | Geely Automobile Holdings Ltd. | Automobiles | 15,000 | | 23,521 |
| | Guangdong Investment Ltd. | Water Utilities | 15,000 | | 10,100 |
| | Orient Overseas International Ltd. | Marine Transportation | 750 | | 10,660 |
| | Xinyi Glass Holdings Ltd. | Building Products | 10,000 | | 11,921 |
| | | | | | 234,536 |
| | Hungary 0.2% | | | | |
| | MOL Hungarian Oil & Gas PLC | Oil, Gas & Consumable Fuels | 1,900 | | 14,245 |
| | Richter Gedeon Nyrt | Pharmaceuticals | 690 | | 21,310 |
| | | | | | 35,555 |
| | India 16.5% | | | | |
| c | Adani Green Energy Ltd. | Independent Power Producers & Energy Traders | 175 | | 3,973 |
| | Ashok Leyland Ltd. | Machinery | 7,090 | | 19,916 |
| | Asian Paints Ltd. | Chemicals | 545 | | 21,651 |
| | Bank of Baroda | Banks | 5,525 | | 16,337 |
| | Bank of India | Banks | 4,790 | | 6,322 |
| | Bharat Electronics Ltd. | Aerospace & Defense | 725 | | 2,467 |
| | Bharat Forge Ltd. | Automobile Components | 100 | | 1,810 |
| 8 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin Emerging Market Core Dividend Tilt Index ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | India (continued) | | | | |
| | Bharat Petroleum Corp. Ltd. | Oil, Gas & Consumable Fuels | 10,425 | | $ 46,022 |
| | Bosch Ltd. | Automobile Components | 40 | | 17,985 |
| | Britannia Industries Ltd. | Food Products | 155 | | 11,723 |
| | Canara Bank | Banks | 9,885 | | 13,132 |
| | Coal India Ltd. | Oil, Gas & Consumable Fuels | 12,235 | | 74,482 |
| | Colgate-Palmolive India Ltd. | Personal Care Products | 55 | | 2,497 |
| | Container Corp. of India Ltd. | Ground Transportation | 1,410 | | 15,451 |
| | Cummins India Ltd. | Machinery | 665 | | 30,203 |
| | Eicher Motors Ltd. | Automobiles | 275 | | 16,494 |
| | Embassy Office Parks REIT | Office REITs | 2,890 | | 13,447 |
| | GAIL India Ltd. | Gas Utilities | 15,560 | | 44,616 |
| | Godrej Consumer Products Ltd. | Personal Care Products | 1,910 | | 31,758 |
| | HCL Technologies Ltd. | IT Services | 4,820 | | 103,306 |
| a | HDFC Asset Management Co. Ltd. | Capital Markets | 90 | | 4,617 |
| | HDFC Bank Ltd. | Banks | 7,775 | | 160,698 |
| | Hero MotoCorp Ltd. | Automobiles | 630 | | 42,945 |
| | Hindustan Petroleum Corp. Ltd. | Oil, Gas & Consumable Fuels | 4,890 | | 25,707 |
| | Hindustan Unilever Ltd. | Personal Care Products | 2,710 | | 95,667 |
| | Indian Bank | Banks | 1,490 | | 9,318 |
| | Indian Oil Corp. Ltd. | Oil, Gas & Consumable Fuels | 19,765 | | 42,489 |
| a | Indian Railway Finance Corp. Ltd. | Financial Services | 895 | | 1,695 |
| | Info Edge India Ltd. | Interactive Media & Services | 400 | | 38,666 |
| | Infosys Ltd. | IT Services | 9,750 | | 218,220 |
| | ITC Ltd. | Tobacco | 14,515 | | 89,748 |
| a | L&T Technology Services Ltd. | Professional Services | 30 | | 1,913 |
| | Larsen & Toubro Ltd. | Construction & Engineering | 35 | | 1,535 |
| a | LTIMindtree Ltd. | IT Services | 450 | | 33,531 |
| a | Macrotech Developers Ltd. | Real Estate Management & Development | 310 | | 4,566 |
| | Mahindra & Mahindra Ltd. | Automobiles | 570 | | 21,051 |
| | Marico Ltd. | Food Products | 3,055 | | 25,351 |
| | Maruti Suzuki India Ltd. | Automobiles | 150 | | 23,695 |
| | Mphasis Ltd. | IT Services | 420 | | 15,088 |
| | NHPC Ltd. | Independent Power Producers & Energy Traders | 14,755 | | 16,718 |
| | NMDC Ltd. | Metals & Mining | 6,215 | | 18,163 |
| | NTPC Ltd. | Independent Power Producers & Energy Traders | 20,240 | | 107,043 |
| | Oberoi Realty Ltd. | Real Estate Management & Development | 175 | | 3,951 |
| | Oil & Natural Gas Corp. Ltd. | Oil, Gas & Consumable Fuels | 24,120 | | 85,656 |
| | Oil India Ltd. | Oil, Gas & Consumable Fuels | 1,665 | | 11,537 |
| | Oracle Financial Services Software Ltd. | Software | 110 | | 15,041 |
| | Page Industries Ltd. | Textiles, Apparel & Luxury Goods | 5 | | 2,560 |
| | Patanjali Foods Ltd. | Food Products | 160 | | 3,214 |
| c | PB Fintech Ltd. | Insurance | 1,150 | | 22,231 |
| | Persistent Systems Ltd. | IT Services | 505 | | 32,845 |
| | Petronet LNG Ltd. | Oil, Gas & Consumable Fuels | 3,265 | | 13,307 |
| | Power Finance Corp. Ltd. | Financial Services | 7,195 | | 41,903 |
| | Power Grid Corp. of India Ltd. | Electric Utilities | 22,810 | | 96,043 |
| | REC Ltd. | Financial Services | 6,345 | | 41,984 |
| | Reliance Industries Ltd. | Oil, Gas & Consumable Fuels | 590 | | 20,792 |
| | Shree Cement Ltd. | Construction Materials | 5 | | 1,570 |
| | Shriram Finance Ltd. | Consumer Finance | 595 | | 25,397 |
| | State Bank of India | Banks | 3,025 | | 28,441 |
| | Tata Communications Ltd. | Diversified Telecommunication Services | 580 | | 14,775 |
| | Tata Consultancy Services Ltd. | IT Services | 2,130 | | 108,494 |
| | Tata Steel Ltd. | Metals & Mining | 31,280 | | 62,914 |
| | Tech Mahindra Ltd. | IT Services | 3,225 | | 60,697 |
| | UltraTech Cement Ltd. | Construction Materials | 245 | | 34,504 |
| | Union Bank of India Ltd. | Banks | 7,845 | | 11,493 |
| franklintempleton.com | Semi-Annual Report | 9 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin Emerging Market Core Dividend Tilt Index ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | India (continued) | | | | |
| | Vedanta Ltd. | Metals & Mining | 9,285 | | $ 56,801 |
| c | Zomato Ltd. | Hotels, Restaurants & Leisure | 20,495 | | 66,840 |
| | | | | | 2,355,006 |
| | Indonesia 2.3% | | | | |
| | Adaro Energy Indonesia Tbk. PT, Class B | Oil, Gas & Consumable Fuels | 67,500 | | 16,986 |
| | Aneka Tambang Tbk. PT | Metals & Mining | 44,000 | | 4,301 |
| | Astra International Tbk. PT, Class H | Industrial Conglomerates | 91,500 | | 30,520 |
| | Bank Mandiri Persero Tbk. PT, Class A | Banks | 170,500 | | 77,986 |
| | Bank Negara Indonesia Persero Tbk. PT, Class H | Banks | 70,000 | | 24,736 |
| | Bank Rakyat Indonesia Persero Tbk. PT, Class A | Banks | 300,000 | | 98,085 |
| | Bukit Asam Tbk. PT, Class A | Oil, Gas & Consumable Fuels | 19,500 | | 3,967 |
| | Indofood Sukses Makmur Tbk. PT | Food Products | 21,500 | | 10,012 |
| a | Pertamina Geothermal Energy PT | Independent Power Producers & Energy Traders | 28,000 | | 2,099 |
| | Telkom Indonesia Persero Tbk. PT, Class B | Diversified Telecommunication Services | 236,000 | | 46,608 |
| | Unilever Indonesia Tbk. PT | Household Products | 33,000 | | 4,817 |
| | United Tractors Tbk. PT | Oil, Gas & Consumable Fuels | 7,000 | | 12,553 |
| | | | | | 332,670 |
| | Kuwait 0.4% | | | | |
| | Agility Public Warehousing Co. KSC | Air Freight & Logistics | 10,175 | | 7,300 |
| | Kuwait Finance House KSCP | Banks | 14,270 | | 33,472 |
| | Mobile Telecommunications Co. KSCP | Wireless Telecommunication Services | 10,630 | | 16,541 |
| | | | | | 57,313 |
| | Malaysia 2.2% | | | | |
| | AMMB Holdings Bhd. | Banks | 11,000 | | 13,338 |
| | Axiata Group Bhd., Class A | Wireless Telecommunication Services | 15,500 | | 9,472 |
| | CIMB Group Holdings Bhd., Class A | Banks | 39,500 | | 77,113 |
| | Genting Malaysia Bhd. | Hotels, Restaurants & Leisure | 15,000 | | 8,803 |
| | HAP Seng Consolidated Bhd. | Industrial Conglomerates | 2,000 | | 1,969 |
| | KLCCP Stapled Group | Diversified REITs | 3,000 | | 5,820 |
| | Malayan Banking Bhd. | Banks | 33,000 | | 83,870 |
| | Maxis Bhd. | Wireless Telecommunication Services | 15,000 | | 14,369 |
| | MISC Bhd. | Marine Transportation | 12,000 | | 22,699 |
| | Petronas Dagangan Bhd. | Oil, Gas & Consumable Fuels | 2,000 | | 8,663 |
| | Petronas Gas Bhd. | Gas Utilities | 4,000 | | 17,461 |
| | RHB Bank Bhd. | Banks | 19,000 | | 28,476 |
| | Sime Darby Bhd. | Industrial Conglomerates | 20,000 | | 11,932 |
| | Westports Holdings Bhd. | Transportation Infrastructure | 5,000 | | 5,178 |
| | | | | | 309,163 |
| | Mexico 2.0% | | | | |
| | Fibra Uno Administracion SA de CV | Diversified REITs | 14,910 | | 17,434 |
| | Fomento Economico Mexicano SAB de CV | Beverages | 10,155 | | 100,690 |
| a | GMexico Transportes SAB de CV, Class C | Ground Transportation | 2,800 | | 4,864 |
| | Grupo Aeroportuario del Pacifico SAB de CV, Class B | Transportation Infrastructure | 2,010 | | 35,058 |
| | Grupo Financiero Banorte SAB de CV, Class O | Banks | 14,615 | | 104,009 |
| | Kimberly-Clark de Mexico SAB de CV, Class A | Household Products | 8,055 | | 13,084 |
| | Orbia Advance Corp. SAB de CV | Chemicals | 4,880 | | 4,957 |
| | | | | | 280,096 |
| | Peru 0.4% | | | | |
| | Credicorp Ltd. | Banks | 330 | | 59,720 |
| 10 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin Emerging Market Core Dividend Tilt Index ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | Philippines 0.2% | | | | |
| | Aboitiz Equity Ventures, Inc. | Industrial Conglomerates | 10,500 | | $ 6,961 |
| | Aboitiz Power Corp., Class A | Independent Power Producers & Energy Traders | 7,500 | | 5,099 |
| | Manila Electric Co. | Electric Utilities | 1,550 | | 12,121 |
| | PLDT, Inc. | Wireless Telecommunication Services | 450 | | 11,965 |
| | | | | | 36,146 |
| c,d,e | Russia 0.0% | | | | |
| | Alrosa PJSC | Metals & Mining | 54,971 | | — |
| | Gazprom PJSC | Oil, Gas & Consumable Fuels | 44,709 | | — |
| | GMK Norilskiy Nickel PAO | Metals & Mining | 69,300 | | — |
| | Inter RAO UES PJSC | Electric Utilities | 811,741 | | — |
| | LUKOIL PJSC | Oil, Gas & Consumable Fuels | 2,268 | | — |
| | Moscow Exchange MICEX-RTS PJSC | Capital Markets | 21,224 | | — |
| | Novolipetsk Steel PJSC | Metals & Mining | 35,119 | | — |
| | PhosAgro PJSC | Chemicals | 1,073 | | — |
| | PhosAgro PJSC | Chemicals | 21 | | — |
| f | PhosAgro PJSC, GDR | Chemicals | 1 | | — |
| | Polyus PJSC | Metals & Mining | 756 | | — |
| | Rosneft Oil Co. PJSC | Oil, Gas & Consumable Fuels | 20,055 | | — |
| | Severstal PAO | Metals & Mining | 6,090 | | — |
| | Surgutneftegas PJSC | Oil, Gas & Consumable Fuels | 132,846 | | — |
| | Tatneft PJSC | Oil, Gas & Consumable Fuels | 29,792 | | — |
| | United Co. RUSAL International PJSC | Metals & Mining | 24,749 | | — |
| | | | | | — |
| | Saudi Arabia 4.0% | | | | |
| | Banque Saudi Fransi | Banks | 3,020 | | 25,922 |
| | Jarir Marketing Co. | Specialty Retail | 2,925 | | 10,245 |
| | Nahdi Medical Co. | Consumer Staples Distribution & Retail | 275 | | 9,647 |
| | Riyad Bank | Banks | 7,640 | | 50,751 |
| | SABIC Agri-Nutrients Co. | Chemicals | 1,225 | | 38,794 |
| | Sahara International Petrochemical Co. | Chemicals | 385 | | 3,012 |
| a | Saudi Arabian Oil Co. | Oil, Gas & Consumable Fuels | 19,010 | | 137,328 |
| | Saudi Aramco Base Oil Co. | Chemicals | 250 | | 8,837 |
| | Saudi Awwal Bank | Banks | 5,195 | | 47,984 |
| | Saudi Basic Industries Corp. | Chemicals | 4,620 | | 92,242 |
| | Saudi Industrial Investment Group | Chemicals | 1,785 | | 9,317 |
| | Saudi Investment Bank | Banks | 2,895 | | 10,063 |
| | Saudi National Bank | Banks | 12,105 | | 110,679 |
| | Saudi Telecom Co. | Diversified Telecommunication Services | 525 | | 6,116 |
| | Yanbu National Petrochemical Co. | Chemicals | 1,255 | | 14,285 |
| | | | | | 575,222 |
| | Singapore 0.1% | | | | |
| a | BOC Aviation Ltd., Class A | Trading Companies & Distributors | 1,000 | | 8,278 |
| | South Africa 3.1% | | | | |
| | Absa Group Ltd. | Banks | 4,435 | | 45,152 |
| | African Rainbow Minerals Ltd. | Metals & Mining | 575 | | 6,318 |
| | Exxaro Resources Ltd. | Oil, Gas & Consumable Fuels | 1,275 | | 12,730 |
| | FirstRand Ltd. | Financial Services | 19,630 | | 94,616 |
| | Kumba Iron Ore Ltd. | Metals & Mining | 295 | | 6,865 |
| | Nedbank Group Ltd. | Banks | 2,455 | | 42,592 |
| | Northam Platinum Holdings Ltd. | Metals & Mining | 2,090 | | 13,225 |
| | Old Mutual Ltd. | Insurance | 22,920 | | 18,222 |
| | Sanlam Ltd. | Insurance | 9,325 | | 47,619 |
| | Sasol Ltd. | Chemicals | 3,460 | | 23,301 |
| | Standard Bank Group Ltd. | Banks | 7,060 | | 99,289 |
| | Vodacom Group Ltd. | Wireless Telecommunication Services | 2,790 | | 17,723 |
| franklintempleton.com | Semi-Annual Report | 11 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin Emerging Market Core Dividend Tilt Index ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | South Africa (continued) | | | | |
| | Woolworths Holdings Ltd. | Broadline Retail | 4,690 | | $ 18,537 |
| | | | | | 446,189 |
| | South Korea 6.2% | | | | |
| | DB Insurance Co. Ltd., Class A | Insurance | 70 | | 6,011 |
| | GS Holdings Corp. | Industrial Conglomerates | 390 | | 12,690 |
| | Hana Financial Group, Inc. | Banks | 1,540 | | 69,245 |
| | Hanon Systems | Automobile Components | 800 | | 2,603 |
| | HD Hyundai Co. Ltd. | Oil, Gas & Consumable Fuels | 220 | | 12,870 |
| | HMM Co. Ltd. | Marine Transportation | 1,165 | | 16,508 |
| | Hyundai Motor Co. | Automobiles | 565 | | 105,422 |
| | Industrial Bank of Korea | Banks | 1,285 | | 13,727 |
| | Kangwon Land, Inc. | Hotels, Restaurants & Leisure | 515 | | 6,683 |
| | KB Financial Group, Inc. | Banks | 145 | | 8,970 |
| | Kia Corp. | Automobiles | 1,300 | | 99,312 |
| | KT&G Corp. | Tobacco | 550 | | 45,802 |
| | LG Corp. | Industrial Conglomerates | 530 | | 32,059 |
| | LG Uplus Corp. | Diversified Telecommunication Services | 1,015 | | 7,614 |
| | Lotte Chemical Corp. | Chemicals | 100 | | 7,762 |
| | NH Investment & Securities Co. Ltd., Class C | Capital Markets | 705 | | 7,235 |
| | Samsung Card Co. Ltd. | Consumer Finance | 125 | | 3,933 |
| | Samsung Electronics Co. Ltd. | Technology Hardware, Storage & Peripherals | 6,990 | | 328,734 |
| | Samsung Fire & Marine Insurance Co. Ltd. | Insurance | 80 | | 21,075 |
| | Samsung Securities Co. Ltd. | Capital Markets | 330 | | 10,990 |
| | SK Telecom Co. Ltd. | Wireless Telecommunication Services | 520 | | 22,228 |
| | Woori Financial Group, Inc. | Banks | 3,385 | | 40,122 |
| | | | | | 881,595 |
| | Taiwan 21.2% | | | | |
| | Acer, Inc., Class H | Technology Hardware, Storage & Peripherals | 15,000 | | 19,339 |
| | ASE Technology Holding Co. Ltd., Class A | Semiconductors & Semiconductor Equipment | 18,000 | | 85,886 |
| | Asia Cement Corp. | Construction Materials | 15,000 | | 22,633 |
| | Asustek Computer, Inc. | Technology Hardware, Storage & Peripherals | 1,400 | | 24,464 |
| | AUO Corp., Class H | Electronic Equipment, Instruments & Components | 35,200 | | 18,964 |
| | Catcher Technology Co. Ltd. | Technology Hardware, Storage & Peripherals | 3,770 | | 28,174 |
| | Chailease Holding Co. Ltd., Class A | Financial Services | 8,730 | | 45,103 |
| | Cheng Shin Rubber Industry Co. Ltd., Class A | Automobile Components | 12,000 | | 19,642 |
| | Chicony Electronics Co. Ltd. | Technology Hardware, Storage & Peripherals | 3,340 | | 17,309 |
| | Chunghwa Telecom Co. Ltd. | Diversified Telecommunication Services | 19,000 | | 75,348 |
| | Compal Electronics, Inc., Class H | Technology Hardware, Storage & Peripherals | 20,000 | | 21,045 |
| | CTBC Financial Holding Co. Ltd., Class A | Banks | 100,000 | | 108,701 |
| | E.Sun Financial Holding Co. Ltd., Class A | Banks | 75,000 | | 66,477 |
| | Elite Material Co. Ltd. | Electronic Equipment, Instruments & Components | 1,340 | | 18,927 |
| | Eva Airways Corp., Class H | Passenger Airlines | 15,000 | | 17,774 |
| | Evergreen Marine Corp. Taiwan Ltd. | Marine Transportation | 5,000 | | 31,757 |
| | Far Eastern New Century Corp. | Industrial Conglomerates | 5,000 | | 6,067 |
| | Far EasTone Telecommunications Co. Ltd. | Wireless Telecommunication Services | 5,000 | | 14,330 |
| | Gigabyte Technology Co. Ltd. | Technology Hardware, Storage & Peripherals | 2,000 | | 16,337 |
| | Globalwafers Co. Ltd. | Semiconductors & Semiconductor Equipment | 1,200 | | 17,253 |
| | Hon Hai Precision Industry Co. Ltd. | Electronic Equipment, Instruments & Components | 20,000 | | 118,496 |
| | Hua Nan Financial Holdings Co. Ltd., Class C | Banks | 50,000 | | 40,605 |
| | Innolux Corp. | Electronic Equipment, Instruments & Components | 45,000 | | 22,965 |
| | Inventec Corp. | Technology Hardware, Storage & Peripherals | 15,000 | | 20,429 |
| | Lite-On Technology Corp. | Technology Hardware, Storage & Peripherals | 11,700 | | 36,786 |
| | MediaTek, Inc. | Semiconductors & Semiconductor Equipment | 4,750 | | 176,362 |
| | Mega Financial Holding Co. Ltd. | Banks | 35,000 | | 43,464 |
| | Micro-Star International Co. Ltd. | Technology Hardware, Storage & Peripherals | 400 | | 2,199 |
| | momo.com, Inc. | Broadline Retail | 483 | | 6,013 |
| 12 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin Emerging Market Core Dividend Tilt Index ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | Taiwan (continued) | | | | |
| | Nan Ya Printed Circuit Board Corp. | Electronic Equipment, Instruments & Components | 1,000 | | $ 4,503 |
| | Nien Made Enterprise Co. Ltd. | Household Durables | 950 | | 15,310 |
| | Novatek Microelectronics Corp. | Semiconductors & Semiconductor Equipment | 3,100 | | 50,742 |
| | Pegatron Corp. | Technology Hardware, Storage & Peripherals | 10,000 | | 32,547 |
| | Powertech Technology, Inc. | Semiconductors & Semiconductor Equipment | 3,500 | | 15,152 |
| | Quanta Computer, Inc. | Technology Hardware, Storage & Peripherals | 14,000 | | 116,790 |
| | Radiant Opto-Electronics Corp. | Semiconductors & Semiconductor Equipment | 2,000 | | 12,292 |
| | Realtek Semiconductor Corp. | Semiconductors & Semiconductor Equipment | 2,560 | | 38,101 |
| | Shanghai Commercial & Savings Bank Ltd. | Banks | 25,000 | | 30,493 |
| | Simplo Technology Co. Ltd. | Electronic Equipment, Instruments & Components | 1,000 | | 11,170 |
| | Sino-American Silicon Products, Inc. | Semiconductors & Semiconductor Equipment | 3,340 | | 18,681 |
| | Synnex Technology International Corp. | Electronic Equipment, Instruments & Components | 7,500 | | 17,182 |
| | Taiwan Mobile Co. Ltd. | Wireless Telecommunication Services | 7,000 | | 25,437 |
| | Taiwan Semiconductor Manufacturing Co. Ltd. | Semiconductors & Semiconductor Equipment | 41,000 | | 1,239,853 |
| | Teco Electric & Machinery Co. Ltd. | Electrical Equipment | 10,000 | | 15,420 |
| | Tripod Technology Corp. | Electronic Equipment, Instruments & Components | 2,600 | | 16,144 |
| | Unimicron Technology Corp. | Electronic Equipment, Instruments & Components | 2,000 | | 9,101 |
| | Uni-President Enterprises Corp. | Food Products | 5,000 | | 13,777 |
| | United Microelectronics Corp. | Semiconductors & Semiconductor Equipment | 60,000 | | 102,002 |
| | Vanguard International Semiconductor Corp. | Semiconductors & Semiconductor Equipment | 5,000 | | 16,353 |
| c | Winbond Electronics Corp. | Semiconductors & Semiconductor Equipment | 19,918 | | 13,437 |
| | Wistron Corp. | Technology Hardware, Storage & Peripherals | 7,000 | | 22,341 |
| | Wiwynn Corp. | Technology Hardware, Storage & Peripherals | 650 | | 35,225 |
| | WPG Holdings Ltd. | Electronic Equipment, Instruments & Components | 9,000 | | 21,329 |
| | | | | | 3,036,231 |
| | Thailand 1.4% | | | | |
| | Advanced Info Service PCL, NVDR | Wireless Telecommunication Services | 5,000 | | 40,401 |
| | Bangkok Bank PCL, Class A, NVDR | Banks | 2,500 | | 11,693 |
| c | BTS Group Holdings PCL, Class A, NVDR | Ground Transportation | 29,000 | | 4,056 |
| | Energy Absolute PCL, Class A, NVDR | Independent Power Producers & Energy Traders | 9,000 | | 2,503 |
| | Home Product Center PCL, NVDR | Specialty Retail | 16,000 | | 5,171 |
| | Indorama Ventures PCL, NVDR | Chemicals | 7,500 | | 5,757 |
| | Intouch Holdings PCL, NVDR | Wireless Telecommunication Services | 4,000 | | 11,499 |
| | Krung Thai Bank PCL, NVDR | Banks | 15,500 | | 9,923 |
| | Land & Houses PCL, NVDR | Real Estate Management & Development | 17,500 | | 3,481 |
| | PTT Exploration & Production PCL, NVDR | Oil, Gas & Consumable Fuels | 7,500 | | 30,534 |
| | PTT PCL, NVDR | Oil, Gas & Consumable Fuels | 43,000 | | 45,435 |
| | Thai Oil PCL, NVDR | Oil, Gas & Consumable Fuels | 4,500 | | 7,167 |
| | Tisco Financial Group PCL, NVDR | Banks | 2,000 | | 5,998 |
| | TMBThanachart Bank PCL, NVDR | Banks | 179,000 | | 10,959 |
| | | | | | 194,577 |
| | Turkey 0.5% | | | | |
| | Enka Insaat ve Sanayi AS | Construction & Engineering | 3,760 | | 4,982 |
| | Ford Otomotiv Sanayi AS | Automobiles | 395 | | 10,607 |
| | KOC Holding AS | Industrial Conglomerates | 4,115 | | 22,653 |
| | Tofas Turk Otomobil Fabrikasi AS | Automobiles | 710 | | 4,476 |
| | Turkiye Petrol Rafinerileri AS | Oil, Gas & Consumable Fuels | 4,875 | | 22,131 |
| | Yapi ve Kredi Bankasi AS | Banks | 9,120 | | 8,248 |
| | | | | | 73,097 |
| | United Arab Emirates 3.3% | | | | |
| | Abu Dhabi Commercial Bank PJSC | Banks | 14,605 | | 33,481 |
| | Abu Dhabi Islamic Bank PJSC | Banks | 7,000 | | 24,242 |
| | Abu Dhabi National Oil Co. for Distribution PJSC | Specialty Retail | 14,420 | | 14,173 |
| | ADNOC Drilling Co. PJSC | Energy Equipment & Services | 8,570 | | 11,036 |
| | Dubai Electricity & Water Authority PJSC | Multi-Utilities | 44,475 | | 30,877 |
| franklintempleton.com | Semi-Annual Report | 13 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin Emerging Market Core Dividend Tilt Index ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | United Arab Emirates (continued) | | | | |
| | Dubai Islamic Bank PJSC | Banks | 14,485 | | $ 24,845 |
| | Emaar Development PJSC | Real Estate Management & Development | 4,075 | | 9,685 |
| | Emaar Properties PJSC | Real Estate Management & Development | 30,760 | | 73,027 |
| | Emirates NBD Bank PJSC | Banks | 12,130 | | 67,040 |
| | Emirates Telecommunications Group Co. PJSC | Diversified Telecommunication Services | 17,650 | | 88,899 |
| | Fertiglobe PLC | Chemicals | 5,855 | | 4,160 |
| | First Abu Dhabi Bank PJSC | Banks | 21,815 | | 81,606 |
| | Salik Co. PJSC | Transportation Infrastructure | 8,745 | | 9,833 |
| | | | | | 472,904 |
| | United States 0.1% | | | | |
| | JBS SA | Food Products | 3,500 | | 20,328 |
| | Total Common Stocks (Cost $12,926,629) | | | | 14,116,039 |
| | Preferred Stocks 1.8% | | | | |
| | Brazil 0.9% | | | | |
| g | Cia Energetica de Minas Gerais, 12.798%, pfd. | Electric Utilities | 9,500 | | 19,887 |
| g | Gerdau SA, 4.581%, pfd. | Metals & Mining | 4,970 | | 17,431 |
| g | Petroleo Brasileiro SA, 12.966%, pfd. | Oil, Gas & Consumable Fuels | 13,000 | | 85,962 |
| | | | | | 123,280 |
| | Chile 0.2% | | | | |
| g | Sociedad Quimica y Minera de Chile SA, Class B, Class B, 0.002%, pfd. | Chemicals | 725 | | 30,122 |
| | Colombia 0.2% | | | | |
| g | Bancolombia SA, 10.657%, pfd. | Banks | 2,400 | | 19,078 |
| g | Grupo Aval Acciones y Valores SA, 7.619%, pfd. | Banks | 18,880 | | 1,900 |
| g | Grupo de Inversiones Suramericana SA, 6.303%, pfd. | Financial Services | 325 | | 1,655 |
| | | | | | 22,633 |
| | Russia 0.0% | | | | |
| c,d,e | Surgutneftegas PJSC, pfd. | Oil, Gas & Consumable Fuels | 162,582 | | — |
| | South Korea 0.5% | | | | |
| g | Hyundai Motor Co., 7.127%, pfd. | Automobiles | 135 | | 18,107 |
| g | Hyundai Motor Co., 7.328%, pfd. | Automobiles | 85 | | 11,043 |
| g | Hyundai Motor Co., 7.336%, pfd. | Automobiles | 10 | | 1,298 |
| g | Samsung Electronics Co. Ltd., 2.13%, pfd. | Technology Hardware, Storage & Peripherals | 1,120 | | 43,594 |
| g | Samsung Fire & Marine Insurance Co. Ltd., 5.831%, pfd. | Insurance | 5 | | 1,050 |
| | | | | | 75,092 |
| | Total Preferred Stocks (Cost $307,411) | | | | 251,127 |
| | Total Investments before Short-Term Investments (Cost $13,234,040) | | | | 14,367,166 |
| 14 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin Emerging Market Core Dividend Tilt Index ETF (continued)
| | | Industry | Shares | | Value |
| | Short-Term Investments 0.0%† | | | | |
| | Money Market Funds 0.0%† | | | | |
| | United States 0.0%† | | | | |
| h,i | Institutional Fiduciary Trust - Money Market Portfolio, 4.74% | Money Market Funds | 51 | | $ 51 |
| | Total Short-Term Investments (Cost $51) | | | | 51 |
| | Total Investments (Cost $13,234,091) 100.4% | | | | 14,367,217 |
| | Other Assets, less Liabilities (0.4)% | | | | (58,272) |
| | Net Assets 100.0% | | | | $ 14,308,945 |
| †Rounds to less than 0.1% of net assets. |
| aSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At September 30, 2024, the value of was $465,835, representing 3.3% of net assets. |
| bVariable interest entity (VIE). See Note 6 regarding investments made through a VIE structure. At September 30, 2024, the aggregate value of these securities was $811,798, representing 5.7% of net assets. |
| cNon-income producing. |
| dFair valued using significant unobservable inputs. See Note 8 regarding fair value measurements. |
| eSee Note 6 regarding investments in Russian securities. |
| fSecurity was purchased pursuant to Regulation S under the Securities Act of 1933, which exempts from registration securities offered and sold outside of the United States. Such a security cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration. At September 30, 2024, the value of was $0, representing 0.0% of net assets. |
| gVariable rate security. The rate shown represents the yield at period end. |
| hThe rate shown is the annualized seven-day effective yield at period end. |
| iSee Note 3(c) regarding investments in affiliated management investment companies. |
See Abbreviations on page 80.
| franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Semi-Annual Report | 15 |
Franklin Templeton ETF Trust
Financial Highlights
Franklin International Core Dividend Tilt Index ETF
| | Six Months Ended
September 30, 2024
(unaudited) | Year Ended March 31, |
| | 2024 | 2023 | 2022 | 2021 | 2020 |
| Per share operating performance | | | | | | |
| (for a share outstanding throughout the period) | | | | | | |
| Net asset value, beginning of period | $32.06 | $28.63 | $28.65 | $26.52 | $22.55 | $24.70 |
| Income from investment operationsa: | | | | | | |
| Net investment incomeb | 0.73 | 1.07 | 1.21 | 1.00 | 0.73 | 0.89 |
| Net realized and unrealized gains (losses) | 1.42 | 3.31 | 0.43 | 1.93 | 5.27 | (2.61) |
| Total from investment operations | 2.15 | 4.38 | 1.64 | 2.93 | 6.00 | (1.72) |
| Less distributions from: | | | | | | |
| Net investment income | (1.05) | (0.95) | (1.19) | (0.80) | (0.91) | (0.19) |
| Net realized gains | — | — | (0.47) | — | (1.12) | (0.24) |
| Total distributions | (1.05) | (0.95) | (1.66) | (0.80) | (2.03) | (0.43) |
| Net asset value, end of period | $33.16 | $32.06 | $28.63 | $28.65 | $26.52 | $22.55 |
| Total returnc | 7.00% | 15.64% | 6.56% | 11.13% | 27.54% | (7.12)% |
| Ratios to average net assetsd | | | | | | |
| Expenses before waiver and payments by affiliates | 0.09% | 0.11%e | 0.12% | 0.40% | 0.40% | 0.40% |
| Expenses net of waiver and payments by affiliates | 0.09% | 0.11%e | 0.12% | 0.40% | 0.40% | 0.40% |
| Net investment income | 4.53% | 3.64% | 4.49% | 3.54% | 2.97% | 3.44% |
| Supplemental data | | | | | | |
| Net assets, end of period (000’s) | $1,001,483 | $766,199 | $240,459 | $17,192 | $13,260 | $9,021 |
| Portfolio turnover ratef | 14.78%g | 21.29%g | 49.07%g | 30.20%g | 42.33%g | 26.82%g |
| aThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of Creation Unit Fund shares in relation to income earned and/or fluctuating fair value of the investments of the Fund. |
| bBased on average daily shares outstanding. |
| cTotal return is not annualized for periods less than one year. Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. |
| dRatios are annualized for periods less than one year. |
| eExpense ratios include European Union tax reclaims contingency fees that were incurred by the Fund during the year. Without these fees, the gross and net expense ratios would have been 0.09% and 0.09%, respectively, for the year ended March 31, 2024. |
| fPortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash ("Cash creations"). |
| gPortfolio turnover rate excluding cash creations was as follows: | 14.33% | 21.29% | 49.07% | 30.20% | 41.62% | 26.82% |
| 16 | Semi-Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments, September 30, 2024 (unaudited)
Franklin International Core Dividend Tilt Index ETF
| | | Industry | Shares | | Value |
| | Common Stocks 98.7% | | | | |
| | Australia 10.7% | | | | |
| | Ampol Ltd. | Oil, Gas & Consumable Fuels | 40,166 | | $ 850,724 |
| | ANZ Group Holdings Ltd. | Banks | 327,972 | | 6,935,134 |
| | APA Group | Gas Utilities | 215,326 | | 1,159,208 |
| | ASX Ltd. | Capital Markets | 30,502 | | 1,352,808 |
| | Atlas Arteria Ltd. | Transportation Infrastructure | 192,676 | | 653,641 |
| | Aurizon Holdings Ltd. | Ground Transportation | 309,550 | | 758,069 |
| | BHP Group Ltd. | Metals & Mining | 391,392 | | 12,479,440 |
| | Cochlear Ltd. | Health Care Equipment & Supplies | 604 | | 118,203 |
| | Coles Group Ltd. | Consumer Staples Distribution & Retail | 215,930 | | 2,705,415 |
| | Commonwealth Bank of Australia | Banks | 81,842 | | 7,687,161 |
| | CSL Ltd. | Biotechnology | 18,120 | | 3,598,755 |
| | Dexus | Office REITs | 175,764 | | 924,277 |
| | Endeavour Group Ltd. | Consumer Staples Distribution & Retail | 240,090 | | 836,144 |
| | Fortescue Ltd. | Metals & Mining | 299,282 | | 4,293,725 |
| | Goodman Group | Industrial REITs | 7,852 | | 201,497 |
| | GPT Group | Diversified REITs | 312,872 | | 1,080,934 |
| | Lottery Corp. Ltd. | Hotels, Restaurants & Leisure | 373,272 | | 1,325,863 |
| | Macquarie Group Ltd. | Capital Markets | 16,912 | | 2,726,328 |
| | Medibank Pvt Ltd. | Insurance | 449,980 | | 1,139,434 |
| | Mirvac Group | Diversified REITs | 591,316 | | 881,985 |
| | National Australia Bank Ltd. | Banks | 126,538 | | 3,278,798 |
| | Northern Star Resources Ltd. | Metals & Mining | 21,442 | | 237,560 |
| | Origin Energy Ltd. | Electric Utilities | 190,562 | | 1,323,346 |
| a,b | Pilbara Minerals Ltd. | Metals & Mining | 341,864 | | 775,540 |
| | REA Group Ltd. | Interactive Media & Services | 4,530 | | 631,680 |
| | Rio Tinto Ltd. | Metals & Mining | 44,394 | | 3,976,991 |
| | Rio Tinto PLC | Metals & Mining | 138,014 | | 9,809,772 |
| | Santos Ltd. | Oil, Gas & Consumable Fuels | 546,620 | | 2,662,109 |
| | Scentre Group | Retail REITs | 816,608 | | 2,067,805 |
| | SEEK Ltd. | Interactive Media & Services | 33,220 | | 572,703 |
| | Sonic Healthcare Ltd. | Health Care Providers & Services | 77,010 | | 1,454,782 |
| | Stockland | Diversified REITs | 389,882 | | 1,417,319 |
| | Telstra Group Ltd. | Diversified Telecommunication Services | 679,500 | | 1,829,045 |
| | TPG Telecom Ltd. | Diversified Telecommunication Services | 74,594 | | 254,608 |
| | Transurban Group | Transportation Infrastructure | 515,212 | | 4,693,035 |
| | Treasury Wine Estates Ltd. | Beverages | 27,784 | | 231,302 |
| | Vicinity Ltd. | Retail REITs | 594,336 | | 911,229 |
| | Wesfarmers Ltd. | Broadline Retail | 118,082 | | 5,769,584 |
| | Westpac Banking Corp. | Banks | 162,476 | | 3,575,407 |
| | WiseTech Global Ltd. | Software | 20,234 | | 1,925,783 |
| | Woodside Energy Group Ltd. | Oil, Gas & Consumable Fuels | 370,554 | | 6,478,212 |
| | Woolworths Group Ltd. | Consumer Staples Distribution & Retail | 47,112 | | 1,088,376 |
| | | | | | 106,673,731 |
| | Austria 0.7% | | | | |
| | ANDRITZ AG | Machinery | 11,230 | | 797,741 |
| c | BAWAG Group AG | Banks | 13,288 | | 1,031,432 |
| | Erste Group Bank AG | Banks | 38,052 | | 2,091,546 |
| | Mondi PLC | Paper & Forest Products | 70,064 | | 1,335,460 |
| | OMV AG | Oil, Gas & Consumable Fuels | 25,368 | | 1,086,047 |
| | Raiffeisen Bank International AG | Banks | 25,670 | | 511,672 |
| | Strabag SE | Construction & Engineering | 1,565 | | 65,498 |
| | Strabag SE | Construction & Engineering | 488 | | 20,914 |
| | Verbund AG | Electric Utilities | 4,228 | | 351,540 |
| | | | | | 7,291,850 |
| franklintempleton.com | Semi-Annual Report | 17 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin International Core Dividend Tilt Index ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | Belgium 0.5% | | | | |
| | Ageas SA | Insurance | 27,180 | | $ 1,453,617 |
| | KBC Group NV | Banks | 25,670 | | 2,046,112 |
| | Umicore SA | Chemicals | 35,636 | | 463,736 |
| | Warehouses De Pauw CVA | Industrial REITs | 27,784 | | 742,340 |
| | | | | | 4,705,805 |
| | China 0.0%† | | | | |
| c | Budweiser Brewing Co. APAC Ltd., Class H | Beverages | 181,200 | | 244,011 |
| | Denmark 3.0% | | | | |
| | AP Moller - Maersk AS, Class A | Marine Transportation | 116 | | 188,427 |
| | AP Moller - Maersk AS, Class B | Marine Transportation | 174 | | 293,321 |
| | Coloplast AS, Class B | Health Care Equipment & Supplies | 12,382 | | 1,622,015 |
| | Danske Bank AS | Banks | 115,364 | | 3,480,178 |
| | Novo Nordisk AS, Class B | Pharmaceuticals | 185,126 | | 21,806,593 |
| | Novonesis (Novozymes) B, Class B | Chemicals | 17,214 | | 1,242,696 |
| | Tryg AS | Insurance | 50,736 | | 1,206,210 |
| | | | | | 29,839,440 |
| | Finland 1.7% | | | | |
| | Fortum OYJ | Electric Utilities | 73,084 | | 1,206,760 |
| | Kesko OYJ, Class A | Consumer Staples Distribution & Retail | 14,496 | | 308,034 |
| | Kesko OYJ, Class B | Consumer Staples Distribution & Retail | 44,696 | | 956,007 |
| | Kone OYJ, Class B | Machinery | 58,286 | | 3,493,191 |
| | Metso OYJ | Machinery | 126,236 | | 1,352,503 |
| | Neste OYJ | Oil, Gas & Consumable Fuels | 81,238 | | 1,580,303 |
| | Nordea Bank Abp | Banks | 543,902 | | 6,417,406 |
| | Sampo OYJ, Class A | Insurance | 6,040 | | 282,446 |
| | UPM-Kymmene OYJ | Paper & Forest Products | 30,804 | | 1,033,771 |
| | Wartsila OYJ Abp | Machinery | 32,918 | | 738,437 |
| | | | | | 17,368,858 |
| | France 9.2% | | | | |
| | Air Liquide SA | Chemicals | 16,912 | | 3,270,220 |
| | Airbus SE | Aerospace & Defense | 906 | | 132,682 |
| c | Amundi SA | Capital Markets | 10,570 | | 790,965 |
| | AXA SA | Insurance | 160,060 | | 6,168,267 |
| | BNP Paribas SA | Banks | 123,518 | | 8,484,809 |
| | Bouygues SA | Construction & Engineering | 35,032 | | 1,175,270 |
| | Bureau Veritas SA | Professional Services | 26,878 | | 893,317 |
| | Capgemini SE | IT Services | 3,926 | | 849,814 |
| | Carrefour SA | Consumer Staples Distribution & Retail | 23,254 | | 397,335 |
| | Cie Generale des Etablissements Michelin SCA | Automobile Components | 10,570 | | 430,106 |
| | Credit Agricole SA | Banks | 202,038 | | 3,094,776 |
| | Danone SA | Food Products | 36,844 | | 2,686,765 |
| | Dassault Systemes SE | Software | 52,246 | | 2,077,555 |
| | Engie SA | Multi-Utilities | 303,510 | | 5,255,433 |
| | EssilorLuxottica SA | Health Care Equipment & Supplies | 9,060 | | 2,149,687 |
| | Hermes International SCA | Textiles, Apparel & Luxury Goods | 1,696 | | 4,175,564 |
| | Kering SA | Textiles, Apparel & Luxury Goods | 12,382 | | 3,549,393 |
| | Legrand SA | Electrical Equipment | 4,832 | | 557,071 |
| | L’Oreal SA | Personal Care Products | 7,248 | | 3,252,236 |
| | LVMH Moet Hennessy Louis Vuitton SE | Textiles, Apparel & Luxury Goods | 15,877 | | 12,199,896 |
| | Orange SA | Diversified Telecommunication Services | 278,444 | | 3,196,141 |
| | Pernod Ricard SA | Beverages | 6,040 | | 914,072 |
| | Sanofi SA | Pharmaceuticals | 80,936 | | 9,294,817 |
| | Sartorius Stedim Biotech | Life Sciences Tools & Services | 672 | | 140,810 |
| | Schneider Electric SE | Electrical Equipment | 27,482 | | 7,244,559 |
| 18 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin International Core Dividend Tilt Index ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | France (continued) | | | | |
| | TotalEnergies SE | Oil, Gas & Consumable Fuels | 95,130 | | $ 6,210,937 |
| | Veolia Environnement SA | Multi-Utilities | 24,764 | | 815,870 |
| | Vinci SA | Construction & Engineering | 27,482 | | 3,218,952 |
| | | | | | 92,627,319 |
| | Germany 7.0% | | | | |
| | adidas AG | Textiles, Apparel & Luxury Goods | 2,254 | | 598,456 |
| | Allianz SE | Insurance | 26,274 | | 8,650,316 |
| | BASF SE | Chemicals | 154,020 | | 8,174,422 |
| | Bayerische Motoren Werke AG | Automobiles | 43,186 | | 3,816,297 |
| | Daimler Truck Holding AG | Machinery | 65,232 | | 2,448,338 |
| | Deutsche Boerse AG | Capital Markets | 4,228 | | 994,222 |
| | Deutsche Post AG | Air Freight & Logistics | 106,908 | | 4,776,167 |
| | Deutsche Telekom AG | Diversified Telecommunication Services | 120,196 | | 3,540,081 |
| | E.ON SE | Multi-Utilities | 157,946 | | 2,354,162 |
| | Evonik Industries AG | Chemicals | 33,824 | | 792,735 |
| | Infineon Technologies AG | Semiconductors & Semiconductor Equipment | 72,782 | | 2,555,444 |
| | Mercedes-Benz Group AG | Automobiles | 127,142 | | 8,235,694 |
| | Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen | Insurance | 1,006 | | 554,974 |
| | Rheinmetall AG | Aerospace & Defense | 906 | | 491,819 |
| | SAP SE | Software | 54,662 | | 12,469,532 |
| | Siemens AG | Industrial Conglomerates | 43,488 | | 8,801,299 |
| | Vonovia SE | Real Estate Management & Development | 31,408 | | 1,147,282 |
| | | | | | 70,401,240 |
| | Hong Kong 2.7% | | | | |
| | AIA Group Ltd. | Insurance | 181,200 | | 1,624,793 |
| | CK Asset Holdings Ltd. | Real Estate Management & Development | 313,300 | | 1,379,448 |
| | CK Infrastructure Holdings Ltd., Class A | Electric Utilities | 103,600 | | 709,562 |
| | CLP Holdings Ltd. | Electric Utilities | 292,000 | | 2,588,246 |
| | Hang Lung Properties Ltd. | Real Estate Management & Development | 62,000 | | 60,583 |
| | Hang Seng Bank Ltd. | Banks | 126,800 | | 1,595,713 |
| | Henderson Land Development Co. Ltd. | Real Estate Management & Development | 227,500 | | 726,360 |
| | HKT Trust & HKT Ltd. | Diversified Telecommunication Services | 587,357 | | 752,392 |
| | Hong Kong & China Gas Co. Ltd. | Gas Utilities | 1,882,000 | | 1,550,666 |
| | Hong Kong Exchanges & Clearing Ltd. | Capital Markets | 51,200 | | 2,150,169 |
| | Jardine Matheson Holdings Ltd. | Industrial Conglomerates | 30,200 | | 1,179,612 |
| | Link REIT | Retail REITs | 422,800 | | 2,136,453 |
| | MTR Corp. Ltd. | Ground Transportation | 268,500 | | 1,014,544 |
| | Power Assets Holdings Ltd. | Electric Utilities | 229,000 | | 1,468,194 |
| | Sino Land Co. Ltd. | Real Estate Management & Development | 604,000 | | 663,292 |
| | Sun Hung Kai Properties Ltd. | Real Estate Management & Development | 310,840 | | 3,423,542 |
| | Swire Pacific Ltd., Class A | Industrial Conglomerates | 17,500 | | 149,598 |
| | Swire Properties Ltd. | Real Estate Management & Development | 187,200 | | 385,125 |
| | Techtronic Industries Co. Ltd. | Machinery | 114,100 | | 1,734,819 |
| c | WH Group Ltd. | Food Products | 1,208,000 | | 958,002 |
| | Wharf Real Estate Investment Co. Ltd. | Real Estate Management & Development | 272,709 | | 965,497 |
| | | | | | 27,216,610 |
| | Ireland 0.1% | | | | |
| | DCC PLC | Industrial Conglomerates | 2,466 | | 168,531 |
| | Experian PLC | Professional Services | 12,684 | | 668,807 |
| | | | | | 837,338 |
| | Isle Of Man 0.0%† | | | | |
| | Entain PLC | Hotels, Restaurants & Leisure | 31,408 | | 321,529 |
| franklintempleton.com | Semi-Annual Report | 19 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin International Core Dividend Tilt Index ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | Israel 0.5% | | | | |
| | Azrieli Group Ltd. | Real Estate Management & Development | 1,812 | | $ 126,363 |
| | Bank Hapoalim BM | Banks | 175,764 | | 1,762,034 |
| | Bank Leumi Le-Israel BM | Banks | 92,110 | | 902,355 |
| | Israel Discount Bank Ltd., Class A | Banks | 123,216 | | 690,662 |
| | Mizrahi Tefahot Bank Ltd. | Banks | 21,140 | | 826,913 |
| a | Nice Ltd. | Software | 3,322 | | 579,432 |
| | | | | | 4,887,759 |
| | Italy 4.5% | | | | |
| | A2A SpA | Multi-Utilities | 252,774 | | 585,093 |
| | Banca Mediolanum SpA | Financial Services | 34,428 | | 434,953 |
| | Banco BPM SpA | Banks | 230,728 | | 1,559,959 |
| | Enel SpA | Electric Utilities | 1,029,518 | | 8,244,031 |
| | Eni SpA | Oil, Gas & Consumable Fuels | 318,006 | | 4,855,888 |
| | Ferrari NV | Automobiles | 5,134 | | 2,404,798 |
| | FinecoBank Banca Fineco SpA | Banks | 92,412 | | 1,585,723 |
| | Generali | Insurance | 134,994 | | 3,909,629 |
| | Hera SpA | Multi-Utilities | 77,010 | | 307,862 |
| c | Infrastrutture Wireless Italiane SpA | Diversified Telecommunication Services | 56,474 | | 696,457 |
| | Intesa Sanpaolo SpA | Banks | 2,064,774 | | 8,843,103 |
| | Mediobanca Banca di Credito Finanziario SpA | Banks | 99,962 | | 1,709,697 |
| | Moncler SpA | Textiles, Apparel & Luxury Goods | 15,402 | | 980,140 |
| c | Poste Italiane SpA | Insurance | 74,896 | | 1,052,369 |
| | Recordati Industria Chimica e Farmaceutica SpA | Pharmaceuticals | 14,798 | | 838,978 |
| | Snam SpA | Gas Utilities | 348,206 | | 1,776,361 |
| | Terna - Rete Elettrica Nazionale | Electric Utilities | 205,964 | | 1,859,158 |
| | UniCredit SpA | Banks | 71,876 | | 3,157,751 |
| | | | | | 44,801,950 |
| | Japan 22.0% | | | | |
| | ABC-Mart, Inc. | Specialty Retail | 6,000 | | 127,936 |
| | Advantest Corp. | Semiconductors & Semiconductor Equipment | 78,900 | | 3,718,295 |
| | AGC, Inc. | Building Products | 30,200 | | 981,120 |
| | Aisin Corp. | Automobile Components | 90,600 | | 998,855 |
| | Asahi Intecc Co. Ltd. | Health Care Equipment & Supplies | 3,000 | | 52,873 |
| | Asahi Kasei Corp. | Chemicals | 226,800 | | 1,715,587 |
| | Asics Corp. | Textiles, Apparel & Luxury Goods | 62,400 | | 1,309,161 |
| | Astellas Pharma, Inc. | Pharmaceuticals | 224,900 | | 2,589,557 |
| | Bridgestone Corp. | Automobile Components | 90,600 | | 3,483,641 |
| | Brother Industries Ltd. | Technology Hardware, Storage & Peripherals | 36,900 | | 717,156 |
| | Canon, Inc. | Technology Hardware, Storage & Peripherals | 79,832 | | 2,624,790 |
| | Capcom Co. Ltd. | Entertainment | 48,004 | | 1,116,872 |
| | Chugai Pharmaceutical Co. Ltd. | Pharmaceuticals | 33,000 | | 1,599,245 |
| | Daifuku Co. Ltd. | Machinery | 9,380 | | 181,088 |
| | Daiichi Sankyo Co. Ltd. | Pharmaceuticals | 94,000 | | 3,094,561 |
| | Daikin Industries Ltd. | Building Products | 14,702 | | 2,063,357 |
| | Daiwa Securities Group, Inc. | Capital Markets | 211,400 | | 1,485,298 |
| | Denso Corp. | Automobile Components | 151,000 | | 2,243,781 |
| | Dentsu Group, Inc. | Media | 38,900 | | 1,198,492 |
| | Disco Corp. | Semiconductors & Semiconductor Equipment | 15,964 | | 4,184,077 |
| | Eisai Co. Ltd. | Pharmaceuticals | 25,166 | | 940,382 |
| | FANUC Corp. | Machinery | 26,360 | | 772,150 |
| | Fast Retailing Co. Ltd. | Specialty Retail | 4,750 | | 1,574,699 |
| | Fuji Electric Co. Ltd. | Electrical Equipment | 7,589 | | 457,335 |
| | FUJIFILM Holdings Corp. | Technology Hardware, Storage & Peripherals | 8,440 | | 217,609 |
| | Fujitsu Ltd. | IT Services | 13,420 | | 275,408 |
| 20 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin International Core Dividend Tilt Index ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | Japan (continued) | | | | |
| | GLP J-Reit | Industrial REITs | 738 | | $ 684,652 |
| | Hamamatsu Photonics KK | Electronic Equipment, Instruments & Components | 35,400 | | 464,155 |
| | Hitachi Construction Machinery Co. Ltd. | Machinery | 18,300 | | 444,067 |
| | Hitachi Ltd. | Industrial Conglomerates | 255,190 | | 6,745,480 |
| | Honda Motor Co. Ltd. | Automobiles | 173,200 | | 1,825,357 |
| | Hoshizaki Corp. | Machinery | 8,900 | | 310,106 |
| | Hoya Corp. | Health Care Equipment & Supplies | 17,430 | | 2,410,882 |
| | Hulic Co. Ltd. | Real Estate Management & Development | 90,600 | | 921,265 |
| | Ibiden Co. Ltd. | Electronic Equipment, Instruments & Components | 26,400 | | 816,695 |
| | Isuzu Motors Ltd. | Automobiles | 100,100 | | 1,351,322 |
| | ITOCHU Corp. | Trading Companies & Distributors | 24,200 | | 1,298,990 |
| | Japan Exchange Group, Inc. | Capital Markets | 60,400 | | 783,503 |
| | Japan Metropolitan Fund Invest | Retail REITs | 906 | | 611,854 |
| | Japan Post Bank Co. Ltd. | Banks | 130,800 | | 1,223,507 |
| | Japan Real Estate Investment Corp. | Office REITs | 218 | | 870,232 |
| | Japan Tobacco, Inc. | Tobacco | 181,600 | | 5,305,554 |
| | Kajima Corp. | Construction & Engineering | 27,030 | | 505,584 |
| | Kao Corp. | Personal Care Products | 3,728 | | 185,279 |
| | Kawasaki Kisen Kaisha Ltd. | Marine Transportation | 80,100 | | 1,239,803 |
| | KDDI Corp. | Wireless Telecommunication Services | 7,730 | | 248,264 |
| | Keyence Corp. | Electronic Equipment, Instruments & Components | 10,599 | | 5,065,350 |
| | Kikkoman Corp. | Food Products | 30,200 | | 343,719 |
| | Kirin Holdings Co. Ltd. | Beverages | 132,100 | | 2,018,810 |
| | Komatsu Ltd. | Machinery | 117,700 | | 3,263,410 |
| | Kubota Corp. | Machinery | 30,200 | | 428,805 |
| | Kyocera Corp. | Electronic Equipment, Instruments & Components | 60,400 | | 700,951 |
| | Lasertec Corp. | Semiconductors & Semiconductor Equipment | 14,954 | | 2,467,765 |
| | LY Corp. | Interactive Media & Services | 332,200 | | 973,794 |
| | M3, Inc. | Health Care Technology | 12,700 | | 127,675 |
| | Makita Corp. | Machinery | 7,000 | | 236,906 |
| | Marubeni Corp. | Trading Companies & Distributors | 98,900 | | 1,617,911 |
| | Mazda Motor Corp. | Automobiles | 108,900 | | 814,618 |
| | Minebea Mitsumi, Inc. | Machinery | 31,300 | | 616,635 |
| | Mitsubishi Chemical Group Corp. | Chemicals | 120,800 | | 776,029 |
| | Mitsubishi Corp. | Trading Companies & Distributors | 138,700 | | 2,862,918 |
| | Mitsubishi Electric Corp. | Electrical Equipment | 90,600 | | 1,459,012 |
| | Mitsubishi HC Capital, Inc. | Financial Services | 120,800 | | 853,386 |
| | Mitsubishi Heavy Industries Ltd. | Machinery | 181,200 | | 2,682,404 |
| | Mitsubishi UFJ Financial Group, Inc. | Banks | 458,000 | | 4,653,964 |
| | Mitsui & Co. Ltd. | Trading Companies & Distributors | 66,700 | | 1,481,911 |
| | Mitsui Chemicals, Inc. | Chemicals | 18,200 | | 484,137 |
| b | Mitsui OSK Lines Ltd. | Marine Transportation | 65,500 | | 2,255,684 |
| | Mizuho Financial Group, Inc. | Banks | 173,400 | | 3,559,161 |
| | MonotaRO Co. Ltd. | Trading Companies & Distributors | 22,040 | | 369,413 |
| | MS&AD Insurance Group Holdings, Inc. | Insurance | 46,960 | | 1,093,238 |
| | Murata Manufacturing Co. Ltd. | Electronic Equipment, Instruments & Components | 151,000 | | 2,962,678 |
| | NEC Corp. | IT Services | 6,100 | | 586,374 |
| | NIDEC Corp. | Electrical Equipment | 85,200 | | 1,790,487 |
| | Nintendo Co. Ltd. | Entertainment | 85,000 | | 4,537,612 |
| | Nippon Building Fund, Inc. | Office REITs | 801 | | 738,058 |
| | NIPPON EXPRESS HOLDINGS, Inc. | Air Freight & Logistics | 13,800 | | 727,529 |
| | Nippon Paint Holdings Co. Ltd. | Chemicals | 30,200 | | 231,715 |
| | Nippon Prologis REIT, Inc. | Industrial REITs | 367 | | 631,679 |
| | Nippon Steel Corp. | Metals & Mining | 60,400 | | 1,350,386 |
| | Nippon Yusen KK | Marine Transportation | 14,200 | | 518,205 |
| | Niterra Co. Ltd. | Automobile Components | 35,800 | | 999,867 |
| | Nitto Denko Corp. | Chemicals | 80,085 | | 1,337,269 |
| franklintempleton.com | Semi-Annual Report | 21 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin International Core Dividend Tilt Index ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | Japan (continued) | | | | |
| | Nomura Holdings, Inc. | Capital Markets | 211,400 | | $ 1,098,086 |
| | Nomura Real Estate Master Fund, Inc. | Diversified REITs | 683 | | 682,332 |
| | Nomura Research Institute Ltd. | IT Services | 19,650 | | 728,083 |
| | Obayashi Corp. | Construction & Engineering | 120,800 | | 1,531,113 |
| | Obic Co. Ltd. | IT Services | 15,800 | | 557,374 |
| | Omron Corp. | Electronic Equipment, Instruments & Components | 26,201 | | 1,199,231 |
| | Ono Pharmaceutical Co. Ltd. | Pharmaceuticals | 34,200 | | 457,028 |
| | Oracle Corp. | Software | 1,585 | | 163,387 |
| | Oriental Land Co. Ltd. | Hotels, Restaurants & Leisure | 17,120 | | 442,602 |
| | ORIX Corp. | Financial Services | 50,000 | | 1,159,815 |
| | Otsuka Corp. | IT Services | 39,340 | | 974,699 |
| | Panasonic Holdings Corp. | Household Durables | 60,400 | | 524,869 |
| | Recruit Holdings Co. Ltd. | Professional Services | 84,100 | | 5,118,082 |
| | Renesas Electronics Corp. | Semiconductors & Semiconductor Equipment | 106,800 | | 1,552,273 |
| | Rohm Co. Ltd. | Semiconductors & Semiconductor Equipment | 60,400 | | 678,149 |
| | SBI Holdings, Inc. | Capital Markets | 54,300 | | 1,250,828 |
| | SCREEN Holdings Co. Ltd. | Semiconductors & Semiconductor Equipment | 16,412 | | 1,144,273 |
| | Seiko Epson Corp. | Technology Hardware, Storage & Peripherals | 34,800 | | 642,160 |
| | Sekisui Chemical Co. Ltd. | Household Durables | 61,400 | | 957,873 |
| | Sekisui House Ltd. | Household Durables | 93,650 | | 2,601,825 |
| | SG Holdings Co. Ltd. | Air Freight & Logistics | 31,200 | | 336,124 |
| | Shimadzu Corp. | Electronic Equipment, Instruments & Components | 3,300 | | 110,138 |
| | Shimano, Inc. | Leisure Products | 2,336 | | 443,716 |
| | Shin-Etsu Chemical Co. Ltd. | Chemicals | 146,350 | | 6,115,310 |
| | Shiseido Co. Ltd. | Personal Care Products | 15,400 | | 417,191 |
| | SMC Corp. | Machinery | 836 | | 372,004 |
| | SoftBank Corp. | Wireless Telecommunication Services | 4,337,900 | | 5,677,117 |
| | SoftBank Group Corp. | Wireless Telecommunication Services | 44,000 | | 2,592,198 |
| | Sompo Holdings, Inc. | Insurance | 66,670 | | 1,491,965 |
| | Sony Group Corp. | Household Durables | 246,900 | | 4,794,217 |
| | Subaru Corp. | Automobiles | 35,300 | | 612,518 |
| | SUMCO Corp. | Semiconductors & Semiconductor Equipment | 60,400 | | 651,124 |
| | Sumitomo Corp. | Trading Companies & Distributors | 86,000 | | 1,920,330 |
| | Sumitomo Electric Industries Ltd. | Automobile Components | 90,600 | | 1,453,945 |
| | Sumitomo Mitsui Financial Group, Inc. | Banks | 156,552 | | 3,332,640 |
| | Suzuki Motor Corp. | Automobiles | 17,200 | | 191,492 |
| | Sysmex Corp. | Health Care Equipment & Supplies | 30,500 | | 602,793 |
| | Takeda Pharmaceutical Co. Ltd. | Pharmaceuticals | 215,600 | | 6,184,332 |
| | TDK Corp. | Electronic Equipment, Instruments & Components | 241,050 | | 3,072,107 |
| | Terumo Corp. | Health Care Equipment & Supplies | 23,500 | | 443,582 |
| | Tokio Marine Holdings, Inc. | Insurance | 80,211 | | 2,933,332 |
| | Tokyo Century Corp. | Financial Services | 31,200 | | 350,302 |
| | Tokyo Electron Ltd. | Semiconductors & Semiconductor Equipment | 45,042 | | 7,963,592 |
| | Toray Industries, Inc. | Chemicals | 12,000 | | 70,738 |
| | Tosoh Corp. | Chemicals | 50,500 | | 675,381 |
| | Toyo Suisan Kaisha Ltd. | Food Products | 6,000 | | 392,156 |
| | Toyota Industries Corp. | Machinery | 14,591 | | 1,124,621 |
| | Toyota Motor Corp. | Automobiles | 743,900 | | 13,222,635 |
| | Toyota Tsusho Corp. | Trading Companies & Distributors | 60,400 | | 1,091,541 |
| | Trend Micro, Inc. | Software | 2,340 | | 138,823 |
| | West Japan Railway Co. | Ground Transportation | 14,400 | | 274,228 |
| | Yamaha Motor Co. Ltd. | Automobiles | 60,400 | | 540,492 |
| | Yaskawa Electric Corp. | Machinery | 15,204 | | 531,247 |
| | Zensho Holdings Co. Ltd. | Hotels, Restaurants & Leisure | 1,700 | | 94,318 |
| | ZOZO, Inc. | Specialty Retail | 22,070 | | 804,481 |
| | | | | | 220,076,153 |
| 22 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin International Core Dividend Tilt Index ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | Netherlands 5.2% | | | | |
| a,c | Adyen NV | Financial Services | 1,862 | | $ 2,914,723 |
| a | Argenx SE | Biotechnology | 1,483 | | 803,718 |
| a | Argenx SE | Biotechnology | 27 | | 14,633 |
| | ASM International NV | Semiconductors & Semiconductor Equipment | 5,644 | | 3,712,623 |
| | ASML Holding NV | Semiconductors & Semiconductor Equipment | 28,086 | | 23,371,121 |
| | ING Groep NV | Banks | 310,758 | | 5,644,174 |
| | Koninklijke Ahold Delhaize NV | Consumer Staples Distribution & Retail | 9,362 | | 324,216 |
| | Koninklijke KPN NV | Diversified Telecommunication Services | 535,446 | | 2,192,538 |
| a | Koninklijke Philips NV | Health Care Equipment & Supplies | 82,144 | | 2,697,132 |
| | NN Group NV | Insurance | 44,998 | | 2,248,853 |
| | Shell PLC | Oil, Gas & Consumable Fuels | 195,092 | | 6,345,897 |
| | Universal Music Group NV | Entertainment | 56,474 | | 1,481,154 |
| | Wolters Kluwer NV | Professional Services | 302 | | 50,995 |
| | | | | | 51,801,777 |
| | New Zealand 0.3% | | | | |
| | Contact Energy Ltd. | Electric Utilities | 129,256 | | 671,894 |
| | Fisher & Paykel Healthcare Corp. Ltd. | Health Care Equipment & Supplies | 51,642 | | 1,141,789 |
| | Mercury NZ Ltd. | Electric Utilities | 108,720 | | 446,166 |
| | Spark New Zealand Ltd. | Diversified Telecommunication Services | 322,536 | | 621,797 |
| | | | | | 2,881,646 |
| | Norway 0.9% | | | | |
| | Aker ASA, Class A | Industrial Conglomerates | 4,228 | | 219,977 |
| | Aker BP ASA | Oil, Gas & Consumable Fuels | 58,588 | | 1,258,240 |
| | DNB Bank ASA | Banks | 132,578 | | 2,723,900 |
| | Gjensidige Forsikring ASA | Insurance | 28,388 | | 532,040 |
| | Norsk Hydro ASA | Metals & Mining | 168,214 | | 1,093,356 |
| | Orkla ASA | Food Products | 70,064 | | 661,549 |
| | Salmar ASA | Food Products | 12,684 | | 666,555 |
| | Telenor ASA | Diversified Telecommunication Services | 102,982 | | 1,319,950 |
| | Var Energi ASA | Oil, Gas & Consumable Fuels | 147,980 | | 459,423 |
| | | | | | 8,934,990 |
| | Poland 0.5% | | | | |
| | Bank Polska Kasa Opieki SA | Banks | 37,750 | | 1,445,527 |
| | ING Bank Slaski SA | Banks | 6,040 | | 414,076 |
| | ORLEN SA | Oil, Gas & Consumable Fuels | 103,284 | | 1,504,178 |
| | Powszechny Zaklad Ubezpieczen SA | Insurance | 37,448 | | 410,763 |
| | Santander Bank Polska SA | Banks | 6,342 | | 751,029 |
| | | | | | 4,525,573 |
| | Portugal 0.1% | | | | |
| | EDP SA | Electric Utilities | 324,650 | | 1,486,260 |
| | Singapore 2.6% | | | | |
| | CapitaLand Ascendas REIT, Class A | Industrial REITs | 604,000 | | 1,347,457 |
| | CapitaLand Integrated Commercial Trust, Class A | Retail REITs | 738,143 | | 1,220,642 |
| | CapitaLand Investment Ltd. | Real Estate Management & Development | 362,400 | | 881,972 |
| | DBS Group Holdings Ltd., Class A | Banks | 210,320 | | 6,242,337 |
| | Genting Singapore Ltd. | Hotels, Restaurants & Leisure | 906,000 | | 618,370 |
| | Jardine Cycle & Carriage Ltd. | Industrial Conglomerates | 13,400 | | 288,487 |
| | Keppel Ltd. | Industrial Conglomerates | 241,600 | | 1,249,460 |
| | Mapletree Pan Asia Commercial Trust | Retail REITs | 392,600 | | 453,235 |
| | Oversea-Chinese Banking Corp. Ltd. | Banks | 497,900 | | 5,864,501 |
| | Singapore Airlines Ltd. | Passenger Airlines | 225,000 | | 1,193,448 |
| | Singapore Exchange Ltd. | Capital Markets | 120,800 | | 1,076,081 |
| | Singapore Technologies Engineering Ltd. | Aerospace & Defense | 90,600 | | 329,326 |
| franklintempleton.com | Semi-Annual Report | 23 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin International Core Dividend Tilt Index ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | Singapore (continued) | | | | |
| | United Overseas Bank Ltd. | Banks | 181,800 | | $ 4,562,017 |
| | Wilmar International Ltd. | Food Products | 280,800 | | 733,760 |
| | | | | | 26,061,093 |
| | Spain 2.1% | | | | |
| | ACS Actividades de Construccion y Servicios SA | Construction & Engineering | 33,942 | | 1,571,303 |
| c | Aena SME SA | Transportation Infrastructure | 5,134 | | 1,132,209 |
| | Banco Bilbao Vizcaya Argentaria SA | Banks | 382,634 | | 4,145,692 |
| | CaixaBank SA | Banks | 492,562 | | 2,948,719 |
| | Endesa SA | Electric Utilities | 50,736 | | 1,111,528 |
| | Iberdrola SA | Electric Utilities | 131,404 | | 2,037,017 |
| | Industria de Diseno Textil SA | Specialty Retail | 15,100 | | 895,534 |
| | Naturgy Energy Group SA | Gas Utilities | 20,838 | | 540,010 |
| | Redeia Corp. SA | Electric Utilities | 61,608 | | 1,201,196 |
| | Repsol SA | Oil, Gas & Consumable Fuels | 100,566 | | 1,329,444 |
| | Telefonica SA | Diversified Telecommunication Services | 758,322 | | 3,720,447 |
| | | | | | 20,633,099 |
| | Sweden 2.8% | | | | |
| | Assa Abloy AB, Class B | Building Products | 14,496 | | 488,510 |
| | Atlas Copco AB, Class A | Machinery | 150,094 | | 2,908,862 |
| | Atlas Copco AB, Class B | Machinery | 91,808 | | 1,574,121 |
| | Axfood AB | Consumer Staples Distribution & Retail | 16,610 | | 468,972 |
| | EQT AB | Capital Markets | 49,528 | | 1,697,905 |
| | Essity AB, Class B | Household Products | 12,684 | | 396,539 |
| c | Evolution AB | Hotels, Restaurants & Leisure | 30,502 | | 3,003,078 |
| | Getinge AB, Class B | Health Care Equipment & Supplies | 9,060 | | 195,561 |
| | H & M Hennes & Mauritz AB, Class B | Specialty Retail | 95,734 | | 1,631,991 |
| | Husqvarna AB, Class B | Machinery | 63,118 | | 442,099 |
| | Nordnet AB publ | Capital Markets | 25,368 | | 609,637 |
| | Skandinaviska Enskilda Banken AB, Class A | Banks | 107,814 | | 1,651,256 |
| | Skanska AB, Class B | Construction & Engineering | 21,140 | | 441,711 |
| | SKF AB, Class B | Machinery | 9,966 | | 198,600 |
| | SSAB AB, Class A | Metals & Mining | 41,978 | | 220,231 |
| | SSAB AB, Class B | Metals & Mining | 100,264 | | 514,347 |
| | Svenska Handelsbanken AB, Class A | Banks | 218,346 | | 2,245,582 |
| b | Svenska Handelsbanken AB, Class B | Banks | 5,134 | | 67,565 |
| | Swedbank AB, Class A | Banks | 165,496 | | 3,515,112 |
| | Tele2 AB, Class B | Wireless Telecommunication Services | 92,412 | | 1,047,505 |
| | Telefonaktiebolaget LM Ericsson, Class A | Communications Equipment | 8,154 | | 61,859 |
| | Telefonaktiebolaget LM Ericsson, Class B | Communications Equipment | 326,764 | | 2,473,150 |
| | Telia Co. AB | Diversified Telecommunication Services | 356,662 | | 1,155,494 |
| | Volvo AB, Class A | Machinery | 5,738 | | 153,291 |
| | Volvo AB, Class B | Machinery | 50,736 | | 1,342,402 |
| | | | | | 28,505,380 |
| | Switzerland 9.1% | | | | |
| | ABB Ltd. | Electrical Equipment | 54,662 | | 3,174,550 |
| | Cie Financiere Richemont SA, Class A | Textiles, Apparel & Luxury Goods | 36,844 | | 5,844,025 |
| | DSM-Firmenich AG | Chemicals | 13,288 | | 1,833,739 |
| | EMS-Chemie Holding AG | Chemicals | 487 | | 409,899 |
| | Geberit AG | Building Products | 1,510 | | 987,036 |
| | Givaudan SA | Chemicals | 384 | | 2,112,216 |
| | Julius Baer Group Ltd. | Capital Markets | 33,522 | | 2,022,725 |
| | Kuehne & Nagel International AG | Marine Transportation | 8,456 | | 2,313,609 |
| | Lonza Group AG | Life Sciences Tools & Services | 3,169 | | 2,008,354 |
| | Nestle SA | Food Products | 147,678 | | 14,873,716 |
| 24 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin International Core Dividend Tilt Index ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | Switzerland (continued) | | | | |
| | Novartis AG | Pharmaceuticals | 133,484 | | $ 15,373,090 |
| | Partners Group Holding AG | Capital Markets | 3,926 | | 5,910,758 |
| | Roche Holding AG | Pharmaceuticals | 41,676 | | 13,369,125 |
| | Roche Holding AG | Pharmaceuticals | 1,812 | | 621,650 |
| | Schindler Holding AG, PC | Machinery | 302 | | 88,787 |
| | SGS SA | Professional Services | 24,160 | | 2,701,979 |
| | Sika AG | Chemicals | 3,926 | | 1,303,625 |
| | STMicroelectronics NV | Semiconductors & Semiconductor Equipment | 7,248 | | 215,575 |
| | Swatch Group AG | Textiles, Apparel & Luxury Goods | 926 | | 198,966 |
| | Swiss Life Holding AG | Insurance | 1,812 | | 1,516,534 |
| | Swiss Re AG | Insurance | 32,314 | | 4,470,445 |
| | Swisscom AG | Diversified Telecommunication Services | 3,926 | | 2,571,412 |
| | UBS Group AG | Capital Markets | 62,816 | | 1,940,590 |
| | Zurich Insurance Group AG | Insurance | 9,362 | | 5,657,931 |
| | | | | | 91,520,336 |
| | United Kingdom 11.8% | | | | |
| | 3i Group PLC | Capital Markets | 16,006 | | 709,571 |
| | Admiral Group PLC | Insurance | 16,912 | | 631,548 |
| | Anglo American PLC | Metals & Mining | 22,348 | | 728,129 |
| | Ashtead Group PLC | Trading Companies & Distributors | 8,456 | | 656,274 |
| | AstraZeneca PLC | Pharmaceuticals | 88,486 | | 13,753,870 |
| | Aviva PLC | Insurance | 462,060 | | 2,997,275 |
| | B&M European Value Retail SA | Broadline Retail | 151,000 | | 840,962 |
| | BAE Systems PLC | Aerospace & Defense | 111,136 | | 1,844,768 |
| | Barratt Developments PLC | Household Durables | 163,080 | | 1,047,143 |
| | BP PLC | Oil, Gas & Consumable Fuels | 544,506 | | 2,860,870 |
| | British American Tobacco PLC | Tobacco | 227,104 | | 8,298,006 |
| | BT Group PLC | Diversified Telecommunication Services | 543,298 | | 1,077,825 |
| | Burberry Group PLC | Textiles, Apparel & Luxury Goods | 35,709 | | 335,767 |
| | CK Hutchison Holdings Ltd., Class A | Industrial Conglomerates | 425,500 | | 2,448,645 |
| | Diageo PLC | Beverages | 63,722 | | 2,224,874 |
| | DS Smith PLC | Containers & Packaging | 206,870 | | 1,281,425 |
| | GSK PLC | Pharmaceuticals | 346,998 | | 7,058,481 |
| | Halma PLC | Electronic Equipment, Instruments & Components | 13,288 | | 464,846 |
| | Hargreaves Lansdown PLC | Capital Markets | 59,494 | | 889,396 |
| | Hikma Pharmaceuticals PLC | Pharmaceuticals | 25,066 | | 642,521 |
| | HSBC Holdings PLC | Banks | 1,594,862 | | 14,315,974 |
| | Imperial Brands PLC | Tobacco | 135,296 | | 3,943,543 |
| | Intermediate Capital Group PLC | Capital Markets | 48,018 | | 1,435,030 |
| | J Sainsbury PLC | Consumer Staples Distribution & Retail | 264,854 | | 1,049,443 |
| | Kingfisher PLC | Specialty Retail | 315,892 | | 1,364,383 |
| | Land Securities Group PLC | Diversified REITs | 110,834 | | 967,823 |
| | Legal & General Group PLC | Insurance | 991,164 | | 3,008,652 |
| | Lloyds Banking Group PLC | Banks | 386,862 | | 305,123 |
| | London Stock Exchange Group PLC | Capital Markets | 8,758 | | 1,200,598 |
| | M&G PLC | Financial Services | 386,560 | | 1,075,394 |
| | National Grid PLC | Multi-Utilities | 535,748 | | 7,401,839 |
| | NatWest Group PLC | Banks | 449,678 | | 2,074,320 |
| | Persimmon PLC | Household Durables | 7,248 | | 159,783 |
| | Phoenix Group Holdings PLC | Insurance | 123,216 | | 924,717 |
| | Reckitt Benckiser Group PLC | Household Products | 41,978 | | 2,577,179 |
| | RELX PLC | Professional Services | 66,138 | | 3,112,980 |
| | Rentokil Initial PLC | Commercial Services & Supplies | 214,118 | | 1,046,582 |
| a | Rolls-Royce Holdings PLC | Aerospace & Defense | 95,432 | | 674,856 |
| | Sage Group PLC | Software | 48,622 | | 668,169 |
| | Schroders PLC | Capital Markets | 155,530 | | 728,501 |
| | Segro PLC | Industrial REITs | 9,060 | | 106,214 |
| franklintempleton.com | Semi-Annual Report | 25 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin International Core Dividend Tilt Index ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | United Kingdom (continued) | | | | |
| | Severn Trent PLC | Water Utilities | 41,978 | | $ 1,487,635 |
| | Smith & Nephew PLC | Health Care Equipment & Supplies | 10,570 | | 164,182 |
| | Spirax Group PLC | Machinery | 8,254 | | 832,023 |
| | SSE PLC | Electric Utilities | 26,878 | | 678,874 |
| | Taylor Wimpey PLC | Household Durables | 589,806 | | 1,299,836 |
| | Unilever PLC | Personal Care Products | 148,886 | | 9,663,876 |
| | United Utilities Group PLC | Water Utilities | 104,794 | | 1,469,611 |
| | Vodafone Group PLC | Wireless Telecommunication Services | 3,382,098 | | 3,404,246 |
| | | | | | 117,933,582 |
| | United States 0.7% | | | | |
| | Holcim AG, Class B | Construction Materials | 16,912 | | 1,655,213 |
| | Stellantis NV | Automobiles | 392,902 | | 5,440,888 |
| | | | | | 7,096,101 |
| | Total Common Stocks (Cost $877,424,296) | | | | 988,673,430 |
| | Preferred Stocks 0.5% | | | | |
| | Germany 0.5% | | | | |
| d | Bayerische Motoren Werke AG, 8.102%, pfd. | Automobiles | 8,758 | | 726,236 |
| c,d | Dr. Ing hc F Porsche AG, 3.231%, pfd. | Automobiles | 1,510 | | 120,494 |
| d | Sartorius AG, 0.293%, pfd. | Life Sciences Tools & Services | 1,208 | | 340,013 |
| d | Volkswagen AG, 9.521%, pfd. | Automobiles | 35,938 | | 3,816,736 |
| | Total Preferred Stocks (Cost $5,801,240) | | | | 5,003,479 |
| | Total Investments before Short-Term Investments (Cost $883,225,536) | | | | 993,676,909 |
| | Short-Term Investments 0.3% | | | | |
| | Investments from Cash Collateral
Received for Loaned Securities 0.3% | | | | |
| | United States 0.3% | | | | |
| e,f | Institutional Fiduciary Trust - Money Market Portfolio, 4.74% | Money Market Funds | 2,892,300 | | 2,892,300 |
| 26 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin International Core Dividend Tilt Index ETF (continued)
| | | Industry | Shares | | Value |
| | Short-Term Investments (continued) | | | | |
| | Money Market Funds 0.0%† | | | | |
| | United States 0.0%† | | | | |
| e,f | Institutional Fiduciary Trust - Money Market Portfolio, 4.74% | Money Market Funds | 249,754 | | $ 249,754 |
| | Total Short-Term Investments (Cost $3,142,054) | | | | 3,142,054 |
| | Total Investments (Cost $886,367,590) 99.5% | | | | 996,818,963 |
| | Other Assets, less Liabilities 0.5% | | | | 4,664,141 |
| | Net Assets 100.0% | | | | $ 1,001,483,104 |
| †Rounds to less than 0.1% of net assets. |
| aNon-income producing. |
| bA portion or all of the security is on loan at September 30, 2024. See Note 1(d). |
| cSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At September 30, 2024, the value of was $11,943,740, representing 1.2% of net assets. |
| dVariable rate security. The rate shown represents the yield at period end. |
| eThe rate shown is the annualized seven-day effective yield at period end. |
| fSee Note 3(c) regarding investments in affiliated management investment companies. |
At September 30, 2024, the Fund had the following futures contracts outstanding. See Note 1(c).
Futures Contracts
| Description | Type | Number of
Contracts | Notional
Amount* | Expiration
Date | Value/Unrealized
Appreciation
(Depreciation) |
| Equity Contracts | | | | | |
| MSCI EAFE | Long | 45 | $ 5,597,550 | 12/20/24 | $ 99,757 |
See Note 7 regarding other derivative information.
See Abbreviations on page 80.
| franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Semi-Annual Report | 27 |
Franklin Templeton ETF Trust
Financial Highlights
Franklin U.S. Core Dividend Tilt Index ETF
| | Six Months Ended
September 30, 2024
(unaudited) | Year Ended March 31, |
| | 2024 | 2023 | 2022 | 2021 | 2020 |
| Per share operating performance | | | | | | |
| (for a share outstanding throughout the period) | | | | | | |
| Net asset value, beginning of period | $40.34 | $32.29 | $36.29 | $33.29 | $23.32 | $28.20 |
| Income from investment operationsa: | | | | | | |
| Net investment incomeb | 0.42 | 0.84 | 0.82 | 1.03 | 0.92 | 1.04 |
| Net realized and unrealized gains (losses) | 4.42 | 8.00 | (3.82) | 2.98 | 9.95 | (4.90) |
| Total from investment operations | 4.84 | 8.84 | (3.00) | 4.01 | 10.87 | (3.86) |
| Less distributions from net investment income | (0.55) | (0.79) | (1.00) | (1.01) | (0.90) | (1.02) |
| Net asset value, end of period | $44.63 | $40.34 | $32.29 | $36.29 | $33.29 | $23.32 |
| Total returnc | 12.05% | 27.72% | (8.09)% | 12.14% | 47.20% | (14.34)% |
| Ratios to average net assetsd | | | | | | |
| Expenses before waiver and payments by affiliates | 0.06% | 0.06% | 0.19% | 0.45% | 0.45% | 0.45% |
| Expenses net of waiver and payments by affiliates | 0.06% | 0.06% | 0.19% | 0.45% | 0.45% | 0.45% |
| Net investment income | 2.01% | 2.36% | 2.58% | 2.92% | 3.21% | 3.60% |
| Supplemental data | | | | | | |
| Net assets, end of period (000’s) | $35,703 | $62,534 | $24,219 | $30,851 | $26,632 | $18,653 |
| Portfolio turnover ratee | 7.75%f | 18.11%f | 130.60%f | 28.73%f | 42.38%f | 19.79%f |
| aThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of Creation Unit Fund shares in relation to income earned and/or fluctuating fair value of the investments of the Fund. |
| bBased on average daily shares outstanding. |
| cTotal return is not annualized for periods less than one year. Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. |
| dRatios are annualized for periods less than one year. |
| ePortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash ("Cash creations"). |
| fPortfolio turnover rate excluding cash creations was as follows: | 7.74% | 18.11% | 130.60% | 27.86% | 42.38% | 19.79% |
| 28 | Semi-Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments, September 30, 2024 (unaudited)
Franklin U.S. Core Dividend Tilt Index ETF
| | | Industry | Shares | | Value |
| | Common Stocks 99.8% | | | | |
| | Brazil 0.3% | | | | |
| a | MercadoLibre, Inc. | Broadline Retail | 55 | | $ 112,858 |
| | Ireland 0.0%† | | | | |
| | TE Connectivity PLC | Electronic Equipment, Instruments & Components | 90 | | 13,589 |
| | Netherlands 0.4% | | | | |
| | NXP Semiconductors NV | Semiconductors & Semiconductor Equipment | 592 | | 142,086 |
| | Russia 0.0% | | | | |
| a,b,c | Tatneft PJSC | Oil, Gas & Consumable Fuels | 15,990 | | — |
| | United Kingdom 0.1% | | | | |
| | CNH Industrial NV | Machinery | 2,048 | | 22,733 |
| | United States 99.0% | | | | |
| | 3M Co. | Industrial Conglomerates | 1,008 | | 137,794 |
| | Abbott Laboratories | Health Care Equipment & Supplies | 1,520 | | 173,295 |
| | AbbVie, Inc. | Biotechnology | 2,144 | | 423,397 |
| | Accenture PLC, Class A | IT Services | 464 | | 164,015 |
| a | Adobe, Inc. | Software | 256 | | 132,552 |
| a | Advanced Micro Devices, Inc. | Semiconductors & Semiconductor Equipment | 1,152 | | 189,020 |
| | AES Corp. | Independent Power Producers & Energy Traders | 1,456 | | 29,207 |
| | Air Products & Chemicals, Inc. | Chemicals | 208 | | 61,930 |
| | Alexandria Real Estate Equities, Inc. | Health Care REITs | 336 | | 39,900 |
| | Alliant Energy Corp. | Electric Utilities | 528 | | 32,044 |
| | Allstate Corp. | Insurance | 176 | | 33,378 |
| | Alphabet, Inc., Class A | Interactive Media & Services | 4,064 | | 674,014 |
| | Alphabet, Inc., Class C | Interactive Media & Services | 3,616 | | 604,559 |
| | Altria Group, Inc. | Tobacco | 3,648 | | 186,194 |
| a | Amazon.com, Inc. | Broadline Retail | 6,240 | | 1,162,699 |
| | Amcor PLC | Containers & Packaging | 3,150 | | 35,689 |
| | Ameren Corp. | Multi-Utilities | 128 | | 11,195 |
| | American Electric Power Co., Inc. | Electric Utilities | 1,088 | | 111,629 |
| | American Tower Corp. | Specialized REITs | 640 | | 148,838 |
| | Amgen, Inc. | Biotechnology | 784 | | 252,613 |
| | Amphenol Corp., Class A | Electronic Equipment, Instruments & Components | 272 | | 17,724 |
| | Analog Devices, Inc. | Semiconductors & Semiconductor Equipment | 912 | | 209,915 |
| | Annaly Capital Management, Inc. | Mortgage Real Estate Investment Trusts (REITs) | 1,040 | | 20,873 |
| | APA Corp. | Oil, Gas & Consumable Fuels | 944 | | 23,090 |
| | Apollo Global Management, Inc. | Financial Services | 864 | | 107,922 |
| | Apple, Inc. | Technology Hardware, Storage & Peripherals | 9,968 | | 2,322,544 |
| | Applied Materials, Inc. | Semiconductors & Semiconductor Equipment | 816 | | 164,873 |
| | ARES Management Corp., Class A | Capital Markets | 400 | | 62,336 |
| a | Arista Networks, Inc. | Communications Equipment | 272 | | 104,399 |
| | AT&T, Inc. | Diversified Telecommunication Services | 12,672 | | 278,784 |
| | Automatic Data Processing, Inc. | Professional Services | 160 | | 44,277 |
| | AvalonBay Communities, Inc. | Residential REITs | 288 | | 64,872 |
| | Avangrid, Inc. | Electric Utilities | 162 | | 5,798 |
| a | Axon Enterprise, Inc. | Aerospace & Defense | 48 | | 19,181 |
| | Baker Hughes Co. | Energy Equipment & Services | 1,536 | | 55,526 |
| | Bank of America Corp. | Banks | 5,056 | | 200,622 |
| | Bank of New York Mellon Corp. | Capital Markets | 1,552 | | 111,527 |
| | Baxter International, Inc. | Health Care Equipment & Supplies | 1,040 | | 39,489 |
| | Bentley Systems, Inc., Class B | Software | 96 | | 4,878 |
| | Best Buy Co., Inc. | Specialty Retail | 432 | | 44,626 |
| | BlackRock, Inc. | Capital Markets | 304 | | 288,651 |
| | Blackstone, Inc. | Capital Markets | 1,520 | | 232,758 |
| a | Block, Inc. | Financial Services | 160 | | 10,741 |
| | Bristol-Myers Squibb Co. | Pharmaceuticals | 4,448 | | 230,139 |
| | Broadcom, Inc. | Semiconductors & Semiconductor Equipment | 3,792 | | 654,120 |
| franklintempleton.com | Semi-Annual Report | 29 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin U.S. Core Dividend Tilt Index ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | United States (continued) | | | | |
| | Broadridge Financial Solutions, Inc. | Professional Services | 176 | | $ 37,845 |
| | BXP, Inc. | Office REITs | 336 | | 27,035 |
| a | Cadence Design Systems, Inc. | Software | 176 | | 47,701 |
| | Camden Property Trust | Residential REITs | 224 | | 27,671 |
| | Campbell Soup Co. | Food Products | 416 | | 20,351 |
| | Cardinal Health, Inc. | Health Care Providers & Services | 68 | | 7,515 |
| | Carlyle Group, Inc. | Capital Markets | 496 | | 21,358 |
| | Caterpillar, Inc. | Machinery | 96 | | 37,548 |
| | Chevron Corp. | Oil, Gas & Consumable Fuels | 2,528 | | 372,299 |
| a | Chipotle Mexican Grill, Inc. | Hotels, Restaurants & Leisure | 736 | | 42,408 |
| | Cincinnati Financial Corp. | Insurance | 336 | | 45,736 |
| | Cisco Systems, Inc. | Communications Equipment | 5,440 | | 289,517 |
| | Citigroup, Inc. | Banks | 4,352 | | 272,435 |
| | Citizens Financial Group, Inc. | Banks | 1,040 | | 42,713 |
| | Clorox Co. | Household Products | 256 | | 41,705 |
| a | Cloudflare, Inc., Class A | IT Services | 256 | | 20,708 |
| | CME Group, Inc. | Capital Markets | 752 | | 165,929 |
| | CMS Energy Corp. | Multi-Utilities | 576 | | 40,683 |
| | Coca-Cola Co. | Beverages | 4,352 | | 312,735 |
| a | Coinbase Global, Inc., Class A | Capital Markets | 160 | | 28,507 |
| | Comcast Corp., Class A | Media | 3,040 | | 126,981 |
| | Conagra Brands, Inc. | Food Products | 992 | | 32,260 |
| | ConocoPhillips | Oil, Gas & Consumable Fuels | 800 | | 84,224 |
| | Consolidated Edison, Inc. | Multi-Utilities | 720 | | 74,974 |
| | Corebridge Financial, Inc. | Financial Services | 512 | | 14,930 |
| | Corning, Inc. | Electronic Equipment, Instruments & Components | 1,648 | | 74,407 |
| | Costco Wholesale Corp. | Consumer Staples Distribution & Retail | 106 | | 93,971 |
| | Coterra Energy, Inc., Class A | Oil, Gas & Consumable Fuels | 1,680 | | 40,236 |
| | CRH PLC | Construction Materials | 752 | | 69,740 |
| a | Crowdstrike Holdings, Inc., Class A | Software | 320 | | 89,750 |
| | Crown Castle, Inc. | Specialized REITs | 848 | | 100,598 |
| | Cummins, Inc. | Machinery | 304 | | 98,432 |
| | CVS Health Corp. | Health Care Providers & Services | 2,704 | | 170,027 |
| | Darden Restaurants, Inc. | Hotels, Restaurants & Leisure | 256 | | 42,017 |
| a | Datadog, Inc., Class A | Software | 256 | | 29,455 |
| | Dell Technologies, Inc., Class C | Technology Hardware, Storage & Peripherals | 288 | | 34,140 |
| | Devon Energy Corp. | Oil, Gas & Consumable Fuels | 1,488 | | 58,211 |
| | Diamondback Energy, Inc. | Oil, Gas & Consumable Fuels | 416 | | 71,718 |
| | Digital Realty Trust, Inc. | Specialized REITs | 656 | | 106,160 |
| | Discover Financial Services | Consumer Finance | 288 | | 40,404 |
| | Dollar General Corp. | Consumer Staples Distribution & Retail | 160 | | 13,531 |
| | Dominion Energy, Inc. | Multi-Utilities | 1,728 | | 99,861 |
| a | DoorDash, Inc., Class A | Hotels, Restaurants & Leisure | 240 | | 34,255 |
| | Dow, Inc. | Chemicals | 1,568 | | 85,660 |
| | DTE Energy Co. | Multi-Utilities | 432 | | 55,473 |
| | Duke Energy Corp. | Electric Utilities | 1,600 | | 184,480 |
| a | Dynatrace, Inc. | Software | 128 | | 6,844 |
| | East West Bancorp, Inc. | Banks | 320 | | 26,477 |
| | Eastman Chemical Co. | Chemicals | 256 | | 28,659 |
| | Eaton Corp. PLC | Electrical Equipment | 416 | | 137,879 |
| | eBay, Inc. | Broadline Retail | 752 | | 48,963 |
| | Edison International | Electric Utilities | 832 | | 72,459 |
| | Eli Lilly & Co. | Pharmaceuticals | 592 | | 524,476 |
| | Emerson Electric Co. | Electrical Equipment | 624 | | 68,247 |
| | Entegris, Inc. | Semiconductors & Semiconductor Equipment | 144 | | 16,204 |
| | Entergy Corp. | Electric Utilities | 432 | | 56,856 |
| | EOG Resources, Inc. | Oil, Gas & Consumable Fuels | 176 | | 21,636 |
| 30 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin U.S. Core Dividend Tilt Index ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | United States (continued) | | | | |
| | Equinix, Inc. | Specialized REITs | 84 | | $ 74,561 |
| | Equity LifeStyle Properties, Inc. | Residential REITs | 384 | | 27,395 |
| | Equity Residential | Residential REITs | 704 | | 52,420 |
| | Essex Property Trust, Inc. | Residential REITs | 128 | | 37,814 |
| | Estee Lauder Cos., Inc., Class A | Personal Care Products | 528 | | 52,636 |
| | Evergy, Inc. | Electric Utilities | 480 | | 29,765 |
| | Eversource Energy | Electric Utilities | 736 | | 50,085 |
| | Exelon Corp. | Electric Utilities | 2,032 | | 82,398 |
| | Extra Space Storage, Inc. | Specialized REITs | 416 | | 74,959 |
| | Exxon Mobil Corp. | Oil, Gas & Consumable Fuels | 4,112 | | 482,009 |
| | Fastenal Co. | Trading Companies & Distributors | 1,184 | | 84,561 |
| | FedEx Corp. | Air Freight & Logistics | 96 | | 26,273 |
| | Fidelity National Financial, Inc. | Insurance | 544 | | 33,761 |
| | Fidelity National Information Services, Inc. | Financial Services | 80 | | 6,700 |
| | Fifth Third Bancorp | Banks | 1,488 | | 63,746 |
| | FirstEnergy Corp. | Electric Utilities | 1,072 | | 47,543 |
| | Ford Motor Co. | Automobiles | 8,880 | | 93,773 |
| | Franklin Resources, Inc. | Capital Markets | 592 | | 11,929 |
| | Garmin Ltd. | Household Durables | 320 | | 56,330 |
| | Gen Digital, Inc. | Software | 915 | | 25,098 |
| | General Dynamics Corp. | Aerospace & Defense | 64 | | 19,341 |
| | General Mills, Inc. | Food Products | 1,168 | | 86,257 |
| | Genuine Parts Co. | Distributors | 320 | | 44,698 |
| | Gilead Sciences, Inc. | Biotechnology | 2,576 | | 215,972 |
| | Goldman Sachs Group, Inc. | Capital Markets | 272 | | 134,670 |
| | Healthpeak Properties, Inc. | Health Care REITs | 1,536 | | 35,128 |
| | Hewlett Packard Enterprise Co. | Technology Hardware, Storage & Peripherals | 1,760 | | 36,010 |
| | Home Depot, Inc. | Specialty Retail | 944 | | 382,509 |
| | Honeywell International, Inc. | Industrial Conglomerates | 288 | | 59,532 |
| | Hormel Foods Corp. | Food Products | 640 | | 20,288 |
| | Host Hotels & Resorts, Inc. | Hotel & Resort REITs | 1,536 | | 27,034 |
| | HP, Inc. | Technology Hardware, Storage & Peripherals | 2,288 | | 82,071 |
| | Hubbell, Inc., Class B | Electrical Equipment | 54 | | 23,131 |
| a | HubSpot, Inc. | Software | 32 | | 17,011 |
| | Huntington Bancshares, Inc. | Banks | 3,200 | | 47,040 |
| | Illinois Tool Works, Inc. | Machinery | 576 | | 150,952 |
| | Intel Corp. | Semiconductors & Semiconductor Equipment | 6,208 | | 145,640 |
| | International Business Machines Corp. | IT Services | 1,440 | | 318,355 |
| | International Flavors & Fragrances, Inc. | Chemicals | 544 | | 57,082 |
| | International Paper Co. | Containers & Packaging | 752 | | 36,735 |
| | Interpublic Group of Cos., Inc. | Media | 816 | | 25,810 |
| | Intuit, Inc. | Software | 240 | | 149,040 |
| a | Intuitive Surgical, Inc. | Health Care Equipment & Supplies | 96 | | 47,162 |
| | Invitation Homes, Inc. | Residential REITs | 1,248 | | 44,004 |
| | Iron Mountain, Inc. | Specialized REITs | 528 | | 62,742 |
| | J.M. Smucker Co. | Food Products | 224 | | 27,126 |
| | Johnson & Johnson | Pharmaceuticals | 2,752 | | 445,989 |
| | Johnson Controls International PLC | Building Products | 1,008 | | 78,231 |
| | JPMorgan Chase & Co. | Banks | 2,000 | | 421,720 |
| | Juniper Networks, Inc. | Communications Equipment | 688 | | 26,818 |
| | Kellanova | Food Products | 560 | | 45,198 |
| | Kenvue, Inc. | Personal Care Products | 3,472 | | 80,307 |
| | KeyCorp | Banks | 2,144 | | 35,912 |
| | Kimberly-Clark Corp. | Household Products | 720 | | 102,442 |
| | Kimco Realty Corp. | Retail REITs | 1,440 | | 33,437 |
| | Kinder Morgan, Inc. | Oil, Gas & Consumable Fuels | 4,304 | | 95,075 |
| | KKR & Co., Inc. | Capital Markets | 368 | | 48,053 |
| franklintempleton.com | Semi-Annual Report | 31 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin U.S. Core Dividend Tilt Index ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | United States (continued) | | | | |
| | KLA Corp. | Semiconductors & Semiconductor Equipment | 176 | | $ 136,296 |
| | Kraft Heinz Co. | Food Products | 1,872 | | 65,726 |
| | Lam Research Corp. | Semiconductors & Semiconductor Equipment | 176 | | 143,630 |
| | Las Vegas Sands Corp. | Hotels, Restaurants & Leisure | 624 | | 31,412 |
| | Linde PLC | Chemicals | 112 | | 53,408 |
| | LKQ Corp. | Distributors | 608 | | 24,271 |
| | Lowe’s Cos., Inc. | Specialty Retail | 368 | | 99,673 |
| | LyondellBasell Industries NV, Class A | Chemicals | 576 | | 55,238 |
| | M&T Bank Corp. | Banks | 368 | | 65,548 |
| | Marvell Technology, Inc. | Semiconductors & Semiconductor Equipment | 512 | | 36,925 |
| | Mastercard, Inc., Class A | Financial Services | 160 | | 79,008 |
| | McDonald’s Corp. | Hotels, Restaurants & Leisure | 288 | | 87,699 |
| | Medtronic PLC | Health Care Equipment & Supplies | 2,320 | | 208,870 |
| | Merck & Co., Inc. | Pharmaceuticals | 2,672 | | 303,432 |
| | Meta Platforms, Inc., Class A | Interactive Media & Services | 1,400 | | 801,416 |
| | MetLife, Inc. | Insurance | 496 | | 40,910 |
| | Microchip Technology, Inc. | Semiconductors & Semiconductor Equipment | 1,184 | | 95,063 |
| | Micron Technology, Inc. | Semiconductors & Semiconductor Equipment | 752 | | 77,990 |
| | Microsoft Corp. | Software | 5,328 | | 2,292,638 |
| | Mid-America Apartment Communities, Inc. | Residential REITs | 240 | | 38,136 |
| | Molson Coors Beverage Co., Class B | Beverages | 320 | | 18,406 |
| a | MongoDB, Inc. | IT Services | 64 | | 17,302 |
| | Monolithic Power Systems, Inc. | Semiconductors & Semiconductor Equipment | 74 | | 68,413 |
| | Morgan Stanley | Capital Markets | 2,544 | | 265,187 |
| | MSCI, Inc. | Capital Markets | 144 | | 83,942 |
| | NetApp, Inc. | Technology Hardware, Storage & Peripherals | 448 | | 55,332 |
| a | Netflix, Inc. | Entertainment | 284 | | 201,433 |
| | Newmont Corp. | Metals & Mining | 128 | | 6,842 |
| | NextEra Energy, Inc. | Electric Utilities | 528 | | 44,632 |
| | NIKE, Inc., Class B | Textiles, Apparel & Luxury Goods | 640 | | 56,576 |
| | NiSource, Inc. | Multi-Utilities | 928 | | 32,155 |
| | Norfolk Southern Corp. | Ground Transportation | 96 | | 23,856 |
| | Northern Trust Corp. | Capital Markets | 448 | | 40,333 |
| | NVIDIA Corp. | Semiconductors & Semiconductor Equipment | 17,472 | | 2,121,800 |
| a | Okta, Inc. | IT Services | 90 | | 6,691 |
| | Omnicom Group, Inc. | Media | 416 | | 43,010 |
| | ONEOK, Inc. | Oil, Gas & Consumable Fuels | 1,264 | | 115,188 |
| | Oracle Corp. | Software | 992 | | 169,037 |
| | Packaging Corp. of America | Containers & Packaging | 192 | | 41,357 |
| a | Palantir Technologies, Inc., Class A | Software | 1,728 | | 64,282 |
| a | Palo Alto Networks, Inc. | Software | 256 | | 87,501 |
| | Paychex, Inc. | Professional Services | 672 | | 90,176 |
| | PepsiCo, Inc. | Beverages | 1,296 | | 220,385 |
| | Pfizer, Inc. | Pharmaceuticals | 9,696 | | 280,602 |
| | Philip Morris International, Inc. | Tobacco | 2,448 | | 297,187 |
| | Phillips 66 | Oil, Gas & Consumable Fuels | 624 | | 82,025 |
| | PNC Financial Services Group, Inc. | Banks | 880 | | 162,668 |
| | PPL Corp. | Electric Utilities | 1,552 | | 51,340 |
| | Principal Financial Group, Inc. | Insurance | 512 | | 43,981 |
| | Procter & Gamble Co. | Household Products | 1,664 | | 288,205 |
| | Prologis, Inc. | Industrial REITs | 1,392 | | 175,782 |
| | Prudential Financial, Inc. | Insurance | 800 | | 96,880 |
| | Public Service Enterprise Group, Inc. | Multi-Utilities | 640 | | 57,094 |
| | Public Storage | Specialized REITs | 320 | | 116,438 |
| | QUALCOMM, Inc. | Semiconductors & Semiconductor Equipment | 1,680 | | 285,684 |
| | Realty Income Corp. | Retail REITs | 1,824 | | 115,678 |
| | Regency Centers Corp. | Retail REITs | 352 | | 25,425 |
| 32 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin U.S. Core Dividend Tilt Index ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | United States (continued) | | | | |
| | Regions Financial Corp. | Banks | 2,080 | | $ 48,526 |
| | Rockwell Automation, Inc. | Electrical Equipment | 256 | | 68,726 |
| | Royalty Pharma PLC, Class A | Pharmaceuticals | 544 | | 15,390 |
| | RTX Corp. | Aerospace & Defense | 560 | | 67,850 |
| | Salesforce, Inc. | Software | 560 | | 153,278 |
| | Schlumberger NV | Energy Equipment & Services | 496 | | 20,807 |
| | Seagate Technology Holdings PLC | Technology Hardware, Storage & Peripherals | 416 | | 45,564 |
| a | ServiceNow, Inc. | Software | 168 | | 150,258 |
| | Simon Property Group, Inc. | Retail REITs | 656 | | 110,877 |
| | Sirius XM Holdings, Inc. | Media | 147 | | 3,477 |
| | Skyworks Solutions, Inc. | Semiconductors & Semiconductor Equipment | 368 | | 36,347 |
| | Smurfit WestRock PLC | Containers & Packaging | 1,152 | | 56,932 |
| | Snap-on, Inc. | Machinery | 112 | | 32,448 |
| a | Snowflake, Inc., Class A | IT Services | 176 | | 20,215 |
| | Southern Co. | Electric Utilities | 2,192 | | 197,675 |
| | Southern Copper Corp. | Metals & Mining | 209 | | 24,175 |
| | Southwest Airlines Co. | Passenger Airlines | 1,232 | | 36,504 |
| | Stanley Black & Decker, Inc. | Machinery | 336 | | 37,004 |
| | Starbucks Corp. | Hotels, Restaurants & Leisure | 1,120 | | 109,189 |
| | State Street Corp. | Capital Markets | 672 | | 59,452 |
| | Stryker Corp. | Health Care Equipment & Supplies | 16 | | 5,780 |
| | Sun Communities, Inc. | Residential REITs | 256 | | 34,598 |
| a | Super Micro Computer, Inc. | Technology Hardware, Storage & Peripherals | 64 | | 26,650 |
| a | Synopsys, Inc. | Software | 80 | | 40,511 |
| | Sysco Corp. | Consumer Staples Distribution & Retail | 832 | | 64,946 |
| | T. Rowe Price Group, Inc. | Capital Markets | 464 | | 50,544 |
| | Target Corp. | Consumer Staples Distribution & Retail | 672 | | 104,738 |
| | Teradyne, Inc. | Semiconductors & Semiconductor Equipment | 80 | | 10,714 |
| a | Tesla, Inc. | Automobiles | 1,664 | | 435,352 |
| | Texas Instruments, Inc. | Semiconductors & Semiconductor Equipment | 1,520 | | 313,986 |
| | Tractor Supply Co. | Specialty Retail | 48 | | 13,965 |
| a | Trade Desk, Inc., Class A | Media | 192 | | 21,053 |
| | Trane Technologies PLC | Building Products | 17 | | 6,608 |
| | Truist Financial Corp. | Banks | 2,992 | | 127,968 |
| | Tyson Foods, Inc., Class A | Food Products | 608 | | 36,212 |
| | U.S. Bancorp | Banks | 3,456 | | 158,043 |
| a | Uber Technologies, Inc. | Ground Transportation | 1,392 | | 104,623 |
| | UDR, Inc. | Residential REITs | 624 | | 28,292 |
| | Union Pacific Corp. | Ground Transportation | 464 | | 114,367 |
| | United Parcel Service, Inc., Class B | Air Freight & Logistics | 1,536 | | 209,418 |
| | UnitedHealth Group, Inc. | Health Care Providers & Services | 536 | | 313,388 |
| | Valero Energy Corp. | Oil, Gas & Consumable Fuels | 208 | | 28,086 |
| | Ventas, Inc. | Health Care REITs | 800 | | 51,304 |
| | Verizon Communications, Inc. | Diversified Telecommunication Services | 6,736 | | 302,514 |
| | Vertiv Holdings Co., Class A | Electrical Equipment | 528 | | 52,531 |
| | Viatris, Inc. | Pharmaceuticals | 2,624 | | 30,465 |
| | VICI Properties, Inc. | Specialized REITs | 2,160 | | 71,950 |
| | Visa, Inc., Class A | Financial Services | 400 | | 109,980 |
| | Walgreens Boots Alliance, Inc. | Consumer Staples Distribution & Retail | 1,619 | | 14,506 |
| | Walmart, Inc. | Consumer Staples Distribution & Retail | 112 | | 9,044 |
| | Walt Disney Co. | Entertainment | 416 | | 40,015 |
| | Watsco, Inc. | Trading Companies & Distributors | 80 | | 39,350 |
| | WEC Energy Group, Inc. | Multi-Utilities | 656 | | 63,094 |
| | Wells Fargo & Co. | Banks | 2,064 | | 116,595 |
| | Welltower, Inc. | Health Care REITs | 320 | | 40,970 |
| | Williams Cos., Inc. | Oil, Gas & Consumable Fuels | 2,624 | | 119,786 |
| a | Workday, Inc., Class A | Software | 80 | | 19,553 |
| franklintempleton.com | Semi-Annual Report | 33 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin U.S. Core Dividend Tilt Index ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | United States (continued) | | | | |
| | WP Carey, Inc. | Diversified REITs | 448 | | $ 27,910 |
| | Xcel Energy, Inc. | Electric Utilities | 1,120 | | 73,136 |
| a | Zscaler, Inc. | Software | 192 | | 32,820 |
| | | | | | 35,333,072 |
| | Total Common Stocks (Cost $30,820,426) | | | | 35,624,338 |
| | Total Investments before Short-Term Investments (Cost $30,820,426) | | | | 35,624,338 |
| | Short-Term Investments 0.0%† | | | | |
| | Money Market Funds 0.0%† | | | | |
| | United States 0.0%† | | | | |
| d,e | Institutional Fiduciary Trust - Money Market Portfolio, 4.74% | Money Market Funds | 10,885 | | 10,885 |
| | Total Short-Term Investments (Cost $10,885) | | | | 10,885 |
| | Total Investments (Cost $30,831,311) 99.8% | | | | 35,635,223 |
| | Other Assets, less Liabilities 0.2% | | | | 67,445 |
| | Net Assets 100.0% | | | | $ 35,702,668 |
| †Rounds to less than 0.1% of net assets. |
| aNon-income producing. |
| bFair valued using significant unobservable inputs. See Note 8 regarding fair value measurements. |
| cSee Note 6 regarding investments in Russian securities. |
| dThe rate shown is the annualized seven-day effective yield at period end. |
| eSee Note 3(c) regarding investments in affiliated management investment companies. |
At September 30, 2024, the Fund had the following futures contracts outstanding. See Note 1(c).
Futures Contracts
| Description | Type | Number of
Contracts | Notional
Amount* | Expiration
Date | Value/Unrealized
Appreciation
(Depreciation) |
| Equity Contracts | | | | | |
| S&P 500 E-Mini | Long | 2 | $ 58,143 | 12/20/24 | $ 1,146 |
See Note 7 regarding other derivative information.
See Abbreviations on page 80.
| 34 | Semi-Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
Franklin Templeton ETF Trust
Financial Highlights
Franklin U.S. Large Cap Multifactor Index ETF
| | Six Months Ended
September 30, 2024
(unaudited) | Year Ended March 31, |
| | 2024 | 2023 | 2022 | 2021 | 2020 |
| Per share operating performance | | | | | | |
| (for a share outstanding throughout the period) | | | | | | |
| Net asset value, beginning of period | $53.27 | $41.37 | $44.86 | $40.04 | $27.61 | $31.41 |
| Income from investment operationsa: | | | | | | |
| Net investment incomeb | 0.34 | 0.69 | 0.82 | 0.77 | 0.72 | 0.76 |
| Net realized and unrealized gains (losses) | 4.89 | 11.89 | (3.48) | 4.89 | 12.49 | (3.89) |
| Total from investment operations | 5.23 | 12.58 | (2.66) | 5.66 | 13.21 | (3.13) |
| Less distributions from net investment income | (0.32) | (0.68) | (0.83) | (0.84) | (0.78) | (0.67) |
| Net asset value, end of period | $58.18 | $53.27 | $41.37 | $44.86 | $40.04 | $27.61 |
| Total returnc | 9.84% | 30.68% | (5.79)% | 14.19% | 48.22% | (10.27)% |
| Ratios to average net assetsd | | | | | | |
| Expenses before waiver and payments by affiliates | 0.15% | 0.15% | 0.15% | 0.15% | 0.15% | 0.18% |
| Expenses net of waiver and payments by affiliates | 0.15% | 0.15% | 0.15% | 0.15% | 0.15% | 0.18% |
| Net investment income | 1.22% | 1.50% | 2.02% | 1.77% | 2.06% | 2.32% |
| Supplemental data | | | | | | |
| Net assets, end of period (000’s) | $1,358,515 | $1,283,815 | $860,419 | $966,737 | $1,353,407 | $1,311,583 |
| Portfolio turnover ratee | 27.63%f | 56.10%f | 51.95%f | 68.37%f | 25.05%f | 19.44%f |
| aThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of Creation Unit Fund shares in relation to income earned and/or fluctuating fair value of the investments of the Fund. |
| bBased on average daily shares outstanding. |
| cTotal return is not annualized for periods less than one year. Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. |
| dRatios are annualized for periods less than one year. |
| ePortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash ("Cash creations"). |
| fPortfolio turnover rate excluding cash creations was as follows: | 27.63% | 56.10% | 51.95% | 68.37% | 25.05% | 19.44% |
| franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Semi-Annual Report | 35 |
Franklin Templeton ETF Trust
Schedule of Investments, September 30, 2024 (unaudited)
Franklin U.S. Large Cap Multifactor Index ETF
| | | | Shares | | Value |
| | Common Stocks 99.7% | | | | |
| | Communication Services 9.5% | | | | |
| | Alphabet, Inc., Class A | | 159,247 | | $ 26,411,115 |
| | Alphabet, Inc., Class C | | 134,496 | | 22,486,386 |
| | AT&T, Inc. | | 638,389 | | 14,044,558 |
| | Fox Corp., Class A | | 32,223 | | 1,364,000 |
| | Fox Corp., Class B | | 34,558 | | 1,340,850 |
| | Meta Platforms, Inc., Class A | | 61,644 | | 35,287,491 |
| | Omnicom Group, Inc. | | 13,076 | | 1,351,928 |
| a | Spotify Technology SA | | 6,071 | | 2,237,346 |
| | T-Mobile U.S., Inc. | | 33,624 | | 6,938,649 |
| | Verizon Communications, Inc. | | 402,554 | | 18,078,700 |
| | | | | | 129,541,023 |
| | Consumer Discretionary 10.7% | | | | |
| a | Amazon.com, Inc. | | 198,942 | | 37,068,863 |
| | Best Buy Co., Inc. | | 17,746 | | 1,833,162 |
| | Booking Holdings, Inc. | | 3,244 | | 13,664,117 |
| | Carter’s, Inc. | | 20,081 | | 1,304,863 |
| a | Chipotle Mexican Grill, Inc. | | 132,628 | | 7,642,025 |
| a | Crocs, Inc. | | 9,340 | | 1,352,525 |
| a | Deckers Outdoor Corp. | | 17,279 | | 2,755,137 |
| | Dick’s Sporting Goods, Inc. | | 7,005 | | 1,461,944 |
| | Domino’s Pizza, Inc. | | 3,358 | | 1,444,410 |
| | DR Horton, Inc. | | 30,822 | | 5,879,913 |
| | eBay, Inc. | | 38,294 | | 2,493,322 |
| | Gap, Inc. | | 58,842 | | 1,297,466 |
| | Garmin Ltd. | | 16,345 | | 2,877,210 |
| | General Motors Co. | | 86,395 | | 3,873,952 |
| a | Grand Canyon Education, Inc. | | 9,340 | | 1,324,879 |
| | H&R Block, Inc. | | 21,015 | | 1,335,503 |
| | Hilton Worldwide Holdings, Inc. | | 18,213 | | 4,198,096 |
| | Lennar Corp., Class A | | 24,284 | | 4,552,764 |
| | Lennar Corp., Class B | | 7,939 | | 1,372,971 |
| | Macy’s, Inc. | | 84,994 | | 1,333,556 |
| | Murphy USA, Inc. | | 2,335 | | 1,150,851 |
| a | NVR, Inc. | | 320 | | 3,139,776 |
| | PulteGroup, Inc. | | 23,350 | | 3,351,426 |
| | Ralph Lauren Corp. | | 7,939 | | 1,539,134 |
| | Royal Caribbean Cruises Ltd. | | 9,807 | | 1,739,370 |
| a | Tesla, Inc. | | 45,766 | | 11,973,759 |
| | Texas Roadhouse, Inc. | | 7,939 | | 1,402,027 |
| | TJX Cos., Inc. | | 108,811 | | 12,789,645 |
| | Toll Brothers, Inc. | | 11,675 | | 1,803,671 |
| | Tractor Supply Co. | | 7,472 | | 2,173,829 |
| | Travel & Leisure Co. | | 29,888 | | 1,377,239 |
| | Williams-Sonoma, Inc. | | 15,878 | | 2,459,820 |
| | Wingstop, Inc. | | 3,269 | | 1,360,166 |
| | | | | | 145,327,391 |
| | Consumer Staples 6.0% | | | | |
| | Altria Group, Inc. | | 205,480 | | 10,487,699 |
| a | BJ’s Wholesale Club Holdings, Inc. | | 16,812 | | 1,386,654 |
| | Casey’s General Stores, Inc. | | 3,736 | | 1,403,653 |
| | Coca-Cola Consolidated, Inc. | | 934 | | 1,229,518 |
| | Colgate-Palmolive Co. | | 76,121 | | 7,902,121 |
| | Costco Wholesale Corp. | | 25,353 | | 22,475,941 |
| | Ingredion, Inc. | | 9,807 | | 1,347,776 |
| | Kellanova | | 16,345 | | 1,319,205 |
| 36 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin U.S. Large Cap Multifactor Index ETF (continued)
| | | | Shares | | Value |
| | Consumer Staples (continued) | | | | |
| | Kimberly-Clark Corp. | | 14,477 | | $ 2,059,788 |
| | Philip Morris International, Inc. | | 74,253 | | 9,014,314 |
| a | Pilgrim’s Pride Corp. | | 28,487 | | 1,311,826 |
| | Walmart, Inc. | | 273,662 | | 22,098,206 |
| | | | | | 82,036,701 |
| | Energy 1.4% | | | | |
| | APA Corp. | | 46,700 | | 1,142,282 |
| | Civitas Resources, Inc. | | 21,949 | | 1,112,156 |
| | Devon Energy Corp. | | 29,888 | | 1,169,218 |
| | Diamondback Energy, Inc. | | 14,944 | | 2,576,346 |
| | DT Midstream, Inc. | | 16,812 | | 1,322,432 |
| | Exxon Mobil Corp. | | 71,918 | | 8,430,228 |
| | Texas Pacific Land Corp. | | 1,534 | | 1,357,191 |
| | Viper Energy, Inc. | | 28,020 | | 1,263,982 |
| | | | | | 18,373,835 |
| | Financials 8.3% | | | | |
| | Aflac, Inc. | | 28,020 | | 3,132,636 |
| a | Arch Capital Group Ltd. | | 36,426 | | 4,075,341 |
| | Axis Capital Holdings Ltd. | | 16,812 | | 1,338,403 |
| a | Berkshire Hathaway, Inc., Class B | | 31,756 | | 14,616,017 |
| | Chubb Ltd. | | 26,619 | | 7,676,653 |
| | Citigroup, Inc. | | 193,338 | | 12,102,959 |
| | Citizens Financial Group, Inc. | | 38,761 | | 1,591,914 |
| | Evercore, Inc., Class A | | 5,604 | | 1,419,717 |
| | Goldman Sachs Group, Inc. | | 14,010 | | 6,936,491 |
| | Hartford Financial Services Group, Inc. | | 22,416 | | 2,636,346 |
| | Janus Henderson Group PLC | | 35,492 | | 1,351,180 |
| | Jefferies Financial Group, Inc. | | 22,416 | | 1,379,705 |
| | JPMorgan Chase & Co. | | 68,649 | | 14,475,328 |
| | Lincoln National Corp. | | 41,563 | | 1,309,650 |
| | Mastercard, Inc., Class A | | 47,167 | | 23,291,065 |
| | MGIC Investment Corp. | | 52,304 | | 1,338,982 |
| | Moody’s Corp. | | 16,345 | | 7,757,174 |
| | Reinsurance Group of America, Inc. | | 6,538 | | 1,424,434 |
| | Rithm Capital Corp. | | 111,613 | | 1,266,808 |
| | Synchrony Financial | | 44,365 | | 2,212,926 |
| | Western Union Co. | | 109,278 | | 1,303,687 |
| | | | | | 112,637,416 |
| | Health Care 15.3% | | | | |
| | AbbVie, Inc. | | 109,278 | | 21,580,219 |
| | Amgen, Inc. | | 51,837 | | 16,702,400 |
| a | Boston Scientific Corp. | | 127,024 | | 10,644,611 |
| | Chemed Corp. | | 2,256 | | 1,355,788 |
| | Cigna Group | | 23,817 | | 8,251,161 |
| a | DaVita, Inc. | | 8,873 | | 1,454,551 |
| | Elevance Health, Inc. | | 9,667 | | 5,026,840 |
| | Eli Lilly & Co. | | 24,751 | | 21,927,901 |
| | Encompass Health Corp. | | 14,477 | | 1,399,057 |
| | HCA Healthcare, Inc. | | 20,081 | | 8,161,521 |
| a | Intuitive Surgical, Inc. | | 33,624 | | 16,518,462 |
| | Johnson & Johnson | | 137,298 | | 22,250,514 |
| a | Medpace Holdings, Inc. | | 3,736 | | 1,247,077 |
| | Merck & Co., Inc. | | 170,922 | | 19,409,902 |
| | Organon & Co. | | 59,776 | | 1,143,515 |
| | Quest Diagnostics, Inc. | | 8,406 | | 1,305,032 |
| a | Regeneron Pharmaceuticals, Inc. | | 10,677 | | 11,224,089 |
| franklintempleton.com | Semi-Annual Report | 37 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin U.S. Large Cap Multifactor Index ETF (continued)
| | | | Shares | | Value |
| | Health Care (continued) | | | | |
| | ResMed, Inc. | | 7,472 | | $ 1,824,065 |
| | Stryker Corp. | | 33,157 | | 11,978,298 |
| a | Tenet Healthcare Corp. | | 10,274 | | 1,707,539 |
| a | United Therapeutics Corp. | | 4,203 | | 1,506,145 |
| | UnitedHealth Group, Inc. | | 12,142 | | 7,099,185 |
| | Universal Health Services, Inc., Class B | | 7,005 | | 1,604,215 |
| a | Vertex Pharmaceuticals, Inc. | | 27,086 | | 12,597,157 |
| | | | | | 207,919,244 |
| | Industrials 9.7% | | | | |
| | Acuity Brands, Inc. | | 5,137 | | 1,414,678 |
| | Allison Transmission Holdings, Inc. | | 14,477 | | 1,390,805 |
| | Armstrong World Industries, Inc. | | 10,741 | | 1,411,690 |
| a | CACI International, Inc., Class A | | 2,802 | | 1,413,777 |
| | Carlisle Cos., Inc. | | 4,670 | | 2,100,332 |
| | Caterpillar, Inc. | | 45,299 | | 17,717,345 |
| | CH Robinson Worldwide, Inc. | | 13,076 | | 1,443,198 |
| | Cintas Corp. | | 29,287 | | 6,029,607 |
| a | Clean Harbors, Inc. | | 5,604 | | 1,354,543 |
| | Comfort Systems USA, Inc. | | 3,736 | | 1,458,348 |
| | Cummins, Inc. | | 9,807 | | 3,175,408 |
| | Curtiss-Wright Corp. | | 4,203 | | 1,381,484 |
| | Delta Air Lines, Inc. | | 42,964 | | 2,182,142 |
| | EMCOR Group, Inc. | | 3,269 | | 1,407,403 |
| | Fastenal Co. | | 56,040 | | 4,002,377 |
| | General Dynamics Corp. | | 18,680 | | 5,645,096 |
| | Genpact Ltd. | | 34,091 | | 1,336,708 |
| | Howmet Aerospace, Inc. | | 29,421 | | 2,949,455 |
| a | Kirby Corp. | | 11,208 | | 1,372,195 |
| | Leidos Holdings, Inc. | | 14,010 | | 2,283,630 |
| | Lennox International, Inc. | | 3,269 | | 1,975,424 |
| | Lockheed Martin Corp. | | 10,277 | | 6,007,523 |
| | Masco Corp. | | 21,482 | | 1,803,199 |
| | MDU Resources Group, Inc. | | 51,370 | | 1,408,052 |
| | Owens Corning | | 8,873 | | 1,566,262 |
| | PACCAR, Inc. | | 54,172 | | 5,345,693 |
| | Parker-Hannifin Corp. | | 10,274 | | 6,491,319 |
| | Republic Services, Inc. | | 20,081 | | 4,033,068 |
| | Rollins, Inc. | | 26,619 | | 1,346,389 |
| | RTX Corp. | | 57,441 | | 6,959,551 |
| | Ryder System, Inc. | | 9,340 | | 1,361,772 |
| | SS&C Technologies Holdings, Inc. | | 17,746 | | 1,316,931 |
| | Trane Technologies PLC | | 21,949 | | 8,532,235 |
| | United Rentals, Inc. | | 6,345 | | 5,137,737 |
| | Waste Management, Inc. | | 41,563 | | 8,628,479 |
| | Watsco, Inc. | | 3,269 | | 1,607,956 |
| | Westinghouse Air Brake Technologies Corp. | | 12,142 | | 2,207,051 |
| | WW Grainger, Inc. | | 4,359 | | 4,528,173 |
| | | | | | 131,727,035 |
| | Information Technology 33.6% | | | | |
| | Amphenol Corp., Class A | | 119,085 | | 7,759,579 |
| | Analog Devices, Inc. | | 21,015 | | 4,837,023 |
| | Apple, Inc. | | 420,767 | | 98,038,711 |
| | Applied Materials, Inc. | | 76,588 | | 15,474,605 |
| a | AppLovin Corp., Class A | | 19,614 | | 2,560,608 |
| a | Arista Networks, Inc. | | 28,487 | | 10,933,880 |
| | Avnet, Inc. | | 24,284 | | 1,318,864 |
| | Broadcom, Inc. | | 146,600 | | 25,288,500 |
| 38 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin U.S. Large Cap Multifactor Index ETF (continued)
| | | | Shares | | Value |
| | Information Technology (continued) | | | | |
| a | Cirrus Logic, Inc. | | 9,340 | | $ 1,160,121 |
| | Cognizant Technology Solutions Corp., Class A | | 42,964 | | 3,315,962 |
| | Corning, Inc. | | 57,441 | | 2,593,461 |
| | Dell Technologies, Inc., Class C | | 19,147 | | 2,269,685 |
| a | Fair Isaac Corp. | | 1,031 | | 2,003,769 |
| | Hewlett Packard Enterprise Co. | | 133,562 | | 2,732,679 |
| | HP, Inc. | | 105,075 | | 3,769,040 |
| | International Business Machines Corp. | | 86,395 | | 19,100,207 |
| | Juniper Networks, Inc. | | 34,091 | | 1,328,867 |
| | KLA Corp. | | 14,944 | | 11,572,783 |
| | Lam Research Corp. | | 12,953 | | 10,570,684 |
| | Microchip Technology, Inc. | | 47,634 | | 3,824,534 |
| | Microsoft Corp. | | 196,607 | | 84,599,992 |
| | Monolithic Power Systems, Inc. | | 2,106 | | 1,946,997 |
| | Motorola Solutions, Inc. | | 15,878 | | 7,139,225 |
| | NetApp, Inc. | | 24,751 | | 3,056,996 |
| | NVIDIA Corp. | | 656,135 | | 79,681,034 |
| | Oracle Corp. | | 65,380 | | 11,140,752 |
| | QUALCOMM, Inc. | | 101,339 | | 17,232,697 |
| | Skyworks Solutions, Inc. | | 15,411 | | 1,522,145 |
| | TD SYNNEX Corp. | | 10,741 | | 1,289,779 |
| | Teradyne, Inc. | | 11,208 | | 1,501,087 |
| | Texas Instruments, Inc. | | 82,192 | | 16,978,402 |
| | | | | | 456,542,668 |
| | Materials 1.6% | | | | |
| | Amcor PLC | | 115,816 | | 1,312,195 |
| | CF Industries Holdings, Inc. | | 17,746 | | 1,522,607 |
| | CRH PLC | | 47,634 | | 4,417,577 |
| | Eastman Chemical Co. | | 12,609 | | 1,411,578 |
| | Graphic Packaging Holding Co. | | 44,365 | | 1,312,760 |
| | International Paper Co. | | 31,289 | | 1,528,468 |
| | LyondellBasell Industries NV, Class A | | 25,685 | | 2,463,192 |
| | NewMarket Corp. | | 2,335 | | 1,288,663 |
| | Packaging Corp. of America | | 8,406 | | 1,810,652 |
| | Royal Gold, Inc. | | 9,340 | | 1,310,402 |
| | Southern Copper Corp. | | 13,076 | | 1,512,501 |
| | Steel Dynamics, Inc. | | 15,878 | | 2,001,898 |
| | | | | | 21,892,493 |
| | Real Estate 2.6% | | | | |
| | Agree Realty Corp. | | 18,213 | | 1,371,985 |
| | AvalonBay Communities, Inc. | | 6,071 | | 1,367,493 |
| | Cousins Properties, Inc. | | 46,700 | | 1,376,716 |
| | EPR Properties | | 28,020 | | 1,374,101 |
| | Essex Property Trust, Inc. | | 5,137 | | 1,517,573 |
| | Extra Space Storage, Inc. | | 8,873 | | 1,598,826 |
| | Gaming & Leisure Properties, Inc. | | 25,685 | | 1,321,493 |
| | Highwoods Properties, Inc. | | 41,563 | | 1,392,776 |
| | Iron Mountain, Inc. | | 21,482 | | 2,552,706 |
| | Kilroy Realty Corp. | | 36,893 | | 1,427,759 |
| | Lamar Advertising Co., Class A | | 10,741 | | 1,434,998 |
| | NNN REIT, Inc. | | 28,487 | | 1,381,335 |
| | Omega Healthcare Investors, Inc. | | 33,624 | | 1,368,497 |
| | Park Hotels & Resorts, Inc. | | 87,329 | | 1,231,339 |
| | Public Storage | | 14,944 | | 5,437,673 |
| | Realty Income Corp. | | 36,893 | | 2,339,754 |
| | Simon Property Group, Inc. | | 35,025 | | 5,919,925 |
| franklintempleton.com | Semi-Annual Report | 39 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin U.S. Large Cap Multifactor Index ETF (continued)
| | | | Shares | | Value |
| | Real Estate (continued) | | | | |
| | VICI Properties, Inc. | | 44,365 | | $ 1,477,798 |
| | | | | | 35,892,747 |
| | Utilities 1.0% | | | | |
| | Entergy Corp. | | 14,477 | | 1,905,318 |
| | National Fuel Gas Co. | | 22,416 | | 1,358,634 |
| | NRG Energy, Inc. | | 17,279 | | 1,574,117 |
| | Public Service Enterprise Group, Inc. | | 34,091 | | 3,041,258 |
| | Southern Co. | | 45,299 | | 4,085,064 |
| | UGI Corp. | | 53,705 | | 1,343,699 |
| | | | | | 13,308,090 |
| | Total Common Stocks (Cost $1,041,074,802) | | | | 1,355,198,643 |
| | Total Investments before Short-Term Investments
(Cost $1,041,074,802) | | | | 1,355,198,643 |
| | Short-Term Investments 0.2% | | | | |
| | Money Market Funds 0.2% | | | | |
| b,c | Institutional Fiduciary Trust - Money Market Portfolio, 4.74% | | 2,544,648 | | 2,544,648 |
| | Total Short-Term Investments (Cost $2,544,648) | | | | 2,544,648 |
| | Total Investments (Cost $1,043,619,450) 99.9% | | | | 1,357,743,291 |
| | Other Assets, less Liabilities 0.1% | | | | 771,348 |
| | Net Assets 100.0% | | | | $ 1,358,514,639 |
| aNon-income producing. |
| bThe rate shown is the annualized seven-day effective yield at period end. |
| cSee Note 3(c) regarding investments in affiliated management investment companies. |
At September 30, 2024, the Fund had the following futures contracts outstanding. See Note 1(c).
Futures Contracts
| Description | Type | Number of
Contracts | Notional
Amount* | Expiration
Date | Value/Unrealized
Appreciation
(Depreciation) |
| Equity Contracts | | | | | |
| S&P 500 E-Mini | Long | 9 | $ 2,616,413 | 12/20/24 | $ 42,846 |
See Note 7 regarding other derivative information.
See Abbreviations on page 80.
| 40 | Semi-Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
Franklin Templeton ETF Trust
Financial Highlights
Franklin U.S. Mid Cap Multifactor Index ETF
| | Six Months Ended
September 30, 2024
(unaudited) | Year Ended March 31, |
| | 2024 | 2023 | 2022 | 2021 | 2020 |
| Per share operating performance | | | | | | |
| (for a share outstanding throughout the period) | | | | | | |
| Net asset value, beginning of period | $53.45 | $43.31 | $44.90 | $40.84 | $24.94 | $30.32 |
| Income from investment operationsa: | | | | | | |
| Net investment incomeb | 0.42 | 0.80 | 0.71 | 0.54 | 0.45 | 0.50 |
| Net realized and unrealized gains (losses) | 2.11 | 9.95 | (1.73) | 4.03 | 15.86 | (5.41) |
| Total from investment operations | 2.53 | 10.75 | (1.02) | 4.57 | 16.31 | (4.91) |
| Less distributions from net investment income | (0.37) | (0.61) | (0.57) | (0.51) | (0.41) | (0.47) |
| Net asset value, end of period | $55.61 | $53.45 | $43.31 | $44.90 | $40.84 | $24.94 |
| Total returnc | 4.77% | 25.04% | (2.17)% | 11.18% | 65.69% | (16.50)% |
| Ratios to average net assetsd | | | | | | |
| Expenses before waiver and payments by affiliates | 0.30% | 0.30% | 0.30% | 0.30% | 0.30% | 0.30% |
| Expenses net of waiver and payments by affiliates | 0.30% | 0.30% | 0.30% | 0.30% | 0.30% | 0.30% |
| Net investment income | 1.60% | 1.74% | 1.69% | 1.21% | 1.30% | 1.60% |
| Supplemental data | | | | | | |
| Net assets, end of period (000’s) | $1,037,146 | $611,988 | $166,748 | $62,855 | $36,759 | $13,718 |
| Portfolio turnover ratee | 12.12%f | 19.41%f | 24.07%f | 22.76%f | 25.02%f | 24.20%f |
| aThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of Creation Unit Fund shares in relation to income earned and/or fluctuating fair value of the investments of the Fund. |
| bBased on average daily shares outstanding. |
| cTotal return is not annualized for periods less than one year. Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. |
| dRatios are annualized for periods less than one year. |
| ePortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash ("Cash creations"). |
| fPortfolio turnover rate excluding cash creations was as follows: | 12.12% | 19.41% | 24.07% | 22.76% | 25.02% | 24.20% |
| franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Semi-Annual Report | 41 |
Franklin Templeton ETF Trust
Schedule of Investments, September 30, 2024 (unaudited)
Franklin U.S. Mid Cap Multifactor Index ETF
| | | | Shares | | Value |
| | Common Stocks 99.9% | | | | |
| | Communication Services 2.0% | | | | |
| | Electronic Arts, Inc. | | 72,362 | | $ 10,379,605 |
| | Fox Corp., Class A | | 42,149 | | 1,784,167 |
| | Omnicom Group, Inc. | | 82,806 | | 8,561,312 |
| | Playtika Holding Corp. | | 25,737 | | 203,837 |
| | Sirius XM Holdings, Inc. | | 11,190 | | 264,644 |
| | | | | | 21,193,565 |
| | Consumer Discretionary 19.2% | | | | |
| a | AutoNation, Inc. | | 12,309 | | 2,202,326 |
| | Bath & Body Works, Inc. | | 86,163 | | 2,750,323 |
| | Best Buy Co., Inc. | | 101,083 | | 10,441,874 |
| | Brunswick Corp. | | 26,483 | | 2,219,805 |
| | Carter’s, Inc. | | 16,412 | | 1,066,452 |
| b | Choice Hotels International, Inc. | | 11,190 | | 1,458,057 |
| | Columbia Sportswear Co. | | 13,428 | | 1,117,075 |
| a | Crocs, Inc. | | 20,515 | | 2,970,777 |
| a | Deckers Outdoor Corp. | | 52,869 | | 8,429,962 |
| | Dick’s Sporting Goods, Inc. | | 25,364 | | 5,293,467 |
| | Dillard’s, Inc., Class A | | 746 | | 286,233 |
| | DR Horton, Inc. | | 65,275 | | 12,452,512 |
| | eBay, Inc. | | 156,660 | | 10,200,133 |
| a | Expedia Group, Inc. | | 22,007 | | 3,257,476 |
| | Gap, Inc. | | 35,808 | | 789,566 |
| | Garmin Ltd. | | 58,934 | | 10,374,152 |
| | Genuine Parts Co. | | 54,831 | | 7,658,794 |
| a | Grand Canyon Education, Inc. | | 9,698 | | 1,375,661 |
| | H&R Block, Inc. | | 63,783 | | 4,053,410 |
| | Kohl’s Corp. | | 42,522 | | 897,214 |
| | LKQ Corp. | | 99,591 | | 3,975,673 |
| | Macy’s, Inc. | | 120,479 | | 1,890,315 |
| | Murphy USA, Inc. | | 7,460 | | 3,676,810 |
| | Nordstrom, Inc. | | 45,879 | | 1,031,819 |
| a | NVR, Inc. | | 927 | | 9,095,539 |
| | Penske Automotive Group, Inc. | | 7,460 | | 1,211,653 |
| | Polaris, Inc. | | 22,380 | | 1,862,911 |
| | Pool Corp. | | 14,547 | | 5,481,310 |
| | PulteGroup, Inc. | | 80,941 | | 11,617,462 |
| | Ralph Lauren Corp. | | 17,158 | | 3,326,421 |
| a | Skechers USA, Inc., Class A | | 52,593 | | 3,519,524 |
| | Tapestry, Inc. | | 112,273 | | 5,274,586 |
| | Tempur Sealy International, Inc. | | 73,481 | | 4,012,063 |
| | Texas Roadhouse, Inc. | | 27,602 | | 4,874,513 |
| | Toll Brothers, Inc. | | 26,856 | | 4,148,983 |
| | Tractor Supply Co. | | 33,570 | | 9,766,520 |
| a | Ulta Beauty, Inc. | | 20,888 | | 8,127,939 |
| | VF Corp. | | 126,074 | | 2,515,176 |
| | Wendy’s Co. | | 34,316 | | 601,216 |
| | Williams-Sonoma, Inc. | | 64,156 | | 9,939,047 |
| | Wingstop, Inc. | | 9,325 | | 3,879,946 |
| | Yum! Brands, Inc. | | 70,124 | | 9,797,024 |
| | | | | | 198,921,719 |
| | Consumer Staples 6.9% | | | | |
| | Albertsons Cos., Inc., Class A | | 199,555 | | 3,687,776 |
| a | BJ’s Wholesale Club Holdings, Inc. | | 55,577 | | 4,583,991 |
| | Casey’s General Stores, Inc. | | 13,055 | | 4,904,894 |
| | Church & Dwight Co., Inc. | | 85,044 | | 8,905,808 |
| 42 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin U.S. Mid Cap Multifactor Index ETF (continued)
| | | | Shares | | Value |
| | Consumer Staples (continued) | | | | |
| | Clorox Co. | | 47,744 | | $ 7,777,975 |
| | Coca-Cola Consolidated, Inc. | | 1,119 | | 1,473,052 |
| | Dollar General Corp. | | 41,030 | | 3,469,907 |
| | Flowers Foods, Inc. | | 87,655 | | 2,022,201 |
| | Hershey Co. | | 32,451 | | 6,223,453 |
| | Kellanova | | 48,863 | | 3,943,733 |
| | Kroger Co. | | 184,262 | | 10,558,212 |
| | Lamb Weston Holdings, Inc. | | 47,744 | | 3,090,946 |
| | Sysco Corp. | | 119,360 | | 9,317,242 |
| | Walgreens Boots Alliance, Inc. | | 201,420 | | 1,804,723 |
| | | | | | 71,763,913 |
| | Energy 4.7% | | | | |
| | Antero Midstream Corp. | | 148,081 | | 2,228,619 |
| | APA Corp. | | 129,804 | | 3,175,006 |
| | Cheniere Energy, Inc. | | 46,998 | | 8,452,120 |
| | Chord Energy Corp. | | 12,682 | | 1,651,577 |
| | Civitas Resources, Inc. | | 19,769 | | 1,001,695 |
| | Devon Energy Corp. | | 196,571 | | 7,689,858 |
| | Diamondback Energy, Inc. | | 48,117 | | 8,295,371 |
| | DT Midstream, Inc. | | 18,650 | | 1,467,009 |
| | HF Sinclair Corp. | | 57,069 | | 2,543,565 |
| | Ovintiv, Inc. | | 107,051 | | 4,101,124 |
| | Texas Pacific Land Corp. | | 7,833 | | 6,930,169 |
| | Viper Energy, Inc. | | 16,412 | | 740,345 |
| | | | | | 48,276,458 |
| | Financials 11.8% | | | | |
| | Affiliated Managers Group, Inc. | | 14,174 | | 2,520,137 |
| | Allstate Corp. | | 57,442 | | 10,893,875 |
| | Ally Financial, Inc. | | 102,202 | | 3,637,369 |
| a | Arch Capital Group Ltd. | | 66,021 | | 7,386,430 |
| | Assured Guaranty Ltd. | | 19,396 | | 1,542,370 |
| | Cincinnati Financial Corp. | | 61,918 | | 8,428,278 |
| | CNA Financial Corp. | | 8,952 | | 438,111 |
| | Columbia Banking System, Inc. | | 40,284 | | 1,051,815 |
| | Everest Group Ltd. | | 16,412 | | 6,430,714 |
| | Globe Life, Inc. | | 40,284 | | 4,266,478 |
| | Hartford Financial Services Group, Inc. | | 93,250 | | 10,967,133 |
| | Invesco Ltd. | | 68,259 | | 1,198,628 |
| | Janus Henderson Group PLC | | 49,609 | | 1,888,615 |
| | Kinsale Capital Group, Inc. | | 7,833 | | 3,646,810 |
| | MGIC Investment Corp. | | 137,637 | | 3,523,507 |
| | MSCI, Inc. | | 19,396 | | 11,306,510 |
| | Old Republic International Corp. | | 85,417 | | 3,025,470 |
| | OneMain Holdings, Inc. | | 38,792 | | 1,825,939 |
| | Prosperity Bancshares, Inc. | | 34,316 | | 2,473,154 |
| | Regions Financial Corp. | | 331,597 | | 7,736,158 |
| | Rithm Capital Corp. | | 163,747 | | 1,858,529 |
| | SEI Investments Co. | | 47,744 | | 3,303,407 |
| | Synchrony Financial | | 182,397 | | 9,097,962 |
| | T. Rowe Price Group, Inc. | | 66,021 | | 7,191,668 |
| | Unum Group | | 69,005 | | 4,101,657 |
| | Western Union Co. | | 187,992 | | 2,242,745 |
| | | | | | 121,983,469 |
| | Health Care 10.2% | | | | |
| a | Acadia Healthcare Co., Inc. | | 36,927 | | 2,341,541 |
| | Cencora, Inc. | | 32,451 | | 7,304,071 |
| franklintempleton.com | Semi-Annual Report | 43 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin U.S. Mid Cap Multifactor Index ETF (continued)
| | | | Shares | | Value |
| | Health Care (continued) | | | | |
| | Chemed Corp. | | 5,222 | | $ 3,138,265 |
| a | DaVita, Inc. | | 14,920 | | 2,445,836 |
| | Encompass Health Corp. | | 51,474 | | 4,974,447 |
| a | IDEXX Laboratories, Inc. | | 19,396 | | 9,799,247 |
| a | Incyte Corp. | | 83,925 | | 5,547,443 |
| a | Mettler-Toledo International, Inc. | | 6,864 | | 10,293,941 |
| a | Neurocrine Biosciences, Inc. | | 46,252 | | 5,329,156 |
| | Organon & Co. | | 116,749 | | 2,233,408 |
| | ResMed, Inc. | | 46,625 | | 11,382,095 |
| | Royalty Pharma PLC, Class A | | 161,509 | | 4,569,090 |
| a | Solventum Corp. | | 25,364 | | 1,768,378 |
| a | Tenet Healthcare Corp. | | 40,657 | | 6,757,193 |
| a | United Therapeutics Corp. | | 18,277 | | 6,549,563 |
| | Universal Health Services, Inc., Class B | | 25,737 | | 5,894,030 |
| | Viatris, Inc. | | 458,790 | | 5,326,552 |
| a | Waters Corp. | | 27,975 | | 10,067,923 |
| | | | | | 105,722,179 |
| | Industrials 23.1% | | | | |
| | Acuity Brands, Inc. | | 5,595 | | 1,540,807 |
| | Allegion PLC | | 34,316 | | 5,001,214 |
| | Allison Transmission Holdings, Inc. | | 41,776 | | 4,013,420 |
| | Armstrong World Industries, Inc. | | 7,833 | | 1,029,491 |
| | Booz Allen Hamilton Holding Corp. | | 63,410 | | 10,320,612 |
| a | Builders FirstSource, Inc. | | 50,355 | | 9,761,820 |
| a | CACI International, Inc., Class A | | 6,341 | | 3,199,415 |
| | CH Robinson Worldwide, Inc. | | 44,760 | | 4,940,161 |
| | Concentrix Corp. | | 8,579 | | 439,674 |
| | Cummins, Inc. | | 24,245 | | 7,850,289 |
| | Curtiss-Wright Corp. | | 13,801 | | 4,536,251 |
| | Delta Air Lines, Inc. | | 182,397 | | 9,263,944 |
| | Donaldson Co., Inc. | | 49,609 | | 3,656,183 |
| | Dover Corp. | | 52,220 | | 10,012,663 |
| | Expeditors International of Washington, Inc. | | 58,934 | | 7,743,928 |
| | Fastenal Co. | | 146,216 | | 10,442,747 |
| | Ferguson Enterprises, Inc. | | 46,998 | | 9,332,393 |
| | Genpact Ltd. | | 68,259 | | 2,676,435 |
| | Graco, Inc. | | 61,545 | | 5,385,803 |
| | Landstar System, Inc. | | 13,428 | | 2,536,146 |
| | Leidos Holdings, Inc. | | 24,618 | | 4,012,734 |
| | Lennox International, Inc. | | 14,174 | | 8,565,206 |
| | Lincoln Electric Holdings, Inc. | | 23,499 | | 4,512,278 |
| | ManpowerGroup, Inc. | | 18,650 | | 1,371,148 |
| | Masco Corp. | | 80,195 | | 6,731,568 |
| | MSC Industrial Direct Co., Inc., Class A | | 22,007 | | 1,893,922 |
| | Nordson Corp. | | 20,142 | | 5,289,893 |
| | Old Dominion Freight Line, Inc. | | 54,831 | | 10,891,630 |
| | Otis Worldwide Corp. | | 97,353 | | 10,118,871 |
| | Paychex, Inc. | | 80,195 | | 10,761,367 |
| | Paycom Software, Inc. | | 19,396 | | 3,230,792 |
| | Robert Half, Inc. | | 42,522 | | 2,866,408 |
| | Rollins, Inc. | | 115,630 | | 5,848,565 |
| | Ryder System, Inc. | | 16,412 | | 2,392,870 |
| a | Saia, Inc. | | 8,579 | | 3,751,254 |
| | Schneider National, Inc., Class B | | 21,634 | | 617,434 |
| | Snap-on, Inc. | | 22,380 | | 6,483,710 |
| | Toro Co. | | 38,419 | | 3,332,080 |
| a | United Airlines Holdings, Inc. | | 63,410 | | 3,618,175 |
| | Veralto Corp. | | 49,982 | | 5,590,987 |
| 44 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin U.S. Mid Cap Multifactor Index ETF (continued)
| | | | Shares | | Value |
| | Industrials (continued) | | | | |
| | Verisk Analytics, Inc. | | 25,737 | | $ 6,896,486 |
| | Watsco, Inc. | | 13,304 | | 6,543,971 |
| | WW Grainger, Inc. | | 10,444 | | 10,849,332 |
| | | | | | 239,854,077 |
| | Information Technology 12.3% | | | | |
| | Amdocs Ltd. | | 43,268 | | 3,785,085 |
| a | Appfolio, Inc., Class A | | 4,103 | | 965,846 |
| | Avnet, Inc. | | 23,499 | | 1,276,231 |
| | CDW Corp. | | 43,268 | | 9,791,548 |
| a | Cirrus Logic, Inc. | | 17,531 | | 2,177,526 |
| | Dolby Laboratories, Inc., Class A | | 23,499 | | 1,798,379 |
| a | F5, Inc. | | 22,007 | | 4,845,941 |
| a | Fair Isaac Corp. | | 7,472 | | 14,521,981 |
| a | Gartner, Inc. | | 22,753 | | 11,530,310 |
| | Gen Digital, Inc. | | 205,523 | | 5,637,496 |
| a | GoDaddy, Inc., Class A | | 50,728 | | 7,953,136 |
| | Hewlett Packard Enterprise Co. | | 454,687 | | 9,302,896 |
| | HP, Inc. | | 264,457 | | 9,486,073 |
| | Jabil, Inc. | | 36,927 | | 4,424,962 |
| | Juniper Networks, Inc. | | 123,090 | | 4,798,048 |
| a | Manhattan Associates, Inc. | | 29,467 | | 8,291,425 |
| | NetApp, Inc. | | 80,195 | | 9,904,884 |
| | Teradyne, Inc. | | 54,085 | | 7,243,604 |
| a | VeriSign, Inc. | | 39,165 | | 7,439,783 |
| | Vontier Corp. | | 66,767 | | 2,252,719 |
| | | | | | 127,427,873 |
| | Materials 4.6% | | | | |
| | Avery Dennison Corp. | | 32,824 | | 7,246,226 |
| | CF Industries Holdings, Inc. | | 73,108 | | 6,272,666 |
| | LyondellBasell Industries NV, Class A | | 90,639 | | 8,692,280 |
| | NewMarket Corp. | | 2,238 | | 1,235,130 |
| | Reliance, Inc. | | 23,872 | | 6,904,021 |
| | RPM International, Inc. | | 46,625 | | 5,641,625 |
| | Sealed Air Corp. | | 60,799 | | 2,207,004 |
| | Sonoco Products Co. | | 37,673 | | 2,058,076 |
| | Steel Dynamics, Inc. | | 56,696 | | 7,148,232 |
| | | | | | 47,405,260 |
| | Real Estate 4.0% | | | | |
| | AvalonBay Communities, Inc. | | 49,982 | | 11,258,445 |
| | BXP, Inc. | | 49,609 | | 3,991,540 |
| | Camden Property Trust | | 38,792 | | 4,791,976 |
| | Cousins Properties, Inc. | | 26,856 | | 791,715 |
| | EastGroup Properties, Inc. | | 14,547 | | 2,717,671 |
| | Equity LifeStyle Properties, Inc. | | 61,545 | | 4,390,620 |
| | Highwoods Properties, Inc. | | 47,371 | | 1,587,402 |
| | Kilroy Realty Corp. | | 37,300 | | 1,443,510 |
| | Lamar Advertising Co., Class A | | 15,666 | | 2,092,978 |
| | NNN REIT, Inc. | | 69,378 | | 3,364,139 |
| | STAG Industrial, Inc. | | 57,442 | | 2,245,408 |
| | WP Carey, Inc. | | 42,149 | | 2,625,883 |
| | | | | | 41,301,287 |
| franklintempleton.com | Semi-Annual Report | 45 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin U.S. Mid Cap Multifactor Index ETF (continued)
| | | | Shares | | Value |
| | Utilities 1.1% | | | | |
| | American Water Works Co., Inc. | | 66,021 | | $ 9,654,911 |
| | National Fuel Gas Co. | | 33,197 | | 2,012,070 |
| | | | | | 11,666,981 |
| | Total Common Stocks (Cost $918,307,063) | | | | 1,035,516,781 |
| | Total Investments before Short-Term Investments
(Cost $918,307,063) | | | | 1,035,516,781 |
| | Short-Term Investments 0.1% | | | | |
| | Investments from Cash Collateral Received for Loaned Securities 0.1% | | | | |
| | Money Market Funds 0.1% | | | | |
| c,d | Institutional Fiduciary Trust - Money Market Portfolio, 4.74% | | 718,150 | | 718,150 |
| | Money Market Funds 0.0%† | | | | |
| c,d | Institutional Fiduciary Trust - Money Market Portfolio, 4.74% | | 585,404 | | 585,404 |
| | Total Short-Term Investments (Cost $1,303,554) | | | | 1,303,554 |
| | Total Investments (Cost $919,610,617) 100.0% | | | | 1,036,820,335 |
| | Other Assets, less Liabilities 0.0%† | | | | 325,896 |
| | Net Assets 100.0% | | | | $ 1,037,146,231 |
| †Rounds to less than 0.1% of net assets. |
| aNon-income producing. |
| bA portion or all of the security is on loan at September 30, 2024. See Note 1(d). |
| cThe rate shown is the annualized seven-day effective yield at period end. |
| dSee Note 3(c) regarding investments in affiliated management investment companies. |
At September 30, 2024, the Fund had the following futures contracts outstanding. See Note 1(c).
Futures Contracts
| Description | Type | Number of
Contracts | Notional
Amount* | Expiration
Date | Value/Unrealized
Appreciation
(Depreciation) |
| Equity Contracts | | | | | |
| S&P MidCap 400 E-Mini | Long | 3 | $ 944,580 | 12/20/24 | $ 18,204 |
See Note 7 regarding other derivative information.
See Abbreviations on page 80.
| 46 | Semi-Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
Franklin Templeton ETF Trust
Financial Highlights
Franklin U.S. Small Cap Multifactor Index ETF
| | Six Months Ended
September 30, 2024
(unaudited) | Year Ended March 31, |
| | 2024 | 2023 | 2022 | 2021 | 2020 |
| Per share operating performance | | | | | | |
| (for a share outstanding throughout the period) | | | | | | |
| Net asset value, beginning of period | $40.57 | $34.10 | $36.16 | $36.53 | $20.48 | $27.66 |
| Income from investment operationsa: | | | | | | |
| Net investment incomeb | 0.30 | 0.55 | 0.54 | 0.38 | 0.28 | 0.39 |
| Net realized and unrealized gains (losses) | 1.78 | 6.41 | (2.10) | (0.36) | 16.15 | (7.15) |
| Total from investment operations | 2.08 | 6.96 | (1.56) | 0.02 | 16.43 | (6.76) |
| Less distributions from net investment income | (0.32) | (0.49) | (0.50) | (0.39) | (0.38) | (0.42) |
| Net asset value, end of period | $42.33 | $40.57 | $34.10 | $36.16 | $36.53 | $20.48 |
| Total returnc | 5.16% | 20.59% | (4.21)% | 0.02% | 80.74% | (24.83)% |
| Ratios to average net assetsd | | | | | | |
| Expenses before waiver and payments by affiliates | 0.35% | 0.35% | 0.35% | 0.35% | 0.35% | 0.35% |
| Expenses net of waiver and payments by affiliates | 0.35% | 0.35% | 0.35% | 0.35% | 0.35% | 0.35% |
| Net investment income | 1.52% | 1.53% | 1.60% | 1.00% | 0.99% | 1.41% |
| Supplemental data | | | | | | |
| Net assets, end of period (000’s) | $42,329 | $36,510 | $17,048 | $16,273 | $14,613 | $13,310 |
| Portfolio turnover ratee | 11.53%f | 23.57%f | 28.79%f | 27.64%f | 34.77%f | 23.83%f |
| aThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of Creation Unit Fund shares in relation to income earned and/or fluctuating fair value of the investments of the Fund. |
| bBased on average daily shares outstanding. |
| cTotal return is not annualized for periods less than one year. Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. |
| dRatios are annualized for periods less than one year. |
| ePortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash ("Cash creations"). |
| fPortfolio turnover rate excluding cash creations was as follows: | 11.53% | 23.57% | 28.79% | 27.64% | 34.77% | 23.83% |
| franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Semi-Annual Report | 47 |
Franklin Templeton ETF Trust
Schedule of Investments, September 30, 2024 (unaudited)
Franklin U.S. Small Cap Multifactor Index ETF
| | | | Shares | | Value |
| | Common Stocks 99.9% | | | | |
| | Communication Services 2.4% | | | | |
| a | AMC Networks, Inc., Class A | | 1,740 | | $ 15,121 |
| a | Cargurus, Inc. | | 4,260 | | 127,928 |
| a | EverQuote, Inc., Class A | | 720 | | 15,185 |
| a | Gambling.com Group Ltd. | | 540 | | 5,411 |
| a | Ibotta, Inc., Class A | | 220 | | 13,554 |
| | IDT Corp., Class B | | 900 | | 34,353 |
| | John Wiley & Sons, Inc., Class A | | 2,400 | | 115,800 |
| a | Liberty Latin America Ltd., Class A | | 2,000 | | 19,160 |
| a | Liberty Latin America Ltd., Class C | | 3,980 | | 37,770 |
| a | Playstudios, Inc. | | 4,720 | | 7,127 |
| | Scholastic Corp. | | 1,460 | | 46,735 |
| | Shutterstock, Inc. | | 1,460 | | 51,640 |
| | Spok Holdings, Inc. | | 1,020 | | 15,361 |
| | TEGNA, Inc. | | 10,980 | | 173,264 |
| | Telephone & Data Systems, Inc. | | 6,260 | | 145,545 |
| a | Yelp, Inc. | | 4,320 | | 151,546 |
| a | ZipRecruiter, Inc., Class A | | 4,340 | | 41,230 |
| | | | | | 1,016,730 |
| | Consumer Discretionary 15.5% | | | | |
| a | 1-800- Flowers.com, Inc., Class A | | 1,400 | | 11,102 |
| a | Abercrombie & Fitch Co., Class A | | 2,320 | | 324,568 |
| | Academy Sports & Outdoors, Inc. | | 4,200 | | 245,112 |
| | Acushnet Holdings Corp. | | 2,180 | | 138,975 |
| a | Adtalem Global Education, Inc. | | 2,060 | | 155,489 |
| | American Eagle Outfitters, Inc. | | 10,220 | | 228,826 |
| a | American Public Education, Inc. | | 440 | | 6,490 |
| | Bloomin’ Brands, Inc. | | 6,480 | | 107,114 |
| | Buckle, Inc. | | 2,180 | | 95,855 |
| | Build-A-Bear Workshop, Inc. | | 860 | | 29,558 |
| | Caleres, Inc. | | 2,220 | | 73,371 |
| | Camping World Holdings, Inc., Class A | | 2,280 | | 55,222 |
| | Cheesecake Factory, Inc. | | 3,700 | | 150,035 |
| a | Chuy’s Holdings, Inc. | | 1,160 | | 43,384 |
| | Cracker Barrel Old Country Store, Inc. | | 1,720 | | 78,002 |
| | Designer Brands, Inc., Class A | | 2,040 | | 15,055 |
| a | Destination XL Group, Inc. | | 3,280 | | 9,643 |
| a | Dorman Products, Inc. | | 740 | | 83,709 |
| | Escalade, Inc. | | 520 | | 7,316 |
| | Ethan Allen Interiors, Inc. | | 1,600 | | 51,024 |
| a | Figs, Inc., Class A | | 8,340 | | 57,046 |
| | Flexsteel Industries, Inc. | | 140 | | 6,201 |
| | Foot Locker, Inc. | | 4,520 | | 116,797 |
| a | Frontdoor, Inc. | | 4,520 | | 216,915 |
| a | Genesco, Inc. | | 680 | | 18,476 |
| a | G-III Apparel Group Ltd. | | 2,320 | | 70,806 |
| | Group 1 Automotive, Inc. | | 780 | | 298,771 |
| | Hamilton Beach Brands Holding Co., Class A | | 260 | | 7,912 |
| | Haverty Furniture Cos., Inc. | | 1,080 | | 29,668 |
| a | Helen of Troy Ltd. | | 1,240 | | 76,694 |
| | Hooker Furnishings Corp. | | 520 | | 9,402 |
| | Installed Building Products, Inc. | | 1,460 | | 359,554 |
| | J Jill, Inc. | | 260 | | 6,414 |
| | Jack in the Box, Inc. | | 960 | | 44,678 |
| a | JAKKS Pacific, Inc. | | 400 | | 10,208 |
| | Johnson Outdoors, Inc., Class A | | 280 | | 10,136 |
| | Kontoor Brands, Inc. | | 4,000 | | 327,120 |
| 48 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin U.S. Small Cap Multifactor Index ETF (continued)
| | | | Shares | | Value |
| | Consumer Discretionary (continued) | | | | |
| | La-Z-Boy, Inc. | | 2,760 | | $ 118,487 |
| | LCI Industries | | 1,320 | | 159,113 |
| | Lifetime Brands, Inc. | | 400 | | 2,616 |
| a | Lincoln Educational Services Corp. | | 1,400 | | 16,716 |
| a | Lovesac Co. | | 780 | | 22,347 |
| a | M/I Homes, Inc. | | 1,240 | | 212,486 |
| | Marine Products Corp. | | 540 | | 5,233 |
| a | MasterCraft Boat Holdings, Inc. | | 960 | | 17,482 |
| a | Mister Car Wash, Inc. | | 2,740 | | 17,837 |
| | Monarch Casino & Resort, Inc. | | 840 | | 66,587 |
| | Monro, Inc. | | 1,720 | | 49,639 |
| | Movado Group, Inc. | | 1,040 | | 19,344 |
| | Nathan’s Famous, Inc. | | 160 | | 12,944 |
| a | ODP Corp. | | 2,200 | | 65,450 |
| a | ONE Group Hospitality, Inc. | | 1,320 | | 4,858 |
| | Oxford Industries, Inc. | | 1,020 | | 88,495 |
| | Papa John’s International, Inc. | | 1,920 | | 103,430 |
| | Patrick Industries, Inc. | | 1,160 | | 165,149 |
| | Perdoceo Education Corp. | | 4,940 | | 109,865 |
| a | Portillo’s, Inc., Class A | | 2,720 | | 36,638 |
| a | Potbelly Corp. | | 1,380 | | 11,509 |
| a | RealReal, Inc. | | 2,680 | | 8,415 |
| a | Revolve Group, Inc. | | 2,540 | | 62,941 |
| | Rocky Brands, Inc. | | 400 | | 12,744 |
| a | Sally Beauty Holdings, Inc. | | 7,740 | | 105,032 |
| a | Savers Value Village, Inc. | | 640 | | 6,733 |
| | Shoe Carnival, Inc. | | 1,020 | | 44,727 |
| | Signet Jewelers Ltd. | | 2,620 | | 270,227 |
| a | Sleep Number Corp. | | 600 | | 10,992 |
| | Smith & Wesson Brands, Inc. | | 2,540 | | 32,969 |
| | Sonic Automotive, Inc., Class A | | 900 | | 52,632 |
| a | Sonos, Inc. | | 6,580 | | 80,868 |
| | Standard Motor Products, Inc. | | 1,360 | | 45,152 |
| | Steven Madden Ltd. | | 4,760 | | 233,192 |
| | Strategic Education, Inc. | | 1,380 | | 127,719 |
| a | Stride, Inc. | | 2,700 | | 230,337 |
| | Sturm Ruger & Co., Inc. | | 980 | | 40,846 |
| | Superior Group of Cos., Inc. | | 420 | | 6,506 |
| a | Target Hospitality Corp. | | 1,580 | | 12,292 |
| a | Tile Shop Holdings, Inc. | | 1,900 | | 12,521 |
| a | Torrid Holdings, Inc. | | 620 | | 2,437 |
| a | Universal Technical Institute, Inc. | | 2,260 | | 36,748 |
| | Upbound Group, Inc. | | 3,480 | | 111,325 |
| a | Vera Bradley, Inc. | | 1,160 | | 6,334 |
| | Weyco Group, Inc. | | 380 | | 12,935 |
| | Wolverine World Wide, Inc. | | 4,300 | | 74,906 |
| a | XPEL, Inc. | | 1,280 | | 55,514 |
| | | | | | 6,579,917 |
| | Consumer Staples 6.7% | | | | |
| | Cal-Maine Foods, Inc. | | 2,460 | | 184,107 |
| a | Central Garden & Pet Co. | | 580 | | 21,153 |
| a | Central Garden & Pet Co., Class A | | 3,140 | | 98,596 |
| | Edgewell Personal Care Co. | | 2,600 | | 94,484 |
| | Energizer Holdings, Inc. | | 3,280 | | 104,173 |
| | Ingles Markets, Inc., Class A | | 900 | | 67,140 |
| | Inter Parfums, Inc. | | 1,280 | | 165,734 |
| | J&J Snack Foods Corp. | | 760 | | 130,811 |
| | John B Sanfilippo & Son, Inc. | | 540 | | 50,927 |
| franklintempleton.com | Semi-Annual Report | 49 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin U.S. Small Cap Multifactor Index ETF (continued)
| | | | Shares | | Value |
| | Consumer Staples (continued) | | | | |
| | Lancaster Colony Corp. | | 1,060 | | $ 187,164 |
| a | Lifeway Foods, Inc. | | 140 | | 3,629 |
| a | Mama’s Creations, Inc. | | 1,060 | | 7,738 |
| a | Medifast, Inc. | | 700 | | 13,398 |
| | National Beverage Corp. | | 1,580 | | 74,165 |
| | Natural Grocers by Vitamin Cottage, Inc., Class C | | 600 | | 17,814 |
| a | Nature’s Sunshine Products, Inc. | | 680 | | 9,262 |
| | Nu Skin Enterprises, Inc., Class A | | 3,500 | | 25,795 |
| | Oil-Dri Corp. of America | | 260 | | 17,937 |
| | PriceSmart, Inc. | | 1,500 | | 137,670 |
| | Primo Water Corp. | | 4,700 | | 118,675 |
| | SpartanNash Co. | | 2,380 | | 53,336 |
| a | Sprouts Farmers Market, Inc. | | 5,100 | | 563,091 |
| | Turning Point Brands, Inc. | | 480 | | 20,712 |
| a | United Natural Foods, Inc. | | 2,940 | | 49,451 |
| | Universal Corp. | | 1,460 | | 77,541 |
| a | USANA Health Sciences, Inc. | | 720 | | 27,302 |
| | Vector Group Ltd. | | 8,760 | | 130,699 |
| | Village Super Market, Inc., Class A | | 680 | | 21,617 |
| a | Vita Coco Co., Inc. | | 1,100 | | 31,141 |
| a | Vital Farms, Inc. | | 960 | | 33,667 |
| | WD-40 Co. | | 900 | | 232,092 |
| | Weis Markets, Inc. | | 1,120 | | 77,202 |
| | | | | | 2,848,223 |
| | Energy 5.0% | | | | |
| | Archrock, Inc. | | 6,360 | | 128,726 |
| | Ardmore Shipping Corp. | | 2,180 | | 39,458 |
| | Atlas Energy Solutions, Inc. | | 1,960 | | 42,728 |
| | California Resources Corp. | | 4,100 | | 215,127 |
| | CONSOL Energy, Inc. | | 2,040 | | 213,486 |
| | Crescent Energy Co., Class A | | 3,840 | | 42,048 |
| | CVR Energy, Inc. | | 1,640 | | 37,769 |
| | DHT Holdings, Inc. | | 4,000 | | 44,120 |
| | Dorian LPG Ltd. | | 980 | | 33,732 |
| a | Drilling Tools International Corp. | | 280 | | 1,044 |
| | Evolution Petroleum Corp. | | 1,720 | | 9,133 |
| | Granite Ridge Resources, Inc. | | 2,300 | | 13,662 |
| a | Gulfport Energy Corp. | | 580 | | 87,783 |
| | International Seaways, Inc. | | 1,980 | | 102,089 |
| | Kodiak Gas Services, Inc. | | 600 | | 17,400 |
| | Magnolia Oil & Gas Corp., Class A | | 9,300 | | 227,106 |
| | Nordic American Tankers Ltd. | | 5,720 | | 20,992 |
| | Northern Oil & Gas, Inc. | | 4,740 | | 167,844 |
| | PBF Energy, Inc., Class A | | 4,660 | | 144,227 |
| | Peabody Energy Corp. | | 6,060 | | 160,832 |
| | Riley Exploration Permian, Inc. | | 540 | | 14,305 |
| | Scorpio Tankers, Inc. | | 2,320 | | 165,416 |
| | SFL Corp. Ltd. | | 6,940 | | 80,296 |
| | Teekay Tankers Ltd., Class A | | 1,060 | | 61,745 |
| | VAALCO Energy, Inc. | | 5,840 | | 33,522 |
| | | | | | 2,104,590 |
| | Financials 11.1% | | | | |
| | 1st Source Corp. | | 1,040 | | 62,275 |
| | Artisan Partners Asset Management, Inc., Class A | | 1,860 | | 80,575 |
| | Associated Banc-Corp. | | 8,100 | | 174,474 |
| | Banco Latinoamericano de Comercio Exterior SA, Class E | | 1,580 | | 51,334 |
| | Bank of Marin Bancorp | | 740 | | 14,867 |
| 50 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin U.S. Small Cap Multifactor Index ETF (continued)
| | | | Shares | | Value |
| | Financials (continued) | | | | |
| | Bank7 Corp. | | 120 | | $ 4,496 |
| | Blackstone Mortgage Trust, Inc., Class A | | 10,380 | | 197,324 |
| | Brookline Bancorp, Inc. | | 5,140 | | 51,863 |
| | Cass Information Systems, Inc. | | 700 | | 29,036 |
| | Central Pacific Financial Corp. | | 800 | | 23,608 |
| | Chemung Financial Corp. | | 180 | | 8,644 |
| | Chicago Atlantic Real Estate Finance, Inc. | | 460 | | 7,135 |
| | Citizens & Northern Corp. | | 460 | | 9,057 |
| | City Holding Co. | | 760 | | 89,217 |
| | Claros Mortgage Trust, Inc. | | 2,380 | | 17,826 |
| | CNO Financial Group, Inc. | | 3,180 | | 111,618 |
| a | Consumer Portfolio Services, Inc. | | 480 | | 4,502 |
| a | CrossFirst Bankshares, Inc. | | 1,360 | | 22,698 |
| | CVB Financial Corp. | | 6,560 | | 116,899 |
| a | Donnelley Financial Solutions, Inc. | | 1,380 | | 90,846 |
| | Eagle Bancorp, Inc. | | 1,540 | | 34,773 |
| | Enact Holdings, Inc. | | 1,900 | | 69,027 |
| a | Enova International, Inc. | | 1,300 | | 108,927 |
| | ESSA Bancorp, Inc. | | 480 | | 9,226 |
| | Essent Group Ltd. | | 6,140 | | 394,741 |
| | Farmers National Banc Corp. | | 1,780 | | 26,914 |
| | First Business Financial Services, Inc. | | 440 | | 20,060 |
| | First Community Bankshares, Inc. | | 480 | | 20,712 |
| | First of Long Island Corp. | | 1,320 | | 16,988 |
| | FirstCash Holdings, Inc. | | 1,700 | | 195,160 |
| | Flushing Financial Corp. | | 1,380 | | 20,120 |
| | GCM Grosvenor, Inc., Class A | | 1,140 | | 12,905 |
| a | Genworth Financial, Inc., Class A | | 23,920 | | 163,852 |
| | German American Bancorp, Inc. | | 1,640 | | 63,550 |
| | Granite Point Mortgage Trust, Inc. | | 1,820 | | 5,769 |
| | Guaranty Bancshares, Inc. | | 480 | | 16,502 |
| a | Hamilton Insurance Group Ltd., Class B | | 520 | | 10,057 |
| | Heritage Commerce Corp. | | 1,900 | | 18,772 |
| | Home Bancorp, Inc. | | 340 | | 15,157 |
| | Home BancShares, Inc. | | 9,120 | | 247,061 |
| | Hope Bancorp, Inc. | | 5,980 | | 75,109 |
| a | International Money Express, Inc. | | 2,380 | | 44,006 |
| | Jackson Financial, Inc., Class A | | 4,260 | | 388,640 |
| | Kearny Financial Corp. | | 1,500 | | 10,305 |
| | KKR Real Estate Finance Trust, Inc. | | 2,900 | | 35,815 |
| | Mercury General Corp. | | 1,440 | | 90,691 |
| | NBT Bancorp, Inc. | | 2,580 | | 114,114 |
| a | NerdWallet, Inc., Class A | | 2,100 | | 26,691 |
| | Nexpoint Real Estate Finance, Inc. | | 400 | | 6,252 |
| a | NMI Holdings, Inc., Class A | | 4,560 | | 187,827 |
| | Northeast Community Bancorp, Inc. | | 640 | | 16,928 |
| | Northfield Bancorp, Inc. | | 2,300 | | 26,680 |
| | Northwest Bancshares, Inc. | | 6,800 | | 90,984 |
| | OceanFirst Financial Corp. | | 3,060 | | 56,885 |
| | Park National Corp. | | 400 | | 67,192 |
| | Parke Bancorp, Inc. | | 600 | | 12,540 |
| | Peoples Bancorp, Inc. | | 1,900 | | 57,171 |
| | Peoples Financial Services Corp. | | 380 | | 17,814 |
| | PJT Partners, Inc., Class A | | 660 | | 88,004 |
| | Preferred Bank | | 640 | | 51,360 |
| | Regional Management Corp. | | 520 | | 17,009 |
| | Selective Insurance Group, Inc. | | 2,860 | | 266,838 |
| | Seven Hills Realty Trust | | 360 | | 4,957 |
| | Southern Missouri Bancorp, Inc. | | 480 | | 27,115 |
| franklintempleton.com | Semi-Annual Report | 51 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin U.S. Small Cap Multifactor Index ETF (continued)
| | | | Shares | | Value |
| | Financials (continued) | | | | |
| | Stock Yards Bancorp, Inc. | | 740 | | $ 45,873 |
| | Tompkins Financial Corp. | | 760 | | 43,920 |
| | TPG RE Finance Trust, Inc. | | 3,720 | | 31,732 |
| | TrustCo Bank Corp. | | 1,020 | | 33,731 |
| | Victory Capital Holdings, Inc., Class A | | 1,780 | | 98,612 |
| a | World Acceptance Corp. | | 240 | | 28,315 |
| | | | | | 4,701,677 |
| | Health Care 8.4% | | | | |
| a | ACADIA Pharmaceuticals, Inc. | | 6,760 | | 103,969 |
| a | Alkermes PLC | | 10,520 | | 294,455 |
| a | AMN Healthcare Services, Inc. | | 2,400 | | 101,736 |
| a | Artivion, Inc. | | 1,200 | | 31,944 |
| a | AtriCure, Inc. | | 2,600 | | 72,904 |
| a | Axogen, Inc. | | 2,120 | | 29,722 |
| a | Biote Corp., Class A | | 1,100 | | 6,138 |
| a | Catalyst Pharmaceuticals, Inc. | | 6,560 | | 130,413 |
| a | ChromaDex Corp. | | 1,500 | | 5,475 |
| a | Collegium Pharmaceutical, Inc. | | 960 | | 37,094 |
| a | Community Health Systems, Inc. | | 6,700 | | 40,669 |
| | CONMED Corp. | | 1,740 | | 125,141 |
| a | Corcept Therapeutics, Inc. | | 5,060 | | 234,177 |
| a | CorVel Corp. | | 500 | | 163,445 |
| a | Cross Country Healthcare, Inc. | | 2,060 | | 27,686 |
| | Embecta Corp. | | 4,000 | | 56,400 |
| a | Fennec Pharmaceuticals, Inc. | | 700 | | 3,500 |
| a | Harmony Biosciences Holdings, Inc. | | 1,480 | | 59,200 |
| a | Harvard Bioscience, Inc. | | 1,860 | | 5,003 |
| a | Hims & Hers Health, Inc. | | 7,660 | | 141,097 |
| a | Inari Medical, Inc. | | 3,060 | | 126,194 |
| a | InfuSystem Holdings, Inc. | | 960 | | 6,432 |
| a | Inmode Ltd. | | 4,420 | | 74,919 |
| a | Innoviva, Inc. | | 3,520 | | 67,971 |
| | iRadimed Corp. | | 520 | | 26,151 |
| a | Ironwood Pharmaceuticals, Inc. | | 7,780 | | 32,054 |
| a | Joint Corp. | | 820 | | 9,381 |
| a | Kiniksa Pharmaceuticals International PLC | | 1,660 | | 41,483 |
| | LeMaitre Vascular, Inc. | | 1,120 | | 104,037 |
| a | Merit Medical Systems, Inc. | | 2,920 | | 288,583 |
| a | MiMedx Group, Inc. | | 6,700 | | 39,597 |
| | National HealthCare Corp. | | 760 | | 95,585 |
| | National Research Corp. | | 1,060 | | 24,232 |
| a | Option Care Health, Inc. | | 4,820 | | 150,866 |
| a | Organogenesis Holdings, Inc. | | 3,920 | | 11,211 |
| | Patterson Cos., Inc. | | 5,640 | | 123,177 |
| a | Pediatrix Medical Group, Inc. | | 5,460 | | 63,281 |
| a | Performant Financial Corp. | | 4,240 | | 15,858 |
| | Phibro Animal Health Corp., Class A | | 1,300 | | 29,276 |
| a | Prestige Consumer Healthcare, Inc. | | 2,980 | | 214,858 |
| a | Puma Biotechnology, Inc. | | 1,220 | | 3,111 |
| a | Quipt Home Medical Corp. | | 1,880 | | 5,490 |
| a | Rigel Pharmaceuticals, Inc. | | 560 | | 9,061 |
| a | Semler Scientific, Inc. | | 280 | | 6,594 |
| | SIGA Technologies, Inc. | | 2,980 | | 20,115 |
| a | Sonida Senior Living, Inc. | | 120 | | 3,209 |
| a | Surmodics, Inc. | | 600 | | 23,268 |
| a | Tactile Systems Technology, Inc. | | 1,380 | | 20,162 |
| a | Treace Medical Concepts, Inc. | | 2,480 | | 14,384 |
| a | UFP Technologies, Inc. | | 370 | | 117,179 |
| 52 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin U.S. Small Cap Multifactor Index ETF (continued)
| | | | Shares | | Value |
| | Health Care (continued) | | | | |
| a | Vanda Pharmaceuticals, Inc. | | 3,340 | | $ 15,665 |
| a | Vericel Corp. | | 1,500 | | 63,375 |
| a | Viemed Healthcare, Inc. | | 1,680 | | 12,314 |
| a | Y-mAbs Therapeutics, Inc. | | 1,040 | | 13,676 |
| a | Zynex, Inc. | | 1,260 | | 10,282 |
| | | | | | 3,553,199 |
| | Industrials 23.6% | | | | |
| | ACCO Brands Corp. | | 5,380 | | 29,429 |
| | Alamo Group, Inc. | | 560 | | 100,873 |
| | Allient, Inc. | | 820 | | 15,572 |
| | Apogee Enterprises, Inc. | | 960 | | 67,214 |
| | Applied Industrial Technologies, Inc. | | 2,080 | | 464,110 |
| | Atkore, Inc. | | 2,020 | | 171,175 |
| | Atmus Filtration Technologies, Inc. | | 2,700 | | 101,331 |
| | Barrett Business Services, Inc. | | 1,540 | | 57,765 |
| | Boise Cascade Co. | | 2,200 | | 310,156 |
| a | Bowman Consulting Group Ltd. | | 540 | | 13,003 |
| a | BrightView Holdings, Inc. | | 1,240 | | 19,518 |
| | Brink’s Co. | | 2,740 | | 316,853 |
| a | Cimpress PLC | | 1,180 | | 96,666 |
| | CompX International, Inc. | | 100 | | 2,921 |
| | Costamare, Inc. | | 2,580 | | 40,558 |
| | Covenant Logistics Group, Inc. | | 600 | | 31,704 |
| | CRA International, Inc. | | 380 | | 66,622 |
| | CSG Systems International, Inc. | | 1,980 | | 96,327 |
| | CSW Industrials, Inc. | | 880 | | 322,423 |
| | Deluxe Corp. | | 2,780 | | 54,182 |
| a | DXP Enterprises, Inc. | | 800 | | 42,688 |
| | Enerpac Tool Group Corp. | | 1,560 | | 65,348 |
| | Ennis, Inc. | | 1,700 | | 41,344 |
| | ESCO Technologies, Inc. | | 1,420 | | 183,152 |
| | Exponent, Inc. | | 3,180 | | 366,590 |
| | Federal Signal Corp. | | 1,680 | | 157,013 |
| a | Forrester Research, Inc. | | 340 | | 6,123 |
| | Forward Air Corp. | | 1,480 | | 52,392 |
| a | Franklin Covey Co. | | 720 | | 29,614 |
| | Franklin Electric Co., Inc. | | 2,800 | | 293,496 |
| a | GEO Group, Inc. | | 6,600 | | 84,810 |
| | Global Industrial Co. | | 1,000 | | 33,970 |
| a | GMS, Inc. | | 2,640 | | 239,105 |
| | Golden Ocean Group Ltd. | | 3,380 | | 45,224 |
| | Gorman-Rupp Co. | | 1,140 | | 44,403 |
| | Griffon Corp. | | 1,120 | | 78,400 |
| | H&E Equipment Services, Inc. | | 1,720 | | 83,730 |
| | Heartland Express, Inc. | | 3,080 | | 37,822 |
| | Heidrick & Struggles International, Inc. | | 1,440 | | 55,958 |
| | Hillenbrand, Inc. | | 3,560 | | 98,968 |
| | HNI Corp. | | 3,060 | | 164,750 |
| a | Huron Consulting Group, Inc. | | 700 | | 76,090 |
| | Hyster-Yale, Inc. | | 480 | | 30,610 |
| a | IBEX Holdings Ltd. | | 480 | | 9,590 |
| | ICF International, Inc. | | 1,140 | | 190,141 |
| a | IES Holdings, Inc. | | 400 | | 79,848 |
| | Insperity, Inc. | | 2,040 | | 179,520 |
| | Interface, Inc. | | 1,620 | | 30,731 |
| | Kadant, Inc. | | 680 | | 229,840 |
| | Karat Packaging, Inc. | | 380 | | 9,838 |
| | Kelly Services, Inc., Class A | | 1,820 | | 38,966 |
| franklintempleton.com | Semi-Annual Report | 53 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin U.S. Small Cap Multifactor Index ETF (continued)
| | | | Shares | | Value |
| | Industrials (continued) | | | | |
| | Kforce, Inc. | | 1,380 | | $ 84,801 |
| | Korn Ferry | | 3,640 | | 273,874 |
| a | L.B. Foster Co., Class A | | 240 | | 4,903 |
| a | Legalzoom.com, Inc. | | 8,380 | | 53,213 |
| a | Liquidity Services, Inc. | | 1,340 | | 30,552 |
| | LSI Industries, Inc. | | 1,400 | | 22,610 |
| | Luxfer Holdings PLC | | 1,420 | | 18,389 |
| | Marten Transport Ltd. | | 3,260 | | 57,702 |
| a | Masterbrand, Inc. | | 5,940 | | 110,128 |
| | Matson, Inc. | | 1,840 | | 262,421 |
| | Matthews International Corp., Class A | | 1,500 | | 34,800 |
| | McGrath RentCorp | | 1,340 | | 141,075 |
| | Miller Industries, Inc. | | 620 | | 37,820 |
| | MillerKnoll, Inc. | | 4,160 | | 103,002 |
| a | Mistras Group, Inc. | | 1,120 | | 12,734 |
| | Moog, Inc., Class A | | 1,460 | | 294,949 |
| | Mueller Industries, Inc. | | 6,300 | | 466,830 |
| | Mueller Water Products, Inc., Class A | | 8,200 | | 177,940 |
| | National Presto Industries, Inc. | | 280 | | 21,039 |
| | NL Industries, Inc. | | 540 | | 4,012 |
| a | NV5 Global, Inc. | | 820 | | 76,654 |
| | Omega Flex, Inc. | | 240 | | 11,981 |
| a | PAM Transportation Services, Inc. | | 380 | | 7,030 |
| | Preformed Line Products Co. | | 140 | | 17,931 |
| | Primoris Services Corp. | | 1,500 | | 87,120 |
| a | Radiant Logistics, Inc. | | 1,980 | | 12,731 |
| a | Resideo Technologies, Inc. | | 4,540 | | 91,436 |
| | Resources Connection, Inc. | | 2,340 | | 22,698 |
| | REV Group, Inc. | | 1,500 | | 42,090 |
| | Rush Enterprises, Inc., Class A | | 3,420 | | 180,679 |
| | Rush Enterprises, Inc., Class B | | 520 | | 24,934 |
| | Safe Bulkers, Inc. | | 3,520 | | 18,234 |
| | Standex International Corp. | | 660 | | 120,635 |
| | Steelcase, Inc., Class A | | 5,500 | | 74,195 |
| | Tennant Co. | | 1,220 | | 117,169 |
| a | Thermon Group Holdings, Inc. | | 1,280 | | 38,195 |
| a | Titan Machinery, Inc. | | 1,220 | | 16,995 |
| | TriNet Group, Inc. | | 1,640 | | 159,031 |
| | UFP Industries, Inc. | | 3,300 | | 432,993 |
| | UniFirst Corp. | | 760 | | 150,974 |
| | Universal Logistics Holdings, Inc. | | 420 | | 18,106 |
| a | Upwork, Inc. | | 3,420 | | 35,739 |
| | Virco Mfg. Corp. | | 340 | | 4,695 |
| | Wabash National Corp. | | 2,140 | | 41,067 |
| | Watts Water Technologies, Inc., Class A | | 1,640 | | 339,791 |
| | Werner Enterprises, Inc. | | 4,440 | | 171,340 |
| | | | | | 9,985,713 |
| | Information Technology 14.3% | | | | |
| | A10 Networks, Inc. | | 5,000 | | 72,200 |
| a | ACI Worldwide, Inc. | | 3,060 | | 155,754 |
| | Adeia, Inc. | | 4,240 | | 50,498 |
| a | Agilysys, Inc. | | 620 | | 67,561 |
| | American Software, Inc., Class A | | 1,740 | | 19,471 |
| a | Aviat Networks, Inc. | | 580 | | 12,545 |
| a | Axcelis Technologies, Inc. | | 1,640 | | 171,954 |
| | Badger Meter, Inc. | | 1,820 | | 397,506 |
| | Belden, Inc. | | 2,040 | | 238,945 |
| | Benchmark Electronics, Inc. | | 1,000 | | 44,320 |
| 54 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin U.S. Small Cap Multifactor Index ETF (continued)
| | | | Shares | | Value |
| | Information Technology (continued) | | | | |
| a | Blackbaud, Inc. | | 2,440 | | $ 206,619 |
| a | Box, Inc., Class A | | 7,960 | | 260,531 |
| a | Calix, Inc. | | 2,980 | | 115,594 |
| | Clear Secure, Inc., Class A | | 2,840 | | 94,118 |
| | Climb Global Solutions, Inc. | | 180 | | 17,917 |
| a | CommVault Systems, Inc. | | 3,100 | | 476,935 |
| b | CompoSecure, Inc., Class A | | 920 | | 12,898 |
| a | Consensus Cloud Solutions, Inc. | | 1,080 | | 25,434 |
| a | Couchbase, Inc. | | 1,120 | | 18,054 |
| a | CPI Card Group, Inc. | | 220 | | 6,123 |
| a | Daily Journal Corp. | | 40 | | 19,604 |
| a | eGain Corp. | | 1,040 | | 5,304 |
| a | Enfusion, Inc., Class A | | 2,420 | | 22,966 |
| a | ePlus, Inc. | | 1,640 | | 161,278 |
| a | Extreme Networks, Inc. | | 7,340 | | 110,320 |
| | Hackett Group, Inc. | | 1,600 | | 42,032 |
| a | Harmonic, Inc. | | 5,580 | | 81,301 |
| | Immersion Corp. | | 1,560 | | 13,915 |
| | Information Services Group, Inc. | | 2,080 | | 6,864 |
| a | Insight Enterprises, Inc. | | 1,600 | | 344,624 |
| | InterDigital, Inc. | | 1,300 | | 184,119 |
| a | Mitek Systems, Inc. | | 1,820 | | 15,779 |
| | Napco Security Technologies, Inc. | | 2,160 | | 87,394 |
| a | NetScout Systems, Inc. | | 3,420 | | 74,385 |
| | NVE Corp. | | 280 | | 22,364 |
| a | OneSpan, Inc. | | 2,300 | | 38,341 |
| a | Ooma, Inc. | | 1,520 | | 17,313 |
| a | OSI Systems, Inc. | | 940 | | 142,720 |
| | PC Connection, Inc. | | 660 | | 49,784 |
| a | Plexus Corp. | | 1,140 | | 155,849 |
| | Progress Software Corp. | | 2,480 | | 167,077 |
| a | PROS Holdings, Inc. | | 2,080 | | 38,522 |
| a | Qualys, Inc. | | 2,380 | | 305,735 |
| a | Rambus, Inc. | | 6,200 | | 261,764 |
| | Richardson Electronics Ltd. | | 640 | | 7,898 |
| a | Rimini Street, Inc. | | 3,580 | | 6,623 |
| | Sapiens International Corp. NV | | 1,600 | | 59,632 |
| a | SEMrush Holdings, Inc., Class A | | 1,080 | | 16,967 |
| a | SPS Commerce, Inc. | | 2,140 | | 415,524 |
| a | Squarespace, Inc., Class A | | 3,440 | | 159,719 |
| a | Varonis Systems, Inc. | | 3,200 | | 180,800 |
| | Vishay Intertechnology, Inc. | | 6,640 | | 125,562 |
| a | Vishay Precision Group, Inc. | | 620 | | 16,058 |
| a | WM Technology, Inc. | | 2,560 | | 2,227 |
| a | Workiva, Inc. | | 2,200 | | 174,064 |
| a | Yext, Inc. | | 5,480 | | 37,922 |
| | | | | | 6,037,327 |
| | Materials 3.9% | | | | |
| | Alpha Metallurgical Resources, Inc. | | 580 | | 136,984 |
| | Arch Resources, Inc. | | 980 | | 135,397 |
| | Caledonia Mining Corp. PLC | | 720 | | 10,771 |
| | Commercial Metals Co. | | 5,980 | | 328,661 |
| a | Core Molding Technologies, Inc. | | 320 | | 5,507 |
| | Greif, Inc., Class A | | 1,500 | | 93,990 |
| | Greif, Inc., Class B | | 320 | | 22,346 |
| | Hawkins, Inc. | | 800 | | 101,976 |
| | Innospec, Inc. | | 1,420 | | 160,588 |
| | Myers Industries, Inc. | | 2,180 | | 30,128 |
| franklintempleton.com | Semi-Annual Report | 55 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin U.S. Small Cap Multifactor Index ETF (continued)
| | | | Shares | | Value |
| | Materials (continued) | | | | |
| | Northern Technologies International Corp. | | 240 | | $ 2,950 |
| | Ramaco Resources, Inc., Class A | | 1,300 | | 15,210 |
| | Ramaco Resources, Inc., Class B | | 320 | | 3,443 |
| | Ryerson Holding Corp. | | 1,460 | | 29,069 |
| | Sensient Technologies Corp. | | 2,380 | | 190,923 |
| | SunCoke Energy, Inc. | | 4,540 | | 39,407 |
| | Sylvamo Corp. | | 1,780 | | 152,813 |
| | Warrior Met Coal, Inc. | | 2,800 | | 178,920 |
| | | | | | 1,639,083 |
| | Real Estate 4.2% | | | | |
| | Alexander’s, Inc. | | 60 | | 14,542 |
| | American Assets Trust, Inc. | | 2,700 | | 72,144 |
| | Brandywine Realty Trust | | 5,100 | | 27,744 |
| | Broadstone Net Lease, Inc. | | 10,200 | | 193,290 |
| | CareTrust REIT, Inc. | | 7,720 | | 238,239 |
| | City Office REIT, Inc. | | 2,060 | | 12,030 |
| | Community Healthcare Trust, Inc. | | 1,500 | | 27,225 |
| | Elme Communities | | 2,420 | | 42,568 |
| | Essential Properties Realty Trust, Inc. | | 4,840 | | 165,286 |
| a | Forestar Group, Inc. | | 900 | | 29,133 |
| | Four Corners Property Trust, Inc. | | 5,300 | | 155,343 |
| | Innovative Industrial Properties, Inc. | | 1,480 | | 199,208 |
| | LTC Properties, Inc. | | 2,260 | | 82,920 |
| | NET Lease Office Properties | | 400 | | 12,248 |
| | One Liberty Properties, Inc. | | 440 | | 12,118 |
| | Orion Office REIT, Inc. | | 3,000 | | 12,000 |
| | Paramount Group, Inc. | | 5,400 | | 26,568 |
| | Peakstone Realty Trust | | 1,140 | | 15,538 |
| | Piedmont Office Realty Trust, Inc., Class A | | 6,940 | | 70,094 |
| a | RE/MAX Holdings, Inc., Class A | | 1,240 | | 15,438 |
| | Retail Opportunity Investments Corp. | | 6,040 | | 95,009 |
| | RMR Group, Inc., Class A | | 940 | | 23,857 |
| | Tanger, Inc. | | 6,540 | | 216,997 |
| | Universal Health Realty Income Trust | | 700 | | 32,025 |
| | | | | | 1,791,564 |
| | Utilities 4.8% | | | | |
| | American States Water Co. | | 2,220 | | 184,904 |
| | Avista Corp. | | 4,240 | | 164,300 |
| | California Water Service Group | | 3,320 | | 180,010 |
| | Global Water Resources, Inc. | | 660 | | 8,309 |
| | MGE Energy, Inc. | | 1,980 | | 181,071 |
| | Northwest Natural Holding Co. | | 2,040 | | 83,273 |
| | Northwestern Energy Group, Inc. | | 3,380 | | 193,404 |
| | Otter Tail Corp. | | 2,100 | | 164,136 |
| | SJW Group | | 1,720 | | 99,949 |
| | Southwest Gas Holdings, Inc. | | 3,800 | | 280,288 |
| | Spire, Inc. | | 2,740 | | 184,375 |
| | TXNM Energy, Inc. | | 5,120 | | 224,102 |
| | Unitil Corp. | | 840 | | 50,887 |
| | York Water Co. | | 880 | | 32,965 |
| | | | | | 2,031,973 |
| | Total Common Stocks (Cost $36,801,996) | | | | 42,289,996 |
| | Total Investments before Short-Term Investments
(Cost $36,801,996) | | | | 42,289,996 |
| 56 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin U.S. Small Cap Multifactor Index ETF (continued)
| | | | Shares | | Value |
| | Short-Term Investments 0.1% | | | | |
| | Investments from Cash Collateral Received for Loaned Securities 0.0%† | | | | |
| | Money Market Funds 0.0%† | | | | |
| c,d | Institutional Fiduciary Trust - Money Market Portfolio, 4.74% | | 9,975 | | 9,975 |
| | Money Market Funds 0.1% | | | | |
| c,d | Institutional Fiduciary Trust - Money Market Portfolio, 4.74% | | 12,794 | | 12,794 |
| | Total Short-Term Investments (Cost $22,769) | | | | 22,769 |
| | Total Investments (Cost $36,824,765) 100.0% | | | | 42,312,765 |
| | Other Assets, less Liabilities 0.0%† | | | | 16,211 |
| | Net Assets 100.0% | | | | $ 42,328,976 |
| †Rounds to less than 0.1% of net assets. |
| aNon-income producing. |
| bA portion or all of the security is on loan at September 30, 2024. See Note 1(d). |
| cThe rate shown is the annualized seven-day effective yield at period end. |
| dSee Note 3(c) regarding investments in affiliated management investment companies. |
See Abbreviations on page 80.
| franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Semi-Annual Report | 57 |
FRANKLIN TEMPLETON ETF TRUST
FINANCIAL STATEMENTS
Statements of Assets and Liabilities
September 30, 2024 (unaudited)
| | Franklin
Emerging Market
Core Dividend
Tilt Index ETF | Franklin
International
Core Dividend
Tilt Index
ETF | Franklin
U.S. Core
Dividend Tilt
Index ETF |
| Assets: | | | |
| Investments in securities: | | | |
| Cost – Unaffiliated issuers | $ 13,234,040 | $ 883,225,536 | $ 30,820,426 |
| Cost – Non-controlled affiliates (Note 3c) | 51 | 3,142,054 | 10,885 |
| Value – Unaffiliated issuers | $ 14,367,166 | $ 993,676,909+ | $ 35,624,338 |
| Value – Non-controlled affiliates (Note 3c) | 51 | 3,142,054 | 10,885 |
| Cash | — | 388 | 317 |
| Foreign currency, at value (cost $36,308 and $2,564,509, respectively) | 36,455 | 2,574,476 | — |
| Receivables: | | | |
| Capital shares sold | — | 9,948,338 | — |
| Dividends and interest | 59,841 | 4,758,893 | 65,858 |
| European Union tax reclaims receivable (Note 1e) | — | 297,703 | — |
| Investment securities sold | — | 354 | — |
| Variation margin on futures contracts | — | — | 263 |
| Deposits with brokers for: | | | |
| Futures contracts | — | 179,790 | 2,920 |
| Other assets | 84 | — | — |
| Total assets | 14,463,597 | 1,014,578,905 | 35,704,581 |
| Liabilities: | | | |
| Payables: | | | |
| Investment securities purchased | 490 | 10,035,573 | 239 |
| European Union tax reclaims contingency fees payable (Note 1e) | — | 74,426 | — |
| Management fees | 2,130 | 71,809 | 1,674 |
| Variation margin on futures contracts | — | 21,693 | — |
| Funds advanced by custodian | 31,882 | — | — |
| Payable upon return of securities loaned | — | 2,892,300 | — |
| Deferred tax | 120,150 | — | — |
| Total liabilities | 154,652 | 13,095,801 | 1,913 |
| Net assets, at value | $ 14,308,945 | $ 1,001,483,104 | $ 35,702,668 |
| Net assets consist of: | | | |
| Paid-in capital | $ 43,917,962 | $ 906,053,084 | $ 23,025,646 |
| Total distributable earnings (loss) | (29,609,017) | 95,430,020 | 12,677,022 |
| Net assets, at value | $ 14,308,945 | $ 1,001,483,104 | $ 35,702,668 |
| Shares outstanding | 500,000 | 30,200,000 | 800,000 |
| Net asset value per share | $28.62 | $33.16 | $44.63 |
| +Includes securities loaned | — | 2,745,853 | — |
| 58 | Semi-Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
FINANCIAL STATEMENTS
Statements of Assets and Liabilities (continued)
September 30, 2024 (unaudited)
| | Franklin
U.S. Large Cap
Multifactor Index
ETF | Franklin
U.S. Mid Cap
Multifactor
Index ETF | Franklin
U.S. Small Cap
Multifactor
Index ETF |
| Assets: | | | |
| Investments in securities: | | | |
| Cost – Unaffiliated issuers | $ 1,041,074,802 | $ 918,307,063 | $ 36,801,996 |
| Cost – Non-controlled affiliates (Note 3c) | 2,544,648 | 1,303,554 | 22,769 |
| Value – Unaffiliated issuers | $ 1,355,198,643 | $ 1,035,516,781+ | $ 42,289,996+ |
| Value – Non-controlled affiliates (Note 3c) | 2,544,648 | 1,303,554 | 22,769 |
| Cash | 15 | 41,281 | 29 |
| Receivables: | | | |
| Capital shares sold | — | 5,561,105 | — |
| Dividends and interest | 829,228 | 1,171,889 | 38,130 |
| Variation margin on futures contracts | — | 736 | — |
| Deposits with brokers for: | | | |
| Futures contracts | 131,400 | 55,200 | — |
| Total assets | 1,358,703,934 | 1,043,650,546 | 42,350,924 |
| Liabilities: | | | |
| Payables: | | | |
| Investment securities purchased | 7,692 | 5,547,029 | 199 |
| Management fees | 163,093 | 239,136 | 11,774 |
| Variation margin on futures contracts | 18,510 | — | — |
| Payable upon return of securities loaned | — | 718,150 | 9,975 |
| Total liabilities | 189,295 | 6,504,315 | 21,948 |
| Net assets, at value | $ 1,358,514,639 | $ 1,037,146,231 | $ 42,328,976 |
| Net assets consist of: | | | |
| Paid-in capital | $ 1,104,259,020 | $ 904,778,374 | $ 37,274,960 |
| Total distributable earnings (loss) | 254,255,619 | 132,367,857 | 5,054,016 |
| Net assets, at value | $ 1,358,514,639 | $ 1,037,146,231 | $ 42,328,976 |
| Shares outstanding | 23,350,000 | 18,650,000 | 1,000,000 |
| Net asset value per share | $58.18 | $55.61 | $42.33 |
| +Includes securities loaned | — | 703,681 | 9,674 |
| franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Semi-Annual Report | 59 |
FRANKLIN TEMPLETON ETF TRUST
FINANCIAL STATEMENTS
Statements of Operations
for the period ended September 30, 2024 (unaudited)
| | Franklin
Emerging Market
Core Dividend
Tilt Index ETF | Franklin
International
Core Dividend
Tilt Index
ETF | Franklin
U.S. Core
Dividend Tilt
Index ETF | Franklin
U.S. Large Cap
Multifactor Index
ETF |
| Investment income: | | | | |
| Dividends: (net of foreign taxes)a | | | | |
| Unaffiliated issuers | $ 377,320 | $ 20,043,516 | $ 519,079 | $ 8,820,706 |
| Non-Controlled affiliates (Note 3c) | 152 | 23,669 | 1,585 | 45,864 |
| Interest: | | | | |
| Unaffiliated issuers | — | 8,537 | 174 | 7,040 |
| Interest from securities loaned (Note 1d): | | | | |
| Unaffiliated issuers (net of fees and rebates) | — | 77 | 857 | — |
| Non-Controlled affiliates (Note 3c) | — | 1,952 | 45 | — |
| Total investment income | 377,472 | 20,077,751 | 521,740 | 8,873,610 |
| Expenses: | | | | |
| Management fees (Note 3a) | 12,733 | 391,355 | 15,148 | 969,079 |
| Total expenses | 12,733 | 391,355 | 15,148 | 969,079 |
| Expenses waived/paid by affiliates (Note 3c) | (9) | (2,568) | (17) | (1,154) |
| Net expenses | 12,724 | 388,787 | 15,131 | 967,925 |
| Net investment income | 364,748 | 19,688,964 | 506,609 | 7,905,685 |
| Realized and unrealized gains (losses): | | | | |
| Net realized gain (loss) from: | | | | |
| Investments: | | | | |
| Unaffiliated issuers | 221,557 | (4,406,210) | (46,008) | (7,348,009) |
| In-kind redemptions | — | 983,210 | 8,535,763 | 65,640,363 |
| Foreign currency transactions | (3,224) | 41,852 | — | — |
| Futures contracts | (502) | (101,716) | (1,145) | (52,543) |
| Net realized gain (loss) | 217,831 | (3,482,864) | 8,488,610 | 58,239,811 |
| Net change in unrealized appreciation (depreciation) on: | | | | |
| Investments: | | | | |
| Unaffiliated issuers | 1,476,095 | 45,705,495 | (4,653,667) | 56,865,354 |
| Translation of other assets and liabilities denominated in foreign currencies | 884 | 128,616 | 2,150 | — |
| Futures contracts | (153) | 64,058 | (3,230) | (13,240) |
| Change in deferred taxes on unrealized appreciation | (60,222) | — | — | — |
| Net change in unrealized appreciation (depreciation) | 1,416,604 | 45,898,169 | (4,654,747) | 56,852,114 |
| Net realized and unrealized gain (loss) | 1,634,435 | 42,415,305 | 3,833,863 | 115,091,925 |
| Net increase (decrease) in net assets resulting from operations | $1,999,183 | $62,104,269 | $4,340,472 | $122,997,610 |
| aForeign taxes withheld on dividends | $45,917 | $2,037,419 | $212 | $— |
| 60 | Semi-Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
FINANCIAL STATEMENTS
Statements of Operations (continued)
for the period ended September 30, 2024 (unaudited)
| | Franklin
U.S. Mid Cap
Multifactor
Index ETF | Franklin
U.S. Small Cap
Multifactor
Index ETF |
| Investment income: | | |
| Dividends: (net of foreign taxes)a | | |
| Unaffiliated issuers | $ 7,027,536 | $ 357,362 |
| Non-Controlled affiliates (Note 3c) | 35,959 | 835 |
| Interest: | | |
| Unaffiliated issuers | 1,936 | 41 |
| Interest from securities loaned (Note 1d): | | |
| Unaffiliated issuers (net of fees and rebates) | 51,441 | — |
| Non-Controlled affiliates (Note 3c) | 35,253 | 936 |
| Total investment income | 7,152,125 | 359,174 |
| Expenses: | | |
| Management fees (Note 3a) | 1,131,232 | 67,148 |
| Total expenses | 1,131,232 | 67,148 |
| Expenses waived/paid by affiliates (Note 3c) | (3,846) | (293) |
| Net expenses | 1,127,386 | 66,855 |
| Net investment income | 6,024,739 | 292,319 |
| Realized and unrealized gains (losses): | | |
| Net realized gain (loss) from: | | |
| Investments: | | |
| Unaffiliated issuers | (4,907,892) | (561,860) |
| In-kind redemptions | 24,552,367 | 2,568,428 |
| Futures contracts | 72,278 | 3,335 |
| Net realized gain (loss) | 19,716,753 | 2,009,903 |
| Net change in unrealized appreciation (depreciation) on: | | |
| Investments: | | |
| Unaffiliated issuers | 25,597,143 | (38,216) |
| Futures contracts | (20,488) | (529) |
| Net change in unrealized appreciation (depreciation) | 25,576,655 | (38,745) |
| Net realized and unrealized gain (loss) | 45,293,408 | 1,971,158 |
| Net increase (decrease) in net assets resulting from operations | $51,318,147 | $2,263,477 |
| aForeign taxes withheld on dividends | $— | $250 |
| franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Semi-Annual Report | 61 |
FRANKLIN TEMPLETON ETF TRUST
FINANCIAL STATEMENTS
Statements of Changes in Net Assets
| | Franklin Emerging Market Core
Dividend Tilt Index ETF | Franklin International Core
Dividend Tilt Index ETF |
| | Six Months Ended
September 30, 2024
(unaudited) | Year Ended
March 31, 2024
| Six Months Ended
September 30, 2024
(unaudited) | Year Ended
March 31, 2024
|
| Increase (decrease) in net assets: | | | | |
| Operations: | | | | |
| Net investment income | $ 364,748 | $ 537,365 | $ 19,688,964 | $ 17,469,267 |
| Net realized gain (loss) | 217,831 | 58,734 | (3,482,864) | 10,627,738 |
| Net change in unrealized appreciation (depreciation) | 1,416,604 | 868,674 | 45,898,169 | 52,179,554 |
| Net increase (decrease) in net assets resulting from operations | 1,999,183 | 1,464,773 | 62,104,269 | 80,276,559 |
| Distributions to shareholders (Note 1f) | (528,450) | (565,964) | (28,447,957) | (14,817,600) |
| Capital share transactions: (Note 2) | — | — | 201,627,995 | 460,280,490 |
| Net increase (decrease) in net assets | 1,470,733 | 898,809 | 235,284,307 | 525,739,449 |
| Net assets: | | | | |
| Beginning of period | 12,838,212 | 11,939,403 | 766,198,797 | 240,459,348 |
| End of period | $ 14,308,945 | $ 12,838,212 | $ 1,001,483,104 | $ 766,198,797 |
| 62 | Semi-Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
FINANCIAL STATEMENTS
Statements of Changes in Net Assets (continued)
| | Franklin U.S. Core Dividend
Tilt Index ETF | Franklin U.S. Large Cap
Multifactor Index ETF |
| | Six Months Ended
September 30, 2024
(unaudited) | Year Ended
March 31, 2024
| Six Months Ended
September 30, 2024
(unaudited) | Year Ended
March 31, 2024
|
| Increase (decrease) in net assets: | | | | |
| Operations: | | | | |
| Net investment income | $ 506,609 | $ 894,859 | $ 7,905,685 | $ 15,098,675 |
| Net realized gain (loss) | 8,488,610 | 2,592,043 | 58,239,811 | 61,945,894 |
| Net change in unrealized appreciation (depreciation) | (4,654,747) | 10,127,794 | 56,852,114 | 220,672,653 |
| Net increase (decrease) in net assets resulting from operations | 4,340,472 | 13,614,696 | 122,997,610 | 297,717,222 |
| Distributions to shareholders (Note 1f) | (565,595) | (868,418) | (7,649,725) | (15,243,065) |
| Capital share transactions: (Note 2) | (30,605,976) | 25,568,686 | (40,647,833) | 140,921,518 |
| Net increase (decrease) in net assets | (26,831,099) | 38,314,964 | 74,700,052 | 423,395,675 |
| Net assets: | | | | |
| Beginning of period | 62,533,767 | 24,218,803 | 1,283,814,587 | 860,418,912 |
| End of period | $ 35,702,668 | $ 62,533,767 | $ 1,358,514,639 | $ 1,283,814,587 |
| franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Semi-Annual Report | 63 |
FRANKLIN TEMPLETON ETF TRUST
FINANCIAL STATEMENTS
Statements of Changes in Net Assets (continued)
| | Franklin U.S. Mid Cap
Multifactor Index ETF | Franklin U.S. Small Cap
Multifactor Index ETF |
| | Six Months Ended
September 30, 2024
(unaudited) | Year Ended
March 31, 2024
| Six Months Ended
September 30, 2024
(unaudited) | Year Ended
March 31, 2024
|
| Increase (decrease) in net assets: | | | | |
| Operations: | | | | |
| Net investment income | $ 6,024,739 | $ 5,467,567 | $ 292,319 | $ 422,300 |
| Net realized gain (loss) | 19,716,753 | 3,092,963 | 2,009,903 | 745,970 |
| Net change in unrealized appreciation (depreciation) | 25,576,655 | 85,031,301 | (38,745) | 4,787,481 |
| Net increase (decrease) in net assets resulting from operations | 51,318,147 | 93,591,831 | 2,263,477 | 5,955,751 |
| Distributions to shareholders (Note 1f) | (5,931,675) | (4,562,908) | (308,515) | (392,866) |
| Capital share transactions: (Note 2) | 379,772,105 | 356,211,158 | 3,864,458 | 13,899,110 |
| Net increase (decrease) in net assets | 425,158,577 | 445,240,081 | 5,819,420 | 19,461,995 |
| Net assets: | | | | |
| Beginning of period | 611,987,654 | 166,747,573 | 36,509,556 | 17,047,561 |
| End of period | $ 1,037,146,231 | $ 611,987,654 | $ 42,328,976 | $ 36,509,556 |
| 64 | Semi-Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
Notes to Financial Statements (unaudited)
1. Organization and Significant Accounting Policies
Franklin Templeton ETF Trust (Trust) is registered under the Investment Company Act of 1940 (1940 Act) as an open-end management investment company consisting of forty-nine separate funds, six of which are included in this report (Funds). The Funds follow the accounting and reporting guidance in Financial Accounting Standards Board ("FASB") Accounting Standard Codification Topic 946, Financial Services - Investment Companies ("ASC 946") and applies the specialized accounting and reporting guidance in U.S. Generally Accepted Accounting Principles (U.S. GAAP), including, but not limited to, ASC 946. The Funds are exchange traded funds (ETF) and seek to provide the investment results that closely correspond, before fees and expenses, to the performance of Fund’s corresponding underlying index.
The following summarizes the Funds’ significant accounting policies.
a. Financial Instrument Valuation
The Funds’ investments in financial instruments are carried at fair value daily. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. The Funds calculate the net asset value (NAV) per share each business day as of 4 p.m. Eastern time or the regularly scheduled close of the New York Stock Exchange (NYSE), whichever is earlier. Under compliance policies and procedures approved by the Funds’ Board of Trustees (the Board), the Board has designated the Fund’s investment manager as the valuation designee and has responsibility for oversight of valuation. The investment manager is assisted by the Fund’s administrator in performing this responsibility, including leading the cross-functional Valuation Committee (VC).
The Funds may utilize independent pricing services, quotations from securities and financial instrument dealers, and other market sources to determine fair value.
Equity securities, exchange trade funds and derivative financial instruments listed on an exchange or on the NASDAQ National Market System are valued at the last quoted sale price or the official closing price of the day, respectively. Foreign equity securities are valued as of the close of trading on the foreign stock exchange on which the security is primarily traded or as of 4 p.m. Eastern time. The value is then converted into its U.S. dollar equivalent at the foreign exchange rate in effect at 4 p.m. London time on the
day that the value of the security is determined. Over-the-counter (OTC) securities are valued within the range of the most recent quoted bid and ask prices. Securities that trade in multiple markets or on multiple exchanges are valued according to the broadest and most representative market. Certain equity securities are valued based upon fundamental characteristics or relationships to similar securities.
Investments in open-end mutual funds are valued at the closing NAV.
The Funds have procedures to determine the fair value of financial instruments for which market prices are not reliable or readily available. Under these procedures, the Funds primarily employ a market-based approach which may use related or comparable assets or liabilities, recent transactions, market multiples, As per standards minutes and other relevant information for the investment to determine the fair value of the investment. An income-based valuation approach may also be used in which the anticipated future cash flows of the investment are discounted to calculate fair value. Discounts may also be applied due to the nature or duration of any restrictions on the disposition of the investments. Due to the inherent uncertainty of valuations of such investments, the fair values may differ significantly from the values that would have been used had an active market existed.
Trading in securities on foreign securities stock exchanges and OTC markets may be completed before 4 p.m. Eastern time. In addition, trading in certain foreign markets may not take place on every Funds’ business day. Occasionally, events occur between the time at which trading in a foreign security is completed and 4 p.m. Eastern time that might call into question the reliability of the value of a portfolio security held by the Fund. As a result, differences may arise between the value of the Funds’ portfolio securities as determined at the foreign market close and the latest indications of value at 4 p.m. Eastern time. In order to minimize the potential for these differences, an independent pricing service may be used to adjust the Fund’s portfolio securities to the latest indications of fair value at 4 p.m. Eastern time on September 30, 2024. At September 30, 2024, certain securities may have been fair valued using these procedures, in which case the securities were categorized as Level 2 inputs within the fair value hierarchy (referred to as “market level fair value”).
When the last day of the reporting period is a non-business day, certain foreign markets may be open on those days that the Funds’ NAV is not calculated, which could result in
| franklintempleton.com | Semi-Annual Report | 65 |
FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. Organization and Significant Accounting Policies (continued)
a. Financial Instrument Valuation (continued)
differences between the value of the Funds’ portfolio securities on the last business day and the last calendar day of the reporting period. Any significant security valuation changes due to an open foreign market are adjusted and reflected by the Funds for financial reporting purposes.
b. Foreign Currency Translation
Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars based on the exchange rate of such currencies against U.S. dollars on the date of valuation. The Funds may enter into foreign currency exchange contracts to facilitate transactions denominated in a foreign currency. Purchases and sales of securities, income and expense items denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date. Portfolio securities and assets and liabilities denominated in foreign currencies contain risks that those currencies will decline in value relative to the U.S. dollar. Occasionally, events may impact the availability or reliability of foreign exchange rates used to convert the U.S. dollar equivalent value. If such an event occurs, the foreign exchange rate will be valued at fair value using procedures established and approved by the Board.
The Funds do not separately report the effect of changes in foreign exchange rates from changes in market prices on securities held. Such changes are included in net realized and unrealized gain or loss from investments in the Statements of Operations.
Realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions and the difference between the recorded amounts of dividends, interest, and foreign withholding taxes and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in foreign exchange rates on foreign denominated assets and liabilities other than investments in securities held at the end of the reporting period.
c. Derivative Financial Instruments
Certain or all Funds invested in derivative financial instruments in order to manage risk or gain exposure to various other investments or markets. Derivatives are
financial contracts based on an underlying or notional amount, require no initial investment or an initial net investment that is smaller than would normally be required to have a similar response to changes in market factors, and require or permit net settlement. Derivatives contain various risks including the potential inability of the counterparty to fulfill their obligations under the terms of the contract, the potential for an illiquid secondary market, and/or the potential for market movements which expose the Fund to gains or losses in excess of the amounts shown in the Statements of Assets and Liabilities. Realized gain and loss and unrealized appreciation and depreciation on these contracts for the period are included in the Statements of Operations.
Derivative counterparty credit risk is managed through a formal evaluation of the creditworthiness of all potential counterparties. The Funds attempt to reduce their exposure to counterparty credit risk on OTC derivatives, whenever possible, by entering into International Swaps and Derivatives Association (ISDA) master agreements with certain counterparties. These agreements contain various provisions, including but not limited to collateral requirements, events of default, or early termination. Termination events applicable to the counterparty include certain deteriorations in the credit quality of the counterparty.
Termination events applicable to the Funds include failure of the Funds to maintain certain net asset levels and/or limit the decline in net assets over various periods of time. In the event of default or early termination, the ISDA master agreement gives the non-defaulting party the right to net and close-out all transactions traded, whether or not arising under the ISDA agreement, to one net amount payable by one counterparty to the other. However, absent an event of default or early termination, OTC derivative assets and liabilities are presented gross and not offset in the Statements of Assets and Liabilities. Early termination by the counterparty may result in an immediate payment by the Funds of any net liability owed to that counterparty under the ISDA agreement.
Collateral requirements differ by type of derivative. Collateral terms are contract specific for OTC derivatives. For OTC derivatives traded under an ISDA master agreement, posting of collateral is required by either the Fund or the applicable counterparty if the total net exposure of all OTC derivatives with the applicable counterparty exceeds the minimum transfer amount, which typically ranges from $100,000 to $250,000, and can vary depending on the counterparty and the type of agreement. Generally, collateral is determined at
| 66 | Semi-Annual Report | franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. Organization and Significant Accounting Policies (continued)
c. Derivative Financial Instruments (continued)
the close of Fund business each day and any additional collateral required due to changes in derivative values may be delivered by the Fund or the counterparty the next business day, or within a few business days. Collateral pledged and/or received by the Fund, if any, is held in segregated accounts with the Fund’s custodian/counterparty broker and can be in the form of cash and/or securities. Unrestricted cash may be invested according to the Funds’ investment objectives. To the extent that the amounts due to the Fund from its counterparties are not subject to collateralization or are not fully collateralized, the Fund bears the risk of loss from counterparty non-performance.
Certain or all Funds entered into exchange traded futures contracts primarily to manage and/or gain exposure to equity price risk. A futures contract is an agreement between the Fund and a counterparty to buy or sell an asset at a specified price on a future date. Required initial margins are pledged by the Fund, and the daily change in fair value is accounted for as a variation margin payable or receivable in the Statements of Assets and Liabilities.
See Note 7 regarding other derivative information.
d. Securities Lending
Certain or all Funds participate in an agency based securities lending program to earn additional income. The Fund receives cash collateral against the loaned securities in an amount equal to at least 102% of the fair value of the loaned securities. Collateral is maintained over the life of the loan in an amount not less than 100% of the fair value of loaned securities, as determined at the close of Fund business each day; any additional collateral required due to changes in security values is delivered to the Fund on the next business day. The collateral is deposited into a joint cash account with other funds and is used to invest in a money market fund managed by Franklin Advisers, Inc., an affiliate of the Funds. These securities received as collateral are held in segregated accounts with the Funds’ custodian. The Fund cannot repledge or resell these securities received as collateral. As such, the non-cash collateral is excluded from the Statements of Assets and Liabilities. The Fund may receive income from the investment of cash collateral, in addition to lending fees and rebates paid by the borrower. Income from securities loaned, net of fees paid to the securities lending agent and/or third-party vendor, is reported separately in the Statements of Operations. The Fund bears
the market risk with respect to the collateral investment, securities loaned, and the risk that the agent may default on its obligations to the Fund. If the borrower defaults on its obligation to return the securities loaned, the Fund has the right to repurchase the securities in the open market using the collateral received. The securities lending agent has agreed to indemnify the Fund in the event of default by a third party borrower.
e. Income and Deferred Taxes
It is the Fund’s policy to qualify as a regulated investment company under the Internal Revenue Code. The Fund intends to distribute to shareholders substantially all of its taxable income and net realized gains to relieve it from federal income and excise taxes. As a result, no provision for U.S. federal income taxes is required.
The Funds may be subject to foreign taxation related to income received, capital gains on the sale of securities and certain foreign currency transactions in the foreign jurisdictions in which the Funds invest. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Funds invest. When a capital gain tax is determined to apply, certain or all Funds record an estimated deferred tax liability in an amount that would be payable if the securities were disposed of on the valuation date.
Each Fund may recognize an income tax liability related to its uncertain tax positions under U.S. GAAP when the uncertain tax position has a less than 50% probability that it will be sustained upon examination by the tax authorities based on its technical merits. As of September 30, 2024, each Fund has determined that no tax liability is required in its financial statements related to uncertain tax positions for any open tax years (or expected to be taken in future tax years). Open tax years are those that remain subject to examination and are based on the statute of limitations in each jurisdiction in which the Fund invests.
As a result of several court cases, in certain countries across the European Union the Fund filed additional tax reclaims for previously withheld taxes on dividends earned in those countries (EU reclaims). Income recognized, if any, for EU reclaims is reflected as European Union tax reclaims in the Statements of Operations and any related receivable is reflected as European Union tax reclaims receivable in the Statements of Assets and Liabilities. Any fees associated with these filings are reflected as Professional fees in the statement of operations. When uncertainty exists as to the ultimate resolution of these proceedings, the likelihood of
| franklintempleton.com | Semi-Annual Report | 67 |
FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. Organization and Significant Accounting Policies (continued)
e. Income and Deferred Taxes (continued)
receipt of these EU reclaims, and the potential timing of payment, no amounts are reflected in the financial statements. For U.S. income tax purposes, EU reclaims received by the Fund, if any, reduce the amount of foreign taxes Fund shareholders can use as tax deductions or credits on their income tax returns.
f. Security Transactions, Investment Income, Expenses and Distributions
Security transactions are accounted for on trade date. Realized gains and losses on security transactions are determined on a specific identification basis. Interest Income (including interest income from payment-in-kind securities, if any) and estimated expenses are accrued daily. Dividend income is recorded on the ex-dividend date except for certain dividends from securities where the dividend rate is not available. In such cases, the dividend is recorded as soon as the information is received by the Funds. Distributions from realized capital gains and other distributions, if any, are recorded on the ex-dividend date. Distributable earnings are determined according to income tax regulations (tax basis) and may differ from earnings recorded in accordance with U.S. GAAP. These differences may be permanent or temporary. Permanent differences are reclassified among capital accounts to reflect their tax character. These reclassifications have no impact on net assets or the results of operations. Temporary differences are not reclassified, as they may reverse in subsequent periods.
Common expenses incurred by the Trust are allocated among the Funds based on the ratio of net assets of each Fund to the combined net assets of the Trust. Certain Fund specific expenses are allocated directly to the Fund that incurred the expense. These expenses are paid by the Fund or by the investment manager, as applicable, according to the terms of the unified management fee agreement.
g. Accounting Estimates
The preparation of financial statement in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
h. Guarantees and Indemnifications
Under the Trust’s organizational documents, its officers and trustees are indemnified by the Trust against certain liabilities arising out of the performance of their duties to the Trust. Additionally, in the normal course of business, the Trust, on behalf of the Funds, enters into contracts with service providers that contain general indemnification clauses. The Trust’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Trust that have not yet occurred. Currently, the Trust expects the risk of loss to be remote.
2. Shares of Beneficial Interest
Shares of the Funds are issued and redeemed at their respective NAV only in aggregations of a specific number of shares or multiples thereof (Creation Units). Only certain large institutional investors (Authorized Participants) may engage in creation or redemption transactions directly with the Funds. Once created, shares of the Funds generally trade in the secondary market in amounts less than one Creation Unit. The market price of the Funds’ shares will be based on the price in the secondary market which may be at, above or below the most recent NAV. Creation Units may be issued and redeemed in exchange for a designated portfolio of securities and/or cash (which may include cash in lieu of certain securities).
Authorized Participants pay a standard transaction fee to the shareholder servicing agent when purchasing or redeeming Creation Units of the Funds regardless of the number of Creation Units that are being created or redeemed on the same day by the Authorized Participant. The standard transaction fee is imposed to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units and is not charged to or paid by the Funds.
In addition, for cash Creation Unit transactions, a variable fee for creation transactions and redemption transactions may be charged to the Authorized Participant to cover certain brokerage, tax, foreign exchange, execution, market impact and other costs and expenses related to the execution of trades. Variable fees, if any, are included in capital share transactions in the Statements of Changes in Net Assets.
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FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
2. Shares of Beneficial Interest (continued)
At September 30, 2024, there were an unlimited number of shares authorized (without par value). Transactions in the Funds’ shares were as follows:
| | Franklin International Core Dividend Tilt Index ETF |
| | Six Months Ended
September 30, 2024 | Year Ended
March 31, 2024 |
| | Shares | Amount | Shares | Amount |
| Shares sold | 6,400,000 | $ 204,889,582 | 17,500,000 | $ 521,070,020 |
| Shares redeemed | (100,000) | (3,261,587) | (2,000,000) | (60,789,530) |
| Net increase (decrease) | 6,300,000 | $ 201,627,995 | 15,500,000 | $ 460,280,490 |
| | Franklin U.S. Core Dividend Tilt Index ETF |
| | Six Months Ended
September 30, 2024 | Year Ended
March 31, 2024 |
| | Shares | Amount | Shares | Amount |
| Shares sold | 150,000 | $ 6,445,113 | 1,150,000 | $ 38,219,857 |
| Shares redeemed | (900,000) | (37,051,089) | (350,000) | (12,651,171) |
| Net increase (decrease) | (750,000) | $ (30,605,976) | 800,000 | $ 25,568,686 |
| | Franklin U.S. Large Cap Multifactor Index ETF |
| | Six Months Ended
September 30, 2024 | Year Ended
March 31, 2024 |
| | Shares | Amount | Shares | Amount |
| Shares sold | 3,250,000 | $ 181,531,186 | 7,450,000 | $ 342,804,051 |
| Shares redeemed | (4,000,000) | (222,179,019) | (4,150,000) | (201,882,533) |
| Net increase (decrease) | (750,000) | $ (40,647,833) | 3,300,000 | $ 140,921,518 |
| | Franklin U.S. Mid Cap Multifactor Index ETF |
| | Six Months Ended
September 30, 2024 | Year Ended
March 31, 2024 |
| | Shares | Amount | Shares | Amount |
| Shares sold | 9,350,000 | $ 489,729,549 | 8,700,000 | $ 403,696,701 |
| Shares redeemed | (2,150,000) | (109,957,444) | (1,100,000) | (47,485,543) |
| Net increase (decrease) | 7,200,000 | $ 379,772,105 | 7,600,000 | $ 356,211,158 |
| | Franklin U.S. Small Cap Multifactor Index ETF |
| | Six Months Ended
September 30, 2024 | Year Ended
March 31, 2024 |
| | Shares | Amount | Shares | Amount |
| Shares sold | 300,000 | $ 11,671,845 | 500,000 | $ 17,435,236 |
| Shares redeemed | (200,000) | (7,807,387) | (100,000) | (3,536,126) |
| Net increase (decrease) | 100,000 | $ 3,864,458 | 400,000 | $ 13,899,110 |
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FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
3. Transactions with Affiliates
Franklin Resources, Inc. is the holding company for various subsidiaries that together are referred to as Franklin Templeton. Certain officers and trustees of the Funds are also officers and/or directors of the following subsidiaries:
| Subsidiary | Affiliation |
| Franklin Advisers, Inc. (Advisers) | Investment manager |
| Franklin Templeton Institutional, LLC (FT Institutional) | Investment manager |
| Franklin Advisory Services, LLC (FASL) | Investment manager |
| Franklin Templeton Services, LLC (FT Services) | Administrative manager |
| Franklin Distributors, LLC (Distributors) | Principal underwriter |
a. Management fees
The Funds pay a unified management fee to FASL whereby FASL has agreed to reimburse the Funds’ acquired fund fees and expenses (if any) and pay all of the ordinary operating expenses of the Funds, including custody, transfer agency, and Trustee fees and expenses, among others, but excluding payments under the Funds’ Rule 12b-1 plan (if any), brokerage expenses (including any costs incidental to transactions in portfolio securities or instruments), taxes, interest (including borrowing costs and dividend expenses on securities sold short and overdraft charges), litigation expenses (including litigation to which the Trust or a Fund may be a party and indemnification of the Trustees and officers with respect thereto), and other non-routine or extraordinary expenses. The fee is calculated daily and paid monthly according to the terms of the management agreement. The gross effective investment management fees are based on the average daily net assets of each of the Funds as follows:
| | Gross Effective Investment
Management Fee Rate |
| Franklin Emerging Market Core Dividend Tilt Index ETF | 0.19% |
| Franklin International Core Dividend Tilt Index ETF | 0.09% |
| Franklin U.S. Core Dividend Tilt Index ETF | 0.06% |
| Franklin U.S. Large Cap Multifactor Index ETF | 0.15% |
| Franklin U.S. Mid Cap Multifactor Index ETF | 0.30% |
| Franklin U.S. Small Cap Multifactor Index ETF | 0.35% |
Under a subadvisory agreement, FT Institutional provides subadvisory services to the Funds. The subadvisory fee is paid by FASL based on the Fund’s average daily net assets, and is not an additional expense of the Funds.
b. Administrative Fees
Under an agreement with FASL, FT Services provides administrative services to the Fund. The fee is paid by FASL based on the Fund’s average daily net assets, and is not an additional expense of the Fund.
c. Investments in Affiliated Management Investment Companies
Certain or all Funds invests in one or more affiliated management investment companies. As defined in the 1940 Act, an investment is deemed to be a “Controlled Affiliate” of a fund when a fund owns, either directly or indirectly, 25% or more of the affiliated fund’s outstanding shares or has the power to exercise control over management or policies of such fund. The Fund does not invest for purposes of exercising a controlling influence over the management or policies. Management fees paid by the Fund are waived on assets invested in the affiliated management investment companies, as noted in the Statements of Operations, in an amount not to exceed the management and administrative fees paid directly or indirectly by each affiliate.
During the period ended September 30, 2024, investments in affiliated management investment companies were as follows:
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FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
3. Transactions with Affiliates (continued)
c. Investments in Affiliated Management Investment Companies (continued)
| | Value at
Beginning
of Period | Purchases | Sales | Realized
Gain (Loss) | Net Change in
Unrealized
Appreciation
(Depreciation) | Value at
End of
Period | Number
of Shares
Held at
End of
Period | Investment
Income |
Franklin Emerging Market Core
Dividend Tilt Index ETF
Non-Controlled Affiliates | | | | | | | | Dividend
Income |
| Institutional Fiduciary Trust - Money Market Portfolio, 4.74% | $— | $444,044 | $(443,993) | $— | $— | $51 | 51 | $152 |
| | | | | | | | | Income
from
Securities
loaned |
| Institutional Fiduciary Trust - Money Market Portfolio, 4.74% | $— | $2,934,530 | $(2,934,530) | $— | $— | $— | — | $— |
| Total Affiliated Securities | $— | $3,378,574 | $(3,378,523) | $— | $— | $51 | 51 | $152 |
Franklin International Core
Dividend Tilt Index ETF
Non-Controlled Affiliates | | | | | | | | Dividend
Income |
| Institutional Fiduciary Trust - Money Market Portfolio, 4.74% | $— | $46,807,759 | $(46,558,005) | $— | $— | $249,754 | 249,754 | $23,669 |
| | | | | | | | | Income
from
Securities
loaned |
| Institutional Fiduciary Trust - Money Market Portfolio, 4.74% | $4,095,900 | $9,542,790 | $(10,746,390) | $— | $— | $2,892,300 | 2,892,300 | $1,952 |
| Total Affiliated Securities | $4,095,900 | $56,350,549 | $(57,304,395) | $— | $— | $3,142,054 | 3,142,054 | $25,621 |
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FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
3. Transactions with Affiliates (continued)
c. Investments in Affiliated Management Investment Companies (continued)
| | Value at
Beginning
of Period | Purchases | Sales | Realized
Gain (Loss) | Net Change in
Unrealized
Appreciation
(Depreciation) | Value at
End of
Period | Number
of Shares
Held at
End of
Period | Investment
Income |
Franklin U.S. Core Dividend
Tilt Index ETF
Non-Controlled Affiliates | | | | | | | | Dividend
Income |
| Institutional Fiduciary Trust - Money Market Portfolio, 4.74% | $164,064 | $866,836 | $(1,020,015) | $— | $— | $10,885 | 10,885 | $1,585 |
| | | | | | | | | Income
from
Securities
loaned |
| Institutional Fiduciary Trust - Money Market Portfolio, 4.74% | $— | $34,650 | $(34,650) | $— | $— | $— | — | $45 |
| Total Affiliated Securities | $164,064 | $901,486 | $(1,054,665) | $— | $— | $10,885 | 10,885 | $1,630 |
Franklin U.S. Large Cap
Multifactor Index ETF
Non-Controlled Affiliates | | | | | | | | Dividend
Income |
| Institutional Fiduciary Trust - Money Market Portfolio, 4.74% | $2,867,178 | $17,297,056 | $(17,619,586) | $— | $— | $2,544,648 | 2,544,648 | $45,864 |
| | | | | | | | | Income
from
Securities
loaned |
| Institutional Fiduciary Trust - Money Market Portfolio, 4.74% | $— | $2,143,300 | $(2,143,300) | $— | $— | $— | — | $— |
| Total Affiliated Securities | $2,867,178 | $19,440,356 | $(19,762,886) | $— | $— | $2,544,648 | 2,544,648 | $45,864 |
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FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
3. Transactions with Affiliates (continued)
c. Investments in Affiliated Management Investment Companies (continued)
| | Value at
Beginning
of Period | Purchases | Sales | Realized
Gain (Loss) | Net Change in
Unrealized
Appreciation
(Depreciation) | Value at
End of
Period | Number
of Shares
Held at
End of
Period | Investment
Income |
Franklin U.S. Mid Cap
Multifactor Index ETF
Non-Controlled Affiliates | | | | | | | | Dividend
Income |
| Institutional Fiduciary Trust - Money Market Portfolio, 4.74% | $1,346,815 | $10,737,879 | $(11,499,290) | $— | $— | $585,404 | 585,404 | $35,959 |
| | | | | | | | | Income
from
Securities
loaned |
| Institutional Fiduciary Trust - Money Market Portfolio, 4.74% | $717,750 | $122,456,863 | $(122,456,463) | $— | $— | $718,150 | 718,150 | $35,253 |
| Total Affiliated Securities | $2,064,565 | $133,194,742 | $(133,955,753) | $— | $— | $1,303,554 | 1,303,554 | $71,212 |
Franklin U.S. Small Cap
Multifactor Index ETF
Non-Controlled Affiliates | | | | | | | | Dividend
Income |
| Institutional Fiduciary Trust - Money Market Portfolio, 4.74% | $78,668 | $851,178 | $(917,052) | $— | $— | $12,794 | 12,794 | $835 |
| | | | | | | | | Income
from
Securities
loaned |
| Institutional Fiduciary Trust - Money Market Portfolio, 4.74% | $167,840 | $2,055,419 | $(2,213,284) | $— | $— | $9,975 | 9,975 | $936 |
| Total Affiliated Securities | $246,508 | $2,906,597 | $(3,130,336) | $— | $— | $22,769 | 22,769 | $1,771 |
d. Other Affiliated Transactions
At September 30, 2024, the shares of Franklin U.S. Large Cap Multifactor Index ETF were owned by the following entities:
| Funds | Shares | Percentage of
Outstanding Sharesa |
| Franklin U.S. Large Cap Multifactor Index ETF | | |
| Franklin Moderate Allocation Fund | 1,533,042 | 6.6% |
| Franklin Growth Allocation Fund | 1,655,576 | 7.1% |
| Franklin 529 Portfolios | 3,880,540 | 16.6% |
| | 7,069,158 | 30.3% |
| aInvestment activities of significant shareholders could have a material impact on the Funds. |
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FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
4. Income Taxes
For tax purposes, capital losses may be carried over to offset future capital gains, if any. At March 31, 2024, the capital loss carryforwards were as follows:
| | Franklin Emerging
Market Core Dividend
Tilt Index ETF | Franklin
International
Core Dividend Tilt
Index ETF | Franklin U.S.
Core Dividend Tilt
Index ETF | Franklin U.S. Large
Cap Multifactor
Index ETF |
| Capital loss carryforwards not subject to expiration: | | | | |
| Long term | $ 13,368,850 | $ 1,037,469 | $ 224,799 | $ 11,107,124 |
| Short term | 17,333,237 | 6,344,798 | 435,335 | 106,455,341 |
| Total capital loss carryforwards | $ 30,702,087 | $ 7,382,267 | $ 660,134 | $ 117,562,465 |
| | Franklin U.S. Mid
Cap Multifactor
Index ETF | Franklin U.S.
Small Cap Multifactor
Index ETF | | |
| Capital loss carryforwards not subject to expiration: | | | | |
| Long term | $ 3,024,306 | $ 1,498,526 | | |
| Short term | 2,689,447 | 958,094 | | |
| Total capital loss carryforwards | $ 5,713,753 | $ 2,456,620 | | |
At September 30, 2024, the cost of investments and net unrealized appreciation (depreciation) for income tax purposes were as follows:
| | Franklin Emerging
Market Core Dividend
Tilt Index ETF | Franklin
International
Core Dividend Tilt
Index ETF | Franklin U.S.
Core Dividend Tilt
Index ETF | Franklin U.S. Large
Cap Multifactor
Index ETF |
| Cost of investments | $ 13,417,828 | $ 894,446,225 | $ 30,847,082 | $ 1,045,506,485 |
| Unrealized appreciation | $ 3,083,291 | $ 127,200,477 | $ 5,597,402 | $ 317,233,994 |
| Unrealized depreciation | (2,133,902) | (24,827,739) | (809,261) | (4,997,188) |
| Net unrealized appreciation (depreciation) | $ 949,389 | $ 102,372,738 | $ 4,788,141 | $ 312,236,806 |
| | Franklin U.S. Mid
Cap Multifactor
Index ETF | Franklin U.S.
Small Cap Multifactor
Index ETF | | |
| Cost of investments | $ 919,803,461 | $ 36,870,164 | | |
| Unrealized appreciation | $ 133,702,450 | $ 7,842,399 | | |
| Unrealized depreciation | (16,685,576) | (2,399,798) | | |
| Net unrealized appreciation (depreciation) | $ 117,016,874 | $ 5,442,601 | | |
Differences between income and/or capital gains as determined on a book basis and a tax basis are primarily due to differing treatments of passive foreign investment company shares, EU reclaims, wash sales, and in-kind shareholder redemptions.
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FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
5. Investment Transactions
Purchases and sales of investments (excluding short term securities and in-kind transactions, if any) for the period ended September 30, 2024, were as follows:
| | Franklin Emerging
Market Core Dividend
Tilt Index ETF | Franklin
International
Core Dividend Tilt
Index ETF | Franklin U.S.
Core Dividend Tilt
Index ETF | Franklin U.S. Large
Cap Multifactor
Index ETF |
| Purchases | $ 3,860,924 | $ 128,422,748 | $ 3,918,193 | $ 356,278,275 |
| Sales | $ 4,024,725 | $ 129,380,487 | $ 3,918,938 | $ 355,371,041 |
| | Franklin U.S. Mid
Cap Multifactor
Index ETF | Franklin U.S.
Small Cap Multifactor
Index ETF | | |
| Purchases | $ 94,325,043 | $ 4,483,456 | | |
| Sales | $ 92,701,713 | $ 4,588,349 | | |
In-kind transactions associated with creation and redemptions for the period ended September 30, 2024, were as follows:
| | Franklin Emerging
Market Core Dividend
Tilt Index ETF | Franklin
International
Core Dividend Tilt
Index ETF | Franklin U.S.
Core Dividend Tilt
Index ETF | Franklin U.S. Large
Cap Multifactor
Index ETF |
| Cost of Securities Received | $ — | $ 196,136,202 | $ 6,397,088 | $ 177,848,661 |
| Value of Securities Delivereda | $ — | $ 3,101,855 | $ 36,844,751 | $ 218,733,087 |
| | Franklin U.S. Mid
Cap Multifactor
Index ETF | Franklin U.S.
Small Cap Multifactor
Index ETF | | |
| Cost of Securities Received | $ 487,398,048 | $ 11,657,357 | | |
| Value of Securities Delivereda | $ 109,331,727 | $ 7,727,368 | | |
| aRealized gains and losses from in-kind redemptions, as shown on the Statement of Operations, are not recognized by the Funds for tax purposes. |
At September 30, 2024, in connection with securities lending transactions, certain or all Funds loaned investments and received cash collateral as follows:
| | Franklin
International
Core Dividend Tilt
Index ETF | Franklin U.S. Mid
Cap Multifactor
Index ETF | Franklin U.S.
Small Cap Multifactor
Index ETF |
| Securities lending transactionsa: | | | |
| Equity Investmentsb | $2,892,300 | $718,150 | $9,975 |
| aThe agreements can be terminated at any time. |
| bThe gross amount of recognized liability for such transactions is included in payable upon return of securities loaned in the Statements of Assets and Liabilities. |
6. Concentration of Risk
Investing in foreign securities may include certain risks and considerations not typically associated with investing in U.S. securities, such as fluctuating currency values and changing local, regional and global economic, political and social conditions, which may result in greater market volatility. Political and financial uncertainty in many foreign regions may increase market volatility and the economic risk of investing in foreign securities. In addition, certain foreign securities may not be as liquid as U.S. securities.
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FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
6. Concentration of Risk (continued)
Russia’s military invasion of Ukraine in February 2022, the resulting responses by the United States and other countries, and the potential for wider conflict could increase volatility and uncertainty in the financial markets and adversely affect regional and global economies. The United States and other countries have imposed broad-ranging economic sanctions on Russia and certain Russian individuals, banking entities and corporations as a response to its invasion of Ukraine. The United States and other countries have also imposed economic sanctions on Belarus and may impose sanctions on other countries that support Russia’s military invasion. These sanctions, as well as any other economic consequences related to the invasion, such as additional sanctions, boycotts or changes in consumer or purchaser preferences or cyberattacks on governments, companies or individuals, may further decrease the value and liquidity of certain Russian securities and securities of issuers in other countries that are subject to economic sanctions related to the invasion. To the extent that the Funds have exposure to Russian investments or investments in countries affected by the invasion, the Funds’ ability to price, buy, sell, receive or deliver such investments was impaired. The Funds could determine at any time that certain of the most affected securities have little or no value. In addition, any exposure that the Funds may have to counterparties in Russia or in countries affected by the invasion could negatively impact the Funds’ portfolio. The extent and duration of Russia’s military actions and the repercussions of such actions (including any retaliatory actions or countermeasures that may be taken by those subject to sanctions) are impossible to predict, but could result in significant market disruptions, including in the oil and natural gas markets, and may negatively affect global supply chains, inflation and global growth. These and any related events could significantly impact each Fund’s performance and the value of an investment in the Funds, even beyond any direct exposure the Funds may have to Russian issuers or issuers in other countries affected by the invasion. The Valuation Committee determined that based on their analysis of the market and access to market participants, the Russian financial instruments held by the Franklin Emerging Market Core Dividend Tilt Index ETF and Franklin U.S. Core Dividend Tilt Index ETF had no value at September 30, 2024.
Certain investments in Chinese companies are made through a special structure known as a variable interest entity (VIE). In a VIE structure, foreign investors, such as Franklin Emerging Market Core Dividend Tilt Index ETF will only own stock in a shell company rather than directly in the VIE, which must be owned by Chinese nationals (and/or Chinese companies) to obtain the licenses and/or assets required to operate in a restricted or prohibited sector in China. The value of the shell company is derived from its ability to consolidate the VIE into its financials pursuant to contractual arrangements that allow the shell company to exert a degree of control over, and obtain economic benefits arising from, the VIE without formal legal ownership. While VIEs are a longstanding industry practice and are well known by Chinese officials and regulators, the structure historically has not been formally recognized under Chinese law and it is uncertain whether Chinese officials or regulators will withdraw their implicit acceptance of the structure. It is also uncertain whether the contractual arrangements, which may be subject to conflicts of interest between the legal owners of the VIE and foreign investors, would be enforced by Chinese courts or arbitration bodies. Prohibitions of these structures by the Chinese government, or the inability to enforce such contracts, from which the shell company derives its value, would likely cause the VIE-structured holding(s) to suffer significant, detrimental, and possibly permanent losses, and in turn, adversely affect the Funds’ returns and net asset value.
7. Other Derivative Information
At September 30, 2024, the Funds’ investments in derivative contracts are reflected in the Statements of Asset and Liabilities as follows:
| | Asset Derivatives | | Liability Derivatives |
| | Statements of Assets and
Liabilities Location | Fair Value | | Statements of Assets and
Liabilities Location | Fair Value |
| Franklin International Core Dividend Tilt Index ETF | | | | | |
| Equity contracts | Variation margin on futures contracts | $ 99,757a | | Variation margin on futures contracts | $ — |
| Totals | | $99,757 | | | $— |
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FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
7. Other Derivative Information (continued)
| | Asset Derivatives | | Liability Derivatives |
| | Statements of Assets and
Liabilities Location | Fair Value | | Statements of Assets and
Liabilities Location | Fair Value |
| Franklin U.S. Core Dividend Tilt Index ETF | | | | | |
| Equity contracts | Variation margin on futures contracts | $ 1,146a | | Variation margin on futures contracts | $ — |
| Totals | | $1,146 | | | $— |
| Franklin U.S. Large Cap Multifactor Index ETF | | | | | |
| Equity contracts | Variation margin on futures contracts | $ 42,846a | | Variation margin on futures contracts | $ — |
| Totals | | $42,846 | | | $— |
| Franklin U.S. Mid Cap Multifactor Index ETF | | | | | |
| Equity contracts | Variation margin on futures contracts | $ 18,204a | | Variation margin on futures contracts | $ — |
| Totals | | $18,204 | | | $— |
| aThis amount reflects the cumulative appreciation (depreciation) of future contracts as reported in the Schedule of Investments. Only the variation margin receivable/payable at period end is separately reported within the Statements of Assets and Liabilities. Prior variation margin movements were recorded to cash upon receipt or payment. |
For the period ended September 30, 2024, the effect of derivative contracts in the Funds’ Statements of Operations was as follows:
Derivative Contracts
Not Accounted for as
Hedging Instruments | Statements of
Operations Locations | Net Realized
Gain (Loss)
for the Period | Statements of
Operations Locations | Net Change in
Unrealized
Appreciation
(Depreciation)
for the Period |
| Franklin Emerging Market Core Dividend Tilt Index ETF | | | | |
| | Net realized gain (loss) from: | | Net change in unrealized
appreciation (depreciation) on: | |
| Equity contracts | Futures contracts | $ (502) | Futures contracts | $ (153) |
| Franklin International Core Dividend Tilt Index ETF | | | | |
| | Net realized gain (loss) from: | | Net change in unrealized
appreciation (depreciation) on: | |
| Equity contracts | Futures contracts | $ (101,716) | Futures contracts | $ 64,058 |
| Franklin U.S. Core Dividend Tilt Index ETF | | | | |
| | Net realized gain (loss) from: | | Net change in unrealized
appreciation (depreciation) on: | |
| Equity contracts | Futures contracts | $ (1,145) | Futures contracts | $ (3,230) |
| Franklin U.S. Large Cap Multifactor Index ETF | | | | |
| | Net realized gain (loss) from: | | Net change in unrealized
appreciation (depreciation) on: | |
| Equity contracts | Futures contracts | $ (52,543) | Futures contracts | $ (13,240) |
| Franklin U.S. Mid Cap Multifactor Index ETF | | | | |
| | Net realized gain (loss) from: | | Net change in unrealized
appreciation (depreciation) on: | |
| Equity contracts | Futures contracts | $ 72,278 | Futures contracts | $ (20,488) |
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FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
7. Other Derivative Information (continued)
Derivative Contracts
Not Accounted for as
Hedging Instruments | Statements of
Operations Locations | Net Realized
Gain (Loss)
for the Period | Statements of
Operations Locations | Net Change in
Unrealized
Appreciation
(Depreciation)
for the Period |
| Franklin U.S. Small Cap Multifactor Index ETF | | | | |
| | Net realized gain (loss) from: | | Net change in unrealized
appreciation (depreciation) on: | |
| Equity contracts | Futures contracts | $ 3,335 | Futures contracts | $ (529) |
For the period ended September 30, 2024, the average month end notional amount of futures contracts were as follows:
| | Franklin Emerging
Market Core Dividend
Tilt Index ETF | Franklin
International
Core Dividend Tilt
Index ETF | Franklin U.S.
Core Dividend Tilt
Index ETF | Franklin U.S. Large
Cap Multifactor
Index ETF |
| Futures contracts | $ 45,919 | $ 4,943,839 | $ 111,668 | $ 1,595,405 |
| | Franklin U.S. Mid
Cap Multifactor
Index ETF | Franklin U.S.
Small Cap Multifactor
Index ETF | | |
| Futures contracts | $ 998,963 | $ 8,868 | | |
See Note 1(c) regarding derivative financial instruments.
8. Fair Value Measurements
The Funds follow a fair value hierarchy that distinguishes between market data obtained from independent sources (observable inputs) and the Funds’ own market assumptions (unobservable inputs). These inputs are used in determining the value of the Funds’ financial instruments and are summarized in the following fair value hierarchy:
| • | Level 1 – quoted prices in active markets for identical financial instruments |
| • | Level 2 – other significant observable inputs (including quoted prices for similar financial instruments, interest rates, prepayment speed, credit risk, etc.) |
| • | Level 3 – significant unobservable inputs (including the Funds’ own assumptions in determining the fair value of financial instruments) |
The input levels are not necessarily an indication of the risk or liquidity associated with financial instruments at that level.
A summary of inputs used as of September 30, 2024, in valuing the Funds’ assets and liabilities carried at fair value, is as follows:
| | Level 1 | Level 2 | Level 3 | Total |
| Franklin Emerging Market Core Dividend Tilt Index ETF | | | | |
| Assets: | | | | |
| Investments in Securities:a | | | | |
| Equity Investmentsb | $ 14,356,794 | $ — | $ 10,372c | $ 14,367,166 |
| Short-Term Investments | 51 | — | — | 51 |
| Total Investments in Securities | $14,356,845 | $— | $10,372 | $14,367,217 |
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FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
8. Fair Value Measurements (continued)
| | Level 1 | Level 2 | Level 3 | Total |
| Franklin International Core Dividend Tilt Index ETF | | | | |
| Assets: | | | | |
| Investments in Securities:a | | | | |
| Equity Investmentsb | $ 993,676,909 | $ — | $ — | $ 993,676,909 |
| Short-Term Investments | 3,142,054 | — | — | 3,142,054 |
| Total Investments in Securities | $996,818,963 | $— | $— | $996,818,963 |
| Other Financial Instruments: | | | | |
| Futures Contracts | $ 99,757 | $ — | $ — | $ 99,757 |
| Franklin U.S. Core Dividend Tilt Index ETF | | | | |
| Assets: | | | | |
| Investments in Securities:a | | | | |
| Equity Investmentsb | $ 35,624,338 | $ — | $ —c | $ 35,624,338 |
| Short-Term Investments | 10,885 | — | — | 10,885 |
| Total Investments in Securities | $35,635,223 | $— | $— | $35,635,223 |
| Other Financial Instruments: | | | | |
| Futures Contracts | $ 1,146 | $ — | $ — | $ 1,146 |
| Franklin U.S. Large Cap Multifactor Index ETF | | | | |
| Assets: | | | | |
| Investments in Securities:a | | | | |
| Equity Investmentsb | $ 1,355,198,643 | $ — | $ — | $ 1,355,198,643 |
| Short-Term Investments | 2,544,648 | — | — | 2,544,648 |
| Total Investments in Securities | $1,357,743,291 | $— | $— | $1,357,743,291 |
| Other Financial Instruments: | | | | |
| Futures Contracts | $ 42,846 | $ — | $ — | $ 42,846 |
| Franklin U.S. Mid Cap Multifactor Index ETF | | | | |
| Assets: | | | | |
| Investments in Securities:a | | | | |
| Equity Investmentsb | $ 1,035,516,781 | $ — | $ — | $ 1,035,516,781 |
| Short-Term Investments | 1,303,554 | — | — | 1,303,554 |
| Total Investments in Securities | $1,036,820,335 | $— | $— | $1,036,820,335 |
| Other Financial Instruments: | | | | |
| Futures Contracts | $ 18,204 | $ — | $ — | $ 18,204 |
| Franklin U.S. Small Cap Multifactor Index ETF | | | | |
| Assets: | | | | |
| Investments in Securities:a | | | | |
| Equity Investmentsb | $ 42,289,996 | $ — | $ — | $ 42,289,996 |
| Short-Term Investments | 22,769 | — | — | 22,769 |
| Total Investments in Securities | $42,312,765 | $— | $— | $42,312,765 |
| aFor detailed categories, see the accompanying Schedules of Investments. |
| bIncludes common and preferred stocks, warrants, as well as other equity investments. |
| cIncludes financial instruments determined to have no value. |
9. Subsequent Events
The Funds have evaluated subsequent events through the issuance of these Financial Statements and determined that no events have occurred that require disclosure.
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FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
Abbreviations
| Selected Portfolio |
| GDR | Global Depositary Receipt |
| NVDR | Non-Voting Depositary Receipt |
| REIT | Real Estate Investment Trust |
| SPA | Standby Purchase Agreement |
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FRANKLIN TEMPLETON ETF TRUST
| Changes In and Disagreements With Accountants | For the period covered in the report |
Not Applicable
| Results of Meeting of Shareholders | For the period covered in the report |
Not Applicable
| Remuneration Paid to Directors, Officers, and Others | For the period covered in the report |
Not applicable. Remuneration paid to directors, officers and others is included as part of the all-inclusive management fee and not paid directly by the fund.
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FRANKLIN TEMPLETON ETF TRUST
| Board Approval of Management and Subadvisory Agreements | For the period covered in the report |
FRANKLIN TEMPLETON ETF TRUST
Franklin Emerging Market Core Dividend Tilt Index ETF
Franklin International Core Dividend Tilt Index ETF
Franklin U.S. Core Dividend Tilt Index ETF
Franklin U.S. Large Cap Multifactor Index ETF
Franklin U.S. Mid Cap Multifactor Index ETF
Franklin U.S. Small Cap Multifactor Index ETF
(each a Fund)
At an in-person meeting held on May 29, 2024 (Meeting), the Board of Trustees (Board) of Franklin Templeton ETF Trust (Trust), including a majority of the trustees who are not “interested persons” as defined in the Investment Company Act of 1940 (Independent Trustees), reviewed and approved the continuance of the investment management agreement between Franklin Advisory Services, LLC (Manager) and the Trust, on behalf of each Fund (each a Management Agreement) for an additional one-year period. The Independent Trustees received advice from and met separately with Independent Trustee counsel in considering whether to approve the continuation of each Management Agreement. Although the Management Agreements for the Funds were considered at the same Board meeting, the Board considered the information provided to it about the Funds together and with respect to each Fund separately as the Board deemed appropriate. The Board also considered that it had previously approved a new investment sub-advisory agreement between the Manager and Franklin Templeton Institutional, LLC, on behalf of each Fund, that was effective September 11, 2023, for an initial two-year term.
In considering the continuation of each Management Agreement, the Board reviewed and considered information provided by the Manager at the Meeting and throughout the year at meetings of the Board and its committees. The Board also reviewed and considered information provided in response to a detailed set of requests for information submitted to the Manager by Independent Trustee counsel on behalf of the Independent Trustees in connection with the annual contract renewal process. In addition, prior to the Meeting, the Independent Trustees held a virtual contract renewal meeting at which the Independent Trustees first conferred amongst themselves and Independent Trustee counsel about contract renewal matters, and then met with management to request additional information that the Independent Trustees reviewed and considered prior to and at the Meeting. The Board reviewed and considered all of the factors it deemed relevant in approving the continuance of each Management Agreement, including, but not limited to: (i) the nature, extent and quality of the services provided by the Manager; (ii) the investment performance of each Fund, as well as each Fund’s tracking error against a specified benchmark index as of a recent period; (iii) the costs of the services provided and profits realized by the Manager and its affiliates from the relationship with each Fund; (iv) the extent to which economies of scale are realized as each Fund grows; and (v) whether fee levels reflect these economies of scale for the benefit of Fund investors.
In approving the continuance of each Management Agreement, the Board, including a majority of the Independent Trustees, determined, through the exercise of its business judgment, that the terms of each Management Agreement are fair and reasonable and that the continuance of the Management Agreement is in the best interests of the applicable Fund and its shareholders. While attention was given to all information furnished, the following discusses some primary factors relevant to the Board’s determination.
Nature, Extent and Quality of Services
The Board reviewed and considered information regarding the nature, extent and quality of investment management services provided by the Manager and its affiliates to the Funds and their shareholders. This information included, among other things, the qualifications, background and experience of the senior management and investment personnel of the Manager, as well as information on succession planning where appropriate; the structure of investment personnel compensation; oversight of third-party service providers; investment performance reports and related financial information for each Fund; reports on expenses and shareholder services; legal and compliance matters; risk controls; pricing and other services provided by the Manager and its affiliates; and management fees charged by the Manager and its affiliates to US funds and other accounts, including management’s explanation of differences among accounts where relevant. The Board acknowledged the ongoing integration of the Putnam family of funds into the Franklin Templeton (FT) family of funds and management’s continued development of strategies to address areas of heightened concern in the registered fund industry, including various regulatory initiatives and continuing geopolitical concerns.
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FRANKLIN TEMPLETON ETF TRUST
| Board Approval of Management and Subadvisory Agreements | For the period covered in the report (continued) |
The Board also reviewed and considered the benefits provided to Fund shareholders of investing in a fund that is part of the FT family of funds. The Board noted the financial position of Franklin Resources, Inc. (FRI), the Manager’s parent, and its commitment to the registered fund business as evidenced by its continued introduction of new funds, reassessment of the fund offerings in response to FT acquisitions and the market environment, as well as project initiatives and capital investments relating to the services provided to the Funds by the FT organization. The Board specifically noted FT’s commitment to technological innovation and advancement, including its initiative to create a new enterprise-wide artificial intelligence platform.
Following consideration of such information, the Board was satisfied with the nature, extent and quality of services provided by the Manager and its affiliates to the Funds and their shareholders.
Fund Performance
The Board reviewed and considered the performance results of each Fund for various time periods ended December 31, 2023. The Board considered the performance returns for each Fund in comparison to the performance returns of registered funds deemed comparable to the Fund included in a universe (Performance Universe) selected by Broadridge Financial Solutions, Inc. (Broadridge), an independent provider of investment company data. The Board received a description of the methodology used by Broadridge to select the registered funds included in a Performance Universe. The Board also reviewed and considered Fund performance reports provided and discussions that occurred with portfolio managers at Board meetings throughout the year. The Board referenced earlier discussions with management on matters related to, among other things, the expansion and rationalization of the overall product line, including investments in novel asset classes, as well as the growth in assets from internal and external clients. In addition, the Board acknowledged information provided regarding management’s strategy to grow market share through the use of innovative data and technology and investments in marketing and distribution. The Board noted management’s high level of client engagement and the strength of its internal audit and compliance program. A summary of each Fund’s performance results is below.
Franklin Emerging Market Core Dividend Tilt Index ETF and Franklin U.S. Small Cap Multifactor Index ETF - The Performance Universe for the Franklin Emerging Market Core Dividend Tilt Index ETF included the Fund and all retail and institutional emerging markets funds and exchange-traded funds. The Performance Universe for the Franklin U.S. Small Cap Multifactor Index ETF included the Fund and all retail and institutional small-cap core funds and exchange-traded funds. The Franklin Emerging Market Core Dividend Tilt Index ETF commenced operations on June 1, 2016 and the Franklin U.S. Small Cap Multifactor Index ETF commenced operations on April 26, 2017, and thus have been in operation for less than 10 years. The Board noted that each Fund’s annualized total return for the one- and three-year periods was above the median of its respective Performance Universe, but for the five-year period was below the median of its respective Performance Universe. The Board also noted that, although below the median, each Fund’s annualized total return for the for the five-year period was positive. The Board further noted that, in light of each Fund’s use of a “passive” or indexing investment approach, management evaluates each Fund based on their tracking error against a specified benchmark. The Board also noted that for the one-year period ended December 31, 2023, the Franklin Emerging Market Core Dividend Tilt Index ETF’s tracking error was within the tolerance anticipated for the Fund, but that the tracking error for the Franklin U.S. Small Cap Multifactor Index ETF was 6.9 basis points outside the tolerance anticipated for this Fund. Management further explained that, for the Franklin U.S. Small Cap Multifactor Index ETF, the Fund’s tracking error was outside the tolerance anticipated due, in part, to fees. The Board considered the repositioning of the Franklin Emerging Market Core Dividend Tilt Index ETF as a dividend tilt/yield enhanced index-based ETF which, effective August 1, 2022, changed its name, ticker symbol, underlying index, investment universe, investment goal and investment strategies. The Board concluded that each Fund’s performance was satisfactory.
Franklin International Core Dividend Tilt Index ETF - The Performance Universe for the Fund included the Fund and all retail and institutional international large-cap core funds and exchange-traded funds. The Fund commenced operations on June 1, 2016, and thus has been in operation for less than 10 years. The Board noted that the Fund’s annualized total return for the one-, three- and five-year periods was above the median of its Performance Universe. The Board further noted that, in light of the Fund’s use of a “passive” or indexing investment approach, management evaluates the Fund based on its tracking error against a specified benchmark. The Board also noted that for the one-year period ended December 31, 2023, the Fund’s tracking error was within the tolerance anticipated for the Fund. The Board considered the repositioning of the Fund as a
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| Board Approval of Management and Subadvisory Agreements | For the period covered in the report (continued) |
dividend tilt/yield enhanced index-based ETF which, effective August 1, 2022, changed its name, ticker symbol, underlying index, investment universe, investment goal and investment strategies. The Board concluded that the Fund’s performance was satisfactory.
Franklin U.S. Core Dividend Tilt Index ETF - The Performance Universe for the Fund included the Fund and all retail and institutional equity income funds and exchange-traded funds. The Fund commenced operations on June 1, 2016, and thus has been in operation for less than 10 years. The Board noted that the Fund’s annualized total return for the one-year period was above the median and in the first quintile (best) of its Performance Universe, but for the three- and five-year periods was below the median of its Performance Universe. The Board also noted that, although below the median, the Fund’s annualized total return for the three- and five-year periods was 8.30% and 10.78%, respectively. The Board further noted that, in light of the Fund’s use of a “passive” or indexing investment approach, management evaluates the Fund based on its tracking error against a specified benchmark. The Board also noted that for the one-year period ended December 31, 2023, the Fund’s tracking error was within the tolerance anticipated for the Fund. The Board considered the repositioning of the Fund as a dividend tilt/yield enhanced index-based ETF which, effective August 1, 2022, changed its name, ticker symbol, underlying index, investment universe, investment goal and investment strategies (Fund Repositioning). The Board concluded that the Fund’s performance was satisfactory.
Franklin U.S. Large Cap Multifactor Index ETF - The Performance Universe for the Fund included the Fund and all retail and institutional large-cap core funds and exchange-traded funds. The Fund commenced operations on April 26, 2017, and thus has been in operation for less than 10 years. The Board noted that the Fund’s annualized total return for the three-year period was above the median of its Performance Universe, but for the one- and five-year periods was below the median of its Performance Universe. The Board also noted that the Fund’s annualized total return for the one- and five-year periods, although below the median, was 23.46% and 13.68%, respectively. The Board discussed the performance of the Fund with management and management explained that the Fund’s relative underperformance in comparison to its Performance Universe was due, in part, to the Fund’s relative underweight in growth securities and its focus on quality and/or value securities which underperformed during the one-year period due to the growth-driven market. The Board noted management’s representations regarding the actions that management was taking/had taken in an effort to improve overall performance of the Fund, including enhancements to its index construction process. The Board further noted that, in light of the Fund’s use of a “passive” or indexing investment approach, management evaluates the Fund based on its tracking error against a specified benchmark. The Board noted that for the one-year period ended December 31, 2023, the Fund’s tracking error was within the tolerance anticipated for the Fund. The Board concluded that the Fund’s Management Agreement should be continued for an additional one-year period, while management’s efforts continue to be closely monitored.
Franklin U.S. Mid Cap Multifactor Index ETF - The Performance Universe for the Fund included the Fund and all retail and institutional mid-cap growth funds and exchange-traded funds. The Fund commenced operations on April 26, 2017, and thus has been in operation for less than 10 years. The Board noted that the Fund’s annualized total return for the three- and five-year periods was above the median of its Performance Universe, but for the one-year period was below the median of its Performance Universe. The Board also noted that the Fund’s annualized total return for the one-year period, although below the median, was 17.46%. The Board further noted that, in light of the Fund’s use of a “passive” or indexing investment approach, management evaluates the Fund based on its tracking error against a specified benchmark. The Board also noted that for the one-year period ended December 31, 2023, the Fund’s tracking error was 1.1 basis points outside the tolerance anticipated for this Fund. Management further explained that the Fund’s tracking error was outside the tolerance anticipated due, in part, to fees. The Board concluded that the Fund’s performance was acceptable.
Comparative Fees and Expenses
The Board reviewed and considered information regarding each Fund’s actual total expense ratio, noting that each Fund pays a Unified Fee (as defined below). The Board considered the actual total expense ratio and, separately, the contractual management fee rate, without the effect of fee waivers, if any (Management Rate), of each Fund in comparison to the median expense ratio and median Management Rate, respectively, of other exchange-traded funds deemed comparable to and with a similar expense structure to the Fund selected by Broadridge (Expense Group). Broadridge fee and expense data is based upon information taken from each fund’s most recent annual or semi-annual report, which reflects historical asset levels that
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| Board Approval of Management and Subadvisory Agreements | For the period covered in the report (continued) |
may be quite different from those currently existing, particularly in a period of market volatility. While recognizing such inherent limitation and the fact that expense ratios and Management Rates generally increase as assets decline and decrease as assets grow, the Board believed the independent analysis conducted by Broadridge to be an appropriate measure of comparative fees and expenses. The Broadridge Management Rate includes administrative charges. The Board received a description of the methodology used by Broadridge to select the exchange-traded funds included in an Expense Group.
Franklin Emerging Market Core Dividend Tilt Index ETF, Franklin International Core Dividend Tilt Index ETF, Franklin U.S. Core Dividend Tilt Index ETF, Franklin U.S. Large Cap Multifactor Index ETF and Franklin U.S. Mid Cap Multifactor Index ETF - The Expense Group for the Franklin Emerging Market Core Dividend Tilt Index ETF was comprised of strategic beta exchange-traded funds, which included the Fund, two other emerging markets funds, one global equity income fund and four international equity income funds. The Expense Group for the Franklin International Core Dividend Tilt Index ETF was comprised of strategic beta exchange-traded funds, which included the Fund, which is currently classified as an international large-cap core fund, seven international equity income funds, one international multi-cap value fund and one international multi-cap growth fund. The Expense Group for the Franklin U.S. Core Dividend Tilt Index ETF was comprised of strategic beta exchange-traded funds, which included the Fund and nine other equity income funds. The Expense Group for the Franklin U.S. Large Cap Multifactor Index ETF was comprised of strategic beta exchange-traded funds, which included the Fund, six other large-cap core funds and one large-cap growth fund. The Expense Group for the Franklin U.S. Mid Cap Multifactor Index ETF was comprised of strategic beta exchange-traded funds, which included the Fund, which is currently classified as a mid-cap growth fund, one mid-cap value fund and four mid-cap core funds. The Board noted that the Management Rate and actual total expense ratio for each Fund were below the medians and in the first quintile (least expensive) of its respective Expense Group. The Board further noted that the Funds have a unified management fee (Unified Fee) and that pursuant to the Unified Fee arrangement the Manager reimburses each Fund for all of its acquired fund fees and expenses (if any) and pays all of the ordinary operating expenses of each Fund, except for (i) the Fund’s Unified Fee, (ii) future Rule 12b-1 fees (if any), (iii) brokerage expenses, (iv) taxes, (v) interest (including borrowing costs and dividend expenses on securities sold short and overdraft charges), (vi) litigation expenses (including litigation to which the Trust or the Fund may be a party and indemnification of the Trustees and officers with respect thereto), and (vii) other non-routine or extraordinary expenses (Unified Fee Arrangement). The Board concluded that the Management Rate charged to each Fund is reasonable.
Franklin U.S. Small Cap Multifactor Index ETF - The Expense Group for the Fund was comprised of strategic beta exchange-traded funds, which included the Fund and 10 other small-cap core funds. The Board noted that the Management Rate and actual total expense ratio for the Fund were above the medians of its Expense Group. The Board further noted that the Fund’s Management Rate was one basis point above the median of its Expense Group. The Board discussed the above median Management Rate and actual total expense ratio with management and management explained that the lower cost funds in the Expense Group equally weight their investment style factors and generally perform in line with the market, while the Fund uses a custom weighted approach which, for the one-year period had an annualized total return of 20.61% which fell in the first quintile of its Performance Universe. The Board further noted that the Fund has a Unified Fee and the terms of the Unified Fee Arrangement. The Board concluded that the Management Rate charged to the Fund is reasonable.
Profitability
The Board reviewed and considered information regarding the profits realized by the Manager and its affiliates in connection with the operation of each Fund. In this respect, the Board considered the Fund profitability analysis provided by the Manager that addresses the overall profitability of FT’s US fund business, as well as its profits in providing investment management and other services to each of the individual Funds during the 12-month period ended September 30, 2023 (the most recent fiscal year-end for FRI). The Board noted that although management continually makes refinements to its methodologies used in calculating profitability in response to organizational and product-related changes, the overall methodology has remained consistent with that used in the Funds’ profitability report presentations from prior years. The Board also noted that an independent registered public accounting firm has been engaged by the Manager to periodically review and assess the allocation methodologies to be used solely by the Funds’ Board with respect to the profitability analysis.
The Board noted management’s belief that costs incurred in establishing the infrastructure necessary for the type of fund operations conducted by the Manager and its affiliates may not be fully reflected in the expenses allocated to each Fund in
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FRANKLIN TEMPLETON ETF TRUST
| Board Approval of Management and Subadvisory Agreements | For the period covered in the report (continued) |
determining its profitability, as well as the fact that the level of profits, to a certain extent, reflected operational cost savings and efficiencies initiated by management. As part of this evaluation, the Board considered management’s outsourcing of certain operations, which effort has required considerable up-front expenditures but, over the long run, is expected to result in greater efficiencies. The Board also noted management’s expenditures in improving shareholder services provided to the Funds, as well as the need to implement systems and meet additional regulatory and compliance requirements resulting from recent US Securities and Exchange Commission and other regulatory requirements.
The Board also considered the extent to which the Manager and its affiliates might derive ancillary benefits from fund operations, including potential benefits resulting from personnel and systems enhancements necessitated by fund growth, as well as increased leverage with service providers and counterparties. Based upon its consideration of all these factors, the Board concluded that the level of profits realized by the Manager and its affiliates from providing services to each Fund was not excessive in view of the nature, extent and quality of services provided to each Fund.
Economies of Scale
The Board reviewed and considered the extent to which the Manager may realize economies of scale, if any, as each Fund grows larger and whether each Fund’s management fee structure reflects any economies of scale for the benefit of shareholders. The Board considered that each Fund would likely experience benefits from the Unified Fee at the Fund’s projected asset levels because of the Manager’s contractual requirement to bear most of the Fund’s ordinary operating expenses. The Board noted that, under the Unified Fee, it is not anticipated that any of the Funds will generate significant, if any, profit for the Manager and/or its affiliates for some time. The Board also considered management’s view that any analyses of potential economies of scale in managing a particular fund are inherently limited in light of the joint and common costs and investments the Manager incurs across the FT family of funds as a whole. The Board also noted that, as of December 31, 2023, each Fund (except for the Franklin International Core Dividend Tilt Index ETF, the Franklin U.S. Large Cap Multifactor Index ETF and Franklin U.S. Mid Cap Multifactor Index ETF) had net assets below $150 million and thus did not have an asset size that would likely enable them to achieve economies of scale. The Board also noted management’s representation that for the fiscal year ended September 30, 2023, none of these Funds experienced a profit. The Board recognized that there would not likely be any economies of scale for these Funds until their assets grow. The Board also noted management’s representation that, while the Franklin International Core Dividend Tilt Index ETF, the Franklin U.S. Large Cap Multifactor Index ETF and the Franklin U.S. Mid Cap Multifactor Index ETF had net assets of approximately $580 million, $1.16 billion, and $419 million, respectively, as of December 31, 2023, only the Franklin U.S. Large Cap Multifactor Index ETF experienced a profit for the fiscal year ended September 30, 2023. The Board concluded that to the extent economies of scale may be realized by the Manager and its affiliates, each Fund’s management fee structure provided a sharing of benefits with a Fund and its shareholders as the Fund grows.
Conclusion
Based on its review, consideration and evaluation of all factors it believed relevant, including the above-described factors and conclusions, the Board unanimously approved the continuation of each Management Agreement for an additional one-year period.
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© 2024 Franklin Templeton Investments. All rights reserved.
Franklin Templeton
ETF Trust
Financial Statements and Other Important Information
| Semi-Annual | September 30, 2024 |
| Franklin Disruptive Commerce ETF |
| Franklin Dynamic Municipal Bond ETF |
| Franklin Exponential Data ETF |
| Franklin Focused Growth ETF |
| Franklin Genomic Advancements ETF |
| Franklin High Yield Corporate ETF |
Franklin Income Equity Focus ETF
Formerly, Franklin U.S. Low Volatility ETF |
| Franklin Income Focus ETF |
| Franklin Intelligent Machines ETF |
| Franklin International Aggregate Bond ETF |
| Franklin Investment Grade Corporate ETF |
| Franklin Municipal Green Bond ETF |
| Franklin Systematic Style Premia ETF |
| Franklin U.S. Core Bond ETF |
| Franklin U.S. Treasury Bond ETF |
| Franklin Ultra Short Bond ETF |
| Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Financial Highlights
Franklin Disruptive Commerce ETF
| | Six Months Ended
September 30, 2024
(unaudited) | Year Ended March 31, | Period Ended March 31,
2020a |
| | 2024 | 2023 | 2022 | 2021 |
| Per share operating performance | | | | | | |
| (for a share outstanding throughout the period) | | | | | | |
| Net asset value, beginning of period | $32.29 | $24.05 | $30.97 | $49.21 | $21.32 | $25.00 |
| Income from investment operationsb: | | | | | | |
| Net investment income (loss)c | (0.01) | 0.03 | 0.02 | (0.19) | (0.21) | (0.01) |
| Net realized and unrealized gains (losses) | 2.09 | 8.21 | (6.94) | (17.73) | 28.10 | (3.67) |
| Total from investment operations | 2.08 | 8.24 | (6.92) | (17.92) | 27.89 | (3.68) |
| Net realized gains | — | — | — | (0.32) | — | — |
| Net asset value, end of period | $34.37 | $32.29 | $24.05 | $30.97 | $49.21 | $21.32 |
| Total returnd | 6.44% | 34.26% | (22.34)% | (36.59)% | 130.82% | (14.72)% |
| Ratios to average net assetse | | | | | | |
| Expenses before waiver and payments by affiliates | 0.50% | 0.50% | 0.50% | 0.62% | 0.87% | 12.59% |
| Expenses net of waiver and payments by affiliates | 0.50% | 0.50% | 0.50% | 0.50% | 0.50% | 0.50% |
| Net investment income (loss) | (0.05)% | 0.11% | 0.07% | (0.40)% | (0.44)% | (0.32)% |
| Supplemental data | | | | | | |
| Net assets, end of period (000’s) | $10,310 | $11,302 | $9,619 | $18,584 | $41,827 | $2,132 |
| Portfolio turnover ratef | 1.79%g | 12.69%g | 47.01%g | 89.85%g | 45.81%g | 0.94%g |
| aFor the period February 25, 2020 (commencement of operations) to March 31, 2020. |
| bThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of Creation Unit Fund shares in relation to income earned and/or fluctuating fair value of the investments of the Fund. |
| cBased on average daily shares outstanding. |
| dTotal return is not annualized for periods less than one year. Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. |
| eRatios are annualized for periods less than one year. |
| fPortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash ("Cash creations"). |
| gPortfolio turnover rate excluding cash creations was as follows: | 1.79% | 12.69% | 47.01% | 89.79% | 45.81% | 0.94% |
| 1 | Semi-Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments, September 30, 2024 (unaudited)
Franklin Disruptive Commerce ETF
| | | Country | Shares | | Value |
| | Common Stocks 98.9% | | | | |
| | Broadline Retail 22.3% | | | | |
| a | Alibaba Group Holding Ltd., Class A | China | 7,638 | | $ 108,166 |
| b | Amazon.com, Inc. | United States | 4,890 | | 911,154 |
| | eBay, Inc. | United States | 1,503 | | 97,860 |
| b | Etsy, Inc. | United States | 1,362 | | 75,632 |
| b | Global-e Online Ltd. | Israel | 3,213 | | 123,508 |
| b | MercadoLibre, Inc. | Brazil | 253 | | 519,146 |
| | Naspers Ltd., Class N | South Africa | 438 | | 106,622 |
| a,b | PDD Holdings, Inc., ADR | China | 1,921 | | 258,970 |
| | Prosus NV | Netherlands | 2,365 | | 103,625 |
| | | | | | 2,304,683 |
| | Commercial Services & Supplies 3.3% | | | | |
| b | Copart, Inc. | United States | 6,450 | | 337,980 |
| | Consumer Staples Distribution & Retail 5.9% | | | | |
| | Costco Wholesale Corp. | United States | 684 | | 606,380 |
| | Containers & Packaging 1.6% | | | | |
| | Graphic Packaging Holding Co. | United States | 1,658 | | 49,060 |
| | Packaging Corp. of America | United States | 529 | | 113,947 |
| | | | | | 163,007 |
| | Entertainment 3.4% | | | | |
| b | Netflix, Inc. | United States | 330 | | 234,059 |
| | Nintendo Co. Ltd., ADR | Japan | 3,312 | | 44,116 |
| b | ROBLOX Corp., Class A | United States | 1,775 | | 78,561 |
| | | | | | 356,736 |
| | Financial Services 8.9% | | | | |
| b | Adyen NV, ADR | Netherlands | 7,986 | | 124,821 |
| b | Block, Inc. | United States | 669 | | 44,910 |
| | Jack Henry & Associates, Inc. | United States | 396 | | 69,910 |
| | Mastercard, Inc., Class A | United States | 701 | | 346,154 |
| b | PayPal Holdings, Inc. | United States | 360 | | 28,091 |
| | Visa, Inc., Class A | United States | 1,090 | | 299,695 |
| | | | | | 913,581 |
| | Food Products 1.2% | | | | |
| b | Freshpet, Inc. | United States | 892 | | 121,999 |
| | Ground Transportation 9.1% | | | | |
| | Old Dominion Freight Line, Inc. | United States | 556 | | 110,444 |
| b | Uber Technologies, Inc. | United States | 9,455 | | 710,638 |
| b | XPO, Inc. | United States | 1,054 | | 113,315 |
| | | | | | 934,397 |
| | Hotels, Restaurants & Leisure 14.5% | | | | |
| b | Airbnb, Inc., Class A | United States | 1,347 | | 170,813 |
| | Booking Holdings, Inc. | United States | 101 | | 425,424 |
| b | DoorDash, Inc., Class A | United States | 4,105 | | 585,907 |
| b | Expedia Group, Inc. | United States | 590 | | 87,332 |
| b | MakeMyTrip Ltd. | India | 2,413 | | 224,288 |
| | | | | | 1,493,764 |
| | Industrial REITs 1.2% | | | | |
| | Prologis, Inc. | United States | 971 | | 122,618 |
| | Interactive Media & Services 3.5% | | | | |
| | Alphabet, Inc., Class A | United States | 567 | | 94,037 |
| | Meta Platforms, Inc., Class A | United States | 414 | | 236,990 |
| franklintempleton.com | Semi-Annual Report | 2 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin Disruptive Commerce ETF (continued)
| | | Country | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | Interactive Media & Services (continued) | | | | |
| a | Tencent Holdings Ltd. | China | 587 | | $ 33,599 |
| | | | | | 364,626 |
| | IT Services 5.9% | | | | |
| b | Shopify, Inc., Class A | Canada | 7,541 | | 604,336 |
| | Media 0.7% | | | | |
| b | Trade Desk, Inc., Class A | United States | 685 | | 75,110 |
| | Professional Services 0.5% | | | | |
| | TransUnion | United States | 537 | | 56,224 |
| | Real Estate Management & Development 0.2% | | | | |
| b | CoStar Group, Inc. | United States | 264 | | 19,916 |
| | Software 7.6% | | | | |
| b | AppLovin Corp., Class A | United States | 598 | | 78,069 |
| b | Autodesk, Inc. | United States | 351 | | 96,693 |
| b | Descartes Systems Group, Inc. | Canada | 2,100 | | 216,216 |
| b | Manhattan Associates, Inc. | United States | 1,140 | | 320,773 |
| b | SPS Commerce, Inc. | United States | 376 | | 73,008 |
| | | | | | 784,759 |
| | Specialty Retail 0.2% | | | | |
| | ZOZO, Inc. | Japan | 512 | | 18,663 |
| | Trading Companies & Distributors 8.9% | | | | |
| | Fastenal Co. | United States | 5,775 | | 412,451 |
| | WW Grainger, Inc. | United States | 484 | | 502,784 |
| | | | | | 915,235 |
| | Total Common Stocks (Cost $8,243,174) | | | | 10,194,014 |
| | Total Investments (Cost $8,243,174) 98.9% | | | | 10,194,014 |
| | Other Assets, less Liabilities 1.1% | | | | 115,714 |
| | Net Assets 100.0% | | | | $ 10,309,728 |
| aVariable interest entity (VIE). See Note 7 regarding investments made through a VIE structure. At September 30, 2024, the aggregate value of these securities was $400,735, representing 3.9% of net assets. |
| bNon-income producing. |
See Abbreviations on page 171.
| 3 | Semi-Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
Franklin Templeton ETF Trust
Financial Highlights
Franklin Dynamic Municipal Bond ETF
| | Six Months Ended
September 30, 2024
(unaudited) | Year Ended March 31, |
| | 2024 | 2023 | 2022 | 2021 | 2020 |
| Per share operating performance | | | | | | |
| (for a share outstanding throughout the period) | | | | | | |
| Net asset value, beginning of period | $24.42 | $23.88 | $24.81 | $26.32 | $24.72 | $24.97 |
| Income from investment operationsa: | | | | | | |
| Net investment incomeb | 0.52 | 0.97 | 0.74 | 0.61 | 0.59 | 0.58 |
| Net realized and unrealized gains (losses) | 0.51 | 0.50 | (0.96) | (1.56) | 1.59 | (0.17) |
| Total from investment operations | 1.03 | 1.47 | (0.22) | (0.95) | 2.18 | 0.41 |
| Less distributions from net investment income | (0.51) | (0.93) | (0.71) | (0.56) | (0.58) | (0.66) |
| Net asset value, end of period | $24.94 | $24.42 | $23.88 | $24.81 | $26.32 | $24.72 |
| Total returnc | 4.27% | 6.37% | (0.82)% | (3.70)% | 8.84% | 1.61% |
| Ratios to average net assetsd | | | | | | |
| Expenses before waiver and payments by affiliates | 0.30% | 0.30% | 0.57% | 0.75% | 1.01% | 1.46% |
| Expenses net of waiver and payments by affiliates | 0.30% | 0.30% | 0.30% | 0.30% | 0.30% | 0.30% |
| Net investment income | 4.27% | 4.07% | 3.12% | 2.32% | 2.29% | 2.29% |
| Supplemental data | | | | | | |
| Net assets, end of period (000’s) | $323,020 | $196,593 | $101,497 | $76,908 | $42,112 | $12,362 |
| Portfolio turnover ratee | 29.29%f | 82.59%f | 64.13%f | 27.62%f | 14.05%f | 35.28%f |
| aThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of Creation Unit Fund shares in relation to income earned and/or fluctuating fair value of the investments of the Fund. |
| bBased on average daily shares outstanding. |
| cTotal return is not annualized for periods less than one year. Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. |
| dRatios are annualized for periods less than one year. |
| ePortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash ("Cash creations"). |
| fPortfolio turnover rate excluding cash creations was as follows: | 29.29% | 82.59% | 64.13% | 27.62% | 14.05% | 35.28% |
| franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Semi-Annual Report | 4 |
Franklin Templeton ETF Trust
Schedule of Investments, September 30, 2024 (unaudited)
Franklin Dynamic Municipal Bond ETF
| | | Principal Amount* | | Value |
| | Corporate Bonds & Notes 1.0% | | | |
| | Arizona 0.8% | | | |
| | Grand Canyon University, 5.125%, 10/01/28 | 3,000,000 | | $ 2,818,920 |
| | Puerto Rico 0.2% | | | |
| a | AES Puerto Rico LP, 12.50%, 12/15/25 | 638,904 | | 638,904 |
| | Total Corporate Bonds & Notes (Cost $3,385,225) | | | 3,457,824 |
| | Municipal Bonds 98.2% | | | |
| | Alabama 4.7% | | | |
| | Black Belt Energy Gas District, | | | |
| | a Gas Project No 8, Series A, 4.00%, 12/01/52 | 500,000 | | 504,121 |
| | a Gas Project, Series E, 5.00%, 5/01/53 | 525,000 | | 550,512 |
| | a Refunding, 4.00%, 6/01/51 | 240,000 | | 247,233 |
| | a Series A, 5.25%, 5/01/55 | 1,500,000 | | 1,653,848 |
| b | County of Mobile, Gomesa Projects, 4.00%, 11/01/45 | 100,000 | | 96,134 |
| | Energy Southeast A Cooperative District, | | | |
| | a Series A-1, 5.50%, 11/01/53 | 1,500,000 | | 1,664,527 |
| | a Series B, 5.25%, 7/01/54 | 4,000,000 | | 4,430,970 |
| | a Series B-1, 5.75%, 4/01/54 | 500,000 | | 568,336 |
| | Homewood Educational Building Authority, CHF - Horizons II LLC, 5.50%, 10/01/44 | 1,070,000 | | 1,170,534 |
| | MidCity Improvement District, | | | |
| | b Special Assessment Area, Series 2024, 6.50%, 11/01/44 | 250,000 | | 250,389 |
| | Special Assessment, Series 2022, 4.25%, 11/01/32 | 600,000 | | 551,929 |
| a | Southeast Alabama Gas Supply District, Project No.1, Refunding, Series A, 5.00%, 8/01/54 | 2,000,000 | | 2,174,738 |
| a | Southeast Energy Authority A Cooperative District, Series A-1, 5.50%, 1/01/53 | 1,115,000 | | 1,216,747 |
| | | | | 15,080,018 |
| | Alaska 0.3% | | | |
| | Northern Tobacco Securitization Corp., Series A, 4.00%, 6/01/39 | 1,000,000 | | 1,004,610 |
| | Arizona 1.0% | | | |
| a | Chandler Industrial Development Authority, Intel Corp, AMT, 5.00%, 9/01/42 | 1,030,000 | | 1,060,088 |
| | Glendale Industrial Development Authority, People of Faith Inc Obligated Group, 4.00%, 5/15/31 | 160,000 | | 156,801 |
| | Sierra Vista Industrial Development Authority, | | | |
| | b,c American Leadership Academy Inc, 5.00%, 6/15/44 | 1,500,000 | | 1,527,167 |
| | b Georgetown Community Development Authority, 9.00%, 10/01/37 | 250,000 | | 247,594 |
| | Tempe Industrial Development Authority, Tempe Life Care Village Obligated Group, Refunding, 4.00%, 12/01/31 | 225,000 | | 224,574 |
| | | | | 3,216,224 |
| | Arkansas 0.2% | | | |
| c | Arkansas Development Finance Authority, 5.00%, 2/01/35 | 735,000 | | 772,174 |
| | California 9.9% | | | |
| | California Community Choice Financing Authority, | | | |
| | a 5.25%, 1/01/54 | 7,045,000 | | 7,615,541 |
| | a Clean Energy, Series B, 5.00%, 1/01/55 | 1,000,000 | | 1,098,600 |
| | a VRDN, 5.50%, 10/01/54 | 1,835,000 | | 2,054,113 |
| b | California Community College Financing Authority, NCCD-Napa Valley Properties LLC, Series 2022A, 4.25%, 7/01/32 | 500,000 | | 501,396 |
| | California Community Housing Agency, | | | |
| | b Arbors Apartments, Series A, 5.00%, 8/01/50 | 1,650,000 | | 1,640,411 |
| | b Aster Apartments, Series A-2, 4.00%, 2/01/43 | 900,000 | | 841,915 |
| | b Brio Apartments & Next on Lex Apartments, Series A, 4.00%, 8/01/47 | 285,000 | | 239,920 |
| | b Fountains at Emerald Park, 4.00%, 8/01/46 | 995,000 | | 879,363 |
| | b K Street Flats, 4.00%, 8/01/50 | 740,000 | | 610,869 |
| | b Verdant at Green Valley Apartments, 5.00%, 8/01/49 | 1,685,000 | | 1,646,109 |
| 5 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin Dynamic Municipal Bond ETF (continued)
| | | Principal Amount* | | Value |
| | Municipal Bonds (continued) | | | |
| | California (continued) | | | |
| | California Health Facilities Financing Authority, Episcopal Communities & Services for Seniors Obligated Group, Series A, 3.85%, 11/15/27 | 1,000,000 | | $ 1,007,352 |
| | California Municipal Finance Authority, | | | |
| | Caritas Corp, Refunding Series 2021B, 3.00%, 8/15/31 | 145,000 | | 140,697 |
| | LAX Integrated Express Solutions LLC, AMT, 3.50%, 12/31/35 | 150,000 | | 144,510 |
| | LAX Integrated Express Solutions LLC, AMT, Series A-P3, 5.00%, 12/31/43 | 110,000 | | 112,743 |
| | Series C, 5.50%, 9/01/34 | 60,000 | | 65,036 |
| | Series C, 5.75%, 9/01/37 | 355,000 | | 383,199 |
| | Series C, 6.00%, 9/01/42 | 630,000 | | 682,727 |
| | Series D, 6.00%, 9/01/42 | 265,000 | | 289,517 |
| | California Pollution Control Financing Authority, | | | |
| | b,d CalPlant I LLC, AMT, 7.50%, 7/01/32 | 250,000 | | 3,375 |
| | a,b Republic Services Inc, AMT, Refunding, VRDN, 4.05%, 7/01/43 | 500,000 | | 499,593 |
| | California School Finance Authority, | | | |
| | b 5.00%, 6/01/27 | 50,000 | | 51,416 |
| | b Classical Academy Obligated Group, Series 2020A, 3.00%, 10/01/30 | 180,000 | | 172,634 |
| | b John Adams Academies Obligated Group, Series 2022A, 4.50%, 7/01/32 | 250,000 | | 252,238 |
| | b Summit Public Schools Obligated Group, 5.00%, 6/01/27 | 50,000 | | 52,815 |
| b | City & County of San Francisco Special Tax District No., 4.00%, 9/01/36 | 100,000 | | 100,943 |
| b | CMFA Special Finance Agency, Solana at Grand, Series A-2, 4.00%, 8/01/45 | 985,000 | | 881,643 |
| b | CMFA Special Finance Agency VII, The Breakwater Apartments, 4.00%, 8/01/47 | 830,000 | | 747,227 |
| b | CMFA Special Finance Agency VIII, Junior-Elan Huntington Beach, 4.00%, 8/01/47 | 1,350,000 | | 1,215,370 |
| b | CMFA Special Finance Agency XII, Allure Apartments, 4.375%, 8/01/49 | 1,625,000 | | 1,418,656 |
| | CSCDA Community Improvement Authority, | | | |
| | b Jefferson Anaheim Social Bonds, 2.875%, 8/01/41 | 155,000 | | 147,953 |
| | b Renaissance at City Center, 5.00%, 7/01/51 | 1,100,000 | | 1,101,788 |
| | b Towne at Glendale Apartments, 5.00%, 9/01/37 | 900,000 | | 922,426 |
| | b Waterscape Apartments, Series B, 4.00%, 9/01/46 | 1,055,000 | | 916,720 |
| b | Elsinore Valley Municipal Water District, Community Facilities District No 2020, Series 2021A, 4.00%, 9/01/27 | 100,000 | | 100,225 |
| a | Long Beach Bond Finance Authority, Series B, 3 mo. USD Term SOFR + 1.45%, 5.054%, 11/15/27 | 1,000,000 | | 1,012,493 |
| | Perris Joint Powers Authority, Refunding, Series 2017B, 5.00%, 9/01/25 | 100,000 | | 101,853 |
| | River Islands Public Financing Authority, | | | |
| | Community Facilities District No 2003-, 5.00%, 9/01/32 | 500,000 | | 524,171 |
| | Series 2023-1, 5.00%, 9/01/38 | 435,000 | | 465,148 |
| a | Southern California Public Power Authority, Libor-Project No 1, Series A, 3 mo. USD Term SOFR + 1.47%, 5.161%, 11/01/38 | 1,215,000 | | 1,193,134 |
| | | | | 31,835,839 |
| | Colorado 3.3% | | | |
| | Colorado Educational & Cultural Facilities Authority, Golden View Classical Academy, Refunding, 4.00%, 1/01/32 | 200,000 | | 198,625 |
| | Colorado Health Facilities Authority, | | | |
| | a Children’s Hospital Colorado Obligated Group, Refunding, VRDN, Series A, 4.05%, 12/01/52 | 900,000 | | 900,000 |
| | Christian Living Neighborhoods Obligated Group, Refunding, 4.00%, 1/01/29 | 100,000 | | 98,955 |
| | CommonSpirit Health Obligated Group, Refunding, Series A-1, 4.00%, 8/01/38 | 390,000 | | 394,362 |
| | CommonSpirit Health Obligated Group, Series A, 4.00%, 8/01/37 | 1,480,000 | | 1,503,140 |
| | CommonSpirit Health Obligated Group, Series A, 4.00%, 8/01/39 | 1,395,000 | | 1,401,192 |
| | CommonSpirit Health Obligated Group, Series A, Refunding, 5.00%, 8/01/39 | 1,935,000 | | 2,049,784 |
| | Denver Health & Hospital Authority, | | | |
| | b Refunding, Series A, 4.00%, 12/01/36 | 105,000 | | 99,595 |
| | Refunding, Series A, 4.00%, 12/01/37 | 1,020,000 | | 1,002,650 |
| franklintempleton.com | Semi-Annual Report | 6 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin Dynamic Municipal Bond ETF (continued)
| | | Principal Amount* | | Value |
| | Municipal Bonds (continued) | | | |
| | Colorado (continued) | | | |
| a | E-470 Public Highway Authority, Refunding, Series B, VRDN, 1 day USD SOFR + 0.75%, 3.993%, 9/01/39 | 1,000,000 | | $ 1,000,681 |
| | Southglenn Metropolitan District, Refunding, 5.00%, 12/01/30 | 100,000 | | 100,048 |
| | Southlands Metropolitan District No. 1, | | | |
| | Refunding, Series 2017A-1, 3.50%, 12/01/27 | 200,000 | | 199,592 |
| | Series A-2, 3.50%, 12/01/27 | 160,000 | | 158,154 |
| | Sterling Ranch Community Authority Board, Special Assessment, Special Improvement District N, 5.625%, 12/01/43 | 1,500,000 | | 1,570,793 |
| | | | | 10,677,571 |
| | Connecticut 0.8% | | | |
| | Connecticut State Health & Educational Facilities Authority, | | | |
| | Masonicare Corp Obligated Group, Refunding, Series F, 5.00%, 7/01/37 | 1,050,000 | | 1,062,548 |
| | b McLean Affiliates Obligated Group, Series A, 5.00%, 1/01/30 | 150,000 | | 150,834 |
| | Sacred Heart University Inc, 5.00%, 7/01/29 | 5,000 | | 5,273 |
| | a Yale University, VRDN, Series V-2, 3.60%, 7/01/36 | 1,400,000 | | 1,400,000 |
| | | | | 2,618,655 |
| | Delaware 0.0%† | | | |
| | County of Kent, CHF-Dover LLC, 5.00%, 7/01/29 | 100,000 | | 103,507 |
| | Florida 15.3% | | | |
| | Abbott Square Community Development District, 2022 Project, Special Assessment, 5.00%, 6/15/32 | 200,000 | | 207,455 |
| a | Alachua County Health Facilities Authority, Shands Teaching Hospital & Clinics Obligated Group, Series A, 1 day USD SOFR + 0.87%, 4.113%, 12/01/37 | 405,000 | | 387,673 |
| | Antillia Community Development District, Special Assessment, Series 2024, 5.00%, 5/01/31 | 215,000 | | 218,156 |
| b | Artisan Lakes East Community Development District, Special Assessment, Series 2021-2, 2.30%, 5/01/26 | 100,000 | | 97,338 |
| b | Astonia Community Development District, Assessment Area One Project, Special Assessment, Series 2020, 3.375%, 5/01/30 | 145,000 | | 142,726 |
| | Avalon Groves Community Development District, Assessment Area 3, Special Assessment, 2.375%, 5/01/26 | 65,000 | | 63,597 |
| b | Avalon Park West Community Development District, 2020 Project Area, Special Assessment, Refunding, 3.25%, 5/01/30 | 100,000 | | 99,090 |
| | Avenir Community Development District, 2021A Project, Assessment Area Two, Special Assessment, 2.75%, 5/01/31 | 85,000 | | 78,248 |
| | Aventura Isles Community Development District, Special Assessment, Refunding, 5.00%, 5/01/43 | 1,210,000 | | 1,239,229 |
| | Babcock Ranch Community Independent Special District, | | | |
| | Assessment Area 2C, Special Assessment, 3.00%, 5/01/30 | 50,000 | | 48,602 |
| | Assessment Area 3B, Special Assessment, 3.00%, 5/01/30 | 145,000 | | 140,219 |
| | Assessment Area, Special Assessment, Refunding, Series 2022, 4.125%, 5/01/27 | 465,000 | | 466,084 |
| | Belmond Reserve Community Development District, 2020 Project, Special Assessment, 3.25%, 5/01/30 | 100,000 | | 97,009 |
| | Berry Bay Community Development District, Assessment Area One, Special Assessment, 3.125%, 5/01/31 | 100,000 | | 94,036 |
| | Black Creek Community Development District, Expansion Area Project, Special Assessment, Series 2022, 5.125%, 6/15/32 | 100,000 | | 104,422 |
| | Capital Projects Finance Authority, | | | |
| | Florida University Project, Refunding, Series A-1, 5.00%, 10/01/30 | 1,000,000 | | 1,068,358 |
| | Florida University Project, Refunding, Series A-1, 5.00%, 10/01/34 | 1,000,000 | | 1,051,030 |
| | Series A-1, 5.00%, 10/01/35 | 1,000,000 | | 1,046,008 |
| | University Project, Series 2020A-1, 5.00%, 10/01/32 | 1,555,000 | | 1,645,230 |
| | Capital Trust Agency, Inc., | | | |
| | b AcadeMir Charter School West, 3.00%, 7/01/31 | 125,000 | | 116,818 |
| | b Educational Growth Fund LLC, 3.375%, 7/01/31 | 95,000 | | 92,834 |
| | Liza Jackson Preparatory School Inc, 4.00%, 8/01/30 | 245,000 | | 246,244 |
| | b WFCS Holdings II LLC, Series 2021A, 3.30%, 1/01/31 | 300,000 | | 286,553 |
| 7 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin Dynamic Municipal Bond ETF (continued)
| | | Principal Amount* | | Value |
| | Municipal Bonds (continued) | | | |
| | Florida (continued) | | | |
| b,e | Capital Trust Authority, zero cpn., 3/01/29 | 855,000 | | $ 681,276 |
| | Caymas Community Development District, Assessment Area One, Special Assessment, 4.45%, 5/01/31 | 270,000 | | 272,787 |
| | Celebration Community Development District, Assessment Area One Project, Special Assessment, Series 2021, 3.125%, 5/01/41 | 50,000 | | 43,899 |
| | Central Parc Community Development District, Special Assessment, Series 2024, 5.70%, 5/01/44 | 250,000 | | 254,985 |
| | Coddington Community Development District, Special Assessment, Series 2022, 5.00%, 5/01/32 | 275,000 | | 289,864 |
| | Connerton East Community Development District, Assessment Area One, Special Assessment, Series 2023, 4.25%, 6/15/30 | 160,000 | | 163,033 |
| | Coral Keys Homes Community Development District, Special Assessment, Series 2020, 3.125%, 5/01/30 | 165,000 | | 159,764 |
| | Cordoba Ranch Community Development District, Special Assessment, Refunding, 3.00%, 5/01/31 | 100,000 | | 96,168 |
| | Cordova Palms Community Development District, | | | |
| | Assessment Area 1, Special Assessment, 4.80%, 5/01/27 | 85,000 | | 85,772 |
| | Special Assessment, Series 2021, 2.80%, 5/01/31 | 100,000 | | 92,057 |
| e | County of Osceola Transportation Revenue, zero cpn., 10/01/32 | 150,000 | | 109,944 |
| b | Creekview Community Development District, Phase 2, Special Assessment, Series 2024, 5.375%, 5/01/44 | 470,000 | | 473,102 |
| b | Cypress Bluff Community Development District, Special Assessment, Series 2020A, 3.125%, 5/01/30 | 55,000 | | 54,035 |
| | Cypress Park Estates Community Development District, Special Assessment, Series 2022, 4.375%, 5/01/27 | 80,000 | | 80,307 |
| | Cypress Ridge Community Development District, Assessment Area One Project, Special Assessment, 4.875%, 5/01/30 | 440,000 | | 448,864 |
| | Darby Community Development District, Special Assessment, Series A-2, 5.875%, 5/01/35 | 500,000 | | 520,772 |
| | Del Webb Oak Creek Community Development District, 2023 Project, Special Assessment, 4.125%, 5/01/30 | 120,000 | | 121,380 |
| b | Downtown Doral South Community Development District, Assessment Area 2, Special Assessment, 4.25%, 12/15/28 | 195,000 | | 196,093 |
| b | DW Bayview Community Development District, Special Assessment, Series 2021, 3.00%, 5/01/32 | 100,000 | | 96,176 |
| | East 547 Community Development District, Assessment Area 2, Special Assessment, 5.50%, 5/01/30 | 185,000 | | 191,024 |
| | East Bonita Beach Road Community Development District, Assessment Area Two, Special Assessment, 3.00%, 5/01/32 | 100,000 | | 95,598 |
| | Edgewater East Community Development District, | | | |
| | Assessment Area One, Special Assessment, 3.10%, 5/01/31 | 100,000 | | 93,907 |
| | Assessment Area Two, Special Assessment, 3.00%, 5/01/27 | 180,000 | | 175,189 |
| b | Enbrook Community Development District, Special Assessment, Series 2020, 3.00%, 5/01/30 | 100,000 | | 93,985 |
| | Entrada Community Development District, Special Assessment, Series 2024, 5.00%, 5/01/44 | 300,000 | | 301,605 |
| | Epperson North Community Development District, Assessment Area 2, Special Assessment, 3.00%, 5/01/31 | 80,000 | | 74,395 |
| | Escambia County Health Facilities Authority, Baptist Hospital Inc Obligated Group, Refunding, 5.00%, 8/15/34 | 2,000,000 | | 2,122,629 |
| | Everlands Community Development District, Assessment Area Two, Special Assessment, 5.25%, 6/15/44 | 275,000 | | 283,200 |
| | Everlands II Community Development District, Special Assessment, Series 2024, 5.20%, 6/15/44 | 125,000 | | 126,782 |
| | Florida Development Finance Corp., | | | |
| | a,b AAF Operations Holdings LLC, AMT, Refunding, VRDN, 12.00%, 7/15/32 | 800,000 | | 853,383 |
| | a,b Brightline Florida Holdings LLC, AMT, VRDN, Series A, 8.25%, 7/01/57 | 325,000 | | 334,724 |
| | b Glenridge on Palmer Ranch Obligated Group, Refunding, 5.00%, 6/01/31 | 200,000 | | 210,515 |
| | b Mayflower Retirement Community, Refunding, 4.00%, 6/01/31 | 100,000 | | 96,139 |
| | Refunding, Series A, 5.00%, 2/01/39 | 2,600,000 | | 2,658,387 |
| franklintempleton.com | Semi-Annual Report | 8 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin Dynamic Municipal Bond ETF (continued)
| | | Principal Amount* | | Value |
| | Municipal Bonds (continued) | | | |
| | Florida (continued) | | | |
| | Flow Way Community Development District, Special Assessment, Series 2024, Refunding, 5.00%, 5/01/44 | 1,000,000 | | $ 1,023,874 |
| b | Forest Lake Community Development District, Assessment Area 1 Project, Special Assessment, 3.25%, 5/01/30 | 145,000 | | 141,733 |
| | Gardens at Hammock Beach Community Development District, Special Assessment, Assessment Area One, 5.375%, 5/01/44 | 305,000 | | 309,349 |
| | Grand Oaks Community Development District, Assessment Area 2, Special Assessment, 4.00%, 5/01/30 | 150,000 | | 149,535 |
| | Grande Pines Community Development District, Assessment Area Two, Special Assessment, 4.65%, 5/01/34 | 515,000 | | 523,700 |
| | Hacienda North Community Development District, Special Assessment, Series 2023, 5.50%, 5/01/33 | 135,000 | | 142,512 |
| | Hammock Oaks Community Development District, Special Assessment, Assessment Area Two, 5.00%, 5/01/31 | 100,000 | | 101,500 |
| | Hammock Reserve Community Development District, Assessment Area One Project, Special Assessment, 3.25%, 5/01/30 | 100,000 | | 97,205 |
| | Hawkstone Community Development District, Assessment Area 4, Special Assessment, 4.375%, 5/01/30 | 95,000 | | 96,186 |
| | Herons Glen Recreation District, Special Assessment, Refunding, 3.00%, 5/01/32 | 100,000 | | 98,506 |
| | Hickory Tree Community Development District, Assessment Area One, Special Assessment, 4.50%, 5/01/31 | 455,000 | | 457,343 |
| | Highland Trails Community Development District, Assessment Area One, Special Assessment, 4.70%, 5/01/31 | 220,000 | | 223,093 |
| | Hills of Minneola Community Development District, South Parcel Assessment Area, Special Assessment, 2.375%, 5/01/26 | 45,000 | | 43,914 |
| | Holly Hill Road East Community Development District, Assessment Area 3 Project, Special Assessment, 4.00%, 11/01/25 | 45,000 | | 45,036 |
| | Hunt Club Grove Community Development District, Special Assessment, Assessment Area One, 4.85%, 6/15/31 | 210,000 | | 212,010 |
| | Indigo Community Development District, 2021 Assessment Area, Phase A1, Special Assessment, 2.70%, 5/01/31 | 100,000 | | 92,984 |
| | Kelly Park Community Development District, Assessment Area One Project, Special Assessment, 5.125%, 11/01/30 | 280,000 | | 286,610 |
| | Kindred Community Development District II, | | | |
| | Special Assessment, 5.65%, 5/01/43 | 315,000 | | 334,780 |
| | Special Assessment, Series 2020, 3.00%, 5/01/30 | 155,000 | | 149,737 |
| | Special Assessment, Series 2021, 2.20%, 5/01/26 | 25,000 | | 24,415 |
| | Kingman Gate Community Development District, | | | |
| | Special Assessment, Series 2020, 3.125%, 6/15/30 | 110,000 | | 107,951 |
| | Special Assessment, Series 2021, 2.50%, 6/15/26 | 45,000 | | 44,199 |
| | Lakes at Bella Lago Community Development District, Special Assessment, 5.75%, 5/01/43 | 165,000 | | 172,956 |
| | Lakes by the Bay South Community Development District, Special Assessment, Refunding, Series 2024, 5.00%, 5/01/34 | 440,000 | | 475,090 |
| | Lakes of Sarasota Community Development District, | | | |
| | Assessment Area One, Special Assessment, 3.40%, 5/01/31 | 135,000 | | 129,743 |
| | Assessment Area Two, Special Assessment, 3.00%, 5/01/26 | 80,000 | | 79,122 |
| | Special Assessment, Series A, 5.30%, 5/01/44 | 425,000 | | 430,460 |
| | Lakewood Ranch Stewardship District, | | | |
| | Azario Project, Special Assessment, Series 2020, 3.20%, 5/01/30 | 175,000 | | 168,842 |
| | b Lorraine Lakes Project, Special Assessment, Series 2020, 3.125%, 5/01/30 | 60,000 | | 57,326 |
| | b Northeast Sector Project, Special Assessment, Refunding, 3.20%, 5/01/30 | 100,000 | | 95,881 |
| | Star Farms at Lakewood Ranch Proj-Phase 1/2, Special Assessment, 2.70%, 5/01/31 | 100,000 | | 91,493 |
| | Taylor Ranch Project, Special Assessment, 6.125%, 5/01/43 | 500,000 | | 539,024 |
| | Villages Lakewood Ranch South, Special Assessment, Series 2016, 4.25%, 5/01/26 | 945,000 | | 948,581 |
| 9 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin Dynamic Municipal Bond ETF (continued)
| | | Principal Amount* | | Value |
| | Municipal Bonds (continued) | | | |
| | Florida (continued) | | | |
| | Lawson Dunes Community Development District, Special Assessment, Series 2022, 4.375%, 5/01/27 | 100,000 | | $ 100,533 |
| | Lee County Industrial Development Authority, Shell Point Obligated Group, 4.375%, 11/15/29 | 1,000,000 | | 1,007,720 |
| | Longleaf Community Development District, | | | |
| | b Neighborhood 4 Assessment Area One, Special Assessment, 4.50%, 5/01/31 | 140,000 | | 142,265 |
| | b,c Special Assessment, Series A, 4.375%, 5/01/31 | 250,000 | | 250,460 |
| | Los Cayos Community Development District, 2024 Project, Special Assessment, 4.40%, 6/15/31 | 300,000 | | 303,935 |
| | LT Ranch Community Development District, Phase IIA Assessment Area, Special Assessment, 5.00%, 5/01/27 | 105,000 | | 106,459 |
| b | Magnolia Park Community Development District, Special Assessment, Refunding, 4.00%, 5/01/31 | 47,000 | | 48,333 |
| | Marion Ranch Community Development District, Special Assessment, 5.10%, 5/01/31 | 215,000 | | 218,099 |
| | Meadow View at Twin Creeks Community Development District, Phase 4, Special Assessment, 3.00%, 5/01/31 | 75,000 | | 69,711 |
| | Miami Health Facilities Authority, Miami Jewish Health Systems Obligated Group, Refunding, 5.00%, 7/01/28 | 150,000 | | 146,634 |
| | Middleton Community Development District A, Special Assessment, Series 2022, 5.45%, 5/01/32 | 200,000 | | 215,681 |
| | Mirada II Community Development District, 2021 Project Area, Special Assessment, 3.125%, 5/01/31 | 100,000 | | 91,915 |
| b | Normandy Community Development District, Assessment Area One, Special Assessment, 5.30%, 5/01/44 | 335,000 | | 337,383 |
| b | North Powerline Road Community Development District, Special Assessment, Series 2022, 4.75%, 5/01/27 | 125,000 | | 125,960 |
| | North River Ranch Improvement Stewardship District, Special Assessment, Series A, 5.70%, 5/01/29 | 145,000 | | 149,058 |
| | North-1 Pasco Community Development District, Assessment Area Two, Special Assessment, Series A, 3.25%, 5/01/31 | 50,000 | | 47,296 |
| | Old Hickory Community Development District, Special Assessment, Series 2020, 3.00%, 6/15/30 | 100,000 | | 95,977 |
| | Palermo Community Development District, 2023 Project, Special Assessment, 4.125%, 6/15/30 | 75,000 | | 76,046 |
| | Palm Beach County Health Facilities Authority, | | | |
| | Jupiter Medical Center Obligated Group, 5.00%, 11/01/32 | 300,000 | | 327,938 |
| | Jupiter Medical Center Obligated Group, 5.00%, 11/01/40 | 285,000 | | 302,043 |
| | Jupiter Medical Center Obligated Group, Series A, 5.00%, 11/01/42 | 145,000 | | 152,404 |
| | Lifespace Communities Inc Obligated Group, Refunding, Series C, 4.00%, 5/15/35 | 15,000 | | 14,682 |
| | Lifespace Communities Inc Obligated Group, Refunding, Series C, 5.00%, 5/15/27 | 292,000 | | 292,746 |
| | Lifespace Communities, Inc., 5.00%, 5/15/41 | 450,000 | | 452,689 |
| | Palm Coast Park Community Development District, | | | |
| | Sawmill Branch - Phase 7, Special Assessment, 5.00%, 5/01/44 | 270,000 | | 271,255 |
| | Sawmill Branch Phase 2, Special Assessment, 4.15%, 5/01/27 | 200,000 | | 200,908 |
| | Parkview at Long Lake Ranch Community Development District, Special Assessment, Series 2020, 3.125%, 5/01/30 | 100,000 | | 94,609 |
| | Parrish Lakes Community Development District, | | | |
| | Assessment Area One Project, Special Assessment, 4.00%, 5/01/30 | 265,000 | | 265,303 |
| | Assessment Area Three, Special Assessment, 5.00%, 5/01/31 | 285,000 | | 287,189 |
| | Parrish Plantation Community Development District, | | | |
| | Assessment Area One, Special Assessment, 3.125%, 5/01/31 | 100,000 | | 93,992 |
| | Special Assessment, Assessment Area Four Project-S, 4.75%, 5/01/31 | 90,000 | | 91,373 |
| | Special Assessment, Assessment Area Three Project, 5.80%, 5/01/44 | 200,000 | | 207,885 |
| | Peace Creek Village Community Development District, Special Assessment, Series 2024, 4.625%, 5/01/31 | 370,000 | | 375,124 |
| | Pine Ridge Plantation Community Development District, Subordinate Lien, Special Assessment, Refunding, Series 2020A-2, 3.30%, 5/01/30 | 150,000 | | 147,266 |
| | Preserve at South Branch Community Development District, Phase 3, Special Assessment, Series 2021, 3.00%, 5/01/31 | 100,000 | | 96,966 |
| franklintempleton.com | Semi-Annual Report | 10 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin Dynamic Municipal Bond ETF (continued)
| | | Principal Amount* | | Value |
| | Municipal Bonds (continued) | | | |
| | Florida (continued) | | | |
| | Regal Village Community Development District, Special Assessment Area, 5.20%, 5/01/44 | 190,000 | | $ 194,466 |
| | Reunion East Community Development District, Special Assessment, Series 2021, 2.85%, 5/01/31 | 100,000 | | 91,923 |
| | River Hall Community Development District, Special Assessment, Series A, 6.25%, 5/01/43 | 170,000 | | 183,611 |
| | Rivers Edge II Community Development District, Special Assessment, Series 2021, 3.00%, 5/01/31 | 100,000 | | 93,148 |
| b | Rivers Edge III Community Development District, Special Assessment, Series 2021, 2.40%, 5/01/26 | 100,000 | | 97,625 |
| b | Rye Ranch Community Development District, Assessment Area One, Special Assessment, Refunding, 5.00%, 11/01/30 | 45,000 | | 45,971 |
| | Saddle Creek Preserve of Polk County Community Development District, Assessment Area One, Special Assessment, 3.00%, 6/15/30 | 80,000 | | 77,315 |
| | Sanctuary Cove Community Development District, Special Assessment, Series 2018, 2.125%, 5/01/26 | 135,000 | | 131,242 |
| | Sandmine Road Community Development District, | | | |
| | b Assessment Area One, Special Assessment, 3.125%, 5/01/30 | 100,000 | | 98,460 |
| | Assessment Area Two, Special Assessment, 2.30%, 11/01/26 | 35,000 | | 34,145 |
| | Sandridge Community Development District, Special Assessment, Series 2021A1, 2.875%, 5/01/26 | 100,000 | | 98,960 |
| | Sawgrass Village Community Development District, Assessment Area Two, Special Assessment, 6.125%, 11/01/43 | 155,000 | | 166,033 |
| | Sawyers Landing Community Development District, Special Assessment, Series 2021, 3.75%, 5/01/31 | 150,000 | | 144,642 |
| | Scenic Terrace North Community Development District, 2023 Assessment Area, Special Assessment, 5.125%, 5/01/30 | 500,000 | | 511,141 |
| b | Seaton Creek Reserve Community Development District, Assessment Area One, Special Assessment, 4.625%, 6/15/30 | 25,000 | | 25,486 |
| | Sebastian Isles Community Development District, Special Assessment, Series 2024, 5.00%, 5/01/44 | 175,000 | | 176,442 |
| | Sherwood Manor Community Development District, Assessment Area Two, Special Assessment, 4.625%, 5/01/30 | 110,000 | | 112,069 |
| | Shingle Creek at Bronson Community Development District, Special Assessment, Series 2021, 3.10%, 6/15/31 | 100,000 | | 97,158 |
| | Silver Oaks Community Development District, Special Assessment, 4.70%, 5/01/31 | 235,000 | | 238,481 |
| | Six Mile Creek Community Development District, | | | |
| | Assessment Area 2, Phase 3, Special Assessment, 3.10%, 5/01/31 | 75,000 | | 70,465 |
| | b,c Project Area, Special Assessment, Series 2024, 5.10%, 5/01/44 | 230,000 | | 230,804 |
| b | Somerset Bay Community Development District, Special Assessment, Assessment Area One, 4.85%, 5/01/31 | 315,000 | | 318,399 |
| | Sorrento Pines Community Development District, Assessment Area One, 4.375%, 5/01/30 | 50,000 | | 50,754 |
| | South Fork East Community Development District, Special Assessment, Refunding, Series 2005, 4.00%, 5/01/31 | 1,335,000 | | 1,325,892 |
| | Southern Groves Community Development District No. 5, | | | |
| | Special Assessment, Series 2022, 5.80%, 5/01/42 | 400,000 | | 433,347 |
| | Special Assessment, Series 2024, 5.45%, 5/01/44 | 350,000 | | 360,271 |
| | Springs at Lake Alfred Community Development District, Assessment Area One, Special Assessment, 5.25%, 5/01/44 | 365,000 | | 372,701 |
| | St. Augustine Lakes Community Development District, | | | |
| | 2022 Project, Special Assessment, 4.70%, 6/15/29 | 360,000 | | 365,802 |
| | 2022 Project, Special Assessment, 5.375%, 6/15/42 | 95,000 | | 99,079 |
| b | Stillwater Community Development District, 2021 Project, Special Assessment, 3.00%, 6/15/31 | 100,000 | | 92,941 |
| b | Stuart Crossing Community Development District, Assessment Area One Project, Special Assessment, 4.375%, 5/01/31 | 195,000 | | 196,889 |
| | Summer Woods Community Development District, Assessment Area Three Project, Special Assessment, 3.15%, 5/01/31 | 75,000 | | 70,222 |
| | Summit View Community Development District, Assessment Area Two, Special Assessment, 4.75%, 5/01/31 | 480,000 | | 484,242 |
| 11 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin Dynamic Municipal Bond ETF (continued)
| | | Principal Amount* | | Value |
| | Municipal Bonds (continued) | | | |
| | Florida (continued) | | | |
| | Sunbridge Stewardship District, Special Assessment, Series 2022, 4.50%, 5/01/27 | 135,000 | | $ 136,279 |
| | Tamarindo Community Development District, Special Assessment, Series 2021, 3.00%, 5/01/31 | 100,000 | | 93,043 |
| | Timber Creek Southwest Community Development District, Special Assessment, Series 2020, 3.00%, 6/15/30 | 150,000 | | 141,588 |
| | Tohoqua Community Development District, | | | |
| | Phase 2 Project, Special Assessment, 2.875%, 5/01/31 | 100,000 | | 95,273 |
| | Phase 4A/5A Project, Special Assessment, Series 2021, 2.50%, 5/01/26 | 115,000 | | 112,609 |
| | Tradition Community Development District No. 9, Special Assessment, Series 2021, 2.70%, 5/01/31 | 100,000 | | 91,125 |
| b | Trevesta Community Development District, Assessment Area Two, Special Assessment, 3.25%, 5/01/30 | 100,000 | | 97,947 |
| | Twisted Oaks Pointe Community Development District, Assessment Area Two Project, Special Assessment, 5.875%, 5/01/43 | 170,000 | | 178,887 |
| b | Two Lakes Community Development District, Special Assessment, Series 2017, 4.00%, 12/15/28 | 245,000 | | 244,988 |
| | Two Rivers West Community Development District, | | | |
| | Special Assessment, Series 2, 5.25%, 5/01/28 | 320,000 | | 325,457 |
| | Special Assessment, Series 2, 5.375%, 5/01/33 | 150,000 | | 157,501 |
| | V-Dana Community Development District, Assessment Area One-2021 Project, Special Assessment, Series 2021P, 3.125%, 5/01/31 | 100,000 | | 94,982 |
| b | Venetian Parc Community Development District, Assessment Area Two, Refunding, 5.00%, 5/01/44 | 1,000,000 | | 1,024,179 |
| | Veranda Community Development District II, | | | |
| | Assessment Area 5, Special Assessment, Refunding, 4.50%, 5/01/31 | 360,000 | | 365,989 |
| | b Special Assessment, Refunding, 3.10%, 5/01/31 | 70,000 | | 65,480 |
| | Viera Stewardship District, Village 2, Special Assessment, Series 2021, 2.80%, 5/01/31 | 130,000 | | 118,920 |
| | Village Community Development District No. 13, Limited Offering, Special Assessment, Series 2019, 3.00%, 5/01/29 | 100,000 | | 97,644 |
| | Villamar Community Development District, | | | |
| | Assessment Area Five Project, Special Assessment, 5.625%, 5/01/43 | 200,000 | | 210,423 |
| | Assessment Area Six Project, Special Assessment, 4.625%, 5/01/31 | 210,000 | | 213,872 |
| b | Waterford Community Development District, Assessment Area Two, Special Assessment, 5.20%, 5/01/44 | 650,000 | | 651,707 |
| | Waterset South Community Development District, Special Assessment, Series 2022, 5.375%, 5/01/32 | 100,000 | | 105,093 |
| | West Villages Improvement District, | | | |
| | Unit of Development No 7, Special Assessment, 3.125%, 5/01/31 | 100,000 | | 93,385 |
| | Unit of Development No 8, Special Assessment, 4.625%, 5/01/29 | 175,000 | | 177,873 |
| | Willowbrook Community Development District, Special Assessment, Assessment Area One Project, 4.95%, 5/01/31 | 205,000 | | 207,709 |
| | Windsor Cay Community Development District, Special Assessment, Assessment Area One Project, 4.60%, 5/01/31 | 250,000 | | 253,127 |
| | Windward Community Development District, | | | |
| | Special Assessment, Series 2020A-1, 3.65%, 5/01/30 | 100,000 | | 97,208 |
| | Special Assessment, Series A-1, 3.00%, 5/01/25 | 60,000 | | 59,634 |
| | Wiregrass II Community Development District, Assessment Area Two, Special Assessment, 4.50%, 5/01/27 | 225,000 | | 226,297 |
| | Yarborough Lane Community Development District, | | | |
| | Special Assessment, Series 2024, 4.75%, 5/01/31 | 250,000 | | 251,769 |
| | Special Assessment, Series 2024, 5.35%, 5/01/44 | 245,000 | | 248,287 |
| | | | | 49,419,627 |
| | Georgia 2.9% | | | |
| b | Development Authority of Rockdale County, AHPC Terraces at Fieldstone LLC, Series 2021B-S, 4.50%, 12/01/36 | 100,000 | | 90,136 |
| b | George L Smith II Congress Center Authority, Signia Hotel Management LLC, 3.625%, 1/01/31 | 350,000 | | 335,195 |
| franklintempleton.com | Semi-Annual Report | 12 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin Dynamic Municipal Bond ETF (continued)
| | | Principal Amount* | | Value |
| | Municipal Bonds (continued) | | | |
| | Georgia (continued) | | | |
| | Main Street Natural Gas, Inc., | | | |
| | a,b Gas Supply Revenue, VRDN, Series C, 4.00%, 8/01/52 | 1,000,000 | | $ 998,771 |
| | a Series A, 5.00%, 6/01/53 | 4,000,000 | | 4,273,083 |
| | a Series B, 5.00%, 12/01/54 | 1,000,000 | | 1,097,250 |
| | a Series E, 5.00%, 12/01/53 | 1,325,000 | | 1,443,723 |
| | a Series E-2, 1 day USD SOFR + 1.70%, 4.943%, 12/01/53 | 1,000,000 | | 1,031,743 |
| | | | | 9,269,901 |
| | Idaho 0.3% | | | |
| | Idaho Housing & Finance Association, | | | |
| | b College of Idaho Inc, Refunding, 5.00%, 11/01/25 | 750,000 | | 758,258 |
| | White Pine Charter School Project, 5.25%, 5/01/38 | 300,000 | | 323,666 |
| | | | | 1,081,924 |
| | Illinois 5.7% | | | |
| e | Chicago Board of Education, Refunding, Series A, zero cpn., 12/01/25 | 500,000 | | 479,297 |
| | Chicago Board of Education Dedicated Capital Improvement Tax, | | | |
| | 5.00%, 4/01/38 | 2,155,000 | | 2,370,881 |
| | 5.25%, 4/01/39 | 1,000,000 | | 1,110,193 |
| | Chicago Midway International Airport, AMT, Refunding, Series A, 5.50%, 1/01/38 | 750,000 | | 854,621 |
| | City of Chicago, | | | |
| | Refunding, Series A, 5.00%, 1/01/34 | 1,100,000 | | 1,190,796 |
| | Refunding, Series B, 4.00%, 1/01/37 | 1,705,000 | | 1,700,138 |
| | Series A, 5.50%, 1/01/40 | 1,700,000 | | 1,870,058 |
| | Series A, 5.50%, 1/01/49 | 1,320,000 | | 1,378,402 |
| | Illinois Finance Authority, | | | |
| | b Acero Charter Schools Inc Obligated Group, VRDN, 4.00%, 10/01/31 | 180,000 | | 179,565 |
| | Chicago School - California, Inc., 5.25%, 4/01/44 | 1,070,000 | | 1,156,778 |
| | a Field Museum of Natural History, Refunding, VRDN, 1 day USD SOFR + 1.20%, 4.588%, 11/01/34 | 390,000 | | 389,605 |
| | Lawndale Educational & Regional Network Charter School Obligated Group, Refunding, 4.00%, 11/01/30 | 250,000 | | 255,219 |
| | Lawndale Educational & Regional Network Charter School Obligated Group, Refunding, 4.00%, 11/01/31 | 255,000 | | 259,535 |
| | a OSF Healthcare System Obligated Group, VRDN, Refunding, 5.00%, 5/15/50 | 770,000 | | 793,389 |
| | The Chicago School, 5.25%, 4/01/37 | 130,000 | | 146,710 |
| | Westminster Village Inc Obligated Group, Series A, Refunding, 5.25%, 5/01/38 | 1,100,000 | | 1,111,385 |
| | Metropolitan Pier & Exposition Authority, | | | |
| | McCormick Place Expansion, Refunding, 3.00%, 6/15/25 | 1,000,000 | | 996,353 |
| | State of Illinois McCormick Place Expansion Project Fund, Refunding, Series A, 4.00%, 12/15/42 | 390,000 | | 390,064 |
| | e zero cpn., 12/15/30 | 300,000 | | 244,069 |
| | Southwestern Illinois Development Authority, | | | |
| | e Madison County Community Unit School District No 7 Edwardsville, zero cpn., 12/01/24 | 155,000 | | 154,084 |
| | e Madison County Community Unit School District No 7 Edwardsville, zero cpn., 12/01/24 | 95,000 | | 94,360 |
| | State of Illinois, 6.00%, 11/01/26 | 990,000 | | 1,016,341 |
| b | Upper Illinois River Valley Development Authority, 2018 IAVF Timber Oaks & Prairie View Obligated Group, Refunding, 3.50%, 12/01/32 | 107,715 | | 98,339 |
| | Village of Villa Park, Garden Station Redevelopment Area, 12/31/38 | 100,000 | | 84,355 |
| | | | | 18,324,537 |
| | Indiana 0.7% | | | |
| b | City of Jeffersonville, Vivera Senior Living of Columbus LLC, Series 2020A, 4.75%, 11/01/30 | 100,000 | | 92,072 |
| | Indiana Finance Authority, | | | |
| | Ohio Valley Electric Corp, Series 2012C, 3.00%, 11/01/30 | 150,000 | | 145,966 |
| | University of Evansville, 7.00%, 9/01/32 | 170,000 | | 166,511 |
| 13 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin Dynamic Municipal Bond ETF (continued)
| | | Principal Amount* | | Value |
| | Municipal Bonds (continued) | | | |
| | Indiana (continued) | | | |
| b | Indiana Housing & Community Development Authority, Vita of Marion LLC, Series 2021A, 5.00%, 4/01/31 | 765,000 | | $ 721,571 |
| | Indianapolis Local Public Improvement Bond Bank, Convention Center Hotel, 5.50%, 3/01/38 | 1,000,000 | | 1,126,239 |
| | | | | 2,252,359 |
| | Iowa 2.3% | | | |
| | Crawford County Memorial Hospital, Inc., 5.00%, 6/15/27 | 515,000 | | 523,213 |
| | Iowa Finance Authority, | | | |
| | a Iowa Fertilizer Co LLC, Refunding, 5.00%, 12/01/50 | 2,425,000 | | 2,842,722 |
| | Lifespace Communities Inc Obligated Group, Refunding, 6.75%, 5/15/33 | 770,000 | | 883,814 |
| | Lifespace Communities Inc Obligated Group, Refunding, Series B, 7.25%, 5/15/38 | 500,000 | | 579,550 |
| | Lifespace Communities Inc Obligated Group, Series A, 4.125%, 5/15/38 | 125,000 | | 121,626 |
| | Lifespace Communities Inc Obligated Group, Series A, 5.00%, 5/15/32 | 510,000 | | 516,869 |
| | Lifespace Communities Inc Obligated Group, Series A, 5.00%, 5/15/41 | 1,060,000 | | 1,066,335 |
| | a Lifespace Communities Inc Obligated Group, Series B, 1 day USD SOFR + 0.55%, 3.931%, 5/15/56 | 500,000 | | 473,412 |
| | Lifespace Communities, Inc., Series A, 5.00%, 5/15/43 | 235,000 | | 236,938 |
| | Iowa Tobacco Settlement Authority, Refunding, Series 2021B-1, 4.00%, 6/01/49 | 85,000 | | 85,740 |
| | | | | 7,330,219 |
| | Kentucky 1.0% | | | |
| | Kentucky Public Energy Authority, | | | |
| | a Kentucky Public Energy Authority, VRDN, Series A-2, 1 day USD SOFR + 1.20%, 4.443%, 8/01/52 | 1,285,000 | | 1,288,339 |
| | a Refunding, Series B, 5.00%, 1/01/55 | 1,765,000 | | 1,931,323 |
| | Louisville/Jefferson County Metropolitan Government, Bellarmine University Inc, Refunding, 4.00%, 5/01/29 | 100,000 | | 94,589 |
| | | | | 3,314,251 |
| | Louisiana 0.7% | | | |
| | Lakeshore Villages Master Community Development District, Special Assessment, Series 2022, 5.00%, 6/01/32 | 245,000 | | 251,733 |
| | Louisiana Local Government Environmental Facilities & Community Development Authority, | | | |
| | b Parish of St John the Baptist LA, 3.90%, 11/01/44 | 175,000 | | 166,549 |
| | b Patriot Services Group Obligated Group, 5.25%, 10/01/32 | 145,000 | | 130,909 |
| | Westlake Corp, Refunding, 3.50%, 11/01/32 | 1,625,000 | | 1,601,319 |
| | | | | 2,150,510 |
| | Maine 0.3% | | | |
| | Maine State Housing Authority, Series D, 4.50%, 11/15/44 | 1,000,000 | | 1,019,953 |
| | Maryland 0.6% | | | |
| | City of Baltimore, | | | |
| | Harbor Point Special Taxing District, 4.25%, 6/01/26 | 375,000 | | 377,582 |
| | b Harbor Point Special Taxing District, Refunding, 3.25%, 6/01/31 | 100,000 | | 95,520 |
| | County of Frederick, Oakdale-Lake Linganore Development District, 3.25%, 7/01/29 | 140,000 | | 136,578 |
| | Maryland Economic Development Corp., | | | |
| | Purple Line Transit Partners LLC, AMT, Series B, 5.00%, 12/31/38 | 180,000 | | 192,254 |
| | Purple Line Transit Partners LLC, AMT, Series B, 5.00%, 6/30/39 | 410,000 | | 436,376 |
| b | Town of La Plata MD, Heritage Green Special Taxing District, 5.75%, 2/15/35 | 680,000 | | 694,888 |
| | | | | 1,933,198 |
| | Massachusetts 1.3% | | | |
| | Massachusetts Development Finance Agency, | | | |
| | b CHF Merrimack Inc, Series A, 5.00%, 7/01/44 | 1,000,000 | | 1,051,137 |
| | a Children’s Hospital Corp Obligated Group, Refunding, Series U-1, VRDN, 3.80%, 3/01/48 | 1,000,000 | | 1,000,000 |
| | Foxborough Regional Charter School, Refunding, 5.00%, 7/01/27 | 60,000 | | 61,072 |
| | Salem Community Corp Obligated Group, Refunding, 5.00%, 1/01/28 | 200,000 | | 201,955 |
| franklintempleton.com | Semi-Annual Report | 14 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin Dynamic Municipal Bond ETF (continued)
| | | Principal Amount* | | Value |
| | Municipal Bonds (continued) | | | |
| | Massachusetts (continued) | | | |
| | Massachusetts Educational Financing Authority, AMT, Series B, 4.25%, 7/01/44 | 500,000 | | $ 493,913 |
| a | Massachusetts Health & Educational Facilities Authority, Baystate Total Home Care Inc, Series K, 3.80%, 7/01/39 | 1,300,000 | | 1,300,000 |
| | | | | 4,108,077 |
| | Michigan 2.1% | | | |
| | City of Detroit, | | | |
| | Series A, 5.00%, 4/01/35 | 350,000 | | 381,769 |
| | Series C, 6.00%, 5/01/43 | 375,000 | | 431,933 |
| | Grand Rapids Economic Development Corp., | | | |
| | Michigan Christian Home Obligated Group, Refunding, 4.00%, 11/01/27 | 285,000 | | 284,011 |
| | Michigan Christian Home Obligated Group, Refunding, Series A, 4.25%, 11/01/38 | 45,000 | | 43,064 |
| b | Kalamazoo Economic Development Corp., Friendship Village of Kalamazoo Obligated Group, Refunding, 5.00%, 8/15/31 | 110,000 | | 108,797 |
| | Michigan Finance Authority, | | | |
| | Lawrence Technological University Obligated Group, Refunding, 4.00%, 2/01/27 | 145,000 | | 144,126 |
| | Lawrence Technological University Obligated Group, Refunding, 4.00%, 2/01/32 | 285,000 | | 276,276 |
| | Provident Group - HFH Energy LLC, 4.125%, 2/29/44 | 870,000 | | 865,313 |
| | University of Detroit Mercy Obligated Group, 5.25%, 11/01/35 | 800,000 | | 868,363 |
| | University of Detroit Mercy Obligated Group, Refunding, 5.25%, 11/01/39 | 500,000 | | 534,447 |
| | Michigan Strategic Fund, | | | |
| | I-75 Improvement Project, AMT, 5.00%, 12/31/33 | 50,000 | | 52,401 |
| | Improvement Project-P3, AMT, 4.125%, 6/30/35 | 620,000 | | 627,000 |
| | State of Michigan Department of Transportation, AMT, 5.00%, 6/30/48 | 100,000 | | 102,591 |
| a | University of Michigan, VRDN, Series D-1, 3.80%, 12/01/24 | 2,125,000 | | 2,125,000 |
| | | | | 6,845,091 |
| | Minnesota 0.7% | | | |
| a | City of Minneapolis, Fairview Health Services Obligated Group, VRDN, Series C, 3.95%, 11/15/48 | 800,000 | | 800,000 |
| | Duluth Economic Development Authority, Benedictine Health System Obligated Group, Refunding, 4.00%, 7/01/31 | 125,000 | | 120,965 |
| a | Minnesota Municipal Gas Agency, VRDN, Series B, 1 day USD SOFR + 1.00%, 4.236%, 12/01/52 | 1,400,000 | | 1,404,121 |
| | | | | 2,325,086 |
| | Mississippi 0.6% | | | |
| b | Mississippi Development Bank, Magnolia Regional Health Center, Refunding, 5.00%, 10/01/31 | 150,000 | | 156,218 |
| | Mississippi Home Corp., | | | |
| | b Patriot Services Group Obligated Group, Series 2021D-8, 3.50%, 6/01/33 | 100,000 | | 87,965 |
| | Patriot Services Group Pascagoula Portfolio II Obligated Group, Series 2021A, 3.65%, 6/01/33 | 100,000 | | 89,009 |
| | Series C, 4.65%, 12/01/44 | 1,500,000 | | 1,542,008 |
| | | | | 1,875,200 |
| | Missouri 0.7% | | | |
| | City of Maryland Heights, Westport Plaza Redevelopment, 3.625%, 11/01/31 | 25,000 | | 25,074 |
| | Health & Educational Facilities Authority of the State of Missouri, | | | |
| | a Washington University, Series B, VRDN, 3.80%, 2/15/33 | 900,000 | | 900,000 |
| | a Washington University, Series B, VRDN, 3.95%, 3/01/40 | 200,000 | | 200,000 |
| | Missouri Housing Development Commission, First Place Homeownership Loan Series E, 4.125%, 11/01/39 | 1,000,000 | | 1,026,963 |
| | | | | 2,152,037 |
| | Nebraska 0.3% | | | |
| | Nebraska Investment Finance Authority, Series E, 4.50%, 9/01/44 | 1,000,000 | | 1,018,451 |
| 15 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin Dynamic Municipal Bond ETF (continued)
| | | Principal Amount* | | Value |
| | Municipal Bonds (continued) | | | |
| | Nevada 1.4% | | | |
| | City of Las Vegas Special Improvement District No. 611, Special Improvement District No 611, Special Assessment, 3.50%, 6/01/31 | 160,000 | | $ 150,530 |
| | City of Las Vegas Special Improvement District No. 816, Special Assessment, 2.50%, 6/01/29 | 200,000 | | 186,118 |
| b | City of North Las Vegas, NV Special Improvement District No 66, Special Assessment, 5.00%, 6/01/28 | 140,000 | | 144,740 |
| | Nevada Housing Division, Series E, 4.10%, 10/01/39 | 1,000,000 | | 1,026,175 |
| | Reno-Tahoe Airport Authority, | | | |
| | Reno-Tahoe Airport Authority, AMT, Series A, 5.25%, 7/01/42 | 655,000 | | 719,605 |
| | Reno-Tahoe Airport Authority, AMT, Series A, 5.25%, 7/01/43 | 1,000,000 | | 1,094,037 |
| a | State of Nevada Department of Business & Industry, DesertXpress Enterprises LLC, AMT, VRDN, A-4, 8.125%, 1/01/50 | 750,000 | | 772,441 |
| | Tahoe-Douglas Visitors Authority, 5.00%, 7/01/31 | 250,000 | | 268,416 |
| | | | | 4,362,062 |
| | New Jersey 0.4% | | | |
| | New Jersey Economic Development Authority, | | | |
| | a American Water Co Inc, AMT, Refunding, VRDN, 2.20%, 10/01/39 | 100,000 | | 89,816 |
| | Provident Group-Kean Properties LLC, 5.00%, 7/01/32 | 100,000 | | 101,608 |
| | Provident Group-Kean Properties LLC, 5.00%, 7/01/37 | 50,000 | | 50,430 |
| | United Airlines Inc, 5.25%, 9/15/29 | 215,000 | | 215,251 |
| | New Jersey Higher Education Student Assistance Authority, AMT, Series B, 4.00%, 12/01/44 | 1,000,000 | | 976,539 |
| | | | | 1,433,644 |
| | New Mexico 0.2% | | | |
| | New Mexico Mortgage Finance Authority, Series E, 4.125%, 9/01/39 | 700,000 | | 718,561 |
| | New York 6.3% | | | |
| a | City of New York, Series B3, 4.05%, 10/01/46 | 500,000 | | 500,000 |
| | Metropolitan Transportation Authority, | | | |
| | Green Bond, Series 2017C-1, 5.00%, 11/15/28 | 500,000 | | 538,148 |
| | Green Bond, Series 2017C-1, 5.00%, 11/15/30 | 530,000 | | 566,620 |
| | a Series D-2, VRDN, 3.75%, 11/01/35 | 200,000 | | 200,000 |
| a | Nassau County Industrial Development Agency, Cold Spring Harbor Laboratory, Refunding, VRDN, 4.05%, 1/01/34 | 1,700,000 | | 1,700,000 |
| | New York City Municipal Water Finance Authority, | | | |
| | a New York City Water & Sewer System, Series BB, 4.00%, 6/15/49 | 300,000 | | 300,000 |
| | a VRDN, 4.05%, 6/15/33 | 4,675,000 | | 4,675,000 |
| | New York State Dormitory Authority, St Joseph’s College, 5.00%, 7/01/30 | 65,000 | | 66,954 |
| a,b | New York State Environmental Facilities Corp., Casella Waste Systems Inc, AMT, VRDN, 5.125%, 9/01/50 | 250,000 | | 263,225 |
| | New York Transportation Development Corp., | | | |
| | American Airlines Inc, AMT, Refunding, 2.25%, 8/01/26 | 60,000 | | 58,520 |
| | American Airlines Inc, AMT, Refunding, 3.00%, 8/01/31 | 210,000 | | 198,389 |
| | American Airlines Inc, AMT, Refunding, 5.25%, 8/01/31 | 70,000 | | 74,996 |
| | Delta Air Lines Inc, AMT, 5.00%, 1/01/25 | 250,000 | | 250,726 |
| | Delta Air Lines Inc, AMT, 5.625%, 4/01/40 | 785,000 | | 853,731 |
| | Delta Air Lines Inc, AMT, 6.00%, 4/01/35 | 1,790,000 | | 2,025,669 |
| | Delta Air Lines, Inc, AMT, 4.00%, 1/01/36 | 1,490,000 | | 1,490,827 |
| | Delta Air Lines, Inc, AMT, 5.00%, 10/01/40 | 4,300,000 | | 4,464,144 |
| | JFK NTO LLC, AMT, 5.25%, 6/30/43 | 500,000 | | 541,074 |
| | JFK NTO LLC, AMT, 5.50%, 6/30/38 | 250,000 | | 278,015 |
| b | Oneida Indian Nation of New York, Series B, 6.00%, 9/01/43 | 250,000 | | 278,120 |
| | Suffolk Regional Off-Track Betting Co., 5.75%, 12/01/44 | 1,000,000 | | 1,050,491 |
| | | | | 20,374,649 |
| franklintempleton.com | Semi-Annual Report | 16 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin Dynamic Municipal Bond ETF (continued)
| | | Principal Amount* | | Value |
| | Municipal Bonds (continued) | | | |
| | North Carolina 0.3% | | | |
| a | Charlotte-Mecklenburg Hospital Authority, Atrium Health Obligated Group, Refunding, Series B, VRDN, 4.00%, 1/15/38 | 730,000 | | $ 730,000 |
| | North Carolina Medical Care Commission, United Methodist Retirement Homes Inc Obligated Group, 4.25%, 10/01/28 | 350,000 | | 353,451 |
| | | | | 1,083,451 |
| | North Dakota 2.0% | | | |
| | City of Grand Forks, | | | |
| | Altru Health System Obligated Group, Refunding, 4.00%, 12/01/38 | 2,300,000 | | 2,205,171 |
| | Altru Health System Obligated Group, Refunding, 5.00%, 12/01/31 | 1,300,000 | | 1,360,784 |
| | City of Horace, | | | |
| | Refunding, Series B, 5.125%, 7/01/25 | 500,000 | | 500,418 |
| | Series B, 4.85%, 8/01/26 | 1,000,000 | | 1,004,383 |
| | County of Burleigh, University of Mary, 5.10%, 4/15/36 | 250,000 | | 251,721 |
| | North Dakota Housing Finance Agency, Series C, 4.65%, 7/01/44 | 1,000,000 | | 1,030,782 |
| | | | | 6,353,259 |
| | Ohio 3.5% | | | |
| | Akron Bath Copley Joint Township Hospital District, Summa Health System Obligated Group, Refunding, 4.00%, 11/15/33 | 550,000 | | 551,449 |
| | Columbus Metropolitan Housing Authority, | | | |
| | Cobblestone Manor Project, 4.625%, 8/01/42 | 2,220,000 | | 2,280,111 |
| | Waldren Woods project, 4.00%, 6/01/34 | 500,000 | | 506,469 |
| a | County of Allen Hospital Facilities Revenue, Bon Secours Mercy Health, Inc., Series C, 4.15%, 6/01/34 | 500,000 | | 500,000 |
| | County of Cuyahoga, Eliza Jennings Obligated Group, Refunding, 5.00%, 5/15/32 | 505,000 | | 511,503 |
| | County of Franklin, | | | |
| | Ohio Living Obligated Group, Refunding, 4.00%, 7/01/33 | 200,000 | | 197,952 |
| | Ohio Living Obligated Group, Series B, 4.00%, 7/01/28 | 225,000 | | 227,176 |
| | Wesley Communities Obligated Group, Refunding, 5.00%, 11/15/30 | 100,000 | | 103,673 |
| | Franklin County Convention Facilities Authority, Hotel Project Revenue, 5.00%, 12/01/30 | 100,000 | | 103,723 |
| a | Ohio Air Quality Development Authority, Duke Energy Corp, AMT, Refunding, VRDN, 4.25%, 11/01/39 | 2,280,000 | | 2,322,317 |
| | Ohio Higher Educational Facility Commission, Cleveland Institute of Music/The, 5.00%, 12/01/32 | 300,000 | | 322,858 |
| | Ohio Housing Finance Agency, | | | |
| | Middletown Phase I Project, 8.00%, 8/01/34 | 100,000 | | 104,339 |
| | Series B, 4.50%, 9/01/44 | 1,500,000 | | 1,527,677 |
| a | Ohio Water Development Authority Water Pollution Control Loan Fund, Series C, VRDN, 3.80%, 12/01/54 | 200,000 | | 200,000 |
| | State of Ohio, | | | |
| | Premier Health Partners Obligated Group, Refunding, 4.00%, 11/15/39 | 775,000 | | 739,818 |
| | Premier Health Partners Obligated Group, Refunding, 5.00%, 11/15/35 | 1,000,000 | | 1,044,635 |
| | | | | 11,243,700 |
| | Oregon 0.7% | | | |
| a | Oregon State Facilities Authority, 3.80%, 8/01/34 | 2,400,000 | | 2,400,000 |
| | Pennsylvania 2.2% | | | |
| | Allegheny County Higher Education Building Authority, Robert Morris University, 5.00%, 10/15/26 | 70,000 | | 70,083 |
| | Allentown Neighborhood Improvement Zone Development Authority, | | | |
| | b City Center Project, 5.00%, 5/01/28 | 100,000 | | 103,811 |
| | b City Center Project, 5.25%, 5/01/42 | 200,000 | | 203,328 |
| | Berks County Municipal Authority, | | | |
| | Series A, 6.00%, 6/30/34 | 2,000 | | 2,175 |
| | Series A, 8.00%, 6/30/34 | 80,000 | | 81,884 |
| | Series A, 8.00%, 6/30/34 | 4,000 | | 4,000 |
| | Series A-2A, 6.00%, 6/30/34 | 40,000 | | 43,493 |
| 17 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin Dynamic Municipal Bond ETF (continued)
| | | Principal Amount* | | Value |
| | Municipal Bonds (continued) | | | |
| | Pennsylvania (continued) | | | |
| | Series A-3, 5.00%, 6/30/39 | 567,000 | | $ 562,084 |
| | Series B-1, 6/30/44 | 283,000 | | 180,429 |
| | Chester County Industrial Development Authority, Avon Grove Charter School, 5.00%, 3/01/27 | 1,000,000 | | 1,027,734 |
| | Franklin County Industrial Development Authority, Menno-Haven Inc Obligated Group, Refunding, 5.00%, 12/01/28 | 100,000 | | 103,487 |
| a | General Authority of Southcentral Pennsylvania, WellSpan Health Obligated Group, Refunding, VRDN, Series E, 3.90%, 6/01/35 | 500,000 | | 500,000 |
| | Pennsylvania Economic Development Financing Authority, | | | |
| | Philadelphia Water Department, Refunding, 4.00%, 1/01/31 | 485,000 | | 487,223 |
| | a Talen Energy Supply LLC, Refunding, VRDN, 5.25%, 12/01/38 | 1,000,000 | | 1,019,199 |
| | UPMC Obligated Group, Series 2017A, 3.375%, 11/15/33 | 150,000 | | 150,209 |
| | Pennsylvania Economic Development Financing Authority Parking System Revenue, Refunding, 5.00%, 1/01/26 | 500,000 | | 512,547 |
| | Pennsylvania Housing Finance Agency, Series 146A, 4.50%, 10/01/44 | 1,500,000 | | 1,529,404 |
| d | Philadelphia Authority for Industrial Development, Beech International LLC, Series A, 5.625%, 6/15/42 | 100,000 | | 85,000 |
| | Redevelopment Authority of the City of Philadelphia, Social Bond, Series 2021A, 2.799%, 9/01/33 | 500,000 | | 442,558 |
| | | | | 7,108,648 |
| | Puerto Rico 1.6% | | | |
| | Commonwealth of Puerto Rico, | | | |
| | Series 2021A1, 4.00%, 7/01/33 | 359,628 | | 360,315 |
| | Series 2021A1, 4.00%, 7/01/35 | 139,457 | | 139,319 |
| | Series 2021A1, 4.00%, 7/01/37 | 35,173 | | 34,948 |
| | Series 2021A1, 4.00%, 7/01/41 | 59,404 | | 57,475 |
| | Series 2021A1, 5.625%, 7/01/27 | 113,932 | | 118,999 |
| | Series 2021A1, 5.625%, 7/01/29 | 606,556 | | 655,362 |
| | Series 2021A1, 5.75%, 7/01/31 | 1,432,319 | | 1,593,943 |
| | a VRDN, 11/01/43 | 42,678 | | 27,527 |
| | e zero cpn., 7/01/33 | 12,391 | | 8,427 |
| | GDB Debt Recovery Authority of Puerto Rico, 7.50%, 8/20/40 | 1,539,785 | | 1,501,290 |
| | HTA HRRB Custodial Trust, 5.25%, 7/01/32 | 38,487 | | 38,298 |
| | Puerto Rico Electric Power Authority, | | | |
| | Refunding, 5.25%, 7/01/32 | 175,000 | | 174,035 |
| | Refunding, Series V, 5.25%, 7/01/27 | 170,000 | | 170,589 |
| | Puerto Rico Industrial Tourist Educational Medical & Environmental Control Facilities Financing Authority, | | | |
| | Hospital Auxilio Mutuo Obligated Group, Refunding, 4.00%, 7/01/37 | 100,000 | | 97,104 |
| | Hospital Auxilio Mutuo Obligated Group, Refunding, 4.00%, 7/01/39 | 100,000 | | 96,380 |
| | Hospital Auxilio Mutuo Obligated Group, Refunding, 4.00%, 7/01/40 | 100,000 | | 96,011 |
| | | | | 5,170,022 |
| | South Carolina 1.7% | | | |
| | County of Dorchester, SC Summers Corner Improvement District, Special Assessment, 4.50%, 10/01/33 | 415,000 | | 418,615 |
| b | County of Richland, Village at Sandhill Improvement District, Special Assessment, Refunding, 3.00%, 11/01/26 | 100,000 | | 96,267 |
| | Patriots Energy Group Financing Agency, | | | |
| | a VRDN, Refunding, 1 day USD SOFR + 1.90%, 5.143%, 2/01/54 | 50,000 | | 51,944 |
| | a VRDN, Series A1, 5.25%, 10/01/54 | 4,000,000 | | 4,345,836 |
| | South Carolina Jobs-Economic Development Authority, | | | |
| | AHPC Vista Towers 2021 LLC, 3.65%, 12/01/36 | 100,000 | | 88,387 |
| | b Columbia Portfolio Obligated Group, 6/01/37 | 315,000 | | 257,570 |
| | b FAH Pelham LLC, Series B, 7.50%, 8/01/47 | 150,000 | | 149,977 |
| | b Orchard Pk and Willowbrook Apartment, 3.65%, 12/01/36 | 100,000 | | 88,387 |
| | | | | 5,496,983 |
| franklintempleton.com | Semi-Annual Report | 18 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin Dynamic Municipal Bond ETF (continued)
| | | Principal Amount* | | Value |
| | Municipal Bonds (continued) | | | |
| | South Dakota 0.3% | | | |
| | South Dakota Housing Development Authority, Refunding, Series C, 4.50%, 11/01/44 | 1,000,000 | | $ 1,015,948 |
| | Tennessee 5.3% | | | |
| | Chattanooga Health Educational & Housing Facility Board, CommonSpirit Health Obligated Group, Series A, 4.00%, 8/01/38 | 1,125,000 | | 1,137,582 |
| | Cleveland Housing Authority, | | | |
| | b Cleveland Forward Phase One LLC, 6.25%, 4/01/41 | 300,000 | | 308,277 |
| | b Cleveland Forward Phase Two LLC, 6.25%, 4/01/41 | 100,000 | | 102,759 |
| | Knox County Health Educational & Housing Facility Board, 5.00%, 7/01/38 | 425,000 | | 475,983 |
| a | Shelby County Health Educational & Housing Facilities Board, Methodist Le Bonheur Healthcare Obligated Group, Series A, VRDN, 4.05%, 6/01/42 | 2,800,000 | | 2,800,000 |
| a | Tennergy Corp., Series A, 5.50%, 10/01/53 | 5,090,000 | | 5,555,361 |
| a | Tennessee Energy Acquisition Corp., Series A, 5.00%, 5/01/52 | 6,310,000 | | 6,844,754 |
| | | | | 17,224,716 |
| | Texas 10.9% | | | |
| b | Arlington Higher Education Finance Corp., BASIS Texas Charter Schools Inc, 4.50%, 6/15/44 | 830,000 | | 821,391 |
| | Cedar Port Navigation & Improvement District, | | | |
| | 4.00%, 9/01/37 | 675,000 | | 679,946 |
| | 4.00%, 9/01/38 | 1,450,000 | | 1,454,307 |
| | City of Anna, | | | |
| | b Hurricane Creek Public Improvement District Impt Area No 2, Special Assessment, 5.00%, 9/01/28 | 432,000 | | 438,672 |
| | b Meadow Vista Public Improvement District Improvement Area 1, Special Assessment, 4.875%, 9/15/31 | 270,000 | | 274,552 |
| | City of Aubrey, Jackson Ridge Public Improvement District, Special Assessment, 5.00%, 9/01/25 | 505,000 | | 513,068 |
| b | City of Austin, Whisper Valley Public Improvement District Improvement Area 2, Special Assessment, 4.75%, 11/01/29 | 164,000 | | 166,229 |
| b | City of Boyd, Public Improvement District No 1 Improvement Area No 1, Special Assessment, 4.25%, 9/15/30 | 107,000 | | 108,908 |
| | City of Celina, | | | |
| | b Celina Hills Public Improvement District, Special Assessment, 4.375%, 9/01/27 | 50,000 | | 50,124 |
| | b Chalk Hill Public Improvement District No 2, Special Assessment, 5.00%, 9/01/30 | 185,000 | | 187,726 |
| | b Creeks of Legacy Public Improvement District Phase No 3, Special Assessment, 3.625%, 9/01/30 | 100,000 | | 94,412 |
| | b Edgewood Creek Public Improvement District, Special Assessment, 3.75%, 9/01/31 | 180,000 | | 171,911 |
| | b Pravin Public Improvement District, Special Assessment, 6.50%, 9/01/43 | 103,000 | | 106,176 |
| | b Sutton Fields II Public Improvement District, Special Assessment, 2.875%, 9/01/27 | 50,000 | | 47,771 |
| | b The Parks at Wilson Creek Public Improvement District, Special Assessment, 3.25%, 9/01/31 | 110,000 | | 102,771 |
| | b Wells North Public Improvement District, Special Assessment, 3.25%, 9/01/30 | 180,000 | | 168,940 |
| b | City of Crandall, Cartwright Ranch Public Improvement District Major Impt Are, Special Assessment, 4.75%, 9/15/31 | 100,000 | | 101,278 |
| | City of Fate, | | | |
| | b Monterra Public Improvement District, Special Assessment, 2.75%, 8/15/26 | 14,000 | | 13,624 |
| | b Williamsburg East Public Improvement District, Special Assessment, 3.375%, 8/15/30 | 145,000 | | 134,753 |
| | City of Horseshoe Bay, Escondido Public Improvement District, Special Assessment, Refunding, 3.00%, 10/01/30 | 138,000 | | 126,616 |
| b | City of Hutto, Emory Crossing Public Improvement District Impt Area No 2, Special Assessment, 4.50%, 9/01/30 | 270,000 | | 276,065 |
| b | City of Justin, Timberbrook Public Improvement District No. 2 Area No. 1, Special Assessment, 4.50%, 9/01/31 | 153,000 | | 156,310 |
| 19 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin Dynamic Municipal Bond ETF (continued)
| | | Principal Amount* | | Value |
| | Municipal Bonds (continued) | | | |
| | Texas (continued) | | | |
| | City of Kyle, | | | |
| | b 6 Creeks Public Improvement District Improvement Area No 4, Special Assessment, 4.50%, 9/01/33 | 550,000 | | $ 560,548 |
| | Kyle 57 Public Improvement District, Series 2022, 4.75%, 9/01/32 | 133,000 | | 135,962 |
| | b Limestone Creek Public Improvement District Improvement Area #1, Special Assessment, 5.50%, 9/01/44 | 550,000 | | 564,310 |
| | b Plum Creek North Public Improvement District, Special Assessment, 4.375%, 9/01/32 | 215,000 | | 213,075 |
| | b Southwest Kyle Public Improvement District No 1 Impt Area No 2, Special Assessment, 5.75%, 9/01/30 | 100,000 | | 103,264 |
| | City of Lago Vista, | | | |
| | b Tessera on Lake Travis Public Improvement District, Special Assessment, Refunding, 5.00%, 9/01/30 | 115,000 | | 108,212 |
| | Tessera on Lake Travis Public Impt Dist Impt Area No 1, Special Assessment, Refunding, 3.125%, 9/01/30 | 130,000 | | 121,992 |
| | City of Lavon, | | | |
| | b Lakepointe Public Improvement District, Special Assessment, 5.25%, 9/15/28 | 307,000 | | 312,199 |
| | b Lakepointe Public Improvement District, Special Assessment, 5.875%, 9/15/42 | 455,000 | | 471,958 |
| | City of Leander, Oak Creek Public Improvement District, Special Assessment, Refunding, 3.25%, 9/01/32 | 100,000 | | 92,616 |
| b | City of Liberty Hill, Summerlyn West Public Improvement District, Special Assessment, 3.125%, 9/01/30 | 75,000 | | 71,223 |
| b | City of Manor, Manor Heights Public Improvement District Area No 3, Special Assessment, 5.25%, 9/15/43 | 200,000 | | 202,915 |
| b | City of Marble Falls, Thunder Rock Public Improvement District Impt Area 2A, Special Assessment, 6.375%, 9/01/44 | 1,004,000 | | 1,009,685 |
| b | City of Mclendon-Chisholm, Sonoma Public Improvement District, Special Assessment, 5.375%, 9/15/32 | 155,000 | | 159,283 |
| | City of Mesquite, | | | |
| | b Heartland Town Center Public Improvement District Phase 2, Special Assessment, 4.00%, 9/01/30 | 109,000 | | 110,310 |
| | b Solterra Public Improvement District Improvement Area C-1, Special Assessment, 5.375%, 9/01/43 | 102,000 | | 104,745 |
| b,c | City of Oak Point, Chaparral Park Public Improvement District Impt Area No 1, Special Assessment Area, 4.25%, 9/15/31 | 309,000 | | 308,915 |
| | City of Pilot Point, | | | |
| | b Creekview Public Improvement District, Special Assessment, Series 2022, 5.25%, 9/15/32 | 150,000 | | 154,119 |
| | b Creekview Public Improvement District, Special Assessment, Series 2022, 5.75%, 9/15/32 | 145,000 | | 147,980 |
| | City of Princeton, | | | |
| | b Winchester Crossing Public Improvement District No 3, Special Assessment, 4.375%, 9/01/31 | 319,000 | | 320,558 |
| | b Winchester Public Improvement District, Special Assessment, 2.875%, 9/01/31 | 100,000 | | 90,132 |
| | b Winchester Public Improvement District, Special Assessment, 3.25%, 9/01/30 | 100,000 | | 93,718 |
| | City of Royse City, | | | |
| | b Clearview Ranch Public Impt Dist South Zone Impt Area 1, Special Assessment, Series 2024, 5.25%, 9/15/44 | 397,000 | | 399,712 |
| | b Creekshaw Public Improvement District, Special Assessment, 3.125%, 9/15/25 | 120,000 | | 118,625 |
| | City of Sachse, | | | |
| | b Sachse Public Improvement District No 1 Improvement Area No 1, Special Assessment, 5.00%, 9/15/28 | 202,000 | | 206,914 |
| | b Sachse Public Improvement District No 1 Improvement Area No 1, Special Assessment, 5.625%, 9/15/42 | 360,000 | | 373,549 |
| | b Sachse Public Improvement District No 1, Special Assessment, 6.00%, 9/15/28 | 100,000 | | 102,290 |
| | b TX Sachse Public Improvement District No 1, Special Assessment, 6.875%, 9/15/42 | 310,000 | | 324,866 |
| | City of Tomball, | | | |
| | b Raburn Reserve Public Improvement District Area No 2, Special Assessment, 4.875%, 9/15/33 | 145,000 | | 148,325 |
| | b Raburn Reserve Public Improvement District, Special Assessment, 3.375%, 9/15/30 | 100,000 | | 94,319 |
| franklintempleton.com | Semi-Annual Report | 20 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin Dynamic Municipal Bond ETF (continued)
| | | Principal Amount* | | Value |
| | Municipal Bonds (continued) | | | |
| | Texas (continued) | | | |
| b | City of Uhland, Watermill Public Improvement District, Special Assessment, 5.75%, 9/01/27 | 140,000 | | $ 142,451 |
| | County of Hays, | | | |
| | b La Cima Public Improvement District Neighborhood Impt Area 3, Special Assessment, 4.75%, 9/15/27 | 326,000 | | 328,690 |
| | b La Cima Public Improvement District Neighborhood Impt Area 3, Special Assessment, 4.875%, 9/15/32 | 435,000 | | 441,408 |
| | b La Cima Public Improvement District, Special Assessment, 3.25%, 9/15/30 | 150,000 | | 138,523 |
| | b Special Assessment Area, 5.50%, 9/15/42 | 200,000 | | 204,461 |
| c | East Montgomery County Municipal Utility District No. 5, 4.00%, 12/01/39 | 1,140,000 | | 1,142,766 |
| | EP Royal Estates PFC, 4.25%, 10/01/39 | 1,000,000 | | 998,395 |
| | Fulshear Municipal Utility District No. 3A, 4.25%, 9/01/41 | 1,005,000 | | 1,012,076 |
| | Harris County Municipal Utility District No. 171, | | | |
| | 4.75%, 12/01/40 | 1,215,000 | | 1,273,537 |
| | 6.75%, 12/01/26 | 1,015,000 | | 1,087,659 |
| | Harris County Municipal Utility District No. 502, 4.75%, 9/01/37 | 1,060,000 | | 1,112,356 |
| | Harris County Municipal Utility District No. 540, 5.375%, 9/01/45 | 145,000 | | 146,978 |
| | Harris-Waller Counties Municipal Utility District No. 4, | | | |
| | 5.00%, 11/01/36 | 520,000 | | 529,027 |
| | 5.00%, 11/01/38 | 120,000 | | 121,026 |
| | 5.50%, 11/01/44 | 440,000 | | 446,680 |
| | Lakes Fresh Water Supply District of Denton County, 4.375%, 9/01/42 | 1,350,000 | | 1,377,671 |
| | Matagorda County Navigation District No. 1, CenterPoint Energy Inc, Refunding, 5.125%, 11/01/28 | 1,000,000 | | 1,050,270 |
| | New Hope Cultural Education Facilities Finance Corp., | | | |
| | CHF-Collegiate Housing College Station I LLC, 5.00%, 4/01/29 | 100,000 | | 100,083 |
| | CHF-Collegiate Housing Corpus Christi II LLC, 5.00%, 4/01/31 | 30,000 | | 31,037 |
| | NCCD-College Station Properties LLC, Series A, 5.00%, 7/01/47 | 135,000 | | 135,000 |
| | Wesleyan Homes Obligated Group, Refunding, 4.00%, 1/01/29 | 100,000 | | 96,690 |
| | North Parkway Municipal Management District No. 1, | | | |
| | b Legacy Hills Public Improvement District, Special Assessment, 3.625%, 9/15/31 | 50,000 | | 47,615 |
| | b Major Improvements Project, Special Assessment, 4.25%, 9/15/31 | 152,000 | | 150,966 |
| | Northlake Municipal Management District No. 1, 5.00%, 3/01/40 | 925,000 | | 960,360 |
| b | Northwood Municipal Utility District No. 1, Refunding, 4.00%, 8/01/31 | 250,000 | | 250,383 |
| c | Sienna Municipal Utility District No. 6, 4.125%, 9/01/41 | 1,105,000 | | 1,102,985 |
| | South Manvel Development Authority, City of Manvel TX Tax Increment Reinvestment Zone Number 3, 5.00%, 4/01/38 | 275,000 | | 279,593 |
| | Texas Municipal Gas Acquisition & Supply Corp. III, Refunding, 5.00%, 12/15/32 | 2,270,000 | | 2,485,156 |
| a | Texas Municipal Gas Acquisition & Supply Corp. IV, Series B, 5.50%, 1/01/54 | 2,500,000 | | 2,844,920 |
| b | Town of Providence Village, Foree Ranch Public Improvement Dist Impt Area 1, Special Assessment, Series C, 4.375%, 9/01/31 | 255,000 | | 256,832 |
| | Travis County Municipal Utility District No. 22, | | | |
| | Series A, 5.75%, 9/01/38 | 315,000 | | 321,879 |
| | Series B, 6.00%, 9/01/42 | 455,000 | | 464,382 |
| | Viridian Municipal Management District, | | | |
| | 5.00%, 12/01/25 | 100,000 | | 102,113 |
| | Special Assessment, 2.875%, 12/01/30 | 100,000 | | 90,331 |
| | Viridian Public Improvement District, Special Assessment, 2.375%, 12/01/25 | 27,000 | | 26,361 |
| | Walden Pond Fresh Water Supply District, | | | |
| | 6.00%, 9/01/32 | 160,000 | | 165,390 |
| | 6.25%, 9/01/47 | 200,000 | | 206,118 |
| | | | | 35,094,037 |
| | Utah 0.2% | | | |
| | Military Installation Development Authority, Series 2021A-2, 4.00%, 6/01/36 | 250,000 | | 235,447 |
| b | Utah Charter School Finance Authority, Wallace Stegner Academy, Series 2022A, 5.25%, 6/15/32 | 230,000 | | 239,401 |
| 21 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin Dynamic Municipal Bond ETF (continued)
| | | Principal Amount* | | Value |
| | Municipal Bonds (continued) | | | |
| | Utah (continued) | | | |
| | Utah Infrastructure Agency, 5.00%, 10/15/32 | 250,000 | | $ 267,942 |
| | | | | 742,790 |
| | Virginia 2.0% | | | |
| a | Albemarle County Economic Development Authority, Sentara Healthcare Obligated Group, Refunding, Series B, VRDN, 3.80%, 10/01/48 | 200,000 | | 200,000 |
| b | Peninsula Town Center Community Development Authority, Special Assessment, Refunding, 4.50%, 9/01/28 | 100,000 | | 101,702 |
| | Virginia Beach Development Authority, Westminster-Canterbury on Chesapeake Bay Obligated Group, 5.75%, 9/01/30 | 1,000,000 | | 1,042,082 |
| | Virginia Small Business Financing Authority, | | | |
| | National Senior Communities Inc Obligated Group, Refunding, Series A, 4.00%, 1/01/36 | 4,185,000 | | 4,183,036 |
| | a VRDN, 5.00%, 11/01/52 | 500,000 | | 500,140 |
| a | Winchester Economic Development Authority, Valley Health Obligated Group, Refunding, VRDN, Series B-1, 4.15%, 1/01/54 | 300,000 | | 300,000 |
| | | | | 6,326,960 |
| | Washington 1.3% | | | |
| | Jefferson County Public Hospital District No. 2, Refunding, Series A, 5.75%, 12/01/33 | 500,000 | | 506,548 |
| | Skagit County Public Hospital District No. 1, Refunding, 5.00%, 12/01/29 | 100,000 | | 102,054 |
| | Vancouver Housing Authority, Navalia and Alena Projects, 4.00%, 8/01/34 | 1,000,000 | | 1,015,353 |
| | Washington Health Care Facilities Authority, | | | |
| | b Fred Hutchinson Cancer Center Obligated Group, 3.00%, 12/01/34 | 125,000 | | 117,941 |
| | b Fred Hutchinson Cancer Center Obligated Group, 5.00%, 12/01/32 | 250,000 | | 276,109 |
| | Washington State Housing Finance Commission, | | | |
| | b eliseo Obligated Group, Series 2021A, 4.00%, 1/01/31 | 100,000 | | 95,510 |
| | Emerald Heights Project, Refunding, Series A, 5.00%, 7/01/38 | 1,300,000 | | 1,408,673 |
| | b Madison at Rivers Edge Apartments LLC, 3.65%, 1/01/37 | 100,000 | | 88,413 |
| | b Presbyterian Retirement Communities Northwest Obligated Group, Series 2019A, 5.00%, 1/01/34 | 100,000 | | 100,412 |
| | b Seattle Academy of Arts & Sciences, Refunding, 5.625%, 7/01/38 | 430,000 | | 478,119 |
| | b Spokane United Methodist Homes Obligated Group, 5.00%, 1/01/32 | 100,000 | | 101,098 |
| | | | | 4,290,230 |
| | West Virginia 0.4% | | | |
| | County of Ohio, Refunding, 5.25%, 6/01/44 | 1,000,000 | | 1,060,973 |
| a | West Virginia Economic Development Authority, Appalachian Power Co., VRDN, 3.75%, 12/01/42 | 250,000 | | 250,597 |
| | | | | 1,311,570 |
| | Wisconsin 1.8% | | | |
| | Public Finance Authority, | | | |
| | b Coral Academy of Science Reno, 5.375%, 6/01/37 | 670,000 | | 690,880 |
| | b Dominium Holdings I LLC, Series 1, 6.81%, 4/28/36 | 500,000 | | 513,121 |
| | b Estancia Valley Classical Academy, Refunding, 4.00%, 7/01/31 | 100,000 | | 92,804 |
| | b FAH Tree House LLC, Series B, 6.625%, 2/01/46 | 275,000 | | 257,859 |
| | b Friends Homes Obligated Group, Refunding, 4.00%, 9/01/29 | 100,000 | | 98,942 |
| | b Masonic & Eastern Star Home of NC Inc Obligated Group, Refunding, 4.00%, 3/01/27 | 35,000 | | 34,871 |
| | North East Carolina Preparatory School, Inc., Refunding, 4.25%, 6/15/34 | 800,000 | | 815,624 |
| | b Ocean Academy Charter School, 4.00%, 10/15/31 | 100,000 | | 94,580 |
| | b Series 2023-B, 7.125%, 7/25/34 | 500,000 | | 528,360 |
| | b Signature Preparatory, 5.00%, 6/15/31 | 115,000 | | 115,998 |
| | Triad Math & Science Academy Co, 4.00%, 6/15/30 | 335,000 | | 335,717 |
| | b UMA Education Inc, Refunding, 5.00%, 10/01/24 | 100,000 | | 100,000 |
| | b UMA Education Inc, Refunding, 5.00%, 10/01/29 | 600,000 | | 625,843 |
| | b Whitestone-Retirement Facilities, Refunding, 5.00%, 3/01/37 | 385,000 | | 389,318 |
| | a,b WV 2020 Holdings LLC Obligated Group, VRDN, 3.50%, 12/01/50 | 100,000 | | 86,166 |
| franklintempleton.com | Semi-Annual Report | 22 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin Dynamic Municipal Bond ETF (continued)
| | | Principal Amount* | | Value |
| | Municipal Bonds (continued) | | | |
| | Wisconsin (continued) | | | |
| | Wisconsin Health & Educational Facilities Authority, | | | |
| | a Froedtert ThedaCare Health Obligated Group, Refunding, Series A, VRDN, 3.90%, 4/01/35 | 335,000 | | $ 335,000 |
| | Wisconsin Masonic Home Obligated Group, 4.20%, 8/15/28 | 250,000 | | 252,125 |
| | Wisconsin Masonic Home Obligated Group, 5.50%, 8/15/44 | 305,000 | | 333,661 |
| | | | | 5,700,869 |
| | Total Municipal Bonds (Cost $308,322,934) | | | 317,181,118 |
| a | Senior Floating Rate Interests 0.3% | | | |
| | Household Products 0.1% | | | |
| | TBG Hillcrest Senior LP, 1 mo. USD Term SOFR + 1.55%, 6.802%, 8/01/24 | 372,332 | | 372,161 |
| | Real Estate Development 0.2% | | | |
| | Centennial Gardens LP, 1 mo. USD Term SOFR + 1.55%, 6.802%, 8/01/24 | 500,000 | | 501,650 |
| | Total Floating Rate Loans (Cost $872,332) | | | 873,811 |
| | Total Investments (Cost $312,580,491) 99.5% | | | 321,512,753 |
| | Other Assets, less Liabilities 0.5% | | | 1,507,523 |
| | Net Assets 100.0% | | | $ 323,020,276 |
| *The principal amount is stated in U.S. dollars unless otherwise indicated. |
| †Rounds to less than 0.1% of net assets. |
| aVariable rate security. The rate shown represents the yield at period end. |
| bSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At September 30, 2024, the value of was $50,880,211, representing 15.8% of net assets. |
| cSecurity purchased on a when-issued basis. See Note 1(d). |
| dDefaulted security or security for which income has been deemed uncollectible. See Note 8. |
| eThe security was issued on a discount basis with no stated coupon rate. |
See Abbreviations on page 171.
| 23 | Semi-Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
Franklin Templeton ETF Trust
Financial Highlights
Franklin Exponential Data ETF
| | Six Months Ended
September 30, 2024
(unaudited) | Year Ended March 31, | Period Ended March 31,
2021a |
| | 2024 | 2023 | 2022 |
| Per share operating performance | | | | | |
| (for a share outstanding throughout the period) | | | | | |
| Net asset value, beginning of period | $22.71 | $16.86 | $22.78 | $23.34 | $25.00 |
| Income from investment operationsb: | | | | | |
| Net investment income (loss)c | —d | 0.03 | (0.01) | (0.05) | (—)d |
| Net realized and unrealized gains (losses) | 1.03 | 5.82 | (5.91) | (0.51) | (1.66) |
| Total from investment operations | 1.03 | 5.85 | (5.92) | (0.56) | (1.66) |
| Net asset value, end of period | $23.74 | $22.71 | $16.86 | $22.78 | $23.34 |
| Total returne | 4.54% | 34.70% | (25.99)% | (2.40)% | (6.64)% |
| Ratios to average net assetsf | | | | | |
| Expenses before waiver and payments by affiliates | 0.50% | 0.50% | 0.50% | 1.73% | 5.95% |
| Expenses net of waiver and payments by affiliates | 0.49% | 0.49% | 0.50% | 0.38% | 0.25% |
| Net investment income (loss) | 0.01% | 0.16% | (0.07)% | (0.20)% | (0.07)% |
| Supplemental data | | | | | |
| Net assets, end of period (000’s) | $5,936 | $6,814 | $3,372 | $3,417 | $2,334 |
| Portfolio turnover rateg | 2.95%h | 6.63%h | 20.94%h | 49.72%h | 23.20%h |
| aFor the period January 12, 2021 (commencement of operations) to March 31, 2021. |
| bThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of Creation Unit Fund shares in relation to income earned and/or fluctuating fair value of the investments of the Fund. |
| cBased on average daily shares outstanding. |
| dAmount rounds to less than $0.01 per share. |
| eTotal return is not annualized for periods less than one year. Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. |
| fRatios are annualized for periods less than one year. |
| gPortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash ("Cash creations"). |
| hPortfolio turnover rate excluding cash creations was as follows: | 2.95% | 6.63% | 20.94% | 49.72% | 23.20% |
| franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Semi-Annual Report | 24 |
Franklin Templeton ETF Trust
Schedule of Investments, September 30, 2024 (unaudited)
Franklin Exponential Data ETF
| | | Country | Shares | | Value |
| | Common Stocks 97.9% | | | | |
| | Capital Markets 6.1% | | | | |
| | FactSet Research Systems, Inc. | United States | 190 | | $ 87,372 |
| | Moody’s Corp. | United States | 82 | | 38,916 |
| | MSCI, Inc. | United States | 186 | | 108,425 |
| | S&P Global, Inc. | United States | 245 | | 126,572 |
| | | | | | 361,285 |
| | Communications Equipment 4.8% | | | | |
| a | Arista Networks, Inc. | United States | 741 | | 284,410 |
| | Electrical Equipment 0.5% | | | | |
| | Vertiv Holdings Co., Class A | United States | 314 | | 31,240 |
| | Electronic Equipment, Instruments & Components 0.9% | | | | |
| a | Keysight Technologies, Inc. | United States | 346 | | 54,990 |
| | Entertainment 1.5% | | | | |
| a | Netflix, Inc. | United States | 121 | | 85,822 |
| | Interactive Media & Services 9.5% | | | | |
| | Alphabet, Inc., Class A | United States | 1,686 | | 279,623 |
| | Meta Platforms, Inc., Class A | United States | 497 | | 284,503 |
| | | | | | 564,126 |
| | IT Services 12.4% | | | | |
| | Accenture PLC, Class A | United States | 279 | | 98,621 |
| a | Akamai Technologies, Inc. | United States | 272 | | 27,458 |
| a | Cloudflare, Inc., Class A | United States | 1,488 | | 120,364 |
| a | Gartner, Inc. | United States | 282 | | 142,906 |
| a | Globant SA | United States | 97 | | 19,220 |
| a | MongoDB, Inc. | United States | 819 | | 221,417 |
| a | Snowflake, Inc., Class A | United States | 910 | | 104,523 |
| | | | | | 734,509 |
| | Media 2.2% | | | | |
| a | Trade Desk, Inc., Class A | United States | 1,200 | | 131,580 |
| | Professional Services 1.0% | | | | |
| | TransUnion | United States | 312 | | 32,666 |
| | Verisk Analytics, Inc. | United States | 104 | | 27,868 |
| | | | | | 60,534 |
| | Software 49.1% | | | | |
| a | Adobe, Inc. | United States | 41 | | 21,229 |
| a | Confluent, Inc., Class A | United States | 1,405 | | 28,634 |
| a | Crowdstrike Holdings, Inc., Class A | United States | 981 | | 275,141 |
| a | Datadog, Inc., Class A | United States | 2,331 | | 268,205 |
| a | Fair Isaac Corp. | United States | 182 | | 353,721 |
| a | Fortinet, Inc. | United States | 1,428 | | 110,741 |
| a | Gitlab, Inc., Class A | United States | 423 | | 21,801 |
| a | HubSpot, Inc. | United States | 167 | | 88,777 |
| | Microsoft Corp. | United States | 1,187 | | 510,766 |
| a | Monday.com Ltd. | United States | 631 | | 175,273 |
| a | Palo Alto Networks, Inc. | United States | 966 | | 330,179 |
| a | Qualys, Inc. | United States | 142 | | 18,241 |
| | Salesforce, Inc. | United States | 376 | | 102,915 |
| a | SentinelOne, Inc., Class A | United States | 3,211 | | 76,807 |
| a | ServiceNow, Inc. | United States | 397 | | 355,073 |
| | Trend Micro, Inc. | Japan | 1,508 | | 89,464 |
| a | Zscaler, Inc. | United States | 502 | | 85,812 |
| | | | | | 2,912,779 |
| 25 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin Exponential Data ETF (continued)
| | | Country | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | Specialized REITs 6.6% | | | | |
| | Crown Castle, Inc. | United States | 670 | | $ 79,482 |
| | Equinix, Inc. | United States | 272 | | 241,435 |
| | SBA Communications Corp. | United States | 293 | | 70,525 |
| | | | | | 391,442 |
| | Wireless Telecommunication Services 3.3% | | | | |
| | T-Mobile U.S., Inc. | United States | 962 | | 198,518 |
| | Total Common Stocks (Cost $4,723,785) | | | | 5,811,235 |
| | Total Investments before Short-Term Investments
(Cost $4,723,785) | | | | 5,811,235 |
| | Short-Term Investments 2.0% | | | | |
| | Money Market Funds 2.0% | | | | |
| b,c | Institutional Fiduciary Trust - Money Market Portfolio, 4.74% | United States | 119,199 | | 119,199 |
| | Total Short-Term Investments (Cost $119,199) | | | | 119,199 |
| | Total Investments (Cost $4,842,984) 99.9% | | | | 5,930,434 |
| | Other Assets, less Liabilities 0.1% | | | | 5,266 |
| | Net Assets 100.0% | | | | $ 5,935,700 |
| aNon-income producing. |
| bThe rate shown is the annualized seven-day effective yield at period end. |
| cSee Note 3(d) regarding investments in affiliated management investment companies. |
See Abbreviations on page 171.
| franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Semi-Annual Report | 26 |
Franklin Templeton ETF Trust
Financial Highlights
Franklin Focused Growth ETF*
| | Six Months Ended
September 30,
2024 (unaudited) | Period Ended
March 31,
2024† | Year Ended September 30, |
| | 2023 | 2022 | 2021 | 2020 | 2019 |
| Per share operating performance | | | | | | | |
| (for a share outstanding throughout the period) |
| Net asset value, beginning of period | $33.92 | $ 24.99 | $ 19.43 | $ 31.75 | $ 25.10 | $ 17.62 | $ 17.24 |
| Income from investment operationsa: | | | | | | | |
| Net investment income (loss)b | (0.02) | 0.02 | (0.04) | (0.13) | (0.16) | (0.09) | (0.06) |
| Net realized and unrealized gains (losses) | 3.39 | 8.91 | 5.60 | (12.01) | 7.02 | 8.66 | 0.52 |
| Total from investment operations | 3.37 | 8.93 | 5.56 | (12.14) | 6.86 | 8.57 | 0.46 |
| Less distributions from: | | | | | | | |
| Net investment income | — | — | — | — | — | — | (0.01) |
| Net realized gains | — | — | — | (0.18) | (0.21) | (1.09) | (0.07) |
| Total distributions | — | — | — | (0.18) | (0.21) | (1.09) | (0.08) |
| Net asset value, end of period | $37.29 | $33.92 | $24.99 | $19.43 | $31.75 | $25.10 | $17.62 |
| Total returnc | 9.94%d | 35.73%d | 28.55% | (38.44)% | 27.47% | 51.20% | 2.80% |
| Ratios to average net assetse | | | | | | | |
| Expenses before waiver and payments by affiliates | 0.55% | 0.63% | 1.11% | 1.12% | 1.12% | 2.04% | 2.41% |
| Expenses net of waiver and payments by affiliates | 0.55% | 0.61% | 0.85%f | 0.85%f | 0.85%f | 0.88% | 1.00% |
| Net investment income (loss) | (0.13)% | 0.14% | (0.18)% | (0.47)% | (0.53)% | (0.41)% | (0.36)% |
| Supplemental data | | | | | | | |
| Net assets, end of period (000’s) | $124,870 | $67,785 | $14,135 | $9,519 | $25,041 | $16,747 | $4,404 |
| Portfolio turnover rateg | 5.96%h | 9.87%h | 27.22% | 39.93% | 22.77% | 33.93% | 28.65% |
| †For the period October 1, 2023 through March 31, 2024. |
| *Effective after the market close on November 3, 2023, the Fund’s predecessor mutual fund, Franklin Focused Growth Fund, reorganized into this Fund (the “Reorganization”). See Note 1 in the Notes to Financial Statements for additional information about the Reorganization. |
| aThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of Creation Unit Fund shares in relation to income earned and/or fluctuating fair value of the investments of the Fund. |
| bBased on average daily shares outstanding. |
| cTotal return is not annualized for periods less than one year. Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. |
| dThe Fund adopted the performance of the predecessor mutual fund as the result of the Reorganization. Prior to the Reorganization, the Fund had not yet commenced operations. The returns shown for periods ending on or prior to November 3, 2023, are those of the predecessor mutual fund. The predecessor mutual fund’s performance is represented by the performance of the predecessor mutual fund’s Advisor Class Shares. Had the predecessor mutual fund been structured as an ETF, its performance may have differed. |
| eRatios are annualized for periods less than one year. |
| fBenefit of expense reduction rounds to less than 0.01%. |
| gPortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash ("Cash creations"). |
| hPortfolio turnover rate excluding cash creations was as follows: | 5.96% | 9.82% | — | — | — | — |
| 27 | Semi-Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments, September 30, 2024 (Unaudited)
Franklin Focused Growth ETF
| | | Country | Shares | | Value |
| | Common Stocks 98.3% | | | | |
| | Aerospace & Defense 1.4% | | | | |
| a | Axon Enterprise, Inc. | United States | 4,400 | | $ 1,758,240 |
| | Automobiles 3.2% | | | | |
| a | Tesla, Inc. | United States | 15,075 | | 3,944,072 |
| | Broadline Retail 10.1% | | | | |
| a | Amazon.com, Inc. | United States | 58,444 | | 10,889,870 |
| a | MercadoLibre, Inc. | Brazil | 836 | | 1,715,439 |
| | | | | | 12,605,309 |
| | Capital Markets 1.2% | | | | |
| | Tradeweb Markets, Inc., Class A | United States | 12,016 | | 1,486,019 |
| | Consumer Staples Distribution & Retail 5.0% | | | | |
| | Costco Wholesale Corp. | United States | 7,060 | | 6,258,831 |
| | Entertainment 1.0% | | | | |
| a | Netflix, Inc. | United States | 1,711 | | 1,213,561 |
| | Financial Services 4.0% | | | | |
| | Mastercard, Inc., Class A | United States | 10,204 | | 5,038,735 |
| | Ground Transportation 1.3% | | | | |
| a | Uber Technologies, Inc. | United States | 21,522 | | 1,617,594 |
| | Health Care Equipment & Supplies 4.0% | | | | |
| a | IDEXX Laboratories, Inc. | United States | 2,992 | | 1,511,618 |
| a | Intuitive Surgical, Inc. | United States | 7,199 | | 3,536,653 |
| | | | | | 5,048,271 |
| | Interactive Media & Services 12.0% | | | | |
| | Alphabet, Inc., Class A | United States | 34,947 | | 5,795,960 |
| | Meta Platforms, Inc., Class A | United States | 16,020 | | 9,170,489 |
| | | | | | 14,966,449 |
| | IT Services 1.6% | | | | |
| a | Shopify, Inc., Class A | Canada | 25,195 | | 2,019,127 |
| | Life Sciences Tools & Services 3.1% | | | | |
| | Danaher Corp. | United States | 9,199 | | 2,557,506 |
| | Thermo Fisher Scientific, Inc. | United States | 2,010 | | 1,243,326 |
| | | | | | 3,800,832 |
| | Pharmaceuticals 3.3% | | | | |
| | Eli Lilly & Co. | United States | 4,690 | | 4,155,059 |
| | Semiconductors & Semiconductor Equipment 25.7% | | | | |
| a | Advanced Micro Devices, Inc. | United States | 9,397 | | 1,541,860 |
| | Analog Devices, Inc. | United States | 11,601 | | 2,670,202 |
| | ASML Holding NV | Netherlands | 5,179 | | 4,315,402 |
| | NVIDIA Corp. | United States | 174,200 | | 21,154,848 |
| | Taiwan Semiconductor Manufacturing Co. Ltd., ADR | Taiwan | 14,101 | | 2,448,920 |
| | | | | | 32,131,232 |
| | Software 21.4% | | | | |
| a | Cadence Design Systems, Inc. | United States | 15,410 | | 4,176,572 |
| a | HubSpot, Inc. | United States | 1,750 | | 930,300 |
| | Intuit, Inc. | United States | 3,015 | | 1,872,315 |
| | Microsoft Corp. | United States | 32,992 | | 14,196,458 |
| franklintempleton.com | Semi-Annual Report | 28 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin Focused Growth ETF (continued)
| | | Country | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | Software (continued) | | | | |
| a | ServiceNow, Inc. | United States | 6,184 | | $ 5,530,908 |
| | | | | | 26,706,553 |
| | Total Common Stocks (Cost $84,706,857) | | | | 122,749,884 |
| | Total Investments before Short-Term Investments
(Cost $84,706,857) | | | | 122,749,884 |
| | Short-Term Investments 1.7% | | | | |
| | Money Market Funds 1.7% | | | | |
| b,c | Institutional Fiduciary Trust - Money Market Portfolio, 4.74% | United States | 2,158,906 | | 2,158,906 |
| | Total Short-Term Investments (Cost $2,158,906) | | | | 2,158,906 |
| | Total Investments (Cost $86,865,763) 100.0% | | | | 124,908,790 |
| | Other Assets, less Liabilities (0.0)%† | | | | (39,238) |
| | Net Assets 100.0% | | | | $ 124,869,552 |
| †Rounds to less than 0.1% of net assets. |
| aNon-income producing. |
| bThe rate shown is the annualized seven-day effective yield at period end. |
| cSee Note 3(d) regarding investments in affiliated management investment companies. |
See Abbreviations on page 171.
| 29 | Semi-Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
Franklin Templeton ETF Trust
Financial Highlights
Franklin Genomic Advancements ETF
| | Six Months Ended
September 30, 2024
(unaudited) | Year Ended March 31, | Period Ended March 31,
2020a |
| | 2024 | 2023 | 2022 | 2021 |
| Per share operating performance | | | | | | |
| (for a share outstanding throughout the period) | | | | | | |
| Net asset value, beginning of period | $32.75 | $30.40 | $37.00 | $43.26 | $22.58 | $25.00 |
| Income from investment operationsb: | | | | | | |
| Net investment income (loss)c | (0.04) | (0.05) | (0.05) | (0.15) | (0.18) | (0.01) |
| Net realized and unrealized gains (losses) | (0.31) | 2.40 | (6.55) | (5.99) | 20.92 | (2.41) |
| Total from investment operations | (0.35) | 2.35 | (6.60) | (6.14) | 20.74 | (2.42) |
| Less distributions from: | | | | | | |
| Net investment income | — | — | — | (0.12) | (0.01) | — |
| Net realized gains | — | — | — | — | (0.05) | — |
| Total distributions | — | — | — | (0.12) | (0.06) | — |
| Net asset value, end of period | $32.40 | $32.75 | $30.40 | $37.00 | $43.26 | $22.58 |
| Total returnd | (1.10)% | 7.76% | (17.84)% | (14.26)% | 91.81% | (9.68)% |
| Ratios to average net assetse | | | | | | |
| Expenses before waiver and payments by affiliates | 0.50% | 0.50% | 0.50% | 0.66% | 1.84% | 12.22% |
| Expenses net of waiver and payments by affiliates | 0.50% | 0.50% | 0.50% | 0.50% | 0.50% | 0.50% |
| Net investment income (loss) | (0.26)% | (0.15)% | (0.16)% | (0.32)% | (0.45)% | (0.37)% |
| Supplemental data | | | | | | |
| Net assets, end of period (000’s) | $9,720 | $9,826 | $10,641 | $14,799 | $15,140 | $2,258 |
| Portfolio turnover ratef | 5.37%g | 19.19%g | 32.63%g | 61.43%g | 46.58%g | 2.20%g |
| aFor the period February 25, 2020 (commencement of operations) to March 31, 2020. |
| bThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of Creation Unit Fund shares in relation to income earned and/or fluctuating fair value of the investments of the Fund. |
| cBased on average daily shares outstanding. |
| dTotal return is not annualized for periods less than one year. Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. |
| eRatios are annualized for periods less than one year. |
| fPortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash ("Cash creations"). |
| gPortfolio turnover rate excluding cash creations was as follows: | 5.37% | 18.18% | 31.65% | 59.54% | 44.75% | 2.20% |
| franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Semi-Annual Report | 30 |
Franklin Templeton ETF Trust
Schedule of Investments, September 30, 2024 (unaudited)
Franklin Genomic Advancements ETF
| | | Country | Shares | | Value |
| | Common Stocks 97.1% | | | | |
| | Biotechnology 45.1% | | | | |
| a | 4D Molecular Therapeutics, Inc. | United States | 5,013 | | $ 54,191 |
| a | Alnylam Pharmaceuticals, Inc. | United States | 646 | | 177,669 |
| a | Avid Bioservices, Inc. | United States | 7,643 | | 86,977 |
| a | Bavarian Nordic AS | Denmark | 995 | | 34,485 |
| a | Beam Therapeutics, Inc. | United States | 3,399 | | 83,276 |
| a | BioMarin Pharmaceutical, Inc. | United States | 284 | | 19,962 |
| a | BioNTech SE, ADR | Germany | 1,561 | | 185,400 |
| a | Bridgebio Pharma, Inc. | United States | 3,397 | | 86,488 |
| a | CRISPR Therapeutics AG | Switzerland | 1,305 | | 61,309 |
| a | Dynavax Technologies Corp. | United States | 1,732 | | 19,294 |
| a | Exact Sciences Corp. | United States | 2,406 | | 163,897 |
| a | Insmed, Inc. | United States | 2,740 | | 200,020 |
| a | Intellia Therapeutics, Inc. | United States | 3,813 | | 78,357 |
| a | Ionis Pharmaceuticals, Inc. | United States | 5,135 | | 205,708 |
| a | Krystal Biotech, Inc. | United States | 2,320 | | 422,310 |
| a | Moderna, Inc. | United States | 1,395 | | 93,228 |
| a | Natera, Inc. | United States | 2,996 | | 380,342 |
| a | Neurocrine Biosciences, Inc. | United States | 683 | | 78,695 |
| a | Neurogene, Inc. | United States | 753 | | 31,596 |
| a | Recursion Pharmaceuticals, Inc., Class A | United States | 8,385 | | 55,257 |
| a | Regeneron Pharmaceuticals, Inc. | United States | 484 | | 508,800 |
| a | Rocket Pharmaceuticals, Inc. | United States | 8,201 | | 151,472 |
| a | Sarepta Therapeutics, Inc. | United States | 1,209 | | 150,992 |
| a | Twist Bioscience Corp. | United States | 2,595 | | 117,242 |
| a | Ultragenyx Pharmaceutical, Inc. | United States | 2,483 | | 137,931 |
| a | United Therapeutics Corp. | United States | 480 | | 172,008 |
| a | Veracyte, Inc. | United States | 687 | | 23,386 |
| a | Vertex Pharmaceuticals, Inc. | United States | 1,121 | | 521,355 |
| a | Voyager Therapeutics, Inc. | United States | 13,364 | | 78,179 |
| | | | | | 4,379,826 |
| | Chemicals 2.2% | | | | |
| | Corteva, Inc. | United States | 3,710 | | 218,111 |
| | Health Care Providers & Services 1.0% | | | | |
| | Labcorp Holdings, Inc. | United States | 436 | | 97,437 |
| | Health Care REITs 0.2% | | | | |
| | Alexandria Real Estate Equities, Inc. | United States | 126 | | 14,963 |
| | Health Care Technology 0.3% | | | | |
| | Simulations Plus, Inc. | United States | 861 | | 27,569 |
| | Life Sciences Tools & Services 37.7% | | | | |
| | Agilent Technologies, Inc. | United States | 1,461 | | 216,929 |
| a | Avantor, Inc. | United States | 1,945 | | 50,317 |
| a | Azenta, Inc. | United States | 1,900 | | 92,036 |
| a | Bio-Rad Laboratories, Inc., Class A | United States | 150 | | 50,187 |
| | Bio-Techne Corp. | United States | 1,252 | | 100,072 |
| | Bruker Corp. | United States | 3,202 | | 221,130 |
| a | Charles River Laboratories International, Inc. | United States | 953 | | 187,713 |
| | Danaher Corp. | United States | 1,869 | | 519,619 |
| a | Evotec SE | Germany | 911 | | 6,533 |
| a | ICON PLC | Ireland | 544 | | 156,297 |
| a | IQVIA Holdings, Inc. | United States | 466 | | 110,428 |
| | Lonza Group AG | Switzerland | 188 | | 119,145 |
| a | Medpace Holdings, Inc. | United States | 1,664 | | 555,443 |
| a,b | OmniAb, Inc., 12.5 Earnout | United States | 240 | | — |
| a,b | OmniAb, Inc., 15.0 Earnout | United States | 240 | | — |
| 31 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin Genomic Advancements ETF (continued)
| | | Country | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | Life Sciences Tools & Services (continued) | | | | |
| a | Qiagen NV | United States | 4,189 | | $ 190,893 |
| a | Repligen Corp. | United States | 370 | | 55,063 |
| | Revvity, Inc. | United States | 1,202 | | 153,556 |
| a,c | Samsung Biologics Co. Ltd. | South Korea | 489 | | 365,338 |
| a | Tempus AI, Inc. | United States | 434 | | 24,564 |
| | Thermo Fisher Scientific, Inc. | United States | 798 | | 493,619 |
| | | | | | 3,668,882 |
| | Pharmaceuticals 8.6% | | | | |
| | AstraZeneca PLC, ADR | United Kingdom | 3,314 | | 258,194 |
| | Bristol-Myers Squibb Co. | United States | 565 | | 29,233 |
| | Eli Lilly & Co. | United States | 523 | | 463,347 |
| a | Ligand Pharmaceuticals, Inc. | United States | 805 | | 80,572 |
| | | | | | 831,346 |
| | Software 2.0% | | | | |
| a | Cadence Design Systems, Inc. | United States | 726 | | 196,768 |
| | Total Common Stocks (Cost $9,584,938) | | | | 9,434,902 |
| | Preferred Stock 2.3% | | | | |
| | Life Sciences Tools & Services 2.3% | | | | |
| d | Sartorius AG, 0.293%, pfd. | Germany | 801 | | 225,456 |
| | Total Preferred Stocks (Cost $512,402) | | | | 225,456 |
| | Total Investments (Cost $10,097,340) 99.4% | | | | 9,660,358 |
| | Other Assets, less Liabilities 0.6% | | | | 60,030 |
| | Net Assets 100.0% | | | | $ 9,720,388 |
| aNon-income producing. |
| bFair valued using significant unobservable inputs. See Note 10 regarding fair value measurements. |
| cSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At September 30, 2024, the value of was $365,338, representing 3.8% of net assets. |
| dVariable rate security. The rate shown represents the yield at period end. |
See Abbreviations on page 171.
| franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Semi-Annual Report | 32 |
Franklin Templeton ETF Trust
Financial Highlights
Franklin High Yield Corporate ETF
| | Six Months Ended
September 30, 2024
(unaudited) | Year Ended March 31, |
| | 2024 | 2023 | 2022 | 2021 | 2020 |
| Per share operating performance | | | | | | |
| (for a share outstanding throughout the period) | | | | | | |
| Net asset value, beginning of period | $23.72 | $22.63 | $24.76 | $26.16 | $22.67 | $25.45 |
| Income from investment operationsa: | | | | | | |
| Net investment incomeb | 0.78 | 1.46 | 1.25 | 1.20 | 1.23 | 1.33 |
| Net realized and unrealized gains (losses) | 0.70 | 1.17 | (1.95) | (1.34) | 3.73 | (2.51) |
| Total from investment operations | 1.48 | 2.63 | (0.70) | (0.14) | 4.96 | (1.18) |
| Less distributions from: | | | | | | |
| Net investment income | (0.78) | (1.54) | (1.36) | (1.18) | (1.47) | (1.56) |
| Net realized gains | — | — | (0.07) | (0.08) | — | (0.04) |
| Total distributions | (0.78) | (1.54) | (1.43) | (1.26) | (1.47) | (1.60) |
| Net asset value, end of period | $24.42 | $23.72 | $22.63 | $24.76 | $26.16 | $22.67 |
| Total returnc | 6.39% | 12.13% | (2.68)% | (0.69)% | 22.28% | (5.12)% |
| Ratios to average net assetsd | | | | | | |
| Expenses before waiver and payments by affiliates | 0.40% | 0.40% | 0.40% | 0.47% | 0.64% | 0.86% |
| Expenses net of waiver and payments by affiliates | 0.40% | 0.40% | 0.40% | 0.40% | 0.40% | 0.40% |
| Net investment income | 6.55% | 6.39% | 5.51% | 4.62% | 4.84% | 5.29% |
| Supplemental data | | | | | | |
| Net assets, end of period (000’s) | $573,901 | $269,196 | $208,167 | $334,286 | $346,586 | $130,362 |
| Portfolio turnover ratee | 13.05%f | 30.40%f | 17.13%f | 43.83%f | 53.18%f | 129.98%f |
| aThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of Creation Unit Fund shares in relation to income earned and/or fluctuating fair value of the investments of the Fund. |
| bBased on average daily shares outstanding. |
| cTotal return is not annualized for periods less than one year. Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. |
| dRatios are annualized for periods less than one year. |
| ePortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash ("Cash creations"). |
| fPortfolio turnover rate excluding cash creations was as follows: | 13.05% | 30.40% | 17.13% | 43.83% | 53.18% | 129.98% |
| 33 | Semi-Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments, September 30, 2024 (unaudited)
Franklin High Yield Corporate ETF
| | | Country | Principal Amount* | | Value |
| | Corporate Bonds & Notes 94.7% | | | | |
| | Advertising 0.9% | | | | |
| | Outfront Media Capital LLC/Outfront Media Capital Corp., | | | | |
| a | 7.375%, 2/15/31 | United States | 2,000,000 | | $ 2,136,850 |
| a | 4.625%, 3/15/30 | United States | 2,900,000 | | 2,758,103 |
| | | | | | 4,894,953 |
| | Aerospace/Defense 2.0% | | | | |
| a | Boeing Co., 6.528%, 5/01/34 | United States | 1,100,000 | | 1,181,006 |
| a | Bombardier, Inc., 7.00%, 6/01/32 | Canada | 4,600,000 | | 4,817,056 |
| a | TransDigm, Inc., 6.00%, 1/15/33 | United States | 5,600,000 | | 5,683,523 |
| | | | | | 11,681,585 |
| | Airlines 0.7% | | | | |
| a | American Airlines, Inc./AAdvantage Loyalty IP Ltd., 5.50%, 4/20/26 | United States | 1,808,333 | | 1,804,657 |
| a | United Airlines, Inc., 4.375%, 4/15/26 | United States | 2,400,000 | | 2,363,373 |
| | | | | | 4,168,030 |
| | Apparel 0.5% | | | | |
| a | Hanesbrands, Inc., 9.00%, 2/15/31 | United States | 2,700,000 | | 2,916,929 |
| | Automobiles & Components 3.4% | | | | |
| | Adient Global Holdings Ltd., | | | | |
| a | 8.25%, 4/15/31 | United States | 1,600,000 | | 1,699,400 |
| a | 7.00%, 4/15/28 | United States | 2,300,000 | | 2,371,029 |
| a | Dornoch Debt Merger Sub, Inc., 6.625%, 10/15/29 | United States | 4,000,000 | | 3,524,945 |
| a | Garrett Motion Holdings, Inc./Garrett LX I SARL, 7.75%, 5/31/32 | United States | 2,800,000 | | 2,867,637 |
| | Goodyear Tire & Rubber Co., | | | | |
| | 5.00%, 7/15/29 | United States | 164,000 | | 150,967 |
| | 4.875%, 3/15/27 | United States | 1,000,000 | | 977,458 |
| a | Jaguar Land Rover Automotive PLC, 5.50%, 7/15/29 | United Kingdom | 3,400,000 | | 3,362,338 |
| a | ZF North America Capital, Inc., 6.875%, 4/23/32 | Germany | 4,800,000 | | 4,819,934 |
| | | | | | 19,773,708 |
| | Capital Goods 1.1% | | | | |
| a | ATS Corp., 4.125%, 12/15/28 | Canada | 2,700,000 | | 2,544,639 |
| a | Cornerstone Building Brands, Inc., 6.125%, 1/15/29 | United States | 1,800,000 | | 1,594,434 |
| a | Vertiv Group Corp., 4.125%, 11/15/28 | United States | 2,400,000 | | 2,321,731 |
| | | | | | 6,460,804 |
| | Chemicals 1.2% | | | | |
| a | Avient Corp., 6.25%, 11/01/31 | United States | 1,700,000 | | 1,744,078 |
| a,b | Cerdia Finanz GmbH, 9.375%, 10/03/31 | Germany | 1,800,000 | | 1,840,500 |
| a | Rain Carbon, Inc., 12.25%, 9/01/29 | United States | 3,200,000 | | 3,460,310 |
| | | | | | 7,044,888 |
| | Coal 0.2% | | | | |
| a,b | Coronado Finance Pty. Ltd., 9.25%, 10/01/29 | Australia | 1,000,000 | | 1,028,965 |
| | Commercial & Professional Services 2.7% | | | | |
| a | APX Group, Inc., 5.75%, 7/15/29 | United States | 1,800,000 | | 1,783,950 |
| | Gartner, Inc., | | | | |
| a | 3.625%, 6/15/29 | United States | 1,400,000 | | 1,337,435 |
| a | senior note, 4.50%, 7/01/28 | United States | 2,300,000 | | 2,278,415 |
| | Grand Canyon University, 5.125%, 10/01/28 | United States | 2,500,000 | | 2,349,100 |
| a | MPH Acquisition Holdings LLC, 5.75%, 11/01/28 | United States | 2,000,000 | | 918,067 |
| a | Prime Security Services Borrower LLC/Prime Finance, Inc., first lien, 3.375%, 8/31/27 | United States | 3,400,000 | | 3,233,712 |
| a | PROG Holdings, Inc., 6.00%, 11/15/29 | United States | 3,400,000 | | 3,357,071 |
| | | | | | 15,257,750 |
| franklintempleton.com | Semi-Annual Report | 34 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin High Yield Corporate ETF (continued)
| | | Country | Principal Amount* | | Value |
| | Corporate Bonds & Notes (continued) | | | | |
| | Commercial Services 4.3% | | | | |
| a | Allied Universal Holdco LLC, 7.875%, 2/15/31 | United States | 1,300,000 | | $ 1,329,051 |
| a | Ashtead Capital, Inc., 5.80%, 4/15/34 | United Kingdom | 1,800,000 | | 1,882,317 |
| a | Avis Budget Car Rental LLC/Avis Budget Finance, Inc., 8.25%, 1/15/30 | United States | 4,500,000 | | 4,606,698 |
| | EquipmentShare.com, Inc., | | | | |
| a | 8.625%, 5/15/32 | United States | 1,500,000 | | 1,575,522 |
| a | 9.00%, 5/15/28 | United States | 3,300,000 | | 3,450,226 |
| a | Herc Holdings, Inc., 6.625%, 6/15/29 | United States | 1,900,000 | | 1,969,550 |
| a | RR Donnelley & Sons Co., 9.50%, 8/01/29 | United States | 4,900,000 | | 4,946,770 |
| | United Rentals North America, Inc., | | | | |
| | 5.50%, 5/15/27 | United States | 1,200,000 | | 1,202,970 |
| a | 6.125%, 3/15/34 | United States | 3,700,000 | | 3,828,379 |
| | | | | | 24,791,483 |
| | Construction Materials 2.8% | | | | |
| a | EMRLD Borrower LP/Emerald Co-Issuer, Inc., 6.625%, 12/15/30 | United States | 4,400,000 | | 4,542,318 |
| a | Miter Brands Acquisition Holdco, Inc./MIWD Borrower LLC, 6.75%, 4/01/32 | United States | 4,500,000 | | 4,667,630 |
| a | Smyrna Ready Mix Concrete LLC, 8.875%, 11/15/31 | United States | 2,900,000 | | 3,131,068 |
| a | Standard Building Solutions, Inc., 6.50%, 8/15/32 | United States | 3,600,000 | | 3,730,676 |
| | | | | | 16,071,692 |
| | Consumer Discretionary Distribution & Retail 0.1% | | | | |
| a | FirstCash, Inc., 4.625%, 9/01/28 | United States | 700,000 | | 676,387 |
| | Consumer Durables & Apparel 0.3% | | | | |
| a | Ashton Woods USA LLC/Ashton Woods Finance Co., 4.625%, 4/01/30 | United States | 1,800,000 | | 1,726,048 |
| | Consumer Services 2.2% | | | | |
| a,c,d | 24 Hour Fitness Worldwide, Inc., senior note, 8.00%, 6/01/22 | United States | 800,000 | | — |
| | Carnival Corp., | | | | |
| a | 7.625%, 3/01/26 | United States | 900,000 | | 908,896 |
| a | senior note, 5.75%, 3/01/27 | United States | 4,300,000 | | 4,357,523 |
| a | NCL Corp. Ltd., 5.875%, 3/15/26 | United States | 2,700,000 | | 2,701,854 |
| a | Royal Caribbean Cruises Ltd., 5.50%, 8/31/26 | United States | 1,100,000 | | 1,111,489 |
| a | Station Casinos LLC, 4.50%, 2/15/28 | United States | 3,500,000 | | 3,382,240 |
| | | | | | 12,462,002 |
| | Distribution/Wholesale 0.7% | | | | |
| a | Gates Corp., 6.875%, 7/01/29 | United States | 1,900,000 | | 1,970,497 |
| a | Ritchie Bros Holdings, Inc., 6.75%, 3/15/28 | Canada | 1,700,000 | | 1,759,648 |
| | | | | | 3,730,145 |
| | Diversified Financial Services 5.5% | | | | |
| | Encore Capital Group, Inc., | | | | |
| a | 9.25%, 4/01/29 | United States | 1,000,000 | | 1,077,200 |
| a | 8.50%, 5/15/30 | United States | 1,900,000 | | 2,004,228 |
| a | Freedom Mortgage Holdings LLC, 9.25%, 2/01/29 | United States | 3,000,000 | | 3,120,828 |
| | GGAM Finance Ltd., | | | | |
| a | 8.00%, 2/15/27 | Ireland | 400,000 | | 418,255 |
| a | 8.00%, 6/15/28 | Ireland | 2,100,000 | | 2,252,212 |
| a | Jane Street Group/JSG Finance, Inc., 4.50%, 11/15/29 | United States | 1,100,000 | | 1,059,690 |
| a | Jefferson Capital Holdings LLC, 9.50%, 2/15/29 | United States | 2,800,000 | | 2,992,069 |
| | Macquarie Airfinance Holdings Ltd., | | | | |
| a | 6.50%, 3/26/31 | United Kingdom | 1,400,000 | | 1,478,705 |
| a | 6.40%, 3/26/29 | United Kingdom | 1,500,000 | | 1,562,285 |
| a | Nationstar Mortgage Holdings, Inc., 5.75%, 11/15/31 | United States | 4,900,000 | | 4,805,360 |
| | OneMain Finance Corp., | | | | |
| | 7.125%, 11/15/31 | United States | 1,300,000 | | 1,316,587 |
| | 9.00%, 1/15/29 | United States | 3,400,000 | | 3,605,758 |
| 35 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin High Yield Corporate ETF (continued)
| | | Country | Principal Amount* | | Value |
| | Corporate Bonds & Notes (continued) | | | | |
| | Diversified Financial Services (continued) | | | | |
| | PRA Group, Inc., | | | | |
| a | 8.375%, 2/01/28 | United States | 500,000 | | $ 517,968 |
| a | 8.875%, 1/31/30 | United States | 1,100,000 | | 1,147,096 |
| a | StoneX Group, Inc., 7.875%, 3/01/31 | United States | 4,000,000 | | 4,262,604 |
| | | | | | 31,620,845 |
| | Electric 1.0% | | | | |
| a | Talen Energy Supply LLC, 8.625%, 6/01/30 | United States | 2,300,000 | | 2,508,511 |
| a | Vistra Operations Co. LLC, 7.75%, 10/15/31 | United States | 3,100,000 | | 3,339,841 |
| | | | | | 5,848,352 |
| | Electrical Components & Equipment 0.7% | | | | |
| a | Energizer Holdings, Inc., 4.375%, 3/31/29 | United States | 4,000,000 | | 3,792,000 |
| | Energy 5.3% | | | | |
| a | Antero Resources Corp., 7.625%, 2/01/29 | United States | 1,001,000 | | 1,034,880 |
| a | Atlantica Sustainable Infrastructure PLC, 4.125%, 6/15/28 | Spain | 2,000,000 | | 1,982,459 |
| a | Calumet Specialty Products Partners LP/Calumet Finance Corp., 8.125%, 1/15/27 | United States | 2,100,000 | | 2,045,547 |
| a | Chesapeake Energy Corp., 6.75%, 4/15/29 | United States | 3,700,000 | | 3,771,995 |
| a | CrownRock LP/CrownRock Finance, Inc., 5.00%, 5/01/29 | United States | 1,100,000 | | 1,113,785 |
| a | DT Midstream, Inc., 4.125%, 6/15/29 | United States | 1,100,000 | | 1,053,010 |
| a | Enerflex Ltd., 9.00%, 10/15/27 | Canada | 600,000 | | 621,064 |
| | EnLink Midstream Partners LP, 4.15%, 6/01/25 | United States | 3,100,000 | | 3,074,531 |
| a | EQM Midstream Partners LP, 7.50%, 6/01/27 | United States | 2,400,000 | | 2,472,185 |
| a | Harbour Energy PLC, 5.50%, 10/15/26 | United Kingdom | 5,600,000 | | 5,580,381 |
| a | Kinetik Holdings LP, 5.875%, 6/15/30 | United States | 2,400,000 | | 2,418,290 |
| a | Nabors Industries, Inc., 7.375%, 5/15/27 | United States | 1,500,000 | | 1,504,542 |
| | Sunoco LP/Sunoco Finance Corp., 6.00%, 4/15/27 | United States | 1,000,000 | | 1,004,071 |
| | Venture Global Calcasieu Pass LLC, | | | | |
| a | 3.875%, 8/15/29 | United States | 1,300,000 | | 1,229,542 |
| a | 4.125%, 8/15/31 | United States | 1,400,000 | | 1,302,728 |
| | | | | | 30,209,010 |
| | Engineering & Construction 0.3% | | | | |
| a | Arcosa, Inc., 6.875%, 8/15/32 | United States | 1,400,000 | | 1,466,366 |
| | Entertainment 3.7% | | | | |
| a | Allwyn Entertainment Financing U.K. PLC, 7.875%, 4/30/29 | Czech Republic | 4,100,000 | | 4,323,343 |
| a | Banijay Entertainment SAS, 8.125%, 5/01/29 | France | 2,900,000 | | 3,016,589 |
| | Caesars Entertainment, Inc., | | | | |
| a | 7.00%, 2/15/30 | United States | 1,600,000 | | 1,672,610 |
| a | 6.50%, 2/15/32 | United States | 1,900,000 | | 1,966,574 |
| a | 4.625%, 10/15/29 | United States | 2,400,000 | | 2,284,471 |
| a | Six Flags Entertainment Corp./Six Flags Theme Parks, Inc., 6.625%, 5/01/32 | United States | 4,200,000 | | 4,352,535 |
| a | Wynn Resorts Finance LLC/Wynn Resorts Capital Corp., 7.125%, 2/15/31 | United States | 3,600,000 | | 3,886,282 |
| | | | | | 21,502,404 |
| | Environmental Control 1.0% | | | | |
| a | Wrangler Holdco Corp., 6.625%, 4/01/32 | Canada | 5,400,000 | | 5,617,593 |
| | Financial Services 5.2% | | | | |
| a | Apollo Commercial Real Estate Finance, Inc., 4.625%, 6/15/29 | United States | 3,700,000 | | 3,315,153 |
| a | Global Net Lease, Inc./Global Net Lease Operating Partnership LP, senior note, 3.75%, 12/15/27 | United States | 2,300,000 | | 2,146,073 |
| | Iron Mountain, Inc., | | | | |
| a | 7.00%, 2/15/29 | United States | 2,600,000 | | 2,712,117 |
| a | 5.625%, 7/15/32 | United States | 3,700,000 | | 3,693,852 |
| franklintempleton.com | Semi-Annual Report | 36 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin High Yield Corporate ETF (continued)
| | | Country | Principal Amount* | | Value |
| | Corporate Bonds & Notes (continued) | | | | |
| | Financial Services (continued) | | | | |
| a | Jefferson Capital Holdings LLC, 6.00%, 8/15/26 | United States | 900,000 | | $ 900,868 |
| a | Ladder Capital Finance Holdings LLLP/Ladder Capital Finance Corp., 4.75%, 6/15/29 | United States | 2,000,000 | | 1,954,966 |
| a | Necessity Retail REIT, Inc./American Finance Operating Partner LP, 4.50%, 9/30/28 | United States | 1,500,000 | | 1,408,994 |
| a,b | Pebblebrook Hotel LP/PEB Finance Corp., 6.375%, 10/15/29 | United States | 700,000 | | 705,229 |
| a | PRA Group, Inc., 5.00%, 10/01/29 | United States | 2,700,000 | | 2,486,251 |
| | RHP Hotel Properties LP/RHP Finance Corp., | | | | |
| a | 7.25%, 7/15/28 | United States | 1,900,000 | | 1,989,801 |
| a | 6.50%, 4/01/32 | United States | 2,800,000 | | 2,895,721 |
| a | Rocket Mortgage LLC/Rocket Mortgage Co-Issuer, Inc., 3.875%, 3/01/31 | United States | 3,500,000 | | 3,225,671 |
| a | VICI Properties LP/VICI Note Co., Inc., 3.875%, 2/15/29 | United States | 2,600,000 | | 2,492,308 |
| | | | | | 29,927,004 |
| | Food 1.8% | | | | |
| a | Chobani LLC/Chobani Finance Corp., Inc., 7.625%, 7/01/29 | United States | 4,000,000 | | 4,205,484 |
| | Pilgrim’s Pride Corp., 6.875%, 5/15/34 | United States | 2,100,000 | | 2,333,207 |
| a | Post Holdings, Inc., 6.25%, 2/15/32 | United States | 1,300,000 | | 1,340,246 |
| | U.S. Foods, Inc., | | | | |
| a,b | 5.75%, 4/15/33 | United States | 900,000 | | 903,216 |
| a | 7.25%, 1/15/32 | United States | 1,200,000 | | 1,271,514 |
| | | | | | 10,053,667 |
| | Food, Beverage & Tobacco 0.4% | | | | |
| a | Primo Water Holdings, Inc., 4.375%, 4/30/29 | Canada | 2,500,000 | | 2,399,543 |
| | Hand/Machine Tools 0.4% | | | | |
| | Regal Rexnord Corp., | | | | |
| | 6.30%, 2/15/30 | United States | 1,000,000 | | 1,064,187 |
| | 6.40%, 4/15/33 | United States | 1,400,000 | | 1,498,300 |
| | | | | | 2,562,487 |
| | Health Care Equipment & Services 1.4% | | | | |
| | CHS/Community Health Systems, Inc., | | | | |
| a | 6.875%, 4/15/29 | United States | 1,000,000 | | 907,714 |
| a | senior secured note, 6.00%, 1/15/29 | United States | 2,600,000 | | 2,526,485 |
| a | DaVita, Inc., 4.625%, 6/01/30 | United States | 5,000,000 | | 4,770,176 |
| | | | | | 8,204,375 |
| | Healthcare-Products 1.1% | | | | |
| a | Bausch & Lomb Corp., 8.375%, 10/01/28 | United States | 2,600,000 | | 2,752,750 |
| a | Neogen Food Safety Corp., 8.625%, 7/20/30 | United States | 3,400,000 | | 3,766,370 |
| | | | | | 6,519,120 |
| | Healthcare-Services 2.4% | | | | |
| a | CHS/Community Health Systems, Inc., 10.875%, 1/15/32 | United States | 3,000,000 | | 3,309,705 |
| a | Concentra Escrow Issuer Corp., 6.875%, 7/15/32 | United States | 3,300,000 | | 3,474,118 |
| a | Fortrea Holdings, Inc., 7.50%, 7/01/30 | United States | 2,100,000 | | 2,116,411 |
| | Tenet Healthcare Corp., | | | | |
| | 6.75%, 5/15/31 | United States | 800,000 | | 834,549 |
| | 6.125%, 10/01/28 | United States | 1,800,000 | | 1,815,804 |
| | 6.125%, 6/15/30 | United States | 1,900,000 | | 1,933,425 |
| | | | | | 13,484,012 |
| | Home Builders 0.8% | | | | |
| a | Dream Finders Homes, Inc., 8.25%, 8/15/28 | United States | 2,200,000 | | 2,326,863 |
| a | LGI Homes, Inc., 8.75%, 12/15/28 | United States | 1,900,000 | | 2,035,928 |
| | | | | | 4,362,791 |
| 37 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin High Yield Corporate ETF (continued)
| | | Country | Principal Amount* | | Value |
| | Corporate Bonds & Notes (continued) | | | | |
| | Hotels, Restaurants & Leisure 1.6% | | | | |
| | 1011778 BC ULC/New Red Finance, Inc., | | | | |
| a | 4.00%, 10/15/30 | Canada | 2,000,000 | | $ 1,846,051 |
| a | 6.125%, 6/15/29 | Canada | 2,600,000 | | 2,677,230 |
| | Fertitta Entertainment LLC/Fertitta Entertainment Finance Co., Inc., | | | | |
| a | 4.625%, 1/15/29 | United States | 1,200,000 | | 1,146,694 |
| a | 6.75%, 1/15/30 | United States | 3,700,000 | | 3,449,558 |
| | | | | | 9,119,533 |
| | Household & Personal Products 0.8% | | | | |
| a | VM Consolidated, Inc., 5.50%, 4/15/29 | United States | 4,500,000 | | 4,464,131 |
| | Household Products 0.4% | | | | |
| a | Coty, Inc./HFC Prestige Products, Inc./HFC Prestige International U.S. LLC, 6.625%, 7/15/30 | United States | 2,200,000 | | 2,287,937 |
| | Insurance 2.4% | | | | |
| | Acrisure LLC/Acrisure Finance, Inc., | | | | |
| a | 8.50%, 6/15/29 | United States | 1,900,000 | | 1,985,675 |
| a | 7.50%, 11/06/30 | United States | 2,300,000 | | 2,368,931 |
| | Alliant Holdings Intermediate LLC/Alliant Holdings Co-Issuer, | | | | |
| a | 7.375%, 10/01/32 | United States | 800,000 | | 812,082 |
| a | 6.75%, 4/15/28 | United States | 1,600,000 | | 1,627,101 |
| a | 7.00%, 1/15/31 | United States | 2,400,000 | | 2,468,095 |
| a | HUB International Ltd., 7.25%, 6/15/30 | United States | 1,600,000 | | 1,668,328 |
| a | Jones Deslauriers Insurance Management, Inc., 10.50%, 12/15/30 | Canada | 2,500,000 | | 2,720,865 |
| | | | | | 13,651,077 |
| | Internet 0.5% | | | | |
| a | Cogent Communications Group, Inc./Cogent Communications Finance, Inc., 7.00%, 6/15/27 | United States | 1,800,000 | | 1,830,928 |
| a,b | Wayfair LLC, 7.25%, 10/31/29 | United States | 800,000 | | 821,568 |
| | | | | | 2,652,496 |
| | Iron/Steel 1.3% | | | | |
| | ATI, Inc., 7.25%, 8/15/30 | United States | 1,900,000 | | 2,025,071 |
| a | Cleveland-Cliffs, Inc., 7.00%, 3/15/32 | United States | 5,400,000 | | 5,466,100 |
| | | | | | 7,491,171 |
| | IT Services 0.8% | | | | |
| a | Fortress Intermediate 3, Inc., 7.50%, 6/01/31 | United States | 4,500,000 | | 4,753,246 |
| | Leisure Time 2.1% | | | | |
| a | Carnival Holdings Bermuda Ltd., 10.375%, 5/01/28 | United States | 900,000 | | 971,724 |
| a | NCL Corp. Ltd., 7.75%, 2/15/29 | United States | 1,800,000 | | 1,930,181 |
| | Royal Caribbean Cruises Ltd., | | | | |
| a | 5.625%, 9/30/31 | United States | 500,000 | | 506,875 |
| a | 6.00%, 2/01/33 | United States | 4,100,000 | | 4,205,817 |
| | Viking Cruises Ltd., | | | | |
| a | 9.125%, 7/15/31 | United States | 600,000 | | 656,540 |
| a | 5.875%, 9/15/27 | United States | 1,100,000 | | 1,100,002 |
| a | 7.00%, 2/15/29 | United States | 2,400,000 | | 2,432,115 |
| | | | | | 11,803,254 |
| | Lodging 0.2% | | | | |
| a | Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp., 5.25%, 5/15/27 | United States | 900,000 | | 901,301 |
| | Machinery-Construction & Mining 0.5% | | | | |
| a | Manitowoc Co., Inc., 9.25%, 10/01/31 | United States | 1,700,000 | | 1,744,625 |
| a,b | Terex Corp., 6.25%, 10/15/32 | United States | 1,200,000 | | 1,212,960 |
| | | | | | 2,957,585 |
| franklintempleton.com | Semi-Annual Report | 38 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin High Yield Corporate ETF (continued)
| | | Country | Principal Amount* | | Value |
| | Corporate Bonds & Notes (continued) | | | | |
| | Machinery-Diversified 0.3% | | | | |
| a | Esab Corp., 6.25%, 4/15/29 | United States | 1,800,000 | | $ 1,850,954 |
| | Materials 3.2% | | | | |
| a | Arcosa, Inc., 4.375%, 4/15/29 | United States | 3,000,000 | | 2,886,296 |
| a | Ardagh Packaging Finance PLC/Ardagh Holdings USA, Inc., senior note, 5.25%, 8/15/27 | Luxembourg | 200,000 | | 149,273 |
| a | Consolidated Energy Finance SA, 5.625%, 10/15/28 | Luxembourg | 500,000 | | 423,180 |
| a | Constellium SE, 3.75%, 4/15/29 | France | 2,500,000 | | 2,337,050 |
| a | Glatfelter Corp., 4.75%, 11/15/29 | United States | 1,700,000 | | 1,528,536 |
| a | GPD Cos., Inc., senior secured note, 10.125%, 4/01/26 | United States | 3,450,000 | | 3,194,375 |
| a | Novelis Corp., 4.75%, 1/30/30 | United States | 2,500,000 | | 2,425,927 |
| a | OI European Group BV, 4.75%, 2/15/30 | United States | 2,100,000 | | 1,987,726 |
| a | Pactiv Evergreen Group Issuer, Inc./Pactiv Evergreen Group Issuer LLC, 4.00%, 10/15/27 | United States | 1,900,000 | | 1,828,698 |
| a | Rain CII Carbon LLC/CII Carbon Corp., 7.25%, 4/01/25 | United States | 22,000 | | 21,786 |
| a | Trivium Packaging Finance BV, senior note, 5.50%, 8/15/26 | Netherlands | 1,400,000 | | 1,395,778 |
| | | | | | 18,178,625 |
| | Media 1.0% | | | | |
| a | CSC Holdings LLC, 3.375%, 2/15/31 | United States | 2,500,000 | | 1,774,625 |
| a | McGraw-Hill Education, Inc., 7.375%, 9/01/31 | United States | 3,800,000 | | 3,945,761 |
| | | | | | 5,720,386 |
| | Media & Entertainment 2.8% | | | | |
| | CCO Holdings LLC/CCO Holdings Capital Corp., | | | | |
| a | 4.50%, 8/15/30 | United States | 2,900,000 | | 2,630,902 |
| a | 5.375%, 6/01/29 | United States | 2,800,000 | | 2,700,553 |
| | Clear Channel Outdoor Holdings, Inc., | | | | |
| a | 7.50%, 6/01/29 | United States | 1,500,000 | | 1,293,186 |
| a | 7.875%, 4/01/30 | United States | 4,200,000 | | 4,395,451 |
| | Diamond Sports Group LLC/Diamond Sports Finance Co., | | | | |
| a,c | senior note, 6.625%, 8/15/27 | United States | 900,000 | | 11,812 |
| a,c | 5.375%, 8/15/26 | United States | 900,000 | | 11,813 |
| a | Directv Financing LLC/Directv Financing Co-Obligor, Inc., 5.875%, 8/15/27 | United States | 3,000,000 | | 2,947,612 |
| a | Sirius XM Radio, Inc., 4.00%, 7/15/28 | United States | 2,200,000 | | 2,077,239 |
| a | Virgin Media Secured Finance PLC, 4.50%, 8/15/30 | United Kingdom | 300,000 | | 267,105 |
| | | | | | 16,335,673 |
| | Mining 0.5% | | | | |
| a | Constellium SE, 6.375%, 8/15/32 | United States | 2,900,000 | | 2,978,979 |
| | Miscellaneous Manufacturing 0.7% | | | | |
| a | Calderys Financing LLC, 11.25%, 6/01/28 | France | 1,900,000 | | 2,044,907 |
| | Hillenbrand, Inc., 6.25%, 2/15/29 | United States | 1,700,000 | | 1,732,071 |
| | | | | | 3,776,978 |
| | Office/Business Equipment 0.4% | | | | |
| a | Zebra Technologies Corp., 6.50%, 6/01/32 | United States | 2,400,000 | | 2,507,683 |
| | Oil & Gas 6.1% | | | | |
| a | Calumet Specialty Products Partners LP/Calumet Finance Corp., 9.25%, 7/15/29 | United States | 1,600,000 | | 1,645,906 |
| a | CITGO Petroleum Corp., 8.375%, 1/15/29 | United States | 1,400,000 | | 1,457,892 |
| | Civitas Resources, Inc., | | | | |
| a | 8.375%, 7/01/28 | United States | 2,600,000 | | 2,705,869 |
| a | 8.75%, 7/01/31 | United States | 2,700,000 | | 2,861,428 |
| a | Kraken Oil & Gas Partners LLC, 7.625%, 8/15/29 | United States | 4,100,000 | | 4,098,199 |
| | Matador Resources Co., | | | | |
| a | 6.50%, 4/15/32 | United States | 3,100,000 | | 3,097,695 |
| a | 6.25%, 4/15/33 | United States | 3,200,000 | | 3,154,329 |
| 39 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin High Yield Corporate ETF (continued)
| | | Country | Principal Amount* | | Value |
| | Corporate Bonds & Notes (continued) | | | | |
| | Oil & Gas (continued) | | | | |
| | Nabors Industries, Inc., | | | | |
| a | 9.125%, 1/31/30 | United States | 1,600,000 | | $ 1,651,493 |
| a | 8.875%, 8/15/31 | United States | 2,300,000 | | 2,189,980 |
| | PBF Holding Co. LLC/PBF Finance Corp., | | | | |
| | 6.00%, 2/15/28 | United States | 900,000 | | 889,081 |
| a | 7.875%, 9/15/30 | United States | 1,300,000 | | 1,340,304 |
| a | Sunoco LP, 7.25%, 5/01/32 | United States | 2,200,000 | | 2,333,841 |
| a | Transocean Titan Financing Ltd., 8.375%, 2/01/28 | United States | 1,700,000 | | 1,752,523 |
| a | Transocean, Inc., 8.75%, 2/15/30 | United States | 1,530,000 | | 1,596,459 |
| a | Viper Energy, Inc., 7.375%, 11/01/31 | United States | 2,000,000 | | 2,116,958 |
| | Vital Energy, Inc., | | | | |
| a | 7.875%, 4/15/32 | United States | 600,000 | | 581,670 |
| | 9.75%, 10/15/30 | United States | 1,700,000 | | 1,818,039 |
| | | | | | 35,291,666 |
| | Oil & Gas Services 0.6% | | | | |
| a | Kodiak Gas Services LLC, 7.25%, 2/15/29 | United States | 2,700,000 | | 2,796,344 |
| | Oceaneering International, Inc., 6.00%, 2/01/28 | United States | 700,000 | | 701,901 |
| | | | | | 3,498,245 |
| | Packaging & Containers 0.8% | | | | |
| | Mauser Packaging Solutions Holding Co., | | | | |
| a | 9.25%, 4/15/27 | United States | 600,000 | | 615,785 |
| a | 7.875%, 4/15/27 | United States | 2,000,000 | | 2,068,855 |
| a | Owens-Brockway Glass Container, Inc., senior note, 7.25%, 5/15/31 | United States | 1,200,000 | | 1,234,299 |
| a | Sealed Air Corp./Sealed Air Corp. U.S., 6.125%, 2/01/28 | United States | 900,000 | | 915,864 |
| | | | | | 4,834,803 |
| | Pharmaceuticals 2.2% | | | | |
| a | 1375209 BC Ltd., 9.00%, 1/30/28 | Canada | 2,561,000 | | 2,540,589 |
| a | Endo Finance Holdings, Inc., 8.50%, 4/15/31 | United States | 4,500,000 | | 4,827,523 |
| a | Grifols SA, 4.75%, 10/15/28 | Spain | 3,800,000 | | 3,562,726 |
| a,d | Par Pharmaceutical, Inc., 7.50%, 4/01/27 | United States | 400,000 | | — |
| | Teva Pharmaceutical Finance Netherlands III BV, | | | | |
| | 8.125%, 9/15/31 | Israel | 800,000 | | 918,203 |
| | 7.875%, 9/15/29 | Israel | 900,000 | | 995,420 |
| | | | | | 12,844,461 |
| | Pharmaceuticals, Biotechnology & Life Sciences 1.2% | | | | |
| a | Kedrion SpA, 6.50%, 9/01/29 | Italy | 5,500,000 | | 5,242,215 |
| | Teva Pharmaceutical Finance Netherlands III BV, 4.75%, 5/09/27 | Israel | 1,900,000 | | 1,875,603 |
| | | | | | 7,117,818 |
| | Pipelines 2.6% | | | | |
| a | Hess Midstream Operations LP, 6.50%, 6/01/29 | United States | 1,800,000 | | 1,864,453 |
| a | Martin Midstream Partners LP/Martin Midstream Finance Corp., 11.50%, 2/15/28 | United States | 3,600,000 | | 3,966,483 |
| a | Northriver Midstream Finance LP, 6.75%, 7/15/32 | Canada | 2,800,000 | | 2,892,210 |
| | Venture Global LNG, Inc., | | | | |
| a | 8.125%, 6/01/28 | United States | 1,100,000 | | 1,147,508 |
| a | 8.375%, 6/01/31 | United States | 1,600,000 | | 1,690,570 |
| a | 9.50%, 2/01/29 | United States | 3,000,000 | | 3,381,389 |
| | | | | | 14,942,613 |
| | Real Estate Management & Development 0.2% | | | | |
| a | Greystar Real Estate Partners LLC, 7.75%, 9/01/30 | United States | 1,100,000 | | 1,169,166 |
| franklintempleton.com | Semi-Annual Report | 40 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin High Yield Corporate ETF (continued)
| | | Country | Principal Amount* | | Value |
| | Corporate Bonds & Notes (continued) | | | | |
| | Retail 0.9% | | | | |
| a | Evergreen Acqco 1 LP/TVI, Inc., 9.75%, 4/26/28 | United States | 1,110,000 | | $ 1,171,569 |
| a | FirstCash, Inc., 6.875%, 3/01/32 | United States | 4,000,000 | | 4,121,484 |
| | | | | | 5,293,053 |
| | Software & Services 0.2% | | | | |
| a | Rocket Software, Inc., 6.50%, 2/15/29 | United States | 1,000,000 | | 952,521 |
| | Technology Hardware & Equipment 0.5% | | | | |
| a | McAfee Corp., 7.375%, 2/15/30 | United States | 3,100,000 | | 3,026,647 |
| | Telecommunication Services 1.9% | | | | |
| a | Altice France Holding SA, senior note, 10.50%, 5/15/27 | Luxembourg | 600,000 | | 208,121 |
| a | Altice France SA, first lien, 8.125%, 2/01/27 | France | 1,000,000 | | 818,554 |
| a | CommScope Technologies LLC, 5.00%, 3/15/27 | United States | 1,800,000 | | 1,508,277 |
| a | Connect Finco SARL/Connect U.S. Finco LLC, 9.00%, 9/15/29 | United Kingdom | 2,500,000 | | 2,422,463 |
| a | Iliad Holding SASU, 6.50%, 10/15/26 | France | 1,100,000 | | 1,112,838 |
| a | Zegona Finance PLC, 8.625%, 7/15/29 | United Kingdom | 4,300,000 | | 4,598,312 |
| | | | | | 10,668,565 |
| | Transportation 1.9% | | | | |
| a | First Student Bidco, Inc./First Transit Parent, Inc., 4.00%, 7/31/29 | United States | 1,600,000 | | 1,502,630 |
| a | Watco Cos. LLC/Watco Finance Corp., 7.125%, 8/01/32 | United States | 4,800,000 | | 5,007,034 |
| a | XPO, Inc., 7.125%, 2/01/32 | United States | 4,000,000 | | 4,214,332 |
| | | | | | 10,723,996 |
| | Utilities 2.0% | | | | |
| | Calpine Corp., | | | | |
| a | senior note, 5.125%, 3/15/28 | United States | 700,000 | | 690,776 |
| a | first lien, 4.50%, 2/15/28 | United States | 1,700,000 | | 1,661,026 |
| a | Leeward Renewable Energy Operations LLC, 4.25%, 7/01/29 | United States | 3,600,000 | | 3,397,464 |
| a | TTM Technologies, Inc., 4.00%, 3/01/29 | United States | 4,000,000 | | 3,793,783 |
| a | Vistra Operations Co. LLC, senior note, 5.50%, 9/01/26 | United States | 2,100,000 | | 2,100,963 |
| | | | | | 11,644,012 |
| | Total Corporate Bonds & Notes (Cost $537,858,316) | | | | 543,693,513 |
| |
| | | | Shares | | |
| | Common Stocks 0.0%† | | | | |
| | Pharmaceuticals 0.0%† | | | | |
| e | Endo, Inc. | United States | 5,615 | | 143,070 |
| | Total Common Stocks (Cost $97,900) | | | | 143,070 |
| |
| | | | Principal Amount* | | |
| f | Senior Floating Rate Interests 1.5% | | | | |
| | Materials 0.4% | | | | |
| | Hexion Holdings Corp., | | | | |
| | 2022 USD Term Loan, 3 mo. USD Term SOFR + 4.50%, 9.771%, 3/15/29 | United States | 1,078,000 | | 1,071,554 |
| | 2022 USD 2nd Lien Term Loan, 1 mo. USD Term SOFR + 7.44%, 12.383%, 3/15/30 | United States | 1,186,047 | | 1,074,362 |
| | | | | | 2,145,916 |
| 41 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin High Yield Corporate ETF (continued)
| | | Country | Principal Amount* | | Value |
| f | Senior Floating Rate Interests (continued) | | | | |
| | Software & Services 0.5% | | | | |
| | Athenahealth Group, Inc., 2022 Term Loan B, 1 mo. USD Term SOFR + 3.25%, 8.095%, 2/15/29 | United States | 1,481,428 | | 1,474,643 |
| | McAfee LLC, 2022 USD Term Loan B, 1 mo. USD Term SOFR + 3.25%, 8.451%, 3/01/29 | United States | 1,372,061 | | 1,368,953 |
| | | | | | 2,843,596 |
| | Chemicals 0.3% | | | | |
| | PMHC II, Inc., 2022 Term Loan B, 3 mo. USD Term SOFR + 4.25%, 9.704%, 4/23/29 | United States | 1,666,000 | | 1,628,673 |
| | Media & Entertainment 0.3% | | | | |
| | Diamond Sports Group LLC, 2022 First Priority Term Loan, 1 mo. USD Term SOFR + 10.00%, 15.201%, 5/25/26 | United States | 88,404 | | 78,441 |
| | Fertitta Entertainment LLC, 2022 Term Loan B, 1 mo. USD Term SOFR + 3.75%, 8.847%, 1/27/29 | United States | 1,657,500 | | 1,654,798 |
| | | | | | 1,733,239 |
| | Media 0.0%† | | | | |
| | Diamond Sports Group LLC, 2024 DIP PIK Term Loan, 1 mo. USD Term SOFR + 5.00%, 5.00%, 12/02/24 | United States | 102,448 | | 124,603 |
| | Total Floating Rate Loans (Cost $8,568,226) | | | | 8,476,027 |
| | Total Investments before Short-Term
Investments (Cost $546,524,442) | | | | 552,312,610 |
| | Short-Term Investments 3.2% | | | | |
| | U.S. Government & Agency Securities 3.2% | | | | |
| g | Federal Home Loan Bank Discount Notes, 10/01/24 | United States | 18,085,000 | $ | 18,082,669 |
| | Total Short-Term Investments
(Cost $18,085,000) | | | | 18,082,669 |
| | Total Investments
(Cost $564,609,442) 99.4% | | | | 570,395,279 |
| | Other Assets, less Liabilities 0.6% | | | | 3,506,196 |
| | Net Assets 100.0% | | | | $ 573,901,475 |
| *The principal amount is stated in U.S. dollars unless otherwise indicated. |
| †Rounds to less than 0.1% of net assets. |
| aSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At September 30, 2024, the value of was $509,577,210, representing 88.8% of net assets. |
| bSecurity purchased on a when-issued basis. See Note 1(d). |
| cDefaulted security or security for which income has been deemed uncollectible. See Note 8. |
| dFair valued using significant unobservable inputs. See Note 10 regarding fair value measurements. |
| eNon-income producing. |
| fVariable rate security. The rate shown represents the yield at period end. |
| gThe security was issued on a discount basis with no stated coupon rate. |
See Abbreviations on page 171.
| franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Semi-Annual Report | 42 |
Franklin Templeton ETF Trust
Financial Highlights
Franklin Income Equity Focus ETFa
| | Six Months Ended
September 30, 2024
(unaudited) | Year Ended March 31, |
| | 2024 | 2023 | 2022 | 2021 | 2020 |
| Per share operating performance | | | | | | |
| (for a share outstanding throughout the period) | | | | | | |
| Net asset value, beginning of period | $54.64 | $47.16 | $49.07 | $43.69 | $30.93 | $33.61 |
| Income from investment operationsb: | | | | | | |
| Net investment incomec | 0.79 | 0.88 | 0.76 | 0.70 | 0.67 | 0.64 |
| Net realized and unrealized gains (losses) | 3.77 | 7.54 | (1.89) | 5.39 | 12.73 | (2.84) |
| Total from investment operations | 4.56 | 8.42 | (1.13) | 6.09 | 13.40 | (2.20) |
| Less distributions from: | | | | | | |
| Net investment income | (0.95) | (0.94) | (0.78) | (0.71) | (0.64) | (0.48) |
| Total distributions | (0.95) | (0.94) | (0.78) | (0.71) | (0.64) | (0.48) |
| Net asset value, end of period | $58.25 | $54.64 | $47.16 | $49.07 | $43.69 | $30.93 |
| Total returnd | 8.43% | 18.04% | (2.22)% | 13.98% | 43.52% | (6.74)% |
| Ratios to average net assetse | | | | | | |
| Expenses before waiver and payments by affiliates | 0.29% | 0.29% | 0.29% | 0.33% | 0.37% | 0.57% |
| Expenses net of waiver and payments by affiliates | 0.29% | 0.29% | 0.29% | 0.29% | 0.29% | 0.33% |
| Net investment income | 2.88% | 1.78% | 1.66% | 1.47% | 1.71% | 1.75% |
| Supplemental data | | | | | | |
| Net assets, end of period (000’s) | $96,117 | $120,214 | $155,613 | $134,935 | $139,822 | $74,223 |
| Portfolio turnover ratef | 5.92%g | 23.59%g | 32.13%g | 21.90%g | 40.54%g | 32.61%g |
| aEffective May 31, 2024, Franklin U.S. Low Volatility ETF was renamed Franklin Income Equity Focus ETF. |
| bThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of Creation Unit Fund shares in relation to income earned and/or fluctuating fair value of the investments of the Fund. |
| cBased on average daily shares outstanding. |
| dTotal return is not annualized for periods less than one year. Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. |
| eRatios are annualized for periods less than one year. |
| fPortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash ("Cash creations"). |
| gPortfolio turnover rate excluding cash creations was as follows: | 5.92% | 23.59% | 32.13% | 21.90% | 40.54% | 32.61% |
| 43 | Semi-Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments, September 30, 2024 (unaudited)
Franklin Income Equity Focus ETF
| | | | Shares | | Value |
| | Common Stocks 62.1% | | | | |
| | Communication Services 3.1% | | | | |
| | Verizon Communications, Inc. | | 66,429 | | $ 2,983,327 |
| | Consumer Discretionary 6.1% | | | | |
| | General Motors Co. | | 17,953 | | 805,013 |
| | Home Depot, Inc. | | 3,855 | | 1,562,046 |
| | Lowe’s Cos., Inc. | | 4,813 | | 1,303,601 |
| | McDonald’s Corp. | | 3,729 | | 1,135,518 |
| | Starbucks Corp. | | 11,088 | | 1,080,969 |
| | | | | | 5,887,147 |
| | Consumer Staples 6.1% | | | | |
| | Coca-Cola Co. | | 14,798 | | 1,063,384 |
| | PepsiCo, Inc. | | 10,296 | | 1,750,835 |
| | Philip Morris International, Inc. | | 9,142 | | 1,109,839 |
| | Procter & Gamble Co. | | 11,035 | | 1,911,262 |
| | | | | | 5,835,320 |
| | Energy 5.8% | | | | |
| | Chevron Corp. | | 16,850 | | 2,481,499 |
| | Exxon Mobil Corp. | | 12,508 | | 1,466,188 |
| | TotalEnergies SE, ADR | | 25,576 | | 1,652,721 |
| | | | | | 5,600,408 |
| | Financials 9.1% | | | | |
| | Bank of America Corp. | | 21,539 | | 854,668 |
| | Charles Schwab Corp. | | 17,535 | | 1,136,443 |
| | Citigroup, Inc. | | 11,188 | | 700,369 |
| | Fifth Third Bancorp | | 11,942 | | 511,595 |
| | JPMorgan Chase & Co. | | 5,841 | | 1,231,633 |
| | Mastercard, Inc., Class A | | 993 | | 490,343 |
| | MetLife, Inc. | | 14,850 | | 1,224,828 |
| | Morgan Stanley | | 10,588 | | 1,103,693 |
| | PNC Financial Services Group, Inc. | | 2,772 | | 512,404 |
| | U.S. Bancorp | | 21,780 | | 996,000 |
| | | | | | 8,761,976 |
| | Health Care 5.0% | | | | |
| | Abbott Laboratories | | 9,177 | | 1,046,270 |
| | CVS Health Corp. | | 13,047 | | 820,395 |
| | Johnson & Johnson | | 18,019 | | 2,920,159 |
| | | | | | 4,786,824 |
| | Industrials 10.3% | | | | |
| | Honeywell International, Inc. | | 4,560 | | 942,598 |
| | Johnson Controls International PLC | | 24,552 | | 1,905,481 |
| | Lockheed Martin Corp. | | 3,938 | | 2,301,997 |
| | Northrop Grumman Corp. | | 1,980 | | 1,045,578 |
| | RTX Corp. | | 11,452 | | 1,387,524 |
| | Union Pacific Corp. | | 5,754 | | 1,418,246 |
| | United Parcel Service, Inc., Class B | | 6,258 | | 853,216 |
| | | | | | 9,854,640 |
| | Information Technology 4.6% | | | | |
| | Analog Devices, Inc. | | 5,903 | | 1,358,693 |
| | Cisco Systems, Inc. | | 18,521 | | 985,688 |
| | International Business Machines Corp. | | 4,196 | | 927,652 |
| | Texas Instruments, Inc. | | 5,775 | | 1,192,942 |
| | | | | | 4,464,975 |
| franklintempleton.com | Semi-Annual Report | 44 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin Income Equity Focus ETF (continued)
| | | | Shares | | Value |
| | Materials 6.0% | | | | |
| | Air Products & Chemicals, Inc. | | 5,949 | | $ 1,771,255 |
| | Albemarle Corp. | | 4,648 | | 440,212 |
| | Freeport-McMoRan, Inc. | | 11,272 | | 562,698 |
| | Newmont Corp. | | 20,811 | | 1,112,348 |
| | Rio Tinto PLC, ADR | | 25,802 | | 1,836,329 |
| | | | | | 5,722,842 |
| | Utilities 6.0% | | | | |
| | American Electric Power Co., Inc. | | 9,702 | | 995,425 |
| | Duke Energy Corp. | | 6,975 | | 804,218 |
| | Sempra | | 11,368 | | 950,706 |
| | Southern Co. | | 33,575 | | 3,027,793 |
| | | | | | 5,778,142 |
| | Total Common Stocks (Cost $53,987,224) | | | | 59,675,601 |
| | Preferred Stocks 3.0% | | | | |
| | Materials 1.4% | | | | |
| | Albemarle Corp., 7.25%, pfd. | | 30,525 | | 1,373,625 |
| | Utilities 1.6% | | | | |
| | NextEra Energy, Inc., 7.299%, pfd. | | 27,225 | | 1,509,626 |
| | Total Preferred Stocks (Cost $2,782,061) | | | | 2,883,251 |
| | Warrant 1.9% | | | | |
| | Financials 1.9% | | | | |
| a | Merrill Lynch BV | | 18,000 | | 1,812,703 |
| | Total Warrants (Cost $1,742,400) | | | | 1,812,703 |
| | Equity-Linked Securities 31.9% | | | | |
| | Other 31.9% | | | | |
| b | Barclays Bank PLC into AbbVie Inc., 8.00%, 10/9/25 | | 10,000 | | 1,945,609 |
| b | Barclays Bank PLC into Microchip Technology Inc., 10.00%, 10/14/25 | | 19,000 | | 1,515,676 |
| b | Barclays Bank PLC into RTX Corp., 7.50%, 10/16/25 | | 9,405 | | 1,122,053 |
| b | BNP Paribas Issuance BV into Hewlett Packard Enterprise, 12.00%, 9/24/25 | | 50,000 | | 990,108 |
| b | BNP Paribas Issuance BV into Pfizer Inc., 10.50%, 7/23/25 | | 42,000 | | 1,214,423 |
| b | BNP Paribas Issuance BV into Target Corp., 9.00%, 7/10/25 | | 7,100 | | 1,087,506 |
| b | BofA Finance LLC into S&P 500 Index, 8.50%, 10/2/24 | | 200 | | 1,123,429 |
| b | Citigroup Global Markets Holdings, Inc. into Alphabet Inc., 8.50%, 8/20/25 | | 6,000 | | 1,012,096 |
| b | Citigroup Global Markets Holdings, Inc. into Analog Devices Inc., 9.00%, 7/8/25 | | 8,100 | | 1,853,698 |
| b | Citigroup Global Markets Holdings, Inc. into The Home Depot Inc., 7.50%, 7/21/25 | | 3,300 | | 1,202,435 |
| b | JPMorgan Chase Bank NA into Comcast Corp., 8.50%, 9/2/25 | | 38,000 | | 1,548,155 |
| b | JPMorgan Chase Bank NA into Exxon Mobil Corp., 8.50%, 11/3/25 | | 11,000 | | 1,256,341 |
| b | Mizuho Markets Cayman LP into NextEra Energy Inc., 8.50%, 10/14/25 | | 17,500 | | 1,480,106 |
| b | Mizuho Markets Cayman LP into S&P 500 Index, 8.00%, 11/13/24 | | 200 | | 1,123,638 |
| b | Royal Bank of Canada into Freeport-McMoRan Inc., 10.00%, 7/8/25 | | 35,300 | | 1,747,866 |
| b | Royal Bank of Canada into Medtronic PLC, 8.00%, 8/7/25 | | 6,500 | | 554,157 |
| b | Royal Bank of Canada into S&P 500 Index, 7.50%, 10/22/24 | | 153 | | 865,999 |
| b | Royal Bank of Canada into Texas Instruments Inc., 8.50%, 7/15/25 | | 11,000 | | 2,185,348 |
| b | UBS AG into IBM US, 8.00%, 8/27/25 | | 8,000 | | 1,635,532 |
| b | UBS AG into S&P 500 Index, 7.50%, 12/3/24 | | 175 | | 992,892 |
| b | Wells Fargo Bank NA into Broadcom Inc., 9.50%, 8/20/25 | | 8,000 | | 1,335,712 |
| b | Wells Fargo Bank NA into UnitedHealth Group, 7.00%, 7/14/25 | | 3,550 | | 1,851,235 |
| 45 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin Income Equity Focus ETF (continued)
| | | | Shares | | Value |
| | Other (continued) | | | | |
| b | Wells Fargo Bank NA S&P 500 Index, 9.00%, 11/19/24 | | 200 | | $ 1,091,690 |
| | | | | | 30,735,704 |
| | Total Equity-Linked Securities (Cost $29,781,514) | | | | 30,735,704 |
| | Total Investments before Short-Term Investments
(Cost $88,293,199) | | | | 95,107,259 |
| |
| | | Country | Principal Amount* | | |
| | Short-Term Investments 0.9% | | | | |
| | U.S. Government & Agency Securities 0.9% | | | | |
| c | Federal Home Loan Bank Discount Notes, 10/01/24 | United States | $ 855,000 | | 854,890 |
| | Total Short-Term Investments (Cost $855,000) | | | | 854,890 |
| | Total Investments (Cost $89,148,199) 99.8% | | | | 95,962,149 |
| | Other Assets, less Liabilities 0.2% | | | | 154,863 |
| | Net Assets 100.0% | | | | $ 96,117,012 |
| *The principal amount is stated in U.S. dollars unless otherwise indicated. |
| aNon-income producing. |
| bSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At September 30, 2024, the value of was $30,735,704, representing 32.0% of net assets. |
| cThe security was issued on a discount basis with no stated coupon rate. |
See Abbreviations on page 171.
| franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Semi-Annual Report | 46 |
Franklin Templeton ETF Trust
Financial Highlights
Franklin Income Focus ETF
| | Six Months Ended
September 30, 2024
(unaudited) | Period Ended March 31,
2024a |
| |
| Per share operating performance | | |
| (for a share outstanding throughout the period) | | |
| Net asset value, beginning of period | $26.03 | $25.00 |
| Income from investment operationsb: | | |
| Net investment incomec | 0.68 | 1.12 |
| Net realized and unrealized gains (losses) | 1.18 | 0.92 |
| Total from investment operations | 1.86 | 2.04 |
| Less distributions from net investment income | (0.75) | (1.01) |
| Net asset value, end of period | $27.14 | $26.03 |
| Total returnd | 7.26% | 8.40% |
| Ratios to average net assetse | | |
| Total expenses | 0.38% | 0.38% |
| Net investment income | 5.22% | 5.49% |
| Supplemental data | | |
| Net assets, end of period (000’s) | $331,090 | $177,033 |
| Portfolio turnover ratef | 14.56%g | 46.93%g |
| aFor the period June 06, 2023 (commencement of operations) to March 31, 2024. |
| bThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of Creation Unit Fund shares in relation to income earned and/or fluctuating fair value of the investments of the Fund. |
| cBased on average daily shares outstanding. |
| dTotal return is not annualized for periods less than one year. Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. |
| eRatios are annualized for periods less than one year. |
| fPortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash ("Cash creations"). |
| gPortfolio turnover rate excluding cash creations was as follows: | 10.52% | 46.93% |
| 47 | Semi-Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments, September 30, 2024 (unaudited)
Franklin Income Focus ETF
| | | Country | | | Principal Amount* | Value |
| | Corporate Bonds & Notes 40.0% | | | | | |
| | Advertising 0.5% | | | | | |
| | Clear Channel Outdoor Holdings, Inc., | | | | | |
| | a 5.125%, 8/15/27 | United States | | | 820,000 | $ 806,739 |
| | a 9.00%, 9/15/28 | United States | | | 750,000 | 797,923 |
| | | | | | | 1,604,662 |
| | Aerospace & Defense 1.9% | | | | | |
| | Boeing Co., | | | | | |
| | 5.15%, 5/01/30 | United States | | | 3,060,000 | 3,068,385 |
| | a 6.528%, 5/01/34 | United States | | | 600,000 | 644,185 |
| a | Bombardier, Inc., 7.25%, 7/01/31 | Canada | | | 600,000 | 635,061 |
| | TransDigm, Inc., | | | | | |
| | 5.50%, 11/15/27 | United States | | | 1,250,000 | 1,246,648 |
| | a 6.75%, 8/15/28 | United States | | | 600,000 | 618,323 |
| | | | | | | 6,212,602 |
| | Agriculture 0.6% | | | | | |
| | BAT Capital Corp., | | | | | |
| | 7.75%, 10/19/32 | United Kingdom | | | 850,000 | 1,006,239 |
| | 6.421%, 8/02/33 | United Kingdom | | | 500,000 | 549,390 |
| | Philip Morris International, Inc., 5.375%, 2/15/33 | United States | | | 500,000 | 523,109 |
| | | | | | | 2,078,738 |
| | Airlines 2.2% | | | | | |
| a | American Airlines, Inc., 8.50%, 5/15/29 | United States | | | 1,650,000 | 1,751,705 |
| a | American Airlines, Inc./AAdvantage Loyalty IP Ltd., 5.75%, 4/20/29 | United States | | | 1,000,000 | 999,168 |
| a | Delta Air Lines, Inc./SkyMiles IP Ltd., 4.75%, 10/20/28 | United States | | | 1,900,000 | 1,898,311 |
| a | JetBlue Airways Corp./JetBlue Loyalty LP, 9.875%, 9/20/31 | United States | | | 750,000 | 790,717 |
| a | Mileage Plus Holdings LLC/Mileage Plus Intellectual Property Assets Ltd., 6.50%, 6/20/27 | United States | | | 913,000 | 925,037 |
| a | United Airlines, Inc., 4.625%, 4/15/29 | United States | | | 1,065,000 | 1,029,769 |
| | | | | | | 7,394,707 |
| | Apparel 0.1% | | | | | |
| a | Hanesbrands, Inc., 9.00%, 2/15/31 | United States | | | 350,000 | 378,120 |
| | Auto Manufacturers 1.6% | | | | | |
| | Ford Motor Co., | | | | | |
| | 3.25%, 2/12/32 | United States | | | 750,000 | 638,962 |
| | 6.10%, 8/19/32 | United States | | | 1,300,000 | 1,332,987 |
| | Ford Motor Credit Co. LLC, 7.35%, 3/06/30 | United States | | | 1,260,000 | 1,365,005 |
| | General Motors Financial Co., Inc., | | | | | |
| | 6.40%, 1/09/33 | United States | | | 1,115,000 | 1,189,355 |
| | 5.80%, 1/07/29 | United States | | | 850,000 | 884,374 |
| | | | | | | 5,410,683 |
| | Auto Parts & Equipment 0.2% | | | | | |
| a | Dornoch Debt Merger Sub, Inc., 6.625%, 10/15/29 | United States | | | 750,000 | 660,927 |
| | Banks 3.4% | | | | | |
| | Bank of America Corp., 4.571% to 4/27/32, FRN thereafter, 4/27/33 | United States | | | 1,500,000 | 1,493,273 |
| | Barclays PLC, 7.437% to 11/02/33, FRN thereafter, 11/02/33 | United Kingdom | | | 1,465,000 | 1,691,911 |
| | Citigroup, Inc., | | | | | |
| | 6.27% to 11/17/32, FRN thereafter, 11/17/33 | United States | | | 500,000 | 549,440 |
| | 6.174% to 5/25/33, FRN thereafter, 5/25/34 | United States | | | 495,000 | 528,365 |
| | Fifth Third Bank NA, 5.852% to 10/27/24, FRN thereafter, 10/27/25 | United States | | | 500,000 | 500,178 |
| | Goldman Sachs Group, Inc., 6.561% to 10/24/33, FRN thereafter, 10/24/34 | United States | | | 825,000 | 931,737 |
| | JPMorgan Chase & Co., 5.04% to 1/23/27, FRN thereafter, 1/23/28 | United States | | | 980,000 | 996,514 |
| | KeyBank NA, 4.90%, 8/08/32 | United States | | | 615,000 | 598,954 |
| franklintempleton.com | Semi-Annual Report | 48 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin Income Focus ETF (continued)
| | | Country | | | Principal Amount* | Value |
| | Corporate Bonds & Notes (continued) | | | | | |
| | Banks (continued) | | | | | |
| | Morgan Stanley, 6.342% to 10/18/32, FRN thereafter, 10/18/33 | United States | | | 1,148,000 | $ 1,277,060 |
| | PNC Financial Services Group, Inc., 5.068% to 1/24/33, FRN thereafter, 1/24/34 | United States | | | 510,000 | 517,320 |
| | Truist Financial Corp., 4.916% to 7/28/32, FRN thereafter, 7/28/33 | United States | | | 540,000 | 529,720 |
| | U.S. Bancorp, 5.836% to 6/10/33, FRN thereafter, 6/12/34 | United States | | | 300,000 | 320,442 |
| | Wells Fargo & Co., 5.389% to 4/24/33, FRN thereafter, 4/24/34 | United States | | | 1,101,000 | 1,142,494 |
| | | | | | | 11,077,408 |
| | Building Products 0.1% | | | | | |
| a | AmeriTex HoldCo Intermediate LLC, 10.25%, 10/15/28 | United States | | | 250,000 | 261,833 |
| | Chemicals 0.7% | | | | | |
| | Celanese U.S. Holdings LLC, 6.379%, 7/15/32 | United States | | | 725,000 | 775,459 |
| a | Rain Carbon, Inc., 12.25%, 9/01/29 | United States | | | 500,000 | 540,673 |
| a | SCIH Salt Holdings, Inc., 4.875%, 5/01/28 | United States | | | 1,155,000 | 1,114,613 |
| | | | | | | 2,430,745 |
| | Commercial Services & Supplies 0.5% | | | | | |
| a | Ashtead Capital, Inc., 4.25%, 11/01/29 | United Kingdom | | | 550,000 | 535,428 |
| a | MPH Acquisition Holdings LLC, 5.50%, 9/01/28 | United States | | | 925,000 | 667,845 |
| a | United Rentals North America, Inc., 6.00%, 12/15/29 | United States | | | 485,000 | 501,003 |
| | | | | | | 1,704,276 |
| | Construction Materials 0.4% | | | | | |
| | Carrier Global Corp., 2.722%, 2/15/30 | United States | | | 850,000 | 786,072 |
| a | EMRLD Borrower LP/Emerald Co-Issuer, Inc., 6.625%, 12/15/30 | United States | | | 500,000 | 516,172 |
| | | | | | | 1,302,244 |
| | Electric 3.2% | | | | | |
| | American Electric Power Co., Inc., 5.625%, 3/01/33 | United States | | | 300,000 | 316,708 |
| a | Calpine Corp., senior note, 5.125%, 3/15/28 | United States | | | 1,500,000 | 1,480,234 |
| | Dominion Energy, Inc., Series C, 3.375%, 4/01/30 | United States | | | 300,000 | 284,433 |
| | NextEra Energy Capital Holdings, Inc., 5.25%, 3/15/34 | United States | | | 500,000 | 519,505 |
| | NRG Energy, Inc., | | | | | |
| | a 3.625%, 2/15/31 | United States | | | 1,320,000 | 1,197,348 |
| | a 7.00%, 3/15/33 | United States | | | 750,000 | 833,633 |
| | Pacific Gas & Electric Co., 3.15%, 1/01/26 | United States | | | 1,800,000 | 1,766,533 |
| | Southern Co., 5.70%, 10/15/32 | United States | | | 480,000 | 514,676 |
| a | Vistra Corp., 8.00% to 12/31/99, FRN thereafter, 12/31/99 | United States | | | 1,100,000 | 1,153,232 |
| | Vistra Operations Co. LLC, | | | | | |
| | a 3.70%, 1/30/27 | United States | | | 535,000 | 524,413 |
| | a 7.75%, 10/15/31 | United States | | | 500,000 | 538,684 |
| | a 6.875%, 4/15/32 | United States | | | 1,400,000 | 1,473,847 |
| | | | | | | 10,603,246 |
| | Entertainment 0.9% | | | | | |
| | Caesars Entertainment, Inc., | | | | | |
| | a 8.125%, 7/01/27 | United States | | | 475,000 | 485,077 |
| | a 4.625%, 10/15/29 | United States | | | 855,000 | 813,843 |
| | Wynn Resorts Finance LLC/Wynn Resorts Capital Corp., | | | | | |
| | a 7.125%, 2/15/31 | United States | | | 700,000 | 755,666 |
| | a 6.25%, 3/15/33 | United States | | | 800,000 | 810,937 |
| | | | | | | 2,865,523 |
| | Financial Services 1.6% | | | | | |
| | AerCap Ireland Capital DAC/AerCap Global Aviation Trust, | | | | | |
| | 5.75%, 6/06/28 | Ireland | | | 500,000 | 521,286 |
| | 4.95%, 9/10/34 | Ireland | | | 750,000 | 746,244 |
| 49 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin Income Focus ETF (continued)
| | | Country | | | Principal Amount* | Value |
| | Corporate Bonds & Notes (continued) | | | | | |
| | Financial Services (continued) | | | | | |
| | Capital One Financial Corp., | | | | | |
| | 3.75%, 7/28/26 | United States | | | 600,000 | $ 591,920 |
| | 4.927% to 5/10/27, FRN thereafter, 5/10/28 | United States | | | 765,000 | 774,284 |
| | 5.817% to 2/01/33, FRN thereafter, 2/01/34 | United States | | | 1,000,000 | 1,040,957 |
| | Charles Schwab Corp., | | | | | |
| | 5.853% to 5/19/33, FRN thereafter, 5/19/34 | United States | | | 490,000 | 524,911 |
| | 6.196% to 11/17/28, FRN thereafter, 11/17/29 | United States | | | 500,000 | 534,620 |
| a | Macquarie Airfinance Holdings Ltd., 6.40%, 3/26/29 | United Kingdom | | | 500,000 | 520,762 |
| | | | | | | 5,254,984 |
| | Food 0.7% | | | | | |
| | JBS USA Holding Lux SARL/JBS USA Food Co./JBS Lux Co. SARL, 5.75%, 4/01/33 | United States | | | 530,000 | 549,454 |
| | Pilgrim’s Pride Corp., 6.25%, 7/01/33 | United States | | | 1,000,000 | 1,062,211 |
| a | Post Holdings, Inc., 6.25%, 2/15/32 | United States | | | 700,000 | 721,670 |
| | | | | | | 2,333,335 |
| | Hand/Machine Tools 0.2% | | | | | |
| | Regal Rexnord Corp., 6.40%, 4/15/33 | United States | | | 500,000 | 535,107 |
| | Health Care Providers & Services 4.6% | | | | | |
| | Centene Corp., 2.50%, 3/01/31 | United States | | | 2,030,000 | 1,746,562 |
| | CHS/Community Health Systems, Inc., | | | | | |
| | a 8.00%, 12/15/27 | United States | | | 1,450,000 | 1,455,954 |
| | a 6.875%, 4/01/28 | United States | | | 705,000 | 595,990 |
| | a 10.875%, 1/15/32 | United States | | | 2,625,000 | 2,895,992 |
| | DaVita, Inc., | | | | | |
| | a 4.625%, 6/01/30 | United States | | | 1,520,000 | 1,450,133 |
| | a 6.875%, 9/01/32 | United States | | | 500,000 | 516,953 |
| a | Fresenius Medical Care U.S. Finance III, Inc., 2.375%, 2/16/31 | Germany | | | 645,000 | 545,764 |
| | HCA, Inc., 5.625%, 9/01/28 | United States | | | 2,085,000 | 2,165,244 |
| | Tenet Healthcare Corp., 6.125%, 10/01/28 | United States | | | 3,375,000 | 3,404,632 |
| | UnitedHealth Group, Inc., 5.35%, 2/15/33 | United States | | | 500,000 | 531,301 |
| | | | | | | 15,308,525 |
| | Healthcare-Products 0.6% | | | | | |
| | GE HealthCare Technologies, Inc., 5.905%, 11/22/32 | United States | | | 475,000 | 514,741 |
| a | Medline Borrower LP, 3.875%, 4/01/29 | United States | | | 1,135,000 | 1,075,542 |
| a | Medline Borrower LP/Medline Co-Issuer, Inc., 6.25%, 4/01/29 | United States | | | 450,000 | 464,212 |
| | | | | | | 2,054,495 |
| | Insurance 0.3% | | | | | |
| | Brown & Brown, Inc., 2.375%, 3/15/31 | United States | | | 615,000 | 532,839 |
| a | Five Corners Funding Trust III, 5.791%, 2/15/33 | United States | | | 490,000 | 526,356 |
| | | | | | | 1,059,195 |
| | Internet 0.5% | | | | | |
| | Expedia Group, Inc., 3.80%, 2/15/28 | United States | | | 525,000 | 515,276 |
| | Netflix, Inc., 5.875%, 11/15/28 | United States | | | 945,000 | 1,007,387 |
| | | | | | | 1,522,663 |
| | Iron/Steel 0.3% | | | | | |
| | ArcelorMittal SA, 6.80%, 11/29/32 | Luxembourg | | | 485,000 | 541,258 |
| a | Cleveland-Cliffs, Inc., 6.75%, 4/15/30 | United States | | | 400,000 | 407,240 |
| | | | | | | 948,498 |
| | IT Services 0.7% | | | | | |
| | Dell International LLC/EMC Corp., 5.75%, 2/01/33 | United States | | | 300,000 | 322,068 |
| | Hewlett Packard Enterprise Co., 5.00%, 10/15/34 | United States | | | 750,000 | 742,820 |
| | HP, Inc., 5.50%, 1/15/33 | United States | | | 750,000 | 789,210 |
| franklintempleton.com | Semi-Annual Report | 50 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin Income Focus ETF (continued)
| | | Country | | | Principal Amount* | Value |
| | Corporate Bonds & Notes (continued) | | | | | |
| | IT Services (continued) | | | | | |
| a | McAfee Corp., 7.375%, 2/15/30 | United States | | | 565,000 | $ 551,631 |
| | | | | | | 2,405,729 |
| | Leisure Time 0.9% | | | | | |
| | Carnival Corp., | | | | | |
| | a 7.625%, 3/01/26 | United States | | | 1,590,000 | 1,605,717 |
| | a 10.50%, 6/01/30 | United States | | | 800,000 | 869,108 |
| a | Royal Caribbean Cruises Ltd., 6.25%, 3/15/32 | United States | | | 600,000 | 622,779 |
| | | | | | | 3,097,604 |
| | Lodging 0.5% | | | | | |
| a | Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp., 5.25%, 5/15/27 | United States | | | 775,000 | 776,120 |
| a | Wynn Macau Ltd., 5.50%, 1/15/26 | Macau | | | 980,000 | 973,308 |
| | | | | | | 1,749,428 |
| | Media 1.0% | | | | | |
| | CCO Holdings LLC/CCO Holdings Capital Corp., | | | | | |
| | a 5.00%, 2/01/28 | United States | | | 1,350,000 | 1,314,229 |
| | a 5.125%, 5/01/27 | United States | | | 1,000,000 | 984,956 |
| | Charter Communications Operating LLC/Charter Communications Operating Capital, 4.908%, 7/23/25 | United States | | | 600,000 | 599,181 |
| a | Univision Communications, Inc., senior note, 6.625%, 6/01/27 | United States | | | 520,000 | 522,043 |
| | | | | | | 3,420,409 |
| | Mining 0.7% | | | | | |
| a | Alcoa Nederland Holding BV, 4.125%, 3/31/29 | United States | | | 825,000 | 792,024 |
| a | FMG Resources August 2006 Pty. Ltd., 6.125%, 4/15/32 | Australia | | | 770,000 | 788,410 |
| | Freeport-McMoRan, Inc., 5.40%, 11/14/34 | United States | | | 775,000 | 804,572 |
| | | | | | | 2,385,006 |
| | Oil & Gas 1.2% | | | | | |
| | Calumet Specialty Products Partners LP/Calumet Finance Corp., | | | | | |
| | a 8.125%, 1/15/27 | United States | | | 1,925,000 | 1,875,085 |
| | a 9.25%, 7/15/29 | United States | | | 300,000 | 308,607 |
| | a 9.75%, 7/15/28 | United States | | | 400,000 | 393,480 |
| a | Matador Resources Co., 6.50%, 4/15/32 | United States | | | 450,000 | 449,666 |
| | Occidental Petroleum Corp., 6.625%, 9/01/30 | United States | | | 700,000 | 755,633 |
| | | | | | | 3,782,471 |
| | Oil & Gas Services 0.3% | | | | | |
| a | Weatherford International Ltd., 8.625%, 4/30/30 | United States | | | 1,040,000 | 1,084,456 |
| | Packaging & Containers 1.8% | | | | | |
| a | Ardagh Metal Packaging Finance USA LLC/Ardagh Metal Packaging Finance PLC, 4.00%, 9/01/29 | United States | | | 1,150,000 | 1,027,563 |
| a | Ardagh Packaging Finance PLC/Ardagh Holdings USA, Inc., senior note, 5.25%, 8/15/27 | Luxembourg | | | 3,235,000 | 2,414,492 |
| | Mauser Packaging Solutions Holding Co., | | | | | |
| | a 9.25%, 4/15/27 | United States | | | 1,400,000 | 1,436,832 |
| | a 7.875%, 4/15/27 | United States | | | 1,065,000 | 1,101,665 |
| | | | | | | 5,980,552 |
| | Pharmaceuticals 1.7% | | | | | |
| a | 1375209 BC Ltd., 9.00%, 1/30/28 | Canada | | | 1,625,000 | 1,612,049 |
| | AbbVie, Inc., 4.55%, 3/15/35 | United States | | | 520,000 | 520,335 |
| a | Bausch Health Cos., Inc., 5.50%, 11/01/25 | United States | | | 1,140,000 | 1,116,645 |
| | CVS Health Corp., 5.25%, 2/21/33 | United States | | | 1,000,000 | 1,022,102 |
| a | Endo Finance Holdings, Inc., 8.50%, 4/15/31 | United States | | | 500,000 | 536,391 |
| 51 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin Income Focus ETF (continued)
| | | Country | | | Principal Amount* | Value |
| | Corporate Bonds & Notes (continued) | | | | | |
| | Pharmaceuticals (continued) | | | | | |
| | Teva Pharmaceutical Finance Netherlands III BV, 6.75%, 3/01/28 | Israel | | | 600,000 | $ 625,832 |
| | | | | | | 5,433,354 |
| | Pipelines 1.4% | | | | | |
| | Cheniere Corpus Christi Holdings LLC, 3.70%, 11/15/29 | United States | | | 800,000 | 769,515 |
| | Kinder Morgan, Inc., | | | | | |
| | 5.20%, 6/01/33 | United States | | | 515,000 | 521,560 |
| | 5.40%, 2/01/34 | United States | | | 775,000 | 794,498 |
| | Venture Global LNG, Inc., | | | | | |
| | a 8.125%, 6/01/28 | United States | | | 740,000 | 771,960 |
| | a 9.00% to 12/31/99, FRN thereafter, 12/31/99 | United States | | | 1,000,000 | 1,014,394 |
| | Williams Cos., Inc., 3.50%, 11/15/30 | United States | | | 825,000 | 780,192 |
| | | | | | | 4,652,119 |
| | Real Estate Management & Development 0.8% | | | | | |
| | American Tower Corp., 5.55%, 7/15/33 | United States | | | 850,000 | 891,231 |
| | Crown Castle, Inc., 5.10%, 5/01/33 | United States | | | 300,000 | 303,957 |
| | Healthpeak OP LLC, 5.25%, 12/15/32 | United States | | | 500,000 | 515,374 |
| | VICI Properties LP, 5.125%, 5/15/32 | United States | | | 800,000 | 803,939 |
| | | | | | | 2,514,501 |
| | Retail 1.1% | | | | | |
| a | Bausch & Lomb Corp., 8.375%, 10/01/28 | United States | | | 675,000 | 714,656 |
| | Fertitta Entertainment LLC/Fertitta Entertainment Finance Co., Inc., | | | | | |
| | a 4.625%, 1/15/29 | United States | | | 1,315,000 | 1,256,586 |
| | a 6.75%, 1/15/30 | United States | | | 800,000 | 745,850 |
| | Lowe’s Cos., Inc., 5.00%, 4/15/33 | United States | | | 1,000,000 | 1,031,690 |
| | | | | | | 3,748,782 |
| | Semiconductors 0.6% | | | | | |
| a | Broadcom, Inc., 3.469%, 4/15/34 | United States | | | 1,315,000 | 1,184,668 |
| | Micron Technology, Inc., 5.327%, 2/06/29 | United States | | | 350,000 | 361,814 |
| | NXP BV/NXP Funding LLC, 5.55%, 12/01/28 | China | | | 500,000 | 519,303 |
| | | | | | | 2,065,785 |
| | Software 1.0% | | | | | |
| a | Cloud Software Group, Inc., 6.50%, 3/31/29 | United States | | | 900,000 | 896,230 |
| | Fiserv, Inc., 5.60%, 3/02/33 | United States | | | 400,000 | 423,886 |
| | Oracle Corp., | | | | | |
| | 2.875%, 3/25/31 | United States | | | 650,000 | 591,645 |
| | 6.25%, 11/09/32 | United States | | | 720,000 | 796,934 |
| | Workday, Inc., 3.80%, 4/01/32 | United States | | | 550,000 | 522,315 |
| | | | | | | 3,231,010 |
| | Telecommunications 1.2% | | | | | |
| a | CommScope LLC, 6.00%, 3/01/26 | United States | | | 2,200,000 | 2,142,250 |
| a | CommScope Technologies LLC, 6.00%, 6/15/25 | United States | | | 500,000 | 484,375 |
| | Sprint LLC, 7.625%, 3/01/26 | United States | | | 470,000 | 485,844 |
| | T-Mobile USA, Inc., 5.05%, 7/15/33 | United States | | | 900,000 | 922,911 |
| | | | | | | 4,035,380 |
| | Total Corporate Bonds & Notes (Cost $127,573,647) | | | | | 132,589,102 |
| | U.S. Government & Agency Securities 10.9% | | | | | |
| | Federal Home Loan Mortgage Corp., | | | | | |
| | 5.00%, 5/01/53 | United States | | | 1,010,247 | 1,010,700 |
| | 5.50%, 7/01/53 | United States | | | 492,533 | 498,382 |
| | 5.50%, 11/01/53 | United States | | | 498,500 | 504,571 |
| franklintempleton.com | Semi-Annual Report | 52 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin Income Focus ETF (continued)
| | | Country | | | Principal Amount* | Value |
| | U.S. Government & Agency Securities (continued) | | | | | |
| | Federal National Mortgage Association, | | | | | |
| | 5.00%, 5/01/53 | United States | | | 1,002,356 | $ 1,002,805 |
| | 5.00%, 11/01/53 | United States | | | 1,512,063 | 1,511,941 |
| | U.S. Treasury Bonds, 3.625%, 5/15/53 | United States | | | 2,000,000 | 1,820,625 |
| | U.S. Treasury Notes, | | | | | |
| | 4.00%, 2/15/34 | United States | | | 4,000,000 | 4,069,688 |
| | 4.375%, 12/15/26 | United States | | | 2,000,000 | 2,032,031 |
| | 4.625%, 6/30/26 | United States | | | 5,000,000 | 5,077,441 |
| | 4.625%, 4/30/29 | United States | | | 2,500,000 | 2,611,084 |
| | U.S. Treasury STRIPS Principal, | | | | | |
| | b zero cpn., 2/15/45 | United States | | | 14,000,000 | 5,926,174 |
| | b zero cpn., 5/15/53 | United States | | | 31,500,000 | 9,850,968 |
| | Total U.S. Government & Agency Securities (Cost $34,286,001) | | | | | 35,916,410 |
| |
| | | | | | Shares | |
| | Common Stocks 29.2% | | | | | |
| | Aerospace & Defense 2.0% | | | | | |
| | Lockheed Martin Corp. | United States | | | 5,297 | 3,096,414 |
| | RTX Corp. | United States | | | 15,484 | 1,876,041 |
| | TransDigm Group, Inc. | United States | | | 1,128 | 1,609,803 |
| | | | | | | 6,582,258 |
| | Banks 3.6% | | | | | |
| | Bank of America Corp. | United States | | | 83,075 | 3,296,416 |
| | Citigroup, Inc. | United States | | | 296 | 18,529 |
| | JPMorgan Chase & Co. | United States | | | 20,824 | 4,390,949 |
| | Truist Financial Corp. | United States | | | 46,393 | 1,984,229 |
| | U.S. Bancorp | United States | | | 51,840 | 2,370,643 |
| | | | | | | 12,060,766 |
| | Beverages 1.6% | | | | | |
| | Coca-Cola Co. | United States | | | 39,139 | 2,812,529 |
| | PepsiCo, Inc. | United States | | | 14,839 | 2,523,372 |
| | | | | | | 5,335,901 |
| | Biotechnology 0.8% | | | | | |
| | AbbVie, Inc. | United States | | | 14,251 | 2,814,288 |
| | Building Products 0.7% | | | | | |
| | Johnson Controls International PLC | United States | | | 29,818 | 2,314,175 |
| | Capital Markets 0.9% | | | | | |
| | Morgan Stanley | United States | | | 29,537 | 3,078,937 |
| | Chemicals 1.3% | | | | | |
| | Air Products & Chemicals, Inc. | United States | | | 8,458 | 2,518,285 |
| | Albemarle Corp. | United States | | | 19,010 | 1,800,437 |
| | | | | | | 4,318,722 |
| | Communications Equipment 0.5% | | | | | |
| | Cisco Systems, Inc. | United States | | | 29,568 | 1,573,609 |
| | Diversified Telecommunication Services 0.8% | | | | | |
| | Verizon Communications, Inc. | United States | | | 58,451 | 2,625,034 |
| | Electric Utilities 3.1% | | | | | |
| | Duke Energy Corp. | United States | | | 33,192 | 3,827,038 |
| | Edison International | United States | | | 11,350 | 988,471 |
| | NextEra Energy, Inc. | United States | | | 22,619 | 1,911,984 |
| 53 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin Income Focus ETF (continued)
| | | Country | | | Shares | Value |
| | Common Stocks (continued) | | | | | |
| | Electric Utilities (continued) | | | | | |
| | Southern Co. | United States | | | 30,355 | $ 2,737,414 |
| | Xcel Energy, Inc. | United States | | | 14,214 | 928,174 |
| | | | | | | 10,393,081 |
| | Hotels, Restaurants & Leisure 0.5% | | | | | |
| | Starbucks Corp. | United States | | | 16,187 | 1,578,071 |
| | Household Products 1.1% | | | | | |
| | Procter & Gamble Co. | United States | | | 20,362 | 3,526,698 |
| | Industrial Conglomerates 0.8% | | | | | |
| | Honeywell International, Inc. | United States | | | 12,048 | 2,490,442 |
| | Machinery 0.5% | | | | | |
| | Illinois Tool Works, Inc. | United States | | | 6,667 | 1,747,221 |
| | Media 0.0%† | | | | | |
| | Comcast Corp., Class A | United States | | | 368 | 15,371 |
| | Metals & Mining 0.9% | | | | | |
| | BHP Group Ltd., ADR | Australia | | | 47,398 | 2,943,890 |
| | Multi-Utilities 0.3% | | | | | |
| | Sempra | United States | | | 10,503 | 878,366 |
| | Oil, Gas & Consumable Fuels 3.7% | | | | | |
| | Chevron Corp. | United States | | | 35,231 | 5,188,469 |
| | Exxon Mobil Corp. | United States | | | 41,107 | 4,818,562 |
| | TotalEnergies SE, ADR | France | | | 35,967 | 2,324,188 |
| | | | | | | 12,331,219 |
| | Pharmaceuticals 2.8% | | | | | |
| | Johnson & Johnson | United States | | | 25,929 | 4,202,053 |
| | Merck & Co., Inc. | United States | | | 22,066 | 2,505,815 |
| | Roche Holding AG, ADR | United States | | | 63,325 | 2,529,834 |
| | | | | | | 9,237,702 |
| | Semiconductors & Semiconductor Equipment 1.6% | | | | | |
| | Analog Devices, Inc. | United States | | | 15,063 | 3,467,051 |
| | Microchip Technology, Inc. | United States | | | 21,927 | 1,760,519 |
| | | | | | | 5,227,570 |
| | Specialty Retail 0.8% | | | | | |
| | Home Depot, Inc. | United States | | | 6,462 | 2,618,402 |
| | Tobacco 0.9% | | | | | |
| | Philip Morris International, Inc. | United States | | | 23,947 | 2,907,166 |
| | Total Common Stocks (Cost $86,212,227) | | | | | 96,598,889 |
| | Preferred Stocks 1.0% | | | | | |
| | Electric Utilities 1.0% | | | | | |
| | NextEra Energy, Inc., 6.926%, pfd. | United States | | | 35,969 | 1,667,523 |
| | NextEra Energy, Inc., 7.299%, pfd. | United States | | | 31,890 | 1,768,300 |
| | | | | | | 3,435,823 |
| | Total Preferred Stocks (Cost $3,265,408) | | | | | 3,435,823 |
| | Equity-Linked Securities 15.9% | | | | | |
| | Other 15.9% | | | | | |
| a | Barclays Bank PLC into IBM US, 8.50%, 6/9/25 | United Kingdom | | | 7,000 | 1,338,679 |
| a | BNP Paribas Issuance BV into Freeport-Mcmoran Inc., 7.50%, 11/26/25 | Netherlands | | | 56,000 | 2,659,679 |
| a | BNP Paribas Issuance BV into S&P 500 Index, 7.50%, 11/26/25 | Netherlands | | | 625 | 3,552,958 |
| franklintempleton.com | Semi-Annual Report | 54 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin Income Focus ETF (continued)
| | | Country | | | Shares | Value |
| | Equity-Linked Securities (continued) | | | | | |
| | Other (continued) | | | | | |
| a | BNP Paribas Issuance BV into Target Corp., 9.00%, 7/10/25 | Netherlands | | | 8,600 | $ 1,317,260 |
| a | BofA Finance LLC into S&P 500 Index, 8.50%, 10/2/24 | United States | | | 480 | 2,696,229 |
| a | BofA Finance LLC into S&P 500 Index, 12.00%, 12/24/24 | United States | | | 610 | 3,512,434 |
| a | Citigroup Global Markets Holdings, Inc. into The Home Depot Inc., 7.50%, 7/21/25 | United States | | | 3,750 | 1,366,403 |
| a | JPMorgan Chase Bank NA into Alphabet Inc., Class A, 8.00%, 3/28/25 | United States | | | 12,000 | 1,837,753 |
| a | JPMorgan Chase Bank NA into Comcast Corp., 8.50%, 9/2/25 | United States | | | 42,000 | 1,711,119 |
| a | JPMorgan Chase Bank NA into Exxon Mobil Corp., 8.50%, 11/3/25 | United States | | | 11,000 | 1,256,341 |
| a | Merrill Lynch BV into Microsoft Inc., 7.50%, 10/06/25 | United States | | | 3,000 | 1,286,177 |
| a | Mizuho Markets Cayman LP into S&P 500 Index, 8.00%, 11/13/24 | Japan | | | 600 | 3,370,916 |
| a | National Bank of Canada into Broadcom Inc., 11.50%, 5/13/25 | Canada | | | 750 | 1,033,273 |
| a | Royal Bank of Canada into Cisco Systems Inc., 8.00%, 9/17/25 | Canada | | | 30,000 | 1,547,181 |
| a | Royal Bank of Canada into Citigroup Inc., 8.50%, 8/27/25 | Canada | | | 40,000 | 2,446,257 |
| a | Royal Bank of Canada into S&P 500 Index, 7.50%, 10/22/24 | Canada | | | 480 | 2,716,860 |
| a | Royal Bank of Canada into Texas Instruments Inc., 8.00%, 6/11/25 | Canada | | | 25,000 | 5,092,988 |
| a | UBS AG into Apple Inc., 7.00%, 4/2/25 | Switzerland | | | 6,000 | 1,141,355 |
| a | UBS AG into S&P 500 Index, 7.00%, 10/22/24 | Switzerland | | | 475 | 2,616,256 |
| a | UBS AG into S&P 500 Index, 7.50%, 12/3/24 | United Kingdom | | | 575 | 3,262,360 |
| a | Wells Fargo Bank NA S&P 500 Index, 9.00%, 11/19/24 | United States | | | 600 | 3,275,069 |
| a | Wells Fargo Bank NA S&P 500 Index, 7.00%, 11/19/24 | United States | | | 625 | 3,553,477 |
| | | | | | | 52,591,024 |
| | Total Equity-Linked Securities (Cost $50,858,812) | | | | | 52,591,024 |
| | Total Investments (Cost $302,196,095) 97.0% | | | | | 321,131,248 |
| | Other Assets, less Liabilities 3.0% | | | | | 9,958,406 |
| | Net Assets 100.0% | | | | | $ 331,089,654 |
| *The principal amount is stated in U.S. dollars unless otherwise indicated. |
| †Rounds to less than 0.1% of net assets. |
| aSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At September 30, 2024, the value of was $122,276,283, representing 36.9% of net assets. |
| bThe security was issued on a discount basis with no stated coupon rate. |
See Abbreviations on page 171.
| 55 | Semi-Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
Franklin Templeton ETF Trust
Financial Highlights
Franklin Intelligent Machines ETF
| | Six Months Ended
September 30, 2024
(unaudited) | Year Ended March 31, | Period Ended March 31,
2020a |
| | 2024 | 2023 | 2022 | 2021 |
| Per share operating performance | | | | | | |
| (for a share outstanding throughout the period) | | | | | | |
| Net asset value, beginning of period | $58.34 | $44.16 | $46.30 | $43.24 | $20.67 | $25.00 |
| Income from investment operationsb: | | | | | | |
| Net investment income (loss)c | (0.03) | (0.03) | — | (0.10) | (0.06) | — |
| Net realized and unrealized gains (losses) | 4.96 | 14.21 | (2.14) | 3.25 | 22.63 | (4.33) |
| Total from investment operations | 4.93 | 14.18 | (2.14) | 3.15 | 22.57 | (4.33) |
| Less distributions from: | | | | | | |
| Net investment income | — | — | — | — | (0.00)d | — |
| Net realized gains | — | — | — | (0.09) | — | — |
| Total distributions | — | — | — | (0.09) | — | — |
| Net asset value, end of period | $63.27 | $58.34 | $44.16 | $46.30 | $43.24 | $20.67 |
| Total returne | 8.43% | 32.13% | (4.62)% | 7.27% | 109.21% | (17.32)% |
| Ratios to average net assetsf | | | | | | |
| Expenses before waiver and payments by affiliates | 0.50% | 0.50% | 0.50% | 0.77% | 2.19% | 12.91% |
| Expenses net of waiver and payments by affiliates | 0.50% | 0.50% | 0.50% | 0.50% | 0.50% | 0.50% |
| Net investment income (loss) | (0.09)% | (0.07)% | —% | (0.21)% | (0.17)% | 0.20% |
| Supplemental data | | | | | | |
| Net assets, end of period (000’s) | $25,310 | $20,419 | $8,832 | $11,574 | $10,809 | $2,067 |
| Portfolio turnover rateg | 5.23%h | 11.93%h | 19.82%h | 35.98%h | 75.25%h | —%h |
| aFor the period February 25, 2020 (commencement of operations) to March 31, 2020. |
| bThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of Creation Unit Fund shares in relation to income earned and/or fluctuating fair value of the investments of the Fund. |
| cBased on average daily shares outstanding. |
| dAmount rounds to less than $0.005 per share. |
| eTotal return is not annualized for periods less than one year. Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. |
| fRatios are annualized for periods less than one year. |
| gPortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash ("Cash creations"). |
| hPortfolio turnover rate excluding cash creations was as follows: | 5.23% | 10.90% | 19.38% | 35.98% | 75.25% | — |
| franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Semi-Annual Report | 56 |
Franklin Templeton ETF Trust
Schedule of Investments, September 30, 2024 (unaudited)
Franklin Intelligent Machines ETF
| | | Country | Shares | | Value |
| | Common Stocks 99.2% | | | | |
| | Aerospace & Defense 3.9% | | | | |
| a | Axon Enterprise, Inc. | United States | 2,480 | | $ 991,008 |
| | Automobiles 3.5% | | | | |
| a | Tesla, Inc. | United States | 3,434 | | 898,437 |
| | Construction & Engineering 3.6% | | | | |
| | Quanta Services, Inc. | United States | 2,161 | | 644,302 |
| | Valmont Industries, Inc. | United States | 932 | | 270,234 |
| | | | | | 914,536 |
| | Electrical Equipment 1.9% | | | | |
| | Eaton Corp. PLC | United States | 1,013 | | 335,749 |
| | Vertiv Holdings Co., Class A | United States | 1,335 | | 132,819 |
| | | | | | 468,568 |
| | Electronic Equipment, Instruments & Components 6.0% | | | | |
| | Amphenol Corp., Class A | United States | 6,216 | | 405,035 |
| | Keyence Corp. | Japan | 1,025 | | 489,856 |
| a | Keysight Technologies, Inc. | United States | 1,339 | | 212,807 |
| | TE Connectivity PLC | Ireland | 1,082 | | 163,371 |
| a | Trimble, Inc. | United States | 1,781 | | 110,582 |
| a | Zebra Technologies Corp., Class A | United States | 365 | | 135,167 |
| | | | | | 1,516,818 |
| | Ground Transportation 1.1% | | | | |
| a | Uber Technologies, Inc. | United States | 3,592 | | 269,975 |
| | Health Care Equipment & Supplies 7.9% | | | | |
| a | Align Technology, Inc. | United States | 469 | | 119,276 |
| a | IDEXX Laboratories, Inc. | United States | 624 | | 315,257 |
| a | Intuitive Surgical, Inc. | United States | 2,856 | | 1,403,067 |
| a | PROCEPT BioRobotics Corp. | United States | 2,005 | | 160,641 |
| | | | | | 1,998,241 |
| | Health Care Technology 0.7% | | | | |
| | Pro Medicus Ltd. | Australia | 1,448 | | 179,061 |
| | Household Durables 0.3% | | | | |
| | Panasonic Holdings Corp. | Japan | 9,040 | | 78,556 |
| | Industrial Conglomerates 0.9% | | | | |
| | Honeywell International, Inc. | United States | 441 | | 91,159 |
| | Siemens AG | Germany | 730 | | 147,741 |
| | | | | | 238,900 |
| | Semiconductors & Semiconductor Equipment 42.6% | | | | |
| a | Advanced Micro Devices, Inc. | United States | 3,918 | | 642,865 |
| | Analog Devices, Inc. | United States | 1,992 | | 458,499 |
| | Applied Materials, Inc. | United States | 3,589 | | 725,157 |
| | ASM International NV | Netherlands | 1,112 | | 731,474 |
| | ASML Holding NV | Netherlands | 1,259 | | 1,049,062 |
| | Broadcom, Inc. | United States | 3,230 | | 557,175 |
| | Entegris, Inc. | United States | 3,154 | | 354,920 |
| a | First Solar, Inc. | United States | 538 | | 134,199 |
| | Infineon Technologies AG | Germany | 6,050 | | 212,421 |
| | KLA Corp. | United States | 531 | | 411,212 |
| | Lam Research Corp. | United States | 424 | | 346,018 |
| | Microchip Technology, Inc. | United States | 1,219 | | 97,873 |
| | Monolithic Power Systems, Inc. | United States | 80 | | 73,960 |
| | NVIDIA Corp. | United States | 25,000 | | 3,036,000 |
| | NXP Semiconductors NV | Netherlands | 923 | | 221,529 |
| 57 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin Intelligent Machines ETF (continued)
| | | Country | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | Semiconductors & Semiconductor Equipment (continued) | | | | |
| a | SiTime Corp. | United States | 408 | | $ 69,976 |
| | Taiwan Semiconductor Manufacturing Co. Ltd., ADR | Taiwan | 5,673 | | 985,230 |
| | Teradyne, Inc. | United States | 3,608 | | 483,219 |
| | Texas Instruments, Inc. | United States | 891 | | 184,054 |
| | | | | | 10,774,843 |
| | Software 21.9% | | | | |
| a | Altair Engineering, Inc., Class A | United States | 3,115 | | 297,514 |
| a | ANSYS, Inc. | United States | 1,227 | | 390,959 |
| a | Autodesk, Inc. | United States | 1,683 | | 463,633 |
| | Bentley Systems, Inc., Class B | United States | 2,146 | | 109,038 |
| a | Cadence Design Systems, Inc. | United States | 3,603 | | 976,521 |
| | Constellation Software, Inc. | Canada | 200 | | 651,393 |
| a | Crowdstrike Holdings, Inc., Class A | United States | 665 | | 186,513 |
| | Dassault Systemes SE | France | 6,639 | | 263,999 |
| a | Descartes Systems Group, Inc. | Canada | 6,611 | | 681,041 |
| a,b | Lumine Group, Inc. | Canada | 600 | | 14,035 |
| a | PTC, Inc. | United States | 1,826 | | 329,885 |
| | Roper Technologies, Inc. | United States | 400 | | 222,576 |
| a | Synopsys, Inc. | United States | 1,883 | | 953,532 |
| | | | | | 5,540,639 |
| | Technology Hardware, Storage & Peripherals 4.9% | | | | |
| | Apple, Inc. | United States | 4,904 | | 1,142,632 |
| a | Pure Storage, Inc., Class A | United States | 1,887 | | 94,803 |
| | | | | | 1,237,435 |
| | Total Common Stocks (Cost $18,886,544) | | | | 25,107,017 |
| | Warrant 0.0% | | | | |
| | Software 0.0% | | | | |
| a,c | Constellation Software, Inc. | Canada | 225 | | — |
| | Total Investments (Cost $18,886,544) 99.2% | | | | 25,107,017 |
| | Other Assets, less Liabilities 0.8% | | | | 202,832 |
| | Net Assets 100.0% | | | | $ 25,309,849 |
| aNon-income producing. |
| bSecurity was purchased pursuant to Regulation S under the Securities Act of 1933, which exempts from registration securities offered and sold outside of the United States. Such a security cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration. At September 30, 2024, the value of was $14,035, representing 0.1% of net assets. |
| cFair valued using significant unobservable inputs. See Note 10 regarding fair value measurements. |
See Abbreviations on page 171.
| franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Semi-Annual Report | 58 |
Franklin Templeton ETF Trust
Financial Highlights
Franklin International Aggregate Bond ETF
| | Six Months Ended
September 30, 2024
(unaudited) | Year Ended March 31, |
| | 2024 | 2023 | 2022 | 2021 | 2020 |
| Per share operating performance | | | | | | |
| (for a share outstanding throughout the period) | | | | | | |
| Net asset value, beginning of period | $20.18 | $19.59 | $23.65 | $25.02 | $24.95 | $24.56 |
| Income from investment operationsa: | | | | | | |
| Net investment income (loss)b | 0.24 | 0.47 | 0.19 | 0.05 | (0.01) | 0.22 |
| Net realized and unrealized gains (losses) | 0.31 | 0.31 | (0.77) | (0.87) | 0.19 | 0.78 |
| Total from investment operations | 0.55 | 0.78 | (0.58) | (0.82) | 0.18 | 1.00 |
| Less distributions from: | | | | | | |
| Net investment income | — | (0.19) | (3.48) | (0.42) | (0.11) | (0.09) |
| Net realized gains | — | — | — | (0.13) | — | (0.52) |
| Total distributions | — | (0.19) | (3.48) | (0.55) | (0.11) | (0.61) |
| Net asset value, end of period | $20.73 | $20.18 | $19.59 | $23.65 | $25.02 | $24.95 |
| Total returnc | 2.67% | 4.04% | (2.38)% | (3.35)% | 0.72% | 4.05% |
| Ratios to average net assetsd | | | | | | |
| Expenses before waiver and payments by affiliates | 0.25% | 0.25% | 0.25% | 0.39% | 0.58% | 3.23% |
| Expenses net of waiver and payments by affiliates | 0.25% | 0.25% | 0.25% | 0.25% | 0.25% | 0.28% |
| Net investment income (loss) | 2.33% | 2.40% | 0.86% | 0.21% | (0.03)% | 0.87% |
| Supplemental data | | | | | | |
| Net assets, end of period (000’s) | $583,560 | $489,468 | $276,164 | $193,968 | $181,405 | $4,989 |
| Portfolio turnover ratee | 11.92%f | 26.48%f | 31.03%f | 24.12%f | 72.21%f | 66.78%f |
| aThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of Creation Unit Fund shares in relation to income earned and/or fluctuating fair value of the investments of the Fund. |
| bBased on average daily shares outstanding. |
| cTotal return is not annualized for periods less than one year. Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. |
| dRatios are annualized for periods less than one year. |
| ePortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash ("Cash creations"). |
| fPortfolio turnover rate excluding cash creations was as follows: | 11.92% | 26.48% | 31.03% | 24.12% | 72.21% | 66.78% |
| 59 | Semi-Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments, September 30, 2024 (unaudited)
Franklin International Aggregate Bond ETF
| | | Principal Amount* | Value |
| | Foreign Government and Agency Securities 95.7% | | | |
| | Australia 2.9% | | | |
| a | Australia Government Bonds, Series 149, 2.25%, 5/21/28 | 8,000,000 | AUD | $ 5,291,926 |
| a | New South Wales Treasury Corp., Series 27, 3.00%, 5/20/27 | 3,500,000 | AUD | 2,372,468 |
| a,b | Queensland Treasury Corp., 3.25%, 8/21/29 | 6,500,000 | AUD | 4,341,752 |
| a | Western Australian Treasury Corp., Series 26, 3.00%, 10/21/26 | 7,500,000 | AUD | 5,105,586 |
| | | | | 17,111,732 |
| | Austria 3.9% | | | |
| | Republic of Austria Government Bonds, | | | |
| | a,b 1.20%, 10/20/25 | 13,000,000 | EUR | 14,286,764 |
| | a,b 1.50%, 2/20/47 | 10,000,000 | EUR | 8,425,052 |
| | | | | 22,711,816 |
| | Belgium 3.8% | | | |
| a,b | Kingdom of Belgium Government Bonds, Series 75, 1.00%, 6/22/31 | 22,000,000 | EUR | 22,295,580 |
| | Canada 4.3% | | | |
| | Canada Government Bonds, | | | |
| | 1.25%, 3/01/25 | 14,000,000 | CAD | 10,250,138 |
| | 5.00%, 6/01/37 | 10,000,000 | CAD | 8,920,404 |
| | 2.00%, 12/01/51 | 10,000,000 | CAD | 5,853,969 |
| | | | | 25,024,511 |
| | China 18.6% | | | |
| | Agricultural Development Bank of China, Series 2008, 3.45%, 9/23/25 | 13,000,000 | CNY | 1,885,994 |
| | China Development Bank, | | | |
| | Series 2003, 3.23%, 1/10/25 | 24,000,000 | CNY | 3,440,483 |
| | Series 2004, 3.43%, 1/14/27 | 25,000,000 | CNY | 3,691,338 |
| | China Government Bonds, | | | |
| | 1.99%, 4/09/25 | 40,000,000 | CNY | 5,719,396 |
| | 1.59%, 4/25/25 | 80,000,000 | CNY | 11,430,806 |
| | 2.22%, 9/25/25 | 40,000,000 | CNY | 5,743,228 |
| | 2.33%, 12/15/25 | 40,000,000 | CNY | 5,767,221 |
| | 3.03%, 3/11/26 | 50,000,000 | CNY | 7,298,313 |
| | 2.85%, 6/04/27 | 50,000,000 | CNY | 7,363,173 |
| | 2.67%, 5/25/33 | 100,000,000 | CNY | 14,806,397 |
| | 2.52%, 8/25/33 | 100,000,000 | CNY | 14,646,597 |
| | 2.35%, 2/25/34 | 100,000,000 | CNY | 14,456,424 |
| | Series 1722, 4.28%, 10/23/47 | 65,000,000 | CNY | 12,499,108 |
| | | | | 108,748,478 |
| | Cyprus 0.8% | | | |
| a | Cyprus Government International Bonds, 1.50%, 4/16/27 | 4,500,000 | EUR | 4,895,678 |
| | Finland 0.5% | | | |
| a,b | Finland Government Bonds, 2.75%, 7/04/28 | 2,500,000 | EUR | 2,839,380 |
| | France 4.4% | | | |
| | French Republic Government Bonds OAT, | | | |
| | a,b 0.75%, 5/25/52 | 10,000,000 | EUR | 5,843,088 |
| | a,b,c zero cpn., 11/25/29 | 20,000,000 | EUR | 19,617,567 |
| | | | | 25,460,655 |
| | Germany 4.6% | | | |
| a,c | Bundesobligation, zero cpn., Series G, 10/10/25 | 4,000,000 | EUR | 4,349,976 |
| a,c | Bundesrepublik Deutschland Bundesanleihe, zero cpn., 8/15/26 | 21,000,000 | EUR | 22,530,950 |
| | | | | 26,880,926 |
| | Ireland 0.5% | | | |
| a | Ireland Government Bonds, 1.35%, 3/18/31 | 2,500,000 | EUR | 2,634,939 |
| franklintempleton.com | Semi-Annual Report | 60 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin International Aggregate Bond ETF (continued)
| | | Principal Amount* | Value |
| | Foreign Government and Agency Securities (continued) | | | |
| | Italy 4.5% | | | |
| | Italy Buoni Poliennali Del Tesoro, | | | |
| | a Series 10Y, 1.25%, 12/01/26 | 10,000,000 | EUR | $ 10,872,776 |
| | a,b 2.45%, 9/01/50 | 18,000,000 | EUR | 15,215,135 |
| | | | | 26,087,911 |
| | Japan 18.0% | | | |
| | Development Bank of Japan, Inc., 2.30%, 3/19/26 | 1,200,000,000 | JPY | 8,568,869 |
| | Japan Government Five Year Bonds, | | | |
| | Series 142, 0.10%, 12/20/24 | 3,000,000,000 | JPY | 20,875,720 |
| | Series 161, 0.30%, 6/20/28 | 4,000,000,000 | JPY | 27,706,941 |
| | Japan Government Thirty Year Bonds, Series 65, 0.40%, 12/20/49 | 2,000,000,000 | JPY | 9,627,182 |
| | Japan Government Twenty Year Bonds, | | | |
| | 1.50%, 3/20/33 | 4,000,000,000 | JPY | 29,641,625 |
| | Series 179, 0.50%, 12/20/41 | 1,500,000,000 | JPY | 8,797,157 |
| | | | | 105,217,494 |
| | Mexico 1.1% | | | |
| d | Mexico Bonos, Series M, 8.00%, 11/07/47 | 150,000,000 | MXN | 6,449,551 |
| | Netherlands 3.9% | | | |
| | Netherlands Government Bonds, | | | |
| | a,b 0.50%, 7/15/26 | 12,000,000 | EUR | 12,988,864 |
| | a,b 0.50%, 1/15/40 | 12,000,000 | EUR | 9,799,484 |
| | | | | 22,788,348 |
| | Poland 2.0% | | | |
| | Republic of Poland Government Bonds, Series 1029, 2.75%, 10/25/29 | 50,000,000 | PLN | 11,766,296 |
| | Portugal 0.9% | | | |
| a | Portugal Government International Bonds, 5.125%, 10/15/24 | 5,000,000 | USD | 4,999,886 |
| | Romania 0.9% | | | |
| a | Romania Government International Bonds, 2.00%, 1/28/32 | 5,500,000 | EUR | 4,991,070 |
| | Spain 3.5% | | | |
| a,b | Spain Government Bonds, 1.25%, 10/31/30 | 20,000,000 | EUR | 20,679,355 |
| | Supranational 5.2% | | | |
| | European Union, | | | |
| | a 2.75%, 2/04/33 | 17,000,000 | EUR | 19,103,356 |
| | a 0.30%, 11/04/50 | 20,000,000 | EUR | 11,489,305 |
| | | | | 30,592,661 |
| | Sweden 3.3% | | | |
| a | Sweden Government Bonds, Series 1060, 0.75%, 5/12/28 | 200,000,000 | SEK | 19,086,191 |
| | United Kingdom 8.1% | | | |
| | U.K. Gilts, | | | |
| | a 4.75%, 12/07/30 | 11,000,000 | GBP | 15,478,535 |
| | a 0.875%, 7/31/33 | 12,000,000 | GBP | 12,409,091 |
| | a 3.75%, 1/29/38 | 15,000,000 | GBP | 19,159,834 |
| | | | | 47,047,460 |
| | Total Foreign Government and Agency Securities (Cost $545,454,886) | | | 558,309,918 |
| | Corporate Bonds & Notes 2.6% | | | |
| | France 0.3% | | | |
| a | Orange SA, 1.375%, 3/20/28 | 1,500,000 | EUR | 1,598,599 |
| | Germany 0.6% | | | |
| a | Deutsche Telekom AG, 0.875%, 3/25/26 | 500,000 | EUR | 543,774 |
| | Kreditanstalt fuer Wiederaufbau, 2.05%, 2/16/26 | 300,000,000 | JPY | 2,139,997 |
| a,c | Siemens Financieringsmaatschappij NV, zero cpn., 2/20/26 | 700,000 | EUR | 752,879 |
| | | | | 3,436,650 |
| 61 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin International Aggregate Bond ETF (continued)
| | | Principal Amount* | Value |
| | Corporate Bonds & Notes (continued) | | | |
| | Supranational 0.7% | | | |
| | Asian Development Bank, Series 339-00-1, 2.35%, 6/21/27 | 240,000,000 | JPY | $ 1,766,042 |
| a | European Investment Bank, 1.90%, 1/26/26 | 330,000,000 | JPY | 2,343,165 |
| | | | | 4,109,207 |
| | United Kingdom 0.2% | | | |
| a | RELX Finance BV, 0.50%, 3/10/28 | 1,500,000 | EUR | 1,552,966 |
| | United States 0.8% | | | |
| | Apple, Inc., 1.625%, 11/10/26 | 1,000,000 | EUR | 1,094,410 |
| | AT&T, Inc., 0.25%, 3/04/26 | 1,200,000 | EUR | 1,289,489 |
| | Procter & Gamble Co., 0.50%, 10/25/24 | 1,200,000 | EUR | 1,333,255 |
| a | Schlumberger Finance France SAS, 1.00%, 2/18/26 | 1,000,000 | EUR | 1,086,371 |
| | | | | 4,803,525 |
| | Total Corporate Bonds & Notes (Cost $17,690,069) | | | 15,500,947 |
| | Total Investments before Short Term Investments ($563,144,955) | | | 573,810,865 |
| | Short-Term Investments 0.4% | | | |
| | U.S. Government & Agency Securities 0.4% | | | |
| c | Federal Home Loan Bank Discount Notes, 10/01/24 | 1,980,000 | | 1,979,745 |
| | Total Short-Term Investments (Cost $1,980,000) | | | 1,979,745 |
| | Total Investments (Cost $565,124,955) 98.7% | | | 575,790,610 |
| | Other Assets, less Liabilities 1.3% | | | 7,769,216 |
| | Net Assets 100.0% | | | $ 583,559,826 |
| *The principal amount is stated in U.S. dollars unless otherwise indicated. |
| aSecurity was purchased pursuant to Regulation S under the Securities Act of 1933, which exempts from registration securities offered and sold outside of the United States. Such a security cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration. At September 30, 2024, the value of was $308,981,342, representing 53.0% of net assets. |
| bSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At September 30, 2024, the value of was $136,332,021, representing 23.4% of net assets. |
| cThe security was issued on a discount basis with no stated coupon rate. |
| dPrincipal amount is stated in 100 Mexican Peso Units. |
At September 30, 2024, the Fund had the following forward exchange contracts outstanding. See Note 1(c).
Forward Exchange Contracts
| Currency | Counterpartya | Type | Quantity | Contract
Amount | Settlement
Date | Unrealized
Appreciation | Unrealized
Depreciation |
| OTC Forward Exchange Contracts |
| Australian Dollar | CITI | Sell | 15,390,000 | $ 10,176,407 | 11/13/24 | $ — | $ (498,894) |
| Australian Dollar | BNPS | Sell | 8,800,000 | 5,820,886 | 11/13/24 | — | (283,250) |
| Canadian Dollar | CITI | Sell | 24,420,000 | 17,846,520 | 11/13/24 | — | (241,486) |
| Canadian Dollar | BNPS | Sell | 7,850,000 | 5,730,293 | 11/13/24 | — | (84,239) |
| Chinese Yuan | CITI | Sell | 737,700,000 | 103,438,412 | 11/13/24 | — | (2,179,522) |
| Chinese Yuan | CITI | Sell | 19,000,000 | 2,683,137 | 11/13/24 | — | (37,129) |
| Euro | CITI | Sell | 126,000,000 | 138,289,536 | 11/13/24 | — | (2,365,868) |
| Euro | BNPS | Sell | 66,800,000 | 73,305,124 | 11/13/24 | — | (1,264,566) |
| Euro | CITI | Buy | 2,000,000 | 2,241,086 | 11/13/24 | — | (8,461) |
| Euro | BNPS | Sell | 2,000,000 | 2,228,623 | 11/13/24 | — | (4,003) |
| Euro | CITI | Sell | 6,800,000 | 7,587,072 | 11/13/24 | — | (3,854) |
| Great British Pound | CITI | Sell | 25,500,000 | 32,617,866 | 11/13/24 | — | (1,545,412) |
| Great British Pound | BNPS | Sell | 10,200,000 | 13,042,286 | 11/13/24 | — | (623,025) |
| Japanese Yen | BNPS | Sell | 8,250,000,000 | 56,538,759 | 11/13/24 | — | (1,378,852) |
| franklintempleton.com | Semi-Annual Report | 62 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin International Aggregate Bond ETF (continued)
Forward Exchange Contracts (continued)
| Currency | Counterpartya | Type | Quantity | Contract
Amount | Settlement
Date | Unrealized
Appreciation | Unrealized
Depreciation |
| OTC Forward Exchange Contracts (continued) |
| Japanese Yen | CITI | Sell | 7,799,000,000 | $ 53,433,912 | 11/13/24 | $ — | $ (1,317,536) |
| Mexican Peso | CITI | Sell | 25,100,000 | 1,309,809 | 11/13/24 | 43,449 | — |
| Mexican Peso | BNPS | Sell | 86,288,147 | 4,509,606 | 11/13/24 | 156,146 | — |
| Polish Zloty | BNPS | Sell | 28,800,000 | 7,304,908 | 11/13/24 | — | (180,547) |
| Polish Zloty | CITI | Sell | 9,550,000 | 2,423,289 | 11/13/24 | — | (58,867) |
| Swedish Krona | CITI | Sell | 133,500,000 | 12,745,725 | 11/13/24 | — | (439,427) |
| Swedish Krona | BNPS | Sell | 45,800,000 | 4,370,955 | 11/13/24 | — | (152,490) |
| Total Forward Exchange Contracts | $199,595 | $(12,667,428) |
| Net unrealized appreciation (depreciation) | | $(12,467,833) |
| aMay be comprised of multiple contracts with the same counterparty, currency and settlement date. |
See Note 9 regarding other derivative information.
See Abbreviations on page 171.
| 63 | Semi-Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
Franklin Templeton ETF Trust
Financial Highlights
Franklin Investment Grade Corporate ETF
| | Six Months Ended
September 30, 2024
(unaudited) | Year Ended March 31, |
| | 2024 | 2023 | 2022 | 2021 | 2020 |
| Per share operating performance | | | | | | |
| (for a share outstanding throughout the period) | | | | | | |
| Net asset value, beginning of period | $21.36 | $21.44 | $23.71 | $25.47 | $24.22 | $24.09 |
| Income from investment operationsa: | | | | | | |
| Net investment incomeb | 0.44 | 0.81 | 0.68 | 0.58 | 0.60 | 0.73 |
| Net realized and unrealized gains (losses) | 0.75 | 0.04 | (2.22) | (1.63) | 1.71 | 0.27 |
| Total from investment operations | 1.19 | 0.85 | (1.54) | (1.05) | 2.31 | 1.00 |
| Less distributions from: | | | | | | |
| Net investment income | (0.46) | (0.93) | (0.73) | (0.66) | (0.83) | (0.81) |
| Net realized gains | — | — | — | (0.05) | (0.23) | (0.06) |
| Total distributions | (0.46) | (0.93) | (0.73) | (0.71) | (1.06) | (0.87) |
| Net asset value, end of period | $22.09 | $21.36 | $21.44 | $23.71 | $25.47 | $24.22 |
| Total returnc | 5.69% | 4.13% | (6.46)% | (4.30)% | 9.43% | 4.02% |
| Ratios to average net assetsd | | | | | | |
| Expenses before waiver and payments by affiliates | 0.35% | 0.35% | 0.35% | 0.42% | 0.50% | 0.58% |
| Expenses net of waiver and payments by affiliates | 0.35% | 0.35% | 0.35% | 0.35% | 0.35% | 0.35% |
| Net investment income | 4.11% | 3.84% | 3.13% | 2.27% | 2.27% | 2.86% |
| Supplemental data | | | | | | |
| Net assets, end of period (000’s) | $579,920 | $364,152 | $644,363 | $981,602 | $1,018,639 | $553,338 |
| Portfolio turnover ratee | 17.70%f | 25.09%f | 27.84%f | 36.76%f | 53.32%f | 52.17%f |
| aThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of Creation Unit Fund shares in relation to income earned and/or fluctuating fair value of the investments of the Fund. |
| bBased on average daily shares outstanding. |
| cTotal return is not annualized for periods less than one year. Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. |
| dRatios are annualized for periods less than one year. |
| ePortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash ("Cash creations"). |
| fPortfolio turnover rate excluding cash creations was as follows: | 17.70% | 25.09% | 27.84% | 36.76% | 53.32% | 52.17% |
| franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Semi-Annual Report | 64 |
Franklin Templeton ETF Trust
Schedule of Investments, September 30, 2024 (unaudited)
Franklin Investment Grade Corporate ETF
| | | Country | | | Principal Amount* | Value |
| | Corporate Bonds & Notes 95.9% | | | | | |
| | Aerospace & Defense 2.5% | | | | | |
| a | BAE Systems PLC, 5.50%, 3/26/54 | United Kingdom | | | 1,400,000 | $ 1,468,595 |
| | Boeing Co., | | | | | |
| | 3.65%, 3/01/47 | United States | | | 2,800,000 | 1,961,627 |
| | a 6.528%, 5/01/34 | United States | | | 2,340,000 | 2,512,323 |
| | General Dynamics Corp., | | | | | |
| | 2.85%, 6/01/41 | United States | | | 1,165,000 | 901,113 |
| | 3.60%, 11/15/42 | United States | | | 1,400,000 | 1,187,059 |
| | Howmet Aerospace, Inc., 5.95%, 2/01/37 | United States | | | 3,400,000 | 3,721,137 |
| | Lockheed Martin Corp., 4.07%, 12/15/42 | United States | | | 1,400,000 | 1,270,883 |
| | Northrop Grumman Corp., 4.95%, 3/15/53 | United States | | | 1,600,000 | 1,566,469 |
| | | | | | | 14,589,206 |
| | Agriculture 0.8% | | | | | |
| a | JT International Financial Services BV, 6.875%, 10/24/32 | Japan | | | 900,000 | 1,027,655 |
| | Philip Morris International, Inc., 5.375%, 2/15/33 | United States | | | 3,500,000 | 3,661,760 |
| | | | | | | 4,689,415 |
| | Air Freight & Logistics 0.5% | | | | | |
| | FedEx Corp., 4.75%, 11/15/45 | United States | | | 3,195,000 | 2,938,148 |
| | Airlines 0.9% | | | | | |
| a | Delta Air Lines, Inc./SkyMiles IP Ltd., first lien, 4.50%, 10/20/25 | United States | | | 2,714,870 | 2,698,791 |
| | United Airlines Pass-Through Trust, | | | | | |
| | Series 2016-1, Class A, 3.45%, 1/07/30 | United States | | | 1,639,668 | 1,527,946 |
| | Series 2020-1, Class B, 4.875%, 7/15/27 | United States | | | 1,110,564 | 1,101,079 |
| | | | | | | 5,327,816 |
| | Apparel 0.2% | | | | | |
| | Tapestry, Inc., 7.05%, 11/27/25 | United States | | | 1,300,000 | 1,326,241 |
| | Auto Manufacturers 1.2% | | | | | |
| | General Motors Financial Co., Inc., 4.90%, 10/06/29 | United States | | | 1,500,000 | 1,502,160 |
| | Hyundai Capital America, | | | | | |
| | a 5.35%, 3/19/29 | United States | | | 4,000,000 | 4,122,202 |
| | a 4.55%, 9/26/29 | United States | | | 1,500,000 | 1,497,370 |
| | | | | | | 7,121,732 |
| | Banks 21.3% | | | | | |
| | Banco Santander SA, 2.749%, 12/03/30 | Spain | | | 1,375,000 | 1,215,779 |
| | Bank of America Corp., | | | | | |
| | 2.592% to 4/29/30, FRN thereafter, 4/29/31 | United States | | | 3,625,000 | 3,288,953 |
| | 4.571% to 4/27/32, FRN thereafter, 4/27/33 | United States | | | 6,050,000 | 6,022,868 |
| | 5.202% to 4/25/28, FRN thereafter, 4/25/29 | United States | | | 7,650,000 | 7,867,720 |
| | 5.468% to 1/23/34, FRN thereafter, 1/23/35 | United States | | | 1,400,000 | 1,472,783 |
| | Bank of New York Mellon Corp., 4.947% to 4/26/26, FRN thereafter, 4/26/27 | United States | | | 500,000 | 504,957 |
| a | BPCE SA, 5.936% to 5/30/34, FRN thereafter, 5/30/35 | France | | | 1,900,000 | 1,990,558 |
| | Citigroup, Inc., | | | | | |
| | 3.668% to 7/24/27, FRN thereafter, 7/24/28 | United States | | | 6,900,000 | 6,778,505 |
| | 3.057% to 1/25/32, FRN thereafter, 1/25/33 | United States | | | 3,700,000 | 3,306,430 |
| | Credit Agricole SA, | | | | | |
| | a 4.375%, 3/17/25 | France | | | 1,100,000 | 1,094,918 |
| | a 5.134%, 3/11/27 | France | | | 3,375,000 | 3,445,989 |
| a | Danske Bank AS, 5.427% to 3/01/28, FRN thereafter, 3/01/28 | Denmark | | | 3,000,000 | 3,076,060 |
| | Deutsche Bank AG, 2.129% to 11/24/25, FRN thereafter, 11/24/26 | Germany | | | 2,975,000 | 2,881,949 |
| | Fifth Third Bancorp, 4.772% to 7/28/29, FRN thereafter, 7/28/30 | United States | | | 2,600,000 | 2,620,833 |
| 65 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin Investment Grade Corporate ETF (continued)
| | | Country | | | Principal Amount* | Value |
| | Corporate Bonds & Notes (continued) | | | | | |
| | Banks (continued) | | | | | |
| | Goldman Sachs Group, Inc., | | | | | |
| | 2.64% to 2/24/27, FRN thereafter, 2/24/28 | United States | | | 8,000,000 | $ 7,690,722 |
| | 4.387% to 6/15/26, FRN thereafter, 6/15/27 | United States | | | 1,700,000 | 1,704,282 |
| | 5.33% to 7/23/34, FRN thereafter, 7/23/35 | United States | | | 2,300,000 | 2,383,440 |
| | HSBC Holdings PLC, 1.645% to 4/18/25, FRN thereafter, 4/18/26 | United Kingdom | | | 3,000,000 | 2,945,056 |
| | JPMorgan Chase & Co., | | | | | |
| | 2.522% to 4/22/30, FRN thereafter, 4/22/31 | United States | | | 4,595,000 | 4,175,605 |
| | 2.963% to 1/25/32, FRN thereafter, 1/25/33 | United States | | | 6,200,000 | 5,581,598 |
| | 4.851% to 7/25/27, FRN thereafter, 7/25/28 | United States | | | 1,700,000 | 1,729,985 |
| | 6.087% to 10/23/28, FRN thereafter, 10/23/29 | United States | | | 6,000,000 | 6,397,525 |
| | KeyBank NA, 4.15%, 8/08/25 | United States | | | 950,000 | 943,166 |
| | Lloyds Banking Group PLC, 5.721% to 6/05/30, FRN thereafter, 6/05/30 | United Kingdom | | | 3,000,000 | 3,144,773 |
| | Mizuho Financial Group, Inc., 5.778% to 7/06/29, FRN thereafter, 7/06/29 | Japan | | | 2,800,000 | 2,929,704 |
| | Morgan Stanley, | | | | | |
| | 5.25% to 4/21/33, FRN thereafter, 4/21/34 | United States | | | 5,000,000 | 5,165,896 |
| | 5.449% to 7/20/28, FRN thereafter, 7/20/29 | United States | | | 1,400,000 | 1,455,131 |
| a | National Australia Bank Ltd., 2.332%, 8/21/30 | Australia | | | 3,300,000 | 2,876,767 |
| | PNC Financial Services Group, Inc., 6.615% to 10/20/26, FRN thereafter, 10/20/27 | United States | | | 5,150,000 | 5,382,787 |
| a | Standard Chartered PLC, 1.456% to 1/14/27, FRN thereafter, 1/14/27 | United Kingdom | | | 3,600,000 | 3,452,688 |
| | U.S. Bancorp, 5.10% to 7/23/29, FRN thereafter, 7/23/30 | United States | | | 4,100,000 | 4,221,386 |
| a | UBS Group AG, 5.428% to 2/08/30, FRN thereafter, 2/08/30 | Switzerland | | | 2,900,000 | 2,998,879 |
| | Wells Fargo & Co., | | | | | |
| | 4.808% to 7/25/27, FRN thereafter, 7/25/28 | United States | | | 6,900,000 | 6,982,139 |
| | 5.574% to 7/25/28, FRN thereafter, 7/25/29 | United States | | | 3,000,000 | 3,121,925 |
| | 5.198% to 1/23/29, FRN thereafter, 1/23/30 | United States | | | 2,800,000 | 2,887,266 |
| | | | | | | 123,739,022 |
| | Beverages 1.1% | | | | | |
| | Anheuser-Busch Cos. LLC/Anheuser-Busch InBev Worldwide, Inc., 4.90%, 2/01/46 | United States | | | 3,200,000 | 3,154,016 |
| | Anheuser-Busch InBev Worldwide, Inc., 5.80%, 1/23/59 | Belgium | | | 2,800,000 | 3,157,259 |
| | | | | | | 6,311,275 |
| | Biotechnology 3.6% | | | | | |
| | Amgen, Inc., 5.60%, 3/02/43 | United States | | | 6,550,000 | 6,885,276 |
| | Bio-Rad Laboratories, Inc., 3.30%, 3/15/27 | United States | | | 3,700,000 | 3,611,952 |
| a | CSL Finance PLC, 4.25%, 4/27/32 | Australia | | | 5,100,000 | 5,021,238 |
| | Illumina, Inc., 5.80%, 12/12/25 | United States | | | 2,000,000 | 2,026,867 |
| | Regeneron Pharmaceuticals, Inc., 2.80%, 9/15/50 | United States | | | 3,000,000 | 1,976,724 |
| | Royalty Pharma PLC, 3.35%, 9/02/51 | United States | | | 2,000,000 | 1,383,574 |
| | | | | | | 20,905,631 |
| | Capital Markets 2.1% | | | | | |
| | Brixmor Operating Partnership LP, 4.125%, 5/15/29 | United States | | | 2,100,000 | 2,056,510 |
| | Morgan Stanley, 1.794% to 2/13/31, FRN thereafter, 2/13/32 | United States | | | 6,900,000 | 5,842,643 |
| a | UBS Group AG, 3.869% to 1/12/28, FRN thereafter, 1/12/29 | Switzerland | | | 4,050,000 | 3,963,425 |
| | | | | | | 11,862,578 |
| | Chemicals 1.5% | | | | | |
| | Nutrien Ltd., 5.20%, 6/21/27 | Canada | | | 2,000,000 | 2,051,695 |
| a | Solvay Finance America LLC, 5.65%, 6/04/29 | Belgium | | | 4,100,000 | 4,271,917 |
| | Westlake Corp., 3.125%, 8/15/51 | United States | | | 3,400,000 | 2,302,174 |
| | | | | | | 8,625,786 |
| franklintempleton.com | Semi-Annual Report | 66 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin Investment Grade Corporate ETF (continued)
| | | Country | | | Principal Amount* | Value |
| | Corporate Bonds & Notes (continued) | | | | | |
| | Commercial Services & Supplies 1.0% | | | | | |
| a | Ashtead Capital, Inc., 5.80%, 4/15/34 | United Kingdom | | | 2,800,000 | $ 2,928,048 |
| | Global Payments, Inc., 5.40%, 8/15/32 | United States | | | 2,500,000 | 2,567,726 |
| | | | | | | 5,495,774 |
| | Construction Materials 0.6% | | | | | |
| | Owens Corning, 5.70%, 6/15/34 | United States | | | 3,500,000 | 3,717,839 |
| | Diversified REITs 1.2% | | | | | |
| | Essex Portfolio LP, 2.65%, 3/15/32 | United States | | | 3,300,000 | 2,875,124 |
| | Simon Property Group LP, 3.375%, 12/01/27 | United States | | | 4,200,000 | 4,118,991 |
| | | | | | | 6,994,115 |
| | Diversified Telecommunication Services 1.0% | | | | | |
| | Verizon Communications, Inc., 3.40%, 3/22/41 | United States | | | 6,900,000 | 5,638,518 |
| | Electric 2.8% | | | | | |
| | Baltimore Gas & Electric Co., 4.55%, 6/01/52 | United States | | | 2,900,000 | 2,622,924 |
| | Constellation Energy Generation LLC, 6.50%, 10/01/53 | United States | | | 3,700,000 | 4,282,780 |
| | DTE Electric Co., Series B, 3.65%, 3/01/52 | United States | | | 2,900,000 | 2,314,802 |
| | NextEra Energy Capital Holdings, Inc., 6.051%, 3/01/25 | United States | | | 3,500,000 | 3,515,145 |
| | Public Service Enterprise Group, Inc., 2.45%, 11/15/31 | United States | | | 1,200,000 | 1,052,372 |
| | Virginia Electric & Power Co., Series D, 4.65%, 8/15/43 | United States | | | 2,800,000 | 2,640,508 |
| | | | | | | 16,428,531 |
| | Electric Utilities 4.0% | | | | | |
| | Commonwealth Edison Co., 4.00%, 3/01/48 | United States | | | 1,450,000 | 1,228,371 |
| | Duke Energy Progress LLC, 2.50%, 8/15/50 | United States | | | 5,500,000 | 3,494,362 |
| a | EDP Finance BV, 1.71%, 1/24/28 | Netherlands | | | 3,000,000 | 2,761,674 |
| a | Enel Finance International NV, 3.625%, 5/25/27 | Italy | | | 4,000,000 | 3,928,183 |
| | Georgia Power Co., | | | | | |
| | Series 2010-C, 4.75%, 9/01/40 | United States | | | 4,800,000 | 4,674,019 |
| | 4.30%, 3/15/42 | United States | | | 1,800,000 | 1,639,794 |
| | Public Service Electric & Gas Co., 3.15%, 1/01/50 | United States | | | 2,300,000 | 1,705,632 |
| | Virginia Electric & Power Co., Series A, 3.50%, 3/15/27 | United States | | | 3,700,000 | 3,655,612 |
| | | | | | | 23,087,647 |
| | Electronic Equipment, Instruments & Components 0.5% | | | | | |
| | Flex Ltd., 3.75%, 2/01/26 | Singapore | | | 3,000,000 | 2,967,363 |
| | Energy Equipment & Services 0.3% | | | | | |
| | Baker Hughes Holdings LLC/Baker Hughes Co-Obligor, Inc., 4.08%, 12/15/47 | United States | | | 2,100,000 | 1,784,370 |
| | Entertainment 0.8% | | | | | |
| | Warnermedia Holdings, Inc., | | | | | |
| | 5.05%, 3/15/42 | United States | | | 2,000,000 | 1,633,653 |
| | 4.279%, 3/15/32 | United States | | | 3,100,000 | 2,754,846 |
| | | | | | | 4,388,499 |
| | Environmental Control 0.8% | | | | | |
| | Republic Services, Inc., 5.00%, 4/01/34 | United States | | | 4,395,000 | 4,528,240 |
| | Financial Services 2.5% | | | | | |
| | AerCap Ireland Capital DAC/AerCap Global Aviation Trust, 3.00%, 10/29/28 | Ireland | | | 5,200,000 | 4,913,735 |
| | American Express Co., 5.098% to 2/16/27, FRN thereafter, 2/16/28 | United States | | | 2,900,000 | 2,956,023 |
| | Aon Global Ltd., 4.60%, 6/14/44 | Ireland | | | 4,100,000 | 3,757,698 |
| | BlackRock Funding, Inc., 5.25%, 3/14/54 | United States | | | 1,400,000 | 1,451,845 |
| | Capital One Financial Corp., 4.985% to 7/24/25, FRN thereafter, 7/24/26 | United States | | | 1,600,000 | 1,600,562 |
| | | | | | | 14,679,863 |
| 67 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin Investment Grade Corporate ETF (continued)
| | | Country | | | Principal Amount* | Value |
| | Corporate Bonds & Notes (continued) | | | | | |
| | Food 2.4% | | | | | |
| | JBS USA Holding Lux SARL/JBS USA Food Co./JBS Lux Co. SARL, | | | | | |
| | 2.50%, 1/15/27 | United States | | | 2,200,000 | $ 2,106,694 |
| | 3.625%, 1/15/32 | United States | | | 2,000,000 | 1,829,749 |
| | Kraft Heinz Foods Co., 5.00%, 6/04/42 | United States | | | 4,000,000 | 3,908,024 |
| | Kroger Co., 4.70%, 8/15/26 | United States | | | 2,990,000 | 3,010,885 |
| | Mondelez International, Inc., 2.75%, 4/13/30 | United States | | | 500,000 | 464,009 |
| a | Nestle Holdings, Inc., 4.70%, 1/15/53 | United States | | | 2,800,000 | 2,727,405 |
| | | | | | | 14,046,766 |
| | Gas 1.6% | | | | | |
| | Piedmont Natural Gas Co., Inc., 5.05%, 5/15/52 | United States | | | 3,750,000 | 3,613,274 |
| | Southern California Gas Co., 5.60%, 4/01/54 | United States | | | 2,900,000 | 3,077,336 |
| | Southern Co. Gas Capital Corp., 4.95%, 9/15/34 | United States | | | 2,550,000 | 2,577,825 |
| | | | | | | 9,268,435 |
| | Ground Transportation 1.1% | | | | | |
| | Burlington Northern Santa Fe LLC, 5.75%, 5/01/40 | United States | | | 5,800,000 | 6,349,465 |
| | Health Care Providers & Services 5.4% | | | | | |
| | CVS Health Corp., 5.30%, 12/05/43 | United States | | | 2,565,000 | 2,473,368 |
| | Elevance Health, Inc., 4.10%, 5/15/32 | United States | | | 4,700,000 | 4,589,157 |
| | HCA, Inc., 4.50%, 2/15/27 | United States | | | 4,100,000 | 4,105,921 |
| a | Health Care Service Corp. A Mutual Legal Reserve Co., 5.20%, 6/15/29 | United States | | | 1,000,000 | 1,031,477 |
| | Icon Investments Six DAC, 6.00%, 5/08/34 | United States | | | 4,100,000 | 4,363,648 |
| | IQVIA, Inc., 6.25%, 2/01/29 | United States | | | 2,300,000 | 2,446,532 |
| a | Roche Holdings, Inc., 5.593%, 11/13/33 | United States | | | 3,900,000 | 4,231,198 |
| | Sutter Health, 5.164%, 8/15/33 | United States | | | 2,500,000 | 2,590,160 |
| | UnitedHealth Group, Inc., 3.05%, 5/15/41 | United States | | | 7,000,000 | 5,529,395 |
| | | | | | | 31,360,856 |
| | Healthcare-Products 1.1% | | | | | |
| | Baxter International, Inc., 2.539%, 2/01/32 | United States | | | 3,000,000 | 2,602,753 |
| | GE HealthCare Technologies, Inc., 5.55%, 11/15/24 | United States | | | 2,900,000 | 2,901,229 |
| a | Solventum Corp., 5.60%, 3/23/34 | United States | | | 1,000,000 | 1,035,970 |
| | | | | | | 6,539,952 |
| | Home Builders 0.2% | | | | | |
| | DR Horton, Inc., 5.00%, 10/15/34 | United States | | | 1,400,000 | 1,420,165 |
| | Hotels, Restaurants & Leisure 0.2% | | | | | |
| | Marriott International, Inc., Series R, 3.125%, 6/15/26 | United States | | | 1,400,000 | 1,373,814 |
| | Household Products 1.2% | | | | | |
| | Haleon U.S. Capital LLC, 3.375%, 3/24/27 | United States | | | 5,050,000 | 4,961,550 |
| a | Kimberly-Clark de Mexico SAB de CV, 2.431%, 7/01/31 | Mexico | | | 2,000,000 | 1,773,729 |
| | | | | | | 6,735,279 |
| | Insurance 3.9% | | | | | |
| | Allstate Corp., 4.20%, 12/15/46 | United States | | | 2,000,000 | 1,750,957 |
| | Arthur J Gallagher & Co., 6.50%, 2/15/34 | United States | | | 2,150,000 | 2,401,823 |
| | Berkshire Hathaway Finance Corp., 3.85%, 3/15/52 | United States | | | 2,100,000 | 1,774,766 |
| | Brown & Brown, Inc., 2.375%, 3/15/31 | United States | | | 3,900,000 | 3,378,981 |
| a | Jackson National Life Global Funding, 5.55%, 7/02/27 | United States | | | 2,500,000 | 2,568,906 |
| a | MassMutual Global Funding II, 5.05%, 12/07/27 | United States | | | 2,500,000 | 2,578,334 |
| | MetLife, Inc., 6.40%, 12/15/66 | United States | | | 2,200,000 | 2,337,080 |
| a | Pricoa Global Funding I, 5.10%, 5/30/28 | United States | | | 2,800,000 | 2,892,340 |
| a | RGA Global Funding, 5.50%, 1/11/31 | United States | | | 2,900,000 | 3,033,107 |
| | | | | | | 22,716,294 |
| franklintempleton.com | Semi-Annual Report | 68 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin Investment Grade Corporate ETF (continued)
| | | Country | | | Principal Amount* | Value |
| | Corporate Bonds & Notes (continued) | | | | | |
| | Internet 1.5% | | | | | |
| | Meta Platforms, Inc., 4.45%, 8/15/52 | United States | | | 3,350,000 | $ 3,091,702 |
| | Netflix, Inc., | | | | | |
| | a 4.875%, 6/15/30 | United States | | | 2,800,000 | 2,889,550 |
| | 5.40%, 8/15/54 | United States | | | 2,800,000 | 2,966,547 |
| | | | | | | 8,947,799 |
| | IT Services 1.7% | | | | | |
| | Apple, Inc., 2.80%, 2/08/61 | United States | | | 6,000,000 | 4,015,230 |
| | Dell International LLC/EMC Corp., 5.40%, 4/15/34 | United States | | | 2,700,000 | 2,818,689 |
| | Hewlett Packard Enterprise Co., 4.45%, 9/25/26 | United States | | | 2,900,000 | 2,907,349 |
| | | | | | | 9,741,268 |
| | Machinery-Diversified 0.5% | | | | | |
| | Ingersoll Rand, Inc., 5.176%, 6/15/29 | United States | | | 3,000,000 | 3,104,773 |
| | Media 2.1% | | | | | |
| | Charter Communications Operating LLC/Charter Communications Operating Capital, | | | | | |
| | 2.80%, 4/01/31 | United States | | | 1,350,000 | 1,155,642 |
| | 5.375%, 4/01/38 | United States | | | 2,200,000 | 2,008,352 |
| | 3.50%, 3/01/42 | United States | | | 3,000,000 | 2,085,871 |
| | Comcast Corp., 4.95%, 10/15/58 | United States | | | 4,820,000 | 4,638,655 |
| | Fox Corp., 5.476%, 1/25/39 | United States | | | 2,300,000 | 2,321,491 |
| | | | | | | 12,210,011 |
| | Multi-Utilities 0.2% | | | | | |
| | Berkshire Hathaway Energy Co., 5.15%, 11/15/43 | United States | | | 1,400,000 | 1,412,882 |
| | Oil & Gas 2.7% | | | | | |
| a,b | Aker BP ASA, 5.80%, 10/01/54 | Norway | | | 1,100,000 | 1,084,561 |
| | BP Capital Markets America, Inc., 4.812%, 2/13/33 | United States | | | 3,900,000 | 3,953,714 |
| | Occidental Petroleum Corp., 5.20%, 8/01/29 | United States | | | 2,850,000 | 2,899,436 |
| | TotalEnergies Capital SA, 5.275%, 9/10/54 | France | | | 2,750,000 | 2,756,011 |
| a | Var Energi ASA, 7.50%, 1/15/28 | Norway | | | 4,450,000 | 4,769,449 |
| | | | | | | 15,463,171 |
| | Oil, Gas & Consumable Fuels 2.2% | | | | | |
| a | Aker BP ASA, 4.00%, 1/15/31 | Norway | | | 2,100,000 | 1,995,042 |
| | Canadian Natural Resources Ltd., 3.85%, 6/01/27 | Canada | | | 4,000,000 | 3,945,280 |
| | Exxon Mobil Corp., 3.567%, 3/06/45 | United States | | | 4,500,000 | 3,732,295 |
| | Sabine Pass Liquefaction LLC, 4.20%, 3/15/28 | United States | | | 2,800,000 | 2,785,779 |
| | | | | | | 12,458,396 |
| | Pharmaceuticals 2.5% | | | | | |
| a | Bayer U.S. Finance II LLC, 4.375%, 12/15/28 | Germany | | | 3,000,000 | 2,961,395 |
| | Bristol-Myers Squibb Co., | | | | | |
| | 4.125%, 6/15/39 | United States | | | 2,450,000 | 2,267,782 |
| | 3.70%, 3/15/52 | United States | | | 2,800,000 | 2,226,314 |
| | CVS Health Corp., | | | | | |
| | 5.00%, 2/20/26 | United States | | | 1,800,000 | 1,813,060 |
| | 5.25%, 1/30/31 | United States | | | 1,200,000 | 1,236,170 |
| | Pfizer Investment Enterprises Pte. Ltd., 5.30%, 5/19/53 | United States | | | 3,650,000 | 3,779,431 |
| | | | | | | 14,284,152 |
| | Pipelines 3.4% | | | | | |
| a | Cheniere Energy, Inc., 5.65%, 4/15/34 | United States | | | 1,170,000 | 1,211,418 |
| | Eastern Gas Transmission & Storage, Inc., 3.90%, 11/15/49 | United States | | | 2,900,000 | 2,253,194 |
| | Enbridge, Inc., 5.30%, 4/05/29 | Canada | | | 2,050,000 | 2,123,496 |
| 69 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin Investment Grade Corporate ETF (continued)
| | | Country | | | Principal Amount* | Value |
| | Corporate Bonds & Notes (continued) | | | | | |
| | Pipelines (continued) | | | | | |
| | Energy Transfer LP, | | | | | |
| | 5.15%, 3/15/45 | United States | | | 5,000,000 | $ 4,662,246 |
| | 6.05%, 12/01/26 | United States | | | 2,800,000 | 2,900,332 |
| | Targa Resources Partners LP/Targa Resources Partners Finance Corp., 4.00%, 1/15/32 | United States | | | 3,700,000 | 3,484,631 |
| | Williams Cos., Inc., 5.15%, 3/15/34 | United States | | | 3,000,000 | 3,034,213 |
| | | | | | | 19,669,530 |
| | Real Estate Management & Development 1.2% | | | | | |
| | Alexandria Real Estate Equities, Inc., 2.95%, 3/15/34 | United States | | | 2,450,000 | 2,119,566 |
| | ERP Operating LP, 4.50%, 7/01/44 | United States | | | 1,850,000 | 1,707,248 |
| a | VICI Properties LP/VICI Note Co., Inc., 4.125%, 8/15/30 | United States | | | 3,000,000 | 2,851,324 |
| | | | | | | 6,678,138 |
| | Retail 1.9% | | | | | |
| | Dick’s Sporting Goods, Inc., 4.10%, 1/15/52 | United States | | | 1,000,000 | 764,994 |
| | Home Depot, Inc., 3.625%, 4/15/52 | United States | | | 5,000,000 | 4,026,376 |
| | Lowe’s Cos., Inc., 3.00%, 10/15/50 | United States | | | 2,900,000 | 1,973,317 |
| | McDonald’s Corp., 3.625%, 9/01/49 | United States | | | 2,100,000 | 1,655,648 |
| | Target Corp., 2.95%, 1/15/52 | United States | | | 3,600,000 | 2,553,977 |
| | | | | | | 10,974,312 |
| | Shipbuilding 0.5% | | | | | |
| | Huntington Ingalls Industries, Inc., 4.20%, 5/01/30 | United States | | | 2,800,000 | 2,754,749 |
| | Software 2.3% | | | | | |
| | Fiserv, Inc., 5.60%, 3/02/33 | United States | | | 4,800,000 | 5,086,637 |
| | Microsoft Corp., 2.675%, 6/01/60 | United States | | | 2,500,000 | 1,649,330 |
| | Oracle Corp., 3.60%, 4/01/40 | United States | | | 4,000,000 | 3,329,871 |
| | ServiceNow, Inc., 1.40%, 9/01/30 | United States | | | 4,100,000 | 3,519,329 |
| | | | | | | 13,585,167 |
| | Telecommunications 4.1% | | | | | |
| | AT&T, Inc., 3.50%, 6/01/41 | United States | | | 7,025,000 | 5,752,701 |
| | Cisco Systems, Inc., 5.30%, 2/26/54 | United States | | | 3,400,000 | 3,610,093 |
| | Motorola Solutions, Inc., 5.60%, 6/01/32 | United States | | | 4,100,000 | 4,336,978 |
| | T-Mobile USA, Inc., 2.875%, 2/15/31 | United States | | | 7,440,000 | 6,771,203 |
| | Vodafone Group PLC, 5.75%, 6/28/54 | United Kingdom | | | 3,100,000 | 3,211,566 |
| | | | | | | 23,682,541 |
| | Trucking & Leasing 0.4% | | | | | |
| a | SMBC Aviation Capital Finance DAC, 1.90%, 10/15/26 | Ireland | | | 2,350,000 | 2,228,613 |
| | Wireless Telecommunication Services 0.4% | | | | | |
| a | Sprint Spectrum Co. LLC/Sprint Spectrum Co. II LLC/Sprint Spectrum Co. III LLC, 5.152%, 9/20/29 | United States | | | 2,380,000 | 2,404,043 |
| | Total Corporate Bonds & Notes (Cost $572,872,736) | | | | | 556,558,180 |
| | U.S. Government & Agency Securities 2.3% | | | | | |
| | U.S. Treasury Bonds, | | | | | |
| | 4.125%, 8/15/44 | United States | | | 1,900,000 | 1,885,453 |
| | 4.75%, 11/15/43 | United States | | | 800,000 | 863,219 |
| franklintempleton.com | Semi-Annual Report | 70 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin Investment Grade Corporate ETF (continued)
| | | Country | | | Principal Amount* | Value |
| | U.S. Government & Agency Securities (continued) | | | | | |
| | U.S. Treasury Notes, | | | | | |
| | 3.625%, 8/31/29 | United States | | | 6,200,000 | $ 6,219,375 |
| | 3.75%, 8/31/26 | United States | | | 4,200,000 | 4,206,398 |
| | Total U.S. Government & Agency Securities (Cost $13,086,640) | | | | | 13,174,445 |
| | Total Investments before Short-Term Investments (Cost $585,959,376) | | | | | 569,732,625 |
| | Short-Term Investments 2.0% | | | | | |
| | U.S. Government & Agency Securities 2.0% | | | | | |
| c | Federal Home Loan Bank Discount Notes, 10/01/24 | United States | | | 11,375,000 | 11,373,534 |
| | Total Short-Term Investments (Cost $11,375,000) | | | | | 11,373,534 |
| | Total Investments (Cost $597,334,376) 100.2% | | | | | 581,106,159 |
| | Other Assets, less Liabilities (0.2)% | | | | | (1,186,510) |
| | Net Assets 100.0% | | | | | $ 579,919,649 |
| *The principal amount is stated in U.S. dollars unless otherwise indicated. |
| aSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At September 30, 2024, the value of was $99,405,141, representing 17.1% of net assets. |
| bSecurity purchased on a when-issued basis. See Note 1(d). |
| cThe security was issued on a discount basis with no stated coupon rate. |
See Abbreviations on page 171.
| 71 | Semi-Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
Franklin Templeton ETF Trust
Financial Highlights
Franklin Municipal Green Bond ETF
| | Six Months Ended
September 30, 2024
(unaudited) | Year Ended March 31, |
| | 2024 | 2023 | 2022 | 2021 | 2020 |
| Per share operating performance | | | | | | |
| (for a share outstanding throughout the period) | | | | | | |
| Net asset value, beginning of period | $24.03 | $23.90 | $24.99 | $26.86 | $26.07 | $25.20 |
| Income from investment operationsa: | | | | | | |
| Net investment incomeb | 0.43 | 0.81 | 0.61 | 0.36 | 0.40 | 0.46 |
| Net realized and unrealized gains (losses) | 0.43 | 0.18 | (1.05) | (1.79) | 0.94 | 1.02 |
| Total from investment operations | 0.86 | 0.99 | (0.44) | (1.43) | 1.34 | 1.48 |
| Less distributions from net investment income | (0.45) | (0.86) | (0.65) | (0.44) | (0.55) | (0.61) |
| Net asset value, end of period | $24.44 | $24.03 | $23.90 | $24.99 | $26.86 | $26.07 |
| Total returnc | 3.64% | 4.31% | (1.68)% | (5.44)% | 5.16% | 5.92% |
| Ratios to average net assetsd | | | | | | |
| Expenses before waiver and payments by affiliates | 0.30% | 0.30% | 0.60% | 0.66% | 0.78% | 1.00% |
| Expenses net of waiver and payments by affiliates | 0.30% | 0.30% | 0.30% | 0.30% | 0.30% | 0.30% |
| Net investment income | 3.58% | 3.45% | 2.57% | 1.34% | 1.50% | 1.77% |
| Supplemental data | | | | | | |
| Net assets, end of period (000’s) | $107,553 | $112,954 | $112,349 | $104,939 | $126,221 | $28,674 |
| Portfolio turnover ratee | 14.45%f | 43.86%f | 66.77%f | 48.41%f | 11.86%f | 17.21%f |
| aThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of Creation Unit Fund shares in relation to income earned and/or fluctuating fair value of the investments of the Fund. |
| bBased on average daily shares outstanding. |
| cTotal return is not annualized for periods less than one year. Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. |
| dRatios are annualized for periods less than one year. |
| ePortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash ("Cash creations"). |
| fPortfolio turnover rate excluding cash creations was as follows: | 14.45% | 43.86% | 66.77% | 48.41% | 11.86% | 17.21% |
| franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Semi-Annual Report | 72 |
Franklin Templeton ETF Trust
Schedule of Investments, September 30, 2024 (unaudited)
Franklin Municipal Green Bond ETF
| | | Principal Amount* | | Value |
| | Municipal Bonds 99.8% | | | |
| | Alabama 0.3% | | | |
| a | County of Mobile, Gomesa Projects, 4.00%, 11/01/45 | 300,000 | | $ 288,402 |
| | Arizona 0.6% | | | |
| | Arizona Board of Regents, Series B, 5.00%, 7/01/42 | 235,000 | | 241,302 |
| | City of Phoenix Civic Improvement Corp., Water System Revenue, 5.00%, 7/01/44 | 360,000 | | 389,698 |
| | | | | 631,000 |
| | Arkansas 0.5% | | | |
| | Arkansas Development Finance Authority, | | | |
| | a Hybar LLC, AMT, 6.875%, 7/01/48 | 250,000 | | 277,127 |
| | United States Steel Corp, AMT, 5.70%, 5/01/53 | 275,000 | | 292,924 |
| | | | | 570,051 |
| | California 29.0% | | | |
| | Alameda Community Facilities District, 5.00%, 9/01/48 | 1,000,000 | | 1,036,707 |
| | California Community Choice Financing Authority, | | | |
| | b 5.25%, 1/01/54 | 3,160,000 | | 3,415,913 |
| | b VRDN, 5.00%, 12/01/53 | 2,500,000 | | 2,676,481 |
| | b VRDN, 5.00%, 2/01/54 | 3,500,000 | | 3,804,641 |
| | b VRDN, 5.25%, 11/01/54 | 500,000 | | 544,546 |
| | b VRDN, 5.50%, 10/01/54 | 1,000,000 | | 1,119,407 |
| | California Housing Finance Agency, Lakeside Drive Senior Housing LP, Series 2019, 2.35%, 12/01/35 | 92,128 | | 80,086 |
| | California Infrastructure & Economic Development Bank, | | | |
| | California Science Center Foundation, 4.00%, 5/01/46 | 805,000 | | 810,044 |
| | California Science Center Foundation, 4.00%, 5/01/51 | 1,000,000 | | 995,914 |
| | California State Teachers’ Retirement System, 5.00%, 8/01/49 | 180,000 | | 191,609 |
| | California Municipal Finance Authority, | | | |
| | CHF-Davis I LLC, 5.00%, 5/15/51 | 1,000,000 | | 1,035,692 |
| | CHF-Davis II LLC, 4.00%, 5/15/39 | 3,445,000 | | 3,547,098 |
| | CHF-Riverside II LLC, 5.00%, 5/15/37 | 1,495,000 | | 1,608,553 |
| a | California School Finance Authority, River Springs Charter School Inc, 5.75%, 7/01/42 | 250,000 | | 266,351 |
| | California State Public Works Board, | | | |
| | California Air Resources Board, Series 2022D, 4.00%, 5/01/44 | 1,000,000 | | 1,021,939 |
| | Series D, 4.00%, 5/01/47 | 1,500,000 | | 1,519,618 |
| | City of Foster City, Levee Protection Planning, 4.00%, 8/01/32 | 135,000 | | 140,234 |
| | City of Los Angeles Department of Airports Customer Facility Charge Revenue, Department of Airports Customer Facility Charge Revenue, 4.058%, 5/15/37 | 1,000,000 | | 938,136 |
| | City of San Francisco Public Utilities Commission Water Revenue, Green Bond, Refunding, Series 2020A, 4.00%, 11/01/50 | 100,000 | | 100,056 |
| | Los Angeles County Metropolitan Transportation Authority Sales Tax Revenue, Green Bond, Series 2019A, 5.00%, 7/01/44 | 150,000 | | 159,588 |
| | Peninsula Corridor Joint Powers Board Measure RR Sales Tax Revenue, Series A, 5.00%, 6/01/42 | 1,000,000 | | 1,115,865 |
| | Perris Joint Powers Authority, Refunding, Series 2017B, 5.00%, 9/01/37 | 100,000 | | 103,720 |
| | Port of Los Angeles, Green Bond, AMT, Refunding, 5.00%, 8/01/25 | 130,000 | | 131,890 |
| | San Diego County Regional Airport Authority, Series B, 5.00%, 7/01/51 | 2,000,000 | | 2,109,912 |
| | San Francisco Bay Area Rapid Transit District, Green Bond, 3.00%, 8/01/36 | 170,000 | | 166,469 |
| | Santa Cruz County Capital Financing Authority, Sanitation District Green Bond, 4.00%, 6/01/42 | 1,500,000 | | 1,556,345 |
| | Three Rivers Levee Improvement Authority, | | | |
| | Community Facilities District No 2006-1, Refunding, 4.00%, 9/01/27 | 250,000 | | 254,220 |
| | Community Facilities District No 2006-1, Refunding, 4.00%, 9/01/29 | 250,000 | | 256,298 |
| | Community Facilities District No 2006-1, Refunding, 4.00%, 9/01/31 | 200,000 | | 202,870 |
| | Community Facilities District No 2006-1, Refunding, 4.00%, 9/01/32 | 100,000 | | 100,829 |
| | Transbay Joint Powers Authority, Redevelopment Project Green Bond Senior Tax, 5.00%, 10/01/34 | 150,000 | | 159,594 |
| | | | | 31,170,625 |
| 73 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin Municipal Green Bond ETF (continued)
| | | Principal Amount* | | Value |
| | Municipal Bonds (continued) | | | |
| | Colorado 2.1% | | | |
| | Board of Water Commissioners City & County of Denver, Green Bond, Series 2017A, 5.00%, 9/15/47 | 150,000 | | $ 155,901 |
| b | Colorado Health Facilities Authority, Children’s Hospital Colorado Obligated Group, Refunding, VRDN, Series A, 4.05%, 12/01/52 | 500,000 | | 500,000 |
| | University of Colorado, | | | |
| | Refunding, 5.00%, 6/01/27 | 150,000 | | 160,239 |
| | b Refunding, VRDN, 2.00%, 6/01/51 | 1,500,000 | | 1,478,594 |
| | | | | 2,294,734 |
| | District of Columbia 4.0% | | | |
| | District of Columbia, | | | |
| | Plenary Infrastructure DC LLC, AMT, 5.50%, 8/31/33 | 905,000 | | 1,043,093 |
| | Plenary Infrastructure DC LLC, AMT, 5.50%, 2/28/35 | 200,000 | | 233,194 |
| | Plenary Infrastructure DC LLC, AMT, 5.50%, 2/28/37 | 845,000 | | 995,729 |
| | Plenary Infrastructure DC LLC, AMT, Series A, 5.50%, 8/31/35 | 95,000 | | 111,152 |
| | District of Columbia Water & Sewer Authority, | | | |
| | Green Bond, Sub Series 2019A, 5.00%, 10/01/44 | 340,000 | | 363,277 |
| | Sub Series 2019A, 4.00%, 10/01/49 | 1,565,000 | | 1,557,703 |
| | | | | 4,304,148 |
| | Florida 1.5% | | | |
| | Babcock Ranch Community Independent Special District, Assessment Area 3A, Special Assessment, 4.00%, 5/01/40 | 840,000 | | 821,846 |
| | City of Tampa, Lower Basis Stormwater Improvement, Special Assessment, 5.00%, 5/01/36 | 150,000 | | 158,857 |
| | County of Palm Beach Water & Sewer Revenue, Reclaimed Water Project, Refunding, 4.00%, 10/01/31 | 105,000 | | 111,912 |
| | Somerset Community Development District, | | | |
| | Special Assessment, Refunding, 4.00%, 5/01/32 | 415,000 | | 408,586 |
| | Special Assessment, Refunding, Series 2022, 4.20%, 5/01/37 | 100,000 | | 96,765 |
| | | | | 1,597,966 |
| | Georgia 1.5% | | | |
| | City of Atlanta Airport Passenger Facility Charge, AMT, 5.25%, 7/01/43 | 1,350,000 | | 1,494,374 |
| | Private Colleges & Universities Authority, Emory University, Refunding, 5.00%, 9/01/48 | 100,000 | | 106,475 |
| | | | | 1,600,849 |
| | Illinois 3.7% | | | |
| | Illinois Finance Authority, | | | |
| | State of Illinois Water Revolving Fund - Clean Water Program, 4.00%, 7/01/38 | 575,000 | | 595,972 |
| | University of Illinois, 5.25%, 10/01/53 | 3,000,000 | | 3,261,536 |
| a | Upper Illinois River Valley Development Authority, 2018 IAVF Timber Oaks & Prairie View Obligated Group, Refunding, 3.50%, 12/01/32 | 129,259 | | 118,007 |
| | | | | 3,975,515 |
| | Louisiana 3.3% | | | |
| | Louisiana Local Government Environmental Facilities & Community Development Authority, | | | |
| | a Parish of St Bernard LA, 4.00%, 11/01/45 | 1,000,000 | | 964,034 |
| | a Parish of St Charles LA, 4.50%, 11/01/47 | 1,000,000 | | 1,020,643 |
| | a Parish of St John the Baptist LA, 3.90%, 11/01/44 | 445,000 | | 423,510 |
| | Terrebonne Levee & Conservation District Sales Tax Revenue, | | | |
| | Refunding, Refunding, Series B, 4.00%, 6/01/40 | 100,000 | | 101,093 |
| | Refunding, Series B, 4.00%, 6/01/39 | 1,000,000 | | 1,016,183 |
| | | | | 3,525,463 |
| | Maine 0.2% | | | |
| | City of Portland General Airport Revenue, Green Bond, Refunding, 4.00%, 1/01/35 | 245,000 | | 249,087 |
| franklintempleton.com | Semi-Annual Report | 74 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin Municipal Green Bond ETF (continued)
| | | Principal Amount* | | Value |
| | Municipal Bonds (continued) | | | |
| | Maryland 3.4% | | | |
| | Maryland Economic Development Corp., | | | |
| | Purple Line Transit Partners LLC, AMT, 5.00%, 6/30/40 | 1,000,000 | | $ 1,059,017 |
| | Purple Line Transit Partners LLC, AMT, 5.25%, 6/30/47 | 2,000,000 | | 2,115,896 |
| | Maryland Health & Higher Educational Facilities Authority, Adventist Healthcare Obligated Group, Refunding, 4.00%, 1/01/30 | 365,000 | | 371,789 |
| | Washington Suburban Sanitary Commission, Green Bond, 3.00%, 6/01/35 | 100,000 | | 97,857 |
| | | | | 3,644,559 |
| | Massachusetts 5.2% | | | |
| | Massachusetts Development Finance Agency, | | | |
| | Boston Medical Center Corp. Obligated Group, 4.00%, 7/01/47 | 135,000 | | 130,303 |
| | Springfield College, Green Bond, 5.00%, 6/01/26 | 420,000 | | 429,181 |
| | Springfield College, Green Bond, 5.00%, 6/01/27 | 440,000 | | 453,324 |
| | b Trustees of Boston University, Refunding, VRDN, 3.80%, 10/01/42 | 600,000 | | 600,000 |
| b | Massachusetts Health & Educational Facilities Authority, Baystate Total Home Care Inc, Series K, 3.80%, 7/01/39 | 1,200,000 | | 1,200,000 |
| | Massachusetts Housing Finance Agency, | | | |
| | Series A-1, 4.90%, 12/01/59 | 1,000,000 | | 1,033,207 |
| | Sustainability Bond, Series 2019C-1, 2.65%, 12/01/34 | 100,000 | | 88,438 |
| | Sustainability Bond, Series 2021B-1, 2.60%, 12/01/41 | 2,000,000 | | 1,639,815 |
| | | | | 5,574,268 |
| | Minnesota 1.6% | | | |
| | City of Minneapolis, Green Bond, 3.00%, 12/01/40 | 100,000 | | 90,548 |
| | Minnesota Higher Education Facilities Authority, University of St Thomas/Minneapolis, Series A, 5.00%, 10/01/52 | 1,500,000 | | 1,591,480 |
| | | | | 1,682,028 |
| | Mississippi 0.7% | | | |
| a | Mississippi Development Bank, County of Jackson Project, 3.625%, 11/01/36 | 500,000 | | 484,961 |
| a | Mississippi Home Corp., Patriot Services Group Obligated Group, 5.20%, 6/01/36 | 280,000 | | 228,038 |
| | | | | 712,999 |
| | New Jersey 3.9% | | | |
| | City of Newark Mass Transit Access Tax Revenue, Mulberry Pedestrian Bridge, 6.00%, 11/15/62 | 1,460,000 | | 1,706,652 |
| | New Jersey Educational Facilities Authority, Stevens Institute of Technology, Series A, 5.00%, 7/01/32 | 645,000 | | 700,427 |
| | Newark Board of Education, | | | |
| | Newark Board of Education, Refunding, 5.00%, 7/15/28 | 571,000 | | 620,321 |
| | Refunding, 5.00%, 7/15/30 | 620,000 | | 696,075 |
| | Sustainability Bonds, 5.00%, 7/15/25 | 500,000 | | 507,753 |
| | | | | 4,231,228 |
| | New Mexico 0.2% | | | |
| | City of Santa Fe Wastewater Utility System Revenue, | | | |
| | Green Bond, 5.00%, 6/01/29 | 100,000 | | 108,567 |
| | Wastewater Utility System Revenue, 4.00%, 6/01/35 | 100,000 | | 102,875 |
| | | | | 211,442 |
| | New York 9.9% | | | |
| | Battery Park City Authority, Sustainability Bond, 5.00%, 11/01/49 | 100,000 | | 107,410 |
| | Metropolitan Transportation Authority, | | | |
| | Green Bond, Refunding, Series 2017B, 5.00%, 11/15/24 | 150,000 | | 150,198 |
| | Green Bond, Series 2020A-1, 4.00%, 11/15/41 | 600,000 | | 601,626 |
| | Refunding, 5.00%, 11/15/28 | 430,000 | | 468,914 |
| | Refunding, Series E, 5.00%, 11/15/32 | 605,000 | | 672,678 |
| | Series C, 5.00%, 11/15/50 | 1,510,000 | | 1,584,709 |
| 75 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin Municipal Green Bond ETF (continued)
| | | Principal Amount* | | Value |
| | Municipal Bonds (continued) | | | |
| | New York (continued) | | | |
| b | New York City Municipal Water Finance Authority, New York City Water & Sewer System, Series BB, 4.00%, 6/15/49 | 1,000,000 | | $ 1,000,000 |
| | New York Liberty Development Corp., | | | |
| | 7 World Trade Center II LLC, Refunding , Series 2022A1, 3.00%, 9/15/43 | 1,000,000 | | 862,012 |
| | Green Bonds- 4 World Trade, Refunding, 2.50%, 11/15/36 | 2,000,000 | | 1,726,066 |
| | New York Power Authority, Green Transmission Project, 5.00%, 11/15/29 | 1,250,000 | | 1,412,593 |
| | New York State Dormitory Authority, Cornell University, 5.00%, 7/01/35 | 100,000 | | 123,082 |
| | New York State Housing Finance Agency, | | | |
| | Sustainability Bonds, Series 2019N, 2.60%, 11/01/34 | 100,000 | | 89,321 |
| | Sustainability Bonds, Series 2019P, 2.00%, 5/01/28 | 100,000 | | 94,897 |
| | b Sustainability Bonds, VRDN, Series 2022A, 2.50%, 11/01/60 | 1,500,000 | | 1,480,982 |
| | New York Transportation Development Corp., JFK NTO LLC, AMT, 5.50%, 6/30/38 | 250,000 | | 278,015 |
| | | | | 10,652,503 |
| | North Carolina 0.4% | | | |
| b | Charlotte-Mecklenburg Hospital Authority, Atrium Health Obligated Group, Series G, VRDN, 4.00%, 1/15/48 | 400,000 | | 400,000 |
| | Ohio 4.5% | | | |
| | American Municipal Power, Inc., | | | |
| | 4.00%, 2/15/41 | 1,415,000 | | 1,414,666 |
| | Solar Electricity Prepayment Revenue, 5.00%, 2/15/44 | 1,660,000 | | 1,739,620 |
| | Ohio State University, 4.00%, 12/01/39 | 1,500,000 | | 1,566,557 |
| | State of Ohio, Conservation Project, Series 2019A, 4.00%, 3/01/30 | 100,000 | | 107,526 |
| | | | | 4,828,369 |
| | Oregon 2.8% | | | |
| | Hospital Facilities Authority of Multnomah County Oregon, Terwilliger Plaza Inc Obligated Group, Refunding, 4.00%, 12/01/51 | 530,000 | | 421,048 |
| | Port of Portland Airport Revenue, | | | |
| | AMT, 5.50%, 7/01/53 | 2,250,000 | | 2,484,237 |
| | Series 2020-27A, 5.00%, 7/01/36 | 150,000 | | 160,562 |
| | | | | 3,065,847 |
| | Pennsylvania 1.7% | | | |
| | Philadelphia Energy Authority, City of Philadelphia PA, 5.00%, 11/01/43 | 600,000 | | 663,888 |
| | School District of Philadelphia, | | | |
| | Green Bond, Series 2021B, 5.00%, 9/01/31 | 100,000 | | 111,533 |
| | Series B, 5.00%, 9/01/48 | 1,000,000 | | 1,099,350 |
| | | | | 1,874,771 |
| | Puerto Rico 0.6% | | | |
| | HTA TRRB Custodial Trust, 5.25%, 7/01/36 | 164,300 | | 165,024 |
| | Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue, Series A-1, 5.00%, 7/01/58 | 525,000 | | 530,436 |
| | | | | 695,460 |
| | Rhode Island 0.2% | | | |
| | Rhode Island Housing & Mortgage Finance Corp., Multi Family Development, Sustainability Bond, 2.75%, 10/01/34 | 150,000 | | 134,641 |
| | Rhode Island Infrastructure Bank, Green Bond, Series 2020A, 4.00%, 10/01/27 | 50,000 | | 52,001 |
| | | | | 186,642 |
| | Texas 0.9% | | | |
| | Harris County Flood Control District, Series 2022A, 4.25%, 10/01/47 | 1,000,000 | | 1,017,685 |
| | Utah 5.9% | | | |
| | Central Valley Water Reclamation Facility, Green Bond, Series 2021C, 4.00%, 3/01/47 | 3,050,000 | | 3,053,448 |
| | Intermountain Power Agency, Refunding, Series 2022A, 5.00%, 7/01/43 | 3,000,000 | | 3,284,331 |
| | | | | 6,337,779 |
| franklintempleton.com | Semi-Annual Report | 76 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin Municipal Green Bond ETF (continued)
| | | Principal Amount* | | Value |
| | Municipal Bonds (continued) | | | |
| | Vermont 3.4% | | | |
| | City of Burlington Electric System Revenue, Electric System Revenue, Series 2022A, 5.00%, 7/01/31 | 500,000 | | $ 571,488 |
| | Vermont Educational & Health Buildings Financing Agency, | | | |
| | University of Vermont Health Network Obligated Group, 4.00%, 12/01/42 | 1,000,000 | | 978,972 |
| | University of Vermont Health Network Obligated Group, 5.00%, 12/01/38 | 2,015,000 | | 2,054,399 |
| | | | | 3,604,859 |
| | Virginia 1.3% | | | |
| | Charles City County Economic Development Authority, Waste Management, Inc., AMT, VRDN, 1.45%, 4/01/27 | 1,100,000 | | 1,017,820 |
| | City of Hampton, | | | |
| | 3.00%, 9/01/35 | 240,000 | | 235,176 |
| | Green Bond, 4.00%, 9/01/31 | 100,000 | | 107,466 |
| | Green Bond, 5.00%, 9/01/27 | 50,000 | | 53,762 |
| | | | | 1,414,224 |
| | Washington 2.0% | | | |
| | Central Puget Sound Regional Transit Authority, | | | |
| | Refunding, Series S-1, 4.00%, 11/01/46 | 2,000,000 | | 2,006,127 |
| | Sales & Rental Car Taxes Revenue, Series 2015S-1, 5.00%, 11/01/32 | 150,000 | | 153,836 |
| | | | | 2,159,963 |
| | Wisconsin 4.5% | | | |
| | Milwaukee Metropolitan Sewerage District, | | | |
| | Green Bond, Series 2020A, 3.00%, 10/01/35 | 150,000 | | 147,146 |
| | Series A, 3.00%, 10/01/32 | 1,000,000 | | 991,151 |
| | Public Finance Authority, | | | |
| | RED River Valley Alliance LLC, AMT, 4.00%, 9/30/51 | 2,330,000 | | 2,068,958 |
| | RED River Valley Alliance LLC, AMT, 4.00%, 3/31/56 | 600,000 | | 523,893 |
| | a,b WV 2020 Holdings LLC Obligated Group, VRDN, 3.50%, 12/01/50 | 200,000 | | 172,331 |
| | University of Wisconsin Hospitals & Clinics, Authority Obligated Group, Green Bond, 4.00%, 4/01/46 | 1,000,000 | | 976,559 |
| | | | | 4,880,038 |
| | Total Municipal Bonds (Cost $105,530,747) | | | 107,382,504 |
| | Total Investments (Cost $105,530,747) 99.8% | | | 107,382,504 |
| | Other Assets, less Liabilities 0.2% | | | 170,643 |
| | Net Assets 100.0% | | | $ 107,553,147 |
| *The principal amount is stated in U.S. dollars unless otherwise indicated. |
| aSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At September 30, 2024, the value of was $4,243,404, representing 3.9% of net assets. |
| bVariable rate security. The rate shown represents the yield at period end. |
See Abbreviations on page 171.
| 77 | Semi-Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
Franklin Templeton ETF Trust
Financial Highlights
Franklin Senior Loan ETF
| | Six Months Ended
September 30, 2024
(unaudited) | Year Ended March 31, |
| | 2024 | 2023 | 2022 | 2021 | 2020 |
| Per share operating performance | | | | | | |
| (for a share outstanding throughout the period) | | | | | | |
| Net asset value, beginning of period | $24.42 | $23.83 | $24.70 | $24.83 | $22.85 | $24.85 |
| Income from investment operationsa: | | | | | | |
| Net investment incomeb | 1.01 | 2.12 | 1.49 | 0.91 | 0.70 | 0.99 |
| Net realized and unrealized gains (losses) | (0.16) | 0.56 | (0.92) | (0.23) | 1.99 | (1.90) |
| Total from investment operations | 0.85 | 2.68 | 0.57 | 0.68 | 2.69 | (0.91) |
| Less distributions from net investment income | (0.98) | (2.09) | (1.44) | (0.81) | (0.71) | (1.09) |
| Net asset value, end of period | $24.29 | $24.42 | $23.83 | $24.70 | $24.83 | $22.85 |
| Total returnc | 3.58% | 11.80% | 2.53% | 2.76% | 11.91% | (3.92)% |
| Ratios to average net assetsd | | | | | | |
| Expenses before waiver and payments by affiliates | 0.45% | 0.45% | 0.45% | 0.58% | 0.92% | 0.97% |
| Expenses net of waiver and payments by affiliates | 0.45% | 0.45% | 0.45% | 0.45% | 0.45% | 0.45% |
| Net investment income | 8.31% | 8.84% | 6.28% | 3.72% | 2.88% | 4.02% |
| Supplemental data | | | | | | |
| Net assets, end of period (000’s) | $586,517 | $328,487 | $206,120 | $292,722 | $201,101 | $54,833 |
| Portfolio turnover ratee | 7.92%f | 16.05%f | 26.07%f | 35.67%f | 45.87%f | 51.48%f |
| aThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of Creation Unit Fund shares in relation to income earned and/or fluctuating fair value of the investments of the Fund. |
| bBased on average daily shares outstanding. |
| cTotal return is not annualized for periods less than one year. Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. |
| dRatios are annualized for periods less than one year. |
| ePortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash ("Cash creations"). |
| fPortfolio turnover rate excluding cash creations was as follows: | 7.92% | 16.05% | 26.08% | 35.67% | 45.87% | 51.48% |
| franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Semi-Annual Report | 78 |
Franklin Templeton ETF Trust
Schedule of Investments, September 30, 2024 (unaudited)
Franklin Senior Loan ETF
| | | Country | | | Principal Amount* | Value |
| | Corporate Bonds & Notes 4.8% | | | | | |
| | Advertising 0.5% | | | | | |
| a | Clear Channel Outdoor Holdings, Inc., 7.875%, 4/01/30 | United States | | | 2,600,000 | $ 2,720,994 |
| | Aerospace & Defense 0.3% | | | | | |
| a | TransDigm, Inc., 6.00%, 1/15/33 | United States | | | 1,700,000 | 1,725,355 |
| | Airlines 0.7% | | | | | |
| a | Air Canada, 3.875%, 8/15/26 | Canada | | | 700,000 | 682,214 |
| a | American Airlines, Inc., 8.50%, 5/15/29 | United States | | | 800,000 | 849,311 |
| a | American Airlines, Inc./AAdvantage Loyalty IP Ltd., 5.50%, 4/20/26 | United States | | | 2,216,667 | 2,212,161 |
| a | Delta Air Lines, Inc./SkyMiles IP Ltd., first lien, 4.50%, 10/20/25 | United States | | | 104,175 | 103,559 |
| a | United Airlines, Inc., 4.375%, 4/15/26 | United States | | | 140,000 | 137,863 |
| | | | | | | 3,985,108 |
| | Auto Parts & Equipment 0.1% | | | | | |
| a | Tenneco, Inc., 8.00%, 11/17/28 | United States | | | 300,000 | 278,641 |
| | Chemicals 0.1% | | | | | |
| a | SCIH Salt Holdings, Inc., 4.875%, 5/01/28 | United States | | | 500,000 | 482,516 |
| | Commercial Services & Supplies 0.2% | | | | | |
| a | Allied Universal Holdco LLC, 7.875%, 2/15/31 | United States | | | 1,000,000 | 1,022,347 |
| a | MPH Acquisition Holdings LLC, 5.50%, 9/01/28 | United States | | | 213,000 | 153,785 |
| a | WW International, Inc., 4.50%, 4/15/29 | United States | | | 900,000 | 207,728 |
| | | | | | | 1,383,860 |
| | Communications Equipment 0.0%† | | | | | |
| a | CommScope LLC, 4.75%, 9/01/29 | United States | | | 288,500 | 242,701 |
| | Construction Materials 0.4% | | | | | |
| a | Cemex SAB de CV, 5.20%, 9/17/30 | Mexico | | | 375,000 | 376,324 |
| a | EMRLD Borrower LP/Emerald Co-Issuer, Inc., 6.625%, 12/15/30 | United States | | | 1,400,000 | 1,445,283 |
| a | Smyrna Ready Mix Concrete LLC, 8.875%, 11/15/31 | United States | | | 700,000 | 755,775 |
| | | | | | | 2,577,382 |
| | Containers & Packaging 0.1% | | | | | |
| a | Pactiv Evergreen Group Issuer, Inc./Pactiv Evergreen Group Issuer LLC, 4.00%, 10/15/27 | United States | | | 400,000 | 384,989 |
| | Electric 0.1% | | | | | |
| a | Calpine Corp., first lien, 4.50%, 2/15/28 | United States | | | 800,000 | 781,659 |
| | Electric Utilities 0.1% | | | | | |
| a | Talen Energy Supply LLC, 8.625%, 6/01/30 | United States | | | 400,000 | 436,263 |
| | Entertainment 0.3% | | | | | |
| a | International Game Technology PLC, first lien, 5.25%, 1/15/29 | United Kingdom | | | 1,200,000 | 1,196,254 |
| a | Ontario Gaming GTA LP/OTG Co-Issuer, Inc., 8.00%, 8/01/30 | Canada | | | 500,000 | 519,991 |
| | | | | | | 1,716,245 |
| | Environmental Control 0.1% | | | | | |
| a | GFL Environmental, Inc., 3.50%, 9/01/28 | Canada | | | 600,000 | 571,719 |
| | Financial Services 0.1% | | | | | |
| a | Altice France SA, 5.125%, 7/15/29 | France | | | 500,000 | 352,074 |
| a | Jane Street Group/JSG Finance, Inc., 4.50%, 11/15/29 | United States | | | 300,000 | 289,006 |
| a | Vmed O2 U.K. Financing I PLC, 4.25%, 1/31/31 | United Kingdom | | | 210,000 | 186,111 |
| | | | | | | 827,191 |
| | Health Care Providers & Services 0.2% | | | | | |
| a | Radiology Partners, Inc., 7.775%, 1/31/29 | United States | | | 1,415,380 | 1,406,534 |
| 79 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin Senior Loan ETF (continued)
| | | Country | | | Principal Amount* | Value |
| | Corporate Bonds & Notes (continued) | | | | | |
| | Insurance 0.6% | | | | | |
| a | Acrisure LLC/Acrisure Finance, Inc., 4.25%, 2/15/29 | United States | | | 500,000 | $ 472,776 |
| | Alliant Holdings Intermediate LLC/Alliant Holdings Co-Issuer, | | | | | |
| | a 6.75%, 4/15/28 | United States | | | 1,700,000 | 1,728,795 |
| | a 7.00%, 1/15/31 | United States | | | 1,000,000 | 1,028,373 |
| | | | | | | 3,229,944 |
| | IT Services 0.1% | | | | | |
| a | Fortress Intermediate 3, Inc., 7.50%, 6/01/31 | United States | | | 600,000 | 633,766 |
| | Machinery-Diversified 0.0%† | | | | | |
| a | GrafTech Finance, Inc., 4.625%, 12/15/28 | United States | | | 400,000 | 267,566 |
| | Media 0.3% | | | | | |
| a | Directv Financing LLC/Directv Financing Co-Obligor, Inc., 5.875%, 8/15/27 | United States | | | 750,000 | 736,903 |
| a | McGraw-Hill Education, Inc., 7.375%, 9/01/31 | United States | | | 1,000,000 | 1,038,358 |
| | | | | | | 1,775,261 |
| | Oil, Gas & Consumable Fuels 0.0%† | | | | | |
| | Cheniere Energy, Inc., 4.625%, 10/15/28 | United States | | | 150,000 | 149,122 |
| | Packaging & Containers 0.1% | | | | | |
| a | Mauser Packaging Solutions Holding Co., 7.875%, 4/15/27 | United States | | | 805,000 | 832,714 |
| | Personal Care Products 0.3% | | | | | |
| a | Coty, Inc., 5.00%, 4/15/26 | United States | | | 1,600,000 | 1,594,488 |
| | Pharmaceuticals 0.0% | | | | | |
| a | Endo Luxembourg Finance SARL, 6.125%, 4/01/29 | Luxembourg | | | 925,000 | — |
| | Retail 0.1% | | | | | |
| a | Bausch & Lomb Corp., 8.375%, 10/01/28 | United States | | | 360,000 | 381,150 |
| | Total Corporate Bonds & Notes (Cost $28,226,595) | | | | | 28,385,168 |
| b | Senior Floating Rate Interests 86.4% | | | | | |
| | Aerospace & Defense 1.8% | | | | | |
| | Bleriot U.S. Bidco, Inc., 2023 Term Loan B, 3 mo. USD Term SOFR + 3.25%, 7.854%, 10/31/30 | United States | | | 142,500 | 142,856 |
| | Dynasty Acquisition Co., Inc., | | | | | |
| | 2024 Term Loan B1, 1 mo. USD Term SOFR + 3.50%, 8.345%, 8/24/28 | United States | | | 1,056,566 | 1,058,579 |
| | 2024 Term Loan B2, 1 mo. USD Term SOFR + 3.50%, 8.345%, 8/24/28 | United States | | | 445,142 | 445,990 |
| | Madison IAQ LLC, Term Loan, 6 mo. USD Term SOFR + 2.75%, 7.889%, 6/21/28 | United States | | | 4,272,576 | 4,274,221 |
| | Peraton Corp., Term Loan B, 1 mo. USD Term SOFR + 3.75%, 8.695%, 2/01/28 | United States | | | 3,763,220 | 3,629,550 |
| c | TransDigm, Inc., 2024 Term Loan, TBD, 1/19/32 | United States | | | 883,636 | 881,149 |
| | | | | | | 10,432,345 |
| | Air Freight & Logistics 1.3% | | | | | |
| | First Student Bidco, Inc., | | | | | |
| | Term Loan C, 3 mo. USD Term SOFR + 3.00%, 7.668%, 7/21/28 | United States | | | 553,031 | 554,374 |
| | Term Loan B, 3 mo. USD Term SOFR + 3.00%, 7.668%, 7/21/28 | United States | | | 1,808,281 | 1,812,675 |
| | 2022 Incremental Term Loan B, 3 mo. USD Term SOFR + 3.00%, 7.704%, 7/21/28 | United States | | | 1,283,509 | 1,286,808 |
| | LaserShip, Inc., 2021 Term Loan, 3 mo. USD Term SOFR + 4.50%, 9.365%, 5/07/28 | United States | | | 2,985,894 | 1,899,402 |
| | Savage Enterprises LLC, 2021 Term Loan B, 1 mo. USD Term SOFR + 3.00%, 7.845%, 9/15/28 | United States | | | 2,142,314 | 2,151,494 |
| | | | | | | 7,704,753 |
| franklintempleton.com | Semi-Annual Report | 80 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin Senior Loan ETF (continued)
| | | Country | | | Principal Amount* | Value |
| b | Senior Floating Rate Interests (continued) | | | | | |
| | Apparel Retail 0.3% | | | | | |
| | ABG Intermediate Holdings 2 LLC, | | | | | |
| | c 2024 Term Loan B, TBD, 12/21/28 | United States | | | 1,093,471 | $ 1,095,828 |
| | c 2024 Add on Delayed Draw Term Loan, TBD, 12/21/28 | United States | | | 444,801 | 445,775 |
| | | | | | | 1,541,603 |
| | Apparel, Accessories & Luxury Goods 0.5% | | | | | |
| | Varsity Brands, Inc., 2024 Term Loan B, 3 mo. USD Term SOFR + 3.75%, 8.821%, 8/26/31 | United States | | | 2,743,590 | 2,728,445 |
| | Application Software 2.4% | | | | | |
| | Cloud Software Group, Inc., | | | | | |
| | 2024 USD Term Loan B, 3 mo. USD Term SOFR + 4.00%, 9.335% - 8.604%, 3/30/29 | United States | | | 3,467,054 | 3,456,930 |
| | 2024 Third Amendment Term Loan, 3 mo. USD Term SOFR + 4.50%, 9.168%, 3/21/31 | United States | | | 1,213,068 | 1,217,781 |
| | Epicor Software Corp., 2024 Term Loan E, 1 mo. USD Term SOFR + 3.25%, 8.095%, 5/30/31 | United States | | | 3,694,400 | 3,701,512 |
| | Flexera Software LLC, 2024 Term Loan, 1 mo. USD Term SOFR + 3.50%, 8.461%, 3/03/28 | United States | | | 1,446,966 | 1,449,433 |
| | Project Boost Purchaser LLC, 2024 Term Loan, 3 mo. USD Term SOFR + 3.50%, 8.786%, 7/16/31 | United States | | | 4,365,343 | 4,368,442 |
| | | | | | | 14,194,098 |
| | Asset Management & Custody Banks 0.7% | | | | | |
| | First Eagle Investment Management LLC, 2024 Term Loan B2, 3 mo. USD Term SOFR + 3.00%, 7.604%, 3/05/29 | United States | | | 4,079,500 | 4,050,189 |
| | Automobile Manufacturers 0.3% | | | | | |
| | American Trailer World Corp., Term Loan B, 1 mo. USD Term SOFR + 3.75%, 8.695%, 3/03/28 | United States | | | 1,895,532 | 1,721,512 |
| | Automotive Parts & Equipment 3.6% | | | | | |
| | Clarios Global LP, 2024 USD Term Loan B, 1 mo. USD Term SOFR + 2.50%, 7.345%, 5/06/30 | United States | | | 1,333,201 | 1,335,428 |
| | DexKo Global, Inc., | | | | | |
| | 2021 USD Term Loan B, 3 mo. USD Term SOFR + 3.75%, 8.615%, 10/04/28 | United States | | | 3,261,542 | 3,160,499 |
| | 2023 Incremental Term Loan, 3 mo. USD Term SOFR + 4.25%, 8.854%, 10/04/28 | United States | | | 689,526 | 675,477 |
| | First Brands Group LLC, | | | | | |
| | 2021 Term Loan, 3 mo. USD Term SOFR + 5.00%, 10.252%, 3/30/27 | United States | | | 6,755,989 | 6,695,827 |
| | 2022 Incremental Term Loan, 3 mo. USD Term SOFR + 5.00%, 10.514%, 3/30/27 | United States | | | 1,757,795 | 1,742,414 |
| | Harbor Freight Tools USA, Inc., 2024 Term Loan B, 6 mo. USD Term SOFR + 2.50%, 7.241% - 7.345%, 6/05/31 | United States | | | 2,568,867 | 2,533,018 |
| | RealTruck Group, Inc., 2021 Term Loan B, 1 mo. USD Term SOFR + 3.50%, 8.46%, 1/31/28 | United States | | | 4,074,977 | 4,016,012 |
| | Tenneco, Inc., 2022 Term Loan B, 3 mo. USD Term SOFR + 5.00%, 9.704% - 10.228%, 11/17/28 | United States | | | 1,258,115 | 1,197,958 |
| | | | | | | 21,356,633 |
| | Automotive Retail 0.4% | | | | | |
| | Mavis Tire Express Services Corp., 2024 Term Loan, 1 mo. USD Term SOFR + 3.50%, 8.354%, 5/04/28 | United States | | | 1,761,103 | 1,762,301 |
| | Wand NewCo 3, Inc., 2024 1st Lien Term Loan B, 1 mo. USD Term SOFR + 3.25%, 8.095% - 8.105%, 1/30/31 | United States | | | 429,957 | 429,957 |
| | | | | | | 2,192,258 |
| 81 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin Senior Loan ETF (continued)
| | | Country | | | Principal Amount* | Value |
| b | Senior Floating Rate Interests (continued) | | | | | |
| | Building Products 1.4% | | | | | |
| | Allied Universal Holdco LLC, 2021 USD Incremental Term Loan B, 1 mo. USD Term SOFR + 3.75%, 8.695%, 5/12/28 | United States | | | 6,452,061 | $ 6,396,412 |
| | Solis IV BV, USD Term Loan B1, 3 mo. USD Term SOFR + 3.50%, 8.571%, 2/26/29 | Netherlands | | | 1,574,669 | 1,565,812 |
| | | | | | | 7,962,224 |
| | Capital Markets 2.0% | | | | | |
| | Assetmark Financial Holdings, Inc., 2024 Term Loan, 3 mo. USD Term SOFR + 3.00%, 7.604%, 9/05/31 | United States | | | 3,656,716 | 3,618,431 |
| | Edelman Financial Center LLC, 2024 Term Loan B, 1 mo. USD Term SOFR + 3.25%, 8.095%, 4/07/28 | United States | | | 3,632,434 | 3,629,818 |
| | Janney Montgomery Scott LLC, | | | | | |
| | c Term Loan, TBD, 9/11/31 | United States | | | 1,611,264 | 1,606,228 |
| | c Delayed Draw Term Loan, TBD, 9/11/31 | United States | | | 268,544 | 267,705 |
| | Russell Investments U.S. Institutional Holdco, Inc., 2024 PIK Term Loan, 3 mo. USD Term SOFR + 1.50%, 1.5% - 10.252%, 5/30/27 | United States | | | 3,059,943 | 2,657,561 |
| | | | | | | 11,779,743 |
| | Cargo Ground Transportation 0.7% | | | | | |
| | Kenan Advantage Group, Inc., 2024 Term Loan B4, 1 mo. USD Term SOFR + 3.25%, 8.095%, 1/25/29 | United States | | | 4,316,803 | 4,309,615 |
| | Casinos & Gaming 3.0% | | | | | |
| | Bally’s Corp., 2021 Term Loan B, 3 mo. USD Term SOFR + 3.25%, 8.794%, 10/02/28 | United States | | | 4,733,495 | 4,519,020 |
| | Caesars Entertainment, Inc., | | | | | |
| | Term Loan B, 1 mo. USD Term SOFR + 2.75%, 7.595%, 2/06/30 | United States | | | 1,015,710 | 1,017,691 |
| | 2024 Term Loan B1, 1 mo. USD Term SOFR + 2.75%, 7.595%, 2/06/31 | United States | | | 865,217 | 866,502 |
| | Flutter Financing BV, Term Loan B, 3 mo. USD Term SOFR + 2.00%, 6.604%, 11/29/30 | Ireland | | | 1,976,078 | 1,980,663 |
| | GVC Holdings Ltd., 2024 USD Term Loan B3, 6 mo. USD Term SOFR + 2.75%, 8.014%, 10/31/29 | Gibraltar | | | 2,868,200 | 2,872,373 |
| | Light & Wonder International, Inc., 2024 Term Loan B2, 1 mo. USD Term SOFR + 2.25%, 7.333%, 4/14/29 | United States | | | 1,293,294 | 1,294,561 |
| | Ontario Gaming GTA LP, Term Loan B, 3 mo. USD Term SOFR + 4.25%, 8.893%, 8/01/30 | Canada | | | 582,929 | 583,110 |
| | Scientific Games Holdings LP, 2024 USD Term Loan B, 3 mo. USD Term SOFR + 3.00%, 8.318%, 4/04/29 | United States | | | 4,257,392 | 4,237,084 |
| | | | | | | 17,371,004 |
| | Chemicals 3.6% | | | | | |
| | Hexion Holdings Corp., | | | | | |
| | 2022 USD Term Loan, 3 mo. USD Term SOFR + 4.50%, 9.771%, 3/15/29 | United States | | | 3,963,169 | 3,939,470 |
| | 2022 USD 2nd Lien Term Loan, 1 mo. USD Term SOFR + 7.44%, 12.383%, 3/15/30 | United States | | | 1,100,000 | 996,418 |
| | INEOS Quattro Holdings UK Ltd., | | | | | |
| | 2023 USD Term Loan, 1 mo. USD Term SOFR + 3.75%, 8.695%, 3/14/30 | United States | | | 297,739 | 298,298 |
| | 2023 USD 1st Lien Term Loan B, 1 mo. USD Term SOFR + 4.25%, 9.195%, 4/02/29 | United States | | | 2,676,868 | 2,681,058 |
| | LSF11 A5 HoldCo LLC, 2024 Term Loan B, 1 mo. USD Term SOFR + 3.50%, 8.46%, 10/15/28 | United States | | | 2,127,212 | 2,125,883 |
| | Nouryon Finance BV, | | | | | |
| | 2024 USD Term Loan B1, 3 mo. USD Term SOFR + 3.50%, 8.628%, 4/03/28 | Netherlands | | | 1,211,384 | 1,214,794 |
| | 2024 Incremental Term Loan B2, 3 mo. USD Term SOFR + 3.50%, 8.821%, 4/03/28 | Netherlands | | | 502,744 | 504,524 |
| franklintempleton.com | Semi-Annual Report | 82 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin Senior Loan ETF (continued)
| | | Country | | | Principal Amount* | Value |
| b | Senior Floating Rate Interests (continued) | | | | | |
| | Chemicals (continued) | | | | | |
| | PMHC II, Inc., 2022 Term Loan B, 3 mo. USD Term SOFR + 4.25%, 9.704%, 4/23/29 | United States | | | 6,771,346 | $ 6,619,634 |
| | SCIH Salt Holdings, Inc., 2021 Incremental Term Loan B, 3 mo. USD Term SOFR + 3.50%, 8.755%, 3/16/27 | United States | | | 2,743,865 | 2,746,828 |
| | | | | | | 21,126,907 |
| | Commercial Services & Supplies 4.5% | | | | | |
| c | AMNTM Government Services Holding LLC, 2024 Term Loan B, TBD, 7/30/31 | United States | | | 2,787,037 | 2,781,811 |
| | APX Group, Inc., 2021 Term Loan B, 3 mo. USD Term SOFR + 2.75%, 8.296% - 9.75%, 7/10/28 | United States | | | 2,288,205 | 2,291,248 |
| | Avis Budget Car Rental LLC, 2023 Term Loan C, 1 mo. USD Term SOFR + 3.00%, 7.945%, 3/16/29 | United States | | | 994,988 | 996,858 |
| | Boost Newco Borrower LLC, 2024 USD Term Loan B, 3 mo. USD Term SOFR + 2.50%, 7.104%, 1/31/31 | United States | | | 714,286 | 715,475 |
| | Foundever Worldwide Corp., 2021 USD Term Loan, 1 mo. USD Term SOFR + 3.75%, 8.71%, 8/28/28 | France | | | 691,094 | 458,932 |
| c | GTCR W Merger Sub LLC, USD Term Loan B, TBD, 1/31/31 | United States | | | 4,221,739 | 4,228,768 |
| | Indy U.S. Holdco LLC, 2024 USD Term Loan B, 1 mo. USD Term SOFR + 4.75%, 9.595%, 3/06/28 | United States | | | 1,944,444 | 1,941,207 |
| | MPH Acquisition Holdings LLC, 2021 Term Loan B, 3 mo. USD Term SOFR + 4.25%, 9.569%, 9/01/28 | United States | | | 2,669,347 | 2,024,700 |
| | Neptune Bidco U.S., Inc., 2022 USD Term Loan B, 3 mo. USD Term SOFR + 5.00%, 10.404%, 4/11/29 | United States | | | 3,290,421 | 3,097,701 |
| c | Nuvei Technologies Corp., 2024 Term Loan B1, TBD, 7/18/31 | United States | | | 4,291,793 | 4,249,776 |
| | Priority Holdings LLC, 2024 Term Loan B, 3 mo. USD Term SOFR + 4.75%, 9.807%, 5/16/31 | United States | | | 498,750 | 498,827 |
| | Spin Holdco, Inc., 2021 Term Loan, 3 mo. USD Term SOFR + 4.00%, 9.256%, 3/04/28 | United States | | | 3,814,124 | 3,355,648 |
| | | | | | | 26,640,951 |
| | Communications Equipment 0.3% | | | | | |
| | CommScope, Inc., 2019 Term Loan B, 1 mo. USD Term SOFR + 3.25%, 8.21%, 4/06/26 | United States | | | 1,542,204 | 1,497,542 |
| | Computer & Electronics Retail 1.8% | | | | | |
| | Fortress Intermediate 3, Inc., Term Loan B, 1 mo. USD Term SOFR + 3.75%, 8.595%, 6/27/31 | United States | | | 3,477,218 | 3,475,045 |
| | McAfee LLC, 2024 USD Term Loan B, 1 mo. USD Term SOFR + 3.25%, 8.451%, 3/01/29 | United States | | | 7,202,005 | 7,185,692 |
| | | | | | | 10,660,737 |
| | Construction & Engineering 0.7% | | | | | |
| | Brand Industrial Services, Inc., 2024 Term Loan B, 3 mo. USD Term SOFR + 4.50%, 9.748%, 8/01/30 | United States | | | 1,625,406 | 1,584,015 |
| | Brown Group Holding LLC, 2022 Incremental Term Loan B2, 3 mo. USD Term SOFR + 2.75%, 7.595% - 8.002%, 7/01/31 | United States | | | 798,000 | 797,222 |
| | Chromalloy Corp., 2024 Term Loan B, 3 mo. USD Term SOFR + 3.75%, 9.082% - 9.091%, 3/27/31 | United States | | | 1,865,613 | 1,776,661 |
| | | | | | | 4,157,898 |
| | Construction Materials 2.3% | | | | | |
| c | Asplundh Tree Expert LLC, 2024 Incremental Term Loan B, TBD, 5/23/31 | United States | | | 1,993,000 | 1,997,155 |
| c | Chamberlain Group, Inc., Term Loan B, TBD, 11/03/28 | United States | | | 1,500,000 | 1,493,812 |
| 83 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin Senior Loan ETF (continued)
| | | Country | | | Principal Amount* | Value |
| b | Senior Floating Rate Interests (continued) | | | | | |
| | Construction Materials (continued) | | | | | |
| | Cornerstone Building Brands, Inc., | | | | | |
| | 2021 Term Loan B, 1 mo. USD Term SOFR + 3.25%, 8.447%, 4/12/28 | United States | | | 1,847,626 | $ 1,812,734 |
| | 2024 Term Loan B, 1 mo. USD Term SOFR + 4.50%, 9.597%, 5/15/31 | United States | | | 1,716,438 | 1,699,815 |
| | EMRLD Borrower LP, 2024 Term Loan B, 3 mo. USD Term SOFR + 2.50%, 7.557%, 8/04/31 | United States | | | 3,221,302 | 3,218,709 |
| | MI Windows & Doors LLC, 2024 Term Loan B2, 1 mo. USD Term SOFR + 3.50%, 8.345%, 3/28/31 | United States | | | 298,653 | 299,544 |
| | Quikrete Holdings, Inc., | | | | | |
| | 2024 Term Loan B1, 1 mo. USD Term SOFR + 2.25%, 7.095%, 3/19/29 | United States | | | 1,273,801 | 1,275,534 |
| | 2024 Term Loan B, 1 mo. USD Term SOFR + 2.50%, 7.345%, 4/14/31 | United States | | | 1,415,468 | 1,417,555 |
| | | | | | | 13,214,858 |
| | Consumer Electronics 0.4% | | | | | |
| | II-VI, Inc., 2024 Term Loan B, 1 mo. USD Term SOFR + 2.50%, 7.345%, 7/02/29 | United States | | | 2,078,977 | 2,082,220 |
| | Containers & Packaging 2.1% | | | | | |
| | Charter NEX U.S., Inc., 2024 Term Loan B, 1 mo. USD Term SOFR + 3.25%, 8.095%, 12/01/27 | United States | | | 4,296,044 | 4,301,865 |
| | Klockner-Pentaplast of America, Inc., 2021 Term Loan B, 6 mo. USD Term SOFR + 4.73%, 9.723%, 2/12/26 | Luxembourg | | | 2,737,296 | 2,585,226 |
| | Mauser Packaging Solutions Holding Co., 2024 Term Loan B, 1 mo. USD Term SOFR + 3.50%, 8.701%, 4/15/27 | United States | | | 1,489,230 | 1,493,884 |
| | Proampac PG Borrower LLC, 2024 Term Loan, 3 mo. USD Term SOFR + 4.00%, 9.118% - 9.301%, 9/15/28 | United States | | | 1,653,703 | 1,658,250 |
| | Reynolds Group Holdings, Inc., 2024 Term Loan B3, 1 mo. USD Term SOFR + 2.50%, 7.345%, 9/24/28 | United States | | | 2,330,898 | 2,333,077 |
| | | | | | | 12,372,302 |
| | Distributors 0.5% | | | | | |
| | BCPE Empire Holdings, Inc., 2024 Term Loan, 1 mo. USD Term SOFR + 4.00%, 8.845%, 12/11/28 | United States | | | 2,986,496 | 2,991,170 |
| | Diversified Banks 0.4% | | | | | |
| | AqGen Island Holdings, Inc., Term Loan, 1 mo. USD Term SOFR + 3.50%, 8.46%, 8/02/28 | United States | | | 2,411,534 | 2,414,561 |
| | Diversified Metals & Mining 0.1% | | | | | |
| | Arsenal AIC Parent LLC, 2024 1st Lien Term Loan B, 1 mo. USD Term SOFR + 3.25%, 8.095%, 8/18/30 | United States | | | 738,871 | 739,240 |
| | Diversified Support Services 0.5% | | | | | |
| | Forward Air Corp., Term Loan B, 3 mo. USD Term SOFR + 4.50%, 9.752%, 12/19/30 | United States | | | 3,072,000 | 3,055,488 |
| | Diversified Telecommunication Services 0.9% | | | | | |
| | Altice France SA, 2023 USD Term Loan B14, 3 mo. USD Term SOFR + 5.50%, 10.801%, 8/15/28 | France | | | 1,155,828 | 869,761 |
| | Delta TopCo, Inc., 2024 Term Loan, 6 mo. USD Term SOFR + 3.50%, 8.198%, 11/30/29 | United States | | | 3,513,180 | 3,511,967 |
| | Zayo Group Holdings, Inc., USD Term Loan, 1 mo. USD Term SOFR + 3.00%, 7.97%, 3/09/27 | United States | | | 708,194 | 648,957 |
| | | | | | | 5,030,685 |
| | Education Services 0.2% | | | | | |
| | Ascend Learning LLC, 2021 Term Loan, 1 mo. USD Term SOFR + 3.50%, 8.445%, 12/11/28 | United States | | | 1,396,410 | 1,391,655 |
| franklintempleton.com | Semi-Annual Report | 84 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin Senior Loan ETF (continued)
| | | Country | | | Principal Amount* | Value |
| b | Senior Floating Rate Interests (continued) | | | | | |
| | Electric Utilities 0.3% | | | | | |
| | Calpine Construction Finance Co. LP, 2023 Refinancing Term Loan B, 1 mo. USD Term SOFR + 2.00%, 6.845%, 7/31/30 | United States | | | 1,293,500 | $ 1,286,496 |
| | Talen Energy Supply LLC, | | | | | |
| | 2023 Term Loan C, 3 mo. USD Term SOFR + 3.50%, 8.596%, 5/17/30 | United States | | | 39,788 | 39,960 |
| | 2023 Term Loan B, 3 mo. USD Term SOFR + 3.50%, 8.596%, 5/17/30 | United States | | | 279,604 | 280,810 |
| | | | | | | 1,607,266 |
| | Electronic Equipment & Instruments 0.3% | | | | | |
| | Roper Industrial Products Investment Co. LLC, 2024 USD Term Loan B, 3 mo. USD Term SOFR + 3.25%, 7.854%, 11/22/29 | United States | | | 1,757,539 | 1,762,714 |
| | Financial Services 1.2% | | | | | |
| | Asurion LLC, | | | | | |
| | 2020 Term Loan B8, 1 mo. USD Term SOFR + 3.25%, 8.21%, 12/23/26 | United States | | | 2,213,860 | 2,214,591 |
| | 2021 Second Lien Term Loan B4, 1 mo. USD Term SOFR + 5.25%, 10.21%, 1/20/29 | United States | | | 3,097,666 | 2,874,293 |
| | Wec U.S. Holdings Ltd., 2024 Term Loan, 1 mo. USD Term SOFR + 2.75%, 7.595%, 1/27/31 | United States | | | 2,000,000 | 2,001,820 |
| | | | | | | 7,090,704 |
| | Food Products 0.8% | | | | | |
| | Triton Water Holdings, Inc., | | | | | |
| | Term Loan, 3 mo. USD Term SOFR + 3.25%, 7.918%, 3/31/28 | United States | | | 4,783,290 | 4,780,420 |
| | 2024 Incremental Term Loan B, 3 mo. USD Term SOFR + 4.00%, 8.668%, 3/31/28 | United States | | | 206,771 | 207,029 |
| | | | | | | 4,987,449 |
| | Health Care Providers & Services 7.6% | | | | | |
| | ADMI Corp., | | | | | |
| | 2021 Term Loan B2, 1 mo. USD Term SOFR + 3.38%, 8.335%, 12/23/27 | United States | | | 740,263 | 722,312 |
| | 2021 Incremental Term Loan B3, 1 mo. USD Term SOFR + 3.75%, 8.71%, 12/23/27 | United States | | | 3,528,142 | 3,460,719 |
| | 2023 Term Loan B5, 1 mo. USD Term SOFR + 5.75%, 10.595%, 12/23/27 | United States | | | 232,013 | 232,665 |
| | Charlotte Buyer, Inc., 2024 Term Loan B, 1 mo. USD Term SOFR + 4.75%, 9.854%, 2/11/28 | United States | | | 5,410,321 | 5,458,500 |
| | eResearchTechnology, Inc., 2024 Term Loan, 1 mo. USD Term SOFR + 4.00%, 8.845%, 2/04/27 | United States | | | 1,337,058 | 1,344,345 |
| | Gainwell Acquisition Corp., Term Loan B, 3 mo. USD Term SOFR + 4.00%, 8.704%, 10/01/27 | United States | | | 2,665,623 | 2,544,004 |
| | Global Medical Response, Inc., 2024 PIK Term Loan, 1 mo. USD Term SOFR + 5.50%, 10.461%, 10/31/28 | United States | | | 456,637 | 454,747 |
| c | LifePoint Health, Inc., 2024 1st Lien Term Loan B, TBD, 5/16/31 | United States | | | 837,989 | 838,617 |
| | Medical Solutions Holdings, Inc., 2021 1st Lien Term Loan, 3 mo. USD Term SOFR + 3.50%, 8.852%, 11/01/28 | United States | | | 3,432,472 | 2,633,564 |
| | Medline Borrower LP, | | | | | |
| | 2024 USD Term Loan B, TBD, 10/23/28 | United States | | | 1,478,796 | 1,478,663 |
| | 2024 Term Loan B, 1 mo. USD Term SOFR + 2.75%, 7.595%, 10/23/28 | United States | | | 2,193,500 | 2,196,867 |
| | National Mentor Holdings, Inc., | | | | | |
| | 2021 Term Loan C, 3 mo. USD Term SOFR + 3.75%, 8.454%, 3/02/28 | United States | | | 104,234 | 100,502 |
| | 2021 Term Loan, 3 mo. USD Term SOFR + 3.75%, 8.454% - 8.695%, 3/02/28 | United States | | | 3,364,232 | 3,243,793 |
| 85 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin Senior Loan ETF (continued)
| | | Country | | | Principal Amount* | Value |
| b | Senior Floating Rate Interests (continued) | | | | | |
| | Health Care Providers & Services (continued) | | | | | |
| | Parexel International Corp., 2024 Term Loan B, 1 mo. USD Term SOFR + 3.00%, 7.845%, 11/15/28 | United States | | | 2,826,039 | $ 2,829,783 |
| | Phoenix Guarantor, Inc., 2024 Term Loan, 1 mo. USD Term SOFR + 3.25%, 8.095%, 2/21/31 | United States | | | 4,570,141 | 4,562,988 |
| | Radiology Partners, Inc., 2024 Extended Term Loan B, 3 mo. USD Term SOFR + 3.50%, 8.883%, 1/31/29 | United States | | | 1,718,204 | 1,688,144 |
| | Star Parent, Inc., Term Loan B, 3 mo. USD Term SOFR + 3.75%, 8.409%, 9/27/30 | United States | | | 1,956,833 | 1,906,817 |
| | Surgery Center Holdings, Inc., 2024 Term Loan B, 1 mo. USD Term SOFR + 2.75%, 7.67%, 12/19/30 | United States | | | 212,607 | 212,990 |
| | U.S. Anesthesia Partners, Inc., 2021 Term Loan, 1 mo. USD Term SOFR + 4.25%, 9.565%, 10/01/28 | United States | | | 4,094,827 | 4,018,315 |
| | U.S. Radiology Specialists, Inc., 2024 Term Loan B, 3 mo. USD Term SOFR + 4.75%, 9.354%, 12/15/27 | United States | | | 2,739,208 | 2,746,056 |
| | Waystar Technologies, Inc., 2024 USD Term Loan B, 1 mo. USD Term SOFR + 2.75%, 7.595%, 10/22/29 | United States | | | 2,095,469 | 2,099,408 |
| | | | | | | 44,773,799 |
| | Health Care Services 2.2% | | | | | |
| | CHG Healthcare Services, Inc., 2021 Term Loan, 1 mo. USD Term SOFR + 3.25%, 8.46%, 9/29/28 | United States | | | 1,374,654 | 1,376,448 |
| | Cotiviti Corp., 2024 Term Loan, 1 mo. USD Term SOFR + 3.25%, 8.451%, 5/01/31 | United States | | | 6,949,476 | 6,953,820 |
| | DaVita, Inc., 2024 Extended Term Loan B1, 1 mo. USD Term SOFR + 2.00%, 6.845%, 5/09/31 | United States | | | 2,000,000 | 2,001,730 |
| | LifePoint Health, Inc., 2024 Incremental Term Loan B, 1 mo. USD Term SOFR + 4.00%, 8.965%, 5/17/31 | United States | | | 2,452,845 | 2,456,132 |
| | | | | | | 12,788,130 |
| | Health Care Supplies 0.7% | | | | | |
| | Bausch & Lomb Corp., | | | | | |
| | Term Loan, 1 mo. USD Term SOFR + 3.25%, 8.27%, 5/10/27 | United States | | | 2,290,833 | 2,285,427 |
| | 2023 Incremental Term Loan, 1 mo. USD Term SOFR + 4.00%, 8.845%, 9/29/28 | United States | | | 1,584,000 | 1,584,998 |
| | | | | | | 3,870,425 |
| | Home Furnishings 0.6% | | | | | |
| | AI Aqua Merger Sub, Inc., 2021 1st Lien Term Loan B, 1 mo. USD Term SOFR + 3.50%, 8.701%, 7/31/28 | United States | | | 3,404,687 | 3,404,517 |
| | Hotels Restaurants & Leisure 1.0% | | | | | |
| | Fertitta Entertainment LLC, 2022 Term Loan B, 1 mo. USD Term SOFR + 3.75%, 8.847%, 1/27/29 | United States | | | 4,413,695 | 4,406,501 |
| | Hilton Grand Vacations Borrower LLC, | | | | | |
| | 2024 Incremental Term Loan B, 1 mo. USD Term SOFR + 2.25%, 7.095%, 1/17/31 | United States | | | 398,000 | 395,761 |
| | 2021 Term Loan B, 1 mo. USD Term SOFR + 2.50%, 7.345%, 8/02/28 | United States | | | 1,333,580 | 1,327,472 |
| | | | | | | 6,129,734 |
| | Household Products 0.0%† | | | | | |
| | Energizer Holdings, Inc., 2024 Term Loan B, 1 mo. USD Term SOFR + 2.00%, 6.92%, 12/22/27 | United States | | | 156,819 | 157,211 |
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Franklin Templeton ETF Trust
Schedule of Investments
Franklin Senior Loan ETF (continued)
| | | Country | | | Principal Amount* | Value |
| b | Senior Floating Rate Interests (continued) | | | | | |
| | Human Resource & Employment Services 0.7% | | | | | |
| | CHG Healthcare Services, Inc., 2024 Term Loan B2, 1 mo. USD Term SOFR + 3.50%, 8.46%, 9/29/28 | United States | | | 1,882,478 | $ 1,887,570 |
| | TTF Holdings LLC, 2024 Term Loan, 1 mo. USD Term SOFR + 3.75%, 8.595%, 7/18/31 | United States | | | 2,159,135 | 2,164,533 |
| | | | | | | 4,052,103 |
| | Insurance 0.7% | | | | | |
| | Acrisure LLC, 2020 Term Loan B, 1 mo. USD LIBOR + 3.50%, 8.575%, 2/15/27 | United States | | | 2,598,098 | 2,595,395 |
| | Asurion LLC, | | | | | |
| | 2022 Term Loan B10, 1 mo. USD Term SOFR + 4.00%, 8.945%, 8/19/28 | United States | | | 294,000 | 289,643 |
| | 2023 Term Loan B11, 1 mo. USD Term SOFR + 4.25%, 9.195%, 8/19/28 | United States | | | 1,159,032 | 1,143,716 |
| | | | | | | 4,028,754 |
| | Insurance Brokers 3.9% | | | | | |
| | Acrisure LLC, 2024 Term Loan B6, 1 mo. USD Term SOFR + 3.25%, 8.211%, 11/06/30 | United States | | | 2,820,345 | 2,798,318 |
| | Alliant Holdings Intermediate LLC, 2024 Term Loan B6, 1 mo. USD Term SOFR + 3.00%, 7.965%, 9/19/31 | United States | | | 2,829,682 | 2,817,034 |
| | AssuredPartners, Inc., 2024 Incremental Term Loan B5, 1 mo. USD Term SOFR + 3.50%, 8.345%, 2/14/31 | United States | | | 2,289,699 | 2,290,100 |
| | Broadstreet Partners, Inc., 2024 Term Loan B4, 1 mo. USD Term SOFR + 3.25%, 8.095%, 6/13/31 | United States | | | 3,768,230 | 3,757,547 |
| | HUB International Ltd., 2024 1st Lien Term Loan B, 3 mo. USD Term SOFR + 3.00%, 8.225%, 6/20/30 | United States | | | 3,633,081 | 3,631,882 |
| | Sedgwick Claims Management Services, Inc., 2023 Term Loan B, 3 mo. USD Term SOFR + 3.00%, 8.252%, 7/31/31 | United States | | | 4,619,443 | 4,616,117 |
| | Truist Insurance Holdings LLC, 1st Lien Term Loan, 3 mo. USD Term SOFR + 3.25%, 7.854%, 5/06/31 | United States | | | 3,139,604 | 3,139,933 |
| | | | | | | 23,050,931 |
| | Interactive Media & Services 1.2% | | | | | |
| | Hunter Holdco 3 Ltd., USD Term Loan B, 3 mo. USD Term SOFR + 4.25%, 8.954%, 8/19/28 | United States | | | 995,153 | 991,421 |
| | MH Sub I LLC, 2023 Term Loan, 1 mo. USD Term SOFR + 4.25%, 9.095%, 5/03/28 | United States | | | 5,963,427 | 5,932,745 |
| | | | | | | 6,924,166 |
| | Investment Banking & Brokerage 1.4% | | | | | |
| | Aretec Group, Inc., 2024 Term Loan B, 1 mo. USD Term SOFR + 4.00%, 8.845%, 8/09/30 | United States | | | 2,890,731 | 2,835,721 |
| | Citadel Securities LP, 2024 Term Loan B, 1 mo. USD Term SOFR + 2.25%, 7.095%, 7/29/30 | United States | | | 2,458,615 | 2,459,869 |
| | Jane Street Group LLC, 2024 Term Loan B, 1 mo. USD Term SOFR + 2.50%, 7.46%, 1/26/28 | United States | | | 2,902,073 | 2,902,725 |
| | | | | | | 8,198,315 |
| | IT Services 0.7% | | | | | |
| | Deerfield Dakota Holding LLC, 2020 USD Term Loan B, 3 mo. USD Term SOFR + 3.75%, 8.354%, 4/09/27 | United States | | | 1,135,634 | 1,114,125 |
| | Dun & Bradstreet Corp., 2024 Term Loan B, 1 mo. USD Term SOFR + 2.75%, 7.605%, 1/18/29 | United States | | | 1,734,171 | 1,734,657 |
| | Nuvei Technologies Corp., USD Term Loan, 1 mo. USD Term SOFR + 3.00%, 7.955%, 12/19/30 | Canada | | | 1,147,613 | 1,150,689 |
| | | | | | | 3,999,471 |
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Franklin Templeton ETF Trust
Schedule of Investments
Franklin Senior Loan ETF (continued)
| | | Country | | | Principal Amount* | Value |
| b | Senior Floating Rate Interests (continued) | | | | | |
| | Leisure Equipment & Products 0.4% | | | | | |
| | Playtika Holding Corp., 2021 Term Loan B1, 1 mo. USD Term SOFR + 2.75%, 7.71%, 3/13/28 | United States | | | 2,263,486 | $ 2,251,523 |
| | Leisure Products 0.2% | | | | | |
| | GBT U.S. III LLC, Term Loan B, 3 mo. USD Term SOFR + 3.00%, 8.279%, 7/25/31 | United States | | | 1,392,521 | 1,391,358 |
| | Machinery 1.3% | | | | | |
| | CD&R Hydra Buyer, Inc., 2024 Term Loan B, 1 mo. USD Term SOFR + 4.00%, 8.945%, 3/25/31 | United States | | | 2,590,491 | 2,576,736 |
| | CPM Holdings, Inc., 2023 Term Loan, 1 mo. USD Term SOFR + 4.50%, 9.701%, 9/28/28 | United States | | | 2,488,718 | 2,368,725 |
| | Pro Mach Group, Inc., 2024 1st Lien Term Loan B, 1 mo. USD Term SOFR + 3.50%, 8.345% - 9.807%, 8/31/28 | United States | | | 196,809 | 197,683 |
| | TK Elevator U.S. Newco, Inc., USD Term Loan B, 6 mo. USD Term SOFR + 3.50%, 8.588%, 4/30/30 | United States | | | 2,066,908 | 2,073,367 |
| | Vertiv Group Corp., 2024 Term Loan B2, 1 mo. USD Term SOFR + 2.00%, 7.201%, 3/02/27 | United States | | | 489,189 | 490,106 |
| | | | | | | 7,706,617 |
| | Media 2.5% | | | | | |
| | Cengage Learning, Inc., 2024 Term Loan B, 6 mo. USD Term SOFR + 4.25%, 9.538%, 3/22/31 | United States | | | 4,085,554 | 4,099,343 |
| | Gray Television, Inc., 2021 Term Loan D, 1 mo. USD Term SOFR + 3.00%, 8.315%, 12/01/28 | United States | | | 2,460,115 | 2,275,151 |
| | iHeartCommunications, Inc., 2020 Term Loan, 1 mo. USD Term SOFR + 3.00%, 7.96%, 5/01/26 | United States | | | 1,100,000 | 956,257 |
| | McGraw-Hill Global Education Holdings LLC, 2024 Term Loan B, 3 mo. USD Term SOFR + 4.00%, 8.604%, 8/06/31 | United States | | | 1,362,231 | 1,369,042 |
| | Nexstar Broadcasting, Inc., 2019 Term Loan B4, 1 mo. USD Term SOFR + 2.50%, 7.46%, 9/18/26 | United States | | | 861,233 | 861,987 |
| | Univision Communications, Inc., | | | | | |
| | 2021 First Lien Term Loan B, 1 mo. USD Term SOFR + 3.25%, 8.21%, 3/16/26 | United States | | | 645,734 | 646,322 |
| | 2024 Term Loan B, 1 mo. USD Term SOFR + 3.50%, 8.46%, 1/31/29 | United States | | | 1,695,750 | 1,660,775 |
| | Virgin Media Bristol LLC, 2020 USD Term Loan Q, 1 mo. USD Term SOFR + 3.25%, 8.461%, 1/31/29 | United States | | | 2,470,000 | 2,366,235 |
| | William Morris Endeavor Entertainment LLC, 2018 1st Lien Term Loan, 1 mo. USD Term SOFR + 2.50%, 7.345% - 7.861%, 5/18/25 | United States | | | 565,289 | 566,349 |
| | | | | | | 14,801,461 |
| | Metal, Glass & Plastic Containers 0.5% | | | | | |
| | Berlin Packaging LLC, 2024 Term Loan B, 1 mo. USD Term SOFR + 3.75%, 8.951% - 9.002%, 6/09/31 | United States | | | 3,192,000 | 3,193,293 |
| | Movies & Entertainment 0.0%† | | | | | |
| | AMC Entertainment Holdings, Inc., 2024 Term Loan, 1 mo. USD Term SOFR + 7.00%, 11.92%, 1/04/29 | United States | | | 241,709 | 241,558 |
| | Packaged Foods & Meats 0.7% | | | | | |
| | Fiesta Purchaser, Inc., 2024 Term Loan B, 1 mo. USD Term SOFR + 4.00%, 8.845%, 2/12/31 | United States | | | 1,149,765 | 1,151,921 |
| | Primary Products Finance LLC, 2024 Term Loan B, 3 mo. USD Term SOFR + 3.50%, 8.971%, 4/01/29 | United States | | | 2,769,926 | 2,774,677 |
| | | | | | | 3,926,598 |
| franklintempleton.com | Semi-Annual Report | 88 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin Senior Loan ETF (continued)
| | | Country | | | Principal Amount* | Value |
| b | Senior Floating Rate Interests (continued) | | | | | |
| | Passenger Airlines 2.3% | | | | | |
| | Air Canada, 2024 Term Loan B, 3 mo. USD Term SOFR + 2.50%, 7.253%, 3/21/31 | Canada | | | 1,104,213 | $ 1,108,354 |
| | American Airlines, Inc., | | | | | |
| | 2023 1st Lien Term Loan, 6 mo. USD Term SOFR + 2.50%, 7.209%, 6/04/29 | United States | | | 4,833,333 | 4,803,125 |
| | 2021 Term Loan, 3 mo. USD Term SOFR + 4.75%, 10.294%, 4/20/28 | United States | | | 1,184,764 | 1,219,809 |
| | United Airlines, Inc., 2024 Term Loan B, 3 mo. USD Term SOFR + 2.75%, 8.033%, 2/22/31 | United States | | | 1,856,244 | 1,862,045 |
| | WestJet Loyalty LP, Term Loan B, 3 mo. USD Term SOFR + 3.75%, 8.354%, 2/14/31 | Canada | | | 4,449,541 | 4,409,673 |
| | | | | | | 13,403,006 |
| | Personal Care Products 0.3% | | | | | |
| | Conair Holdings LLC, Term Loan B, 1 mo. USD Term SOFR + 3.75%, 8.71%, 5/17/28 | United States | | | 2,014,979 | 1,853,428 |
| | Pharmaceuticals 1.3% | | | | | |
| | Endo Luxembourg Finance Co. I SARL, 2024 Term Loan B, 3 mo. USD Term SOFR + 4.50%, 9.783%, 4/23/31 | Luxembourg | | | 2,223,399 | 2,224,089 |
| | Grifols Worldwide Operations USA, Inc., 2019 USD Term Loan B, 3 mo. USD Term SOFR + 2.00%, 7.402%, 11/15/27 | United States | | | 748,921 | 729,262 |
| | Jazz Financing Lux SARL, 2024 1st Lien Term Loan B, 1 mo. USD Term SOFR + 2.25%, 7.095%, 5/05/28 | United States | | | 2,431,632 | 2,431,851 |
| | Organon & Co., 2024 USD Term Loan B, 1 mo. USD Term SOFR + 2.50%, 7.465%, 5/19/31 | United States | | | 944,974 | 944,974 |
| | Perrigo Investments LLC, Term Loan B, 1 mo. USD Term SOFR + 2.25%, 7.195%, 4/20/29 | United States | | | 1,067,327 | 1,068,218 |
| | | | | | | 7,398,394 |
| | Real Estate Management & Development 1.3% | | | | | |
| | CoreLogic, Inc., Term Loan, 1 mo. USD Term SOFR + 3.50%, 8.46%, 6/02/28 | United States | | | 3,884,092 | 3,855,311 |
| | Cushman & Wakefield U.S. Borrower LLC, | | | | | |
| | 2020 Term Loan B, 1 mo. USD Term SOFR + 2.75%, 7.71%, 8/21/25 | United States | | | 38,129 | 38,213 |
| | 2024 Term Loan B, 1 mo. USD Term SOFR + 3.00%, 7.845%, 1/31/30 | United States | | | 1,597,750 | 1,599,747 |
| | 2024 Term Loan, 1 mo. USD Term SOFR + 3.75%, 8.595%, 1/31/30 | United States | | | 1,855,239 | 1,858,717 |
| | | | | | | 7,351,988 |
| | Research & Consulting Services 0.5% | | | | | |
| | KUEHG Corp., 2024 Term Loan B, 3 mo. USD Term SOFR + 4.50%, 9.104%, 6/12/30 | United States | | | 3,207,857 | 3,220,993 |
| | Retail REITs 1.3% | | | | | |
| | Great Outdoors Group LLC, 2021 Term Loan B2, 1 mo. USD Term SOFR + 3.75%, 8.71%, 3/06/28 | United States | | | 3,826,851 | 3,831,233 |
| | Petco Health & Wellness Co., Inc., 2021 Term Loan B, 3 mo. USD Term SOFR + 3.25%, 8.115%, 3/03/28 | United States | | | 3,758,289 | 3,581,574 |
| | | | | | | 7,412,807 |
| | Security & Alarm Services 0.6% | | | | | |
| | Garda World Security Corp., 2024 Term Loan B, 1 mo. USD Term SOFR + 3.50%, 8.597%, 2/01/29 | Canada | | | 497,462 | 498,022 |
| | Prime Security Services Borrower LLC, 2024 Term Loan B, 1 mo. USD Term SOFR + 2.25%, 7.445% - 7.502%, 10/13/30 | United States | | | 3,103,560 | 3,103,560 |
| | | | | | | 3,601,582 |
| 89 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin Senior Loan ETF (continued)
| | | Country | | | Principal Amount* | Value |
| b | Senior Floating Rate Interests (continued) | | | | | |
| | Semiconductors 0.4% | | | | | |
| | MKS Instruments, Inc., 2024 USD Term Loan B, 1 mo. USD Term SOFR + 2.25%, 7.17%, 8/17/29 | United States | | | 2,469,773 | $ 2,473,786 |
| | Soft Drinks & Non-alcoholic Beverages 0.1% | | | | | |
| | Naked Juice LLC, Term Loan, 3 mo. USD Term SOFR + 3.25%, 8.685% - 7.954%, 1/24/29 | United States | | | 547,004 | 449,569 |
| | Software 8.7% | | | | | |
| | AppLovin Corp., 2024 Term Loan (2030), 1 mo. USD Term SOFR + 2.50%, 7.345%, 8/16/30 | United States | | | 895,500 | 895,921 |
| | Athenahealth Group, Inc., 2022 Term Loan B, 1 mo. USD Term SOFR + 3.25%, 8.095%, 2/15/29 | United States | | | 5,818,834 | 5,792,184 |
| | Banff Merger Sub, Inc., 2024 Term Loan B, 3 mo. USD Term SOFR + 3.75%, 9.005%, 7/30/31 | United States | | | 6,000,000 | 5,995,230 |
| | Central Parent, Inc., 2024 Term Loan B, 3 mo. USD Term SOFR + 3.25%, 7.854%, 7/06/29 | United States | | | 5,653,455 | 5,601,641 |
| | Cloudera, Inc., 2021 Term Loan, 1 mo. USD Term SOFR + 3.75%, 8.695%, 10/08/28 | United States | | | 1,900,050 | 1,854,923 |
| | ConnectWise LLC, 2021 Term Loan B, 3 mo. USD Term SOFR + 3.50%, 8.365%, 9/29/28 | United States | | | 1,637,417 | 1,638,236 |
| | Cornerstone OnDemand, Inc., 2021 Term Loan, 1 mo. USD Term SOFR + 3.75%, 8.71%, 10/16/28 | United States | | | 2,214,885 | 2,080,608 |
| | DCert Buyer, Inc., | | | | | |
| | 2019 Term Loan B, 1 mo. USD Term SOFR + 4.00%, 8.845%, 10/16/26 | United States | | | 1,823,901 | 1,774,318 |
| | 2021 2nd Lien Term Loan, 1 mo. USD Term SOFR + 7.00%, 11.845%, 2/19/29 | United States | | | 1,000,000 | 868,575 |
| | Genesys Cloud Services Holdings II LLC, | | | | | |
| | First Lien Term Loan B, 1 mo. USD Term SOFR + 3.50%, 8.345%, 12/01/27 | United States | | | 3,483,498 | 3,494,523 |
| | Term Loan B, 1 mo. USD Term SOFR + 3.75%, 8.71%, 12/01/27 | United States | | | 918,461 | 920,303 |
| | Idera, Inc., 2024 Term Loan, 3 mo. USD Term SOFR + 3.50%, 8.748%, 3/02/28 | United States | | | 4,381,626 | 4,301,530 |
| | Ivanti Software, Inc., | | | | | |
| | 2021 Add On Term Loan B, 3 mo. USD Term SOFR + 4.00%, 9.569%, 12/01/27 | United States | | | 136,468 | 114,463 |
| | 2021 Term Loan B, 3 mo. USD Term SOFR + 4.25%, 9.833%, 12/01/27 | United States | | | 1,658,077 | 1,413,394 |
| | Polaris Newco LLC, USD Term Loan B, 3 mo. USD Term SOFR + 4.00%, 9.514%, 6/02/28 | United States | | | 974,306 | 959,341 |
| | Project Alpha Intermediate Holding, Inc., 2024 Term Loan B, 3 mo. USD Term SOFR + 3.75%, 9.002%, 10/28/30 | United States | | | 2,851,707 | 2,861,261 |
| | Red Planet Borrower LLC, Term Loan B, 1 mo. USD Term SOFR + 3.50%, 8.445%, 10/02/28 | United States | | | 994,872 | 970,627 |
| | Rocket Software, Inc., 2023 USD Term Loan B, 1 mo. USD Term SOFR + 4.75%, 9.595%, 11/28/28 | United States | | | 1,897,642 | 1,901,864 |
| | Sovos Compliance LLC, 2021 Term Loan, 1 mo. USD Term SOFR + 4.50%, 9.46%, 8/11/28 | United States | | | 4,588,525 | 4,592,448 |
| | UKG, Inc., 2024 Term Loan B, 3 mo. USD Term SOFR + 3.25%, 8.555%, 2/10/31 | United States | | | 2,427,053 | 2,430,086 |
| | VS Buyer LLC, 2024 Term Loan B, 1 mo. USD Term SOFR + 3.25%, 8.347%, 4/11/31 | United States | | | 364,384 | 365,446 |
| | | | | | | 50,826,922 |
| | Specialty Chemicals 0.2% | | | | | |
| | INEOS U.S. Finance LLC, 2023 USD Term Loan B, 1 mo. USD Term SOFR + 3.25%, 8.095%, 2/18/30 | Luxembourg | | | 1,475,200 | 1,476,255 |
| franklintempleton.com | Semi-Annual Report | 90 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin Senior Loan ETF (continued)
| | | Country | | | Principal Amount* | Value |
| b | Senior Floating Rate Interests (continued) | | | | | |
| | Specialty Retail 3.0% | | | | | |
| | Foundation Building Materials Holding Co. LLC, 2024 Term Loan B2, 1 mo. USD Term SOFR + 4.00%, 8.845% - 9.252%, 1/29/31 | United States | | | 3,270,729 | $ 3,192,118 |
| | IRB Holding Corp., 2024 Term Loan B, 1 mo. USD Term SOFR + 2.75%, 7.695%, 12/15/27 | United States | | | 1,880,451 | 1,880,188 |
| | Michaels Cos., Inc., 2021 Term Loan B, 3 mo. USD Term SOFR + 4.25%, 9.115%, 4/17/28 | United States | | | 1,952,290 | 1,549,142 |
| | Peer Holding III BV, 2024 USD Term Loan B5, 3 mo. USD Term SOFR + 3.00%, 3.046%, 7/01/31 | Netherlands | | | 2,501,751 | 2,512,696 |
| | PetSmart, Inc., 2021 Term Loan B, 1 mo. USD Term SOFR + 3.75%, 8.695%, 2/11/28 | United States | | | 1,299,578 | 1,290,409 |
| | Whatabrands LLC, 2024 Term Loan B, 1 mo. USD Term SOFR + 2.75%, 7.605%, 8/03/28 | United States | | | 4,121,506 | 4,120,125 |
| | White Cap Buyer LLC, 2024 Term Loan B, 1 mo. USD Term SOFR + 3.25%, 8.095%, 10/19/29 | United States | | | 3,266,248 | 3,246,455 |
| | | | | | | 17,791,133 |
| | Systems Software 0.2% | | | | | |
| | Barracuda Networks, Inc., 2022 Term Loan, 3 mo. USD Term SOFR + 4.50%, 9.814%, 8/15/29 | United States | | | 1,380,690 | 1,345,696 |
| | Wireless Telecommunication Services 0.6% | | | | | |
| | CCI Buyer, Inc., Term Loan, 3 mo. USD Term SOFR + 4.00%, 8.604%, 12/17/27 | United States | | | 3,242,827 | 3,242,324 |
| | Total Floating Rate Loans (Cost $510,544,778) | | | | | 506,906,616 |
| | Asset-Backed Securities 0.4% | | | | | |
| a,d | BlueMountain CLO Ltd., Series 2018-3A, Class C, 3 mo. USD Term SOFR + 2.46%, 7.746%, 10/25/30 | United States | | | 1,000,000 | 1,001,883 |
| a,d | LCM XVIII LP, Series 18A, Class CR, 3 mo. USD Term SOFR + 2.11%, 7.394%, 4/20/31 | United States | | | 1,000,000 | 1,001,188 |
| | Total Asset-Backed Securities (Cost $1,996,875) | | | | | 2,003,071 |
| |
| | | | | | Shares | |
| | Common Stocks 0.1% | | | | | |
| | Health Care Providers & Services 0.1% | | | | | |
| e | Endo, Inc. | United States | | | 14,185 | 361,434 |
| | Total Common Stocks (Cost $238,946) | | | | | 361,434 |
| | Total Investments before Short-Term Investments (Cost $541,007,194) | | | | | 537,656,289 |
| |
| 91 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin Senior Loan ETF (continued)
| | | Country | | | Principal Amount* | Value |
| | Short-Term Investments 10.0% | | | | | |
| | U.S. Government & Agency Securities 10.0% | | | | | |
| f | Federal Home Loan Bank Discount Notes, 10/01/24 | United States | | | 58,780,000 | $ 58,772,424 |
| | Total Short-Term Investments (Cost $58,780,000) | | | | | 58,772,424 |
| | Total Investments (Cost $599,787,194) 101.7% | | | | | 596,428,713 |
| | Other Assets, less Liabilities (1.7)% | | | | | (9,911,993) |
| | Net Assets 100.0% | | | | | $ 586,516,720 |
| *The principal amount is stated in U.S. dollars unless otherwise indicated. |
| †Rounds to less than 0.1% of net assets. |
| aSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At September 30, 2024, the value of was $30,239,117, representing 5.2% of net assets. |
| bThe coupon rate shown represents the rate at period end. |
| cA portion or all of the security represents an unsettled loan commitment. The coupon rate is to-be determined (TBD) at the time of settlement and will be based upon a reference index/floor plus a spread. |
| dThe coupon rate shown represents the rate inclusive of any caps or floors, if applicable, in effect at period end. |
| eNon-income producing. |
| fThe security was issued on a discount basis with no stated coupon rate. |
See Abbreviations on page 171.
| franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Semi-Annual Report | 92 |
Franklin Templeton ETF Trust
Consolidated Financial Highlights
Franklin Systematic Style Premia ETF
| | Six Months Ended
September 30, 2024
(unaudited) | Year Ended March 31, | Period Ended March 31,
2020a |
| | 2024 | 2023 | 2022 | 2021 |
| Per share operating performance | | | | | | |
| (for a share outstanding throughout the period) | | | | | | |
| Net asset value, beginning of period | $23.92 | $21.45 | $21.25 | $19.55 | $23.16 | $25.00 |
| Income from investment operationsb: | | | | | | |
| Net investment incomec | 0.28 | 0.48 | 0.26 | 0.14 | 0.23 | 0.11 |
| Net realized and unrealized gains (losses) | (0.13) | 2.25 | 0.40 | 1.82 | (2.25) | (1.94) |
| Total from investment operations | 0.15 | 2.73 | 0.66 | 1.96 | (2.02) | (1.83) |
| Less distributions from: | | | | | | |
| Net investment income | — | (0.26) | (0.46) | (0.26) | (0.05) | (0.01) |
| Net realized gains | — | — | — | — | (1.54) | — |
| Total distributions | — | (0.26) | (0.46) | (0.26) | (1.59) | (0.01) |
| Net asset value, end of period | $24.07 | $23.92 | $21.45 | $21.25 | $19.55 | $23.16 |
| Total returnd | 0.71% | 12.83% | 3.13% | 10.09% | (8.70)% | (7.34)% |
| Ratios to average net assetse | | | | | | |
| Expenses before waiver and payments by affiliates | 0.68% | 0.67% | 0.69% | 0.73% | 1.14% | 1.15% |
| Expenses net of waiver and payments by affiliates | 0.62% | 0.65% | 0.65% | 0.63% | 0.65% | 0.65% |
| Net investment income | 2.37% | 2.13% | 1.21% | 0.69% | 1.08% | 1.67% |
| Supplemental data | | | | | | |
| Net assets, end of period (000’s) | $205,770 | $184,154 | $91,146 | $55,258 | $46,927 | $50,948 |
| Portfolio turnover ratef | 58.20%g | 180.11%g | 188.38%g | 189.89%g | 171.16%g | 60.95%g |
| aFor the period December 18, 2019 (commencement of operations) to March 31, 2020. |
| bThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of Creation Unit Fund shares in relation to income earned and/or fluctuating fair value of the investments of the Fund. |
| cBased on average daily shares outstanding. |
| dTotal return is not annualized for periods less than one year. Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. |
| eRatios are annualized for periods less than one year. |
| fPortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash ("Cash creations"). |
| gPortfolio turnover rate excluding cash creations was as follows: | 58.20% | 180.11% | 188.38% | 189.89% | 171.16% | 60.95% |
| 93 | Semi-Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
Franklin Templeton ETF Trust
Consolidated Schedule of Investments, September 30, 2024 (unaudited)
Franklin Systematic Style Premia ETF
| | | Country | Shares | | Value |
| | Common Stocks 50.9% | | | | |
| | Aerospace & Defense 0.4% | | | | |
| | BAE Systems PLC | United Kingdom | 33,879 | | $ 562,364 |
| | Huntington Ingalls Industries, Inc. | United States | 441 | | 116,591 |
| | Textron, Inc. | United States | 2,689 | | 238,192 |
| | | | | | 917,147 |
| | Air Freight & Logistics 0.6% | | | | |
| | CH Robinson Worldwide, Inc. | United States | 1,445 | | 159,485 |
| | Deutsche Post AG | Germany | 7,247 | | 323,763 |
| | Expeditors International of Washington, Inc. | United States | 1,590 | | 208,926 |
| | FedEx Corp. | United States | 2,300 | | 629,464 |
| | | | | | 1,321,638 |
| | Automobiles 0.4% | | | | |
| | General Motors Co. | United States | 14,539 | | 651,929 |
| | Subaru Corp. | Japan | 8,200 | | 142,284 |
| | | | | | 794,213 |
| | Banks 1.6% | | | | |
| a | ABN AMRO Bank NV | Netherlands | 5,406 | | 97,771 |
| | AIB Group PLC | Ireland | 23,099 | | 132,636 |
| | Banco Santander SA | Spain | 39,116 | | 200,837 |
| | Barclays PLC | United Kingdom | 148,922 | | 448,553 |
| | BNP Paribas SA | France | 9,079 | | 623,663 |
| | DBS Group Holdings Ltd., Class A | Singapore | 7,600 | | 225,569 |
| | ING Groep NV | Netherlands | 38,374 | | 696,971 |
| | NatWest Group PLC | United Kingdom | 58,117 | | 268,088 |
| | UniCredit SpA | Italy | 15,614 | | 685,975 |
| | | | | | 3,380,063 |
| | Beverages 0.3% | | | | |
| | Asahi Group Holdings Ltd. | Japan | 15,600 | | 204,870 |
| | Coca-Cola HBC AG | Switzerland | 2,692 | | 96,195 |
| | Kirin Holdings Co. Ltd. | Japan | 8,400 | | 128,372 |
| | Molson Coors Beverage Co., Class B | United States | 2,280 | | 131,146 |
| | | | | | 560,583 |
| | Biotechnology 2.5% | | | | |
| | AbbVie, Inc. | United States | 7,333 | | 1,448,121 |
| | Gilead Sciences, Inc. | United States | 12,189 | | 1,021,926 |
| b | Incyte Corp. | United States | 1,999 | | 132,134 |
| b | Neurocrine Biosciences, Inc. | United States | 1,338 | | 154,164 |
| b | Regeneron Pharmaceuticals, Inc. | United States | 1,060 | | 1,114,314 |
| b | United Therapeutics Corp. | United States | 550 | | 197,093 |
| b | Vertex Pharmaceuticals, Inc. | United States | 2,506 | | 1,165,490 |
| | | | | | 5,233,242 |
| | Broadline Retail 0.6% | | | | |
| | eBay, Inc. | United States | 6,509 | | 423,801 |
| b | MercadoLibre, Inc. | Brazil | 213 | | 437,068 |
| | Next PLC | United Kingdom | 1,309 | | 171,755 |
| b | Rakuten Group, Inc. | Japan | 21,200 | | 137,183 |
| | | | | | 1,169,807 |
| | Building Products 0.8% | | | | |
| b | Builders FirstSource, Inc. | United States | 1,416 | | 274,506 |
| | Carlisle Cos., Inc. | United States | 599 | | 269,400 |
| | Cie de Saint-Gobain SA | France | 5,063 | | 461,764 |
| | Lennox International, Inc. | United States | 357 | | 215,732 |
| franklintempleton.com | Semi-Annual Report | 94 |
Franklin Templeton ETF Trust
Consolidated Schedule of Investments
Franklin Systematic Style Premia ETF (continued)
| | | Country | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | Building Products (continued) | | | | |
| | Masco Corp. | United States | 2,509 | | $ 210,605 |
| | Owens Corning | United States | 1,236 | | 218,179 |
| | | | | | 1,650,186 |
| | Capital Markets 1.5% | | | | |
| | 3i Group PLC | United Kingdom | 12,094 | | 536,146 |
| | Ameriprise Financial, Inc. | United States | 975 | | 458,065 |
| | Bank of New York Mellon Corp. | United States | 7,273 | | 522,638 |
| | Cboe Global Markets, Inc. | United States | 1,110 | | 227,406 |
| | Deutsche Bank AG | Germany | 14,550 | | 251,665 |
| | Partners Group Holding AG | Switzerland | 216 | | 325,197 |
| | SEI Investments Co. | United States | 1,534 | | 106,137 |
| | State Street Corp. | United States | 3,686 | | 326,100 |
| | T. Rowe Price Group, Inc. | United States | 2,713 | | 295,527 |
| | | | | | 3,048,881 |
| | Chemicals 1.3% | | | | |
| | Asahi Kasei Corp. | Japan | 17,100 | | 129,350 |
| | CF Industries Holdings, Inc. | United States | 2,627 | | 225,397 |
| | Givaudan SA | Switzerland | 113 | | 621,564 |
| | Linde PLC | United States | 701 | | 334,279 |
| | LyondellBasell Industries NV, Class A | United States | 2,775 | | 266,122 |
| | Mitsubishi Chemical Group Corp. | Japan | 18,900 | | 121,415 |
| | Mosaic Co. | United States | 4,059 | | 108,700 |
| | Nitto Denko Corp. | Japan | 10,000 | | 166,981 |
| | Shin-Etsu Chemical Co. Ltd. | Japan | 17,800 | | 743,782 |
| | | | | | 2,717,590 |
| | Commercial Services & Supplies 0.7% | | | | |
| | Cintas Corp. | United States | 3,804 | | 783,167 |
| b | Copart, Inc. | United States | 9,567 | | 501,311 |
| | Rollins, Inc. | United States | 3,576 | | 180,874 |
| | | | | | 1,465,352 |
| | Communications Equipment 0.6% | | | | |
| b | F5, Inc. | United States | 651 | | 143,350 |
| | Motorola Solutions, Inc. | United States | 2,029 | | 912,299 |
| | Nokia OYJ | Finland | 48,831 | | 213,850 |
| | | | | | 1,269,499 |
| | Construction & Engineering 0.1% | | | | |
| | ACS Actividades de Construccion y Servicios SA | Spain | 2,275 | | 105,318 |
| | Eiffage SA | France | 920 | | 88,959 |
| | | | | | 194,277 |
| | Construction Materials 0.1% | | | | |
| | Heidelberg Materials AG | Germany | 1,422 | | 154,893 |
| | Consumer Staples Distribution & Retail 2.1% | | | | |
| | Albertsons Cos., Inc., Class A | United States | 5,842 | | 107,960 |
| | Alimentation Couche-Tard, Inc. | Canada | 11,600 | | 642,016 |
| | Carrefour SA | France | 6,675 | | 114,054 |
| | George Weston Ltd. | Canada | 700 | | 117,621 |
| | Kroger Co. | United States | 8,446 | | 483,956 |
| | Loblaw Cos. Ltd. | Canada | 1,100 | | 146,629 |
| | Sysco Corp. | United States | 4,918 | | 383,899 |
| | Target Corp. | United States | 3,778 | | 588,839 |
| | Walmart, Inc. | United States | 20,697 | | 1,671,283 |
| | | | | | 4,256,257 |
| 95 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Consolidated Schedule of Investments
Franklin Systematic Style Premia ETF (continued)
| | | Country | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | Containers & Packaging 0.1% | | | | |
| | Packaging Corp. of America | United States | 1,231 | | $ 265,157 |
| | Diversified Telecommunication Services 1.2% | | | | |
| | AT&T, Inc. | United States | 68,211 | | 1,500,642 |
| | Deutsche Telekom AG | Germany | 20,560 | | 605,545 |
| | Koninklijke KPN NV | Netherlands | 41,736 | | 170,900 |
| | Telenor ASA | Norway | 7,059 | | 90,477 |
| | Telia Co. AB | Sweden | 29,313 | | 94,967 |
| | | | | | 2,462,531 |
| | Electric Utilities 0.9% | | | | |
| | CLP Holdings Ltd. | Hong Kong | 20,000 | | 177,277 |
| | Enel SpA | Italy | 79,561 | | 637,098 |
| | FirstEnergy Corp. | United States | 6,012 | | 266,632 |
| | Kansai Electric Power Co., Inc. | Japan | 10,100 | | 167,345 |
| | NRG Energy, Inc. | United States | 2,533 | | 230,756 |
| | Power Assets Holdings Ltd. | Hong Kong | 17,000 | | 108,993 |
| | SSE PLC | United Kingdom | 8,573 | | 216,533 |
| | | | | | 1,804,634 |
| | Electrical Equipment 0.2% | | | | |
| | Mitsubishi Electric Corp. | Japan | 21,600 | | 347,844 |
| | Electronic Equipment, Instruments & Components 0.6% | | | | |
| | Amphenol Corp., Class A | United States | 6,157 | | 401,190 |
| | Jabil, Inc. | United States | 1,505 | | 180,344 |
| | TDK Corp. | Japan | 8,000 | | 101,958 |
| | TE Connectivity PLC | Ireland | 3,369 | | 508,685 |
| | | | | | 1,192,177 |
| | Entertainment 0.6% | | | | |
| | Electronic Arts, Inc. | United States | 3,117 | | 447,102 |
| | Konami Group Corp. | Japan | 1,200 | | 122,022 |
| b | Live Nation Entertainment, Inc. | United States | 1,788 | | 195,768 |
| b | Sea Ltd., ADR | Singapore | 4,000 | | 377,120 |
| | | | | | 1,142,012 |
| | Financial Services 2.9% | | | | |
| | Corebridge Financial, Inc. | United States | 3,550 | | 103,518 |
| b | Corpay, Inc. | United States | 794 | | 248,332 |
| | Equitable Holdings, Inc. | United States | 4,671 | | 196,322 |
| | EXOR NV | Netherlands | 1,243 | | 133,384 |
| | Fidelity National Information Services, Inc. | United States | 6,796 | | 569,165 |
| | Investor AB, Class B | Sweden | 14,278 | | 440,245 |
| | Mastercard, Inc., Class A | United States | 3,740 | | 1,846,812 |
| | ORIX Corp. | Japan | 11,200 | | 259,799 |
| b | PayPal Holdings, Inc. | United States | 11,071 | | 863,870 |
| | Visa, Inc., Class A | United States | 4,758 | | 1,308,212 |
| | | | | | 5,969,659 |
| | Food Products 0.2% | | | | |
| | Archer-Daniels-Midland Co. | United States | 1,374 | | 82,083 |
| | Bunge Global SA | United States | 1,997 | | 192,990 |
| | Kellanova | United States | 2,875 | | 232,041 |
| | | | | | 507,114 |
| | Gas Utilities 0.2% | | | | |
| | Hong Kong & China Gas Co. Ltd. | Hong Kong | 156,000 | | 128,536 |
| | Osaka Gas Co. Ltd. | Japan | 3,800 | | 85,649 |
| franklintempleton.com | Semi-Annual Report | 96 |
Franklin Templeton ETF Trust
Consolidated Schedule of Investments
Franklin Systematic Style Premia ETF (continued)
| | | Country | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | Gas Utilities (continued) | | | | |
| | Tokyo Gas Co. Ltd. | Japan | 5,400 | | $ 125,977 |
| | | | | | 340,162 |
| | Ground Transportation 1.0% | | | | |
| | CSX Corp. | United States | 21,742 | | 750,751 |
| b | Uber Technologies, Inc. | United States | 17,359 | | 1,304,703 |
| | | | | | 2,055,454 |
| | Health Care Equipment & Supplies 0.5% | | | | |
| b | Hologic, Inc. | United States | 2,848 | | 231,998 |
| | Hoya Corp. | Japan | 3,100 | | 428,786 |
| b | IDEXX Laboratories, Inc. | United States | 819 | | 413,775 |
| | | | | | 1,074,559 |
| | Health Care Providers & Services 1.5% | | | | |
| | Cardinal Health, Inc. | United States | 2,354 | | 260,164 |
| | Cencora, Inc. | United States | 329 | | 74,051 |
| b | Centene Corp. | United States | 5,216 | | 392,661 |
| | Cigna Group | United States | 1,721 | | 596,223 |
| | Elevance Health, Inc. | United States | 2,447 | | 1,272,440 |
| b | Molina Healthcare, Inc. | United States | 660 | | 227,410 |
| | Universal Health Services, Inc., Class B | United States | 747 | | 171,070 |
| | | | | | 2,994,019 |
| | Health Care REITs 0.1% | | | | |
| | Ventas, Inc. | United States | 4,343 | | 278,517 |
| | Health Care Technology 0.1% | | | | |
| b | Veeva Systems, Inc., Class A | United States | 1,419 | | 297,806 |
| | Hotels, Restaurants & Leisure 1.4% | | | | |
| | Booking Holdings, Inc. | United States | 359 | | 1,512,151 |
| | Domino’s Pizza, Inc. | United States | 374 | | 160,873 |
| b | Expedia Group, Inc. | United States | 1,563 | | 231,355 |
| | InterContinental Hotels Group PLC | United Kingdom | 910 | | 99,310 |
| | Las Vegas Sands Corp. | United States | 4,577 | | 230,406 |
| | Royal Caribbean Cruises Ltd. | United States | 2,179 | | 386,468 |
| | Sodexo SA | France | 1,112 | | 91,403 |
| | Wynn Resorts Ltd. | United States | 1,114 | | 106,810 |
| | | | | | 2,818,776 |
| | Household Durables 0.2% | | | | |
| | PulteGroup, Inc. | United States | 2,149 | | 308,446 |
| | Household Products 0.9% | | | | |
| | Colgate-Palmolive Co. | United States | 9,710 | | 1,007,995 |
| | Kimberly-Clark Corp. | United States | 3,316 | | 471,800 |
| | Procter & Gamble Co. | United States | 1,563 | | 270,712 |
| | | | | | 1,750,507 |
| | Independent Power Producers & Energy Traders 0.2% | | | | |
| | Vistra Corp. | United States | 4,033 | | 478,072 |
| | Industrial Conglomerates 0.2% | | | | |
| | 3M Co. | United States | 637 | | 87,078 |
| | CK Hutchison Holdings Ltd., Class A | United Kingdom | 29,000 | | 166,887 |
| | DCC PLC | Ireland | 974 | | 66,565 |
| | | | | | 320,530 |
| 97 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Consolidated Schedule of Investments
Franklin Systematic Style Premia ETF (continued)
| | | Country | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | Insurance 1.9% | | | | |
| | Aegon Ltd. | Netherlands | 19,699 | | $ 126,810 |
| | Aflac, Inc. | United States | 6,647 | | 743,135 |
| | Ageas SA | Belgium | 2,015 | | 107,764 |
| | American International Group, Inc. | United States | 6,681 | | 489,250 |
| | Assurant, Inc. | United States | 788 | | 156,702 |
| | Hartford Financial Services Group, Inc. | United States | 2,468 | | 290,261 |
| | Loews Corp. | United States | 2,070 | | 163,633 |
| | Manulife Financial Corp. | Canada | 17,100 | | 505,931 |
| | MetLife, Inc. | United States | 6,085 | | 501,891 |
| | MS&AD Insurance Group Holdings, Inc. | Japan | 15,900 | | 370,155 |
| | NN Group NV | Netherlands | 2,880 | | 143,933 |
| | Sompo Holdings, Inc. | Japan | 12,500 | | 279,729 |
| | | | | | 3,879,194 |
| | Interactive Media & Services 0.8% | | | | |
| | Alphabet, Inc., Class C | United States | 1,536 | | 256,804 |
| a | Auto Trader Group PLC | United Kingdom | 11,115 | | 129,381 |
| b | Match Group, Inc. | United States | 3,793 | | 143,527 |
| | Meta Platforms, Inc., Class A | United States | 1,875 | | 1,073,325 |
| | | | | | 1,603,037 |
| | IT Services 0.8% | | | | |
| b | CGI, Inc., Class A | Canada | 2,100 | | 241,905 |
| | Cognizant Technology Solutions Corp., Class A | United States | 5,563 | | 429,352 |
| b | GoDaddy, Inc., Class A | United States | 1,833 | | 287,378 |
| | NEC Corp. | Japan | 3,000 | | 288,381 |
| b | Twilio, Inc., Class A | United States | 2,217 | | 144,593 |
| b | VeriSign, Inc. | United States | 1,108 | | 210,476 |
| | | | | | 1,602,085 |
| | Life Sciences Tools & Services 1.4% | | | | |
| | Agilent Technologies, Inc. | United States | 3,586 | | 532,449 |
| b | Avantor, Inc. | United States | 7,500 | | 194,025 |
| b | IQVIA Holdings, Inc. | United States | 2,067 | | 489,817 |
| b | Mettler-Toledo International, Inc. | United States | 262 | | 392,922 |
| | Thermo Fisher Scientific, Inc. | United States | 1,651 | | 1,021,259 |
| b | Waters Corp. | United States | 761 | | 273,876 |
| | | | | | 2,904,348 |
| | Machinery 1.1% | | | | |
| | Cummins, Inc. | United States | 1,672 | | 541,377 |
| | GEA Group AG | Germany | 1,902 | | 93,315 |
| | Ingersoll Rand, Inc. | United States | 3,865 | | 379,388 |
| | Makita Corp. | Japan | 2,800 | | 94,762 |
| | PACCAR, Inc. | United States | 3,032 | | 299,198 |
| | Parker-Hannifin Corp. | United States | 797 | | 503,561 |
| | Snap-on, Inc. | United States | 579 | | 167,742 |
| | Techtronic Industries Co. Ltd. | Hong Kong | 15,000 | | 228,066 |
| | | | | | 2,307,409 |
| | Media 0.5% | | | | |
| | Comcast Corp., Class A | United States | 23,265 | | 971,779 |
| | Fox Corp., Class A | United States | 3,001 | | 127,032 |
| | | | | | 1,098,811 |
| | Metals & Mining 0.8% | | | | |
| | ArcelorMittal SA | Luxembourg | 5,404 | | 141,973 |
| | Fortescue Ltd. | Australia | 18,959 | | 272,000 |
| | JFE Holdings, Inc. | Japan | 8,600 | | 115,346 |
| franklintempleton.com | Semi-Annual Report | 98 |
Franklin Templeton ETF Trust
Consolidated Schedule of Investments
Franklin Systematic Style Premia ETF (continued)
| | | Country | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | Metals & Mining (continued) | | | | |
| | Kinross Gold Corp. | Canada | 14,900 | | $ 139,741 |
| | Nippon Steel Corp. | Japan | 12,100 | | 270,524 |
| | Nucor Corp. | United States | 2,324 | | 349,390 |
| | Reliance, Inc. | United States | 628 | | 181,624 |
| | Steel Dynamics, Inc. | United States | 1,834 | | 231,231 |
| | | | | | 1,701,829 |
| | Multi-Utilities 0.2% | | | | |
| | Centrica PLC | United Kingdom | 77,960 | | 121,983 |
| | Engie SA | France | 22,372 | | 387,383 |
| | | | | | 509,366 |
| | Oil, Gas & Consumable Fuels 2.3% | | | | |
| | Cheniere Energy, Inc. | United States | 2,866 | | 515,421 |
| | Devon Energy Corp. | United States | 8,005 | | 313,156 |
| | ENEOS Holdings, Inc. | Japan | 40,700 | | 221,568 |
| | EOG Resources, Inc. | United States | 5,650 | | 694,555 |
| | HF Sinclair Corp. | United States | 2,026 | | 90,299 |
| | Idemitsu Kosan Co. Ltd. | Japan | 12,100 | | 86,960 |
| | Imperial Oil Ltd. | Canada | 2,300 | | 161,993 |
| | Inpex Corp. | Japan | 12,000 | | 162,584 |
| | Marathon Oil Corp. | United States | 8,087 | | 215,357 |
| | Marathon Petroleum Corp. | United States | 4,047 | | 659,297 |
| | Ovintiv, Inc. | United States | 3,424 | | 131,173 |
| | Phillips 66 | United States | 4,269 | | 561,160 |
| | Suncor Energy, Inc. | Canada | 10,400 | | 384,299 |
| | Valero Energy Corp. | United States | 3,605 | | 486,783 |
| | | | | | 4,684,605 |
| | Paper & Forest Products 0.0%† | | | | |
| | Mondi PLC | Austria | 4,332 | | 82,570 |
| | Personal Care Products 0.7% | | | | |
| | Beiersdorf AG | Germany | 871 | | 131,377 |
| | Estee Lauder Cos., Inc., Class A | United States | 2,949 | | 293,986 |
| | Kao Corp. | Japan | 5,900 | | 293,226 |
| | L’Oreal SA | France | 1,196 | | 536,655 |
| | Shiseido Co. Ltd. | Japan | 4,400 | | 119,197 |
| | | | | | 1,374,441 |
| | Pharmaceuticals 0.9% | | | | |
| | GSK PLC | United Kingdom | 4,790 | | 97,436 |
| | Novartis AG | Switzerland | 11,384 | | 1,311,073 |
| | Otsuka Holdings Co. Ltd. | Japan | 2,700 | | 152,574 |
| | Royalty Pharma PLC, Class A | United States | 4,821 | | 136,386 |
| | Viatris, Inc. | United States | 13,528 | | 157,060 |
| | | | | | 1,854,529 |
| | Professional Services 0.7% | | | | |
| | Broadridge Financial Solutions, Inc. | United States | 1,315 | | 282,764 |
| | Leidos Holdings, Inc. | United States | 1,599 | | 260,637 |
| | Recruit Holdings Co. Ltd. | Japan | 13,400 | | 815,485 |
| | SS&C Technologies Holdings, Inc. | United States | 2,447 | | 181,592 |
| | | | | | 1,540,478 |
| | Real Estate Management & Development 0.2% | | | | |
| | CK Asset Holdings Ltd. | Hong Kong | 30,000 | | 132,089 |
| | Daiwa House Industry Co. Ltd. | Japan | 6,400 | | 201,566 |
| | | | | | 333,655 |
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Franklin Templeton ETF Trust
Consolidated Schedule of Investments
Franklin Systematic Style Premia ETF (continued)
| | | Country | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | Residential REITs 0.2% | | | | |
| | AvalonBay Communities, Inc. | United States | 1,377 | | $ 310,169 |
| | UDR, Inc. | United States | 3,883 | | 176,055 |
| | | | | | 486,224 |
| | Retail REITs 0.3% | | | | |
| | Regency Centers Corp. | United States | 2,119 | | 153,055 |
| | Simon Property Group, Inc. | United States | 3,205 | | 541,709 |
| | | | | | 694,764 |
| | Semiconductors & Semiconductor Equipment 2.1% | | | | |
| | Applied Materials, Inc. | United States | 5,879 | | 1,187,852 |
| | NVIDIA Corp. | United States | 10,617 | | 1,289,328 |
| | QUALCOMM, Inc. | United States | 7,158 | | 1,217,218 |
| | Renesas Electronics Corp. | Japan | 17,100 | | 248,538 |
| | STMicroelectronics NV | Switzerland | 7,795 | | 231,845 |
| | Teradyne, Inc. | United States | 1,155 | | 154,689 |
| | | | | | 4,329,470 |
| | Software 6.2% | | | | |
| b | Adobe, Inc. | United States | 1,990 | | 1,030,382 |
| b | ANSYS, Inc. | United States | 952 | | 303,336 |
| b | AppLovin Corp., Class A | United States | 2,248 | | 293,476 |
| b | Autodesk, Inc. | United States | 2,335 | | 643,246 |
| b | Cadence Design Systems, Inc. | United States | 2,509 | | 680,014 |
| b | Check Point Software Technologies Ltd. | Israel | 665 | | 128,219 |
| | Constellation Software, Inc. | Canada | 100 | | 325,697 |
| b | DocuSign, Inc. | United States | 2,628 | | 163,172 |
| b | Dynatrace, Inc. | United States | 2,976 | | 159,127 |
| b | Fair Isaac Corp. | United States | 298 | | 579,169 |
| b | Fortinet, Inc. | United States | 7,199 | | 558,282 |
| | Gen Digital, Inc. | United States | 7,156 | | 196,289 |
| | Intuit, Inc. | United States | 2,610 | | 1,620,810 |
| b | Manhattan Associates, Inc. | United States | 697 | | 196,122 |
| | Microsoft Corp. | United States | 3,338 | | 1,436,341 |
| b | PTC, Inc. | United States | 1,301 | | 235,039 |
| | Sage Group PLC | United Kingdom | 10,241 | | 140,733 |
| | Salesforce, Inc. | United States | 5,646 | | 1,545,367 |
| b | ServiceNow, Inc. | United States | 1,846 | | 1,651,044 |
| b | Synopsys, Inc. | United States | 851 | | 430,938 |
| b | Tyler Technologies, Inc. | United States | 447 | | 260,923 |
| b | Zoom Video Communications, Inc., Class A | United States | 3,289 | | 229,375 |
| | | | | | 12,807,101 |
| | Specialized REITs 0.2% | | | | |
| | Gaming & Leisure Properties, Inc. | United States | 2,880 | | 148,176 |
| | VICI Properties, Inc. | United States | 9,721 | | 323,807 |
| | | | | | 471,983 |
| | Specialty Retail 1.2% | | | | |
| | Best Buy Co., Inc. | United States | 2,432 | | 251,226 |
| | Dick’s Sporting Goods, Inc. | United States | 472 | | 98,506 |
| | Home Depot, Inc. | United States | 1,683 | | 681,952 |
| | TJX Cos., Inc. | United States | 11,065 | | 1,300,580 |
| | Williams-Sonoma, Inc. | United States | 1,300 | | 201,396 |
| | | | | | 2,533,660 |
| | Technology Hardware, Storage & Peripherals 0.5% | | | | |
| | HP, Inc. | United States | 10,837 | | 388,723 |
| | NetApp, Inc. | United States | 2,597 | | 320,756 |
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Franklin Templeton ETF Trust
Consolidated Schedule of Investments
Franklin Systematic Style Premia ETF (continued)
| | | Country | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | Technology Hardware, Storage & Peripherals (continued) | | | | |
| | Seagate Technology Holdings PLC | United States | 2,200 | | $ 240,966 |
| | | | | | 950,445 |
| | Textiles, Apparel & Luxury Goods 0.5% | | | | |
| | Asics Corp. | Japan | 8,300 | | 174,135 |
| b | Deckers Outdoor Corp. | United States | 1,812 | | 288,923 |
| b | Lululemon Athletica, Inc. | United States | 1,239 | | 336,203 |
| | Pandora AS | Denmark | 927 | | 153,008 |
| | | | | | 952,269 |
| | Trading Companies & Distributors 0.3% | | | | |
| | AerCap Holdings NV | Ireland | 1,019 | | 96,520 |
| | Marubeni Corp. | Japan | 18,100 | | 296,099 |
| | Toyota Tsusho Corp. | Japan | 8,600 | | 155,418 |
| | | | | | 548,037 |
| | Transportation Infrastructure 0.1% | | | | |
| a | Aena SME SA | Spain | 801 | | 176,646 |
| | Water Utilities 0.1% | | | | |
| | American Water Works Co., Inc. | United States | 1,853 | | 270,983 |
| | Wireless Telecommunication Services 0.3% | | | | |
| | KDDI Corp. | Japan | 9,000 | | 289,052 |
| | Vodafone Group PLC | United Kingdom | 316,849 | | 318,924 |
| | | | | | 607,976 |
| | Total Common Stocks (Cost $85,091,831) | | | | 104,847,519 |
| | Warrant 0.0% | | | | |
| | Software 0.0% | | | | |
| b,c | Constellation Software, Inc. | Canada | 100 | | — |
| | Total Investments before Short-Term Investments
(Cost $85,091,831) | | | | 104,847,519 |
| | Short-Term Investments 41.6% | | | | |
| | Money Market Funds 41.6% | | | | |
| d | State Street Institutional U.S. Government Money Market Fund, 4.94% | United States | 85,551,218 | | 85,551,218 |
| | Total Short-Term Investments (Cost $85,551,218) | | | | 85,551,218 |
| | Total Investments (Cost $170,643,049) 92.5% | | | | 190,398,737 |
| | Other Assets, less Liabilities 7.5% | | | | 15,371,473 |
| | Net Assets 100.0% | | | | $ 205,770,210 |
| †Rounds to less than 0.1% of net assets. |
| aSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At September 30, 2024, the value of was $403,798, representing 0.2% of net assets. |
| bNon-income producing. |
| cFair valued using significant unobservable inputs. See Note 10 regarding fair value measurements. |
| dRate shown is one-day yield as of the end of the reporting period. |
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Franklin Templeton ETF Trust
Consolidated Schedule of Investments
Franklin Systematic Style Premia ETF (continued)
At September 30, 2024, the Fund had the following centrally cleared credit default swap contracts outstanding. See Note 1(c).
Centrally Cleared Credit Default Swap Contracts
| Underlying Instrument | Financing Rate | Payment
Frequency | Counterparty | Maturity
Date | Notional
Value
(000)s | Value/Unrealized
Appreciation
(Depreciation) |
| OTC Swap Contracts | | | | | | |
| Equity Contracts - Short | | | | | | |
| MSFTLSSP | 1-month USD LIBOR | At Maturity | MSCS | October 10, 2024 | 82,774 | (3,053,159) |
At September 30, 2024, the Fund had the following forward exchange contracts outstanding. See Note 1(c).
Forward Exchange Contracts
| Currency | Counterpartya | Type | Quantity | Contract
Amount | Settlement
Date | Unrealized
Appreciation | Unrealized
Depreciation |
| OTC Forward Exchange Contracts |
| Australian Dollar | MSCO | Sell | 5,630,311 | $ 3,767,478 | 12/18/24 | $ — | $ (141,555) |
| Brazilian Real | MSCO | Buy | 6,822,499 | 1,196,720 | 12/18/24 | 45,011 | — |
| Canadian Dollar | MSCO | Sell | 30,422,259 | 22,460,123 | 12/18/24 | — | (102,844) |
| Czech Koruna | MSCO | Sell | 362,741,027 | 15,926,459 | 12/18/24 | — | (159,307) |
| Euro | MSCO | Sell | 9,295,252 | 10,267,312 | 12/18/24 | — | (138,920) |
| Great British Pound | MSCO | Buy | 10,087,660 | 13,181,374 | 12/18/24 | 347,025 | — |
| Hungarian Forint | MSCO | Sell | 2,896,009,496 | 8,007,498 | 12/18/24 | — | (109,017) |
| Israeli Shekel | MSCO | Sell | 13,747,899 | 3,705,116 | 12/18/24 | 441 | — |
| Japanese Yen | MSCO | Buy | 155,199,068 | 1,102,304 | 12/18/24 | — | (6,180) |
| Mexican Peso | MSCO | Sell | 4,503,949 | 226,202 | 12/18/24 | — | (879) |
| Norwegian Krone | MSCO | Buy | 87,494,017 | 8,102,828 | 12/18/24 | 207,400 | — |
| Polish Zloty | MSCO | Sell | 7,414,498 | 1,893,696 | 12/18/24 | — | (34,492) |
| South African Rand | MSCO | Buy | 295,232,061 | 16,357,489 | 12/18/24 | 663,458 | — |
| South Korean Won | MSCO | Buy | 2,895,078,330 | 2,181,631 | 12/18/24 | 41,865 | — |
| Swedish Krona | MSCO | Buy | 134,877,752 | 13,085,290 | 12/18/24 | 270,865 | — |
| Swiss Franc | MSCO | Sell | 529,870 | 628,128 | 12/18/24 | — | (5,357) |
| Total Forward Exchange Contracts | $1,576,065 | $(698,551) |
| Net unrealized appreciation (depreciation) | | $877,514 |
| aMay be comprised of multiple contracts with the same counterparty, currency and settlement date. |
At September 30, 2024, the Fund had the following futures contracts outstanding. See Note 1(c).
Futures Contracts
| Description | Type | Number of
Contracts | Notional
Amount* | Expiration
Date | Value/Unrealized
Appreciation
(Depreciation) |
| Commodity Contracts | | | | | |
| Cocoa, December | Long | 9 | $ 694,980 | 12/13/24 | $ 55,852 |
| Low Sulphur Gasoil, November | Long | 4 | 264,100 | 11/12/24 | 7,493 |
| NY Harbor ULSD, October | Long | 8 | 723,878 | 10/31/24 | 13,072 |
| Platinum, January | Long | 45 | 2,229,975 | 1/29/25 | 32,229 |
| Soybean Meal, December | Long | 44 | 1,503,040 | 12/13/24 | 68,269 |
| Soybean Oil, December | Long | 26 | 675,636 | 12/13/24 | 66,487 |
| Sugar No. 11, February | Long | 148 | 3,724,627 | 2/28/25 | 498,150 |
| Brent Crude, October | Short | 18 | 1,290,600 | 10/31/24 | (15,651) |
| Coffee ‘C’, December | Short | 6 | 608,062 | 12/18/24 | (77,003) |
| Copper, December | Short | 15 | 1,707,375 | 12/27/24 | (144,937) |
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Franklin Templeton ETF Trust
Consolidated Schedule of Investments
Franklin Systematic Style Premia ETF (continued)
Futures Contracts (continued)
| Description | Type | Number of
Contracts | Notional
Amount* | Expiration
Date | Value/Unrealized
Appreciation
(Depreciation) |
| Commodity Contracts (continued) | | | | | |
| Corn, December | Short | 9 | $ 191,138 | 12/13/24 | $ (10,827) |
| Cotton No. 2, December | Short | 8 | 294,440 | 12/06/24 | (7,751) |
| Gasoline Rbob, October | Short | 27 | 2,194,403 | 10/31/24 | (51,900) |
| Gold 100 Ounce, December | Short | 9 | 2,393,460 | 12/27/24 | (151,362) |
| Lean Hog, December | Short | 44 | 1,289,640 | 12/13/24 | (27,780) |
| Live Cattle, December | Short | 3 | 221,760 | 12/31/24 | (8,179) |
| Natural Gas, October | Short | 25 | 730,750 | 10/29/24 | (82,402) |
| Silver, December | Short | 12 | 1,887,480 | 12/27/24 | (171,457) |
| Soybean, November | Short | 15 | 792,750 | 11/14/24 | (38,725) |
| Wheat, December | Short | 13 | 379,600 | 12/13/24 | (18,401) |
| WTI Crude, October | Short | 5 | 340,850 | 10/22/24 | (4,022) |
| Interest rate contracts | | | | | |
| Canada 10 Yr. Bond | Long | 40 | 3,701,395 | 12/18/24 | 30,421 |
| Euro-BTP | Long | 128 | 17,352,528 | 12/06/24 | 348,419 |
| Long Gilt | Long | 160 | 21,124,641 | 12/27/24 | (88,162) |
| U.S. Treasury 10 Yr. Note | Long | 257 | 29,370,281 | 12/19/24 | (147,200) |
| Australian 10 Yr. Bond | Short | 228 | 18,410,986 | 12/16/24 | 182,778 |
| Euro-Bund | Short | 189 | 28,459,148 | 12/06/24 | (134,698) |
| Euro-OAT | Short | 60 | 8,493,589 | 12/06/24 | (35,559) |
| Index Contracts | | | | | |
| FTSE 100 Index | Long | 19 | 2,112,377 | 12/20/24 | (17,044) |
| FTSE/MIB Index | Long | 43 | 8,171,045 | 12/20/24 | 143,669 |
| Hang Seng Index | Long | 27 | 3,698,140 | 10/30/24 | 360,364 |
| IBEX 35 Index | Long | 75 | 9,953,550 | 10/18/24 | 386,648 |
| OMXS30 Index | Long | 58 | 1,502,412 | 10/18/24 | 50,365 |
| S&P/TSX 60 Index | Long | 8 | 1,710,678 | 12/19/24 | 41,171 |
| CAC 40 10 Euro | Short | 17 | 1,451,328 | 10/18/24 | (29,455) |
| DAX Index | Short | 8 | 4,353,266 | 12/20/24 | (172,252) |
| EURO STOXX 50 Index | Short | 25 | 1,403,433 | 12/20/24 | (47,855) |
| FTSE/JSE Africa Top40 Index | Short | 96 | 4,435,359 | 12/19/24 | (240,516) |
| Mex Bolsa Index | Short | 43 | 1,169,020 | 12/20/24 | (1,317) |
| Nikkei 225 Mini | Short | 2 | 530,621 | 12/12/24 | (28,420) |
| S+P 500 E-Mini | Short | 15 | 4,360,687 | 12/20/24 | (144,583) |
| SPI 200 Index | Short | 75 | 10,804,292 | 12/19/24 | (272,193) |
| Total Futures Contracts | | | | | $115,736 |
The following table represents the individual short positions and related values of the equity securities underlying the total return swap with Morgan Stanley Capital Services LLC as of September 30, 2024, expiration date 10/10/24:
| | | Country | Shares | | Value |
| | Reference Entity – Short 100.00% | | | | |
| | Automobiles & Components 3.59% | | | | |
| | Aptiv PLC | United States | (3,810) | | $ (274,358) |
| | Dr Ing Hc F Porsche AG | Germany | (1,621) | | (129,352) |
| | Ford Motor Co. | United States | (54,967) | | (580,451) |
| | Nissan Motor Co. Ltd. | Japan | (34,200) | | (96,235) |
| | Porsche Automobil Holding SE | Germany | (2,164) | | (99,214) |
| | Rivian Automotive, Inc. | United States | (10,580) | | (118,708) |
| | Tesla, Inc. | United States | (5,179) | | (1,354,982) |
| | Toyota Motor Corp. | Japan | (7,100) | | (126,201) |
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Franklin Templeton ETF Trust
Consolidated Schedule of Investments
Franklin Systematic Style Premia ETF (continued)
| | | Country | Shares | | Value |
| | Reference Entity – Short (continued) | | | | |
| | Automobiles & Components (continued) | | | | |
| | Volkswagen AG | Germany | (2,944) | | $ (312,662) |
| | | | | | (3,092,163) |
| | Banks 5.33% | | | | |
| | Australia & New Zealand Banking Group Ltd. | Australia | (43,382) | | (917,334) |
| | Bank of Montreal | Canada | (10,300) | | (930,465) |
| | FinecoBank Banca Fineco SpA | Italy | (8,753) | | (150,195) |
| | Hang Seng Bank Ltd. | Hong Kong | (11,100) | | (139,688) |
| | Huntington Bancshares, Inc. | United States | (19,979) | | (293,691) |
| | Regions Financial Corp. | United States | (12,717) | | (296,688) |
| | Resona Holdings, Inc. | Japan | (29,300) | | (204,346) |
| | Societe Generale SA | France | (5,342) | | (133,249) |
| | Sumitomo Mitsui Trust Holdings, Inc. | Japan | (9,300) | | (220,472) |
| | Svenska Handelsbanken AB, A | Sweden | (20,941) | | (215,368) |
| | United Overseas Bank Ltd. | Singapore | (3,800) | | (95,356) |
| | US Bancorp | United States | (21,663) | | (990,649) |
| | | | | | (4,587,501) |
| | Capital Goods 12.31% | | | | |
| | Airbus SE | France | (8,327) | | (1,219,473) |
| | Ashtead Group PLC | United Kingdom | (6,147) | | (477,072) |
| | Carrier Global Corp. | United States | (11,250) | | (905,513) |
| | CNH Industrial NV | United Kingdom | (11,900) | | (132,090) |
| | Daikin Industries Ltd. | Japan | (3,800) | | (533,312) |
| | Daimler Truck Holding AG | Germany | (7,059) | | (264,944) |
| | Deere & Co. | United States | (241) | | (100,577) |
| | Epiroc AB, A | Sweden | (9,458) | | (204,805) |
| | FANUC Corp. | Japan | (13,700) | | (401,307) |
| | Ferrovial SE | United States | (7,388) | | (318,107) |
| | Honeywell International, Inc | United States | (6,033) | | (1,247,081) |
| | IDEX Corp. | United States | (1,058) | | (226,941) |
| | Keppel Ltd. | Singapore | (20,600) | | (106,535) |
| | L3Harris Technologies, Inc. | United States | (2,655) | | (631,545) |
| | Melrose Industries PLC | United Kingdom | (15,560) | | (95,111) |
| | Nibe Industrier AB | Sweden | (22,407) | | (123,037) |
| | Nordson Corp. | United States | (759) | | (199,336) |
| | Northrop Grumman Corp. | United States | (1,950) | | (1,029,736) |
| | Sandvik AB | Sweden | (15,094) | | (337,868) |
| | SMC Corp. | Japan | (800) | | (355,984) |
| | Spirax-Sarco Engineering PLC | United Kingdom | (1,032) | | (104,028) |
| | The Boeing Co. | United States | (7,450) | | (1,132,698) |
| | Toro Co. | United States | (1,456) | | (126,279) |
| | Vestas Wind Systems A/S | Denmark | (14,167) | | (313,585) |
| | | | | | (10,586,964) |
| | Commercial & Professional Services 1.08% | | | | |
| | Dayforce, Inc. | United States | (2,138) | | (130,953) |
| | Equifax, Inc. | United States | (1,715) | | (503,970) |
| | Gfl Environmental, Inc. | Canada | (3,100) | | (123,798) |
| | Rentokil Initial PLC | United Kingdom | (35,300) | | (172,542) |
| | | | | | (931,263) |
| | Consumer Discretionary Distribution & Retail 1.66% | | | | |
| | CarMax, Inc. | United States | (2,170) | | (167,914) |
| | H & M AB, B | Sweden | (8,246) | | (140,571) |
| | Nitori Holdings Co. Ltd. | Japan | (1,100) | | (167,607) |
| | O’Reilly Automotive Inc. | United States | (828) | | (953,525) |
| | | | | | (1,429,617) |
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Franklin Templeton ETF Trust
Consolidated Schedule of Investments
Franklin Systematic Style Premia ETF (continued)
| | | Country | Shares | | Value |
| | Reference Entity – Short (continued) | | | | |
| | Consumer Durables & Apparel 2.62% | | | | |
| | Hermes International SCA | France | (453) | | $ (1,115,289) |
| | Kering SA | France | (1,092) | | (313,030) |
| | Nike, Inc. | United States | (8,078) | | (714,095) |
| | Taylor Wimpey PLC | United Kingdom | (49,698) | | (109,526) |
| | | | | | (2,251,940) |
| | Consumer Services 5.31% | | | | |
| | Darden Restaurants, Inc. | United States | (1,127) | | (184,974) |
| | DraftKings, Inc. | United States | (4,507) | | (176,674) |
| | Evolution AB | Sweden | (2,555) | | (251,553) |
| | Flutter Entertainment PLC | United Kingdom | (2,500) | | (593,200) |
| | Lottery Corp. Ltd. | Australia | (31,568) | | (112,130) |
| | McDonald’s Corp. | United States | (4,167) | | (1,268,893) |
| | Oriental Land Co. Ltd. | Japan | (15,100) | | (390,379) |
| | Restaurant Brands International, Inc. | Canada | (4,300) | | (310,624) |
| | Starbucks Corp. | United States | (13,162) | | (1,283,163) |
| | | | | | (4,571,590) |
| | Consumer Staples Distribution & Retail 0.92% | | | | |
| | Dollar General Corp. | United States | (2,220) | | (187,745) |
| | Dollar Tree, Inc. | United States | (2,844) | | (199,990) |
| | Woolworths Group Ltd. | Australia | (17,400) | | (401,973) |
| | | | | | (789,708) |
| | Energy 5.49% | | | | |
| | APA Corp. | United States | (5,310) | | (129,883) |
| | Cameco Corp. | Canada | (6,200) | | (296,519) |
| | Chevron Corp. | United States | (8,651) | | (1,274,033) |
| | EQT Corp. | United States | (8,093) | | (296,528) |
| | Equinor ASA | Norway | (12,300) | | (311,452) |
| | Hess Corp. | United States | (3,838) | | (521,200) |
| | Neste Oyj | Finland | (6,198) | | (120,568) |
| | Santos Ltd. | Australia | (46,246) | | (225,224) |
| | Schlumberger NV | United States | (20,292) | | (851,249) |
| | Tourmaline Oil Corp. | Canada | (4,800) | | (223,167) |
| | Woodside Energy Group Ltd. | Australia | (27,072) | | (473,286) |
| | | | | | (4,723,109) |
| | Equity Real Estate Investment Trusts (REITs) 1.62% | | | | |
| | Boston Properties, Inc. | United States | (2,114) | | (170,093) |
| | Kimco Realty Corp | United States | (9,398) | | (218,222) |
| | SBA Communications Corp. REIT | United States | (1,509) | | (363,216) |
| | Segro PLC | United Kingdom | (18,004) | | (211,068) |
| | Sun Communities, Inc. | United States | (1,775) | | (239,891) |
| | WP Carey, Inc. | United States | (3,083) | | (192,071) |
| | | | | | (1,394,561) |
| | Financial Services 10.81% | | | | |
| | Apollo Global Management, Inc. | United States | (5,647) | | (705,367) |
| | Ares Management Corp. | United States | (2,576) | | (401,444) |
| | ASX Ltd. | Australia | (2,699) | | (119,705) |
| | Blackstone, Inc. | United States | (8,683) | | (1,329,628) |
| | Brookfield Asset Management Ltd. | Canada | (4,800) | | (227,182) |
| | Brookfield Corp. | Canada | (16,700) | | (887,939) |
| | Capital One Financial Corp. | United States | (5,258) | | (787,280) |
| | Charles Schwab Corp. | United States | (19,261) | | (1,248,305) |
| | Discover Financial Services | United States | (3,415) | | (479,090) |
| | Edenred SE | France | (3,503) | | (133,002) |
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Franklin Templeton ETF Trust
Consolidated Schedule of Investments
Franklin Systematic Style Premia ETF (continued)
| | | Country | Shares | | Value |
| | Reference Entity – Short (continued) | | | | |
| | Financial Services (continued) | | | | |
| | EQT AB | Sweden | (5,227) | | $ (179,191) |
| | FactSet Research Systems, Inc. | United States | (531) | | (244,180) |
| | Julius Baer Group Ltd. | Switzerland | (2,896) | | (174,745) |
| | KKR & CO, Inc. | United States | (8,608) | | (1,124,033) |
| | London Stock Exchange Group PLC | United Kingdom | (6,673) | | (914,775) |
| | Toast, Inc. | United States | (5,047) | | (142,881) |
| | Tradeweb Markets, Inc. | United States | (1,605) | | (198,490) |
| | | | | | (9,297,237) |
| | Food, Beverage & Tobacco 3.19% | | | | |
| | Brown-Forman Corp. | United States | (2,506) | | (123,295) |
| | Chocoladefabriken Lindt & Spruengli AG | Switzerland | (1) | | (127,793) |
| | Heineken NV | Netherlands | (4,062) | | (361,040) |
| | Hormel Foods Corp. | United States | (4,281) | | (135,708) |
| | J M Smucker Co. | United States | (1,504) | | (182,134) |
| | Kraft Heinz Co. | United States | (12,787) | | (448,952) |
| | Lamb Weston Holdings, Inc. | United States | (2,035) | | (131,746) |
| | McCormick & Co, Inc. | United States | (3,544) | | (291,671) |
| | Mowi ASA | Norway | (6,546) | | (117,929) |
| | Pernod Ricard SA | France | (2,848) | | (431,006) |
| | The Hershey Co. | United States | (2,049) | | (392,957) |
| | | | | | (2,744,231) |
| | Health Care Equipment & Services 5.43% | | | | |
| | Coloplast A/S | Denmark | (1,787) | | (234,093) |
| | CVS Health Corp. | United States | (18,132) | | (1,140,140) |
| | Dexcom, Inc. | United States | (5,528) | | (370,597) |
| | Henry Schein, Inc. | United States | (1,807) | | (131,730) |
| | Humana, Inc. | United States | (1,772) | | (561,263) |
| | Insulet Corp. | United States | (969) | | (225,535) |
| | ResMed, Inc. | United States | (2,036) | | (497,028) |
| | Smith & Nephew PLC | United Kingdom | (12,334) | | (191,582) |
| | Sonic Healthcare Ltd. | Australia | (6,581) | | (124,321) |
| | UnitedHealth Group, Inc. | United States | (2,041) | | (1,193,332) |
| | | | | | (4,669,621) |
| | Household & Personal Products 1.36% | | | | |
| | Clorox Co. | United States | (1,750) | | (285,093) |
| | Haleon PLC | United Kingdom | (51,143) | | (269,532) |
| | Reckitt Benckiser Group PLC | United Kingdom | (9,971) | | (612,155) |
| | | | | | (1,166,780) |
| | Insurance 2.96% | | | | |
| | Aon PLC | United States | (2,700) | | (934,173) |
| | ASR Nederland NV | Netherlands | (2,297) | | (112,797) |
| | Cincinnati Financial Corp. | United States | (2,178) | | (296,469) |
| | Markel Corp. | United States | (181) | | (283,913) |
| | Medibank Pvt. Ltd. | Australia | (39,012) | | (98,786) |
| | Prudential PLC | Hong Kong | (40,227) | | (374,796) |
| | Willis Towers Watson PLC | United States | (1,500) | | (441,795) |
| | | | | | (2,542,729) |
| | Materials 2.98% | | | | |
| | Albemarle Corp. | United States | (1,627) | | (154,093) |
| | Anglo American PLC | United Kingdom | (18,210) | | (593,307) |
| | Boliden AB | Sweden | (3,931) | | (133,598) |
| | Croda International PLC | United Kingdom | (1,881) | | (106,398) |
| | First Quantum Minerals Ltd. | Canada | (9,800) | | (133,767) |
| franklintempleton.com | Semi-Annual Report | 106 |
Franklin Templeton ETF Trust
Consolidated Schedule of Investments
Franklin Systematic Style Premia ETF (continued)
| | | Country | Shares | | Value |
| | Reference Entity – Short (continued) | | | | |
| | Materials (continued) | | | | |
| | Ivanhoe Mines Ltd. | Canada | (9,500) | | $ (141,486) |
| | James Hardie Industries PLC | Australia | (6,246) | | (248,854) |
| | Martin Marietta Materials, Inc. | United States | (342) | | (184,081) |
| | Norsk Hydro ASA | Norway | (18,022) | | (117,139) |
| | Northern Star Resources Ltd. | Australia | (16,510) | | (182,917) |
| | Sika AG | Switzerland | (840) | | (278,921) |
| | South32 Ltd. | Australia | (64,279) | | (168,118) |
| | Svenska Cellulosa AB | Sweden | (8,430) | | (123,041) |
| | | | | | (2,565,720) |
| | Media & Entertainment 3.19% | | | | |
| | CAR Group Ltd. | Australia | (5,019) | | (130,433) |
| | Charter Communications, Inc., A | United States | (1,332) | | (431,675) |
| | Liberty Media Corp. | United States | (2,957) | | (228,961) |
| | Pinterest, Inc., A | United States | (8,419) | | (272,523) |
| | ROBLOX Corp. | United States | (6,684) | | (295,834) |
| | Roku, Inc. | United States | (1,764) | | (131,700) |
| | Snap, Inc. | United States | (14,845) | | (158,841) |
| | Take-Two Interactive Software, Inc. | United States | (2,352) | | (361,526) |
| | Universal Music Group NV | Netherlands | (11,658) | | (305,756) |
| | Warner Bros Discovery, Inc. | United States | (32,515) | | (268,249) |
| | WPP PLC | United Kingdom | (15,371) | | (157,356) |
| | | | | | (2,742,854) |
| | Pharmaceuticals, Biotechnology & Life Sciences 6.51% | | | | |
| | Amgen, Inc. | United States | (2,457) | | (791,670) |
| | Astellas Pharma, Inc. | Japan | (25,700) | | (295,917) |
| | Bayer AG | Germany | (14,104) | | (477,339) |
| | Eisai Co. Ltd. | Japan | (3,600) | | (134,522) |
| | Exact Sciences Corp. | United States | (2,620) | | (178,474) |
| | Illumina, Inc. | United States | (2,284) | | (297,856) |
| | Merck & Co. Inc. | United States | (5,894) | | (669,323) |
| | Merck KGaA | Germany | (1,829) | | (322,518) |
| | Moderna, Inc. | United States | (4,378) | | (292,582) |
| | Pfizer, Inc. | United States | (41,267) | | (1,194,267) |
| | Takeda Pharmaceutical Co. Ltd. | Japan | (22,500) | | (645,396) |
| | West Pharmaceutical Services, Inc. | United States | (1,013) | | (304,062) |
| | | | | | (5,603,926) |
| | Real Estate Management & Development 1.23% | | | | |
| | CoStar Group, Inc. | United States | (5,618) | | (423,822) |
| | FirstService Corp. | Canada | (600) | | (109,749) |
| | Vonovia SE | Germany | (10,589) | | (386,798) |
| | Zillow Group, Inc., C | United States | (2,190) | | (139,832) |
| | | | | | (1,060,201) |
| | Semiconductors & Semiconductor Equipment 7.98% | | | | |
| | Advanced Micro Devices, Inc. | United States | (8,785) | | (1,441,443) |
| | BE Semiconductor Industries NV | Netherlands | (1,090) | | (138,133) |
| | Broadcom, Inc. | United States | (8,618) | | (1,486,605) |
| | Enphase Energy, Inc. | United States | (2,027) | | (229,091) |
| | Entegris, Inc. | United States | (2,173) | | (244,528) |
| | Infineon Technologies AG | Germany | (18,437) | | (647,340) |
| | Intel Corp. | United States | (59,554) | | (1,397,137) |
| | Marvell Technology, Inc. | United States | (11,741) | | (846,761) |
| | ON Semiconductor Corp. | United States | (5,946) | | (431,739) |
| | | | | | (6,862,777) |
| 107 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Consolidated Schedule of Investments
Franklin Systematic Style Premia ETF (continued)
| | | Country | Shares | | Value |
| | Reference Entity – Short (continued) | | | | |
| | Software & Services 6.13% | | | | |
| | Accenture PLC | United States | (3,600) | | $ (1,272,528) |
| | Atlassian Corp. | United States | (2,231) | | (354,305) |
| | Cloudflare, Inc., A | United States | (4,242) | | (343,135) |
| | Dassault Systemes SE | France | (9,223) | | (366,751) |
| | MongoDB, Inc. | United States | (1,018) | | (275,216) |
| | NTT Data Group Corp. | Japan | (8,900) | | (160,186) |
| | Obic Co. Ltd. | Japan | (4,000) | | (141,107) |
| | Okta, Inc., A | United States | (2,310) | | (171,726) |
| | Samsara, Inc. | United States | (2,795) | | (134,496) |
| | Shopify, Inc., A | Canada | (16,900) | | (1,355,428) |
| | Snowflake, Inc. | United States | (4,201) | | (482,527) |
| | Zscaler, Inc. | United States | (1,262) | | (215,726) |
| | | | | | (5,273,131) |
| | Technology Hardware & Equipment 3.04% | | | | |
| | Hexagon AB | Sweden | (29,497) | | (317,767) |
| | Keyence Corp. | Japan | (2,700) | | (1,290,352) |
| | Kyocera Corp. | Japan | (18,500) | | (214,695) |
| | Super Micro Computer, Inc. | United States | (702) | | (292,313) |
| | Teledyne Technologies, Inc. | United States | (666) | | (291,482) |
| | Trimble, Inc. | United States | (3,439) | | (213,527) |
| | | | | | (2,620,136) |
| | Telecommunication Services 1.98% | | | | |
| | Cellnex Telecom SA | Spain | (7,408) | | (301,192) |
| | Nippon Telegraph & Telephone Corp. | Japan | (436,900) | | (448,385) |
| | SoftBank Group Corp. | Japan | (14,200) | | (836,573) |
| | TELUS Corp. | Canada | (6,800) | | (114,210) |
| | | | | | (1,700,360) |
| | Transportation 1.41% | | | | |
| | DSV A/S | Denmark | (2,420) | | (500,883) |
| | Knight-Swift Transportation Holdings, Inc. | United States | (2,226) | | (120,093) |
| | Kuehne + Nagel International AG | Switzerland | (684) | | (187,146) |
| | Transurban Group | Australia | (44,128) | | (401,959) |
| | | | | | (1,210,081) |
| | Utilities 1.87% | | | | |
| | AES Corp/The | United States | (10,030) | | (201,202) |
| | EDP - Energias de Portugal SA | Portugal | (44,296) | | (202,789) |
| | National Grid PLC | United Kingdom | (66,905) | | (924,353) |
| | Severn Trent PLC | United Kingdom | (3,862) | | (136,863) |
| | Snam SpA | Italy | (28,562) | | (145,708) |
| | | | | | (1,610,915) |
| | Total Value of Reference Entity — Morgan Stanley Capital Services LLC | | | | $ (86,029,115) |
See Note 9 regarding other derivative information.
See Abbreviations on page 171.
| franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Semi-Annual Report | 108 |
Franklin Templeton ETF Trust
Financial Highlights
Franklin U.S. Core Bond ETF
| | Six Months Ended
September 30, 2024
(unaudited) | Year Ended March 31, | Period Ended March 31,
2020a |
| | 2024 | 2023 | 2022 | 2021 |
| Per share operating performance | | | | | | |
| (for a share outstanding throughout the period) | | | | | | |
| Net asset value, beginning of period | $21.33 | $21.74 | $23.43 | $25.14 | $25.44 | $25.00 |
| Income from investment operationsb: | | | | | | |
| Net investment incomec | 0.43 | 0.76 | 0.55 | 0.45 | 0.51 | 0.29 |
| Net realized and unrealized gains (losses) | 0.70 | (0.41) | (1.70) | (1.61) | 0.03 | 0.49 |
| Total from investment operations | 1.13 | 0.35 | (1.15) | (1.16) | 0.54 | 0.78 |
| Less distributions from: | | | | | | |
| Net investment income | (0.46) | (0.76) | (0.54) | (0.50) | (0.65) | (0.31) |
| Net realized gains | — | — | — | (0.05) | (0.19) | (0.03) |
| Total distributions | (0.46) | (0.76) | (0.54) | (0.55) | (0.84) | (0.34) |
| Net asset value, end of period | $22.00 | $21.33 | $21.74 | $23.43 | $25.14 | $25.44 |
| Total returnd | 5.39% | 1.69% | (4.88)% | (4.72)% | 2.07% | 3.12% |
| Ratios to average net assetse | | | | | | |
| Expenses before waiver and payments by affiliates | 0.15% | 0.15% | 0.15% | 0.16% | 0.17% | 0.19% |
| Expenses net of waiver and payments by affiliates | 0.15% | 0.15% | 0.14% | 0.15% | 0.15% | 0.15% |
| Net investment income | 3.98% | 3.60% | 2.51% | 1.80% | 1.95% | 2.14% |
| Supplemental data | | | | | | |
| Net assets, end of period (000’s) | $2,372,441 | $1,776,612 | $1,511,691 | $1,509,961 | $1,460,597 | $853,532 |
| Portfolio turnover ratef | 9.93%g | 37.74%g | 68.70%g | 69.88%g | 90.99%g | 126.68%g |
| aFor the period September 17, 2019 (commencement of operations) to March 31, 2020. |
| bThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of Creation Unit Fund shares in relation to income earned and/or fluctuating fair value of the investments of the Fund. |
| cBased on average daily shares outstanding. |
| dTotal return is not annualized for periods less than one year. Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. |
| eRatios are annualized for periods less than one year. |
| fPortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash ("Cash creations"). |
| gPortfolio turnover rate excluding cash creations was as follows: | 9.93% | 37.74% | 68.70% | 69.88% | 90.99% | 126.68% |
| 109 | Semi-Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments, September 30, 2024 (unaudited)
Franklin U.S. Core Bond ETF
| | | Country | | | Principal Amount* | Value |
| | Corporate Bonds & Notes 29.1% | | | | | |
| | Aerospace & Defense 0.5% | | | | | |
| | Boeing Co., 3.50%, 3/01/39 | United States | | | 5,000,000 | $ 3,810,706 |
| | Howmet Aerospace, Inc., 4.85%, 10/15/31 | United States | | | 1,350,000 | 1,378,873 |
| | Northrop Grumman Corp., 4.03%, 10/15/47 | United States | | | 7,400,000 | 6,372,826 |
| | | | | | | 11,562,405 |
| | Agriculture 0.7% | | | | | |
| | Altria Group, Inc., 3.40%, 5/06/30 | United States | | | 5,000,000 | 4,727,053 |
| a | Cargill, Inc., 2.125%, 11/10/31 | United States | | | 5,000,000 | 4,344,697 |
| a | Imperial Brands Finance PLC, 3.50%, 7/26/26 | United Kingdom | | | 4,000,000 | 3,923,467 |
| | Philip Morris International, Inc., 5.375%, 2/15/33 | United States | | | 3,600,000 | 3,766,381 |
| | | | | | | 16,761,598 |
| | Airlines 0.4% | | | | | |
| | American Airlines Pass-Through Trust, Series 2016-3, Class A, 3.25%, 4/15/30 | United States | | | 3,821,629 | 3,532,431 |
| a | Delta Air Lines, Inc./SkyMiles IP Ltd., first lien, 4.50%, 10/20/25 | United States | | | 3,208,600 | 3,189,598 |
| | United Airlines Pass-Through Trust, | | | | | |
| | Series 2020-1, Class A, 5.875%, 4/15/29 | United States | | | 50,295 | 51,376 |
| | Series 2019-2, Class A, 2.90%, 11/01/29 | United States | | | 802,083 | 735,838 |
| | Series 2020-1, Class B, 4.875%, 7/15/27 | United States | | | 1,084,800 | 1,075,535 |
| | | | | | | 8,584,778 |
| | Apparel 0.1% | | | | | |
| | Tapestry, Inc., 7.85%, 11/27/33 | United States | | | 2,500,000 | 2,711,799 |
| | Auto Manufacturers 0.1% | | | | | |
| | Hyundai Capital America, | | | | | |
| | a 5.30%, 1/08/29 | United States | | | 2,600,000 | 2,672,615 |
| | a 5.35%, 3/19/29 | United States | | | 885,000 | 912,037 |
| | | | | | | 3,584,652 |
| | Banks 6.7% | | | | | |
| a | ABN AMRO Bank NV, 6.339% to 9/18/27, FRN thereafter, 9/18/27 | Netherlands | | | 1,100,000 | 1,139,030 |
| | Bank of America Corp., | | | | | |
| | 1.922% to 10/24/30, FRN thereafter, 10/24/31 | United States | | | 2,800,000 | 2,413,396 |
| | 2.592% to 4/29/30, FRN thereafter, 4/29/31 | United States | | | 3,000,000 | 2,721,892 |
| | 3.974% to 2/07/29, FRN thereafter, 2/07/30 | United States | | | 8,200,000 | 8,058,923 |
| | 2.299% to 7/21/31, FRN thereafter, 7/21/32 | United States | | | 6,200,000 | 5,369,770 |
| | 4.948% to 7/22/27, FRN thereafter, 7/22/28 | United States | | | 2,700,000 | 2,748,014 |
| | 5.468% to 1/23/34, FRN thereafter, 1/23/35 | United States | | | 1,000,000 | 1,051,988 |
| | BNP Paribas SA, | | | | | |
| | a 2.819% to 11/19/24, FRN thereafter, 11/19/25 | France | | | 2,200,000 | 2,191,675 |
| | a 5.176% to 1/09/29, FRN thereafter, 1/09/30 | France | | | 4,400,000 | 4,516,060 |
| a | BPCE SA, 2.045% to 10/19/26, FRN thereafter, 10/19/27 | France | | | 3,700,000 | 3,508,962 |
| | Citigroup, Inc., | | | | | |
| | 4.45%, 9/29/27 | United States | | | 1,500,000 | 1,502,337 |
| | 4.125%, 7/25/28 | United States | | | 2,300,000 | 2,281,794 |
| | 3.057% to 1/25/32, FRN thereafter, 1/25/33 | United States | | | 1,800,000 | 1,608,534 |
| a | Danske Bank AS, 5.705% to 3/01/30, FRN thereafter, 3/01/30 | Denmark | | | 4,000,000 | 4,170,395 |
| | Deutsche Bank AG, 5.371%, 9/09/27 | Germany | | | 3,700,000 | 3,809,876 |
| | Fifth Third Bancorp, 4.772% to 7/28/29, FRN thereafter, 7/28/30 | United States | | | 3,000,000 | 3,024,038 |
| | Goldman Sachs Group, Inc., | | | | | |
| | 1.948% to 10/21/26, FRN thereafter, 10/21/27 | United States | | | 5,200,000 | 4,957,883 |
| | 3.691% to 6/05/27, FRN thereafter, 6/05/28 | United States | | | 2,500,000 | 2,460,734 |
| | 2.383% to 7/21/31, FRN thereafter, 7/21/32 | United States | | | 6,300,000 | 5,466,460 |
| | 2.64% to 2/24/27, FRN thereafter, 2/24/28 | United States | | | 5,200,000 | 4,998,969 |
| | HSBC Holdings PLC, | | | | | |
| | 2.013% to 9/22/27, FRN thereafter, 9/22/28 | United Kingdom | | | 4,100,000 | 3,826,224 |
| | 2.357% to 8/18/30, FRN thereafter, 8/18/31 | United Kingdom | | | 1,300,000 | 1,143,316 |
| franklintempleton.com | Semi-Annual Report | 110 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin U.S. Core Bond ETF (continued)
| | | Country | | | Principal Amount* | Value |
| | Corporate Bonds & Notes (continued) | | | | | |
| | Banks (continued) | | | | | |
| | JPMorgan Chase & Co., | | | | | |
| | 2.956% to 5/13/30, FRN thereafter, 5/13/31 | United States | | | 5,000,000 | $ 4,600,169 |
| | 2.522% to 4/22/30, FRN thereafter, 4/22/31 | United States | | | 2,000,000 | 1,817,456 |
| | 1.953% to 2/04/31, FRN thereafter, 2/04/32 | United States | | | 7,000,000 | 6,017,452 |
| | 6.087% to 10/23/28, FRN thereafter, 10/23/29 | United States | | | 1,550,000 | 1,652,694 |
| | 5.336% to 1/23/34, FRN thereafter, 1/23/35 | United States | | | 1,300,000 | 1,359,322 |
| | KeyBank NA, 4.15%, 8/08/25 | United States | | | 2,500,000 | 2,482,017 |
| | Lloyds Banking Group PLC, 5.871% to 3/06/29, FRN thereafter, 3/06/29 | United Kingdom | | | 3,000,000 | 3,130,329 |
| | Mizuho Financial Group, Inc., 5.778% to 7/06/29, FRN thereafter, 7/06/29 | Japan | | | 2,700,000 | 2,825,072 |
| | Morgan Stanley, | | | | | |
| | 2.239% to 7/21/31, FRN thereafter, 7/21/32 | United States | | | 10,000,000 | 8,612,498 |
| | 3.622% to 4/01/30, FRN thereafter, 4/01/31 | United States | | | 4,300,000 | 4,129,970 |
| | 3.95%, 4/23/27 | United States | | | 3,600,000 | 3,564,731 |
| | 5.466% to 1/18/34, FRN thereafter, 1/18/35 | United States | | | 1,000,000 | 1,045,972 |
| | PNC Financial Services Group, Inc., 5.676% to 1/22/34, FRN thereafter, 1/22/35 | United States | | | 1,050,000 | 1,113,607 |
| | Santander U.K. Group Holdings PLC, 1.673% to 6/14/26, FRN thereafter, 6/14/27 | United Kingdom | | | 3,200,000 | 3,044,417 |
| a | Societe Generale SA, 1.792% to 6/09/27, FRN thereafter, 6/09/27 | France | | | 4,300,000 | 4,086,931 |
| | Toronto-Dominion Bank, 4.693%, 9/15/27 | Canada | | | 4,700,000 | 4,776,082 |
| | Truist Financial Corp., | | | | | |
| | 1.887% to 6/07/28, FRN thereafter, 6/07/29 | United States | | | 3,000,000 | 2,745,153 |
| | 5.90% to 10/28/25, FRN thereafter, 10/28/26 | United States | | | 3,850,000 | 3,900,647 |
| | U.S. Bancorp, 5.727% to 10/21/25, FRN thereafter, 10/21/26 | United States | | | 1,700,000 | 1,721,658 |
| | UBS Group AG, | | | | | |
| | a 6.373% to 7/15/25, FRN thereafter, 7/15/26 | Switzerland | | | 550,000 | 556,096 |
| | 4.55%, 4/17/26 | Switzerland | | | 950,000 | 952,793 |
| | a 6.246% to 9/22/29, FRN thereafter, 9/22/29 | Switzerland | | | 3,400,000 | 3,610,573 |
| | Wells Fargo & Co., | | | | | |
| | 2.879% to 10/30/29, FRN thereafter, 10/30/30 | United States | | | 10,300,000 | 9,557,487 |
| | 3.35% to 3/02/32, FRN thereafter, 3/02/33 | United States | | | 6,000,000 | 5,486,907 |
| | 4.54% to 8/15/25, FRN thereafter, 8/15/26 | United States | | | 1,600,000 | 1,597,597 |
| | 5.198% to 1/23/29, FRN thereafter, 1/23/30 | United States | | | 2,250,000 | 2,320,124 |
| | | | | | | 159,678,024 |
| | Beverages 0.4% | | | | | |
| | Anheuser-Busch Cos. LLC/Anheuser-Busch InBev Worldwide, Inc., 4.70%, 2/01/36 | Belgium | | | 5,500,000 | 5,524,685 |
| | Constellation Brands, Inc., 4.90%, 5/01/33 | United States | | | 5,000,000 | 5,054,854 |
| | | | | | | 10,579,539 |
| | Biotechnology 0.6% | | | | | |
| | Amgen, Inc., | | | | | |
| | 4.663%, 6/15/51 | United States | | | 2,000,000 | 1,833,123 |
| | 5.25%, 3/02/33 | United States | | | 3,400,000 | 3,540,888 |
| | Bio-Rad Laboratories, Inc., 3.30%, 3/15/27 | United States | | | 500,000 | 488,102 |
| | Illumina, Inc., 5.80%, 12/12/25 | United States | | | 1,400,000 | 1,418,806 |
| | Regeneron Pharmaceuticals, Inc., 1.75%, 9/15/30 | United States | | | 4,000,000 | 3,457,338 |
| | Royalty Pharma PLC, 2.20%, 9/02/30 | United Kingdom | | | 5,000,000 | 4,379,776 |
| | | | | | | 15,118,033 |
| | Building Products 0.1% | | | | | |
| | NVR, Inc., 3.00%, 5/15/30 | United States | | | 2,500,000 | 2,316,846 |
| | Chemicals 0.1% | | | | | |
| a | Solvay Finance America LLC, 5.85%, 6/04/34 | Belgium | | | 3,000,000 | 3,150,298 |
| 111 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin U.S. Core Bond ETF (continued)
| | | Country | | | Principal Amount* | Value |
| | Corporate Bonds & Notes (continued) | | | | | |
| | Commercial Services & Supplies 0.2% | | | | | |
| a | Ashtead Capital, Inc., 5.80%, 4/15/34 | United Kingdom | | | 600,000 | $ 627,439 |
| | Boardwalk Pipelines LP, 4.80%, 5/03/29 | United States | | | 3,950,000 | 3,971,420 |
| | | | | | | 4,598,859 |
| | Construction Materials 0.3% | | | | | |
| | Owens Corning, 5.70%, 6/15/34 | United States | | | 7,000,000 | 7,435,677 |
| | Diversified REITs 0.1% | | | | | |
| | Essex Portfolio LP, 2.65%, 3/15/32 | United States | | | 4,000,000 | 3,484,999 |
| | Diversified Telecommunication Services 0.6% | | | | | |
| | America Movil SAB de CV, 2.875%, 5/07/30 | Mexico | | | 3,800,000 | 3,510,381 |
| | Orange SA, 9.00%, 3/01/31 | France | | | 3,000,000 | 3,712,829 |
| | Verizon Communications, Inc., | | | | | |
| | 1.75%, 1/20/31 | United States | | | 5,000,000 | 4,266,679 |
| | 2.85%, 9/03/41 | United States | | | 3,900,000 | 2,935,045 |
| | | | | | | 14,424,934 |
| | Electric 1.2% | | | | | |
| | Constellation Energy Generation LLC, | | | | | |
| | 5.80%, 3/01/33 | United States | | | 5,500,000 | 5,903,288 |
| | 6.125%, 1/15/34 | United States | | | 1,050,000 | 1,154,666 |
| | DTE Energy Co., 4.875%, 6/01/28 | United States | | | 2,800,000 | 2,860,273 |
| | Duke Energy Corp., 2.45%, 6/01/30 | United States | | | 3,900,000 | 3,520,296 |
| | Duke Energy Ohio, Inc., 5.25%, 4/01/33 | United States | | | 500,000 | 522,258 |
| a | Electricite de France SA, 5.70%, 5/23/28 | France | | | 600,000 | 624,872 |
| | NextEra Energy Capital Holdings, Inc., 5.05%, 2/28/33 | United States | | | 5,000,000 | 5,149,047 |
| | Public Service Enterprise Group, Inc., 2.45%, 11/15/31 | United States | | | 5,000,000 | 4,384,885 |
| | Xcel Energy, Inc., 5.45%, 8/15/33 | United States | | | 3,300,000 | 3,428,354 |
| | | | | | | 27,547,939 |
| | Electric Utilities 1.5% | | | | | |
| | Baltimore Gas & Electric Co., 3.50%, 8/15/46 | United States | | | 1,400,000 | 1,100,284 |
| a | Comision Federal de Electricidad, 3.348%, 2/09/31 | Mexico | | | 3,800,000 | 3,286,541 |
| | Duke Energy Corp., 3.75%, 9/01/46 | United States | | | 5,000,000 | 3,975,230 |
| a | EDP Finance BV, 1.71%, 1/24/28 | Netherlands | | | 4,500,000 | 4,142,511 |
| | Enel Finance International NV, | | | | | |
| | a 3.50%, 4/06/28 | Netherlands | | | 2,700,000 | 2,619,914 |
| | a 2.50%, 7/12/31 | Netherlands | | | 3,500,000 | 3,044,976 |
| | Exelon Corp., 4.05%, 4/15/30 | United States | | | 4,500,000 | 4,432,677 |
| | Georgia Power Co., Series 2010-C, 4.75%, 9/01/40 | United States | | | 1,400,000 | 1,363,255 |
| | MidAmerican Energy Co., 3.65%, 8/01/48 | United States | | | 1,100,000 | 885,547 |
| a | Perusahaan Perseroan Persero PT Perusahaan Listrik Negara, 4.875%, 7/17/49 | Indonesia | | | 750,000 | 662,504 |
| | Southern Co., Series A, 3.70%, 4/30/30 | United States | | | 6,000,000 | 5,801,401 |
| | Virginia Electric & Power Co., Series B, 3.80%, 9/15/47 | United States | | | 5,100,000 | 4,149,207 |
| | | | | | | 35,464,047 |
| | Electronic Equipment, Instruments & Components 0.2% | | | | | |
| | Flex Ltd., 4.875%, 5/12/30 | Singapore | | | 3,000,000 | 3,005,893 |
| | Teledyne FLIR LLC, 2.50%, 8/01/30 | United States | | | 3,000,000 | 2,682,083 |
| | | | | | | 5,687,976 |
| | Energy Equipment & Services 0.1% | | | | | |
| | Kinder Morgan, Inc., 2.00%, 2/15/31 | United States | | | 4,100,000 | 3,525,237 |
| | Entertainment 0.0%† | | | | | |
| | Warnermedia Holdings, Inc., 4.054%, 3/15/29 | United States | | | 900,000 | 852,875 |
| | Environmental Control 0.2% | | | | | |
| | Republic Services, Inc., 5.00%, 4/01/34 | United States | | | 5,000,000 | 5,151,581 |
| franklintempleton.com | Semi-Annual Report | 112 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin U.S. Core Bond ETF (continued)
| | | Country | | | Principal Amount* | Value |
| | Corporate Bonds & Notes (continued) | | | | | |
| | Financial Services 0.1% | | | | | |
| | AerCap Ireland Capital DAC/AerCap Global Aviation Trust, 3.40%, 10/29/33 | Ireland | | | 3,500,000 | $ 3,098,062 |
| | Food 0.9% | | | | | |
| | JBS USA Holding Lux SARL/JBS USA Food Co./JBS Lux Co. SARL, 5.75%, 4/01/33 | United States | | | 3,700,000 | 3,835,809 |
| | Kroger Co., 4.70%, 8/15/26 | United States | | | 1,950,000 | 1,963,621 |
| a | Mars, Inc., 3.20%, 4/01/30 | United States | | | 3,200,000 | 3,029,958 |
| | McCormick & Co., Inc., 2.50%, 4/15/30 | United States | | | 4,200,000 | 3,818,920 |
| | Mondelez International, Inc., 4.75%, 8/28/34 | United States | | | 8,500,000 | 8,569,066 |
| | | | | | | 21,217,374 |
| | Ground Transportation 0.2% | | | | | |
| | Burlington Northern Santa Fe LLC, | | | | | |
| | 4.90%, 4/01/44 | United States | | | 1,100,000 | 1,092,623 |
| | 4.15%, 4/01/45 | United States | | | 2,300,000 | 2,055,216 |
| | CSX Corp., 4.25%, 11/01/66 | United States | | | 1,000,000 | 847,639 |
| | | | | | | 3,995,478 |
| | Health Care Providers & Services 1.4% | | | | | |
| | CVS Health Corp., 4.875%, 7/20/35 | United States | | | 1,400,000 | 1,371,430 |
| | Elevance Health, Inc., 5.10%, 1/15/44 | United States | | | 2,000,000 | 1,980,078 |
| | HCA, Inc., 3.625%, 3/15/32 | United States | | | 6,500,000 | 6,012,570 |
| | Icon Investments Six DAC, 6.00%, 5/08/34 | United States | | | 365,000 | 388,471 |
| | IQVIA, Inc., 6.25%, 2/01/29 | United States | | | 5,200,000 | 5,531,291 |
| | Quest Diagnostics, Inc., 2.80%, 6/30/31 | United States | | | 6,800,000 | 6,134,223 |
| | STERIS Irish FinCo UnLtd Co., 2.70%, 3/15/31 | Ireland | | | 5,000,000 | 4,455,769 |
| | UnitedHealth Group, Inc., | | | | | |
| | 2.00%, 5/15/30 | United States | | | 3,000,000 | 2,675,615 |
| | 4.50%, 4/15/33 | United States | | | 2,000,000 | 2,009,589 |
| | 5.15%, 7/15/34 | United States | | | 1,900,000 | 1,983,756 |
| | | | | | | 32,542,792 |
| | Health Care Services 0.2% | | | | | |
| | Elevance Health, Inc., 2.55%, 3/15/31 | United States | | | 5,000,000 | 4,477,070 |
| | Healthcare-Products 0.7% | | | | | |
| | Baxter International, Inc., 2.539%, 2/01/32 | United States | | | 6,400,000 | 5,552,541 |
| | Boston Scientific Corp., 2.65%, 6/01/30 | United States | | | 6,000,000 | 5,517,093 |
| | GE HealthCare Technologies, Inc., 5.905%, 11/22/32 | United States | | | 4,200,000 | 4,551,390 |
| | | | | | | 15,621,024 |
| | Home Builders 0.2% | | | | | |
| | Toll Brothers Finance Corp., 3.80%, 11/01/29 | United States | | | 4,600,000 | 4,465,873 |
| | Household Products 0.3% | | | | | |
| | Haleon U.S. Capital LLC, 3.625%, 3/24/32 | United States | | | 6,500,000 | 6,116,059 |
| | Insurance 2.2% | | | | | |
| a | AIA Group Ltd., 4.95%, 4/04/33 | Hong Kong | | | 1,600,000 | 1,636,282 |
| | Aon Corp., 2.80%, 5/15/30 | United States | | | 7,000,000 | 6,446,762 |
| | Aon Corp./Aon Global Holdings PLC, 5.35%, 2/28/33 | United States | | | 2,000,000 | 2,090,925 |
| | Arthur J Gallagher & Co., 5.45%, 7/15/34 | United States | | | 5,000,000 | 5,213,375 |
| | Berkshire Hathaway Finance Corp., 3.85%, 3/15/52 | United States | | | 2,500,000 | 2,112,817 |
| | Corebridge Financial, Inc., | | | | | |
| | 3.90%, 4/05/32 | United States | | | 1,500,000 | 1,407,696 |
| | 6.05%, 9/15/33 | United States | | | 2,400,000 | 2,560,426 |
| a | Corebridge Global Funding, 5.90%, 9/19/28 | United States | | | 2,000,000 | 2,105,203 |
| a | Five Corners Funding Trust II, 2.85%, 5/15/30 | United States | | | 7,000,000 | 6,471,680 |
| | Marsh & McLennan Cos., Inc., 4.90%, 3/15/49 | United States | | | 3,000,000 | 2,876,493 |
| 113 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin U.S. Core Bond ETF (continued)
| | | Country | | | Principal Amount* | Value |
| | Corporate Bonds & Notes (continued) | | | | | |
| | Insurance (continued) | | | | | |
| | MetLife, Inc., 5.875%, 2/06/41 | United States | | | 1,100,000 | $ 1,200,679 |
| a | Metropolitan Life Global Funding I, 4.30%, 8/25/29 | United States | | | 1,400,000 | 1,405,704 |
| a | New York Life Global Funding, 4.85%, 1/09/28 | United States | | | 5,200,000 | 5,325,313 |
| | Progressive Corp., 3.70%, 3/15/52 | United States | | | 3,000,000 | 2,418,055 |
| | Reinsurance Group of America, Inc., 3.90%, 5/15/29 | United States | | | 2,250,000 | 2,198,444 |
| a | RGA Global Funding, 5.50%, 1/11/31 | United States | | | 2,100,000 | 2,196,388 |
| a | Sammons Financial Group, Inc., 6.875%, 4/15/34 | United States | | | 2,500,000 | 2,676,674 |
| | Travelers Property Casualty Corp., 6.375%, 3/15/33 | United States | | | 2,000,000 | 2,269,511 |
| | | | | | | 52,612,427 |
| | Internet 0.1% | | | | | |
| | Netflix, Inc., 4.90%, 8/15/34 | United States | | | 1,945,000 | 2,012,565 |
| | IT Services 0.4% | | | | | |
| | Fiserv, Inc., | | | | | |
| | 3.50%, 7/01/29 | United States | | | 1,800,000 | 1,739,683 |
| | 2.65%, 6/01/30 | United States | | | 4,700,000 | 4,283,963 |
| | Hewlett Packard Enterprise Co., 4.85%, 10/15/31 | United States | | | 3,000,000 | 2,994,750 |
| | | | | | | 9,018,396 |
| | Lodging 0.1% | | | | | |
| | Marriott International, Inc., 5.30%, 5/15/34 | United States | | | 1,400,000 | 1,443,169 |
| | Machinery-Diversified 0.3% | | | | | |
| | Ingersoll Rand, Inc., 5.70%, 8/14/33 | United States | | | 4,200,000 | 4,501,504 |
| | Westinghouse Air Brake Technologies Corp., 4.70%, 9/15/28 | United States | | | 2,000,000 | 2,025,932 |
| | | | | | | 6,527,436 |
| | Media 0.9% | | | | | |
| | Charter Communications Operating LLC/Charter Communications Operating Capital, | | | | | |
| | 2.80%, 4/01/31 | United States | | | 5,000,000 | 4,280,154 |
| | 3.50%, 3/01/42 | United States | | | 1,500,000 | 1,042,936 |
| | Comcast Corp., | | | | | |
| | 4.25%, 1/15/33 | United States | | | 6,000,000 | 5,903,708 |
| | 1.50%, 2/15/31 | United States | | | 3,000,000 | 2,532,162 |
| | Fox Corp., 6.50%, 10/13/33 | United States | | | 2,100,000 | 2,299,021 |
| | NBCUniversal Media LLC, 4.45%, 1/15/43 | United States | | | 1,100,000 | 1,009,907 |
| | Walt Disney Co., 2.75%, 9/01/49 | United States | | | 5,000,000 | 3,408,662 |
| | | | | | | 20,476,550 |
| | Metals & Mining 0.0%† | | | | | |
| a | Corp. Nacional del Cobre de Chile, 4.50%, 8/01/47 | Chile | | | 1,160,000 | 991,409 |
| | Multi-Utilities 0.1% | | | | | |
| | Berkshire Hathaway Energy Co., 5.15%, 11/15/43 | United States | | | 3,000,000 | 3,027,605 |
| | Oil & Gas 1.1% | | | | | |
| | BP Capital Markets America, Inc., 4.893%, 9/11/33 | United States | | | 5,300,000 | 5,394,753 |
| | Canadian Natural Resources Ltd., 2.95%, 7/15/30 | Canada | | | 6,300,000 | 5,762,886 |
| | ConocoPhillips Co., 5.05%, 9/15/33 | United States | | | 6,000,000 | 6,212,095 |
| | TotalEnergies Capital SA, 4.724%, 9/10/34 | France | | | 4,100,000 | 4,122,183 |
| a | Var Energi ASA, 8.00%, 11/15/32 | Norway | | | 3,800,000 | 4,410,803 |
| | | | | | | 25,902,720 |
| | Oil, Gas & Consumable Fuels 0.4% | | | | | |
| a | Aker BP ASA, 3.10%, 7/15/31 | Norway | | | 4,700,000 | 4,190,779 |
| a | Pertamina Persero PT, 4.70%, 7/30/49 | Indonesia | | | 1,000,000 | 903,272 |
| | Sabine Pass Liquefaction LLC, 4.20%, 3/15/28 | United States | | | 4,000,000 | 3,979,684 |
| | | | | | | 9,073,735 |
| franklintempleton.com | Semi-Annual Report | 114 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin U.S. Core Bond ETF (continued)
| | | Country | | | Principal Amount* | Value |
| | Corporate Bonds & Notes (continued) | | | | | |
| | Packaging & Containers 0.1% | | | | | |
| | Amcor Flexibles North America, Inc., 2.63%, 6/19/30 | United States | | | 3,500,000 | $ 3,151,802 |
| | Paper & Forest Products 0.0%† | | | | | |
| | Suzano Austria GmbH, 3.125%, 1/15/32 | Austria | | | 1,300,000 | 1,130,543 |
| | Pharmaceuticals 1.3% | | | | | |
| | AbbVie, Inc., | | | | | |
| | 4.05%, 11/21/39 | United States | | | 3,000,000 | 2,772,670 |
| | 4.75%, 3/15/45 | United States | | | 1,000,000 | 973,645 |
| a | Bayer U.S. Finance II LLC, 4.375%, 12/15/28 | Germany | | | 5,500,000 | 5,429,224 |
| | Bristol-Myers Squibb Co., | | | | | |
| | 4.125%, 6/15/39 | United States | | | 3,200,000 | 2,962,001 |
| | 2.55%, 11/13/50 | United States | | | 6,000,000 | 3,826,135 |
| | Cigna Group, 4.90%, 12/15/48 | United States | | | 3,300,000 | 3,109,992 |
| | CVS Health Corp., | | | | | |
| | 1.875%, 2/28/31 | United States | | | 6,000,000 | 5,055,796 |
| | 5.30%, 6/01/33 | United States | | | 2,000,000 | 2,044,536 |
| | Pfizer Investment Enterprises Pte. Ltd., 4.75%, 5/19/33 | United States | | | 1,700,000 | 1,733,402 |
| | Takeda Pharmaceutical Co. Ltd., 2.05%, 3/31/30 | Japan | | | 2,600,000 | 2,313,854 |
| | | | | | | 30,221,255 |
| | Pipelines 1.0% | | | | | |
| a | Cheniere Energy, Inc., 5.65%, 4/15/34 | United States | | | 2,700,000 | 2,795,580 |
| | Energy Transfer LP, | | | | | |
| | 6.40%, 12/01/30 | United States | | | 5,800,000 | 6,322,325 |
| | 5.55%, 5/15/34 | United States | | | 2,300,000 | 2,383,035 |
| | MPLX LP, | | | | | |
| | 2.65%, 8/15/30 | United States | | | 2,500,000 | 2,250,771 |
| | 5.50%, 6/01/34 | United States | | | 3,200,000 | 3,289,078 |
| | Targa Resources Corp., 6.50%, 3/30/34 | United States | | | 5,000,000 | 5,528,133 |
| | | | | | | 22,568,922 |
| | Real Estate Investment Trusts (REITs) 0.2% | | | | | |
| | Alexandria Real Estate Equities, Inc., | | | | | |
| | 1.875%, 2/01/33 | United States | | | 4,000,000 | 3,215,616 |
| | 5.25%, 5/15/36 | United States | | | 1,340,000 | 1,363,682 |
| a | Prologis Targeted U.S. Logistics Fund LP, 5.25%, 4/01/29 | United States | | | 1,200,000 | 1,236,453 |
| | | | | | | 5,815,751 |
| | Real Estate Management & Development 0.4% | | | | | |
| | Simon Property Group LP, 2.20%, 2/01/31 | United States | | | 2,000,000 | 1,755,445 |
| | VICI Properties LP, 4.95%, 2/15/30 | United States | | | 5,000,000 | 5,033,745 |
| a | VICI Properties LP/VICI Note Co., Inc., 3.875%, 2/15/29 | United States | | | 2,000,000 | 1,917,160 |
| | | | | | | 8,706,350 |
| | Retail 0.6% | | | | | |
| | Dollar Tree, Inc., 4.20%, 5/15/28 | United States | | | 5,000,000 | 4,938,914 |
| | Lowe’s Cos., Inc., 5.00%, 4/15/33 | United States | | | 5,000,000 | 5,158,448 |
| | McDonald’s Corp., 5.20%, 5/17/34 | United States | | | 4,000,000 | 4,232,183 |
| | Target Corp., 2.95%, 1/15/52 | United States | | | 1,300,000 | 922,269 |
| | | | | | | 15,251,814 |
| | Software 0.5% | | | | | |
| | Oracle Corp., 2.875%, 3/25/31 | United States | | | 5,000,000 | 4,551,111 |
| | ServiceNow, Inc., 1.40%, 9/01/30 | United States | | | 8,000,000 | 6,866,984 |
| | | | | | | 11,418,095 |
| 115 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin U.S. Core Bond ETF (continued)
| | | Country | | | Principal Amount* | Value |
| | Corporate Bonds & Notes (continued) | | | | | |
| | Telecommunications 0.8% | | | | | |
| | AT&T, Inc., 2.55%, 12/01/33 | United States | | | 12,800,000 | $ 10,794,917 |
| | Motorola Solutions, Inc., 5.40%, 4/15/34 | United States | | | 7,000,000 | 7,309,045 |
| | | | | | | 18,103,962 |
| | Transportation 0.1% | | | | | |
| | Union Pacific Corp., 3.20%, 5/20/41 | United States | | | 2,000,000 | 1,621,556 |
| | Wireless Telecommunication Services 0.4% | | | | | |
| | T-Mobile USA, Inc., | | | | | |
| | 3.75%, 4/15/27 | United States | | | 5,000,000 | 4,940,742 |
| | 3.875%, 4/15/30 | United States | | | 3,000,000 | 2,918,194 |
| | Vodafone Group PLC, 4.875%, 6/19/49 | United Kingdom | | | 1,000,000 | 919,819 |
| | | | | | | 8,778,755 |
| | Total Corporate Bonds & Notes (Cost $698,059,027) | | | | | 691,610,645 |
| | U.S. Government & Agency Securities 65.8% | | | | | |
| | Federal Farm Credit Banks Funding Corp., 2.10%, 2/25/36 | United States | | | 4,000,000 | 3,212,726 |
| | Federal Home Loan Mortgage Corp., | | | | | |
| | 2.00%, 4/01/37 | United States | | | 4,350,868 | 3,981,312 |
| | 2.00%, 8/01/37 | United States | | | 4,463,067 | 4,083,969 |
| | 2.00%, 3/01/51 | United States | | | 27,102,125 | 22,608,466 |
| | 2.00%, 5/01/51 | United States | | | 10,495,760 | 8,730,832 |
| | 2.00%, 1/01/52 | United States | | | 2,492,512 | 2,062,174 |
| | 2.00%, 1/01/52 | United States | | | 725,886 | 600,560 |
| | 2.00%, 3/01/52 | United States | | | 428,345 | 354,595 |
| | 2.00%, 4/01/52 | United States | | | 4,766,760 | 3,946,119 |
| | 2.00%, 8/01/52 | United States | | | 24,058,438 | 19,948,877 |
| | 2.50%, 4/01/37 | United States | | | 3,270,014 | 3,069,502 |
| | 2.50%, 4/01/37 | United States | | | 869,293 | 816,054 |
| | 2.50%, 5/01/37 | United States | | | 3,456,100 | 3,242,572 |
| | 2.50%, 9/01/51 | United States | | | 2,011,425 | 1,737,458 |
| | 2.50%, 1/01/52 | United States | | | 595,072 | 514,013 |
| | 2.50%, 3/01/52 | United States | | | 6,343,605 | 5,494,081 |
| | 2.50%, 4/01/52 | United States | | | 14,749,086 | 12,758,036 |
| | 3.00%, 4/01/37 | United States | | | 418,591 | 401,522 |
| | 3.00%, 6/01/37 | United States | | | 3,610,234 | 3,463,007 |
| | 3.00%, 8/01/37 | United States | | | 462,962 | 444,080 |
| | 3.00%, 9/01/37 | United States | | | 617,645 | 592,453 |
| | 3.00%, 3/01/50 | United States | | | 13,052,126 | 11,948,407 |
| | 3.00%, 3/01/50 | United States | | | 4,976,617 | 4,549,628 |
| | 3.00%, 10/01/51 | United States | | | 564,287 | 506,780 |
| | 3.00%, 7/01/52 | United States | | | 3,149,503 | 2,830,804 |
| | 3.00%, 7/01/52 | United States | | | 388,845 | 349,182 |
| | 3.00%, 9/01/52 | United States | | | 9,574,972 | 8,604,302 |
| | 3.50%, 2/01/47 | United States | | | 1,281,534 | 1,209,843 |
| | 3.50%, 2/01/47 | United States | | | 2,447,735 | 2,311,607 |
| | 3.50%, 3/01/48 | United States | | | 1,530,328 | 1,444,679 |
| | 3.50%, 3/01/48 | United States | | | 3,124,875 | 2,949,992 |
| | 3.50%, 4/01/52 | United States | | | 2,859,643 | 2,665,180 |
| | 3.50%, 5/01/52 | United States | | | 6,606,465 | 6,162,767 |
| | 3.50%, 6/01/52 | United States | | | 4,649,965 | 4,335,496 |
| | 3.50%, 7/01/52 | United States | | | 2,366,971 | 2,205,801 |
| | 3.50%, 12/01/52 | United States | | | 2,972,944 | 2,771,727 |
| | 4.00%, 11/01/45 | United States | | | 2,196,256 | 2,145,284 |
| | 4.00%, 6/01/48 | United States | | | 4,491,315 | 4,387,073 |
| | 4.00%, 5/01/50 | United States | | | 4,866,571 | 4,768,225 |
| | 4.00%, 9/01/52 | United States | | | 4,366,443 | 4,198,730 |
| franklintempleton.com | Semi-Annual Report | 116 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin U.S. Core Bond ETF (continued)
| | | Country | | | Principal Amount* | Value |
| | U.S. Government & Agency Securities (continued) | | | | | |
| | 4.00%, 10/01/52 | United States | | | 3,360,958 | $ 3,230,787 |
| | 4.00%, 11/01/53 | United States | | | 3,478,718 | 3,342,610 |
| | 4.00%, 1/01/54 | United States | | | 3,648,935 | 3,507,775 |
| | 4.50%, 8/01/52 | United States | | | 647,721 | 637,777 |
| | 4.50%, 10/01/52 | United States | | | 5,630,004 | 5,536,597 |
| | 5.00%, 2/01/54 | United States | | | 4,122,049 | 4,121,030 |
| | 6.50%, 9/01/54 | United States | | | 1,351,572 | 1,393,750 |
| | 6.50%, 10/01/54 | United States | | | 3,999,000 | 4,124,875 |
| | Federal National Mortgage Association, | | | | | |
| | 1.50%, 9/01/51 | United States | | | 3,999,587 | 3,171,425 |
| | 2.00%, 5/01/36 | United States | | | 9,131,630 | 8,382,380 |
| | 2.00%, 4/01/37 | United States | | | 400,496 | 366,478 |
| | 2.00%, 7/01/51 | United States | | | 20,129,343 | 16,751,833 |
| | 2.00%, 8/01/51 | United States | | | 13,214,293 | 10,962,267 |
| | 2.00%, 10/01/51 | United States | | | 18,548,628 | 15,397,245 |
| | 2.00%, 2/01/52 | United States | | | 2,906,946 | 2,405,659 |
| | 2.00%, 3/01/52 | United States | | | 5,879,289 | 4,871,830 |
| | 2.50%, 7/01/37 | United States | | | 3,777,306 | 3,552,675 |
| | 2.50%, 4/01/51 | United States | | | 24,506,271 | 21,328,831 |
| | 2.50%, 7/01/51 | United States | | | 6,516,251 | 5,665,383 |
| | 2.50%, 8/01/51 | United States | | | 4,072,450 | 3,538,219 |
| | 2.50%, 12/01/51 | United States | | | 14,489,466 | 12,618,326 |
| | 2.50%, 2/01/52 | United States | | | 1,482,093 | 1,283,009 |
| | 2.50%, 3/01/52 | United States | | | 10,633,697 | 9,218,806 |
| | 2.50%, 4/01/52 | United States | | | 4,790,153 | 4,149,766 |
| | 3.00%, 9/01/37 | United States | | | 466,205 | 447,191 |
| | 3.00%, 9/01/37 | United States | | | 3,757,963 | 3,620,936 |
| | 3.00%, 10/01/37 | United States | | | 4,023,170 | 3,859,069 |
| | 3.00%, 4/01/50 | United States | | | 5,243,389 | 4,817,851 |
| | 3.00%, 9/01/50 | United States | | | 4,372,092 | 3,986,813 |
| | 3.00%, 11/01/51 | United States | | | 4,824,746 | 4,359,967 |
| | 3.00%, 2/01/52 | United States | | | 515,562 | 463,028 |
| | 3.00%, 2/01/52 | United States | | | 1,762,202 | 1,582,650 |
| | 3.00%, 3/01/52 | United States | | | 4,780,162 | 4,293,088 |
| | 3.00%, 3/01/52 | United States | | | 691,832 | 621,337 |
| | 3.00%, 5/01/52 | United States | | | 4,708,685 | 4,228,824 |
| | 3.00%, 5/01/52 | United States | | | 3,937,740 | 3,542,127 |
| | 3.00%, 6/01/52 | United States | | | 6,665,316 | 5,990,087 |
| | 3.00%, 3/01/53 | United States | | | 8,306,059 | 7,467,614 |
| | 3.50%, 6/01/49 | United States | | | 542,680 | 512,347 |
| | 3.50%, 8/01/49 | United States | | | 8,655,574 | 8,200,230 |
| | 3.50%, 11/01/52 | United States | | | 4,404,601 | 4,103,456 |
| | 4.00%, 2/01/49 | United States | | | 353,388 | 346,500 |
| | 4.00%, 1/01/54 | United States | | | 3,972,379 | 3,816,135 |
| | 4.00%, 4/01/54 | United States | | | 4,373,459 | 4,200,750 |
| | 4.50%, 7/01/47 | United States | | | 4,662,554 | 4,678,896 |
| | 4.50%, 5/01/48 | United States | | | 2,342,036 | 2,354,789 |
| | 4.50%, 12/01/48 | United States | | | 3,262,920 | 3,262,468 |
| | 4.50%, 2/01/50 | United States | | | 1,400,464 | 1,399,476 |
| | 4.50%, 11/01/52 | United States | | | 6,304,486 | 6,202,699 |
| | 5.00%, 10/01/52 | United States | | | 3,167,667 | 3,170,944 |
| | 5.00%, 1/01/53 | United States | | | 5,239,487 | 5,247,499 |
| | 5.00%, 5/01/53 | United States | | | 3,282,945 | 3,284,416 |
| | 5.00%, 8/01/53 | United States | | | 4,335,493 | 4,334,420 |
| | 5.00%, 2/01/54 | United States | | | 4,103,558 | 4,102,543 |
| | 5.00%, 10/01/54 | United States | | | 19,200,000 | 19,192,298 |
| | 5.50%, 5/01/53 | United States | | | 8,215,542 | 8,316,020 |
| | 5.50%, 10/01/54 | United States | | | 7,400,000 | 7,488,018 |
| | 6.00%, 8/01/53 | United States | | | 13,632,604 | 13,943,878 |
| 117 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin U.S. Core Bond ETF (continued)
| | | Country | | | Principal Amount* | Value |
| | U.S. Government & Agency Securities (continued) | | | | | |
| | 6.00%, 9/01/54 | United States | | | 9,773,593 | $ 9,991,311 |
| | Government National Mortgage Association, | | | | | |
| | 2.00%, 10/20/50 | United States | | | 12,481,773 | 10,601,329 |
| | 2.00%, 2/20/52 | United States | | | 4,738,044 | 4,021,329 |
| | 2.00%, 4/20/52 | United States | | | 4,773,103 | 4,051,487 |
| | 2.00%, 5/20/52 | United States | | | 10,007,423 | 8,494,455 |
| | 2.00%, 6/20/52 | United States | | | 4,841,996 | 4,109,975 |
| | 2.50%, 4/20/52 | United States | | | 8,381,600 | 7,389,335 |
| | 2.50%, 6/20/52 | United States | | | 4,800,496 | 4,232,185 |
| | 3.00%, 11/20/51 | United States | | | 5,570,020 | 5,082,118 |
| | 3.50%, 10/20/47 | United States | | | 6,113,705 | 5,800,258 |
| | 3.50%, 5/20/52 | United States | | | 5,384,088 | 5,059,510 |
| | 3.50%, 6/20/52 | United States | | | 2,388,556 | 2,244,562 |
| | 4.00%, 6/20/52 | United States | | | 6,538,934 | 6,327,452 |
| | 4.50%, 9/20/53 | United States | | | 6,180,029 | 6,107,331 |
| | 5.00%, 9/20/53 | United States | | | 3,149,695 | 3,156,705 |
| | 5.00%, 10/20/53 | United States | | | 4,633,289 | 4,645,490 |
| | 5.00%, 9/20/54 | United States | | | 7,480,000 | 7,495,480 |
| | 5.50%, 5/20/53 | United States | | | 7,009,157 | 7,085,948 |
| | 5.50%, 7/20/54 | United States | | | 8,177,185 | 8,261,236 |
| | 5.50%, 9/20/54 | United States | | | 18,810,000 | 19,001,421 |
| | 6.00%, 4/20/54 | United States | | | 11,270,854 | 11,469,667 |
| | 6.00%, 6/20/54 | United States | | | 3,850,732 | 3,918,657 |
| | 6.50%, 5/20/54 | United States | | | 7,472,270 | 7,651,740 |
| | U.S. Treasury Bonds, | | | | | |
| | 1.125%, 5/15/40 | United States | | | 2,780,000 | 1,837,678 |
| | 1.125%, 8/15/40 | United States | | | 21,200,000 | 13,895,109 |
| | 1.25%, 5/15/50 | United States | | | 22,465,000 | 12,027,550 |
| | 1.375%, 8/15/50 | United States | | | 68,475,000 | 37,741,494 |
| | 1.875%, 2/15/51 | United States | | | 2,100,000 | 1,316,397 |
| | 2.00%, 11/15/41 | United States | | | 39,050,000 | 28,726,919 |
| | 2.00%, 2/15/50 | United States | | | 17,200,000 | 11,212,922 |
| | 2.00%, 8/15/51 | United States | | | 4,900,000 | 3,157,533 |
| | 2.25%, 8/15/46 | United States | | | 10,314,000 | 7,387,000 |
| | 2.25%, 8/15/49 | United States | | | 4,930,000 | 3,417,299 |
| | 2.25%, 2/15/52 | United States | | | 8,835,000 | 6,026,609 |
| | 2.75%, 8/15/42 | United States | | | 19,789,000 | 16,312,011 |
| | 2.75%, 11/15/42 | United States | | | 12,800,000 | 10,500,500 |
| | 2.75%, 11/15/47 | United States | | | 9,420,000 | 7,337,297 |
| | 3.00%, 11/15/44 | United States | | | 45,795,000 | 38,224,514 |
| | 3.00%, 2/15/49 | United States | | | 27,743,000 | 22,468,579 |
| | 3.625%, 2/15/53 | United States | | | 14,600,000 | 13,279,727 |
| | 3.625%, 5/15/53 | United States | | | 9,950,000 | 9,057,609 |
| | 4.125%, 8/15/53 | United States | | | 14,000,000 | 13,945,859 |
| | U.S. Treasury Notes, | | | | | |
| | 0.375%, 11/30/25 | United States | | | 82,150,000 | 78,918,553 |
| | 0.375%, 1/31/26 | United States | | | 63,700,000 | 60,885,754 |
| | 0.875%, 6/30/26 | United States | | | 73,300,000 | 69,842,588 |
| | 1.25%, 12/31/26 | United States | | | 156,300,000 | 148,442,261 |
| | 1.25%, 5/31/28 | United States | | | 36,000,000 | 33,141,797 |
| | 1.25%, 8/15/31 | United States | | | 14,160,000 | 12,095,184 |
| | 1.375%, 11/15/31 | United States | | | 2,400,000 | 2,055,750 |
| | 1.50%, 10/31/24 | United States | | | 70,000,000 | 69,807,137 |
| | 2.25%, 8/15/27 | United States | | | 6,800,000 | 6,555,891 |
| | 2.75%, 8/15/32 | United States | | | 12,400,000 | 11,590,125 |
| | 3.25%, 6/30/27 | United States | | | 78,565,000 | 77,914,384 |
| | 3.50%, 4/30/28 | United States | | | 7,500,000 | 7,483,154 |
| | 3.75%, 5/31/30 | United States | | | 46,000,000 | 46,310,859 |
| | 4.00%, 10/31/29 | United States | | | 30,053,000 | 30,615,320 |
| franklintempleton.com | Semi-Annual Report | 118 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin U.S. Core Bond ETF (continued)
| | | Country | | | Principal Amount* | Value |
| | U.S. Government & Agency Securities (continued) | | | | | |
| | 4.125%, 7/31/28 | United States | | | 12,700,000 | $ 12,949,039 |
| | Total U.S. Government & Agency Securities (Cost $1,591,714,586) | | | | | 1,562,084,995 |
| | Municipal Bonds 0.8% | | | | | |
| | California 0.8% | | | | | |
| | Golden State Tobacco Securitization Corp., Subordinate Bond, Refunding, Series 2021, 3.85%, 6/01/50 | United States | | | 5,340,000 | 5,009,285 |
| | San Bernardino Community College District, | | | | | |
| | Refunding, 2.686%, 8/01/41 | United States | | | 6,140,000 | 4,699,191 |
| | Refunding, 2.856%, 8/01/49 | United States | | | 3,575,000 | 2,506,965 |
| | Whittier City School District, Refunding, 3.306%, 8/01/43 | United States | | | 7,500,000 | 6,194,072 |
| | | | | | | 18,409,513 |
| | Ohio 0.0%† | | | | | |
| | Greenville City School District, Refunding, 3.541%, 1/01/51 | United States | | | 1,295,000 | 1,061,124 |
| | Total Municipal Bonds (Cost $23,704,011) | | | | | 19,470,637 |
| | Foreign Government and Agency Securities 0.7% | | | | | |
| | Chile Government International Bonds, 3.500%, 1/25/50 | Chile | | | 1,100,000 | 848,600 |
| | Peru Government International Bonds, 2.783%, 1/23/31 | Peru | | | 5,850,000 | 5,231,361 |
| a | African Export-Import Bank, 3.994%, 9/21/29 | Supranational | | | 6,100,000 | 5,677,575 |
| a | Banque Ouest Africaine de Developpement, 5.000%, 7/27/27 | Supranational | | | 3,800,000 | 3,723,800 |
| | Total Foreign Government and Agency Securities (Cost $17,342,288) | | | | | 15,481,336 |
| | Asset-Backed Security 0.3% | | | | | |
| a | New Economy Assets Phase 1 Sponsor LLC, Series 2021-1, Class A1, 1.91%, 10/20/61 | United States | | | 6,660,000 | 6,141,834 |
| | Total Asset-Backed Securities (Cost $6,610,760) | | | | | 6,141,834 |
| | Commercial Mortgage-Backed Securities 1.8% | | | | | |
| | Bank, | | | | | |
| | Series 2021-BN33, Class A5, 2.556%, 5/15/64 | United States | | | 2,780,000 | 2,469,822 |
| | b Series 2022-BNK40, Class A4, 3.506%, 3/15/64 | United States | | | 2,800,000 | 2,605,150 |
| | Benchmark Mortgage Trust, | | | | | |
| | Series 2021-B31, Class A5, 2.669%, 12/15/54 | United States | | | 2,780,000 | 2,460,201 |
| | b Series 2022-B32, Class A5, 3.002%, 1/15/55 | United States | | | 5,560,000 | 4,909,213 |
| | b Series 2023-V3, Class A3, 6.363%, 7/15/56 | United States | | | 540,000 | 572,941 |
| | BX Commercial Mortgage Trust, | | | | | |
| | a,b Series 2021-VOLT, Class B, 1 mo. USD Term SOFR + 1.06%, 6.161%, 9/15/36 | United States | | | 3,190,000 | 3,162,385 |
| | a,b Series 2022-LP2, Class A, 1 mo. USD Term SOFR + 1.01%, 6.109%, 2/15/39 | United States | | | 2,429,554 | 2,417,593 |
| a,b | BX Mortgage Trust, Series 2021-PAC, Class A, 1 mo. USD Term SOFR + 0.80%, 5.901%, 10/15/36 | United States | | | 3,090,000 | 3,063,873 |
| a,b | BX Trust, Series 2022-IND, Class A, 1 mo. USD Term SOFR + 1.49%, 6.588%, 4/15/37 | United States | | | 3,696,730 | 3,698,867 |
| | CFCRE Commercial Mortgage Trust, Series 2016-C7, Class A3, 3.839%, 12/10/54 | United States | | | 1,870,000 | 1,829,814 |
| | Citigroup Commercial Mortgage Trust, Series 2016-P4, Class A2, 2.45%, 7/10/49 | United States | | | 1,195,501 | 1,161,250 |
| | CSAIL Commercial Mortgage Trust, Series 2015-C3, Class A4, 3.718%, 8/15/48 | United States | | | 1,460,000 | 1,442,654 |
| a,b | DBCG Mortgage Trust, Series 2017-BBG, Class A, 8.50%, 6/15/34 | United States | | | 7,007,048 | 7,007,678 |
| | GS Mortgage Securities Trust, Series 2016-GS2, Class A4, 3.05%, 5/10/49 | United States | | | 850,000 | 828,639 |
| 119 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin U.S. Core Bond ETF (continued)
| | | Country | | | Principal Amount* | Value |
| | Commercial Mortgage-Backed Securities (continued) | | | | | |
| | JPMBB Commercial Mortgage Securities Trust, | | | | | |
| | Series 2016-C1, Class A5, 3.576%, 3/17/49 | United States | | | 2,773,000 | $ 2,727,837 |
| | Series 2015-C31, Class A3, 3.801%, 8/15/48 | United States | | | 2,169,413 | 2,140,271 |
| | Wells Fargo Commercial Mortgage Trust, Series 2015-C31, Class A4, 3.695%, 11/15/48 | United States | | | 1,000,000 | 987,483 |
| | Total Commercial Mortgage-Backed Securities (Cost $44,589,405) | | | | | 43,485,671 |
| | Total Investments before Short-Term Investments (Cost $2,382,020,077) | | | | | 2,338,275,118 |
| | Short-Term Investments 2.0% | | | | | |
| | Money Market Funds 2.0% | | | | | |
| c,d | Institutional Fiduciary Trust - Money Market Portfolio, 4.74% | United States | | | 47,058,720 | 47,058,720 |
| | Total Short-Term Investments (Cost $47,058,720) | | | | | 47,058,720 |
| | Total Investments (Cost $2,429,078,797) 100.5% | | | | | 2,385,333,838 |
| | Other Assets, less Liabilities (0.5)% | | | | | (12,892,634) |
| | Net Assets 100.0% | | | | | $ 2,372,441,204 |
| *The principal amount is stated in U.S. dollars unless otherwise indicated. |
| †Rounds to less than 0.1% of net assets. |
| aSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At September 30, 2024, the value of was $138,596,678, representing 5.8% of net assets. |
| bVariable rate security. The rate shown represents the yield at period end. |
| cThe rate shown is the annualized seven-day effective yield at period end. |
| dSee Note 3(d) regarding investments in affiliated management investment companies. |
| franklintempleton.com | Semi-Annual Report | 120 |
Franklin Templeton ETF Trust
Franklin U.S. Core Bond ETF (continued)
At September 30, 2024, the Fund had the following futures contracts outstanding. See Note 1(c).
Futures Contracts
| Description | Type | Number of
Contracts | Notional
Amount* | Expiration
Date | Value/Unrealized
Appreciation
(Depreciation) |
| Interest rate contracts | | | | | |
| U.S. Treasury 2 Yr. Note | Long | 266 | $ 55,392,422 | 12/31/24 | $ 113,959 |
| U.S. Treasury 5 Yr. Note | Long | 493 | 54,172,227 | 12/31/24 | 72,554 |
| U.S. Treasury Bond Ultra | Long | 24 | 3,194,250 | 12/19/24 | (9,038) |
| U.S. Treasury Ultra 10 Yr. Note | Short | 68 | 8,044,188 | 12/19/24 | 109,341 |
| Total Futures Contracts | | | | | $286,816 |
See Note 9 regarding other derivative information.
See Abbreviations on page 171.
| 121 | Semi-Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
Franklin Templeton ETF Trust
Financial Highlights
Franklin U.S. Treasury Bond ETF
| | Six Months Ended
September 30, 2024
(unaudited) | Year Ended March 31, | Period Ended March 31,
2021a |
| | 2024 | 2023 | 2022 |
| Per share operating performance | | | | | |
| (for a share outstanding throughout the period) | | | | | |
| Net asset value, beginning of period | $20.49 | $21.23 | $22.67 | $23.83 | $25.00 |
| Income from investment operationsb: | | | | | |
| Net investment incomec | 0.43 | 0.73 | 0.46 | 0.18 | 0.11 |
| Net realized and unrealized gains (losses) | 0.57 | (0.74) | (1.36) | (0.96) | (0.94) |
| Total from investment operations | 1.00 | (0.01) | (0.90) | (0.78) | (0.83) |
| Less distributions from net investment income | (0.42) | (0.73) | (0.54) | (0.38) | (0.34) |
| Net asset value, end of period | $21.07 | $20.49 | $21.23 | $22.67 | $23.83 |
| Total returnd | 4.99% | 0.01% | (3.95)% | (3.35)% | (3.36)% |
| Ratios to average net assetse | | | | | |
| Expenses before waiver and payments by affiliates | 0.09% | 0.09% | 0.09% | 0.28% | 0.50% |
| Expenses net of waiver and payments by affiliates | 0.09% | 0.09% | 0.08% | 0.09% | 0.09% |
| Net investment income | 4.18% | 3.58% | 2.16% | 0.77% | 0.54% |
| Supplemental data | | | | | |
| Net assets, end of period (000’s) | $886,949 | $715,104 | $428,756 | $403,543 | $418,199 |
| Portfolio turnover ratef | 102.49%g | 91.86%g | 148.40%g | 13.86%g | 102.09%g |
| aFor the period June 9, 2020 (commencement of operations) to March 31, 2021. |
| bThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of Creation Unit Fund shares in relation to income earned and/or fluctuating fair value of the investments of the Fund. |
| cBased on average daily shares outstanding. |
| dTotal return is not annualized for periods less than one year. Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. |
| eRatios are annualized for periods less than one year. |
| fPortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash ("Cash creations"). |
| gPortfolio turnover rate excluding cash creations was as follows: | 102.49% | 91.86% | 148.40% | 13.86% | 102.09% |
| franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Semi-Annual Report | 122 |
Franklin Templeton ETF Trust
Schedule of Investments, September 30, 2024 (unaudited)
Franklin U.S. Treasury Bond ETF
| | | Country | | | Principal Amount* | Value |
| | U.S. Government & Agency Securities 98.4% | | | | | |
| | U.S. Treasury Bonds, | | | | | |
| | 1.75%, 8/15/41 | United States | | | 9,450,000 | $ 6,704,147 |
| | 3.125%, 5/15/48 | United States | | | 143,500,000 | 119,231,124 |
| | 3.875%, 5/15/43 | United States | | | 13,400,000 | 12,905,352 |
| | 4.00%, 11/15/52 | United States | | | 8,250,000 | 8,030,215 |
| | 4.125%, 8/15/53 | United States | | | 15,700,000 | 15,639,285 |
| | 4.375%, 5/15/40 | United States | | | 4,750,000 | 4,966,255 |
| | 5.00%, 5/15/37 | United States | | | 2,200,000 | 2,458,758 |
| | U.S. Treasury Notes, | | | | | |
| | 1.125%, 2/29/28 | United States | | | 26,303,000 | 24,252,188 |
| | 1.125%, 2/15/31 | United States | | | 51,000,000 | 43,868,965 |
| | 1.25%, 4/30/28 | United States | | | 110,000,000 | 101,462,109 |
| | 1.25%, 9/30/28 | United States | | | 8,000,000 | 7,311,719 |
| | 1.25%, 8/15/31 | United States | | | 8,000,000 | 6,833,437 |
| | 1.375%, 11/15/31 | United States | | | 15,630,000 | 13,388,072 |
| | 1.875%, 2/15/32 | United States | | | 19,784,000 | 17,475,609 |
| | 2.625%, 2/15/29 | United States | | | 30,000,000 | 28,850,391 |
| | 2.875%, 5/15/32 | United States | | | 104,700,000 | 98,998,758 |
| | 3.50%, 1/31/30 | United States | | | 22,000,000 | 21,894,297 |
| | 3.75%, 12/31/30 | United States | | | 14,000,000 | 14,085,312 |
| | 4.00%, 1/31/31 | United States | | | 7,500,000 | 7,649,414 |
| | 4.125%, 10/31/27 | United States | | | 200,000,000 | 203,207,032 |
| | 4.25%, 6/30/31 | United States | | | 9,000,000 | 9,319,043 |
| | 4.375%, 5/15/34 | United States | | | 23,600,000 | 24,722,844 |
| | 4.50%, 11/15/25 | United States | | | 75,000,000 | 75,492,187 |
| | 4.625%, 6/30/26 | United States | | | 4,500,000 | 4,569,697 |
| | Total U.S. Government & Agency Securities (Cost $849,322,775) | | | | | 873,316,210 |
| | Total Investments before Short-Term Investments (Cost $849,322,775) | | | | | 873,316,210 |
| | Short-Term Investments 0.4% | | | | | |
| | Money Market Funds 0.4% | | | | | |
| | United States 0.4% | | | | | |
| a,b | Institutional Fiduciary Trust - Money Market Portfolio, 4.74% | United States | | | 3,300,341 | 3,300,341 |
| | Total Short-Term Investments (Cost $3,300,341) | | | | | 3,300,341 |
| | Total Investments (Cost $852,623,116) 98.8% | | | | | 876,616,551 |
| | Other Assets, less Liabilities 1.2% | | | | | 10,332,314 |
| | Net Assets 100.0% | | | | | $ 886,948,865 |
| *The principal amount is stated in U.S. dollars unless otherwise indicated. |
| aThe rate shown is the annualized seven-day effective yield at period end. |
| bSee Note 3(d) regarding investments in affiliated management investment companies. |
See Abbreviations on page 171.
| 123 | Semi-Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
Franklin Templeton ETF Trust
Financial Highlights
Franklin Ultra Short Bond ETF
| | Six Months Ended
September 30, 2024
(unaudited) | Year Ended March 31, | Period Ended March 31,
2021a |
| | 2024 | 2023 | 2022 |
| Per share operating performance | | | | | |
| (for a share outstanding throughout the period) | | | | | |
| Net asset value, beginning of period | $24.89 | $24.58 | $24.55 | $24.88 | $25.00 |
| Income from investment operationsb: | | | | | |
| Net investment incomec | 0.63 | 1.23 | 0.61 | 0.14 | 0.10 |
| Net realized and unrealized gains (losses) | 0.06 | 0.30 | (0.12) | (0.33) | 0.13 |
| Total from investment operations | 0.69 | 1.53 | 0.49 | (0.19) | 0.23 |
| Less distributions from: | | | | | |
| Net investment income | (0.61) | (1.22) | (0.46) | (0.14) | (0.33) |
| Net realized gains | — | — | — | — | (0.02) |
| Total distributions | (0.61) | (1.22) | (0.46) | (0.14) | (0.35) |
| Net asset value, end of period | $24.97 | $24.89 | $24.58 | $24.55 | $24.88 |
| Total returnd | 2.86% | 6.41% | 2.00% | (0.78)% | 0.91% |
| Ratios to average net assetse | | | | | |
| Expenses before waiver and payments by affiliates | 0.15% | 0.15% | 0.15% | 1.71% | 4.17% |
| Expenses net of waiver and payments by affiliates | 0.07% | 0.04% | 0.10% | 0.15% | 0.15% |
| Net investment income | 5.10% | 4.99% | 2.47% | 0.55% | 0.58% |
| Supplemental data | | | | | |
| Net assets, end of period (000’s) | $6,243 | $3,733 | $2,458 | $3,682 | $2,488 |
| Portfolio turnover ratef | 74.68%g | 38.70%g | 48.71%g | 24.71%g | 10.49%g |
| aFor the period July 14, 2020 (commencement of operations) to March 31, 2021. |
| bThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of Creation Unit Fund shares in relation to income earned and/or fluctuating fair value of the investments of the Fund. |
| cBased on average daily shares outstanding. |
| dTotal return is not annualized for periods less than one year. Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. |
| eRatios are annualized for periods less than one year. |
| fPortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash ("Cash creations"). |
| gPortfolio turnover rate excluding cash creations was as follows: | 74.68% | 38.70% | 48.71% | 24.17% | 10.49% |
| franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Semi-Annual Report | 124 |
Franklin Templeton ETF Trust
Schedule of Investments, September 30, 2024 (unaudited)
Franklin Ultra Short Bond ETF
| | | Country | | | Principal Amount* | Value |
| | Corporate Bonds & Notes 67.0% | | | | | |
| | Aerospace & Defense 1.6% | | | | | |
| | Northrop Grumman Corp., 2.93%, 1/15/25 | United States | | | 100,000 | $ 99,387 |
| | Apparel 1.6% | | | | | |
| | Tapestry, Inc., 7.05%, 11/27/25 | United States | | | 100,000 | 102,018 |
| | Auto Manufacturers 1.6% | | | | | |
| a | Hyundai Capital America, 5.80%, 6/26/25 | United States | | | 100,000 | 100,748 |
| | Banks 16.8% | | | | | |
| | Bank of New York Mellon Corp., 1.60%, 4/24/25 | United States | | | 100,000 | 98,305 |
| b | Canadian Imperial Bank of Commerce, 1 day USD SOFR Index + 0.93%, 5.854%, 9/11/27 | Canada | | | 100,000 | 100,290 |
| | Citigroup, Inc., 3.30%, 4/27/25 | United States | | | 100,000 | 99,173 |
| b | Goldman Sachs Group, Inc., 3 mo. USD Term SOFR + 1.43%, 6.55%, 5/15/26 | United States | | | 200,000 | 201,155 |
| | Morgan Stanley, 4.00%, 7/23/25 | United States | | | 100,000 | 99,701 |
| | Toronto-Dominion Bank, 5.55% to 11/29/24, FRN thereafter, 8/29/25 | Canada | | | 250,000 | 250,133 |
| | Wells Fargo & Co., 3.00%, 2/19/25 | United States | | | 100,000 | 99,282 |
| | Westpac Banking Corp., 5.35%, 10/18/24 | Australia | | | 100,000 | 100,009 |
| | | | | | | 1,048,048 |
| | Biotechnology 0.8% | | | | | |
| | Illumina, Inc., 4.65%, 9/09/26 | United States | | | 50,000 | 50,341 |
| | Electric 4.0% | | | | | |
| b | Pacific Gas & Electric Co., 1 day USD SOFR Index + 0.95%, 5.908%, 9/04/25 | United States | | | 250,000 | 250,112 |
| | Financial Services 11.2% | | | | | |
| | American Express Co., 3.95%, 8/01/25 | United States | | | 100,000 | 99,598 |
| | Capital One Financial Corp., 4.20%, 10/29/25 | United States | | | 200,000 | 198,647 |
| b | Charles Schwab Corp., 1 day USD SOFR Index + 0.52%, 5.614%, 5/13/26 | United States | | | 100,000 | 100,043 |
| | Jefferies Financial Group, Inc., 5.15%, 9/15/25 | United States | | | 300,000 | 300,442 |
| | | | | | | 698,730 |
| | Food 1.6% | | | | | |
| | Kroger Co., 4.70%, 8/15/26 | United States | | | 100,000 | 100,698 |
| | Health Care Providers & Services 3.2% | | | | | |
| | Cigna Group, 3.25%, 4/15/25 | United States | | | 100,000 | 99,231 |
| | Elevance Health, Inc., 2.375%, 1/15/25 | United States | | | 100,000 | 99,240 |
| | | | | | | 198,471 |
| | Healthcare-Products 3.1% | | | | | |
| | Boston Scientific Corp., 1.90%, 6/01/25 | United States | | | 100,000 | 98,178 |
| | Stryker Corp., 1.15%, 6/15/25 | United States | | | 100,000 | 97,655 |
| | | | | | | 195,833 |
| | Insurance 4.7% | | | | | |
| a | Equitable Financial Life Global Funding, 1.40%, 7/07/25 | United States | | | 100,000 | 97,535 |
| | Marsh & McLennan Cos., Inc., 3.50%, 3/10/25 | United States | | | 100,000 | 99,563 |
| a,b | Pacific Life Global Funding II, 1 day USD SOFR Index + 0.80%, 5.669%, 3/30/25 | United States | | | 100,000 | 100,235 |
| | | | | | | 297,333 |
| | Internet 1.6% | | | | | |
| a | Netflix, Inc., 3.625%, 6/15/25 | United States | | | 100,000 | 99,229 |
| | IT Services 1.6% | | | | | |
| | Dell International LLC/EMC Corp., 5.85%, 7/15/25 | United States | | | 100,000 | 100,785 |
| 125 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin Ultra Short Bond ETF (continued)
| | | Country | | | Principal Amount* | Value |
| | Corporate Bonds & Notes (continued) | | | | | |
| | Media 1.6% | | | | | |
| | Fox Corp., 3.05%, 4/07/25 | United States | | | 100,000 | $ 99,041 |
| | Pharmaceuticals 1.6% | | | | | |
| | CVS Health Corp., 4.10%, 3/25/25 | United States | | | 100,000 | 99,695 |
| | Pipelines 1.6% | | | | | |
| | Energy Transfer LP, 2.90%, 5/15/25 | United States | | | 100,000 | 98,782 |
| | Real Estate Investment Trusts (REITs) 3.2% | | | | | |
| | Alexandria Real Estate Equities, Inc., 3.45%, 4/30/25 | United States | | | 100,000 | 99,232 |
| | Boston Properties LP, 3.20%, 1/15/25 | United States | | | 100,000 | 99,358 |
| | | | | | | 198,590 |
| | Software 1.6% | | | | | |
| | Fiserv, Inc., 3.85%, 6/01/25 | United States | | | 100,000 | 99,318 |
| | Telecommunications 2.4% | | | | | |
| b | Verizon Communications, Inc., 3 mo. USD Term SOFR + 1.36%, 6.48%, 5/15/25 | United States | | | 150,000 | 150,739 |
| | Trucking & Leasing 1.6% | | | | | |
| a | Penske Truck Leasing Co. LP/PTL Finance Corp., 4.00%, 7/15/25 | United States | | | 100,000 | 99,412 |
| | Total Corporate Bonds & Notes (Cost $4,170,109) | | | | | 4,187,310 |
| | Total Investments before Short-Term Investments (Cost $4,170,109) | | | | | 4,187,310 |
| | Short-Term Investments 32.4% | | | | | |
| | Money Market Funds 32.4% | | | | | |
| | United States 32.4% | | | | | |
| c,d | Institutional Fiduciary Trust - Money Market Portfolio, 4.74% | United States | | | 2,021,189 | 2,021,189 |
| | Total Short-Term Investments (Cost $2,021,189) | | | | | 2,021,189 |
| | Total Investments (Cost $6,191,298) 99.4% | | | | | 6,208,499 |
| | Other Assets, less Liabilities 0.6% | | | | | 34,451 |
| | Net Assets 100.0% | | | | | $ 6,242,950 |
| *The principal amount is stated in U.S. dollars unless otherwise indicated. |
| aSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At September 30, 2024, the value of was $497,159, representing 8.0% of net assets. |
| bVariable rate security. The rate shown represents the yield at period end. |
| cThe rate shown is the annualized seven-day effective yield at period end. |
| dSee Note 3(d) regarding investments in affiliated management investment companies. |
See Abbreviations on page 171.
| franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Semi-Annual Report | 126 |
FRANKLIN TEMPLETON ETF TRUST
FINANCIAL STATEMENTS
Statements of Assets and Liabilities
September 30, 2024 (unaudited)
| | Franklin
Disruptive
Commerce
ETF | Franklin
Dynamic
Municipal
Bond ETF | Franklin
Exponential
Data ETF | Franklin
Focused
Growth
ETF |
| Assets: | | | | |
| Investments in securities: | | | | |
| Cost – Unaffiliated issuers | $ 8,243,174 | $ 312,580,491 | $ 4,723,785 | $ 84,706,857 |
| Cost – Non-controlled affiliates (Note 3d) | — | — | 119,199 | 2,158,906 |
| Value – Unaffiliated issuers | $ 10,194,014 | $ 321,512,753 | $ 5,811,235 | $ 122,749,884 |
| Value – Non-controlled affiliates (Note 3d) | — | — | 119,199 | 2,158,906 |
| Cash | 118,540 | 3,765,211 | — | — |
| Foreign currency, at value (cost $5 and $7,153, respectively) | 5 | — | 7,459 | — |
| Receivables: | | | | |
| Dividends and interest | 1,251 | 3,816,512 | 601 | 23,929 |
| Total assets | 10,313,810 | 329,094,476 | 5,938,494 | 124,932,719 |
| Liabilities: | | | | |
| Payables: | | | | |
| Investment securities purchased | — | 6,000,726 | 450 | 9,012 |
| Management fees | 4,082 | 73,474 | 2,344 | 54,155 |
| Total liabilities | 4,082 | 6,074,200 | 2,794 | 63,167 |
| Net assets, at value | $ 10,309,728 | $ 323,020,276 | $ 5,935,700 | $ 124,869,552 |
| Net assets consist of: | | | | |
| Paid-in capital | $ 19,013,642 | $ 318,673,010 | $ 5,733,896 | $ 98,197,501 |
| Total distributable earnings (loss) | (8,703,914) | 4,347,266 | 201,804 | 26,672,051 |
| Net assets, at value | $ 10,309,728 | $ 323,020,276 | $ 5,935,700 | $ 124,869,552 |
| Shares outstanding | 300,000 | 12,950,000 | 250,000 | 3,348,449 |
| Net asset value per share | $34.37 | $24.94 | $23.74 | $37.29 |
| 127 | Semi-Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
FINANCIAL STATEMENTS
Statements of Assets and Liabilities (continued)
September 30, 2024 (unaudited)
| | Franklin
Genomic
Advancements
ETF | Franklin
High Yield
Corporate ETF | Franklin
Income Equity
Focus ETF | Franklin
Income Focus
ETF |
| Assets: | | | | |
| Investments in securities: | | | | |
| Cost – Unaffiliated issuers | $ 10,097,340 | $ 564,609,442 | $ 89,148,199 | $ 302,196,095 |
| Value – Unaffiliated issuers | $ 9,660,358 | $ 570,395,279 | $ 95,962,149 | $ 321,131,248 |
| Cash | 61,615 | 836,174 | 42,589 | 10,153,628 |
| Foreign currency, at value (cost $7) | 7 | — | — | — |
| Receivables: | | | | |
| Capital shares sold | — | — | — | 2,713,740 |
| Dividends and interest | 2,429 | 9,220,951 | 460,692 | 2,832,530 |
| Investment securities sold | — | 15,728 | — | — |
| Total assets | 9,724,409 | 580,468,132 | 96,465,430 | 336,831,146 |
| Liabilities: | | | | |
| Payables: | | | | |
| Investment securities purchased | — | 6,400,432 | — | 4,317,622 |
| Management fees | 4,021 | 166,225 | 23,104 | 97,420 |
| Distributions to shareholders | — | — | 325,314 | 1,326,450 |
| Total liabilities | 4,021 | 6,566,657 | 348,418 | 5,741,492 |
| Net assets, at value | $ 9,720,388 | $ 573,901,475 | $ 96,117,012 | $ 331,089,654 |
| Net assets consist of: | | | | |
| Paid-in capital | $ 20,151,706 | $ 575,002,679 | $ 74,872,886 | $ 312,466,252 |
| Total distributable earnings (loss) | (10,431,318) | (1,101,204) | 21,244,126 | 18,623,402 |
| Net assets, at value | $ 9,720,388 | $ 573,901,475 | $ 96,117,012 | $ 331,089,654 |
| Shares outstanding | 300,000 | 23,500,000 | 1,650,000 | 12,200,000 |
| Net asset value per share | $32.40 | $24.42 | $58.25 | $27.14 |
| franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Semi-Annual Report | 128 |
FRANKLIN TEMPLETON ETF TRUST
FINANCIAL STATEMENTS
Statements of Assets and Liabilities (continued)
September 30, 2024 (unaudited)
| | Franklin
Intelligent
Machines
ETF | Franklin
International
Aggregate
Bond ETF | Franklin
Investment
Grade Corporate
ETF | Franklin Municipal
Green Bond
ETF |
| Assets: | | | | |
| Investments in securities: | | | | |
| Cost – Unaffiliated issuers | $ 18,886,544 | $ 565,124,955 | $ 597,334,376 | $ 105,530,747 |
| Value – Unaffiliated issuers | $ 25,107,017 | $ 575,790,610 | $ 581,106,159 | $ 107,382,504 |
| Cash | 203,516 | 1,500,425 | 527,741 | 63,892 |
| Collateral for forwards | — | 13,919,406 | — | — |
| Foreign currency, at value (cost $2 and $1,381,128, respectively) | 2 | 1,024,173 | — | — |
| Receivables: | | | | |
| Dividends and interest | 9,299 | 3,912,104 | 6,269,427 | 1,356,015 |
| Investment securities sold | — | — | 730,157 | — |
| Unrealized appreciation on OTC forward exchange contracts | — | 199,595 | — | — |
| Total assets | 25,319,834 | 596,346,313 | 588,633,484 | 108,802,411 |
| Liabilities: | | | | |
| Due to Custodian | — | — | 30 | — |
| Payables: | | | | |
| Investment securities purchased | — | — | 8,565,090 | — |
| Capital shares redeemed | — | — | — | 1,222,194 |
| Management fees | 9,985 | 119,059 | 148,715 | 27,070 |
| Unrealized depreciation on OTC forward exchange contracts | — | 12,667,428 | — | — |
| Total liabilities | 9,985 | 12,786,487 | 8,713,835 | 1,249,264 |
| Net assets, at value | $ 25,309,849 | $ 583,559,826 | $ 579,919,649 | $ 107,553,147 |
| Net assets consist of: | | | | |
| Paid-in capital | $ 21,004,068 | $ 603,003,448 | $ 655,080,602 | $ 117,396,745 |
| Total distributable earnings (loss) | 4,305,781 | (19,443,622) | (75,160,953) | (9,843,598) |
| Net assets, at value | $ 25,309,849 | $ 583,559,826 | $ 579,919,649 | $ 107,553,147 |
| Shares outstanding | 400,000 | 28,150,000 | 26,250,000 | 4,400,000 |
| Net asset value per share | $63.27 | $20.73 | $22.09 | $24.44 |
| 129 | Semi-Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
FINANCIAL STATEMENTS
Statements of Assets and Liabilities (continued)
September 30, 2024 (unaudited)
| | Franklin
Senior Loan
ETF | Franklin
Systematic Style
Premia ETF* | Franklin
U.S. Core
Bond ETF | Franklin
U.S. Treasury
Bond ETF |
| Assets: | | | | |
| Investments in securities: | | | | |
| Cost – Unaffiliated issuers | $ 599,787,194 | $ 170,643,049 | $ 2,382,020,077 | $ 849,322,775 |
| Cost – Non-controlled affiliates (Note 3d) | — | — | 47,058,720 | 3,300,341 |
| Value – Unaffiliated issuers | $ 596,428,713 | $ 190,398,737 | $ 2,338,275,118 | $ 873,316,210 |
| Value – Non-controlled affiliates (Note 3d) | — | — | 47,058,720 | 3,300,341 |
| Cash | 6,845,405 | 5,543,697 | — | 86 |
| Foreign currency, at value (cost $268,892) | — | 267,962 | — | — |
| Receivables: | | | | |
| Capital shares sold | — | — | 5,499,386 | 14,747,468 |
| Dividends and interest | 5,145,892 | 486,193 | 14,776,012 | 9,903,299 |
| Investment securities sold | 4,996,213 | — | — | — |
| Deposits with brokers for: | | | | |
| Futures contracts | — | 7,995,265 | 963,880 | — |
| Swap contracts | — | 3,726,985 | — | — |
| Unrealized appreciation on OTC forward exchange contracts | — | 1,576,065 | — | — |
| Unrealized appreciation on unfunded commitments (Note 12) | 836 | — | — | — |
| Total assets | 613,417,059 | 209,994,904 | 2,406,573,116 | 901,267,404 |
| Liabilities: | | | | |
| Payables: | | | | |
| Investment securities purchased | 26,684,775 | — | 33,447,017 | 14,255,161 |
| Management fees | 215,564 | 101,532 | 272,186 | 63,378 |
| Transfer agent fees | — | 2,511 | — | — |
| Custodian fees | — | 402 | — | — |
| Variation margin on futures contracts | — | 368,534 | 386,792 | — |
| Funds advanced by custodian | — | — | 25,917 | — |
| Unrealized depreciation on OTC forward exchange contracts | — | 698,551 | — | — |
| Unrealized depreciation on OTC swap contracts | — | 3,053,159 | — | — |
| Accrued expenses and other liabilities | — | 5 | — | — |
| Total liabilities | 26,900,339 | 4,224,694 | 34,131,912 | 14,318,539 |
| Net assets, at value | $ 586,516,720 | $ 205,770,210 | $ 2,372,441,204 | $ 886,948,865 |
| Net assets consist of: | | | | |
| Paid-in capital | $ 597,349,325 | $ 195,360,476 | $ 2,569,039,862 | $ 945,651,183 |
| Total distributable earnings (loss) | (10,832,605) | 10,409,734 | (196,598,658) | (58,702,318) |
| Net assets, at value | $ 586,516,720 | $ 205,770,210 | $ 2,372,441,204 | $ 886,948,865 |
| Shares outstanding | 24,150,000 | 8,550,000 | 107,850,000 | 42,100,000 |
| Net asset value per share | $24.29 | $24.07 | $22.00 | $21.07 |
| aConsolidated financial statements. Note 11. |
| franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Semi-Annual Report | 130 |
FRANKLIN TEMPLETON ETF TRUST
FINANCIAL STATEMENTS
Statements of Assets and Liabilities (continued)
September 30, 2024 (unaudited)
| | Franklin
Ultra Short
Bond ETF |
| Assets: | |
| Investments in securities: | |
| Cost – Unaffiliated issuers | $ 4,170,109 |
| Cost – Non-controlled affiliates (Note 3d) | 2,021,189 |
| Value – Unaffiliated issuers | $ 4,187,310 |
| Value – Non-controlled affiliates (Note 3d) | 2,021,189 |
| Receivables: | |
| Dividends and interest | 45,692 |
| Total assets | 6,254,191 |
| Liabilities: | |
| Payables: | |
| Investment securities purchased | 10,717 |
| Management fees | 524 |
| Total liabilities | 11,241 |
| Net assets, at value | $ 6,242,950 |
| Net assets consist of: | |
| Paid-in capital | $ 6,236,026 |
| Total distributable earnings (loss) | 6,924 |
| Net assets, at value | $ 6,242,950 |
| Shares outstanding | 250,000 |
| Net asset value per share | $24.97 |
| 131 | Semi-Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
FINANCIAL STATEMENTS
| | Franklin
Disruptive
Commerce
ETF | Franklin
Dynamic
Municipal
Bond ETF | Franklin
Exponential
Data ETF | Franklin
Focused
Growth
ETF |
| Investment income: | | | | |
| Dividends: (net of foreign taxes)a | | | | |
| Unaffiliated issuers | $ 23,110 | $ — | $ 13,142 | $ 157,674 |
| Non-Controlled affiliates (Note 3d) | — | — | 2,419 | 31,695 |
| Interest: | | | | |
| Unaffiliated issuers | — | 5,540,019 | — | 819 |
| Total investment income | 23,110 | 5,540,019 | 15,561 | 190,188 |
| Expenses: | | | | |
| Management fees (Note 3a) | 25,403 | 363,824 | 15,367 | 251,248 |
| Total expenses | 25,403 | 363,824 | 15,367 | 251,248 |
| Expenses waived/paid by affiliates (Note 3d) | — | — | (176) | (2,217) |
| Net expenses | 25,403 | 363,824 | 15,191 | 249,031 |
| Net investment income | (2,293) | 5,176,195 | 370 | (58,843) |
| Realized and unrealized gains (losses): | | | | |
| Net realized gain (loss) from: | | | | |
| Investments: | | | | |
| Unaffiliated issuers | (130,944) | 14,695 | (193,402) | (104,517) |
| In-kind redemptions | 383,832 | — | 446,368 | 1,206,965 |
| Foreign currency transactions | (7) | — | — | (499) |
| Net realized gain (loss) | 252,881 | 14,695 | 252,966 | 1,101,949 |
| Net change in unrealized appreciation (depreciation) on: | | | | |
| Investments: | | | | |
| Unaffiliated issuers | 316,658 | 5,709,678 | 8,362 | 8,453,032 |
| Translation of other assets and liabilities denominated in foreign currencies | 9 | — | 402 | — |
| Net change in unrealized appreciation (depreciation) | 316,667 | 5,709,678 | 8,764 | 8,453,032 |
| Net realized and unrealized gain (loss) | 569,548 | 5,724,373 | 261,730 | 9,554,981 |
| Net increase (decrease) in net assets resulting from operations | $567,255 | $10,900,568 | $262,100 | $9,496,138 |
| aForeign taxes withheld on dividends | $100 | $— | $— | $4,403 |
| franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Semi-Annual Report | 132 |
FRANKLIN TEMPLETON ETF TRUST
FINANCIAL STATEMENTS
Statements of Operations (continued)
| | Franklin
Genomic
Advancements
ETF | Franklin
High Yield
Corporate ETF | Franklin
Income Equity
Focus ETF | Franklin
Income Focus
ETF |
| Investment income: | | | | |
| Dividends: (net of foreign taxes)a | | | | |
| Unaffiliated issuers | $ 10,874 | $ — | $ 1,251,775 | $ 1,393,619 |
| Interest: | | | | |
| Unaffiliated issuers | 731 | 11,564,407 | 466,871 | 5,715,742 |
| Total investment income | 11,605 | 11,564,407 | 1,718,646 | 7,109,361 |
| Expenses: | | | | |
| Management fees (Note 3a) | 24,085 | 665,333 | 157,143 | 482,652 |
| Total expenses | 24,085 | 665,333 | 157,143 | 482,652 |
| Net investment income | (12,480) | 10,899,074 | 1,561,503 | 6,626,709 |
| Realized and unrealized gains (losses): | | | | |
| Net realized gain (loss) from: | | | | |
| Investments: | | | | |
| Unaffiliated issuers | (535,829) | 638,568 | (1,910,211) | (173,996) |
| In-kind redemptions | — | 70,593 | 20,637,013 | — |
| Written options | — | — | — | 79,125 |
| Foreign currency transactions | (21) | — | (90) | — |
| Net realized gain (loss) | (535,850) | 709,161 | 18,726,712 | (94,871) |
| Net change in unrealized appreciation (depreciation) on: | | | | |
| Investments: | | | | |
| Unaffiliated issuers | 443,129 | 10,148,884 | (12,387,969) | 13,933,286 |
| Translation of other assets and liabilities denominated in foreign currencies | 57 | — | 125 | — |
| Written options | — | — | — | 54,922 |
| Net change in unrealized appreciation (depreciation) | 443,186 | 10,148,884 | (12,387,844) | 13,988,208 |
| Net realized and unrealized gain (loss) | (92,664) | 10,858,045 | 6,338,868 | 13,893,337 |
| Net increase (decrease) in net assets resulting from operations | $(105,144) | $21,757,119 | $7,900,371 | $20,520,046 |
| aForeign taxes withheld on dividends | $314 | $— | $6,912 | $19,758 |
| 133 | Semi-Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
FINANCIAL STATEMENTS
Statements of Operations (continued)
| | Franklin
Intelligent
Machines
ETF | Franklin
International
Aggregate
Bond ETF | Franklin
Investment
Grade Corporate
ETF | Franklin Municipal
Green Bond
ETF |
| Investment income: | | | | |
| Dividends: (net of foreign taxes)a | | | | |
| Unaffiliated issuers | $ 44,735 | $ — | $ — | $ — |
| Interest: (net of foreign taxes)b | | | | |
| Unaffiliated issuers | 2,342 | 7,018,798 | 9,004,040 | 2,110,296 |
| Total investment income | 47,077 | 7,018,798 | 9,004,040 | 2,110,296 |
| Expenses: | | | | |
| Management fees (Note 3a) | 57,841 | 678,960 | 705,979 | 163,358 |
| Total expenses | 57,841 | 678,960 | 705,979 | 163,358 |
| Net investment income | (10,764) | 6,339,838 | 8,298,061 | 1,946,938 |
| Realized and unrealized gains (losses): | | | | |
| Net realized gain (loss) from: | | | | |
| Investments: | | | | |
| Unaffiliated issuers | (189,853) | (269,048) | (6,051,043) | (19,429) |
| In-kind redemptions | — | — | 15,365 | — |
| Foreign currency transactions | (479) | 1,847,745 | — | — |
| Forward exchange contracts | — | 3,127,689 | — | — |
| Net realized gain (loss) | (190,332) | 4,706,386 | (6,035,678) | (19,429) |
| Net change in unrealized appreciation (depreciation) on: | | | | |
| Investments: | | | | |
| Unaffiliated issuers | 2,090,278 | 24,878,744 | 20,209,020 | 1,908,904 |
| Translation of other assets and liabilities denominated in foreign currencies | 37 | (1,712,619) | — | — |
| Forward exchange contracts | — | (19,047,276) | — | — |
| Net change in unrealized appreciation (depreciation) | 2,090,315 | 4,118,849 | 20,209,020 | 1,908,904 |
| Net realized and unrealized gain (loss) | 1,899,983 | 8,825,235 | 14,173,342 | 1,889,475 |
| Net increase (decrease) in net assets resulting from operations | $1,889,219 | $15,165,073 | $22,471,403 | $3,836,413 |
| aForeign taxes withheld on dividends | $3,742 | $— | $— | $— |
| bForeign taxes withheld on interest | $— | $32 | $— | $— |
| franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Semi-Annual Report | 134 |
FRANKLIN TEMPLETON ETF TRUST
FINANCIAL STATEMENTS
Statements of Operations (continued)
| | Franklin
Senior Loan
ETF | Franklin
Systematic Style
Premia ETF* | Franklin
U.S. Core
Bond ETF | Franklin
U.S. Treasury
Bond ETF |
| Investment income: | | | | |
| Dividends: (net of foreign taxes)a | | | | |
| Unaffiliated issuers | $ — | $ 1,188,587 | $ — | $ — |
| Non-Controlled affiliates (Note 3d) | — | — | 1,129,914 | 187,503 |
| Interest: | | | | |
| Unaffiliated issuers | 21,158,685 | 1,686,565 | 38,943,489 | 16,524,774 |
| Total investment income | 21,158,685 | 2,875,152 | 40,073,403 | 16,712,277 |
| Expenses: | | | | |
| Management fees (Note 3a) | 1,087,497 | 641,484 | 1,456,304 | 352,065 |
| Transfer agent fees | — | 3,761 | — | — |
| Custodian fees | — | 602 | — | — |
| Other | — | 2,789 | — | — |
| Total expenses | 1,087,497 | 648,636 | 1,456,304 | 352,065 |
| Expenses waived/paid by affiliates (Note 3c) | — | (51,275) | — | — |
| Expenses waived/paid by affiliates (Note 3d) | — | — | (41,700) | (4,798) |
| Net expenses | 1,087,497 | 597,361 | 1,414,604 | 347,267 |
| Net investment income | 20,071,188 | 2,277,791 | 38,658,799 | 16,365,010 |
| Realized and unrealized gains (losses): | | | | |
| Net realized gain (loss) from: | | | | |
| Investments: | | | | |
| Unaffiliated issuers | (2,459,852) | 3,328,398 | (2,001,099) | (10,612,145) |
| Foreign currency transactions | — | 7,850 | — | — |
| Forward exchange contracts | — | (648,952) | — | — |
| Futures contracts | — | 1,951,820 | 1,877,911 | — |
| Net realized gain (loss) | (2,459,852) | 4,639,116 | (123,188) | (10,612,145) |
| Net change in unrealized appreciation (depreciation) on: | | | | |
| Investments: | | | | |
| Unaffiliated issuers | (1,631,403) | (1,052,549) | 64,635,419 | 33,586,130 |
| Translation of other assets and liabilities denominated in foreign currencies | — | (6,967) | — | — |
| Futures contracts | — | (2,317,535) | 270,709 | — |
| Swap contracts | — | (3,053,159) | — | — |
| Forward exchange contracts | — | 1,049,731 | — | — |
| Unfunded loan commitments (Note 12) | 836 | — | — | — |
| Net change in unrealized appreciation (depreciation) | (1,630,567) | (5,380,479) | 64,906,128 | 33,586,130 |
| Net realized and unrealized gain (loss) | (4,090,419) | (741,363) | 64,782,940 | 22,973,985 |
| Net increase (decrease) in net assets resulting from operations | $15,980,769 | $1,536,428 | $103,441,739 | $39,338,995 |
| aForeign taxes withheld on dividends | $— | $62,863 | $— | $— |
| *Consolidated financial statements. Note 11. |
| 135 | Semi-Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
FINANCIAL STATEMENTS
Statements of Operations (continued)
| | Franklin
Ultra Short
Bond ETF |
| Investment income: | |
| Dividends: | |
| Non-Controlled affiliates (Note 3d) | $ 62,276 |
| Interest: | |
| Unaffiliated issuers | 84,238 |
| Total investment income | 146,514 |
| Expenses: | |
| Management fees (Note 3a) | 4,247 |
| Total expenses | 4,247 |
| Expenses waived/paid by affiliates (Note 3d) | (2,151) |
| Net expenses | 2,096 |
| Net investment income | 144,418 |
| Realized and unrealized gains (losses): | |
| Net realized gain (loss) from: | |
| Investments: | |
| Unaffiliated issuers | 6,493 |
| Net realized gain (loss) | 6,493 |
| Net change in unrealized appreciation (depreciation) on: | |
| Investments: | |
| Unaffiliated issuers | 10,386 |
| Net change in unrealized appreciation (depreciation) | 10,386 |
| Net realized and unrealized gain (loss) | 16,879 |
| Net increase (decrease) in net assets resulting from operations | $161,297 |
| franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Semi-Annual Report | 136 |
FRANKLIN TEMPLETON ETF TRUST
FINANCIAL STATEMENTS
Statements of Changes in Net Assets
| | Franklin Disruptive Commerce ETF | Franklin Dynamic Municipal
Bond ETF |
| | Six Months Ended
September 30, 2024 | Year Ended
March 31, 2024 | Six Months Ended
September 30, 2024 | Year Ended
March 31, 2024 |
| Increase (decrease) in net assets: | | | | |
| Operations: | | | | |
| Net investment income | $ (2,293) | $ 12,140 | $ 5,176,195 | $ 5,463,076 |
| Net realized gain (loss) | 252,881 | 118,326 | 14,695 | (1,964,769) |
| Net change in unrealized appreciation (depreciation) | 316,667 | 3,060,150 | 5,709,678 | 6,568,758 |
| Net increase (decrease) in net assets resulting from operations | 567,255 | 3,190,616 | 10,900,568 | 10,067,065 |
| Distributions to shareholders (Note 1i) | — | — | (4,831,283) | (5,140,431) |
| Capital share transactions: (Note 2) | (1,559,264) | (1,507,954) | 120,357,792 | 90,169,325 |
| Net increase (decrease) in net assets | (992,009) | 1,682,662 | 126,427,077 | 95,095,959 |
| Net assets: | | | | |
| Beginning of period | 11,301,737 | 9,619,075 | 196,593,199 | 101,497,240 |
| End of period | $ 10,309,728 | $ 11,301,737 | $ 323,020,276 | $ 196,593,199 |
| 137 | Semi-Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
FINANCIAL STATEMENTS
Statements of Changes in Net Assets (continued)
| | Franklin Exponential Data ETF | Franklin Focused Growth ETF* |
| | Six Months Ended
September 30, 2024 | Year Ended
March 31, 2024 | Six Months Ended
September 30, 2024 | Period Ended
March 31, 2024† | Year Ended
September 30, 2023 |
| Increase (decrease) in net assets: | | | | | |
| Operations: | | | | | |
| Net investment income | $ 370 | $ 6,906 | $ (58,843) | $ 43,467 | $ (360,978) |
| Net realized gain (loss) | 252,966 | (228,085) | 1,101,949 | 4,659,721 | (3,216,781) |
| Net change in unrealized appreciation (depreciation) | 8,764 | 1,365,010 | 8,453,032 | 13,410,764 | 24,153,683 |
| Net increase (decrease) in net assets resulting from operations | 262,100 | 1,143,831 | 9,496,138 | 18,113,952 | 20,575,924 |
| Distributions to shareholders (Note 1i) | — | — | — | — | — |
| Capital share transactions: (Note 2) | (1,140,435) | 2,298,068 | 47,587,948 | (27,824,046) | (10,349,084) |
| Class A | — | — | — | (58,772,685) | (11,501,059) |
| Class C | — | — | — | (5,148,740) | (25,915) |
| Class R | — | — | — | (1,122,328) | 130,411 |
| Class R6 | — | — | — | — | (70,140) |
| Capital Transaction | — | — | — | 37,219,707 | 1,117,619 |
| Total capital share transactions | — | — | — | (27,824,046) | (10,349,084) |
| Net increase (decrease) in net assets | (878,335) | 3,441,899 | 57,084,086 | (9,710,094) | 10,226,840 |
| Net assets: | | | | | |
| Beginning of period | 6,814,035 | 3,372,136 | 67,785,466 | 77,495,560 | 67,268,720 |
| End of period | $ 5,935,700 | $ 6,814,035 | $ 124,869,552 | $ 67,785,466 | $ 77,495,560 |
| *Effective after the market close on November 3, 2023, the Fund’s predecessor mutual fund, Franklin Focused Growth Fund, reorganized into this Fund (the “Reorganization”). See Note 1 in the Notes to Financial Statements for additional information about the Reorganization. |
| †For the period October 1, 2023 through March 31, 2024. |
| franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Semi-Annual Report | 138 |
FRANKLIN TEMPLETON ETF TRUST
FINANCIAL STATEMENTS
Statements of Changes in Net Assets (continued)
| | Franklin Genomic Advancements ETF | Franklin High Yield
Corporate ETF |
| | Six Months Ended
September 30, 2024 | Year Ended
March 31, 2024 | Six Months Ended
September 30, 2024 | Year Ended
March 31, 2024 |
| Increase (decrease) in net assets: | | | | |
| Operations: | | | | |
| Net investment income | $ (12,480) | $ (15,107) | $ 10,899,074 | $ 14,585,453 |
| Net realized gain (loss) | (535,850) | (817,580) | 709,161 | (3,689,325) |
| Net change in unrealized appreciation (depreciation) | 443,186 | 1,875,028 | 10,148,884 | 15,577,700 |
| Net increase (decrease) in net assets resulting from operations | (105,144) | 1,042,341 | 21,757,119 | 26,473,828 |
| Distributions to shareholders (Note 1i) | — | — | (9,839,805) | (15,176,528) |
| Capital share transactions: (Note 2) | — | (1,858,283) | 292,787,714 | 49,731,783 |
| Net increase (decrease) in net assets | (105,144) | (815,942) | 304,705,028 | 61,029,083 |
| Net assets: | | | | |
| Beginning of period | 9,825,532 | 10,641,474 | 269,196,447 | 208,167,364 |
| End of period | $ 9,720,388 | $ 9,825,532 | $ 573,901,475 | $ 269,196,447 |
| 139 | Semi-Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
FINANCIAL STATEMENTS
Statements of Changes in Net Assets (continued)
| | Franklin Income Equity Focus ETF | Franklin Income
Focus ETF |
| | Six Months Ended
September 30, 2024 | Year Ended
March 31, 2024 | Six Months Ended
September 30, 2024 | Period Ended
March 31, 2024a |
| Increase (decrease) in net assets: | | | | |
| Operations: | | | | |
| Net investment income | $ 1,561,503 | $ 2,525,593 | $ 6,626,709 | $ 5,237,551 |
| Net realized gain (loss) | 18,726,712 | 15,754,657 | (94,871) | (294,699) |
| Net change in unrealized appreciation (depreciation) | (12,387,844) | 4,383,562 | 13,988,208 | 4,946,945 |
| Net increase (decrease) in net assets resulting from operations | 7,900,371 | 22,663,812 | 20,520,046 | 9,889,797 |
| Distributions to shareholders (Note 1i) | (1,719,950) | (2,439,590) | (7,249,483) | (4,536,958) |
| Capital share transactions: (Note 2) | (30,277,606) | (55,622,694) | 140,785,665 | 171,680,587 |
| Net increase (decrease) in net assets | (24,097,185) | (35,398,472) | 154,056,228 | 177,033,426 |
| Net assets: | | | | |
| Beginning of period | 120,214,197 | 155,612,669 | 177,033,426 | — |
| End of period | $ 96,117,012 | $ 120,214,197 | $ 331,089,654 | $ 177,033,426 |
| aFor the period June 06, 2023 (commencement of operations) to March 31, 2024. |
| franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Semi-Annual Report | 140 |
FRANKLIN TEMPLETON ETF TRUST
FINANCIAL STATEMENTS
Statements of Changes in Net Assets (continued)
| | Franklin Intelligent Machines ETF | Franklin International
Aggregate Bond ETF |
| | Six Months Ended
September 30, 2024 | Year Ended
March 31, 2024 | Six Months Ended
September 30, 2024 | Year Ended
March 31, 2024 |
| Increase (decrease) in net assets: | | | | |
| Operations: | | | | |
| Net investment income | $ (10,764) | $ (12,644) | $ 6,339,838 | $ 8,746,290 |
| Net realized gain (loss) | (190,332) | 1,641,253 | 4,706,386 | (5,814,737) |
| Net change in unrealized appreciation (depreciation) | 2,090,315 | 2,843,213 | 4,118,849 | 15,395,007 |
| Net increase (decrease) in net assets resulting from operations | 1,889,219 | 4,471,822 | 15,165,073 | 18,326,560 |
| Distributions to shareholders (Note 1i) | — | — | — | (4,135,239) |
| Capital share transactions: (Note 2) | 3,001,971 | 7,114,639 | 78,927,227 | 199,112,461 |
| Net increase (decrease) in net assets | 4,891,190 | 11,586,461 | 94,092,300 | 213,303,782 |
| Net assets: | | | | |
| Beginning of period | 20,418,659 | 8,832,198 | 489,467,526 | 276,163,744 |
| End of period | $ 25,309,849 | $ 20,418,659 | $ 583,559,826 | $ 489,467,526 |
| 141 | Semi-Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
FINANCIAL STATEMENTS
Statements of Changes in Net Assets (continued)
| | Franklin Investment Grade
Corporate ETF | Franklin Municipal Green Bond ETF |
| | Six Months Ended
September 30, 2024 | Year Ended
March 31, 2024 | Six Months Ended
September 30, 2024 | Year Ended
March 31, 2024 |
| Increase (decrease) in net assets: | | | | |
| Operations: | | | | |
| Net investment income | $ 8,298,061 | $ 23,323,744 | $ 1,946,938 | $ 3,798,043 |
| Net realized gain (loss) | (6,035,678) | (37,195,708) | (19,429) | (2,366,367) |
| Net change in unrealized appreciation (depreciation) | 20,209,020 | 35,330,966 | 1,908,904 | 3,191,280 |
| Net increase (decrease) in net assets resulting from operations | 22,471,403 | 21,459,002 | 3,836,413 | 4,622,956 |
| Distributions to shareholders (Note 1i) | (8,239,598) | (26,347,663) | (2,054,861) | (4,038,600) |
| Capital share transactions: (Note 2) | 201,535,812 | (275,321,896) | (7,182,850) | 21,159 |
| Net increase (decrease) in net assets | 215,767,617 | (280,210,557) | (5,401,298) | 605,515 |
| Net assets: | | | | |
| Beginning of period | 364,152,032 | 644,362,589 | 112,954,445 | 112,348,930 |
| End of period | $ 579,919,649 | $ 364,152,032 | $ 107,553,147 | $ 112,954,445 |
| franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Semi-Annual Report | 142 |
FRANKLIN TEMPLETON ETF TRUST
FINANCIAL STATEMENTS
Statements of Changes in Net Assets (continued)
| | Franklin Senior Loan ETF | Franklin Systematic Style
Premia ETF |
| | Six Months Ended
September 30, 2024 | Year Ended
March 31, 2024 | Six Months Ended
September 30, 2024 | Year Ended
March 31, 2024 |
| Increase (decrease) in net assets: | | | | |
| Operations: | | | | |
| Net investment income | $ 20,071,188 | $ 22,291,245 | $ 2,277,791 | $ 2,606,425 |
| Net realized gain (loss) | (2,459,852) | (1,059,035) | 4,639,116 | (1,527,885) |
| Net change in unrealized appreciation (depreciation) | (1,630,567) | 6,585,296 | (5,380,479) | 14,906,975 |
| Net increase (decrease) in net assets resulting from operations | 15,980,769 | 27,817,506 | 1,536,428 | 15,985,515 |
| Distributions to shareholders (Note 1i) | (18,504,922) | (21,412,594) | — | (1,644,064) |
| Capital share transactions: (Note 2) | 260,553,433 | 115,962,257 | 20,079,883 | 78,666,508 |
| Net increase (decrease) in net assets | 258,029,280 | 122,367,169 | 21,616,311 | 93,007,959 |
| Net assets: | | | | |
| Beginning of period | 328,487,440 | 206,120,271 | 184,153,899 | 91,145,940 |
| End of period | $ 586,516,720 | $ 328,487,440 | $ 205,770,210 | $ 184,153,899 |
| 143 | Semi-Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
FINANCIAL STATEMENTS
Statements of Changes in Net Assets (continued)
| | Franklin U.S. Core Bond ETF | Franklin U.S. Treasury Bond ETF |
| | Six Months Ended
September 30, 2024 | Year Ended
March 31, 2024 | Six Months Ended
September 30, 2024 | Year Ended
March 31, 2024 |
| Increase (decrease) in net assets: | | | | |
| Operations: | | | | |
| Net investment income | $ 38,658,799 | $ 58,979,850 | $ 16,365,010 | $ 17,426,625 |
| Net realized gain (loss) | (123,188) | (36,889,503) | (10,612,145) | (14,020,045) |
| Net change in unrealized appreciation (depreciation) | 64,906,128 | 17,144,232 | 33,586,130 | (3,205,180) |
| Net increase (decrease) in net assets resulting from operations | 103,441,739 | 39,234,579 | 39,338,995 | 201,400 |
| Distributions to shareholders (Note 1i) | (40,193,681) | (58,908,890) | (15,903,957) | (16,803,834) |
| Capital share transactions: (Note 2) | 532,581,612 | 284,594,988 | 148,409,345 | 302,950,961 |
| Net increase (decrease) in net assets | 595,829,670 | 264,920,677 | 171,844,383 | 286,348,527 |
| Net assets: | | | | |
| Beginning of period | 1,776,611,534 | 1,511,690,857 | 715,104,482 | 428,755,955 |
| End of period | $ 2,372,441,204 | $ 1,776,611,534 | $ 886,948,865 | $ 715,104,482 |
| franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Semi-Annual Report | 144 |
FRANKLIN TEMPLETON ETF TRUST
FINANCIAL STATEMENTS
Statements of Changes in Net Assets (continued)
| | Franklin Ultra Short Bond ETF |
| | Six Months Ended
September 30, 2024 | Year Ended
March 31, 2024 |
| Increase (decrease) in net assets: | | |
| Operations: | | |
| Net investment income | $ 144,418 | $ 130,917 |
| Net realized gain (loss) | 6,493 | 1,043 |
| Net change in unrealized appreciation (depreciation) | 10,386 | 30,253 |
| Net increase (decrease) in net assets resulting from operations | 161,297 | 162,213 |
| Distributions to shareholders (Note 1i) | (131,073) | (126,651) |
| Capital share transactions: (Note 2) | 2,479,962 | 1,239,556 |
| Net increase (decrease) in net assets | 2,510,186 | 1,275,118 |
| Net assets: | | |
| Beginning of period | 3,732,764 | 2,457,646 |
| End of period | $ 6,242,950 | $ 3,732,764 |
| 145 | Semi-Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
Notes to Financial Statements (unaudited)
1. Organization and Significant Accounting Policies
Franklin Templeton ETF Trust (Trust) is registered under the Investment Company Act of 1940 (1940 Act) as an open-end management investment company consisting of forty-nine separate funds, seventeen of which are included in this report (Funds). The Funds follow the accounting and reporting guidance in Financial Accounting Standards Board ("FASB") Accounting Standard Codification Topic 946, Financial Services - Investment Companies ("ASC 946"), and applies the specialized accounting and reporting guidance in U.S. Generally Accepted Accounting Principles (U.S. GAAP), including, but not limited to, ASC 946. The Funds are exchange traded funds (ETF) and are actively managed, thus they are not designed to track an index.
Effective May 31, 2024, Franklin U.S. Low Volatility ETF was renamed to Franklin Income Equity Focus ETF
Effective June 6, 2023, the Trust began offering shares of Franklin Income Focus ETF. Each of the Funds are an exchange traded funds (ETF) and are actively managed, thus they are not designed to track an index.
The Franklin Focused Growth ETF adopted the performance of the Franklin Focused Growth Fund (the "predecessor mutual fund") as the result of a reorganization of the predecessor mutual fund into the fund (the "Reorganization") that was effective after the market close on November 3, 2023. Prior to the Reorganization, the Fund had not yet commenced operations. The returns shown for periods ended on or prior to November 3, 2023 are those of the predecessor mutual fund. The predecessor mutual fund’s performance is represented by the performance of the predecessor mutual fund’s Advisor Class Shares.
Prior to the Franklin Focused Growth ETF’s listing on November 6, 2023, the NAV performance of the Advisor Class Shares of the predecessor mutual fund is used as a proxy for the Fund’s market price returns. Had the predecessor mutual fund have been structured as an ETF, its performance may have differed.
State Street Bank and Trust Company, serves as the Funds’ Custodian and Transfer Agent pursuant to a Global Custodial and Agency Services Agreement with the Trust. American Stock Transfer & Trust Company, LLC serves as stock transfer agent for the Acquiring Fund listed above. Prior to the Reorganizations, The JPM was the Custodian and Franklin Templeton Investor Services, LLC was the Transfer Agent for the Target Fund.
The following summarizes the Funds’ significant accounting policies.
a. Financial Instrument Valuation
The Funds’ investments in financial instruments are carried at fair value daily. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. The Funds calculates the net asset value (NAV) per share each business day as of 4 p.m. Eastern time or the regularly scheduled close of the New York Stock Exchange (NYSE), whichever is earlier. Under compliance policies and procedures approved by the Trust’s Board of Trustees (the Board), the Board has designated the Fund’s investment manager as the valuation designee and has responsibility for oversight of valuation. The investment manager is assisted by the Fund’s administrator in performing this responsibility, including leading the cross-functional Valuation Committee (VC).
The Funds may utilize independent pricing services, quotations from securities and financial instrument dealers, and other market sources to determine fair value.
Equity securities and exchange traded funds listed on an exchange or on the NASDAQ National Market System are valued at the last quoted sale price or the official closing price of the day, respectively. Foreign equity securities are valued as of the close of trading on the foreign stock exchange on which the security is primarily traded or as of 4 p.m. Eastern time. The value is then converted into its U.S. dollar equivalent at the foreign exchange rate in effect at 4 p.m. London time on the day that the value of the security is determined. Over-the-counter (OTC) securities are valued within the range of the most recent quoted bid and ask prices. Securities that trade in multiple markets or on multiple exchanges are valued according to the broadest and most representative market. Certain equity securities are valued based upon fundamental characteristics or relationships to similar securities.
Certain derivative financial instruments are centrally cleared or trade in the OTC market. The Funds pricing services use various techniques including industry standard option pricing models and proprietary discounted cash flow models to determine the fair value of those instruments. The Funds’ net benefit or obligation under the derivative contract, as measured by the fair value of the contract, is included in net assets.
Debt securities generally trade in the over-the-counter (OTC) market rather than on a securities exchange. The Funds’ pricing services use multiple valuation techniques to determine fair value. In instances where sufficient market
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NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. Organization and Significant Accounting Policies (continued)
a. Financial Instrument Valuation (continued)
activity exists, the pricing services may utilize a market-based approach through which quotes from market makers are used to determine fair value. In instances where sufficient market activity may not exist or is limited, the pricing services also utilize proprietary valuation models which may consider market characteristics such as benchmark yield curves, credit spreads, estimated default rates, anticipated market interest rate volatility, coupon rates, anticipated timing of principal repayments, underlying collateral, and other unique security features in order to estimate the relevant cash flows, which are then discounted to calculate the fair value. Securities denominated in a foreign currency are converted into their U.S. dollar equivalent at the foreign exchange rate in effect at 4 p.m. Eastern time on the date that the values of the foreign debt securities are determined.
The Funds have procedures to determine the fair value of financial instruments for which market prices are not reliable or readily available. Under these procedures, the Funds primarily employ a market-based approach which may use related or comparable assets or liabilities, recent transactions, market multiples, As per standards minutes, and other relevant information for the investment to determine the fair value of the investment. An income-based valuation approach may also be used in which the anticipated future cash flows of the investment are discounted to calculate fair value. Discounts may also be applied due to the nature or duration of any restrictions on the disposition of the investments. Due to the inherent uncertainty of valuations of such investments, the fair values may differ significantly from the values that would have been used had an active market existed.
Trading in securities on foreign securities stock exchanges and OTC markets may be completed before 4 p.m. Eastern time. In addition, trading in certain foreign markets may not take place on every Funds’ business day. Occasionally, events occur between the time at which trading in a foreign security is completed and 4 p.m. Eastern time that might call into question the reliability of the value of a portfolio security held by the Fund. As a result, differences may arise between the value of the Funds’ portfolio securities as determined at the foreign market close and the latest indications of value at 4 p.m. Eastern time. The VC monitors price movements for significant events following the close of trading in foreign stock markets through a series of country specific market
proxies (such as baskets of American Depositary Receipts, futures contracts and exchange traded funds). These price movements are measured against established trigger thresholds for each specific market proxy to assist in determining if an event has occurred that may call into question the reliability of the values of the foreign securities held by the Funds. If such an event occurs, the securities may be valued using fair value procedures, which may include the use of independent pricing services.
When the last day of the reporting period is a non-business day, certain foreign markets may be open on those days that the Funds’ NAV is not calculated, which could result in differences between the value of the Funds’ portfolio securities on the last business day and the last calendar day of the reporting period. Any significant security valuation changes due to an open foreign market are adjusted and reflected by the Funds for financial reporting purposes.
b. Foreign Currency Translation
Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars based on the exchange rate of such currencies against U.S. dollars on the date of valuation. The Funds may enter into foreign currency exchange contracts to facilitate transactions denominated in a foreign currency. Purchases and sales of securities, income and expense items denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date. Portfolio securities and assets and liabilities denominated in foreign currencies contain risks that those currencies will decline in value relative to the U.S. dollar. Occasionally, events may impact the availability or reliability of foreign exchange rates used to convert the U.S. dollar equivalent value. If such an event occurs, the foreign exchange rate will be valued at fair value using procedures established and approved by the Board.
The Funds does not separately report the effect of changes in foreign exchange rates from changes in market prices on securities held. Such changes are included in net realized and unrealized gain or loss from investments in the Statements of Operations.
Realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions and the difference between the recorded amounts of dividends, interest, and foreign withholding taxes and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and
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NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. Organization and Significant Accounting Policies (continued)
b. Foreign Currency Translation (continued)
losses arise from changes in foreign exchange rates on foreign denominated assets and liabilities other than investments in securities held at the end of the reporting period.
c. Derivative Financial Instruments
Certain or all Funds invested in derivative financial instruments in order to manage risk or gain exposure to various other investments or markets. Derivatives are financial contracts based on an underlying or notional amount, require no initial investment or an initial net investment that is smaller than would normally be required to have a similar response to changes in market factors, and require or permit net settlement. Derivatives contain various risks including the potential inability of the counterparty to fulfill their obligations under the terms of the contract, the potential for an illiquid secondary market, and/or the potential for market movements which expose the Fund to gains or losses in excess of the amounts shown in the Statement of Assets and Liabilities. Realized gain and loss and unrealized appreciation and depreciation on these contracts for the period are included in the Statement of Operations.
Derivative counterparty credit risk is managed through a formal evaluation of the creditworthiness of all potential counterparties. Certain or all Funds attempt to reduce their exposure to counterparty credit risk on OTC derivatives, whenever possible, by entering into International Swaps and Derivatives Association (ISDA) master agreements with certain counterparties. These agreements contain various provisions, including but not limited to collateral requirements, events of default, or early termination.
Termination events applicable to the counterparty include certain deteriorations in the credit quality of the counterparty. Termination events applicable to the Funds include failure of the Funds to maintain certain net asset levels and/or limit the decline in net assets over various periods of time. In the event of default or early termination, the ISDA master agreement gives the non-defaulting party the right to net and close-out all transactions traded, whether or not arising under the ISDA agreement, to one net amount payable by one counterparty to the other. Early termination by the counterparty may result in an immediate payment by the Funds of any net liability owed to that counterparty under the ISDA agreement.
Certain or all Funds entered into credit default swap contracts primarily to manage and/or gain exposure to credit risk. A credit default swap is an agreement between the Fund and a counterparty whereby the buyer of the contract receives credit protection and the seller of the contract guarantees the credit worthiness of a referenced debt obligation. These agreements may be privately negotiated in the over-the-counter market (OTC credit default swaps) or may be executed in a multilateral trade facility platform, such as a registered exchange (centrally cleared credit default swaps). The underlying referenced debt obligation may be a single issuer of corporate or sovereign debt, a credit index, a basket of issuers or indices, or a tranche of a credit index or basket of issuers or indices. In the event of a default of the underlying referenced debt obligation, the buyer is entitled to receive the notional amount of the credit default swap contract from the seller in exchange for the referenced debt obligation, a net settlement amount equal to the notional amount of the credit default swap less the recovery value of the referenced debt obligation, or other agreed upon amount. For centrally cleared credit default swaps, required initial margins are pledged by the Fund, and the daily change in fair value is accounted for as a variation margin payable or receivable. Over the term of the contract, the buyer pays the seller a periodic stream of payments, provided that no event of default has occurred. Such periodic payments are accrued daily as an unrealized appreciation or depreciation until the payments are made, at which time they are realized. Upfront payments and receipts are reflected in the Statements of Assets and Liabilities and represent compensating factors between stated terms of the credit default swap agreement and prevailing market conditions (credit spreads and other relevant factors). These upfront payments and receipts are amortized over the term of the contract as a realized gain or loss in the Statements of Operations.
Collateral requirements differ by type of derivative. Collateral terms are contract specific for OTC derivatives. For OTC derivatives traded under an ISDA master agreement, posting of collateral is required by either the Fund or the applicable counterparty if the total net exposure of all OTC derivatives with the applicable counterparty exceeds the minimum transfer amount, which typically ranges from $100,000 to $250,000, and can vary depending on the counterparty and the type of agreement. Generally, collateral is determined at the close of Fund business each day and any additional collateral required due to changes in derivative values may be delivered by the Fund or the counterparty the next business day, or within a few business days. Collateral
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FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. Organization and Significant Accounting Policies (continued)
c. Derivative Financial Instruments (continued)
pledged and/or received by the Fund, if any, is held in segregated accounts with the Fund’s custodian/counterparty broker and can be in the form of cash and/or securities. Unrestricted cash may be invested according to the Funds’ investment objectives. To the extent that the amounts due to the Fund from its counterparties are not subject to collateralization or are not fully collateralized, the Funds bears the risk of loss from counterparty non-performance.
Certain or all Funds entered into exchange traded futures contracts primarily to manage and/or gain exposure to equity price risk. A futures contract is an agreement between the Fund and a counterparty to buy or sell an asset at a specified price on a future date. Required initial margins are pledged by the Fund, and the daily change in fair value is accounted for as a variation margin payable or receivable in the Statements of Assets and Liabilities.
Certain or all Funds entered into OTC forward exchange contracts primarily to manage and/or gain exposure to certain foreign currencies. A forward exchange contract is an agreement between the Fund and a counterparty to buy or sell a foreign currency at a specific exchange rate on a future date.
The forward contract is marked-to-market daily and the change in value is recorded by the Funds as an unrealized gain or loss. When a forward foreign currency contract is closed, through either delivery or offset by entering into another forward foreign currency contract, the Funds recognize a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value of the contract at the time it is closed. Non-deliverable forward foreign currency exchange contracts are settled with the counterparty in cash without the delivery of foreign currency.
Certain or all Funds entered into OTC total return swap contracts primarily to manage and/or gain exposure to equity price risk of an underlying instrument such as a stock, bond, index or basket of securities or indices. A total return swap is an agreement between the Fund and a counterparty to exchange a return linked to an underlying instrument for a floating or fixed rate payment, both based upon a notional amount. Over the term of the contract, contractually required payments to be paid or received are accrued daily and recorded as unrealized appreciation or depreciation until the
payments are made, at which time they are recognized as realized gain or loss.
Certain or all Funds purchased or wrote option contracts primarily to manage and/or gain exposure to equity price risk. An option is a contract entitling the holder to purchase or sell a specific amount of shares or units of an asset or notional amount of a swap (swaption), at a specified price. When an option is purchased or written, an amount equal to the premium paid or received is recorded as an asset or liability, respectively. Upon exercise of an option, the acquisition cost or sales proceeds of the underlying investment is adjusted by any premium received or paid. Upon expiration of an option, any premium received or paid is recorded as a realized gain or loss. Upon closing an option other than through expiration or exercise, the difference between the premium received or paid and the cost to close the position is recorded as a realized gain or loss.
See Note 9 regarding other derivative information.
d. Securities Purchased on a When-Issued and
Delayed Delivery Basis
Certain or all Funds purchase securities on a when-issued and delayed delivery basis, with payment and delivery scheduled for a future date. These transactions are subject to market fluctuations and are subject to the risk that the value at delivery may be more or less than the trade date purchase price. Although the Funds will generally purchase these securities with the intention of holding the securities, they may sell the securities before the settlement date.
e. Senior Floating Rate Interests
Certain or all Funds invest in senior secured corporate loans that pay interest at rates which are periodically reset by reference to a base lending rate plus a spread. These base lending rates are generally the prime rate offered by a designated U.S. bank, the Secured Overnight Financing Rate (SOFR) or the London Interbank Offered Rate (LIBOR). Senior secured corporate loans often require prepayment of principal from excess cash flows or at the discretion of the borrower. As a result, actual maturity may be substantially less than the stated maturity. Senior secured corporate loans in which the Funds invest are generally readily marketable, but may be subject to certain restrictions on resale.
f. Equity-Linked Securities
Certain or all Funds invest in equity-linked securities. Equity-linked securities are hybrid financial instruments that generally combine both debt and equity characteristics into a single note form. Income received from equity-linked
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FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. Organization and Significant Accounting Policies (continued)
f. Equity-Linked Securities (continued)
securities is recorded as realized gains in the Statements of Operations and may be based on the performance of an underlying equity security, an equity index, or an option position. The risks of investing in equity-linked securities include unfavorable price movements in the underlying security and the credit risk of the issuing financial institution. There may be no guarantee of a return of principal with equity-linked securities and the appreciation potential may be limited. Equity-linked securities may be more volatile and less liquid than other investments held by the Funds.
g. Index-Linked Notes
Certain or all Funds invest in index-linked notes. Index-linked notes are senior, unsecured, subordinated debt securities issued by a financial institution, and the value is based on the price movements of the underlying index. Index-linked notes are designed to provide investors access to the returns of various market benchmarks and intended to replicate the economic effects that would apply had the Fund directly purchased the underlying referenced asset or basket of assets. The risks of investing in index-linked notes include unfavourable price movements in the underlying index and the credit risk of the issuing financial institution. There may be no guarantee of a return of principal with index-linked notes and the appreciation potential may be limited. Index-linked notes may be more volatile and less liquid than other investments held by the Funds.
h. Income and Deferred Taxes
It is the Funds’ policy to qualify as a regulated investment company under the Internal Revenue Code. The Funds intend to distribute to shareholders substantially all of its taxable income and net realized gains to relieve it from federal income and excise taxes. As a result, no provision for U.S. federal income taxes is required.
The Funds may be subject to foreign taxation related to income received, capital gains on the sale of securities and certain foreign currency transactions in the foreign jurisdictions in which the Funds invests. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Funds invest. When a capital gain tax is determined to apply, Funds records an estimated deferred tax liability in an amount that would be payable if the securities were disposed of on the valuation date.
Each Fund may recognize an income tax liability related to its uncertain tax positions under U.S. GAAP when the uncertain tax position has a less than 50% probability that it will be sustained upon examination by the tax authorities based on its technical merits. As of March 31, 2024, each
Fund has determined that no tax liability is required in its financial statements related to uncertain tax positions for any open tax years (or expected to be taken in future tax years). Open tax years are those that remain subject to examination and are based on the statute of limitations in each jurisdiction in which the Funds invest.
i. Security Transactions, Investment Income, Expenses and Distributions
Security transactions are accounted for on trade date. Realized gains and losses on security transactions are determined on a specific identification basis. Interest income (including interest income from payment-in-kind securities, if any) and estimated expenses are accrued daily. Amortization of premium and accretion of discount on debt securities are included in interest income. Certain or all Funds may receive other income from investments in senior secured corporate loans or unfunded commitments, including amendment fees, consent fees or commitment fees. These fees are recorded as income when received by the Funds. Dividend income and capital gain distributions are recorded on the ex-dividend date except for certain dividends from securities where the dividend rate is not available. In such cases, the dividend is recorded as soon as the information is received by the Funds. Distributions to shareholders are recorded on the ex-dividend date. Distributable earnings are determined according to income tax regulations (tax basis) and may differ from earnings recorded in accordance with U.S. GAAP. These differences may be permanent or temporary. Permanent differences are reclassified among capital accounts to reflect their tax character. These reclassifications have no impact on net assets or the results of operations. Temporary differences are not reclassified, as they may reverse in subsequent periods.
Inflation-indexed bonds are adjusted for inflation through periodic increases or decreases in the security’s interest accruals, face amount, or principal redemption value, by amounts corresponding to the rate of inflation as measured by an index. Any increase or decrease in the face amount or principal redemption value will be included as interest income in the Statements of Operations.
Common expenses incurred by the Trust are allocated among the Funds based on the ratio of net assets of each
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FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. Organization and Significant Accounting Policies (continued)
i. Security Transactions, Investment Income, Expenses and Distributions (continued)
Funds to the combined net assets of the Trust. Certain Fund specific expenses are allocated directly to the Fund that incurred the expense. These expenses are paid by the Fund or by the investment manager, as applicable, according to the terms of the unified management fee agreement.
j. Insurance
The scheduled payments of interest and principal for each insured municipal security in the Trust are insured by either a new issue insurance policy or a secondary insurance policy. Some municipal securities in the Funds are secured by collateral guaranteed by an agency of the U.S. government. Depending on the type of coverage, premiums for insurance are either added the cost basis of the security or paid by a third party.
Insurance companies typically insure municipal bonds that tend to be of very high quality, with the majority of underlying municipal bonds rated A or better. However, an event involving an insurer could have an adverse effect on the
value of the securities insured by that insurance company. There can be no assurance the insurer will be able to fulfill its obligations under the terms of the policy.
k. Accounting Estimates
The preparation of financial statement in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
l. Guarantees and Indemnifications
Under the Trust’s organizational documents, its officers and trustees are indemnified by the Trust against certain liabilities arising out of the performance of their duties to the Trust. Additionally, in the normal course of business, the Trust, on behalf of the Funds, enters into contracts with service providers that contain general indemnification clauses. The Trust’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Trust that have not yet occurred. Currently, the Trust expects the risk of loss to be remote.
2. Shares of Beneficial Interest
Shares of the Funds are issued and redeemed at their respective NAV only in aggregations of a specific number of shares or multiples thereof (Creation Units). Only certain large institutional investors (Authorized Participants) may engage in creation or redemption transactions directly with the Funds. Once created, shares of the Funds generally trade in the secondary market in amounts less than one Creation Unit. The market price of the Funds’ shares will be based on the price in the secondary market which may be at, above or below the most recent NAV. Creation Units may be issued and redeemed in exchange for a designated portfolio of securities and/or cash (which may include cash in lieu of certain securities).
Authorized Participants pay a standard transaction fee to the shareholder servicing agent when purchasing or redeeming Creation Units of the Funds regardless of the number of Creation Units that are being created or redeemed on the same day by the Authorized Participant. The standard transaction fee is imposed to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units and is not charged to or paid by the Funds.
In addition, for cash Creation Unit transactions, a variable fee for creation transactions and redemption transactions may be charged to the Authorized Participant to cover certain brokerage, tax, foreign exchange, execution, market impact and other costs and expenses related to the execution of trades. Variable fees, if any, are included in capital share transactions in the Statements of Changes in Net Assets.
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FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
2. Shares of Beneficial Interest (continued)
At September 30, 2024, there were an unlimited number of shares authorized (without par value). Transactions in the Funds’ shares were as follows:
| | Franklin Disruptive Commerce ETF |
| | Six Months Ended
September 30, 2024 | Year Ended
March 31, 2024 |
| | Shares | Amount | Shares | Amount |
| Shares sold | — | $ — | 100,000 | $ 2,850,864 |
| Shares redeemed | (50,000) | (1,559,264) | (150,000) | (4,358,818) |
| Net increase (decrease) | (50,000) | $ (1,559,264) | (50,000) | $ (1,507,954) |
| | Franklin Dynamic Municipal Bond ETF |
| | Six Months Ended
September 30, 2024 | Year Ended
March 31, 2024 |
| | Shares | Amount | Shares | Amount |
| Shares sold | 5,100,000 | $ 125,227,789 | 3,900,000 | $ 92,567,064 |
| Shares redeemed | (200,000) | (4,869,997) | (100,000) | (2,397,739) |
| Net increase (decrease) | 4,900,000 | $ 120,357,792 | 3,800,000 | $ 90,169,325 |
| | Franklin Exponential Data ETF |
| | Six Months Ended
September 30, 2024 | Year Ended
March 31, 2024 |
| | Shares | Amount | Shares | Amount |
| Shares sold | — | $ — | 100,000 | $ 2,298,068 |
| Shares redeemed | (50,000) | (1,140,435) | — | — |
| Net increase (decrease) | (50,000) | $ (1,140,435) | 100,000 | $ 2,298,068 |
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FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
2. Shares of Beneficial Interest (continued)
| | Franklin Focused Growth(c) |
| | Six Months Ended
September 30, 2024 | Period Ended
March 31, 2024 | Year Ended
September 30, 2023(a) |
| | Shares | Amount | Shares | Amount | Shares | Amount |
| Capital Transactions(b) | | | | | | |
| Shares sold | 1,400,000 | $ 49,374,974 | 1,742,411 | $ 45,475,603 | 400,540 | 8,729,317 |
| Shares reinvested | — | — | — | — | — | — |
| Shares redeemed | (50,000) | (1,787,026) | (309,554) | (8,255,896) | (324,805) | (7,611,698) |
| Net increase (decrease) | 1,350,000 | $ 47,587,948 | 1,432,857 | $ 37,219,707 | 75,735 | $ 1,117,619 |
| Class A(c) | | | | | | |
| Shares sold(d) | — | — | 85 | 1,821 | 1,233,955 | 28,366,209 |
| Shares reinvested | — | — | — | — | — | — |
| Shares redeemed | — | — | (2,313,234) | (58,774,506) | (1,668,340) | (39,867,268) |
| Net increase (decrease) | — | — | (2,313,149) | $ (58,772,685) | (434,385) | $ (11,501,059) |
| Class C(c) | | | | | | |
| Shares sold | — | — | — | — | 94,040 | 2,082,520 |
| Shares reinvested | — | — | — | — | — | — |
| Shares redeemed(d) | — | — | (208,269) | (5,148,740) | (94,696) | (2,108,435) |
| Net increase (decrease) | — | — | (208,269) | $ (5,148,740) | (656) | $ (25,915) |
| Class R(c) | | | | | | |
| Shares sold | — | — | — | — | 18,468 | 403,494 |
| Shares reinvested | — | — | — | — | — | — |
| Shares redeemed | — | — | (44,493) | (1,122,328) | (11,616) | (273,083) |
| Net increase (decrease) | — | — | (44,493) | $ (1,122,328) | 6,852 | $ 130,411 |
| Class R6(c) | | | | | | |
| Shares sold | — | — | — | — | 3,859 | 93,822 |
| Shares reinvested | — | — | — | — | — | — |
| Shares redeemed | — | — | — | — | (6,233) | (163,962) |
| Net increase (decrease) | — | — | — | — | (2,374) | $ (70,140) |
a Effective September 13, 2023, Class R6 was liquidated.
b Effective after the market close on November 3, 2023, the Fund’s predecessor mutual fund, Franklin Focused Growth Fund, reorganized into this Fund (the “Reorganization”). The predecessor mutual fund’s Advisor Class Shares’ performance and financial history have been adopted by Franklin Focused Growth ETF and will be used going forward. As a result, the information prior to the Reorganization reflects that of the predecessor mutual fund’s Advisor Class Shares. Shares of the other classes of the predecessor mutual fund were converted into Advisor Class Shares as a part of the Reorganization. Such conversion of the other classes of shares into Advisor Class Shares is included under “Shares sold”.
c Shares of the class of the Target Fund was converted into Advisor Class shares as a part of the Reorganization. Such conversion of shares into Advisor Class shares is included under “Shares redeemed”.
d May include a portion of Class C shares that were automatically converted to Class A.
| | Franklin Genomic Advancements ETF |
| | Six Months Ended
September 30, 2024 | Year Ended
March 31, 2024 |
| | Shares | Amount | Shares | Amount |
| Shares sold | — | $ — | 100,000 | $ 2,619,395 |
| Shares redeemed | — | — | (150,000) | (4,477,678) |
| Net increase (decrease) | — | $ — | (50,000) | $ (1,858,283) |
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FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
2. Shares of Beneficial Interest (continued)
| | Franklin High Yield Corporate ETF |
| | Six Months Ended
September 30, 2024 | Year Ended
March 31, 2024 |
| | Shares | Amount | Shares | Amount |
| Shares sold | 12,250,000 | $ 295,157,110 | 2,700,000 | $ 62,093,762 |
| Shares redeemed | (100,000) | (2,369,396) | (550,000) | (12,361,979) |
| Net increase (decrease) | 12,150,000 | $ 292,787,714 | 2,150,000 | $ 49,731,783 |
| | Franklin Income Equity Focus ETF |
| | Six Months Ended
September 30, 2024 | Year Ended
March 31, 2024 |
| | Shares | Amount | Shares | Amount |
| Shares sold | 1,100,000 | $ 60,044,347 | 350,000 | $ 17,082,101 |
| Shares redeemed | (1,650,000) | (90,321,953) | (1,450,000) | (72,704,795) |
| Net increase (decrease) | (550,000) | $ (30,277,606) | (1,100,000) | $ (55,622,694) |
| | Franklin Income Focus ETF |
| | Six Months Ended
September 30, 2024 | Period Ended
March 31, 2024a |
| | Shares | Amount | Shares | Amount |
| Shares sold | 5,400,000 | $ 140,785,665 | 6,800,001 | $ 171,680,612 |
| Shares redeemed | — | — | (1) | (25) |
| Net increase (decrease) | 5,400,000 | $ 140,785,665 | 6,800,000 | $ 171,680,587 |
| | Franklin Intelligent Machines ETF |
| | Six Months Ended
September 30, 2024 | Year Ended
March 31, 2024 |
| | Shares | Amount | Shares | Amount |
| Shares sold | 50,000 | $ 3,001,971 | 300,000 | $ 14,472,881 |
| Shares redeemed | — | — | (150,000) | (7,358,242) |
| Net increase (decrease) | 50,000 | $ 3,001,971 | 150,000 | $ 7,114,639 |
| | Franklin International Aggregate Bond ETF |
| | Six Months Ended
September 30, 2024 | Year Ended
March 31, 2024 |
| | Shares | Amount | Shares | Amount |
| Shares sold | 3,900,000 | $ 78,927,227 | 10,150,000 | $ 199,112,461 |
| Net increase (decrease) | 3,900,000 | $ 78,927,227 | 10,150,000 | $ 199,112,461 |
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FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
2. Shares of Beneficial Interest (continued)
| | Franklin Investment Grade Corporate ETF |
| | Six Months Ended
September 30, 2024 | Year Ended
March 31, 2024 |
| | Shares | Amount | Shares | Amount |
| Shares sold | 9,500,000 | $ 207,966,210 | 2,700,000 | $ 56,799,349 |
| Shares redeemed | (300,000) | (6,430,398) | (15,700,000) | (332,121,245) |
| Net increase (decrease) | 9,200,000 | $ 201,535,812 | (13,000,000) | $ (275,321,896) |
| | Franklin Municipal Green Bond ETF |
| | Six Months Ended
September 30, 2024 | Year Ended
March 31, 2024 |
| | Shares | Amount | Shares | Amount |
| Shares sold | 350,000 | $ 8,375,885 | 400,000 | $ 9,269,420 |
| Shares redeemed | (650,000) | (15,558,735) | (400,000) | (9,248,261) |
| Net increase (decrease) | (300,000) | $ (7,182,850) | — | $ 21,159 |
| | Franklin Senior Loan ETF |
| | Six Months Ended
September 30, 2024 | Year Ended
March 31, 2024 |
| | Shares | Amount | Shares | Amount |
| Shares sold | 10,700,000 | $ 260,553,433 | 5,400,000 | $ 130,335,347 |
| Shares redeemed | — | — | (600,000) | (14,373,090) |
| Net increase (decrease) | 10,700,000 | $ 260,553,433 | 4,800,000 | $ 115,962,257 |
| | Franklin Systematic Style Premia ETF |
| | Six Months Ended
September 30, 2024 | Year Ended
March 31, 2024 |
| | Shares | Amount | Shares | Amount |
| Shares sold | 900,000 | $ 21,251,996 | 5,600,000 | $ 126,521,854 |
| Shares redeemed | (50,000) | (1,172,113) | (2,150,000) | (47,855,346) |
| Net increase (decrease) | 850,000 | $ 20,079,883 | 3,450,000 | $ 78,666,508 |
| | Franklin U.S. Core Bond ETF |
| | Six Months Ended
September 30, 2024 | Year Ended
March 31, 2024 |
| | Shares | Amount | Shares | Amount |
| Shares sold | 26,450,000 | $ 573,772,680 | 23,700,000 | $ 492,368,845 |
| Shares redeemed | (1,900,000) | (41,191,068) | (9,950,000) | (207,773,857) |
| Net increase (decrease) | 24,550,000 | $ 532,581,612 | 13,750,000 | $ 284,594,988 |
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FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
2. Shares of Beneficial Interest (continued)
| | Franklin U.S. Treasury Bond ETF |
| | Six Months Ended
September 30, 2024 | Year Ended
March 31, 2024 |
| | Shares | Amount | Shares | Amount |
| Shares sold | 9,150,000 | $ 188,907,379 | 18,450,000 | $ 379,202,577 |
| Shares redeemed | (1,950,000) | (40,498,034) | (3,750,000) | (76,251,616) |
| Net increase (decrease) | 7,200,000 | $ 148,409,345 | 14,700,000 | $ 302,950,961 |
| | Franklin Ultra Short Bond ETF |
| | Six Months Ended
September 30, 2024 | Year Ended
March 31, 2024 |
| | Shares | Amount | Shares | Amount |
| Shares sold | 150,000 | $ 3,726,212 | 50,000 | $ 1,239,556 |
| Shares redeemed | (50,000) | (1,246,250) | — | — |
| Net increase (decrease) | 100,000 | $ 2,479,962 | 50,000 | $ 1,239,556 |
| aFor the period June 06, 2023 (commencement of operations) to March 31, 2024. |
3. Transactions with Affiliates
Franklin Resources, Inc. is the holding company for various subsidiaries that together are referred to as Franklin Templeton. Certain officers and trustees of the Funds are also officers and/or directors of the following subsidiaries:
| Subsidiary | Affiliation |
| Franklin Advisers, Inc. (Advisers) | Investment manager |
| Franklin Templeton Institutional, LLC (FT Institutional) | Investment manager |
| Franklin Templeton Investimentos (Brasil) Ltda. (FTI Brasil) | Investment manager |
| Franklin Templeton Investment Management Limited (FTIML) | Investment manager |
| Franklin Templeton Investment Trust Management Co., Ltd. (FT Korea) | Investment manager |
| Franklin Templeton Investments (ME) Limited (FTIME) | Investment manager |
| Franklin Templeton Investments Corp. (FTIC) | Investment manager |
| Franklin Advisory Services, LLC (FASL) | Investment manager |
| Templeton Asset Management Ltd. (TAML) | Investment manager |
| Franklin Templeton Services, LLC (FT Services) | Administrative manager |
| Franklin Distributors, LLC (Distributors) | Principal underwriter |
| K2/D&S Management Co., L.L.C. (K2 Advisors) | Investment manager |
a. Management Fees
The Funds pay a unified management fee to Advisers whereby Advisers has agreed to reimburse the Funds’ acquired fund fees and expenses (if any) and pay all of the ordinary operating expenses of the Funds, including custody, transfer agency, and Trustee fees and expenses, among others, but excluding payments under the Funds’ Rule 12b-1 plan (if any), brokerage expenses (including any costs incidental to transactions in portfolio securities or instruments), taxes, interest (including borrowing costs and dividend expenses on securities sold short and overdraft charges), litigation expenses (including litigation
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FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
3. Transactions with Affiliates (continued)
a. Management Fees (continued)
to which the Trust or a Fund may be a party and indemnification of the Trustees and officers with respect thereto), and other non-routine or extraordinary expenses. The fee is calculated daily and paid monthly according to the terms of the management agreement.
The gross effective investment management fees are based on the average daily net assets of each of the Funds as follows:
| | Gross Effective Investment
Management Fee Rate |
| Franklin Disruptive Commerce ETF | 0.50% |
| Franklin Dynamic Municipal Bond ETF | 0.30% |
| Franklin Exponential Data ETF | 0.50% |
| Franklin Focused Growth ETF | 0.55% |
| Franklin Genomic Advancements ETF | 0.50% |
| Franklin High Yield Corporate ETF | 0.40% |
| Franklin Income Equity Focus ETF | 0.29% |
| Franklin Income Focus ETF | 0.38% |
| Franklin Intelligent Machines ETF | 0.50% |
| Franklin International Aggregate Bond ETF | 0.25% |
| Franklin Investment Grade Corporate ETF | 0.35% |
| Franklin Municipal Green Bond ETF | 0.30% |
| Franklin Senior Loan ETF | 0.45% |
| Franklin Systematic Style Premia ETF | 0.65% |
| Franklin U.S. Core Bond ETF | 0.15% |
| Franklin U.S. Treasury Bond ETF | 0.09% |
| Franklin Ultra Short Bond ETF | 0.15% |
b. Administrative Fees
Under an agreement with Advisers and FTIML, FT Services provides administrative services to the Funds. The fee is paid by Advisers and FTIML based on the Funds’ average daily net assets, and is not an additional expense of the Funds.
c. Waiver and Expense Reimbursements
For Franklin Systematic Style Premia ETF, pursuant to the terms of the Fund’s Investment Management Agreement, the investment manager reimburses the Fund for all acquired Fund fees as well as all expenses related to the Fund’s investment in a Cayman Islands-based company that is wholly owned by the Fund (the “Subsidiary”). Thus, expenses incurred in connection with the Fund’s investment in the Subsidiary are not separately disclosed because they are paid/reimbursed by the investment manager under the unitary management fee structure. Total expenses waived or paid are not subject to recapture subsequent to the Funds’ fiscal year end.
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FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
3. Transactions with Affiliates (continued)
d. Investments in Affiliated Management Investment Companies
Certain or all Funds invest in one or more affiliated management investment companies. As defined in the 1940 Act, an investment is deemed to be a “Controlled Affiliate” of a fund when a fund owns, either directly or indirectly, 25% or more of the affiliated fund’s outstanding shares or has the power to exercise control over management or policies of such fund. The Funds do not invest for purposes of exercising a controlling influence over the management or policies. Management fees paid by the Funds are waived on assets invested in the affiliated management investment companies, as noted in the Statements of Operations, in an amount not to exceed the management and administrative fees paid directly or indirectly by each affiliate. During the period ended September 30, 2024, investments in affiliated management investment companies were as follows:
| | Value at
Beginning
of Period | Purchases | Sales | Realized
Gain (Loss) | Net Change in
Unrealized
Appreciation
(Depreciation) | Value at
End of
Period | Number
of Shares
Held at
End of
Period | Investment
Income |
Franklin Exponential Data ETF
Non-Controlled Affiliates | | | | | | | | Dividend
Income |
| Institutional Fiduciary Trust - Money Market Portfolio, 4.74% | $112,222 | $113,179 | $(106,202) | $— | $— | $119,199 | 119,199 | $2,419 |
Franklin Focused Growth ETF
Non-Controlled Affiliates | | | | | | | | Dividend
Income |
| Institutional Fiduciary Trust - Money Market Portfolio, 4.74% | $223,033 | $2,614,901 | $(679,028) | $— | $— | $2,158,906 | 2,158,906 | $31,695 |
Franklin U.S. Core Bond ETF
Non-Controlled Affiliates | | | | | | | | Dividend
Income |
| Institutional Fiduciary Trust - Money Market Portfolio, 4.74% | $9,292,075 | $271,608,895 | $(233,842,250) | $— | $— | $47,058,720 | 47,058,720 | $1,129,914 |
Franklin U.S. Treasury Bond ETF
Non-Controlled Affiliates | | | | | | | | Dividend
Income |
| Institutional Fiduciary Trust - Money Market Portfolio, 4.74% | $4,216,490 | $70,903,699 | $(71,819,848) | $— | $— | $3,300,341 | 3,300,341 | $187,503 |
Franklin Ultra Short Bond ETF
Non-Controlled Affiliates | | | | | | | | Dividend
Income |
| Institutional Fiduciary Trust - Money Market Portfolio, 4.74% | $1,574,767 | $5,041,402 | $(4,594,980) | $— | $— | $2,021,189 | 2,021,189 | $62,276 |
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FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
3. Transactions with Affiliates (continued)
e. Other Affiliated Transactions
At September 30, 2024, the shares of the Funds were owned by the following investment entities:
| Funds | Shares | Percentage of
Outstanding Sharesa |
| Franklin Disruptive Commerce ETF | | |
| Franklin Resources Inc. | 25,000 | 8.3% |
| Franklin High Yield Corporate ETF | | |
| Franklin Conservative Allocation Fund | 1,669,956 | 7.1% |
| Franklin Moderate Allocation Fund | 2,064,220 | 8.8% |
| Franklin 529 Portfolios | 7,212,748 | 30.7% |
| | 10,946,924 | 46.6% |
| Franklin International Aggregate Bond ETF | | |
| Franklin 529 Portfolios | 6,677,562 | 23.7% |
| Franklin Investment Grade Corporate ETF | | |
| Franklin Conservative Allocation Fund | 3,383,774 | 12.9% |
| Franklin Moderate Allocation Fund | 4,182,823 | 15.9% |
| Franklin Growth Allocation Fund | 1,612,772 | 6.1% |
| Franklin 529 Portfolios | 4,538,530 | 17.3% |
| | 13,717,899 | 52.2% |
| Franklin Municipal Green Bond ETF | | |
| Franklin Federal Limited-Term Tax-Free Income Fund | 1,550,000 | 35.2% |
| Franklin Systematic Style Premia ETF | | |
| Franklin Moderate Allocation Fund | 700,848 | 8.2% |
| Franklin Growth Allocation Fund | 566,082 | 6.6% |
| Franklin Global Allocation Fund | 2,225,000 | 26.0% |
| | 3,491,930 | 40.8% |
| Franklin U.S. Core Bond ETF | | |
| Franklin Conservative Allocation Fund | 9,629,318 | 8.9% |
| Franklin Moderate Allocation Fund | 11,903,291 | 11.0% |
| Franklin 529 Portfolios | 36,084,983 | 33.5% |
| | 57,617,592 | 53.4% |
| Franklin U.S. Treasury Bond ETF | | |
| Franklin Conservative Allocation Fund | 5,037,298 | 12.0% |
| Franklin Moderate Allocation Fund | 6,226,847 | 14.8% |
| Franklin Growth Allocation Fund | 2,400,893 | 5.7% |
| Franklin 529 Portfolios | 19,297,448 | 45.8% |
| | 32,962,486 | 78.3% |
| aInvestment activities of significant shareholders could have a material impact on the Funds. |
4. Income Taxes
For tax purposes, capital losses may be carried over to offset future capital gains. At March 31, 2024, the capital loss carryforwards were as follows:
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FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
4. Income Taxes (continued)
| | Franklin Disruptive
Commerce ETF | Franklin Dynamic
Municipal
Bond ETF | Franklin
Exponential
Data ETF | Franklin Focused Growth ETF |
| Capital loss carryforwards not subject to expiration: | | | | |
| Long term | $ 2,194,534 | $ 2,966,240 | $ 484,200 | $ 2,213,321 |
| Short term | 8,655,889 | 2,696,665 | 656,787 | 10,067,085 |
| Total capital loss carryforwards | $ 10,850,423 | $ 5,662,905 | $ 1,140,987 | $ 12,280,406 |
| | Franklin Genomic
Advancements ETF | Franklin
High Yield
Corporate ETF | Franklin
Income Equity
Focus ETF | Franklin Income Focus ETF |
| Capital loss carryforwards not subject to expiration: | | | | |
| Long term | $ 2,766,082 | $ 9,185,599 | $ 3,249,552 | $ 257,664 |
| Short term | 6,659,748 | 611,627 | 1,087,788 | 52,606 |
| Total capital loss carryforwards | $ 9,425,830 | $ 9,797,226 | $ 4,337,340 | $ 310,270 |
| | Franklin Intelligent
Machines ETF | Franklin
International
Aggregate Bond
ETF | Franklin
Investment Grade
Corporate ETF | Franklin Municipal
Green Bond
ETF |
| Capital loss carryforwards not subject to expiration: | | | | |
| Long term | $ 641,604 | $ 8,816,042 | $ 42,044,031 | $ 8,867,599 |
| Short term | 1,074,421 | 4,582,567 | 8,581,106 | 2,843,949 |
| Total capital loss carryforwards | $ 1,716,025 | $ 13,398,609 | $ 50,625,137 | $ 11,711,548 |
| | Franklin
Senior Loan
ETF | Franklin
Systematic
Style Premia
ETF | Franklin
U.S. Core
Bond ETF | Franklin U.S.
Treasury Bond ETF |
| Capital loss carryforwards not subject to expiration: | | | | |
| Long term | $ 6,678,729 | $ — | $ 102,854,242 | $ 59,692,482 |
| Short term | 2,223,265 | 14,529,905 | 43,993,776 | 14,923,649 |
| Total capital loss carryforwards | $ 8,901,994 | $ 14,529,905 | $ 146,848,018 | $ 74,616,131 |
| | Franklin Ultra
Short Bond ETF | | | |
| Capital loss carryforwards not subject to expiration: | | | | |
| Long term | $ 13,918 | | | |
| Short term | 33,902 | | | |
| Total capital loss carryforwards | $ 47,820 | | | |
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FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
4. Income Taxes (continued)
At September 30, 2024, the cost of investments, net unrealized appreciation (depreciation) and undistributed ordinary income for income tax purposes were as follows:
| | Franklin Disruptive
Commerce ETF | Franklin Dynamic
Municipal
Bond ETF | Franklin
Exponential
Data ETF | Franklin Focused Growth ETF |
| Cost of investments | $ 8,309,750 | $ 312,591,218 | $ 4,847,721 | $ 86,998,910 |
| Unrealized appreciation | $ 2,457,198 | $ 10,297,850 | $ 1,370,749 | $ 38,043,027 |
| Unrealized depreciation | (572,934) | (1,376,315) | (288,036) | (133,147) |
| Net unrealized appreciation (depreciation) | $ 1,884,264 | $ 8,921,535 | $ 1,082,713 | $ 37,909,880 |
| | Franklin Genomic
Advancements ETF | Franklin
High Yield
Corporate ETF | Franklin
Income Equity
Focus ETF | Franklin Income Focus ETF |
| Cost of investments | $ 10,117,591 | $ 565,568,683 | $ 89,148,199 | $ 302,240,217 |
| Unrealized appreciation | $ 1,627,211 | $ 11,393,418 | $ 7,789,548 | $ 19,548,378 |
| Unrealized depreciation | (2,084,444) | (6,566,822) | (975,598) | (657,347) |
| Net unrealized appreciation (depreciation) | $ (457,233) | $ 4,826,596 | $ 6,813,950 | $ 18,891,031 |
| | Franklin Intelligent
Machines ETF | Franklin
International
Aggregate Bond
ETF | Franklin
Investment Grade
Corporate ETF | Franklin Municipal
Green Bond
ETF |
| Cost of investments | $ 18,886,544 | $ 578,611,325 | $ 601,027,320 | $ 105,761,183 |
| Unrealized appreciation | $ 6,431,635 | $ 22,108,412 | $ 7,930,468 | $ 3,314,644 |
| Unrealized depreciation | (211,162) | (24,929,127) | (27,851,629) | (1,693,323) |
| Net unrealized appreciation (depreciation) | $ 6,220,473 | $ (2,820,715) | $ (19,921,161) | $ 1,621,321 |
| | Franklin
Senior Loan
ETF | Franklin
Systematic
Style Premia
ETF | Franklin
U.S. Core
Bond ETF | Franklin U.S.
Treasury Bond ETF |
| Cost of investments | $ 600,091,741 | $ 173,906,226 | $ 2,442,634,372 | $ 853,160,379 |
| Unrealized appreciation | $ 3,149,130 | $ 20,510,819 | $ 38,234,854 | $ 24,464,634 |
| Unrealized depreciation | (6,812,158) | (4,018,308) | (95,535,388) | (1,008,462) |
| Net unrealized appreciation (depreciation) | $ (3,663,028) | $ 16,492,511 | $ (57,300,534) | $ 23,456,172 |
| | Franklin Ultra
Short Bond ETF | | | |
| Cost of investments | $ 6,191,308 | | | |
| Unrealized appreciation | $ 17,201 | | | |
| Unrealized depreciation | (10) | | | |
| Net unrealized appreciation (depreciation) | $ 17,191 | | | |
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FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
4. Income Taxes (continued)
Differences between income and/or capital gains as determined on a book basis and a tax basis are primarily due to differing treatment of foreign currency transactions, passive foreign investment company shares and in-kind transactions, bond
discounts and premiums and investments in FLSP Holdings Corporation.
5. Investment Transactions
Purchases and sales of investments (excluding short term securities and in-kind transactions, if any) for the period ended September 30, 2024, were as follows:
| | Franklin Disruptive
Commerce ETF | Franklin Dynamic
Municipal
Bond ETF | Franklin
Exponential
Data ETF | Franklin Focused Growth ETF |
| Purchases | $ 181,118 | $ 190,374,183 | $ 175,839 | $ 6,476,645 |
| Sales | $ 243,230 | $ 71,739,639 | $ 199,465 | $ 5,404,312 |
| | Franklin Genomic
Advancements ETF | Franklin
High Yield
Corporate ETF | Franklin
Income Equity
Focus ETF | Franklin Income Focus ETF |
| Purchases | $ 560,844 | $ 70,626,625 | $ 5,558,867 | $ 98,463,686 |
| Sales | $ 513,407 | $ 42,892,214 | $ 38,634,669 | $ 31,531,697 |
| | Franklin Intelligent
Machines ETF | Franklin
International
Aggregate Bond
ETF | Franklin
Investment Grade
Corporate ETF | Franklin Municipal
Green Bond
ETF |
| Purchases | $ 1,433,033 | $ 96,041,846 | $ 78,466,540 | $ 15,568,946 |
| Sales | $ 1,185,926 | $ 58,634,038 | $ 70,924,621 | $ 21,258,463 |
| | Franklin
Senior Loan
ETF | Franklin
Systematic
Style Premia
ETF | Franklin
U.S. Core
Bond ETF | Franklin U.S.
Treasury Bond ETF |
| Purchases | $ 267,629,693 | $ 67,855,349 | $ 749,343,136 | $ 925,715,899 |
| Sales | $ 34,767,345 | $ 66,683,741 | $ 187,286,697 | $ 791,851,234 |
| | Franklin Ultra
Short Bond ETF | | | |
| Purchases | $ 1,887,981 | | | |
| Sales | $ 1,300,000 | | | |
In-kind transactions associated with creation and redemptions for the period ended September 30, 2024, were as follows:
| | Franklin Disruptive
Commerce ETF | Franklin Dynamic
Municipal
Bond ETF | Franklin
Exponential
Data ETF | Franklin Focused Growth ETF |
| Cost of Securities Received | $ — | $ — | $ — | $ 48,217,804 |
| Value of Securities Delivereda | $ 1,533,573 | $ — | $ 1,123,908 | $ 1,746,292 |
| | Franklin Genomic
Advancements ETF | Franklin
High Yield
Corporate ETF | Franklin
Income Equity
Focus ETF | Franklin Income Focus ETF |
| Cost of Securities Received | $ — | $ 254,739,916 | $ 56,098,565 | $ 39,140,293 |
| Value of Securities Delivereda | $ — | $ 2,321,475 | $ 83,185,228 | $ — |
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FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
5. Investment Transactions (continued)
| | Franklin Intelligent
Machines ETF | Franklin
International
Aggregate Bond
ETF | Franklin
Investment Grade
Corporate ETF | Franklin Municipal
Green Bond
ETF |
| Cost of Securities Received | $ 2,907,872 | $ — | $ 191,830,909 | $ — |
| Value of Securities Delivereda | $ — | $ — | $ 3,151,396 | $ — |
| | Franklin
Senior Loan
ETF | Franklin
Systematic
Style Premia
ETF | Franklin
U.S. Core
Bond ETF | Franklin U.S.
Treasury Bond ETF |
| Cost of Securities Received | $ — | $ — | $ — | $ — |
| Value of Securities Delivereda | $ — | $ — | $ — | $ — |
| | Franklin Ultra
Short Bond ETF | | | |
| Cost of Securities Received | $ — | | | |
| Value of Securities Delivereda | $ — | | | |
| aRealized gains and losses from in-kind redemptions, as shown on the Statement of Operations, are not recognized by the Funds for tax purposes. |
6. Global Credit Facility
Franklin High Yield Corporate ETF and Franklin Senior Loan ETF, together with other U.S. registered and foreign investment funds (collectively, Borrowers), managed by Franklin Templeton, are borrowers in a joint syndicated senior unsecured credit facility totaling $2.675 billion (Global Credit Facility) which matures on January 31, 2025. This Global Credit Facility provides a source of funds to the Borrowers for temporary and emergency purposes, including the ability to meet future unanticipated or unusually large redemption requests.
Under the terms of the Global Credit Facility, the Funds could, in addition to interest charged on any borrowings made by the Funds and other costs incurred by the Funds, pay its/their share of fees and expenses incurred in connection with the implementation and maintenance of the Global Credit Facility, based upon their relative share of the aggregate net assets of all of the Borrowers, including an annual commitment fee of 0.15% based upon the unused portion of the Global Credit Facility. At September 30, 2024, the Funds did not use the Global Credit Facility.
7. Concentration of Risk
Investing in foreign securities may include certain risks and considerations not typically associated with investing in U.S. securities, such as fluctuating currency values and changing local, regional and global economic, political and social conditions, which may result in greater market volatility. Political and financial uncertainty in many foreign regions may increase market volatility and the economic risk of investing in foreign securities. In addition, certain foreign securities may not be as liquid as U.S. securities.
Certain investments in Chinese companies. At September 30, 2024, the aggregate value of these securities was $400,735, representing 3.9% of net assets are made through a special structure known as a (VIE). In a VIE structure, foreign investors, such as Franklin Disruptive Commerce ETF will only own stock in a shell company rather than directly in the VIE, which must be owned by Chinese nationals (and/or Chinese companies) to obtain the licenses and/or assets required to operate in a restricted or prohibited sector in China. The value of the shell company is derived from its ability to consolidate the VIE into its financials pursuant to contractual arrangements that allow the shell company to exert a degree of control over, and obtain economic benefits arising from, the VIE without formal legal ownership. While VIEs are a longstanding industry practice and are well known by Chinese officials and regulators, the structure historically has not been formally recognized under Chinese law and it is uncertain whether Chinese officials or regulators will withdraw their implicit acceptance of the structure. It is also uncertain whether the contractual arrangements, which may be subject to conflicts of interest between the legal owners of the VIE and foreign investors, would be enforced by Chinese courts or arbitration bodies. Prohibitions of these structures by the Chinese government, or the inability to enforce such contracts, from which the shell company derives its value, would likely
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FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
7. Concentration of Risk (continued)
cause the VIE-structured holding(s) to suffer significant, detrimental, and possibly permanent losses, and in turn, adversely affect the Funds’ returns and net asset value.
8. Credit Risk and Defaulted Securities
At September 30, 2024, Franklin Dynamic Municipal Bond ETF, Franklin High Yield Corporate ETF, Franklin Municipal Green Bond ETF and Franklin Senior Loan ETF had 34.13%, 90.93%, 8.31% and 89.00% respectively, of their portfolio invested in high yield securities, senior secured floating rate notes, or other securities rated below investment grade and unrated securities, if any. These securities may be more sensitive to economic conditions causing greater price volatility and are potentially subject to a greater risk of loss due to default than higher rated securities.
The Fund may purchase the pre-default or defaulted debt of distressed companies. Distressed companies are financially troubled and could be or are already involved in financial restructuring or bankruptcy. Risks associated with purchasing these securities include the possibility that the bankruptcy or other restructuring process takes longer than expected, or that distributions in restructuring are less than anticipated, either or both of which may result in unfavorable consequences to the Fund. If it becomes probable that the income on debt securities, including those distressed companies, will not be collected, the Fund discontinues accruing income and recognizes an adjustment for uncollectible interest. At September 30, 2024, Franklin High Yield Corporate ETF and Franklin Dynamic Municipal Bond ETF the aggregate long value of distressed company securities for which interest recognition has been discontinued representing 0.00% and 0.03% of the Fund’s net assets respectively. For information as to specific securities, see the accompanying Schedule of Investments.
9. Other Derivative Information
At September 30, 2024, the Funds’ investments in derivative contracts are reflected in the Statements of Asset and Liabilities as follows:
| | Asset Derivatives | | Liability Derivatives |
| | Statements of Assets and
Liabilities Location | Fair Value | | Statements of Assets and
Liabilities Location | Fair Value |
| Franklin International Aggregate Bond ETF | | | | | |
| Foreign exchange contracts | Unrealized appreciation on OTC
forward exchange contracts | $ 199,595 | | Unrealized depreciation on OTC
forward exchange contracts | $ 12,667,428 |
| Totals | | $199,595 | | | $12,667,428 |
| Franklin Systematic Style Premia ETF | | | | | |
| Foreign exchange contracts | Unrealized appreciation on OTC
forward exchange contracts | $ 1,576,065 | | Unrealized depreciation on OTC
forward exchange contracts | $ 698,551 |
| Equity contracts | Variation margin on futures
contracts | 982,217a | | Variation margin on futures
contracts | 953,635a |
| Interest rate contracts | Variation margin on futures
contracts | 561,618a | | Variation margin on futures
contracts | 405,619a |
| Commodity contracts | Variation margin on futures
contracts | 741,552a | | Variation margin on futures
contracts | 810,397a |
| Equity contracts | Swap contracts | — | | Swap contracts | 3,053,159 |
| Totals | | $3,861,452 | | | $5,921,361 |
| Franklin U.S. Core Bond ETF | | | | | |
| Interest rate contracts | Variation margin on futures contracts | $ 295,854a | | Variation margin on futures contracts | $ 9,038a |
| Totals | | $295,854 | | | $9,038 |
| aThis amount reflects the cumulative appreciation (depreciation) of future contracts as reported in the Schedule of Investments. Only the variation margin receivable/payable at period end is separately reported within the Statements of Assets and Liabilities. Prior variation margin movements were recorded to cash upon receipt or payment. |
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FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
9. Other Derivative Information (continued)
For the period ended September 30, 2024, the effect of derivative contracts in the Funds’ Statements of Operations was as follows:
Derivative Contracts
Not Accounted for as
Hedging Instruments | Statements of
Operations Locations | Net Realized
Gain (Loss)
for the Period | Statements of
Operations Locations | Net Change in
Unrealized
Appreciation
(Depreciation)
for the Period |
| Franklin Income Focus ETF | | | | |
| | Net realized gain (loss) from: | | Net change in unrealized
appreciation (depreciation) on: | |
| Equity contracts | Written options | $ 79,125 | Written options | $ 54,922 |
| Franklin International Aggregate Bond ETF | | | | |
| | Net realized gain (loss) from: | | Net change in unrealized
appreciation (depreciation) on: | |
| Foreign exchange contracts | Forward exchange contracts | $ 3,127,689 | Forward exchange contracts | $ (19,047,276) |
| Franklin Systematic Style Premia ETF | | | | |
| | Net realized gain (loss) from: | | Net change in unrealized
appreciation (depreciation) on: | |
| Foreign exchange contracts | Forward exchange contracts | $ 648,952 | Forward exchange contracts | $ 1,049,731 |
| Commodity contracts | Futures contracts | 2,272,028 | Futures contracts | (2,136,159) |
| Equity contracts | Futures contracts | (145,315) | Futures contracts | (282,585) |
| Interest rate contracts | Futures contracts | (174,893) | Futures contracts | 101,209 |
| Equity contracts | Swap contracts | — | Swap contracts | (3,053,159) |
| Totals | | $2,600,772 | | $(4,320,963) |
| Franklin U.S. Core Bond ETF | | | | |
| | Net realized gain (loss) from: | | Net change in unrealized
appreciation (depreciation) on: | |
| Interest rate contracts | Futures contracts | $ 1,877,911 | Futures contracts | $ 270,709 |
For the period ended September 30, 2024, the average month end notional amount of futures contracts, swap contracts, options and average month end contract value for forward exchange contracts were as follows:
| | Franklin Income Focus ETF | Franklin
International
Aggregate Bond
ETF | Franklin
Systematic
Style Premia
ETF | Franklin
U.S. Core
Bond ETF |
| Total Return Swaps | $ — | $ — | $ 87,132,648 | $ — |
| Futures contracts | $ — | $ — | $ 223,657,748 | $ 113,623,194 |
| Forward exchange contracts | $ — | $ 552,608,919 | $ 98,596,741 | $ — |
| Written Options | $ 12,500 | $ — | $ — | $ — |
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FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
9. Other Derivative Information (continued)
At September 30, 2024, the Funds’ OTC derivative assets and liabilities are as follows:
| | Gross and Net Amounts of
Assets and Liabilities
Presented in the
Statements of
Assets and Liabilities |
| | Assetsa | Liabilitiesa |
| Franklin International Aggregate Bond ETF | | |
| Foreign exchange contracts | $199,595 | $12,667,428 |
| Franklin Systematic Style Premia ETF | | |
| Total Return Swaps | $— | $3,053,159 |
| Foreign exchange contracts | $1,576,065 | $698,551 |
| aAbsent an event of default or early termination, OTC derivative assets and liabilities are presented gross and not offset in the Statements of Assets and Liabilities. |
At September 30, 2024, the Funds’ OTC derivative assets, which may be offset against the Funds’ OTC derivative liabilities and collateral received from the counterparty, are as follows:
| | | Amounts Not Offset in the
Statements of Assets and Liabilities | |
| | Gross and Net Amounts
of Assets Presented in
the Statements of
Assets and Liabilities | Financial
Instruments
Available for Offset | Financial
Instruments
Collateral
Receiveda | Cash
Collateral
Receiveda | Net Amount (Not
less than zero) |
Franklin International Aggregate Bond ETF
Counterparty | | | | | |
| BNPS | $ 156,146 | $ (156,146) | $ — | $ — | $ — |
| CITI | 43,449 | (43,449) | — | — | — |
| Total | $199,595 | $(199,595) | $— | $— | $— |
Franklin Systematic Style Premia ETF
Counterparty | | | | | |
| MSCO | $ 1,576,065 | $ (698,551) | $ — | $ — | $ 877,514 |
| aIn some instances, the collateral amounts disclosed in the table above were adjusted due to the requirement to limit collateral amounts to avoid the effect of overcollateralization. Actual collateral received and/or pledged may be more than the amounts disclosed herein. |
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FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
9. Other Derivative Information (continued)
At September 30, 2024, the Funds’ OTC derivative liabilities, which may be offset against the Funds’ OTC derivative assets and collateral pledged to the counterparty, are as follows:
| | | Amounts Not Offset in the
Statements of Assets and Liabilities | |
| | Gross and Net Amounts
of Liabilities Presented in
the Statements of
Assets and Liabilities | Financial
Instruments
Available for Offset | Financial
Instruments
Collateral
Pledgeda | Cash
Collateral
Pledgeda | Net Amount (Not
less than zero) |
Franklin International Aggregate Bond ETF
Counterparty | | | | | |
| BNPS | $ 3,970,972 | $ (156,146) | $ — | $ (3,814,826) | $ — |
| CITI | 8,696,456 | (43,449) | — | (8,653,007) | — |
| Total | $12,667,428 | $(199,595) | $— | $(12,467,833) | $— |
Franklin Systematic Style Premia ETF
Counterparty | | | | | |
| MSCO | $ 698,551 | $ (698,551) | $ — | $ — | $ — |
| MSCS | 3,053,159 | — | — | — | 3,053,159 |
| Total | $3,751,710 | $(698,551) | $— | $— | $3,053,159 |
| aIn some instances, the collateral amounts disclosed in the table above were adjusted due to the requirement to limit collateral amounts to avoid the effect of overcollateralization. Actual collateral received and/or pledged may be more than the amounts disclosed herein. |
See Note 1(c) regarding derivative financial instruments.
10. Fair Value Measurements
The Funds follow a fair value hierarchy that distinguishes between market data obtained from independent sources (observable inputs) and the Funds’ own market assumptions (unobservable inputs). These inputs are used in determining the value of the Funds’ financial instruments and are summarized in the following fair value hierarchy:
| • | Level 1 – quoted prices in active markets for identical financial instruments |
| • | Level 2 – other significant observable inputs (including quoted prices for similar financial instruments, interest rates, prepayment speed, credit risk, etc.) |
| • | Level 3 – significant unobservable inputs (including the Funds’ own assumptions in determining the fair value of financial instruments) |
The input levels are not necessarily an indication of the risk or liquidity associated with financial instruments at that level.
A summary of inputs used as of September 30, 2024, in valuing the Funds’ assets and liabilities carried at fair value, is as follows:
| | Level 1 | Level 2 | Level 3 | Total |
| Franklin Disruptive Commerce ETF | | | | |
| Assets: | | | | |
| Investments in Securities:a | | | | |
| Equity Investmentsb | $ 10,194,014 | $ — | $ — | $ 10,194,014 |
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FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
10. Fair Value Measurements (continued)
| | Level 1 | Level 2 | Level 3 | Total |
| Franklin Dynamic Municipal Bond ETF | | | | |
| Assets: | | | | |
| Investments in Securities:a | | | | |
| Corporate Bonds & Notes | $ — | $ 3,457,824 | $ — | $ 3,457,824 |
| Senior Floating Rate Interests | — | 873,811 | — | 873,811 |
| Municipal Bonds | — | 317,181,118 | — | 317,181,118 |
| Total Investments in Securities | $— | $321,512,753 | $— | $321,512,753 |
| Franklin Exponential Data ETF | | | | |
| Assets: | | | | |
| Investments in Securities:a | | | | |
| Equity Investmentsb | $ 5,811,235 | $ — | $ — | $ 5,811,235 |
| Short-Term Investments | 119,199 | — | — | 119,199 |
| Total Investments in Securities | $5,930,434 | $— | $— | $5,930,434 |
| Franklin Focused Growth ETF | | | | |
| Assets: | | | | |
| Investments in Securities:a | | | | |
| Equity Investmentsb | $ 122,749,884 | $ — | $ — | $ 122,749,884 |
| Short-Term Investments | 2,158,906 | — | — | 2,158,906 |
| Total Investments in Securities | $124,908,790 | $— | $— | $124,908,790 |
| Franklin Genomic Advancements ETF | | | | |
| Assets: | | | | |
| Investments in Securities:a | | | | |
| Equity Investmentsb | $ 9,660,358 | $ — | $ —c | $ 9,660,358 |
| Franklin High Yield Corporate ETF | | | | |
| Assets: | | | | |
| Investments in Securities:a | | | | |
| Corporate Bonds & Notes | $ — | $ 543,693,513 | $ —c | $ 543,693,513 |
| Senior Floating Rate Interests | — | 8,476,027 | — | 8,476,027 |
| Equity Investmentsb | 143,070 | — | — | 143,070 |
| U.S. Government & Agency Securities | — | 18,082,669 | — | 18,082,669 |
| Total Investments in Securities | $143,070 | $570,252,209 | $— | $570,395,279 |
| Franklin Income Equity Focus ETF | | | | |
| Assets: | | | | |
| Investments in Securities:a | | | | |
| Equity-Linked Securitiesb | $ — | $ 30,735,704 | $ — | $ 30,735,704 |
| Equity Investments | 62,558,852 | 1,812,703 | — | 64,371,555 |
| U.S. Government & Agency Securities | — | 854,890 | — | 854,890 |
| Total Investments in Securities | $62,558,852 | $33,403,297 | $— | $95,962,149 |
| Franklin Income Focus ETF | | | | |
| Assets: | | | | |
| Investments in Securities:a | | | | |
| Corporate Bonds & Notes | $ — | $ 132,589,102 | $ — | $ 132,589,102 |
| Equity-Linked Securities | — | 52,591,024 | — | 52,591,024 |
| Equity Investmentsb | 100,034,712 | — | — | 100,034,712 |
| U.S. Government & Agency Securities | — | 35,916,410 | — | 35,916,410 |
| Total Investments in Securities | $100,034,712 | $221,096,536 | $— | $321,131,248 |
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FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
10. Fair Value Measurements (continued)
| | Level 1 | Level 2 | Level 3 | Total |
| Franklin Intelligent Machines ETF | | | | |
| Assets: | | | | |
| Investments in Securities:a | | | | |
| Equity Investmentsb | $ 25,107,017 | $ — | $ —c | $ 25,107,017 |
| Franklin International Aggregate Bond ETF | | | | |
| Assets: | | | | |
| Investments in Securities:a | | | | |
| Foreign Government and Agency Securities | $ — | $ 558,309,918 | $ — | $ 558,309,918 |
| Corporate Bonds & Notes | — | 15,500,947 | — | 15,500,947 |
| U.S. Government & Agency Securities | — | 1,979,745 | — | 1,979,745 |
| Total Investments in Securities | $— | $575,790,610 | $— | $575,790,610 |
| Other Financial Instruments: | | | | |
| Forward Exchange Contracts | $ — | $ 199,595 | $ — | $ 199,595 |
| Liabilities: | | | | |
| Other Financial Instruments: | | | | |
| Forward Exchange Contracts | $ — | $ 12,667,428 | $ — | $ 12,667,428 |
| Franklin Investment Grade Corporate ETF | | | | |
| Assets: | | | | |
| Investments in Securities:a | | | | |
| Corporate Bonds & Notes | $ — | $ 556,558,180 | $ — | $ 556,558,180 |
| U.S. Government & Agency Securities | — | 24,547,979 | — | 24,547,979 |
| Total Investments in Securities | $— | $581,106,159 | $— | $581,106,159 |
| Franklin Municipal Green Bond ETF | | | | |
| Assets: | | | | |
| Investments in Securities:a | | | | |
| Municipal Bonds | $ — | $ 107,382,504 | $ — | $ 107,382,504 |
| Franklin Senior Loan ETF | | | | |
| Assets: | | | | |
| Investments in Securities:a | | | | |
| Corporate Bonds & Notes | $ — | $ 28,385,168 | $ — | $ 28,385,168 |
| Senior Floating Rate Interests | — | 506,906,616 | — | 506,906,616 |
| Asset-Backed Securities | — | 2,003,071 | — | 2,003,071 |
| Equity Investmentsb | 361,434 | — | — | 361,434 |
| U.S. Government & Agency Securities | — | 58,772,424 | — | 58,772,424 |
| Total Investments in Securities | $361,434 | $596,067,279 | $— | $596,428,713 |
| Other Financial Instruments: | | | | |
| Unfunded Loan Commitment | $ — | $ 836 | $ — | $ 836 |
| Franklin Systematic Style Premia ETF | | | | |
| Assets: | | | | |
| Investments in Securities:a | | | | |
| Equity Investmentsb | $ 104,847,519 | $ — | $ —c | $ 104,847,519 |
| Short-Term Investments | 85,551,218 | — | — | 85,551,218 |
| Total Investments in Securities | $190,398,737 | $— | $— | $190,398,737 |
| Other Financial Instruments: | | | | |
| Forward Exchange Contracts | $ — | $ 1,576,065 | $ — | $ 1,576,065 |
| Futures Contracts | 2,285,387 | — | — | 2,285,387 |
| Total Other Financial Instruments | $2,285,387 | $1,576,065 | $— | $3,861,452 |
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FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
10. Fair Value Measurements (continued)
| | Level 1 | Level 2 | Level 3 | Total |
| Franklin Systematic Style Premia ETF (continued) | | | | |
| Liabilities: | | | | |
| Other Financial Instruments: | | | | |
| Forward Exchange Contracts | $ — | $ 698,551 | $ — | $ 698,551 |
| Futures Contracts | 2,169,651 | — | — | 2,169,651 |
| Swap Contracts | — | 3,053,159 | — | 3,053,159 |
| Total Other Financial Instruments | $2,169,651 | $3,751,710 | $— | $5,921,361 |
| Franklin U.S. Core Bond ETF | | | | |
| Assets: | | | | |
| Investments in Securities:a | | | | |
| Corporate Bonds & Notes | $ — | $ 691,610,645 | $ — | $ 691,610,645 |
| Municipal Bonds | — | 19,470,637 | — | 19,470,637 |
| Foreign Government and Agency Securities | — | 15,481,336 | — | 15,481,336 |
| Asset-Backed Security | — | 6,141,834 | — | 6,141,834 |
| Commercial Mortgage-Backed Securities | — | 43,485,671 | — | 43,485,671 |
| U.S. Government & Agency Securities | — | 1,562,084,995 | — | 1,562,084,995 |
| Short-Term Investments | 47,058,720 | — | — | 47,058,720 |
| Total Investments in Securities | $47,058,720 | $2,338,275,118 | $— | $2,385,333,838 |
| Other Financial Instruments: | | | | |
| Futures Contracts | $ 295,854 | $ — | $ — | $ 295,854 |
| Liabilities: | | | | |
| Other Financial Instruments: | | | | |
| Futures Contracts | $ 9,038 | $ — | $ — | $ 9,038 |
| Franklin U.S. Treasury Bond ETF | | | | |
| Assets: | | | | |
| Investments in Securities:a | | | | |
| U.S. Government & Agency Securities | $ — | $ 873,316,210 | $ — | $ 873,316,210 |
| Short-Term Investments | 3,300,341 | — | — | 3,300,341 |
| Total Investments in Securities | $3,300,341 | $873,316,210 | $— | $876,616,551 |
| Franklin Ultra Short Bond ETF | | | | |
| Assets: | | | | |
| Investments in Securities:a | | | | |
| Corporate Bonds & Notes | $ — | $ 4,187,310 | $ — | $ 4,187,310 |
| Short-Term Investments | 2,021,189 | — | — | 2,021,189 |
| Total Investments in Securities | $2,021,189 | $4,187,310 | $— | $6,208,499 |
| aFor detailed categories, see the accompanying Schedules of Investments. |
| bIncludes common and preferred stocks, warrants, as well as other equity investments. |
| cIncludes financial instruments determined to have no value. |
11. Investments in FLSP Holdings Corporation
Franklin Systematic Style Premia ETF, (the “Fund”), invests in certain financial instruments and commodities/or commodity-linked derivative investments. The FLSP Holdings Corporation is a Cayman Islands exempted company with limited liability, is a wholly-owned subsidiary of the Fund, and is able to invest in certain financial instruments and/or commodity-linked derivative investments consistent with the investment objective of the Fund. At September 30, 2024, the Franklin Systematic Style Premia ETF investment(s) FLSP Holdings Corporation is reflected in the Fund’s Consolidated Schedule of Investments. At September 30, 2024, the net assets of the FLSP Holdings Corporation were $6,098,399, representing 3.31% of the Fund’s consolidated net assets. The Fund’s investment(s) in the FLSP Holdings Corporation is limited to 25% of consolidated assets.
| franklintempleton.com | Semi-Annual Report | 170 |
FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
12. Unfunded Loan Commitments
Certain or all Funds enters into certain credit agreements, all or a portion of which may be unfunded. The Funds are obligated to fund these loan commitments at the borrowers’ discretion. Unfunded loan commitments and funded portions of credit agreements are marked to market daily and any unrealized appreciation or depreciation is included in the Statements of Assets and Liabilities and the Statements of Operations. Funded portions of credit agreements are presented in the Schedules of Investments.
At September 30, 2024, unfunded commitments were as follows:
| Borrower | Unfunded
Commitment |
| Franklin Senior Loan ETF |
| Epicor Software Corp., due 5/30/2031 | $433,459 |
| Total | $433,459 |
13. New Accounting Pronouncements
In March 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2020-04, Reference Rate Reform (Topic 848) – Facilitation of the Effects of Reference Rate Reform on Financial Reporting. In January 2021 and December 2022, the FASB issued ASU No. 2021-01 and ASU No. 2022-06, with further amendments to Topic 848. The amendments in the ASUs provide optional temporary accounting recognition and financial reporting relief from the effect of certain types of contract modifications due to the planned discontinuation of the London Interbank Offered Rate (LIBOR) and other interbank-offered based reference rates as of the end of 2021 for certain LIBOR settings and 2023 for the remainder. The ASUs are effective for certain reference rate-related contract modifications that occur during the period March 12, 2020 through December 31, 2024. Management has reviewed the requirements and believes the adoption of these ASUs will not have a material impact on the financial statements.
14. Subsequent Events
The Funds have evaluated subsequent events through the issuance of these Financial Statements and determined that no events have occurred that require disclosure.
Abbreviations
| Selected Portfolio |
| ADR | American Depositary Receipt |
| AMT | Alternative Minimum Tax |
| CAC | Cotation Assistée en Continu (French Index) |
| CLO | Collateralized Loan Obligation |
| CSCDA | California Statewide Communities Development Authority |
| FRN | Floating Rate Note |
| LIBOR | London Interbank Offered Rate |
| OAT | Obligation Assumable by the Treasurer |
| PIK | Payment-In-Kind |
| REIT | Real Estate Investment Trust |
| SBA | Small Business Administration |
| SOFR | Secured Overnight Financing Rate |
| SPA | Standby Purchase Agreement |
| ULSD | Ultra-Low Sulfur Diesel |
| VRDN | Variable Rate Demand Note |
| Currency | |
| AUD | Australian Dollar |
| CAD | Canadian Dollar |
| CNY | Chinese Yuan Renminbi |
| EUR | Euro |
| GBP | United Kingdom Pound |
| JPY | Japanese Yen |
| MXN | Mexican Peso |
| PLN | Polish Zloty |
| SEK | Swedish Krona |
| USD | United States Dollar |
| Counterparty |
| BNPS | BNP Paribas SA. |
| CITI | CITIBANK |
| MSCO | Morgan Stanley |
| MSCS | Morgan Stanley Capital Services Inc. |
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| Changes In and Disagreements With Accountants | For the period covered in the report |
Not Applicable.
| Results of Meeting of Shareholders | For the period covered in the report |
Not Applicable.
| Remuneration Paid to Directors, Officers, and Others | For the period covered in the report |
Not applicable. Remuneration paid to directors, officers and others is included as part of the all-inclusive management fee and not paid directly by the fund.
| franklintempleton.com | Semi-Annual Report | 172 |
| Board Approval of Management and Subadvisory Agreements | For the period covered in the report |
FRANKLIN TEMPLETON ETF TRUST
Franklin Disruptive Commerce ETF
Franklin Dynamic Municipal Bond ETF
Franklin Exponential Data ETF
Franklin Genomic Advancements ETF
Franklin High Yield Corporate ETF
Franklin Intelligent Machines ETF
Franklin International Aggregate Bond ETF
Franklin Investment Grade Corporate ETF
Franklin Municipal Green Bond ETF
Franklin Senior Loan ETF
Franklin Systematic Style Premia ETF
Franklin Ultra Short Bond ETF
Franklin U.S. Core Bond ETF
Franklin Income Equity Focus ETF
(formerly known as Franklin U.S. Low Volatility ETF)
Franklin U.S. Treasury Bond ETF
(each a Fund)
At an in-person meeting held on May 29, 2024 (Meeting), the Board of Trustees (Board) of Franklin Templeton ETF Trust (Trust), including a majority of the trustees who are not “interested persons” as defined in the Investment Company Act of 1940 (Independent Trustees), reviewed and approved the continuance of (i) the investment management agreement between Franklin Advisers, Inc. (FAV) and the Trust, on behalf of each Fund (except the Franklin International Aggregate Bond ETF); (ii) an investment management agreement between Franklin Templeton Investment Management Limited (FTIML) and the Trust, on behalf of the Franklin International Aggregate Bond ETF; (iii) an investment sub-advisory agreement between FAV and Franklin Templeton Institutional, LLC (FT Institutional), an affiliate of FAV, on behalf of each of the Franklin Investment Grade Corporate ETF, Franklin U.S. Core Bond ETF and Franklin U.S. Treasury Bond ETF; and (iv) an investment sub-advisory agreement between FTIML and FAV, an affiliate of FTIML, on behalf of the Franklin International Aggregate Bond ETF (each a Management Agreement) for an additional one-year period. The Independent Trustees received advice from and met separately with Independent Trustee counsel in considering whether to approve the continuation of each Management Agreement. Although the Management Agreements for the Funds were considered at the same Board meeting, the Board considered the information provided to it about the Funds together and with respect to each Fund separately as the Board deemed appropriate. FAV, FTIML and FT Institutional are each referred to herein as a Manager.
In considering the continuation of each Management Agreement, the Board reviewed and considered information provided by each Manager at the Meeting and throughout the year at meetings of the Board and its committees. The Board also reviewed and considered information provided in response to a detailed set of requests for information submitted to each Manager by Independent Trustee counsel on behalf of the Independent Trustees in connection with the annual contract renewal process. In addition, prior to the Meeting, the Independent Trustees held a virtual contract renewal meeting at which the Independent Trustees first conferred amongst themselves and Independent Trustee counsel about contract renewal matters, and then met with management to request additional information that the Independent Trustees reviewed and considered prior to and at the Meeting. The Board reviewed and considered all of the factors it deemed relevant in approving the continuance of each Management Agreement, including, but not limited to: (i) the nature, extent and quality of the services provided by each Manager; (ii) the investment performance of each Fund; (iii) the costs of the services provided and profits realized by each Manager and its affiliates from the relationship with each Fund; (iv) the extent to which economies of scale are realized as each Fund grows; and (v) whether fee levels reflect these economies of scale for the benefit of Fund investors.
In approving the continuance of each Management Agreement, the Board, including a majority of the Independent Trustees, determined, through the exercise of its business judgment, that the terms of each Management Agreement are fair and reasonable and that the continuance of the Management Agreement is in the best interests of the applicable Fund and its
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| Board Approval of Management and Subadvisory Agreements | For the period covered in the report (continued) |
shareholders. While attention was given to all information furnished, the following discusses some primary factors relevant to the Board’s determination.
Nature, Extent and Quality of Services
The Board reviewed and considered information regarding the nature, extent and quality of investment management services provided by each Manager and its affiliates to the Funds and their shareholders. This information included, among other things, the qualifications, background and experience of the senior management and investment personnel of each Manager, as well as information on succession planning where appropriate; the structure of investment personnel compensation; oversight of third-party service providers; investment performance reports and related financial information for each Fund; reports on expenses and shareholder services; legal and compliance matters; risk controls; pricing and other services provided by each Manager and its affiliates; and management fees charged by each Manager and its affiliates to US funds and other accounts, including management’s explanation of differences among accounts where relevant. The Board acknowledged the ongoing integration of the Putnam family of funds into the Franklin Templeton (FT) family of funds and management’s continued development of strategies to address areas of heightened concern in the registered fund industry, including various regulatory initiatives and continuing geopolitical concerns. The Board also considered the investment management services that FAV provides to the Cayman Islands-based company, which is wholly owned by the Franklin Systematic Style Premia ETF (Cayman Subsidiary).
The Board also reviewed and considered the benefits provided to Fund shareholders of investing in a fund that is part of the FT family of funds. The Board noted the financial position of Franklin Resources, Inc. (FRI), the Managers’ parent, and its commitment to the registered fund business as evidenced by its continued introduction of new funds, reassessment of the fund offerings in response to FT acquisitions and the market environment, as well as project initiatives and capital investments relating to the services provided to the Funds by the FT organization. The Board specifically noted FT’s commitment to technological innovation and advancement, including its initiative to create a new enterprise-wide artificial intelligence platform.
Following consideration of such information, the Board was satisfied with the nature, extent and quality of services provided by each Manager and its affiliates to the Funds and their shareholders.
Fund Performance
The Board reviewed and considered the performance results of each Fund for various time periods ended December 31, 2023. The Board considered the performance returns for each Fund in comparison to the performance returns of registered funds deemed comparable to the Fund included in a universe (Performance Universe) selected by Broadridge Financial Solutions, Inc. (Broadridge), an independent provider of investment company data. The Board received a description of the methodology used by Broadridge to select the registered funds included in a Performance Universe. The Board also reviewed and considered Fund performance reports provided and discussions that occurred with portfolio managers at Board meetings throughout the year. The Board referenced earlier discussions with management on matters related to, among other things, the expansion and rationalization of the overall product line, including investments in novel asset classes, as well as the growth in assets from internal and external clients. In addition, the Board acknowledged information provided regarding management’s strategy to grow market share through the use of innovative data and technology and investments in marketing and distribution. The Board noted management’s high level of client engagement and the strength of its internal audit and compliance program. A summary of each Fund’s performance results is below.
Franklin Disruptive Commerce ETF - The Performance Universe for the Fund included the Fund and all retail and institutional consumer services funds and exchange-traded funds. The Fund commenced operations on February 25, 2020, and thus has been in operation for less than five years. The Board noted that Fund’s annualized total return for the for the one-year period was above the median and in the first quintile (best) of its Performance Universe, but for the three-year period was below the median of its Performance Universe and in the fifth quintile (worst) of its Performance Universe. The Board further noted that the Fund’s annualized total return for the one-year period was 38.76%. The Board concluded that the Fund’s performance was satisfactory.
Franklin Dynamic Municipal Bond ETF, Franklin High Yield Corporate ETF and Franklin Senior Loan ETF - The Performance Universe for the Franklin Dynamic Municipal Bond ETF included the Fund and all retail and institutional intermediate municipal
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debt funds and exchange-traded funds. The Performance Universe for the Franklin High Yield Corporate ETF included the Fund and all retail and institutional high yield funds and exchange-traded funds. The Performance Universe for the Franklin Senior Loan ETF included the Fund and all retail and institutional loan participation funds and exchange-traded funds. The Franklin Dynamic Municipal Bond ETF commenced operations on August 31, 2017 and the Franklin High Yield Corporate ETF and the Franklin Senior Loan ETF commenced operations on May 30, 2018, and thus have been in operation for less than 10 years. The Board noted that each Fund’s annualized total return for the one-, three- and five-year periods was above the median and in the first quintile (best) of its respective Performance Universe, except for the three-year period for Franklin High Yield Corporate ETF, which was in the second quintile. The Board also noted that, effective March 1, 2024, the Franklin Dynamic Municipal Bond ETF replaced its stated maturity guideline to maintain a dollar-weighted average portfolio maturity of three to ten years with a duration guideline to maintain an average effective duration of two to eight years. The Board concluded that each Fund’s performance was satisfactory.
Franklin Exponential Data ETF - The Performance Universe for the Fund included the Fund and all retail and institutional science and technology funds and exchange-traded funds. The Fund commenced operations on January 12, 2021, and thus had been in operation for less than three years. The Board noted that the Fund’s annualized total return for the one-year period was below the median of its Performance Universe. The Board also noted that, although below the median, the Fund’s annualized total return for the one-year period was 45.79%. The Board further noted the Fund’s short operating history. The Board concluded that the Fund’s performance was acceptable.
Franklin Genomic Advancements ETF, Franklin Intelligent Machines ETF, Franklin Ultra Short Bond ETF and Franklin U.S. Core Bond ETF - The Performance Universe for the Franklin Genomic Advancements ETF included the Fund and all retail and institutional health/biotechnology funds and exchange-traded funds. The Performance Universe for the Franklin Intelligent Machines ETF included the Fund and all retail and institutional science and technology funds and exchange-traded funds. The Performance Universe for the Franklin Ultra Short Bond ETF included the Fund and all retail and institutional ultra-short obligation funds and exchange-traded funds. The Performance Universe for the Franklin U.S. Core Bond ETF included the Fund and all retail and institutional core bond funds and exchange-traded funds. The Franklin Genomic Advancements ETF and the Franklin Intelligent Machines ETF commenced operations on February 25, 2020, the Franklin Ultra Short Bond ETF commenced operations on July 14, 2020 and the Franklin U.S. Core Bond ETF commenced operations on September 17, 2019, and thus have been in operation for less than five years. The Board noted that each Fund’s annualized total return for the one- and three-year periods was below the median of its respective Performance Universe. The Board also noted each Fund’s short operating history. The Board concluded that each Fund’s Management Agreement should be continued for an additional one-year period, while management’s efforts continue to be closely monitored.
Franklin International Aggregate Bond ETF - The Performance Universe for the Fund included the Fund and all retail and institutional international income funds and exchange-traded funds. The Fund commenced operations on May 30, 2018, and thus has all been in operation for less than 10 years. The Board noted that Fund’s annualized total return for the for the three- and five-year periods was above the median of its Performance Universe, but for the one-year period was below the median of its Performance Universe. The Board further noted that, although below median, the Fund’s one-year annualized return was 6.35%. The Board concluded that the Fund’s performance was satisfactory.
Franklin Investment Grade Corporate ETF and Franklin Income Equity Focus ETF - The Performance Universe for the Franklin Investment Grade Corporate ETF included the Fund and all retail and institutional BBB-rated corporate debt funds and exchange-traded funds. The Performance Universe for the Franklin Income Equity Focus ETF included the Fund and all retail and institutional large-cap core funds and exchange-traded funds. The Franklin Investment Grade Corporate ETF commenced operations on October 3, 2016 and the Franklin Income Equity Focus ETF commenced operations on September 20, 2016, and thus have been in operation for less than 10 years. The Board noted that each Fund’s annualized total return for the one-, three- and five-year periods was below the median of its respective Performance Universe.
The Board discussed the performance of the Franklin Investment Grade Corporate ETF with management and management explained that the Fund’s relative underperformance in comparison to its Performance Universe was due, in part, to the Fund having less exposure to high yield securities than its Performance Universe peers, noting that high yield securities strongly outperformed investment grade bonds during the one-year period. Management also explained that most of the Fund’s
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one-year underperformance was attributable to security selection and, in particular, the Fund’s exposure to Silicon Valley Bank. The Board noted management’s representations regarding the actions that management is taking/has taken in an effort to improve the overall performance of the Fund, including the addition of a portfolio manager in 2023 and the implementation of an enhanced portfolio construction approach, although management confirmed its conviction in the Fund’s current portfolio positioning at this time.
The Board discussed the performance of the Franklin Income Equity Focus ETF with management and management explained that the Fund’s relative underperformance in comparison to its Performance Universe was due, in part, to the impact of the Fund’s volatility constraint as compared to its Performance Universe peers that pursue higher market beta strategies. Management explained that the Fund’s security selection in the information technology sector and, in particular, holding underweight positions in the handful of issuers that drove the strong performance for the sector in the one-year period, also adversely impacted relative performance. The Board noted management’s representations regarding the actions that management is taking/has taken in an effort to improve the overall performance of the Fund, including the repositioning of the Fund which effective May 31, 2024, would include the Fund changing its name, ticker symbol, investment goal, strategies and policies (including the Fund’s 80% investment policy), primary benchmark index, and other related changes.
The Board concluded that each Fund’s Management Agreement should be continued for an additional one-year period, while management’s efforts continue to be closely monitored.
Franklin Municipal Green Bond ETF - The Performance Universe for the Fund included the Fund and all retail and institutional general and insured municipal debt funds and exchange-traded funds. The Fund commenced operations on August 31, 2017, and thus has been in operation for less than 10 years. The Board noted that the Fund’s annualized total return for the for the one- and five-year periods was above the median of its Performance Universe, but for the three-year period was below the median of its Performance Universe. The Board further noted the repositioning of the Fund which effective May 3, 2022, changed its name and principal investment strategies to invest, under normal circumstances, at least 80% of its net assets in municipal green bonds. The Board concluded that the Fund’s performance was satisfactory.
Franklin Systematic Style Premia ETF and Franklin U.S. Treasury Bond ETF - The Performance Universe for the Franklin Systematic Style Premia ETF included the Fund and all retail and institutional absolute-return funds and exchange-traded funds. The Performance Universe for the Franklin U.S. Treasury Bond ETF included the Fund and all retail and institutional general US Treasury funds and exchange-traded funds. The Franklin Systematic Style Premia ETF commenced operations on December 18, 2019 and the Franklin U.S. Treasury Bond ETF commenced operations on June 9, 2020, and thus have been in operation for less than five years. The Board noted that each Fund’s annualized total return for the one- and three-year periods was above the median of its respective Performance Universe. The Board concluded that each Fund’s performance was satisfactory.
Comparative Fees and Expenses
The Board reviewed and considered information regarding each Fund’s actual total expense ratio, noting that each Fund pays a Unified Fee (as defined below). The Board considered the actual total expense ratio and, separately, the contractual management fee rate, without the effect of fee waivers, if any (Management Rate), of each Fund in comparison to the median expense ratio and median Management Rate, respectively, of other exchange-traded funds deemed comparable to and with a similar expense structure to the Fund selected by Broadridge (Expense Group). Broadridge fee and expense data is based upon information taken from each fund’s most recent annual or semi-annual report, which reflects historical asset levels that may be quite different from those currently existing, particularly in a period of market volatility. While recognizing such inherent limitation and the fact that expense ratios and Management Rates generally increase as assets decline and decrease as assets grow, the Board believed the independent analysis conducted by Broadridge to be an appropriate measure of comparative fees and expenses. The Broadridge Management Rate includes administrative charges. The Board received a description of the methodology used by Broadridge to select the exchange-traded funds included in an Expense Group.
Franklin Disruptive Commerce ETF, Franklin Exponential Data ETF, Franklin Genomic Advancements ETF, Franklin High Yield Corporate ETF, Franklin Intelligent Machines ETF, Franklin International Aggregate Bond ETF, Franklin Municipal Green Bond ETF, Franklin Senior Loan ETF, Franklin Systematic Style Premia ETF, Franklin Ultra Short Bond ETF, Franklin U.S. Core
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Bond ETF and Franklin Income Equity Focus ETF - The Expense Group for the Franklin Disruptive Commerce ETF was comprised of actively managed exchange-traded funds, which included the Fund, two other consumer services funds, two global science/technology funds and one financial services fund. The Expense Group for the Franklin Exponential Data ETF was comprised of actively managed exchange-traded funds, which included the Fund, and 10 other science and technology funds. The Expense Group for the Franklin Genomic Advancements ETF was comprised of actively managed exchange-traded funds, which included the Fund, five other health/biotechnology funds, and three global health/biotechnology funds. The Expense Group for the Franklin High Yield Corporate ETF was comprised of actively managed exchange-traded funds, which included the Fund and nine other high yield funds. The Expense Group for the Franklin Intelligent Machines ETF was comprised of actively managed exchange-traded funds, which included the Fund and 10 other science and technology funds. The Expense Group for the Franklin International Aggregate Bond ETF was comprised of exchange-traded funds, which included the Fund and five other international income funds. The Expense Group for the Franklin Municipal Green Bond ETF was comprised of actively managed exchange-traded funds, which included the Fund, four other general and insured municipal debt funds and three high yield municipal debt funds. The Expense Group for the Franklin Senior Loan ETF was comprised of actively managed exchange-traded funds, which included the Fund and 12 other loan participation funds. The Expense Group for the Franklin Systematic Style Premia ETF was comprised of actively managed exchange-traded funds, which included the Fund, which is currently classified as an absolute-return fund, and six alternative long/short equity funds. The Expense Group for the Franklin Ultra Short Bond ETF was comprised of actively managed exchange-traded funds, which included the Fund and eight other ultra-short obligation funds. The Expense Group for the Franklin U.S. Core Bond ETF was comprised of actively managed exchange-traded funds, which included the Fund, four other core bond funds, and five core plus bond funds. The Expense Group for the Franklin Income Equity Focus ETF was comprised of managed volatility actively managed exchange-traded funds, which included the Fund, two other large-cap core funds, two multi-cap value funds and two multi-cap core funds. The Board noted that the Management Rate and actual total expense ratio for each Fund were below the medians of its respective Expense Group. The Board further noted that each Fund has a unified management fee (Unified Fee) and that pursuant to the Unified Fee arrangement the applicable Manager reimburses each Fund for all of its acquired fund fees and expenses (if any) and pays all of the ordinary operating expenses of the Fund, except for (i) the Fund’s Unified Fee, (ii) future Rule 12b-1 fees (if any), (iii) brokerage expenses, (iv) taxes, (v) interest (including borrowing costs and dividend expenses on securities sold short and overdraft charges), (vi) litigation expenses (including litigation to which the Trust or the Fund may be a party and indemnification of the Trustees and officers with respect thereto), and (vii) other non-routine or extraordinary expenses (Unified Fee Arrangement). The Board further noted that FAV is paid by FTIML out of the management fee FTIML receives from the Franklin International Aggregate Bond ETF and that the allocation of the fee between FTIML and FAV reflected the services provided by each to the Fund. The Board also noted that FT Institutional is paid by FAV out of the management fee FAV receives from the Franklin U.S. Core Bond ETF and that the allocation of the fee between FAV and FT Institutional reflected the services provided by each to the Fund. The Board also noted the small size of the Franklin International Aggregate Bond ETF’s Expense Group for its Management Rate. The Board concluded that the Management Rate charged to each Fund and the sub-advisory fee paid to each of FAV and FT Institutional are reasonable.
Franklin Dynamic Municipal Bond ETF - The Expense Group for the Fund was comprised of actively managed exchange-traded funds, which included the Fund and eight other intermediate municipal debt funds. The Board noted that the Management Rate for the Fund was below the median of its Expense Group, and the actual total expense ratio was equal to the median of its Expense Group. The Board further noted the Fund’s Unified Fee. The Board also noted the terms of the Unified Fee Arrangement. The Board concluded that the Management Rate charged to the Fund is reasonable.
Franklin Investment Grade Corporate ETF - The Expense Group for the Fund was comprised of actively managed exchange-traded funds, which included the Fund and three other BBB-rated corporate debt funds. The Board noted that the Management Rate for the Fund was above the median of its Expense Group, but its actual total expense ratio was below the median of its Expense Group. The Board discussed the above median Management Rate with management and management explained that the Fund was ranked third out of the four funds in its Expense Group, noting certain factors that differentiated the Fund’s expenses from those of its peers. The Board further noted the Fund’s Unified Fee. The Board also noted the terms of the Unified Fee Arrangement. The Board also noted that FT Institutional is paid by FAV out of the management fee FAV receives from the Fund and that the allocation of the fee between FAV and FT Institutional reflected the services provided by
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each to the Fund. The Board also noted the small size of the Fund’s Expense Group and that therefore no quintile information was available for the Fund. After consideration of the above, the Board concluded that the Management Rate charged to the Fund and the sub-advisory fee paid to FT Institutional are reasonable.
Franklin U.S. Treasury Bond ETF - The Expense Group for the Fund was comprised of exchange-traded funds, which included the Fund and six other general US Treasury funds. The Board noted that the Management Rate and actual total expense ratio for the Fund were above the medians of its Expense Group. The Board discussed the above median Management Rate and actual total expense ratio with management and management explained that many of the Fund’s Expense Group peers are passively managed whereas the Fund is actively managed. The Board further noted the Fund’s Unified Fee. The Board also noted the terms of the Unified Fee Arrangement. The Board also noted that FT Institutional is paid by FAV out of the management fee FAV receives from the Fund and that the allocation of the fee between FAV and FT Institutional reflected the services provided by each to the Fund. After consideration of the above, the Board concluded that the Management Rate charged to the Fund and the sub-advisory fee paid to FT Institutional are reasonable.
Profitability
The Board reviewed and considered information regarding the profits realized by each Manager and its affiliates in connection with the operation of each Fund. In this respect, the Board considered the Fund profitability analysis provided by the Manager that addresses the overall profitability of FT’s US fund business, as well as its profits in providing investment management and other services to each of the individual Funds during the 12-month period ended September 30, 2023 (the most recent fiscal year-end for FRI). The Board noted that although management continually makes refinements to its methodologies used in calculating profitability in response to organizational and product-related changes, the overall methodology has remained consistent with that used in the Funds’ profitability report presentations from prior years. The Board also noted that an independent registered public accounting firm has been engaged by the Manager to periodically review and assess the allocation methodologies to be used solely by the Funds’ Board with respect to the profitability analysis.
The Board noted management’s belief that costs incurred in establishing the infrastructure necessary for the type of fund operations conducted by each Manager and its affiliates may not be fully reflected in the expenses allocated to each Fund in determining its profitability, as well as the fact that the level of profits, to a certain extent, reflected operational cost savings and efficiencies initiated by management. As part of this evaluation, the Board considered management’s outsourcing of certain operations, which effort has required considerable up-front expenditures but, over the long run, is expected to result in greater efficiencies. The Board also noted management’s expenditures in improving shareholder services provided to the Funds, as well as the need to implement systems and meet additional regulatory and compliance requirements resulting from recent US Securities and Exchange Commission and other regulatory requirements.
The Board also considered the extent to which each Manager and its affiliates might derive ancillary benefits from fund operations, including potential benefits resulting from personnel and systems enhancements necessitated by fund growth, as well as increased leverage with service providers and counterparties. Based upon its consideration of all these factors, the Board concluded that the level of profits realized by each Manager and its affiliates from providing services to each Fund was not excessive in view of the nature, extent and quality of services provided to each Fund.
Economies of Scale
The Board reviewed and considered the extent to which each Manager may realize economies of scale, if any, as each Fund grows larger and whether each Fund’s management fee structure reflects any economies of scale for the benefit of shareholders. The Board considered that each Fund would likely experience benefits from the Unified Fee at the Fund’s projected asset levels because of the applicable Manager’s contractual requirement to bear most of the Fund’s ordinary operating expenses. The Board noted that, under the Unified Fee, it is not anticipated that any of the Funds will generate significant, if any, profit for the applicable Manager and/or its affiliates for some time. The Board considered the Manager’s view that any analyses of potential economies of scale in managing a particular fund are inherently limited in light of the joint and common costs and investments the Managers incur across the FT family of funds as a whole. The Board also noted that, as of December 31, 2023, each Fund (except for the Franklin Investment Grade Corporate ETF and the Franklin U.S. Core Bond ETF) had net assets below $500 million (and in most cases much less) and thus did not have an asset size that would likely enable them to achieve economies of scale. The Board also noted management’s representation that for the fiscal year
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ended September 30, 2023, none of these Funds experienced a profit. The Board recognized that there would not likely be any economies of scale for these Funds until their assets grow. The Board also noted management’s representation that the Franklin Investment Grade Corporate ETF and the Franklin U.S. Core Bond ETF had net assets of $643 million and $1.80 billion, respectively, as of December 31, 2023, and experienced a profit for the fiscal year ended September 30, 2023. The Board concluded that to the extent economies of scale may be realized by the Manager and its affiliates, each Fund’s management fee structure provided a sharing of benefits with a Fund and its shareholders as the Fund grows.
Conclusion
Based on its review, consideration and evaluation of all factors it believed relevant, including the above-described factors and conclusions, the Board unanimously approved the continuation of each Management Agreement for an additional one-year period.
FRANKLIN TEMPLETON ETF TRUST
Franklin Focused Growth ETF
(Fund)
At a meeting held on November 18, 2022 (Meeting), the Board of Trustees (Board) of Franklin Templeton ETF Trust (Trust), including a majority of the trustees who are not “interested persons” as defined in the Investment Company Act of 1940 (Independent Trustees), reviewed and approved an investment management agreement between Franklin Advisers, Inc. (Manager) and the Trust on behalf of the Fund (Management Agreement) for an initial two-year period. The Independent Trustees received advice from and met separately with Independent Trustee counsel in considering whether to approve the Management Agreement.
In considering the approval of the Management Agreement, the Board reviewed and considered information provided by the Manager at the Meeting and throughout the year at meetings of the Board and its committees. The Board reviewed and considered all of the factors it deemed relevant in approving the Management Agreement, including, but not limited to: (i) the nature, extent and quality of the services to be provided by the Manager; (ii) the costs of the services to be provided by the Manager; and (iii) the extent to which economies of scale may be realized as the Fund grows. The Board also considered management’s representation that the Fund was being established to acquire the assets of the Franklin Focused Growth Fund (Target Fund), a series of Franklin Custodian Funds, in connection with the proposed shell reorganization of the Target Fund into the Fund. The Board further considered management’s representation that the Fund would have investment policies and strategies that are substantially similar to the Target Fund. The Board also reviewed and considered the form of Management Agreement and the terms of the Management Agreement which were explained at the Meeting, noting that the Manager would provide general investment management and administrative services and that the Fund would operate under a unified management fee structure consistent with the current management fee structure for most of the existing Franklin Templeton (FT) exchange-traded funds.
In approving the Management Agreement, the Board, including a majority of the Independent Trustees, determined that the terms of the proposed Management Agreement are fair and reasonable and that such Management Agreement is in the best interests of the Fund and its shareholders. While attention was given to all information furnished, the following discusses some primary factors relevant to the Board’s determination.
Nature, Extent and Quality of Services
The Board reviewed and considered information regarding the nature, extent and quality of investment management services to be provided by the Manager and its affiliates to the Fund and its shareholders. This information included, among other things, the Fund’s proposed investment strategies and the ability of the Manager to implement such investment strategies; the qualifications, background and experience of the investment personnel that will be responsible for the day-to-day portfolio management of the Fund; the Manager’s experience as the manager of other funds and accounts, including other series of the Trust and other funds in the FT family of funds; the Manager’s strength and reputation within the industry; the personnel, operations, financial condition, and investment management capabilities, methodologies and resources of the Manager; and the Manager’s compliance capabilities, as demonstrated by, among other things, its policies and procedures reasonably designed to prevent violations of the Federal Securities Laws (as defined in Rule 38a-1 of the Investment Company Act of
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1940). Following consideration of such information, the Board was satisfied with the nature, extent and quality of services to be provided by the Manager and its affiliates to the Fund and its shareholders.
Fund Performance
The Board noted that the Fund was being established to acquire the assets of the Target Fund in connection with the proposed shell reorganization of the Target Fund into the Fund and that the current investment adviser and portfolio manager for the Target Fund would advise and manage the Fund. Accordingly, the Board further noted the historical performance information of the Target Fund and that the Fund would maintain the Target Fund’s performance history. The Board considered the proposed performance benchmark for the Fund and how such benchmark would be utilized to measure performance of the Manager.
Comparative Fees and Expenses
The Board reviewed and considered information regarding the Fund’s proposed total expense ratio, noting that the Fund will pay a Unified Fee (as defined below). The Board considered the proposed total expense ratio and, separately, the proposed contractual unified fee rate, without the effect of fee waivers, if any (Management Rate) of the Fund in comparison to the median expense ratio and median Management Rate, respectively, of other exchange-traded funds deemed comparable to and with a similar expense structure as the Fund (Expense Group) as selected by Broadridge Financial Solutions, Inc. (Broadridge), an independent provider of investment company data. Broadridge fee and expense data is based upon information taken from each fund’s most recent annual report (excluding the Fund), which reflects historical asset levels that may be quite different from those currently existing, particularly in a period of market volatility. While recognizing such inherent limitation and the fact that expense ratios and Management Rates generally increase as assets decline and decrease as assets grow, the Board believed the independent analysis conducted by Broadridge to be an appropriate measure of comparative fees and expenses. The Broadridge Management Rate includes administrative charges. The Board received a description of the methodology used by Broadridge to select the exchange-traded funds included in an Expense Group.
The Expense Group for the Fund was comprised of actively managed exchange-traded funds, which included the Fund and six other large-cap growth funds. The Board noted that the proposed Management Rate and total expense ratio for the Fund was below the median of its Expense Group. The Board also noted that the Fund proposed to implement a unified management fee (Unified Fee). The Board further noted that pursuant to the Unified Fee arrangement the Manager would reimburse the Fund for all of its acquired fund fees and expenses (if any) and pay all of the ordinary operating expenses of the Fund, except for (i) the Fund’s Unified Fee, (ii) payments under the Fund’s Rule 12b-1 plan (if any), (iii) brokerage expenses, (iv) taxes, (v) interest (including borrowing costs and dividend expenses on securities sold short and overdraft charges), (vi) litigation expenses (including litigation to which the Trust or the Fund may be a party and indemnification of the Trustees and officers with respect thereto), and (vii) other non-routine or extraordinary expenses. The Board concluded that the Management Rate to be charged to the Fund is reasonable.
Profitability
The Board noted that the Manager (and its affiliates) could not report any financial results from their relationships with the Fund because the Fund has not commenced investment operations, and thus, the Board could not evaluate the Manager’s (or its affiliates’) profitability with respect to the Fund.
Economies of Scale
The Board reviewed and considered the extent to which the Manager may realize economies of scale, if any, as the Fund grows larger and whether the Fund’s management fee structure reflects any economies of scale for the benefit of shareholders. With respect to possible economies of scale in the future, the Board noted that it is not anticipated that the Fund will generate significant, if any, profit for the Manager and/or its affiliates for some time.
Conclusion
Based on its review, consideration and evaluation of all factors it believed relevant, including the above-described factors and conclusions, the Board unanimously approved the Management Agreement for the Fund for an initial two-year period.
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FRANKLIN TEMPLETON ETF TRUST
Franklin Income Focus ETF
(Fund)
At a meeting held on March 3, 2023 (Meeting), the Board of Trustees (Board) of Franklin Templeton ETF Trust (Trust), including a majority of the trustees who are not “interested persons” as defined in the Investment Company Act of 1940 (Independent Trustees), reviewed and approved an investment management agreement between Franklin Advisers, Inc. (Manager) and the Trust, on behalf of the Fund, for an initial two-year period (the Management Agreement). The Independent Trustees received advice from and met separately with Independent Trustee counsel in considering whether to approve the Management Agreement.
In considering the approval of the Management Agreement, the Board reviewed and considered information provided by the Manager at the Meeting and throughout the year at meetings of the Board and its committees. The Board reviewed and considered all of the factors it deemed relevant in approving the Management Agreement, including, but not limited to: (i) the nature, extent and quality of the services to be provided by the Manager; (ii) the costs of the services to be provided by the Manager; and (iii) the extent to which economies of scale may be realized as the Fund grows. The Board also reviewed and considered the form of the Management Agreement and the terms of the Management Agreement which were explained at the Meeting. The Board noted that the Manager would provide general investment management and administrative services and that the Fund would operate under a unified management fee structure whereby the Manager would reimburse the Fund for all acquired fund fees and expenses and pay all of the ordinary operating expenses of the Fund, except for certain excluded items (Unified Fee). The Board also noted that the Unified Fee was consistent with the current management fee structure for the existing Franklin Templeton (FT) exchange-traded funds.
In approving the Management Agreement, the Board, including a majority of the Independent Trustees, determined that the terms of the proposed Management Agreement are fair and reasonable and that such Management Agreement is in the best interests of the Fund and its shareholders. While attention was given to all information furnished, the following discusses some primary factors relevant to the Board’s determination.
Nature, Extent and Quality of Services
The Board reviewed and considered information regarding the nature, extent and quality of investment management services to be provided by the Manager and its affiliates to the Fund and its shareholders. This information included, among other things, the Fund’s proposed investment strategies and the ability of the Manager to implement such investment strategies; the qualifications, background and experience of the investment personnel that will be responsible for the day-to-day portfolio management of the Fund; the Manager’s experience as the Manager of other funds and accounts, including other series of the Trust and other funds in the FT family of funds; the Manager’s strength and reputation within the industry; the personnel, operations, financial condition, and investment management capabilities, methodologies and resources of the Manager; and the Manager’s compliance capabilities, as demonstrated by, among other things, its policies and procedures reasonably designed to prevent violations of the Federal Securities Laws (as defined in Rule 38a-1 of the Investment Company Act of 1940). Following consideration of such information, the Board was satisfied with the nature, extent and quality of services to be provided by the Manager and its affiliates to the Fund and its shareholders.
Fund Performance
The Board noted that, as the Fund had not yet commenced investment operations, there was no investment performance for the Fund. The Board also considered the proposed performance benchmark for the Fund and how such benchmark would be utilized to measure performance of the Manager.
Comparative Fees and Expenses
The Board reviewed and considered information regarding the Fund’s estimated total expense ratio, noting that the Fund will pay a Unified Fee. The Board considered the estimated total expense ratio and, separately, the proposed contractual Unified Fee, without the effect of fee waivers, if any (Management Rate) of the Fund in comparison to the median expense ratio and median Management Rate, respectively, of other exchange-traded funds deemed comparable to and with a similar expense
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| Board Approval of Management and Subadvisory Agreements | For the period covered in the report (continued) |
structure as the Fund (Expense Group) as selected by Broadridge Financial Solutions, Inc. (Broadridge), an independent provider of investment company data. Broadridge fee and expense data is based upon information taken from each fund’s most recent annual report (excluding the Fund), which reflects historical asset levels that may be quite different from those currently existing, particularly in a period of market volatility. While recognizing such inherent limitation and the fact that expense ratios and Management Rates generally increase as assets decline and decrease as assets grow, the Board believed the independent analysis conducted by Broadridge to be an appropriate measure of comparative fees and expenses. The Broadridge Management Rate includes administrative charges. The Board received a description of the methodology used by Broadridge to select the exchange-traded funds included in the Expense Group.
The Expense Group for the Fund was comprised of actively managed exchange-traded funds, which included the Fund and nine other flexible portfolio funds. The Board noted that the proposed Management Rate and estimated total expense ratio for the Fund were below the median of its Expense Group. The Board noted that pursuant to the proposed Unified Fee arrangement the Manager would reimburse the Fund for all of its acquired fund fees and expenses (if any) and pay all of the ordinary operating expenses of the Fund, except for (i) the Fund’s Unified Fee, (ii) payments under the Fund’s Rule 12b-1 plan (if any), (iii) brokerage expenses (including any costs incidental to transactions in portfolio securities or instruments), (iv) taxes, (v) interest (including borrowing costs and dividend expenses on securities sold short and overdraft charges), (vi) litigation expenses (including litigation to which the Trust or the Fund may be a party and indemnification of the Trustees and officers with respect thereto), and (vii) other non-routine or extraordinary expenses. After consideration of the above, the Board concluded that the Management Rate to be charged to the Fund is reasonable.
Profitability
The Board noted that the Manager (and its affiliates) could not report any financial results from their relationships with the Fund because the Fund has not yet commenced investment operations, and thus, the Board could not evaluate the Manager’s (or its affiliates’) profitability with respect to the Fund.
Economies of Scale
The Board reviewed and considered the extent to which the Manager may realize economies of scale, if any, as the Fund grows larger and whether the Fund’s management fee structure reflects any economies of scale for the benefit of shareholders. With respect to possible economies of scale in the future, the Board noted that it is not anticipated that the Fund will generate significant, if any, profit for the Manager and/or its affiliates for some time.
Conclusion
Based on its review, consideration and evaluation of all factors it believed relevant, including the above-described factors and conclusions, the Board unanimously approved the Management Agreement for the Fund for an initial two-year period.
| franklintempleton.com | Semi-Annual Report | 182 |
© 2024 Franklin Templeton Investments. All rights reserved.
Franklin Templeton
ETF Trust
Financial Statements and Other Important Information
| Semi-Annual | September 30, 2024 |
| Franklin FTSE Asia ex Japan ETF |
| Franklin FTSE Australia ETF |
| Franklin FTSE Brazil ETF |
| Franklin FTSE Canada ETF |
| Franklin FTSE China ETF |
| Franklin FTSE Europe ETF |
| Franklin FTSE Eurozone ETF |
| Franklin FTSE Germany ETF |
| Franklin FTSE Hong Kong ETF |
| Franklin FTSE India ETF |
| Franklin FTSE Japan ETF |
| Franklin FTSE Japan Hedged ETF |
| Franklin FTSE Latin America ETF |
| Franklin FTSE Saudi Arabia ETF |
| Franklin FTSE South Korea ETF |
| Franklin FTSE Switzerland ETF |
| Franklin FTSE Taiwan ETF |
| Franklin FTSE United Kingdom ETF |
| Semi-Annual Report | franklintempleton.com |
| 1 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Financial Highlights
Franklin FTSE Asia ex Japan ETF
| | Six Months Ended
September 30, 2024
(unaudited) | Year Ended March 31, |
| | 2024 | 2023 | 2022 | 2021 | 2020 |
| Per share operating performance | | | | | | |
| (for a share outstanding throughout the period) | | | | | | |
| Net asset value, beginning of period | $21.85 | $21.41 | $24.22 | $28.60 | $18.39 | $21.86 |
| Income from investment operationsa: | | | | | | |
| Net investment incomeb | 0.35 | 0.49 | 0.57 | 0.55 | 0.44 | 0.49 |
| Net realized and unrealized gains (losses) | 3.42 | 0.42 | (2.79) | (4.31) | 10.21 | (3.46) |
| Total from investment operations | 3.77 | 0.91 | (2.22) | (3.76) | 10.65 | (2.97) |
| Less distributions from net investment income | (0.36) | (0.47) | (0.59) | (0.62) | (0.44) | (0.50) |
| Net asset value, end of period | $25.26 | $21.85 | $21.41 | $24.22 | $28.60 | $18.39 |
| Total returnc | 17.74% | 4.32% | (9.10)% | (13.34)% | 58.16% | (13.88)% |
| Ratios to average net assetsd | | | | | | |
| Expenses before waiver and payments by affiliates | 0.19% | 0.19% | 0.19% | 0.19% | 0.19% | 0.19% |
| Expenses net of waiver and payments by affiliates | 0.19% | 0.19% | 0.19% | 0.19% | 0.19% | 0.19% |
| Net investment income | 3.07% | 2.32% | 2.67% | 2.01% | 1.78% | 2.32% |
| Supplemental data | | | | | | |
| Net assets, end of period (000’s) | $30,318 | $34,965 | $29,980 | $38,751 | $34,317 | $14,712 |
| Portfolio turnover ratee | 2.64%f | 23.97%f | 5.85%f | 10.09%f | 11.45%f | 11.42%f |
| aThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of Creation Unit Fund shares in relation to income earned and/or fluctuating fair value of the investments of the Fund. |
| bBased on average daily shares outstanding. |
| cTotal return is not annualized for periods less than one year. Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. |
| dRatios are annualized for periods less than one year. |
| ePortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash ("Cash creations"). |
| fPortfolio turnover rate excluding cash creations was as follows: | 2.64% | 7.41% | 5.85% | 9.63% | 11.45% | 11.42% |
| franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Semi-Annual Report | 2 |
Franklin Templeton ETF Trust
Schedule of Investments, September 30, 2024 (unaudited)
Franklin FTSE Asia ex Japan ETF
| | | Industry | Shares | | Value |
| | Common Stocks 100.2% | | | | |
| | Cambodia 0.0%† | | | | |
| a | NagaCorp Ltd. | Hotels, Restaurants & Leisure | 6,000 | | $ 2,881 |
| | China 31.4% | | | | |
| | 360 Security Technology, Inc., Class A | Software | 2,400 | | 3,021 |
| | 37 Interactive Entertainment Network Technology Group Co. Ltd., Class A | Entertainment | 600 | | 1,535 |
| b | 3SBio, Inc., Class A | Biotechnology | 6,000 | | 5,307 |
| | AAC Technologies Holdings, Inc., Class H | Electronic Equipment, Instruments & Components | 2,500 | | 10,267 |
| | Advanced Micro-Fabrication Equipment, Inc. China, Class A | Semiconductors & Semiconductor Equipment | 245 | | 5,741 |
| | AECC Aero-Engine Control Co. Ltd., Class A | Aerospace & Defense | 400 | | 1,255 |
| | AECC Aviation Power Co. Ltd., Class A | Aerospace & Defense | 700 | | 4,130 |
| | Agricultural Bank of China Ltd., Class A | Banks | 22,800 | | 15,637 |
| | Agricultural Bank of China Ltd., Class H | Banks | 120,000 | | 56,543 |
| | Aier Eye Hospital Group Co. Ltd., Class A | Health Care Providers & Services | 2,655 | | 6,036 |
| a | Air China Ltd., Class A | Passenger Airlines | 2,400 | | 2,702 |
| a | Air China Ltd., Class H | Passenger Airlines | 10,000 | | 5,587 |
| | Airtac International Group, Class A | Machinery | 540 | | 15,579 |
| a,b | Akeso, Inc. | Biotechnology | 2,400 | | 21,196 |
| c | Alibaba Group Holding Ltd., Class A | Broadline Retail | 64,600 | | 914,837 |
| | Aluminum Corp. of China Ltd., Class A | Metals & Mining | 3,600 | | 4,578 |
| | Aluminum Corp. of China Ltd., Class H | Metals & Mining | 16,000 | | 12,730 |
| | An Hui Wenergy Co. Ltd., Class A | Independent Power Producers & Energy Traders | 600 | | 713 |
| a | Angang Steel Co. Ltd., Class A | Metals & Mining | 1,800 | | 633 |
| b | Angelalign Technology, Inc. | Health Care Equipment & Supplies | 200 | | 1,944 |
| | Anhui Anke Biotechnology Group Co. Ltd., Class A | Biotechnology | 600 | | 843 |
| | Anhui Conch Cement Co. Ltd., Class A | Construction Materials | 1,200 | | 4,482 |
| | Anhui Conch Cement Co. Ltd., Class H | Construction Materials | 4,500 | | 13,238 |
| | Anhui Expressway Co. Ltd., Class H | Transportation Infrastructure | 2,000 | | 2,431 |
| | Anhui Gujing Distillery Co. Ltd., Class A | Beverages | 100 | | 2,901 |
| | Anhui Gujing Distillery Co. Ltd., Class B | Beverages | 600 | | 9,671 |
| | Anhui Jianghuai Automobile Group Corp. Ltd., Class A | Automobiles | 600 | | 2,150 |
| | Anjoy Foods Group Co. Ltd., Class A | Food Products | 100 | | 1,419 |
| | ANTA Sports Products Ltd., Class A | Textiles, Apparel & Luxury Goods | 4,800 | | 58,366 |
| c | Autohome, Inc., ADR | Interactive Media & Services | 228 | | 7,437 |
| | AVIC Industry-Finance Holdings Co. Ltd., Class A | Financial Services | 2,400 | | 1,269 |
| | AviChina Industry & Technology Co. Ltd., Class H | Aerospace & Defense | 6,000 | | 2,935 |
| | Avicopter PLC, Class A | Aerospace & Defense | 200 | | 1,192 |
| a | BAIC BluePark New Energy Technology Co. Ltd., Class A | Automobiles | 1,800 | | 2,076 |
| b | BAIC Motor Corp. Ltd., Class H | Automobiles | 9,000 | | 2,607 |
| a,c | Baidu, Inc., Class A | Interactive Media & Services | 8,400 | | 114,199 |
| | Bank of Beijing Co. Ltd., Class A | Banks | 6,000 | | 5,007 |
| | Bank of Changsha Co. Ltd., Class A | Banks | 1,200 | | 1,435 |
| | Bank of China Ltd., Class A | Banks | 13,200 | | 9,430 |
| | Bank of China Ltd., Class H | Banks | 318,000 | | 150,249 |
| | Bank of Communications Co. Ltd., Class A | Banks | 11,400 | | 12,054 |
| | Bank of Communications Co. Ltd., Class H | Banks | 30,000 | | 23,019 |
| | Bank of Guiyang Co. Ltd., Class A | Banks | 1,200 | | 1,039 |
| | Bank of Hangzhou Co. Ltd., Class A | Banks | 1,800 | | 3,626 |
| | Bank of Jiangsu Co. Ltd., Class A | Banks | 4,800 | | 5,761 |
| | Bank of Nanjing Co. Ltd., Class A | Banks | 3,000 | | 4,694 |
| | Bank of Ningbo Co. Ltd., Class A | Banks | 1,800 | | 6,610 |
| | Bank of Shanghai Co. Ltd., Class A | Banks | 4,200 | | 4,735 |
| 3 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE Asia ex Japan ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | China (continued) | | | | |
| | Baoshan Iron & Steel Co. Ltd., Class A | Metals & Mining | 5,400 | | $ 5,355 |
| | BBMG Corp., Class A | Construction Materials | 2,400 | | 634 |
| | BBMG Corp., Class H | Construction Materials | 12,000 | | 1,236 |
| a | BeiGene Ltd. | Biotechnology | 3,000 | | 55,887 |
| | Beijing Capital Eco-Environment Protection Group Co. Ltd., Class A | Water Utilities | 2,400 | | 1,121 |
| a | Beijing Capital International Airport Co. Ltd., Class H | Transportation Infrastructure | 8,000 | | 2,987 |
| | Beijing Dabeinong Technology Group Co. Ltd., Class A | Food Products | 1,800 | | 1,229 |
| | Beijing Enlight Media Co. Ltd., Class A | Entertainment | 600 | | 763 |
| | Beijing Enterprises Holdings Ltd., Class H | Gas Utilities | 2,000 | | 7,184 |
| a | Beijing Jetsen Technology Co. Ltd., Class A | Entertainment | 600 | | 471 |
| | Beijing Kingsoft Office Software, Inc., Class A | Software | 218 | | 8,298 |
| | Beijing New Building Materials PLC, Class A | Building Products | 600 | | 2,827 |
| | Beijing Originwater Technology Co. Ltd., Class A | Commercial Services & Supplies | 1,200 | | 835 |
| | Beijing Shiji Information Technology Co. Ltd., Class A | Software | 600 | | 628 |
| | Beijing Shougang Co. Ltd., Class A | Metals & Mining | 2,400 | | 1,166 |
| | Beijing Sinnet Technology Co. Ltd., Class A | IT Services | 600 | | 902 |
| | Beijing Tiantan Biological Products Corp. Ltd., Class A | Biotechnology | 720 | | 2,586 |
| | Beijing Tong Ren Tang Co. Ltd., Class A | Pharmaceuticals | 600 | | 3,606 |
| | Beijing Ultrapower Software Co. Ltd., Class A | IT Services | 600 | | 1,069 |
| | Beijing Wantai Biological Pharmacy Enterprise Co. Ltd., Class A | Biotechnology | 203 | | 2,375 |
| | Beijing Yanjing Brewery Co. Ltd., Class A | Beverages | 1,200 | | 1,929 |
| | Beijing-Shanghai High Speed Railway Co. Ltd., Class A | Ground Transportation | 7,800 | | 6,732 |
| a,c | Bilibili, Inc., Class Z | Entertainment | 1,080 | | 26,946 |
| | Bluefocus Intelligent Communications Group Co. Ltd., Class A | Media | 600 | | 604 |
| | BOC Hong Kong Holdings Ltd. | Banks | 13,500 | | 43,276 |
| | BOE Technology Group Co. Ltd., Class A | Electronic Equipment, Instruments & Components | 11,400 | | 7,281 |
| | BOE Technology Group Co. Ltd., Class B | Electronic Equipment, Instruments & Components | 3,600 | | 1,279 |
| | Brilliance China Automotive Holdings Ltd. | Automobiles | 12,000 | | 4,650 |
| b | Budweiser Brewing Co. APAC Ltd., Class H | Beverages | 6,600 | | 8,888 |
| | BYD Co. Ltd., Class A | Automobiles | 500 | | 21,955 |
| | BYD Co. Ltd., Class H | Automobiles | 4,152 | | 151,701 |
| | BYD Electronic International Co. Ltd. | Communications Equipment | 3,000 | | 12,572 |
| | By-health Co. Ltd., Class A | Personal Care Products | 600 | | 1,277 |
| | C&D International Investment Group Ltd. | Real Estate Management & Development | 3,000 | | 6,504 |
| | Caitong Securities Co. Ltd., Class A | Capital Markets | 1,200 | | 1,495 |
| a | Cambricon Technologies Corp. Ltd., Class A | Semiconductors & Semiconductor Equipment | 150 | | 6,197 |
| | CECEP Solar Energy Co. Ltd., Class A | Independent Power Producers & Energy Traders | 1,200 | | 878 |
| | CECEP Wind-Power Corp., Class A | Independent Power Producers & Energy Traders | 1,800 | | 846 |
| | CGN Power Co. Ltd., Class A | Independent Power Producers & Energy Traders | 2,400 | | 1,543 |
| b | CGN Power Co. Ltd., Class H | Independent Power Producers & Energy Traders | 42,000 | | 16,221 |
| | Changchun High-Tech Industry Group Co. Ltd., Class A | Pharmaceuticals | 100 | | 1,570 |
| | Changjiang Securities Co. Ltd., Class A | Capital Markets | 1,800 | | 1,857 |
| | Changzhou Xingyu Automotive Lighting Systems Co. Ltd., Class A | Automobile Components | 100 | | 2,110 |
| | Chaozhou Three-Circle Group Co. Ltd., Class A | Electronic Equipment, Instruments & Components | 600 | | 3,181 |
| | Chengdu Xingrong Environment Co. Ltd., Class A | Water Utilities | 1,200 | | 1,245 |
| | China Baoan Group Co. Ltd., Class A | Industrial Conglomerates | 600 | | 824 |
| franklintempleton.com | Semi-Annual Report | 4 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE Asia ex Japan ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | China (continued) | | | | |
| a,b | China Bohai Bank Co. Ltd., Class H | Banks | 12,000 | | $ 1,607 |
| | China Cinda Asset Management Co. Ltd., Class H | Capital Markets | 36,000 | | 5,005 |
| | China CITIC Bank Corp. Ltd., Class A | Banks | 6,600 | | 6,611 |
| | China CITIC Bank Corp. Ltd., Class H | Banks | 36,000 | | 22,988 |
| a,b | China CITIC Financial Asset Management Co. Ltd., Class H | Capital Markets | 60,000 | | 4,171 |
| | China Coal Energy Co. Ltd., Class A | Oil, Gas & Consumable Fuels | 1,200 | | 2,529 |
| | China Coal Energy Co. Ltd., Class H | Oil, Gas & Consumable Fuels | 8,000 | | 9,990 |
| | China Communications Services Corp. Ltd., Class H | Construction & Engineering | 12,000 | | 6,504 |
| | China Conch Venture Holdings Ltd. | Construction & Engineering | 6,000 | | 5,925 |
| | China Construction Bank Corp., Class A | Banks | 3,000 | | 3,399 |
| | China Construction Bank Corp., Class H | Banks | 360,000 | | 272,520 |
| | China CSSC Holdings Ltd., Class A | Machinery | 1,200 | | 7,162 |
| a | China Eastern Airlines Corp. Ltd., Class A | Passenger Airlines | 5,400 | | 3,194 |
| | China Energy Engineering Corp. Ltd., Class A | Construction & Engineering | 10,200 | | 3,512 |
| | China Energy Engineering Corp. Ltd., Class H | Construction & Engineering | 24,000 | | 3,059 |
| | China Everbright Bank Co. Ltd., Class A | Banks | 13,200 | | 6,790 |
| | China Everbright Bank Co. Ltd., Class H | Banks | 12,000 | | 4,079 |
| b | China Feihe Ltd. | Food Products | 12,000 | | 9,084 |
| | China Galaxy Securities Co. Ltd., Class A | Capital Markets | 1,800 | | 3,958 |
| | China Galaxy Securities Co. Ltd., Class H | Capital Markets | 15,000 | | 14,020 |
| | China Great Wall Securities Co. Ltd., Class A | Capital Markets | 600 | | 788 |
| a | China Greatwall Technology Group Co. Ltd., Class A | Technology Hardware, Storage & Peripherals | 1,200 | | 1,780 |
| | China Green Electricity Investment of Tianjin Co. Ltd., Class A | Real Estate Management & Development | 600 | | 847 |
| | China Hongqiao Group Ltd. | Metals & Mining | 9,000 | | 15,016 |
| | China International Capital Corp. Ltd., Class A | Capital Markets | 300 | | 1,655 |
| b | China International Capital Corp. Ltd., Class H | Capital Markets | 4,800 | | 8,590 |
| | China International Marine Containers Group Co. Ltd., Class A | Machinery | 600 | | 771 |
| | China International Marine Containers Group Co. Ltd., Class H | Machinery | 3,000 | | 2,368 |
| | China Jinmao Holdings Group Ltd., Class A | Real Estate Management & Development | 24,000 | | 3,615 |
| | China Jushi Co. Ltd., Class A | Construction Materials | 1,200 | | 2,016 |
| | China Lesso Group Holdings Ltd. | Building Products | 6,000 | | 3,051 |
| | China Life Insurance Co. Ltd., Class H | Insurance | 30,000 | | 60,328 |
| a,b,c | China Literature Ltd., Class A | Media | 1,200 | | 5,005 |
| | China Longyuan Power Group Corp. Ltd., Class H | Independent Power Producers & Energy Traders | 12,000 | | 10,892 |
| | China Medical System Holdings Ltd. | Pharmaceuticals | 6,000 | | 6,913 |
| | China Merchants Bank Co. Ltd., Class A | Banks | 5,400 | | 29,019 |
| | China Merchants Bank Co. Ltd., Class H | Banks | 14,500 | | 71,963 |
| | China Merchants Energy Shipping Co. Ltd., Class A | Oil, Gas & Consumable Fuels | 3,000 | | 3,446 |
| | China Merchants Expressway Network & Technology Holdings Co. Ltd., Class A | Transportation Infrastructure | 1,800 | | 3,238 |
| | China Merchants Port Holdings Co. Ltd. | Transportation Infrastructure | 5,100 | | 8,128 |
| | China Merchants Securities Co. Ltd., Class A | Capital Markets | 2,400 | | 6,666 |
| b | China Merchants Securities Co. Ltd., Class H | Capital Markets | 1,200 | | 1,406 |
| | China Merchants Shekou Industrial Zone Holdings Co. Ltd., Class A | Real Estate Management & Development | 2,400 | | 4,201 |
| | China Minsheng Banking Corp. Ltd., Class A | Banks | 10,200 | | 5,859 |
| | China Minsheng Banking Corp. Ltd., Class H | Banks | 24,000 | | 9,795 |
| 5 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE Asia ex Japan ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | China (continued) | | | | |
| | China National Building Material Co. Ltd., Class H | Construction Materials | 19,500 | | $ 8,586 |
| | China National Chemical Engineering Co. Ltd., Class A | Construction & Engineering | 1,800 | | 2,119 |
| | China National Nuclear Power Co. Ltd., Class A | Independent Power Producers & Energy Traders | 4,800 | | 7,647 |
| a | China National Software & Service Co. Ltd., Class A | Software | 260 | | 1,557 |
| | China Northern Rare Earth Group High-Tech Co. Ltd., Class A | Metals & Mining | 1,200 | | 3,537 |
| | China Oilfield Services Ltd., Class A | Energy Equipment & Services | 600 | | 1,379 |
| | China Oilfield Services Ltd., Class H | Energy Equipment & Services | 8,000 | | 7,364 |
| | China Overseas Land & Investment Ltd., Class A | Real Estate Management & Development | 15,000 | | 30,743 |
| | China Pacific Insurance Group Co. Ltd., Class A | Insurance | 1,800 | | 10,056 |
| | China Pacific Insurance Group Co. Ltd., Class H | Insurance | 9,600 | | 34,606 |
| | China Petroleum & Chemical Corp., Class A | Oil, Gas & Consumable Fuels | 11,400 | | 11,337 |
| | China Petroleum & Chemical Corp., Class H | Oil, Gas & Consumable Fuels | 96,000 | | 59,818 |
| | China Railway Group Ltd., Class A | Construction & Engineering | 6,000 | | 5,633 |
| | China Railway Group Ltd., Class H | Construction & Engineering | 18,000 | | 9,455 |
| | China Railway Signal & Communication Corp. Ltd., Class A | Electronic Equipment, Instruments & Components | 2,000 | | 1,797 |
| b | China Railway Signal & Communication Corp. Ltd., Class H | Electronic Equipment, Instruments & Components | 6,000 | | 2,510 |
| | China Rare Earth Resources & Technology Co. Ltd., Class A | Metals & Mining | 600 | | 2,427 |
| | China Reinsurance Group Corp., Class H | Insurance | 24,000 | | 2,595 |
| | China Resources Building Materials Technology Holdings Ltd. | Construction Materials | 12,000 | | 3,399 |
| | China Resources Double Crane Pharmaceutical Co. Ltd., Class A | Pharmaceuticals | 600 | | 2,042 |
| | China Resources Microelectronics Ltd., Class A | Semiconductors & Semiconductor Equipment | 395 | | 2,661 |
| b | China Resources Mixc Lifestyle Services Ltd. | Real Estate Management & Development | 2,400 | | 10,799 |
| b | China Resources Pharmaceutical Group Ltd., Class A | Pharmaceuticals | 6,000 | | 4,642 |
| | China Resources Power Holdings Co. Ltd. | Independent Power Producers & Energy Traders | 7,200 | | 19,558 |
| | China Resources Sanjiu Medical & Pharmaceutical Co. Ltd., Class A | Pharmaceuticals | 360 | | 2,449 |
| a,c | China Ruyi Holdings Ltd. | Entertainment | 24,000 | | 6,983 |
| | China Shenhua Energy Co. Ltd., Class A | Oil, Gas & Consumable Fuels | 1,800 | | 11,214 |
| | China Shenhua Energy Co. Ltd., Class H | Oil, Gas & Consumable Fuels | 12,000 | | 54,149 |
| | China South Publishing & Media Group Co. Ltd., Class A | Media | 600 | | 1,193 |
| a | China Southern Airlines Co. Ltd., Class A | Passenger Airlines | 3,600 | | 3,364 |
| | China Southern Power Grid Energy Efficiency&Clean Energy Co. Ltd., Class A | Commercial Services & Supplies | 600 | | 416 |
| | China State Construction Engineering Corp. Ltd., Class A | Construction & Engineering | 12,600 | | 11,126 |
| | China Suntien Green Energy Corp. Ltd., Class H | Oil, Gas & Consumable Fuels | 6,000 | | 2,819 |
| | China Taiping Insurance Holdings Co. Ltd. | Insurance | 6,000 | | 9,656 |
| | China Three Gorges Renewables Group Co. Ltd., Class A | Independent Power Producers & Energy Traders | 7,200 | | 4,990 |
| | China Tourism Group Duty Free Corp. Ltd., Class A | Specialty Retail | 600 | | 6,618 |
| b | China Tourism Group Duty Free Corp. Ltd., Class H | Specialty Retail | 600 | | 5,817 |
| b | China Tower Corp. Ltd., Class H | Diversified Telecommunication Services | 180,000 | | 23,869 |
| | China United Network Communications Ltd., Class A | Wireless Telecommunication Services | 8,400 | | 6,421 |
| franklintempleton.com | Semi-Annual Report | 6 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE Asia ex Japan ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | China (continued) | | | | |
| a | China Vanke Co. Ltd., Class A | Real Estate Management & Development | 3,000 | | $ 4,167 |
| a | China Vanke Co. Ltd., Class H | Real Estate Management & Development | 9,000 | | 8,632 |
| | China XD Electric Co. Ltd., Class A | Electrical Equipment | 1,200 | | 1,493 |
| | China Yangtze Power Co. Ltd., Class A | Independent Power Producers & Energy Traders | 6,600 | | 28,338 |
| | China Zhenhua Group Science & Technology Co. Ltd., Class A | Electronic Equipment, Instruments & Components | 200 | | 1,248 |
| | China Zheshang Bank Co. Ltd., Class A | Banks | 2,400 | | 1,008 |
| | Chinese Universe Publishing & Media Group Co. Ltd., Class A | Media | 600 | | 1,339 |
| | Chongqing Changan Automobile Co. Ltd., Class A | Automobiles | 2,400 | | 5,103 |
| | Chongqing Changan Automobile Co. Ltd., Class B | Automobiles | 7,200 | | 3,615 |
| | Chongqing Rural Commercial Bank Co. Ltd., Class A | Banks | 1,200 | | 933 |
| | Chongqing Rural Commercial Bank Co. Ltd., Class H | Banks | 6,000 | | 3,113 |
| | Chongqing Zhifei Biological Products Co. Ltd., Class A | Biotechnology | 700 | | 3,339 |
| | Chow Tai Fook Jewellery Group Ltd., Class A | Specialty Retail | 7,200 | | 8,111 |
| | CITIC Ltd., Class B | Industrial Conglomerates | 24,000 | | 28,364 |
| | Citic Pacific Special Steel Group Co. Ltd., Class A | Metals & Mining | 1,480 | | 2,884 |
| | CITIC Securities Co. Ltd., Class A | Capital Markets | 3,600 | | 13,991 |
| | CITIC Securities Co. Ltd., Class H | Capital Markets | 6,000 | | 15,874 |
| | CMOC Group Ltd., Class A | Metals & Mining | 3,000 | | 3,729 |
| | CMOC Group Ltd., Class H | Metals & Mining | 18,000 | | 17,681 |
| | CMST Development Co. Ltd., Class A | Air Freight & Logistics | 1,200 | | 912 |
| | CNGR Advanced Material Co. Ltd., Class A | Chemicals | 180 | | 1,033 |
| | CNOOC Energy Technology & Services Ltd., Class A | Energy Equipment & Services | 1,800 | | 1,168 |
| | CNPC Capital Co. Ltd., Class A | Banks | 1,200 | | 1,264 |
| | Contemporary Amperex Technology Co. Ltd., Class A | Electrical Equipment | 1,200 | | 43,189 |
| | COSCO SHIPPING Development Co. Ltd., Class A | Trading Companies & Distributors | 3,000 | | 1,132 |
| | COSCO SHIPPING Development Co. Ltd., Class H | Trading Companies & Distributors | 12,000 | | 1,607 |
| | COSCO SHIPPING Energy Transportation Co. Ltd., Class A | Oil, Gas & Consumable Fuels | 1,200 | | 2,718 |
| | COSCO SHIPPING Energy Transportation Co. Ltd., Class H | Oil, Gas & Consumable Fuels | 6,000 | | 7,315 |
| | COSCO SHIPPING Holdings Co. Ltd., Class A | Marine Transportation | 4,200 | | 9,428 |
| | COSCO SHIPPING Holdings Co. Ltd., Class H | Marine Transportation | 10,500 | | 17,627 |
| a | Country Garden Holdings Co. Ltd. | Real Estate Management & Development | 72,000 | | 1,798 |
| | Country Garden Services Holdings Co. Ltd. | Real Estate Management & Development | 9,000 | | 7,543 |
| | CRRC Corp. Ltd., Class A | Machinery | 7,200 | | 8,405 |
| | CRRC Corp. Ltd., Class H | Machinery | 18,000 | | 11,772 |
| | CSC Financial Co. Ltd., Class A | Capital Markets | 1,800 | | 6,908 |
| b | CSC Financial Co. Ltd., Class H | Capital Markets | 3,000 | | 3,414 |
| | CSG Holding Co. Ltd., Class B | Construction Materials | 4,800 | | 1,607 |
| | CSPC Innovation Pharmaceutical Co. Ltd., Class A | Pharmaceuticals | 600 | | 2,649 |
| | CSPC Pharmaceutical Group Ltd. | Pharmaceuticals | 36,000 | | 28,040 |
| | Daqin Railway Co. Ltd., Class A | Ground Transportation | 4,800 | | 4,705 |
| a | Daqo New Energy Corp., ADR | Semiconductors & Semiconductor Equipment | 198 | | 4,033 |
| 7 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE Asia ex Japan ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | China (continued) | | | | |
| | Datang International Power Generation Co. Ltd., Class A | Independent Power Producers & Energy Traders | 2,400 | | $ 1,018 |
| | Datang International Power Generation Co. Ltd., Class H | Independent Power Producers & Energy Traders | 12,000 | | 2,472 |
| | DHC Software Co. Ltd., Class A | IT Services | 1,200 | | 981 |
| | Dong-E-E-Jiao Co. Ltd., Class A | Pharmaceuticals | 200 | | 1,763 |
| | Dongfang Electric Corp. Ltd., Class A | Electrical Equipment | 600 | | 1,355 |
| | Dongfang Electric Corp. Ltd., Class H | Electrical Equipment | 1,200 | | 1,641 |
| | Dongfeng Motor Group Co. Ltd., Class H | Automobiles | 9,000 | | 2,931 |
| | Dongxing Securities Co. Ltd., Class A | Capital Markets | 600 | | 939 |
| a,b | East Buy Holding Ltd. | Consumer Staples Distribution & Retail | 2,500 | | 6,360 |
| c | East Money Information Co. Ltd., Class A | Capital Markets | 4,200 | | 12,182 |
| | Ecovacs Robotics Co. Ltd., Class A | Household Durables | 200 | | 1,463 |
| | ENN Energy Holdings Ltd. | Gas Utilities | 3,000 | | 23,193 |
| | ENN Natural Gas Co. Ltd., Class A | Gas Utilities | 600 | | 1,764 |
| | Eoptolink Technology, Inc. Ltd., Class A | Electronic Equipment, Instruments & Components | 200 | | 3,714 |
| b | ESR Group Ltd., Class H | Real Estate Management & Development | 9,600 | | 15,325 |
| | Eve Energy Co. Ltd., Class A | Electrical Equipment | 600 | | 4,182 |
| | Everbright Securities Co. Ltd., Class A | Capital Markets | 1,200 | | 3,301 |
| a | Everdisplay Optronics Shanghai Co. Ltd., Class A | Electronic Equipment, Instruments & Components | 3,000 | | 1,080 |
| | Fangda Carbon New Material Co. Ltd., Class A | Electrical Equipment | 1,200 | | 857 |
| | FAW Jiefang Group Co. Ltd., Class A | Machinery | 600 | | 795 |
| | Fiberhome Telecommunication Technologies Co. Ltd., Class A | Communications Equipment | 400 | | 981 |
| | First Capital Securities Co. Ltd., Class A | Capital Markets | 1,200 | | 1,217 |
| | Flat Glass Group Co. Ltd., Class A | Semiconductors & Semiconductor Equipment | 600 | | 1,733 |
| | Flat Glass Group Co. Ltd., Class H | Semiconductors & Semiconductor Equipment | 2,000 | | 3,368 |
| | Focus Media Information Technology Co. Ltd., Class A | Media | 4,200 | | 4,243 |
| | Foshan Haitian Flavouring & Food Co. Ltd., Class A | Food Products | 1,200 | | 8,259 |
| | Fosun International Ltd. | Industrial Conglomerates | 6,000 | | 3,847 |
| | Founder Securities Co. Ltd., Class A | Capital Markets | 2,400 | | 3,203 |
| | Foxconn Industrial Internet Co. Ltd., Class A | Electronic Equipment, Instruments & Components | 3,600 | | 12,957 |
| | Fujian Funeng Co. Ltd., Class A | Independent Power Producers & Energy Traders | 600 | | 890 |
| | Fujian Sunner Development Co. Ltd., Class A | Food Products | 600 | | 1,189 |
| c | Full Truck Alliance Co. Ltd., ADR | Ground Transportation | 2,550 | | 22,976 |
| | Fuyao Glass Industry Group Co. Ltd., Class A | Automobile Components | 600 | | 4,990 |
| b | Fuyao Glass Industry Group Co. Ltd., Class H | Automobile Components | 2,400 | | 16,144 |
| | GalaxyCore, Inc., Class A | Semiconductors & Semiconductor Equipment | 1,200 | | 2,526 |
| | Ganfeng Lithium Group Co. Ltd., Class A | Chemicals | 600 | | 2,955 |
| b | Ganfeng Lithium Group Co. Ltd., Class H | Chemicals | 1,800 | | 5,191 |
| a | GCL System Integration Technology Co. Ltd., Class A | Semiconductors & Semiconductor Equipment | 1,800 | | 594 |
| a | GCL Technology Holdings Ltd. | Semiconductors & Semiconductor Equipment | 78,000 | | 14,059 |
| | GD Power Development Co. Ltd., Class A | Independent Power Producers & Energy Traders | 4,800 | | 3,752 |
| a,c | GDS Holdings Ltd., Class A | IT Services | 2,400 | | 6,751 |
| | GEM Co. Ltd., Class A | Metals & Mining | 1,200 | | 1,223 |
| | Gemdale Corp., Class A | Real Estate Management & Development | 1,200 | | 938 |
| a | Genscript Biotech Corp. | Life Sciences Tools & Services | 6,000 | | 10,768 |
| | GF Securities Co. Ltd., Class A | Capital Markets | 1,800 | | 4,295 |
| | GF Securities Co. Ltd., Class H | Capital Markets | 3,600 | | 4,996 |
| b | Giant Biogene Holding Co. Ltd. | Personal Care Products | 1,200 | | 7,871 |
| | Giant Network Group Co. Ltd., Class A | Entertainment | 600 | | 1,012 |
| | GoerTek, Inc., Class A | Electronic Equipment, Instruments & Components | 1,200 | | 3,887 |
| franklintempleton.com | Semi-Annual Report | 8 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE Asia ex Japan ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | China (continued) | | | | |
| | Goldwind Science & Technology Co. Ltd., Class A | Electrical Equipment | 600 | | $ 859 |
| | Goldwind Science & Technology Co. Ltd., Class H | Electrical Equipment | 2,400 | | 1,811 |
| | Gotion High-tech Co. Ltd., Class A | Electrical Equipment | 600 | | 1,980 |
| a | Grandjoy Holdings Group Co. Ltd., Class A | Real Estate Management & Development | 1,200 | | 576 |
| | Great Wall Motor Co. Ltd., Class A | Automobiles | 1,200 | | 5,197 |
| | Great Wall Motor Co. Ltd., Class H | Automobiles | 9,000 | | 16,801 |
| | Gree Electric Appliances, Inc. of Zhuhai, Class A | Household Durables | 1,200 | | 8,220 |
| a | Greenland Holdings Corp. Ltd., Class A | Real Estate Management & Development | 3,000 | | 892 |
| | Greentown China Holdings Ltd. | Real Estate Management & Development | 6,000 | | 7,076 |
| | GRG Banking Equipment Co. Ltd., Class A | Technology Hardware, Storage & Peripherals | 600 | | 1,003 |
| | Guangdong Baolihua New Energy Stock Co. Ltd., Class A | Independent Power Producers & Energy Traders | 600 | | 420 |
| | Guangdong Electric Power Development Co. Ltd., Class A | Independent Power Producers & Energy Traders | 600 | | 433 |
| | Guangdong Electric Power Development Co. Ltd., Class B | Independent Power Producers & Energy Traders | 3,600 | | 996 |
| | Guangdong Haid Group Co. Ltd., Class A | Food Products | 600 | | 4,117 |
| | Guangdong HEC Technology Holding Co. Ltd., Class A | Metals & Mining | 1,200 | | 1,358 |
| | Guanghui Energy Co. Ltd., Class A | Oil, Gas & Consumable Fuels | 1,800 | | 1,849 |
| | Guangshen Railway Co. Ltd., Class A | Ground Transportation | 1,800 | | 972 |
| | Guangxi Guiguan Electric Power Co. Ltd., Class A | Independent Power Producers & Energy Traders | 1,200 | | 1,207 |
| | Guangxi Liugong Machinery Co. Ltd., Class A | Machinery | 600 | | 1,072 |
| | Guangzhou Automobile Group Co. Ltd., Class A | Automobiles | 1,200 | | 1,514 |
| | Guangzhou Automobile Group Co. Ltd., Class H | Automobiles | 12,000 | | 4,712 |
| | Guangzhou Baiyunshan Pharmaceutical Holdings Co. Ltd., Class A | Health Care Providers & Services | 600 | | 2,629 |
| | Guangzhou Baiyunshan Pharmaceutical Holdings Co. Ltd., Class H | Health Care Providers & Services | 1,000 | | 2,652 |
| | Guangzhou Haige Communications Group, Inc. Co., Class A | Communications Equipment | 600 | | 910 |
| | Guangzhou Tinci Materials Technology Co. Ltd., Class A | Chemicals | 600 | | 1,588 |
| | Guizhou Panjiang Refined Coal Co. Ltd., Class A | Oil, Gas & Consumable Fuels | 600 | | 503 |
| | Guolian Securities Co. Ltd., Class A | Capital Markets | 600 | | 1,078 |
| | Guosen Securities Co. Ltd., Class A | Capital Markets | 1,800 | | 3,043 |
| a | Guosheng Financial Holding, Inc., Class A | Capital Markets | 600 | | 1,066 |
| d | Guotai Junan Securities Co. Ltd., Class A | Capital Markets | 2,400 | | 5,041 |
| b,d | Guotai Junan Securities Co. Ltd., Class H | Capital Markets | 2,400 | | 2,443 |
| | Guoyuan Securities Co. Ltd., Class A | Capital Markets | 1,200 | | 1,521 |
| c | H World Group Ltd. | Hotels, Restaurants & Leisure | 7,200 | | 28,225 |
| b,c | Haidilao International Holding Ltd. | Hotels, Restaurants & Leisure | 6,000 | | 14,723 |
| | Haier Smart Home Co. Ltd., Class A | Household Durables | 1,800 | | 8,269 |
| | Haier Smart Home Co. Ltd., Class H | Household Durables | 8,400 | | 33,741 |
| a | Hainan Airlines Holding Co. Ltd., Class A | Passenger Airlines | 12,000 | | 2,212 |
| a | Hainan Airport Infrastructure Co. Ltd., Class A | Real Estate Management & Development | 3,000 | | 1,642 |
| | Haitian International Holdings Ltd. | Machinery | 2,000 | | 6,437 |
| d | Haitong Securities Co. Ltd., Class A | Capital Markets | 3,000 | | 3,759 |
| d | Haitong Securities Co. Ltd., Class H | Capital Markets | 14,400 | | 6,724 |
| | Hangzhou Binjiang Real Estate Group Co. Ltd., Class A | Real Estate Management & Development | 1,200 | | 1,944 |
| | Hangzhou First Applied Material Co. Ltd., Class A | Semiconductors & Semiconductor Equipment | 634 | | 1,600 |
| | Hangzhou Great Star Industrial Co. Ltd., Class A | Household Durables | 400 | | 1,792 |
| 9 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE Asia ex Japan ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | China (continued) | | | | |
| | Hangzhou Robam Appliances Co. Ltd., Class A | Household Durables | 600 | | $ 1,987 |
| a | Hangzhou Silan Microelectronics Co. Ltd., Class A | Semiconductors & Semiconductor Equipment | 600 | | 1,939 |
| | Hangzhou Tigermed Consulting Co. Ltd., Class A | Life Sciences Tools & Services | 300 | | 2,957 |
| b | Hangzhou Tigermed Consulting Co. Ltd., Class H | Life Sciences Tools & Services | 600 | | 3,098 |
| | Han’s Laser Technology Industry Group Co. Ltd., Class A | Machinery | 600 | | 2,017 |
| b | Hansoh Pharmaceutical Group Co. Ltd. | Pharmaceuticals | 3,000 | | 8,091 |
| | Heilongjiang Agriculture Co. Ltd., Class A | Food Products | 600 | | 1,274 |
| | Henan Shenhuo Coal Industry & Electricity Power Co. Ltd., Class A | Metals & Mining | 600 | | 1,721 |
| | Henan Shuanghui Investment & Development Co. Ltd., Class A | Food Products | 1,200 | | 4,645 |
| | Hengan International Group Co. Ltd. | Personal Care Products | 2,200 | | 7,591 |
| | Hengdian Group DMEGC Magnetics Co. Ltd., Class A | Electronic Equipment, Instruments & Components | 600 | | 1,217 |
| | Hengli Petrochemical Co. Ltd., Class A | Chemicals | 1,200 | | 2,685 |
| | Hengtong Optic-electric Co. Ltd., Class A | Communications Equipment | 600 | | 1,450 |
| | Hengyi Petrochemical Co. Ltd., Class A | Chemicals | 1,200 | | 1,202 |
| | Hesteel Co. Ltd., Class A | Metals & Mining | 3,600 | | 1,142 |
| | Hisense Home Appliances Group Co. Ltd., Class H | Household Durables | 2,000 | | 7,467 |
| | Hithink RoyalFlush Information Network Co. Ltd., Class A | Capital Markets | 200 | | 5,524 |
| | HLA Group Corp. Ltd., Class A | Specialty Retail | 1,200 | | 1,300 |
| | Hongta Securities Co. Ltd., Class A | Capital Markets | 600 | | 753 |
| a | Hopson Development Holdings Ltd. | Real Estate Management & Development | 4,200 | | 2,612 |
| | Hoshine Silicon Industry Co. Ltd., Class A | Chemicals | 200 | | 1,715 |
| b | Hua Hong Semiconductor Ltd. | Semiconductors & Semiconductor Equipment | 2,000 | | 5,381 |
| | Huaan Securities Co. Ltd., Class A | Capital Markets | 1,200 | | 1,024 |
| | Huadian Power International Corp. Ltd., Class A | Independent Power Producers & Energy Traders | 2,400 | | 2,054 |
| | Huadian Power International Corp. Ltd., Class H | Independent Power Producers & Energy Traders | 6,000 | | 3,414 |
| | Huadong Medicine Co. Ltd., Class A | Health Care Providers & Services | 600 | | 3,000 |
| | Huafon Chemical Co. Ltd., Class A | Chemicals | 1,200 | | 1,440 |
| | Huagong Tech Co. Ltd., Class A | Electronic Equipment, Instruments & Components | 600 | | 2,994 |
| | Huaibei Mining Holdings Co. Ltd., Class A | Metals & Mining | 600 | | 1,544 |
| | Hualan Biological Engineering, Inc., Class A | Biotechnology | 600 | | 1,535 |
| | Huaneng Lancang River Hydropower, Inc., Class A | Independent Power Producers & Energy Traders | 1,800 | | 2,971 |
| | Huaneng Power International, Inc., Class A | Independent Power Producers & Energy Traders | 1,800 | | 1,983 |
| | Huaneng Power International, Inc., Class H | Independent Power Producers & Energy Traders | 18,000 | | 11,054 |
| | Huatai Securities Co. Ltd., Class A | Capital Markets | 2,400 | | 6,035 |
| b | Huatai Securities Co. Ltd., Class H | Capital Markets | 4,800 | | 7,737 |
| | Huaxia Bank Co. Ltd., Class A | Banks | 4,800 | | 5,096 |
| | Huaxin Cement Co. Ltd., Class H | Construction Materials | 1,200 | | 1,326 |
| | Huayu Automotive Systems Co. Ltd., Class A | Automobile Components | 1,200 | | 3,074 |
| | Hubei Energy Group Co. Ltd., Class A | Independent Power Producers & Energy Traders | 1,800 | | 1,373 |
| | Hubei Xingfa Chemicals Group Co. Ltd., Class A | Chemicals | 600 | | 1,929 |
| | Huizhou Desay Sv Automotive Co. Ltd., Class A | Automobile Components | 200 | | 3,423 |
| | Humanwell Healthcare Group Co. Ltd., Class A | Pharmaceuticals | 600 | | 1,808 |
| | Hunan Valin Steel Co. Ltd., Class A | Metals & Mining | 2,400 | | 1,612 |
| | Hundsun Technologies, Inc., Class A | Software | 600 | | 1,961 |
| a | HUTCHMED China Ltd. | Pharmaceuticals | 2,000 | | 8,291 |
| a,b,c | Hygeia Healthcare Holdings Co. Ltd., Class C | Health Care Providers & Services | 1,200 | | 3,661 |
| | Hygon Information Technology Co. Ltd., Class A | Semiconductors & Semiconductor Equipment | 600 | | 8,854 |
| franklintempleton.com | Semi-Annual Report | 10 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE Asia ex Japan ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | China (continued) | | | | |
| | IEIT Systems Co. Ltd., Class A | Technology Hardware, Storage & Peripherals | 600 | | $ 3,558 |
| | Iflytek Co. Ltd., Class A | Software | 600 | | 3,810 |
| | Imeik Technology Development Co. Ltd., Class A | Biotechnology | 140 | | 4,713 |
| | Industrial & Commercial Bank of China Ltd., Class A | Banks | 20,400 | | 18,014 |
| | Industrial & Commercial Bank of China Ltd., Class H | Banks | 300,000 | | 179,208 |
| | Industrial Bank Co. Ltd., Class A | Banks | 5,400 | | 14,868 |
| | Industrial Securities Co. Ltd., Class A | Capital Markets | 2,400 | | 2,339 |
| a | Inner Mongolia BaoTou Steel Union Co. Ltd., Class A | Metals & Mining | 11,400 | | 2,818 |
| | Inner Mongolia Dian Tou Energy Corp. Ltd., Class A | Oil, Gas & Consumable Fuels | 600 | | 1,698 |
| | Inner Mongolia ERDOS Resources Co. Ltd., Class B | Metals & Mining | 2,400 | | 2,203 |
| | Inner Mongolia Junzheng Energy & Chemical Industry Group Co. Ltd., Class A | Chemicals | 2,400 | | 1,574 |
| | Inner Mongolia MengDian HuaNeng Thermal Power Corp. Ltd., Class A | Independent Power Producers & Energy Traders | 1,800 | | 1,235 |
| | Inner Mongolia Yili Industrial Group Co. Ltd., Class A | Food Products | 1,800 | | 7,477 |
| | Inner Mongolia Yitai Coal Co. Ltd., Class B | Oil, Gas & Consumable Fuels | 4,200 | | 9,005 |
| | Inner Mongolia Yuan Xing Energy Co. Ltd., Class A | Chemicals | 1,200 | | 1,156 |
| a,b | Innovent Biologics, Inc., Class B | Biotechnology | 6,000 | | 36,382 |
| a,c | iQIYI, Inc., ADR | Entertainment | 1,788 | | 5,114 |
| a | IRICO Display Devices Co. Ltd., Class A | Electronic Equipment, Instruments & Components | 1,200 | | 1,283 |
| | Isoftstone Information Technology Group Co. Ltd., Class A | IT Services | 600 | | 4,417 |
| | JA Solar Technology Co. Ltd., Class A | Semiconductors & Semiconductor Equipment | 1,136 | | 2,199 |
| | Jafron Biomedical Co. Ltd., Class A | Health Care Equipment & Supplies | 200 | | 936 |
| | JCET Group Co. Ltd., Class A | Semiconductors & Semiconductor Equipment | 600 | | 3,029 |
| a,b,c | JD Health International, Inc. | Consumer Staples Distribution & Retail | 4,200 | | 18,925 |
| a,b,c | JD Logistics, Inc. | Air Freight & Logistics | 6,600 | | 11,896 |
| c | JD.com, Inc., Class A | Broadline Retail | 10,200 | | 219,430 |
| | Jiangsu Eastern Shenghong Co. Ltd., Class A | Chemicals | 1,200 | | 1,591 |
| | Jiangsu Expressway Co. Ltd., Class A | Transportation Infrastructure | 600 | | 1,223 |
| | Jiangsu Expressway Co. Ltd., Class H | Transportation Infrastructure | 6,000 | | 6,079 |
| | Jiangsu Financial Leasing Co. Ltd., Class A | Financial Services | 1,200 | | 922 |
| | Jiangsu Hengli Hydraulic Co. Ltd., Class A | Machinery | 496 | | 4,465 |
| | Jiangsu Hengrui Pharmaceuticals Co. Ltd., Class A | Pharmaceuticals | 1,800 | | 13,451 |
| | Jiangsu King’s Luck Brewery JSC Ltd., Class A | Beverages | 600 | | 4,419 |
| | Jiangsu Linyang Energy Co. Ltd., Class A | Electrical Equipment | 600 | | 652 |
| | Jiangsu Phoenix Publishing & Media Corp. Ltd., Class A | Media | 600 | | 1,030 |
| | Jiangsu Yanghe Distillery Co. Ltd., Class A | Beverages | 600 | | 8,504 |
| | Jiangsu Yuyue Medical Equipment & Supply Co. Ltd., Class A | Health Care Equipment & Supplies | 300 | | 1,641 |
| | Jiangsu Zhongtian Technology Co. Ltd., Class A | Electrical Equipment | 1,200 | | 2,656 |
| | Jiangxi Copper Co. Ltd., Class A | Metals & Mining | 600 | | 2,093 |
| | Jiangxi Copper Co. Ltd., Class H | Metals & Mining | 5,000 | | 10,183 |
| a | Jiangxi Special Electric Motor Co. Ltd., Class A | Electrical Equipment | 600 | | 737 |
| | Jinduicheng Molybdenum Co. Ltd., Class A | Metals & Mining | 600 | | 1,020 |
| | Jinko Solar Co. Ltd., Class A | Semiconductors & Semiconductor Equipment | 1,800 | | 2,266 |
| b,c | Jinxin Fertility Group Ltd. | Health Care Providers & Services | 9,000 | | 4,241 |
| b | Jiumaojiu International Holdings Ltd. | Hotels, Restaurants & Leisure | 3,600 | | 2,294 |
| 11 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE Asia ex Japan ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | China (continued) | | | | |
| | Jizhong Energy Resources Co. Ltd., Class A | Oil, Gas & Consumable Fuels | 600 | | $ 571 |
| | Joincare Pharmaceutical Group Industry Co. Ltd., Class A | Pharmaceuticals | 600 | | 1,018 |
| b | Joinn Laboratories China Co. Ltd., Class H | Life Sciences Tools & Services | 600 | | 756 |
| | Jointown Pharmaceutical Group Co. Ltd., Class A | Health Care Providers & Services | 1,606 | | 1,317 |
| a,c | JOYY, Inc., ADR | Interactive Media & Services | 102 | | 3,696 |
| | Juneyao Airlines Co. Ltd., Class A | Passenger Airlines | 600 | | 1,168 |
| a | J-Yuan Trust Co. Ltd., Class A | Capital Markets | 3,000 | | 1,402 |
| c | Kanzhun Ltd., ADR | Interactive Media & Services | 1,242 | | 21,561 |
| c | KE Holdings, Inc., ADR | Real Estate Management & Development | 2,286 | | 45,514 |
| | Keda Industrial Group Co. Ltd., Class A | Machinery | 600 | | 745 |
| | Kingboard Holdings Ltd. | Electronic Equipment, Instruments & Components | 3,000 | | 7,609 |
| a,c | Kingdee International Software Group Co. Ltd. | Software | 12,000 | | 13,904 |
| | Kingnet Network Co. Ltd., Class A | Entertainment | 600 | | 1,019 |
| | Kingsoft Corp. Ltd. | Entertainment | 3,600 | | 13,696 |
| a,b,c | Kuaishou Technology, Class B | Interactive Media & Services | 10,800 | | 76,264 |
| a | Kuang-Chi Technologies Co. Ltd., Class A | Aerospace & Defense | 600 | | 2,142 |
| | Kunlun Tech Co. Ltd., Class A | Entertainment | 600 | | 3,219 |
| | Kweichow Moutai Co. Ltd., Class A | Beverages | 350 | | 87,417 |
| | Lao Feng Xiang Co. Ltd., Class B | Textiles, Apparel & Luxury Goods | 1,200 | | 4,601 |
| | LB Group Co. Ltd., Class A | Chemicals | 600 | | 1,781 |
| | Lee & Man Paper Manufacturing Ltd. | Paper & Forest Products | 6,000 | | 2,155 |
| a,b | Legend Holdings Corp., Class H | Technology Hardware, Storage & Peripherals | 2,400 | | 2,215 |
| | Lenovo Group Ltd. | Technology Hardware, Storage & Peripherals | 30,000 | | 40,940 |
| | Lens Technology Co. Ltd., Class A | Electronic Equipment, Instruments & Components | 1,800 | | 5,260 |
| | Leo Group Co. Ltd., Class A | Media | 1,800 | | 476 |
| | Lepu Medical Technology Beijing Co. Ltd., Class A | Health Care Equipment & Supplies | 600 | | 1,129 |
| | Leyard Optoelectronic Co. Ltd., Class A | Electronic Equipment, Instruments & Components | 600 | | 450 |
| a,c | Li Auto, Inc., Class A | Automobiles | 4,200 | | 58,451 |
| | Li Ning Co. Ltd. | Textiles, Apparel & Luxury Goods | 9,000 | | 22,826 |
| | Liaoning Port Co. Ltd., Class A | Transportation Infrastructure | 5,400 | | 1,150 |
| | Lingyi iTech Guangdong Co., Class A | Electronic Equipment, Instruments & Components | 2,400 | | 2,575 |
| | Livzon Pharmaceutical Group, Inc., Class A | Pharmaceuticals | 200 | | 1,162 |
| | Livzon Pharmaceutical Group, Inc., Class H | Pharmaceuticals | 600 | | 2,283 |
| b,c | Longfor Group Holdings Ltd. | Real Estate Management & Development | 9,000 | | 17,426 |
| | LONGi Green Energy Technology Co. Ltd., Class A | Semiconductors & Semiconductor Equipment | 2,400 | | 6,022 |
| c | Lufax Holding Ltd., ADR | Consumer Finance | 732 | | 2,555 |
| | Luxi Chemical Group Co. Ltd., Class A | Chemicals | 600 | | 1,072 |
| | Luxshare Precision Industry Co. Ltd., Class A | Electronic Equipment, Instruments & Components | 2,400 | | 14,903 |
| a,b | Luye Pharma Group Ltd. | Pharmaceuticals | 9,000 | | 3,882 |
| | Luzhou Laojiao Co. Ltd., Class A | Beverages | 400 | | 8,556 |
| a | Maanshan Iron & Steel Co. Ltd., Class A | Metals & Mining | 1,800 | | 612 |
| | Mango Excellent Media Co. Ltd., Class A | Entertainment | 600 | | 2,256 |
| | Maxscend Microelectronics Co. Ltd., Class A | Electronic Equipment, Instruments & Components | 260 | | 3,451 |
| | Meihua Holdings Group Co. Ltd., Class A | Chemicals | 1,200 | | 1,869 |
| | Meinian Onehealth Healthcare Holdings Co. Ltd., Class A | Health Care Providers & Services | 1,200 | | 742 |
| a,b,c | Meituan, Class B | Hotels, Restaurants & Leisure | 21,600 | | 478,301 |
| | Metallurgical Corp. of China Ltd., Class A | Construction & Engineering | 4,800 | | 2,291 |
| | Metallurgical Corp. of China Ltd., Class H | Construction & Engineering | 12,000 | | 2,456 |
| a | Microport Scientific Corp. | Health Care Equipment & Supplies | 3,600 | | 3,652 |
| a | Midea Group Co. Ltd. | Household Durables | 1,200 | | 11,471 |
| | Ming Yang Smart Energy Group Ltd., Class A | Electrical Equipment | 600 | | 926 |
| | MINISO Group Holding Ltd. | Broadline Retail | 1,200 | | 5,739 |
| franklintempleton.com | Semi-Annual Report | 12 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE Asia ex Japan ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | China (continued) | | | | |
| | Minmetals Capital Co. Ltd., Class A | Capital Markets | 1,200 | | $ 1,144 |
| a | Minth Group Ltd. | Automobile Components | 3,000 | | 6,180 |
| a | MMG Ltd. | Metals & Mining | 12,000 | | 4,279 |
| | Montage Technology Co. Ltd., Class A | Semiconductors & Semiconductor Equipment | 306 | | 2,924 |
| a | Muyuan Foods Co. Ltd., Class A | Food Products | 1,596 | | 10,561 |
| | Nanjing Iron & Steel Co. Ltd., Class A | Metals & Mining | 1,800 | | 1,247 |
| | Nanjing Securities Co. Ltd., Class A | Capital Markets | 1,200 | | 1,660 |
| | NARI Technology Co. Ltd., Class A | Electrical Equipment | 2,400 | | 9,489 |
| | National Silicon Industry Group Co. Ltd., Class A | Semiconductors & Semiconductor Equipment | 1,200 | | 3,254 |
| | NAURA Technology Group Co. Ltd., Class A | Semiconductors & Semiconductor Equipment | 200 | | 10,459 |
| a | NavInfo Co. Ltd., Class A | Software | 600 | | 804 |
| c | NetEase, Inc. | Entertainment | 6,900 | | 133,692 |
| | New China Life Insurance Co. Ltd., Class A | Insurance | 600 | | 3,980 |
| | New China Life Insurance Co. Ltd., Class H | Insurance | 3,000 | | 9,366 |
| a | New Hope Liuhe Co. Ltd., Class A | Food Products | 1,200 | | 1,785 |
| c | New Oriental Education & Technology Group, Inc. | Diversified Consumer Services | 6,000 | | 47,892 |
| | Newland Digital Technology Co. Ltd., Class A | Software | 600 | | 1,467 |
| a | Nine Dragons Paper Holdings Ltd. | Paper & Forest Products | 6,000 | | 3,190 |
| a | Ninestar Corp., Class A | Technology Hardware, Storage & Peripherals | 600 | | 2,600 |
| | Ningbo Deye Technology Co. Ltd., Class A | Machinery | 80 | | 1,162 |
| | Ningbo Joyson Electronic Corp., Class A | Automobile Components | 600 | | 1,479 |
| | Ningbo Orient Wires & Cables Co. Ltd., Class A | Electrical Equipment | 200 | | 1,577 |
| | Ningbo Sanxing Medical Electric Co. Ltd., Class A | Electrical Equipment | 400 | | 1,994 |
| | Ningbo Shanshan Co. Ltd., Class A | Chemicals | 600 | | 799 |
| | Ningbo Tuopu Group Co. Ltd., Class A | Automobile Components | 870 | | 5,751 |
| | Ningbo Zhoushan Port Co. Ltd., Class A | Transportation Infrastructure | 1,800 | | 988 |
| | Ningxia Baofeng Energy Group Co. Ltd., Class A | Chemicals | 600 | | 1,487 |
| a,c | NIO, Inc., Class A | Automobiles | 4,860 | | 35,257 |
| b | Nongfu Spring Co. Ltd., Class H | Beverages | 7,200 | | 31,701 |
| | Northeast Securities Co. Ltd., Class A | Capital Markets | 600 | | 703 |
| | Offshore Oil Engineering Co. Ltd., Class A | Energy Equipment & Services | 1,200 | | 998 |
| a | OFILM Group Co. Ltd., Class A | Electronic Equipment, Instruments & Components | 1,200 | | 1,706 |
| | ORG Technology Co. Ltd., Class A | Containers & Packaging | 600 | | 426 |
| | Orient Securities Co. Ltd., Class A | Capital Markets | 1,800 | | 2,857 |
| b | Orient Securities Co. Ltd., Class H | Capital Markets | 2,400 | | 1,548 |
| a | Oriental Energy Co. Ltd., Class A | Oil, Gas & Consumable Fuels | 600 | | 832 |
| a | Ourpalm Co. Ltd., Class A | Entertainment | 1,200 | | 948 |
| a | Pacific Securities Co. Ltd., Class A | Capital Markets | 1,800 | | 1,193 |
| a | Pangang Group Vanadium Titanium & Resources Co. Ltd., Class A | Metals & Mining | 2,400 | | 1,012 |
| a,c | PDD Holdings, Inc., ADR | Broadline Retail | 2,688 | | 362,369 |
| | People.cn Co. Ltd., Class A | Media | 600 | | 2,016 |
| | People’s Insurance Co. Group of China Ltd., Class A | Insurance | 3,000 | | 3,189 |
| | People’s Insurance Co. Group of China Ltd., Class H | Insurance | 30,000 | | 14,329 |
| | PetroChina Co. Ltd., Class A | Oil, Gas & Consumable Fuels | 7,200 | | 9,280 |
| | PetroChina Co. Ltd., Class H | Oil, Gas & Consumable Fuels | 80,000 | | 65,298 |
| | Pharmaron Beijing Co. Ltd., Class A | Life Sciences Tools & Services | 600 | | 2,602 |
| b | Pharmaron Beijing Co. Ltd., Class H | Life Sciences Tools & Services | 1,200 | | 2,317 |
| | PICC Property & Casualty Co. Ltd., Class H | Insurance | 26,000 | | 38,561 |
| | Ping An Bank Co. Ltd., Class A | Banks | 5,400 | | 9,421 |
| a,b | Ping An Healthcare & Technology Co. Ltd. | Consumer Staples Distribution & Retail | 2,400 | | 4,480 |
| | Ping An Insurance Group Co. of China Ltd., Class A | Insurance | 3,000 | | 24,472 |
| 13 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE Asia ex Japan ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | China (continued) | | | | |
| c | Ping An Insurance Group Co. of China Ltd., Class H | Insurance | 24,000 | | $ 154,953 |
| | Pingdingshan Tianan Coal Mining Co. Ltd., Class A | Oil, Gas & Consumable Fuels | 600 | | 940 |
| a | Polaris Bay Group Co. Ltd., Class A | Capital Markets | 600 | | 720 |
| | Poly Developments & Holdings Group Co. Ltd., Class A | Real Estate Management & Development | 3,000 | | 4,728 |
| e | Poly Property Services Co. Ltd., Class H | Real Estate Management & Development | 600 | | 2,661 |
| b | Pop Mart International Group Ltd. | Specialty Retail | 2,400 | | 16,453 |
| | Postal Savings Bank of China Co. Ltd., Class A | Banks | 6,600 | | 4,960 |
| b | Postal Savings Bank of China Co. Ltd., Class H | Banks | 42,000 | | 25,143 |
| | Power Construction Corp. of China Ltd., Class A | Construction & Engineering | 4,800 | | 3,868 |
| c | Qifu Technology, Inc., ADR | Consumer Finance | 456 | | 13,593 |
| | Qingdao TGOOD Electric Co. Ltd., Class A | Electrical Equipment | 600 | | 1,886 |
| a | Qinghai Salt Lake Industry Co. Ltd., Class A | Chemicals | 1,800 | | 4,774 |
| a,b | Remegen Co. Ltd., Class H | Biotechnology | 500 | | 1,101 |
| c | RLX Technology, Inc., ADR | Tobacco | 2,796 | | 5,061 |
| | Rongsheng Petrochemical Co. Ltd., Class A | Chemicals | 2,450 | | 3,623 |
| | SAIC Motor Corp. Ltd., Class A | Automobiles | 2,400 | | 5,017 |
| | Sailun Group Co. Ltd., Class A | Automobile Components | 1,200 | | 2,750 |
| | Sanan Optoelectronics Co. Ltd., Class A | Semiconductors & Semiconductor Equipment | 1,800 | | 3,205 |
| | Sany Heavy Equipment International Holdings Co. Ltd. | Machinery | 5,000 | | 3,746 |
| | Sany Heavy Industry Co. Ltd., Class A | Machinery | 2,400 | | 6,474 |
| | Satellite Chemical Co. Ltd., Class A | Chemicals | 1,200 | | 3,201 |
| | SDIC Capital Co. Ltd., Class A | Capital Markets | 1,800 | | 2,099 |
| | SDIC Power Holdings Co. Ltd., Class A | Independent Power Producers & Energy Traders | 1,800 | | 4,359 |
| | Sealand Securities Co. Ltd., Class A | Capital Markets | 1,800 | | 1,242 |
| a | Seazen Group Ltd. | Real Estate Management & Development | 12,000 | | 3,924 |
| a | Seazen Holdings Co. Ltd., Class A | Real Estate Management & Development | 600 | | 1,231 |
| a,b,c | SenseTime Group, Inc., Class B | Software | 84,000 | | 18,601 |
| a | Seres Group Co. Ltd., Class A | Automobiles | 400 | | 5,168 |
| | SF Holding Co. Ltd., Class A | Air Freight & Logistics | 1,200 | | 7,712 |
| | SG Micro Corp., Class A | Semiconductors & Semiconductor Equipment | 195 | | 2,647 |
| | Shaanxi Coal Industry Co. Ltd., Class A | Oil, Gas & Consumable Fuels | 2,400 | | 9,458 |
| | Shaanxi Energy Investment Co. Ltd., Class A | Independent Power Producers & Energy Traders | 600 | | 939 |
| | Shaanxi International Trust Co. Ltd., Class A | Capital Markets | 1,800 | | 962 |
| | Shan Xi Hua Yang Group New Energy Co. Ltd., Class A | Oil, Gas & Consumable Fuels | 1,200 | | 1,452 |
| a | Shandong Chenming Paper Holdings Ltd., Class B | Paper & Forest Products | 3,000 | | 603 |
| | Shandong Gold Mining Co. Ltd., Class A | Metals & Mining | 1,200 | | 5,022 |
| b | Shandong Gold Mining Co. Ltd., Class H | Metals & Mining | 3,000 | | 6,759 |
| | Shandong Hi-speed Co. Ltd., Class A | Transportation Infrastructure | 600 | | 790 |
| | Shandong Hualu Hengsheng Chemical Co. Ltd., Class A | Chemicals | 600 | | 2,245 |
| | Shandong Humon Smelting Co. Ltd., Class A | Metals & Mining | 600 | | 964 |
| | Shandong Nanshan Aluminum Co. Ltd., Class A | Metals & Mining | 3,600 | | 2,253 |
| | Shandong Sun Paper Industry JSC Ltd., Class A | Paper & Forest Products | 600 | | 1,293 |
| | Shandong Weigao Group Medical Polymer Co. Ltd., Class H | Health Care Equipment & Supplies | 9,600 | | 6,946 |
| a | Shanghai Aiko Solar Energy Co. Ltd., Class A | Semiconductors & Semiconductor Equipment | 600 | | 883 |
| | Shanghai Baosight Software Co. Ltd., Class A | Software | 792 | | 3,733 |
| | Shanghai Baosight Software Co. Ltd., Class B | Software | 2,880 | | 4,939 |
| | Shanghai Construction Group Co. Ltd., Class A | Construction & Engineering | 1,800 | | 630 |
| a | Shanghai Electric Group Co. Ltd., Class A | Electrical Equipment | 2,400 | | 1,550 |
| a | Shanghai Electric Group Co. Ltd., Class H | Electrical Equipment | 12,000 | | 2,704 |
| franklintempleton.com | Semi-Annual Report | 14 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE Asia ex Japan ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | China (continued) | | | | |
| | Shanghai Electric Power Co. Ltd., Class A | Independent Power Producers & Energy Traders | 600 | | $ 829 |
| | Shanghai Fosun Pharmaceutical Group Co. Ltd., Class A | Pharmaceuticals | 600 | | 2,372 |
| | Shanghai Fosun Pharmaceutical Group Co. Ltd., Class H | Pharmaceuticals | 3,000 | | 6,017 |
| | Shanghai Fudan Microelectronics Group Co. Ltd., Class H | Semiconductors & Semiconductor Equipment | 1,000 | | 1,820 |
| | Shanghai Huayi Group Co. Ltd., Class B | Chemicals | 1,200 | | 624 |
| | Shanghai International Airport Co. Ltd., Class A | Transportation Infrastructure | 600 | | 3,294 |
| | Shanghai International Port Group Co. Ltd., Class A | Transportation Infrastructure | 3,000 | | 2,786 |
| | Shanghai Jinjiang International Hotels Co. Ltd., Class B | Hotels, Restaurants & Leisure | 600 | | 974 |
| | Shanghai Jinqiao Export Processing Zone Development Co. Ltd., Class B | Real Estate Management & Development | 1,200 | | 1,068 |
| | Shanghai Lingang Holdings Corp. Ltd., Class A | Real Estate Management & Development | 600 | | 980 |
| | Shanghai Lujiazui Finance & Trade Zone Development Co. Ltd., Class A | Real Estate Management & Development | 600 | | 943 |
| | Shanghai Lujiazui Finance & Trade Zone Development Co. Ltd., Class B | Real Estate Management & Development | 4,800 | | 2,746 |
| | Shanghai Mechanical & Electrical Industry Co. Ltd., Class B | Machinery | 1,200 | | 1,222 |
| | Shanghai Moons’ Electric Co. Ltd., Class A | Electrical Equipment | 200 | | 1,372 |
| | Shanghai Pharmaceuticals Holding Co. Ltd., Class A | Health Care Providers & Services | 1,200 | | 3,626 |
| | Shanghai Pharmaceuticals Holding Co. Ltd., Class H | Health Care Providers & Services | 3,000 | | 4,897 |
| | Shanghai Pudong Development Bank Co. Ltd., Class A | Banks | 8,400 | | 12,158 |
| | Shanghai Putailai New Energy Technology Co. Ltd., Class A | Chemicals | 600 | | 1,282 |
| | Shanghai RAAS Blood Products Co. Ltd., Class A | Biotechnology | 1,800 | | 2,032 |
| | Shanghai Rural Commercial Bank Co. Ltd., Class A | Banks | 1,200 | | 1,274 |
| | Shanghai Stonehill Technology Co. Ltd., Class A | Software | 1,200 | | 487 |
| | Shanghai Tunnel Engineering Co. Ltd., Class A | Construction & Engineering | 1,200 | | 1,135 |
| | Shanghai Waigaoqiao Free Trade Zone Group Co. Ltd., Class B | Trading Companies & Distributors | 1,200 | | 950 |
| | Shanghai Yuyuan Tourist Mart Group Co. Ltd., Class A | Specialty Retail | 1,200 | | 1,094 |
| | Shanghai Zhangjiang High-Tech Park Development Co. Ltd., Class A | Real Estate Management & Development | 600 | | 2,046 |
| | Shanghai Zhenhua Heavy Industries Co. Ltd., Class B | Machinery | 4,200 | | 979 |
| | Shangri-La Asia Ltd. | Hotels, Restaurants & Leisure | 4,000 | | 2,904 |
| | Shanjin International Gold Co. Ltd., Class A | Metals & Mining | 900 | | 2,393 |
| | Shanxi Coal International Energy Group Co. Ltd., Class A | Trading Companies & Distributors | 600 | | 1,197 |
| | Shanxi Coking Coal Energy Group Co. Ltd., Class A | Oil, Gas & Consumable Fuels | 1,800 | | 2,459 |
| | Shanxi Lu’an Environmental Energy Development Co. Ltd., Class A | Oil, Gas & Consumable Fuels | 1,200 | | 3,026 |
| a | Shanxi Meijin Energy Co. Ltd., Class A | Metals & Mining | 1,200 | | 890 |
| | Shanxi Securities Co. Ltd., Class A | Capital Markets | 1,200 | | 1,132 |
| a | Shanxi Taigang Stainless Steel Co. Ltd., Class A | Metals & Mining | 1,800 | | 1,013 |
| 15 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE Asia ex Japan ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | China (continued) | | | | |
| | Shanxi Xinghuacun Fen Wine Factory Co. Ltd., Class A | Beverages | 400 | | $ 12,510 |
| | Shenergy Co. Ltd., Class A | Independent Power Producers & Energy Traders | 1,200 | | 1,464 |
| | Shenghe Resources Holding Co. Ltd., Class A | Metals & Mining | 600 | | 862 |
| | Shengyi Technology Co. Ltd., Class A | Electronic Equipment, Instruments & Components | 600 | | 1,787 |
| | Shenwan Hongyuan Group Co. Ltd., Class A | Capital Markets | 6,600 | | 5,394 |
| b | Shenwan Hongyuan Group Co. Ltd., Class H | Capital Markets | 4,800 | | 1,267 |
| | Shenzhen Airport Co. Ltd., Class A | Transportation Infrastructure | 600 | | 608 |
| | Shenzhen Energy Group Co. Ltd., Class A | Independent Power Producers & Energy Traders | 1,200 | | 1,199 |
| | Shenzhen Expressway Corp. Ltd., Class H | Transportation Infrastructure | 2,000 | | 1,792 |
| | Shenzhen Gas Corp. Ltd., Class A | Gas Utilities | 600 | | 647 |
| | Shenzhen Inovance Technology Co. Ltd., Class A | Machinery | 700 | | 6,246 |
| | Shenzhen International Holdings Ltd. | Transportation Infrastructure | 6,000 | | 5,338 |
| | Shenzhen Kaifa Technology Co. Ltd., Class A | Electronic Equipment, Instruments & Components | 600 | | 1,417 |
| | Shenzhen Kangtai Biological Products Co. Ltd., Class A | Biotechnology | 680 | | 1,901 |
| | Shenzhen Mindray Bio-Medical Electronics Co. Ltd., Class A | Health Care Equipment & Supplies | 300 | | 12,560 |
| | Shenzhen MTC Co. Ltd., Class A | Household Durables | 1,800 | | 1,384 |
| a | Shenzhen Overseas Chinese Town Co. Ltd., Class A | Real Estate Management & Development | 2,400 | | 1,001 |
| | Shenzhen Salubris Pharmaceuticals Co. Ltd., Class A | Pharmaceuticals | 300 | | 1,486 |
| | Shenzhen SED Industry Co. Ltd., Class A | Construction & Engineering | 600 | | 1,484 |
| | Shenzhen Sunway Communication Co. Ltd., Class A | Communications Equipment | 400 | | 1,326 |
| | Shenzhen Transsion Holdings Co. Ltd., Class A | Technology Hardware, Storage & Peripherals | 374 | | 5,768 |
| | Shenzhen Yan Tian Port Holding Co. Ltd., Class A | Transportation Infrastructure | 600 | | 438 |
| | Shenzhen Zhongjin Lingnan Nonfemet Co. Ltd., Class A | Metals & Mining | 1,200 | | 850 |
| | Shenzhou International Group Holdings Ltd. | Textiles, Apparel & Luxury Goods | 3,000 | | 27,248 |
| | Shijiazhuang Yiling Pharmaceutical Co. Ltd., Class A | Pharmaceuticals | 620 | | 1,596 |
| a | Siasun Robot & Automation Co. Ltd., Class A | Machinery | 600 | | 1,060 |
| | Sichuan Chuantou Energy Co. Ltd., Class A | Independent Power Producers & Energy Traders | 1,200 | | 3,232 |
| a | Sichuan Hebang Biotechnology Co. Ltd., Class A | Chemicals | 3,000 | | 896 |
| | Sichuan Kelun Pharmaceutical Co. Ltd., Class A | Pharmaceuticals | 600 | | 2,743 |
| a | Sichuan Kelun-Biotech Biopharmaceutical Co. Ltd. | Biotechnology | 100 | | 2,368 |
| | Sichuan Road & Bridge Group Co. Ltd., Class A | Construction & Engineering | 1,800 | | 1,808 |
| | Silergy Corp. | Semiconductors & Semiconductor Equipment | 1,200 | | 17,746 |
| | Sinolink Securities Co. Ltd., Class A | Capital Markets | 1,200 | | 1,682 |
| | Sinoma International Engineering Co., Class A | Construction & Engineering | 600 | | 986 |
| | Sinoma Science & Technology Co. Ltd., Class A | Chemicals | 600 | | 1,095 |
| | Sinopec Engineering Group Co. Ltd., Class H | Construction & Engineering | 6,000 | | 4,156 |
| a | Sinopec Oilfield Service Corp., Class A | Energy Equipment & Services | 1,200 | | 353 |
| a | Sinopec Shanghai Petrochemical Co. Ltd., Class A | Chemicals | 1,800 | | 769 |
| a | Sinopec Shanghai Petrochemical Co. Ltd., Class H | Chemicals | 12,000 | | 1,854 |
| | Sinopharm Group Co. Ltd., Class H | Health Care Providers & Services | 4,800 | | 12,854 |
| | Sinotrans Ltd., Class A | Air Freight & Logistics | 1,200 | | 946 |
| | Sinotrans Ltd., Class H | Air Freight & Logistics | 6,000 | | 3,074 |
| | Sinotruk Hong Kong Ltd. | Machinery | 3,000 | | 9,018 |
| franklintempleton.com | Semi-Annual Report | 16 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE Asia ex Japan ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | China (continued) | | | | |
| | SITC International Holdings Co. Ltd. | Marine Transportation | 5,000 | | $ 13,518 |
| | Skshu Paint Co. Ltd., Class A | Chemicals | 140 | | 790 |
| b | Smoore International Holdings Ltd. | Tobacco | 6,960 | | 11,559 |
| | Songcheng Performance Development Co. Ltd., Class A | Hotels, Restaurants & Leisure | 600 | | 902 |
| | SooChow Securities Co. Ltd., Class A | Capital Markets | 1,200 | | 1,444 |
| | Southwest Securities Co. Ltd., Class A | Capital Markets | 2,400 | | 1,670 |
| | Spring Airlines Co. Ltd., Class A | Passenger Airlines | 200 | | 1,766 |
| | StarPower Semiconductor Ltd., Class A | Semiconductors & Semiconductor Equipment | 140 | | 1,825 |
| | Sun Art Retail Group Ltd. | Consumer Staples Distribution & Retail | 9,000 | | 2,074 |
| | Sungrow Power Supply Co. Ltd., Class A | Electrical Equipment | 660 | | 9,391 |
| | Sunny Optical Technology Group Co. Ltd. | Electronic Equipment, Instruments & Components | 2,400 | | 17,766 |
| | Sunwoda Electronic Co. Ltd., Class A | Electrical Equipment | 600 | | 1,883 |
| | SUPCON Technology Co. Ltd., Class A | Electronic Equipment, Instruments & Components | 358 | | 2,574 |
| | Suzhou Dongshan Precision Manufacturing Co. Ltd., Class A | Electronic Equipment, Instruments & Components | 600 | | 2,018 |
| | Suzhou TFC Optical Communication Co. Ltd., Class A | Communications Equipment | 140 | | 2,010 |
| a,c | TAL Education Group, ADR | Diversified Consumer Services | 1,500 | | 17,760 |
| a | Tangshan Jidong Cement Co. Ltd., Class A | Construction Materials | 600 | | 478 |
| | TangShan Port Group Co. Ltd., Class A | Transportation Infrastructure | 1,800 | | 1,330 |
| | Tangshan Sanyou Chemical Industries Co. Ltd., Class A | Chemicals | 600 | | 506 |
| | TBEA Co. Ltd., Class A | Electrical Equipment | 1,420 | | 2,970 |
| | TCL Technology Group Corp., Class A | Electronic Equipment, Instruments & Components | 5,400 | | 3,534 |
| | TCL Zhonghuan Renewable Energy Technology Co. Ltd., Class A | Semiconductors & Semiconductor Equipment | 1,200 | | 1,776 |
| c | Tencent Holdings Ltd. | Interactive Media & Services | 23,500 | | 1,345,105 |
| c | Tencent Music Entertainment Group, ADR | Entertainment | 2,778 | | 33,475 |
| | Thunder Software Technology Co. Ltd., Class A | Software | 200 | | 1,502 |
| | Tian Di Science & Technology Co. Ltd., Class A | Machinery | 1,200 | | 1,118 |
| a | Tianfeng Securities Co. Ltd., Class A | Capital Markets | 2,400 | | 1,505 |
| | Tianjin Chase Sun Pharmaceutical Co. Ltd., Class A | Pharmaceuticals | 1,200 | | 698 |
| a | Tianma Microelectronics Co. Ltd., Class A | Electronic Equipment, Instruments & Components | 600 | | 694 |
| | Tianqi Lithium Corp., Class A | Chemicals | 600 | | 3,018 |
| | Tianqi Lithium Corp., Class H | Chemicals | 800 | | 2,843 |
| | Tianshan Aluminum Group Co. Ltd., Class A | Metals & Mining | 600 | | 734 |
| | TianShan Material Co. Ltd., Class A | Construction Materials | 600 | | 489 |
| | Tianshui Huatian Technology Co. Ltd., Class A | Semiconductors & Semiconductor Equipment | 1,200 | | 1,601 |
| | Tingyi Cayman Islands Holding Corp. | Food Products | 6,000 | | 8,667 |
| | Titan Wind Energy Suzhou Co. Ltd., Class A | Electrical Equipment | 600 | | 744 |
| c,e | Tongcheng Travel Holdings Ltd. | Hotels, Restaurants & Leisure | 4,800 | | 12,334 |
| | TongFu Microelectronics Co. Ltd., Class A | Semiconductors & Semiconductor Equipment | 600 | | 1,962 |
| | Tongkun Group Co. Ltd., Class A | Chemicals | 600 | | 1,161 |
| | Tongling Nonferrous Metals Group Co. Ltd., Class A | Metals & Mining | 3,600 | | 1,986 |
| | Tongwei Co. Ltd., Class A | Semiconductors & Semiconductor Equipment | 1,200 | | 3,914 |
| | Topchoice Medical Corp., Class A | Health Care Providers & Services | 140 | | 1,172 |
| b | Topsports International Holdings Ltd. | Specialty Retail | 12,000 | | 5,330 |
| | TravelSky Technology Ltd., Class H | Hotels, Restaurants & Leisure | 5,000 | | 7,441 |
| | Trina Solar Co. Ltd., Class A | Semiconductors & Semiconductor Equipment | 1,200 | | 3,844 |
| a,c | Trip.com Group Ltd. | Hotels, Restaurants & Leisure | 2,100 | | 132,745 |
| a | Tsinghua Tongfang Co. Ltd., Class A | Technology Hardware, Storage & Peripherals | 1,200 | | 1,078 |
| | Tsingtao Brewery Co. Ltd., Class A | Beverages | 400 | | 4,478 |
| | Tsingtao Brewery Co. Ltd., Class H | Beverages | 2,400 | | 18,786 |
| 17 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE Asia ex Japan ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | China (continued) | | | | |
| | Unigroup Guoxin Microelectronics Co. Ltd., Class A | Semiconductors & Semiconductor Equipment | 319 | | $ 2,843 |
| | Uni-President China Holdings Ltd. | Food Products | 5,000 | | 4,693 |
| | Unisplendour Corp. Ltd., Class A | Electronic Equipment, Instruments & Components | 600 | | 2,070 |
| c | Vipshop Holdings Ltd., ADR | Broadline Retail | 1,308 | | 20,575 |
| | Walvax Biotechnology Co. Ltd., Class A | Biotechnology | 600 | | 1,262 |
| a | Wanda Film Holding Co. Ltd., Class A | Entertainment | 600 | | 1,071 |
| | Wangsu Science & Technology Co. Ltd., Class A | IT Services | 600 | | 802 |
| | Wanhua Chemical Group Co. Ltd., Class A | Chemicals | 800 | | 10,439 |
| | Want Want China Holdings Ltd. | Food Products | 18,000 | | 12,375 |
| | Wanxiang Qianchao Co. Ltd., Class A | Automobile Components | 1,200 | | 960 |
| c | Weibo Corp., ADR | Interactive Media & Services | 300 | | 3,024 |
| | Weichai Power Co. Ltd., Class A | Machinery | 1,800 | | 4,082 |
| | Weichai Power Co. Ltd., Class H | Machinery | 8,000 | | 14,790 |
| | Weifu High-Technology Group Co. Ltd., Class B | Automobile Components | 600 | | 981 |
| | Wens Foodstuff Group Co. Ltd., Class A | Food Products | 1,800 | | 5,180 |
| | Western Mining Co. Ltd., Class A | Metals & Mining | 600 | | 1,626 |
| | Western Securities Co. Ltd., Class A | Capital Markets | 1,200 | | 1,490 |
| | Will Semiconductor Co. Ltd. Shanghai, Class A | Semiconductors & Semiconductor Equipment | 600 | | 9,190 |
| | Winning Health Technology Group Co. Ltd., Class A | Health Care Technology | 600 | | 634 |
| a | Wintime Energy Group Co. Ltd., Class A | Independent Power Producers & Energy Traders | 6,000 | | 1,149 |
| | Wuchan Zhongda Group Co. Ltd., Class A | Distributors | 1,800 | | 1,312 |
| | Wuhan Guide Infrared Co. Ltd., Class A | Electronic Equipment, Instruments & Components | 1,200 | | 1,259 |
| | Wuliangye Yibin Co. Ltd., Class A | Beverages | 1,200 | | 27,864 |
| | WUS Printed Circuit Kunshan Co. Ltd., Class A | Electronic Equipment, Instruments & Components | 600 | | 3,443 |
| | WuXi AppTec Co. Ltd., Class A | Life Sciences Tools & Services | 800 | | 5,985 |
| b | WuXi AppTec Co. Ltd., Class H | Life Sciences Tools & Services | 1,200 | | 8,435 |
| a,b | Wuxi Biologics Cayman, Inc. | Life Sciences Tools & Services | 14,440 | | 32,533 |
| | XCMG Construction Machinery Co. Ltd., Class A | Machinery | 3,600 | | 3,997 |
| | Xiamen C & D, Inc., Class A | Trading Companies & Distributors | 600 | | 875 |
| | Xiamen ITG Group Corp. Ltd., Class A | Trading Companies & Distributors | 600 | | 636 |
| | Xiamen Tungsten Co. Ltd., Class A | Metals & Mining | 600 | | 1,793 |
| | Xiangcai Co. Ltd., Class A | Real Estate Management & Development | 600 | | 687 |
| a,b,c | Xiaomi Corp., Class B | Technology Hardware, Storage & Peripherals | 55,200 | | 159,897 |
| | Xinxing Ductile Iron Pipes Co. Ltd., Class A | Metals & Mining | 1,800 | | 982 |
| | Xinyi Solar Holdings Ltd. | Semiconductors & Semiconductor Equipment | 16,500 | | 8,964 |
| a,c | XPeng, Inc., Class A | Automobiles | 4,800 | | 32,721 |
| | Xtep International Holdings Ltd. | Textiles, Apparel & Luxury Goods | 3,000 | | 2,333 |
| | Xuji Electric Co. Ltd., Class A | Electrical Equipment | 400 | | 1,954 |
| b | Yadea Group Holdings Ltd. | Automobiles | 4,200 | | 7,473 |
| a,d | Yango Group Co. Ltd., Class A | Real Estate Management & Development | 2,100 | | — |
| | Yangzijiang Shipbuilding Holdings Ltd. | Machinery | 10,200 | | 19,493 |
| | Yankuang Energy Group Co. Ltd., Class A | Oil, Gas & Consumable Fuels | 1,560 | | 3,722 |
| | Yankuang Energy Group Co. Ltd., Class H | Oil, Gas & Consumable Fuels | 11,700 | | 16,539 |
| | Yantai Changyu Pioneer Wine Co. Ltd., Class B | Beverages | 1,200 | | 1,461 |
| | Yealink Network Technology Corp. Ltd., Class A | Communications Equipment | 420 | | 2,537 |
| | Yifeng Pharmacy Chain Co. Ltd., Class A | Consumer Staples Distribution & Retail | 316 | | 1,152 |
| | Yihai International Holding Ltd. | Food Products | 2,000 | | 4,145 |
| | Yihai Kerry Arawana Holdings Co. Ltd., Class A | Food Products | 600 | | 3,043 |
| a | Yonghui Superstores Co. Ltd., Class A | Consumer Staples Distribution & Retail | 2,400 | | 1,245 |
| a | Yonyou Network Technology Co. Ltd., Class A | Software | 1,200 | | 1,972 |
| | Youngor Fashion Co. Ltd., Class A | Real Estate Management & Development | 1,200 | | 1,385 |
| | YTO Express Group Co. Ltd., Class A | Air Freight & Logistics | 1,200 | | 3,061 |
| | Yuan Longping High-tech Agriculture Co. Ltd., Class A | Food Products | 600 | | 978 |
| | Yuexiu Property Co. Ltd. | Real Estate Management & Development | 6,000 | | 4,913 |
| franklintempleton.com | Semi-Annual Report | 18 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE Asia ex Japan ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | China (continued) | | | | |
| | Yum China Holdings, Inc. | Hotels, Restaurants & Leisure | 1,500 | | $ 71,104 |
| | Yunnan Aluminium Co. Ltd., Class A | Metals & Mining | 1,200 | | 2,536 |
| | Yunnan Baiyao Group Co. Ltd., Class A | Pharmaceuticals | 600 | | 5,230 |
| | Yunnan Chihong Zinc&Germanium Co. Ltd., Class A | Metals & Mining | 1,200 | | 982 |
| | Yunnan Copper Co. Ltd., Class A | Metals & Mining | 600 | | 1,193 |
| | Yunnan Energy New Material Co. Ltd., Class A | Chemicals | 400 | | 1,955 |
| | Yunnan Tin Co. Ltd., Class A | Metals & Mining | 600 | | 1,397 |
| | Yunnan Yuntianhua Co. Ltd., Class A | Chemicals | 600 | | 1,940 |
| | Yutong Bus Co. Ltd., Class A | Machinery | 600 | | 2,259 |
| a | Zai Lab Ltd. | Biotechnology | 3,600 | | 8,815 |
| | Zhangzhou Pientzehuang Pharmaceutical Co. Ltd., Class A | Pharmaceuticals | 200 | | 7,387 |
| | Zhaojin Mining Industry Co. Ltd., Class H | Metals & Mining | 6,000 | | 10,644 |
| | Zhefu Holding Group Co. Ltd., Class A | Commercial Services & Supplies | 1,800 | | 862 |
| a | Zhejiang Century Huatong Group Co. Ltd., Class A | Entertainment | 2,400 | | 1,430 |
| | Zhejiang China Commodities City Group Co. Ltd., Class A | Broadline Retail | 1,800 | | 2,482 |
| | Zhejiang Chint Electrics Co. Ltd., Class A | Electrical Equipment | 600 | | 1,950 |
| | Zhejiang Crystal-Optech Co. Ltd., Class A | Electronic Equipment, Instruments & Components | 600 | | 1,623 |
| | Zhejiang Dahua Technology Co. Ltd., Class A | Electronic Equipment, Instruments & Components | 1,200 | | 2,953 |
| | Zhejiang Expressway Co. Ltd., Class H | Transportation Infrastructure | 6,000 | | 4,202 |
| | Zhejiang Huahai Pharmaceutical Co. Ltd., Class A | Pharmaceuticals | 600 | | 1,679 |
| | Zhejiang Huayou Cobalt Co. Ltd., Class A | Metals & Mining | 600 | | 2,530 |
| | Zhejiang Jingsheng Mechanical & Electrical Co. Ltd., Class A | Semiconductors & Semiconductor Equipment | 600 | | 2,777 |
| | Zhejiang Juhua Co. Ltd., Class A | Chemicals | 1,200 | | 3,818 |
| a,b | Zhejiang Leapmotor Technology Co. Ltd. | Automobiles | 2,400 | | 10,351 |
| | Zhejiang Longsheng Group Co. Ltd., Class A | Chemicals | 1,200 | | 1,804 |
| | Zhejiang NHU Co. Ltd., Class A | Chemicals | 1,200 | | 3,870 |
| | Zhejiang Sanhua Intelligent Controls Co. Ltd., Class A | Machinery | 600 | | 2,043 |
| | Zhejiang Wanfeng Auto Wheel Co. Ltd., Class A | Automobile Components | 600 | | 1,297 |
| | Zhejiang Weixing New Building Materials Co. Ltd., Class A | Building Products | 600 | | 1,283 |
| | Zhejiang Zheneng Electric Power Co. Ltd., Class A | Independent Power Producers & Energy Traders | 2,400 | | 2,308 |
| | Zhengzhou Coal Mining Machinery Group Co. Ltd., Class A | Machinery | 600 | | 1,208 |
| a,b | ZhongAn Online P&C Insurance Co. Ltd., Class H | Insurance | 3,000 | | 6,126 |
| | Zhongji Innolight Co. Ltd., Class A | Communications Equipment | 280 | | 6,196 |
| | Zhongjin Gold Corp. Ltd., Class A | Metals & Mining | 1,200 | | 2,606 |
| | Zhongshan Public Utilities Group Co. Ltd., Class A | Water Utilities | 600 | | 775 |
| | Zhongsheng Group Holdings Ltd. | Specialty Retail | 3,000 | | 5,569 |
| | Zhongtai Securities Co. Ltd., Class A | Capital Markets | 600 | | 628 |
| | Zhuhai Huafa Properties Co. Ltd., Class A | Real Estate Management & Development | 600 | | 630 |
| | Zhuzhou CRRC Times Electric Co. Ltd., Class H | Machinery | 1,800 | | 7,114 |
| | Zhuzhou Kibing Group Co. Ltd., Class A | Building Products | 600 | | 546 |
| | Zijin Mining Group Co. Ltd., Class A | Metals & Mining | 5,400 | | 13,996 |
| | Zijin Mining Group Co. Ltd., Class H | Metals & Mining | 22,000 | | 50,019 |
| | Zoomlion Heavy Industry Science & Technology Co. Ltd., Class A | Machinery | 2,400 | | 2,599 |
| 19 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE Asia ex Japan ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | China (continued) | | | | |
| | Zoomlion Heavy Industry Science & Technology Co. Ltd., Class H | Machinery | 6,000 | | $ 4,411 |
| | ZTE Corp., Class A | Communications Equipment | 1,200 | | 5,341 |
| | ZTE Corp., Class H | Communications Equipment | 2,400 | | 6,211 |
| | | | | | 9,526,312 |
| | Hong Kong 5.2% | | | | |
| | AIA Group Ltd. | Insurance | 43,000 | | 385,574 |
| a | Alibaba Health Information Technology Ltd., Class A | Consumer Staples Distribution & Retail | 24,000 | | 16,530 |
| a | Alibaba Pictures Group Ltd., Class A | Entertainment | 60,000 | | 3,939 |
| | ASMPT Ltd., Class A | Semiconductors & Semiconductor Equipment | 1,200 | | 14,677 |
| | Bank of East Asia Ltd., Class A | Banks | 4,800 | | 6,180 |
| | Beijing Enterprises Water Group Ltd., Class A | Water Utilities | 12,000 | | 3,739 |
| | Bosideng International Holdings Ltd., Class A | Textiles, Apparel & Luxury Goods | 14,000 | | 8,039 |
| | Cathay Pacific Airways Ltd., Class A | Passenger Airlines | 4,000 | | 4,300 |
| | Champion REIT, Class A | Office REITs | 6,000 | | 1,475 |
| | China Everbright Environment Group Ltd., Class B | Commercial Services & Supplies | 12,000 | | 5,793 |
| | China Everbright Ltd., Class A | Capital Markets | 4,000 | | 2,626 |
| | China Gas Holdings Ltd., Class A | Gas Utilities | 10,800 | | 10,053 |
| | China Mengniu Dairy Co. Ltd., Class B | Food Products | 12,000 | | 28,890 |
| | China Power International Development Ltd., Class H | Independent Power Producers & Energy Traders | 18,000 | | 8,597 |
| | China Resources Beer Holdings Co. Ltd., Class A | Beverages | 6,000 | | 26,263 |
| | China Resources Gas Group Ltd., Class A | Gas Utilities | 3,600 | | 14,530 |
| | China Resources Land Ltd., Class H | Real Estate Management & Development | 10,800 | | 39,835 |
| | China State Construction International Holdings Ltd., Class A | Construction & Engineering | 8,000 | | 12,462 |
| a | China Traditional Chinese Medicine Holdings Co. Ltd. | Pharmaceuticals | 12,000 | | 6,767 |
| | CK Asset Holdings Ltd. | Real Estate Management & Development | 7,200 | | 31,701 |
| | CK Infrastructure Holdings Ltd., Class A | Electric Utilities | 2,400 | | 16,438 |
| | CLP Holdings Ltd. | Electric Utilities | 6,000 | | 53,183 |
| | COSCO SHIPPING Ports Ltd., Class B | Transportation Infrastructure | 6,000 | | 3,661 |
| | DFI Retail Group Holdings Ltd., Class A | Consumer Staples Distribution & Retail | 1,200 | | 2,604 |
| | Far East Horizon Ltd. | Financial Services | 6,000 | | 4,395 |
| | Geely Automobile Holdings Ltd. | Automobiles | 21,000 | | 32,930 |
| | Guangdong Investment Ltd. | Water Utilities | 12,000 | | 8,080 |
| | Hang Lung Group Ltd. | Real Estate Management & Development | 3,000 | | 4,055 |
| | Hang Lung Properties Ltd. | Real Estate Management & Development | 7,000 | | 6,840 |
| | Hang Seng Bank Ltd. | Banks | 3,000 | | 37,753 |
| | Henderson Land Development Co. Ltd. | Real Estate Management & Development | 5,000 | | 15,964 |
| | Hong Kong & China Gas Co. Ltd. | Gas Utilities | 42,000 | | 34,606 |
| | Hong Kong Exchanges & Clearing Ltd. | Capital Markets | 4,900 | | 205,778 |
| | Hongkong Land Holdings Ltd. | Real Estate Management & Development | 4,200 | | 15,414 |
| | Hutchison Port Holdings Trust | Transportation Infrastructure | 19,800 | | 2,990 |
| | Hysan Development Co. Ltd. | Real Estate Management & Development | 2,000 | | 3,461 |
| a | J&T Global Express Ltd. | Air Freight & Logistics | 26,400 | | 23,859 |
| | Jardine Matheson Holdings Ltd. | Industrial Conglomerates | 750 | | 29,295 |
| | Johnson Electric Holdings Ltd. | Automobile Components | 1,000 | | 1,483 |
| | Kerry Properties Ltd. | Real Estate Management & Development | 2,500 | | 5,330 |
| | Kingboard Laminates Holdings Ltd. | Electronic Equipment, Instruments & Components | 3,000 | | 2,889 |
| | Kunlun Energy Co. Ltd. | Gas Utilities | 14,000 | | 14,455 |
| | Link REIT | Retail REITs | 9,600 | | 48,510 |
| | Man Wah Holdings Ltd. | Household Durables | 4,800 | | 3,992 |
| a | Melco International Development Ltd. | Hotels, Restaurants & Leisure | 4,000 | | 2,662 |
| franklintempleton.com | Semi-Annual Report | 20 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE Asia ex Japan ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | Hong Kong (continued) | | | | |
| | MTR Corp. Ltd. | Ground Transportation | 5,500 | | $ 20,782 |
| | New World Development Co. Ltd. | Real Estate Management & Development | 6,000 | | 7,454 |
| | NWS Holdings Ltd. | Industrial Conglomerates | 3,000 | | 3,098 |
| | Orient Overseas International Ltd. | Marine Transportation | 600 | | 8,528 |
| | PCCW Ltd. | Diversified Telecommunication Services | 12,000 | | 6,597 |
| | Power Assets Holdings Ltd. | Electric Utilities | 6,000 | | 38,468 |
| | Shanghai Industrial Holdings Ltd. | Industrial Conglomerates | 2,000 | | 3,121 |
| | Sino Biopharmaceutical Ltd. | Pharmaceuticals | 36,000 | | 17,287 |
| | Sino Land Co. Ltd. | Real Estate Management & Development | 13,300 | | 14,606 |
| | Sun Hung Kai Properties Ltd. | Real Estate Management & Development | 5,400 | | 59,475 |
| | Swire Pacific Ltd., Class A | Industrial Conglomerates | 1,500 | | 12,823 |
| | Swire Pacific Ltd., Class B | Industrial Conglomerates | 2,500 | | 3,386 |
| | Swire Properties Ltd. | Real Estate Management & Development | 3,600 | | 7,406 |
| | Techtronic Industries Co. Ltd. | Machinery | 5,000 | | 76,022 |
| | United Energy Group Ltd. | Oil, Gas & Consumable Fuels | 24,000 | | 1,190 |
| | VTech Holdings Ltd. | Communications Equipment | 600 | | 4,194 |
| b | WH Group Ltd. | Food Products | 30,000 | | 23,791 |
| | Wharf Holdings Ltd. | Real Estate Management & Development | 3,600 | | 10,289 |
| | Wharf Real Estate Investment Co. Ltd. | Real Estate Management & Development | 6,000 | | 21,242 |
| | Xinyi Glass Holdings Ltd. | Building Products | 8,400 | | 10,014 |
| | Yue Yuen Industrial Holdings Ltd. | Textiles, Apparel & Luxury Goods | 3,000 | | 5,732 |
| | | | | | 1,568,102 |
| | India 23.5% | | | | |
| | 3M India Ltd. | Industrial Conglomerates | 12 | | 4,845 |
| | Aarti Industries Ltd. | Chemicals | 798 | | 5,551 |
| | ABB India Ltd. | Electrical Equipment | 204 | | 19,608 |
| | ACC Ltd. | Construction Materials | 318 | | 9,538 |
| a | Adani Energy Solutions Ltd. | Electric Utilities | 1,320 | | 15,904 |
| | Adani Enterprises Ltd. | Trading Companies & Distributors | 1,194 | | 44,680 |
| a | Adani Green Energy Ltd. | Independent Power Producers & Energy Traders | 1,596 | | 36,237 |
| | Adani Ports & Special Economic Zone Ltd. | Transportation Infrastructure | 2,814 | | 48,630 |
| a | Adani Power Ltd. | Independent Power Producers & Energy Traders | 4,416 | | 34,577 |
| | Adani Total Gas Ltd. | Gas Utilities | 1,080 | | 10,136 |
| a | Adani Wilmar Ltd. | Food Products | 618 | | 2,569 |
| a | Aditya Birla Capital Ltd. | Financial Services | 3,102 | | 8,791 |
| | AIA Engineering Ltd. | Machinery | 150 | | 7,762 |
| | Alkem Laboratories Ltd. | Pharmaceuticals | 204 | | 14,734 |
| | Ambuja Cements Ltd. | Construction Materials | 2,760 | | 20,833 |
| | APL Apollo Tubes Ltd. | Metals & Mining | 756 | | 14,291 |
| | Apollo Hospitals Enterprise Ltd. | Health Care Providers & Services | 378 | | 32,473 |
| | Ashok Leyland Ltd. | Machinery | 5,304 | | 14,899 |
| | Asian Paints Ltd. | Chemicals | 1,734 | | 68,885 |
| | Astral Ltd. | Building Products | 462 | | 10,968 |
| b | AU Small Finance Bank Ltd. | Banks | 1,404 | | 12,401 |
| | Aurobindo Pharma Ltd. | Pharmaceuticals | 1,008 | | 17,570 |
| a,b | Avenue Supermarts Ltd. | Consumer Staples Distribution & Retail | 564 | | 34,299 |
| | Axis Bank Ltd. | Banks | 8,670 | | 127,482 |
| | Bajaj Auto Ltd. | Automobiles | 258 | | 38,010 |
| | Bajaj Finance Ltd. | Consumer Finance | 942 | | 86,588 |
| | Bajaj Finserv Ltd. | Financial Services | 1,446 | | 34,051 |
| | Bajaj Holdings & Investment Ltd. | Financial Services | 102 | | 12,774 |
| | Balkrishna Industries Ltd. | Automobile Components | 312 | | 11,356 |
| b | Bandhan Bank Ltd. | Banks | 3,078 | | 7,300 |
| | Bank of Baroda | Banks | 3,912 | | 11,568 |
| | Bank of India | Banks | 3,552 | | 4,688 |
| | Bata India Ltd. | Textiles, Apparel & Luxury Goods | 252 | | 4,329 |
| | Bayer CropScience Ltd. | Chemicals | 48 | | 3,673 |
| 21 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE Asia ex Japan ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | India (continued) | | | | |
| | Berger Paints India Ltd. | Chemicals | 1,134 | | $ 8,421 |
| e | Bharat Dynamics Ltd. | Aerospace & Defense | 276 | | 3,820 |
| | Bharat Electronics Ltd. | Aerospace & Defense | 13,650 | | 46,439 |
| | Bharat Forge Ltd. | Automobile Components | 954 | | 17,265 |
| | Bharat Heavy Electricals Ltd. | Electrical Equipment | 4,896 | | 16,341 |
| | Bharat Petroleum Corp. Ltd. | Oil, Gas & Consumable Fuels | 7,776 | | 34,328 |
| | Bharti Airtel Ltd. | Wireless Telecommunication Services | 570 | | 8,893 |
| | Bharti Airtel Ltd. | Wireless Telecommunication Services | 9,552 | | 194,861 |
| | Biocon Ltd. | Biotechnology | 1,740 | | 7,539 |
| | Bosch Ltd. | Automobile Components | 30 | | 13,489 |
| | Britannia Industries Ltd. | Food Products | 450 | | 34,035 |
| | Canara Bank | Banks | 7,080 | | 9,406 |
| | Castrol India Ltd. | Chemicals | 1,842 | | 5,403 |
| | CG Power & Industrial Solutions Ltd. | Electrical Equipment | 2,406 | | 21,793 |
| | Cholamandalam Investment & Finance Co. Ltd. | Consumer Finance | 1,554 | | 29,819 |
| | Cipla Ltd. | Pharmaceuticals | 2,040 | | 40,266 |
| | Coal India Ltd. | Oil, Gas & Consumable Fuels | 8,658 | | 52,707 |
| b | Cochin Shipyard Ltd. | Machinery | 270 | | 5,607 |
| | Coforge Ltd. | IT Services | 228 | | 19,090 |
| | Colgate-Palmolive India Ltd. | Personal Care Products | 486 | | 22,064 |
| | Container Corp. of India Ltd. | Ground Transportation | 1,068 | | 11,703 |
| | Coromandel International Ltd. | Chemicals | 498 | | 9,952 |
| | Cummins India Ltd. | Machinery | 510 | | 23,163 |
| | Dabur India Ltd. | Personal Care Products | 2,148 | | 16,025 |
| | Dalmia Bharat Ltd. | Construction Materials | 324 | | 7,474 |
| | Deepak Nitrite Ltd. | Chemicals | 270 | | 9,366 |
| | Divi’s Laboratories Ltd. | Life Sciences Tools & Services | 486 | | 31,568 |
| e | Dixon Technologies India Ltd. | Household Durables | 138 | | 22,730 |
| | DLF Ltd. | Real Estate Management & Development | 2,364 | | 25,252 |
| b | Dr. Lal PathLabs Ltd. | Health Care Providers & Services | 132 | | 5,202 |
| | Dr. Reddy’s Laboratories Ltd. | Pharmaceuticals | 462 | | 37,222 |
| | Eicher Motors Ltd. | Automobiles | 528 | | 31,668 |
| | Emami Ltd. | Personal Care Products | 810 | | 7,406 |
| | Embassy Office Parks REIT | Office REITs | 3,408 | | 15,857 |
| b | Endurance Technologies Ltd. | Automobile Components | 120 | | 3,438 |
| | Escorts Kubota Ltd. | Machinery | 126 | | 6,418 |
| | Exide Industries Ltd. | Automobile Components | 1,788 | | 10,722 |
| | Federal Bank Ltd. | Banks | 7,002 | | 16,438 |
| a | FSN E-Commerce Ventures Ltd. | Specialty Retail | 5,292 | | 12,353 |
| | GAIL India Ltd. | Gas Utilities | 10,272 | | 29,454 |
| | GE T&D India Ltd. | Electrical Equipment | 240 | | 4,814 |
| b | General Insurance Corp. of India | Insurance | 378 | | 1,784 |
| | GlaxoSmithKline Pharmaceuticals Ltd. | Pharmaceuticals | 162 | | 5,317 |
| | Glenmark Pharmaceuticals Ltd. | Pharmaceuticals | 570 | | 11,383 |
| a | GMR Airports Infrastructure Ltd. | Transportation Infrastructure | 13,578 | | 15,240 |
| | Godrej Consumer Products Ltd. | Personal Care Products | 1,374 | | 22,846 |
| a | Godrej Industries Ltd. | Industrial Conglomerates | 258 | | 3,804 |
| a | Godrej Properties Ltd. | Real Estate Management & Development | 396 | | 14,937 |
| | Grasim Industries Ltd. | Construction Materials | 1,410 | | 47,037 |
| | Gujarat Fluorochemicals Ltd. | Chemicals | 156 | | 7,954 |
| | Gujarat Gas Ltd. | Gas Utilities | 798 | | 5,889 |
| | Havells India Ltd. | Electrical Equipment | 900 | | 21,618 |
| | HCL Technologies Ltd. | IT Services | 4,002 | | 85,774 |
| b | HDFC Asset Management Co. Ltd. | Capital Markets | 390 | | 20,008 |
| | HDFC Bank Ltd. | Banks | 21,372 | | 441,728 |
| b | HDFC Life Insurance Co. Ltd. | Insurance | 3,732 | | 31,975 |
| | Hero MotoCorp Ltd. | Automobiles | 504 | | 34,356 |
| franklintempleton.com | Semi-Annual Report | 22 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE Asia ex Japan ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | India (continued) | | | | |
| | Hindalco Industries Ltd. | Metals & Mining | 5,274 | | $ 47,591 |
| e | Hindustan Aeronautics Ltd. | Aerospace & Defense | 720 | | 37,981 |
| | Hindustan Petroleum Corp. Ltd. | Oil, Gas & Consumable Fuels | 3,546 | | 18,642 |
| | Hindustan Unilever Ltd. | Personal Care Products | 3,354 | | 118,401 |
| | Hindustan Zinc Ltd. | Metals & Mining | 918 | | 5,724 |
| | Hitachi Energy India Ltd. | Electrical Equipment | 36 | | 6,248 |
| | Honeywell Automation India Ltd. | Electronic Equipment, Instruments & Components | 8 | | 4,676 |
| | Housing & Urban Development Corp. Ltd. | Financial Services | 1,884 | | 5,436 |
| | ICICI Bank Ltd. | Banks | 14,646 | | 222,483 |
| b | ICICI Lombard General Insurance Co. Ltd. | Insurance | 936 | | 24,286 |
| b | ICICI Prudential Life Insurance Co. Ltd. | Insurance | 1,494 | | 13,908 |
| | IDBI Bank Ltd. | Banks | 2,400 | | 2,497 |
| a | IDFC First Bank Ltd. | Banks | 13,488 | | 11,967 |
| | Indian Bank | Banks | 1,050 | | 6,566 |
| | Indian Hotels Co. Ltd. | Hotels, Restaurants & Leisure | 3,108 | | 25,394 |
| | Indian Oil Corp. Ltd. | Oil, Gas & Consumable Fuels | 15,984 | | 34,361 |
| | Indian Railway Catering & Tourism Corp. Ltd. | Commercial Services & Supplies | 1,170 | | 12,964 |
| b | Indian Railway Finance Corp. Ltd. | Financial Services | 6,948 | | 13,160 |
| a | Indian Renewable Energy Development Agency Ltd. | Financial Services | 2,592 | | 7,265 |
| | Indraprastha Gas Ltd. | Gas Utilities | 1,362 | | 9,078 |
| a | Indus Towers Ltd. | Diversified Telecommunication Services | 5,046 | | 23,637 |
| | Info Edge India Ltd. | Interactive Media & Services | 288 | | 27,840 |
| | Infosys Ltd. | IT Services | 13,320 | | 298,122 |
| a,b | InterGlobe Aviation Ltd. | Passenger Airlines | 696 | | 39,761 |
| | Ipca Laboratories Ltd. | Pharmaceuticals | 516 | | 9,224 |
| | IRB Infrastructure Developers Ltd. | Construction & Engineering | 10,854 | | 7,909 |
| | ITC Ltd. | Tobacco | 11,448 | | 70,784 |
| | Jindal Stainless Ltd. | Metals & Mining | 1,212 | | 11,433 |
| | Jindal Steel & Power Ltd. | Metals & Mining | 1,470 | | 18,237 |
| a | Jio Financial Services Ltd. | Financial Services | 12,054 | | 50,430 |
| | JSW Energy Ltd. | Independent Power Producers & Energy Traders | 2,052 | | 17,950 |
| | JSW Infrastructure Ltd. | Transportation Infrastructure | 948 | | 3,904 |
| | JSW Steel Ltd. | Metals & Mining | 3,840 | | 47,200 |
| | Jubilant Foodworks Ltd. | Hotels, Restaurants & Leisure | 1,410 | | 11,473 |
| | Kalyan Jewellers India Ltd. | Textiles, Apparel & Luxury Goods | 1,518 | | 13,228 |
| | Kansai Nerolac Paints Ltd. | Chemicals | 798 | | 2,947 |
| | KEI Industries Ltd. | Electrical Equipment | 210 | | 10,769 |
| | Kotak Mahindra Bank Ltd. | Banks | 2,634 | | 58,272 |
| | KPIT Technologies Ltd. | Software | 618 | | 12,006 |
| | L&T Finance Ltd. | Financial Services | 3,252 | | 7,211 |
| b | L&T Technology Services Ltd. | Professional Services | 102 | | 6,505 |
| | Larsen & Toubro Ltd. | Construction & Engineering | 2,544 | | 111,581 |
| b | Laurus Labs Ltd. | Pharmaceuticals | 1,548 | | 8,564 |
| | LIC Housing Finance Ltd. | Financial Services | 1,176 | | 9,296 |
| | Linde India Ltd. | Chemicals | 84 | | 8,505 |
| | Lloyds Metals & Energy Ltd. | Metals & Mining | 438 | | 4,957 |
| b | LTIMindtree Ltd. | IT Services | 348 | | 25,931 |
| | Lupin Ltd. | Pharmaceuticals | 918 | | 24,002 |
| b | Macrotech Developers Ltd. | Real Estate Management & Development | 1,002 | | 14,760 |
| | Mahindra & Mahindra Financial Services Ltd. | Consumer Finance | 2,310 | | 9,327 |
| | Mahindra & Mahindra Ltd. | Automobiles | 3,480 | | 128,521 |
| | Mangalore Refinery & Petrochemicals Ltd. | Oil, Gas & Consumable Fuels | 672 | | 1,461 |
| a | Mankind Pharma Ltd. | Pharmaceuticals | 372 | | 11,190 |
| | Marico Ltd. | Food Products | 2,022 | | 16,779 |
| | Maruti Suzuki India Ltd. | Automobiles | 528 | | 83,408 |
| a | Max Financial Services Ltd. | Insurance | 924 | | 13,132 |
| 23 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE Asia ex Japan ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | India (continued) | | | | |
| | Max Healthcare Institute Ltd. | Health Care Providers & Services | 2,802 | | $ 32,960 |
| | Mazagon Dock Shipbuilders Ltd. | Aerospace & Defense | 120 | | 6,057 |
| | Metro Brands Ltd. | Specialty Retail | 120 | | 1,827 |
| | Motilal Oswal Financial Services Ltd. | Capital Markets | 534 | | 4,856 |
| | Mphasis Ltd. | IT Services | 426 | | 15,303 |
| | MRF Ltd. | Automobile Components | 12 | | 19,835 |
| | Muthoot Finance Ltd. | Consumer Finance | 414 | | 10,038 |
| | Nestle India Ltd. | Food Products | 1,368 | | 43,912 |
| b | New India Assurance Co. Ltd. | Insurance | 852 | | 2,343 |
| | NHPC Ltd. | Independent Power Producers & Energy Traders | 11,610 | | 13,155 |
| b | Nippon Life India Asset Management Ltd. | Capital Markets | 678 | | 5,271 |
| | NLC India Ltd. | Independent Power Producers & Energy Traders | 678 | | 2,286 |
| | NMDC Ltd. | Metals & Mining | 4,482 | | 13,099 |
| | NTPC Ltd. | Independent Power Producers & Energy Traders | 18,078 | | 95,609 |
| | Oberoi Realty Ltd. | Real Estate Management & Development | 456 | | 10,296 |
| | Oil & Natural Gas Corp. Ltd. | Oil, Gas & Consumable Fuels | 14,808 | | 52,587 |
| | Oil India Ltd. | Oil, Gas & Consumable Fuels | 2,106 | | 14,592 |
| a | One 97 Communications Ltd. | Financial Services | 1,374 | | 11,285 |
| | Oracle Financial Services Software Ltd. | Software | 84 | | 11,486 |
| | Page Industries Ltd. | Textiles, Apparel & Luxury Goods | 24 | | 12,287 |
| | Patanjali Foods Ltd. | Food Products | 372 | | 7,473 |
| a | PB Fintech Ltd. | Insurance | 1,188 | | 22,965 |
| | Persistent Systems Ltd. | IT Services | 384 | | 24,975 |
| | Petronet LNG Ltd. | Oil, Gas & Consumable Fuels | 2,922 | | 11,909 |
| | Phoenix Mills Ltd. | Real Estate Management & Development | 732 | | 16,122 |
| | PI Industries Ltd. | Chemicals | 306 | | 17,000 |
| | Pidilite Industries Ltd. | Chemicals | 576 | | 23,090 |
| | Piramal Enterprises Ltd. | Financial Services | 462 | | 6,085 |
| | Polycab India Ltd. | Electrical Equipment | 186 | | 15,437 |
| | Poonawalla Fincorp Ltd. | Consumer Finance | 1,062 | | 4,999 |
| | Power Finance Corp. Ltd. | Financial Services | 5,532 | | 32,218 |
| | Power Grid Corp. of India Ltd. | Electric Utilities | 16,002 | | 67,377 |
| | Prestige Estates Projects Ltd. | Real Estate Management & Development | 486 | | 10,701 |
| | Punjab National Bank | Banks | 8,586 | | 10,984 |
| e | Rail Vikas Nigam Ltd. | Construction & Engineering | 2,160 | | 13,698 |
| a | Rajesh Exports Ltd. | Textiles, Apparel & Luxury Goods | 528 | | 1,829 |
| b | RBL Bank Ltd. | Banks | 1,722 | | 4,198 |
| | REC Ltd. | Financial Services | 4,740 | | 31,364 |
| | Relaxo Footwears Ltd. | Textiles, Apparel & Luxury Goods | 282 | | 2,730 |
| | Reliance Industries Ltd. | Oil, Gas & Consumable Fuels | 12,624 | | 444,869 |
| | Samvardhana Motherson International Ltd. | Automobile Components | 10,260 | | 25,881 |
| | SBI Cards & Payment Services Ltd. | Consumer Finance | 1,122 | | 10,359 |
| b | SBI Life Insurance Co. Ltd. | Insurance | 1,590 | | 34,987 |
| | Schaeffler India Ltd. | Machinery | 156 | | 7,286 |
| | Shree Cement Ltd. | Construction Materials | 54 | | 16,953 |
| | Shriram Finance Ltd. | Consumer Finance | 1,062 | | 45,330 |
| | Siemens Ltd. | Industrial Conglomerates | 336 | | 29,069 |
| | SJVN Ltd. | Electric Utilities | 2,814 | | 4,450 |
| | Solar Industries India Ltd. | Chemicals | 90 | | 12,383 |
| b | Sona Blw Precision Forgings Ltd. | Automobile Components | 1,374 | | 12,189 |
| | SRF Ltd. | Chemicals | 528 | | 15,738 |
| a | Star Health & Allied Insurance Co. Ltd. | Insurance | 888 | | 6,433 |
| | State Bank of India | Banks | 6,822 | | 64,140 |
| | Steel Authority of India Ltd. | Metals & Mining | 5,640 | | 9,514 |
| | Sun Pharmaceutical Industries Ltd. | Pharmaceuticals | 4,152 | | 95,460 |
| | Sun TV Network Ltd. | Media | 330 | | 3,281 |
| | Sundaram Finance Ltd. | Consumer Finance | 252 | | 15,851 |
| franklintempleton.com | Semi-Annual Report | 24 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE Asia ex Japan ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | India (continued) | | | | |
| | Supreme Industries Ltd. | Chemicals | 246 | | $ 15,622 |
| a | Suzlon Energy Ltd. | Electrical Equipment | 44,604 | | 42,607 |
| b | Syngene International Ltd. | Life Sciences Tools & Services | 660 | | 7,076 |
| | Tata Communications Ltd. | Diversified Telecommunication Services | 444 | | 11,310 |
| | Tata Consultancy Services Ltd. | IT Services | 3,918 | | 199,567 |
| | Tata Consumer Products Ltd. | Food Products | 2,370 | | 33,851 |
| | Tata Elxsi Ltd. | Software | 126 | | 11,614 |
| | Tata Motors Ltd., Class A | Automobiles | 7,897 | | 91,853 |
| | Tata Power Co. Ltd. | Electric Utilities | 5,592 | | 32,204 |
| | Tata Steel Ltd. | Metals & Mining | 32,130 | | 64,623 |
| | Tata Technologies Ltd. | IT Services | 636 | | 8,372 |
| a | Tata Teleservices Maharashtra Ltd. | Diversified Telecommunication Services | 1,956 | | 1,972 |
| | Tech Mahindra Ltd. | IT Services | 2,322 | | 43,702 |
| | Thermax Ltd. | Machinery | 126 | | 7,668 |
| | Titan Co. Ltd. | Textiles, Apparel & Luxury Goods | 1,560 | | 71,185 |
| | Torrent Pharmaceuticals Ltd. | Pharmaceuticals | 372 | | 15,078 |
| | Torrent Power Ltd. | Electric Utilities | 840 | | 18,825 |
| | Trent Ltd. | Specialty Retail | 690 | | 62,368 |
| | Tube Investments of India Ltd. | Automobile Components | 396 | | 20,490 |
| | TVS Motor Co. Ltd. | Automobiles | 894 | | 30,296 |
| | UltraTech Cement Ltd. | Construction Materials | 438 | | 61,685 |
| | Union Bank of India Ltd. | Banks | 5,778 | | 8,465 |
| | United Breweries Ltd. | Beverages | 270 | | 7,009 |
| | United Spirits Ltd. | Beverages | 1,086 | | 20,604 |
| | UNO Minda Ltd. | Automobile Components | 606 | | 7,966 |
| | UPL Ltd. | Chemicals | 2,052 | | 15,014 |
| | Varun Beverages Ltd. | Beverages | 4,440 | | 32,123 |
| | Vedant Fashions Ltd. | Textiles, Apparel & Luxury Goods | 234 | | 3,770 |
| | Vedanta Ltd. | Metals & Mining | 6,042 | | 36,962 |
| a | Vodafone Idea Ltd. | Wireless Telecommunication Services | 80,814 | | 9,991 |
| | Voltas Ltd. | Construction & Engineering | 894 | | 19,684 |
| | Whirlpool of India Ltd. | Household Durables | 252 | | 6,885 |
| | Wipro Ltd. | IT Services | 5,370 | | 34,696 |
| a | Yes Bank Ltd. | Banks | 77,802 | | 20,871 |
| a | Zee Entertainment Enterprises Ltd. | Media | 3,228 | | 5,304 |
| a | Zomato Ltd. | Hotels, Restaurants & Leisure | 26,202 | | 85,452 |
| | Zydus Lifesciences Ltd. | Pharmaceuticals | 960 | | 12,241 |
| | | | | | 7,119,761 |
| | Indonesia 1.9% | | | | |
| | Adaro Energy Indonesia Tbk. PT, Class B | Oil, Gas & Consumable Fuels | 40,800 | | 10,267 |
| a | Amman Mineral Internasional PT | Metals & Mining | 48,000 | | 29,405 |
| | Astra International Tbk. PT, Class H | Industrial Conglomerates | 76,200 | | 25,417 |
| | Avia Avian Tbk. PT | Chemicals | 64,400 | | 2,118 |
| | Bank Central Asia Tbk. PT, Class A | Banks | 211,200 | | 144,032 |
| | Bank Mandiri Persero Tbk. PT, Class A | Banks | 169,200 | | 77,392 |
| | Bank Negara Indonesia Persero Tbk. PT, Class H | Banks | 55,800 | | 19,718 |
| | Bank Rakyat Indonesia Persero Tbk. PT, Class A | Banks | 266,400 | | 87,099 |
| | Bank Syariah Indonesia Tbk. PT | Banks | 12,000 | | 2,386 |
| | Barito Pacific Tbk. PT, Class A | Chemicals | 89,537 | | 6,210 |
| | Bukit Asam Tbk. PT, Class A | Oil, Gas & Consumable Fuels | 15,600 | | 3,174 |
| a | Bumi Serpong Damai Tbk. PT, Class A | Real Estate Management & Development | 22,800 | | 1,792 |
| | Charoen Pokphand Indonesia Tbk. PT, Class A | Food Products | 28,200 | | 8,754 |
| | Dayamitra Telekomunikasi PT | Diversified Telecommunication Services | 69,600 | | 2,942 |
| | Elang Mahkota Teknologi Tbk. PT | Media | 97,200 | | 2,658 |
| | First Pacific Co. Ltd. | Food Products | 12,000 | | 6,643 |
| a | GoTo Gojek Tokopedia Tbk. PT | Broadline Retail | 3,714,000 | | 16,190 |
| 25 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE Asia ex Japan ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | Indonesia (continued) | | | | |
| a | Gudang Garam Tbk. PT | Tobacco | 1,800 | | $ 1,890 |
| | Indah Kiat Pulp & Paper Tbk. PT | Paper & Forest Products | 10,200 | | 5,828 |
| | Indocement Tunggal Prakarsa Tbk. PT | Construction Materials | 5,400 | | 2,425 |
| | Indofood CBP Sukses Makmur Tbk. PT | Food Products | 9,000 | | 7,327 |
| | Indofood Sukses Makmur Tbk. PT | Food Products | 16,800 | | 7,823 |
| | Indosat Tbk. PT | Wireless Telecommunication Services | 5,400 | | 3,906 |
| | Jasa Marga Persero Tbk. PT | Transportation Infrastructure | 8,400 | | 2,735 |
| | Kalbe Farma Tbk. PT | Pharmaceuticals | 73,200 | | 8,340 |
| | Mayora Indah Tbk. PT | Food Products | 13,800 | | 2,589 |
| a | Merdeka Copper Gold Tbk. PT | Metals & Mining | 67,800 | | 12,181 |
| | Perusahaan Gas Negara Tbk. PT | Gas Utilities | 42,000 | | 3,981 |
| a | Petrindo Jaya Kreasi Tbk. PT | Oil, Gas & Consumable Fuels | 6,600 | | 3,269 |
| | Sarana Menara Nusantara Tbk. PT | Diversified Telecommunication Services | 72,600 | | 4,100 |
| | Semen Indonesia Persero Tbk. PT | Construction Materials | 13,200 | | 3,304 |
| | Sumber Alfaria Trijaya Tbk. PT | Consumer Staples Distribution & Retail | 73,200 | | 15,278 |
| | Telkom Indonesia Persero Tbk. PT, Class B | Diversified Telecommunication Services | 177,000 | | 34,956 |
| | Tower Bersama Infrastructure Tbk. PT | Diversified Telecommunication Services | 2,400 | | 301 |
| | Trimegah Bangun Persada Tbk. PT | Metals & Mining | 31,200 | | 1,855 |
| | Unilever Indonesia Tbk. PT | Household Products | 22,800 | | 3,328 |
| | United Tractors Tbk. PT | Oil, Gas & Consumable Fuels | 5,400 | | 9,684 |
| a | Vale Indonesia Tbk. PT | Metals & Mining | 8,400 | | 2,264 |
| | XL Axiata Tbk. PT | Wireless Telecommunication Services | 16,800 | | 2,541 |
| | | | | | 586,102 |
| | Italy 0.0%† | | | | |
| | PRADA SpA | Textiles, Apparel & Luxury Goods | 1,800 | | 13,904 |
| | Macau 0.3% | | | | |
| | Galaxy Entertainment Group Ltd. | Hotels, Restaurants & Leisure | 8,400 | | 42,230 |
| | MGM China Holdings Ltd. | Hotels, Restaurants & Leisure | 2,400 | | 3,831 |
| a | Sands China Ltd. | Hotels, Restaurants & Leisure | 9,600 | | 24,620 |
| a | SJM Holdings Ltd. | Hotels, Restaurants & Leisure | 6,000 | | 2,387 |
| | Wynn Macau Ltd. | Hotels, Restaurants & Leisure | 4,800 | | 4,177 |
| | | | | | 77,245 |
| | Malaysia 2.0% | | | | |
| | Alliance Bank Malaysia Bhd., Class A | Banks | 4,200 | | 4,533 |
| | AMMB Holdings Bhd. | Banks | 10,800 | | 13,096 |
| | Axiata Group Bhd., Class A | Wireless Telecommunication Services | 17,400 | | 10,634 |
| | CELCOMDIGI Bhd. | Wireless Telecommunication Services | 15,600 | | 14,073 |
| | CIMB Group Holdings Bhd., Class A | Banks | 31,800 | | 62,081 |
| | Dialog Group Bhd., Class A | Energy Equipment & Services | 15,000 | | 7,821 |
| | FGV Holdings Bhd. | Food Products | 1,800 | | 476 |
| | Fraser & Neave Holdings Bhd. | Beverages | 600 | | 4,543 |
| | Gamuda Bhd. | Construction & Engineering | 9,600 | | 18,811 |
| | Genting Bhd. | Hotels, Restaurants & Leisure | 8,400 | | 8,617 |
| | Genting Malaysia Bhd. | Hotels, Restaurants & Leisure | 10,800 | | 6,338 |
| | Hartalega Holdings Bhd. | Health Care Equipment & Supplies | 6,600 | | 4,466 |
| | Hong Leong Bank Bhd. | Banks | 2,400 | | 12,549 |
| | Hong Leong Financial Group Bhd. | Banks | 1,200 | | 5,622 |
| | IHH Healthcare Bhd. | Health Care Providers & Services | 11,400 | | 19,795 |
| | IJM Corp. Bhd. | Construction & Engineering | 13,800 | | 9,806 |
| | IOI Corp. Bhd. | Food Products | 11,400 | | 10,395 |
| | Kuala Lumpur Kepong Bhd. | Food Products | 2,400 | | 11,955 |
| | Malayan Banking Bhd. | Banks | 28,800 | | 73,196 |
| | Malaysia Airports Holdings Bhd. | Transportation Infrastructure | 4,200 | | 10,654 |
| | Maxis Bhd. | Wireless Telecommunication Services | 11,400 | | 10,920 |
| | MISC Bhd. | Marine Transportation | 7,800 | | 14,754 |
| franklintempleton.com | Semi-Annual Report | 26 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE Asia ex Japan ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | Malaysia (continued) | | | | |
| b | Mr. DIY Group M Bhd. | Specialty Retail | 15,600 | | $ 8,020 |
| | Nestle Malaysia Bhd. | Food Products | 240 | | 6,053 |
| | Petronas Chemicals Group Bhd. | Chemicals | 10,800 | | 14,772 |
| | Petronas Dagangan Bhd. | Oil, Gas & Consumable Fuels | 1,200 | | 5,197 |
| | Petronas Gas Bhd. | Gas Utilities | 3,600 | | 15,715 |
| | PPB Group Bhd. | Food Products | 2,400 | | 8,416 |
| | Press Metal Aluminium Holdings Bhd. | Metals & Mining | 13,800 | | 16,934 |
| | Public Bank Bhd. | Banks | 56,400 | | 62,370 |
| | QL Resources Bhd. | Food Products | 6,300 | | 7,150 |
| | RHB Bank Bhd. | Banks | 7,200 | | 10,791 |
| | SD Guthrie Bhd. | Food Products | 13,800 | | 16,030 |
| | Sime Darby Bhd. | Industrial Conglomerates | 15,000 | | 8,949 |
| | Telekom Malaysia Bhd. | Diversified Telecommunication Services | 4,200 | | 6,845 |
| | Tenaga Nasional Bhd. | Electric Utilities | 16,800 | | 58,832 |
| a | Top Glove Corp. Bhd. | Health Care Equipment & Supplies | 20,400 | | 4,947 |
| | YTL Corp. Bhd. | Multi-Utilities | 18,600 | | 11,322 |
| | YTL Power International Bhd. | Multi-Utilities | 9,600 | | 8,521 |
| | | | | | 605,999 |
| | Philippines 0.7% | | | | |
| | ACEN Corp. | Independent Power Producers & Energy Traders | 35,400 | | 3,399 |
| | Ayala Corp., Class A | Industrial Conglomerates | 1,260 | | 15,099 |
| | Ayala Land, Inc., Class A | Real Estate Management & Development | 27,600 | | 18,026 |
| | Bank of the Philippine Islands, Class A | Banks | 7,756 | | 18,699 |
| | BDO Unibank, Inc., Class A | Banks | 8,820 | | 24,868 |
| a | Bloomberry Resorts Corp., Class H | Hotels, Restaurants & Leisure | 16,800 | | 2,425 |
| | Converge Information & Communications Technology Solutions, Inc. | Diversified Telecommunication Services | 9,600 | | 2,803 |
| | DMCI Holdings, Inc., Class A | Industrial Conglomerates | 16,200 | | 3,325 |
| | Globe Telecom, Inc. | Wireless Telecommunication Services | 132 | | 5,357 |
| | GT Capital Holdings, Inc. | Industrial Conglomerates | 360 | | 4,690 |
| | International Container Terminal Services, Inc. | Transportation Infrastructure | 4,020 | | 28,982 |
| | JG Summit Holdings, Inc. | Industrial Conglomerates | 11,400 | | 5,656 |
| | Jollibee Foods Corp. | Hotels, Restaurants & Leisure | 1,636 | | 7,842 |
| | LT Group, Inc. | Industrial Conglomerates | 11,400 | | 2,038 |
| | Manila Electric Co. | Electric Utilities | 1,020 | | 7,976 |
| | Megaworld Corp. | Real Estate Management & Development | 42,000 | | 1,611 |
| | Metropolitan Bank & Trust Co. | Banks | 7,020 | | 9,846 |
| b | Monde Nissin Corp. | Food Products | 28,200 | | 5,123 |
| | PLDT, Inc. | Wireless Telecommunication Services | 360 | | 9,572 |
| | Puregold Price Club, Inc. | Consumer Staples Distribution & Retail | 4,060 | | 2,282 |
| | Semirara Mining & Power Corp. | Oil, Gas & Consumable Fuels | 4,800 | | 2,784 |
| | SM Prime Holdings, Inc. | Real Estate Management & Development | 40,200 | | 23,171 |
| | Universal Robina Corp. | Food Products | 3,420 | | 6,329 |
| | | | | | 211,903 |
| | Singapore 3.2% | | | | |
| b | BOC Aviation Ltd., Class A | Trading Companies & Distributors | 600 | | 4,967 |
| | CapitaLand Ascendas REIT, Class A | Industrial REITs | 13,800 | | 30,786 |
| | CapitaLand Ascott Trust, Class A | Hotel & Resort REITs | 9,600 | | 7,301 |
| | CapitaLand Integrated Commercial Trust, Class A | Retail REITs | 20,275 | | 33,528 |
| | CapitaLand Investment Ltd. | Real Estate Management & Development | 8,400 | | 20,443 |
| | City Developments Ltd., Class H | Real Estate Management & Development | 1,800 | | 7,582 |
| | ComfortDelGro Corp. Ltd., Class H | Ground Transportation | 7,800 | | 9,187 |
| | DBS Group Holdings Ltd., Class A | Banks | 7,600 | | 225,569 |
| e | Frasers Logistics & Commercial Trust | Industrial REITs | 10,800 | | 9,688 |
| | Genting Singapore Ltd. | Hotels, Restaurants & Leisure | 21,600 | | 14,743 |
| 27 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE Asia ex Japan ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | Singapore (continued) | | | | |
| | Jardine Cycle & Carriage Ltd. | Industrial Conglomerates | 200 | | $ 4,306 |
| | Keppel DC REIT | Specialized REITs | 4,800 | | 8,125 |
| | Keppel Ltd. | Industrial Conglomerates | 5,400 | | 27,927 |
| | Keppel REIT | Office REITs | 8,400 | | 6,257 |
| | Mapletree Industrial Trust | Industrial REITs | 7,800 | | 14,785 |
| | Mapletree Logistics Trust | Industrial REITs | 12,600 | | 14,349 |
| | Mapletree Pan Asia Commercial Trust | Retail REITs | 9,000 | | 10,390 |
| e | Netlink NBN Trust | Diversified Telecommunication Services | 11,400 | | 8,136 |
| | Olam Group Ltd. | Consumer Staples Distribution & Retail | 4,200 | | 3,669 |
| | Oversea-Chinese Banking Corp. Ltd. | Banks | 13,200 | | 155,476 |
| | SATS Ltd. | Transportation Infrastructure | 3,600 | | 10,137 |
| a | Seatrium Ltd. | Machinery | 7,800 | | 10,830 |
| | Sembcorp Industries Ltd. | Multi-Utilities | 3,600 | | 15,557 |
| | SIA Engineering Co. Ltd. | Transportation Infrastructure | 600 | | 1,133 |
| | Singapore Airlines Ltd. | Passenger Airlines | 5,400 | | 28,643 |
| | Singapore Exchange Ltd. | Capital Markets | 3,000 | | 26,724 |
| | Singapore Technologies Engineering Ltd. | Aerospace & Defense | 6,000 | | 21,810 |
| | Singapore Telecommunications Ltd. | Diversified Telecommunication Services | 28,800 | | 72,786 |
| | StarHub Ltd. | Wireless Telecommunication Services | 2,400 | | 2,303 |
| | Suntec Real Estate Investment Trust | Diversified REITs | 8,400 | | 8,714 |
| | United Overseas Bank Ltd. | Banks | 4,600 | | 115,431 |
| | UOL Group Ltd. | Real Estate Management & Development | 1,800 | | 7,807 |
| | Venture Corp. Ltd. | Electronic Equipment, Instruments & Components | 1,000 | | 10,952 |
| | Wilmar International Ltd. | Food Products | 7,200 | | 18,814 |
| | Yangzijiang Financial Holding Ltd. | Capital Markets | 10,200 | | 3,182 |
| | | | | | 972,037 |
| | South Korea 10.7% | | | | |
| a | Alteogen, Inc., Class A | Biotechnology | 162 | | 40,509 |
| | Amorepacific Corp., Class H | Personal Care Products | 108 | | 12,198 |
| | AMOREPACIFIC Group, Class A | Personal Care Products | 96 | | 2,045 |
| | BGF retail Co. Ltd. | Consumer Staples Distribution & Retail | 30 | | 2,631 |
| | BNK Financial Group, Inc., Class H | Banks | 1,074 | | 7,424 |
| a | Celltrion Pharm, Inc., Class A | Pharmaceuticals | 66 | | 3,467 |
| | Celltrion, Inc., Class A | Biotechnology | 552 | | 82,481 |
| | Cheil Worldwide, Inc., Class A | Media | 270 | | 3,797 |
| | CJ CheilJedang Corp., Class A | Food Products | 30 | | 6,974 |
| | CJ Corp., Class A | Industrial Conglomerates | 48 | | 4,364 |
| a | CJ ENM Co. Ltd., Class A | Entertainment | 42 | | 2,251 |
| | CJ Logistics Corp., Class A | Air Freight & Logistics | 30 | | 2,136 |
| a | CosmoAM&T Co. Ltd. | Technology Hardware, Storage & Peripherals | 84 | | 8,055 |
| | Coway Co. Ltd. | Household Durables | 216 | | 11,017 |
| a | Daewoo Engineering & Construction Co. Ltd., Class A | Construction & Engineering | 786 | | 2,302 |
| | DB Insurance Co. Ltd., Class A | Insurance | 168 | | 14,427 |
| | DGB Financial Group, Inc., Class A | Banks | 588 | | 3,638 |
| | DL Holdings Co. Ltd., Class A | Chemicals | 48 | | 1,613 |
| | Dongsuh Cos., Inc., Class A | Consumer Staples Distribution & Retail | 120 | | 1,756 |
| | Doosan Bobcat, Inc., Class A | Machinery | 192 | | 5,961 |
| a | Doosan Enerbility Co. Ltd., Class H | Electrical Equipment | 1,596 | | 21,859 |
| a | Ecopro BM Co. Ltd. | Electrical Equipment | 174 | | 24,549 |
| a | Ecopro Co. Ltd. | Electrical Equipment | 372 | | 25,204 |
| a | Ecopro Materials Co. Ltd. | Electrical Equipment | 126 | | 12,998 |
| | E-MART, Inc., Class A | Consumer Staples Distribution & Retail | 78 | | 3,531 |
| | F&F Co. Ltd. | Textiles, Apparel & Luxury Goods | 60 | | 3,143 |
| | Fila Holdings Corp. | Textiles, Apparel & Luxury Goods | 198 | | 6,397 |
| | Green Cross Corp. | Biotechnology | 24 | | 2,780 |
| a | GS Engineering & Construction Corp. | Construction & Engineering | 246 | | 3,450 |
| franklintempleton.com | Semi-Annual Report | 28 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE Asia ex Japan ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | South Korea (continued) | | | | |
| | GS Holdings Corp. | Industrial Conglomerates | 174 | | $ 5,662 |
| | GS Retail Co. Ltd. | Consumer Staples Distribution & Retail | 150 | | 2,449 |
| | Hana Financial Group, Inc. | Banks | 1,002 | | 45,054 |
| | Hanjin Kal Corp. | Hotels, Restaurants & Leisure | 120 | | 7,571 |
| | Hankook Tire & Technology Co. Ltd. | Automobile Components | 288 | | 9,129 |
| | Hanmi Pharm Co. Ltd. | Pharmaceuticals | 24 | | 5,900 |
| | Hanmi Science Co. Ltd. | Health Care Providers & Services | 96 | | 2,342 |
| | Hanmi Semiconductor Co. Ltd. | Semiconductors & Semiconductor Equipment | 168 | | 13,913 |
| | Hanon Systems | Automobile Components | 624 | | 2,030 |
| | Hanwha Aerospace Co. Ltd. | Aerospace & Defense | 118 | | 26,800 |
| | Hanwha Corp. | Industrial Conglomerates | 174 | | 3,845 |
| a | Hanwha Industrial Solutions Co. Ltd. | Aerospace & Defense | 132 | | 3,352 |
| | Hanwha Life Insurance Co. Ltd. | Insurance | 1,386 | | 3,042 |
| a | Hanwha Ocean Co. Ltd., Class A | Machinery | 342 | | 7,990 |
| | Hanwha Solutions Corp. | Chemicals | 402 | | 7,947 |
| | HD Hyundai Co. Ltd. | Oil, Gas & Consumable Fuels | 162 | | 9,477 |
| | HD Hyundai Electric Co. Ltd. | Electrical Equipment | 78 | | 19,654 |
| a | HD Hyundai Heavy Industries Co. Ltd. | Machinery | 84 | | 11,858 |
| | HD Hyundai Infracore Co. Ltd. | Machinery | 540 | | 3,097 |
| | HD Korea Shipbuilding & Offshore Engineering Co. Ltd. | Machinery | 162 | | 23,253 |
| | Hite Jinro Co. Ltd. | Beverages | 120 | | 1,867 |
| | HL Mando Co. Ltd. | Automobile Components | 126 | | 3,546 |
| a | HLB, Inc. | Health Care Equipment & Supplies | 456 | | 29,884 |
| | HMM Co. Ltd. | Marine Transportation | 1,104 | | 15,644 |
| | Hotel Shilla Co. Ltd. | Specialty Retail | 120 | | 4,386 |
| | HYBE Co. Ltd. | Entertainment | 78 | | 10,068 |
| | Hyundai Autoever Corp. | IT Services | 24 | | 2,869 |
| | Hyundai Engineering & Construction Co. Ltd. | Construction & Engineering | 282 | | 6,577 |
| | Hyundai Glovis Co. Ltd. | Air Freight & Logistics | 144 | | 13,445 |
| | Hyundai Marine & Fire Insurance Co. Ltd. | Insurance | 228 | | 5,754 |
| | Hyundai Mipo Dockyard Co. Ltd. | Machinery | 78 | | 5,947 |
| | Hyundai Mobis Co. Ltd. | Automobile Components | 258 | | 42,911 |
| | Hyundai Motor Co. | Automobiles | 507 | | 94,600 |
| | Hyundai Steel Co. | Metals & Mining | 324 | | 6,913 |
| | Hyundai Wia Corp. | Automobile Components | 60 | | 2,363 |
| | Industrial Bank of Korea | Banks | 1,056 | | 11,281 |
| | Kakao Corp. | Interactive Media & Services | 1,266 | | 34,997 |
| a | Kakao Games Corp. | Entertainment | 156 | | 2,088 |
| | KakaoBank Corp. | Banks | 834 | | 13,489 |
| a | Kakaopay Corp. | Financial Services | 84 | | 1,567 |
| | Kangwon Land, Inc. | Hotels, Restaurants & Leisure | 414 | | 5,372 |
| | KB Financial Group, Inc. | Banks | 1,284 | | 79,434 |
| | KCC Corp. | Chemicals | 18 | | 4,150 |
| | KEPCO Plant Service & Engineering Co. Ltd. | Commercial Services & Supplies | 84 | | 2,704 |
| | Kia Corp. | Automobiles | 948 | | 72,421 |
| | Korea Aerospace Industries Ltd. | Aerospace & Defense | 270 | | 10,757 |
| | Korea Electric Power Corp. | Electric Utilities | 990 | | 15,557 |
| a | Korea Gas Corp. | Gas Utilities | 102 | | 3,635 |
| | Korea Investment Holdings Co. Ltd. | Capital Markets | 150 | | 8,419 |
| | Korea Zinc Co. Ltd. | Metals & Mining | 42 | | 22,097 |
| | Korean Air Lines Co. Ltd. | Passenger Airlines | 720 | | 12,416 |
| a | Krafton, Inc. | Entertainment | 138 | | 36,144 |
| | KT&G Corp. | Tobacco | 372 | | 30,979 |
| a | Kum Yang Co. Ltd. | Chemicals | 132 | | 5,279 |
| | Kumho Petrochemical Co. Ltd. | Chemicals | 60 | | 7,245 |
| a | L&F Co. Ltd. | Electrical Equipment | 96 | | 8,332 |
| 29 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE Asia ex Japan ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | South Korea (continued) | | | | |
| | LG Chem Ltd. | Chemicals | 180 | | $ 49,071 |
| | LG Corp. | Industrial Conglomerates | 330 | | 19,961 |
| a | LG Display Co. Ltd. | Electronic Equipment, Instruments & Components | 1,188 | | 9,939 |
| | LG Electronics, Inc. | Household Durables | 408 | | 32,541 |
| a | LG Energy Solution Ltd. | Electrical Equipment | 150 | | 47,545 |
| | LG H&H Co. Ltd. | Personal Care Products | 36 | | 10,434 |
| | LG Innotek Co. Ltd. | Electronic Equipment, Instruments & Components | 54 | | 9,002 |
| | LG Uplus Corp. | Diversified Telecommunication Services | 822 | | 6,166 |
| | Lotte Chemical Corp. | Chemicals | 72 | | 5,588 |
| | Lotte Chilsung Beverage Co. Ltd. | Beverages | 12 | | 1,193 |
| | Lotte Corp. | Industrial Conglomerates | 102 | | 1,923 |
| | Lotte Energy Materials Corp. | Electronic Equipment, Instruments & Components | 78 | | 2,457 |
| | Lotte Shopping Co. Ltd. | Broadline Retail | 42 | | 1,975 |
| | LS Corp. | Electrical Equipment | 66 | | 6,218 |
| | LS Electric Co. Ltd. | Electrical Equipment | 54 | | 6,743 |
| | Meritz Financial Group, Inc. | Financial Services | 348 | | 25,840 |
| | Mirae Asset Securities Co. Ltd. | Capital Markets | 1,002 | | 6,452 |
| | NAVER Corp. | Interactive Media & Services | 510 | | 66,066 |
| | NCSoft Corp. | Entertainment | 60 | | 8,764 |
| a,b | Netmarble Corp. | Entertainment | 84 | | 3,822 |
| | NH Investment & Securities Co. Ltd., Class C | Capital Markets | 528 | | 5,419 |
| | NongShim Co. Ltd. | Food Products | 12 | | 3,533 |
| | OCI Holdings Co. Ltd. | Chemicals | 60 | | 3,253 |
| | Orion Corp. | Food Products | 84 | | 6,263 |
| | Ottogi Corp. | Food Products | 6 | | 1,957 |
| | Pan Ocean Co. Ltd. | Marine Transportation | 954 | | 2,914 |
| | Paradise Co. Ltd. | Hotels, Restaurants & Leisure | 180 | | 1,661 |
| a | Pearl Abyss Corp. | Entertainment | 126 | | 3,719 |
| | Posco DX Co. Ltd. | IT Services | 204 | | 4,758 |
| | POSCO Future M Co. Ltd. | Electrical Equipment | 108 | | 20,647 |
| | POSCO Holdings, Inc. | Metals & Mining | 282 | | 83,024 |
| | Posco International Corp. | Trading Companies & Distributors | 174 | | 7,598 |
| | S-1 Corp. | Commercial Services & Supplies | 72 | | 3,254 |
| a,b | Samsung Biologics Co. Ltd. | Life Sciences Tools & Services | 66 | | 49,309 |
| | Samsung C&T Corp. | Industrial Conglomerates | 318 | | 33,510 |
| | Samsung Card Co. Ltd. | Consumer Finance | 114 | | 3,587 |
| a | Samsung E&A Co. Ltd. | Construction & Engineering | 612 | | 10,296 |
| | Samsung Electro-Mechanics Co. Ltd. | Electronic Equipment, Instruments & Components | 210 | | 21,278 |
| | Samsung Electronics Co. Ltd. | Technology Hardware, Storage & Peripherals | 18,090 | | 850,757 |
| | Samsung Fire & Marine Insurance Co. Ltd. | Insurance | 126 | | 33,193 |
| a | Samsung Heavy Industries Co. Ltd. | Machinery | 2,508 | | 19,236 |
| | Samsung Life Insurance Co. Ltd. | Insurance | 270 | | 19,243 |
| | Samsung SDI Co. Ltd. | Electronic Equipment, Instruments & Components | 198 | | 57,309 |
| | Samsung SDS Co. Ltd. | IT Services | 138 | | 16,325 |
| | Samsung Securities Co. Ltd. | Capital Markets | 246 | | 8,193 |
| a | SD Biosensor, Inc. | Health Care Equipment & Supplies | 156 | | 1,095 |
| | Shinhan Financial Group Co. Ltd. | Banks | 1,836 | | 77,922 |
| | Shinsegae, Inc. | Broadline Retail | 24 | | 2,920 |
| a | SK Biopharmaceuticals Co. Ltd. | Pharmaceuticals | 102 | | 8,112 |
| a | SK Bioscience Co. Ltd. | Biotechnology | 96 | | 4,067 |
| | SK Hynix, Inc. | Semiconductors & Semiconductor Equipment | 2,046 | | 273,176 |
| a,b | SK IE Technology Co. Ltd. | Electrical Equipment | 102 | | 2,824 |
| a | SK Innovation Co. Ltd. | Oil, Gas & Consumable Fuels | 216 | | 19,342 |
| a | SK Square Co. Ltd. | Industrial Conglomerates | 354 | | 21,873 |
| | SK, Inc. | Industrial Conglomerates | 120 | | 14,058 |
| a | SKC Co. Ltd. | Chemicals | 72 | | 7,884 |
| | S-Oil Corp. | Oil, Gas & Consumable Fuels | 156 | | 7,301 |
| franklintempleton.com | Semi-Annual Report | 30 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE Asia ex Japan ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | South Korea (continued) | | | | |
| | Solus Advanced Materials Co. Ltd. | Electronic Equipment, Instruments & Components | 102 | | $ 975 |
| a | Wemade Co. Ltd. | Entertainment | 66 | | 1,716 |
| | Woori Financial Group, Inc. | Banks | 2,274 | | 26,953 |
| | Yuhan Corp. | Pharmaceuticals | 192 | | 20,937 |
| | | | | | 3,255,550 |
| | Taiwan 18.8% | | | | |
| | Accton Technology Corp. | Communications Equipment | 2,100 | | 35,302 |
| | Acer, Inc., Class H | Technology Hardware, Storage & Peripherals | 12,000 | | 15,471 |
| | Advantech Co. Ltd. | Technology Hardware, Storage & Peripherals | 1,620 | | 16,458 |
| | Alchip Technologies Ltd. | Semiconductors & Semiconductor Equipment | 280 | | 17,474 |
| | ASE Technology Holding Co. Ltd., Class A | Semiconductors & Semiconductor Equipment | 12,600 | | 60,120 |
| | Asia Cement Corp. | Construction Materials | 9,600 | | 14,485 |
| | Asia Vital Components Co. Ltd. | Technology Hardware, Storage & Peripherals | 1,200 | | 22,372 |
| | ASMedia Technology, Inc. | Semiconductors & Semiconductor Equipment | 160 | | 8,165 |
| | ASPEED Technology, Inc. | Semiconductors & Semiconductor Equipment | 106 | | 14,420 |
| | Asustek Computer, Inc. | Technology Hardware, Storage & Peripherals | 2,700 | | 47,181 |
| | AUO Corp., Class H | Electronic Equipment, Instruments & Components | 24,000 | | 12,930 |
| | Capital Securities Corp., Class A | Capital Markets | 6,000 | | 4,105 |
| | Catcher Technology Co. Ltd. | Technology Hardware, Storage & Peripherals | 2,280 | | 17,039 |
| | Cathay Financial Holding Co. Ltd., Class A | Insurance | 36,000 | | 75,648 |
| | Chailease Holding Co. Ltd., Class A | Financial Services | 5,516 | | 28,498 |
| | Chang Hwa Commercial Bank Ltd., Class A | Banks | 24,768 | | 14,009 |
| | Cheng Shin Rubber Industry Co. Ltd., Class A | Automobile Components | 7,200 | | 11,785 |
| | Chicony Electronics Co. Ltd. | Technology Hardware, Storage & Peripherals | 2,260 | | 11,712 |
| | China Airlines Ltd., Class A | Passenger Airlines | 12,000 | | 8,153 |
| | China Motor Corp., Class A | Automobiles | 800 | | 1,866 |
| | China Steel Corp., Class A | Metals & Mining | 42,000 | | 30,724 |
| | Chunghwa Telecom Co. Ltd. | Diversified Telecommunication Services | 14,500 | | 57,502 |
| | Compal Electronics, Inc., Class H | Technology Hardware, Storage & Peripherals | 18,000 | | 18,940 |
| | CTBC Financial Holding Co. Ltd., Class A | Banks | 60,000 | | 65,220 |
| | Delta Electronics, Inc., Class A | Electronic Equipment, Instruments & Components | 8,400 | | 100,997 |
| | E Ink Holdings, Inc. | Electronic Equipment, Instruments & Components | 3,000 | | 27,776 |
| | E.Sun Financial Holding Co. Ltd., Class A | Banks | 55,081 | | 48,821 |
| | Eclat Textile Co. Ltd., Class A | Textiles, Apparel & Luxury Goods | 780 | | 13,433 |
| | Elite Material Co. Ltd. | Electronic Equipment, Instruments & Components | 1,050 | | 14,831 |
| | eMemory Technology, Inc. | Semiconductors & Semiconductor Equipment | 252 | | 20,943 |
| | Ennostar, Inc., Class H | Semiconductors & Semiconductor Equipment | 2,520 | | 3,615 |
| | Eternal Materials Co. Ltd., Class H | Chemicals | 3,000 | | 3,237 |
| | Eva Airways Corp., Class H | Passenger Airlines | 12,000 | | 14,220 |
| | Evergreen Marine Corp. Taiwan Ltd. | Marine Transportation | 3,900 | | 24,770 |
| | Far Eastern International Bank | Banks | 6,303 | | 2,768 |
| | Far Eastern New Century Corp. | Industrial Conglomerates | 12,000 | | 14,561 |
| | Far EasTone Telecommunications Co. Ltd. | Wireless Telecommunication Services | 6,000 | | 17,196 |
| | Feng TAY Enterprise Co. Ltd. | Textiles, Apparel & Luxury Goods | 1,980 | | 9,760 |
| | First Financial Holding Co. Ltd. | Banks | 43,260 | | 37,455 |
| a,b | FIT Hon Teng Ltd. | Electronic Equipment, Instruments & Components | 6,000 | | 1,877 |
| | Formosa Chemicals & Fibre Corp. | Chemicals | 13,200 | | 18,123 |
| | Formosa Petrochemical Corp. | Oil, Gas & Consumable Fuels | 5,260 | | 8,759 |
| | Formosa Plastics Corp. | Chemicals | 14,160 | | 23,938 |
| | Formosa Sumco Technology Corp. | Semiconductors & Semiconductor Equipment | 300 | | 1,303 |
| | Formosa Taffeta Co. Ltd. | Textiles, Apparel & Luxury Goods | 6,000 | | 3,972 |
| | Fortune Electric Co. Ltd. | Electrical Equipment | 500 | | 9,938 |
| | Foxconn Technology Co. Ltd. | Electronic Equipment, Instruments & Components | 4,500 | | 9,442 |
| | Fubon Financial Holding Co. Ltd. | Insurance | 31,130 | | 88,925 |
| | Genius Electronic Optical Co. Ltd. | Electronic Equipment, Instruments & Components | 360 | | 5,529 |
| | Giant Manufacturing Co. Ltd. | Leisure Products | 1,200 | | 8,494 |
| | Gigabyte Technology Co. Ltd. | Technology Hardware, Storage & Peripherals | 1,800 | | 14,703 |
| 31 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE Asia ex Japan ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | Taiwan (continued) | | | | |
| | Global Unichip Corp. | Semiconductors & Semiconductor Equipment | 300 | | $ 10,428 |
| | Globalwafers Co. Ltd. | Semiconductors & Semiconductor Equipment | 820 | | 11,790 |
| | Hiwin Technologies Corp. | Machinery | 1,200 | | 8,115 |
| | Hon Hai Precision Industry Co. Ltd. | Electronic Equipment, Instruments & Components | 45,600 | | 270,172 |
| | Hotai Motor Co. Ltd. | Specialty Retail | 1,260 | | 28,229 |
| a | HTC Corp. | Technology Hardware, Storage & Peripherals | 3,000 | | 4,489 |
| | Hua Nan Financial Holdings Co. Ltd., Class C | Banks | 36,360 | | 29,528 |
| | Innolux Corp. | Electronic Equipment, Instruments & Components | 26,400 | | 13,473 |
| | International Games System Co. Ltd. | Entertainment | 600 | | 18,694 |
| | Inventec Corp. | Technology Hardware, Storage & Peripherals | 10,000 | | 13,619 |
| | Jentech Precision Industrial Co. Ltd. | Semiconductors & Semiconductor Equipment | 400 | | 16,368 |
| | KGI Financial Holding Co. Ltd., Class A | Insurance | 60,000 | | 31,283 |
| | King Yuan Electronics Co. Ltd. | Semiconductors & Semiconductor Equipment | 4,000 | | 14,220 |
| | Largan Precision Co. Ltd. | Electronic Equipment, Instruments & Components | 400 | | 32,105 |
| | Lite-On Technology Corp. | Technology Hardware, Storage & Peripherals | 7,400 | | 23,266 |
| | Lotes Co. Ltd. | Electronic Equipment, Instruments & Components | 300 | | 13,129 |
| | MediaTek, Inc. | Semiconductors & Semiconductor Equipment | 5,640 | | 209,407 |
| | Mega Financial Holding Co. Ltd. | Banks | 43,260 | | 53,722 |
| | Micro-Star International Co. Ltd. | Technology Hardware, Storage & Peripherals | 2,400 | | 13,196 |
| | momo.com, Inc. | Broadline Retail | 257 | | 3,200 |
| | Nan Ya Plastics Corp. | Chemicals | 20,260 | | 29,449 |
| | Nan Ya Printed Circuit Board Corp. | Electronic Equipment, Instruments & Components | 780 | | 3,512 |
| a | Nanya Technology Corp. | Semiconductors & Semiconductor Equipment | 4,750 | | 7,107 |
| | Nien Made Enterprise Co. Ltd. | Household Durables | 600 | | 9,669 |
| | Novatek Microelectronics Corp. | Semiconductors & Semiconductor Equipment | 2,160 | | 35,356 |
| a | Oneness Biotech Co. Ltd. | Pharmaceuticals | 1,461 | | 6,602 |
| | Pegatron Corp. | Technology Hardware, Storage & Peripherals | 7,800 | | 25,387 |
| a | PharmaEssentia Corp. | Biotechnology | 840 | | 16,881 |
| | Pou Chen Corp. | Textiles, Apparel & Luxury Goods | 6,000 | | 6,854 |
| a | Powerchip Semiconductor Manufacturing Corp. | Semiconductors & Semiconductor Equipment | 12,000 | | 8,190 |
| | Powertech Technology, Inc. | Semiconductors & Semiconductor Equipment | 3,000 | | 12,987 |
| | President Chain Store Corp. | Consumer Staples Distribution & Retail | 2,220 | | 20,694 |
| | Quanta Computer, Inc. | Technology Hardware, Storage & Peripherals | 10,120 | | 84,423 |
| | Realtek Semiconductor Corp. | Semiconductors & Semiconductor Equipment | 1,800 | | 26,790 |
| | Ruentex Development Co. Ltd. | Real Estate Management & Development | 6,000 | | 9,281 |
| | Shanghai Commercial & Savings Bank Ltd. | Banks | 12,000 | | 14,637 |
| | Shihlin Electric & Engineering Corp. | Electrical Equipment | 1,000 | | 6,983 |
| a | Shin Kong Financial Holding Co. Ltd. | Insurance | 58,284 | | 22,193 |
| | Sino-American Silicon Products, Inc. | Semiconductors & Semiconductor Equipment | 1,920 | | 10,739 |
| | SinoPac Financial Holdings Co. Ltd. | Banks | 43,050 | | 32,988 |
| | Synnex Technology International Corp. | Electronic Equipment, Instruments & Components | 5,200 | | 11,913 |
| | Taishin Financial Holding Co. Ltd. | Banks | 49,920 | | 29,025 |
| | Taiwan Business Bank | Banks | 20,070 | | 10,115 |
| | Taiwan Cooperative Financial Holding Co. Ltd. | Banks | 43,470 | | 35,577 |
| | Taiwan Fertilizer Co. Ltd. | Chemicals | 3,000 | | 5,498 |
| a | Taiwan Glass Industry Corp. | Building Products | 6,000 | | 3,545 |
| | Taiwan High Speed Rail Corp. | Transportation Infrastructure | 6,000 | | 5,612 |
| | Taiwan Mobile Co. Ltd. | Wireless Telecommunication Services | 6,000 | | 21,803 |
| | Taiwan Secom Co. Ltd. | Commercial Services & Supplies | 1,020 | | 4,448 |
| | Taiwan Semiconductor Manufacturing Co. Ltd. | Semiconductors & Semiconductor Equipment | 91,280 | | 2,760,336 |
| a | Tatung Co. Ltd. | Electrical Equipment | 9,000 | | 13,978 |
| | TCC Group Holdings Co. Ltd. | Construction Materials | 24,000 | | 25,633 |
| | Teco Electric & Machinery Co. Ltd. | Electrical Equipment | 6,000 | | 9,252 |
| | Transcend Information, Inc. | Technology Hardware, Storage & Peripherals | 1,020 | | 3,320 |
| | U-Ming Marine Transport Corp. | Marine Transportation | 1,800 | | 3,174 |
| | Unimicron Technology Corp. | Electronic Equipment, Instruments & Components | 4,920 | | 22,387 |
| | Uni-President Enterprises Corp. | Food Products | 18,000 | | 49,598 |
| franklintempleton.com | Semi-Annual Report | 32 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE Asia ex Japan ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | Taiwan (continued) | | | | |
| | United Microelectronics Corp. | Semiconductors & Semiconductor Equipment | 45,000 | | $ 76,501 |
| | Vanguard International Semiconductor Corp. | Semiconductors & Semiconductor Equipment | 3,600 | | 11,774 |
| | Voltronic Power Technology Corp. | Electrical Equipment | 250 | | 15,997 |
| | Walsin Lihwa Corp. | Electrical Equipment | 12,000 | | 13,272 |
| | Walsin Technology Corp. | Electronic Equipment, Instruments & Components | 1,200 | | 4,095 |
| | Wan Hai Lines Ltd. | Marine Transportation | 3,600 | | 11,148 |
| a | Win Semiconductors Corp. | Semiconductors & Semiconductor Equipment | 1,500 | | 6,470 |
| a | Winbond Electronics Corp. | Semiconductors & Semiconductor Equipment | 12,734 | | 8,591 |
| | Wistron Corp. | Technology Hardware, Storage & Peripherals | 10,800 | | 34,468 |
| | Wiwynn Corp. | Technology Hardware, Storage & Peripherals | 360 | | 19,509 |
| | WPG Holdings Ltd. | Electronic Equipment, Instruments & Components | 6,000 | | 14,220 |
| | Yageo Corp. | Electronic Equipment, Instruments & Components | 1,792 | | 35,278 |
| | Yang Ming Marine Transport Corp. | Marine Transportation | 6,600 | | 14,390 |
| | Yuanta Financial Holding Co. Ltd. | Financial Services | 48,960 | | 49,043 |
| | Yulon Motor Co. Ltd. | Automobiles | 2,400 | | 4,550 |
| | Zhen Ding Technology Holding Ltd. | Electronic Equipment, Instruments & Components | 2,260 | | 8,105 |
| | | | | | 5,710,745 |
| | Thailand 2.2% | | | | |
| | Advanced Info Service PCL, NVDR | Wireless Telecommunication Services | 4,200 | | 33,937 |
| | Airports of Thailand PCL, Class H, NVDR | Transportation Infrastructure | 16,200 | | 32,221 |
| | Asset World Corp. PCL, Class H, NVDR | Hotels, Restaurants & Leisure | 27,600 | | 3,242 |
| | B Grimm Power PCL, Class A, NVDR | Independent Power Producers & Energy Traders | 3,000 | | 2,238 |
| | Bangkok Bank PCL, Class A, fgn. | Banks | 1,200 | | 5,613 |
| | Bangkok Bank PCL, Class A, NVDR | Banks | 1,200 | | 5,613 |
| | Bangkok Dusit Medical Services PCL, Class A, NVDR | Health Care Providers & Services | 41,400 | | 38,598 |
| | Bangkok Expressway & Metro PCL, Class H, NVDR | Transportation Infrastructure | 31,200 | | 7,902 |
| | Banpu PCL, Class A, NVDR | Oil, Gas & Consumable Fuels | 34,800 | | 7,625 |
| | Berli Jucker PCL, Class A, NVDR | Consumer Staples Distribution & Retail | 4,200 | | 3,224 |
| a | BTS Group Holdings PCL, Class A, NVDR | Ground Transportation | 33,000 | | 4,615 |
| | Bumrungrad Hospital PCL, NVDR | Health Care Providers & Services | 2,400 | | 20,064 |
| | Carabao Group PCL, Class A, NVDR | Beverages | 1,200 | | 2,946 |
| | Central Pattana PCL, Class A, NVDR | Real Estate Management & Development | 12,000 | | 24,986 |
| | Central Retail Corp. PCL, Class A, NVDR | Broadline Retail | 10,800 | | 10,405 |
| | Charoen Pokphand Foods PCL, Class A, NVDR | Food Products | 15,600 | | 11,636 |
| | CP ALL PCL, Class B, NVDR | Consumer Staples Distribution & Retail | 22,800 | | 46,411 |
| | CP Axtra PCL, NVDR | Consumer Staples Distribution & Retail | 6,000 | | 6,060 |
| | Delta Electronics Thailand PCL, Class A, NVDR | Electronic Equipment, Instruments & Components | 10,800 | | 35,913 |
| | Digital Telecommunications Infrastructure Fund, Class A, UNIT | Telecommunications | 20,400 | | 6,055 |
| | Electricity Generating PCL, Class A, NVDR | Independent Power Producers & Energy Traders | 600 | | 2,303 |
| | Energy Absolute PCL, Class A, NVDR | Independent Power Producers & Energy Traders | 6,600 | | 1,836 |
| | Global Power Synergy PCL, NVDR | Independent Power Producers & Energy Traders | 2,400 | | 3,580 |
| | Gulf Energy Development PCL, NVDR | Independent Power Producers & Energy Traders | 11,400 | | 20,194 |
| | Home Product Center PCL, NVDR | Specialty Retail | 21,600 | | 6,981 |
| | Indorama Ventures PCL, NVDR | Chemicals | 6,600 | | 5,066 |
| | Intouch Holdings PCL, NVDR | Wireless Telecommunication Services | 3,000 | | 8,624 |
| | IRPC PCL, NVDR | Oil, Gas & Consumable Fuels | 39,600 | | 2,154 |
| | Kasikornbank PCL, fgn. | Banks | 4,800 | | 35,801 |
| | Kasikornbank PCL, NVDR | Banks | 1,600 | | 7,459 |
| | Krung Thai Bank PCL, NVDR | Banks | 23,400 | | 14,981 |
| | Krungthai Card PCL, NVDR | Consumer Finance | 4,200 | | 6,363 |
| | Land & Houses PCL, NVDR | Real Estate Management & Development | 31,800 | | 6,325 |
| | Minor International PCL, NVDR | Hotels, Restaurants & Leisure | 15,600 | | 13,696 |
| | Muangthai Capital PCL, NVDR | Consumer Finance | 2,400 | | 3,692 |
| | Osotspa PCL, NVDR | Beverages | 5,400 | | 3,877 |
| 33 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE Asia ex Japan ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | Thailand (continued) | | | | |
| | PTT Exploration & Production PCL, NVDR | Oil, Gas & Consumable Fuels | 5,400 | | $ 21,984 |
| | PTT Global Chemical PCL, NVDR | Chemicals | 7,800 | | 7,272 |
| | PTT Oil & Retail Business PCL, NVDR | Specialty Retail | 10,800 | | 5,907 |
| | PTT PCL, NVDR | Oil, Gas & Consumable Fuels | 54,600 | | 57,693 |
| | Ratch Group PCL, NVDR | Independent Power Producers & Energy Traders | 4,200 | | 4,210 |
| | SCB X PCL, NVDR | Banks | 6,600 | | 22,357 |
| | SCG Packaging PCL, NVDR | Containers & Packaging | 4,800 | | 4,326 |
| | Siam Cement PCL, NVDR | Construction Materials | 2,400 | | 17,975 |
| | Siam City Cement PCL, NVDR | Construction Materials | 600 | | 2,974 |
| | Srisawad Corp. PCL, NVDR | Consumer Finance | 2,680 | | 3,602 |
| | Thai Beverage PCL | Beverages | 31,800 | | 13,271 |
| | Thai Life Insurance PCL, NVDR | Insurance | 9,600 | | 3,222 |
| | Thai Oil PCL, NVDR | Oil, Gas & Consumable Fuels | 4,200 | | 6,690 |
| | Thai Union Group PCL, NVDR | Food Products | 10,200 | | 4,628 |
| | TMBThanachart Bank PCL, NVDR | Banks | 168,000 | | 10,285 |
| a | True Corp. PCL, NVDR | Diversified Telecommunication Services | 40,800 | | 14,201 |
| | | | | | 652,833 |
| | United Kingdom 0.2% | | | | |
| | CK Hutchison Holdings Ltd., Class A | Industrial Conglomerates | 10,000 | | 57,548 |
| | United States 0.1% | | | | |
| | Parade Technologies Ltd. | Semiconductors & Semiconductor Equipment | 300 | | 7,214 |
| b | Samsonite International SA | Textiles, Apparel & Luxury Goods | 5,400 | | 14,877 |
| | | | | | 22,091 |
| | Total Common Stocks (Cost $25,215,168) | | | | 30,383,013 |
| | Preferred Stocks 0.6% | | | | |
| | South Korea 0.6% | | | | |
| f | Amorepacific Corp., 2.282%, pfd. | Personal Care Products | 42 | | 1,288 |
| f | Hanwha Corp., 5.205%, pfd. | Industrial Conglomerates | 78 | | 917 |
| f | Hyundai Motor Co., 7.127%, pfd. | Automobiles | 132 | | 17,705 |
| f | Hyundai Motor Co., 7.328%, pfd. | Automobiles | 84 | | 10,913 |
| f | LG Chem Ltd., 1.464%, pfd. | Chemicals | 30 | | 5,563 |
| f | LG Electronics, Inc., 2.711%, pfd. | Household Durables | 66 | | 2,513 |
| f | Samsung Electronics Co. Ltd., 2.13%, pfd. | Technology Hardware, Storage & Peripherals | 3,120 | | 121,441 |
| f | Samsung Fire & Marine Insurance Co. Ltd., 5.831%, pfd. | Insurance | 12 | | 2,519 |
| f | Samsung SDI Co. Ltd., 0.467%, pfd. | Electronic Equipment, Instruments & Components | 6 | | 1,032 |
| | Total Preferred Stocks (Cost $145,990) | | | | 163,891 |
| | Right 0.0% | | | | |
| | Thailand 0.0% | | | | |
| a | BTS Group Holdings PCL | Ground Transportation | 7,333 | | — |
| | Total Rights (Cost $0) | | | | — |
| | Total Investments before Short-Term Investments (Cost $25,361,158) | | | | 30,546,904 |
| franklintempleton.com | Semi-Annual Report | 34 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE Asia ex Japan ETF (continued)
| | | Industry | Shares | | Value |
| | Short-Term Investments 0.0%† | | | | |
| | Money Market Funds 0.0%† | | | | |
| | United States 0.0%† | | | | |
| g,h | Institutional Fiduciary Trust - Money Market Portfolio, 4.74% | Money Market Funds | 59 | | $ 59 |
| | Total Short-Term Investments (Cost $59) | | | | 59 |
| | Total Investments (Cost $25,361,217) 100.8% | | | | 30,546,963 |
| | Other Assets, less Liabilities (0.8)% | | | | (229,356) |
| | Net Assets 100.0% | | | | $ 30,317,607 |
| †Rounds to less than 0.1% of net assets. |
| aNon-income producing. |
| bSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At September 30, 2024, the value of was $1,686,321, representing 5.6% of net assets. |
| cVariable interest entity (VIE). See Note 6 regarding investments made through a VIE structure. At September 30, 2024, the aggregate value of these securities was $4,670,257, representing 15.4% of net assets. |
| dFair valued using significant unobservable inputs. See Note 8 regarding fair value measurements. |
| eSecurity was purchased pursuant to Regulation S under the Securities Act of 1933, which exempts from registration securities offered and sold outside of the United States. Such a security cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration. At September 30, 2024, the value of was $111,048, representing 0.4% of net assets. |
| fVariable rate security. The rate shown represents the yield at period end. |
| gThe rate shown is the annualized seven-day effective yield at period end. |
| hSee Note 3(c) regarding investments in affiliated management investment companies. |
See Abbreviations on page 207.
| 35 | Semi-Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
Franklin Templeton ETF Trust
Financial Highlights
Franklin FTSE Australia ETF
| | Six Months Ended
September 30, 2024
(unaudited) | Year Ended March 31, |
| | 2024 | 2023 | 2022 | 2021 | 2020 |
| Per share operating performance | | | | | | |
| (for a share outstanding throughout the period) | | | | | | |
| Net asset value, beginning of period | $28.89 | $26.76 | $31.55 | $29.12 | $17.38 | $24.63 |
| Income from investment operationsa: | | | | | | |
| Net investment incomeb | 0.59 | 1.09 | 1.60 | 1.48 | 0.81 | 1.07 |
| Net realized and unrealized gains (losses) | 3.26 | 2.07 | (4.84) | 2.47 | 11.55 | (7.18) |
| Total from investment operations | 3.85 | 3.16 | (3.24) | 3.95 | 12.36 | (6.11) |
| Less distributions from net investment income | (0.34) | (1.03) | (1.55) | (1.52) | (0.62) | (1.14) |
| Net asset value, end of period | $32.40 | $28.89 | $26.76 | $31.55 | $29.12 | $17.38 |
| Total returnc | 13.45% | 12.03% | (9.90)% | 13.93% | 71.72% | (26.23)% |
| Ratios to average net assetsd | | | | | | |
| Total expenses | 0.09% | 0.09% | 0.09% | 0.09% | 0.09% | 0.09% |
| Net investment income | 4.00% | 4.08% | 5.94% | 4.93% | 3.25% | 4.28% |
| Supplemental data | | | | | | |
| Net assets, end of period (000’s) | $59,936 | $27,447 | $29,437 | $29,968 | $23,295 | $7,820 |
| Portfolio turnover ratee | 2.28%f | 7.72%f | 5.88%f | 15.26%f | 6.98%f | 8.16%f |
| aThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of Creation Unit Fund shares in relation to income earned and/or fluctuating fair value of the investments of the Fund. |
| bBased on average daily shares outstanding. |
| cTotal return is not annualized for periods less than one year. Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. |
| dRatios are annualized for periods less than one year. |
| ePortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash ("Cash creations"). |
| fPortfolio turnover rate excluding cash creations was as follows: | 2.28% | 7.72% | 5.88% | 15.26% | 6.98% | 8.16% |
| franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Semi-Annual Report | 36 |
Franklin Templeton ETF Trust
Schedule of Investments, September 30, 2024 (unaudited)
Franklin FTSE Australia ETF
| | | Industry | Shares | | Value |
| | Common Stocks 98.6% | | | | |
| | Australia 95.2% | | | | |
| | AGL Energy Ltd. | Multi-Utilities | 23,273 | | $ 191,003 |
| | ALS Ltd. | Professional Services | 18,796 | | 188,033 |
| | AMP Ltd. | Financial Services | 101,454 | | 93,610 |
| | Ampol Ltd. | Oil, Gas & Consumable Fuels | 9,324 | | 197,484 |
| | Ansell Ltd. | Health Care Equipment & Supplies | 5,698 | | 125,745 |
| | ANZ Group Holdings Ltd. | Banks | 117,512 | | 2,484,851 |
| | APA Group | Gas Utilities | 50,135 | | 269,902 |
| | Aristocrat Leisure Ltd. | Hotels, Restaurants & Leisure | 24,790 | | 1,007,807 |
| | ASX Ltd. | Capital Markets | 7,585 | | 336,406 |
| | Atlas Arteria Ltd. | Transportation Infrastructure | 44,252 | | 150,122 |
| | Aurizon Holdings Ltd. | Ground Transportation | 68,931 | | 168,808 |
| | Bank of Queensland Ltd. | Banks | 25,826 | | 110,726 |
| | Beach Energy Ltd. | Oil, Gas & Consumable Fuels | 69,301 | | 58,414 |
| | Bendigo & Adelaide Bank Ltd. | Banks | 22,126 | | 178,826 |
| | BHP Group Ltd. | Metals & Mining | 196,803 | | 6,275,016 |
| | BlueScope Steel Ltd. | Metals & Mining | 17,279 | | 266,118 |
| | Brambles Ltd. | Commercial Services & Supplies | 54,390 | | 718,060 |
| | CAR Group Ltd. | Interactive Media & Services | 14,356 | | 373,082 |
| | Challenger Ltd. | Financial Services | 20,276 | | 91,432 |
| | Charter Hall Group | Diversified REITs | 18,463 | | 204,555 |
| | Cleanaway Waste Management Ltd. | Commercial Services & Supplies | 87,061 | | 177,572 |
| | Cochlear Ltd. | Health Care Equipment & Supplies | 2,479 | | 485,140 |
| | Coles Group Ltd. | Consumer Staples Distribution & Retail | 50,838 | | 636,956 |
| | Commonwealth Bank of Australia | Banks | 65,416 | | 6,144,318 |
| | Computershare Ltd. | Professional Services | 22,866 | | 400,865 |
| | CSL Ltd. | Biotechnology | 18,833 | | 3,740,362 |
| | Deterra Royalties Ltd. | Metals & Mining | 16,428 | | 46,044 |
| | Dexus | Office REITs | 42,032 | | 221,031 |
| | Domain Holdings Australia Ltd. | Interactive Media & Services | 9,620 | | 21,356 |
| | Domino’s Pizza Enterprises Ltd. | Hotels, Restaurants & Leisure | 2,516 | | 61,877 |
| | Downer EDI Ltd. | Commercial Services & Supplies | 26,270 | | 99,872 |
| | Endeavour Group Ltd. | Consumer Staples Distribution & Retail | 62,974 | | 219,315 |
| | Evolution Mining Ltd. | Metals & Mining | 72,964 | | 234,871 |
| | Flight Centre Travel Group Ltd. | Hotels, Restaurants & Leisure | 7,955 | | 123,345 |
| | Fortescue Ltd. | Metals & Mining | 62,086 | | 890,733 |
| | Goodman Group | Industrial REITs | 72,779 | | 1,867,642 |
| | GPT Group | Diversified REITs | 74,814 | | 258,473 |
| | Harvey Norman Holdings Ltd. | Broadline Retail | 23,310 | | 80,048 |
| | IDP Education Ltd. | Diversified Consumer Services | 10,878 | | 119,991 |
| | IGO Ltd. | Metals & Mining | 24,346 | | 98,976 |
| | Iluka Resources Ltd. | Metals & Mining | 16,650 | | 80,510 |
| | Incitec Pivot Ltd. | Chemicals | 75,739 | | 163,412 |
| | Insignia Financial Ltd. | Capital Markets | 26,122 | | 47,661 |
| | Insurance Australia Group Ltd. | Insurance | 93,240 | | 476,084 |
| | JB Hi-Fi Ltd. | Specialty Retail | 4,255 | | 235,975 |
| | Lendlease Corp. Ltd. | Real Estate Management & Development | 26,862 | | 132,312 |
| a | Liontown Resources Ltd. | Metals & Mining | 60,236 | | 33,640 |
| | Lottery Corp. Ltd. | Hotels, Restaurants & Leisure | 86,802 | | 308,321 |
| a | Lynas Rare Earths Ltd. | Metals & Mining | 36,408 | | 202,570 |
| | Macquarie Group Ltd. | Capital Markets | 13,690 | | 2,206,920 |
| | Magellan Financial Group Ltd. | Capital Markets | 5,291 | | 36,780 |
| | Medibank Pvt Ltd. | Insurance | 107,522 | | 272,266 |
| | Metcash Ltd. | Consumer Staples Distribution & Retail | 42,735 | | 106,138 |
| | Mineral Resources Ltd. | Metals & Mining | 6,734 | | 243,116 |
| | Mirvac Group | Diversified REITs | 153,957 | | 229,637 |
| | National Australia Bank Ltd. | Banks | 121,323 | | 3,143,669 |
| | New Hope Corp. Ltd. | Oil, Gas & Consumable Fuels | 19,869 | | 71,815 |
| 37 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE Australia ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | Australia (continued) | | | | |
| a | NEXTDC Ltd. | IT Services | 23,421 | | $ 284,346 |
| | Northern Star Resources Ltd. | Metals & Mining | 43,882 | | 486,177 |
| | Nufarm Ltd. | Chemicals | 15,059 | | 41,475 |
| | Orica Ltd. | Chemicals | 18,981 | | 244,268 |
| | Origin Energy Ltd. | Electric Utilities | 67,266 | | 467,125 |
| | Orora Ltd. | Containers & Packaging | 52,540 | | 99,507 |
| | Perpetual Ltd. | Capital Markets | 4,440 | | 57,354 |
| a,b | Pilbara Minerals Ltd. | Metals & Mining | 112,665 | | 255,588 |
| | Pro Medicus Ltd. | Health Care Technology | 1,998 | | 247,075 |
| a | Qantas Airways Ltd. | Passenger Airlines | 31,191 | | 160,560 |
| | QBE Insurance Group Ltd. | Insurance | 58,608 | | 672,505 |
| | Qube Holdings Ltd. | Transportation Infrastructure | 68,487 | | 187,676 |
| | Ramsay Health Care Ltd. | Health Care Providers & Services | 6,845 | | 197,642 |
| | REA Group Ltd. | Interactive Media & Services | 1,961 | | 273,449 |
| | Reece Ltd. | Trading Companies & Distributors | 8,325 | | 164,601 |
| | Region RE Ltd. | Retail REITs | 45,547 | | 72,360 |
| | Rio Tinto Ltd. | Metals & Mining | 14,504 | | 1,299,326 |
| | Santos Ltd. | Oil, Gas & Consumable Fuels | 126,762 | | 617,347 |
| | Scentre Group | Retail REITs | 203,204 | | 514,551 |
| | SEEK Ltd. | Interactive Media & Services | 13,764 | | 237,287 |
| | Seven Group Holdings Ltd. | Trading Companies & Distributors | 7,733 | | 230,041 |
| | Sonic Healthcare Ltd. | Health Care Providers & Services | 18,722 | | 353,674 |
| | South32 Ltd. | Metals & Mining | 176,934 | | 462,760 |
| a | Star Entertainment Group Ltd. | Hotels, Restaurants & Leisure | 102,157 | | 20,907 |
| | Steadfast Group Ltd. | Insurance | 42,957 | | 168,974 |
| | Stockland | Diversified REITs | 93,166 | | 338,682 |
| | Suncorp Group Ltd. | Insurance | 49,691 | | 623,619 |
| | Tabcorp Holdings Ltd. | Hotels, Restaurants & Leisure | 87,727 | | 30,735 |
| | Telstra Group Ltd. | Diversified Telecommunication Services | 157,990 | | 425,270 |
| | TPG Telecom Ltd. | Diversified Telecommunication Services | 14,282 | | 48,748 |
| | Transurban Group | Transportation Infrastructure | 120,694 | | 1,099,394 |
| | Treasury Wine Estates Ltd. | Beverages | 31,709 | | 263,977 |
| | Vicinity Ltd. | Retail REITs | 147,482 | | 226,118 |
| | Washington H Soul Pattinson & Co. Ltd. | Financial Services | 9,546 | | 230,133 |
| | Wesfarmers Ltd. | Broadline Retail | 44,252 | | 2,162,189 |
| | Westpac Banking Corp. | Banks | 135,531 | | 2,982,462 |
| | Whitehaven Coal Ltd. | Oil, Gas & Consumable Fuels | 27,306 | | 136,772 |
| | WiseTech Global Ltd. | Software | 6,327 | | 602,176 |
| | Woodside Energy Group Ltd. | Oil, Gas & Consumable Fuels | 73,889 | | 1,291,765 |
| | Woolworths Group Ltd. | Consumer Staples Distribution & Retail | 47,693 | | 1,101,798 |
| | Worley Ltd. | Construction & Engineering | 18,685 | | 192,237 |
| | Yancoal Australia Ltd. | Oil, Gas & Consumable Fuels | 12,802 | | 54,443 |
| | | | | | 57,036,706 |
| | Ireland 1.1% | | | | |
| a | James Hardie Industries PLC, CDI | Construction Materials | 16,946 | | 675,164 |
| | New Zealand 1.0% | | | | |
| a | Xero Ltd. | Software | 5,883 | | 609,914 |
| | United Kingdom 1.1% | | | | |
| | Amcor PLC, CDI | Containers & Packaging | 56,092 | | 635,852 |
| franklintempleton.com | Semi-Annual Report | 38 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE Australia ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | United States 0.2% | | | | |
| | GQG Partners, Inc., CDI | Capital Markets | 24,975 | | $ 48,687 |
| | Sims Ltd. | Metals & Mining | 6,179 | | 54,270 |
| | | | | | 102,957 |
| | Total Common Stocks (Cost $52,249,218) | | | | 59,060,593 |
| | Total Investments before Short-Term Investments (Cost $52,249,218) | | | | 59,060,593 |
| | Short-Term Investments 0.2% | | | | |
| | Investments from Cash Collateral Received for
Loaned Securities 0.2% | | | | |
| | United States 0.2% | | | | |
| c,d | Institutional Fiduciary Trust - Money Market Portfolio, 4.74% | Money Market Funds | 134,400 | | 134,400 |
| | Money Market Funds 0.0%† | | | | |
| | United States 0.0%† | | | | |
| c,d | Institutional Fiduciary Trust - Money Market Portfolio, 4.74% | Money Market Funds | 3,127 | | 3,127 |
| | Total Short-Term Investments (Cost $137,527) | | | | 137,527 |
| | Total Investments (Cost $52,386,745) 98.8% | | | | 59,198,120 |
| | Other Assets, less Liabilities 1.2% | | | | 737,482 |
| | Net Assets 100.0% | | | | $ 59,935,602 |
| †Rounds to less than 0.1% of net assets. |
| aNon-income producing. |
| bA portion or all of the security is on loan at September 30, 2024. See Note 1(d). |
| cThe rate shown is the annualized seven-day effective yield at period end. |
| dSee Note 3(c) regarding investments in affiliated management investment companies. |
At September 30, 2024, the Fund had the following futures contracts outstanding. See Note 1(c).
Futures Contracts
| Description | Type | Number of
Contracts | Notional
Amount* | Expiration
Date | Value/Unrealized
Appreciation
(Depreciation) |
| Index Contracts | | | | | |
| SPI 200 Index | Long | 6 | $ 864,343 | 12/19/24 | $ 12,270 |
See Note 7 regarding other derivative information.
See Abbreviations on page 207.
| 39 | Semi-Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
Franklin Templeton ETF Trust
Financial Highlights
Franklin FTSE Brazil ETF
| | Six Months Ended
September 30, 2024
(unaudited) | Year Ended March 31, |
| | 2024 | 2023 | 2022 | 2021 | 2020 |
| Per share operating performance | | | | | | |
| (for a share outstanding throughout the period) | | | | | | |
| Net asset value, beginning of period | $19.56 | $16.81 | $23.56 | $20.70 | $14.46 | $25.72 |
| Income from investment operationsa: | | | | | | |
| Net investment incomeb | 0.68 | 1.46 | 2.06 | 1.84 | 0.46 | 1.07 |
| Net realized and unrealized gains (losses) | (1.60) | 3.14 | (6.74) | 2.55 | 6.31 | (11.33) |
| Total from investment operations | (0.92) | 4.60 | (4.68) | 4.39 | 6.77 | (10.26) |
| Less distributions from net investment income | (0.52) | (1.85) | (2.07) | (1.53) | (0.53) | (1.00) |
| Net asset value, end of period | $18.12 | $19.56 | $16.81 | $23.56 | $20.70 | $14.46 |
| Total returnc | (4.46)% | 27.62% | (19.57)% | 23.03% | 46.83% | (41.69)% |
| Ratios to average net assetsd | | | | | | |
| Total expenses | 0.19% | 0.19% | 0.19% | 0.19% | 0.19% | 0.23% |
| Net investment income | 7.49% | 7.72% | 10.93% | 8.87% | 2.43% | 4.26% |
| Supplemental data | | | | | | |
| Net assets, end of period (000’s) | $164,862 | $162,382 | $268,914 | $527,820 | $107,656 | $102,700 |
| Portfolio turnover ratee | 9.32%f | 42.28%f | 52.70%f | 17.71%f | 21.01%f | 36.07%f |
| aThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of Creation Unit Fund shares in relation to income earned and/or fluctuating fair value of the investments of the Fund. |
| bBased on average daily shares outstanding. |
| cTotal return is not annualized for periods less than one year. Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. |
| dRatios are annualized for periods less than one year. |
| ePortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash ("Cash creations"). |
| fPortfolio turnover rate excluding cash creations was as follows: | 3.84% | 7.62% | 13.82% | 14.95% | 9.31% | 17.47% |
| franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Semi-Annual Report | 40 |
Franklin Templeton ETF Trust
Schedule of Investments, September 30, 2024 (unaudited)
Franklin FTSE Brazil ETF
| | | Industry | Shares | | Value |
| | Common Stocks 70.2% | | | | |
| | Brazil 68.5% | | | | |
| | Allos SA | Real Estate Management & Development | 191,100 | | $ 766,744 |
| | Alupar Investimento SA, UNIT | Electric Utilities | 47,180 | | 264,672 |
| | Ambev SA | Beverages | 1,829,100 | | 4,393,226 |
| a | Atacadao SA | Consumer Staples Distribution & Retail | 227,500 | | 386,422 |
| | Auren Energia SA | Independent Power Producers & Energy Traders | 145,643 | | 279,743 |
| | B3 SA - Brasil Bolsa Balcao | Capital Markets | 2,329,600 | | 4,581,515 |
| | Banco Bradesco SA | Banks | 627,900 | | 1,509,275 |
| | Banco BTG Pactual SA | Capital Markets | 491,400 | | 3,002,108 |
| | Banco do Brasil SA | Banks | 718,900 | | 3,588,031 |
| | Banco Santander Brasil SA | Banks | 154,700 | | 806,481 |
| | BB Seguridade Participacoes SA | Insurance | 282,100 | | 1,838,949 |
| a | BRF SA | Food Products | 273,000 | | 1,185,583 |
| | Caixa Seguridade Participacoes SA | Insurance | 191,100 | | 510,578 |
| | CCR SA | Transportation Infrastructure | 464,100 | | 1,031,182 |
| | Centrais Eletricas Brasileiras SA | Electric Utilities | 536,900 | | 3,879,506 |
| | Cia de Saneamento Basico do Estado de Sao Paulo SABESP | Water Utilities | 182,000 | | 3,021,191 |
| | Cia Energetica de Minas Gerais | Electric Utilities | 23,360 | | 62,542 |
| | Cia Paranaense de Energia - Copel | Electric Utilities | 327,600 | | 552,838 |
| | Cia Siderurgica Nacional SA | Metals & Mining | 254,800 | | 603,102 |
| | Cosan SA | Oil, Gas & Consumable Fuels | 500,500 | | 1,202,126 |
| | CPFL Energia SA | Electric Utilities | 81,900 | | 510,277 |
| | CSN Mineracao SA | Metals & Mining | 218,400 | | 276,720 |
| a | Embraer SA | Aerospace & Defense | 309,400 | | 2,725,388 |
| | Energisa SA | Electric Utilities | 136,580 | | 1,123,328 |
| a | Eneva SA | Independent Power Producers & Energy Traders | 163,800 | | 420,193 |
| | Engie Brasil Energia SA | Independent Power Producers & Energy Traders | 73,400 | | 572,153 |
| | Equatorial Energia SA | Electric Utilities | 385,078 | | 2,298,108 |
| a | Equatorial Energia SA | Electric Utilities | 25,927 | | 154,920 |
| b | GPS Participacoes e Empreendimentos SA | Commercial Services & Supplies | 182,000 | | 622,953 |
| | Grupo Mateus SA | Consumer Staples Distribution & Retail | 163,800 | | 222,880 |
| a,b | Hapvida Participacoes e Investimentos SA | Health Care Providers & Services | 1,992,900 | | 1,463,807 |
| | Hypera SA | Pharmaceuticals | 163,800 | | 788,952 |
| | Intelbras SA Industria de Telecomunicacao Eletronica Brasileira | Communications Equipment | 27,300 | | 100,762 |
| | Itau Unibanco Holding SA | Banks | 191,100 | | 1,102,918 |
| | Klabin SA | Containers & Packaging | 345,880 | | 1,326,790 |
| | Localiza Rent a Car SA | Ground Transportation | 418,627 | | 3,151,733 |
| | Lojas Renner SA | Specialty Retail | 400,430 | | 1,327,953 |
| | M Dias Branco SA | Food Products | 54,600 | | 255,464 |
| a | Magazine Luiza SA | Broadline Retail | 154,767 | | 275,669 |
| a | Marfrig Global Foods SA | Food Products | 145,600 | | 364,682 |
| | Multiplan Empreendimentos Imobiliarios SA | Real Estate Management & Development | 127,400 | | 600,061 |
| | Natura & Co. Holding SA | Personal Care Products | 400,416 | | 1,033,061 |
| | Neoenergia SA | Electric Utilities | 91,000 | | 327,518 |
| | Petroleo Brasileiro SA | Oil, Gas & Consumable Fuels | 1,556,100 | | 11,221,133 |
| | Porto Seguro SA | Insurance | 72,800 | | 487,401 |
| | PRIO SA | Oil, Gas & Consumable Fuels | 282,100 | | 2,244,554 |
| | Raia Drogasil SA | Consumer Staples Distribution & Retail | 464,144 | | 2,172,505 |
| b | Rede D’Or Sao Luiz SA | Health Care Providers & Services | 327,600 | | 1,860,639 |
| | Rumo SA | Ground Transportation | 527,800 | | 1,938,375 |
| | Santos Brasil Participacoes SA | Transportation Infrastructure | 300,300 | | 813,917 |
| | Sao Martinho SA | Food Products | 63,700 | | 306,581 |
| a | Sendas Distribuidora SA | Consumer Staples Distribution & Retail | 564,200 | | 773,913 |
| | SLC Agricola SA | Food Products | 81,980 | | 273,979 |
| | Smartfit Escola de Ginastica e Danca SA | Hotels, Restaurants & Leisure | 45,500 | | 179,133 |
| | Suzano SA | Paper & Forest Products | 291,200 | | 2,911,037 |
| 41 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE Brazil ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | Brazil (continued) | | | | |
| | Telefonica Brasil SA | Diversified Telecommunication Services | 182,000 | | $ 1,865,518 |
| | TIM SA | Wireless Telecommunication Services | 336,700 | | 1,158,028 |
| | TOTVS SA | Software | 182,000 | | 954,482 |
| | Transmissora Alianca de Energia Eletrica SA | Electric Utilities | 91,000 | | 572,155 |
| | Ultrapar Participacoes SA | Oil, Gas & Consumable Fuels | 345,800 | | 1,346,803 |
| | Usinas Siderurgicas de Minas Gerais SA Usiminas | Metals & Mining | 72,800 | | 80,342 |
| | Vale SA | Metals & Mining | 1,624,430 | | 18,944,425 |
| | Vamos Locacao de Caminhoes Maquinas e Equipamentos SA | Ground Transportation | 154,700 | | 187,772 |
| | Vibra Energia SA | Specialty Retail | 464,100 | | 1,994,186 |
| | WEG SA | Electrical Equipment | 618,800 | | 6,180,273 |
| | | | | | 112,979,255 |
| | United States 1.7% | | | | |
| | JBS SA | Food Products | 473,200 | | 2,748,415 |
| | Total Common Stocks (Cost $102,248,495) | | | | 115,727,670 |
| | Preferred Stocks 28.2% | | | | |
| | Brazil 28.2% | | | | |
| a | Alpargatas SA, pfd. | Textiles, Apparel & Luxury Goods | 91,000 | | 116,135 |
| c | Banco Bradesco SA, 7.585%, pfd. | Banks | 2,165,800 | | 5,846,204 |
| c | Bradespar SA, 13.808%, pfd. | Metals & Mining | 109,200 | | 405,454 |
| a | Braskem SA, Class A, pfd. | Chemicals | 81,900 | | 299,730 |
| c | Centrais Eletricas Brasileiras SA, 4.171%, pfd. | Electric Utilities | 109,200 | | 876,480 |
| c | Cia Energetica de Minas Gerais, 12.798%, pfd. | Electric Utilities | 691,640 | | 1,447,849 |
| c | Cia Paranaense de Energia - Copel, Class B, 3.238%, pfd. | Electric Utilities | 436,800 | | 817,326 |
| c | CTEEP-Cia de Transmissao de Energia Eletrica Paulista, 7.708%, pfd. | Electric Utilities | 118,300 | | 527,873 |
| c | Gerdau SA, 4.581%, pfd. | Metals & Mining | 536,900 | | 1,883,064 |
| c | Itau Unibanco Holding SA, 5.998%, pfd. | Banks | 2,029,300 | | 13,455,878 |
| c | Itausa SA, 6.061%, pfd. | Banks | 2,275,067 | | 4,624,663 |
| c | Metalurgica Gerdau SA, 11.447%, pfd. | Metals & Mining | 282,100 | | 565,671 |
| c | Petroleo Brasileiro SA, 12.966%, pfd. | Oil, Gas & Consumable Fuels | 2,293,200 | | 15,163,637 |
| c | Unipar Carbocloro SA, 5.938%, pfd. | Chemicals | 19,924 | | 170,600 |
| c | Usinas Siderurgicas de Minas Gerais SA Usiminas, 4.535%, pfd. | Metals & Mining | 200,200 | | 229,397 |
| | Total Preferred Stocks (Cost $38,869,221) | | | | 46,429,961 |
| | Right 0.0%† | | | | |
| | Brazil 0.0%† | | | | |
| a | Diagnosticos da America SA | Health Care Providers & Services | 100,206 | | 368 |
| | Total Rights (Cost $0) | | | | 368 |
| | Total Investments before Short-Term Investments (Cost $141,117,716) | | | | 162,157,999 |
| franklintempleton.com | Semi-Annual Report | 42 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE Brazil ETF (continued)
| | | Industry | Shares | | Value |
| | Short-Term Investments 0.1% | | | | |
| | Money Market Funds 0.1% | | | | |
| | United States 0.1% | | | | |
| d,e | Institutional Fiduciary Trust - Money Market Portfolio, 4.74% | Money Market Funds | 221,176 | | $ 221,176 |
| | Total Short-Term Investments (Cost $221,176) | | | | 221,176 |
| | Total Investments (Cost $141,338,892) 98.5% | | | | 162,379,175 |
| | Other Assets, less Liabilities 1.5% | | | | 2,483,119 |
| | Net Assets 100.0% | | | | $ 164,862,294 |
| †Rounds to less than 0.1% of net assets. |
| aNon-income producing. |
| bSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At September 30, 2024, the value of was $3,947,399, representing 2.4% of net assets. |
| cVariable rate security. The rate shown represents the yield at period end. |
| dThe rate shown is the annualized seven-day effective yield at period end. |
| eSee Note 3(c) regarding investments in affiliated management investment companies. |
At September 30, 2024, the Fund had the following futures contracts outstanding. See Note 1(c).
Futures Contracts
| Description | Type | Number of
Contracts | Notional
Amount* | Expiration
Date | Value/Unrealized
Appreciation
(Depreciation) |
| Equity Contracts | | | | | |
| Bovespa Index | Long | 115 | $ 2,799,738 | 10/16/24 | $ (60,262) |
See Note 7 regarding other derivative information.
See Abbreviations on page 207.
| 43 | Semi-Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
Franklin Templeton ETF Trust
Financial Highlights
Franklin FTSE Canada ETF
| | Six Months Ended
September 30, 2024
(unaudited) | Year Ended March 31, |
| | 2024 | 2023 | 2022 | 2021 | 2020 |
| Per share operating performance | | | | | | |
| (for a share outstanding throughout the period) | | | | | | |
| Net asset value, beginning of period | $34.73 | $30.76 | $36.07 | $30.20 | $19.50 | $24.13 |
| Income from investment operationsa: | | | | | | |
| Net investment incomeb | 0.46 | 0.90 | 0.92 | 0.80 | 0.75 | 0.69 |
| Net realized and unrealized gains (losses) | 2.83 | 3.90 | (5.58) | 5.77 | 10.63 | (4.72) |
| Total from investment operations | 3.29 | 4.80 | (4.66) | 6.57 | 11.38 | (4.03) |
| Less distributions from net investment income | (0.36) | (0.83) | (0.65) | (0.70) | (0.68) | (0.60) |
| Net asset value, end of period | $37.66 | $34.73 | $30.76 | $36.07 | $30.20 | $19.50 |
| Total returnc | 9.64% | 15.86% | (12.82)% | 21.95% | 59.10% | (17.25)% |
| Ratios to average net assetsd | | | | | | |
| Total expenses | 0.09% | 0.09% | 0.09% | 0.09% | 0.09% | 0.09% |
| Net investment income | 2.63% | 2.84% | 3.00% | 2.37% | 2.88% | 2.73% |
| Supplemental data | | | | | | |
| Net assets, end of period (000’s) | $412,387 | $409,827 | $279,927 | $43,289 | $24,160 | $4,876 |
| Portfolio turnover ratee | 1.88%f | 4.77%f | 5.27%f | 5.63%f | 3.14%f | 4.57%f |
| aThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of Creation Unit Fund shares in relation to income earned and/or fluctuating fair value of the investments of the Fund. |
| bBased on average daily shares outstanding. |
| cTotal return is not annualized for periods less than one year. Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. |
| dRatios are annualized for periods less than one year. |
| ePortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash ("Cash creations"). |
| fPortfolio turnover rate excluding cash creations was as follows: | 1.88% | 4.77% | 5.27% | 5.63% | 3.14% | 4.57% |
| franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Semi-Annual Report | 44 |
Franklin Templeton ETF Trust
Schedule of Investments, September 30, 2024 (unaudited)
Franklin FTSE Canada ETF
| | | Industry | Shares | | Value |
| | Common Stocks 99.7% | | | | |
| | Canada 97.3% | | | | |
| | Agnico Eagle Mines Ltd. | Metals & Mining | 107,310 | | $ 8,654,224 |
| | Alimentation Couche-Tard, Inc. | Consumer Staples Distribution & Retail | 169,068 | | 9,357,278 |
| | Bank of Montreal | Banks | 156,585 | | 14,145,330 |
| | Bank of Nova Scotia | Banks | 263,676 | | 14,382,682 |
| | Barrick Gold Corp. | Metals & Mining | 379,089 | | 7,548,388 |
| | BCE, Inc. | Diversified Telecommunication Services | 65,481 | | 2,279,075 |
| | Brookfield Asset Management Ltd., Class A | Capital Markets | 88,914 | | 4,208,269 |
| | Brookfield Corp. | Capital Markets | 320,397 | | 17,035,506 |
| | Cameco Corp. | Oil, Gas & Consumable Fuels | 93,732 | | 4,482,790 |
| | Canadian Imperial Bank of Commerce, Class A | Banks | 202,137 | | 12,412,958 |
| | Canadian National Railway Co. | Ground Transportation | 121,107 | | 14,197,206 |
| | Canadian Natural Resources Ltd. | Oil, Gas & Consumable Fuels | 452,892 | | 15,055,613 |
| | Canadian Pacific Kansas City Ltd. | Ground Transportation | 201,261 | | 17,232,214 |
| | Cenovus Energy, Inc. | Oil, Gas & Consumable Fuels | 280,977 | | 4,704,615 |
| a | CGI, Inc., Class A | IT Services | 44,019 | | 5,070,681 |
| | Constellation Software, Inc. | Software | 4,276 | | 13,926,792 |
| | Dollarama, Inc. | Broadline Retail | 59,349 | | 6,086,243 |
| | Enbridge, Inc. | Oil, Gas & Consumable Fuels | 458,148 | | 18,631,815 |
| | Fairfax Financial Holdings Ltd. | Insurance | 4,614 | | 5,832,332 |
| | Fortis, Inc. | Electric Utilities | 106,434 | | 4,841,311 |
| | Franco-Nevada Corp. | Metals & Mining | 41,172 | | 5,119,414 |
| | George Weston Ltd. | Consumer Staples Distribution & Retail | 12,045 | | 2,023,920 |
| | Great-West Lifeco, Inc. | Insurance | 59,349 | | 2,026,112 |
| b | Hydro One Ltd. | Electric Utilities | 68,328 | | 2,371,085 |
| | Imperial Oil Ltd. | Oil, Gas & Consumable Fuels | 35,259 | | 2,483,359 |
| | Intact Financial Corp. | Insurance | 38,325 | | 7,367,410 |
| | Loblaw Cos. Ltd. | Consumer Staples Distribution & Retail | 31,098 | | 4,145,326 |
| | Magna International, Inc. | Automobile Components | 57,816 | | 2,374,353 |
| | Manulife Financial Corp. | Insurance | 389,601 | | 11,526,964 |
| | Metro, Inc., Class A | Consumer Staples Distribution & Retail | 44,457 | | 2,813,301 |
| | National Bank of Canada | Banks | 73,146 | | 6,916,370 |
| | Nutrien Ltd. | Chemicals | 106,653 | | 5,130,744 |
| | Pembina Pipeline Corp. | Oil, Gas & Consumable Fuels | 125,049 | | 5,160,429 |
| | Power Corp. of Canada | Insurance | 117,384 | | 3,706,726 |
| | Restaurant Brands International, Inc. | Hotels, Restaurants & Leisure | 67,233 | | 4,856,781 |
| | Royal Bank of Canada | Banks | 303,972 | | 37,981,031 |
| a | Shopify, Inc., Class A | IT Services | 260,172 | | 20,866,528 |
| | Sun Life Financial, Inc. | Insurance | 125,925 | | 7,312,496 |
| | Suncor Energy, Inc. | Oil, Gas & Consumable Fuels | 277,911 | | 10,269,305 |
| | TC Energy Corp. | Oil, Gas & Consumable Fuels | 223,818 | | 10,651,215 |
| | Teck Resources Ltd., Class B | Metals & Mining | 109,062 | | 5,702,757 |
| | TELUS Corp. | Diversified Telecommunication Services | 106,434 | | 1,787,622 |
| | Thomson Reuters Corp. | Professional Services | 29,784 | | 5,085,955 |
| | Toronto-Dominion Bank | Banks | 380,403 | | 24,080,880 |
| | Tourmaline Oil Corp. | Oil, Gas & Consumable Fuels | 71,832 | | 3,339,700 |
| | Wheaton Precious Metals Corp. | Metals & Mining | 97,674 | | 5,971,999 |
| | | | | | 401,157,104 |
| | United States 2.4% | | | | |
| | Waste Connections, Inc. | Commercial Services & Supplies | 55,407 | | 9,914,980 |
| | Total Common Stocks (Cost $360,708,459) | | | | 411,072,084 |
| 45 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE Canada ETF (continued)
| | | Industry | Shares | | Value |
| | Warrant 0.0% | | | | |
| | Canada 0.0% | | | | |
| a,c | Constellation Software, Inc., 3/31/40 | Software | 3,981 | | $ — |
| | Total Warrants (Cost $0) | | | | — |
| | Total Investments before Short-Term Investments (Cost $360,708,459) | | | | 411,072,084 |
| | Short-Term Investments 0.1% | | | | |
| | Time Deposits 0.1% | | | | |
| | Canada 0.1% | | | | |
| | Royal Bank of Canada, 4.15%, 10/01/2024 | | 656,000 | | 485,584 |
| | Money Market Funds 0.0%† | | | | |
| | United States 0.0%† | | | | |
| d,e | Institutional Fiduciary Trust - Money Market Portfolio, 4.74% | Money Market Funds | 30,941 | | 30,941 |
| | Total Short-Term Investments (Cost $517,425) | | | | 516,525 |
| | Total Investments (Cost $361,225,884) 99.8% | | | | 411,588,609 |
| | Other Assets, less Liabilities 0.2% | | | | 798,720 |
| | Net Assets 100.0% | | | | $ 412,387,329 |
| †Rounds to less than 0.1% of net assets. |
| aNon-income producing. |
| bSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At September 30, 2024, the value of was $2,371,085, representing 0.6% of net assets. |
| cFair valued using significant unobservable inputs. See Note 8 regarding fair value measurements. |
| dThe rate shown is the annualized seven-day effective yield at period end. |
| eSee Note 3(c) regarding investments in affiliated management investment companies. |
At September 30, 2024, the Fund had the following futures contracts outstanding. See Note 1(c).
Futures Contracts
| Description | Type | Number of
Contracts | Notional
Amount* | Expiration
Date | Value/Unrealized
Appreciation
(Depreciation) |
| Index Contracts | | | | | |
| S&P/TSX 60 Index | Long | 5 | $ 1,069,174 | 12/19/24 | $ 11,922 |
See Note 7 regarding other derivative information.
See Abbreviations on page 207.
| franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Semi-Annual Report | 46 |
Franklin Templeton ETF Trust
Financial Highlights
Franklin FTSE China ETF
| | Six Months Ended
September 30, 2024
(unaudited) | Year Ended March 31, |
| | 2024 | 2023 | 2022 | 2021 | 2020 |
| Per share operating performance | | | | | | |
| (for a share outstanding throughout the period) | | | | | | |
| Net asset value, beginning of period | $15.70 | $19.70 | $21.43 | $31.78 | $22.19 | $24.01 |
| Income from investment operationsa: | | | | | | |
| Net investment incomeb | 0.41 | 0.37 | 0.54 | 0.49 | 0.32 | 0.45 |
| Net realized and unrealized gains (losses) | 4.53 | (3.81) | (1.77) | (10.47) | 9.56 | (1.78) |
| Total from investment operations | 4.94 | (3.44) | (1.23) | (9.98) | 9.88 | (1.33) |
| Less distributions from net investment income | (0.12) | (0.56) | (0.50) | (0.37) | (0.29) | (0.49) |
| Net asset value, end of period | $20.52 | $15.70 | $19.70 | $21.43 | $31.78 | $22.19 |
| Total returnc | 31.78% | (17.65)% | (5.68)% | (31.63)% | 44.67% | (5.64)% |
| Ratios to average net assetsd | | | | | | |
| Expenses before waiver and payments by affiliates | 0.19% | 0.19% | 0.19% | 0.19% | 0.19% | 0.19% |
| Expenses net of waiver and payments by affiliates | 0.19% | 0.19% | 0.19% | 0.19% | 0.19% | 0.19% |
| Net investment income | 4.83% | 2.20% | 2.82% | 1.80% | 1.06% | 1.94% |
| Supplemental data | | | | | | |
| Net assets, end of period (000’s) | $139,563 | $113,068 | $114,234 | $111,454 | $120,782 | $48,807 |
| Portfolio turnover ratee | 5.63%f | 9.59%f | 9.69%f | 12.78%f | 15.97%f | 32.47%f |
| aThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of Creation Unit Fund shares in relation to income earned and/or fluctuating fair value of the investments of the Fund. |
| bBased on average daily shares outstanding. |
| cTotal return is not annualized for periods less than one year. Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. |
| dRatios are annualized for periods less than one year. |
| ePortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash ("Cash creations"). |
| fPortfolio turnover rate excluding cash creations was as follows: | 3.23% | 8.93% | 9.69% | 12.00% | 15.31% | 32.47% |
| 47 | Semi-Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments, September 30, 2024 (unaudited)
Franklin FTSE China ETF
| | | Industry | Shares | | Value |
| | Common Stocks 99.6% | | | | |
| | China 96.6% | | | | |
| | 360 Security Technology, Inc., Class A | Software | 34,000 | | $ 42,800 |
| | 37 Interactive Entertainment Network Technology Group Co. Ltd., Class A | Entertainment | 6,800 | | 17,392 |
| a | 3peak, Inc., Class A | Semiconductors & Semiconductor Equipment | 484 | | 6,982 |
| b | 3SBio, Inc., Class A | Biotechnology | 102,000 | | 90,214 |
| a | Addsino Co. Ltd., Class A | Communications Equipment | 6,800 | | 7,588 |
| | Advanced Micro-Fabrication Equipment, Inc. China, Class A | Semiconductors & Semiconductor Equipment | 2,441 | | 57,200 |
| | AECC Aero-Engine Control Co. Ltd., Class A | Aerospace & Defense | 6,800 | | 21,327 |
| | AECC Aviation Power Co. Ltd., Class A | Aerospace & Defense | 10,200 | | 60,177 |
| | Agricultural Bank of China Ltd., Class A | Banks | 333,200 | | 228,524 |
| | Agricultural Bank of China Ltd., Class H | Banks | 1,700,000 | | 801,030 |
| | Aier Eye Hospital Group Co. Ltd., Class A | Health Care Providers & Services | 39,484 | | 89,759 |
| a | Air China Ltd., Class A | Passenger Airlines | 37,400 | | 42,110 |
| a | Air China Ltd., Class H | Passenger Airlines | 92,000 | | 51,404 |
| a,b | Akeso, Inc. | Biotechnology | 37,200 | | 328,538 |
| c | Alibaba Group Holding Ltd., Class A | Broadline Retail | 935,881 | | 13,253,545 |
| | Aluminum Corp. of China Ltd., Class A | Metals & Mining | 51,000 | | 64,855 |
| | Aluminum Corp. of China Ltd., Class H | Metals & Mining | 204,000 | | 162,307 |
| | Amlogic Shanghai Co. Ltd., Class A | Semiconductors & Semiconductor Equipment | 1,794 | | 18,033 |
| a | Angang Steel Co. Ltd., Class A | Metals & Mining | 27,200 | | 9,561 |
| a | Angang Steel Co. Ltd., Class H | Metals & Mining | 86,000 | | 17,161 |
| | Angel Yeast Co. Ltd., Class A | Food Products | 3,400 | | 17,693 |
| b | Angelalign Technology, Inc. | Health Care Equipment & Supplies | 2,400 | | 23,328 |
| | Anhui Anke Biotechnology Group Co. Ltd., Class A | Biotechnology | 7,916 | | 11,118 |
| | Anhui Conch Cement Co. Ltd., Class A | Construction Materials | 17,000 | | 63,495 |
| | Anhui Conch Cement Co. Ltd., Class H | Construction Materials | 66,250 | | 194,891 |
| | Anhui Expressway Co. Ltd., Class H | Transportation Infrastructure | 28,000 | | 34,029 |
| | Anhui Gujing Distillery Co. Ltd., Class A | Beverages | 1,800 | | 52,215 |
| | Anhui Gujing Distillery Co. Ltd., Class B | Beverages | 6,800 | | 109,605 |
| | Anhui Jianghuai Automobile Group Corp. Ltd., Class A | Automobiles | 10,200 | | 36,552 |
| | Anhui Zhongding Sealing Parts Co. Ltd., Class A | Automobile Components | 6,800 | | 13,573 |
| | Anjoy Foods Group Co. Ltd., Class A | Food Products | 1,100 | | 15,614 |
| | ANTA Sports Products Ltd., Class A | Textiles, Apparel & Luxury Goods | 69,560 | | 845,825 |
| | Apeloa Pharmaceutical Co. Ltd., Class A | Pharmaceuticals | 6,800 | | 16,751 |
| | Asymchem Laboratories Tianjin Co. Ltd., Class A | Pharmaceuticals | 1,200 | | 14,356 |
| c | Autohome, Inc., ADR | Interactive Media & Services | 3,298 | | 107,581 |
| | Avary Holding Shenzhen Co. Ltd., Class A | Electronic Equipment, Instruments & Components | 3,400 | | 17,377 |
| | AVIC Industry-Finance Holdings Co. Ltd., Class A | Financial Services | 37,400 | | 19,772 |
| | AviChina Industry & Technology Co. Ltd., Class H | Aerospace & Defense | 136,000 | | 66,534 |
| | Avicopter PLC, Class A | Aerospace & Defense | 3,400 | | 20,268 |
| a | BAIC BluePark New Energy Technology Co. Ltd., Class A | Automobiles | 27,200 | | 31,364 |
| b | BAIC Motor Corp. Ltd., Class H | Automobiles | 136,000 | | 39,395 |
| a,c | Baidu, Inc., Class A | Interactive Media & Services | 122,400 | | 1,664,041 |
| | Bank of Beijing Co. Ltd., Class A | Banks | 81,600 | | 68,091 |
| | Bank of Changsha Co. Ltd., Class A | Banks | 17,000 | | 20,331 |
| | Bank of Chengdu Co. Ltd., Class A | Banks | 6,800 | | 15,303 |
| | Bank of China Ltd., Class A | Banks | 173,400 | | 123,881 |
| | Bank of China Ltd., Class H | Banks | 4,590,000 | | 2,168,690 |
| | Bank of Communications Co. Ltd., Class A | Banks | 153,000 | | 161,774 |
| franklintempleton.com | Semi-Annual Report | 48 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE China ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | China (continued) | | | | |
| | Bank of Communications Co. Ltd., Class H | Banks | 408,000 | | $ 313,058 |
| | Bank of Guiyang Co. Ltd., Class A | Banks | 17,000 | | 14,720 |
| | Bank of Hangzhou Co. Ltd., Class A | Banks | 23,800 | | 47,949 |
| | Bank of Jiangsu Co. Ltd., Class A | Banks | 71,400 | | 85,697 |
| | Bank of Nanjing Co. Ltd., Class A | Banks | 40,800 | | 63,835 |
| | Bank of Ningbo Co. Ltd., Class A | Banks | 27,220 | | 99,956 |
| | Bank of Qingdao Co. Ltd., Class A | Banks | 20,400 | | 11,018 |
| | Bank of Shanghai Co. Ltd., Class A | Banks | 54,400 | | 61,328 |
| a | Bank of Zhengzhou Co. Ltd., Class A | Banks | 28,178 | | 8,656 |
| | Baoshan Iron & Steel Co. Ltd., Class A | Metals & Mining | 71,400 | | 70,802 |
| | BBMG Corp., Class A | Construction Materials | 40,800 | | 10,785 |
| | BBMG Corp., Class H | Construction Materials | 136,000 | | 14,007 |
| a | BeiGene Ltd. | Biotechnology | 44,200 | | 823,398 |
| | Beijing Capital Eco-Environment Protection Group Co. Ltd., Class A | Water Utilities | 34,000 | | 15,886 |
| a | Beijing Capital International Airport Co. Ltd., Class H | Transportation Infrastructure | 68,000 | | 25,388 |
| | Beijing Dabeinong Technology Group Co. Ltd., Class A | Food Products | 17,000 | | 11,611 |
| | Beijing Easpring Material Technology Co. Ltd., Class A | Electrical Equipment | 3,400 | | 21,045 |
| a | Beijing E-Hualu Information Technology Co. Ltd., Class A | Software | 3,400 | | 11,902 |
| | Beijing Enlight Media Co. Ltd., Class A | Entertainment | 13,600 | | 17,295 |
| | Beijing Enterprises Holdings Ltd., Class H | Gas Utilities | 26,500 | | 95,185 |
| a | Beijing Jetsen Technology Co. Ltd., Class A | Entertainment | 10,200 | | 8,001 |
| | Beijing Jingneng Clean Energy Co. Ltd., Class H | Independent Power Producers & Energy Traders | 68,000 | | 17,859 |
| | Beijing Kingsoft Office Software, Inc., Class A | Software | 1,829 | | 69,620 |
| | Beijing New Building Materials PLC, Class A | Building Products | 6,800 | | 32,044 |
| | Beijing Originwater Technology Co. Ltd., Class A | Commercial Services & Supplies | 17,035 | | 11,854 |
| | Beijing Roborock Technology Co. Ltd., Class A | Household Durables | 740 | | 29,386 |
| | Beijing Shiji Information Technology Co. Ltd., Class A | Software | 12,824 | | 13,431 |
| | Beijing Shougang Co. Ltd., Class A | Metals & Mining | 34,000 | | 16,517 |
| a | Beijing Shunxin Agriculture Co. Ltd., Class A | Beverages | 3,400 | | 9,745 |
| | Beijing Sinnet Technology Co. Ltd., Class A | IT Services | 7,000 | | 10,522 |
| | Beijing Tiantan Biological Products Corp. Ltd., Class A | Biotechnology | 8,120 | | 29,168 |
| | Beijing Tong Ren Tang Co. Ltd., Class A | Pharmaceuticals | 6,800 | | 40,866 |
| | Beijing Ultrapower Software Co. Ltd., Class A | IT Services | 10,200 | | 18,174 |
| | Beijing United Information Technology Co. Ltd., Class A | Trading Companies & Distributors | 2,523 | | 8,865 |
| | Beijing Wantai Biological Pharmacy Enterprise Co. Ltd., Class A | Biotechnology | 1,721 | | 20,132 |
| | Beijing Yanjing Brewery Co. Ltd., Class A | Beverages | 13,600 | | 21,861 |
| | Beijing Yuanliu Hongyuan Electronic Technology Co. Ltd., Class A | Electronic Equipment, Instruments & Components | 800 | | 4,332 |
| | Beijing Zhong Ke San Huan High-Tech Co. Ltd., Class A | Electronic Equipment, Instruments & Components | 3,760 | | 5,179 |
| | Beijing-Shanghai High Speed Railway Co. Ltd., Class A | Ground Transportation | 112,200 | | 96,831 |
| | Bethel Automotive Safety Systems Co. Ltd., Class A | Automobile Components | 2,240 | | 15,657 |
| a,c | Bilibili, Inc., Class Z | Entertainment | 15,640 | | 390,220 |
| | Bloomage Biotechnology Corp. Ltd., Class A | Biotechnology | 1,185 | | 11,937 |
| 49 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE China ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | China (continued) | | | | |
| b | Blue Moon Group Holdings Ltd. | Household Products | 51,000 | | $ 17,662 |
| | Bluefocus Intelligent Communications Group Co. Ltd., Class A | Media | 10,200 | | 10,260 |
| | BOC International China Co. Ltd., Class A | Capital Markets | 3,400 | | 6,121 |
| | BOE Technology Group Co. Ltd., Class A | Electronic Equipment, Instruments & Components | 149,600 | | 95,549 |
| | BOE Technology Group Co. Ltd., Class B | Electronic Equipment, Instruments & Components | 40,800 | | 14,497 |
| | Bright Dairy & Food Co. Ltd., Class A | Food Products | 6,800 | | 8,997 |
| | Brilliance China Automotive Holdings Ltd. | Automobiles | 136,000 | | 52,702 |
| | BTG Hotels Group Co. Ltd., Class A | Hotels, Restaurants & Leisure | 3,400 | | 7,190 |
| | BYD Co. Ltd., Class A | Automobiles | 7,300 | | 320,542 |
| | BYD Co. Ltd., Class H | Automobiles | 60,654 | | 2,216,106 |
| | BYD Electronic International Co. Ltd. | Communications Equipment | 41,500 | | 173,907 |
| | By-health Co. Ltd., Class A | Personal Care Products | 6,800 | | 14,477 |
| | C&D International Investment Group Ltd. | Real Estate Management & Development | 44,000 | | 95,392 |
| | C&S Paper Co. Ltd., Class A | Household Products | 6,800 | | 7,724 |
| | Caida Securities Co. Ltd., Class A | Capital Markets | 6,800 | | 7,802 |
| | Caitong Securities Co. Ltd., Class A | Capital Markets | 20,460 | | 25,492 |
| a | Cambricon Technologies Corp. Ltd., Class A | Semiconductors & Semiconductor Equipment | 1,692 | | 69,908 |
| | Canmax Technologies Co. Ltd., Class A | Chemicals | 4,270 | | 15,058 |
| a,b | CanSino Biologics, Inc., Class H | Biotechnology | 5,400 | | 19,813 |
| | CECEP Solar Energy Co. Ltd., Class A | Independent Power Producers & Energy Traders | 17,000 | | 12,437 |
| | CECEP Wind-Power Corp., Class A | Independent Power Producers & Energy Traders | 30,880 | | 14,516 |
| | Central China Securities Co. Ltd., Class A | Capital Markets | 13,600 | | 9,269 |
| | CETC Cyberspace Security Technology Co. Ltd., Class A | Software | 3,400 | | 8,210 |
| | CGN Power Co. Ltd., Class A | Independent Power Producers & Energy Traders | 30,600 | | 19,675 |
| b | CGN Power Co. Ltd., Class H | Independent Power Producers & Energy Traders | 612,000 | | 236,370 |
| | Changchun High-Tech Industry Group Co. Ltd., Class A | Pharmaceuticals | 1,800 | | 28,263 |
| | Changjiang Securities Co. Ltd., Class A | Capital Markets | 23,500 | | 24,243 |
| | Changzhou Xingyu Automotive Lighting Systems Co. Ltd., Class A | Automobile Components | 1,000 | | 21,100 |
| | Chaozhou Three-Circle Group Co. Ltd., Class A | Electronic Equipment, Instruments & Components | 7,800 | | 41,348 |
| | Chengdu Xingrong Environment Co. Ltd., Class A | Water Utilities | 13,600 | | 14,108 |
| | Chengxin Lithium Group Co. Ltd., Class A | Chemicals | 3,400 | | 7,428 |
| | Chifeng Jilong Gold Mining Co. Ltd., Class A | Metals & Mining | 6,800 | | 19,598 |
| | China Baoan Group Co. Ltd., Class A | Industrial Conglomerates | 10,200 | | 14,006 |
| a,b | China Bohai Bank Co. Ltd., Class H | Banks | 170,000 | | 22,762 |
| | China Cinda Asset Management Co. Ltd., Class H | Capital Markets | 476,000 | | 66,183 |
| | China CITIC Bank Corp. Ltd., Class A | Banks | 95,200 | | 95,354 |
| | China CITIC Bank Corp. Ltd., Class H | Banks | 510,000 | | 325,665 |
| a,b | China CITIC Financial Asset Management Co. Ltd., Class H | Capital Markets | 850,000 | | 59,092 |
| | China Coal Energy Co. Ltd., Class A | Oil, Gas & Consumable Fuels | 20,400 | | 42,994 |
| | China Coal Energy Co. Ltd., Class H | Oil, Gas & Consumable Fuels | 118,000 | | 147,358 |
| | China Communications Services Corp. Ltd., Class H | Construction & Engineering | 136,000 | | 73,712 |
| | China Conch Venture Holdings Ltd. | Construction & Engineering | 85,000 | | 83,933 |
| | China Construction Bank Corp., Class A | Banks | 37,400 | | 42,377 |
| | China Construction Bank Corp., Class H | Banks | 5,134,000 | | 3,886,440 |
| | China CSSC Holdings Ltd., Class A | Machinery | 20,400 | | 121,753 |
| a | China Eastern Airlines Corp. Ltd., Class A | Passenger Airlines | 68,000 | | 40,225 |
| a | China Eastern Airlines Corp. Ltd., Class H | Passenger Airlines | 68,000 | | 20,923 |
| | China Energy Engineering Corp. Ltd., Class A | Construction & Engineering | 132,600 | | 45,661 |
| franklintempleton.com | Semi-Annual Report | 50 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE China ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | China (continued) | | | | |
| | China Energy Engineering Corp. Ltd., Class H | Construction & Engineering | 272,000 | | $ 34,668 |
| | China Everbright Bank Co. Ltd., Class A | Banks | 183,600 | | 94,441 |
| | China Everbright Bank Co. Ltd., Class H | Banks | 170,000 | | 57,779 |
| b | China Feihe Ltd. | Food Products | 204,000 | | 154,428 |
| | China Galaxy Securities Co. Ltd., Class A | Capital Markets | 26,900 | | 59,153 |
| | China Galaxy Securities Co. Ltd., Class H | Capital Markets | 204,000 | | 190,671 |
| | China Great Wall Securities Co. Ltd., Class A | Capital Markets | 13,600 | | 17,858 |
| a | China Greatwall Technology Group Co. Ltd., Class A | Technology Hardware, Storage & Peripherals | 13,600 | | 20,171 |
| | China Green Electricity Investment of Tianjin Co. Ltd., Class A | Real Estate Management & Development | 6,800 | | 9,600 |
| | China Hongqiao Group Ltd. | Metals & Mining | 119,000 | | 198,550 |
| | China International Capital Corp. Ltd., Class A | Capital Markets | 3,400 | | 18,757 |
| b | China International Capital Corp. Ltd., Class H | Capital Markets | 81,600 | | 146,024 |
| | China International Marine Containers Group Co. Ltd., Class A | Machinery | 10,650 | | 13,680 |
| | China International Marine Containers Group Co. Ltd., Class H | Machinery | 37,400 | | 29,516 |
| | China Jinmao Holdings Group Ltd., Class A | Real Estate Management & Development | 340,000 | | 51,213 |
| | China Jushi Co. Ltd., Class A | Construction Materials | 14,887 | | 25,015 |
| | China Lesso Group Holdings Ltd. | Building Products | 34,000 | | 17,290 |
| | China Life Insurance Co. Ltd., Class H | Insurance | 403,727 | | 811,872 |
| a,b,c | China Literature Ltd., Class A | Media | 20,400 | | 85,093 |
| | China Longyuan Power Group Corp. Ltd., Class H | Independent Power Producers & Energy Traders | 185,000 | | 167,911 |
| | China Medical System Holdings Ltd. | Pharmaceuticals | 68,000 | | 78,352 |
| | China Meheco Group Co. Ltd., Class A | Health Care Providers & Services | 6,840 | | 11,386 |
| | China Merchants Bank Co. Ltd., Class A | Banks | 81,600 | | 438,510 |
| | China Merchants Bank Co. Ltd., Class H | Banks | 208,000 | | 1,032,301 |
| | China Merchants Energy Shipping Co. Ltd., Class A | Oil, Gas & Consumable Fuels | 34,000 | | 39,059 |
| | China Merchants Expressway Network & Technology Holdings Co. Ltd., Class A | Transportation Infrastructure | 28,900 | | 51,989 |
| | China Merchants Port Holdings Co. Ltd. | Transportation Infrastructure | 70,860 | | 112,938 |
| | China Merchants Property Operation & Service Co. Ltd., Class A | Real Estate Management & Development | 3,400 | | 5,563 |
| | China Merchants Securities Co. Ltd., Class A | Capital Markets | 30,600 | | 84,997 |
| b | China Merchants Securities Co. Ltd., Class H | Capital Markets | 20,400 | | 23,900 |
| | China Merchants Shekou Industrial Zone Holdings Co. Ltd., Class A | Real Estate Management & Development | 37,400 | | 65,463 |
| | China Minsheng Banking Corp. Ltd., Class A | Banks | 139,400 | | 80,071 |
| | China Minsheng Banking Corp. Ltd., Class H | Banks | 357,000 | | 145,696 |
| | China National Accord Medicines Corp. Ltd., Class B | Health Care Providers & Services | 4,270 | | 8,092 |
| | China National Building Material Co. Ltd., Class H | Construction Materials | 272,000 | | 119,761 |
| | China National Chemical Engineering Co. Ltd., Class A | Construction & Engineering | 27,200 | | 32,024 |
| | China National Nuclear Power Co. Ltd., Class A | Independent Power Producers & Energy Traders | 64,600 | | 102,918 |
| a | China National Software & Service Co. Ltd., Class A | Software | 4,270 | | 25,570 |
| | China Northern Rare Earth Group High-Tech Co. Ltd., Class A | Metals & Mining | 13,600 | | 40,089 |
| | China Oilfield Services Ltd., Class A | Energy Equipment & Services | 6,800 | | 15,624 |
| | China Oilfield Services Ltd., Class H | Energy Equipment & Services | 102,000 | | 93,891 |
| | China Overseas Land & Investment Ltd., Class A | Real Estate Management & Development | 204,000 | | 418,111 |
| 51 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE China ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | China (continued) | | | | |
| | China Pacific Insurance Group Co. Ltd., Class A | Insurance | 27,200 | | $ 151,961 |
| | China Pacific Insurance Group Co. Ltd., Class H | Insurance | 142,800 | | 514,760 |
| | China Petroleum & Chemical Corp., Class A | Oil, Gas & Consumable Fuels | 170,000 | | 169,061 |
| | China Petroleum & Chemical Corp., Class H | Oil, Gas & Consumable Fuels | 1,360,000 | | 847,428 |
| | China Railway Group Ltd., Class A | Construction & Engineering | 85,000 | | 79,794 |
| | China Railway Group Ltd., Class H | Construction & Engineering | 238,000 | | 125,013 |
| | China Railway Signal & Communication Corp. Ltd., Class A | Electronic Equipment, Instruments & Components | 29,444 | | 26,463 |
| b | China Railway Signal & Communication Corp. Ltd., Class H | Electronic Equipment, Instruments & Components | 102,000 | | 42,678 |
| | China Rare Earth Resources & Technology Co. Ltd., Class A | Metals & Mining | 6,800 | | 27,506 |
| | China Reinsurance Group Corp., Class H | Insurance | 374,000 | | 40,445 |
| | China Resources Building Materials Technology Holdings Ltd. | Construction Materials | 136,000 | | 38,519 |
| | China Resources Double Crane Pharmaceutical Co. Ltd., Class A | Pharmaceuticals | 3,400 | | 11,572 |
| | China Resources Microelectronics Ltd., Class A | Semiconductors & Semiconductor Equipment | 4,137 | | 27,871 |
| b | China Resources Mixc Lifestyle Services Ltd. | Real Estate Management & Development | 34,000 | | 152,984 |
| b | China Resources Pharmaceutical Group Ltd., Class A | Pharmaceuticals | 85,000 | | 65,768 |
| | China Resources Power Holdings Co. Ltd. | Independent Power Producers & Energy Traders | 104,700 | | 284,412 |
| | China Resources Sanjiu Medical & Pharmaceutical Co. Ltd., Class A | Pharmaceuticals | 5,950 | | 40,476 |
| a,c | China Ruyi Holdings Ltd. | Entertainment | 408,000 | | 118,710 |
| | China Shenhua Energy Co. Ltd., Class A | Oil, Gas & Consumable Fuels | 27,200 | | 169,450 |
| | China Shenhua Energy Co. Ltd., Class H | Oil, Gas & Consumable Fuels | 185,212 | | 835,749 |
| | China South Publishing & Media Group Co. Ltd., Class A | Media | 6,800 | | 13,525 |
| a | China Southern Airlines Co. Ltd., Class A | Passenger Airlines | 51,000 | | 47,658 |
| a | China Southern Airlines Co. Ltd., Class H | Passenger Airlines | 88,000 | | 42,032 |
| | China Southern Power Grid Energy Efficiency&Clean Energy Co. Ltd., Class A | Commercial Services & Supplies | 13,600 | | 9,425 |
| | China State Construction Engineering Corp. Ltd., Class A | Construction & Engineering | 163,200 | | 144,110 |
| | China Suntien Green Energy Corp. Ltd., Class H | Oil, Gas & Consumable Fuels | 102,000 | | 47,930 |
| | China Taiping Insurance Holdings Co. Ltd. | Insurance | 81,600 | | 131,316 |
| | China Three Gorges Renewables Group Co. Ltd., Class A | Independent Power Producers & Energy Traders | 98,600 | | 68,329 |
| | China Tourism Group Duty Free Corp. Ltd., Class A | Specialty Retail | 8,100 | | 89,349 |
| b | China Tourism Group Duty Free Corp. Ltd., Class H | Specialty Retail | 6,800 | | 65,921 |
| b | China Tower Corp. Ltd., Class H | Diversified Telecommunication Services | 2,584,000 | | 342,648 |
| | China TransInfo Technology Co. Ltd., Class A | IT Services | 3,400 | | 4,581 |
| | China United Network Communications Ltd., Class A | Wireless Telecommunication Services | 108,800 | | 83,170 |
| a | China Vanke Co. Ltd., Class A | Real Estate Management & Development | 40,800 | | 56,665 |
| a | China Vanke Co. Ltd., Class H | Real Estate Management & Development | 122,400 | | 117,397 |
| | China World Trade Center Co. Ltd., Class A | Real Estate Management & Development | 3,400 | | 13,403 |
| | China XD Electric Co. Ltd., Class A | Electrical Equipment | 23,800 | | 29,620 |
| | China Yangtze Power Co. Ltd., Class A | Independent Power Producers & Energy Traders | 98,600 | | 423,357 |
| | China Zhenhua Group Science & Technology Co. Ltd., Class A | Electronic Equipment, Instruments & Components | 3,400 | | 21,215 |
| franklintempleton.com | Semi-Annual Report | 52 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE China ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | China (continued) | | | | |
| | China Zheshang Bank Co. Ltd., Class A | Banks | 44,200 | | $ 18,568 |
| | China Zheshang Bank Co. Ltd., Class H | Banks | 136,000 | | 38,519 |
| | Chinalin Securities Co. Ltd., Class A | Capital Markets | 3,400 | | 6,529 |
| | Chinese Universe Publishing & Media Group Co. Ltd., Class A | Media | 6,800 | | 15,177 |
| | Chongqing Brewery Co. Ltd., Class A | Beverages | 1,700 | | 17,035 |
| | Chongqing Changan Automobile Co. Ltd., Class A | Automobiles | 35,144 | | 74,721 |
| | Chongqing Changan Automobile Co. Ltd., Class B | Automobiles | 88,972 | | 44,672 |
| | Chongqing Fuling Zhacai Group Co. Ltd., Class A | Food Products | 4,270 | | 9,542 |
| | Chongqing Rural Commercial Bank Co. Ltd., Class A | Banks | 20,400 | | 15,857 |
| | Chongqing Rural Commercial Bank Co. Ltd., Class H | Banks | 136,000 | | 70,561 |
| | Chongqing Water Group Co. Ltd., Class A | Water Utilities | 10,200 | | 7,243 |
| | Chongqing Zhifei Biological Products Co. Ltd., Class A | Biotechnology | 10,200 | | 48,649 |
| | CITIC Ltd., Class B | Industrial Conglomerates | 340,000 | | 401,828 |
| | Citic Pacific Special Steel Group Co. Ltd., Class A | Metals & Mining | 21,280 | | 41,474 |
| | CITIC Securities Co. Ltd., Class A | Capital Markets | 47,000 | | 182,664 |
| | CITIC Securities Co. Ltd., Class H | Capital Markets | 88,700 | | 234,668 |
| | CMOC Group Ltd., Class A | Metals & Mining | 37,400 | | 46,492 |
| | CMOC Group Ltd., Class H | Metals & Mining | 216,000 | | 212,176 |
| | CMST Development Co. Ltd., Class A | Air Freight & Logistics | 10,200 | | 7,754 |
| | CNGR Advanced Material Co. Ltd., Class A | Chemicals | 4,680 | | 26,855 |
| | CNOOC Energy Technology & Services Ltd., Class A | Energy Equipment & Services | 23,800 | | 15,439 |
| | CNPC Capital Co. Ltd., Class A | Banks | 20,400 | | 21,482 |
| | Contemporary Amperex Technology Co. Ltd., Class A | Electrical Equipment | 17,000 | | 611,851 |
| | COSCO SHIPPING Development Co. Ltd., Class A | Trading Companies & Distributors | 54,400 | | 20,521 |
| | COSCO SHIPPING Development Co. Ltd., Class H | Trading Companies & Distributors | 204,000 | | 27,314 |
| | COSCO SHIPPING Energy Transportation Co. Ltd., Class A | Oil, Gas & Consumable Fuels | 13,600 | | 30,800 |
| | COSCO SHIPPING Energy Transportation Co. Ltd., Class H | Oil, Gas & Consumable Fuels | 72,000 | | 87,781 |
| | COSCO SHIPPING Holdings Co. Ltd., Class A | Marine Transportation | 49,580 | | 111,293 |
| | COSCO SHIPPING Holdings Co. Ltd., Class H | Marine Transportation | 153,000 | | 256,855 |
| a | Country Garden Holdings Co. Ltd. | Real Estate Management & Development | 770,000 | | 19,231 |
| | Country Garden Services Holdings Co. Ltd. | Real Estate Management & Development | 110,100 | | 92,276 |
| | CRRC Corp. Ltd., Class A | Machinery | 98,600 | | 115,103 |
| | CRRC Corp. Ltd., Class H | Machinery | 238,000 | | 155,654 |
| | CSC Financial Co. Ltd., Class A | Capital Markets | 20,400 | | 78,293 |
| b | CSC Financial Co. Ltd., Class H | Capital Markets | 51,000 | | 58,042 |
| | CSG Holding Co. Ltd., Class A | Construction Materials | 6,800 | | 5,616 |
| | CSG Holding Co. Ltd., Class B | Construction Materials | 61,200 | | 20,485 |
| | CSPC Innovation Pharmaceutical Co. Ltd., Class A | Pharmaceuticals | 5,000 | | 22,076 |
| | CSPC Pharmaceutical Group Ltd. | Pharmaceuticals | 476,000 | | 370,750 |
| | Daan Gene Co. Ltd., Class A | Biotechnology | 4,640 | | 4,256 |
| | Daqin Railway Co. Ltd., Class A | Ground Transportation | 71,400 | | 69,986 |
| a | Daqo New Energy Corp., ADR | Semiconductors & Semiconductor Equipment | 2,448 | | 49,866 |
| 53 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE China ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | China (continued) | | | | |
| | Datang International Power Generation Co. Ltd., Class A | Independent Power Producers & Energy Traders | 30,600 | | $ 12,986 |
| | Datang International Power Generation Co. Ltd., Class H | Independent Power Producers & Energy Traders | 136,000 | | 28,014 |
| | DHC Software Co. Ltd., Class A | IT Services | 20,400 | | 16,673 |
| | Dian Diagnostics Group Co. Ltd., Class A | Health Care Providers & Services | 3,400 | | 6,631 |
| | Do-Fluoride New Materials Co. Ltd., Class A | Chemicals | 4,560 | | 8,157 |
| | Dong-E-E-Jiao Co. Ltd., Class A | Pharmaceuticals | 3,400 | | 29,974 |
| | Dongfang Electric Corp. Ltd., Class A | Electrical Equipment | 10,200 | | 23,027 |
| | Dongfang Electric Corp. Ltd., Class H | Electrical Equipment | 20,400 | | 27,892 |
| | Dongfeng Motor Group Co. Ltd., Class H | Automobiles | 126,500 | | 41,203 |
| | Dongguan Yiheda Automation Co. Ltd., Class A | Machinery | 3,400 | | 12,286 |
| | Dongxing Securities Co. Ltd., Class A | Capital Markets | 13,600 | | 21,278 |
| a,b | East Buy Holding Ltd. | Consumer Staples Distribution & Retail | 23,000 | | 58,510 |
| c | East Money Information Co. Ltd., Class A | Capital Markets | 64,576 | | 187,307 |
| a | Eastern Air Logistics Co. Ltd., Class A | Air Freight & Logistics | 6,800 | | 17,955 |
| | Eastroc Beverage Group Co. Ltd., Class A | Beverages | 700 | | 27,103 |
| | Ecovacs Robotics Co. Ltd., Class A | Household Durables | 2,200 | | 16,098 |
| | ENN Energy Holdings Ltd. | Gas Utilities | 40,800 | | 315,422 |
| | ENN Natural Gas Co. Ltd., Class A | Gas Utilities | 13,600 | | 39,992 |
| | Eoptolink Technology, Inc. Ltd., Class A | Electronic Equipment, Instruments & Components | 3,400 | | 63,140 |
| | Eternal Asia Supply Chain Management Ltd., Class A | Commercial Services & Supplies | 13,600 | | 7,637 |
| | Eve Energy Co. Ltd., Class A | Electrical Equipment | 7,800 | | 54,365 |
| | Everbright Securities Co. Ltd., Class A | Capital Markets | 17,000 | | 46,759 |
| | Fangda Carbon New Material Co. Ltd., Class A | Electrical Equipment | 17,000 | | 12,145 |
| | FAW Jiefang Group Co. Ltd., Class A | Machinery | 10,200 | | 13,510 |
| | Fiberhome Telecommunication Technologies Co. Ltd., Class A | Communications Equipment | 6,800 | | 16,673 |
| a | Financial Street Holdings Co. Ltd., Class A | Real Estate Management & Development | 13,200 | | 6,601 |
| | First Capital Securities Co. Ltd., Class A | Capital Markets | 20,400 | | 20,695 |
| | Flat Glass Group Co. Ltd., Class A | Semiconductors & Semiconductor Equipment | 6,800 | | 19,646 |
| | Flat Glass Group Co. Ltd., Class H | Semiconductors & Semiconductor Equipment | 25,000 | | 42,099 |
| | Focus Media Information Technology Co. Ltd., Class A | Media | 57,800 | | 58,389 |
| | Foshan Haitian Flavouring & Food Co. Ltd., Class A | Food Products | 19,373 | | 133,340 |
| | Fosun International Ltd. | Industrial Conglomerates | 119,000 | | 76,295 |
| | Founder Securities Co. Ltd., Class A | Capital Markets | 37,400 | | 49,912 |
| | Foxconn Industrial Internet Co. Ltd., Class A | Electronic Equipment, Instruments & Components | 51,000 | | 183,563 |
| | Fujian Funeng Co. Ltd., Class A | Independent Power Producers & Energy Traders | 8,540 | | 12,666 |
| | Fujian Sunner Development Co. Ltd., Class A | Food Products | 6,800 | | 13,476 |
| c | Full Truck Alliance Co. Ltd., ADR | Ground Transportation | 41,072 | | 370,059 |
| | Fuyao Glass Industry Group Co. Ltd., Class A | Automobile Components | 10,200 | | 84,822 |
| b | Fuyao Glass Industry Group Co. Ltd., Class H | Automobile Components | 33,400 | | 224,673 |
| | GalaxyCore, Inc., Class A | Semiconductors & Semiconductor Equipment | 13,600 | | 28,624 |
| | Gan & Lee Pharmaceuticals Co. Ltd., Class A | Biotechnology | 3,400 | | 23,703 |
| | Ganfeng Lithium Group Co. Ltd., Class A | Chemicals | 7,060 | | 34,772 |
| b | Ganfeng Lithium Group Co. Ltd., Class H | Chemicals | 23,060 | | 66,501 |
| | G-bits Network Technology Xiamen Co. Ltd., Class A | Entertainment | 300 | | 10,468 |
| a | GCL System Integration Technology Co. Ltd., Class A | Semiconductors & Semiconductor Equipment | 27,200 | | 8,978 |
| a | GCL Technology Holdings Ltd. | Semiconductors & Semiconductor Equipment | 1,122,000 | | 202,227 |
| | GD Power Development Co. Ltd., Class A | Independent Power Producers & Energy Traders | 68,000 | | 53,147 |
| a,c | GDS Holdings Ltd., Class A | IT Services | 37,400 | | 105,206 |
| | GEM Co. Ltd., Class A | Metals & Mining | 23,800 | | 24,247 |
| franklintempleton.com | Semi-Annual Report | 54 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE China ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | China (continued) | | | | |
| | Gemdale Corp., Class A | Real Estate Management & Development | 20,100 | | $ 15,710 |
| a | Genscript Biotech Corp. | Life Sciences Tools & Services | 68,000 | | 122,037 |
| | GF Securities Co. Ltd., Class A | Capital Markets | 23,800 | | 56,791 |
| | GF Securities Co. Ltd., Class H | Capital Markets | 61,200 | | 84,935 |
| b | Giant Biogene Holding Co. Ltd. | Personal Care Products | 20,400 | | 133,811 |
| | Giant Network Group Co. Ltd., Class A | Entertainment | 13,600 | | 22,950 |
| a | GigaDevice Semiconductor, Inc., Class A | Semiconductors & Semiconductor Equipment | 3,448 | | 43,537 |
| | Ginlong Technologies Co. Ltd., Class A | Electrical Equipment | 2,350 | | 27,937 |
| | Glarun Technology Co. Ltd., Class A | Communications Equipment | 6,800 | | 14,973 |
| | GoerTek, Inc., Class A | Electronic Equipment, Instruments & Components | 13,600 | | 44,053 |
| | Goldwind Science & Technology Co. Ltd., Class A | Electrical Equipment | 13,600 | | 19,471 |
| | Goldwind Science & Technology Co. Ltd., Class H | Electrical Equipment | 34,000 | | 25,650 |
| | Goneo Group Co. Ltd., Class A | Electrical Equipment | 2,175 | | 25,875 |
| | GoodWe Technologies Co. Ltd., Class A | Electrical Equipment | 634 | | 5,516 |
| | Gotion High-tech Co. Ltd., Class A | Electrical Equipment | 6,800 | | 22,444 |
| a | Grandjoy Holdings Group Co. Ltd., Class A | Real Estate Management & Development | 20,400 | | 9,794 |
| | Great Wall Motor Co. Ltd., Class A | Automobiles | 13,600 | | 58,899 |
| | Great Wall Motor Co. Ltd., Class H | Automobiles | 119,000 | | 222,144 |
| | Gree Electric Appliances, Inc. of Zhuhai, Class A | Household Durables | 17,000 | | 116,448 |
| a | Greenland Holdings Corp. Ltd., Class A | Real Estate Management & Development | 66,000 | | 19,615 |
| | Greentown China Holdings Ltd. | Real Estate Management & Development | 68,000 | | 80,191 |
| | GRG Banking Equipment Co. Ltd., Class A | Technology Hardware, Storage & Peripherals | 10,200 | | 17,052 |
| | Guangdong Baolihua New Energy Stock Co. Ltd., Class A | Independent Power Producers & Energy Traders | 10,200 | | 7,141 |
| | Guangdong Electric Power Development Co. Ltd., Class A | Independent Power Producers & Energy Traders | 10,200 | | 7,360 |
| | Guangdong Electric Power Development Co. Ltd., Class B | Independent Power Producers & Energy Traders | 47,600 | | 13,175 |
| a | Guangdong Golden Dragon Development, Inc., Class A | Capital Markets | 3,400 | | 7,117 |
| | Guangdong Haid Group Co. Ltd., Class A | Food Products | 7,000 | | 48,029 |
| | Guangdong HEC Technology Holding Co. Ltd., Class A | Metals & Mining | 13,600 | | 15,390 |
| | Guangdong Xinbao Electrical Appliances Holdings Co. Ltd., Class A | Household Durables | 3,400 | | 7,661 |
| | Guanghui Energy Co. Ltd., Class A | Oil, Gas & Consumable Fuels | 27,200 | | 27,944 |
| | Guangshen Railway Co. Ltd., Class A | Ground Transportation | 27,200 | | 14,691 |
| | Guangshen Railway Co. Ltd., Class H | Ground Transportation | 68,000 | | 19,522 |
| | Guangxi Guiguan Electric Power Co. Ltd., Class A | Independent Power Producers & Energy Traders | 17,000 | | 17,100 |
| | Guangxi Liugong Machinery Co. Ltd., Class A | Machinery | 6,800 | | 12,145 |
| | Guangzhou Automobile Group Co. Ltd., Class A | Automobiles | 13,600 | | 17,159 |
| | Guangzhou Automobile Group Co. Ltd., Class H | Automobiles | 182,000 | | 71,464 |
| | Guangzhou Baiyunshan Pharmaceutical Holdings Co. Ltd., Class A | Health Care Providers & Services | 6,800 | | 29,790 |
| | Guangzhou Baiyunshan Pharmaceutical Holdings Co. Ltd., Class H | Health Care Providers & Services | 12,000 | | 31,825 |
| | Guangzhou Haige Communications Group, Inc. Co., Class A | Communications Equipment | 10,200 | | 15,478 |
| | Guangzhou Kingmed Diagnostics Group Co. Ltd., Class A | Health Care Providers & Services | 3,400 | | 17,946 |
| 55 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE China ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | China (continued) | | | | |
| | Guangzhou Shiyuan Electronic Technology Co. Ltd., Class A | Electronic Equipment, Instruments & Components | 3,400 | | $ 17,907 |
| | Guangzhou Tinci Materials Technology Co. Ltd., Class A | Chemicals | 8,460 | | 22,387 |
| | Guangzhou Wondfo Biotech Co. Ltd., Class A | Health Care Equipment & Supplies | 1,300 | | 4,904 |
| | Guangzhou Yuexiu Capital Holdings Group Co. Ltd., Class A | Capital Markets | 10,200 | | 10,042 |
| | Guangzhou Zhujiang Brewery Co. Ltd., Class A | Beverages | 6,800 | | 9,328 |
| | Guolian Securities Co. Ltd., Class A | Capital Markets | 11,000 | | 19,772 |
| | Guosen Securities Co. Ltd., Class A | Capital Markets | 27,200 | | 45,977 |
| a | Guosheng Financial Holding, Inc., Class A | Capital Markets | 10,200 | | 18,130 |
| d | Guotai Junan Securities Co. Ltd., Class A | Capital Markets | 33,000 | | 69,313 |
| b,d | Guotai Junan Securities Co. Ltd., Class H | Capital Markets | 39,600 | | 40,305 |
| | Guoyuan Securities Co. Ltd., Class A | Capital Markets | 20,400 | | 25,855 |
| c | H World Group Ltd. | Hotels, Restaurants & Leisure | 105,440 | | 413,344 |
| b,c | Haidilao International Holding Ltd. | Hotels, Restaurants & Leisure | 83,000 | | 203,667 |
| | Haier Smart Home Co. Ltd., Class A | Household Durables | 27,200 | | 124,950 |
| | Haier Smart Home Co. Ltd., Class H | Household Durables | 129,200 | | 518,962 |
| a | Hainan Airlines Holding Co. Ltd., Class A | Passenger Airlines | 180,200 | | 33,215 |
| a | Hainan Airport Infrastructure Co. Ltd., Class A | Real Estate Management & Development | 44,200 | | 24,188 |
| | Haitian International Holdings Ltd. | Machinery | 34,000 | | 109,430 |
| d | Haitong Securities Co. Ltd., Class A | Capital Markets | 42,900 | | 53,758 |
| d | Haitong Securities Co. Ltd., Class H | Capital Markets | 184,800 | | 86,296 |
| | Hangzhou Binjiang Real Estate Group Co. Ltd., Class A | Real Estate Management & Development | 13,600 | | 22,036 |
| | Hangzhou Chang Chuan Technology Co. Ltd., Class A | Semiconductors & Semiconductor Equipment | 3,400 | | 18,417 |
| | Hangzhou First Applied Material Co. Ltd., Class A | Semiconductors & Semiconductor Equipment | 5,442 | | 13,732 |
| | Hangzhou Great Star Industrial Co. Ltd., Class A | Household Durables | 6,800 | | 30,460 |
| | Hangzhou Lion Microelectronics Co. Ltd., Class A | Semiconductors & Semiconductor Equipment | 3,400 | | 11,752 |
| | Hangzhou Oxygen Plant Group Co. Ltd., Class A | Chemicals | 3,400 | | 11,480 |
| | Hangzhou Robam Appliances Co. Ltd., Class A | Household Durables | 3,400 | | 11,261 |
| a | Hangzhou Silan Microelectronics Co. Ltd., Class A | Semiconductors & Semiconductor Equipment | 6,800 | | 21,978 |
| | Hangzhou Tigermed Consulting Co. Ltd., Class A | Life Sciences Tools & Services | 3,400 | | 33,516 |
| b | Hangzhou Tigermed Consulting Co. Ltd., Class H | Life Sciences Tools & Services | 6,800 | | 35,105 |
| | Han’s Laser Technology Industry Group Co. Ltd., Class A | Machinery | 3,400 | | 11,431 |
| b | Hansoh Pharmaceutical Group Co. Ltd. | Pharmaceuticals | 56,500 | | 152,388 |
| | Haohua Chemical Science & Technology Co. Ltd., Class A | Chemicals | 3,400 | | 15,424 |
| | Harbin Boshi Automation Co. Ltd., Class A | Machinery | 3,400 | | 7,141 |
| | Hefei Meiya Optoelectronic Technology, Inc., Class A | Machinery | 4,180 | | 9,538 |
| | Heilongjiang Agriculture Co. Ltd., Class A | Food Products | 6,800 | | 14,438 |
| | Henan Shenhuo Coal Industry & Electricity Power Co. Ltd., Class A | Metals & Mining | 10,200 | | 29,265 |
| | Henan Shuanghui Investment & Development Co. Ltd., Class A | Food Products | 13,600 | | 52,642 |
| | Hengan International Group Co. Ltd. | Personal Care Products | 32,750 | | 112,996 |
| franklintempleton.com | Semi-Annual Report | 56 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE China ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | China (continued) | | | | |
| | Hengdian Group DMEGC Magnetics Co. Ltd., Class A | Electronic Equipment, Instruments & Components | 6,800 | | $ 13,787 |
| | Hengli Petrochemical Co. Ltd., Class A | Chemicals | 13,600 | | 30,431 |
| | Hengtong Optic-electric Co. Ltd., Class A | Communications Equipment | 10,200 | | 24,645 |
| | Hengyi Petrochemical Co. Ltd., Class A | Chemicals | 13,600 | | 13,622 |
| | Hesteel Co. Ltd., Class A | Metals & Mining | 47,600 | | 15,099 |
| | Hisense Home Appliances Group Co. Ltd., Class H | Household Durables | 22,000 | | 82,137 |
| | Hithink RoyalFlush Information Network Co. Ltd., Class A | Capital Markets | 2,500 | | 69,053 |
| | HLA Group Corp. Ltd., Class A | Specialty Retail | 23,800 | | 25,777 |
| a | Hopson Development Holdings Ltd. | Real Estate Management & Development | 61,250 | | 38,087 |
| | Hoshine Silicon Industry Co. Ltd., Class A | Chemicals | 3,400 | | 29,163 |
| | Hoyuan Green Energy Co. Ltd., Class A | Semiconductors & Semiconductor Equipment | 3,460 | | 8,385 |
| b | Hua Hong Semiconductor Ltd. | Semiconductors & Semiconductor Equipment | 34,000 | | 91,484 |
| | Huadian Power International Corp. Ltd., Class A | Independent Power Producers & Energy Traders | 30,600 | | 26,190 |
| | Huadian Power International Corp. Ltd., Class H | Independent Power Producers & Energy Traders | 102,000 | | 58,042 |
| | Huadong Medicine Co. Ltd., Class A | Health Care Providers & Services | 10,200 | | 50,995 |
| | Huafon Chemical Co. Ltd., Class A | Chemicals | 17,000 | | 20,404 |
| | Huagong Tech Co. Ltd., Class A | Electronic Equipment, Instruments & Components | 3,400 | | 16,964 |
| | Huaibei Mining Holdings Co. Ltd., Class A | Metals & Mining | 10,200 | | 26,248 |
| | Hualan Biological Engineering, Inc., Class A | Biotechnology | 7,460 | | 19,091 |
| | Huaneng Lancang River Hydropower, Inc., Class A | Independent Power Producers & Energy Traders | 27,200 | | 44,889 |
| | Huaneng Power International, Inc., Class A | Independent Power Producers & Energy Traders | 30,600 | | 33,710 |
| | Huaneng Power International, Inc., Class H | Independent Power Producers & Energy Traders | 236,000 | | 144,927 |
| | Huapont Life Sciences Co. Ltd., Class A | Chemicals | 6,800 | | 4,615 |
| | Huatai Securities Co. Ltd., Class A | Capital Markets | 34,000 | | 85,502 |
| b | Huatai Securities Co. Ltd., Class H | Capital Markets | 74,800 | | 120,566 |
| | Huaxi Securities Co. Ltd., Class A | Capital Markets | 10,200 | | 12,811 |
| | Huaxia Bank Co. Ltd., Class A | Banks | 61,200 | | 64,972 |
| | Huaxin Cement Co. Ltd., Class A | Construction Materials | 6,800 | | 13,826 |
| | Huaxin Cement Co. Ltd., Class H | Construction Materials | 18,200 | | 20,104 |
| | Huayu Automotive Systems Co. Ltd., Class A | Automobile Components | 13,600 | | 34,842 |
| a | Hubei Biocause Pharmaceutical Co. Ltd., Class A | Insurance | 17,000 | | 9,012 |
| | Hubei Energy Group Co. Ltd., Class A | Independent Power Producers & Energy Traders | 30,600 | | 23,348 |
| | Hubei Xingfa Chemicals Group Co. Ltd., Class A | Chemicals | 6,800 | | 21,861 |
| | Huizhou Desay Sv Automotive Co. Ltd., Class A | Automobile Components | 2,300 | | 39,367 |
| | Humanwell Healthcare Group Co. Ltd., Class A | Pharmaceuticals | 6,800 | | 20,491 |
| | Hunan Gold Corp. Ltd., Class A | Metals & Mining | 6,800 | | 17,246 |
| | Hunan Valin Steel Co. Ltd., Class A | Metals & Mining | 27,200 | | 18,266 |
| | Hundsun Technologies, Inc., Class A | Software | 7,706 | | 25,181 |
| a,b,c | Hygeia Healthcare Holdings Co. Ltd., Class C | Health Care Providers & Services | 20,400 | | 62,244 |
| | Hygon Information Technology Co. Ltd., Class A | Semiconductors & Semiconductor Equipment | 10,200 | | 150,523 |
| | IEIT Systems Co. Ltd., Class A | Technology Hardware, Storage & Peripherals | 6,908 | | 40,962 |
| | Iflytek Co. Ltd., Class A | Software | 10,200 | | 64,768 |
| | Imeik Technology Development Co. Ltd., Class A | Biotechnology | 1,120 | | 37,703 |
| | Industrial & Commercial Bank of China Ltd., Class A | Banks | 299,200 | | 264,202 |
| 57 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE China ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | China (continued) | | | | |
| | Industrial & Commercial Bank of China Ltd., Class H | Banks | 4,318,000 | | $ 2,579,404 |
| | Industrial Bank Co. Ltd., Class A | Banks | 81,600 | | 224,676 |
| | Industrial Securities Co. Ltd., Class A | Capital Markets | 35,890 | | 34,974 |
| | Ingenic Semiconductor Co. Ltd., Class A | Semiconductors & Semiconductor Equipment | 2,300 | | 21,335 |
| a | Inner Mongolia BaoTou Steel Union Co. Ltd., Class A | Metals & Mining | 163,200 | | 40,342 |
| | Inner Mongolia Dian Tou Energy Corp. Ltd., Class A | Oil, Gas & Consumable Fuels | 10,200 | | 28,872 |
| | Inner Mongolia ERDOS Resources Co. Ltd., Class A | Metals & Mining | 9,120 | | 13,383 |
| | Inner Mongolia ERDOS Resources Co. Ltd., Class B | Metals & Mining | 26,120 | | 23,978 |
| | Inner Mongolia Junzheng Energy & Chemical Industry Group Co. Ltd., Class A | Chemicals | 34,000 | | 22,299 |
| | Inner Mongolia Yili Industrial Group Co. Ltd., Class A | Food Products | 27,200 | | 112,980 |
| | Inner Mongolia Yitai Coal Co. Ltd., Class B | Oil, Gas & Consumable Fuels | 57,800 | | 123,923 |
| | Inner Mongolia Yuan Xing Energy Co. Ltd., Class A | Chemicals | 17,000 | | 16,372 |
| a,b | Innovent Biologics, Inc., Class B | Biotechnology | 81,000 | | 491,162 |
| | Intco Medical Technology Co. Ltd., Class A | Health Care Equipment & Supplies | 3,490 | | 13,978 |
| a,c | iQIYI, Inc., ADR | Entertainment | 24,854 | | 71,082 |
| a | IRICO Display Devices Co. Ltd., Class A | Electronic Equipment, Instruments & Components | 17,000 | | 18,169 |
| | Isoftstone Information Technology Group Co. Ltd., Class A | IT Services | 3,400 | | 25,029 |
| | JA Solar Technology Co. Ltd., Class A | Semiconductors & Semiconductor Equipment | 14,292 | | 27,671 |
| | Jafron Biomedical Co. Ltd., Class A | Health Care Equipment & Supplies | 3,400 | | 15,905 |
| | Jason Furniture Hangzhou Co. Ltd., Class A | Household Durables | 4,180 | | 18,557 |
| | JCET Group Co. Ltd., Class A | Semiconductors & Semiconductor Equipment | 6,800 | | 34,327 |
| a,b,c | JD Health International, Inc. | Consumer Staples Distribution & Retail | 57,800 | | 260,444 |
| a,b,c | JD Logistics, Inc. | Air Freight & Logistics | 91,800 | | 165,459 |
| c | JD.com, Inc., Class A | Broadline Retail | 146,200 | | 3,145,159 |
| | Jiangsu Eastern Shenghong Co. Ltd., Class A | Chemicals | 17,000 | | 22,542 |
| | Jiangsu Expressway Co. Ltd., Class A | Transportation Infrastructure | 6,800 | | 13,865 |
| | Jiangsu Expressway Co. Ltd., Class H | Transportation Infrastructure | 68,000 | | 68,897 |
| | Jiangsu Hengli Hydraulic Co. Ltd., Class A | Machinery | 4,680 | | 42,128 |
| | Jiangsu Hengrui Pharmaceuticals Co. Ltd., Class A | Pharmaceuticals | 27,200 | | 203,262 |
| | Jiangsu King’s Luck Brewery JSC Ltd., Class A | Beverages | 5,000 | | 36,821 |
| | Jiangsu Linyang Energy Co. Ltd., Class A | Electrical Equipment | 10,200 | | 11,076 |
| | Jiangsu Nhwa Pharmaceutical Co. Ltd., Class A | Pharmaceuticals | 3,400 | | 13,238 |
| | Jiangsu Pacific Quartz Co. Ltd., Class A | Semiconductors & Semiconductor Equipment | 1,800 | | 7,716 |
| | Jiangsu Phoenix Publishing & Media Corp. Ltd., Class A | Media | 10,200 | | 17,504 |
| | Jiangsu Yanghe Distillery Co. Ltd., Class A | Beverages | 6,800 | | 96,375 |
| | Jiangsu Yangnong Chemical Co. Ltd., Class A | Chemicals | 2,170 | | 19,224 |
| | Jiangsu Yoke Technology Co. Ltd., Class A | Chemicals | 3,400 | | 29,819 |
| | Jiangsu Yuyue Medical Equipment & Supply Co. Ltd., Class A | Health Care Equipment & Supplies | 6,800 | | 37,193 |
| | Jiangsu Zhongtian Technology Co. Ltd., Class A | Electrical Equipment | 13,600 | | 30,101 |
| | Jiangxi Copper Co. Ltd., Class A | Metals & Mining | 10,200 | | 35,576 |
| | Jiangxi Copper Co. Ltd., Class H | Metals & Mining | 68,000 | | 138,495 |
| a | Jiangxi Special Electric Motor Co. Ltd., Class A | Electrical Equipment | 6,800 | | 8,356 |
| franklintempleton.com | Semi-Annual Report | 58 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE China ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | China (continued) | | | | |
| | Jilin Aodong Pharmaceutical Group Co. Ltd., Class A | Pharmaceuticals | 6,800 | | $ 16,838 |
| | Jinduicheng Molybdenum Co. Ltd., Class A | Metals & Mining | 13,600 | | 23,124 |
| | Jinko Solar Co. Ltd., Class A | Semiconductors & Semiconductor Equipment | 27,200 | | 34,240 |
| b,c | Jinxin Fertility Group Ltd. | Health Care Providers & Services | 129,500 | | 61,020 |
| | JiuGui Liquor Co. Ltd., Class A | Beverages | 1,600 | | 11,817 |
| b | Jiumaojiu International Holdings Ltd. | Hotels, Restaurants & Leisure | 52,500 | | 33,457 |
| | Jizhong Energy Resources Co. Ltd., Class A | Oil, Gas & Consumable Fuels | 13,600 | | 12,942 |
| | Joincare Pharmaceutical Group Industry Co. Ltd., Class A | Pharmaceuticals | 10,200 | | 17,300 |
| | Joinn Laboratories China Co. Ltd., Class A | Life Sciences Tools & Services | 1,960 | | 5,055 |
| b | Joinn Laboratories China Co. Ltd., Class H | Life Sciences Tools & Services | 6,072 | | 7,653 |
| | Jointown Pharmaceutical Group Co. Ltd., Class A | Health Care Providers & Services | 23,872 | | 19,579 |
| | Jonjee Hi-Tech Industrial & Commercial Holding Co. Ltd., Class A | Food Products | 3,400 | | 11,334 |
| | Joyoung Co. Ltd., Class A | Household Durables | 3,400 | | 5,572 |
| a,c | JOYY, Inc., ADR | Interactive Media & Services | 1,530 | | 55,447 |
| | Juneyao Airlines Co. Ltd., Class A | Passenger Airlines | 10,200 | | 19,850 |
| a | J-Yuan Trust Co. Ltd., Class A | Capital Markets | 40,800 | | 19,063 |
| | Kaishan Group Co. Ltd., Class A | Machinery | 3,400 | | 4,712 |
| c | Kanzhun Ltd., ADR | Interactive Media & Services | 17,238 | | 299,252 |
| c | KE Holdings, Inc., ADR | Real Estate Management & Development | 33,388 | | 664,755 |
| | Keda Industrial Group Co. Ltd., Class A | Machinery | 6,800 | | 8,443 |
| | Kingboard Holdings Ltd. | Electronic Equipment, Instruments & Components | 41,000 | | 103,985 |
| a,c | Kingdee International Software Group Co. Ltd. | Software | 154,000 | | 178,436 |
| | Kingnet Network Co. Ltd., Class A | Entertainment | 10,200 | | 17,329 |
| | Kingsoft Corp. Ltd. | Entertainment | 47,600 | | 181,085 |
| a,b,c | Kuaishou Technology, Class B | Interactive Media & Services | 156,400 | | 1,104,415 |
| a | Kuang-Chi Technologies Co. Ltd., Class A | Aerospace & Defense | 10,200 | | 36,406 |
| | Kunlun Tech Co. Ltd., Class A | Entertainment | 6,000 | | 32,192 |
| | Kweichow Moutai Co. Ltd., Class A | Beverages | 4,850 | | 1,211,348 |
| | Lakala Payment Co. Ltd., Class A | Financial Services | 3,400 | | 8,448 |
| | Lao Feng Xiang Co. Ltd., Class B | Textiles, Apparel & Luxury Goods | 13,600 | | 52,142 |
| | LB Group Co. Ltd., Class A | Chemicals | 10,200 | | 30,271 |
| | Lee & Man Paper Manufacturing Ltd. | Paper & Forest Products | 68,000 | | 24,425 |
| a,b | Legend Holdings Corp., Class H | Technology Hardware, Storage & Peripherals | 30,600 | | 28,246 |
| | Lens Technology Co. Ltd., Class A | Electronic Equipment, Instruments & Components | 20,400 | | 59,609 |
| | Leo Group Co. Ltd., Class A | Media | 37,400 | | 9,886 |
| | Lepu Medical Technology Beijing Co. Ltd., Class A | Health Care Equipment & Supplies | 10,200 | | 19,194 |
| | Levima Advanced Materials Corp., Class A | Chemicals | 3,400 | | 7,894 |
| | Leyard Optoelectronic Co. Ltd., Class A | Electronic Equipment, Instruments & Components | 10,200 | | 7,651 |
| a,c | Li Auto, Inc., Class A | Automobiles | 60,162 | | 837,272 |
| | Li Ning Co. Ltd. | Textiles, Apparel & Luxury Goods | 119,000 | | 301,809 |
| | Liaoning Port Co. Ltd., Class A | Transportation Infrastructure | 78,200 | | 16,649 |
| | Lingyi iTech Guangdong Co., Class A | Electronic Equipment, Instruments & Components | 34,000 | | 36,484 |
| | Livzon Pharmaceutical Group, Inc., Class A | Pharmaceuticals | 3,400 | | 19,748 |
| | Livzon Pharmaceutical Group, Inc., Class H | Pharmaceuticals | 6,800 | | 25,869 |
| b,c | Longfor Group Holdings Ltd. | Real Estate Management & Development | 127,930 | | 247,707 |
| | LONGi Green Energy Technology Co. Ltd., Class A | Semiconductors & Semiconductor Equipment | 30,600 | | 76,777 |
| | Longshine Technology Group Co. Ltd., Class A | Software | 6,800 | | 11,601 |
| a | Loongson Technology Corp. Ltd., Class A | Semiconductors & Semiconductor Equipment | 1,883 | | 32,184 |
| c | Lufax Holding Ltd., ADR | Consumer Finance | 10,079 | | 35,176 |
| | Luxi Chemical Group Co. Ltd., Class A | Chemicals | 6,800 | | 12,155 |
| | Luxshare Precision Industry Co. Ltd., Class A | Electronic Equipment, Instruments & Components | 28,099 | | 174,488 |
| 59 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE China ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | China (continued) | | | | |
| a,b | Luye Pharma Group Ltd. | Pharmaceuticals | 102,000 | | $ 43,991 |
| | Luzhou Laojiao Co. Ltd., Class A | Beverages | 5,600 | | 119,783 |
| a | Maanshan Iron & Steel Co. Ltd., Class A | Metals & Mining | 27,200 | | 9,250 |
| | Mango Excellent Media Co. Ltd., Class A | Entertainment | 7,730 | | 29,070 |
| | Maxscend Microelectronics Co. Ltd., Class A | Electronic Equipment, Instruments & Components | 2,432 | | 32,279 |
| | Meihua Holdings Group Co. Ltd., Class A | Chemicals | 13,600 | | 21,181 |
| | Meinian Onehealth Healthcare Holdings Co. Ltd., Class A | Health Care Providers & Services | 17,000 | | 10,518 |
| a,b,c | Meituan, Class B | Hotels, Restaurants & Leisure | 310,141 | | 6,867,622 |
| | Metallurgical Corp. of China Ltd., Class A | Construction & Engineering | 61,200 | | 29,207 |
| | Metallurgical Corp. of China Ltd., Class H | Construction & Engineering | 170,000 | | 34,799 |
| a | Microport Scientific Corp. | Health Care Equipment & Supplies | 51,000 | | 51,739 |
| a | Midea Group Co. Ltd. | Household Durables | 20,400 | | 195,005 |
| | Ming Yang Smart Energy Group Ltd., Class A | Electrical Equipment | 10,200 | | 15,740 |
| | MINISO Group Holding Ltd. | Broadline Retail | 19,792 | | 94,660 |
| a | Minth Group Ltd. | Automobile Components | 42,750 | | 88,059 |
| | Montage Technology Co. Ltd., Class A | Semiconductors & Semiconductor Equipment | 4,245 | | 40,566 |
| a | Muyuan Foods Co. Ltd., Class A | Food Products | 21,360 | | 141,339 |
| | Nanjing King-Friend Biochemical Pharmaceutical Co. Ltd., Class A | Pharmaceuticals | 4,245 | | 8,825 |
| | NARI Technology Co. Ltd., Class A | Electrical Equipment | 31,688 | | 125,282 |
| | National Silicon Industry Group Co. Ltd., Class A | Semiconductors & Semiconductor Equipment | 13,770 | | 37,344 |
| | NAURA Technology Group Co. Ltd., Class A | Semiconductors & Semiconductor Equipment | 2,200 | | 115,044 |
| a | NavInfo Co. Ltd., Class A | Software | 10,200 | | 13,671 |
| c | NetEase, Inc. | Entertainment | 99,630 | | 1,930,391 |
| | New China Life Insurance Co. Ltd., Class A | Insurance | 10,200 | | 67,654 |
| | New China Life Insurance Co. Ltd., Class H | Insurance | 40,800 | | 127,377 |
| a | New Hope Liuhe Co. Ltd., Class A | Food Products | 20,400 | | 30,344 |
| c | New Oriental Education & Technology Group, Inc. | Diversified Consumer Services | 85,000 | | 678,468 |
| | Newland Digital Technology Co. Ltd., Class A | Software | 3,400 | | 8,312 |
| a | Nine Dragons Paper Holdings Ltd. | Paper & Forest Products | 91,000 | | 48,385 |
| a | Ninestar Corp., Class A | Technology Hardware, Storage & Peripherals | 6,800 | | 29,469 |
| | Ningbo Deye Technology Co. Ltd., Class A | Machinery | 2,464 | | 35,798 |
| | Ningbo Joyson Electronic Corp., Class A | Automobile Components | 6,800 | | 16,760 |
| | Ningbo Orient Wires & Cables Co. Ltd., Class A | Electrical Equipment | 3,400 | | 26,802 |
| | Ningbo Ronbay New Energy Technology Co. Ltd., Class A | Electrical Equipment | 1,410 | | 5,843 |
| | Ningbo Sanxing Medical Electric Co. Ltd., Class A | Electrical Equipment | 6,800 | | 33,900 |
| | Ningbo Shanshan Co. Ltd., Class A | Chemicals | 10,200 | | 13,583 |
| | Ningbo Tuopu Group Co. Ltd., Class A | Automobile Components | 9,770 | | 64,578 |
| | Ningbo Zhoushan Port Co. Ltd., Class A | Transportation Infrastructure | 30,600 | | 16,790 |
| | Ningxia Baofeng Energy Group Co. Ltd., Class A | Chemicals | 10,200 | | 25,286 |
| a,c | NIO, Inc., Class A | Automobiles | 70,040 | | 508,111 |
| b | Nongfu Spring Co. Ltd., Class H | Beverages | 94,800 | | 417,401 |
| | North Industries Group Red Arrow Co. Ltd., Class A | Machinery | 3,400 | | 7,151 |
| | Northeast Securities Co. Ltd., Class A | Capital Markets | 10,200 | | 11,951 |
| | Offshore Oil Engineering Co. Ltd., Class A | Energy Equipment & Services | 17,000 | | 14,137 |
| a | OFILM Group Co. Ltd., Class A | Electronic Equipment, Instruments & Components | 13,600 | | 19,335 |
| | Oppein Home Group, Inc., Class A | Household Durables | 900 | | 8,037 |
| | ORG Technology Co. Ltd., Class A | Containers & Packaging | 10,200 | | 7,243 |
| | Orient Securities Co. Ltd., Class A | Capital Markets | 31,224 | | 49,567 |
| b | Orient Securities Co. Ltd., Class H | Capital Markets | 40,800 | | 26,316 |
| franklintempleton.com | Semi-Annual Report | 60 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE China ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | China (continued) | | | | |
| a | Oriental Energy Co. Ltd., Class A | Oil, Gas & Consumable Fuels | 6,800 | | $ 9,425 |
| a | Ourpalm Co. Ltd., Class A | Entertainment | 10,200 | | 8,060 |
| | Ovctek China, Inc., Class A | Health Care Equipment & Supplies | 4,120 | | 12,198 |
| a | Pangang Group Vanadium Titanium & Resources Co. Ltd., Class A | Metals & Mining | 37,400 | | 15,764 |
| a,c | PDD Holdings, Inc., ADR | Broadline Retail | 38,896 | | 5,243,570 |
| | People.cn Co. Ltd., Class A | Media | 5,400 | | 18,140 |
| | People’s Insurance Co. Group of China Ltd., Class A | Insurance | 51,000 | | 54,216 |
| | People’s Insurance Co. Group of China Ltd., Class H | Insurance | 442,000 | | 211,113 |
| | Perfect World Co. Ltd., Class A | Entertainment | 3,400 | | 4,664 |
| | PetroChina Co. Ltd., Class A | Oil, Gas & Consumable Fuels | 98,600 | | 127,078 |
| | PetroChina Co. Ltd., Class H | Oil, Gas & Consumable Fuels | 1,140,000 | | 930,492 |
| | Pharmaron Beijing Co. Ltd., Class A | Life Sciences Tools & Services | 6,850 | | 29,705 |
| b | Pharmaron Beijing Co. Ltd., Class H | Life Sciences Tools & Services | 17,400 | | 33,602 |
| | PICC Property & Casualty Co. Ltd., Class H | Insurance | 364,000 | | 539,849 |
| | Ping An Bank Co. Ltd., Class A | Banks | 74,800 | | 130,498 |
| a,b | Ping An Healthcare & Technology Co. Ltd. | Consumer Staples Distribution & Retail | 30,600 | | 57,123 |
| | Ping An Insurance Group Co. of China Ltd., Class A | Insurance | 44,200 | | 360,552 |
| c | Ping An Insurance Group Co. of China Ltd., Class H | Insurance | 345,350 | | 2,229,714 |
| | Pingdingshan Tianan Coal Mining Co. Ltd., Class A | Oil, Gas & Consumable Fuels | 10,200 | | 15,973 |
| | Poly Developments & Holdings Group Co. Ltd., Class A | Real Estate Management & Development | 47,600 | | 75,018 |
| e | Poly Property Services Co. Ltd., Class H | Real Estate Management & Development | 7,800 | | 34,594 |
| b | Pop Mart International Group Ltd. | Specialty Retail | 34,000 | | 233,087 |
| | Postal Savings Bank of China Co. Ltd., Class A | Banks | 91,800 | | 68,994 |
| b | Postal Savings Bank of China Co. Ltd., Class H | Banks | 578,000 | | 346,019 |
| | Power Construction Corp. of China Ltd., Class A | Construction & Engineering | 71,400 | | 57,539 |
| | Pylon Technologies Co. Ltd., Class A | Electrical Equipment | 854 | | 6,163 |
| c | Qifu Technology, Inc., ADR | Consumer Finance | 6,222 | | 185,478 |
| | Qingdao TGOOD Electric Co. Ltd., Class A | Electrical Equipment | 3,400 | | 10,688 |
| a | Qinghai Salt Lake Industry Co. Ltd., Class A | Chemicals | 23,800 | | 63,116 |
| | Raytron Technology Co. Ltd., Class A | Electronic Equipment, Instruments & Components | 1,517 | | 8,547 |
| a,b | Red Star Macalline Group Corp. Ltd., Class H | Real Estate Management & Development | 42,000 | | 11,517 |
| a,b | Remegen Co. Ltd., Class H | Biotechnology | 7,500 | | 16,511 |
| c | RLX Technology, Inc., ADR | Tobacco | 42,296 | | 76,556 |
| | Rongsheng Petrochemical Co. Ltd., Class A | Chemicals | 40,800 | | 60,337 |
| | SAIC Motor Corp. Ltd., Class A | Automobiles | 34,000 | | 71,074 |
| | Sailun Group Co. Ltd., Class A | Automobile Components | 13,600 | | 31,169 |
| | Sanan Optoelectronics Co. Ltd., Class A | Semiconductors & Semiconductor Equipment | 23,800 | | 42,372 |
| a | Sansteel Minguang Co. Ltd. Fujian, Class A | Metals & Mining | 10,200 | | 5,232 |
| | Sany Heavy Equipment International Holdings Co. Ltd. | Machinery | 49,000 | | 36,715 |
| | Sany Heavy Industry Co. Ltd., Class A | Machinery | 34,000 | | 91,721 |
| | Satellite Chemical Co. Ltd., Class A | Chemicals | 13,646 | | 36,403 |
| | SDIC Capital Co. Ltd., Class A | Capital Markets | 20,400 | | 23,785 |
| | SDIC Power Holdings Co. Ltd., Class A | Independent Power Producers & Energy Traders | 30,600 | | 74,110 |
| | Sealand Securities Co. Ltd., Class A | Capital Markets | 26,400 | | 18,220 |
| a | Seazen Group Ltd. | Real Estate Management & Development | 136,000 | | 44,472 |
| a | Seazen Holdings Co. Ltd., Class A | Real Estate Management & Development | 10,100 | | 20,723 |
| a,b,c | SenseTime Group, Inc., Class B | Software | 1,326,000 | | 293,623 |
| a | Seres Group Co. Ltd., Class A | Automobiles | 6,800 | | 87,854 |
| 61 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE China ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | China (continued) | | | | |
| | SF Holding Co. Ltd., Class A | Air Freight & Logistics | 20,400 | | $ 131,110 |
| | SG Micro Corp., Class A | Semiconductors & Semiconductor Equipment | 2,657 | | 36,066 |
| | Shaanxi Coal Industry Co. Ltd., Class A | Oil, Gas & Consumable Fuels | 37,400 | | 147,384 |
| | Shaanxi International Trust Co. Ltd., Class A | Capital Markets | 23,800 | | 12,718 |
| | Shan Xi Hua Yang Group New Energy Co. Ltd., Class A | Oil, Gas & Consumable Fuels | 15,050 | | 18,214 |
| a | Shandong Chenming Paper Holdings Ltd., Class B | Paper & Forest Products | 40,800 | | 8,194 |
| a | Shandong Chenming Paper Holdings Ltd., Class H | Paper & Forest Products | 17,000 | | 4,136 |
| | Shandong Denghai Seeds Co. Ltd., Class A | Food Products | 3,400 | | 4,693 |
| | Shandong Gold Mining Co. Ltd., Class A | Metals & Mining | 14,284 | | 59,780 |
| b | Shandong Gold Mining Co. Ltd., Class H | Metals & Mining | 42,500 | | 95,752 |
| | Shandong Himile Mechanical Science & Technology Co. Ltd., Class A | Machinery | 3,400 | | 22,483 |
| | Shandong Hi-speed Co. Ltd., Class A | Transportation Infrastructure | 13,600 | | 17,897 |
| | Shandong Hualu Hengsheng Chemical Co. Ltd., Class A | Chemicals | 10,280 | | 38,469 |
| | Shandong Humon Smelting Co. Ltd., Class A | Metals & Mining | 3,400 | | 5,465 |
| | Shandong Linglong Tyre Co. Ltd., Class A | Automobile Components | 3,400 | | 9,784 |
| | Shandong Nanshan Aluminum Co. Ltd., Class A | Metals & Mining | 47,600 | | 29,790 |
| | Shandong Pharmaceutical Glass Co. Ltd., Class A | Health Care Equipment & Supplies | 3,400 | | 14,147 |
| | Shandong Sun Paper Industry JSC Ltd., Class A | Paper & Forest Products | 10,200 | | 21,978 |
| | Shandong Weigao Group Medical Polymer Co. Ltd., Class H | Health Care Equipment & Supplies | 136,000 | | 98,400 |
| a | Shanghai Aiko Solar Energy Co. Ltd., Class A | Semiconductors & Semiconductor Equipment | 6,860 | | 10,096 |
| a | Shanghai Bairun Investment Holding Group Co. Ltd., Class A | Beverages | 4,440 | | 14,623 |
| | Shanghai Baosight Software Co. Ltd., Class A | Software | 5,303 | | 24,997 |
| | Shanghai Baosight Software Co. Ltd., Class B | Software | 40,834 | | 70,030 |
| | Shanghai BOCHU Electronic Technology Corp. Ltd., Class A | Electronic Equipment, Instruments & Components | 716 | | 21,557 |
| | Shanghai Construction Group Co. Ltd., Class A | Construction & Engineering | 30,600 | | 10,712 |
| a | Shanghai Electric Group Co. Ltd., Class A | Electrical Equipment | 40,800 | | 26,350 |
| a | Shanghai Electric Group Co. Ltd., Class H | Electrical Equipment | 136,000 | | 30,641 |
| | Shanghai Electric Power Co. Ltd., Class A | Independent Power Producers & Energy Traders | 13,600 | | 18,791 |
| | Shanghai Fosun Pharmaceutical Group Co. Ltd., Class A | Pharmaceuticals | 10,200 | | 40,327 |
| | Shanghai Fosun Pharmaceutical Group Co. Ltd., Class H | Pharmaceuticals | 34,000 | | 68,197 |
| | Shanghai Fudan Microelectronics Group Co. Ltd., Class A | Semiconductors & Semiconductor Equipment | 891 | | 4,502 |
| | Shanghai Fudan Microelectronics Group Co. Ltd., Class H | Semiconductors & Semiconductor Equipment | 15,000 | | 27,306 |
| | Shanghai International Airport Co. Ltd., Class A | Transportation Infrastructure | 10,200 | | 55,994 |
| | Shanghai International Port Group Co. Ltd., Class A | Transportation Infrastructure | 40,800 | | 37,893 |
| | Shanghai Jinjiang International Hotels Co. Ltd., Class A | Hotels, Restaurants & Leisure | 3,400 | | 15,220 |
| | Shanghai Jinjiang International Hotels Co. Ltd., Class B | Hotels, Restaurants & Leisure | 10,200 | | 16,565 |
| | Shanghai Jinqiao Export Processing Zone Development Co. Ltd., Class A | Real Estate Management & Development | 3,400 | | 5,844 |
| franklintempleton.com | Semi-Annual Report | 62 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE China ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | China (continued) | | | | |
| | Shanghai Jinqiao Export Processing Zone Development Co. Ltd., Class B | Real Estate Management & Development | 13,600 | | $ 12,104 |
| a | Shanghai Junshi Biosciences Co. Ltd., Class A | Biotechnology | 3,185 | | 14,467 |
| a,b | Shanghai Junshi Biosciences Co. Ltd., Class H | Biotechnology | 6,800 | | 13,744 |
| | Shanghai Lingang Holdings Corp. Ltd., Class A | Real Estate Management & Development | 7,600 | | 12,412 |
| | Shanghai Lujiazui Finance & Trade Zone Development Co. Ltd., Class A | Real Estate Management & Development | 10,200 | | 16,032 |
| | Shanghai Lujiazui Finance & Trade Zone Development Co. Ltd., Class B | Real Estate Management & Development | 61,200 | | 35,006 |
| | Shanghai Mechanical & Electrical Industry Co. Ltd., Class B | Machinery | 13,600 | | 13,845 |
| | Shanghai Moons’ Electric Co. Ltd., Class A | Electrical Equipment | 3,400 | | 23,319 |
| | Shanghai Pharmaceuticals Holding Co. Ltd., Class A | Health Care Providers & Services | 13,600 | | 41,099 |
| | Shanghai Pharmaceuticals Holding Co. Ltd., Class H | Health Care Providers & Services | 47,600 | | 77,704 |
| | Shanghai Pudong Development Bank Co. Ltd., Class A | Banks | 115,615 | | 167,344 |
| | Shanghai Putailai New Energy Technology Co. Ltd., Class A | Chemicals | 8,279 | | 17,685 |
| | Shanghai RAAS Blood Products Co. Ltd., Class A | Biotechnology | 34,000 | | 38,379 |
| | Shanghai Rural Commercial Bank Co. Ltd., Class A | Banks | 13,600 | | 14,438 |
| | Shanghai Tunnel Engineering Co. Ltd., Class A | Construction & Engineering | 17,000 | | 16,080 |
| | Shanghai Waigaoqiao Free Trade Zone Group Co. Ltd., Class B | Trading Companies & Distributors | 13,600 | | 10,771 |
| | Shanghai Yuyuan Tourist Mart Group Co. Ltd., Class A | Specialty Retail | 17,000 | | 15,497 |
| | Shanghai Zhangjiang High-Tech Park Development Co. Ltd., Class A | Real Estate Management & Development | 6,800 | | 23,192 |
| | Shanghai Zhenhua Heavy Industries Co. Ltd., Class B | Machinery | 61,200 | | 14,260 |
| | Shanjin International Gold Co. Ltd., Class A | Metals & Mining | 10,400 | | 27,654 |
| | Shanxi Coking Coal Energy Group Co. Ltd., Class A | Oil, Gas & Consumable Fuels | 23,800 | | 32,510 |
| | Shanxi Lu’an Environmental Energy Development Co. Ltd., Class A | Oil, Gas & Consumable Fuels | 13,600 | | 34,298 |
| a | Shanxi Meijin Energy Co. Ltd., Class A | Metals & Mining | 20,400 | | 15,128 |
| | Shanxi Securities Co. Ltd., Class A | Capital Markets | 17,200 | | 16,220 |
| a | Shanxi Taigang Stainless Steel Co. Ltd., Class A | Metals & Mining | 27,200 | | 15,313 |
| | Shanxi Xinghuacun Fen Wine Factory Co. Ltd., Class A | Beverages | 4,820 | | 150,750 |
| | Shenergy Co. Ltd., Class A | Independent Power Producers & Energy Traders | 20,400 | | 24,893 |
| | Shenghe Resources Holding Co. Ltd., Class A | Metals & Mining | 6,800 | | 9,765 |
| | Shengyi Technology Co. Ltd., Class A | Electronic Equipment, Instruments & Components | 10,200 | | 30,373 |
| | Shennan Circuits Co. Ltd., Class A | Electronic Equipment, Instruments & Components | 600 | | 9,514 |
| | Shenwan Hongyuan Group Co. Ltd., Class A | Capital Markets | 102,000 | | 83,365 |
| b | Shenwan Hongyuan Group Co. Ltd., Class H | Capital Markets | 81,600 | | 21,536 |
| | Shenzhen Agricultural Products Group Co. Ltd., Class A | Consumer Staples Distribution & Retail | 6,800 | | 6,150 |
| | Shenzhen Airport Co. Ltd., Class A | Transportation Infrastructure | 6,800 | | 6,889 |
| | Shenzhen Capchem Technology Co. Ltd., Class A | Chemicals | 3,480 | | 20,213 |
| a | Shenzhen Dynanonic Co. Ltd., Class A | Chemicals | 864 | | 4,920 |
| | Shenzhen Energy Group Co. Ltd., Class A | Independent Power Producers & Energy Traders | 20,400 | | 20,375 |
| 63 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE China ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | China (continued) | | | | |
| a | Shenzhen Everwin Precision Technology Co. Ltd., Class A | Electronic Equipment, Instruments & Components | 6,800 | | $ 13,360 |
| | Shenzhen Expressway Corp. Ltd., Class H | Transportation Infrastructure | 38,000 | | 34,050 |
| | Shenzhen Gas Corp. Ltd., Class A | Gas Utilities | 10,900 | | 11,759 |
| | Shenzhen Goodix Technology Co. Ltd., Class A | Semiconductors & Semiconductor Equipment | 3,400 | | 33,987 |
| | Shenzhen Huaqiang Industry Co. Ltd., Class A | Electronic Equipment, Instruments & Components | 3,400 | | 14,278 |
| | Shenzhen Inovance Technology Co. Ltd., Class A | Machinery | 10,350 | | 92,355 |
| | Shenzhen International Holdings Ltd. | Transportation Infrastructure | 85,000 | | 75,616 |
| | Shenzhen Investment Ltd. | Real Estate Management & Development | 136,000 | | 17,684 |
| | Shenzhen Kaifa Technology Co. Ltd., Class A | Electronic Equipment, Instruments & Components | 6,800 | | 16,061 |
| | Shenzhen Kangtai Biological Products Co. Ltd., Class A | Biotechnology | 4,960 | | 13,869 |
| | Shenzhen Kedali Industry Co. Ltd., Class A | Automobile Components | 1,800 | | 24,986 |
| | Shenzhen Kingdom Sci-Tech Co. Ltd., Class A | Software | 3,300 | | 6,498 |
| | Shenzhen Mindray Bio-Medical Electronics Co. Ltd., Class A | Health Care Equipment & Supplies | 4,900 | | 205,140 |
| | Shenzhen MTC Co. Ltd., Class A | Household Durables | 23,800 | | 18,296 |
| a | Shenzhen Overseas Chinese Town Co. Ltd., Class A | Real Estate Management & Development | 36,300 | | 15,145 |
| | Shenzhen Salubris Pharmaceuticals Co. Ltd., Class A | Pharmaceuticals | 4,400 | | 21,791 |
| | Shenzhen SC New Energy Technology Corp., Class A | Semiconductors & Semiconductor Equipment | 1,100 | | 10,678 |
| | Shenzhen Senior Technology Material Co. Ltd., Class A | Chemicals | 6,800 | | 9,998 |
| | Shenzhen Sunway Communication Co. Ltd., Class A | Communications Equipment | 3,400 | | 11,271 |
| | Shenzhen Transsion Holdings Co. Ltd., Class A | Technology Hardware, Storage & Peripherals | 4,314 | | 66,529 |
| | Shenzhen Yan Tian Port Holding Co. Ltd., Class A | Transportation Infrastructure | 10,200 | | 7,447 |
| | Shenzhen YUTO Packaging Technology Co. Ltd., Class A | Containers & Packaging | 3,400 | | 12,495 |
| | Shenzhen Zhongjin Lingnan Nonfemet Co. Ltd., Class A | Metals & Mining | 17,000 | | 12,048 |
| a | Shijiazhuang Changshan BeiMing Technology Co. Ltd., Class A | Textiles, Apparel & Luxury Goods | 6,800 | | 12,816 |
| | Shijiazhuang Yiling Pharmaceutical Co. Ltd., Class A | Pharmaceuticals | 7,480 | | 19,259 |
| a | Siasun Robot & Automation Co. Ltd., Class A | Machinery | 6,800 | | 12,009 |
| | Sichuan Changhong Electric Co. Ltd., Class A | Household Durables | 20,400 | | 17,227 |
| | Sichuan Chuantou Energy Co. Ltd., Class A | Independent Power Producers & Energy Traders | 20,400 | | 54,945 |
| a | Sichuan Hebang Biotechnology Co. Ltd., Class A | Chemicals | 40,800 | | 12,184 |
| | Sichuan Kelun Pharmaceutical Co. Ltd., Class A | Pharmaceuticals | 6,800 | | 31,092 |
| a | Sichuan Kelun-Biotech Biopharmaceutical Co. Ltd. | Biotechnology | 1,900 | | 44,984 |
| a | Sichuan New Energy Power Co. Ltd., Class A | Independent Power Producers & Energy Traders | 6,800 | | 11,417 |
| | Sichuan Road & Bridge Group Co. Ltd., Class A | Construction & Engineering | 28,360 | | 28,487 |
| | Sichuan Swellfun Co. Ltd., Class A | Beverages | 2,400 | | 15,750 |
| | Sichuan Yahua Industrial Group Co. Ltd., Class A | Chemicals | 3,400 | | 5,281 |
| | Sieyuan Electric Co. Ltd., Class A | Electrical Equipment | 3,400 | | 35,901 |
| | Sinoma International Engineering Co., Class A | Construction & Engineering | 10,200 | | 16,760 |
| franklintempleton.com | Semi-Annual Report | 64 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE China ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | China (continued) | | | | |
| | Sinoma Science & Technology Co. Ltd., Class A | Chemicals | 6,800 | | $ 12,408 |
| | Sinomine Resource Group Co. Ltd., Class A | Metals & Mining | 3,440 | | 17,960 |
| | Sinopec Engineering Group Co. Ltd., Class H | Construction & Engineering | 85,000 | | 58,874 |
| a | Sinopec Oilfield Service Corp., Class H | Energy Equipment & Services | 136,000 | | 10,505 |
| a | Sinopec Shanghai Petrochemical Co. Ltd., Class A | Chemicals | 27,200 | | 11,621 |
| a | Sinopec Shanghai Petrochemical Co. Ltd., Class H | Chemicals | 204,000 | | 31,516 |
| | Sinopharm Group Co. Ltd., Class H | Health Care Providers & Services | 69,200 | | 185,305 |
| | Sinotrans Ltd., Class A | Air Freight & Logistics | 17,000 | | 13,408 |
| | Sinotrans Ltd., Class H | Air Freight & Logistics | 102,000 | | 52,264 |
| | Sinotruk Hong Kong Ltd. | Machinery | 34,000 | | 102,208 |
| | Skshu Paint Co. Ltd., Class A | Chemicals | 3,372 | | 19,017 |
| b | Smoore International Holdings Ltd. | Tobacco | 96,610 | | 160,447 |
| | Songcheng Performance Development Co. Ltd., Class A | Hotels, Restaurants & Leisure | 10,860 | | 16,324 |
| | SooChow Securities Co. Ltd., Class A | Capital Markets | 20,604 | | 24,788 |
| | Southwest Securities Co. Ltd., Class A | Capital Markets | 30,600 | | 21,293 |
| | Spring Airlines Co. Ltd., Class A | Passenger Airlines | 3,900 | | 34,444 |
| | StarPower Semiconductor Ltd., Class A | Semiconductors & Semiconductor Equipment | 1,260 | | 16,428 |
| | STO Express Co. Ltd., Class A | Air Freight & Logistics | 6,800 | | 11,203 |
| | Sun Art Retail Group Ltd. | Consumer Staples Distribution & Retail | 115,500 | | 26,617 |
| | Sungrow Power Supply Co. Ltd., Class A | Electrical Equipment | 8,440 | | 120,088 |
| | Sunny Optical Technology Group Co. Ltd. | Electronic Equipment, Instruments & Components | 37,400 | | 276,859 |
| | Sunresin New Materials Co. Ltd., Class A | Chemicals | 3,400 | | 27,536 |
| | Sunwoda Electronic Co. Ltd., Class A | Electrical Equipment | 6,800 | | 21,337 |
| | SUPCON Technology Co. Ltd., Class A | Electronic Equipment, Instruments & Components | 3,300 | | 23,722 |
| | Suzhou Dongshan Precision Manufacturing Co. Ltd., Class A | Electronic Equipment, Instruments & Components | 6,800 | | 22,872 |
| | Suzhou Maxwell Technologies Co. Ltd., Class A | Semiconductors & Semiconductor Equipment | 1,024 | | 15,498 |
| | Suzhou TFC Optical Communication Co. Ltd., Class A | Communications Equipment | 2,100 | | 30,156 |
| | Taiji Computer Corp. Ltd., Class A | IT Services | 3,400 | | 9,974 |
| a,c | TAL Education Group, ADR | Diversified Consumer Services | 22,882 | | 270,923 |
| a | Tangshan Jidong Cement Co. Ltd., Class A | Construction Materials | 13,600 | | 10,843 |
| | TangShan Port Group Co. Ltd., Class A | Transportation Infrastructure | 23,800 | | 17,581 |
| | Tangshan Sanyou Chemical Industries Co. Ltd., Class A | Chemicals | 10,400 | | 8,767 |
| | TBEA Co. Ltd., Class A | Electrical Equipment | 21,020 | | 43,970 |
| | TCL Technology Group Corp., Class A | Electronic Equipment, Instruments & Components | 74,880 | | 49,002 |
| | TCL Zhonghuan Renewable Energy Technology Co. Ltd., Class A | Semiconductors & Semiconductor Equipment | 17,000 | | 25,165 |
| c | Tencent Holdings Ltd. | Interactive Media & Services | 341,014 | | 19,519,128 |
| c | Tencent Music Entertainment Group, ADR | Entertainment | 40,358 | | 486,314 |
| | Thunder Software Technology Co. Ltd., Class A | Software | 1,500 | | 11,263 |
| | Tian Di Science & Technology Co. Ltd., Class A | Machinery | 17,000 | | 15,837 |
| | Tianjin Chase Sun Pharmaceutical Co. Ltd., Class A | Pharmaceuticals | 13,600 | | 7,909 |
| a | Tianma Microelectronics Co. Ltd., Class A | Electronic Equipment, Instruments & Components | 13,600 | | 15,721 |
| | Tianqi Lithium Corp., Class A | Chemicals | 6,800 | | 34,201 |
| | Tianqi Lithium Corp., Class H | Chemicals | 6,800 | | 24,162 |
| | Tianshan Aluminum Group Co. Ltd., Class A | Metals & Mining | 10,200 | | 12,476 |
| | TianShan Material Co. Ltd., Class A | Construction Materials | 17,000 | | 13,846 |
| | Tianshui Huatian Technology Co. Ltd., Class A | Semiconductors & Semiconductor Equipment | 17,000 | | 22,687 |
| | Tingyi Cayman Islands Holding Corp. | Food Products | 105,000 | | 151,670 |
| 65 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE China ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | China (continued) | | | | |
| | Titan Wind Energy Suzhou Co. Ltd., Class A | Electrical Equipment | 6,800 | | $ 8,434 |
| c,e | Tongcheng Travel Holdings Ltd. | Hotels, Restaurants & Leisure | 64,400 | | 165,488 |
| | TongFu Microelectronics Co. Ltd., Class A | Semiconductors & Semiconductor Equipment | 6,800 | | 22,240 |
| | Tongkun Group Co. Ltd., Class A | Chemicals | 10,200 | | 19,734 |
| | Tongling Nonferrous Metals Group Co. Ltd., Class A | Metals & Mining | 47,600 | | 26,253 |
| | Tongwei Co. Ltd., Class A | Semiconductors & Semiconductor Equipment | 20,400 | | 66,546 |
| | Topchoice Medical Corp., Class A | Health Care Providers & Services | 1,680 | | 14,069 |
| b | Topsports International Holdings Ltd. | Specialty Retail | 170,000 | | 75,507 |
| | Towngas Smart Energy Co. Ltd. | Gas Utilities | 68,000 | | 28,627 |
| | TravelSky Technology Ltd., Class H | Hotels, Restaurants & Leisure | 49,000 | | 72,924 |
| | Trina Solar Co. Ltd., Class A | Semiconductors & Semiconductor Equipment | 9,418 | | 30,170 |
| a,c | Trip.com Group Ltd. | Hotels, Restaurants & Leisure | 30,879 | | 1,951,927 |
| | Tsingtao Brewery Co. Ltd., Class A | Beverages | 3,400 | | 38,063 |
| | Tsingtao Brewery Co. Ltd., Class H | Beverages | 34,791 | | 272,326 |
| | Unigroup Guoxin Microelectronics Co. Ltd., Class A | Semiconductors & Semiconductor Equipment | 3,499 | | 31,182 |
| | Uni-President China Holdings Ltd. | Food Products | 68,000 | | 63,820 |
| | Unisplendour Corp. Ltd., Class A | Electronic Equipment, Instruments & Components | 6,800 | | 23,455 |
| | Universal Scientific Industrial Shanghai Co. Ltd., Class A | Electronic Equipment, Instruments & Components | 3,400 | | 7,758 |
| | Valiant Co. Ltd., Class A | Chemicals | 3,400 | | 5,038 |
| c | Vipshop Holdings Ltd., ADR | Broadline Retail | 18,938 | | 297,895 |
| | Walvax Biotechnology Co. Ltd., Class A | Biotechnology | 6,800 | | 14,302 |
| a | Wanda Film Holding Co. Ltd., Class A | Entertainment | 10,200 | | 18,203 |
| | Wangsu Science & Technology Co. Ltd., Class A | IT Services | 10,200 | | 13,627 |
| | Wanhua Chemical Group Co. Ltd., Class A | Chemicals | 13,600 | | 177,456 |
| | Want Want China Holdings Ltd. | Food Products | 238,000 | | 163,620 |
| | Wanxiang Qianchao Co. Ltd., Class A | Automobile Components | 17,500 | | 14,003 |
| c | Weibo Corp., ADR | Interactive Media & Services | 4,114 | | 41,469 |
| | Weichai Power Co. Ltd., Class A | Machinery | 27,200 | | 61,678 |
| | Weichai Power Co. Ltd., Class H | Machinery | 102,000 | | 188,570 |
| | Weifu High-Technology Group Co. Ltd., Class A | Automobile Components | 3,400 | | 9,313 |
| | Weifu High-Technology Group Co. Ltd., Class B | Automobile Components | 10,200 | | 16,677 |
| | Wens Foodstuff Group Co. Ltd., Class A | Food Products | 27,200 | | 78,273 |
| | Western Mining Co. Ltd., Class A | Metals & Mining | 10,200 | | 27,647 |
| | Western Securities Co. Ltd., Class A | Capital Markets | 20,400 | | 25,330 |
| | Western Superconducting Technologies Co. Ltd., Class A | Metals & Mining | 3,099 | | 20,555 |
| | Will Semiconductor Co. Ltd. Shanghai, Class A | Semiconductors & Semiconductor Equipment | 4,600 | | 70,459 |
| | Wingtech Technology Co. Ltd., Class A | Electronic Equipment, Instruments & Components | 4,800 | | 22,448 |
| | Winning Health Technology Group Co. Ltd., Class A | Health Care Technology | 11,100 | | 11,721 |
| | Wolong Electric Group Co. Ltd., Class A | Electrical Equipment | 6,800 | | 12,359 |
| | Wuchan Zhongda Group Co. Ltd., Class A | Distributors | 27,200 | | 19,821 |
| | Wuhan Guide Infrared Co. Ltd., Class A | Electronic Equipment, Instruments & Components | 24,474 | | 25,668 |
| | Wuliangye Yibin Co. Ltd., Class A | Beverages | 15,300 | | 355,269 |
| | WUS Printed Circuit Kunshan Co. Ltd., Class A | Electronic Equipment, Instruments & Components | 7,570 | | 43,439 |
| | WuXi AppTec Co. Ltd., Class A | Life Sciences Tools & Services | 10,200 | | 76,311 |
| b | WuXi AppTec Co. Ltd., Class H | Life Sciences Tools & Services | 18,520 | | 130,182 |
| a,b | Wuxi Biologics Cayman, Inc. | Life Sciences Tools & Services | 198,839 | | 447,980 |
| | XCMG Construction Machinery Co. Ltd., Class A | Machinery | 47,600 | | 52,846 |
| | Xiamen C & D, Inc., Class A | Trading Companies & Distributors | 13,600 | | 19,840 |
| | Xiamen Faratronic Co. Ltd., Class A | Electronic Equipment, Instruments & Components | 800 | | 11,797 |
| | Xiamen ITG Group Corp. Ltd., Class A | Trading Companies & Distributors | 10,200 | | 10,814 |
| franklintempleton.com | Semi-Annual Report | 66 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE China ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | China (continued) | | | | |
| | Xiamen Tungsten Co. Ltd., Class A | Metals & Mining | 6,800 | | $ 20,326 |
| | Xiangcai Co. Ltd., Class A | Real Estate Management & Development | 13,600 | | 15,565 |
| a,b,c | Xiaomi Corp., Class B | Technology Hardware, Storage & Peripherals | 802,400 | | 2,324,300 |
| | Xinjiang Daqo New Energy Co. Ltd., Class A | Semiconductors & Semiconductor Equipment | 2,756 | | 10,317 |
| | Xinxing Ductile Iron Pipes Co. Ltd., Class A | Metals & Mining | 17,000 | | 9,279 |
| | Xinyi Solar Holdings Ltd. | Semiconductors & Semiconductor Equipment | 237,010 | | 128,765 |
| a,c | XPeng, Inc., Class A | Automobiles | 71,400 | | 486,724 |
| | Xtep International Holdings Ltd. | Textiles, Apparel & Luxury Goods | 68,000 | | 52,877 |
| | Xuji Electric Co. Ltd., Class A | Electrical Equipment | 6,800 | | 33,220 |
| b | Yadea Group Holdings Ltd. | Automobiles | 68,000 | | 120,986 |
| | Yangling Metron New Material, Inc., Class A | Semiconductors & Semiconductor Equipment | 3,400 | | 11,387 |
| a,d | Yango Group Co. Ltd., Class A | Real Estate Management & Development | 20,300 | | — |
| b | Yangtze Optical Fibre & Cable Joint Stock Co. Ltd., Class H | Communications Equipment | 8,500 | | 10,429 |
| | Yangzhou Yangjie Electronic Technology Co. Ltd., Class A | Semiconductors & Semiconductor Equipment | 3,400 | | 22,056 |
| | Yangzijiang Shipbuilding Holdings Ltd. | Machinery | 139,400 | | 266,404 |
| | Yankuang Energy Group Co. Ltd., Class A | Oil, Gas & Consumable Fuels | 22,050 | | 52,615 |
| | Yankuang Energy Group Co. Ltd., Class H | Oil, Gas & Consumable Fuels | 167,650 | | 236,987 |
| | Yantai Changyu Pioneer Wine Co. Ltd., Class B | Beverages | 13,600 | | 16,563 |
| | Yantai Eddie Precision Machinery Co. Ltd., Class A | Machinery | 4,160 | | 10,200 |
| | Yantai Jereh Oilfield Services Group Co. Ltd., Class A | Energy Equipment & Services | 6,800 | | 31,966 |
| | Yealink Network Technology Corp. Ltd., Class A | Communications Equipment | 4,560 | | 27,548 |
| | Yifan Pharmaceutical Co. Ltd., Class A | Pharmaceuticals | 6,800 | | 12,291 |
| | Yifeng Pharmacy Chain Co. Ltd., Class A | Consumer Staples Distribution & Retail | 5,583 | | 20,358 |
| | Yihai International Holding Ltd. | Food Products | 26,500 | | 54,928 |
| | Yihai Kerry Arawana Holdings Co. Ltd., Class A | Food Products | 8,800 | | 44,625 |
| | Yixintang Pharmaceutical Group Co. Ltd., Class A | Consumer Staples Distribution & Retail | 3,400 | | 7,253 |
| | Yonfer Agricultural Technology Co. Ltd., Class A | Chemicals | 6,800 | | 13,117 |
| | YongXing Special Materials Technology Co. Ltd., Class A | Metals & Mining | 3,430 | | 20,393 |
| a | Yonyou Network Technology Co. Ltd., Class A | Software | 14,590 | | 23,974 |
| | Youngor Fashion Co. Ltd., Class A | Real Estate Management & Development | 20,400 | | 23,552 |
| | Youngy Co. Ltd., Class A | Metals & Mining | 1,000 | | 5,412 |
| | YTO Express Group Co. Ltd., Class A | Air Freight & Logistics | 13,600 | | 34,687 |
| | Yuan Longping High-tech Agriculture Co. Ltd., Class A | Food Products | 6,800 | | 11,086 |
| | Yuexiu Property Co. Ltd. | Real Estate Management & Development | 102,000 | | 83,517 |
| | Yum China Holdings, Inc. | Hotels, Restaurants & Leisure | 21,050 | | 997,826 |
| | Yunnan Aluminium Co. Ltd., Class A | Metals & Mining | 13,690 | | 28,931 |
| | Yunnan Baiyao Group Co. Ltd., Class A | Pharmaceuticals | 7,180 | | 62,581 |
| | Yunnan Botanee Bio-Technology Group Co. Ltd., Class A | Personal Care Products | 1,700 | | 15,162 |
| | Yunnan Copper Co. Ltd., Class A | Metals & Mining | 6,800 | | 13,525 |
| | Yunnan Energy New Material Co. Ltd., Class A | Chemicals | 3,400 | | 16,620 |
| | Yunnan Tin Co. Ltd., Class A | Metals & Mining | 6,800 | | 15,837 |
| | Yunnan Yuntianhua Co. Ltd., Class A | Chemicals | 6,800 | | 21,988 |
| | Yutong Bus Co. Ltd., Class A | Machinery | 10,200 | | 38,403 |
| a | Zai Lab Ltd. | Biotechnology | 54,400 | | 133,207 |
| | Zangge Mining Co. Ltd., Class A | Chemicals | 6,800 | | 27,934 |
| | Zhangzhou Pientzehuang Pharmaceutical Co. Ltd., Class A | Pharmaceuticals | 2,300 | | 84,949 |
| | Zhaojin Mining Industry Co. Ltd., Class H | Metals & Mining | 85,000 | | 150,795 |
| 67 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE China ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | China (continued) | | | | |
| | Zhefu Holding Group Co. Ltd., Class A | Commercial Services & Supplies | 27,200 | | $ 13,020 |
| a | Zhejiang Century Huatong Group Co. Ltd., Class A | Entertainment | 30,600 | | 18,232 |
| | Zhejiang China Commodities City Group Co. Ltd., Class A | Broadline Retail | 23,800 | | 32,816 |
| | Zhejiang Chint Electrics Co. Ltd., Class A | Electrical Equipment | 6,800 | | 22,095 |
| | Zhejiang Crystal-Optech Co. Ltd., Class A | Electronic Equipment, Instruments & Components | 6,800 | | 18,393 |
| | Zhejiang Dahua Technology Co. Ltd., Class A | Electronic Equipment, Instruments & Components | 13,600 | | 33,462 |
| | Zhejiang Expressway Co. Ltd., Class H | Transportation Infrastructure | 93,840 | | 65,721 |
| | Zhejiang Hailiang Co. Ltd., Class A | Metals & Mining | 6,800 | | 9,201 |
| | Zhejiang HangKe Technology, Inc. Co., Class A | Electrical Equipment | 1,490 | | 4,173 |
| a | Zhejiang Hisoar Pharmaceutical Co. Ltd., Class A | Pharmaceuticals | 6,800 | | 6,238 |
| | Zhejiang Huace Film & Television Co. Ltd., Class A | Entertainment | 10,200 | | 10,217 |
| | Zhejiang Huahai Pharmaceutical Co. Ltd., Class A | Pharmaceuticals | 7,000 | | 19,594 |
| | Zhejiang Huayou Cobalt Co. Ltd., Class A | Metals & Mining | 6,860 | | 28,925 |
| | Zhejiang Jingsheng Mechanical & Electrical Co. Ltd., Class A | Semiconductors & Semiconductor Equipment | 6,800 | | 31,471 |
| | Zhejiang Jiuzhou Pharmaceutical Co. Ltd., Class A | Pharmaceuticals | 3,400 | | 7,729 |
| | Zhejiang Juhua Co. Ltd., Class A | Chemicals | 10,200 | | 32,457 |
| a,b | Zhejiang Leapmotor Technology Co. Ltd. | Automobiles | 37,400 | | 161,300 |
| | Zhejiang Medicine Co. Ltd., Class A | Pharmaceuticals | 3,400 | | 8,414 |
| | Zhejiang NHU Co. Ltd., Class A | Chemicals | 13,856 | | 44,684 |
| | Zhejiang Sanhua Intelligent Controls Co. Ltd., Class A | Machinery | 10,200 | | 34,730 |
| | Zhejiang Supor Co. Ltd., Class A | Household Durables | 3,400 | | 28,429 |
| | Zhejiang Wanfeng Auto Wheel Co. Ltd., Class A | Automobile Components | 10,200 | | 22,051 |
| | Zhejiang Weiming Environment Protection Co. Ltd., Class A | Commercial Services & Supplies | 3,480 | | 10,815 |
| | Zhejiang Weixing New Building Materials Co. Ltd., Class A | Building Products | 6,800 | | 14,535 |
| | Zhejiang Wolwo Bio-Pharmaceutical Co. Ltd., Class A | Pharmaceuticals | 3,400 | | 11,825 |
| a | Zhejiang Yongtai Technology Co. Ltd., Class A | Chemicals | 3,400 | | 4,766 |
| | Zhejiang Zheneng Electric Power Co. Ltd., Class A | Independent Power Producers & Energy Traders | 34,000 | | 32,695 |
| | Zhengzhou Coal Mining Machinery Group Co. Ltd., Class A | Machinery | 6,800 | | 13,690 |
| | Zheshang Securities Co. Ltd., Class A | Capital Markets | 6,800 | | 14,001 |
| a,b | ZhongAn Online P&C Insurance Co. Ltd., Class H | Insurance | 40,800 | | 83,307 |
| | Zhongji Innolight Co. Ltd., Class A | Communications Equipment | 3,680 | | 81,428 |
| | Zhongjin Gold Corp. Ltd., Class A | Metals & Mining | 20,400 | | 44,306 |
| | Zhongshan Public Utilities Group Co. Ltd., Class A | Water Utilities | 6,800 | | 8,783 |
| | Zhongsheng Group Holdings Ltd. | Specialty Retail | 37,000 | | 68,689 |
| | Zhongtai Securities Co. Ltd., Class A | Capital Markets | 10,200 | | 10,668 |
| | Zhuhai Huafa Properties Co. Ltd., Class A | Real Estate Management & Development | 10,200 | | 10,712 |
| | Zhuzhou CRRC Times Electric Co. Ltd., Class A | Machinery | 2,382 | | 18,062 |
| | Zhuzhou CRRC Times Electric Co. Ltd., Class H | Machinery | 30,600 | | 120,942 |
| | Zhuzhou Kibing Group Co. Ltd., Class A | Building Products | 10,200 | | 9,284 |
| franklintempleton.com | Semi-Annual Report | 68 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE China ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | China (continued) | | | | |
| | Zijin Mining Group Co. Ltd., Class A | Metals & Mining | 81,600 | | $ 211,501 |
| | Zijin Mining Group Co. Ltd., Class H | Metals & Mining | 318,000 | | 722,997 |
| b | ZJLD Group, Inc. | Beverages | 27,200 | | 33,337 |
| | Zoomlion Heavy Industry Science & Technology Co. Ltd., Class A | Machinery | 30,600 | | 33,142 |
| | Zoomlion Heavy Industry Science & Technology Co. Ltd., Class H | Machinery | 81,600 | | 59,985 |
| | ZTE Corp., Class A | Communications Equipment | 17,000 | | 75,665 |
| | ZTE Corp., Class H | Communications Equipment | 40,800 | | 105,578 |
| | | | | | 134,746,926 |
| | Hong Kong 3.0% | | | | |
| a | Alibaba Health Information Technology Ltd., Class A | Consumer Staples Distribution & Retail | 316,000 | | 217,650 |
| a | Alibaba Pictures Group Ltd., Class A | Entertainment | 680,000 | | 44,648 |
| | Beijing Enterprises Water Group Ltd., Class A | Water Utilities | 204,000 | | 63,557 |
| | Bosideng International Holdings Ltd., Class A | Textiles, Apparel & Luxury Goods | 204,000 | | 117,134 |
| | China Everbright Environment Group Ltd., Class B | Commercial Services & Supplies | 204,000 | | 98,487 |
| | China Everbright Ltd., Class A | Capital Markets | 42,000 | | 27,576 |
| | China Gas Holdings Ltd., Class A | Gas Utilities | 163,200 | | 151,907 |
| | China Mengniu Dairy Co. Ltd., Class B | Food Products | 170,000 | | 409,269 |
| | China Power International Development Ltd., Class H | Independent Power Producers & Energy Traders | 238,000 | | 113,676 |
| | China Resources Beer Holdings Co. Ltd., Class A | Beverages | 86,269 | | 377,618 |
| | China Resources Gas Group Ltd., Class A | Gas Utilities | 47,600 | | 192,116 |
| | China Resources Land Ltd., Class H | Real Estate Management & Development | 149,000 | | 549,578 |
| | China State Construction International Holdings Ltd., Class A | Construction & Engineering | 96,000 | | 149,546 |
| a | China Traditional Chinese Medicine Holdings Co. Ltd. | Pharmaceuticals | 136,000 | | 76,689 |
| | COSCO SHIPPING Ports Ltd., Class B | Transportation Infrastructure | 68,000 | | 41,496 |
| | Far East Horizon Ltd. | Financial Services | 102,000 | | 74,719 |
| | Geely Automobile Holdings Ltd. | Automobiles | 306,000 | | 479,830 |
| | Guangdong Investment Ltd. | Water Utilities | 167,200 | | 112,579 |
| a | J&T Global Express Ltd. | Air Freight & Logistics | 374,000 | | 338,008 |
| | Kingboard Laminates Holdings Ltd. | Electronic Equipment, Instruments & Components | 56,600 | | 54,505 |
| | Kunlun Energy Co. Ltd. | Gas Utilities | 204,000 | | 210,632 |
| | Shanghai Industrial Holdings Ltd. | Industrial Conglomerates | 34,000 | | 53,052 |
| | Shougang Fushan Resources Group Ltd. | Metals & Mining | 68,000 | | 25,826 |
| | Sino Biopharmaceutical Ltd. | Pharmaceuticals | 544,000 | | 261,232 |
| | | | | | 4,241,330 |
| | Singapore 0.0%† | | | | |
| | Yangzijiang Financial Holding Ltd. | Capital Markets | 125,800 | | 39,251 |
| | Total Common Stocks (Cost $145,687,229) | | | | 139,027,507 |
| | Total Investments before Short-Term Investments (Cost $145,687,229) | | | | 139,027,507 |
| 69 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE China ETF (continued)
| | | Industry | Shares | | Value |
| | Short-Term Investments 0.0%† | | | | |
| | Money Market Funds 0.0%† | | | | |
| | United States 0.0%† | | | | |
| f,g | Institutional Fiduciary Trust - Money Market Portfolio, 4.74% | Money Market Funds | 119 | | $ 119 |
| | Total Short-Term Investments (Cost $119) | | | | 119 |
| | Total Investments (Cost $145,687,348) 99.6% | | | | 139,027,626 |
| | Other Assets, less Liabilities 0.4% | | | | 535,130 |
| | Net Assets 100.0% | | | | $ 139,562,756 |
| †Rounds to less than 0.1% of net assets. |
| aNon-income producing. |
| bSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At September 30, 2024, the value of was $17,589,096, representing 12.6% of net assets. |
| cVariable interest entity (VIE). See Note 6 regarding investments made through a VIE structure. At September 30, 2024, the aggregate value of these securities was $67,644,342, representing 48.5% of net assets. |
| dFair valued using significant unobservable inputs. See Note 8 regarding fair value measurements. |
| eSecurity was purchased pursuant to Regulation S under the Securities Act of 1933, which exempts from registration securities offered and sold outside of the United States. Such a security cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration. At September 30, 2024, the value of was $200,082, representing 0.1% of net assets. |
| fThe rate shown is the annualized seven-day effective yield at period end. |
| gSee Note 3(c) regarding investments in affiliated management investment companies. |
At September 30, 2024, the Fund had the following futures contracts outstanding. See Note 1(c).
Futures Contracts
| Description | Type | Number of
Contracts | Notional
Amount* | Expiration
Date | Value/Unrealized
Appreciation
(Depreciation) |
| Equity Contracts | | | | | |
| MSCI China Futures | Long | 13 | $ 356,850 | 12/20/24 | $ 69,501 |
See Note 7 regarding other derivative information.
See Abbreviations on page 207.
| franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Semi-Annual Report | 70 |
Franklin Templeton ETF Trust
Financial Highlights
Franklin FTSE Europe ETF
| | Six Months Ended
September 30, 2024
(unaudited) | Year Ended March 31, |
| | 2024 | 2023 | 2022 | 2021 | 2020 |
| Per share operating performance | | | | | | |
| (for a share outstanding throughout the period) | | | | | | |
| Net asset value, beginning of period | $29.69 | $26.56 | $27.18 | $27.28 | $19.03 | $23.24 |
| Income from investment operationsa: | | | | | | |
| Net investment incomeb | 0.53 | 0.81 | 1.11 | 0.85 | 0.60 | 0.76 |
| Net realized and unrealized gains (losses) | 1.62 | 3.05 | (0.89) | 0.11 | 8.14 | (4.21) |
| Total from investment operations | 2.15 | 3.86 | 0.22 | 0.96 | 8.74 | (3.45) |
| Less distributions from net investment income | (0.81) | (0.73) | (0.84) | (1.06) | (0.49) | (0.76) |
| Net asset value, end of period | $31.03 | $29.69 | $26.56 | $27.18 | $27.28 | $19.03 |
| Total returnc | 7.41% | 14.77% | 1.31% | 3.30% | 46.23% | (15.44)% |
| Ratios to average net assetsd | | | | | | |
| Expenses before waiver and payments by affiliates | 0.09% | 0.12%e | 0.24%f | 0.09% | 0.09% | 0.09% |
| Expenses net of waiver and payments by affiliates | 0.09% | 0.12%e | 0.24%f | 0.09% | 0.09% | 0.09% |
| Net investment income | 3.57% | 2.99% | 4.50% | 2.96% | 2.53% | 3.23% |
| Supplemental data | | | | | | |
| Net assets, end of period (000’s) | $86,874 | $71,255 | $111,558 | $184,857 | $229,126 | $91,356 |
| Portfolio turnover rateg | 3.67%h | 4.11%h | 5.22%h | 5.47%h | 5.00%h | 4.47%h |
| aThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of Creation Unit Fund shares in relation to income earned and/or fluctuating fair value of the investments of the Fund. |
| bBased on average daily shares outstanding. |
| cTotal return is not annualized for periods less than one year. Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. |
| dRatios are annualized for periods less than one year. |
| eExpense ratios include European Union tax reclaims contingency fees that were incurred by the Fund during the year. Without these fees, the gross and net expense ratios would have been 0.09% and 0.09%, respectively, for the year ended March 31, 2024. |
| fExpense ratios are including non-recurring European Union tax reclaim contingent fees that were incurred by the Fund during the period. Without these fees, the gross and net expense ratios would have been 0.09% and 0.09%, respectively, for the year ended March 31, 2023. |
| gPortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash ("Cash creations"). |
| hPortfolio turnover rate excluding cash creations was as follows: | 3.67% | 4.11% | 5.22% | 5.47% | 4.92% | 4.47% |
| 71 | Semi-Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments, September 30, 2024 (unaudited)
Franklin FTSE Europe ETF
| | | Industry | Shares | | Value |
| | Common Stocks 98.5% | | | | |
| | Australia 1.2% | | | | |
| a | Glencore PLC | Metals & Mining | 88,144 | | $ 505,678 |
| | Rio Tinto PLC | Metals & Mining | 7,756 | | 551,281 |
| | | | | | 1,056,959 |
| | Austria 0.4% | | | | |
| | ANDRITZ AG | Machinery | 504 | | 35,803 |
| | Erste Group Bank AG | Banks | 2,282 | | 125,431 |
| | Mondi PLC | Paper & Forest Products | 3,181 | | 60,632 |
| | OMV AG | Oil, Gas & Consumable Fuels | 994 | | 42,555 |
| | Raiffeisen Bank International AG | Banks | 966 | | 19,255 |
| | Telekom Austria AG | Diversified Telecommunication Services | 658 | | 6,462 |
| | Verbund AG | Electric Utilities | 476 | | 39,577 |
| | voestalpine AG | Metals & Mining | 784 | | 20,457 |
| | | | | | 350,172 |
| | Belgium 1.3% | | | | |
| | Ackermans & van Haaren NV | Construction & Engineering | 154 | | 32,776 |
| | Ageas SA | Insurance | 1,176 | | 62,894 |
| | Anheuser-Busch InBev SA | Beverages | 6,580 | | 436,063 |
| | D’ieteren Group | Distributors | 154 | | 32,638 |
| | Elia Group SA | Electric Utilities | 266 | | 30,488 |
| | Groupe Bruxelles Lambert NV | Financial Services | 616 | | 48,090 |
| | KBC Group NV | Banks | 1,736 | | 138,373 |
| | Lotus Bakeries NV | Food Products | 3 | | 40,312 |
| | Sofina SA | Financial Services | 126 | | 35,662 |
| | Syensqo SA | Chemicals | 504 | | 44,780 |
| | UCB SA | Pharmaceuticals | 882 | | 159,466 |
| | Warehouses De Pauw CVA | Industrial REITs | 1,218 | | 32,543 |
| | | | | | 1,094,085 |
| | Bermuda 0.0%† | | | | |
| | Hiscox Ltd. | Insurance | 2,240 | | 34,433 |
| | Chile 0.1% | | | | |
| | Antofagasta PLC | Metals & Mining | 2,506 | | 67,665 |
| | Denmark 4.8% | | | | |
| | AP Moller - Maersk AS, Class A | Marine Transportation | 20 | | 32,487 |
| | AP Moller - Maersk AS, Class B | Marine Transportation | 22 | | 37,087 |
| | Carlsberg AS, Class B | Beverages | 658 | | 78,572 |
| | Coloplast AS, Class B | Health Care Equipment & Supplies | 910 | | 119,208 |
| | Danske Bank AS | Banks | 4,816 | | 145,284 |
| a | Demant AS | Health Care Equipment & Supplies | 686 | | 26,867 |
| | DSV AS | Air Freight & Logistics | 1,232 | | 254,995 |
| a | Genmab AS | Biotechnology | 462 | | 112,050 |
| | H Lundbeck AS | Pharmaceuticals | 1,862 | | 12,070 |
| | H Lundbeck AS, Class A | Pharmaceuticals | 364 | | 2,011 |
| | Novo Nordisk AS, Class B | Pharmaceuticals | 22,400 | | 2,638,569 |
| | Novonesis (Novozymes) B, Class B | Chemicals | 2,520 | | 181,921 |
| a,b | Orsted AS | Independent Power Producers & Energy Traders | 1,358 | | 90,513 |
| | Pandora AS | Textiles, Apparel & Luxury Goods | 588 | | 97,054 |
| | Rockwool AS, Class B | Building Products | 56 | | 26,359 |
| a | Svitzer Group AS | Transportation Infrastructure | 94 | | 3,940 |
| | Tryg AS | Insurance | 2,394 | | 56,916 |
| a | Vestas Wind Systems AS | Electrical Equipment | 7,308 | | 161,762 |
| a | Zealand Pharma AS | Biotechnology | 476 | | 57,937 |
| | | | | | 4,135,602 |
| franklintempleton.com | Semi-Annual Report | 72 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE Europe ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | Finland 1.6% | | | | |
| | Elisa OYJ | Diversified Telecommunication Services | 1,050 | | $ 55,804 |
| | Fortum OYJ | Electric Utilities | 3,150 | | 52,013 |
| | Kesko OYJ, Class B | Consumer Staples Distribution & Retail | 1,946 | | 41,623 |
| | Kone OYJ, Class B | Machinery | 2,366 | | 141,799 |
| | Metso OYJ | Machinery | 4,634 | | 49,649 |
| | Neste OYJ | Oil, Gas & Consumable Fuels | 2,996 | | 58,280 |
| | Nokia OYJ | Communications Equipment | 37,856 | | 165,786 |
| | Nordea Bank Abp | Banks | 24,136 | | 285,263 |
| | Orion OYJ, Class B | Pharmaceuticals | 784 | | 43,067 |
| | Sampo OYJ, Class A | Insurance | 3,598 | | 168,251 |
| | Stora Enso OYJ, Class R | Paper & Forest Products | 4,270 | | 54,804 |
| | UPM-Kymmene OYJ | Paper & Forest Products | 3,850 | | 129,205 |
| | Valmet OYJ | Machinery | 1,204 | | 38,645 |
| | Wartsila OYJ Abp | Machinery | 3,500 | | 78,514 |
| | | | | | 1,362,703 |
| | France 16.0% | | | | |
| | Accor SA | Hotels, Restaurants & Leisure | 1,624 | | 70,686 |
| | Aeroports de Paris SA | Transportation Infrastructure | 238 | | 30,626 |
| | Air Liquide SA | Chemicals | 4,102 | | 793,191 |
| | Airbus SE | Aerospace & Defense | 4,256 | | 623,283 |
| a | Alstom SA | Machinery | 2,548 | | 52,992 |
| b | Amundi SA | Capital Markets | 406 | | 30,381 |
| | Arkema SA | Chemicals | 420 | | 40,077 |
| | AXA SA | Insurance | 13,006 | | 501,215 |
| b | Ayvens SA | Ground Transportation | 966 | | 6,830 |
| | BioMerieux | Health Care Equipment & Supplies | 294 | | 35,306 |
| | BNP Paribas SA | Banks | 7,266 | | 499,123 |
| | Bollore SE | Entertainment | 5,040 | | 33,665 |
| | Bouygues SA | Construction & Engineering | 1,302 | | 43,680 |
| | Bureau Veritas SA | Professional Services | 2,198 | | 73,053 |
| | Capgemini SE | IT Services | 1,162 | | 251,524 |
| | Carrefour SA | Consumer Staples Distribution & Retail | 3,682 | | 62,913 |
| | Cie de Saint-Gobain SA | Building Products | 3,332 | | 303,891 |
| | Cie Generale des Etablissements Michelin SCA | Automobile Components | 5,082 | | 206,793 |
| | Covivio SA | Diversified REITs | 378 | | 23,013 |
| | Credit Agricole SA | Banks | 7,336 | | 112,371 |
| | Danone SA | Food Products | 4,536 | | 330,778 |
| | Dassault Aviation SA | Aerospace & Defense | 126 | | 26,015 |
| | Dassault Systemes SE | Software | 4,830 | | 192,064 |
| | Edenred SE | Financial Services | 1,820 | | 69,102 |
| | Eiffage SA | Construction & Engineering | 546 | | 52,795 |
| | Engie SA | Multi-Utilities | 12,712 | | 220,115 |
| | EssilorLuxottica SA | Health Care Equipment & Supplies | 2,212 | | 524,846 |
| | Eurazeo SE | Financial Services | 350 | | 28,808 |
| | Gecina SA | Office REITs | 378 | | 43,621 |
| | Getlink SE | Transportation Infrastructure | 2,562 | | 45,806 |
| | Hermes International SCA | Textiles, Apparel & Luxury Goods | 245 | | 603,192 |
| | Ipsen SA | Pharmaceuticals | 252 | | 31,078 |
| a | JCDecaux SE | Media | 532 | | 11,934 |
| | Kering SA | Textiles, Apparel & Luxury Goods | 518 | | 148,489 |
| | Klepierre SA | Retail REITs | 1,484 | | 48,759 |
| b | La Francaise des Jeux SAEM | Hotels, Restaurants & Leisure | 672 | | 27,704 |
| | Legrand SA | Electrical Equipment | 1,834 | | 211,438 |
| | L’Oreal SA | Personal Care Products | 1,680 | | 753,829 |
| | LVMH Moet Hennessy Louis Vuitton SE | Textiles, Apparel & Luxury Goods | 1,792 | | 1,376,974 |
| b | Neoen SA | Independent Power Producers & Energy Traders | 504 | | 21,937 |
| | Orange SA | Diversified Telecommunication Services | 13,916 | | 159,736 |
| 73 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE Europe ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | France (continued) | | | | |
| | Pernod Ricard SA | Beverages | 1,470 | | $ 222,465 |
| | Publicis Groupe SA | Media | 1,652 | | 181,053 |
| | Remy Cointreau SA | Beverages | 154 | | 12,005 |
| | Renault SA | Automobiles | 1,386 | | 60,312 |
| | Rexel SA | Trading Companies & Distributors | 1,722 | | 49,910 |
| | Safran SA | Aerospace & Defense | 2,450 | | 577,216 |
| | Sanofi SA | Pharmaceuticals | 7,980 | | 916,436 |
| | Sartorius Stedim Biotech | Life Sciences Tools & Services | 182 | | 38,136 |
| | Schneider Electric SE | Electrical Equipment | 3,864 | | 1,018,593 |
| | SCOR SE | Insurance | 1,078 | | 24,134 |
| | SEB SA | Household Durables | 182 | | 20,820 |
| | Societe Generale SA | Banks | 5,264 | | 131,304 |
| | Sodexo SA | Hotels, Restaurants & Leisure | 630 | | 51,784 |
| a | SOITEC | Semiconductors & Semiconductor Equipment | 182 | | 18,200 |
| | Teleperformance SE | Professional Services | 434 | | 45,046 |
| | Thales SA | Aerospace & Defense | 700 | | 111,365 |
| | TotalEnergies SE | Oil, Gas & Consumable Fuels | 14,560 | | 950,607 |
| a | Unibail-Rodamco-Westfield | Retail REITs | 742 | | 65,089 |
| | Veolia Environnement SA | Multi-Utilities | 4,536 | | 149,442 |
| | Vinci SA | Construction & Engineering | 3,598 | | 421,432 |
| | Vivendi SE | Media | 4,816 | | 55,791 |
| | Wendel SE | Financial Services | 196 | | 20,081 |
| | | | | | 13,864,854 |
| | Germany 12.8% | | | | |
| | adidas AG | Textiles, Apparel & Luxury Goods | 1,204 | | 319,672 |
| | Allianz SE | Insurance | 2,828 | | 931,076 |
| | BASF SE | Chemicals | 6,454 | | 342,538 |
| | Bayer AG | Pharmaceuticals | 7,140 | | 241,648 |
| | Bayerische Motoren Werke AG | Automobiles | 2,128 | | 188,049 |
| | Bechtle AG | IT Services | 602 | | 26,955 |
| | Beiersdorf AG | Personal Care Products | 714 | | 107,696 |
| | Brenntag SE | Trading Companies & Distributors | 952 | | 71,165 |
| | Carl Zeiss Meditec AG | Health Care Equipment & Supplies | 266 | | 21,122 |
| | Commerzbank AG | Banks | 7,462 | | 137,620 |
| | Continental AG | Automobile Components | 784 | | 50,872 |
| a,b | Covestro AG | Chemicals | 1,358 | | 84,782 |
| | CTS Eventim AG & Co. KGaA | Entertainment | 420 | | 43,757 |
| | Daimler Truck Holding AG | Machinery | 3,794 | | 142,399 |
| a,b | Delivery Hero SE | Hotels, Restaurants & Leisure | 1,414 | | 57,159 |
| | Deutsche Bank AG | Capital Markets | 14,196 | | 245,542 |
| | Deutsche Boerse AG | Capital Markets | 1,344 | | 316,044 |
| | Deutsche Lufthansa AG | Passenger Airlines | 4,326 | | 31,768 |
| | Deutsche Post AG | Air Freight & Logistics | 7,028 | | 313,979 |
| | Deutsche Telekom AG | Diversified Telecommunication Services | 24,276 | | 714,990 |
| | Deutsche Wohnen SE | Real Estate Management & Development | 378 | | 10,483 |
| b | DWS Group GmbH & Co. KGaA | Capital Markets | 224 | | 9,240 |
| | E.ON SE | Multi-Utilities | 16,086 | | 239,759 |
| | Evonik Industries AG | Chemicals | 1,806 | | 42,327 |
| | Fielmann Group AG | Specialty Retail | 168 | | 8,700 |
| a | Fraport AG Frankfurt Airport Services Worldwide | Transportation Infrastructure | 252 | | 14,076 |
| | Fresenius Medical Care AG | Health Care Providers & Services | 1,470 | | 62,654 |
| a | Fresenius SE & Co. KGaA | Health Care Providers & Services | 2,982 | | 113,920 |
| | FUCHS SE | Chemicals | 238 | | 8,951 |
| | GEA Group AG | Machinery | 1,246 | | 61,131 |
| | Hannover Rueck SE | Insurance | 434 | | 124,046 |
| | Heidelberg Materials AG | Construction Materials | 938 | | 102,173 |
| | Henkel AG & Co. KGaA | Household Products | 728 | | 62,033 |
| franklintempleton.com | Semi-Annual Report | 74 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE Europe ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | Germany (continued) | | | | |
| | HOCHTIEF AG | Construction & Engineering | 154 | | $ 19,009 |
| | Infineon Technologies AG | Semiconductors & Semiconductor Equipment | 9,422 | | 330,815 |
| | KION Group AG | Machinery | 518 | | 20,413 |
| | Knorr-Bremse AG | Machinery | 476 | | 42,420 |
| | LEG Immobilien SE | Real Estate Management & Development | 532 | | 55,681 |
| | Mercedes-Benz Group AG | Automobiles | 6,090 | | 394,483 |
| | Merck KGaA | Pharmaceuticals | 938 | | 165,403 |
| | MTU Aero Engines AG | Aerospace & Defense | 392 | | 122,498 |
| | Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen | Insurance | 952 | | 525,184 |
| | Nemetschek SE | Software | 392 | | 40,687 |
| | Puma SE | Textiles, Apparel & Luxury Goods | 728 | | 30,468 |
| | Rational AG | Machinery | 35 | | 35,742 |
| | Rheinmetall AG | Aerospace & Defense | 308 | | 167,197 |
| | RWE AG | Independent Power Producers & Energy Traders | 5,166 | | 188,417 |
| | SAP SE | Software | 7,952 | | 1,814,016 |
| | Sartorius AG | Life Sciences Tools & Services | 14 | | 3,141 |
| b | Scout24 SE | Interactive Media & Services | 532 | | 45,866 |
| | Siemens AG | Industrial Conglomerates | 5,390 | | 1,090,853 |
| a | Siemens Energy AG | Electrical Equipment | 4,592 | | 169,481 |
| b | Siemens Healthineers AG | Health Care Equipment & Supplies | 2,016 | | 121,183 |
| | Symrise AG | Chemicals | 952 | | 131,854 |
| | Talanx AG | Insurance | 434 | | 36,618 |
| | Traton SE | Machinery | 392 | | 12,862 |
| | Volkswagen AG | Automobiles | 210 | | 23,507 |
| | Vonovia SE | Real Estate Management & Development | 5,096 | | 186,148 |
| | Wacker Chemie AG | Chemicals | 112 | | 11,075 |
| a,b | Zalando SE | Specialty Retail | 1,582 | | 52,297 |
| | | | | | 11,085,644 |
| | Ireland 1.8% | | | | |
| | AIB Group PLC | Banks | 13,090 | | 75,164 |
| | Bank of Ireland Group PLC | Banks | 7,378 | | 82,589 |
| | CRH PLC | Construction Materials | 4,984 | | 455,803 |
| | DCC PLC | Industrial Conglomerates | 714 | | 48,796 |
| | Experian PLC | Professional Services | 6,664 | | 351,382 |
| a | Flutter Entertainment PLC | Hotels, Restaurants & Leisure | 1,288 | | 303,636 |
| | Glanbia PLC | Food Products | 1,274 | | 22,479 |
| | Kerry Group PLC, Class A | Food Products | 1,078 | | 112,069 |
| | Kingspan Group PLC | Building Products | 1,092 | | 102,800 |
| | | | | | 1,554,718 |
| | Isle Of Man 0.0%† | | | | |
| | Entain PLC | Hotels, Restaurants & Leisure | 4,410 | | 45,146 |
| | Italy 4.2% | | | | |
| | A2A SpA | Multi-Utilities | 10,934 | | 25,309 |
| | Amplifon SpA | Health Care Providers & Services | 938 | | 27,019 |
| | Banca Mediolanum SpA | Financial Services | 1,568 | | 19,810 |
| | Banco BPM SpA | Banks | 9,982 | | 67,489 |
| | BPER Banca SpA | Banks | 7,630 | | 43,003 |
| | Brunello Cucinelli SpA | Textiles, Apparel & Luxury Goods | 238 | | 25,699 |
| | Buzzi SpA | Construction Materials | 602 | | 24,053 |
| | Davide Campari-Milano NV | Beverages | 3,486 | | 29,568 |
| | DiaSorin SpA | Health Care Equipment & Supplies | 154 | | 18,029 |
| | Enel SpA | Electric Utilities | 56,308 | | 450,895 |
| | Eni SpA | Oil, Gas & Consumable Fuels | 16,338 | | 249,478 |
| | Ferrari NV | Automobiles | 854 | | 400,019 |
| 75 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE Europe ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | Italy (continued) | | | | |
| | FinecoBank Banca Fineco SpA | Banks | 4,410 | | $ 75,672 |
| | Generali | Insurance | 9,072 | | 262,739 |
| | Hera SpA | Multi-Utilities | 5,768 | | 23,059 |
| b | Infrastrutture Wireless Italiane SpA | Diversified Telecommunication Services | 2,548 | | 31,423 |
| | Interpump Group SpA | Machinery | 574 | | 26,829 |
| | Intesa Sanpaolo SpA | Banks | 115,640 | | 495,268 |
| | Italgas SpA | Gas Utilities | 3,542 | | 21,465 |
| | Leonardo SpA | Aerospace & Defense | 2,912 | | 65,064 |
| | Mediobanca Banca di Credito Finanziario SpA | Banks | 3,962 | | 67,764 |
| | Moncler SpA | Textiles, Apparel & Luxury Goods | 1,638 | | 104,238 |
| a,b | Nexi SpA | Financial Services | 5,768 | | 39,216 |
| b | Pirelli & C SpA | Automobile Components | 2,604 | | 15,839 |
| b | Poste Italiane SpA | Insurance | 3,262 | | 45,834 |
| | Prysmian SpA | Electrical Equipment | 2,030 | | 147,716 |
| | Recordati Industria Chimica e Farmaceutica SpA | Pharmaceuticals | 714 | | 40,480 |
| | Reply SpA | IT Services | 154 | | 23,237 |
| | Snam SpA | Gas Utilities | 16,422 | | 83,776 |
| a | Telecom Italia SpA | Diversified Telecommunication Services | 74,956 | | 20,872 |
| a | Telecom Italia SpA, pfd. | Diversified Telecommunication Services | 32,774 | | 10,439 |
| | Terna - Rete Elettrica Nazionale | Electric Utilities | 10,178 | | 91,873 |
| | UniCredit SpA | Banks | 11,508 | | 505,585 |
| | Unipol Gruppo SpA | Insurance | 3,122 | | 37,177 |
| | | | | | 3,615,936 |
| | Luxembourg 0.2% | | | | |
| | ArcelorMittal SA | Metals & Mining | 3,458 | | 90,848 |
| | Eurofins Scientific SE | Life Sciences Tools & Services | 938 | | 59,566 |
| | RTL Group SA | Media | 266 | | 9,040 |
| | | | | | 159,454 |
| | Mexico 0.0%† | | | | |
| | Fresnillo PLC | Metals & Mining | 1,330 | | 10,909 |
| | Netherlands 8.8% | | | | |
| | Aalberts NV | Machinery | 700 | | 28,468 |
| b | ABN AMRO Bank NV | Banks | 3,220 | | 58,236 |
| a,b | Adyen NV | Financial Services | 211 | | 330,294 |
| | Aegon Ltd. | Insurance | 7,812 | | 50,289 |
| | Akzo Nobel NV | Chemicals | 1,232 | | 87,036 |
| a | Argenx SE | Biotechnology | 434 | | 235,208 |
| | ASM International NV | Semiconductors & Semiconductor Equipment | 336 | | 221,021 |
| | ASML Holding NV | Semiconductors & Semiconductor Equipment | 2,856 | | 2,376,555 |
| | ASR Nederland NV | Insurance | 1,078 | | 52,937 |
| | BE Semiconductor Industries NV | Semiconductors & Semiconductor Equipment | 546 | | 69,193 |
| b | CTP NV | Real Estate Management & Development | 798 | | 14,606 |
| b | Euronext NV | Capital Markets | 574 | | 62,428 |
| | EXOR NV | Financial Services | 728 | | 78,120 |
| | Ferrovial SE | Construction & Engineering | 3,780 | | 162,756 |
| | Heineken Holding NV | Beverages | 938 | | 70,977 |
| | Heineken NV | Beverages | 1,988 | | 176,698 |
| | IMCD NV | Trading Companies & Distributors | 420 | | 73,077 |
| | ING Groep NV | Banks | 23,408 | | 425,150 |
| | JDE Peet’s NV | Food Products | 756 | | 15,828 |
| | Koninklijke Ahold Delhaize NV | Consumer Staples Distribution & Retail | 6,804 | | 235,630 |
| | Koninklijke KPN NV | Diversified Telecommunication Services | 27,272 | | 111,673 |
| a | Koninklijke Philips NV | Health Care Equipment & Supplies | 5,782 | | 189,847 |
| | Koninklijke Vopak NV | Oil, Gas & Consumable Fuels | 490 | | 22,793 |
| | NN Group NV | Insurance | 1,988 | | 99,354 |
| franklintempleton.com | Semi-Annual Report | 76 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE Europe ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | Netherlands (continued) | | | | |
| | OCI NV | Chemicals | 700 | | $ 19,984 |
| a | Pluxee NV | Commercial Services & Supplies | 630 | | 13,316 |
| | Prosus NV | Broadline Retail | 9,408 | | 412,222 |
| | Randstad NV | Professional Services | 784 | | 39,024 |
| | Shell PLC | Oil, Gas & Consumable Fuels | 45,654 | | 1,485,020 |
| | Universal Music Group NV | Entertainment | 5,460 | | 143,200 |
| | Wolters Kluwer NV | Professional Services | 1,750 | | 295,502 |
| | | | | | 7,656,442 |
| | Nigeria 0.0%† | | | | |
| b | Airtel Africa PLC | Wireless Telecommunication Services | 8,680 | | 13,273 |
| | Norway 0.9% | | | | |
| | Aker ASA, Class A | Industrial Conglomerates | 168 | | 8,741 |
| | Aker BP ASA | Oil, Gas & Consumable Fuels | 2,226 | | 47,806 |
| a,b | AutoStore Holdings Ltd. | Machinery | 7,700 | | 7,895 |
| | DNB Bank ASA | Banks | 7,112 | | 146,121 |
| | Equinor ASA | Oil, Gas & Consumable Fuels | 5,908 | | 149,598 |
| | Gjensidige Forsikring ASA | Insurance | 1,246 | | 23,352 |
| | Kongsberg Gruppen ASA | Aerospace & Defense | 546 | | 53,498 |
| | Mowi ASA | Food Products | 3,192 | | 57,505 |
| | Norsk Hydro ASA | Metals & Mining | 9,352 | | 60,786 |
| | Orkla ASA | Food Products | 5,502 | | 51,950 |
| | Salmar ASA | Food Products | 476 | | 25,014 |
| | Schibsted ASA, Class A | Media | 518 | | 16,751 |
| | Schibsted ASA, Class B | Media | 756 | | 22,839 |
| | Telenor ASA | Diversified Telecommunication Services | 4,424 | | 56,704 |
| | Var Energi ASA | Oil, Gas & Consumable Fuels | 6,412 | | 19,907 |
| | Yara International ASA | Chemicals | 1,176 | | 37,303 |
| | | | | | 785,770 |
| | Poland 0.5% | | | | |
| a,b | Allegro.eu SA | Broadline Retail | 4,018 | | 36,459 |
| | Bank Polska Kasa Opieki SA | Banks | 1,134 | | 43,423 |
| a,b | Dino Polska SA | Consumer Staples Distribution & Retail | 350 | | 31,996 |
| a | InPost SA | Air Freight & Logistics | 1,722 | | 32,556 |
| | KGHM Polska Miedz SA | Metals & Mining | 994 | | 41,288 |
| | LPP SA | Textiles, Apparel & Luxury Goods | 8 | | 32,927 |
| a | mBank SA | Banks | 98 | | 15,772 |
| | ORLEN SA | Oil, Gas & Consumable Fuels | 4,186 | | 60,963 |
| | Powszechna Kasa Oszczednosci Bank Polski SA | Banks | 6,188 | | 90,296 |
| | Powszechny Zaklad Ubezpieczen SA | Insurance | 4,018 | | 44,073 |
| | Santander Bank Polska SA | Banks | 280 | | 33,158 |
| | | | | | 462,911 |
| | Portugal 0.2% | | | | |
| | EDP SA | Electric Utilities | 21,980 | | 100,625 |
| | Galp Energia SGPS SA, Class B | Oil, Gas & Consumable Fuels | 3,108 | | 58,274 |
| | Jeronimo Martins SGPS SA | Consumer Staples Distribution & Retail | 1,974 | | 38,863 |
| | | | | | 197,762 |
| | Russia 0.0% | | | | |
| a,c,d | Evraz PLC | Metals & Mining | 10,404 | | — |
| | Spain 4.1% | | | | |
| | Acciona SA | Electric Utilities | 168 | | 23,906 |
| | ACS Actividades de Construccion y Servicios SA | Construction & Engineering | 1,414 | | 65,459 |
| 77 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE Europe ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | Spain (continued) | | | | |
| b | Aena SME SA | Transportation Infrastructure | 504 | | $ 111,148 |
| | Amadeus IT Group SA | Hotels, Restaurants & Leisure | 3,136 | | 227,216 |
| | Banco Bilbao Vizcaya Argentaria SA | Banks | 41,244 | | 446,863 |
| | Banco de Sabadell SA | Banks | 37,968 | | 80,892 |
| | Banco Santander SA | Banks | 108,976 | | 559,525 |
| | Bankinter SA | Banks | 4,704 | | 41,621 |
| | CaixaBank SA | Banks | 28,602 | | 171,226 |
| a,b | Cellnex Telecom SA | Diversified Telecommunication Services | 4,046 | | 164,501 |
| | Corp. ACCIONA Energias Renovables SA | Independent Power Producers & Energy Traders | 406 | | 9,570 |
| | EDP Renovaveis SA | Independent Power Producers & Energy Traders | 2,142 | | 37,556 |
| | Enagas SA | Gas Utilities | 1,792 | | 27,559 |
| | Endesa SA | Electric Utilities | 2,296 | | 50,301 |
| a | Grifols SA | Biotechnology | 1,904 | | 21,728 |
| | Iberdrola SA | Electric Utilities | 43,624 | | 676,256 |
| | Industria de Diseno Textil SA | Specialty Retail | 7,630 | | 452,512 |
| | Mapfre SA | Insurance | 7,126 | | 19,023 |
| | Merlin Properties Socimi SA | Diversified REITs | 3,164 | | 40,149 |
| | Naturgy Energy Group SA | Gas Utilities | 896 | | 23,220 |
| | Redeia Corp. SA | Electric Utilities | 3,122 | | 60,871 |
| | Repsol SA | Oil, Gas & Consumable Fuels | 8,554 | | 113,081 |
| | Telefonica SA | Diversified Telecommunication Services | 30,310 | | 148,706 |
| | | | | | 3,572,889 |
| | Sweden 5.2% | | | | |
| | AAK AB | Food Products | 1,260 | | 41,393 |
| | Alfa Laval AB | Machinery | 2,254 | | 108,424 |
| | Assa Abloy AB, Class B | Building Products | 7,070 | | 238,257 |
| | Atlas Copco AB, Class A | Machinery | 18,424 | | 357,062 |
| | Atlas Copco AB, Class B | Machinery | 10,822 | | 185,552 |
| | Axfood AB | Consumer Staples Distribution & Retail | 812 | | 22,926 |
| | Beijer Ref AB | Trading Companies & Distributors | 2,814 | | 46,347 |
| | Boliden AB | Metals & Mining | 1,974 | | 67,088 |
| a | Castellum AB | Real Estate Management & Development | 3,080 | | 45,228 |
| | Epiroc AB, Class A | Machinery | 4,508 | | 97,617 |
| | Epiroc AB, Class B | Machinery | 2,730 | | 51,790 |
| | EQT AB | Capital Markets | 4,578 | | 156,942 |
| | Essity AB, Class B | Household Products | 4,382 | | 136,994 |
| b | Evolution AB | Hotels, Restaurants & Leisure | 1,316 | | 129,567 |
| a | Fastighets AB Balder, Class B | Real Estate Management & Development | 4,648 | | 40,911 |
| | Getinge AB, Class B | Health Care Equipment & Supplies | 1,638 | | 35,356 |
| | H & M Hennes & Mauritz AB, Class B | Specialty Retail | 4,312 | | 73,507 |
| | Hexagon AB, Class B | Electronic Equipment, Instruments & Components | 15,330 | | 165,148 |
| | Holmen AB, Class B | Paper & Forest Products | 546 | | 23,668 |
| | Husqvarna AB, Class B | Machinery | 2,478 | | 17,357 |
| | Industrivarden AB, Class A | Financial Services | 826 | | 30,574 |
| | Industrivarden AB, Class C | Financial Services | 1,134 | | 41,762 |
| | Indutrade AB | Machinery | 1,932 | | 60,152 |
| | Investment AB Latour, Class B | Industrial Conglomerates | 1,036 | | 32,368 |
| | Investor AB, Class A | Financial Services | 3,472 | | 107,038 |
| | Investor AB, Class B | Financial Services | 12,726 | | 392,391 |
| | L E Lundbergforetagen AB, Class B | Financial Services | 532 | | 30,493 |
| | Lifco AB, Class B | Industrial Conglomerates | 1,652 | | 54,466 |
| | Nibe Industrier AB, Class B | Building Products | 10,472 | | 57,502 |
| | Saab AB, Class B | Aerospace & Defense | 2,366 | | 50,393 |
| | Sagax AB, Class B | Real Estate Management & Development | 1,554 | | 44,336 |
| | Sagax AB, Class D | Real Estate Management & Development | 840 | | 2,759 |
| | Sandvik AB | Machinery | 7,826 | | 175,179 |
| | Securitas AB, Class B | Commercial Services & Supplies | 3,500 | | 44,507 |
| franklintempleton.com | Semi-Annual Report | 78 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE Europe ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | Sweden (continued) | | | | |
| | Skandinaviska Enskilda Banken AB, Class A | Banks | 11,060 | | $ 169,393 |
| | Skandinaviska Enskilda Banken AB, Class C | Banks | 154 | | 2,370 |
| | Skanska AB, Class B | Construction & Engineering | 2,464 | | 51,484 |
| | SKF AB, Class B | Machinery | 2,408 | | 47,986 |
| | SSAB AB, Class A | Metals & Mining | 1,372 | | 7,198 |
| | SSAB AB, Class B | Metals & Mining | 4,060 | | 20,827 |
| | Svenska Cellulosa AB SCA, Class B | Paper & Forest Products | 4,298 | | 62,732 |
| | Svenska Handelsbanken AB, Class A | Banks | 10,024 | | 103,092 |
| | Svenska Handelsbanken AB, Class B | Banks | 266 | | 3,501 |
| | Sweco AB, Class B | Construction & Engineering | 1,456 | | 24,720 |
| | Swedbank AB, Class A | Banks | 6,216 | | 132,027 |
| a | Swedish Orphan Biovitrum AB | Biotechnology | 1,316 | | 42,453 |
| | Tele2 AB, Class B | Wireless Telecommunication Services | 3,780 | | 42,847 |
| | Telefonaktiebolaget LM Ericsson, Class B | Communications Equipment | 20,146 | | 152,477 |
| | Telia Co. AB | Diversified Telecommunication Services | 17,920 | | 58,056 |
| | Trelleborg AB, Class B | Machinery | 1,540 | | 59,281 |
| | Volvo AB, Class A | Machinery | 1,414 | | 37,775 |
| | Volvo AB, Class B | Machinery | 11,396 | | 301,522 |
| a | Volvo Car AB, Class B | Automobiles | 4,578 | | 12,609 |
| | | | | | 4,497,404 |
| | Switzerland 14.6% | | | | |
| | ABB Ltd. | Electrical Equipment | 11,494 | | 667,525 |
| | Adecco Group AG | Professional Services | 1,162 | | 39,645 |
| | Alcon, Inc. | Health Care Equipment & Supplies | 3,584 | | 358,251 |
| | Avolta AG | Specialty Retail | 770 | | 32,679 |
| | Bachem Holding AG, Class B | Life Sciences Tools & Services | 224 | | 18,907 |
| | Baloise Holding AG | Insurance | 322 | | 65,847 |
| | Banque Cantonale Vaudoise | Banks | 210 | | 21,746 |
| | Barry Callebaut AG | Food Products | 26 | | 48,267 |
| | Belimo Holding AG | Building Products | 70 | | 50,080 |
| | BKW AG | Electric Utilities | 126 | | 22,913 |
| | Chocoladefabriken Lindt & Spruengli AG | Food Products | 14 | | 181,068 |
| | Cie Financiere Richemont SA, Class A | Textiles, Apparel & Luxury Goods | 3,850 | | 610,669 |
| | Clariant AG | Chemicals | 1,610 | | 24,430 |
| | Coca-Cola HBC AG | Beverages | 1,470 | | 52,528 |
| | DKSH Holding AG | Trading Companies & Distributors | 252 | | 20,075 |
| | DSM-Firmenich AG | Chemicals | 1,260 | | 173,879 |
| | Emmi AG | Food Products | 14 | | 14,356 |
| | EMS-Chemie Holding AG | Chemicals | 56 | | 47,134 |
| | Flughafen Zurich AG | Transportation Infrastructure | 140 | | 33,757 |
| a | Galderma Group AG | Pharmaceuticals | 420 | | 39,135 |
| | Geberit AG | Building Products | 238 | | 155,573 |
| | Georg Fischer AG | Machinery | 588 | | 44,507 |
| | Givaudan SA | Chemicals | 58 | | 319,033 |
| | Helvetia Holding AG | Insurance | 252 | | 43,616 |
| | Julius Baer Group Ltd. | Capital Markets | 1,484 | | 89,545 |
| | Kuehne & Nagel International AG | Marine Transportation | 364 | | 99,592 |
| | Logitech International SA | Technology Hardware, Storage & Peripherals | 1,134 | | 101,577 |
| | Lonza Group AG | Life Sciences Tools & Services | 504 | | 319,410 |
| | Nestle SA | Food Products | 18,648 | | 1,878,174 |
| | Novartis AG | Pharmaceuticals | 14,798 | | 1,704,257 |
| | Partners Group Holding AG | Capital Markets | 157 | | 236,370 |
| | PSP Swiss Property AG | Real Estate Management & Development | 322 | | 47,295 |
| | Roche Holding AG | Pharmaceuticals | 5,012 | | 1,607,785 |
| | Roche Holding AG | Pharmaceuticals | 266 | | 91,258 |
| | Sandoz Group AG | Pharmaceuticals | 3,122 | | 130,535 |
| | Schindler Holding AG, PC | Machinery | 294 | | 86,435 |
| 79 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE Europe ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | Switzerland (continued) | | | | |
| | Schindler Holding AG | Machinery | 154 | | $ 43,906 |
| | SGS SA | Professional Services | 1,092 | | 122,126 |
| | SIG Group AG | Containers & Packaging | 2,380 | | 53,212 |
| | Sika AG | Chemicals | 1,106 | | 367,246 |
| | Sonova Holding AG | Health Care Equipment & Supplies | 350 | | 126,051 |
| | STMicroelectronics NV | Semiconductors & Semiconductor Equipment | 4,690 | | 139,493 |
| | Straumann Holding AG | Health Care Equipment & Supplies | 770 | | 126,196 |
| | Swatch Group AG | Textiles, Apparel & Luxury Goods | 210 | | 45,122 |
| | Swatch Group AG | Textiles, Apparel & Luxury Goods | 378 | | 16,244 |
| | Swiss Life Holding AG | Insurance | 210 | | 175,757 |
| | Swiss Prime Site AG | Real Estate Management & Development | 560 | | 62,967 |
| | Swiss Re AG | Insurance | 2,114 | | 292,459 |
| | Swisscom AG | Diversified Telecommunication Services | 182 | | 119,205 |
| | Tecan Group AG | Life Sciences Tools & Services | 84 | | 27,723 |
| | Temenos AG | Software | 434 | | 30,458 |
| | UBS Group AG | Capital Markets | 23,268 | | 718,824 |
| b | VAT Group AG | Machinery | 182 | | 92,947 |
| | Zurich Insurance Group AG | Insurance | 1,050 | | 634,568 |
| | | | | | 12,672,357 |
| | United Kingdom 18.8% | | | | |
| | 3i Group PLC | Capital Markets | 6,734 | | 298,529 |
| | Admiral Group PLC | Insurance | 2,128 | | 79,466 |
| | Anglo American PLC | Metals & Mining | 9,016 | | 293,754 |
| | Ashtead Group PLC | Trading Companies & Distributors | 3,178 | | 246,646 |
| | Associated British Foods PLC | Food Products | 2,338 | | 73,165 |
| | AstraZeneca PLC | Pharmaceuticals | 10,864 | | 1,688,652 |
| b | Auto Trader Group PLC | Interactive Media & Services | 6,426 | | 74,800 |
| | Aviva PLC | Insurance | 19,474 | | 126,323 |
| | B&M European Value Retail SA | Broadline Retail | 6,636 | | 36,958 |
| | BAE Systems PLC | Aerospace & Defense | 22,022 | | 365,548 |
| | Barclays PLC | Banks | 106,736 | | 321,489 |
| | Barratt Developments PLC | Household Durables | 9,842 | | 63,196 |
| | Beazley PLC | Insurance | 4,676 | | 47,731 |
| | Berkeley Group Holdings PLC | Household Durables | 702 | | 44,445 |
| | BP PLC | Oil, Gas & Consumable Fuels | 119,588 | | 628,323 |
| | British American Tobacco PLC | Tobacco | 14,490 | | 529,441 |
| | British Land Co. PLC | Diversified REITs | 6,832 | | 39,900 |
| | BT Group PLC | Diversified Telecommunication Services | 45,696 | | 90,654 |
| | Bunzl PLC | Trading Companies & Distributors | 2,450 | | 116,138 |
| | Burberry Group PLC | Textiles, Apparel & Luxury Goods | 2,576 | | 24,222 |
| | Centrica PLC | Multi-Utilities | 38,416 | | 60,109 |
| | Compass Group PLC | Hotels, Restaurants & Leisure | 12,348 | | 396,518 |
| b | ConvaTec Group PLC | Health Care Equipment & Supplies | 12,180 | | 37,086 |
| | Croda International PLC | Chemicals | 1,008 | | 57,017 |
| | Diageo PLC | Beverages | 16,114 | | 562,625 |
| | Diploma PLC | Trading Companies & Distributors | 966 | | 57,453 |
| | DS Smith PLC | Containers & Packaging | 10,136 | | 62,786 |
| | Endeavour Mining PLC | Metals & Mining | 1,442 | | 34,255 |
| | GSK PLC | Pharmaceuticals | 29,078 | | 591,492 |
| | Haleon PLC | Personal Care Products | 50,204 | | 264,583 |
| | Halma PLC | Electronic Equipment, Instruments & Components | 2,744 | | 95,992 |
| | Hargreaves Lansdown PLC | Capital Markets | 2,744 | | 41,021 |
| | Hikma Pharmaceuticals PLC | Pharmaceuticals | 1,176 | | 30,145 |
| | Howden Joinery Group PLC | Trading Companies & Distributors | 3,948 | | 48,032 |
| | HSBC Holdings PLC | Banks | 134,316 | | 1,205,662 |
| | IMI PLC | Machinery | 1,904 | | 46,277 |
| | Imperial Brands PLC | Tobacco | 6,160 | | 179,549 |
| franklintempleton.com | Semi-Annual Report | 80 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE Europe ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | United Kingdom (continued) | | | | |
| | Informa PLC | Media | 9,604 | | $ 105,661 |
| | InterContinental Hotels Group PLC | Hotels, Restaurants & Leisure | 1,162 | | 126,812 |
| | Intermediate Capital Group PLC | Capital Markets | 1,918 | | 57,320 |
| | International Consolidated Airlines Group SA | Passenger Airlines | 16,940 | | 46,672 |
| | Intertek Group PLC | Professional Services | 1,162 | | 80,426 |
| | J Sainsbury PLC | Consumer Staples Distribution & Retail | 13,006 | | 51,534 |
| | JD Sports Fashion PLC | Specialty Retail | 17,794 | | 36,769 |
| | Kingfisher PLC | Specialty Retail | 13,174 | | 56,900 |
| | Land Securities Group PLC | Diversified REITs | 5,404 | | 47,189 |
| | Legal & General Group PLC | Insurance | 43,498 | | 132,037 |
| | Lloyds Banking Group PLC | Banks | 452,088 | | 356,568 |
| | London Stock Exchange Group PLC | Capital Markets | 3,598 | | 493,235 |
| | M&G PLC | Financial Services | 15,764 | | 43,855 |
| | Marks & Spencer Group PLC | Consumer Staples Distribution & Retail | 14,980 | | 74,868 |
| | Melrose Industries PLC | Aerospace & Defense | 9,492 | | 58,020 |
| | National Grid PLC | Multi-Utilities | 35,434 | | 489,552 |
| | NatWest Group PLC | Banks | 48,188 | | 222,286 |
| | Next PLC | Broadline Retail | 868 | | 113,891 |
| a,c | NMC Health PLC | Health Care Providers & Services | 1,159 | | — |
| | Pearson PLC | Diversified Consumer Services | 4,760 | | 64,710 |
| | Persimmon PLC | Household Durables | 2,296 | | 50,615 |
| | Phoenix Group Holdings PLC | Insurance | 5,446 | | 40,871 |
| | Prudential PLC | Insurance | 19,992 | | 186,266 |
| | Reckitt Benckiser Group PLC | Household Products | 5,054 | | 310,283 |
| | RELX PLC | Professional Services | 13,552 | | 637,865 |
| | Rentokil Initial PLC | Commercial Services & Supplies | 18,438 | | 90,123 |
| | Rightmove PLC | Interactive Media & Services | 5,782 | | 47,884 |
| a | Rolls-Royce Holdings PLC | Aerospace & Defense | 61,684 | | 436,204 |
| | RS Group PLC | Trading Companies & Distributors | 3,430 | | 37,267 |
| | Sage Group PLC | Software | 7,322 | | 100,620 |
| | Schroders PLC | Capital Markets | 6,062 | | 28,394 |
| | Segro PLC | Industrial REITs | 9,828 | | 115,217 |
| | Severn Trent PLC | Water Utilities | 1,932 | | 68,467 |
| | Smith & Nephew PLC | Health Care Equipment & Supplies | 6,328 | | 98,292 |
| | Smiths Group PLC | Industrial Conglomerates | 2,506 | | 56,371 |
| | Spirax Group PLC | Machinery | 532 | | 53,627 |
| | SSE PLC | Electric Utilities | 7,924 | | 200,141 |
| | St. James’s Place PLC | Capital Markets | 3,990 | | 39,284 |
| | Standard Chartered PLC | Banks | 15,190 | | 161,574 |
| | Taylor Wimpey PLC | Household Durables | 25,606 | | 56,431 |
| | Tesco PLC | Consumer Staples Distribution & Retail | 50,330 | | 242,159 |
| | Unilever PLC | Personal Care Products | 17,878 | | 1,160,423 |
| | UNITE Group PLC | Residential REITs | 2,926 | | 36,893 |
| | United Utilities Group PLC | Water Utilities | 4,956 | | 69,502 |
| | Vodafone Group PLC | Wireless Telecommunication Services | 155,834 | | 156,854 |
| | Weir Group PLC | Machinery | 1,876 | | 54,505 |
| | Whitbread PLC | Hotels, Restaurants & Leisure | 1,274 | | 53,556 |
| a | Wise PLC, Class A | Financial Services | 5,544 | | 49,936 |
| | WPP PLC | Media | 7,728 | | 79,113 |
| | | | | | 16,337,024 |
| | United States 1.0% | | | | |
| | Holcim AG, Class B | Construction Materials | 4,074 | | 398,731 |
| a | Qiagen NV | Life Sciences Tools & Services | 1,579 | | 71,318 |
| | Smurfit WestRock PLC | Containers & Packaging | 3,710 | | 186,018 |
| | Stellantis NV | Automobiles | 14,770 | | 204,534 |
| 81 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE Europe ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | United States (continued) | | | | |
| | Tenaris SA | Energy Equipment & Services | 3,234 | | $ 51,018 |
| | | | | | 911,619 |
| | Total Common Stocks (Cost $80,290,382) | | | | 85,545,731 |
| | Preferred Stocks 0.4% | | | | |
| | Germany 0.4% | | | | |
| e | Bayerische Motoren Werke AG, 8.102%, pfd. | Automobiles | 420 | | 34,828 |
| e | FUCHS SE, 2.547%, pfd. | Chemicals | 490 | | 23,832 |
| e | Henkel AG & Co. KGaA, 2.192%, pfd. | Household Products | 1,190 | | 112,092 |
| e | Sartorius AG, 0.293%, pfd. | Life Sciences Tools & Services | 182 | | 51,227 |
| e | Volkswagen AG, 9.521%, pfd. | Automobiles | 1,330 | | 141,250 |
| | | | | | 363,229 |
| | Spain 0.0%† | | | | |
| a | Grifols SA, Class B, pfd. | Biotechnology | 1,806 | | 16,276 |
| | Total Preferred Stocks (Cost $484,101) | | | | 379,505 |
| | Total Investments before Short-Term Investments (Cost $80,774,483) | | | | 85,925,236 |
| | Short-Term Investments 0.0%† | | | | |
| | Money Market Funds 0.0%† | | | | |
| | United States 0.0%† | | | | |
| f,g | Institutional Fiduciary Trust - Money Market Portfolio, 4.74% | Money Market Funds | 25,519 | | 25,519 |
| | Total Short-Term Investments (Cost $25,519) | | | | 25,519 |
| | Total Investments (Cost $80,800,002) 98.9% | | | | 85,950,755 |
| | Other Assets, less Liabilities 1.1% | | | | 922,985 |
| | Net Assets 100.0% | | | | $ 86,873,740 |
| †Rounds to less than 0.1% of net assets. |
| aNon-income producing. |
| bSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At September 30, 2024, the value of was $1,845,440, representing 2.1% of net assets. |
| cFair valued using significant unobservable inputs. See Note 8 regarding fair value measurements. |
| dSee Note 6 regarding investments in Russian securities. |
| eVariable rate security. The rate shown represents the yield at period end. |
| fThe rate shown is the annualized seven-day effective yield at period end. |
| gSee Note 3(c) regarding investments in affiliated management investment companies. |
| franklintempleton.com | Semi-Annual Report | 82 |
Franklin Templeton ETF Trust
Franklin FTSE Europe ETF (continued)
At September 30, 2024, the Fund had the following futures contracts outstanding. See Note 1(c).
Futures Contracts
| Description | Type | Number of
Contracts | Notional
Amount* | Expiration
Date | Value/Unrealized
Appreciation
(Depreciation) |
| Index Contracts | | | | | |
| EURO STOXX 50 Index | Long | 14 | $ 785,923 | 12/20/24 | $ 21,739 |
| FTSE 100 Index | Long | 2 | 222,355 | 12/20/24 | (1,921) |
| Total Futures Contracts | | | | | $19,818 |
See Note 7 regarding other derivative information.
See Abbreviations on page 207.
| 83 | Semi-Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
Franklin Templeton ETF Trust
Financial Highlights
Franklin FTSE Eurozone ETF
| | Six Months Ended
September 30, 2024
(unaudited) | Year Ended March 31, |
| | 2024 | 2023 | 2022 | 2021 | 2020 |
| Per share operating performance | | | | | | |
| (for a share outstanding throughout the period) | | | | | | |
| Net asset value, beginning of period | $26.04 | $23.60 | $27.12 | $25.72 | $19.15 | $22.81 |
| Income from investment operationsa: | | | | | | |
| Net investment incomeb | 0.55 | 0.56 | 0.86 | 0.76 | 0.59 | 0.73 |
| Net realized and unrealized gains (losses) | 0.71 | 2.67 | 0.65 | 1.51 | 6.45 | (2.92) |
| Total from investment operations | 1.26 | 3.23 | 1.51 | 2.27 | 7.04 | (2.19) |
| Less distributions from: | | | | | | |
| Net investment income | (0.46) | (0.79) | (0.64) | (0.87) | (0.47) | (1.47) |
| Net realized gains | — | — | (4.39) | — | — | — |
| Total distributions | (0.46) | (0.79) | (5.03) | (0.87) | (0.47) | (1.47) |
| Net asset value, end of period | $26.85 | $26.04 | $23.60 | $27.12 | $25.72 | $19.15 |
| Total returnc | 5.03% | 13.90% | 7.53% | 8.75% | 36.92% | (10.67)% |
| Ratios to average net assetsd | | | | | | |
| Expenses before waiver and payments by affiliates | 0.09% | 0.07%e | 0.15%f | 0.09% | 0.09% | 0.09% |
| Expenses net of waiver and payments by affiliates | 0.09% | 0.07%e | 0.15%f | 0.09% | 0.09% | 0.09% |
| Net investment income | 4.29% | 2.36% | 3.44% | 2.77% | 2.58% | 3.10% |
| Supplemental data | | | | | | |
| Net assets, end of period (000’s) | $21,478 | $20,828 | $14,163 | $21,695 | $15,429 | $3,831 |
| Portfolio turnover rateg | 2.37%h | 77.86%h | 22.30%h | 11.67%h | 12.87%h | 14.81%h |
| aThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of Creation Unit Fund shares in relation to income earned and/or fluctuating fair value of the investments of the Fund. |
| bBased on average daily shares outstanding. |
| cTotal return is not annualized for periods less than one year. Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. |
| dRatios are annualized for periods less than one year. |
| eThe expense ratios include a reversal of excess European Union tax reclaims contingency fees for the year ended 2023. If these fees had not been reversed, the gross and net expense ratios would have been 0.09% each for the year ending March 31, 2024. |
| fExpense ratios are including non-recurring European Union tax reclaim contingent fees that were incurred by the Fund during the period. Without these fees, the gross and net expense ratios would have been 0.09% and 0.09%, respectively, for the year ended March 31, 2023. |
| gPortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash ("Cash creations"). |
| hPortfolio turnover rate excluding cash creations was as follows: | 2.37% | 78.57% | 22.37% | 11.67% | 12.87% | 14.81% |
| franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Semi-Annual Report | 84 |
Franklin Templeton ETF Trust
Schedule of Investments, September 30, 2024 (unaudited)
Franklin FTSE Eurozone ETF
| | | Industry | Shares | | Value |
| | Common Stocks 98.7% | | | | |
| | Austria 0.7% | | | | |
| | ANDRITZ AG | Machinery | 248 | | $ 17,617 |
| | Erste Group Bank AG | Banks | 1,136 | | 62,441 |
| | OMV AG | Oil, Gas & Consumable Fuels | 516 | | 22,091 |
| | Raiffeisen Bank International AG | Banks | 464 | | 9,249 |
| | Telekom Austria AG | Diversified Telecommunication Services | 324 | | 3,182 |
| | Verbund AG | Electric Utilities | 240 | | 19,955 |
| | voestalpine AG | Metals & Mining | 388 | | 10,124 |
| | | | | | 144,659 |
| | Belgium 2.5% | | | | |
| | Ackermans & van Haaren NV | Construction & Engineering | 84 | | 17,878 |
| | Ageas SA | Insurance | 604 | | 32,303 |
| | Anheuser-Busch InBev SA | Beverages | 3,300 | | 218,694 |
| | D’ieteren Group | Distributors | 84 | | 17,803 |
| | Elia Group SA | Electric Utilities | 136 | | 15,588 |
| | Groupe Bruxelles Lambert NV | Financial Services | 308 | | 24,045 |
| | KBC Group NV | Banks | 864 | | 68,868 |
| | Lotus Bakeries NV | Food Products | 1 | | 13,437 |
| | Sofina SA | Financial Services | 64 | | 18,114 |
| | Syensqo SA | Chemicals | 256 | | 22,745 |
| | UCB SA | Pharmaceuticals | 440 | | 79,552 |
| | Warehouses De Pauw CVA | Industrial REITs | 624 | | 16,672 |
| | | | | | 545,699 |
| | Finland 3.2% | | | | |
| | Elisa OYJ | Diversified Telecommunication Services | 516 | | 27,423 |
| | Fortum OYJ | Electric Utilities | 1,576 | | 26,023 |
| | Kesko OYJ, Class B | Consumer Staples Distribution & Retail | 1,000 | | 21,389 |
| | Kone OYJ, Class B | Machinery | 1,176 | | 70,480 |
| | Metso OYJ | Machinery | 2,320 | | 24,857 |
| | Neste OYJ | Oil, Gas & Consumable Fuels | 1,508 | | 29,335 |
| | Nokia OYJ | Communications Equipment | 18,872 | | 82,648 |
| | Nordea Bank Abp | Banks | 12,032 | | 142,206 |
| | Orion OYJ, Class B | Pharmaceuticals | 384 | | 21,094 |
| | Sampo OYJ, Class A | Insurance | 1,808 | | 84,546 |
| | Stora Enso OYJ, Class R | Paper & Forest Products | 2,128 | | 27,312 |
| | UPM-Kymmene OYJ | Paper & Forest Products | 1,924 | | 64,569 |
| | Valmet OYJ | Machinery | 592 | | 19,002 |
| | Wartsila OYJ Abp | Machinery | 1,756 | | 39,391 |
| | | | | | 680,275 |
| | France 32.2% | | | | |
| | Accor SA | Hotels, Restaurants & Leisure | 816 | | 35,517 |
| | Aeroports de Paris SA | Transportation Infrastructure | 116 | | 14,927 |
| | Air Liquide SA | Chemicals | 2,044 | | 395,242 |
| | Airbus SE | Aerospace & Defense | 2,124 | | 311,056 |
| a | Alstom SA | Machinery | 1,252 | | 26,039 |
| b | Amundi SA | Capital Markets | 204 | | 15,266 |
| | Arkema SA | Chemicals | 208 | | 19,848 |
| | AXA SA | Insurance | 6,492 | | 250,184 |
| b | Ayvens SA | Ground Transportation | 496 | | 3,507 |
| | BioMerieux | Health Care Equipment & Supplies | 148 | | 17,773 |
| | BNP Paribas SA | Banks | 3,620 | | 248,668 |
| | Bollore SE | Entertainment | 2,528 | | 16,886 |
| | Bouygues SA | Construction & Engineering | 660 | | 22,142 |
| | Bureau Veritas SA | Professional Services | 1,096 | | 36,427 |
| | Capgemini SE | IT Services | 580 | | 125,546 |
| | Carrefour SA | Consumer Staples Distribution & Retail | 1,860 | | 31,781 |
| 85 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE Eurozone ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | France (continued) | | | | |
| | Cie de Saint-Gobain SA | Building Products | 1,656 | | $ 151,033 |
| | Cie Generale des Etablissements Michelin SCA | Automobile Components | 2,536 | | 103,193 |
| | Covivio SA | Diversified REITs | 192 | | 11,689 |
| | Credit Agricole SA | Banks | 3,636 | | 55,695 |
| | Danone SA | Food Products | 2,272 | | 165,680 |
| | Dassault Aviation SA | Aerospace & Defense | 65 | | 13,420 |
| | Dassault Systemes SE | Software | 2,424 | | 96,390 |
| | Edenred SE | Financial Services | 900 | | 34,171 |
| | Eiffage SA | Construction & Engineering | 276 | | 26,688 |
| | Engie SA | Multi-Utilities | 6,320 | | 109,434 |
| | EssilorLuxottica SA | Health Care Equipment & Supplies | 1,104 | | 261,949 |
| | Eurazeo SE | Financial Services | 180 | | 14,816 |
| | Gecina SA | Office REITs | 188 | | 21,695 |
| | Getlink SE | Transportation Infrastructure | 1,280 | | 22,885 |
| | Hermes International SCA | Textiles, Apparel & Luxury Goods | 122 | | 300,365 |
| | Ipsen SA | Pharmaceuticals | 124 | | 15,292 |
| a | JCDecaux SE | Media | 264 | | 5,922 |
| | Kering SA | Textiles, Apparel & Luxury Goods | 259 | | 74,244 |
| | Klepierre SA | Retail REITs | 740 | | 24,314 |
| b | La Francaise des Jeux SAEM | Hotels, Restaurants & Leisure | 352 | | 14,512 |
| | Legrand SA | Electrical Equipment | 912 | | 105,143 |
| | L’Oreal SA | Personal Care Products | 836 | | 375,120 |
| | LVMH Moet Hennessy Louis Vuitton SE | Textiles, Apparel & Luxury Goods | 891 | | 684,645 |
| b | Neoen SA | Independent Power Producers & Energy Traders | 252 | | 10,969 |
| | Orange SA | Diversified Telecommunication Services | 6,928 | | 79,524 |
| | Pernod Ricard SA | Beverages | 732 | | 110,778 |
| | Publicis Groupe SA | Media | 824 | | 90,307 |
| | Remy Cointreau SA | Beverages | 88 | | 6,860 |
| | Renault SA | Automobiles | 692 | | 30,112 |
| | Rexel SA | Trading Companies & Distributors | 848 | | 24,578 |
| | Safran SA | Aerospace & Defense | 1,220 | | 287,430 |
| | Sanofi SA | Pharmaceuticals | 3,980 | | 457,069 |
| | Sartorius Stedim Biotech | Life Sciences Tools & Services | 92 | | 19,278 |
| | Schneider Electric SE | Electrical Equipment | 1,928 | | 508,242 |
| | SCOR SE | Insurance | 540 | | 12,089 |
| | SEB SA | Household Durables | 92 | | 10,524 |
| | Societe Generale SA | Banks | 2,648 | | 66,051 |
| | Sodexo SA | Hotels, Restaurants & Leisure | 316 | | 25,974 |
| a | SOITEC | Semiconductors & Semiconductor Equipment | 88 | | 8,800 |
| | Teleperformance SE | Professional Services | 216 | | 22,419 |
| | Thales SA | Aerospace & Defense | 352 | | 56,001 |
| | TotalEnergies SE | Oil, Gas & Consumable Fuels | 7,268 | | 474,520 |
| a | Unibail-Rodamco-Westfield | Retail REITs | 372 | | 32,632 |
| | Veolia Environnement SA | Multi-Utilities | 2,260 | | 74,457 |
| | Vinci SA | Construction & Engineering | 1,792 | | 209,896 |
| | Vivendi SE | Media | 2,408 | | 27,896 |
| | Wendel SE | Financial Services | 96 | | 9,836 |
| | | | | | 6,915,346 |
| | Germany 25.7% | | | | |
| | adidas AG | Textiles, Apparel & Luxury Goods | 596 | | 158,243 |
| | Allianz SE | Insurance | 1,412 | | 464,880 |
| | BASF SE | Chemicals | 3,216 | | 170,685 |
| | Bayer AG | Pharmaceuticals | 3,556 | | 120,350 |
| | Bayerische Motoren Werke AG | Automobiles | 1,064 | | 94,024 |
| | Bechtle AG | IT Services | 296 | | 13,254 |
| | Beiersdorf AG | Personal Care Products | 360 | | 54,300 |
| | Brenntag SE | Trading Companies & Distributors | 472 | | 35,283 |
| franklintempleton.com | Semi-Annual Report | 86 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE Eurozone ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | Germany (continued) | | | | |
| | Carl Zeiss Meditec AG | Health Care Equipment & Supplies | 132 | | $ 10,482 |
| | Commerzbank AG | Banks | 3,716 | | 68,533 |
| | Continental AG | Automobile Components | 392 | | 25,436 |
| a,b | Covestro AG | Chemicals | 684 | | 42,703 |
| | CTS Eventim AG & Co. KGaA | Entertainment | 212 | | 22,087 |
| | Daimler Truck Holding AG | Machinery | 1,892 | | 71,012 |
| a,b | Delivery Hero SE | Hotels, Restaurants & Leisure | 708 | | 28,620 |
| | Deutsche Bank AG | Capital Markets | 7,072 | | 122,321 |
| | Deutsche Boerse AG | Capital Markets | 672 | | 158,022 |
| | Deutsche Lufthansa AG | Passenger Airlines | 2,148 | | 15,774 |
| | Deutsche Post AG | Air Freight & Logistics | 3,520 | | 157,258 |
| | Deutsche Telekom AG | Diversified Telecommunication Services | 12,100 | | 356,376 |
| | Deutsche Wohnen SE | Real Estate Management & Development | 176 | | 4,881 |
| b | DWS Group GmbH & Co. KGaA | Capital Markets | 112 | | 4,620 |
| | E.ON SE | Multi-Utilities | 8,016 | | 119,477 |
| | Evonik Industries AG | Chemicals | 912 | | 21,375 |
| | Fielmann Group AG | Specialty Retail | 88 | | 4,557 |
| a | Fraport AG Frankfurt Airport Services Worldwide | Transportation Infrastructure | 132 | | 7,373 |
| | Fresenius Medical Care AG | Health Care Providers & Services | 736 | | 31,370 |
| a | Fresenius SE & Co. KGaA | Health Care Providers & Services | 1,484 | | 56,692 |
| | FUCHS SE | Chemicals | 112 | | 4,212 |
| | GEA Group AG | Machinery | 620 | | 30,418 |
| | Hannover Rueck SE | Insurance | 216 | | 61,737 |
| | Heidelberg Materials AG | Construction Materials | 468 | | 50,978 |
| | Henkel AG & Co. KGaA | Household Products | 356 | | 30,335 |
| | HOCHTIEF AG | Construction & Engineering | 76 | | 9,381 |
| | Infineon Technologies AG | Semiconductors & Semiconductor Equipment | 4,696 | | 164,881 |
| | KION Group AG | Machinery | 256 | | 10,088 |
| | Knorr-Bremse AG | Machinery | 240 | | 21,388 |
| | LEG Immobilien SE | Real Estate Management & Development | 268 | | 28,050 |
| | Mercedes-Benz Group AG | Automobiles | 3,028 | | 196,140 |
| | Merck KGaA | Pharmaceuticals | 468 | | 82,525 |
| | MTU Aero Engines AG | Aerospace & Defense | 196 | | 61,249 |
| | Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen | Insurance | 476 | | 262,592 |
| | Nemetschek SE | Software | 196 | | 20,343 |
| | Puma SE | Textiles, Apparel & Luxury Goods | 364 | | 15,234 |
| | Rational AG | Machinery | 17 | | 17,360 |
| | Rheinmetall AG | Aerospace & Defense | 156 | | 84,684 |
| | RWE AG | Independent Power Producers & Energy Traders | 2,576 | | 93,953 |
| | SAP SE | Software | 3,968 | | 905,183 |
| | Sartorius AG | Life Sciences Tools & Services | 8 | | 1,795 |
| b | Scout24 SE | Interactive Media & Services | 268 | | 23,106 |
| | Siemens AG | Industrial Conglomerates | 2,688 | | 544,010 |
| a | Siemens Energy AG | Electrical Equipment | 2,292 | | 84,593 |
| b | Siemens Healthineers AG | Health Care Equipment & Supplies | 1,008 | | 60,591 |
| | Symrise AG | Chemicals | 472 | | 65,373 |
| | Talanx AG | Insurance | 220 | | 18,562 |
| | Traton SE | Machinery | 188 | | 6,169 |
| | Volkswagen AG | Automobiles | 104 | | 11,642 |
| | Vonovia SE | Real Estate Management & Development | 2,548 | | 93,074 |
| | Wacker Chemie AG | Chemicals | 52 | | 5,142 |
| a,b | Zalando SE | Specialty Retail | 796 | | 26,314 |
| | | | | | 5,531,090 |
| | Ireland 0.9% | | | | |
| | AIB Group PLC | Banks | 6,504 | | 37,347 |
| | Bank of Ireland Group PLC | Banks | 3,676 | | 41,149 |
| 87 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE Eurozone ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | Ireland (continued) | | | | |
| | Glanbia PLC | Food Products | 644 | | $ 11,363 |
| | Kerry Group PLC, Class A | Food Products | 544 | | 56,554 |
| | Kingspan Group PLC | Building Products | 548 | | 51,588 |
| | | | | | 198,001 |
| | Italy 8.4% | | | | |
| | A2A SpA | Multi-Utilities | 5,540 | | 12,823 |
| | Amplifon SpA | Health Care Providers & Services | 464 | | 13,366 |
| | Banca Mediolanum SpA | Financial Services | 780 | | 9,854 |
| | Banco BPM SpA | Banks | 4,956 | | 33,508 |
| | BPER Banca SpA | Banks | 3,820 | | 21,530 |
| | Brunello Cucinelli SpA | Textiles, Apparel & Luxury Goods | 124 | | 13,389 |
| | Buzzi SpA | Construction Materials | 308 | | 12,306 |
| | Davide Campari-Milano NV | Beverages | 1,776 | | 15,064 |
| | DiaSorin SpA | Health Care Equipment & Supplies | 76 | | 8,898 |
| | Enel SpA | Electric Utilities | 28,092 | | 224,951 |
| | Eni SpA | Oil, Gas & Consumable Fuels | 8,152 | | 124,479 |
| | Ferrari NV | Automobiles | 424 | | 198,604 |
| | FinecoBank Banca Fineco SpA | Banks | 2,204 | | 37,819 |
| | Generali | Insurance | 4,528 | | 131,138 |
| | Hera SpA | Multi-Utilities | 2,772 | | 11,082 |
| b | Infrastrutture Wireless Italiane SpA | Diversified Telecommunication Services | 1,252 | | 15,440 |
| | Interpump Group SpA | Machinery | 292 | | 13,648 |
| | Intesa Sanpaolo SpA | Banks | 57,632 | | 246,829 |
| | Italgas SpA | Gas Utilities | 1,812 | | 10,981 |
| | Leonardo SpA | Aerospace & Defense | 1,440 | | 32,174 |
| | Mediobanca Banca di Credito Finanziario SpA | Banks | 1,968 | | 33,660 |
| | Moncler SpA | Textiles, Apparel & Luxury Goods | 820 | | 52,182 |
| a,b | Nexi SpA | Financial Services | 2,872 | | 19,527 |
| b | Pirelli & C SpA | Automobile Components | 1,344 | | 8,175 |
| b | Poste Italiane SpA | Insurance | 1,644 | | 23,100 |
| | Prysmian SpA | Electrical Equipment | 1,012 | | 73,640 |
| | Recordati Industria Chimica e Farmaceutica SpA | Pharmaceuticals | 356 | | 20,184 |
| | Reply SpA | IT Services | 80 | | 12,071 |
| | Snam SpA | Gas Utilities | 8,220 | | 41,934 |
| a | Telecom Italia SpA | Diversified Telecommunication Services | 36,448 | | 10,149 |
| a | Telecom Italia SpA, pfd. | Diversified Telecommunication Services | 17,036 | | 5,426 |
| | Terna - Rete Elettrica Nazionale | Electric Utilities | 5,076 | | 45,819 |
| | UniCredit SpA | Banks | 5,740 | | 252,177 |
| | Unipol Gruppo SpA | Insurance | 1,560 | | 18,577 |
| | | | | | 1,804,504 |
| | Luxembourg 0.4% | | | | |
| | ArcelorMittal SA | Metals & Mining | 1,748 | | 45,923 |
| | Eurofins Scientific SE | Life Sciences Tools & Services | 464 | | 29,465 |
| | RTL Group SA | Media | 140 | | 4,758 |
| | | | | | 80,146 |
| | Netherlands 14.3% | | | | |
| | Aalberts NV | Machinery | 348 | | 14,153 |
| b | ABN AMRO Bank NV | Banks | 1,608 | | 29,082 |
| a,b | Adyen NV | Financial Services | 107 | | 167,495 |
| | Aegon Ltd. | Insurance | 3,916 | | 25,209 |
| | Akzo Nobel NV | Chemicals | 616 | | 43,518 |
| a | Argenx SE | Biotechnology | 216 | | 117,062 |
| | ASM International NV | Semiconductors & Semiconductor Equipment | 168 | | 110,510 |
| | ASML Holding NV | Semiconductors & Semiconductor Equipment | 1,424 | | 1,184,949 |
| | ASR Nederland NV | Insurance | 532 | | 26,124 |
| franklintempleton.com | Semi-Annual Report | 88 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE Eurozone ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | Netherlands (continued) | | | | |
| | BE Semiconductor Industries NV | Semiconductors & Semiconductor Equipment | 276 | | $ 34,977 |
| b | CTP NV | Real Estate Management & Development | 404 | | 7,395 |
| b | Euronext NV | Capital Markets | 284 | | 30,888 |
| | EXOR NV | Financial Services | 360 | | 38,631 |
| | Ferrovial SE | Construction & Engineering | 1,876 | | 80,775 |
| | Heineken Holding NV | Beverages | 476 | | 36,018 |
| | Heineken NV | Beverages | 996 | | 88,527 |
| | IMCD NV | Trading Companies & Distributors | 204 | | 35,494 |
| | ING Groep NV | Banks | 11,684 | | 212,212 |
| | JDE Peet’s NV | Food Products | 352 | | 7,370 |
| | Koninklijke Ahold Delhaize NV | Consumer Staples Distribution & Retail | 3,404 | | 117,884 |
| | Koninklijke KPN NV | Diversified Telecommunication Services | 13,644 | | 55,869 |
| a | Koninklijke Philips NV | Health Care Equipment & Supplies | 2,880 | | 94,562 |
| | Koninklijke Vopak NV | Oil, Gas & Consumable Fuels | 236 | | 10,978 |
| | NN Group NV | Insurance | 988 | | 49,377 |
| | OCI NV | Chemicals | 348 | | 9,935 |
| a | Pluxee NV | Commercial Services & Supplies | 312 | | 6,594 |
| | Prosus NV | Broadline Retail | 4,692 | | 205,585 |
| | Randstad NV | Professional Services | 384 | | 19,114 |
| | Universal Music Group NV | Entertainment | 2,728 | | 71,548 |
| | Wolters Kluwer NV | Professional Services | 872 | | 147,245 |
| | | | | | 3,079,080 |
| | Poland 0.1% | | | | |
| a | InPost SA | Air Freight & Logistics | 864 | | 16,335 |
| | Portugal 0.5% | | | | |
| | EDP SA | Electric Utilities | 10,856 | | 49,699 |
| | Galp Energia SGPS SA, Class B | Oil, Gas & Consumable Fuels | 1,560 | | 29,250 |
| | Jeronimo Martins SGPS SA | Consumer Staples Distribution & Retail | 1,012 | | 19,923 |
| | | | | | 98,872 |
| | Russia 0.0% | | | | |
| a,c,d | Evraz PLC | Metals & Mining | 1,168 | | — |
| | Spain 8.3% | | | | |
| | Acciona SA | Electric Utilities | 84 | | 11,953 |
| | ACS Actividades de Construccion y Servicios SA | Construction & Engineering | 700 | | 32,406 |
| b | Aena SME SA | Transportation Infrastructure | 256 | | 56,456 |
| | Amadeus IT Group SA | Hotels, Restaurants & Leisure | 1,572 | | 113,898 |
| | Banco Bilbao Vizcaya Argentaria SA | Banks | 20,576 | | 222,933 |
| | Banco de Sabadell SA | Banks | 18,992 | | 40,463 |
| | Banco Santander SA | Banks | 54,404 | | 279,331 |
| | Bankinter SA | Banks | 2,344 | | 20,740 |
| | CaixaBank SA | Banks | 14,296 | | 85,583 |
| a,b | Cellnex Telecom SA | Diversified Telecommunication Services | 2,020 | | 82,129 |
| | Corp. ACCIONA Energias Renovables SA | Independent Power Producers & Energy Traders | 204 | | 4,808 |
| | EDP Renovaveis SA | Independent Power Producers & Energy Traders | 1,080 | | 18,936 |
| | Enagas SA | Gas Utilities | 900 | | 13,841 |
| | Endesa SA | Electric Utilities | 1,148 | | 25,150 |
| a | Grifols SA | Biotechnology | 952 | | 10,864 |
| | Iberdrola SA | Electric Utilities | 21,764 | | 337,384 |
| | Industria de Diseno Textil SA | Specialty Retail | 3,800 | | 225,366 |
| | Mapfre SA | Insurance | 3,556 | | 9,493 |
| | Merlin Properties Socimi SA | Diversified REITs | 1,584 | | 20,100 |
| | Naturgy Energy Group SA | Gas Utilities | 460 | | 11,921 |
| | Redeia Corp. SA | Electric Utilities | 1,548 | | 30,182 |
| | Repsol SA | Oil, Gas & Consumable Fuels | 4,256 | | 56,263 |
| 89 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE Eurozone ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | Spain (continued) | | | | |
| | Telefonica SA | Diversified Telecommunication Services | 15,120 | | $ 74,181 |
| | | | | | 1,784,381 |
| | Switzerland 0.7% | | | | |
| | DSM-Firmenich AG | Chemicals | 624 | | 86,112 |
| | STMicroelectronics NV | Semiconductors & Semiconductor Equipment | 2,356 | | 70,074 |
| | | | | | 156,186 |
| | United Kingdom 0.0% | | | | |
| a,c | NMC Health PLC | Health Care Providers & Services | 60 | | — |
| | United States 0.8% | | | | |
| a | Qiagen NV | Life Sciences Tools & Services | 784 | | 35,411 |
| | Stellantis NV | Automobiles | 7,372 | | 102,087 |
| | Tenaris SA | Energy Equipment & Services | 1,596 | | 25,177 |
| | | | | | 162,675 |
| | Total Common Stocks (Cost $19,269,079) | | | | 21,197,249 |
| | Preferred Stocks 0.9% | | | | |
| | Germany 0.9% | | | | |
| e | Bayerische Motoren Werke AG, 8.102%, pfd. | Automobiles | 208 | | 17,248 |
| e | FUCHS SE, 2.547%, pfd. | Chemicals | 240 | | 11,673 |
| e | Henkel AG & Co. KGaA, 2.192%, pfd. | Household Products | 588 | | 55,386 |
| e | Sartorius AG, 0.293%, pfd. | Life Sciences Tools & Services | 91 | | 25,614 |
| e | Volkswagen AG, 9.521%, pfd. | Automobiles | 664 | | 70,519 |
| | | | | | 180,440 |
| | Spain 0.0%† | | | | |
| a | Grifols SA, Class B, pfd. | Biotechnology | 940 | | 8,472 |
| | Total Preferred Stocks (Cost $228,547) | | | | 188,912 |
| | Total Investments before Short-Term Investments (Cost $19,497,626) | | | | 21,386,161 |
| franklintempleton.com | Semi-Annual Report | 90 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE Eurozone ETF (continued)
| | | Industry | Shares | | Value |
| | Short-Term Investments 0.0%† | | | | |
| | Money Market Funds 0.0%† | | | | |
| | United States 0.0%† | | | | |
| f,g | Institutional Fiduciary Trust - Money Market Portfolio, 4.74% | Money Market Funds | 830 | | $ 830 |
| | Total Short-Term Investments (Cost $830) | | | | 830 |
| | Total Investments (Cost $19,498,456) 99.6% | | | | 21,386,991 |
| | Other Assets, less Liabilities 0.4% | | | | 91,099 |
| | Net Assets 100.0% | | | | $ 21,478,090 |
| †Rounds to less than 0.1% of net assets. |
| aNon-income producing. |
| bSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At September 30, 2024, the value of was $669,895, representing 3.1% of net assets. |
| cFair valued using significant unobservable inputs. See Note 8 regarding fair value measurements. |
| dSee Note 6 regarding investments in Russian securities. |
| eVariable rate security. The rate shown represents the yield at period end. |
| fThe rate shown is the annualized seven-day effective yield at period end. |
| gSee Note 3(c) regarding investments in affiliated management investment companies. |
At September 30, 2024, the Fund had the following futures contracts outstanding. See Note 1(c).
Futures Contracts
| Description | Type | Number of
Contracts | Notional
Amount* | Expiration
Date | Value/Unrealized
Appreciation
(Depreciation) |
| Index Contracts | | | | | |
| EURO STOXX 50 Index | Long | 1 | $ 56,137 | 12/20/24 | $ 1,553 |
See Note 7 regarding other derivative information.
See Abbreviations on page 207.
| 91 | Semi-Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
Franklin Templeton ETF Trust
Financial Highlights
Franklin FTSE Germany ETF
| | Six Months Ended
September 30, 2024
(unaudited) | Year Ended March 31, |
| | 2024 | 2023 | 2022 | 2021 | 2020 |
| Per share operating performance | | | | | | |
| (for a share outstanding throughout the period) | | | | | | |
| Net asset value, beginning of period | $24.82 | $22.10 | $22.37 | $25.98 | $16.73 | $20.70 |
| Income from investment operationsa: | | | | | | |
| Net investment incomeb | 0.52 | 0.66 | 0.60 | 0.70 | 0.61 | 0.52 |
| Net realized and unrealized gains (losses) | 1.77 | 2.75 | (0.20) | (3.63) | 9.29 | (3.92) |
| Total from investment operations | 2.29 | 3.41 | 0.40 | (2.93) | 9.90 | (3.40) |
| Less distributions from net investment income | (0.60) | (0.69) | (0.67) | (0.68) | (0.65) | (0.57) |
| Net asset value, end of period | $26.51 | $24.82 | $22.10 | $22.37 | $25.98 | $16.73 |
| Total returnc | 9.52% | 15.78% | 2.41% | (11.68)% | 59.79% | (17.00)% |
| Ratios to average net assetsd | | | | | | |
| Total expenses | 0.09% | 0.09% | 0.09% | 0.09% | 0.09% | 0.09% |
| Net investment income | 4.20% | 2.95% | 3.11% | 2.73% | 2.66% | 2.46% |
| Supplemental data | | | | | | |
| Net assets, end of period (000’s) | $31,809 | $19,857 | $17,683 | $16,775 | $9,093 | $4,182 |
| Portfolio turnover ratee | 2.38%f | 4.14%f | 4.21%f | 6.70%f | 5.79%f | 5.74%f |
| aThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of Creation Unit Fund shares in relation to income earned and/or fluctuating fair value of the investments of the Fund. |
| bBased on average daily shares outstanding. |
| cTotal return is not annualized for periods less than one year. Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. |
| dRatios are annualized for periods less than one year. |
| ePortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash ("Cash creations"). |
| fPortfolio turnover rate excluding cash creations was as follows: | 2.38% | 4.14% | 4.21% | 6.70% | 5.79% | 5.74% |
| franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Semi-Annual Report | 92 |
Franklin Templeton ETF Trust
Schedule of Investments, September 30, 2024 (unaudited)
Franklin FTSE Germany ETF
| | | Industry | Shares | | Value |
| | Common Stocks 96.6% | | | | |
| | Germany 95.9% | | | | |
| | adidas AG | Textiles, Apparel & Luxury Goods | 3,288 | | $ 872,991 |
| | Allianz SE | Insurance | 7,776 | | 2,560,130 |
| | BASF SE | Chemicals | 17,760 | | 942,590 |
| | Bayer AG | Pharmaceuticals | 19,584 | | 662,805 |
| | Bayerische Motoren Werke AG | Automobiles | 5,880 | | 519,609 |
| | Bechtle AG | IT Services | 1,656 | | 74,149 |
| | Beiersdorf AG | Personal Care Products | 1,968 | | 296,842 |
| | Brenntag SE | Trading Companies & Distributors | 2,592 | | 193,760 |
| | Carl Zeiss Meditec AG | Health Care Equipment & Supplies | 744 | | 59,079 |
| | Commerzbank AG | Banks | 20,520 | | 378,445 |
| | Continental AG | Automobile Components | 2,136 | | 138,599 |
| a,b | Covestro AG | Chemicals | 3,768 | | 235,243 |
| | CTS Eventim AG & Co. KGaA | Entertainment | 1,176 | | 122,520 |
| | Daimler Truck Holding AG | Machinery | 10,416 | | 390,941 |
| a,b | Delivery Hero SE | Hotels, Restaurants & Leisure | 3,912 | | 158,136 |
| | Deutsche Bank AG | Capital Markets | 39,096 | | 676,226 |
| | Deutsche Boerse AG | Capital Markets | 3,696 | | 869,121 |
| | Deutsche Lufthansa AG | Passenger Airlines | 11,736 | | 86,185 |
| | Deutsche Post AG | Air Freight & Logistics | 19,416 | | 867,419 |
| | Deutsche Telekom AG | Diversified Telecommunication Services | 66,720 | | 1,965,075 |
| | Deutsche Wohnen SE | Real Estate Management & Development | 1,008 | | 27,956 |
| a | DWS Group GmbH & Co. KGaA | Capital Markets | 648 | | 26,729 |
| | E.ON SE | Multi-Utilities | 44,160 | | 658,198 |
| | Evonik Industries AG | Chemicals | 5,016 | | 117,560 |
| | Fielmann Group AG | Specialty Retail | 480 | | 24,857 |
| b | Fraport AG Frankfurt Airport Services Worldwide | Transportation Infrastructure | 720 | | 40,218 |
| | Fresenius Medical Care AG | Health Care Providers & Services | 4,032 | | 171,852 |
| b | Fresenius SE & Co. KGaA | Health Care Providers & Services | 8,208 | | 313,565 |
| | FUCHS SE | Chemicals | 600 | | 22,567 |
| | GEA Group AG | Machinery | 3,408 | | 167,202 |
| | Hannover Rueck SE | Insurance | 1,200 | | 342,985 |
| | Heidelberg Materials AG | Construction Materials | 2,592 | | 282,337 |
| | Henkel AG & Co. KGaA | Household Products | 1,944 | | 165,649 |
| | HOCHTIEF AG | Construction & Engineering | 432 | | 53,324 |
| | Infineon Technologies AG | Semiconductors & Semiconductor Equipment | 25,872 | | 908,390 |
| | KION Group AG | Machinery | 1,464 | | 57,693 |
| | Knorr-Bremse AG | Machinery | 1,296 | | 115,495 |
| | LEG Immobilien SE | Real Estate Management & Development | 1,488 | | 155,739 |
| | Mercedes-Benz Group AG | Automobiles | 16,728 | | 1,083,565 |
| | Merck KGaA | Pharmaceuticals | 2,568 | | 452,831 |
| | MTU Aero Engines AG | Aerospace & Defense | 1,080 | | 337,494 |
| | Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen | Insurance | 2,632 | | 1,451,979 |
| | Nemetschek SE | Software | 1,080 | | 112,096 |
| | Puma SE | Textiles, Apparel & Luxury Goods | 1,968 | | 82,365 |
| | Rational AG | Machinery | 96 | | 98,034 |
| | Rheinmetall AG | Aerospace & Defense | 864 | | 469,020 |
| | RWE AG | Independent Power Producers & Energy Traders | 14,256 | | 519,952 |
| | SAP SE | Software | 21,888 | | 4,993,105 |
| | Sartorius AG | Life Sciences Tools & Services | 48 | | 10,768 |
| a | Scout24 SE | Interactive Media & Services | 1,464 | | 126,219 |
| | Siemens AG | Industrial Conglomerates | 14,808 | | 2,996,910 |
| b | Siemens Energy AG | Electrical Equipment | 12,600 | | 465,038 |
| a | Siemens Healthineers AG | Health Care Equipment & Supplies | 5,568 | | 334,695 |
| | Symrise AG | Chemicals | 2,592 | | 358,997 |
| 93 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE Germany ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | Germany (continued) | | | | |
| | Talanx AG | Insurance | 1,200 | | $ 101,248 |
| | Traton SE | Machinery | 1,008 | | 33,074 |
| | Volkswagen AG | Automobiles | 576 | | 64,477 |
| | Vonovia SE | Real Estate Management & Development | 14,016 | | 511,981 |
| | Wacker Chemie AG | Chemicals | 288 | | 28,478 |
| a,b | Zalando SE | Specialty Retail | 4,320 | | 142,808 |
| | | | | | 30,497,315 |
| | Luxembourg 0.1% | | | | |
| | RTL Group SA | Media | 744 | | 25,284 |
| | United States 0.6% | | | | |
| b | Qiagen NV | Life Sciences Tools & Services | 4,320 | | 195,120 |
| | Total Common Stocks (Cost $27,481,024) | | | | 30,717,719 |
| | Preferred Stocks 3.1% | | | | |
| | Germany 3.1% | | | | |
| c | Bayerische Motoren Werke AG, 8.102%, pfd. | Automobiles | 1,152 | | 95,527 |
| c | FUCHS SE, 2.547%, pfd. | Chemicals | 1,320 | | 64,201 |
| c | Henkel AG & Co. KGaA, 2.192%, pfd. | Household Products | 3,264 | | 307,451 |
| c | Sartorius AG, 0.293%, pfd. | Life Sciences Tools & Services | 504 | | 141,860 |
| c | Volkswagen AG, 9.521%, pfd. | Automobiles | 3,648 | | 387,430 |
| | Total Preferred Stocks (Cost $1,265,070) | | | | 996,469 |
| | Total Investments before Short-Term Investments (Cost $28,746,094) | | | | 31,714,188 |
| | Short-Term Investments 0.0%† | | | | |
| | Money Market Funds 0.0%† | | | | |
| | United States 0.0%† | | | | |
| d,e | Institutional Fiduciary Trust - Money Market Portfolio, 4.74% | Money Market Funds | 8,537 | | 8,537 |
| | Total Short-Term Investments (Cost $8,537) | | | | 8,537 |
| | Total Investments (Cost $28,754,631) 99.7% | | | | 31,722,725 |
| | Other Assets, less Liabilities 0.3% | | | | 86,281 |
| | Net Assets 100.0% | | | | $ 31,809,006 |
| †Rounds to less than 0.1% of net assets. |
| aSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At September 30, 2024, the value of was $1,023,830, representing 3.2% of net assets. |
| bNon-income producing. |
| cVariable rate security. The rate shown represents the yield at period end. |
| dThe rate shown is the annualized seven-day effective yield at period end. |
| eSee Note 3(c) regarding investments in affiliated management investment companies. |
| franklintempleton.com | Semi-Annual Report | 94 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE Germany ETF (continued)
At September 30, 2024, the Fund had the following futures contracts outstanding. See Note 1(c).
Futures Contracts
| Description | Type | Number of
Contracts | Notional
Amount* | Expiration
Date | Value/Unrealized
Appreciation
(Depreciation) |
| Index Contracts | | | | | |
| Micro DAX | Long | 4 | $ 87,065 | 12/20/24 | $ 2,705 |
See Note 7 regarding other derivative information.
See Abbreviations on page 207.
| 95 | Semi-Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
Franklin Templeton ETF Trust
Financial Highlights
Franklin FTSE Hong Kong ETF
| | Six Months Ended
September 30, 2024
(unaudited) | Year Ended March 31, |
| | 2024 | 2023 | 2022 | 2021 | 2020 |
| Per share operating performance | | | | | | |
| (for a share outstanding throughout the period) | | | | | | |
| Net asset value, beginning of period | $16.42 | $21.34 | $23.43 | $28.10 | $20.58 | $26.82 |
| Income from investment operationsa: | | | | | | |
| Net investment incomeb | 0.55 | 0.90 | 0.77 | 0.74 | 0.72 | 0.77 |
| Net realized and unrealized gains (losses) | 3.00 | (4.84) | (2.03) | (4.72) | 7.61 | (6.25) |
| Total from investment operations | 3.55 | (3.94) | (1.26) | (3.98) | 8.33 | (5.48) |
| Less distributions from net investment income | (0.35) | (0.98) | (0.83) | (0.69) | (0.81) | (0.76) |
| Net asset value, end of period | $19.62 | $16.42 | $21.34 | $23.43 | $28.10 | $20.58 |
| Total returnc | 21.97% | (18.96)% | (5.39)% | (14.41)% | 41.14% | (20.90)% |
| Ratios to average net assetsd | | | | | | |
| Total expenses | 0.09% | 0.09% | 0.09% | 0.09% | 0.09% | 0.09% |
| Net investment income | 6.46% | 4.72% | 3.60% | 2.79% | 2.99% | 3.10% |
| Supplemental data | | | | | | |
| Net assets, end of period (000’s) | $13,734 | $9,854 | $17,069 | $17,573 | $16,862 | $15,433 |
| Portfolio turnover ratee | 3.94%f | 6.76%f | 9.00%f | 9.91%f | 14.84%f | 5.99%f |
| aThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of Creation Unit Fund shares in relation to income earned and/or fluctuating fair value of the investments of the Fund. |
| bBased on average daily shares outstanding. |
| cTotal return is not annualized for periods less than one year. Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. |
| dRatios are annualized for periods less than one year. |
| ePortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash ("Cash creations"). |
| fPortfolio turnover rate excluding cash creations was as follows: | 3.94% | 6.76% | 8.84% | 9.74% | 14.84% | 5.99% |
| franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Semi-Annual Report | 96 |
Franklin Templeton ETF Trust
Schedule of Investments, September 30, 2024 (unaudited)
Franklin FTSE Hong Kong ETF
| | | Industry | Shares | | Value |
| | Common Stocks 99.3% | | | | |
| | Cambodia 0.2% | | | | |
| a | NagaCorp Ltd. | Hotels, Restaurants & Leisure | 44,922 | | $ 21,572 |
| | China 11.5% | | | | |
| | AAC Technologies Holdings, Inc., Class H | Electronic Equipment, Instruments & Components | 22,500 | | 92,404 |
| | BOC Hong Kong Holdings Ltd. | Banks | 118,500 | | 379,871 |
| b | Budweiser Brewing Co. APAC Ltd., Class H | Beverages | 55,300 | | 74,469 |
| | Chow Tai Fook Jewellery Group Ltd., Class A | Specialty Retail | 57,400 | | 64,661 |
| b | ESR Group Ltd., Class H | Real Estate Management & Development | 86,800 | | 138,567 |
| a | HUTCHMED China Ltd. | Pharmaceuticals | 16,500 | | 68,400 |
| | Kerry Logistics Network Ltd. | Air Freight & Logistics | 9,000 | | 10,034 |
| | Lenovo Group Ltd. | Technology Hardware, Storage & Peripherals | 252,000 | | 343,894 |
| a | MMG Ltd. | Metals & Mining | 112,000 | | 39,941 |
| | Nexteer Automotive Group Ltd. | Automobile Components | 28,000 | | 12,004 |
| | Shangri-La Asia Ltd. | Hotels, Restaurants & Leisure | 36,000 | | 26,140 |
| | Shenzhou International Group Holdings Ltd. | Textiles, Apparel & Luxury Goods | 24,500 | | 222,527 |
| | SITC International Holdings Co. Ltd. | Marine Transportation | 42,000 | | 113,550 |
| | | | | | 1,586,462 |
| | Hong Kong 76.4% | | | | |
| | AIA Group Ltd. | Insurance | 326,800 | | 2,930,366 |
| | ASMPT Ltd., Class A | Semiconductors & Semiconductor Equipment | 10,200 | | 124,750 |
| | Bank of East Asia Ltd., Class A | Banks | 46,200 | | 59,479 |
| | Cathay Pacific Airways Ltd., Class A | Passenger Airlines | 33,000 | | 35,475 |
| | Champion REIT, Class A | Office REITs | 63,000 | | 15,491 |
| | CK Asset Holdings Ltd. | Real Estate Management & Development | 62,500 | | 275,185 |
| | CK Infrastructure Holdings Ltd., Class A | Electric Utilities | 19,200 | | 131,502 |
| | CLP Holdings Ltd. | Electric Utilities | 53,750 | | 476,432 |
| | Dah Sing Banking Group Ltd., Class A | Banks | 11,200 | | 10,050 |
| | DFI Retail Group Holdings Ltd., Class A | Consumer Staples Distribution & Retail | 9,800 | | 21,266 |
| | Hang Lung Group Ltd. | Real Estate Management & Development | 28,000 | | 37,850 |
| | Hang Lung Properties Ltd. | Real Estate Management & Development | 56,000 | | 54,720 |
| | Hang Seng Bank Ltd. | Banks | 23,800 | | 299,511 |
| | Henderson Land Development Co. Ltd. | Real Estate Management & Development | 42,000 | | 134,097 |
| | Hong Kong & China Gas Co. Ltd. | Gas Utilities | 357,000 | | 294,149 |
| | Hong Kong Exchanges & Clearing Ltd. | Capital Markets | 41,600 | | 1,747,012 |
| | Hongkong Land Holdings Ltd. | Real Estate Management & Development | 35,700 | | 131,019 |
| | Huabao International Holdings Ltd. | Chemicals | 28,000 | | 9,517 |
| | Hysan Development Co. Ltd. | Real Estate Management & Development | 21,000 | | 36,336 |
| | Jardine Matheson Holdings Ltd. | Industrial Conglomerates | 6,510 | | 254,281 |
| | Johnson Electric Holdings Ltd. | Automobile Components | 12,000 | | 17,797 |
| | Kerry Properties Ltd. | Real Estate Management & Development | 19,500 | | 41,573 |
| | Link REIT | Retail REITs | 84,000 | | 424,461 |
| | Man Wah Holdings Ltd. | Household Durables | 47,600 | | 39,587 |
| a | Melco International Development Ltd. | Hotels, Restaurants & Leisure | 26,000 | | 17,305 |
| | MTR Corp. Ltd. | Ground Transportation | 47,500 | | 179,482 |
| | New World Development Co. Ltd. | Real Estate Management & Development | 47,000 | | 58,391 |
| | NWS Holdings Ltd. | Industrial Conglomerates | 31,000 | | 32,008 |
| | Orient Overseas International Ltd. | Marine Transportation | 4,200 | | 59,695 |
| | PCCW Ltd. | Diversified Telecommunication Services | 136,000 | | 74,763 |
| | Power Assets Holdings Ltd. | Electric Utilities | 45,000 | | 288,510 |
| | Sino Land Co. Ltd. | Real Estate Management & Development | 114,300 | | 125,520 |
| | Sun Hung Kai Properties Ltd. | Real Estate Management & Development | 46,666 | | 513,972 |
| a | Super Hi International Holding Ltd. | Hotels, Restaurants & Leisure | 7,000 | | 12,743 |
| | Swire Pacific Ltd., Class A | Industrial Conglomerates | 13,000 | | 111,130 |
| | Swire Pacific Ltd., Class B | Industrial Conglomerates | 25,000 | | 33,859 |
| | Swire Properties Ltd. | Real Estate Management & Development | 35,000 | | 72,005 |
| | Techtronic Industries Co. Ltd. | Machinery | 43,000 | | 653,788 |
| | United Energy Group Ltd. | Oil, Gas & Consumable Fuels | 238,000 | | 11,797 |
| 97 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE Hong Kong ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | Hong Kong (continued) | | | | |
| | VTech Holdings Ltd. | Communications Equipment | 5,600 | | $ 39,148 |
| b | WH Group Ltd. | Food Products | 255,500 | | 202,624 |
| | Wharf Holdings Ltd. | Real Estate Management & Development | 31,666 | | 90,503 |
| | Wharf Real Estate Investment Co. Ltd. | Real Estate Management & Development | 51,166 | | 181,148 |
| | Xinyi Glass Holdings Ltd. | Building Products | 69,133 | | 82,417 |
| | Yue Yuen Industrial Holdings Ltd. | Textiles, Apparel & Luxury Goods | 23,500 | | 44,897 |
| | | | | | 10,487,611 |
| | Indonesia 0.3% | | | | |
| | First Pacific Co. Ltd. | Food Products | 74,000 | | 40,966 |
| | Italy 0.9% | | | | |
| | PRADA SpA | Textiles, Apparel & Luxury Goods | 16,800 | | 129,771 |
| | Macau 4.9% | | | | |
| | Galaxy Entertainment Group Ltd. | Hotels, Restaurants & Leisure | 71,280 | | 358,350 |
| | MGM China Holdings Ltd. | Hotels, Restaurants & Leisure | 25,200 | | 40,229 |
| a | Sands China Ltd. | Hotels, Restaurants & Leisure | 78,400 | | 201,059 |
| a | SJM Holdings Ltd. | Hotels, Restaurants & Leisure | 77,000 | | 30,632 |
| | Wynn Macau Ltd. | Hotels, Restaurants & Leisure | 47,600 | | 41,426 |
| | | | | | 671,696 |
| | Singapore 0.4% | | | | |
| b | BOC Aviation Ltd., Class A | Trading Companies & Distributors | 7,000 | | 57,947 |
| | Taiwan 0.1% | | | | |
| a,b | FIT Hon Teng Ltd. | Electronic Equipment, Instruments & Components | 35,000 | | 10,949 |
| | United Kingdom 3.7% | | | | |
| | CK Hutchison Holdings Ltd., Class A | Industrial Conglomerates | 87,500 | | 503,540 |
| | United States 0.9% | | | | |
| b | Samsonite International SA | Textiles, Apparel & Luxury Goods | 45,300 | | 124,805 |
| | Total Common Stocks (Cost $16,086,543) | | | | 13,635,319 |
| | Total Investments before Short-Term Investments (Cost $16,086,543) | | | | 13,635,319 |
| | Short-Term Investments 0.0%† | | | | |
| | Money Market Funds 0.0%† | | | | |
| | United States 0.0%† | | | | |
| c,d | Institutional Fiduciary Trust - Money Market Portfolio, 4.74% | Money Market Funds | 460 | | 460 |
| | Total Short-Term Investments (Cost $460) | | | | 460 |
| | Total Investments (Cost $16,087,003) 99.3% | | | | 13,635,779 |
| | Other Assets, less Liabilities 0.7% | | | | 98,202 |
| | Net Assets 100.0% | | | | $ 13,733,981 |
| †Rounds to less than 0.1% of net assets. |
| aNon-income producing. |
| bSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At September 30, 2024, the value of was $609,361, representing 4.4% of net assets. |
| cThe rate shown is the annualized seven-day effective yield at period end. |
| dSee Note 3(c) regarding investments in affiliated management investment companies. |
| franklintempleton.com | Semi-Annual Report | 98 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE Hong Kong ETF (continued)
At September 30, 2024, the Fund had the following futures contracts outstanding. See Note 1(c).
Futures Contracts
| Description | Type | Number of
Contracts | Notional
Amount* | Expiration
Date | Value/Unrealized
Appreciation
(Depreciation) |
| Equity Contracts | | | | | |
| MINI HSI IDX | Long | 3 | $ 82,181 | 10/30/24 | $ 6,791 |
See Note 7 regarding other derivative information.
See Abbreviations on page 207.
| 99 | Semi-Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
Franklin Templeton ETF Trust
Financial Highlights
Franklin FTSE India ETF
| | Six Months Ended
September 30, 2024
(unaudited) | Year Ended March 31, |
| | 2024 | 2023 | 2022 | 2021 | 2020 |
| Per share operating performance | | | | | | |
| (for a share outstanding throughout the period) | | | | | | |
| Net asset value, beginning of period | $36.56 | $27.49 | $31.34 | $27.70 | $15.98 | $23.36 |
| Income from investment operationsa: | | | | | | |
| Net investment incomeb | 0.20 | 0.27 | 0.28 | 0.27 | 0.20 | 0.26 |
| Net realized and unrealized gains (losses) | 5.49 | 9.06 | (3.92) | 4.09 | 11.70 | (7.43) |
| Total from investment operations | 5.69 | 9.33 | (3.64) | 4.36 | 11.90 | (7.17) |
| Less distributions from net investment income | (0.35) | (0.26) | (0.21) | (0.72) | (0.18) | (0.21) |
| Net asset value, end of period | $41.90 | $36.56 | $27.49 | $31.34 | $27.70 | $15.98 |
| Total returnc | 15.71% | 33.98% | (11.65)% | 15.75% | 74.87% | (30.98)% |
| Ratios to average net assetsd | | | | | | |
| Total expenses | 0.19% | 0.19% | 0.19% | 0.19% | 0.19% | 0.19% |
| Net investment income | 1.00% | 0.80% | 0.98% | 0.86% | 0.89% | 1.20% |
| Supplemental data | | | | | | |
| Net assets, end of period (000’s) | $1,812,150 | $890,136 | $98,977 | $50,140 | $23,544 | $8,790 |
| Portfolio turnover ratee | 2.83%f | 10.90%f | 6.73%f | 10.73%f | 23.48%f | 36.55%f |
| aThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of Creation Unit Fund shares in relation to income earned and/or fluctuating fair value of the investments of the Fund. |
| bBased on average daily shares outstanding. |
| cTotal return is not annualized for periods less than one year. Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. |
| dRatios are annualized for periods less than one year. |
| ePortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash ("Cash creations"). |
| fPortfolio turnover rate excluding cash creations was as follows: | 2.83% | 6.24% | 6.23% | 8.16% | 16.91% | 6.83% |
| franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Semi-Annual Report | 100 |
Franklin Templeton ETF Trust
Schedule of Investments, September 30, 2024 (unaudited)
Franklin FTSE India ETF
| | | Industry | Shares | | Value |
| | Common Stocks 102.0% | | | | |
| | India 102.0% | | | | |
| | 3M India Ltd. | Industrial Conglomerates | 2,803 | | $ 1,131,686 |
| | Aarti Industries Ltd. | Chemicals | 190,060 | | 1,322,122 |
| | ABB India Ltd. | Electrical Equipment | 52,460 | | 5,042,470 |
| | ACC Ltd. | Construction Materials | 80,279 | | 2,407,807 |
| a | Adani Energy Solutions Ltd. | Electric Utilities | 373,240 | | 4,496,851 |
| | Adani Enterprises Ltd. | Trading Companies & Distributors | 307,880 | | 11,520,896 |
| a | Adani Green Energy Ltd. | Independent Power Producers & Energy Traders | 417,960 | | 9,489,745 |
| | Adani Ports & Special Economic Zone Ltd. | Transportation Infrastructure | 726,700 | | 12,558,368 |
| a | Adani Power Ltd. | Independent Power Producers & Energy Traders | 1,132,620 | | 8,868,228 |
| | Adani Total Gas Ltd. | Gas Utilities | 228,960 | | 2,148,859 |
| a | Adani Wilmar Ltd. | Food Products | 157,771 | | 655,738 |
| a | Aditya Birla Capital Ltd. | Financial Services | 804,960 | | 2,281,134 |
| | AIA Engineering Ltd. | Machinery | 38,700 | | 2,002,580 |
| | Alkem Laboratories Ltd. | Pharmaceuticals | 50,847 | | 3,672,579 |
| | Ambuja Cements Ltd. | Construction Materials | 788,112 | | 5,948,840 |
| | APL Apollo Tubes Ltd. | Metals & Mining | 194,875 | | 3,683,850 |
| | Apollo Hospitals Enterprise Ltd. | Health Care Providers & Services | 98,040 | | 8,422,364 |
| | Ashok Leyland Ltd. | Machinery | 1,390,620 | | 3,906,290 |
| | Asian Paints Ltd. | Chemicals | 448,060 | | 17,799,693 |
| | Astral Ltd. | Building Products | 116,960 | | 2,776,782 |
| b | AU Small Finance Bank Ltd. | Banks | 362,060 | | 3,198,005 |
| | Aurobindo Pharma Ltd. | Pharmaceuticals | 260,925 | | 4,548,060 |
| a,b | Avenue Supermarts Ltd. | Consumer Staples Distribution & Retail | 147,920 | | 8,995,626 |
| | Axis Bank Ltd. | Banks | 2,254,060 | | 33,143,333 |
| | Bajaj Auto Ltd. | Automobiles | 66,050 | | 9,730,762 |
| | Bajaj Finance Ltd. | Consumer Finance | 246,820 | | 22,687,662 |
| | Bajaj Finserv Ltd. | Financial Services | 377,540 | | 8,890,529 |
| | Bajaj Holdings & Investment Ltd. | Financial Services | 26,660 | | 3,338,718 |
| | Balkrishna Industries Ltd. | Automobile Components | 79,980 | | 2,911,066 |
| b | Bandhan Bank Ltd. | Banks | 774,000 | | 1,835,590 |
| | Bank of Baroda | Banks | 1,029,420 | | 3,043,991 |
| | Bank of India | Banks | 891,820 | | 1,177,015 |
| | Bank of Maharashtra | Banks | 953,740 | | 686,159 |
| | Bata India Ltd. | Textiles, Apparel & Luxury Goods | 62,780 | | 1,078,556 |
| | Bayer CropScience Ltd. | Chemicals | 12,900 | | 987,005 |
| | Berger Paints India Ltd. | Chemicals | 290,277 | | 2,155,569 |
| c | Bharat Dynamics Ltd. | Aerospace & Defense | 72,240 | | 999,966 |
| | Bharat Electronics Ltd. | Aerospace & Defense | 3,525,140 | | 11,992,869 |
| | Bharat Forge Ltd. | Automobile Components | 251,120 | | 4,544,665 |
| | Bharat Heavy Electricals Ltd. | Electrical Equipment | 1,257,320 | | 4,196,505 |
| | Bharat Petroleum Corp. Ltd. | Oil, Gas & Consumable Fuels | 1,975,420 | | 8,720,713 |
| | Bharti Airtel Ltd. | Wireless Telecommunication Services | 167,700 | | 2,616,321 |
| | Bharti Airtel Ltd. | Wireless Telecommunication Services | 2,480,240 | | 50,597,029 |
| | Biocon Ltd. | Biotechnology | 453,220 | | 1,963,744 |
| | Bosch Ltd. | Automobile Components | 8,621 | | 3,876,193 |
| | Britannia Industries Ltd. | Food Products | 116,960 | | 8,846,050 |
| | Canara Bank | Banks | 1,805,140 | | 2,398,129 |
| | Castrol India Ltd. | Chemicals | 483,320 | | 1,417,641 |
| a | Central Bank of India Ltd. | Banks | 597,700 | | 419,596 |
| | CG Power & Industrial Solutions Ltd. | Electrical Equipment | 630,380 | | 5,709,819 |
| | Cholamandalam Investment & Finance Co. Ltd. | Consumer Finance | 404,816 | | 7,767,714 |
| | Cipla Ltd. | Pharmaceuticals | 528,040 | | 10,422,648 |
| | Coal India Ltd. | Oil, Gas & Consumable Fuels | 2,236,000 | | 13,611,914 |
| b | Cochin Shipyard Ltd. | Machinery | 71,380 | | 1,482,391 |
| | Coforge Ltd. | IT Services | 61,920 | | 5,184,393 |
| | Colgate-Palmolive India Ltd. | Personal Care Products | 130,720 | | 5,934,568 |
| 101 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE India ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | India (continued) | | | | |
| | Container Corp. of India Ltd. | Ground Transportation | 271,760 | | $ 2,977,965 |
| | Coromandel International Ltd. | Chemicals | 124,640 | | 2,490,755 |
| | Cummins India Ltd. | Machinery | 133,300 | | 6,054,163 |
| | Dabur India Ltd. | Personal Care Products | 573,620 | | 4,279,497 |
| | Dalmia Bharat Ltd. | Construction Materials | 80,840 | | 1,864,887 |
| | Deepak Nitrite Ltd. | Chemicals | 68,561 | | 2,378,409 |
| | Divi’s Laboratories Ltd. | Life Sciences Tools & Services | 125,560 | | 8,155,809 |
| c | Dixon Technologies India Ltd. | Household Durables | 35,300 | | 5,814,282 |
| | DLF Ltd. | Real Estate Management & Development | 617,480 | | 6,595,811 |
| b | Dr. Lal PathLabs Ltd. | Health Care Providers & Services | 34,400 | | 1,355,742 |
| | Dr. Reddy’s Laboratories Ltd. | Pharmaceuticals | 119,618 | | 9,637,242 |
| | Eicher Motors Ltd. | Automobiles | 137,600 | | 8,253,003 |
| | Emami Ltd. | Personal Care Products | 205,894 | | 1,882,502 |
| | Embassy Office Parks REIT | Office REITs | 871,180 | | 4,053,422 |
| b | Endurance Technologies Ltd. | Automobile Components | 32,680 | | 936,221 |
| | Escorts Kubota Ltd. | Machinery | 33,540 | | 1,708,513 |
| | Exide Industries Ltd. | Automobile Components | 456,660 | | 2,738,557 |
| | Federal Bank Ltd. | Banks | 1,779,340 | | 4,177,140 |
| a | FSN E-Commerce Ventures Ltd. | Specialty Retail | 1,347,620 | | 3,145,633 |
| | GAIL India Ltd. | Gas Utilities | 2,600,640 | | 7,457,022 |
| | GE T&D India Ltd. | Electrical Equipment | 102,540 | | 2,056,887 |
| b | General Insurance Corp. of India | Insurance | 162,540 | | 767,301 |
| | GlaxoSmithKline Pharmaceuticals Ltd. | Pharmaceuticals | 42,140 | | 1,383,132 |
| | Glenmark Pharmaceuticals Ltd. | Pharmaceuticals | 149,640 | | 2,988,291 |
| a | GMR Airports Infrastructure Ltd. | Transportation Infrastructure | 3,535,460 | | 3,968,263 |
| | Godrej Consumer Products Ltd. | Personal Care Products | 359,480 | | 5,977,231 |
| a | Godrej Industries Ltd. | Industrial Conglomerates | 65,360 | | 963,617 |
| a | Godrej Properties Ltd. | Real Estate Management & Development | 103,200 | | 3,892,663 |
| | Grasim Industries Ltd. | Construction Materials | 368,080 | | 12,278,887 |
| | Gujarat Fluorochemicals Ltd. | Chemicals | 39,560 | | 2,017,176 |
| | Gujarat Gas Ltd. | Gas Utilities | 201,080 | | 1,483,843 |
| | Havells India Ltd. | Electrical Equipment | 237,360 | | 5,701,370 |
| | HCL Technologies Ltd. | IT Services | 1,043,180 | | 22,358,325 |
| b | HDFC Asset Management Co. Ltd. | Capital Markets | 98,900 | | 5,073,919 |
| | HDFC Bank Ltd. | Banks | 5,551,300 | | 114,737,300 |
| b | HDFC Life Insurance Co. Ltd. | Insurance | 973,520 | | 8,341,014 |
| | Hero MotoCorp Ltd. | Automobiles | 129,000 | | 8,793,420 |
| | Hindalco Industries Ltd. | Metals & Mining | 1,362,240 | | 12,292,488 |
| c | Hindustan Aeronautics Ltd. | Aerospace & Defense | 185,760 | | 9,799,137 |
| | Hindustan Petroleum Corp. Ltd. | Oil, Gas & Consumable Fuels | 898,700 | | 4,724,539 |
| | Hindustan Unilever Ltd. | Personal Care Products | 874,620 | | 30,875,295 |
| | Hindustan Zinc Ltd. | Metals & Mining | 250,332 | | 1,560,818 |
| | Hitachi Energy India Ltd. | Electrical Equipment | 10,544 | | 1,830,112 |
| | Honeywell Automation India Ltd. | Electronic Equipment, Instruments & Components | 2,200 | | 1,285,839 |
| | Housing & Urban Development Corp. Ltd. | Financial Services | 494,500 | | 1,426,830 |
| | ICICI Bank Ltd. | Banks | 3,813,240 | | 57,925,801 |
| b | ICICI Lombard General Insurance Co. Ltd. | Insurance | 238,220 | | 6,181,120 |
| b | ICICI Prudential Life Insurance Co. Ltd. | Insurance | 380,829 | | 3,545,338 |
| | IDBI Bank Ltd. | Banks | 562,728 | | 585,484 |
| a | IDFC First Bank Ltd. | Banks | 3,646,400 | | 3,235,153 |
| | Indian Bank | Banks | 269,180 | | 1,683,314 |
| | Indian Hotels Co. Ltd. | Hotels, Restaurants & Leisure | 818,912 | | 6,690,939 |
| | Indian Oil Corp. Ltd. | Oil, Gas & Consumable Fuels | 4,044,580 | | 8,694,752 |
| | Indian Railway Catering & Tourism Corp. Ltd. | Commercial Services & Supplies | 296,700 | | 3,287,550 |
| b | Indian Railway Finance Corp. Ltd. | Financial Services | 1,746,660 | | 3,308,183 |
| franklintempleton.com | Semi-Annual Report | 102 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE India ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | India (continued) | | | | |
| a | Indian Renewable Energy Development Agency Ltd. | Financial Services | 669,080 | | $ 1,875,312 |
| | Indraprastha Gas Ltd. | Gas Utilities | 348,300 | | 2,321,480 |
| a | Indus Towers Ltd. | Diversified Telecommunication Services | 1,302,040 | | 6,099,143 |
| | Info Edge India Ltd. | Interactive Media & Services | 75,680 | | 7,315,654 |
| | Infosys Ltd. | IT Services | 3,459,780 | | 77,435,162 |
| a,b | InterGlobe Aviation Ltd. | Passenger Airlines | 182,320 | | 10,415,691 |
| | Ipca Laboratories Ltd. | Pharmaceuticals | 134,160 | | 2,398,354 |
| | IRB Infrastructure Developers Ltd. | Construction & Engineering | 2,850,040 | | 2,076,621 |
| | ITC Ltd. | Tobacco | 2,956,680 | | 18,281,395 |
| | Jindal Stainless Ltd. | Metals & Mining | 318,200 | | 3,001,591 |
| | Jindal Steel & Power Ltd. | Metals & Mining | 383,560 | | 4,758,499 |
| a | Jio Financial Services Ltd. | Financial Services | 3,113,200 | | 13,024,721 |
| | JSW Energy Ltd. | Independent Power Producers & Energy Traders | 529,760 | | 4,634,067 |
| | JSW Infrastructure Ltd. | Transportation Infrastructure | 245,095 | | 1,009,320 |
| | JSW Steel Ltd. | Metals & Mining | 996,740 | | 12,251,512 |
| | Jubilant Foodworks Ltd. | Hotels, Restaurants & Leisure | 359,480 | | 2,925,128 |
| | Kalyan Jewellers India Ltd. | Textiles, Apparel & Luxury Goods | 390,440 | | 3,402,322 |
| | Kansai Nerolac Paints Ltd. | Chemicals | 201,882 | | 745,603 |
| | KEI Industries Ltd. | Electrical Equipment | 55,900 | | 2,866,533 |
| | Kotak Mahindra Bank Ltd. | Banks | 687,140 | | 15,201,721 |
| | KPIT Technologies Ltd. | Software | 164,260 | | 3,191,066 |
| | L&T Finance Ltd. | Financial Services | 839,102 | | 1,860,616 |
| b | L&T Technology Services Ltd. | Professional Services | 25,874 | | 1,650,060 |
| | Larsen & Toubro Ltd. | Construction & Engineering | 664,780 | | 29,157,466 |
| b | Laurus Labs Ltd. | Pharmaceuticals | 386,140 | | 2,136,179 |
| | LIC Housing Finance Ltd. | Financial Services | 297,560 | | 2,352,216 |
| | Linde India Ltd. | Chemicals | 20,640 | | 2,089,855 |
| | Lloyds Metals & Energy Ltd. | Metals & Mining | 116,100 | | 1,313,864 |
| b | LTIMindtree Ltd. | IT Services | 90,300 | | 6,728,597 |
| | Lupin Ltd. | Pharmaceuticals | 237,360 | | 6,206,107 |
| b | Macrotech Developers Ltd. | Real Estate Management & Development | 210,283 | | 3,097,488 |
| | Mahindra & Mahindra Financial Services Ltd. | Consumer Finance | 583,940 | | 2,357,675 |
| | Mahindra & Mahindra Ltd. | Automobiles | 901,280 | | 33,285,559 |
| | Mangalore Refinery & Petrochemicals Ltd. | Oil, Gas & Consumable Fuels | 198,223 | | 430,928 |
| a | Mankind Pharma Ltd. | Pharmaceuticals | 93,740 | | 2,819,653 |
| | Marico Ltd. | Food Products | 516,860 | | 4,289,011 |
| | Maruti Suzuki India Ltd. | Automobiles | 135,875 | | 21,464,038 |
| a | Max Financial Services Ltd. | Insurance | 238,220 | | 3,385,630 |
| | Max Healthcare Institute Ltd. | Health Care Providers & Services | 730,140 | | 8,588,601 |
| | Mazagon Dock Shipbuilders Ltd. | Aerospace & Defense | 29,240 | | 1,475,970 |
| | Metro Brands Ltd. | Specialty Retail | 30,896 | | 470,309 |
| | Motilal Oswal Financial Services Ltd. | Capital Markets | 140,180 | | 1,274,816 |
| | Mphasis Ltd. | IT Services | 109,220 | | 3,923,520 |
| | MRF Ltd. | Automobile Components | 2,667 | | 4,408,239 |
| | Muthoot Finance Ltd. | Consumer Finance | 106,640 | | 2,585,600 |
| | Nestle India Ltd. | Food Products | 354,320 | | 11,373,375 |
| b | New India Assurance Co. Ltd. | Insurance | 218,536 | | 600,965 |
| | NHPC Ltd. | Independent Power Producers & Energy Traders | 2,915,400 | | 3,303,259 |
| b | Nippon Life India Asset Management Ltd. | Capital Markets | 168,928 | | 1,313,406 |
| | NLC India Ltd. | Independent Power Producers & Energy Traders | 342,280 | | 1,153,850 |
| | NMDC Ltd. | Metals & Mining | 1,142,940 | | 3,340,254 |
| | NTPC Ltd. | Independent Power Producers & Energy Traders | 4,668,940 | | 24,692,641 |
| | Oberoi Realty Ltd. | Real Estate Management & Development | 117,483 | | 2,652,721 |
| | Oil & Natural Gas Corp. Ltd. | Oil, Gas & Consumable Fuels | 3,825,280 | | 13,584,563 |
| | Oil India Ltd. | Oil, Gas & Consumable Fuels | 536,640 | | 3,718,322 |
| 103 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE India ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | India (continued) | | | | |
| a | One 97 Communications Ltd. | Financial Services | 347,440 | | $ 2,853,692 |
| | Oracle Financial Services Software Ltd. | Software | 22,806 | | 3,118,415 |
| | Page Industries Ltd. | Textiles, Apparel & Luxury Goods | 6,072 | | 3,108,716 |
| | Patanjali Foods Ltd. | Food Products | 93,740 | | 1,883,106 |
| a | PB Fintech Ltd. | Insurance | 311,320 | | 6,018,082 |
| | Persistent Systems Ltd. | IT Services | 99,760 | | 6,488,351 |
| | Petronet LNG Ltd. | Oil, Gas & Consumable Fuels | 743,900 | | 3,031,924 |
| | Phoenix Mills Ltd. | Real Estate Management & Development | 184,068 | | 4,053,938 |
| | PI Industries Ltd. | Chemicals | 79,980 | | 4,443,453 |
| | Pidilite Industries Ltd. | Chemicals | 150,500 | | 6,033,200 |
| | Piramal Enterprises Ltd. | Financial Services | 118,331 | | 1,558,472 |
| | Polycab India Ltd. | Electrical Equipment | 47,370 | | 3,931,538 |
| | Poonawalla Fincorp Ltd. | Consumer Finance | 268,320 | | 1,262,974 |
| | Power Finance Corp. Ltd. | Financial Services | 1,432,760 | | 8,344,249 |
| | Power Grid Corp. of India Ltd. | Electric Utilities | 4,134,880 | | 17,410,151 |
| | Prestige Estates Projects Ltd. | Real Estate Management & Development | 126,420 | | 2,783,688 |
| | Punjab National Bank | Banks | 2,158,600 | | 2,761,576 |
| c | Rail Vikas Nigam Ltd. | Construction & Engineering | 559,000 | | 3,545,061 |
| a | Rajesh Exports Ltd. | Textiles, Apparel & Luxury Goods | 132,440 | | 458,792 |
| b | RBL Bank Ltd. | Banks | 356,087 | | 868,023 |
| | REC Ltd. | Financial Services | 1,230,660 | | 8,143,088 |
| | Relaxo Footwears Ltd. | Textiles, Apparel & Luxury Goods | 71,909 | | 696,040 |
| | Reliance Industries Ltd. | Oil, Gas & Consumable Fuels | 3,276,600 | | 115,467,147 |
| | Samvardhana Motherson International Ltd. | Automobile Components | 2,650,520 | | 6,685,979 |
| | SBI Cards & Payment Services Ltd. | Consumer Finance | 289,820 | | 2,675,780 |
| b | SBI Life Insurance Co. Ltd. | Insurance | 414,600 | | 9,123,043 |
| | Schaeffler India Ltd. | Machinery | 40,103 | | 1,872,897 |
| | Shree Cement Ltd. | Construction Materials | 13,412 | | 4,210,617 |
| | Shriram Finance Ltd. | Consumer Finance | 276,920 | | 11,819,979 |
| | Siemens Ltd. | Industrial Conglomerates | 87,812 | | 7,596,987 |
| | SJVN Ltd. | Electric Utilities | 712,940 | | 1,127,330 |
| | Solar Industries India Ltd. | Chemicals | 24,200 | | 3,329,573 |
| b | Sona Blw Precision Forgings Ltd. | Automobile Components | 406,780 | | 3,608,541 |
| | SRF Ltd. | Chemicals | 139,320 | | 4,152,688 |
| a | Star Health & Allied Insurance Co. Ltd. | Insurance | 227,040 | | 1,644,796 |
| | State Bank of India | Banks | 1,761,280 | | 16,559,568 |
| | Steel Authority of India Ltd. | Metals & Mining | 1,438,780 | | 2,427,004 |
| | Sun Pharmaceutical Industries Ltd. | Pharmaceuticals | 1,072,420 | | 24,656,334 |
| | Sun TV Network Ltd. | Media | 84,031 | | 835,384 |
| | Sundaram Finance Ltd. | Consumer Finance | 65,360 | | 4,111,184 |
| | Supreme Industries Ltd. | Chemicals | 62,780 | | 3,986,733 |
| a | Suzlon Energy Ltd. | Electrical Equipment | 11,645,706 | | 11,124,402 |
| b | Syngene International Ltd. | Life Sciences Tools & Services | 163,400 | | 1,751,747 |
| | Tata Communications Ltd. | Diversified Telecommunication Services | 112,660 | | 2,869,897 |
| | Tata Consultancy Services Ltd. | IT Services | 1,019,100 | | 51,908,872 |
| | Tata Consumer Products Ltd. | Food Products | 636,400 | | 9,089,828 |
| | Tata Elxsi Ltd. | Software | 33,540 | | 3,091,577 |
| | Tata Motors Ltd., Class A | Automobiles | 2,063,270 | | 23,996,850 |
| | Tata Power Co. Ltd. | Electric Utilities | 1,455,980 | | 8,384,791 |
| | Tata Steel Ltd. | Metals & Mining | 8,298,140 | | 16,690,103 |
| | Tata Technologies Ltd. | IT Services | 166,840 | | 2,196,263 |
| a | Tata Teleservices Maharashtra Ltd. | Diversified Telecommunication Services | 505,256 | | 509,469 |
| | Tech Mahindra Ltd. | IT Services | 600,280 | | 11,297,703 |
| | Thermax Ltd. | Machinery | 31,733 | | 1,931,292 |
| | Titan Co. Ltd. | Textiles, Apparel & Luxury Goods | 402,480 | | 18,365,638 |
| | Torrent Pharmaceuticals Ltd. | Pharmaceuticals | 95,460 | | 3,869,091 |
| | Torrent Power Ltd. | Electric Utilities | 215,000 | | 4,818,186 |
| franklintempleton.com | Semi-Annual Report | 104 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE India ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | India (continued) | | | | |
| | Trent Ltd. | Specialty Retail | 178,972 | | $ 16,176,969 |
| | Tube Investments of India Ltd. | Automobile Components | 103,200 | | 5,339,781 |
| | TVS Motor Co. Ltd. | Automobiles | 233,060 | | 7,897,918 |
| | UltraTech Cement Ltd. | Construction Materials | 112,816 | | 15,888,241 |
| | Union Bank of India Ltd. | Banks | 1,384,936 | | 2,028,951 |
| | United Breweries Ltd. | Beverages | 68,800 | | 1,786,023 |
| | United Spirits Ltd. | Beverages | 284,361 | | 5,394,974 |
| | UNO Minda Ltd. | Automobile Components | 166,915 | | 2,194,262 |
| | UPL Ltd. | Chemicals | 522,020 | | 3,819,472 |
| | Varun Beverages Ltd. | Beverages | 1,148,960 | | 8,312,698 |
| | Vedant Fashions Ltd. | Textiles, Apparel & Luxury Goods | 60,200 | | 970,010 |
| | Vedanta Ltd. | Metals & Mining | 1,560,040 | | 9,543,467 |
| a | Vodafone Idea Ltd. | Wireless Telecommunication Services | 21,764,880 | | 2,690,702 |
| | Voltas Ltd. | Construction & Engineering | 226,180 | | 4,979,934 |
| | Whirlpool of India Ltd. | Household Durables | 60,200 | | 1,644,772 |
| | Wipro Ltd. | IT Services | 1,388,040 | | 8,968,294 |
| a | Yes Bank Ltd. | Banks | 19,892,660 | | 5,336,281 |
| a | Zee Entertainment Enterprises Ltd. | Media | 697,181 | | 1,145,589 |
| a | Zomato Ltd. | Hotels, Restaurants & Leisure | 6,773,360 | | 22,089,877 |
| | Zydus Lifesciences Ltd. | Pharmaceuticals | 248,540 | | 3,169,134 |
| | Total Common Stocks (Cost $1,463,395,680) | | | | 1,847,196,701 |
| | Total Investments before Short-Term Investments (Cost $1,463,395,680) | | | | 1,847,196,701 |
| | Short-Term Investments 0.8% | | | | |
| | Money Market Funds 0.8% | | | | |
| | United States 0.8% | | | | |
| d,e | Institutional Fiduciary Trust - Money Market Portfolio, 4.74% | Money Market Funds | 14,888,080 | | 14,888,080 |
| | Total Short-Term Investments (Cost $14,888,080) | | | | 14,888,080 |
| | Total Investments (Cost $1,478,283,760) 102.8% | | | | 1,862,084,781 |
| | Other Assets, less Liabilities (2.8)% | | | | (49,934,599) |
| | Net Assets 100.0% | | | | $ 1,812,150,182 |
| aNon-income producing. |
| bSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At September 30, 2024, the value of was $86,314,190, representing 4.8% of net assets. |
| cSecurity was purchased pursuant to Regulation S under the Securities Act of 1933, which exempts from registration securities offered and sold outside of the United States. Such a security cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration. At September 30, 2024, the value of was $20,158,446, representing 1.1% of net assets. |
| dThe rate shown is the annualized seven-day effective yield at period end. |
| eSee Note 3(c) regarding investments in affiliated management investment companies. |
| 105 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE India ETF (continued)
At September 30, 2024, the Fund had the following futures contracts outstanding. See Note 1(c).
Futures Contracts
| Description | Type | Number of
Contracts | Notional
Amount* | Expiration
Date | Value/Unrealized
Appreciation
(Depreciation) |
| Index Contracts | | | | | |
| IFSC Nifty 50 | Long | 746 | $ 38,801,698 | 10/31/24 | $ (280,338) |
See Note 7 regarding other derivative information.
See Abbreviations on page 207.
| franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Semi-Annual Report | 106 |
Franklin Templeton ETF Trust
Financial Highlights
Franklin FTSE Japan ETF
| | Six Months Ended
September 30, 2024
(unaudited) | Year Ended March 31, |
| | 2024 | 2023 | 2022 | 2021 | 2020 |
| Per share operating performance | | | | | | |
| (for a share outstanding throughout the period) | | | | | | |
| Net asset value, beginning of period | $31.03 | $25.66 | $27.42 | $30.25 | $21.93 | $24.18 |
| Income from investment operationsa: | | | | | | |
| Net investment incomeb | 0.31 | 0.59 | 0.63 | 0.63 | 0.53 | 0.56 |
| Net realized and unrealized gains (losses) | 0.14 | 5.62 | (1.93) | (2.76) | 8.24 | (2.22) |
| Total from investment operations | 0.45 | 6.21 | (1.30) | (2.13) | 8.77 | (1.66) |
| Less distributions from net investment income | (1.03) | (0.84) | (0.46) | (0.70) | (0.45) | (0.59) |
| Net asset value, end of period | $30.45 | $31.03 | $25.66 | $27.42 | $30.25 | $21.93 |
| Total returnc | 2.31% | 24.69% | (4.61)% | (7.21)% | 40.23% | (7.15)% |
| Ratios to average net assetsd | | | | | | |
| Expenses before waiver and payments by affiliates | 0.09% | 0.09% | 0.09% | 0.09% | 0.09% | 0.09% |
| Expenses net of waiver and payments by affiliates | 0.09% | 0.09% | 0.09% | 0.09% | 0.09% | 0.09% |
| Net investment income | 2.08% | 2.14% | 2.60% | 2.14% | 1.98% | 2.30% |
| Supplemental data | | | | | | |
| Net assets, end of period (000’s) | $2,100,944 | $1,936,566 | $1,000,803 | $789,637 | $598,934 | $315,851 |
| Portfolio turnover ratee | 2.24%f | 3.92%f | 3.01%f | 2.95%f | 5.76%f | 4.59%f |
| aThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of Creation Unit Fund shares in relation to income earned and/or fluctuating fair value of the investments of the Fund. |
| bBased on average daily shares outstanding. |
| cTotal return is not annualized for periods less than one year. Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. |
| dRatios are annualized for periods less than one year. |
| ePortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash ("Cash creations"). |
| fPortfolio turnover rate excluding cash creations was as follows: | 2.21% | 3.74% | 3.00% | 2.80% | 5.76% | 4.51% |
| 107 | Semi-Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments, September 30, 2024 (unaudited)
Franklin FTSE Japan ETF
| | | Industry | Shares | | Value |
| | Common Stocks 99.1% | | | | |
| | Japan 99.1% | | | | |
| | ABC-Mart, Inc. | Specialty Retail | 34,500 | | $ 735,633 |
| | Acom Co. Ltd. | Consumer Finance | 172,500 | | 459,711 |
| | Activia Properties, Inc. | Diversified REITs | 345 | | 788,695 |
| | Advance Residence Investment Corp. | Residential REITs | 575 | | 1,352,681 |
| | Advantest Corp. | Semiconductors & Semiconductor Equipment | 329,100 | | 15,509,390 |
| | Aeon Co. Ltd. | Consumer Staples Distribution & Retail | 310,500 | | 8,463,643 |
| | AEON Financial Service Co. Ltd. | Consumer Finance | 46,000 | | 404,558 |
| | Aeon Mall Co. Ltd. | Real Estate Management & Development | 46,000 | | 672,441 |
| | AEON REIT Investment Corp. | Retail REITs | 805 | | 738,930 |
| | AGC, Inc. | Building Products | 80,500 | | 2,615,237 |
| | Aica Kogyo Co. Ltd. | Chemicals | 23,000 | | 546,218 |
| | Air Water, Inc. | Chemicals | 80,500 | | 1,132,031 |
| | Aisin Corp. | Automobile Components | 207,000 | | 2,282,152 |
| | Ajinomoto Co., Inc. | Food Products | 218,500 | | 8,471,763 |
| | Alfresa Holdings Corp. | Health Care Providers & Services | 69,000 | | 1,088,255 |
| | Alps Alpine Co. Ltd. | Electronic Equipment, Instruments & Components | 92,000 | | 993,065 |
| | Amada Co. Ltd. | Machinery | 138,000 | | 1,406,145 |
| | Amano Corp. | Electronic Equipment, Instruments & Components | 34,500 | | 1,038,570 |
| | Amvis Holdings, Inc. | Health Care Providers & Services | 11,500 | | 154,845 |
| | ANA Holdings, Inc. | Passenger Airlines | 69,000 | | 1,480,432 |
| a | Aozora Bank Ltd. | Banks | 57,500 | | 1,070,889 |
| | As One Corp. | Health Care Providers & Services | 23,000 | | 465,660 |
| | Asahi Group Holdings Ltd. | Beverages | 621,000 | | 8,155,401 |
| | Asahi Intecc Co. Ltd. | Health Care Equipment & Supplies | 92,000 | | 1,621,449 |
| | Asahi Kasei Corp. | Chemicals | 552,000 | | 4,175,503 |
| | Asics Corp. | Textiles, Apparel & Luxury Goods | 299,000 | | 6,273,063 |
| | ASKUL Corp. | Broadline Retail | 11,500 | | 173,899 |
| | Astellas Pharma, Inc. | Pharmaceuticals | 793,500 | | 9,136,567 |
| | Azbil Corp. | Electronic Equipment, Instruments & Components | 230,000 | | 1,866,017 |
| | Bandai Namco Holdings, Inc. | Leisure Products | 253,000 | | 5,794,379 |
| | BayCurrent, Inc. | Professional Services | 57,500 | | 2,132,131 |
| | Bic Camera, Inc. | Specialty Retail | 57,500 | | 636,343 |
| | BIPROGY, Inc. | IT Services | 34,500 | | 1,172,190 |
| | Bridgestone Corp. | Automobile Components | 253,000 | | 9,728,048 |
| | Brother Industries Ltd. | Technology Hardware, Storage & Peripherals | 103,500 | | 2,011,535 |
| | Calbee, Inc. | Food Products | 34,500 | | 842,481 |
| | Canon Marketing Japan, Inc. | Electronic Equipment, Instruments & Components | 23,000 | | 747,050 |
| | Canon, Inc. | Technology Hardware, Storage & Peripherals | 414,000 | | 13,611,871 |
| | Capcom Co. Ltd. | Entertainment | 161,000 | | 3,745,861 |
| | Casio Computer Co. Ltd. | Household Durables | 92,000 | | 764,416 |
| | Central Japan Railway Co. | Ground Transportation | 402,500 | | 9,333,700 |
| | Chiba Bank Ltd. | Banks | 299,000 | | 2,409,099 |
| | Chubu Electric Power Co., Inc. | Electric Utilities | 299,000 | | 3,513,835 |
| | Chugai Pharmaceutical Co. Ltd. | Pharmaceuticals | 287,500 | | 13,932,816 |
| | Chugin Financial Group, Inc. | Banks | 69,000 | | 689,325 |
| | Chugoku Electric Power Co., Inc. | Electric Utilities | 138,000 | | 942,576 |
| | Coca-Cola Bottlers Japan Holdings, Inc. | Beverages | 57,500 | | 801,559 |
| | COMSYS Holdings Corp. | Construction & Engineering | 46,000 | | 1,004,964 |
| | Concordia Financial Group Ltd. | Banks | 483,000 | | 2,674,329 |
| | Cosmo Energy Holdings Co. Ltd. | Oil, Gas & Consumable Fuels | 27,800 | | 1,518,661 |
| | Cosmos Pharmaceutical Corp. | Consumer Staples Distribution & Retail | 13,580 | | 710,804 |
| | Credit Saison Co. Ltd. | Consumer Finance | 69,000 | | 1,727,412 |
| | CyberAgent, Inc. | Media | 184,000 | | 1,311,437 |
| | Dai Nippon Printing Co. Ltd. | Commercial Services & Supplies | 184,000 | | 3,282,774 |
| | Daicel Corp. | Chemicals | 103,500 | | 964,162 |
| | Daido Steel Co. Ltd. | Metals & Mining | 80,500 | | 790,424 |
| | Daifuku Co. Ltd. | Machinery | 126,500 | | 2,442,182 |
| franklintempleton.com | Semi-Annual Report | 108 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE Japan ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | Japan (continued) | | | | |
| | Dai-ichi Life Holdings, Inc. | Insurance | 402,500 | | $ 10,360,773 |
| | Daiichi Sankyo Co. Ltd. | Pharmaceuticals | 839,500 | | 27,637,063 |
| | Daikin Industries Ltd. | Building Products | 118,244 | | 16,594,996 |
| | Daito Trust Construction Co. Ltd. | Real Estate Management & Development | 25,645 | | 3,121,361 |
| | Daiwa House Industry Co. Ltd. | Real Estate Management & Development | 264,500 | | 8,330,345 |
| | Daiwa House REIT Investment Corp. | Diversified REITs | 1,035 | | 1,704,016 |
| | Daiwa Office Investment Corp. | Office REITs | 230 | | 486,402 |
| | Daiwa Securities Group, Inc. | Capital Markets | 598,000 | | 4,201,552 |
| | Daiwa Securities Living Investments Corp. | Residential REITs | 920 | | 624,525 |
| | Denka Co. Ltd. | Chemicals | 34,500 | | 543,283 |
| | Denso Corp. | Automobile Components | 908,500 | | 13,499,837 |
| | Dentsu Group, Inc. | Media | 115,000 | | 3,543,100 |
| | Dentsu Soken, Inc. | IT Services | 11,500 | | 445,400 |
| | Descente Ltd. | Textiles, Apparel & Luxury Goods | 11,500 | | 349,325 |
| | Dexerials Corp. | Electronic Equipment, Instruments & Components | 69,000 | | 977,066 |
| | DIC Corp. | Chemicals | 34,500 | | 782,183 |
| | Disco Corp. | Semiconductors & Semiconductor Equipment | 37,162 | | 9,739,957 |
| | DMG Mori Co. Ltd. | Machinery | 57,500 | | 1,212,388 |
| | Dowa Holdings Co. Ltd. | Metals & Mining | 23,000 | | 844,973 |
| | East Japan Railway Co. | Ground Transportation | 483,000 | | 9,618,467 |
| | Ebara Corp. | Machinery | 207,000 | | 3,368,236 |
| | Eisai Co. Ltd. | Pharmaceuticals | 115,000 | | 4,297,225 |
| | Electric Power Development Co. Ltd. | Independent Power Producers & Energy Traders | 69,000 | | 1,155,306 |
| | ENEOS Holdings, Inc. | Oil, Gas & Consumable Fuels | 1,299,500 | | 7,074,389 |
| | EXEO Group, Inc. | Construction & Engineering | 80,500 | | 875,404 |
| | Ezaki Glico Co. Ltd. | Food Products | 23,000 | | 705,726 |
| | FANUC Corp. | Machinery | 425,500 | | 12,463,961 |
| | Fast Retailing Co. Ltd. | Specialty Retail | 80,500 | | 26,687,011 |
| | Food & Life Cos. Ltd. | Hotels, Restaurants & Leisure | 46,000 | | 925,371 |
| | FP Corp. | Containers & Packaging | 23,000 | | 460,434 |
| | Frontier Real Estate Investment Corp. | Retail REITs | 230 | | 684,179 |
| | Fuji Electric Co. Ltd. | Electrical Equipment | 57,500 | | 3,465,115 |
| | Fuji Media Holdings, Inc. | Media | 23,000 | | 276,164 |
| | Fuji Oil Holdings, Inc. | Food Products | 23,000 | | 509,878 |
| | Fuji Soft, Inc. | Software | 23,000 | | 1,450,364 |
| | FUJIFILM Holdings Corp. | Technology Hardware, Storage & Peripherals | 517,500 | | 13,342,701 |
| | Fujikura Ltd. | Electrical Equipment | 115,000 | | 3,873,532 |
| | Fujitsu General Ltd. | Household Durables | 23,000 | | 339,276 |
| | Fujitsu Ltd. | IT Services | 724,500 | | 14,868,357 |
| | Fukuoka Financial Group, Inc. | Banks | 69,000 | | 1,770,826 |
| | Fuyo General Lease Co. Ltd. | Financial Services | 11,500 | | 884,368 |
| | GLP J-Reit | Industrial REITs | 2,070 | | 1,920,365 |
| | GMO internet group, Inc. | IT Services | 23,000 | | 403,593 |
| | GMO Payment Gateway, Inc. | Financial Services | 18,000 | | 1,107,383 |
| | Goldwin, Inc. | Textiles, Apparel & Luxury Goods | 15,580 | | 901,645 |
| | GS Yuasa Corp. | Electrical Equipment | 34,500 | | 686,792 |
| | Gunma Bank Ltd. | Banks | 149,500 | | 917,443 |
| | Hachijuni Bank Ltd. | Banks | 195,500 | | 1,148,754 |
| | Hakuhodo DY Holdings, Inc. | Media | 103,500 | | 845,858 |
| | Hamamatsu Photonics KK | Electronic Equipment, Instruments & Components | 115,000 | | 1,507,847 |
| | Hankyu Hanshin Holdings, Inc. | Ground Transportation | 92,000 | | 2,844,128 |
| | Harmonic Drive Systems, Inc. | Machinery | 23,000 | | 568,407 |
| | Haseko Corp. | Household Durables | 115,000 | | 1,505,436 |
| | Heiwa Corp. | Hotels, Restaurants & Leisure | 23,000 | | 341,205 |
| | Hikari Tsushin, Inc. | Industrial Conglomerates | 11,500 | | 2,562,255 |
| b | Hino Motors Ltd. | Machinery | 126,500 | | 409,551 |
| | Hirogin Holdings, Inc. | Banks | 126,500 | | 978,111 |
| 109 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE Japan ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | Japan (continued) | | | | |
| | Hirose Electric Co. Ltd. | Electronic Equipment, Instruments & Components | 11,500 | | $ 1,464,031 |
| | Hisamitsu Pharmaceutical Co., Inc. | Pharmaceuticals | 23,000 | | 621,148 |
| | Hitachi Construction Machinery Co. Ltd. | Machinery | 46,000 | | 1,116,233 |
| | Hitachi Ltd. | Industrial Conglomerates | 1,978,000 | | 52,284,801 |
| | Honda Motor Co. Ltd. | Automobiles | 2,127,500 | | 22,421,744 |
| | Horiba Ltd. | Electronic Equipment, Instruments & Components | 17,200 | | 1,123,579 |
| | Hoshizaki Corp. | Machinery | 51,400 | | 1,790,951 |
| | House Foods Group, Inc. | Food Products | 34,500 | | 734,669 |
| | Hoya Corp. | Health Care Equipment & Supplies | 156,270 | | 21,614,947 |
| | Hulic Co. Ltd. | Real Estate Management & Development | 184,000 | | 1,871,001 |
| | Ibiden Co. Ltd. | Electronic Equipment, Instruments & Components | 46,000 | | 1,423,029 |
| | Idemitsu Kosan Co. Ltd. | Oil, Gas & Consumable Fuels | 540,500 | | 3,884,466 |
| | IHI Corp. | Machinery | 57,500 | | 2,991,978 |
| | Iida Group Holdings Co. Ltd. | Household Durables | 57,500 | | 888,790 |
| | Industrial & Infrastructure Fund Investment Corp. | Industrial REITs | 1,035 | | 865,394 |
| | INFRONEER Holdings, Inc. | Construction & Engineering | 80,500 | | 659,859 |
| | Inpex Corp. | Oil, Gas & Consumable Fuels | 379,500 | | 5,141,716 |
| | Internet Initiative Japan, Inc. | Diversified Telecommunication Services | 46,000 | | 971,197 |
| | Invincible Investment Corp. | Hotel & Resort REITs | 3,450 | | 1,497,798 |
| | Isetan Mitsukoshi Holdings Ltd. | Broadline Retail | 149,500 | | 2,326,531 |
| | Isuzu Motors Ltd. | Automobiles | 253,000 | | 3,415,429 |
| | Ito En Ltd. | Beverages | 23,000 | | 548,791 |
| | ITOCHU Corp. | Trading Companies & Distributors | 598,000 | | 32,099,021 |
| | Itoham Yonekyu Holdings, Inc. | Food Products | 11,500 | | 310,735 |
| | Iwatani Corp. | Oil, Gas & Consumable Fuels | 92,000 | | 1,327,517 |
| | Iyogin Holdings, Inc. | Banks | 115,000 | | 1,092,596 |
| | Izumi Co. Ltd. | Broadline Retail | 11,500 | | 285,168 |
| | J Front Retailing Co. Ltd. | Broadline Retail | 103,500 | | 1,119,007 |
| | Japan Airlines Co. Ltd. | Passenger Airlines | 69,000 | | 1,214,398 |
| | Japan Airport Terminal Co. Ltd. | Transportation Infrastructure | 34,500 | | 1,242,859 |
| | Japan Exchange Group, Inc. | Capital Markets | 460,000 | | 5,967,072 |
| | Japan Hotel REIT Investment Corp. | Hotel & Resort REITs | 2,300 | | 1,149,678 |
| | Japan Logistics Fund, Inc. | Industrial REITs | 345 | | 661,105 |
| | Japan Metropolitan Fund Invest | Retail REITs | 2,990 | | 2,019,253 |
| | Japan Post Bank Co. Ltd. | Banks | 644,000 | | 6,023,993 |
| | Japan Post Holdings Co. Ltd. | Insurance | 862,500 | | 8,236,682 |
| | Japan Post Insurance Co. Ltd. | Insurance | 80,500 | | 1,465,478 |
| | Japan Prime Realty Investment Corp. | Office REITs | 460 | | 1,120,735 |
| | Japan Real Estate Investment Corp. | Office REITs | 575 | | 2,295,337 |
| | Japan Steel Works Ltd. | Machinery | 23,000 | | 807,830 |
| | Japan Tobacco, Inc. | Tobacco | 529,000 | | 15,455,055 |
| | Jeol Ltd. | Electronic Equipment, Instruments & Components | 23,000 | | 893,855 |
| | JFE Holdings, Inc. | Metals & Mining | 264,500 | | 3,547,562 |
| | JGC Holdings Corp. | Construction & Engineering | 92,000 | | 805,579 |
| | JMDC, Inc. | Health Care Technology | 11,500 | | 375,052 |
| | JTEKT Corp. | Automobile Components | 103,500 | | 739,131 |
| | Justsystems Corp. | Software | 11,500 | | 287,822 |
| | Kadokawa Corp. | Media | 34,500 | | 770,365 |
| | Kagome Co. Ltd. | Food Products | 34,500 | | 773,742 |
| | Kajima Corp. | Construction & Engineering | 195,500 | | 3,656,741 |
| | Kakaku.com, Inc. | Interactive Media & Services | 46,000 | | 801,237 |
| | Kamigumi Co. Ltd. | Transportation Infrastructure | 46,000 | | 1,048,056 |
| | Kandenko Co. Ltd. | Construction & Engineering | 46,000 | | 715,856 |
| | Kaneka Corp. | Chemicals | 23,000 | | 627,419 |
| | Kansai Electric Power Co., Inc. | Electric Utilities | 322,000 | | 5,335,151 |
| | Kansai Paint Co. Ltd. | Chemicals | 69,000 | | 1,231,040 |
| franklintempleton.com | Semi-Annual Report | 110 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE Japan ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | Japan (continued) | | | | |
| | Kao Corp. | Personal Care Products | 207,000 | | $ 10,287,773 |
| | Kawasaki Heavy Industries Ltd. | Machinery | 69,000 | | 2,800,231 |
| | Kawasaki Kisen Kaisha Ltd. | Marine Transportation | 172,500 | | 2,669,987 |
| | KDDI Corp. | Wireless Telecommunication Services | 667,000 | | 21,421,966 |
| | KDX Realty Investment Corp. | Diversified REITs | 1,725 | | 1,823,406 |
| | Keihan Holdings Co. Ltd. | Industrial Conglomerates | 46,000 | | 974,091 |
| | Keikyu Corp. | Ground Transportation | 115,000 | | 940,244 |
| | Keio Corp. | Ground Transportation | 46,000 | | 1,101,119 |
| | Keisei Electric Railway Co. Ltd. | Ground Transportation | 57,500 | | 1,716,076 |
| | Kewpie Corp. | Food Products | 46,000 | | 1,151,286 |
| | Keyence Corp. | Electronic Equipment, Instruments & Components | 86,822 | | 41,492,952 |
| | Kikkoman Corp. | Food Products | 402,500 | | 4,581,026 |
| | Kinden Corp. | Construction & Engineering | 57,500 | | 1,266,254 |
| | Kintetsu Group Holdings Co. Ltd. | Ground Transportation | 80,500 | | 2,006,872 |
| | Kirin Holdings Co. Ltd. | Beverages | 345,000 | | 5,272,441 |
| | Kobayashi Pharmaceutical Co. Ltd. | Personal Care Products | 26,580 | | 1,059,744 |
| | Kobe Bussan Co. Ltd. | Consumer Staples Distribution & Retail | 57,500 | | 1,818,582 |
| | Kobe Steel Ltd. | Metals & Mining | 149,500 | | 1,788,795 |
| | Koei Tecmo Holdings Co. Ltd. | Entertainment | 69,000 | | 798,102 |
| | Koito Manufacturing Co. Ltd. | Automobile Components | 92,000 | | 1,270,274 |
| | Kokusai Electric Corp. | Semiconductors & Semiconductor Equipment | 46,000 | | 1,022,651 |
| | Kokuyo Co. Ltd. | Commercial Services & Supplies | 46,000 | | 813,940 |
| | Komatsu Ltd. | Machinery | 402,500 | | 11,159,920 |
| | Konami Group Corp. | Entertainment | 46,000 | | 4,677,503 |
| | Konica Minolta, Inc. | Technology Hardware, Storage & Peripherals | 195,500 | | 564,741 |
| | Kose Corp. | Personal Care Products | 14,980 | | 972,276 |
| | Kotobuki Spirits Co. Ltd. | Food Products | 46,000 | | 585,452 |
| | K’s Holdings Corp. | Specialty Retail | 69,000 | | 744,075 |
| | Kubota Corp. | Machinery | 437,000 | | 6,204,887 |
| | Kuraray Co. Ltd. | Chemicals | 138,000 | | 2,044,820 |
| | Kurita Water Industries Ltd. | Machinery | 46,000 | | 1,982,914 |
| | Kusuri No. Aoki Holdings Co. Ltd. | Consumer Staples Distribution & Retail | 23,000 | | 535,927 |
| | Kyocera Corp. | Electronic Equipment, Instruments & Components | 529,000 | | 6,139,122 |
| | Kyoto Financial Group, Inc. | Banks | 126,500 | | 1,949,589 |
| | Kyowa Kirin Co. Ltd. | Pharmaceuticals | 103,500 | | 1,828,471 |
| | Kyudenko Corp. | Construction & Engineering | 23,000 | | 1,087,451 |
| | Kyushu Electric Power Co., Inc. | Electric Utilities | 184,000 | | 2,009,927 |
| | Kyushu Financial Group, Inc. | Banks | 161,000 | | 784,627 |
| | Kyushu Railway Co. | Ground Transportation | 69,000 | | 1,994,652 |
| | LaSalle Logiport REIT | Industrial REITs | 805 | | 806,463 |
| | Lasertec Corp. | Semiconductors & Semiconductor Equipment | 38,200 | | 6,303,908 |
| | Lion Corp. | Household Products | 103,500 | | 1,168,572 |
| | Lixil Corp. | Building Products | 115,000 | | 1,377,604 |
| | LY Corp. | Interactive Media & Services | 1,161,500 | | 3,404,761 |
| | M3, Inc. | Health Care Technology | 184,000 | | 1,849,776 |
| | Mabuchi Motor Co. Ltd. | Electrical Equipment | 46,000 | | 715,213 |
| | Macnica Holdings, Inc. | Electronic Equipment, Instruments & Components | 69,000 | | 958,012 |
| | Makita Corp. | Machinery | 103,500 | | 3,502,821 |
| | Mani, Inc. | Health Care Equipment & Supplies | 23,000 | | 292,806 |
| | Marubeni Corp. | Trading Companies & Distributors | 701,500 | | 11,475,881 |
| | Marui Group Co. Ltd. | Consumer Finance | 80,500 | | 1,345,325 |
| | Maruichi Steel Tube Ltd. | Metals & Mining | 23,000 | | 540,751 |
| | Maruwa Co. Ltd. | Electronic Equipment, Instruments & Components | 3,300 | | 967,806 |
| | Matsui Securities Co. Ltd. | Capital Markets | 46,000 | | 251,482 |
| | MatsukiyoCocokara & Co. | Consumer Staples Distribution & Retail | 161,000 | | 2,648,441 |
| | Mazda Motor Corp. | Automobiles | 253,000 | | 1,892,548 |
| | McDonald’s Holdings Co. Japan Ltd. | Hotels, Restaurants & Leisure | 34,500 | | 1,649,748 |
| 111 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE Japan ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | Japan (continued) | | | | |
| | Mebuki Financial Group, Inc. | Banks | 414,000 | | $ 1,662,773 |
| | Medipal Holdings Corp. | Health Care Providers & Services | 92,000 | | 1,601,832 |
| | MEIJI Holdings Co. Ltd. | Food Products | 115,000 | | 2,886,256 |
| b | Mercari, Inc. | Broadline Retail | 46,000 | | 806,222 |
| | Minebea Mitsumi, Inc. | Machinery | 184,000 | | 3,624,944 |
| | MISUMI Group, Inc. | Machinery | 126,500 | | 2,290,513 |
| | Mitsubishi Chemical Group Corp. | Chemicals | 563,500 | | 3,619,967 |
| | Mitsubishi Corp. | Trading Companies & Distributors | 1,782,500 | | 36,792,724 |
| | Mitsubishi Electric Corp. | Electrical Equipment | 862,500 | | 13,889,603 |
| | Mitsubishi Estate Co. Ltd. | Real Estate Management & Development | 483,000 | | 7,626,227 |
| | Mitsubishi Gas Chemical Co., Inc. | Chemicals | 80,500 | | 1,558,618 |
| | Mitsubishi HC Capital, Inc. | Financial Services | 379,500 | | 2,680,962 |
| | Mitsubishi Heavy Industries Ltd. | Machinery | 1,311,000 | | 19,407,456 |
| | Mitsubishi Logistics Corp. | Transportation Infrastructure | 23,000 | | 839,667 |
| | Mitsubishi Materials Corp. | Metals & Mining | 57,500 | | 1,035,113 |
| | Mitsubishi Motors Corp. | Automobiles | 276,000 | | 741,904 |
| | Mitsubishi UFJ Financial Group, Inc. | Banks | 5,048,500 | | 51,300,299 |
| | Mitsui & Co. Ltd. | Trading Companies & Distributors | 1,299,500 | | 28,871,721 |
| | Mitsui Chemicals, Inc. | Chemicals | 69,000 | | 1,835,466 |
| | Mitsui Fudosan Co. Ltd. | Real Estate Management & Development | 1,196,000 | | 11,187,416 |
| | Mitsui Fudosan Logistics Park, Inc. | Industrial REITs | 230 | | 682,571 |
| | Mitsui High-Tec, Inc. | Semiconductors & Semiconductor Equipment | 46,000 | | 289,622 |
| | Mitsui Mining & Smelting Co. Ltd. | Metals & Mining | 23,000 | | 784,676 |
| | Mitsui OSK Lines Ltd. | Marine Transportation | 149,500 | | 5,148,469 |
| | Miura Co. Ltd. | Machinery | 46,000 | | 1,129,418 |
| | Mizuho Financial Group, Inc. | Banks | 1,127,000 | | 23,132,494 |
| b | Money Forward, Inc. | Software | 23,000 | | 941,772 |
| | MonotaRO Co. Ltd. | Trading Companies & Distributors | 103,500 | | 1,734,768 |
| | Mori Hills REIT Investment Corp., Class C | Office REITs | 690 | | 614,073 |
| | Morinaga & Co. Ltd. | Food Products | 34,500 | | 692,098 |
| | Morinaga Milk Industry Co. Ltd. | Food Products | 34,500 | | 847,305 |
| | MS&AD Insurance Group Holdings, Inc. | Insurance | 598,000 | | 13,921,560 |
| | Murata Manufacturing Co. Ltd. | Electronic Equipment, Instruments & Components | 747,500 | | 14,666,238 |
| | Nabtesco Corp. | Machinery | 46,000 | | 794,002 |
| | Nagase & Co. Ltd. | Trading Companies & Distributors | 46,000 | | 1,029,404 |
| | Nagoya Railroad Co. Ltd. | Ground Transportation | 92,000 | | 1,119,771 |
| | Nankai Electric Railway Co. Ltd. | Ground Transportation | 46,000 | | 758,788 |
| | NEC Corp. | IT Services | 115,000 | | 11,054,600 |
| | NEC Networks & System Integration Corp. | IT Services | 34,500 | | 667,859 |
| | NET One Systems Co. Ltd. | IT Services | 34,500 | | 863,224 |
| | Nexon Co. Ltd. | Entertainment | 184,000 | | 3,639,737 |
| | NGK Insulators Ltd. | Machinery | 103,500 | | 1,353,807 |
| | NH Foods Ltd. | Food Products | 46,000 | | 1,715,031 |
| | NHK Spring Co. Ltd. | Automobile Components | 69,000 | | 876,971 |
| | Nichirei Corp. | Food Products | 46,000 | | 1,436,535 |
| | NIDEC Corp. | Electrical Equipment | 460,000 | | 9,666,946 |
| | Nifco, Inc. | Automobile Components | 34,500 | | 876,971 |
| | Nihon Kohden Corp. | Health Care Equipment & Supplies | 69,000 | | 1,026,028 |
| | Nihon M&A Center Holdings, Inc. | Capital Markets | 126,500 | | 578,996 |
| | Nikon Corp. | Household Durables | 138,000 | | 1,433,159 |
| | Nintendo Co. Ltd. | Entertainment | 460,000 | | 24,556,488 |
| | Nippon Accommodations Fund, Inc. | Residential REITs | 230 | | 1,025,867 |
| | Nippon Building Fund, Inc. | Office REITs | 3,450 | | 3,178,901 |
| | Nippon Electric Glass Co. Ltd. | Electronic Equipment, Instruments & Components | 34,500 | | 810,885 |
| | NIPPON EXPRESS HOLDINGS, Inc. | Air Freight & Logistics | 34,500 | | 1,818,823 |
| | Nippon Kayaku Co. Ltd. | Chemicals | 69,000 | | 602,496 |
| | Nippon Paint Holdings Co. Ltd. | Chemicals | 437,000 | | 3,352,961 |
| franklintempleton.com | Semi-Annual Report | 112 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE Japan ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | Japan (continued) | | | | |
| | Nippon Prologis REIT, Inc. | Industrial REITs | 1,053 | | $ 1,812,420 |
| | Nippon Sanso Holdings Corp. | Chemicals | 80,500 | | 2,933,770 |
| | Nippon Shinyaku Co. Ltd. | Pharmaceuticals | 23,000 | | 599,119 |
| | Nippon Shokubai Co. Ltd. | Chemicals | 46,000 | | 557,634 |
| | Nippon Steel Corp. | Metals & Mining | 368,000 | | 8,227,517 |
| | Nippon Telegraph & Telephone Corp. | Diversified Telecommunication Services | 12,489,000 | | 12,817,290 |
| | Nippon Yusen KK | Marine Transportation | 195,500 | | 7,134,438 |
| | Nipro Corp. | Health Care Equipment & Supplies | 46,000 | | 457,781 |
| | Nishi-Nippon Railroad Co. Ltd. | Ground Transportation | 34,500 | | 551,846 |
| | Nissan Chemical Corp. | Chemicals | 57,500 | | 2,060,577 |
| | Nissan Motor Co. Ltd. | Automobiles | 782,000 | | 2,200,468 |
| | Nisshin Seifun Group, Inc. | Food Products | 115,000 | | 1,462,021 |
| | Nissin Foods Holdings Co. Ltd. | Food Products | 92,000 | | 2,577,209 |
| | Niterra Co. Ltd. | Automobile Components | 80,500 | | 2,248,305 |
| | Nitori Holdings Co. Ltd. | Specialty Retail | 34,500 | | 5,256,764 |
| | Nitto Denko Corp. | Chemicals | 312,115 | | 5,211,736 |
| | Noevir Holdings Co. Ltd. | Personal Care Products | 11,500 | | 415,653 |
| | NOF Corp. | Chemicals | 92,000 | | 1,582,215 |
| | NOK Corp. | Automobile Components | 46,000 | | 721,644 |
| | Nomura Holdings, Inc. | Capital Markets | 1,253,500 | | 6,511,119 |
| | Nomura Real Estate Holdings, Inc. | Real Estate Management & Development | 46,000 | | 1,232,005 |
| | Nomura Real Estate Master Fund, Inc. | Diversified REITs | 1,955 | | 1,953,087 |
| | Nomura Research Institute Ltd. | IT Services | 184,000 | | 6,817,673 |
| | NS Solutions Corp. | IT Services | 23,000 | | 600,566 |
| | NSK Ltd. | Machinery | 184,000 | | 927,332 |
| | NTT Data Group Corp. | IT Services | 276,000 | | 4,967,575 |
| | Obayashi Corp. | Construction & Engineering | 299,000 | | 3,789,758 |
| | OBIC Business Consultants Co. Ltd. | Software | 11,500 | | 596,788 |
| | Obic Co. Ltd. | IT Services | 147,050 | | 5,187,460 |
| | Odakyu Electric Railway Co. Ltd. | Ground Transportation | 138,000 | | 1,542,659 |
| | Oji Holdings Corp. | Paper & Forest Products | 391,000 | | 1,569,030 |
| | OKUMA Corp. | Machinery | 23,000 | | 492,513 |
| | Olympus Corp. | Health Care Equipment & Supplies | 483,000 | | 9,179,499 |
| | Omron Corp. | Electronic Equipment, Instruments & Components | 80,500 | | 3,684,518 |
| | Ono Pharmaceutical Co. Ltd. | Pharmaceuticals | 195,500 | | 2,612,544 |
| | Open House Group Co. Ltd. | Household Durables | 34,500 | | 1,303,639 |
| | Oracle Corp. | Software | 14,420 | | 1,486,458 |
| | Organo Corp. | Machinery | 11,500 | | 562,780 |
| | Oriental Land Co. Ltd. | Hotels, Restaurants & Leisure | 483,000 | | 12,486,955 |
| | ORIX Corp. | Financial Services | 483,000 | | 11,203,817 |
| | Orix JREIT, Inc. | Office REITs | 1,150 | | 1,234,899 |
| | Osaka Gas Co. Ltd. | Gas Utilities | 161,000 | | 3,628,803 |
| | OSG Corp. | Machinery | 34,500 | | 488,292 |
| | Otsuka Corp. | IT Services | 92,000 | | 2,279,418 |
| | Otsuka Holdings Co. Ltd. | Pharmaceuticals | 218,500 | | 12,347,144 |
| | PALTAC Corp. | Distributors | 11,500 | | 354,551 |
| | Pan Pacific International Holdings Corp. | Broadline Retail | 172,500 | | 4,456,009 |
| | Panasonic Holdings Corp. | Household Durables | 908,500 | | 7,894,753 |
| b | Park24 Co. Ltd. | Commercial Services & Supplies | 57,500 | | 720,559 |
| | Penta-Ocean Construction Co. Ltd. | Construction & Engineering | 115,000 | | 513,898 |
| b | PeptiDream, Inc. | Biotechnology | 34,500 | | 641,810 |
| | Persol Holdings Co. Ltd. | Professional Services | 782,000 | | 1,403,926 |
| | Pola Orbis Holdings, Inc. | Personal Care Products | 34,500 | | 356,722 |
| | Rakus Co. Ltd. | Software | 46,000 | | 719,232 |
| b | Rakuten Bank Ltd. | Banks | 34,500 | | 777,842 |
| b | Rakuten Group, Inc. | Broadline Retail | 621,000 | | 4,018,440 |
| | Recruit Holdings Co. Ltd. | Professional Services | 598,000 | | 36,392,548 |
| 113 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE Japan ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | Japan (continued) | | | | |
| | Relo Group, Inc. | Real Estate Management & Development | 46,000 | | $ 603,943 |
| | Renesas Electronics Corp. | Semiconductors & Semiconductor Equipment | 678,500 | | 9,861,588 |
| | Rengo Co. Ltd. | Containers & Packaging | 92,000 | | 642,469 |
| | Resona Holdings, Inc. | Banks | 977,500 | | 6,817,352 |
| | Resonac Holdings Corp. | Chemicals | 80,500 | | 2,071,029 |
| | Resorttrust, Inc. | Hotels, Restaurants & Leisure | 23,000 | | 462,444 |
| | Ricoh Co. Ltd. | Technology Hardware, Storage & Peripherals | 253,000 | | 2,728,275 |
| | Rinnai Corp. | Household Durables | 46,000 | | 1,135,529 |
| | Rohm Co. Ltd. | Semiconductors & Semiconductor Equipment | 138,000 | | 1,549,413 |
| | Rohto Pharmaceutical Co. Ltd. | Personal Care Products | 92,000 | | 2,297,427 |
| | Rorze Corp. | Semiconductors & Semiconductor Equipment | 46,000 | | 633,529 |
| | Ryohin Keikaku Co. Ltd. | Broadline Retail | 103,500 | | 1,905,893 |
| | Sankyo Co. Ltd. | Leisure Products | 69,000 | | 1,015,898 |
| | Sankyu, Inc. | Air Freight & Logistics | 23,000 | | 774,063 |
| | Sanrio Co. Ltd. | Specialty Retail | 80,500 | | 2,324,280 |
| | Santen Pharmaceutical Co. Ltd. | Pharmaceuticals | 126,500 | | 1,533,936 |
| | Sanwa Holdings Corp. | Building Products | 80,500 | | 2,124,493 |
| | Sapporo Holdings Ltd. | Beverages | 23,000 | | 1,271,721 |
| | Sawai Group Holdings Co. Ltd. | Pharmaceuticals | 69,000 | | 982,854 |
| | SBI Holdings, Inc. | Capital Markets | 126,500 | | 2,913,993 |
| | SBI Sumishin Net Bank Ltd. | Banks | 23,000 | | 431,411 |
| | SCREEN Holdings Co. Ltd. | Semiconductors & Semiconductor Equipment | 34,500 | | 2,405,401 |
| | SCSK Corp. | IT Services | 69,000 | | 1,427,611 |
| | Secom Co. Ltd. | Commercial Services & Supplies | 184,000 | | 6,809,955 |
| | Sega Sammy Holdings, Inc. | Leisure Products | 69,000 | | 1,379,614 |
| | Seibu Holdings, Inc. | Ground Transportation | 92,000 | | 2,052,377 |
| | Seiko Epson Corp. | Technology Hardware, Storage & Peripherals | 115,000 | | 2,122,081 |
| | Seino Holdings Co. Ltd. | Ground Transportation | 57,500 | | 967,579 |
| | Sekisui Chemical Co. Ltd. | Household Durables | 172,500 | | 2,691,092 |
| | Sekisui House Ltd. | Household Durables | 241,500 | | 6,709,459 |
| | Sekisui House Reit, Inc. | Diversified REITs | 1,840 | | 977,629 |
| | Seven & i Holdings Co. Ltd. | Consumer Staples Distribution & Retail | 1,012,000 | | 15,189,905 |
| a | Seven Bank Ltd. | Banks | 276,000 | | 552,425 |
| | SG Holdings Co. Ltd. | Air Freight & Logistics | 184,000 | | 1,982,271 |
| b | Sharp Corp. | Household Durables | 92,000 | | 610,889 |
| b | SHIFT, Inc. | IT Services | 4,100 | | 391,541 |
| | Shikoku Electric Power Co., Inc. | Electric Utilities | 69,000 | | 613,832 |
| | Shimadzu Corp. | Electronic Equipment, Instruments & Components | 115,000 | | 3,838,157 |
| | Shimamura Co. Ltd. | Specialty Retail | 23,000 | | 1,258,054 |
| | Shimano, Inc. | Leisure Products | 34,500 | | 6,553,167 |
| | Shimizu Corp. | Construction & Engineering | 230,000 | | 1,581,411 |
| | Shin-Etsu Chemical Co. Ltd. | Chemicals | 851,000 | | 35,559,473 |
| b | Shinko Electric Industries Co. Ltd. | Semiconductors & Semiconductor Equipment | 29,100 | | 1,116,680 |
| | Shionogi & Co. Ltd. | Pharmaceuticals | 310,500 | | 4,457,577 |
| | Ship Healthcare Holdings, Inc. | Health Care Providers & Services | 34,500 | | 564,026 |
| | Shiseido Co. Ltd. | Personal Care Products | 172,500 | | 4,673,081 |
| | Shizuoka Financial Group, Inc. | Banks | 195,500 | | 1,700,921 |
| | SHO-BOND Holdings Co. Ltd. | Construction & Engineering | 23,000 | | 912,025 |
| | Skylark Holdings Co. Ltd. | Hotels, Restaurants & Leisure | 92,000 | | 1,486,060 |
| | SMC Corp. | Machinery | 24,592 | | 10,942,959 |
| | Socionext, Inc. | Semiconductors & Semiconductor Equipment | 80,500 | | 1,596,043 |
| | SoftBank Corp. | Wireless Telecommunication Services | 12,075,000 | | 15,802,852 |
| | SoftBank Group Corp. | Wireless Telecommunication Services | 437,000 | | 25,745,239 |
| | Sohgo Security Services Co. Ltd. | Commercial Services & Supplies | 172,500 | | 1,248,165 |
| | Sojitz Corp. | Trading Companies & Distributors | 92,000 | | 2,164,290 |
| | Sompo Holdings, Inc. | Insurance | 414,000 | | 9,264,639 |
| | Sony Group Corp. | Household Durables | 2,677,000 | | 51,981,037 |
| franklintempleton.com | Semi-Annual Report | 114 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE Japan ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | Japan (continued) | | | | |
| | Sotetsu Holdings, Inc. | Ground Transportation | 34,500 | | $ 575,241 |
| | Square Enix Holdings Co. Ltd. | Entertainment | 34,500 | | 1,373,584 |
| | Stanley Electric Co. Ltd. | Automobile Components | 46,000 | | 856,551 |
| | Subaru Corp. | Automobiles | 264,500 | | 4,589,548 |
| | Sugi Holdings Co. Ltd. | Consumer Staples Distribution & Retail | 34,500 | | 642,895 |
| | SUMCO Corp. | Semiconductors & Semiconductor Equipment | 149,500 | | 1,611,640 |
| | Sumitomo Bakelite Co. Ltd. | Chemicals | 23,000 | | 645,910 |
| | Sumitomo Chemical Co. Ltd. | Chemicals | 667,000 | | 1,900,185 |
| | Sumitomo Corp. | Trading Companies & Distributors | 460,000 | | 10,271,532 |
| | Sumitomo Electric Industries Ltd. | Automobile Components | 333,500 | | 5,351,994 |
| | Sumitomo Forestry Co. Ltd. | Household Durables | 57,500 | | 2,852,087 |
| | Sumitomo Heavy Industries Ltd. | Machinery | 46,000 | | 1,106,264 |
| | Sumitomo Metal Mining Co. Ltd. | Metals & Mining | 103,500 | | 3,104,855 |
| | Sumitomo Mitsui Financial Group, Inc. | Banks | 1,656,000 | | 35,252,517 |
| | Sumitomo Mitsui Trust Holdings, Inc. | Banks | 310,500 | | 7,360,917 |
| | Sumitomo Realty & Development Co. Ltd. | Real Estate Management & Development | 184,000 | | 6,182,215 |
| | Sumitomo Rubber Industries Ltd. | Automobile Components | 80,500 | | 882,157 |
| | Sundrug Co. Ltd. | Consumer Staples Distribution & Retail | 29,140 | | 862,547 |
| | Suntory Beverage & Food Ltd. | Beverages | 57,500 | | 2,168,310 |
| | Suzuken Co. Ltd. | Health Care Providers & Services | 34,500 | | 1,206,680 |
| | Suzuki Motor Corp. | Automobiles | 805,000 | | 8,962,266 |
| | Sysmex Corp. | Health Care Equipment & Supplies | 253,000 | | 5,000,217 |
| | T&D Holdings, Inc. | Insurance | 218,500 | | 3,811,224 |
| | Taiheiyo Cement Corp. | Construction Materials | 46,000 | | 1,083,431 |
| | Taisei Corp. | Construction & Engineering | 69,000 | | 3,019,715 |
| | Taiyo Yuden Co. Ltd. | Electronic Equipment, Instruments & Components | 57,500 | | 1,171,989 |
| | Takara Holdings, Inc. | Beverages | 69,000 | | 587,060 |
| | Takasago Thermal Engineering Co. Ltd. | Building Products | 23,000 | | 826,482 |
| | Takashimaya Co. Ltd. | Broadline Retail | 115,000 | | 918,939 |
| | Takeda Pharmaceutical Co. Ltd. | Pharmaceuticals | 690,000 | | 19,792,156 |
| | TBS Holdings, Inc. | Media | 11,500 | | 313,307 |
| | TDK Corp. | Electronic Equipment, Instruments & Components | 805,000 | | 10,259,473 |
| | TechnoPro Holdings, Inc. | Professional Services | 47,160 | | 916,231 |
| | Teijin Ltd. | Chemicals | 80,500 | | 796,896 |
| | Terumo Corp. | Health Care Equipment & Supplies | 632,500 | | 11,938,968 |
| | THK Co. Ltd. | Machinery | 57,500 | | 1,010,591 |
| | TIS, Inc. | IT Services | 103,500 | | 2,641,768 |
| | Tobu Railway Co. Ltd. | Ground Transportation | 92,000 | | 1,609,871 |
| | Toda Corp. | Construction & Engineering | 115,000 | | 757,260 |
| | Toei Animation Co. Ltd. | Entertainment | 23,000 | | 486,402 |
| | Toho Co. Ltd. | Entertainment | 46,000 | | 1,869,393 |
| | Toho Gas Co. Ltd. | Gas Utilities | 34,500 | | 957,288 |
| | Tohoku Electric Power Co., Inc. | Electric Utilities | 207,000 | | 1,984,039 |
| | Tokai Carbon Co. Ltd. | Chemicals | 92,000 | | 592,366 |
| | Tokio Marine Holdings, Inc. | Insurance | 851,000 | | 31,121,232 |
| | Tokyo Century Corp. | Financial Services | 115,000 | | 1,291,177 |
| b | Tokyo Electric Power Co. Holdings, Inc. | Electric Utilities | 655,500 | | 2,918,680 |
| | Tokyo Electron Ltd. | Semiconductors & Semiconductor Equipment | 195,500 | | 34,565,122 |
| | Tokyo Gas Co. Ltd. | Gas Utilities | 161,000 | | 3,755,991 |
| | Tokyo Ohka Kogyo Co. Ltd. | Chemicals | 50,100 | | 1,222,028 |
| | Tokyo Seimitsu Co. Ltd. | Semiconductors & Semiconductor Equipment | 16,500 | | 870,910 |
| | Tokyo Tatemono Co. Ltd. | Real Estate Management & Development | 92,000 | | 1,477,055 |
| | Tokyu Corp. | Ground Transportation | 218,500 | | 2,830,540 |
| | Tokyu Fudosan Holdings Corp. | Real Estate Management & Development | 264,500 | | 1,823,245 |
| | TOPPAN Holdings, Inc. | Commercial Services & Supplies | 126,500 | | 3,753,258 |
| | Toray Industries, Inc. | Chemicals | 678,500 | | 3,999,659 |
| | Toridoll Holdings Corp. | Hotels, Restaurants & Leisure | 23,000 | | 598,154 |
| 115 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE Japan ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | Japan (continued) | | | | |
| | Tosoh Corp. | Chemicals | 126,500 | | $ 1,691,796 |
| | TOTO Ltd. | Building Products | 69,000 | | 2,574,476 |
| | Toyo Seikan Group Holdings Ltd. | Containers & Packaging | 69,000 | | 1,085,843 |
| | Toyo Suisan Kaisha Ltd. | Food Products | 40,500 | | 2,647,053 |
| | Toyo Tire Corp. | Automobile Components | 46,000 | | 671,155 |
| | Toyoda Gosei Co. Ltd. | Automobile Components | 23,000 | | 393,142 |
| | Toyota Boshoku Corp. | Automobile Components | 34,500 | | 450,545 |
| | Toyota Industries Corp. | Machinery | 69,000 | | 5,318,268 |
| | Toyota Motor Corp. | Automobiles | 5,290,000 | | 94,028,419 |
| | Toyota Tsusho Corp. | Trading Companies & Distributors | 299,000 | | 5,403,489 |
| | Trend Micro, Inc. | Software | 57,500 | | 3,411,249 |
| | TS Tech Co. Ltd. | Automobile Components | 34,500 | | 420,517 |
| | Tsumura & Co. | Pharmaceuticals | 34,500 | | 1,088,255 |
| | Tsuruha Holdings, Inc. | Consumer Staples Distribution & Retail | 15,850 | | 1,005,030 |
| | UBE Corp. | Chemicals | 46,000 | | 858,480 |
| | Ulvac, Inc. | Semiconductors & Semiconductor Equipment | 23,000 | | 1,225,091 |
| | Unicharm Corp. | Household Products | 172,500 | | 6,250,472 |
| | United Urban Investment Corp. | Diversified REITs | 1,265 | | 1,221,312 |
| | Ushio, Inc. | Electrical Equipment | 34,500 | | 489,618 |
| | USS Co. Ltd. | Specialty Retail | 184,000 | | 1,744,938 |
| | Welcia Holdings Co. Ltd. | Consumer Staples Distribution & Retail | 46,000 | | 655,397 |
| | West Japan Railway Co. | Ground Transportation | 207,000 | | 3,942,030 |
| | Workman Co. Ltd. | Specialty Retail | 23,000 | | 717,142 |
| | Yakult Honsha Co. Ltd. | Food Products | 126,500 | | 2,935,217 |
| | Yamada Holdings Co. Ltd. | Specialty Retail | 241,500 | | 757,558 |
| | Yamaguchi Financial Group, Inc. | Banks | 80,500 | | 872,027 |
| | Yamaha Corp. | Leisure Products | 172,500 | | 1,487,547 |
| | Yamaha Motor Co. Ltd. | Automobiles | 391,000 | | 3,498,881 |
| | Yamato Holdings Co. Ltd. | Air Freight & Logistics | 126,500 | | 1,445,057 |
| | Yamato Kogyo Co. Ltd. | Metals & Mining | 14,700 | | 735,514 |
| | Yamazaki Baking Co. Ltd. | Food Products | 57,500 | | 1,143,850 |
| | Yaoko Co. Ltd. | Consumer Staples Distribution & Retail | 11,500 | | 781,621 |
| | Yaskawa Electric Corp. | Machinery | 115,000 | | 4,018,247 |
| | Yokogawa Electric Corp. | Electronic Equipment, Instruments & Components | 103,500 | | 2,644,662 |
| | Yokohama Rubber Co. Ltd. | Automobile Components | 57,500 | | 1,291,177 |
| | Zenkoku Hosho Co. Ltd. | Financial Services | 23,000 | | 907,522 |
| | Zensho Holdings Co. Ltd. | Hotels, Restaurants & Leisure | 34,500 | | 1,914,094 |
| | Zeon Corp. | Chemicals | 57,500 | | 546,499 |
| | ZOZO, Inc. | Specialty Retail | 46,000 | | 1,676,762 |
| | Total Common Stocks (Cost $1,906,197,495) | | | | 2,081,450,154 |
| | Total Investments before Short-Term Investments (Cost $1,906,197,495) | | | | 2,081,450,154 |
| | Short-Term Investments 0.0%† | | | | |
| | Investments from Cash Collateral
Received for Loaned Securities 0.0%† | | | | |
| | United States 0.0%† | | | | |
| c,d | Institutional Fiduciary Trust - Money Market Portfolio, 4.74% | Money Market Funds | 666,433 | | 666,433 |
| franklintempleton.com | Semi-Annual Report | 116 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE Japan ETF (continued)
| | | Industry | Shares | | Value |
| | Short-Term Investments (continued) | | | | |
| | Money Market Funds 0.0%† | | | | |
| | United States 0.0%† | | | | |
| c,d | Institutional Fiduciary Trust - Money Market Portfolio, 4.74% | Money Market Funds | 29,494 | | $ 29,494 |
| | Total Short-Term Investments (Cost $695,927) | | | | 695,927 |
| | Total Investments (Cost $1,906,893,422) 99.1% | | | | 2,082,146,081 |
| | Other Assets, less Liabilities 0.9% | | | | 18,798,404 |
| | Net Assets 100.0% | | | | $ 2,100,944,485 |
| †Rounds to less than 0.1% of net assets. |
| aA portion or all of the security is on loan at September 30, 2024. See Note 1(d). |
| bNon-income producing. |
| cThe rate shown is the annualized seven-day effective yield at period end. |
| dSee Note 3(c) regarding investments in affiliated management investment companies. |
At September 30, 2024, the Fund had the following futures contracts outstanding. See Note 1(c).
Futures Contracts
| Description | Type | Number of
Contracts | Notional
Amount* | Expiration
Date | Value/Unrealized
Appreciation
(Depreciation) |
| Index Contracts | | | | | |
| Nikkei 225 (OSE) DEC24 | Long | 5 | $ 1,326,552 | 12/12/24 | $ 66,058 |
| TOPIX Index Future | Long | 90 | 16,657,928 | 12/12/24 | (274,506) |
| Total Futures Contracts | | | | | $(208,448) |
See Note 7 regarding other derivative information.
See Abbreviations on page 207.
| 117 | Semi-Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
Franklin Templeton ETF Trust
Financial Highlights
Franklin FTSE Japan Hedged ETF
| | Six Months Ended
September 30, 2024
(unaudited) | Year Ended March 31, |
| | 2024 | 2023 | 2022 | 2021 | 2020 |
| Per share operating performance | | | | | | |
| (for a share outstanding throughout the period) | | | | | | |
| Net asset value, beginning of period | $31.46 | $26.57 | $30.90 | $30.70 | $21.35 | $23.12 |
| Income from investment operationsa: | | | | | | |
| Net investment incomeb | 0.34 | 0.80 | 0.58 | 0.68 | 0.88 | 0.38 |
| Net realized and unrealized gains (losses) | (0.70) | 10.79 | 1.56 | (0.08) | 8.47 | (2.15) |
| Total from investment operations | (0.36) | 11.59 | 2.14 | 0.60 | 9.35 | (1.77) |
| Less distributions from: | | | | | | |
| Net investment income | (0.75) | (2.32) | (0.92) | (0.40) | — | — |
| Net realized gains | — | (4.38) | (5.55) | — | — | — |
| Total distributions | (0.75) | (6.70) | (6.47) | (0.40) | — | — |
| Net asset value, end of period | $30.35 | $31.46 | $26.57 | $30.90 | $30.70 | $21.35 |
| Total returnc | (0.61)% | 49.20% | 8.15% | 1.93% | 43.84% | (7.66)% |
| Ratios to average net assetsd | | | | | | |
| Expenses before waiver and payments by affiliates | 0.09% | 0.09% | 0.09% | 0.09% | 0.09% | 0.09% |
| Expenses net of waiver and payments by affiliates | 0.09% | 0.09% | 0.09% | 0.09% | 0.09% | 0.09% |
| Net investment income | 2.22% | 2.61% | 1.99% | 2.22% | 3.29% | 1.59% |
| Supplemental data | | | | | | |
| Net assets, end of period (000’s) | $72,846 | $50,342 | $13,284 | $24,720 | $24,563 | $4,269 |
| Portfolio turnover ratee | 8.61%f | 21.18%f | 31.96%f | 5.46%f | 6.31%f | 10.06%f |
| aThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of Creation Unit Fund shares in relation to income earned and/or fluctuating fair value of the investments of the Fund. |
| bBased on average daily shares outstanding. |
| cTotal return is not annualized for periods less than one year. Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. |
| dRatios are annualized for periods less than one year. |
| ePortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash ("Cash creations"). |
| fPortfolio turnover rate excluding cash creations was as follows: | 8.32% | 20.83% | 31.39% | 5.03% | 6.31% | 10.06% |
| franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Semi-Annual Report | 118 |
Franklin Templeton ETF Trust
Schedule of Investments, September 30, 2024 (unaudited)
Franklin FTSE Japan Hedged ETF
| | | Industry | Shares | | Value |
| | Common Stocks 99.2% | | | | |
| | Japan 99.2% | | | | |
| | ABC-Mart, Inc. | Specialty Retail | 1,273 | | $ 27,144 |
| | Acom Co. Ltd. | Consumer Finance | 4,800 | | 12,792 |
| | Activia Properties, Inc. | Diversified REITs | 10 | | 22,861 |
| | Advance Residence Investment Corp. | Residential REITs | 24 | | 56,460 |
| | Advantest Corp. | Semiconductors & Semiconductor Equipment | 11,364 | | 535,548 |
| | Aeon Co. Ltd. | Consumer Staples Distribution & Retail | 10,800 | | 294,388 |
| | AEON Financial Service Co. Ltd. | Consumer Finance | 2,400 | | 21,107 |
| | Aeon Mall Co. Ltd. | Real Estate Management & Development | 1,398 | | 20,436 |
| | AEON REIT Investment Corp. | Retail REITs | 24 | | 22,030 |
| | AGC, Inc. | Building Products | 2,758 | | 89,600 |
| | Aica Kogyo Co. Ltd. | Chemicals | 873 | | 20,733 |
| | Air Water, Inc. | Chemicals | 2,400 | | 33,750 |
| | Aisin Corp. | Automobile Components | 7,056 | | 77,792 |
| | Ajinomoto Co., Inc. | Food Products | 7,200 | | 279,161 |
| | Alfresa Holdings Corp. | Health Care Providers & Services | 2,400 | | 37,852 |
| | Alps Alpine Co. Ltd. | Electronic Equipment, Instruments & Components | 2,400 | | 25,906 |
| | Amada Co. Ltd. | Machinery | 4,800 | | 48,909 |
| | Amano Corp. | Electronic Equipment, Instruments & Components | 940 | | 28,297 |
| | ANA Holdings, Inc. | Passenger Airlines | 2,400 | | 51,493 |
| | Aozora Bank Ltd. | Banks | 2,400 | | 44,698 |
| | Asahi Group Holdings Ltd. | Beverages | 21,600 | | 283,666 |
| | Asahi Intecc Co. Ltd. | Health Care Equipment & Supplies | 2,400 | | 42,299 |
| | Asahi Kasei Corp. | Chemicals | 19,200 | | 145,235 |
| | Asics Corp. | Textiles, Apparel & Luxury Goods | 9,600 | | 201,409 |
| | Astellas Pharma, Inc. | Pharmaceuticals | 27,700 | | 318,945 |
| | Azbil Corp. | Electronic Equipment, Instruments & Components | 7,600 | | 61,660 |
| | Bandai Namco Holdings, Inc. | Leisure Products | 9,600 | | 219,866 |
| | BayCurrent, Inc. | Professional Services | 2,400 | | 88,993 |
| | Bic Camera, Inc. | Specialty Retail | 2,400 | | 26,560 |
| | BIPROGY, Inc. | IT Services | 993 | | 33,739 |
| | Bridgestone Corp. | Automobile Components | 8,700 | | 334,522 |
| | Brother Industries Ltd. | Technology Hardware, Storage & Peripherals | 3,560 | | 69,189 |
| | Calbee, Inc. | Food Products | 1,176 | | 28,718 |
| | Canon Marketing Japan, Inc. | Electronic Equipment, Instruments & Components | 770 | | 25,010 |
| | Canon, Inc. | Technology Hardware, Storage & Peripherals | 14,400 | | 473,456 |
| | Capcom Co. Ltd. | Entertainment | 5,688 | | 132,338 |
| | Casio Computer Co. Ltd. | Household Durables | 2,400 | | 19,941 |
| | Central Japan Railway Co. | Ground Transportation | 14,126 | | 327,572 |
| | Chiba Bank Ltd. | Banks | 9,600 | | 77,349 |
| | Chubu Electric Power Co., Inc. | Electric Utilities | 9,600 | | 112,819 |
| | Chugai Pharmaceutical Co. Ltd. | Pharmaceuticals | 10,027 | | 485,928 |
| | Chugin Financial Group, Inc. | Banks | 2,400 | | 23,977 |
| | Chugoku Electric Power Co., Inc. | Electric Utilities | 4,800 | | 32,785 |
| | Coca-Cola Bottlers Japan Holdings, Inc. | Beverages | 2,400 | | 33,456 |
| | COMSYS Holdings Corp. | Construction & Engineering | 1,707 | | 37,293 |
| | Concordia Financial Group Ltd. | Banks | 16,800 | | 93,020 |
| | Cosmo Energy Holdings Co. Ltd. | Oil, Gas & Consumable Fuels | 938 | | 51,241 |
| | Cosmos Pharmaceutical Corp. | Consumer Staples Distribution & Retail | 532 | | 27,846 |
| | Credit Saison Co. Ltd. | Consumer Finance | 2,400 | | 60,084 |
| | CyberAgent, Inc. | Media | 7,200 | | 51,317 |
| | Dai Nippon Printing Co. Ltd. | Commercial Services & Supplies | 6,960 | | 124,174 |
| | Daicel Corp. | Chemicals | 4,800 | | 44,715 |
| | Daido Steel Co. Ltd. | Metals & Mining | 2,400 | | 23,565 |
| | Daifuku Co. Ltd. | Machinery | 4,800 | | 92,668 |
| | Dai-ichi Life Holdings, Inc. | Insurance | 14,400 | | 370,671 |
| | Daiichi Sankyo Co. Ltd. | Pharmaceuticals | 29,093 | | 957,767 |
| | Daikin Industries Ltd. | Building Products | 4,072 | | 571,486 |
| 119 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE Japan Hedged ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | Japan (continued) | | | | |
| | Daito Trust Construction Co. Ltd. | Real Estate Management & Development | 888 | | $ 108,082 |
| | Daiwa House Industry Co. Ltd. | Real Estate Management & Development | 9,200 | | 289,751 |
| | Daiwa House REIT Investment Corp. | Diversified REITs | 35 | | 57,624 |
| | Daiwa Office Investment Corp. | Office REITs | 8 | | 16,918 |
| | Daiwa Securities Group, Inc. | Capital Markets | 21,600 | | 151,762 |
| | Daiwa Securities Living Investments Corp. | Residential REITs | 24 | | 16,292 |
| | Denka Co. Ltd. | Chemicals | 1,284 | | 20,220 |
| | Denso Corp. | Automobile Components | 31,461 | | 467,494 |
| | Dentsu Group, Inc. | Media | 3,340 | | 102,904 |
| | Dentsu Soken, Inc. | IT Services | 368 | | 14,253 |
| | Descente Ltd. | Textiles, Apparel & Luxury Goods | 674 | | 20,474 |
| | Dexerials Corp. | Electronic Equipment, Instruments & Components | 2,400 | | 33,985 |
| | DIC Corp. | Chemicals | 1,093 | | 24,780 |
| | Disco Corp. | Semiconductors & Semiconductor Equipment | 1,300 | | 340,723 |
| | DMG Mori Co. Ltd. | Machinery | 2,400 | | 50,604 |
| | Dowa Holdings Co. Ltd. | Metals & Mining | 698 | | 25,643 |
| | East Japan Railway Co. | Ground Transportation | 16,800 | | 334,555 |
| | Ebara Corp. | Machinery | 7,200 | | 117,156 |
| | Eisai Co. Ltd. | Pharmaceuticals | 4,100 | | 153,205 |
| | Electric Power Development Co. Ltd. | Independent Power Producers & Energy Traders | 2,702 | | 45,241 |
| | ENEOS Holdings, Inc. | Oil, Gas & Consumable Fuels | 45,600 | | 248,243 |
| | EXEO Group, Inc. | Construction & Engineering | 3,126 | | 33,994 |
| | Ezaki Glico Co. Ltd. | Food Products | 668 | | 20,497 |
| | FANUC Corp. | Machinery | 14,632 | | 428,608 |
| | Fast Retailing Co. Ltd. | Specialty Retail | 2,776 | | 920,287 |
| | Food & Life Cos. Ltd. | Hotels, Restaurants & Leisure | 1,519 | | 30,557 |
| | FP Corp. | Containers & Packaging | 780 | | 15,615 |
| | Frontier Real Estate Investment Corp. | Retail REITs | 8 | | 23,798 |
| | Fuji Electric Co. Ltd. | Electrical Equipment | 2,004 | | 120,767 |
| | Fuji Soft, Inc. | Software | 857 | | 54,042 |
| | FUJIFILM Holdings Corp. | Technology Hardware, Storage & Peripherals | 17,828 | | 459,659 |
| | Fujikura Ltd. | Electrical Equipment | 4,100 | | 138,100 |
| | Fujitsu Ltd. | IT Services | 25,113 | | 515,375 |
| | Fukuoka Financial Group, Inc. | Banks | 2,400 | | 61,594 |
| | Fuyo General Lease Co. Ltd. | Financial Services | 288 | | 22,148 |
| | GLP J-Reit | Industrial REITs | 72 | | 66,795 |
| | GMO internet group, Inc. | IT Services | 987 | | 17,319 |
| | GMO Payment Gateway, Inc. | Financial Services | 707 | | 43,496 |
| | Goldwin, Inc. | Textiles, Apparel & Luxury Goods | 534 | | 30,904 |
| | GS Yuasa Corp. | Electrical Equipment | 1,478 | | 29,423 |
| | Gunma Bank Ltd. | Banks | 4,800 | | 29,456 |
| | Hachijuni Bank Ltd. | Banks | 7,200 | | 42,307 |
| | Hakuhodo DY Holdings, Inc. | Media | 2,400 | | 19,614 |
| | Hamamatsu Photonics KK | Electronic Equipment, Instruments & Components | 4,800 | | 62,936 |
| | Hankyu Hanshin Holdings, Inc. | Ground Transportation | 3,405 | | 105,264 |
| | Harmonic Drive Systems, Inc. | Machinery | 700 | | 17,299 |
| | Haseko Corp. | Household Durables | 4,800 | | 62,836 |
| | Hikari Tsushin, Inc. | Industrial Conglomerates | 398 | | 88,676 |
| a | Hino Motors Ltd. | Machinery | 4,800 | | 15,540 |
| | Hirogin Holdings, Inc. | Banks | 4,800 | | 37,114 |
| | Hirose Electric Co. Ltd. | Electronic Equipment, Instruments & Components | 484 | | 61,617 |
| | Hisamitsu Pharmaceutical Co., Inc. | Pharmaceuticals | 966 | | 26,088 |
| | Hitachi Construction Machinery Co. Ltd. | Machinery | 1,707 | | 41,422 |
| | Hitachi Ltd. | Industrial Conglomerates | 68,525 | | 1,811,333 |
| | Honda Motor Co. Ltd. | Automobiles | 74,400 | | 784,102 |
| | Horiba Ltd. | Electronic Equipment, Instruments & Components | 578 | | 37,757 |
| | Hoshizaki Corp. | Machinery | 1,702 | | 59,303 |
| franklintempleton.com | Semi-Annual Report | 120 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE Japan Hedged ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | Japan (continued) | | | | |
| | House Foods Group, Inc. | Food Products | 1,216 | | $ 25,894 |
| | Hoya Corp. | Health Care Equipment & Supplies | 5,452 | | 754,109 |
| | Hulic Co. Ltd. | Real Estate Management & Development | 6,400 | | 65,078 |
| | Ibiden Co. Ltd. | Electronic Equipment, Instruments & Components | 1,527 | | 47,238 |
| | Idemitsu Kosan Co. Ltd. | Oil, Gas & Consumable Fuels | 19,200 | | 137,987 |
| | IHI Corp. | Machinery | 2,000 | | 104,069 |
| | Iida Group Holdings Co. Ltd. | Household Durables | 2,400 | | 37,097 |
| | Industrial & Infrastructure Fund Investment Corp. | Industrial REITs | 24 | | 20,067 |
| | INFRONEER Holdings, Inc. | Construction & Engineering | 2,400 | | 19,673 |
| | Inpex Corp. | Oil, Gas & Consumable Fuels | 13,000 | | 176,133 |
| | Internet Initiative Japan, Inc. | Diversified Telecommunication Services | 1,707 | | 36,040 |
| | Invincible Investment Corp. | Hotel & Resort REITs | 120 | | 52,097 |
| | Isetan Mitsukoshi Holdings Ltd. | Broadline Retail | 5,500 | | 85,591 |
| | Isuzu Motors Ltd. | Automobiles | 8,800 | | 118,798 |
| | Ito En Ltd. | Beverages | 963 | | 22,978 |
| | ITOCHU Corp. | Trading Companies & Distributors | 20,973 | | 1,125,774 |
| | Iwatani Corp. | Oil, Gas & Consumable Fuels | 3,404 | | 49,118 |
| | Iyogin Holdings, Inc. | Banks | 4,800 | | 45,604 |
| | Izumi Co. Ltd. | Broadline Retail | 698 | | 17,308 |
| | J Front Retailing Co. Ltd. | Broadline Retail | 2,400 | | 25,948 |
| | Japan Airlines Co. Ltd. | Passenger Airlines | 2,400 | | 42,240 |
| | Japan Airport Terminal Co. Ltd. | Transportation Infrastructure | 957 | | 34,476 |
| | Japan Exchange Group, Inc. | Capital Markets | 16,586 | | 215,152 |
| | Japan Hotel REIT Investment Corp. | Hotel & Resort REITs | 72 | | 35,990 |
| | Japan Logistics Fund, Inc. | Industrial REITs | 13 | | 24,911 |
| | Japan Metropolitan Fund Invest | Retail REITs | 96 | | 64,832 |
| | Japan Post Bank Co. Ltd. | Banks | 21,600 | | 202,047 |
| | Japan Post Holdings Co. Ltd. | Insurance | 28,800 | | 275,034 |
| | Japan Post Insurance Co. Ltd. | Insurance | 2,400 | | 43,691 |
| | Japan Prime Realty Investment Corp. | Office REITs | 14 | | 34,109 |
| | Japan Real Estate Investment Corp. | Office REITs | 21 | | 83,830 |
| | Japan Steel Works Ltd. | Machinery | 898 | | 31,540 |
| | Japan Tobacco, Inc. | Tobacco | 18,340 | | 535,814 |
| | Jeol Ltd. | Electronic Equipment, Instruments & Components | 707 | | 27,476 |
| | JFE Holdings, Inc. | Metals & Mining | 9,600 | | 128,758 |
| | JGC Holdings Corp. | Construction & Engineering | 2,400 | | 21,015 |
| | JTEKT Corp. | Automobile Components | 2,400 | | 17,139 |
| | Kadokawa Corp. | Media | 1,302 | | 29,073 |
| | Kagome Co. Ltd. | Food Products | 1,421 | | 31,869 |
| | Kajima Corp. | Construction & Engineering | 6,600 | | 123,450 |
| | Kakaku.com, Inc. | Interactive Media & Services | 1,700 | | 29,611 |
| | Kamigumi Co. Ltd. | Transportation Infrastructure | 1,469 | | 33,469 |
| | Kandenko Co. Ltd. | Construction & Engineering | 1,400 | | 21,787 |
| | Kaneka Corp. | Chemicals | 694 | | 18,932 |
| | Kansai Electric Power Co., Inc. | Electric Utilities | 11,000 | | 182,257 |
| | Kansai Paint Co. Ltd. | Chemicals | 2,400 | | 42,819 |
| | Kao Corp. | Personal Care Products | 7,200 | | 357,836 |
| | Kawasaki Heavy Industries Ltd. | Machinery | 2,400 | | 97,399 |
| | Kawasaki Kisen Kaisha Ltd. | Marine Transportation | 6,200 | | 95,965 |
| | KDDI Corp. | Wireless Telecommunication Services | 23,224 | | 745,883 |
| | KDX Realty Investment Corp. | Diversified REITs | 48 | | 50,738 |
| | Keihan Holdings Co. Ltd. | Industrial Conglomerates | 1,562 | | 33,077 |
| | Keikyu Corp. | Ground Transportation | 2,400 | | 19,622 |
| | Keio Corp. | Ground Transportation | 1,700 | | 40,694 |
| | Keisei Electric Railway Co. Ltd. | Ground Transportation | 2,400 | | 71,628 |
| | Kewpie Corp. | Food Products | 1,700 | | 42,548 |
| | Keyence Corp. | Electronic Equipment, Instruments & Components | 3,024 | | 1,445,195 |
| 121 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE Japan Hedged ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | Japan (continued) | | | | |
| | Kikkoman Corp. | Food Products | 14,400 | | $ 163,893 |
| | Kinden Corp. | Construction & Engineering | 2,400 | | 52,852 |
| | Kintetsu Group Holdings Co. Ltd. | Ground Transportation | 2,400 | | 59,832 |
| | Kirin Holdings Co. Ltd. | Beverages | 12,000 | | 183,389 |
| | Kobayashi Pharmaceutical Co. Ltd. | Personal Care Products | 895 | | 35,684 |
| | Kobe Bussan Co. Ltd. | Consumer Staples Distribution & Retail | 2,400 | | 75,906 |
| | Kobe Steel Ltd. | Metals & Mining | 4,800 | | 57,433 |
| | Koei Tecmo Holdings Co. Ltd. | Entertainment | 2,400 | | 27,760 |
| | Koito Manufacturing Co. Ltd. | Automobile Components | 3,485 | | 48,119 |
| | Kokusai Electric Corp. | Semiconductors & Semiconductor Equipment | 1,900 | | 42,240 |
| | Kokuyo Co. Ltd. | Commercial Services & Supplies | 1,374 | | 24,312 |
| | Komatsu Ltd. | Machinery | 14,000 | | 388,171 |
| | Konami Group Corp. | Entertainment | 1,522 | | 154,764 |
| | Konica Minolta, Inc. | Technology Hardware, Storage & Peripherals | 7,200 | | 20,799 |
| | Kose Corp. | Personal Care Products | 601 | | 39,008 |
| | K’s Holdings Corp. | Specialty Retail | 2,400 | | 25,881 |
| | Kubota Corp. | Machinery | 14,400 | | 204,463 |
| | Kuraray Co. Ltd. | Chemicals | 4,800 | | 71,124 |
| | Kurita Water Industries Ltd. | Machinery | 1,638 | | 70,609 |
| | Kusuri No. Aoki Holdings Co. Ltd. | Consumer Staples Distribution & Retail | 822 | | 19,154 |
| | Kyocera Corp. | Electronic Equipment, Instruments & Components | 19,200 | | 222,819 |
| | Kyoto Financial Group, Inc. | Banks | 4,800 | | 73,977 |
| | Kyowa Kirin Co. Ltd. | Pharmaceuticals | 3,780 | | 66,779 |
| | Kyudenko Corp. | Construction & Engineering | 625 | | 29,550 |
| | Kyushu Electric Power Co., Inc. | Electric Utilities | 7,200 | | 78,649 |
| | Kyushu Financial Group, Inc. | Banks | 4,800 | | 23,393 |
| | Kyushu Railway Co. | Ground Transportation | 2,400 | | 69,379 |
| | LaSalle Logiport REIT | Industrial REITs | 30 | | 30,055 |
| | Lasertec Corp. | Semiconductors & Semiconductor Equipment | 1,327 | | 218,987 |
| | Lion Corp. | Household Products | 2,400 | | 27,097 |
| | Lixil Corp. | Building Products | 4,000 | | 47,917 |
| | LY Corp. | Interactive Media & Services | 40,800 | | 119,599 |
| | M3, Inc. | Health Care Technology | 7,200 | | 72,383 |
| | Mabuchi Motor Co. Ltd. | Electrical Equipment | 1,594 | | 24,784 |
| | Macnica Holdings, Inc. | Electronic Equipment, Instruments & Components | 2,265 | | 31,448 |
| | Makita Corp. | Machinery | 3,859 | | 130,603 |
| | Mani, Inc. | Health Care Equipment & Supplies | 939 | | 11,954 |
| | Marubeni Corp. | Trading Companies & Distributors | 24,700 | | 404,069 |
| | Marui Group Co. Ltd. | Consumer Finance | 2,400 | | 40,109 |
| | Maruichi Steel Tube Ltd. | Metals & Mining | 940 | | 22,100 |
| | Maruwa Co. Ltd. | Electronic Equipment, Instruments & Components | 148 | | 43,405 |
| | Matsui Securities Co. Ltd. | Capital Markets | 2,400 | | 13,121 |
| | MatsukiyoCocokara & Co. | Consumer Staples Distribution & Retail | 5,300 | | 87,185 |
| | Mazda Motor Corp. | Automobiles | 9,600 | | 71,812 |
| | McDonald’s Holdings Co. Japan Ltd. | Hotels, Restaurants & Leisure | 1,453 | | 69,481 |
| | Mebuki Financial Group, Inc. | Banks | 14,400 | | 57,836 |
| | Medipal Holdings Corp. | Health Care Providers & Services | 2,400 | | 41,787 |
| | MEIJI Holdings Co. Ltd. | Food Products | 4,073 | | 102,224 |
| a | Mercari, Inc. | Broadline Retail | 1,800 | | 31,548 |
| | Minebea Mitsumi, Inc. | Machinery | 6,500 | | 128,055 |
| | MISUMI Group, Inc. | Machinery | 4,300 | | 77,859 |
| | Mitsubishi Chemical Group Corp. | Chemicals | 19,200 | | 123,342 |
| | Mitsubishi Corp. | Trading Companies & Distributors | 62,172 | | 1,283,297 |
| | Mitsubishi Electric Corp. | Electrical Equipment | 28,800 | | 463,792 |
| | Mitsubishi Estate Co. Ltd. | Real Estate Management & Development | 16,744 | | 264,376 |
| | Mitsubishi Gas Chemical Co., Inc. | Chemicals | 2,400 | | 46,468 |
| | Mitsubishi HC Capital, Inc. | Financial Services | 12,000 | | 84,773 |
| franklintempleton.com | Semi-Annual Report | 122 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE Japan Hedged ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | Japan (continued) | | | | |
| | Mitsubishi Heavy Industries Ltd. | Machinery | 45,600 | | $ 675,042 |
| | Mitsubishi Logistics Corp. | Transportation Infrastructure | 928 | | 33,879 |
| | Mitsubishi Materials Corp. | Metals & Mining | 2,400 | | 43,205 |
| | Mitsubishi Motors Corp. | Automobiles | 9,600 | | 25,805 |
| | Mitsubishi UFJ Financial Group, Inc. | Banks | 175,200 | | 1,780,294 |
| | Mitsui & Co. Ltd. | Trading Companies & Distributors | 45,175 | | 1,003,678 |
| | Mitsui Chemicals, Inc. | Chemicals | 2,400 | | 63,842 |
| | Mitsui Fudosan Co. Ltd. | Real Estate Management & Development | 40,856 | | 382,168 |
| | Mitsui Fudosan Logistics Park, Inc. | Industrial REITs | 9 | | 26,709 |
| | Mitsui High-Tec, Inc. | Semiconductors & Semiconductor Equipment | 2,060 | | 12,970 |
| | Mitsui Mining & Smelting Co. Ltd. | Metals & Mining | 764 | | 26,065 |
| | Mitsui OSK Lines Ltd. | Marine Transportation | 5,225 | | 179,938 |
| | Miura Co. Ltd. | Machinery | 1,519 | | 37,295 |
| | Mizuho Financial Group, Inc. | Banks | 38,400 | | 788,188 |
| a | Money Forward, Inc. | Software | 697 | | 28,540 |
| | MonotaRO Co. Ltd. | Trading Companies & Distributors | 2,400 | | 40,227 |
| | Mori Hills REIT Investment Corp., Class C | Office REITs | 24 | | 21,359 |
| | Morinaga & Co. Ltd. | Food Products | 1,321 | | 26,500 |
| | Morinaga Milk Industry Co. Ltd. | Food Products | 930 | | 22,840 |
| | MS&AD Insurance Group Holdings, Inc. | Insurance | 20,800 | | 484,228 |
| | Murata Manufacturing Co. Ltd. | Electronic Equipment, Instruments & Components | 26,400 | | 517,978 |
| | Nabtesco Corp. | Machinery | 2,400 | | 41,426 |
| | Nagase & Co. Ltd. | Trading Companies & Distributors | 1,600 | | 35,805 |
| | Nagoya Railroad Co. Ltd. | Ground Transportation | 2,400 | | 29,211 |
| | Nankai Electric Railway Co. Ltd. | Ground Transportation | 2,400 | | 39,589 |
| | NEC Corp. | IT Services | 3,952 | | 379,894 |
| | NEC Networks & System Integration Corp. | IT Services | 924 | | 17,887 |
| | NET One Systems Co. Ltd. | IT Services | 1,107 | | 27,698 |
| | Nexon Co. Ltd. | Entertainment | 7,200 | | 142,424 |
| | NGK Insulators Ltd. | Machinery | 2,400 | | 31,393 |
| | NH Foods Ltd. | Food Products | 1,392 | | 51,898 |
| | NHK Spring Co. Ltd. | Automobile Components | 2,400 | | 30,503 |
| | Nichirei Corp. | Food Products | 1,659 | | 51,809 |
| | NIDEC Corp. | Electrical Equipment | 15,916 | | 334,476 |
| | Nifco, Inc. | Automobile Components | 1,300 | | 33,045 |
| | Nihon Kohden Corp. | Health Care Equipment & Supplies | 2,314 | | 34,409 |
| | Nihon M&A Center Holdings, Inc. | Capital Markets | 4,800 | | 21,970 |
| | Nikon Corp. | Household Durables | 4,800 | | 49,849 |
| | Nintendo Co. Ltd. | Entertainment | 16,062 | | 857,448 |
| | Nippon Accommodations Fund, Inc. | Residential REITs | 7 | | 31,222 |
| | Nippon Building Fund, Inc. | Office REITs | 120 | | 110,570 |
| | Nippon Electric Glass Co. Ltd. | Electronic Equipment, Instruments & Components | 1,159 | | 27,241 |
| | NIPPON EXPRESS HOLDINGS, Inc. | Air Freight & Logistics | 1,044 | | 55,039 |
| | Nippon Kayaku Co. Ltd. | Chemicals | 2,400 | | 20,956 |
| | Nippon Paint Holdings Co. Ltd. | Chemicals | 14,400 | | 110,487 |
| | Nippon Prologis REIT, Inc. | Industrial REITs | 38 | | 65,405 |
| | Nippon Sanso Holdings Corp. | Chemicals | 2,810 | | 102,409 |
| | Nippon Shinyaku Co. Ltd. | Pharmaceuticals | 888 | | 23,131 |
| | Nippon Shokubai Co. Ltd. | Chemicals | 2,412 | | 29,239 |
| | Nippon Steel Corp. | Metals & Mining | 12,673 | | 283,335 |
| | Nippon Telegraph & Telephone Corp. | Diversified Telecommunication Services | 434,400 | | 445,819 |
| | Nippon Yusen KK | Marine Transportation | 6,700 | | 244,505 |
| | Nipro Corp. | Health Care Equipment & Supplies | 2,400 | | 23,884 |
| | Nishi-Nippon Railroad Co. Ltd. | Ground Transportation | 1,182 | | 18,907 |
| | Nissan Chemical Corp. | Chemicals | 1,941 | | 69,558 |
| | Nissan Motor Co. Ltd. | Automobiles | 26,400 | | 74,287 |
| | Nisshin Seifun Group, Inc. | Food Products | 4,800 | | 61,023 |
| 123 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE Japan Hedged ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | Japan (continued) | | | | |
| | Nissin Foods Holdings Co. Ltd. | Food Products | 3,213 | | $ 90,006 |
| | Niterra Co. Ltd. | Automobile Components | 2,400 | | 67,030 |
| | Nitori Holdings Co. Ltd. | Specialty Retail | 1,182 | | 180,101 |
| | Nitto Denko Corp. | Chemicals | 11,000 | | 183,679 |
| | NOF Corp. | Chemicals | 3,270 | | 56,237 |
| | NOK Corp. | Automobile Components | 2,400 | | 37,651 |
| | Nomura Holdings, Inc. | Capital Markets | 43,200 | | 224,396 |
| | Nomura Real Estate Holdings, Inc. | Real Estate Management & Development | 1,624 | | 43,495 |
| | Nomura Real Estate Master Fund, Inc. | Diversified REITs | 72 | | 71,930 |
| | Nomura Research Institute Ltd. | IT Services | 6,400 | | 237,136 |
| | NS Solutions Corp. | IT Services | 1,068 | | 27,887 |
| | NSK Ltd. | Machinery | 7,200 | | 36,287 |
| | NTT Data Group Corp. | IT Services | 9,600 | | 172,785 |
| | Obayashi Corp. | Construction & Engineering | 9,600 | | 121,678 |
| | OBIC Business Consultants Co. Ltd. | Software | 484 | | 25,117 |
| | Obic Co. Ltd. | IT Services | 4,940 | | 174,268 |
| | Odakyu Electric Railway Co. Ltd. | Ground Transportation | 4,800 | | 53,658 |
| | Oji Holdings Corp. | Paper & Forest Products | 14,400 | | 57,785 |
| | OKUMA Corp. | Machinery | 776 | | 16,617 |
| | Olympus Corp. | Health Care Equipment & Supplies | 16,800 | | 319,287 |
| | Omron Corp. | Electronic Equipment, Instruments & Components | 2,804 | | 128,340 |
| | Ono Pharmaceutical Co. Ltd. | Pharmaceuticals | 7,200 | | 96,216 |
| | Open House Group Co. Ltd. | Household Durables | 1,178 | | 44,513 |
| | Oracle Corp. | Software | 504 | | 51,954 |
| | Oriental Land Co. Ltd. | Hotels, Restaurants & Leisure | 16,800 | | 434,329 |
| | ORIX Corp. | Financial Services | 17,000 | | 394,337 |
| | Orix JREIT, Inc. | Office REITs | 48 | | 51,544 |
| | Osaka Gas Co. Ltd. | Gas Utilities | 5,840 | | 131,629 |
| | OSG Corp. | Machinery | 1,228 | | 17,380 |
| | Otsuka Corp. | IT Services | 3,218 | | 79,730 |
| | Otsuka Holdings Co. Ltd. | Pharmaceuticals | 7,464 | | 421,781 |
| | PALTAC Corp. | Distributors | 512 | | 15,785 |
| | Pan Pacific International Holdings Corp. | Broadline Retail | 6,404 | | 165,428 |
| | Panasonic Holdings Corp. | Household Durables | 31,200 | | 271,124 |
| a | Park24 Co. Ltd. | Commercial Services & Supplies | 2,400 | | 30,076 |
| | Penta-Ocean Construction Co. Ltd. | Construction & Engineering | 4,800 | | 21,450 |
| a | PeptiDream, Inc. | Biotechnology | 1,500 | | 27,905 |
| | Persol Holdings Co. Ltd. | Professional Services | 26,400 | | 47,396 |
| | Rakus Co. Ltd. | Software | 1,560 | | 24,391 |
| a | Rakuten Bank Ltd. | Banks | 1,268 | | 28,589 |
| a | Rakuten Group, Inc. | Broadline Retail | 21,600 | | 139,772 |
| | Recruit Holdings Co. Ltd. | Professional Services | 20,713 | | 1,260,533 |
| | Relo Group, Inc. | Real Estate Management & Development | 2,400 | | 31,510 |
| | Renesas Electronics Corp. | Semiconductors & Semiconductor Equipment | 24,000 | | 348,825 |
| | Rengo Co. Ltd. | Containers & Packaging | 2,400 | | 16,760 |
| | Resona Holdings, Inc. | Banks | 33,600 | | 234,336 |
| | Resonac Holdings Corp. | Chemicals | 2,400 | | 61,745 |
| | Resorttrust, Inc. | Hotels, Restaurants & Leisure | 939 | | 18,880 |
| | Ricoh Co. Ltd. | Technology Hardware, Storage & Peripherals | 8,600 | | 92,740 |
| | Rinnai Corp. | Household Durables | 1,400 | | 34,560 |
| | Rohm Co. Ltd. | Semiconductors & Semiconductor Equipment | 4,800 | | 53,893 |
| | Rohto Pharmaceutical Co. Ltd. | Personal Care Products | 2,996 | | 74,816 |
| | Rorze Corp. | Semiconductors & Semiconductor Equipment | 1,500 | | 20,659 |
| | Ryohin Keikaku Co. Ltd. | Broadline Retail | 3,758 | | 69,201 |
| | Sankyo Co. Ltd. | Leisure Products | 2,400 | | 35,336 |
| | Sankyu, Inc. | Air Freight & Logistics | 723 | | 24,333 |
| | Sanrio Co. Ltd. | Specialty Retail | 2,714 | | 78,361 |
| franklintempleton.com | Semi-Annual Report | 124 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE Japan Hedged ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | Japan (continued) | | | | |
| | Santen Pharmaceutical Co. Ltd. | Pharmaceuticals | 4,800 | | $ 58,205 |
| | Sanwa Holdings Corp. | Building Products | 2,400 | | 63,339 |
| | Sapporo Holdings Ltd. | Beverages | 1,025 | | 56,675 |
| | Sawai Group Holdings Co. Ltd. | Pharmaceuticals | 2,034 | | 28,973 |
| | SBI Holdings, Inc. | Capital Markets | 4,800 | | 110,570 |
| | SCREEN Holdings Co. Ltd. | Semiconductors & Semiconductor Equipment | 1,245 | | 86,804 |
| | SCSK Corp. | IT Services | 2,400 | | 49,656 |
| | Secom Co. Ltd. | Commercial Services & Supplies | 6,258 | | 231,612 |
| | Sega Sammy Holdings, Inc. | Leisure Products | 2,400 | | 47,987 |
| | Seibu Holdings, Inc. | Ground Transportation | 3,200 | | 71,387 |
| | Seiko Epson Corp. | Technology Hardware, Storage & Peripherals | 3,800 | | 70,121 |
| | Seino Holdings Co. Ltd. | Ground Transportation | 2,400 | | 40,386 |
| | Sekisui Chemical Co. Ltd. | Household Durables | 4,800 | | 74,883 |
| | Sekisui House Ltd. | Household Durables | 8,300 | | 230,594 |
| | Sekisui House Reit, Inc. | Diversified REITs | 72 | | 38,255 |
| | Seven & i Holdings Co. Ltd. | Consumer Staples Distribution & Retail | 36,000 | | 540,352 |
| | Seven Bank Ltd. | Banks | 9,600 | | 19,215 |
| | SG Holdings Co. Ltd. | Air Freight & Logistics | 7,200 | | 77,567 |
| a | Sharp Corp. | Household Durables | 2,400 | | 15,936 |
| a | SHIFT, Inc. | IT Services | 170 | | 16,235 |
| | Shikoku Electric Power Co., Inc. | Electric Utilities | 2,400 | | 21,351 |
| | Shimadzu Corp. | Electronic Equipment, Instruments & Components | 4,300 | | 143,514 |
| | Shimamura Co. Ltd. | Specialty Retail | 672 | | 36,757 |
| | Shimano, Inc. | Leisure Products | 1,198 | | 227,556 |
| | Shimizu Corp. | Construction & Engineering | 7,200 | | 49,505 |
| | Shin-Etsu Chemical Co. Ltd. | Chemicals | 29,485 | | 1,232,046 |
| a | Shinko Electric Industries Co. Ltd. | Semiconductors & Semiconductor Equipment | 1,010 | | 38,758 |
| | Shionogi & Co. Ltd. | Pharmaceuticals | 11,091 | | 159,224 |
| | Ship Healthcare Holdings, Inc. | Health Care Providers & Services | 1,273 | | 20,812 |
| | Shiseido Co. Ltd. | Personal Care Products | 6,016 | | 162,975 |
| | Shizuoka Financial Group, Inc. | Banks | 7,200 | | 62,643 |
| | SHO-BOND Holdings Co. Ltd. | Construction & Engineering | 794 | | 31,485 |
| | Skylark Holdings Co. Ltd. | Hotels, Restaurants & Leisure | 2,400 | | 38,767 |
| | SMC Corp. | Machinery | 812 | | 361,324 |
| | Socionext, Inc. | Semiconductors & Semiconductor Equipment | 2,861 | | 56,724 |
| | SoftBank Corp. | Wireless Telecommunication Services | 415,200 | | 543,383 |
| | SoftBank Group Corp. | Wireless Telecommunication Services | 15,154 | | 892,777 |
| | Sohgo Security Services Co. Ltd. | Commercial Services & Supplies | 7,200 | | 52,097 |
| | Sojitz Corp. | Trading Companies & Distributors | 3,239 | | 76,197 |
| | Sompo Holdings, Inc. | Insurance | 14,400 | | 322,248 |
| | Sony Group Corp. | Household Durables | 92,535 | | 1,796,812 |
| | Sotetsu Holdings, Inc. | Ground Transportation | 1,159 | | 19,325 |
| | Square Enix Holdings Co. Ltd. | Entertainment | 1,251 | | 49,807 |
| | Stanley Electric Co. Ltd. | Automobile Components | 2,400 | | 44,690 |
| | Subaru Corp. | Automobiles | 9,600 | | 166,577 |
| | Sugi Holdings Co. Ltd. | Consumer Staples Distribution & Retail | 1,421 | | 26,480 |
| | SUMCO Corp. | Semiconductors & Semiconductor Equipment | 4,800 | | 51,745 |
| | Sumitomo Bakelite Co. Ltd. | Chemicals | 1,080 | | 30,330 |
| | Sumitomo Chemical Co. Ltd. | Chemicals | 24,000 | | 68,372 |
| | Sumitomo Corp. | Trading Companies & Distributors | 15,976 | | 356,735 |
| | Sumitomo Electric Industries Ltd. | Automobile Components | 12,000 | | 192,575 |
| | Sumitomo Forestry Co. Ltd. | Household Durables | 2,400 | | 119,044 |
| | Sumitomo Heavy Industries Ltd. | Machinery | 1,678 | | 40,355 |
| | Sumitomo Metal Mining Co. Ltd. | Metals & Mining | 3,616 | | 108,475 |
| | Sumitomo Mitsui Financial Group, Inc. | Banks | 57,534 | | 1,224,770 |
| | Sumitomo Mitsui Trust Holdings, Inc. | Banks | 10,900 | | 258,403 |
| | Sumitomo Realty & Development Co. Ltd. | Real Estate Management & Development | 6,479 | | 217,688 |
| 125 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE Japan Hedged ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | Japan (continued) | | | | |
| | Sumitomo Rubber Industries Ltd. | Automobile Components | 2,400 | | $ 26,300 |
| | Sundrug Co. Ltd. | Consumer Staples Distribution & Retail | 856 | | 25,338 |
| | Suntory Beverage & Food Ltd. | Beverages | 1,904 | | 71,799 |
| | Suzuken Co. Ltd. | Health Care Providers & Services | 1,237 | | 43,266 |
| | Suzuki Motor Corp. | Automobiles | 28,800 | | 320,638 |
| | Sysmex Corp. | Health Care Equipment & Supplies | 8,700 | | 171,944 |
| | T&D Holdings, Inc. | Insurance | 8,000 | | 139,541 |
| | Taiheiyo Cement Corp. | Construction Materials | 1,578 | | 37,166 |
| | Taisei Corp. | Construction & Engineering | 2,400 | | 105,034 |
| | Taiyo Yuden Co. Ltd. | Electronic Equipment, Instruments & Components | 1,800 | | 36,688 |
| | Takara Holdings, Inc. | Beverages | 2,400 | | 20,419 |
| | Takasago Thermal Engineering Co. Ltd. | Building Products | 900 | | 32,341 |
| | Takashimaya Co. Ltd. | Broadline Retail | 4,800 | | 38,356 |
| | Takeda Pharmaceutical Co. Ltd. | Pharmaceuticals | 24,000 | | 688,423 |
| | TDK Corp. | Electronic Equipment, Instruments & Components | 28,135 | | 358,572 |
| | TechnoPro Holdings, Inc. | Professional Services | 1,409 | | 27,374 |
| | Teijin Ltd. | Chemicals | 2,400 | | 23,758 |
| | Terumo Corp. | Health Care Equipment & Supplies | 22,000 | | 415,268 |
| | THK Co. Ltd. | Machinery | 2,400 | | 42,181 |
| | TIS, Inc. | IT Services | 3,435 | | 87,676 |
| | Tobu Railway Co. Ltd. | Ground Transportation | 3,177 | | 55,593 |
| | Toda Corp. | Construction & Engineering | 4,800 | | 31,607 |
| | Toho Co. Ltd. | Entertainment | 1,584 | | 64,372 |
| | Toho Gas Co. Ltd. | Gas Utilities | 1,305 | | 36,210 |
| | Tohoku Electric Power Co., Inc. | Electric Utilities | 7,200 | | 69,010 |
| | Tokai Carbon Co. Ltd. | Chemicals | 2,400 | | 15,453 |
| | Tokio Marine Holdings, Inc. | Insurance | 29,418 | | 1,075,822 |
| | Tokyo Century Corp. | Financial Services | 4,800 | | 53,893 |
| a | Tokyo Electric Power Co. Holdings, Inc. | Electric Utilities | 21,600 | | 96,176 |
| | Tokyo Electron Ltd. | Semiconductors & Semiconductor Equipment | 6,767 | | 1,196,431 |
| | Tokyo Gas Co. Ltd. | Gas Utilities | 5,429 | | 126,654 |
| | Tokyo Ohka Kogyo Co. Ltd. | Chemicals | 1,712 | | 41,759 |
| | Tokyo Seimitsu Co. Ltd. | Semiconductors & Semiconductor Equipment | 576 | | 30,403 |
| | Tokyo Tatemono Co. Ltd. | Real Estate Management & Development | 3,062 | | 49,160 |
| | Tokyu Corp. | Ground Transportation | 7,200 | | 93,272 |
| | Tokyu Fudosan Holdings Corp. | Real Estate Management & Development | 9,600 | | 66,175 |
| | TOPPAN Holdings, Inc. | Commercial Services & Supplies | 4,200 | | 124,614 |
| | Toray Industries, Inc. | Chemicals | 24,000 | | 141,477 |
| | Toridoll Holdings Corp. | Hotels, Restaurants & Leisure | 600 | | 15,604 |
| | Tosoh Corp. | Chemicals | 4,800 | | 64,195 |
| | TOTO Ltd. | Building Products | 2,400 | | 89,547 |
| | Toyo Seikan Group Holdings Ltd. | Containers & Packaging | 2,400 | | 37,768 |
| | Toyo Suisan Kaisha Ltd. | Food Products | 1,353 | | 88,431 |
| | Toyo Tire Corp. | Automobile Components | 1,400 | | 20,426 |
| | Toyoda Gosei Co. Ltd. | Automobile Components | 1,251 | | 21,383 |
| | Toyota Boshoku Corp. | Automobile Components | 918 | | 11,988 |
| | Toyota Industries Corp. | Machinery | 2,481 | | 191,226 |
| | Toyota Motor Corp. | Automobiles | 183,726 | | 3,265,683 |
| | Toyota Tsusho Corp. | Trading Companies & Distributors | 10,213 | | 184,568 |
| | Trend Micro, Inc. | Software | 1,972 | | 116,991 |
| | Tsumura & Co. | Pharmaceuticals | 994 | | 31,354 |
| | Tsuruha Holdings, Inc. | Consumer Staples Distribution & Retail | 687 | | 43,562 |
| | UBE Corp. | Chemicals | 1,500 | | 27,994 |
| | Ulvac, Inc. | Semiconductors & Semiconductor Equipment | 751 | | 40,002 |
| | Unicharm Corp. | Household Products | 5,886 | | 213,277 |
| | United Urban Investment Corp. | Diversified REITs | 48 | | 46,342 |
| | Ushio, Inc. | Electrical Equipment | 1,500 | | 21,288 |
| franklintempleton.com | Semi-Annual Report | 126 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE Japan Hedged ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | Japan (continued) | | | | |
| | USS Co. Ltd. | Specialty Retail | 7,200 | | $ 68,280 |
| | Welcia Holdings Co. Ltd. | Consumer Staples Distribution & Retail | 1,785 | | 25,432 |
| | West Japan Railway Co. | Ground Transportation | 7,200 | | 137,114 |
| | Workman Co. Ltd. | Specialty Retail | 776 | | 24,196 |
| | Yakult Honsha Co. Ltd. | Food Products | 4,800 | | 111,376 |
| | Yamada Holdings Co. Ltd. | Specialty Retail | 9,600 | | 30,114 |
| | Yamaguchi Financial Group, Inc. | Banks | 2,400 | | 25,998 |
| | Yamaha Corp. | Leisure Products | 7,200 | | 62,089 |
| | Yamaha Motor Co. Ltd. | Automobiles | 14,400 | | 128,859 |
| | Yamato Holdings Co. Ltd. | Air Freight & Logistics | 4,800 | | 54,832 |
| | Yamato Kogyo Co. Ltd. | Metals & Mining | 586 | | 29,320 |
| | Yamazaki Baking Co. Ltd. | Food Products | 2,400 | | 47,743 |
| | Yaoko Co. Ltd. | Consumer Staples Distribution & Retail | 408 | | 27,731 |
| | Yaskawa Electric Corp. | Machinery | 4,076 | | 142,421 |
| | Yokogawa Electric Corp. | Electronic Equipment, Instruments & Components | 3,592 | | 91,784 |
| | Yokohama Rubber Co. Ltd. | Automobile Components | 2,400 | | 53,893 |
| | Zenkoku Hosho Co. Ltd. | Financial Services | 690 | | 27,226 |
| | Zensho Holdings Co. Ltd. | Hotels, Restaurants & Leisure | 1,515 | | 84,054 |
| | Zeon Corp. | Chemicals | 2,400 | | 22,810 |
| | ZOZO, Inc. | Specialty Retail | 1,700 | | 61,967 |
| | Total Common Stocks (Cost $66,480,732) | | | | 72,237,496 |
| | Total Investments before Short-Term Investments (Cost $66,480,732) | | | | 72,237,496 |
| | Short-Term Investments 0.9% | | | | |
| | Money Market Funds 0.9% | | | | |
| | United States 0.9% | | | | |
| b,c | Institutional Fiduciary Trust - Money Market Portfolio, 4.74% | Money Market Funds | 683,395 | | 683,395 |
| | Total Short-Term Investments (Cost $683,395) | | | | 683,395 |
| | Total Investments (Cost $67,164,127) 100.1% | | | | 72,920,891 |
| | Other Assets, less Liabilities (0.1)% | | | | (74,553) |
| | Net Assets 100.0% | | | | $ 72,846,338 |
| aNon-income producing. |
| bThe rate shown is the annualized seven-day effective yield at period end. |
| cSee Note 3(c) regarding investments in affiliated management investment companies. |
At September 30, 2024, the Fund had the following forward exchange contracts outstanding. See Note 1(c).
Forward Exchange Contracts
| Currency | Counterpartya | Type | Quantity | Contract
Amount | Settlement
Date | Unrealized
Appreciation | Unrealized
Depreciation |
| OTC Forward Exchange Contracts |
| Japanese Yen | UBSW | Buy | 4,265,759,000 | $ 29,419,129 | 10/02/24 | $ — | $ (403,012) |
| Japanese Yen | SSBT | Buy | 4,265,759,000 | 29,420,448 | 10/02/24 | — | (401,693) |
| Japanese Yen | BOFA | Buy | 2,132,880,000 | 14,710,451 | 10/02/24 | — | (200,623) |
| Japanese Yen | BOFA | Sell | 2,132,880,000 | 14,910,928 | 10/02/24 | 146 | — |
| 127 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE Japan Hedged ETF (continued)
Forward Exchange Contracts (continued)
| Currency | Counterpartya | Type | Quantity | Contract
Amount | Settlement
Date | Unrealized
Appreciation | Unrealized
Depreciation |
| OTC Forward Exchange Contracts (continued) |
| Japanese Yen | UBSW | Sell | 4,265,759,000 | $ 29,821,849 | 10/02/24 | $ 292 | $ — |
| Japanese Yen | SSBT | Buy | 4,322,482,000 | 30,357,877 | 11/05/24 | — | (949) |
| Japanese Yen | UBSW | Buy | 4,322,482,000 | 30,357,983 | 11/05/24 | — | (842) |
| Japanese Yen | BOFA | Buy | 2,161,241,000 | 15,179,024 | 11/05/24 | — | (389) |
| Total Forward Exchange Contracts | $438 | $(1,007,508) |
| Net unrealized appreciation (depreciation) | | $(1,007,070) |
| aMay be comprised of multiple contracts with the same counterparty, currency and settlement date. |
At September 30, 2024, the Fund had the following futures contracts outstanding. See Note 1(c).
Futures Contracts
| Description | Type | Number of
Contracts | Notional
Amount* | Expiration
Date | Value/Unrealized
Appreciation
(Depreciation) |
| Index Contracts | | | | | |
| Mini Topix Index Futures | Long | 24 | $ 444,211 | 12/12/24 | $ (6,855) |
| Nikkei 225 Mini | Long | 33 | 875,525 | 12/12/24 | 43,348 |
| Total Futures Contracts | | | | | $36,493 |
See Note 7 regarding other derivative information.
See Abbreviations on page 207.
| franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Semi-Annual Report | 128 |
Franklin Templeton ETF Trust
Financial Highlights
Franklin FTSE Latin America ETF
| | Six Months Ended
September 30, 2024
(unaudited) | Year Ended March 31, |
| | 2024 | 2023 | 2022 | 2021 | 2020 |
| Per share operating performance | | | | | | |
| (for a share outstanding throughout the period) | | | | | | |
| Net asset value, beginning of period | $23.61 | $20.42 | $25.25 | $22.40 | $15.20 | $26.41 |
| Income from investment operationsa: | | | | | | |
| Net investment incomeb | 0.68 | 1.32 | 1.66 | 1.54 | 0.57 | 0.77 |
| Net realized and unrealized gains (losses) | (2.85) | 3.21 | (4.62) | 2.83 | 7.13 | (11.08) |
| Total from investment operations | (2.17) | 4.53 | (2.96) | 4.37 | 7.70 | (10.31) |
| Less distributions from net investment income | (0.57) | (1.34) | (1.87) | (1.52) | (0.50) | (0.90) |
| Net asset value, end of period | $20.87 | $23.61 | $20.42 | $25.25 | $22.40 | $15.20 |
| Total returnc | (9.09)% | 22.39% | (11.05)% | 21.12% | 50.80% | (40.49)% |
| Ratios to average net assetsd | | | | | | |
| Total expenses | 0.19% | 0.19% | 0.19% | 0.19% | 0.19% | 0.21% |
| Net investment income | 6.26% | 5.82% | 8.09% | 6.75% | 2.86% | 2.97% |
| Supplemental data | | | | | | |
| Net assets, end of period (000’s) | $52,181 | $68,479 | $67,372 | $7,575 | $4,480 | $1,520 |
| Portfolio turnover ratee | 4.45%f | 8.97%f | 10.49%f | 18.50%f | 10.21%f | 12.74%f |
| aThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of Creation Unit Fund shares in relation to income earned and/or fluctuating fair value of the investments of the Fund. |
| bBased on average daily shares outstanding. |
| cTotal return is not annualized for periods less than one year. Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. |
| dRatios are annualized for periods less than one year. |
| ePortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash ("Cash creations"). |
| fPortfolio turnover rate excluding cash creations was as follows: | 3.42% | 6.40% | 10.49% | 18.50% | 10.21% | 12.74% |
| 129 | Semi-Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments, September 30, 2024 (unaudited)
Franklin FTSE Latin America ETF
| | | Industry | Shares | | Value |
| | Common Stocks 79.5% | | | | |
| | Brazil 43.5% | | | | |
| | Allos SA | Real Estate Management & Development | 37,500 | | $ 150,460 |
| | Alupar Investimento SA, UNIT | Electric Utilities | 10,000 | | 56,098 |
| | Ambev SA | Beverages | 367,500 | | 882,680 |
| a | Atacadao SA | Consumer Staples Distribution & Retail | 45,000 | | 76,435 |
| | Auren Energia SA | Independent Power Producers & Energy Traders | 30,000 | | 57,622 |
| | B3 SA - Brasil Bolsa Balcao | Capital Markets | 467,500 | | 919,410 |
| | Banco Bradesco SA | Banks | 127,500 | | 306,470 |
| | Banco BTG Pactual SA | Capital Markets | 98,700 | | 602,988 |
| | Banco do Brasil SA | Banks | 144,100 | | 719,203 |
| | Banco Santander Brasil SA | Banks | 30,000 | | 156,396 |
| | BB Seguridade Participacoes SA | Insurance | 57,500 | | 374,830 |
| a | BRF SA | Food Products | 55,000 | | 238,854 |
| | Caixa Seguridade Participacoes SA | Insurance | 37,500 | | 100,192 |
| | CCR SA | Transportation Infrastructure | 95,000 | | 211,080 |
| | Centrais Eletricas Brasileiras SA | Electric Utilities | 107,500 | | 776,768 |
| | Cia de Saneamento Basico do Estado de Sao Paulo SABESP | Water Utilities | 36,200 | | 600,918 |
| | Cia Energetica de Minas Gerais | Electric Utilities | 5,000 | | 13,387 |
| | Cia Paranaense de Energia - Copel | Electric Utilities | 67,500 | | 113,909 |
| | Cia Siderurgica Nacional SA | Metals & Mining | 52,500 | | 124,266 |
| | Cosan SA | Oil, Gas & Consumable Fuels | 100,000 | | 240,185 |
| | CPFL Energia SA | Electric Utilities | 15,000 | | 93,457 |
| | CSN Mineracao SA | Metals & Mining | 45,000 | | 57,016 |
| a | Embraer SA | Aerospace & Defense | 62,000 | | 546,135 |
| | Energisa SA | Electric Utilities | 27,500 | | 226,179 |
| a | Eneva SA | Independent Power Producers & Energy Traders | 32,500 | | 83,372 |
| | Engie Brasil Energia SA | Independent Power Producers & Energy Traders | 15,000 | | 116,925 |
| | Equatorial Energia SA | Electric Utilities | 77,500 | | 462,512 |
| a | Equatorial Energia SA | Electric Utilities | 4,940 | | 29,518 |
| b | GPS Participacoes e Empreendimentos SA | Commercial Services & Supplies | 35,000 | | 119,799 |
| | Grupo Mateus SA | Consumer Staples Distribution & Retail | 32,500 | | 44,222 |
| a,b | Hapvida Participacoes e Investimentos SA | Health Care Providers & Services | 400,000 | | 293,804 |
| | Hypera SA | Pharmaceuticals | 33,900 | | 163,281 |
| | Intelbras SA Industria de Telecomunicacao Eletronica Brasileira | Communications Equipment | 5,000 | | 18,455 |
| | Itau Unibanco Holding SA | Banks | 37,500 | | 216,428 |
| | Klabin SA | Containers & Packaging | 70,000 | | 268,519 |
| | Localiza Rent a Car SA | Ground Transportation | 83,241 | | 626,700 |
| | Lojas Renner SA | Specialty Retail | 80,000 | | 265,305 |
| | M Dias Branco SA | Food Products | 10,000 | | 46,788 |
| a | Magazine Luiza SA | Broadline Retail | 32,500 | | 57,889 |
| a | Marfrig Global Foods SA | Food Products | 27,500 | | 68,879 |
| | Multiplan Empreendimentos Imobiliarios SA | Real Estate Management & Development | 27,500 | | 129,526 |
| | Natura & Co. Holding SA | Personal Care Products | 80,000 | | 206,398 |
| | Neoenergia SA | Electric Utilities | 20,000 | | 71,982 |
| | Petroleo Brasileiro SA | Oil, Gas & Consumable Fuels | 312,500 | | 2,253,457 |
| | Porto Seguro SA | Insurance | 15,000 | | 100,426 |
| | PRIO SA | Oil, Gas & Consumable Fuels | 56,900 | | 452,730 |
| | Raia Drogasil SA | Consumer Staples Distribution & Retail | 95,000 | | 444,664 |
| b | Rede D’Or Sao Luiz SA | Health Care Providers & Services | 65,000 | | 369,174 |
| | Rumo SA | Ground Transportation | 105,000 | | 385,618 |
| | Santos Brasil Participacoes SA | Transportation Infrastructure | 60,000 | | 162,621 |
| | Sao Martinho SA | Food Products | 13,300 | | 64,011 |
| a | Sendas Distribuidora SA | Consumer Staples Distribution & Retail | 112,500 | | 154,316 |
| | SLC Agricola SA | Food Products | 17,000 | | 56,815 |
| | Smartfit Escola de Ginastica e Danca SA | Hotels, Restaurants & Leisure | 10,000 | | 39,370 |
| | Suzano SA | Paper & Forest Products | 57,500 | | 574,810 |
| franklintempleton.com | Semi-Annual Report | 130 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE Latin America ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | Brazil (continued) | | | | |
| | Telefonica Brasil SA | Diversified Telecommunication Services | 36,500 | | $ 374,129 |
| | TIM SA | Wireless Telecommunication Services | 67,500 | | 232,156 |
| | TOTVS SA | Software | 37,500 | | 196,665 |
| | Transmissora Alianca de Energia Eletrica SA | Electric Utilities | 17,500 | | 110,030 |
| | Ultrapar Participacoes SA | Oil, Gas & Consumable Fuels | 70,000 | | 272,632 |
| | Usinas Siderurgicas de Minas Gerais SA Usiminas | Metals & Mining | 15,000 | | 16,554 |
| | Vale SA | Metals & Mining | 326,290 | | 3,805,259 |
| | Vamos Locacao de Caminhoes Maquinas e Equipamentos SA | Ground Transportation | 32,500 | | 39,448 |
| | Vibra Energia SA | Specialty Retail | 92,500 | | 397,462 |
| | WEG SA | Electrical Equipment | 124,900 | | 1,247,440 |
| | | | | | 22,685,027 |
| | Chile 5.7% | | | | |
| | Aguas Andinas SA, Class A | Water Utilities | 231,675 | | 71,729 |
| | Banco de Chile | Banks | 3,674,525 | | 469,393 |
| | Banco de Credito e Inversiones SA | Banks | 7,950 | | 247,823 |
| | Banco Itau Chile SA | Banks | 6,250 | | 72,725 |
| | Banco Santander Chile | Banks | 5,221,225 | | 271,848 |
| | Cencosud SA | Consumer Staples Distribution & Retail | 111,575 | | 225,536 |
| | Cencosud Shopping SA | Real Estate Management & Development | 40,625 | | 70,604 |
| | Cia Cervecerias Unidas SA | Beverages | 11,125 | | 65,667 |
| | Cia Sud Americana de Vapores SA | Marine Transportation | 1,466,575 | | 89,834 |
| | Colbun SA | Independent Power Producers & Energy Traders | 610,475 | | 82,811 |
| | Empresas CMPC SA | Paper & Forest Products | 100,575 | | 175,186 |
| | Empresas Copec SA | Specialty Retail | 41,125 | | 275,724 |
| | Enel Americas SA | Electric Utilities | 1,602,425 | | 163,812 |
| | Enel Chile SA | Electric Utilities | 2,095,550 | | 115,525 |
| a | Falabella SA | Broadline Retail | 66,750 | | 247,553 |
| | Latam Airlines Group SA | Passenger Airlines | 16,975,425 | | 218,739 |
| | Plaza SA | Real Estate Management & Development | 27,975 | | 48,042 |
| | Quinenco SA | Industrial Conglomerates | 22,200 | | 77,362 |
| | | | | | 2,989,913 |
| | Colombia 0.8% | | | | |
| | Cementos Argos SA | Construction Materials | 43,125 | | 77,488 |
| | Ecopetrol SA | Oil, Gas & Consumable Fuels | 399,400 | | 179,891 |
| | Interconexion Electrica SA ESP | Electric Utilities | 37,175 | | 152,119 |
| | | | | | 409,498 |
| | Mexico 28.2% | | | | |
| | Alfa SAB de CV, Class A | Industrial Conglomerates | 304,100 | | 249,926 |
| | Alpek SAB de CV | Chemicals | 31,275 | | 20,103 |
| | Alsea SAB de CV | Hotels, Restaurants & Leisure | 43,250 | | 119,455 |
| | America Movil SAB de CV | Wireless Telecommunication Services | 1,892,300 | | 1,559,058 |
| | Arca Continental SAB de CV | Beverages | 36,150 | | 339,517 |
| b | Banco del Bajio SA | Banks | 59,500 | | 139,689 |
| | Becle SAB de CV | Beverages | 45,450 | | 71,947 |
| | Cemex SAB de CV | Construction Materials | 1,274,175 | | 783,928 |
| | Coca-Cola Femsa SAB de CV | Beverages | 44,275 | | 393,691 |
| | Concentradora Fibra Danhos SA de CV | Diversified REITs | 20,475 | | 21,998 |
| | Corp. Inmobiliaria Vesta SAB de CV | Real Estate Management & Development | 71,800 | | 194,683 |
| | El Puerto de Liverpool SAB de CV, Class C1 | Broadline Retail | 16,575 | | 99,558 |
| | Fibra Uno Administracion SA de CV | Diversified REITs | 241,775 | | 282,700 |
| | Fomento Economico Mexicano SAB de CV | Beverages | 153,575 | | 1,522,744 |
| | Gentera SAB de CV | Consumer Finance | 83,800 | | 94,052 |
| | Gruma SAB de CV, Class B | Food Products | 15,075 | | 281,189 |
| 131 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE Latin America ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | Mexico (continued) | | | | |
| | Grupo Aeroportuario del Centro Norte SAB de CV | Transportation Infrastructure | 22,875 | | $ 194,149 |
| | Grupo Aeroportuario del Pacifico SAB de CV, Class B | Transportation Infrastructure | 33,050 | | 576,461 |
| | Grupo Aeroportuario del Sureste SAB de CV, Class B | Transportation Infrastructure | 16,825 | | 478,408 |
| | Grupo Bimbo SAB de CV | Food Products | 182,500 | | 630,864 |
| | Grupo Carso SAB de CV | Industrial Conglomerates | 37,925 | | 235,846 |
| | Grupo Comercial Chedraui SA de CV | Consumer Staples Distribution & Retail | 21,325 | | 160,966 |
| c | Grupo Elektra SAB de CV | Banks | 5,025 | | 193,791 |
| | Grupo Financiero Banorte SAB de CV, Class O | Banks | 242,775 | | 1,727,738 |
| a | Grupo Financiero Inbursa SAB de CV, Class O | Banks | 166,125 | | 377,981 |
| | Grupo Mexico SAB de CV, Class B | Metals & Mining | 265,800 | | 1,488,464 |
| | Grupo Televisa SAB | Media | 203,225 | | 103,365 |
| a | Industrias Penoles SAB de CV | Metals & Mining | 10,425 | | 138,989 |
| | Kimberly-Clark de Mexico SAB de CV, Class A | Household Products | 70,150 | | 113,946 |
| | Megacable Holdings SAB de CV | Media | 25,025 | | 52,113 |
| | Operadora De Sites Mexicanos SAB de CV | Diversified Telecommunication Services | 105,200 | | 83,024 |
| | Orbia Advance Corp. SAB de CV | Chemicals | 79,775 | | 81,029 |
| | Prologis Property Mexico SA de CV | Industrial REITs | 66,500 | | 218,512 |
| | Promotora y Operadora de Infraestructura SAB de CV | Transportation Infrastructure | 18,350 | | 173,483 |
| | Qualitas Controladora SAB de CV | Insurance | 13,950 | | 109,575 |
| | Regional SAB de CV | Banks | 19,875 | | 115,902 |
| | Wal-Mart de Mexico SAB de CV, Class V | Consumer Staples Distribution & Retail | 433,600 | | 1,308,852 |
| | | | | | 14,737,696 |
| | United States 1.3% | | | | |
| | GCC SAB de CV | Construction Materials | 13,700 | | 102,998 |
| | JBS SA | Food Products | 95,000 | | 551,774 |
| | | | | | 654,772 |
| | Total Common Stocks (Cost $37,143,650) | | | | 41,476,906 |
| | Preferred Stocks 19.6% | | | | |
| | Brazil 17.9% | | | | |
| a | Alpargatas SA, pfd. | Textiles, Apparel & Luxury Goods | 20,000 | | 25,524 |
| d | Banco Bradesco SA, 7.585%, pfd. | Banks | 435,000 | | 1,174,208 |
| d | Bradespar SA, 13.808%, pfd. | Metals & Mining | 22,500 | | 83,541 |
| a | Braskem SA, Class A, pfd. | Chemicals | 15,000 | | 54,896 |
| d | Centrais Eletricas Brasileiras SA, 4.171%, pfd. | Electric Utilities | 22,500 | | 180,593 |
| d | Cia Energetica de Minas Gerais, 12.798%, pfd. | Electric Utilities | 137,500 | | 287,837 |
| d | Cia Paranaense de Energia - Copel, Class B, 3.238%, pfd. | Electric Utilities | 90,000 | | 168,405 |
| d | CTEEP-Cia de Transmissao de Energia Eletrica Paulista, 7.708%, pfd. | Electric Utilities | 22,500 | | 100,398 |
| d | Gerdau SA, 4.581%, pfd. | Metals & Mining | 110,000 | | 385,802 |
| d | Itau Unibanco Holding SA, 5.998%, pfd. | Banks | 407,500 | | 2,702,050 |
| d | Itausa SA, 6.061%, pfd. | Banks | 457,500 | | 929,987 |
| d | Metalurgica Gerdau SA, 11.447%, pfd. | Metals & Mining | 55,000 | | 110,287 |
| d | Petroleo Brasileiro SA, 12.966%, pfd. | Oil, Gas & Consumable Fuels | 460,000 | | 3,041,720 |
| d | Unipar Carbocloro SA, 5.938%, pfd. | Chemicals | 4,494 | | 38,480 |
| d | Usinas Siderurgicas de Minas Gerais SA Usiminas, 4.535%, pfd. | Metals & Mining | 40,000 | | 45,834 |
| | | | | | 9,329,562 |
| franklintempleton.com | Semi-Annual Report | 132 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE Latin America ETF (continued)
| | | Industry | Shares | | Value |
| | Preferred Stocks (continued) | | | | |
| | Chile 1.1% | | | | |
| d | Embotelladora Andina SA, Class B, 5.627%, pfd. | Beverages | 31,650 | | $ 106,804 |
| d | Sociedad Quimica y Minera de Chile SA, Class B, Class B, 0.002%, pfd. | Chemicals | 11,450 | | 475,713 |
| | | | | | 582,517 |
| | Colombia 0.6% | | | | |
| d | Bancolombia SA, 10.657%, pfd. | Banks | 37,675 | | 299,484 |
| | Total Preferred Stocks (Cost $8,682,831) | | | | 10,211,563 |
| | Right 0.0%† | | | | |
| | Brazil 0.0%† | | | | |
| a | Diagnosticos da America SA | Health Care Providers & Services | 18,066 | | 67 |
| | Total Rights (Cost $0) | | | | 67 |
| | Total Investments before Short-Term Investments (Cost $45,826,481) | | | | 51,688,536 |
| | Short-Term Investments 0.0%† | | | | |
| | Money Market Funds 0.0%† | | | | |
| | United States 0.0%† | | | | |
| e,f | Institutional Fiduciary Trust - Money Market Portfolio, 4.74% | Money Market Funds | 1,565 | | 1,565 |
| | Total Short-Term Investments (Cost $1,565) | | | | 1,565 |
| | Total Investments (Cost $45,828,046) 99.1% | | | | 51,690,101 |
| | Other Assets, less Liabilities 0.9% | | | | 490,458 |
| | Net Assets 100.0% | | | | $ 52,180,559 |
| †Rounds to less than 0.1% of net assets. |
| aNon-income producing. |
| bSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At September 30, 2024, the value of was $922,466, representing 1.8% of net assets. |
| cFair valued using significant unobservable inputs. See Note 8 regarding fair value measurements. |
| dVariable rate security. The rate shown represents the yield at period end. |
| eThe rate shown is the annualized seven-day effective yield at period end. |
| fSee Note 3(c) regarding investments in affiliated management investment companies. |
| 133 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Franklin FTSE Latin America ETF (continued)
At September 30, 2024, the Fund had the following futures contracts outstanding. See Note 1(c).
Futures Contracts
| Description | Type | Number of
Contracts | Notional
Amount* | Expiration
Date | Value/Unrealized
Appreciation
(Depreciation) |
| Equity Contracts | | | | | |
| Bovespa Index | Long | 15 | $ 365,183 | 10/16/24 | $ (7,841) |
| Index Contracts | | | | | |
| Mex Bolsa Index | Long | 6 | 163,119 | 12/20/24 | 199 |
| Total Futures Contracts | | | | | $(7,642) |
See Note 7 regarding other derivative information.
See Abbreviations on page 207.
| franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Semi-Annual Report | 134 |
Franklin Templeton ETF Trust
Financial Highlights
Franklin FTSE Mexico ETF
| | Six Months Ended
September 30, 2024
(unaudited) | Year Ended March 31, |
| | 2024 | 2023 | 2022 | 2021 | 2020 |
| Per share operating performance | | | | | | |
| (for a share outstanding throughout the period) | | | | | | |
| Net asset value, beginning of period | $33.73 | $29.28 | $27.49 | $22.14 | $14.35 | $22.11 |
| Income from investment operationsa: | | | | | | |
| Net investment incomeb | 0.56 | 0.85 | 0.91 | 0.66 | 0.33 | 0.64 |
| Net realized and unrealized gains (losses) | (7.36) | 4.56 | 1.91 | 5.48 | 7.78 | (7.73) |
| Total from investment operations | (6.80) | 5.41 | 2.82 | 6.14 | 8.11 | (7.09) |
| Less distributions from net investment income | (0.19) | (0.96) | (1.03) | (0.79) | (0.32) | (0.67) |
| Net asset value, end of period | $26.74 | $33.73 | $29.28 | $27.49 | $22.14 | $14.35 |
| Total returnc | (20.20)% | 18.66% | 11.15% | 28.33% | 56.94% | (33.13)% |
| Ratios to average net assetsd | | | | | | |
| Total expenses | 0.19% | 0.19% | 0.19% | 0.19% | 0.19% | 0.19% |
| Net investment income | 3.89% | 2.76% | 3.55% | 2.73% | 1.80% | 2.93% |
| Supplemental data | | | | | | |
| Net assets, end of period (000’s) | $94,930 | $45,531 | $24,890 | $12,372 | $5,536 | $2,871 |
| Portfolio turnover ratee | 4.23%f | 9.92%f | 11.16%f | 22.39%f | 18.32%f | 19.32%f |
| aThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of Creation Unit Fund shares in relation to income earned and/or fluctuating fair value of the investments of the Fund. |
| bBased on average daily shares outstanding. |
| cTotal return is not annualized for periods less than one year. Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. |
| dRatios are annualized for periods less than one year. |
| ePortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash ("Cash creations"). |
| fPortfolio turnover rate excluding cash creations was as follows: | 3.95% | 9.79% | 11.16% | 22.39% | 18.32% | 19.32% |
| 135 | Semi-Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments, September 30, 2024 (unaudited)
Franklin FTSE Mexico ETF
| | | Industry | Shares | | Value |
| | Common Stocks 99.8% | | | | |
| | Mexico 99.0% | | | | |
| | Alfa SAB de CV, Class A | Industrial Conglomerates | 2,239,695 | | $ 1,840,704 |
| a | Alpek SAB de CV | Chemicals | 232,170 | | 149,237 |
| | Alsea SAB de CV | Hotels, Restaurants & Leisure | 319,074 | | 881,271 |
| | America Movil SAB de CV | Wireless Telecommunication Services | 11,186,689 | | 9,216,663 |
| | Arca Continental SAB de CV | Beverages | 266,605 | | 2,503,927 |
| b | Banco del Bajio SA | Banks | 438,922 | | 1,030,466 |
| | Becle SAB de CV | Beverages | 333,842 | | 528,472 |
| | Cemex SAB de CV | Construction Materials | 7,175,402 | | 4,414,618 |
| | Coca-Cola Femsa SAB de CV | Beverages | 315,595 | | 2,806,255 |
| | Concentradora Fibra Danhos SA de CV | Diversified REITs | 151,301 | | 162,555 |
| | Corp. Inmobiliaria Vesta SAB de CV | Real Estate Management & Development | 529,589 | | 1,435,958 |
| | El Puerto de Liverpool SAB de CV, Class C1 | Broadline Retail | 122,333 | | 734,797 |
| | Fibra Uno Administracion SA de CV | Diversified REITs | 1,765,131 | | 2,063,912 |
| | Fomento Economico Mexicano SAB de CV | Beverages | 907,096 | | 8,994,142 |
| | Gentera SAB de CV | Consumer Finance | 618,126 | | 693,744 |
| | Gruma SAB de CV, Class B | Food Products | 110,760 | | 2,065,972 |
| | Grupo Aeroportuario del Centro Norte SAB de CV | Transportation Infrastructure | 168,696 | | 1,431,790 |
| | Grupo Aeroportuario del Pacifico SAB de CV, Class B | Transportation Infrastructure | 202,634 | | 3,534,362 |
| | Grupo Aeroportuario del Sureste SAB de CV, Class B | Transportation Infrastructure | 110,405 | | 3,139,294 |
| | Grupo Bimbo SAB de CV | Food Products | 1,075,863 | | 3,719,033 |
| | Grupo Carso SAB de CV | Industrial Conglomerates | 279,811 | | 1,740,076 |
| | Grupo Comercial Chedraui SA de CV | Consumer Staples Distribution & Retail | 157,407 | | 1,188,141 |
| c | Grupo Elektra SAB de CV | Banks | 37,977 | | 1,464,600 |
| | Grupo Financiero Banorte SAB de CV, Class O | Banks | 1,426,745 | | 10,153,603 |
| d | Grupo Financiero Inbursa SAB de CV, Class O | Banks | 1,179,878 | | 2,684,551 |
| | Grupo Mexico SAB de CV, Class B | Metals & Mining | 1,582,164 | | 8,860,022 |
| | Grupo Televisa SAB | Media | 1,487,237 | | 756,441 |
| d | Industrias Penoles SAB de CV | Metals & Mining | 76,822 | | 1,024,215 |
| | Kimberly-Clark de Mexico SAB de CV, Class A | Household Products | 515,176 | | 836,813 |
| | Megacable Holdings SAB de CV | Media | 185,523 | | 386,341 |
| | Operadora De Sites Mexicanos SAB de CV | Diversified Telecommunication Services | 776,101 | | 612,503 |
| | Orbia Advance Corp. SAB de CV | Chemicals | 589,016 | | 598,271 |
| | Prologis Property Mexico SA de CV | Industrial REITs | 490,610 | | 1,612,090 |
| | Promotora y Operadora de Infraestructura SAB de CV | Transportation Infrastructure | 135,468 | | 1,280,733 |
| | Qualitas Controladora SAB de CV | Insurance | 102,808 | | 807,537 |
| | Regional SAB de CV | Banks | 146,544 | | 854,578 |
| | Wal-Mart de Mexico SAB de CV, Class V | Consumer Staples Distribution & Retail | 2,589,299 | | 7,815,979 |
| | | | | | 94,023,666 |
| | United States 0.8% | | | | |
| | GCC SAB de CV | Construction Materials | 101,104 | | 760,111 |
| | Total Common Stocks (Cost $104,999,078) | | | | 94,783,777 |
| | Total Investments before Short-Term Investments (Cost $104,999,078) | | | | 94,783,777 |
| | Short-Term Investments 0.1% | | | | |
| | Investments from Cash Collateral Received for
Loaned Securities 0.1% | | | | |
| | United States 0.1% | | | | |
| e,f | Institutional Fiduciary Trust - Money Market Portfolio, 4.74% | Money Market Funds | 70,000 | | 70,000 |
| franklintempleton.com | Semi-Annual Report | 136 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE Mexico ETF (continued)
| | | Industry | Shares | | Value |
| | Short-Term Investments (continued) | | | | |
| | Money Market Funds 0.0%† | | | | |
| | United States 0.0%† | | | | |
| e,f | Institutional Fiduciary Trust - Money Market Portfolio, 4.74% | Money Market Funds | 5,561 | | $ 5,561 |
| | Total Short-Term Investments (Cost $75,561) | | | | 75,561 |
| | Total Investments (Cost $105,074,639) 99.9% | | | | 94,859,338 |
| | Other Assets, less Liabilities 0.1% | | | | 70,213 |
| | Net Assets 100.0% | | | | $ 94,929,551 |
| †Rounds to less than 0.1% of net assets. |
| aA portion or all of the security is on loan at September 30, 2024. See Note 1(d). |
| bSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At September 30, 2024, the value of was $1,030,466, representing 1.1% of net assets. |
| cFair valued using significant unobservable inputs. See Note 8 regarding fair value measurements. |
| dNon-income producing. |
| eThe rate shown is the annualized seven-day effective yield at period end. |
| fSee Note 3(c) regarding investments in affiliated management investment companies. |
At September 30, 2024, the Fund had the following futures contracts outstanding. See Note 1(c).
Futures Contracts
| Description | Type | Number of
Contracts | Notional
Amount* | Expiration
Date | Value/Unrealized
Appreciation
(Depreciation) |
| Index Contracts | | | | | |
| Mex Bolsa Index | Long | 4 | $ 108,746 | 12/20/24 | $ (25) |
See Note 7 regarding other derivative information.
See Abbreviations on page 207.
| 137 | Semi-Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
Franklin Templeton ETF Trust
Financial Highlights
Franklin FTSE Saudi Arabia ETF
| | Six Months Ended
September 30, 2024
(unaudited) | Year Ended March 31, |
| | 2024 | 2023 | 2022 | 2021 | 2020 |
| Per share operating performance | | | | | | |
| (for a share outstanding throughout the period) | | | | | | |
| Net asset value, beginning of period | $37.57 | $33.65 | $41.30 | $30.33 | $20.15 | $27.89 |
| Income from investment operationsa: | | | | | | |
| Net investment incomeb | 0.72 | 0.99 | 1.38 | 0.62 | 0.52 | 0.89 |
| Net realized and unrealized gains (losses) | (1.05) | 4.05 | (8.40) | 11.03 | 10.23 | (7.80) |
| Total from investment operations | (0.33) | 5.04 | (7.02) | 11.65 | 10.75 | (6.91) |
| Less distributions from net investment income | (0.54) | (1.12) | (0.63) | (0.68) | (0.57) | (0.83) |
| Net asset value, end of period | $36.70 | $37.57 | $33.65 | $41.30 | $30.33 | $20.15 |
| Total returnc | (2.02)% | 15.21% | (17.04)% | 38.99% | 54.12% | (25.51)% |
| Ratios to average net assetsd | | | | | | |
| Total expenses | 0.39% | 0.39% | 0.39% | 0.39% | 0.39% | 0.39% |
| Net investment income | 4.02% | 2.79% | 3.97% | 1.77% | 2.11% | 3.46% |
| Supplemental data | | | | | | |
| Net assets, end of period (000’s) | $18,350 | $18,786 | $21,874 | $4,130 | $3,033 | $2,015 |
| Portfolio turnover ratee | 8.88%f | 14.55%f | 5.44%f | 15.51%f | 16.74%f | 32.37%f |
| aThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of Creation Unit Fund shares in relation to income earned and/or fluctuating fair value of the investments of the Fund. |
| bBased on average daily shares outstanding. |
| cTotal return is not annualized for periods less than one year. Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. |
| dRatios are annualized for periods less than one year. |
| ePortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash ("Cash creations"). |
| fPortfolio turnover rate excluding cash creations was as follows: | 8.88% | 14.32% | 5.44% | 15.51% | 16.74% | 32.37% |
| franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Semi-Annual Report | 138 |
Franklin Templeton ETF Trust
Schedule of Investments, September 30, 2024 (unaudited)
Franklin FTSE Saudi Arabia ETF
| | | Industry | Shares | | Value |
| | Common Stocks 99.9% | | | | |
| | Saudi Arabia 99.9% | | | | |
| | Abdullah Al Othaim Markets Co. | Consumer Staples Distribution & Retail | 24,190 | | $ 76,863 |
| | ACWA Power Co. | Independent Power Producers & Energy Traders | 11,170 | | 1,472,699 |
| | Ades Holding Co. | Energy Equipment & Services | 23,650 | | 126,843 |
| a | Advanced Petrochemical Co. | Chemicals | 6,890 | | 71,262 |
| | Al Rajhi Bank | Banks | 98,810 | | 2,296,804 |
| a | Al Rajhi Co. for Co-operative Insurance | Insurance | 2,660 | | 135,999 |
| | Aldrees Petroleum & Transport Services Co. | Specialty Retail | 2,660 | | 94,732 |
| | Alinma Bank | Banks | 66,620 | | 506,123 |
| | Almarai Co. JSC | Food Products | 13,240 | | 194,820 |
| | Arab National Bank | Banks | 48,270 | | 245,764 |
| b | Arabian Centres Co. | Real Estate Management & Development | 9,860 | | 57,403 |
| a | Arabian Contracting Services Co. | Media | 810 | | 43,227 |
| | Arabian Drilling Co. | Energy Equipment & Services | 1,460 | | 44,757 |
| | Arabian Internet & Communications Services Co. | IT Services | 1,360 | | 102,234 |
| | Astra Industrial Group | Industrial Conglomerates | 1,860 | | 83,297 |
| | Bank AlBilad | Banks | 33,430 | | 351,107 |
| a | Bank Al-Jazira | Banks | 27,310 | | 124,924 |
| | Banque Saudi Fransi | Banks | 31,890 | | 273,727 |
| | BinDawood Holding Co. | Consumer Staples Distribution & Retail | 15,920 | | 33,101 |
| | Bupa Arabia for Cooperative Insurance Co. | Insurance | 4,030 | | 222,588 |
| | Catrion Catering Holding Co. | Commercial Services & Supplies | 2,190 | | 64,800 |
| | Co. for Cooperative Insurance | Insurance | 4,000 | | 157,381 |
| | Dallah Healthcare Co. | Health Care Providers & Services | 2,030 | | 87,122 |
| a | Dar Al Arkan Real Estate Development Co. | Real Estate Management & Development | 28,780 | | 119,680 |
| | Dr. Sulaiman Al Habib Medical Services Group Co. | Health Care Providers & Services | 4,600 | | 363,694 |
| | Elm Co. | IT Services | 1,390 | | 431,073 |
| a | Emaar Economic City | Real Estate Management & Development | 19,880 | | 46,475 |
| | Etihad Etisalat Co. | Wireless Telecommunication Services | 20,520 | | 281,156 |
| | Jamjoom Pharmaceuticals Factory Co. | Pharmaceuticals | 1,490 | | 75,704 |
| | Jarir Marketing Co. | Specialty Retail | 31,980 | | 112,016 |
| | Leejam Sports Co. JSC | Hotels, Restaurants & Leisure | 1,370 | | 75,523 |
| | Mobile Telecommunications Co. Saudi Arabia | Wireless Telecommunication Services | 23,950 | | 69,972 |
| | Mouwasat Medical Services Co. | Health Care Providers & Services | 5,170 | | 137,677 |
| | Nahdi Medical Co. | Consumer Staples Distribution & Retail | 2,830 | | 99,277 |
| a | National Industrialization Co., Class C | Chemicals | 17,850 | | 53,768 |
| | Power & Water Utility Co. for Jubail & Yanbu | Multi-Utilities | 4,080 | | 65,473 |
| | Qassim Cement Co. | Construction Materials | 2,940 | | 41,615 |
| a | Rabigh Refining & Petrochemical Co. | Oil, Gas & Consumable Fuels | 22,730 | | 49,745 |
| | Riyad Bank | Banks | 79,810 | | 530,166 |
| | Riyadh Cables Group Co. | Electrical Equipment | 3,290 | | 86,911 |
| | SABIC Agri-Nutrients Co. | Chemicals | 12,690 | | 401,869 |
| | Sahara International Petrochemical Co. | Chemicals | 19,320 | | 151,155 |
| | SAL Saudi Logistics Services | Air Freight & Logistics | 1,310 | | 102,247 |
| a | Saudi Arabian Mining Co. | Metals & Mining | 76,000 | | 988,644 |
| b | Saudi Arabian Oil Co. | Oil, Gas & Consumable Fuels | 228,710 | | 1,652,194 |
| | Saudi Aramco Base Oil Co. | Chemicals | 2,740 | | 96,850 |
| | Saudi Awwal Bank | Banks | 51,550 | | 476,144 |
| | Saudi Basic Industries Corp. | Chemicals | 47,320 | | 944,785 |
| | Saudi Cement Co. | Construction Materials | 4,080 | | 45,135 |
| | Saudi Electricity Co. | Electric Utilities | 42,510 | | 188,787 |
| | Saudi Ground Services Co. | Transportation Infrastructure | 4,860 | | 66,978 |
| | Saudi Industrial Investment Group | Chemicals | 20,110 | | 104,962 |
| | Saudi Investment Bank | Banks | 33,310 | | 115,787 |
| a | Saudi Kayan Petrochemical Co. | Chemicals | 39,970 | | 89,499 |
| | Saudi National Bank | Banks | 149,590 | | 1,367,739 |
| a | Saudi Research & Media Group | Media | 2,130 | | 163,182 |
| | Saudi Tadawul Group Holding Co. | Capital Markets | 2,610 | | 157,794 |
| 139 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE Saudi Arabia ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | Saudi Arabia (continued) | | | | |
| | Saudi Telecom Co. | Diversified Telecommunication Services | 93,480 | | $ 1,088,947 |
| | Saudia Dairy & Foodstuff Co. | Food Products | 830 | | 83,456 |
| a | Savola Group | Food Products | 30,216 | | 217,474 |
| a | Seera Group Holding | Hotels, Restaurants & Leisure | 7,910 | | 50,605 |
| | United Electronics Co. | Specialty Retail | 2,130 | | 53,826 |
| | Yamama Cement Co. | Construction Materials | 5,400 | | 45,343 |
| | Yanbu National Petrochemical Co. | Chemicals | 14,990 | | 170,623 |
| | Total Common Stocks (Cost $15,886,026) | | | | 18,331,527 |
| | Total Investments (Cost $15,886,026) 99.9% | | | | 18,331,527 |
| | Other Assets, less Liabilities 0.1% | | | | 18,489 |
| | Net Assets 100.0% | | | | $ 18,350,016 |
| aNon-income producing. |
| bSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At September 30, 2024, the value of was $1,709,597, representing 9.3% of net assets. |
| franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Semi-Annual Report | 140 |
Franklin Templeton ETF Trust
Financial Highlights
Franklin FTSE South Korea ETF
| | Six Months Ended
September 30, 2024
(unaudited) | Year Ended March 31, |
| | 2024 | 2023 | 2022 | 2021 | 2020 |
| Per share operating performance | | | | | | |
| (for a share outstanding throughout the period) | | | | | | |
| Net asset value, beginning of period | $23.36 | $21.08 | $25.57 | $31.48 | $16.52 | $21.19 |
| Income from investment operationsa: | | | | | | |
| Net investment incomeb | 0.09 | 0.35 | 0.49 | 0.55 | 0.54 | 0.36 |
| Net realized and unrealized gains (losses) | (0.75) | 2.45 | (4.37) | (5.87) | 14.72 | (4.58) |
| Total from investment operations | (0.66) | 2.80 | (3.88) | (5.32) | 15.26 | (4.22) |
| Less distributions from net investment income | (1.18) | (0.52) | (0.61) | (0.59) | (0.30) | (0.45) |
| Net asset value, end of period | $21.52 | $23.36 | $21.08 | $25.57 | $31.48 | $16.52 |
| Total returnc | (2.92)% | 13.42% | (15.00)% | (17.15)% | 92.55% | (20.24)% |
| Ratios to average net assetsd | | | | | | |
| Expenses before waiver and payments by affiliates | 0.09% | 0.09% | 0.09% | 0.09% | 0.09% | 0.09% |
| Expenses net of waiver and payments by affiliates | 0.09% | 0.09% | 0.09% | 0.09% | 0.09% | 0.09% |
| Net investment income | 0.78% | 1.62% | 2.36% | 1.86% | 2.07% | 1.78% |
| Supplemental data | | | | | | |
| Net assets, end of period (000’s) | $120,538 | $301,337 | $293,049 | $61,361 | $62,966 | $11,562 |
| Portfolio turnover ratee | 7.47%f | 31.27%f | 5.97%f | 27.38%f | 8.65%f | 21.72%f |
| aThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of Creation Unit Fund shares in relation to income earned and/or fluctuating fair value of the investments of the Fund. |
| bBased on average daily shares outstanding. |
| cTotal return is not annualized for periods less than one year. Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. |
| dRatios are annualized for periods less than one year. |
| ePortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash ("Cash creations"). |
| fPortfolio turnover rate excluding cash creations was as follows: | 4.08% | 9.22% | 5.97% | 10.53% | 8.65% | 8.02% |
| 141 | Semi-Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments, September 30, 2024 (unaudited)
Franklin FTSE South Korea ETF
| | | Industry | Shares | | Value |
| | Common Stocks 95.9% | | | | |
| | South Korea 95.9% | | | | |
| a | Alteogen, Inc., Class A | Biotechnology | 6,384 | | $ 1,596,366 |
| | Amorepacific Corp., Class H | Personal Care Products | 4,424 | | 499,675 |
| | AMOREPACIFIC Group, Class A | Personal Care Products | 3,808 | | 81,099 |
| | BGF retail Co. Ltd. | Consumer Staples Distribution & Retail | 1,232 | | 108,060 |
| | BNK Financial Group, Inc., Class H | Banks | 41,440 | | 286,471 |
| a | Celltrion Pharm, Inc., Class A | Pharmaceuticals | 2,856 | | 150,040 |
| | Celltrion, Inc., Class A | Biotechnology | 21,840 | | 3,263,391 |
| | Cheil Worldwide, Inc., Class A | Media | 10,584 | | 148,841 |
| | CJ CheilJedang Corp., Class A | Food Products | 1,176 | | 273,384 |
| | CJ Corp., Class A | Industrial Conglomerates | 1,960 | | 178,209 |
| a | CJ ENM Co. Ltd., Class A | Entertainment | 1,568 | | 84,053 |
| | CJ Logistics Corp., Class A | Air Freight & Logistics | 1,232 | | 87,711 |
| a | CosmoAM&T Co. Ltd. | Technology Hardware, Storage & Peripherals | 3,360 | | 322,202 |
| | Coway Co. Ltd. | Household Durables | 8,512 | | 434,159 |
| a | Daewoo Engineering & Construction Co. Ltd., Class A | Construction & Engineering | 30,128 | | 88,239 |
| | DB Insurance Co. Ltd., Class A | Insurance | 6,720 | | 577,086 |
| | DGB Financial Group, Inc., Class A | Banks | 23,128 | | 143,080 |
| | DL Holdings Co. Ltd., Class A | Chemicals | 1,680 | | 56,462 |
| | Dongsuh Cos., Inc., Class A | Consumer Staples Distribution & Retail | 4,592 | | 67,210 |
| | Doosan Bobcat, Inc., Class A | Machinery | 7,448 | | 231,237 |
| a | Doosan Enerbility Co. Ltd., Class H | Electrical Equipment | 64,064 | | 877,408 |
| a | Ecopro BM Co. Ltd. | Electrical Equipment | 6,888 | | 971,810 |
| a | Ecopro Co. Ltd. | Electrical Equipment | 14,784 | | 1,001,654 |
| a | Ecopro Materials Co. Ltd. | Electrical Equipment | 5,096 | | 525,694 |
| | E-MART, Inc., Class A | Consumer Staples Distribution & Retail | 2,912 | | 131,827 |
| | F&F Co. Ltd. | Textiles, Apparel & Luxury Goods | 2,352 | | 123,203 |
| | Fila Holdings Corp. | Textiles, Apparel & Luxury Goods | 7,616 | | 246,063 |
| | Green Cross Corp. | Biotechnology | 784 | | 90,828 |
| a | GS Engineering & Construction Corp. | Construction & Engineering | 9,464 | | 132,729 |
| | GS Holdings Corp. | Industrial Conglomerates | 6,776 | | 220,478 |
| | GS Retail Co. Ltd. | Consumer Staples Distribution & Retail | 6,440 | | 105,142 |
| | Hana Financial Group, Inc. | Banks | 39,648 | | 1,782,750 |
| | Hanjin Kal Corp. | Hotels, Restaurants & Leisure | 4,760 | | 300,298 |
| | Hankook Tire & Technology Co. Ltd. | Automobile Components | 11,088 | | 351,455 |
| | Hanmi Pharm Co. Ltd. | Pharmaceuticals | 952 | | 234,051 |
| | Hanmi Science Co. Ltd. | Health Care Providers & Services | 3,640 | | 88,794 |
| | Hanmi Semiconductor Co. Ltd. | Semiconductors & Semiconductor Equipment | 6,664 | | 551,894 |
| | Hanon Systems | Automobile Components | 24,192 | | 78,716 |
| | Hanwha Aerospace Co. Ltd. | Aerospace & Defense | 4,890 | | 1,110,599 |
| | Hanwha Corp. | Industrial Conglomerates | 6,272 | | 138,610 |
| a | Hanwha Industrial Solutions Co. Ltd. | Aerospace & Defense | 5,417 | | 137,937 |
| | Hanwha Life Insurance Co. Ltd. | Insurance | 54,320 | | 119,216 |
| a | Hanwha Ocean Co. Ltd., Class A | Machinery | 13,608 | | 317,905 |
| | Hanwha Solutions Corp. | Chemicals | 15,736 | | 311,062 |
| | HD Hyundai Co. Ltd. | Oil, Gas & Consumable Fuels | 6,384 | | 373,462 |
| | HD Hyundai Electric Co. Ltd. | Electrical Equipment | 3,304 | | 832,506 |
| a | HD Hyundai Heavy Industries Co. Ltd. | Machinery | 3,248 | | 458,500 |
| | HD Hyundai Infracore Co. Ltd. | Machinery | 20,832 | | 119,477 |
| | HD Korea Shipbuilding & Offshore Engineering Co. Ltd. | Machinery | 6,496 | | 932,400 |
| | Hite Jinro Co. Ltd. | Beverages | 4,592 | | 71,459 |
| | HL Mando Co. Ltd. | Automobile Components | 4,984 | | 140,255 |
| a | HLB, Inc. | Health Care Equipment & Supplies | 17,864 | | 1,170,716 |
| | HMM Co. Ltd. | Marine Transportation | 44,016 | | 623,703 |
| | Hotel Shilla Co. Ltd. | Specialty Retail | 4,648 | | 169,897 |
| | HYBE Co. Ltd. | Entertainment | 3,136 | | 404,800 |
| franklintempleton.com | Semi-Annual Report | 142 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE South Korea ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | South Korea (continued) | | | | |
| | Hyundai Autoever Corp. | IT Services | 1,008 | | $ 120,479 |
| | Hyundai Engineering & Construction Co. Ltd. | Construction & Engineering | 10,976 | | 255,998 |
| | Hyundai Glovis Co. Ltd. | Air Freight & Logistics | 5,600 | | 522,872 |
| | Hyundai Marine & Fire Insurance Co. Ltd. | Insurance | 8,680 | | 219,041 |
| | Hyundai Mipo Dockyard Co. Ltd. | Machinery | 3,080 | | 234,821 |
| | Hyundai Mobis Co. Ltd. | Automobile Components | 10,192 | | 1,695,159 |
| | Hyundai Motor Co. | Automobiles | 20,608 | | 3,845,188 |
| | Hyundai Steel Co. | Metals & Mining | 12,656 | | 270,018 |
| | Hyundai Wia Corp. | Automobile Components | 2,352 | | 92,627 |
| | Industrial Bank of Korea | Banks | 41,104 | | 439,109 |
| | Kakao Corp. | Interactive Media & Services | 50,232 | | 1,388,611 |
| a | Kakao Games Corp. | Entertainment | 6,328 | | 84,683 |
| | KakaoBank Corp. | Banks | 32,536 | | 526,219 |
| a | Kakaopay Corp. | Financial Services | 4,200 | | 78,367 |
| | Kangwon Land, Inc. | Hotels, Restaurants & Leisure | 16,072 | | 208,566 |
| | KB Financial Group, Inc. | Banks | 50,792 | | 3,142,214 |
| | KCC Corp. | Chemicals | 616 | | 142,023 |
| | KEPCO Plant Service & Engineering Co. Ltd. | Commercial Services & Supplies | 3,192 | | 102,763 |
| | Kia Corp. | Automobiles | 37,520 | | 2,866,290 |
| | Korea Aerospace Industries Ltd. | Aerospace & Defense | 10,584 | | 421,676 |
| | Korea Electric Power Corp. | Electric Utilities | 38,640 | | 607,213 |
| a | Korea Gas Corp. | Gas Utilities | 3,920 | | 139,689 |
| | Korea Investment Holdings Co. Ltd. | Capital Markets | 5,712 | | 320,609 |
| | Korea Zinc Co. Ltd. | Metals & Mining | 1,624 | | 854,410 |
| | Korean Air Lines Co. Ltd. | Passenger Airlines | 27,944 | | 481,867 |
| a | Krafton, Inc. | Entertainment | 5,432 | | 1,422,696 |
| | KT&G Corp. | Tobacco | 15,064 | | 1,254,469 |
| a | Kum Yang Co. Ltd. | Chemicals | 5,152 | | 206,048 |
| | Kumho Petrochemical Co. Ltd. | Chemicals | 2,464 | | 297,519 |
| a | L&F Co. Ltd. | Electrical Equipment | 3,752 | | 325,650 |
| | LG Chem Ltd. | Chemicals | 7,112 | | 1,938,845 |
| | LG Corp. | Industrial Conglomerates | 13,272 | | 802,795 |
| a | LG Display Co. Ltd. | Electronic Equipment, Instruments & Components | 47,096 | | 393,997 |
| | LG Electronics, Inc. | Household Durables | 16,240 | | 1,295,276 |
| a | LG Energy Solution Ltd. | Electrical Equipment | 5,992 | | 1,899,277 |
| | LG H&H Co. Ltd. | Personal Care Products | 1,400 | | 405,751 |
| | LG Innotek Co. Ltd. | Electronic Equipment, Instruments & Components | 2,128 | | 354,748 |
| | LG Uplus Corp. | Diversified Telecommunication Services | 31,976 | | 239,875 |
| | Lotte Chemical Corp. | Chemicals | 2,744 | | 212,982 |
| | Lotte Chilsung Beverage Co. Ltd. | Beverages | 504 | | 50,103 |
| | Lotte Corp. | Industrial Conglomerates | 3,976 | | 74,947 |
| | Lotte Energy Materials Corp. | Electronic Equipment, Instruments & Components | 3,248 | | 102,330 |
| | Lotte Shopping Co. Ltd. | Broadline Retail | 1,736 | | 81,643 |
| | LS Corp. | Electrical Equipment | 2,632 | | 247,964 |
| | LS Electric Co. Ltd. | Electrical Equipment | 2,296 | | 286,715 |
| | Meritz Financial Group, Inc. | Financial Services | 13,888 | | 1,031,219 |
| | Mirae Asset Securities Co. Ltd. | Capital Markets | 40,320 | | 259,612 |
| | NAVER Corp. | Interactive Media & Services | 20,496 | | 2,655,060 |
| | NCSoft Corp. | Entertainment | 2,352 | | 343,528 |
| a,b | Netmarble Corp. | Entertainment | 3,248 | | 147,783 |
| | NH Investment & Securities Co. Ltd., Class C | Capital Markets | 20,440 | | 209,761 |
| | NongShim Co. Ltd. | Food Products | 448 | | 131,896 |
| | OCI Holdings Co. Ltd. | Chemicals | 2,296 | | 124,483 |
| | Orion Corp. | Food Products | 3,360 | | 250,516 |
| | Ottogi Corp. | Food Products | 224 | | 73,056 |
| | Pan Ocean Co. Ltd. | Marine Transportation | 36,624 | | 111,886 |
| | Paradise Co. Ltd. | Hotels, Restaurants & Leisure | 6,832 | | 63,059 |
| 143 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE South Korea ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | South Korea (continued) | | | | |
| a | Pearl Abyss Corp. | Entertainment | 5,040 | | $ 148,768 |
| | Posco DX Co. Ltd. | IT Services | 7,952 | | 185,468 |
| | POSCO Future M Co. Ltd. | Electrical Equipment | 4,312 | | 824,348 |
| | POSCO Holdings, Inc. | Metals & Mining | 11,256 | | 3,313,879 |
| | Posco International Corp. | Trading Companies & Distributors | 6,888 | | 300,761 |
| | S-1 Corp. | Commercial Services & Supplies | 2,856 | | 129,074 |
| a,b | Samsung Biologics Co. Ltd. | Life Sciences Tools & Services | 2,667 | | 1,992,551 |
| | Samsung C&T Corp. | Industrial Conglomerates | 12,544 | | 1,321,835 |
| | Samsung Card Co. Ltd. | Consumer Finance | 4,536 | | 142,736 |
| a | Samsung E&A Co. Ltd. | Construction & Engineering | 23,800 | | 400,398 |
| | Samsung Electro-Mechanics Co. Ltd. | Electronic Equipment, Instruments & Components | 8,400 | | 851,113 |
| | Samsung Electronics Co. Ltd. | Technology Hardware, Storage & Peripherals | 422,576 | | 19,873,384 |
| | Samsung Fire & Marine Insurance Co. Ltd. | Insurance | 4,928 | | 1,298,230 |
| a | Samsung Heavy Industries Co. Ltd. | Machinery | 98,224 | | 753,374 |
| | Samsung Life Insurance Co. Ltd. | Insurance | 11,200 | | 798,226 |
| | Samsung SDI Co. Ltd. | Electronic Equipment, Instruments & Components | 7,896 | | 2,285,414 |
| | Samsung SDS Co. Ltd. | IT Services | 5,488 | | 649,227 |
| | Samsung Securities Co. Ltd. | Capital Markets | 9,520 | | 317,042 |
| a | SD Biosensor, Inc. | Health Care Equipment & Supplies | 5,152 | | 36,167 |
| | Shinhan Financial Group Co. Ltd. | Banks | 73,080 | | 3,101,583 |
| | Shinsegae, Inc. | Broadline Retail | 1,008 | | 122,637 |
| a | SK Biopharmaceuticals Co. Ltd. | Pharmaceuticals | 4,256 | | 338,475 |
| a | SK Bioscience Co. Ltd. | Biotechnology | 3,584 | | 151,834 |
| | SK Hynix, Inc. | Semiconductors & Semiconductor Equipment | 81,480 | | 10,878,954 |
| a,b | SK IE Technology Co. Ltd. | Electrical Equipment | 3,808 | | 105,414 |
| a | SK Innovation Co. Ltd. | Oil, Gas & Consumable Fuels | 8,960 | | 802,337 |
| a | SK Square Co. Ltd. | Industrial Conglomerates | 13,944 | | 861,570 |
| | SK, Inc. | Industrial Conglomerates | 5,264 | | 616,689 |
| a | SKC Co. Ltd. | Chemicals | 2,800 | | 306,615 |
| | S-Oil Corp. | Oil, Gas & Consumable Fuels | 6,160 | | 288,286 |
| | Solus Advanced Materials Co. Ltd. | Electronic Equipment, Instruments & Components | 4,144 | | 39,612 |
| a | Wemade Co. Ltd. | Entertainment | 2,968 | | 77,168 |
| | Woori Financial Group, Inc. | Banks | 90,272 | | 1,069,982 |
| | Yuhan Corp. | Pharmaceuticals | 8,176 | | 891,563 |
| | Total Common Stocks (Cost $92,628,339) | | | | 115,554,988 |
| | Preferred Stocks 3.8% | | | | |
| | South Korea 3.8% | | | | |
| c | Amorepacific Corp., 2.282%, pfd. | Personal Care Products | 1,568 | | 48,082 |
| c | CJ CheilJedang Corp., 3.295%, pfd. | Food Products | 224 | | 23,656 |
| c | Hanwha Corp., 5.205%, pfd. | Industrial Conglomerates | 3,304 | | 38,833 |
| c | Hyundai Motor Co., 7.127%, pfd. | Automobiles | 5,264 | | 706,053 |
| c | Hyundai Motor Co., 7.328%, pfd. | Automobiles | 3,304 | | 429,265 |
| c | LG Chem Ltd., 1.464%, pfd. | Chemicals | 1,176 | | 218,078 |
| c | LG Electronics, Inc., 2.711%, pfd. | Household Durables | 2,576 | | 98,100 |
| c | LG H&H Co. Ltd., 2.217%, pfd. | Personal Care Products | 336 | | 41,136 |
| c | Samsung Electronics Co. Ltd., 2.13%, pfd. | Technology Hardware, Storage & Peripherals | 73,136 | | 2,846,694 |
| c | Samsung Fire & Marine Insurance Co. Ltd., 5.831%, pfd. | Insurance | 392 | | 82,285 |
| franklintempleton.com | Semi-Annual Report | 144 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE South Korea ETF (continued)
| | | Industry | Shares | | Value |
| | Preferred Stocks (continued) | | | | |
| | South Korea (continued) | | | | |
| c | Samsung SDI Co. Ltd., 0.467%, pfd. | Electronic Equipment, Instruments & Components | 224 | | $ 38,541 |
| | Total Preferred Stocks (Cost $4,002,052) | | | | 4,570,723 |
| | Total Investments before Short-Term Investments (Cost $96,630,391) | | | | 120,125,711 |
| | Short-Term Investments 0.0%† | | | | |
| | Money Market Funds 0.0%† | | | | |
| | United States 0.0%† | | | | |
| d,e | Institutional Fiduciary Trust - Money Market Portfolio, 4.74% | Money Market Funds | 52,762 | | 52,762 |
| | Total Short-Term Investments (Cost $52,762) | | | | 52,762 |
| | Total Investments (Cost $96,683,153) 99.7% | | | | 120,178,473 |
| | Other Assets, less Liabilities 0.3% | | | | 359,647 |
| | Net Assets 100.0% | | | | $ 120,538,120 |
| †Rounds to less than 0.1% of net assets. |
| aNon-income producing. |
| bSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At September 30, 2024, the value of was $2,245,748, representing 1.9% of net assets. |
| cVariable rate security. The rate shown represents the yield at period end. |
| dThe rate shown is the annualized seven-day effective yield at period end. |
| eSee Note 3(c) regarding investments in affiliated management investment companies. |
See Abbreviations on page 207.
| 145 | Semi-Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
Franklin Templeton ETF Trust
Financial Highlights
Franklin FTSE Switzerland ETF
| | Six Months Ended
September 30, 2024
(unaudited) | Year Ended March 31, |
| | 2024 | 2023 | 2022 | 2021 | 2020 |
| Per share operating performance | | | | | | |
| (for a share outstanding throughout the period) | | | | | | |
| Net asset value, beginning of period | $32.86 | $31.21 | $34.00 | $30.36 | $24.44 | $23.86 |
| Income from investment operationsa: | | | | | | |
| Net investment incomeb | 0.45 | 0.80 | 0.66 | 0.70 | 0.88 | 1.06 |
| Net realized and unrealized gains (losses) | 3.48 | 1.63 | (2.86) | 3.62 | 5.74 | (0.16) |
| Total from investment operations | 3.93 | 2.43 | (2.20) | 4.32 | 6.62 | 0.90 |
| Less distributions from net investment income | (0.64) | (0.78) | (0.59) | (0.68) | (0.70) | (0.32) |
| Net asset value, end of period | $36.15 | $32.86 | $31.21 | $34.00 | $30.36 | $24.44 |
| Total returnc | 12.11% | 7.86% | (6.23)% | 14.22% | 27.54% | 3.70% |
| Ratios to average net assetsd | | | | | | |
| Total expenses | 0.09% | 0.09% | 0.09% | 0.09% | 0.09% | 0.09% |
| Net investment income | 2.64% | 2.52% | 2.24% | 2.07% | 3.13% | 4.12% |
| Supplemental data | | | | | | |
| Net assets, end of period (000’s) | $57,840 | $46,010 | $49,941 | $47,593 | $48,570 | $34,213 |
| Portfolio turnover ratee | 3.49%f | 14.49%f | 7.89%f | 13.99%f | 12.59%f | 16.25%f |
| aThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of Creation Unit Fund shares in relation to income earned and/or fluctuating fair value of the investments of the Fund. |
| bBased on average daily shares outstanding. |
| cTotal return is not annualized for periods less than one year. Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. |
| dRatios are annualized for periods less than one year. |
| ePortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash ("Cash creations"). |
| fPortfolio turnover rate excluding cash creations was as follows: | 3.49% | 14.49% | 7.89% | 13.99% | 12.59% | 16.25% |
| franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Semi-Annual Report | 146 |
Franklin Templeton ETF Trust
Schedule of Investments, September 30, 2024 (unaudited)
Franklin FTSE Switzerland ETF
| | | Industry | Shares | | Value |
| | Common Stocks 98.0% | | | | |
| | Switzerland 95.0% | | | | |
| | ABB Ltd. | Electrical Equipment | 45,136 | | $ 2,621,318 |
| | Adecco Group AG | Professional Services | 5,488 | | 187,238 |
| | Alcon, Inc. | Health Care Equipment & Supplies | 16,016 | | 1,600,935 |
| | Avolta AG | Specialty Retail | 3,616 | | 153,462 |
| | Bachem Holding AG, Class B | Life Sciences Tools & Services | 1,072 | | 90,482 |
| | Baloise Holding AG | Insurance | 1,552 | | 317,373 |
| | Banque Cantonale Vaudoise | Banks | 976 | | 101,065 |
| | Barry Callebaut AG | Food Products | 122 | | 226,486 |
| | Belimo Holding AG | Building Products | 320 | | 228,937 |
| | BKW AG | Electric Utilities | 624 | | 113,475 |
| | Chocoladefabriken Lindt & Spruengli AG | Food Products | 67 | | 866,540 |
| | Cie Financiere Richemont SA, Class A | Textiles, Apparel & Luxury Goods | 15,552 | | 2,466,786 |
| | Clariant AG | Chemicals | 7,664 | | 116,293 |
| | DKSH Holding AG | Trading Companies & Distributors | 1,216 | | 96,871 |
| | Emmi AG | Food Products | 73 | | 74,856 |
| | EMS-Chemie Holding AG | Chemicals | 244 | | 205,370 |
| | Flughafen Zurich AG | Transportation Infrastructure | 640 | | 154,319 |
| a | Galderma Group AG | Pharmaceuticals | 1,984 | | 184,864 |
| | Geberit AG | Building Products | 1,142 | | 746,487 |
| | Georg Fischer AG | Machinery | 2,819 | | 213,376 |
| | Givaudan SA | Chemicals | 267 | | 1,468,650 |
| | Helvetia Holding AG | Insurance | 1,200 | | 207,694 |
| | Julius Baer Group Ltd. | Capital Markets | 6,992 | | 421,899 |
| | Kuehne & Nagel International AG | Marine Transportation | 1,744 | | 477,168 |
| | Logitech International SA | Technology Hardware, Storage & Peripherals | 5,328 | | 477,249 |
| | Lonza Group AG | Life Sciences Tools & Services | 2,308 | | 1,462,695 |
| | Nestle SA | Food Products | 83,216 | | 8,381,283 |
| | Novartis AG | Pharmaceuticals | 66,000 | | 7,601,091 |
| | Partners Group Holding AG | Capital Markets | 759 | | 1,142,706 |
| | PSP Swiss Property AG | Real Estate Management & Development | 1,552 | | 227,957 |
| | Roche Holding AG | Pharmaceuticals | 22,368 | | 7,175,367 |
| | Roche Holding AG | Pharmaceuticals | 1,200 | | 411,689 |
| | Sandoz Group AG | Pharmaceuticals | 14,800 | | 618,809 |
| | Schindler Holding AG, PC | Machinery | 1,408 | | 413,946 |
| | Schindler Holding AG | Machinery | 704 | | 200,714 |
| | SGS SA | Professional Services | 5,117 | | 572,269 |
| | SIG Group AG | Containers & Packaging | 11,344 | | 253,628 |
| | Sika AG | Chemicals | 4,944 | | 1,641,651 |
| | Sonova Holding AG | Health Care Equipment & Supplies | 1,680 | | 605,043 |
| | Straumann Holding AG | Health Care Equipment & Supplies | 3,671 | | 601,643 |
| | Swatch Group AG | Textiles, Apparel & Luxury Goods | 976 | | 209,709 |
| | Swatch Group AG | Textiles, Apparel & Luxury Goods | 1,696 | | 72,882 |
| | Swiss Life Holding AG | Insurance | 992 | | 830,244 |
| | Swiss Prime Site AG | Real Estate Management & Development | 2,624 | | 295,046 |
| | Swiss Re AG | Insurance | 9,984 | | 1,381,226 |
| | Swisscom AG | Diversified Telecommunication Services | 880 | | 576,374 |
| | Tecan Group AG | Life Sciences Tools & Services | 432 | | 142,575 |
| | Temenos AG | Software | 2,032 | | 142,605 |
| | UBS Group AG | Capital Markets | 103,792 | | 3,206,472 |
| b | VAT Group AG | Machinery | 880 | | 449,415 |
| | Zurich Insurance Group AG | Insurance | 4,112 | | 2,485,090 |
| | | | | | 54,921,322 |
| 147 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE Switzerland ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | United States 3.0% | | | | |
| | Holcim AG, Class B | Construction Materials | 17,712 | | $ 1,733,510 |
| | Total Common Stocks (Cost $49,251,040) | | | | 56,654,832 |
| | Total Investments before Short-Term Investments (Cost $49,251,040) | | | | 56,654,832 |
| | Short-Term Investments 0.0%† | | | | |
| | Money Market Funds 0.0%† | | | | |
| | United States 0.0%† | | | | |
| c,d | Institutional Fiduciary Trust - Money Market Portfolio, 4.74% | Money Market Funds | 1,714 | | 1,714 |
| | Total Short-Term Investments (Cost $1,714) | | | | 1,714 |
| | Total Investments (Cost $49,252,754) 98.0% | | | | 56,656,546 |
| | Other Assets, less Liabilities 2.0% | | | | 1,183,123 |
| | Net Assets 100.0% | | | | $ 57,839,669 |
| †Rounds to less than 0.1% of net assets. |
| aNon-income producing. |
| bSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At September 30, 2024, the value of was $449,415, representing 0.8% of net assets. |
| cThe rate shown is the annualized seven-day effective yield at period end. |
| dSee Note 3(c) regarding investments in affiliated management investment companies. |
At September 30, 2024, the Fund had the following futures contracts outstanding. See Note 1(c).
Futures Contracts
| Description | Type | Number of
Contracts | Notional
Amount* | Expiration
Date | Value/Unrealized
Appreciation
(Depreciation) |
| Equity Contracts | | | | | |
| Swiss Mid Cap Future Index | Long | 8 | $ 1,157,584 | 12/20/24 | $ 19,713 |
See Note 7 regarding other derivative information.
See Abbreviations on page 207.
| franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Semi-Annual Report | 148 |
Franklin Templeton ETF Trust
Financial Highlights
Franklin FTSE Taiwan ETF
| | Six Months Ended
September 30, 2024
(unaudited) | Year Ended March 31, |
| | 2024 | 2023 | 2022 | 2021 | 2020 |
| Per share operating performance | | | | | | |
| (for a share outstanding throughout the period) | | | | | | |
| Net asset value, beginning of period | $44.22 | $37.05 | $43.67 | $41.12 | $23.18 | $24.72 |
| Income from investment operationsa: | | | | | | |
| Net investment incomeb | 0.85 | 1.21 | 1.25 | 0.98 | 0.74 | 0.89 |
| Net realized and unrealized gains (losses) | 3.59 | 7.14 | (6.84) | 2.64 | 17.99 | (1.56) |
| Total from investment operations | 4.44 | 8.35 | (5.59) | 3.62 | 18.73 | (0.67) |
| Less distributions from net investment income | (0.20) | (1.18) | (1.03) | (1.07) | (0.79) | (0.87) |
| Net asset value, end of period | $48.46 | $44.22 | $37.05 | $43.67 | $41.12 | $23.18 |
| Total returnc | 10.96% | 22.90% | (12.55)% | 8.72% | 81.35% | (3.29)% |
| Ratios to average net assetsd | | | | | | |
| Total expenses | 0.19% | 0.19% | 0.19% | 0.19% | 0.19% | 0.19% |
| Net investment income | 3.64% | 3.12% | 3.52% | 2.20% | 2.24% | 3.39% |
| Supplemental data | | | | | | |
| Net assets, end of period (000’s) | $271,358 | $225,504 | $137,094 | $43,667 | $32,897 | $13,906 |
| Portfolio turnover ratee | 26.97%f | 12.14%f | 11.88%f | 17.76%f | 10.63%f | 12.57%f |
| aThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of Creation Unit Fund shares in relation to income earned and/or fluctuating fair value of the investments of the Fund. |
| bBased on average daily shares outstanding. |
| cTotal return is not annualized for periods less than one year. Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. |
| dRatios are annualized for periods less than one year. |
| ePortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash ("Cash creations"). |
| fPortfolio turnover rate excluding cash creations was as follows: | 3.10% | 12.14% | 5.40% | 7.86% | 10.63% | 12.57% |
| 149 | Semi-Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments, September 30, 2024 (unaudited)
Franklin FTSE Taiwan ETF
| | | Industry | Shares | | Value |
| | Common Stocks 99.7% | | | | |
| | China 0.9% | | | | |
| | Airtac International Group, Class A | Machinery | 37,580 | | $ 1,084,181 |
| | Silergy Corp. | Semiconductors & Semiconductor Equipment | 90,800 | | 1,342,784 |
| | | | | | 2,426,965 |
| | Taiwan 98.6% | | | | |
| | Accton Technology Corp. | Communications Equipment | 146,274 | | 2,458,969 |
| | Acer, Inc., Class H | Technology Hardware, Storage & Peripherals | 791,000 | | 1,019,791 |
| | Advanced Energy Solution Holding Co. Ltd. | Electrical Equipment | 6,990 | | 110,328 |
| | Advantech Co. Ltd. | Technology Hardware, Storage & Peripherals | 126,678 | | 1,286,935 |
| | Alchip Technologies Ltd. | Semiconductors & Semiconductor Equipment | 21,151 | | 1,319,995 |
| | ASE Technology Holding Co. Ltd., Class A | Semiconductors & Semiconductor Equipment | 932,300 | | 4,448,432 |
| | Asia Cement Corp. | Construction Materials | 674,560 | | 1,017,814 |
| | Asia Vital Components Co. Ltd. | Technology Hardware, Storage & Peripherals | 78,674 | | 1,466,755 |
| | ASMedia Technology, Inc. | Semiconductors & Semiconductor Equipment | 11,840 | | 604,225 |
| | ASPEED Technology, Inc. | Semiconductors & Semiconductor Equipment | 8,400 | | 1,142,686 |
| | Asustek Computer, Inc. | Technology Hardware, Storage & Peripherals | 194,860 | | 3,405,039 |
| | AUO Corp., Class H | Electronic Equipment, Instruments & Components | 1,935,000 | | 1,042,509 |
| | Capital Securities Corp., Class A | Capital Markets | 552,000 | | 377,634 |
| | Catcher Technology Co. Ltd. | Technology Hardware, Storage & Peripherals | 168,000 | | 1,255,494 |
| | Cathay Financial Holding Co. Ltd., Class A | Insurance | 2,544,200 | | 5,346,225 |
| | Chailease Holding Co. Ltd., Class A | Financial Services | 400,391 | | 2,068,599 |
| | Chang Hwa Commercial Bank Ltd., Class A | Banks | 1,936,989 | | 1,095,606 |
| | Cheng Shin Rubber Industry Co. Ltd., Class A | Automobile Components | 504,000 | | 824,963 |
| | Chicony Electronics Co. Ltd. | Technology Hardware, Storage & Peripherals | 162,150 | | 840,301 |
| | China Airlines Ltd., Class A | Passenger Airlines | 794,000 | | 539,428 |
| | China Motor Corp., Class A | Automobiles | 70,890 | | 165,316 |
| | China Steel Corp., Class A | Metals & Mining | 3,128,000 | | 2,288,190 |
| | Chunghwa Telecom Co. Ltd. | Diversified Telecommunication Services | 1,050,790 | | 4,167,100 |
| | Compal Electronics, Inc., Class H | Technology Hardware, Storage & Peripherals | 1,122,000 | | 1,180,623 |
| | CTBC Financial Holding Co. Ltd., Class A | Banks | 4,525,000 | | 4,918,711 |
| | Delta Electronics, Inc., Class A | Electronic Equipment, Instruments & Components | 596,610 | | 7,173,308 |
| | E Ink Holdings, Inc. | Electronic Equipment, Instruments & Components | 217,800 | | 2,016,507 |
| | E.Sun Financial Holding Co. Ltd., Class A | Banks | 4,197,343 | | 3,720,332 |
| | Eclat Textile Co. Ltd., Class A | Textiles, Apparel & Luxury Goods | 55,050 | | 948,043 |
| | Elite Material Co. Ltd. | Electronic Equipment, Instruments & Components | 84,207 | | 1,189,406 |
| | eMemory Technology, Inc. | Semiconductors & Semiconductor Equipment | 18,368 | | 1,526,483 |
| | Ennostar, Inc., Class H | Semiconductors & Semiconductor Equipment | 194,680 | | 279,288 |
| | Eternal Materials Co. Ltd., Class H | Chemicals | 265,785 | | 286,811 |
| | Eva Airways Corp., Class H | Passenger Airlines | 745,000 | | 882,799 |
| | Evergreen Marine Corp. Taiwan Ltd. | Marine Transportation | 280,600 | | 1,782,207 |
| | Far Eastern International Bank | Banks | 652,735 | | 286,699 |
| | Far Eastern New Century Corp. | Industrial Conglomerates | 808,462 | | 980,991 |
| | Far EasTone Telecommunications Co. Ltd. | Wireless Telecommunication Services | 489,000 | | 1,401,491 |
| | Feng TAY Enterprise Co. Ltd. | Textiles, Apparel & Luxury Goods | 136,194 | | 671,362 |
| | First Financial Holding Co. Ltd. | Banks | 3,056,450 | | 2,646,319 |
| | Formosa Chemicals & Fibre Corp. | Chemicals | 942,200 | | 1,293,621 |
| | Formosa Petrochemical Corp. | Oil, Gas & Consumable Fuels | 377,370 | | 628,423 |
| | Formosa Plastics Corp. | Chemicals | 1,031,790 | | 1,744,293 |
| | Formosa Sumco Technology Corp. | Semiconductors & Semiconductor Equipment | 17,240 | | 74,906 |
| | Formosa Taffeta Co. Ltd. | Textiles, Apparel & Luxury Goods | 281,000 | | 186,022 |
| | Fortune Electric Co. Ltd. | Electrical Equipment | 35,000 | | 695,654 |
| | Foxconn Technology Co. Ltd. | Electronic Equipment, Instruments & Components | 305,620 | | 641,245 |
| | Fubon Financial Holding Co. Ltd. | Insurance | 2,247,145 | | 6,419,096 |
| | Genius Electronic Optical Co. Ltd. | Electronic Equipment, Instruments & Components | 23,320 | | 358,129 |
| | Giant Manufacturing Co. Ltd. | Leisure Products | 85,815 | | 607,415 |
| | Gigabyte Technology Co. Ltd. | Technology Hardware, Storage & Peripherals | 134,930 | | 1,102,157 |
| | Global Unichip Corp. | Semiconductors & Semiconductor Equipment | 24,180 | | 840,472 |
| franklintempleton.com | Semi-Annual Report | 150 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE Taiwan ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | Taiwan (continued) | | | | |
| | Globalwafers Co. Ltd. | Semiconductors & Semiconductor Equipment | 69,920 | | $ 1,005,280 |
| | Hiwin Technologies Corp. | Machinery | 79,089 | | 534,816 |
| | Hon Hai Precision Industry Co. Ltd. | Electronic Equipment, Instruments & Components | 3,298,300 | | 19,541,853 |
| | Hotai Motor Co. Ltd. | Specialty Retail | 90,205 | | 2,020,929 |
| a | HTC Corp. | Technology Hardware, Storage & Peripherals | 202,500 | | 302,984 |
| | Hua Nan Financial Holdings Co. Ltd., Class C | Banks | 2,835,560 | | 2,302,747 |
| | Innolux Corp. | Electronic Equipment, Instruments & Components | 2,060,080 | | 1,051,310 |
| | International Games System Co. Ltd. | Entertainment | 54,000 | | 1,682,461 |
| | Inventec Corp. | Technology Hardware, Storage & Peripherals | 710,000 | | 966,963 |
| | Jentech Precision Industrial Co. Ltd. | Semiconductors & Semiconductor Equipment | 28,000 | | 1,145,782 |
| | KGI Financial Holding Co. Ltd., Class A | Insurance | 4,350,000 | | 2,268,023 |
| | King Yuan Electronics Co. Ltd. | Semiconductors & Semiconductor Equipment | 307,000 | | 1,091,353 |
| | Largan Precision Co. Ltd. | Electronic Equipment, Instruments & Components | 28,280 | | 2,269,799 |
| | Lite-On Technology Corp. | Technology Hardware, Storage & Peripherals | 551,000 | | 1,732,403 |
| | Lotes Co. Ltd. | Electronic Equipment, Instruments & Components | 20,000 | | 875,294 |
| | MediaTek, Inc. | Semiconductors & Semiconductor Equipment | 409,480 | | 15,203,545 |
| | Mega Financial Holding Co. Ltd. | Banks | 3,258,365 | | 4,046,379 |
| | Micro-Star International Co. Ltd. | Technology Hardware, Storage & Peripherals | 189,000 | | 1,039,167 |
| | momo.com, Inc. | Broadline Retail | 20,921 | | 260,467 |
| | Nan Ya Plastics Corp. | Chemicals | 1,433,180 | | 2,083,209 |
| | Nan Ya Printed Circuit Board Corp. | Electronic Equipment, Instruments & Components | 26,110 | | 117,570 |
| a | Nanya Technology Corp. | Semiconductors & Semiconductor Equipment | 320,510 | | 479,552 |
| | Nien Made Enterprise Co. Ltd. | Household Durables | 38,420 | | 619,159 |
| | Novatek Microelectronics Corp. | Semiconductors & Semiconductor Equipment | 158,330 | | 2,591,596 |
| a | Oneness Biotech Co. Ltd. | Pharmaceuticals | 102,275 | | 462,147 |
| | Pegatron Corp. | Technology Hardware, Storage & Peripherals | 563,059 | | 1,832,591 |
| a | PharmaEssentia Corp. | Biotechnology | 71,040 | | 1,427,692 |
| | Pou Chen Corp. | Textiles, Apparel & Luxury Goods | 616,000 | | 703,661 |
| a | Powerchip Semiconductor Manufacturing Corp. | Semiconductors & Semiconductor Equipment | 870,000 | | 593,810 |
| | Powertech Technology, Inc. | Semiconductors & Semiconductor Equipment | 185,400 | | 802,610 |
| | President Chain Store Corp. | Consumer Staples Distribution & Retail | 155,270 | | 1,447,384 |
| | Quanta Computer, Inc. | Technology Hardware, Storage & Peripherals | 733,850 | | 6,121,890 |
| | Realtek Semiconductor Corp. | Semiconductors & Semiconductor Equipment | 130,860 | | 1,947,611 |
| | Ruentex Development Co. Ltd. | Real Estate Management & Development | 426,710 | | 660,024 |
| | Shanghai Commercial & Savings Bank Ltd. | Banks | 1,031,000 | | 1,257,536 |
| | Shihlin Electric & Engineering Corp. | Electrical Equipment | 78,000 | | 544,705 |
| a | Shin Kong Financial Holding Co. Ltd. | Insurance | 4,501,027 | | 1,713,851 |
| | Sino-American Silicon Products, Inc. | Semiconductors & Semiconductor Equipment | 140,150 | | 783,864 |
| | SinoPac Financial Holdings Co. Ltd. | Banks | 3,262,642 | | 2,500,089 |
| | Synnex Technology International Corp. | Electronic Equipment, Instruments & Components | 372,500 | | 853,372 |
| | Taishin Financial Holding Co. Ltd. | Banks | 3,404,800 | | 1,979,629 |
| | Taiwan Business Bank | Banks | 1,670,760 | | 842,072 |
| | Taiwan Cooperative Financial Holding Co. Ltd. | Banks | 3,031,045 | | 2,480,656 |
| | Taiwan Fertilizer Co. Ltd. | Chemicals | 204,031 | | 373,937 |
| a | Taiwan Glass Industry Corp. | Building Products | 370,000 | | 218,634 |
| | Taiwan High Speed Rail Corp. | Transportation Infrastructure | 573,000 | | 535,946 |
| | Taiwan Mobile Co. Ltd. | Wireless Telecommunication Services | 409,640 | | 1,488,588 |
| | Taiwan Secom Co. Ltd. | Commercial Services & Supplies | 68,660 | | 299,404 |
| | Taiwan Semiconductor Manufacturing Co. Ltd. | Semiconductors & Semiconductor Equipment | 1,765,910 | | 53,401,667 |
| a | Tatung Co. Ltd. | Electrical Equipment | 584,000 | | 907,007 |
| | TCC Group Holdings Co. Ltd. | Construction Materials | 1,841,118 | | 1,966,403 |
| | Teco Electric & Machinery Co. Ltd. | Electrical Equipment | 374,000 | | 576,721 |
| | Transcend Information, Inc. | Technology Hardware, Storage & Peripherals | 78,790 | | 256,438 |
| | U-Ming Marine Transport Corp. | Marine Transportation | 116,257 | | 204,988 |
| | Unimicron Technology Corp. | Electronic Equipment, Instruments & Components | 357,750 | | 1,627,858 |
| | Uni-President Enterprises Corp. | Food Products | 1,324,700 | | 3,650,130 |
| | United Microelectronics Corp. | Semiconductors & Semiconductor Equipment | 3,248,000 | | 5,521,697 |
| 151 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE Taiwan ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | Taiwan (continued) | | | | |
| | Vanguard International Semiconductor Corp. | Semiconductors & Semiconductor Equipment | 249,220 | | $ 815,075 |
| | Voltronic Power Technology Corp. | Electrical Equipment | 18,190 | | 1,163,944 |
| | Walsin Lihwa Corp. | Electrical Equipment | 749,211 | | 828,603 |
| | Walsin Technology Corp. | Electronic Equipment, Instruments & Components | 88,650 | | 302,536 |
| | Wan Hai Lines Ltd. | Marine Transportation | 254,630 | | 788,515 |
| a | Win Semiconductors Corp. | Semiconductors & Semiconductor Equipment | 111,320 | | 480,154 |
| a | Winbond Electronics Corp. | Semiconductors & Semiconductor Equipment | 850,548 | | 573,814 |
| | Wistron Corp. | Technology Hardware, Storage & Peripherals | 751,413 | | 2,398,139 |
| | Wiwynn Corp. | Technology Hardware, Storage & Peripherals | 24,080 | | 1,304,953 |
| | WPG Holdings Ltd. | Electronic Equipment, Instruments & Components | 408,000 | | 966,932 |
| | Yageo Corp. | Electronic Equipment, Instruments & Components | 128,755 | | 2,534,699 |
| | Yang Ming Marine Transport Corp. | Marine Transportation | 483,332 | | 1,053,826 |
| | Yuanta Financial Holding Co. Ltd. | Financial Services | 3,427,000 | | 3,432,794 |
| | Yulon Motor Co. Ltd. | Automobiles | 164,115 | | 311,153 |
| | Yulon Nissan Motor Co. Ltd. | Automobiles | 6,780 | | 26,673 |
| | Zhen Ding Technology Holding Ltd. | Electronic Equipment, Instruments & Components | 174,940 | | 627,421 |
| | | | | | 267,601,631 |
| | United States 0.2% | | | | |
| | Parade Technologies Ltd. | Semiconductors & Semiconductor Equipment | 20,776 | | 499,599 |
| | Total Common Stocks (Cost $202,818,991) | | | | 270,528,195 |
| | Total Investments before Short-Term Investments (Cost $202,818,991) | | | | 270,528,195 |
| | Short-Term Investments 0.1% | | | | |
| | Money Market Funds 0.1% | | | | |
| | United States 0.1% | | | | |
| b,c | Institutional Fiduciary Trust - Money Market Portfolio, 4.74% | Money Market Funds | 189,021 | | 189,021 |
| | Total Short-Term Investments (Cost $189,021) | | | | 189,021 |
| | Total Investments (Cost $203,008,012) 99.8% | | | | 270,717,216 |
| | Other Assets, less Liabilities 0.2% | | | | 640,900 |
| | Net Assets 100.0% | | | | $ 271,358,116 |
| aNon-income producing. |
| bThe rate shown is the annualized seven-day effective yield at period end. |
| cSee Note 3(c) regarding investments in affiliated management investment companies. |
| franklintempleton.com | Semi-Annual Report | 152 |
Franklin Templeton ETF Trust
Franklin FTSE Taiwan ETF (continued)
At September 30, 2024, the Fund had the following futures contracts outstanding. See Note 1(c).
Futures Contracts
| Description | Type | Number of
Contracts | Notional
Amount* | Expiration
Date | Value/Unrealized
Appreciation
(Depreciation) |
| Index Contracts | | | | | |
| FTSE Taiwan Index Futures | Long | 9 | $ 671,760 | 10/30/24 | $ (8,817) |
See Note 7 regarding other derivative information.
See Abbreviations on page 207.
| 153 | Semi-Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
Franklin Templeton ETF Trust
Financial Highlights
Franklin FTSE United Kingdom ETF
| | Six Months Ended
September 30, 2024
(unaudited) | Year Ended March 31, |
| | 2024 | 2023 | 2022 | 2021 | 2020 |
| Per share operating performance | | | | | | |
| (for a share outstanding throughout the period) | | | | | | |
| Net asset value, beginning of period | $26.10 | $24.21 | $25.46 | $23.78 | $17.92 | $24.23 |
| Income from investment operationsa: | | | | | | |
| Net investment incomeb | 0.56 | 0.96 | 0.94 | 0.95 | 0.84 | 1.08 |
| Net realized and unrealized gains (losses) | 2.51 | 1.92 | (1.22) | 1.47 | 5.62 | (6.30) |
| Total from investment operations | 3.07 | 2.88 | (0.28) | 2.42 | 6.46 | (5.22) |
| Less distributions from net investment income | (0.64) | (0.99) | (0.97) | (0.74) | (0.60) | (1.09) |
| Net asset value, end of period | $28.53 | $26.10 | $24.21 | $25.46 | $23.78 | $17.92 |
| Total returnc | 11.95% | 12.18% | (0.71)% | 10.27% | 36.19% | (22.42)% |
| Ratios to average net assetsd | | | | | | |
| Expenses before waiver and payments by affiliates | 0.09% | 0.09% | 0.09% | 0.09% | 0.09% | 0.09% |
| Expenses net of waiver and payments by affiliates | 0.09% | 0.09% | 0.09% | 0.09% | 0.09% | 0.09% |
| Net investment income | 4.10% | 3.90% | 4.10% | 3.77% | 3.98% | 4.84% |
| Supplemental data | | | | | | |
| Net assets, end of period (000’s) | $731,908 | $652,527 | $568,961 | $613,573 | $205,673 | $89,624 |
| Portfolio turnover ratee | 4.58%f | 4.70%f | 5.61%f | 5.76%f | 7.26%f | 4.41%f |
| aThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of Creation Unit Fund shares in relation to income earned and/or fluctuating fair value of the investments of the Fund. |
| bBased on average daily shares outstanding. |
| cTotal return is not annualized for periods less than one year. Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. |
| dRatios are annualized for periods less than one year. |
| ePortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash ("Cash creations"). |
| fPortfolio turnover rate excluding cash creations was as follows: | 4.58% | 4.70% | 5.60% | 5.76% | 7.26% | 4.41% |
| franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Semi-Annual Report | 154 |
Franklin Templeton ETF Trust
Schedule of Investments, September 30, 2024 (unaudited)
Franklin FTSE United Kingdom ETF
| | | Industry | Shares | | Value |
| | Common Stocks 99.5% | | | | |
| | Australia 5.1% | | | | |
| a | Glencore PLC | Metals & Mining | 3,128,274 | | $ 17,946,754 |
| | Rio Tinto PLC | Metals & Mining | 274,968 | | 19,544,202 |
| | | | | | 37,490,956 |
| | Austria 0.3% | | | | |
| | Mondi PLC | Paper & Forest Products | 113,373 | | 2,160,954 |
| | Bermuda 0.2% | | | | |
| | Hiscox Ltd. | Insurance | 79,515 | | 1,222,294 |
| | Chile 0.3% | | | | |
| | Antofagasta PLC | Metals & Mining | 89,262 | | 2,410,195 |
| | Ireland 5.6% | | | | |
| | CRH PLC | Construction Materials | 176,472 | | 16,138,928 |
| | DCC PLC | Industrial Conglomerates | 25,137 | | 1,717,906 |
| | Experian PLC | Professional Services | 235,980 | | 12,442,857 |
| a | Flutter Entertainment PLC | Hotels, Restaurants & Leisure | 45,657 | | 10,763,278 |
| | | | | | 41,062,969 |
| | Isle Of Man 0.2% | | | | |
| | Entain PLC | Hotels, Restaurants & Leisure | 156,465 | | 1,601,760 |
| | Mexico 0.1% | | | | |
| | Fresnillo PLC | Metals & Mining | 47,196 | | 387,118 |
| | Netherlands 7.2% | | | | |
| | Shell PLC | Oil, Gas & Consumable Fuels | 1,620,054 | | 52,696,661 |
| | Nigeria 0.1% | | | | |
| b | Airtel Africa PLC | Wireless Telecommunication Services | 303,696 | | 464,393 |
| | Russia 0.0% | | | | |
| a,c,d | Evraz PLC | Metals & Mining | 128,818 | | — |
| | Switzerland 0.3% | | | | |
| | Coca-Cola HBC AG | Beverages | 52,839 | | 1,888,125 |
| | United Kingdom 79.2% | | | | |
| | 3i Group PLC | Capital Markets | 239,058 | | 10,597,822 |
| | Admiral Group PLC | Insurance | 74,898 | | 2,796,928 |
| | Anglo American PLC | Metals & Mining | 320,112 | | 10,429,688 |
| | Ashtead Group PLC | Trading Companies & Distributors | 112,347 | | 8,719,303 |
| | Associated British Foods PLC | Food Products | 82,593 | | 2,584,639 |
| | AstraZeneca PLC | Pharmaceuticals | 385,776 | | 59,963,305 |
| b | Auto Trader Group PLC | Interactive Media & Services | 229,311 | | 2,669,232 |
| | Aviva PLC | Insurance | 696,141 | | 4,515,703 |
| | B&M European Value Retail SA | Broadline Retail | 240,084 | | 1,337,095 |
| | BAE Systems PLC | Aerospace & Defense | 781,299 | | 12,968,936 |
| | Barclays PLC | Banks | 3,787,992 | | 11,409,431 |
| | Barratt Developments PLC | Household Durables | 351,918 | | 2,259,679 |
| | Beazley PLC | Insurance | 167,238 | | 1,707,110 |
| | Berkeley Group Holdings PLC | Household Durables | 25,650 | | 1,623,945 |
| | BP PLC | Oil, Gas & Consumable Fuels | 4,244,049 | | 22,298,509 |
| | British American Tobacco PLC | Tobacco | 514,026 | | 18,781,663 |
| | British Land Co. PLC | Diversified REITs | 238,545 | | 1,393,159 |
| | BT Group PLC | Diversified Telecommunication Services | 1,625,184 | | 3,224,130 |
| | Bunzl PLC | Trading Companies & Distributors | 86,697 | | 4,109,722 |
| | Burberry Group PLC | Textiles, Apparel & Luxury Goods | 91,314 | | 858,613 |
| | Centrica PLC | Multi-Utilities | 1,340,469 | | 2,097,410 |
| | Compass Group PLC | Hotels, Restaurants & Leisure | 438,102 | | 14,068,288 |
| b | ConvaTec Group PLC | Health Care Equipment & Supplies | 425,277 | | 1,294,910 |
| 155 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE United Kingdom ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | United Kingdom (continued) | | | | |
| | Croda International PLC | Chemicals | 35,910 | | $ 2,031,238 |
| | Diageo PLC | Beverages | 571,995 | | 19,971,389 |
| | Diploma PLC | Trading Companies & Distributors | 34,371 | | 2,044,230 |
| | DS Smith PLC | Containers & Packaging | 354,483 | | 2,195,792 |
| | Endeavour Mining PLC | Metals & Mining | 51,300 | | 1,218,647 |
| | GSK PLC | Pharmaceuticals | 1,029,078 | | 20,933,053 |
| | Haleon PLC | Personal Care Products | 1,776,519 | | 9,362,541 |
| | Halma PLC | Electronic Equipment, Instruments & Components | 97,470 | | 3,409,733 |
| | Hargreaves Lansdown PLC | Capital Markets | 97,983 | | 1,464,781 |
| | Hikma Pharmaceuticals PLC | Pharmaceuticals | 41,553 | | 1,065,136 |
| | Howden Joinery Group PLC | Trading Companies & Distributors | 141,075 | | 1,716,324 |
| | HSBC Holdings PLC | Banks | 4,767,309 | | 42,792,839 |
| | IMI PLC | Machinery | 67,203 | | 1,633,386 |
| | Imperial Brands PLC | Tobacco | 219,564 | | 6,399,746 |
| | Informa PLC | Media | 342,684 | | 3,770,122 |
| | InterContinental Hotels Group PLC | Hotels, Restaurants & Leisure | 41,553 | | 4,534,769 |
| | Intermediate Capital Group PLC | Capital Markets | 68,229 | | 2,039,041 |
| | International Consolidated Airlines Group SA | Passenger Airlines | 601,749 | | 1,657,897 |
| | Intertek Group PLC | Professional Services | 41,553 | | 2,876,034 |
| | J Sainsbury PLC | Consumer Staples Distribution & Retail | 465,291 | | 1,843,644 |
| | JD Sports Fashion PLC | Specialty Retail | 642,276 | | 1,327,166 |
| | Kingfisher PLC | Specialty Retail | 472,986 | | 2,042,895 |
| | Land Securities Group PLC | Diversified REITs | 191,862 | | 1,675,374 |
| | Legal & General Group PLC | Insurance | 1,537,974 | | 4,668,479 |
| | Lloyds Banking Group PLC | Banks | 16,044,588 | | 12,654,581 |
| | London Stock Exchange Group PLC | Capital Markets | 127,737 | | 17,510,941 |
| | M&G PLC | Financial Services | 559,683 | | 1,557,015 |
| | Marks & Spencer Group PLC | Consumer Staples Distribution & Retail | 525,825 | | 2,628,004 |
| | Melrose Industries PLC | Aerospace & Defense | 336,528 | | 2,057,037 |
| | National Grid PLC | Multi-Utilities | 1,257,363 | | 17,371,598 |
| | NatWest Group PLC | Banks | 1,709,829 | | 7,887,270 |
| | Next PLC | Broadline Retail | 30,780 | | 4,038,668 |
| a,c | NMC Health PLC | Health Care Providers & Services | 3,705 | | — |
| | Pearson PLC | Diversified Consumer Services | 170,829 | | 2,322,348 |
| | Persimmon PLC | Household Durables | 82,080 | | 1,809,460 |
| | Phoenix Group Holdings PLC | Insurance | 192,888 | | 1,447,595 |
| | Prudential PLC | Insurance | 707,940 | | 6,595,885 |
| | Reckitt Benckiser Group PLC | Household Products | 179,550 | | 11,023,213 |
| | RELX PLC | Professional Services | 481,194 | | 22,648,813 |
| | Rentokil Initial PLC | Commercial Services & Supplies | 648,945 | | 3,171,963 |
| | Rightmove PLC | Interactive Media & Services | 204,687 | | 1,695,113 |
| a | Rolls-Royce Holdings PLC | Aerospace & Defense | 2,189,484 | | 15,483,140 |
| | RS Group PLC | Trading Companies & Distributors | 121,581 | | 1,320,969 |
| | Sage Group PLC | Software | 258,039 | | 3,546,004 |
| | Schroders PLC | Capital Markets | 216,486 | | 1,014,019 |
| | Segro PLC | Industrial REITs | 347,814 | | 4,077,560 |
| | Severn Trent PLC | Water Utilities | 67,716 | | 2,399,750 |
| | Smith & Nephew PLC | Health Care Equipment & Supplies | 225,207 | | 3,498,101 |
| | Smiths Group PLC | Industrial Conglomerates | 89,262 | | 2,007,897 |
| | Spirax Group PLC | Machinery | 18,981 | | 1,913,330 |
| | SSE PLC | Electric Utilities | 281,637 | | 7,113,476 |
| | St. James’s Place PLC | Capital Markets | 141,075 | | 1,388,954 |
| | Standard Chartered PLC | Banks | 540,702 | | 5,751,393 |
| | Taylor Wimpey PLC | Household Durables | 910,575 | | 2,006,759 |
| | Tesco PLC | Consumer Staples Distribution & Retail | 1,781,136 | | 8,569,793 |
| | Unilever PLC | Personal Care Products | 634,068 | | 41,156,016 |
| | UNITE Group PLC | Residential REITs | 104,139 | | 1,313,056 |
| franklintempleton.com | Semi-Annual Report | 156 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin FTSE United Kingdom ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | United Kingdom (continued) | | | | |
| | United Utilities Group PLC | Water Utilities | 175,446 | | $ 2,460,421 |
| | Vodafone Group PLC | Wireless Telecommunication Services | 5,530,653 | | 5,566,870 |
| | Weir Group PLC | Machinery | 66,690 | | 1,937,586 |
| | Whitbread PLC | Hotels, Restaurants & Leisure | 46,170 | | 1,940,889 |
| a | Wise PLC, Class A | Financial Services | 193,401 | | 1,741,994 |
| | WPP PLC | Media | 275,994 | | 2,825,399 |
| | | | | | 579,836,356 |
| | United States 0.9% | | | | |
| | Smurfit WestRock PLC | Containers & Packaging | 132,354 | | 6,636,181 |
| | Total Common Stocks (Cost $652,498,592) | | | | 727,857,962 |
| | Total Investments before Short-Term Investments (Cost $652,498,592) | | | | 727,857,962 |
| | Short-Term Investments 0.0%† | | | | |
| | Money Market Funds 0.0%† | | | | |
| | United States 0.0%† | | | | |
| e,f | Institutional Fiduciary Trust - Money Market Portfolio, 4.74% | Money Market Funds | 63,985 | | 63,985 |
| | Total Short-Term Investments (Cost $63,985) | | | | 63,985 |
| | Total Investments (Cost $652,562,577) 99.5% | | | | 727,921,947 |
| | Other Assets, less Liabilities 0.5% | | | | 3,985,909 |
| | Net Assets 100.0% | | | | $ 731,907,856 |
| †Rounds to less than 0.1% of net assets. |
| aNon-income producing. |
| bSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At September 30, 2024, the value of was $4,428,535, representing 0.6% of net assets. |
| cFair valued using significant unobservable inputs. See Note 8 regarding fair value measurements. |
| dSee Note 6 regarding investments in Russian securities. |
| eThe rate shown is the annualized seven-day effective yield at period end. |
| fSee Note 3(c) regarding investments in affiliated management investment companies. |
At September 30, 2024, the Fund had the following futures contracts outstanding. See Note 1(c).
Futures Contracts
| Description | Type | Number of
Contracts | Notional
Amount* | Expiration
Date | Value/Unrealized
Appreciation
(Depreciation) |
| Index Contracts | | | | | |
| FTSE 100 Index | Long | 29 | $ 3,224,154 | 12/20/24 | $ (27,854) |
See Note 7 regarding other derivative information.
See Abbreviations on page 207.
| 157 | Semi-Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
FINANCIAL STATEMENTS
Statements of Assets and Liabilities
September 30, 2024 (unaudited)
| | Franklin FTSE
Asia ex Japan ETF | Franklin FTSE
Australia ETF | Franklin FTSE
Brazil ETF | Franklin FTSE
Canada ETF |
| Assets: | | | | |
| Investments in securities: | | | | |
| Cost – Unaffiliated issuers | $ 25,361,158 | $ 52,249,218 | $ 141,117,716 | $ 361,194,943 |
| Cost – Non-controlled affiliates (Note 3c) | 59 | 137,527 | 221,176 | 30,941 |
| Value – Unaffiliated issuers | $ 30,546,904 | $ 59,060,593+ | $ 162,157,999 | $ 411,557,668 |
| Value – Non-controlled affiliates (Note 3c) | 59 | 137,527 | 221,176 | 30,941 |
| Cash | — | — | 5,874 | 6 |
| Foreign currency, at value (cost $154,162, $474,487, $265,378 and $74,814, respectively) | 155,314 | 478,606 | 266,154 | 74,675 |
| Receivables: | | | | |
| Dividends and interest | 38,129 | 325,262 | 1,746,158 | 700,131 |
| Investment securities sold | 9 | — | — | — |
| Variation margin on futures contracts | — | 4,897 | — | — |
| Deposits with brokers for: | | | | |
| Futures contracts | 51 | 67,378 | 503,956 | 54,144 |
| Total assets | 30,740,466 | 60,074,263 | 164,901,317 | 412,417,565 |
| Liabilities: | | | | |
| Payables: | | | | |
| Investment securities purchased | 335 | 22 | 362 | 191 |
| Management fees | 4,371 | 4,239 | 26,719 | 29,817 |
| Variation margin on futures contracts | — | — | 11,942 | 228 |
| Funds advanced by custodian | 59 | — | — | — |
| Payable upon return of securities loaned | — | 134,400 | — | — |
| Deferred tax | 418,094 | — | — | — |
| Total liabilities | 422,859 | 138,661 | 39,023 | 30,236 |
| Net assets, at value | $ 30,317,607 | $ 59,935,602 | $ 164,862,294 | $ 412,387,329 |
| Net assets consist of: | | | | |
| Paid-in capital | $ 31,878,738 | $ 53,031,187 | $ 297,705,099 | $ 358,879,776 |
| Total distributable earnings (loss) | (1,561,131) | 6,904,415 | (132,842,805) | 53,507,553 |
| Net assets, at value | $ 30,317,607 | $ 59,935,602 | $ 164,862,294 | $ 412,387,329 |
| Shares outstanding | 1,200,000 | 1,850,000 | 9,100,000 | 10,950,000 |
| Net asset value per share | $25.26 | $32.40 | $18.12 | $37.66 |
| +Includes securities loaned | — | 126,911 | — | — |
| franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Semi-Annual Report | 158 |
Franklin Templeton ETF Trust
Financial Statements
Statements of Assets and Liabilities (continued)
September 30, 2024 (unaudited)
| | Franklin FTSE
China ETF | Franklin FTSE
Europe ETF | Franklin FTSE
Eurozone ETF | Franklin FTSE
Germany ETF |
| Assets: | | | | |
| Investments in securities: | | | | |
| Cost – Unaffiliated issuers | $ 145,687,229 | $ 80,774,483 | $ 19,497,626 | $ 28,746,094 |
| Cost – Non-controlled affiliates (Note 3c) | 119 | 25,519 | 830 | 8,537 |
| Value – Unaffiliated issuers | $ 139,027,507 | $ 85,925,236 | $ 21,386,161 | $ 31,714,188 |
| Value – Non-controlled affiliates (Note 3c) | 119 | 25,519 | 830 | 8,537 |
| Cash | 3,096,220 | 198 | — | — |
| Foreign currency, at value (cost $373,163, $103,452, $7,613 and $10,000, respectively) | 373,394 | 103,516 | 7,615 | 10,004 |
| Receivables: | | | | |
| Dividends and interest | 188,858 | 632,732 | 67,367 | 72,822 |
| European Union tax reclaims receivable (Note 1e) | — | 290,280 | 19,168 | — |
| Variation margin on futures contracts | 3,554 | — | — | — |
| Deposits with brokers for: | | | | |
| Futures contracts | 26,869 | 65,449 | 3,926 | 6,354 |
| Total assets | 142,716,521 | 87,042,930 | 21,485,067 | 31,811,905 |
| Liabilities: | | | | |
| Payables: | | | | |
| Investment securities purchased | 3,136,478 | 172 | 1 | 73 |
| European Union tax reclaims contingency fees payable (Note 1e) | — | 72,570 | 4,792 | — |
| Management fees | 17,287 | 6,312 | 1,546 | 2,267 |
| Variation margin on futures contracts | — | 12,040 | 638 | 559 |
| Accrued expenses and other liabilities | — | 78,096 | — | — |
| Total liabilities | 3,153,765 | 169,190 | 6,977 | 2,899 |
| Net assets, at value | $ 139,562,756 | $ 86,873,740 | $ 21,478,090 | $ 31,809,006 |
| Net assets consist of: | | | | |
| Paid-in capital | $ 178,508,045 | $ 87,655,339 | $ 23,292,687 | $ 30,502,210 |
| Total distributable earnings (loss) | (38,945,289) | (781,599) | (1,814,597) | 1,306,796 |
| Net assets, at value | $ 139,562,756 | $ 86,873,740 | $ 21,478,090 | $ 31,809,006 |
| Shares outstanding | 6,800,000 | 2,800,000 | 800,000 | 1,200,000 |
| Net asset value per share | $20.52 | $31.03 | $26.85 | $26.51 |
| 159 | Semi-Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
Franklin Templeton ETF Trust
Financial Statements
Statements of Assets and Liabilities (continued)
September 30, 2024 (unaudited)
| | Franklin FTSE
Hong Kong ETF | Franklin FTSE
India ETF | Franklin FTSE
Japan ETF | Franklin FTSE
Japan Hedged ETF |
| Assets: | | | | |
| Investments in securities: | | | | |
| Cost – Unaffiliated issuers | $ 16,086,543 | $ 1,463,395,680 | $ 1,906,197,495 | $ 66,480,732 |
| Cost – Non-controlled affiliates (Note 3c) | 460 | 14,888,080 | 695,927 | 683,395 |
| Value – Unaffiliated issuers | $ 13,635,319 | $ 1,847,196,701 | $ 2,081,450,154+ | $ 72,237,496 |
| Value – Non-controlled affiliates (Note 3c) | 460 | 14,888,080 | 695,927 | 683,395 |
| Cash | — | 12,626 | — | — |
| Foreign currency, at value (cost $59,033, $23,075,691, $284,492 and $223,185, respectively) | 59,151 | 23,005,843 | 284,492 | 225,178 |
| Receivables: | | | | |
| Dividends and interest | 30,157 | 505,197 | 18,280,137 | 637,922 |
| Investment securities sold | — | — | 15,918 | — |
| Variation margin on futures contracts | 4,442 | — | — | — |
| Deposits with brokers for: | | | | |
| Futures contracts | 5,347 | 2,051,500 | 1,371,940 | 102,006 |
| Unrealized appreciation on OTC forward exchange contracts | — | — | — | 438 |
| Total assets | 13,734,876 | 1,887,659,947 | 2,102,098,568 | 73,886,435 |
| Liabilities: | | | | |
| Payables: | | | | |
| Investment securities purchased | 5 | 490,670 | 106 | 2,212 |
| Management fees | 890 | 274,588 | 154,764 | 5,269 |
| Variation margin on futures contracts | — | 518,427 | 332,453 | 25,108 |
| Funds advanced by custodian | — | — | 327 | — |
| Payable upon return of securities loaned | — | — | 666,433 | — |
| Unrealized depreciation on OTC forward exchange contracts | — | — | — | 1,007,508 |
| Deferred tax | — | 74,226,080 | — | — |
| Total liabilities | 895 | 75,509,765 | 1,154,083 | 1,040,097 |
| Net assets, at value | $ 13,733,981 | $ 1,812,150,182 | $ 2,100,944,485 | $ 72,846,338 |
| Net assets consist of: | | | | |
| Paid-in capital | $ 18,248,825 | $ 1,520,357,910 | $ 1,999,559,909 | $ 71,476,944 |
| Total distributable earnings (loss) | (4,514,844) | 291,792,272 | 101,384,576 | 1,369,394 |
| Net assets, at value | $ 13,733,981 | $ 1,812,150,182 | $ 2,100,944,485 | $ 72,846,338 |
| Shares outstanding | 700,000 | 43,250,000 | 69,000,000 | 2,400,000 |
| Net asset value per share | $19.62 | $41.90 | $30.45 | $30.35 |
| +Includes securities loaned | — | — | 636,208 | — |
| franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Semi-Annual Report | 160 |
Franklin Templeton ETF Trust
Financial Statements
Statements of Assets and Liabilities (continued)
September 30, 2024 (unaudited)
| | Franklin FTSE
Latin America ETF | Franklin FTSE
Mexico ETF | Franklin FTSE
Saudi Arabia ETF | Franklin FTSE
South Korea ETF |
| Assets: | | | | |
| Investments in securities: | | | | |
| Cost – Unaffiliated issuers | $ 45,826,481 | $ 104,999,078 | $ 15,886,026 | $ 96,630,391 |
| Cost – Non-controlled affiliates (Note 3c) | 1,565 | 75,561 | — | 52,762 |
| Value – Unaffiliated issuers | $ 51,688,536 | $ 94,783,777+ | $ 18,331,527 | $ 120,125,711 |
| Value – Non-controlled affiliates (Note 3c) | 1,565 | 75,561 | — | 52,762 |
| Cash | — | 136,082 | — | — |
| Foreign currency, at value (cost $150,097, $416, $76,246 and $117,975, respectively) | 150,283 | 414 | 76,253 | 119,771 |
| Receivables: | | | | |
| Dividends and interest | 359,558 | 16,856 | 12,764 | 248,652 |
| Investment securities sold | 4 | — | — | — |
| Deposits with brokers for: | | | | |
| Futures contracts | 80,385 | 9,739 | 4 | — |
| Total assets | 52,280,331 | 95,022,429 | 18,420,548 | 120,546,896 |
| Liabilities: | | | | |
| Payables: | | | | |
| Investment securities purchased | 89,144 | 13 | 6 | 47 |
| Management fees | 8,096 | 13,145 | 5,780 | 8,729 |
| Variation margin on futures contracts | 2,532 | 9,720 | — | — |
| Funds advanced by custodian | — | — | 64,746 | — |
| Payable upon return of securities loaned | — | 70,000 | — | — |
| Total liabilities | 99,772 | 92,878 | 70,532 | 8,776 |
| Net assets, at value | $ 52,180,559 | $ 94,929,551 | $ 18,350,016 | $ 120,538,120 |
| Net assets consist of: | | | | |
| Paid-in capital | $ 47,712,779 | $ 103,673,563 | $ 16,164,094 | $ 130,222,893 |
| Total distributable earnings (loss) | 4,467,780 | (8,744,012) | 2,185,922 | (9,684,773) |
| Net assets, at value | $ 52,180,559 | $ 94,929,551 | $ 18,350,016 | $ 120,538,120 |
| Shares outstanding | 2,500,000 | 3,550,000 | 500,000 | 5,600,000 |
| Net asset value per share | $20.87 | $26.74 | $36.70 | $21.52 |
| +Includes securities loaned | — | 64,925 | — | — |
| 161 | Semi-Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
Franklin Templeton ETF Trust
Financial Statements
Statements of Assets and Liabilities (continued)
September 30, 2024 (unaudited)
| | Franklin FTSE
Switzerland ETF | Franklin FTSE
Taiwan ETF | Franklin FTSE
United Kingdom ETF |
| Assets: | | | |
| Investments in securities: | | | |
| Cost – Unaffiliated issuers | $ 49,251,040 | $ 202,818,991 | $ 652,498,592 |
| Cost – Non-controlled affiliates (Note 3c) | 1,714 | 189,021 | 63,985 |
| Value – Unaffiliated issuers | $ 56,654,832 | $ 270,528,195 | $ 727,857,962 |
| Value – Non-controlled affiliates (Note 3c) | 1,714 | 189,021 | 63,985 |
| Cash | — | 26 | 6,892 |
| Foreign currency, at value (cost $63,451, $380,127 and $2,725,201, respectively) | 63,681 | 383,717 | 2,738,309 |
| Receivables: | | | |
| Dividends and interest | 1,062,442 | 286,734 | 1,632,922 |
| Deposits with brokers for: | | | |
| Futures contracts | 63,386 | 49,500 | 152,057 |
| Total assets | 57,846,055 | 271,437,193 | 732,452,127 |
| Liabilities: | | | |
| Payables: | | | |
| Investment securities purchased | 7 | 20,790 | 456,835 |
| Management fees | 4,222 | 42,820 | 53,440 |
| Variation margin on futures contracts | 2,157 | 15,467 | 33,996 |
| Total liabilities | 6,386 | 79,077 | 544,271 |
| Net assets, at value | $ 57,839,669 | $ 271,358,116 | $ 731,907,856 |
| Net assets consist of: | | | |
| Paid-in capital | $ 52,698,359 | $ 209,725,446 | $ 670,798,863 |
| Total distributable earnings (loss) | 5,141,310 | 61,632,670 | 61,108,993 |
| Net assets, at value | $ 57,839,669 | $ 271,358,116 | $ 731,907,856 |
| Shares outstanding | 1,600,000 | 5,600,000 | 25,650,000 |
| Net asset value per share | $36.15 | $48.46 | $28.53 |
| franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Semi-Annual Report | 162 |
Franklin Templeton ETF Trust
Financial Statements
Statements of Operations
for the period ended September 30, 2024 (unaudited)
| | Franklin FTSE
Asia ex Japan ETF | Franklin FTSE
Australia ETF | Franklin FTSE
Brazil ETF | Franklin FTSE
Canada ETF |
| Investment income: | | | | |
| Dividends: (net of foreign taxes)a | | | | |
| Unaffiliated issuers | $ 485,418 | $ 924,572 | $ 6,335,700 | $ 5,408,042 |
| Non-Controlled affiliates (Note 3c) | 823 | 510 | 4,015 | 3,008 |
| Interest: | | | | |
| Unaffiliated issuers | 129 | 467 | — | — |
| Interest from securities loaned (Note 1d): | | | | |
| Unaffiliated issuers (net of fees and rebates) | — | 5 | — | — |
| Non-Controlled affiliates (Note 3c) | — | 12 | — | — |
| Total investment income | 486,370 | 925,566 | 6,339,715 | 5,411,050 |
| Expenses: | | | | |
| Management fees (Note 3a) | 28,342 | 20,344 | 156,936 | 178,914 |
| Total expenses | 28,342 | 20,344 | 156,936 | 178,914 |
| Expenses waived/paid by affiliates (Note 3c) | (75) | (12) | (183) | (73) |
| Net expenses | 28,267 | 20,332 | 156,753 | 178,841 |
| Net investment income | 458,103 | 905,234 | 6,182,962 | 5,232,209 |
| Realized and unrealized gains (losses): | | | | |
| Net realized gain (loss) from: | | | | |
| Investments: | | | | |
| Unaffiliated issuers | (178,755) | 3,728 | (2,321,575) | (560,524) |
| In-kind redemptions | 220,286 | 1,081,499 | — | 5,545,617 |
| Foreign currency transactions | (5,726) | 6,337 | (324,918) | (4,890) |
| Futures contracts | (1,123) | 18,311 | (25,080) | 101,717 |
| Net realized gain (loss) | 34,682 | 1,109,875 | (2,671,573) | 5,081,920 |
| Net change in unrealized appreciation (depreciation) on: | | | | |
| Investments: | | | | |
| Unaffiliated issuers | 4,296,608 | 4,695,220 | (10,479,205) | 25,899,150 |
| Translation of other assets and liabilities denominated in foreign currencies | 2,939 | 18,239 | 26,401 | (284) |
| Futures contracts | 73 | 1,754 | (53,792) | (8,426) |
| Change in deferred taxes on unrealized appreciation | (150,567) | — | — | — |
| Net change in unrealized appreciation (depreciation) | 4,149,053 | 4,715,213 | (10,506,596) | 25,890,440 |
| Net realized and unrealized gain (loss) | 4,183,735 | 5,825,088 | (13,178,169) | 30,972,360 |
| Net increase (decrease) in net assets resulting from operations | $4,641,838 | $6,730,322 | $(6,995,207) | $36,204,569 |
| aForeign taxes withheld on dividends | $58,425 | $11,333 | $405,076 | $951,203 |
| 163 | Semi-Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
Franklin Templeton ETF Trust
Financial Statements
Statements of Operations (continued)
for the period ended September 30, 2024 (unaudited)
| | Franklin FTSE
China ETF | Franklin FTSE
Europe ETF | Franklin FTSE
Eurozone ETF | Franklin FTSE
Germany ETF |
| Investment income: | | | | |
| Dividends: (net of foreign taxes)a | | | | |
| Unaffiliated issuers | $ 2,800,443 | $ 1,413,838 | $ 451,972 | $ 541,863 |
| Non-Controlled affiliates (Note 3c) | 1,297 | 1,983 | 147 | 409 |
| European Union tax reclaims (Note 1e) | — | (2,990)b | — | — |
| Interest: | | | | |
| Unaffiliated issuers | 748 | 2,881 | — | 165 |
| Interest from securities loaned (Note 1d): | | | | |
| Unaffiliated issuers (net of fees and rebates) | 271 | — | — | — |
| Non-Controlled affiliates (Note 3c) | 431 | — | — | — |
| Total investment income | 2,803,190 | 1,415,712 | 452,119 | 542,437 |
| Expenses: | | | | |
| Management fees (Note 3a) | 106,019 | 34,866 | 9,299 | 11,377 |
| European Union tax reclaims contingency fees (Note 1e) | — | (707)b | — | — |
| Total expenses | 106,019 | 34,159 | 9,299 | 11,377 |
| Expenses waived/paid by affiliates (Note 3c) | (73) | (45) | (4) | (10) |
| Net expenses | 105,946 | 34,114 | 9,295 | 11,367 |
| Net investment income | 2,697,244 | 1,381,598 | 442,824 | 531,070 |
| Realized and unrealized gains (losses): | | | | |
| Net realized gain (loss) from: | | | | |
| Investments: | | | | |
| Unaffiliated issuers | (4,303,694) | (690,867) | (114,761) | (318,102) |
| In-kind redemptions | 2,735,945 | — | — | — |
| Foreign currency transactions | 12,875 | 6,472 | 96 | 2,407 |
| Forward exchange contracts | (13,142) | — | — | — |
| Futures contracts | (94,853) | (5,372) | (2,262) | 3,348 |
| Net realized gain (loss) | (1,662,869) | (689,767) | (116,927) | (312,347) |
| Net change in unrealized appreciation (depreciation) on: | | | | |
| Investments: | | | | |
| Unaffiliated issuers | 31,894,303 | 5,083,326 | 684,975 | 2,490,609 |
| Translation of other assets and liabilities denominated in foreign currencies | 818 | 45,726 | 3,687 | 2,435 |
| Futures contracts | 69,709 | (17,693) | (405) | 2,705 |
| Net change in unrealized appreciation (depreciation) | 31,964,830 | 5,111,359 | 688,257 | 2,495,749 |
| Net realized and unrealized gain (loss) | 30,301,961 | 4,421,592 | 571,330 | 2,183,402 |
| Net increase (decrease) in net assets resulting from operations | $32,999,205 | $5,803,190 | $1,014,154 | $2,714,472 |
| aForeign taxes withheld on dividends | $214,478 | $188,878 | $75,076 | $85,712 |
| bReversal of excess European Union tax reclaim and Contingency fees related to the filing of European Union tax reclaims for the period ended September 2024. |
| franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Semi-Annual Report | 164 |
Franklin Templeton ETF Trust
Financial Statements
Statements of Operations (continued)
for the period ended September 30, 2024 (unaudited)
| | Franklin FTSE
Hong Kong ETF | Franklin FTSE
India ETF | Franklin FTSE
Japan ETF | Franklin FTSE
Japan Hedged ETF |
| Investment income: | | | | |
| Dividends: (net of foreign taxes)a | | | | |
| Unaffiliated issuers | $ 357,384 | $ 8,417,721 | $ 22,163,953 | $ 749,198 |
| Non-Controlled affiliates (Note 3c) | 110 | 79,671 | 64,634 | 9,114 |
| Interest: | | | | |
| Unaffiliated issuers | 142 | (237,496) | — | — |
| Interest from securities loaned (Note 1d): | | | | |
| Unaffiliated issuers (net of fees and rebates) | — | — | 40 | — |
| Non-Controlled affiliates (Note 3c) | — | — | 15,401 | — |
| Total investment income | 357,636 | 8,259,896 | 22,244,028 | 758,312 |
| Expenses: | | | | |
| Management fees (Note 3a) | 4,916 | 1,317,396 | 920,948 | 29,612 |
| Total expenses | 4,916 | 1,317,396 | 920,948 | 29,612 |
| Expenses waived/paid by affiliates (Note 3c) | (3) | (2,489) | (4,218) | (238) |
| Net expenses | 4,913 | 1,314,907 | 916,730 | 29,374 |
| Net investment income | 352,723 | 6,944,989 | 21,327,298 | 728,938 |
| Realized and unrealized gains (losses): | | | | |
| Net realized gain (loss) from: | | | | |
| Investments: | | | | |
| Unaffiliated issuers | (334,015) | (3,286,957) | (29,009,973) | (756,879) |
| In-kind redemptions | — | — | 47,337,112 | 399,224 |
| Foreign currency transactions | 313 | (497,759) | (567,570) | 1,573,492 |
| Forward exchange contracts | — | — | — | (3,341,147) |
| Futures contracts | 10,829 | 3,282,856 | (1,098,699) | (58,304) |
| Net realized gain (loss) | (322,873) | (501,860) | 16,660,870 | (2,183,614) |
| Net change in unrealized appreciation (depreciation) on: | | | | |
| Investments: | | | | |
| Unaffiliated issuers | 2,442,672 | 241,263,286 | 1,118,286 | 1,938,187 |
| Translation of other assets and liabilities denominated in foreign currencies | 214 | (71,197) | 29,878 | 3,766 |
| Futures contracts | 6,835 | (298,007) | (222,619) | 35,846 |
| Forward exchange contracts | — | — | — | (1,776,080) |
| Change in deferred taxes on unrealized appreciation | — | (51,337,626) | — | — |
| Net change in unrealized appreciation (depreciation) | 2,449,721 | 189,556,456 | 925,545 | 201,719 |
| Net realized and unrealized gain (loss) | 2,126,848 | 189,054,596 | 17,586,415 | (1,981,895) |
| Net increase (decrease) in net assets resulting from operations | $2,479,571 | $195,999,585 | $38,913,713 | $(1,252,957) |
| aForeign taxes withheld on dividends | $899 | $2,527,471 | $2,596,473 | $85,787 |
| 165 | Semi-Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
Franklin Templeton ETF Trust
Financial Statements
Statements of Operations (continued)
for the period ended September 30, 2024 (unaudited)
| | Franklin FTSE
Latin America ETF | Franklin FTSE
Mexico ETF | Franklin FTSE
Saudi Arabia ETF | Franklin FTSE
South Korea ETF |
| Investment income: | | | | |
| Dividends: (net of foreign taxes)a | | | | |
| Unaffiliated issuers | $ 1,854,642 | $ 1,412,900 | $ 397,434 | $ 869,835 |
| Non-Controlled affiliates (Note 3c) | 886 | 691 | 61 | 7,818 |
| Interest: (net of foreign taxes)b | | | | |
| Unaffiliated issuers | 1,269 | 680 | — | 1,512 |
| Interest from securities loaned (Note 1d): | | | | |
| Unaffiliated issuers (net of fees and rebates) | 103 | 1,994 | — | — |
| Non-Controlled affiliates (Note 3c) | 343 | 2,343 | — | — |
| Total investment income | 1,857,243 | 1,418,608 | 397,495 | 879,165 |
| Expenses: | | | | |
| Management fees (Note 3a) | 54,704 | 66,018 | 35,243 | 91,018 |
| Total expenses | 54,704 | 66,018 | 35,243 | 91,018 |
| Expenses waived/paid by affiliates (Note 3c) | (73) | (56) | (9) | (181) |
| Net expenses | 54,631 | 65,962 | 35,234 | 90,837 |
| Net investment income | 1,802,612 | 1,352,646 | 362,261 | 788,328 |
| Realized and unrealized gains (losses): | | | | |
| Net realized gain (loss) from: | | | | |
| Investments: | | | | |
| Unaffiliated issuers | (445,051) | (628,878) | (22,445) | 10,827,444 |
| In-kind redemptions | 718,267 | 2,651,145 | — | — |
| Foreign currency transactions | (101,074) | (30,786) | (98) | (264,351) |
| Forward exchange contracts | 88 | — | (132) | — |
| Futures contracts | (69,168) | (15,149) | (5,667) | (13,799) |
| Net realized gain (loss) | 103,062 | 1,976,332 | (28,342) | 10,549,294 |
| Net change in unrealized appreciation (depreciation) on: | | | | |
| Investments: | | | | |
| Unaffiliated issuers | (8,073,970) | (17,946,034) | (499,724) | (20,782,435) |
| Translation of other assets and liabilities denominated in foreign currencies | 4,277 | 27 | 8 | 85,643 |
| Futures contracts | (13,250) | (25) | — | (121,465) |
| Net change in unrealized appreciation (depreciation) | (8,082,943) | (17,946,032) | (499,716) | (20,818,257) |
| Net realized and unrealized gain (loss) | (7,979,881) | (15,969,700) | (528,058) | (10,268,963) |
| Net increase (decrease) in net assets resulting from operations | $(6,177,269) | $(14,617,054) | $(165,797) | $(9,480,635) |
| aForeign taxes withheld on dividends | $150,500 | $136,453 | $17,013 | $152,256 |
| bForeign taxes withheld on interest | $— | $— | $— | $39 |
| franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Semi-Annual Report | 166 |
Franklin Templeton ETF Trust
Financial Statements
Statements of Operations (continued)
for the period ended September 30, 2024 (unaudited)
| | Franklin FTSE
Switzerland ETF | Franklin FTSE
Taiwan ETF | Franklin FTSE
United Kingdom ETF |
| Investment income: | | | |
| Dividends: (net of foreign taxes)a | | | |
| Unaffiliated issuers | $ 715,535 | $ 4,725,528 | $ 14,814,378 |
| Non-Controlled affiliates (Note 3c) | 721 | 3,402 | 7,614 |
| Interest: | | | |
| Unaffiliated issuers | — | — | 7,411 |
| Interest from securities loaned (Note 1d): | | | |
| Non-Controlled affiliates (Note 3c) | — | — | 112 |
| Total investment income | 716,256 | 4,728,930 | 14,829,515 |
| Expenses: | | | |
| Management fees (Note 3a) | 23,639 | 234,896 | 318,841 |
| Total expenses | 23,639 | 234,896 | 318,841 |
| Expenses waived/paid by affiliates (Note 3c) | (18) | (138) | (492) |
| Net expenses | 23,621 | 234,758 | 318,349 |
| Net investment income | 692,635 | 4,494,172 | 14,511,166 |
| Realized and unrealized gains (losses): | | | |
| Net realized gain (loss) from: | | | |
| Investments: | | | |
| Unaffiliated issuers | (180,192) | (4,667,818) | (4,160,554) |
| In-kind redemptions | 621,104 | — | 10,918,288 |
| Foreign currency transactions | 5,011 | (204,497) | 144,787 |
| Forward exchange contracts | — | 51,091 | — |
| Futures contracts | 29,810 | (156,232) | 302,671 |
| Net realized gain (loss) | 475,733 | (4,977,456) | 7,205,192 |
| Net change in unrealized appreciation (depreciation) on: | | | |
| Investments: | | | |
| Unaffiliated issuers | 4,537,667 | 23,187,534 | 58,312,087 |
| Translation of other assets and liabilities denominated in foreign currencies | 68,969 | 32,646 | 46,450 |
| Futures contracts | 16,783 | (35,913) | (193,047) |
| Net change in unrealized appreciation (depreciation) | 4,623,419 | 23,184,267 | 58,165,490 |
| Net realized and unrealized gain (loss) | 5,099,152 | 18,206,811 | 65,370,682 |
| Net increase (decrease) in net assets resulting from operations | $5,791,787 | $22,700,983 | $79,881,848 |
| aForeign taxes withheld on dividends | $129,476 | $1,253,424 | $27,276 |
| 167 | Semi-Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
Franklin Templeton ETF Trust
Financial Statements
Statements of Changes in Net Assets
| | Franklin FTSE Asia ex Japan ETF | Franklin FTSE Australia ETF |
| | Six Months Ended
September 30, 2024
(unaudited) | Year Ended
March 31, 2024
| Six Months Ended
September 30, 2024
(unaudited) | Year Ended
March 31, 2024
|
| Increase (decrease) in net assets: | | | | |
| Operations: | | | | |
| Net investment income | $ 458,103 | $ 691,909 | $ 905,234 | $ 1,182,997 |
| Net realized gain (loss) | 34,682 | (2,240,368) | 1,109,875 | 1,048,275 |
| Net change in unrealized appreciation (depreciation) | 4,149,053 | 2,827,663 | 4,715,213 | 996,478 |
| Net increase (decrease) in net assets resulting from operations | 4,641,838 | 1,279,204 | 6,730,322 | 3,227,750 |
| Distributions to shareholders (Note 1f) | (431,928) | (715,771) | (550,448) | (1,132,129) |
| Capital share transactions: (Note 2) | (8,856,813) | 4,420,748 | 26,308,896 | (4,085,725) |
| Net increase (decrease) in net assets | (4,646,903) | 4,984,181 | 32,488,770 | (1,990,104) |
| Net assets: | | | | |
| Beginning of period | 34,964,510 | 29,980,329 | 27,446,832 | 29,436,936 |
| End of period | $ 30,317,607 | $ 34,964,510 | $ 59,935,602 | $ 27,446,832 |
| franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Semi-Annual Report | 168 |
Franklin Templeton ETF Trust
Financial Statements
Statements of Changes in Net Assets (continued)
| | Franklin FTSE Brazil ETF | Franklin FTSE Canada ETF |
| | Six Months Ended
September 30, 2024
(unaudited) | Year Ended
March 31, 2024
| Six Months Ended
September 30, 2024
(unaudited) | Year Ended
March 31, 2024
|
| Increase (decrease) in net assets: | | | | |
| Operations: | | | | |
| Net investment income | $ 6,182,962 | $ 12,656,624 | $ 5,232,209 | $ 9,700,955 |
| Net realized gain (loss) | (2,671,573) | 361,912 | 5,081,920 | 1,605,921 |
| Net change in unrealized appreciation (depreciation) | (10,506,596) | 32,990,933 | 25,890,440 | 44,289,360 |
| Net increase (decrease) in net assets resulting from operations | (6,995,207) | 46,009,469 | 36,204,569 | 55,596,236 |
| Distributions to shareholders (Note 1f) | (4,966,895) | (13,002,222) | (4,207,446) | (8,908,973) |
| Capital share transactions: (Note 2) | 14,442,508 | (139,539,135) | (29,437,205) | 83,213,100 |
| Net increase (decrease) in net assets | 2,480,406 | (106,531,888) | 2,559,918 | 129,900,363 |
| Net assets: | | | | |
| Beginning of period | 162,381,888 | 268,913,776 | 409,827,411 | 279,927,048 |
| End of period | $ 164,862,294 | $ 162,381,888 | $ 412,387,329 | $ 409,827,411 |
| 169 | Semi-Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
Franklin Templeton ETF Trust
Financial Statements
Statements of Changes in Net Assets (continued)
| | Franklin FTSE China ETF | Franklin FTSE Europe ETF |
| | Six Months Ended
September 30, 2024
(unaudited) | Year Ended
March 31, 2024
| Six Months Ended
September 30, 2024
(unaudited) | Year Ended
March 31, 2024
|
| Increase (decrease) in net assets: | | | | |
| Operations: | | | | |
| Net investment income | $ 2,697,244 | $ 2,326,737 | $ 1,381,598 | $ 3,216,419 |
| Net realized gain (loss) | (1,662,869) | (10,537,536) | (689,767) | 6,979,258 |
| Net change in unrealized appreciation (depreciation) | 31,964,830 | (12,345,956) | 5,111,359 | 3,681,309 |
| Net increase (decrease) in net assets resulting from operations | 32,999,205 | (20,556,755) | 5,803,190 | 13,876,986 |
| Distributions to shareholders (Note 1f) | (781,968) | (3,374,793) | (1,936,171) | (3,162,071) |
| Capital share transactions: (Note 2) | (5,722,337) | 22,765,048 | 11,751,478 | (51,017,820) |
| Net increase (decrease) in net assets | 26,494,900 | (1,166,500) | 15,618,497 | (40,302,905) |
| Net assets: | | | | |
| Beginning of period | 113,067,856 | 114,234,356 | 71,255,243 | 111,558,148 |
| End of period | $ 139,562,756 | $ 113,067,856 | $ 86,873,740 | $ 71,255,243 |
| franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Semi-Annual Report | 170 |
Franklin Templeton ETF Trust
Financial Statements
Statements of Changes in Net Assets (continued)
| | Franklin FTSE Eurozone ETF | Franklin FTSE Germany ETF |
| | Six Months Ended
September 30, 2024
(unaudited) | Year Ended
March 31, 2024
| Six Months Ended
September 30, 2024
(unaudited) | Year Ended
March 31, 2024
|
| Increase (decrease) in net assets: | | | | |
| Operations: | | | | |
| Net investment income | $ 442,824 | $ 493,630 | $ 531,070 | $ 507,605 |
| Net realized gain (loss) | (116,927) | 160,072 | (312,347) | 54,706 |
| Net change in unrealized appreciation (depreciation) | 688,257 | 1,571,666 | 2,495,749 | 2,008,733 |
| Net increase (decrease) in net assets resulting from operations | 1,014,154 | 2,225,368 | 2,714,472 | 2,571,044 |
| Distributions to shareholders (Note 1f) | (364,149) | (771,809) | (568,974) | (553,900) |
| Capital share transactions: (Note 2) | — | 5,211,634 | 9,806,486 | 156,665 |
| Net increase (decrease) in net assets | 650,005 | 6,665,193 | 11,951,984 | 2,173,809 |
| Net assets: | | | | |
| Beginning of period | 20,828,085 | 14,162,892 | 19,857,022 | 17,683,213 |
| End of period | $ 21,478,090 | $ 20,828,085 | $ 31,809,006 | $ 19,857,022 |
| 171 | Semi-Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
Franklin Templeton ETF Trust
Financial Statements
Statements of Changes in Net Assets (continued)
| | Franklin FTSE Hong Kong ETF | Franklin FTSE India ETF |
| | Six Months Ended
September 30, 2024
(unaudited) | Year Ended
March 31, 2024
| Six Months Ended
September 30, 2024
(unaudited) | Year Ended
March 31, 2024
|
| Increase (decrease) in net assets: | | | | |
| Operations: | | | | |
| Net investment income | $ 352,723 | $ 607,322 | $ 6,944,989 | $ 3,464,829 |
| Net realized gain (loss) | (322,873) | (469,459) | (501,860) | (6,980,565) |
| Net change in unrealized appreciation (depreciation) | 2,449,721 | (3,057,192) | 189,556,456 | 119,500,337 |
| Net increase (decrease) in net assets resulting from operations | 2,479,571 | (2,919,329) | 195,999,585 | 115,984,601 |
| Distributions to shareholders (Note 1f) | (207,723) | (661,136) | (12,727,414) | (4,472,209) |
| Capital share transactions: (Note 2) | 1,607,656 | (3,633,931) | 738,742,476 | 679,645,701 |
| Net increase (decrease) in net assets | 3,879,504 | (7,214,396) | 922,014,647 | 791,158,093 |
| Net assets: | | | | |
| Beginning of period | 9,854,477 | 17,068,873 | 890,135,535 | 98,977,442 |
| End of period | $ 13,733,981 | $ 9,854,477 | $ 1,812,150,182 | $ 890,135,535 |
| franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Semi-Annual Report | 172 |
Franklin Templeton ETF Trust
Financial Statements
Statements of Changes in Net Assets (continued)
| | Franklin FTSE Japan ETF | Franklin FTSE Japan Hedged ETF |
| | Six Months Ended
September 30, 2024
(unaudited) | Year Ended
March 31, 2024
| Six Months Ended
September 30, 2024
(unaudited) | Year Ended
March 31, 2024
|
| Increase (decrease) in net assets: | | | | |
| Operations: | | | | |
| Net investment income | $ 21,327,298 | $ 32,143,495 | $ 728,938 | $ 2,655,408 |
| Net realized gain (loss) | 16,660,870 | 40,297,352 | (2,183,614) | 9,358,073 |
| Net change in unrealized appreciation (depreciation) | 925,545 | 274,506,098 | 201,719 | 5,546,627 |
| Net increase (decrease) in net assets resulting from operations | 38,913,713 | 346,946,945 | (1,252,957) | 17,560,108 |
| Distributions to shareholders (Note 1f) | (75,753,707) | (47,861,526) | (1,584,307) | (8,554,832) |
| Capital share transactions: (Note 2) | 201,218,190 | 636,677,648 | 25,341,993 | 28,051,839 |
| Net increase (decrease) in net assets | 164,378,196 | 935,763,067 | 22,504,729 | 37,057,115 |
| Net assets: | | | | |
| Beginning of period | 1,936,566,289 | 1,000,803,222 | 50,341,609 | 13,284,494 |
| End of period | $ 2,100,944,485 | $ 1,936,566,289 | $ 72,846,338 | $ 50,341,609 |
| 173 | Semi-Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
Franklin Templeton ETF Trust
Financial Statements
Statements of Changes in Net Assets (continued)
| | Franklin FTSE Latin America ETF | Franklin FTSE Mexico ETF |
| | Six Months Ended
September 30, 2024
(unaudited) | Year Ended
March 31, 2024
| Six Months Ended
September 30, 2024
(unaudited) | Year Ended
March 31, 2024
|
| Increase (decrease) in net assets: | | | | |
| Operations: | | | | |
| Net investment income | $ 1,802,612 | $ 3,745,352 | $ 1,352,646 | $ 959,837 |
| Net realized gain (loss) | 103,062 | 874,448 | 1,976,332 | 1,283,014 |
| Net change in unrealized appreciation (depreciation) | (8,082,943) | 8,510,514 | (17,946,032) | 3,878,639 |
| Net increase (decrease) in net assets resulting from operations | (6,177,269) | 13,130,314 | (14,617,054) | 6,121,490 |
| Distributions to shareholders (Note 1f) | (1,547,051) | (3,756,222) | (496,939) | (1,096,799) |
| Capital share transactions: (Note 2) | (8,573,833) | (8,267,612) | 64,512,365 | 15,616,640 |
| Net increase (decrease) in net assets | (16,298,153) | 1,106,480 | 49,398,372 | 20,641,331 |
| Net assets: | | | | |
| Beginning of period | 68,478,712 | 67,372,232 | 45,531,179 | 24,889,848 |
| End of period | $ 52,180,559 | $ 68,478,712 | $ 94,929,551 | $ 45,531,179 |
| franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Semi-Annual Report | 174 |
Franklin Templeton ETF Trust
Financial Statements
Statements of Changes in Net Assets (continued)
| | Franklin FTSE Saudi Arabia ETF | Franklin FTSE South Korea ETF |
| | Six Months Ended
September 30, 2024
(unaudited) | Year Ended
March 31, 2024
| Six Months Ended
September 30, 2024
(unaudited) | Year Ended
March 31, 2024
|
| Increase (decrease) in net assets: | | | | |
| Operations: | | | | |
| Net investment income | $ 362,261 | $ 581,168 | $ 788,328 | $ 4,955,767 |
| Net realized gain (loss) | (28,342) | (353,866) | 10,549,294 | (18,892,101) |
| Net change in unrealized appreciation (depreciation) | (499,716) | 2,199,461 | (20,818,257) | 46,054,463 |
| Net increase (decrease) in net assets resulting from operations | (165,797) | 2,426,763 | (9,480,635) | 32,118,129 |
| Distributions to shareholders (Note 1f) | (270,258) | (633,203) | (10,241,475) | (7,193,721) |
| Capital share transactions: (Note 2) | — | (4,881,121) | (161,077,242) | (16,635,729) |
| Net increase (decrease) in net assets | (436,055) | (3,087,561) | (180,799,352) | 8,288,679 |
| Net assets: | | | | |
| Beginning of period | 18,786,071 | 21,873,632 | 301,337,472 | 293,048,793 |
| End of period | $ 18,350,016 | $ 18,786,071 | $ 120,538,120 | $ 301,337,472 |
| 175 | Semi-Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
Franklin Templeton ETF Trust
Financial Statements
Statements of Changes in Net Assets (continued)
| | Franklin FTSE Switzerland ETF | Franklin FTSE Taiwan ETF |
| | Six Months Ended
September 30, 2024
(unaudited) | Year Ended
March 31, 2024
| Six Months Ended
September 30, 2024
(unaudited) | Year Ended
March 31, 2024
|
| Increase (decrease) in net assets: | | | | |
| Operations: | | | | |
| Net investment income | $ 692,635 | $ 1,227,629 | $ 4,494,172 | $ 5,460,449 |
| Net realized gain (loss) | 475,733 | (301,296) | (4,977,456) | (1,840,578) |
| Net change in unrealized appreciation (depreciation) | 4,623,419 | 2,732,803 | 23,184,267 | 33,109,362 |
| Net increase (decrease) in net assets resulting from operations | 5,791,787 | 3,659,136 | 22,700,983 | 36,729,233 |
| Distributions to shareholders (Note 1f) | (1,085,763) | (1,316,860) | (975,159) | (5,524,051) |
| Capital share transactions: (Note 2) | 7,123,945 | (6,273,325) | 24,128,503 | 57,204,780 |
| Net increase (decrease) in net assets | 11,829,969 | (3,931,049) | 45,854,327 | 88,409,962 |
| Net assets: | | | | |
| Beginning of period | 46,009,700 | 49,940,749 | 225,503,789 | 137,093,827 |
| End of period | $ 57,839,669 | $ 46,009,700 | $ 271,358,116 | $ 225,503,789 |
| franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Semi-Annual Report | 176 |
Franklin Templeton ETF Trust
Financial Statements
Statements of Changes in Net Assets (continued)
| | Franklin FTSE United Kingdom ETF |
| | Six Months Ended
September 30, 2024
(unaudited) | Year Ended
March 31, 2024
|
| Increase (decrease) in net assets: | | |
| Operations: | | |
| Net investment income | $ 14,511,166 | $ 23,100,993 |
| Net realized gain (loss) | 7,205,192 | 4,272,953 |
| Net change in unrealized appreciation (depreciation) | 58,165,490 | 43,711,833 |
| Net increase (decrease) in net assets resulting from operations | 79,881,848 | 71,085,779 |
| Distributions to shareholders (Note 1f) | (16,664,119) | (23,620,510) |
| Capital share transactions: (Note 2) | 16,163,588 | 36,100,355 |
| Net increase (decrease) in net assets | 79,381,317 | 83,565,624 |
| Net assets: | | |
| Beginning of period | 652,526,539 | 568,960,915 |
| End of period | $ 731,907,856 | $ 652,526,539 |
| 177 | Semi-Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
Notes to Financial Statements (unaudited)
1. Organization and Significant Accounting Policies
Franklin Templeton ETF Trust (Trust) is registered under the Investment Company Act of 1940 (1940 Act) as an open-end management investment company consisting of forty-nine separate funds, nineteen of which are included in this report (Funds). The Funds follow the accounting and reporting guidance in Financial Accounting Standards Board ("FASB") Accounting Standard Codification Topic 946, Financial Services - Investment Companies ("ASC 946") and apply the specialized accounting and reporting guidance in U.S. Generally Accepted Accounting Principles (U.S. GAAP), including, but not limited to, ASC 946. Each of the Funds are an exchange traded fund (ETF) and seek to provide the investment results that closely correspond, before fees and expenses, to the performance of each Fund’s corresponding underlying index.
The following summarizes the Funds’ significant accounting policies.
a. Financial Instrument Valuation
The Funds’ investments in financial instruments are carried at fair value daily. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. The Funds calculate the net asset value (NAV) per share each business day as of 4 p.m. Eastern time or the regularly scheduled close of the New York Stock Exchange (NYSE), whichever is earlier. Under compliance policies and procedures approved by the Trust’s Board of Trustees (the Board), the Board has designated the Fund’s investment manager as the valuation designee and has responsibility for oversight of valuation. The investment manager is assisted by the Fund’s administrator in performing this responsibility, including leading the cross-functional Valuation Committee (VC).
The Funds may utilize independent pricing services, quotations from securities and financial instrument dealers, and other market sources to determine fair value.
Equity securities and derivative financial instruments listed on an exchange or on the NASDAQ National Market System are valued at the last quoted sale price or the official closing price of the day, respectively. Foreign equity securities are valued as of the close of trading on the foreign stock exchange on which the security is primarily traded or as of 4 p.m. Eastern time. The value is then converted into its U.S. dollar equivalent at the foreign exchange rate in effect at 4 p.m. London time on the day that the value of the security is determined. Over-the-counter (OTC) securities are valued
within the range of the most recent quoted bid and ask prices. Securities that trade in multiple markets or on multiple exchanges are valued according to the broadest and most representative market. Certain equity securities are valued based upon fundamental characteristics or relationships to similar securities.
Certain derivative financial instruments are centrally cleared or trade in the OTC market. The Funds’ pricing services use various techniques including industry standard option pricing models and proprietary discounted cash flow models to determine the fair value of those instruments. The Funds’ net benefit or obligation under the derivative contract, as measured by the fair value of the contract, is included in net assets.
The Funds have procedures to determine the fair value of financial instruments for which market prices are not reliable or readily available. Under these procedures, the Funds primarily employ a market-based approach which may use related or comparable assets or liabilities, recent transactions, market multiples, book values, and other relevant information for the investment to determine the fair value of the investment. An income-based valuation approach may also be used in which the anticipated future cash flows of the investment are discounted to calculate fair value. Discounts may also be applied due to the nature or duration of any restrictions on the disposition of the investments. Due to the inherent uncertainty of valuations of such investments, the fair values may differ significantly from the values that would have been used had an active market existed.
Trading in securities on foreign securities stock exchanges and OTC markets may be completed before 4 p.m. Eastern time. In addition, trading in certain foreign markets may not take place on every Funds’ business day. Occasionally, events occur between the time at which trading in a foreign security is completed and 4 p.m. Eastern time that might call into question the reliability of the value of a portfolio security held by the Funds. As a result, differences may arise between the value of the Funds’ portfolio securities as determined at the foreign market close and the latest indications of value at 4 p.m. Eastern time. In order to minimize the potential for these differences, an independent pricing service may be used to adjust the Funds’ portfolio securities to the latest indications of fair value at 4 p.m. Eastern time. At September 30, 2024, certain securities may have been fair valued using these procedures, in which case the securities were categorized as Level 2 inputs within the fair value hierarchy (referred to as “market level fair value”).
| franklintempleton.com | Semi-Annual Report | 178 |
FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. Organization and Significant Accounting Policies (continued)
a. Financial Instrument Valuation (continued)
When the last day of the reporting period is a non-business day, certain foreign markets may be open on those days that the Funds’ NAV is not calculated, which could result in differences between the value of the Funds’ portfolio securities on the last business day and the last calendar day of the reporting period. Any significant security valuation changes due to an open foreign market are adjusted and reflected by the Funds for financial reporting purposes.
b. Foreign Currency Translation
Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars based on the exchange rate of such currencies against U.S. dollars on the date of valuation. The Funds may enter into foreign currency exchange contracts to facilitate transactions denominated in a foreign currency. Purchases and sales of securities, income and expense items denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date. Portfolio securities and assets and liabilities denominated in foreign currencies contain risks that those currencies will decline in value relative to the U.S. dollar. Occasionally, events may impact the availability or reliability of foreign exchange rates used to convert the U.S. dollar equivalent value. If such an event occurs, the foreign exchange rate will be valued at fair value using procedures established and approved by the Board.
The Funds do not separately report the effect of changes in foreign exchange rates from changes in market prices on securities held. Such changes are included in net realized and unrealized gain or loss from investments in the Statements of Operations.
Realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions and the difference between the recorded amounts of dividends, interest, and foreign withholding taxes and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in foreign exchange rates on foreign denominated assets and liabilities other than investments in securities held at the end of the reporting period.
c. Derivative Financial Instruments
Certain or all Funds invested in derivative financial instruments in order to manage risk or gain exposure to various other investments or markets. Derivatives are financial contracts based on an underlying or notional amount, require no initial investment or an initial net investment that is smaller than would normally be required to have a similar response to changes in market factors, and require or permit net settlement. Derivatives contain various risks including the potential inability of the counterparty to fulfill their obligations under the terms of the contract, the potential for an illiquid secondary market, and/or the potential for market movements which expose the Funds to gains or losses in excess of the amounts shown in the Statements of Assets and Liabilities. Realized gain and loss and unrealized appreciation and depreciation on these contracts for the period are included in the Statements of Operations.
Derivative counterparty credit risk is managed through a formal evaluation of the creditworthiness of all potential counterparties. Certain or all Funds attempt to reduce their exposure to counterparty credit risk on OTC derivatives, whenever possible, by entering into International Swaps and Derivatives Association (ISDA) master agreements with certain counterparties. These agreements contain various provisions, including but not limited to collateral requirements, events of default, or early termination. Termination events applicable to the counterparty include certain deteriorations in the credit quality of the counterparty.
Termination events applicable to the Funds include failure of the Funds to maintain certain net asset levels and/or limit the decline in net assets over various periods of time. In the event of default or early termination, the ISDA master agreement gives the non-defaulting party the right to net and close-out all transactions traded, whether or not arising under the ISDA agreement, to one net amount payable by one counterparty to the other. However, absent an event of default or early termination, OTC derivative assets and liabilities are presented gross and not offset in the Statements of Assets and Liabilities. Early termination by the counterparty may result in an immediate payment by the Funds of any net liability owed to that counterparty under the ISDA agreement.
Collateral requirements differ by type of derivative. Collateral terms are contract specific for OTC derivatives. For OTC derivatives traded under an ISDA master agreement, posting of collateral is required by either the Fund or the applicable counterparty if the total net exposure of all OTC derivatives
| 179 | Semi-Annual Report | franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. Organization and Significant Accounting Policies (continued)
c. Derivative Financial Instruments (continued)
with the applicable counterparty exceeds the minimum transfer amount, which typically ranges from $100,000 to $250,000, and can vary depending on the counterparty and the type of agreement. Generally, collateral is determined at the close of Fund business each day and any additional collateral required due to changes in derivative values may be delivered by the Fund or the counterparty the next business day, or within a few business days. Collateral pledged and/or received by the Fund, if any, is held in segregated accounts with the Fund’s custodian/counterparty broker and can be in the form of cash and/or securities. Unrestricted cash may be invested according to the Funds’ investment objectives. To the extent that the amounts due to the Fund from its counterparties are not subject to collateralization or are not fully collateralized, the Fund bears the risk of loss from counterparty non-performance.
Certain or all Funds entered into exchange traded futures contracts primarily to manage and/or gain exposure to equity price risk. A futures contract is an agreement between the Fund and a counterparty to buy or sell an asset at a specified price on a future date. Required initial margins are pledged by the Fund, and the daily change in fair value is accounted for as a variation margin payable or receivable in the Statements of Assets and Liabilities.
Certain or all Funds entered into OTC forward exchange contracts primarily to manage and/or gain exposure to certain foreign currencies. A forward exchange contract is an agreement between the Fund and a counterparty to buy or sell a foreign currency at a specific exchange rate on a future date.
The forward contract is marked-to-market daily and the change in value is recorded by the Funds as an unrealized gain or loss. When a forward foreign currency contract is closed, through either delivery or offset by entering into another forward foreign currency contract, the Funds recognize a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value of the contract at the time it is closed. Non-deliverable forward foreign currency exchange contracts are settled with the counterparty in cash without the delivery of foreign currency.
See Note 7 regarding other derivative information.
d. Securities Lending
Certain or all Funds participate in an agency based securities lending program to earn additional income. The Fund receives cash collateral against the loaned securities in an amount equal to at least 102% of the fair value of the loaned securities. Collateral is maintained over the life of the loan in an amount not less than 100% of the fair value of loaned securities, as determined at the close of Fund business each day; any additional collateral required due to changes in security values is delivered to the Fund on the next business day. The collateral is deposited into a joint cash account with other funds and is used to invest in a money market fund managed by Franklin Advisers, Inc., an affiliate of the Funds. These securities received as collateral are held in segregated accounts with the Funds’ custodian. The Fund cannot repledge or resell these securities received as collateral. As such, the non-cash collateral is excluded from the Statements of Assets and Liabilities. The Fund may receive income from the investment of cash collateral, in addition to lending fees paid by the borrower. Income from securities loaned, net of fees paid to the securities lending agent and/or third-party vendor, is reported separately in the Statements of Operations. The Fund bears the market risk with respect to the collateral investment, securities loaned, and the risk that the agent may default on its obligations to the Fund. If the borrower defaults on its obligation to return the securities loaned, the Fund has the right to repurchase the securities in the open market using the collateral received. The securities lending agent has agreed to indemnify the Fund in the event of default by a third party borrower.
e. Income and Deferred Taxes
It is each Funds’ policy to qualify as a regulated investment company under the Internal Revenue Code. The Funds intend to distribute to shareholders substantially all of its taxable income and net realized gains to relieve it from federal income and excise taxes. As a result, no provision for U.S. federal income taxes is required.
The Funds may be subject to foreign taxation related to income received, capital gains on the sale of securities and certain foreign currency transactions in the foreign jurisdictions in which the Funds invest. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Funds invest. When a capital gain tax is determined to apply, Funds records an estimated deferred tax liability in an amount that would be payable if the securities were disposed of on the valuation date.
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FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. Organization and Significant Accounting Policies (continued)
e. Income and Deferred Taxes (continued)
Each Fund may recognize an income tax liability related to its uncertain tax positions under U.S. GAAP when the uncertain tax position has a less than 50% probability that it will be sustained upon examination by the tax authorities based on its technical merits. As of September 30, 2024, each Fund has determined that no tax liability is required in its financial statements related to uncertain tax positions for any open tax years (or expected to be taken in future tax years). Open tax years are those that remain subject to examination and are based on the statute of limitations in each jurisdiction in which the Funds invest.
As a result of several court cases, in certain countries across the European Union the Fund filed additional tax reclaims for previously withheld taxes on dividends earned in those countries (EU reclaims). Income recognized, if any, for EU reclaims is reflected as European Union tax reclaims in the Statement of Operations and any related receivable is reflected as European Union tax reclaims receivable in the Statement of Assets and Liabilities. Any fees associated with these filings are reflected as European Union tax reclaims contingency fees in the statement of operations. When uncertainty exists as to the ultimate resolution of these proceedings, the likelihood of receipt of these EU reclaims, and the potential timing of payment, no amounts are reflected in the financial statements. For U.S. income tax purposes, EU reclaims received by the Fund, if any, reduce the amount of foreign taxes Fund shareholders can use as tax deductions or credits on their income tax returns.
f. Security Transactions, Investment Income, Expenses and Distributions
Security transactions are accounted for on trade date. Realized gains and losses on security transactions are determined on a specific identification basis. Interest Income (including interest income from payment-in-kind securities, if any) and estimated expenses are accrued daily. Dividend income is recorded on the ex-dividend date except for certain dividends from securities where the dividend rate is
not available. In such cases, the dividend is recorded as soon as the information is received by the Funds. Stock dividends are reflected as non-cash dividend income on the Statement of Operations and are recorded at fair value. Distributions to shareholders are recorded on the ex-dividend date. Distributable earnings are determined according to income tax regulations (tax basis) and may differ from earnings recorded in accordance with U.S. GAAP. These differences may be permanent or temporary. Permanent differences are reclassified among capital accounts to reflect their tax character. These reclassifications have no impact on net assets or the results of operations. Temporary differences are not reclassified, as they may reverse in subsequent periods.
Common expenses incurred by the Trust are allocated among the Funds based on the ratio of net assets of each Fund to the combined net assets of the Trust. Certain Fund specific expenses are allocated directly to the Funds that incurred the expense. These expenses are paid by the Fund or by the investment manager, as applicable, according to the terms of the unified management fee agreement.
g. Accounting Estimates
The preparation of financial statement in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
h. Guarantees and Indemnifications
Under the Trust’s organizational documents, its officers and trustees are indemnified by the Trust against certain liabilities arising out of the performance of their duties to the Trust. Additionally, in the normal course of business, the Trust, on behalf of the Funds, enters into contracts with service providers that contain general indemnification clauses. The Trust’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Trust that have not yet occurred. Currently, the Trust expects the risk of loss to be remote.
2. Shares of Beneficial Interest
Shares of the Funds is issued and redeemed at their respective NAV only in aggregations of a specified number of shares or multiples thereof (Creation Units). Only certain large institutional investors (Authorized Participants) may engage in creation or redemption transactions directly with the Funds. Once created, shares of the Funds generally trade in the secondary market in amounts less than one Creation Unit. The market price of the Funds’ shares will be based on the price in the secondary
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FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
2. Shares of Beneficial Interest (continued)
market which may be at, above or below the most recent NAV. Creation Units may be issued and redeemed in exchange for a designated portfolio of securities and/or cash (which may include cash in lieu of certain securities).
Authorized Participants pay a standard transaction fee to the shareholder servicing agent when purchasing or redeeming Creation Units of the Funds regardless of the number of Creation Units that are being created or redeemed on the same day by the Authorized Participant. The standard transaction fee is imposed to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units and is not charged to or paid by the Funds.
In addition, for cash Creation Unit transactions, a variable fee for creation transactions and redemption transactions may be charged to the Authorized Participant to cover certain brokerage, tax, foreign exchange, execution, market impact and other costs and expenses related to the execution of trades. Variable fees, if any, are included in capital share transactions in the Statements of Changes in Net Assets.
At September 30, 2024, there were an unlimited number of shares authorized (without par value). Transactions in the Funds’ shares were as follows:
| | Franklin FTSE Asia ex Japan ETF |
| | Six Months Ended
September 30, 2024 | Year Ended
March 31, 2024 |
| | Shares | Amount | Shares | Amount |
| Shares sold | — | $ 16,146 | 600,000 | $ 12,577,934 |
| Shares redeemed | (400,000) | (8,872,959) | (400,000) | (8,157,186) |
| Net increase (decrease) | (400,000) | $ (8,856,813) | 200,000 | $ 4,420,748 |
| | Franklin FTSE Australia ETF |
| | Six Months Ended
September 30, 2024 | Year Ended
March 31, 2024 |
| | Shares | Amount | Shares | Amount |
| Shares sold | 1,050,000 | $ 30,766,120 | 50,000 | $ 1,313,154 |
| Shares redeemed | (150,000) | (4,457,224) | (200,000) | (5,398,879) |
| Net increase (decrease) | 900,000 | $ 26,308,896 | (150,000) | $ (4,085,725) |
| | Franklin FTSE Brazil ETF |
| | Six Months Ended
September 30, 2024 | Year Ended
March 31, 2024 |
| | Shares | Amount | Shares | Amount |
| Shares sold | 1,300,000 | $ 23,365,378 | 3,000,000 | $ 57,369,720 |
| Shares redeemed | (500,000) | (8,922,870) | (10,700,000) | (196,908,855) |
| Net increase (decrease) | 800,000 | $ 14,442,508 | (7,700,000) | $ (139,539,135) |
| | Franklin FTSE Canada ETF |
| | Six Months Ended
September 30, 2024 | Year Ended
March 31, 2024 |
| | Shares | Amount | Shares | Amount |
| Shares sold | — | $ — | 3,350,000 | $ 104,706,035 |
| Shares redeemed | (850,000) | (29,437,205) | (650,000) | (21,492,935) |
| Net increase (decrease) | (850,000) | $ (29,437,205) | 2,700,000 | $ 83,213,100 |
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FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
2. Shares of Beneficial Interest (continued)
| | Franklin FTSE China ETF |
| | Six Months Ended
September 30, 2024 | Year Ended
March 31, 2024 |
| | Shares | Amount | Shares | Amount |
| Shares sold | 400,000 | $ 7,413,540 | 1,400,000 | $ 22,765,048 |
| Shares redeemed | (800,000) | (13,135,877) | — | — |
| Net increase (decrease) | (400,000) | $ (5,722,337) | 1,400,000 | $ 22,765,048 |
| | Franklin FTSE Europe ETF |
| | Six Months Ended
September 30, 2024 | Year Ended
March 31, 2024 |
| | Shares | Amount | Shares | Amount |
| Shares sold | 400,000 | $ 11,751,478 | 600,000 | $ 16,045,982 |
| Shares redeemed | — | — | (2,400,000) | (67,063,802) |
| Net increase (decrease) | 400,000 | $ 11,751,478 | (1,800,000) | $ (51,017,820) |
| | Franklin FTSE Eurozone ETF |
| | Six Months Ended
September 30, 2024 | Year Ended
March 31, 2024 |
| | Shares | Amount | Shares | Amount |
| Shares sold | — | $ — | 600,000 | $ 14,540,210 |
| Shares redeemed | — | — | (400,000) | (9,328,576) |
| Net increase (decrease) | — | $ — | 200,000 | $ 5,211,634 |
| | Franklin FTSE Germany ETF |
| | Six Months Ended
September 30, 2024 | Year Ended
March 31, 2024 |
| | Shares | Amount | Shares | Amount |
| Shares sold | 400,000 | $ 9,806,486 | 100,000 | $ 2,319,106 |
| Shares redeemed | — | — | (100,000) | (2,162,441) |
| Net increase (decrease) | 400,000 | $ 9,806,486 | — | $ 156,665 |
| | Franklin FTSE Hong Kong ETF |
| | Six Months Ended
September 30, 2024 | Year Ended
March 31, 2024 |
| | Shares | Amount | Shares | Amount |
| Shares sold | 100,000 | $ 1,607,656 | — | $ — |
| Shares redeemed | — | — | (200,000) | (3,633,931) |
| Net increase (decrease) | 100,000 | $ 1,607,656 | (200,000) | $ (3,633,931) |
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FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
2. Shares of Beneficial Interest (continued)
| | Franklin FTSE India ETF |
| | Six Months Ended
September 30, 2024 | Year Ended
March 31, 2024 |
| | Shares | Amount | Shares | Amount |
| Shares sold | 18,900,000 | $ 738,742,476 | 21,350,000 | $ 700,074,680 |
| Shares redeemed | — | — | (600,000) | (20,428,979) |
| Net increase (decrease) | 18,900,000 | $ 738,742,476 | 20,750,000 | $ 679,645,701 |
| | Franklin FTSE Japan ETF |
| | Six Months Ended
September 30, 2024 | Year Ended
March 31, 2024 |
| | Shares | Amount | Shares | Amount |
| Shares sold | 13,200,000 | $ 391,535,714 | 33,000,000 | $ 899,579,287 |
| Shares redeemed | (6,600,000) | (190,317,524) | (9,600,000) | (262,901,639) |
| Net increase (decrease) | 6,600,000 | $ 201,218,190 | 23,400,000 | $ 636,677,648 |
| | Franklin FTSE Japan Hedged ETF |
| | Six Months Ended
September 30, 2024 | Year Ended
March 31, 2024 |
| | Shares | Amount | Shares | Amount |
| Shares sold | 900,000 | $ 28,077,935 | 7,900,000 | $ 235,835,646 |
| Shares redeemed | (100,000) | (2,735,942) | (6,800,000) | (207,783,807) |
| Net increase (decrease) | 800,000 | $ 25,341,993 | 1,100,000 | $ 28,051,839 |
| | Franklin FTSE Latin America ETF |
| | Six Months Ended
September 30, 2024 | Year Ended
March 31, 2024 |
| | Shares | Amount | Shares | Amount |
| Shares sold | — | $ 14,106 | 100,000 | $ 2,392,505 |
| Shares redeemed | (400,000) | (8,587,939) | (500,000) | (10,660,117) |
| Net increase (decrease) | (400,000) | $ (8,573,833) | (400,000) | $ (8,267,612) |
| | Franklin FTSE Mexico ETF |
| | Six Months Ended
September 30, 2024 | Year Ended
March 31, 2024 |
| | Shares | Amount | Shares | Amount |
| Shares sold | 2,900,000 | $ 83,495,438 | 650,000 | $ 20,026,760 |
| Shares redeemed | (700,000) | (18,983,073) | (150,000) | (4,410,120) |
| Net increase (decrease) | 2,200,000 | $ 64,512,365 | 500,000 | $ 15,616,640 |
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FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
2. Shares of Beneficial Interest (continued)
| | Franklin FTSE Saudi Arabia ETF |
| | Six Months Ended
September 30, 2024 | Year Ended
March 31, 2024 |
| | Shares | Amount | Shares | Amount |
| Shares sold | — | $ — | — | $ — |
| Shares redeemed | — | — | (150,000) | (4,881,121) |
| Net increase (decrease) | — | $ — | (150,000) | $ (4,881,121) |
| | Franklin FTSE South Korea ETF |
| | Six Months Ended
September 30, 2024 | Year Ended
March 31, 2024 |
| | Shares | Amount | Shares | Amount |
| Shares sold | 300,000 | $ 7,151,179 | 3,100,000 | $ 67,031,819 |
| Shares redeemed | (7,600,000) | (168,228,421) | (4,100,000) | (83,667,548) |
| Net increase (decrease) | (7,300,000) | $ (161,077,242) | (1,000,000) | $ (16,635,729) |
| | Franklin FTSE Switzerland ETF |
| | Six Months Ended
September 30, 2024 | Year Ended
March 31, 2024 |
| | Shares | Amount | Shares | Amount |
| Shares sold | 300,000 | $ 10,443,418 | 100,000 | $ 3,129,378 |
| Shares redeemed | (100,000) | (3,319,473) | (300,000) | (9,402,703) |
| Net increase (decrease) | 200,000 | $ 7,123,945 | (200,000) | $ (6,273,325) |
| | Franklin FTSE Taiwan ETF |
| | Six Months Ended
September 30, 2024 | Year Ended
March 31, 2024 |
| | Shares | Amount | Shares | Amount |
| Shares sold | 1,800,000 | $ 83,746,980 | 1,400,000 | $ 57,204,780 |
| Shares redeemed | (1,300,000) | (59,618,477) | — | — |
| Net increase (decrease) | 500,000 | $ 24,128,503 | 1,400,000 | $ 57,204,780 |
| | Franklin FTSE United Kingdom ETF |
| | Six Months Ended
September 30, 2024 | Year Ended
March 31, 2024 |
| | Shares | Amount | Shares | Amount |
| Shares sold | 2,450,000 | $ 64,519,278 | 4,300,000 | $ 104,181,959 |
| Shares redeemed | (1,800,000) | (48,355,690) | (2,800,000) | (68,081,604) |
| Net increase (decrease) | 650,000 | $ 16,163,588 | 1,500,000 | $ 36,100,355 |
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FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
3. Transactions with Affiliates
Franklin Resources, Inc. is the holding company for various subsidiaries that together are referred to as Franklin Templeton. Certain officers and trustees of the Funds are also officers and/or directors of the following subsidiaries:
| Subsidiary | Affiliation |
| Franklin Advisers, Inc (Advisers) | Investment manager |
| Franklin Templeton Institutional, LLC (FT Institutional) | Investment manager |
| Franklin Advisory Services, LLC (FASL) | Investment manager |
| Franklin Templeton Services, LLC (FT Services) | Administrative manager |
| Franklin Distributors, LLC (Distributors) | Principal underwriter |
a. Management fees
The Funds pay a unified management fee to adviser whereby adviser has agreed to reimburse the Funds’ acquired fund fees and expenses (if any) and pay all of the ordinary operating expenses of the Funds, including custody, transfer agency, and Trustee fees and expenses, among others, but excluding payments under the Funds’ Rule 12b-1 plan (if any), brokerage expenses (including any costs incidental to transactions in portfolio securities or instruments), taxes, interest (including borrowing costs and dividend expenses on securities sold short and overdraft charges), litigation expenses (including litigation to which the Trust or a Fund may be a party and indemnification of the Trustees and officers with respect thereto), and other non-routine or extraordinary expenses. The fee is calculated daily and paid monthly according to the terms of the management agreement. The gross effective investment management fees are based on the average daily net assets of each of the Funds as follows:
| | Gross Effective Investment
Management Fee Rate |
| Franklin FTSE Asia ex Japan ETF | 0.19% |
| Franklin FTSE Australia ETF | 0.09% |
| Franklin FTSE Brazil ETF | 0.19% |
| Franklin FTSE Canada ETF | 0.09% |
| Franklin FTSE China ETF | 0.19% |
| Franklin FTSE Europe ETF | 0.09% |
| Franklin FTSE Eurozone ETF | 0.09% |
| Franklin FTSE Germany ETF | 0.09% |
| Franklin FTSE Hong Kong ETF | 0.09% |
| Franklin FTSE India ETF | 0.19% |
| Franklin FTSE Japan ETF | 0.09% |
| Franklin FTSE Japan Hedged ETF | 0.09% |
| Franklin FTSE Latin America ETF | 0.19% |
| Franklin FTSE Mexico ETF | 0.19% |
| Franklin FTSE Saudi Arabia ETF | 0.39% |
| Franklin FTSE South Korea ETF | 0.09% |
| Franklin FTSE Switzerland ETF | 0.09% |
| Franklin FTSE Taiwan ETF | 0.19% |
| Franklin FTSE United Kingdom ETF | 0.09% |
Under a subadvisory agreement, FT Institutional provides subadvisory services to the Funds. The subadvisory fee is paid by FASL based on the Fund’s average daily net assets and is not an additional expense of the Funds.
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FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
3. Transactions with Affiliates (continued)
b. Administrative Fees
Under an agreement with FASL, FT Services provides administrative services to the Funds. The fee is paid by FASL based on the Funds’ average daily net assets, and is not an additional expense of the Funds.
c. Investments in Affiliated Management Investment Companies
Certain or all Funds invest in one or more affiliated management investment companies. As defined in the 1940 Act, an investment is deemed to be a “Controlled Affiliate” of a fund when a fund owns, either directly or indirectly, 25% or more of the affiliated fund’s outstanding shares or has the power to exercise control over management or policies of such fund. The Funds do not invest for purposes of exercising a controlling influence over the management or policies. Management fees paid by the Funds are waived on assets invested in the affiliated management investment companies, as noted in the Statements of Operations, in an amount not to exceed the management and administrative fees paid directly or indirectly by each affiliate. During the period ended September 30, 2024, investments in affiliated management investment companies were as follows:
| | Value at
Beginning
of Period | Purchases | Sales | Realized
Gain (Loss) | Net Change in
Unrealized
Appreciation
(Depreciation) | Value at
End of
Period | Number
of Shares
Held at
End of
Period | Investment
Income |
Franklin FTSE Asia ex Japan ETF
Non-Controlled Affiliates | | | | | | | | Dividend
Income |
| Institutional Fiduciary Trust - Money Market Portfolio, 4.74% | $— | $3,639,889 | $(3,639,830) | $— | $— | $59 | 59 | $823 |
| | | | | | | | | Income
from
Securities
loaned |
| Institutional Fiduciary Trust - Money Market Portfolio, 4.74% | $— | $607,698 | $(607,698) | $— | $— | $— | — | $— |
| Total Affiliated Securities | $— | $4,247,587 | $(4,247,528) | $— | $— | $59 | 59 | $823 |
Franklin FTSE Australia ETF
Non-Controlled Affiliates | | | | | | | | Dividend
Income |
| Institutional Fiduciary Trust - Money Market Portfolio, 4.74% | $— | $655,691 | $(652,564) | $— | $— | $3,127 | 3,127 | $510 |
| | | | | | | | | Income
from
Securities
loaned |
| Institutional Fiduciary Trust - Money Market Portfolio, 4.74% | $— | $134,400 | $— | $— | $— | $134,400 | 134,400 | $12 |
| Total Affiliated Securities | $— | $790,091 | $(652,564) | $— | $— | $137,527 | 137,527 | $522 |
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FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
3. Transactions with Affiliates (continued)
c. Investments in Affiliated Management Investment Companies (continued)
| | Value at
Beginning
of Period | Purchases | Sales | Realized
Gain (Loss) | Net Change in
Unrealized
Appreciation
(Depreciation) | Value at
End of
Period | Number
of Shares
Held at
End of
Period | Investment
Income |
Franklin FTSE Brazil ETF
Non-Controlled Affiliates | | | | | | | | Dividend
Income |
| Institutional Fiduciary Trust - Money Market Portfolio, 4.74% | $— | $5,937,165 | $(5,715,989) | $— | $— | $221,176 | 221,176 | $4,015 |
Franklin FTSE Canada ETF
Non-Controlled Affiliates | | | | | | | | Dividend
Income |
| Institutional Fiduciary Trust - Money Market Portfolio, 4.74% | $— | $4,587,006 | $(4,556,065) | $— | $— | $30,941 | 30,941 | $3,008 |
| | | | | | | | | Income
from
Securities
loaned |
| Institutional Fiduciary Trust - Money Market Portfolio, 4.74% | $— | $532,950 | $(532,950) | $— | $— | $— | — | $— |
| Total Affiliated Securities | $— | $5,119,956 | $(5,089,015) | $— | $— | $30,941 | 30,941 | $3,008 |
Franklin FTSE China ETF
Non-Controlled Affiliates | | | | | | | | Dividend
Income |
| Institutional Fiduciary Trust - Money Market Portfolio, 4.74% | $— | $2,305,620 | $(2,305,501) | $— | $— | $119 | 119 | $1,297 |
| | | | | | | | | Income
from
Securities
loaned |
| Institutional Fiduciary Trust - Money Market Portfolio, 4.74% | $— | $532,950 | $(532,950) | $— | $— | $— | — | $431 |
| Total Affiliated Securities | $— | $2,838,570 | $(2,838,451) | $— | $— | $119 | 119 | $1,728 |
Franklin FTSE Europe ETF
Non-Controlled Affiliates | | | | | | | | Dividend
Income |
| Institutional Fiduciary Trust - Money Market Portfolio, 4.74% | $— | $2,312,332 | $(2,286,813) | $— | $— | $25,519 | 25,519 | $1,983 |
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FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
3. Transactions with Affiliates (continued)
c. Investments in Affiliated Management Investment Companies (continued)
| | Value at
Beginning
of Period | Purchases | Sales | Realized
Gain (Loss) | Net Change in
Unrealized
Appreciation
(Depreciation) | Value at
End of
Period | Number
of Shares
Held at
End of
Period | Investment
Income |
Franklin FTSE Eurozone ETF
Non-Controlled Affiliates | | | | | | | | Dividend
Income |
| Institutional Fiduciary Trust - Money Market Portfolio, 4.74% | $2 | $341,130 | $(340,302) | $— | $— | $830 | 830 | $147 |
| | | | | | | | | Income
from
Securities
loaned |
| Institutional Fiduciary Trust - Money Market Portfolio, 4.74% | $— | $128,800 | $(128,800) | $— | $— | $— | — | $— |
| Total Affiliated Securities | $2 | $469,930 | $(469,102) | $— | $— | $830 | 830 | $147 |
Franklin FTSE Germany ETF
Non-Controlled Affiliates | | | | | | | | Dividend
Income |
| Institutional Fiduciary Trust - Money Market Portfolio, 4.74% | $— | $597,112 | $(588,575) | $— | $— | $8,537 | 8,537 | $409 |
Franklin FTSE Hong Kong ETF
Non-Controlled Affiliates | | | | | | | | Dividend
Income |
| Institutional Fiduciary Trust - Money Market Portfolio, 4.74% | $— | $213,310 | $(212,850) | $— | $— | $460 | 460 | $110 |
Franklin FTSE India ETF
Non-Controlled Affiliates | | | | | | | | Dividend
Income |
| Institutional Fiduciary Trust - Money Market Portfolio, 4.74% | $— | $123,385,157 | $(108,497,077) | $— | $— | $14,888,080 | 14,888,080 | $79,671 |
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FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
3. Transactions with Affiliates (continued)
c. Investments in Affiliated Management Investment Companies (continued)
| | Value at
Beginning
of Period | Purchases | Sales | Realized
Gain (Loss) | Net Change in
Unrealized
Appreciation
(Depreciation) | Value at
End of
Period | Number
of Shares
Held at
End of
Period | Investment
Income |
Franklin FTSE Japan ETF
Non-Controlled Affiliates | | | | | | | | Dividend
Income |
| Institutional Fiduciary Trust - Money Market Portfolio, 4.74% | $512,091 | $85,051,116 | $(85,533,713) | $— | $— | $29,494 | 29,494 | $64,634 |
| | | | | | | | | Income
from
Securities
loaned |
| Institutional Fiduciary Trust - Money Market Portfolio, 4.74% | $8,014,193 | $3,432,645 | $(10,780,405) | $— | $— | $666,433 | 666,433 | $15,401 |
| Total Affiliated Securities | $8,526,284 | $88,483,761 | $(96,314,118) | $— | $— | $695,927 | 695,927 | $80,035 |
Franklin FTSE Japan Hedged ETF
Non-Controlled Affiliates | | | | | | | | Dividend
Income |
| Institutional Fiduciary Trust - Money Market Portfolio, 4.74% | $14,836 | $4,430,427 | $(3,761,868) | $— | $— | $683,395 | 683,395 | $9,114 |
Franklin FTSE Latin America ETF
Non-Controlled Affiliates | | | | | | | | Dividend
Income |
| Institutional Fiduciary Trust - Money Market Portfolio, 4.74% | $— | $1,646,177 | $(1,644,612) | $— | $— | $1,565 | 1,565 | $886 |
| | | | | | | | | Income
from
Securities
loaned |
| Institutional Fiduciary Trust - Money Market Portfolio, 4.74% | $— | $1,319,960 | $(1,319,960) | $— | $— | $— | — | $343 |
| Total Affiliated Securities | $— | $2,966,137 | $(2,964,572) | $— | $— | $1,565 | 1,565 | $1,229 |
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FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
3. Transactions with Affiliates (continued)
c. Investments in Affiliated Management Investment Companies (continued)
| | Value at
Beginning
of Period | Purchases | Sales | Realized
Gain (Loss) | Net Change in
Unrealized
Appreciation
(Depreciation) | Value at
End of
Period | Number
of Shares
Held at
End of
Period | Investment
Income |
Franklin FTSE Mexico ETF
Non-Controlled Affiliates | | | | | | | | Dividend
Income |
| Institutional Fiduciary Trust - Money Market Portfolio, 4.74% | $— | $668,613 | $(663,052) | $— | $— | $5,561 | 5,561 | $691 |
| | | | | | | | | Income
from
Securities
loaned |
| Institutional Fiduciary Trust - Money Market Portfolio, 4.74% | $46,800 | $443,740 | $(420,540) | $— | $— | $70,000 | 70,000 | $2,343 |
| Total Affiliated Securities | $46,800 | $1,112,353 | $(1,083,592) | $— | $— | $75,561 | 75,561 | $3,034 |
Franklin FTSE Saudi Arabia ETF
Non-Controlled Affiliates | | | | | | | | Dividend
Income |
| Institutional Fiduciary Trust - Money Market Portfolio, 4.74% | $— | $270,696 | $(270,696) | $— | $— | $— | — | $61 |
Franklin FTSE South Korea ETF
Non-Controlled Affiliates | | | | | | | | Dividend
Income |
| Institutional Fiduciary Trust - Money Market Portfolio, 4.74% | $— | $19,249,153 | $(19,196,391) | $— | $— | $52,762 | 52,762 | $7,818 |
Franklin FTSE Switzerland ETF
Non-Controlled Affiliates | | | | | | | | Dividend
Income |
| Institutional Fiduciary Trust - Money Market Portfolio, 4.74% | $— | $1,101,262 | $(1,099,548) | $— | $— | $1,714 | 1,714 | $721 |
Franklin FTSE Taiwan ETF
Non-Controlled Affiliates | | | | | | | | Dividend
Income |
| Institutional Fiduciary Trust - Money Market Portfolio, 4.74% | $— | $4,093,714 | $(3,904,693) | $— | $— | $189,021 | 189,021 | $3,402 |
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FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
3. Transactions with Affiliates (continued)
c. Investments in Affiliated Management Investment Companies (continued)
| | Value at
Beginning
of Period | Purchases | Sales | Realized
Gain (Loss) | Net Change in
Unrealized
Appreciation
(Depreciation) | Value at
End of
Period | Number
of Shares
Held at
End of
Period | Investment
Income |
Franklin FTSE United Kingdom ETF
Non-Controlled Affiliates | | | | | | | | Dividend
Income |
| Institutional Fiduciary Trust - Money Market Portfolio, 4.74% | $— | $17,231,375 | $(17,167,390) | $— | $— | $63,985 | 63,985 | $7,614 |
| | | | | | | | | Income
from
Securities
loaned |
| Institutional Fiduciary Trust - Money Market Portfolio, 4.74% | $— | $3,108,680 | $(3,108,680) | $— | $— | $— | — | $112 |
| Total Affiliated Securities | $— | $20,340,055 | $(20,276,070) | $— | $— | $63,985 | 63,985 | $7,726 |
d. Other Affiliated Transactions
At September 30, 2024, the shares of the Funds were owned by the following entities:
| Funds | Shares | Percentage of
Outstanding Sharesa |
| Franklin FTSE Latin America ETF | | |
| Franklin Resources Inc. | 400,000 | 16.0% |
| aInvestment activities of significant shareholders could have a material impact on the Funds. |
4. Income Taxes
For tax purposes, capital losses may be carried over to offset future capital gains. At March 31, 2024, the capital loss carryforwards were as follows:
| | Franklin
FTSE
Asia ex Japan
ETF | Franklin
FTSE
Australia
ETF | Franklin
FTSE
Brazil
ETF | Franklin
FTSE
Canada
ETF |
| Capital loss carryforwards not subject to expiration: | | | | |
| Long term | $ 4,207,146 | $ 1,149,448 | $ 71,207,677 | $ 3,155,802 |
| Short term | 777,707 | 299,442 | 67,352,971 | 2,161,436 |
| Total capital loss carryforwards | $ 4,984,853 | $ 1,448,890 | $ 138,560,648 | $ 5,317,238 |
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FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
4. Income Taxes (continued)
| | Franklin
FTSE
China
ETF | Franklin
FTSE
Europe
ETF | Franklin
FTSE
Eurozone
ETF | Franklin
FTSE
Germany
ETF |
| Capital loss carryforwards not subject to expiration: | | | | |
| Long term | $ 19,175,033 | $ 4,973,690 | $ 2,824,763 | $ 1,052,499 |
| Short term | 3,762,605 | 946,214 | 792,060 | 209,231 |
| Total capital loss carryforwards | $ 22,937,638 | $ 5,919,904 | $ 3,616,823 | $ 1,261,730 |
| | Franklin
FTSE
Hong Kong
ETF | Franklin
FTSE
India
ETF | Franklin
FTSE
Japan
ETF | Franklin
FTSE
Japan Hedged
ETF |
| Capital loss carryforwards not subject to expiration: | | | | |
| Long term | $ 1,208,639 | $ 849,700 | $ 28,527,589 | $ — |
| Short term | 565,980 | 1,463,953 | 1,503,928 | — |
| Total capital loss carryforwards | $ 1,774,619 | $ 2,313,653 | $ 30,031,517 | $ — |
| | Franklin
FTSE
Latin America
ETF | Franklin
FTSE
Mexico
ETF | Franklin
FTSE
Saudi Arabia
ETF | Franklin
FTSE
South Korea
ETF |
| Capital loss carryforwards not subject to expiration: | | | | |
| Long term | $ 1,071,973 | $ 994,561 | $ 185,125 | $ 12,928,982 |
| Short term | 611,807 | 231,199 | 225,799 | 7,946,977 |
| Total capital loss carryforwards | $ 1,683,780 | $ 1,225,760 | $ 410,924 | $ 20,875,959 |
| | Franklin
FTSE
Switzerland
ETF | Franklin
FTSE
Taiwan
ETF | Franklin
FTSE
United Kingdom
ETF | |
| Capital loss carryforwards not subject to expiration: | | | | |
| Long term | $ 2,102,250 | $ 3,207,883 | $ 17,647,876 | |
| Short term | 724,767 | 292,595 | 6,010,365 | |
| Total capital loss carryforwards | $ 2,827,017 | $ 3,500,478 | $ 23,658,241 | |
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FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
4. Income Taxes (continued)
At September 30, 2024, the cost of investments and net unrealized appreciation (depreciation) for income tax purposes were as follows:
| | Franklin
FTSE
Asia ex Japan
ETF | Franklin
FTSE
Australia
ETF | Franklin
FTSE
Brazil
ETF | Franklin
FTSE
Canada
ETF |
| Cost of investments | $ 27,133,367 | $ 52,755,188 | $ 157,375,430 | $ 361,504,831 |
| Unrealized appreciation | $ 8,424,663 | $ 7,806,550 | $ 26,762,744 | $ 64,865,350 |
| Unrealized depreciation | (5,011,067) | (1,363,618) | (21,758,999) | (14,781,572) |
| Net unrealized appreciation (depreciation) | $ 3,413,596 | $ 6,442,932 | $ 5,003,745 | $ 50,083,778 |
| | Franklin
FTSE
China
ETF | Franklin
FTSE
Europe
ETF | Franklin
FTSE
Eurozone
ETF | Franklin
FTSE
Germany
ETF |
| Cost of investments | $ 155,700,470 | $ 81,062,215 | $ 19,573,644 | $ 28,852,728 |
| Unrealized appreciation | $ 14,207,901 | $ 11,129,576 | $ 3,132,421 | $ 5,049,900 |
| Unrealized depreciation | (30,880,745) | (6,241,036) | (1,319,074) | (2,179,903) |
| Net unrealized appreciation (depreciation) | $ (16,672,844) | $ 4,888,540 | $ 1,813,347 | $ 2,869,997 |
| | Franklin
FTSE
Hong Kong
ETF | Franklin
FTSE
India
ETF | Franklin
FTSE
Japan
ETF | Franklin
FTSE
Japan Hedged
ETF |
| Cost of investments | $ 16,275,146 | $ 1,498,855,190 | $ 1,987,438,575 | $ 69,607,915 |
| Unrealized appreciation | $ 562,309 | $ 386,469,023 | $ 288,242,247 | $ 7,947,665 |
| Unrealized depreciation | (3,201,676) | (23,239,432) | (193,534,741) | (4,634,689) |
| Net unrealized appreciation (depreciation) | $ (2,639,367) | $ 363,229,591 | $ 94,707,506 | $ 3,312,976 |
| | Franklin
FTSE
Latin America
ETF | Franklin
FTSE
Mexico
ETF | Franklin
FTSE
Saudi Arabia
ETF | Franklin
FTSE
South Korea
ETF |
| Cost of investments | $ 46,615,263 | $ 105,386,677 | $ 15,926,766 | $ 120,383,198 |
| Unrealized appreciation | $ 9,418,907 | $ 867,184 | $ 3,194,834 | $ 28,676,165 |
| Unrealized depreciation | (4,344,069) | (11,394,523) | (790,073) | (28,880,890) |
| Net unrealized appreciation (depreciation) | $ 5,074,838 | $ (10,527,339) | $ 2,404,761 | $ (204,725) |
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FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
4. Income Taxes (continued)
| | Franklin
FTSE
Switzerland
ETF | Franklin
FTSE
Taiwan
ETF | Franklin
FTSE
United Kingdom
ETF | |
| Cost of investments | $ 49,295,205 | $ 205,082,041 | $ 658,583,530 | |
| Unrealized appreciation | $ 9,065,423 | $ 71,247,915 | $ 113,000,309 | |
| Unrealized depreciation | (1,704,082) | (5,612,740) | (43,661,892) | |
| Net unrealized appreciation (depreciation) | $ 7,361,341 | $ 65,635,175 | $ 69,338,417 | |
Differences between income and/or capital gains as determined on a book basis and a tax basis are primarily due to differing treatments of foreign currency transactions, passive foreign investment company shares, EU reclaims and in-kind shareholder redemptions.
5. Investment Transactions
Purchases and sales of investments (excluding short term securities and in-kind transactions, if any) for the period ended September 30, 2024, were as follows:
| | Franklin
FTSE
Asia ex Japan
ETF | Franklin
FTSE
Australia
ETF | Franklin
FTSE
Brazil
ETF | Franklin
FTSE
Canada
ETF |
| Purchases | $ 797,648 | $ 1,038,796 | $ 29,203,736 | $ 8,686,432 |
| Sales | $ 6,640,799 | $ 1,028,457 | $ 14,907,498 | $ 7,500,278 |
| | Franklin
FTSE
China
ETF | Franklin
FTSE
Europe
ETF | Franklin
FTSE
Eurozone
ETF | Franklin
FTSE
Germany
ETF |
| Purchases | $ 9,377,034 | $ 3,035,663 | $ 560,993 | $ 605,355 |
| Sales | $ 6,370,555 | $ 2,817,049 | $ 488,971 | $ 676,878 |
| | Franklin
FTSE
Hong Kong
ETF | Franklin
FTSE
India
ETF | Franklin
FTSE
Japan
ETF | Franklin
FTSE
Japan Hedged
ETF |
| Purchases | $ 2,105,861 | $ 737,147,622 | $ 45,434,666 | $ 5,591,082 |
| Sales | $ 433,068 | $ 39,588,569 | $ 97,994,865 | $ 9,303,264 |
| | Franklin
FTSE
Latin America
ETF | Franklin
FTSE
Mexico
ETF | Franklin
FTSE
Saudi Arabia
ETF | Franklin
FTSE
South Korea
ETF |
| Purchases | $ 2,520,196 | $ 3,840,172 | $ 1,688,395 | $ 14,565,922 |
| Sales | $ 7,768,368 | $ 2,966,869 | $ 1,615,932 | $ 181,658,513 |
| | Franklin
FTSE
Switzerland
ETF | Franklin
FTSE
Taiwan
ETF | Franklin
FTSE
United Kingdom
ETF | |
| Purchases | $ 1,783,634 | $ 97,489,359 | $ 32,749,141 | |
| Sales | $ 1,962,178 | $ 66,550,186 | $ 32,058,540 | |
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FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
5. Investment Transactions (continued)
In-kind transactions associated with creation and redemptions for the period ended September 30, 2024, were as follows:
| | Franklin
FTSE
Asia ex Japan
ETF | Franklin
FTSE
Australia
ETF | Franklin
FTSE
Brazil
ETF | Franklin
FTSE
Canada
ETF |
| Cost of Securities Received | $ — | $ 30,638,224 | $ — | $ — |
| Value of Securities Delivereda | $ 3,151,871 | $ 4,420,388 | $ — | $ 29,246,263 |
| | Franklin
FTSE
China
ETF | Franklin
FTSE
Europe
ETF | Franklin
FTSE
Eurozone
ETF | Franklin
FTSE
Germany
ETF |
| Cost of Securities Received | $ 3,004,310 | $ 11,497,564 | $ — | $ 9,767,536 |
| Value of Securities Delivereda | $ 10,301,972 | $ — | $ — | $ — |
| | Franklin
FTSE
Hong Kong
ETF | Franklin
FTSE
India
ETF | Franklin
FTSE
Japan
ETF | Franklin
FTSE
Japan Hedged
ETF |
| Cost of Securities Received | $ 51,335 | $ — | $ 385,979,118 | $ 27,542,785 |
| Value of Securities Delivereda | $ — | $ — | $ 188,917,071 | $ 2,786,851 |
| | Franklin
FTSE
Latin America
ETF | Franklin
FTSE
Mexico
ETF | Franklin
FTSE
Saudi Arabia
ETF | Franklin
FTSE
South Korea
ETF |
| Cost of Securities Received | $ — | $ 83,061,006 | $ — | $ — |
| Value of Securities Delivereda | $ 2,667,809 | $ 18,765,991 | $ — | $ — |
| | Franklin
FTSE
Switzerland
ETF | Franklin
FTSE
Taiwan
ETF | Franklin
FTSE
United Kingdom
ETF | |
| Cost of Securities Received | $ 10,115,904 | $ — | $ 63,963,854 | |
| Value of Securities Delivereda | $ 3,239,499 | $ — | $ 48,109,143 | |
| aRealized gains and losses from in-kind redemptions, as shown on the Statement of Operations, are not recognized by the Funds for tax purposes. |
At September 30, 2024, in connection with securities lending transactions, certain or all Funds loaned investments and received cash collateral as follows:
| | Franklin
FTSE
Australia
ETF | Franklin
FTSE
Japan
ETF | Franklin
FTSE
Mexico
ETF |
| Securities lending transactionsa: | | | |
| Equity Investmentsb | $134,400 | $666,433 | $70,000 |
| aThe agreements can be terminated at any time. |
| bThe gross amount of recognized liability for such transactions is included in payable upon return of securities loaned in the Statements of Assets and Liabilities. |
6. Concentration of Risk
Investing in foreign securities may include certain risks and considerations not typically associated with investing in U.S. securities, such as fluctuating currency values and changing local, regional and global economic, political and social conditions, which may result in greater market volatility. Political and financial uncertainty in many foreign regions may increase
| franklintempleton.com | Semi-Annual Report | 196 |
FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
6. Concentration of Risk (continued)
market volatility and the economic risk of investing in foreign securities. In addition, certain foreign securities may not be as liquid as U.S. securities.
Russia’s military invasion of Ukraine in February 2022, the resulting responses by the United States and other countries, and the potential for wider conflict could increase volatility and uncertainty in the financial markets and adversely affect regional and global economies. The United States and other countries have imposed broad-ranging economic sanctions on Russia and certain Russian individuals, banking entities and corporations as a response to its invasion of Ukraine. The United States and other countries have also imposed economic sanctions on Belarus and may impose sanctions on other countries that support Russia’s military invasion. These sanctions, as well as any other economic consequences related to the invasion, such as additional sanctions, boycotts or changes in consumer or purchaser preferences or cyberattacks on governments, companies or individuals, may further decrease the value and liquidity of certain Russian securities and securities of issuers in other countries that are subject to economic sanctions related to the invasion. To the extent that the Funds have exposure to Russian investments or investments in countries affected by the invasion, the Funds’ ability to price, buy, sell, receive or deliver such investments was impaired. The Funds could determine at any time that certain of the most affected securities have little or no value. In addition, any exposure that the Funds may have to counterparties in Russia or in countries affected by the invasion could negatively impact the Funds’ portfolio. The extent and duration of Russia’s military actions and the repercussions of such actions (including any retaliatory actions or countermeasures that may be taken by those subject to sanctions) are impossible to predict, but could result in significant market disruptions, including in the oil and natural gas markets, and may negatively affect global supply chains, inflation and global growth. These and any related events could significantly impact each Fund’s performance and the value of an investment in the Funds, even beyond any direct exposure the Funds may have to Russian issuers or issuers in other countries affected by the invasion. The Valuation Committee determined that based on their analysis of the market and access to market participants, the Russian financial instruments held by the Franklin FTSE Europe ETF, Franklin FTSE Eurozone ETF and Franklin FTSE United Kingdom ETF had no value at September 30, 2024.
Certain investments in Chinese companies are made through a special structure known as a (VIE). In a VIE structure, foreign investors, such as Franklin FTSE Asia ex Japan ETF & Franklin FTSE China ETF will only own stock in a shell company rather than directly in the VIE, which must be owned by Chinese nationals (and/or Chinese companies) to obtain the licenses and/or assets required to operate in a restricted or prohibited sector in China. The value of the shell company is derived from its ability to consolidate the VIE into its financials pursuant to contractual arrangements that allow the shell company to exert a degree of control over, and obtain economic benefits arising from, the VIE without formal legal ownership. While VIEs are a long standing industry practice and are well known by Chinese officials and regulators, the structure historically has not been formally recognized under Chinese law and it is uncertain whether Chinese officials or regulators will withdraw their implicit acceptance of the structure. It is also uncertain whether the contractual arrangements, which may be subject to conflicts of interest between the legal owners of the VIE and foreign investors, would be enforced by Chinese courts or arbitration bodies. Prohibitions of these structures by the Chinese government, or the inability to enforce such contracts, from which the shell company derives its value, would likely cause the VIE-structured holding(s) to suffer significant, detrimental, and possibly permanent losses, and in turn, adversely affect the Funds’ returns and net asset value.
7. Other Derivative Information
At September 30, 2024, the Funds’ investments in derivative contracts are reflected in the Statements of Asset and Liabilities as follows:
| | Asset Derivatives | | Liability Derivatives |
| | Statements of Assets and
Liabilities Location | Fair Value | | Statements of Assets and
Liabilities Location | Fair Value |
| Franklin FTSE Australia ETF | | | | | |
| Equity contracts | Variation margin on futures contracts | $ 12,270a | | Variation margin on futures contracts | $ — |
| Totals | | $12,270 | | | $— |
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FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
7. Other Derivative Information (continued)
| | Asset Derivatives | | Liability Derivatives |
| | Statements of Assets and
Liabilities Location | Fair Value | | Statements of Assets and
Liabilities Location | Fair Value |
| Franklin FTSE Brazil ETF | | | | | |
| Equity contracts | Variation margin on futures contracts | $ — | | Variation margin on futures contracts | $ 60,262a |
| Totals | | $— | | | $60,262 |
| Franklin FTSE Canada ETF | | | | | |
| Equity contracts | Variation margin on futures contracts | $ 11,922a | | Variation margin on futures contracts | $ — |
| Totals | | $11,922 | | | $— |
| Franklin FTSE China ETF | | | | | |
| Equity contracts | Variation margin on futures contracts | $ 69,501a | | Variation margin on futures contracts | $ — |
| Totals | | $69,501 | | | $— |
| Franklin FTSE Europe ETF | | | | | |
| Equity contracts | Variation margin on futures contracts | $ 21,739a | | Variation margin on futures contracts | $ 1,921a |
| Totals | | $21,739 | | | $1,921 |
| Franklin FTSE Eurozone ETF | | | | | |
| Equity contracts | Variation margin on futures contracts | $ 1,553a | | Variation margin on futures contracts | $ — |
| Totals | | $1,553 | | | $— |
| Franklin FTSE Germany ETF | | | | | |
| Equity contracts | Variation margin on futures contracts | $ 2,705a | | Variation margin on futures contracts | $ — |
| Totals | | $2,705 | | | $— |
| Franklin FTSE Hong Kong ETF | | | | | |
| Equity contracts | Variation margin on futures contracts | $ 6,791a | | Variation margin on futures contracts | $ — |
| Totals | | $6,791 | | | $— |
| Franklin FTSE India ETF | | | | | |
| Equity contracts | Variation margin on futures contracts | $ — | | Variation margin on futures contracts | $ 280,338a |
| Totals | | $— | | | $280,338 |
| Franklin FTSE Japan ETF | | | | | |
| Equity contracts | Variation margin on futures contracts | $ 66,058a | | Variation margin on futures contracts | $ 274,506a |
| Totals | | $66,058 | | | $274,506 |
| Franklin FTSE Japan Hedged ETF | | | | | |
| Foreign exchange contracts | Unrealized appreciation on OTC forward exchange contracts | $ 438 | | Unrealized depreciation on OTC forward exchange contracts | $ 1,007,508 |
| Equity contracts | Variation margin on futures contracts | 43,348a | | Variation margin on futures contracts | 6,855a |
| Totals | | $43,786 | | | $1,014,363 |
| Franklin FTSE Latin America ETF | | | | | |
| Equity contracts | Variation margin on futures contracts | $ 199a | | Variation margin on futures contracts | $ 7,841a |
| Totals | | $199 | | | $7,841 |
| Franklin FTSE Mexico ETF | | | | | |
| Equity contracts | Variation margin on futures contracts | $ — | | Variation margin on futures contracts | $ 25a |
| Totals | | $— | | | $25 |
| Franklin FTSE Switzerland ETF | | | | | |
| Equity contracts | Variation margin on futures contracts | $ 19,713a | | Variation margin on futures contracts | $ — |
| Totals | | $19,713 | | | $— |
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FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
7. Other Derivative Information (continued)
| | Asset Derivatives | | Liability Derivatives |
| | Statements of Assets and
Liabilities Location | Fair Value | | Statements of Assets and
Liabilities Location | Fair Value |
| Franklin FTSE Taiwan ETF | | | | | |
| Equity contracts | Variation margin on futures contracts | $ — | | Variation margin on futures contracts | $ 8,817a |
| Totals | | $— | | | $8,817 |
| Franklin FTSE United Kingdom ETF | | | | | |
| Equity contracts | Variation margin on futures contracts | $ — | | Variation margin on futures contracts | $ 27,854a |
| Totals | | $— | | | $27,854 |
| aThis amount reflects the cumulative appreciation (depreciation) of future contracts as reported in the Schedule of Investments. Only the variation margin receivable/payable at period end is separately reported within the Statements of Assets and Liabilities. Prior variation margin movements were recorded to cash upon receipt or payment. |
For the period ended September 30, 2024, the effect of derivative contracts in the Funds’ Statements of Operations was as follows:
Derivative Contracts
Not Accounted for as
Hedging Instruments | Statements of
Operations Locations | Net Realized
Gain (Loss)
for the Period | Statements of
Operations Locations | Net Change in
Unrealized
Appreciation
(Depreciation)
for the Period |
| Franklin FTSE Asia ex Japan ETF | | | | |
| | Net realized gain (loss) from: | | Net change in unrealized
appreciation (depreciation) on: | |
| Equity contracts | Futures contracts | $ (1,123) | Futures contracts | $ 73 |
| Franklin FTSE Australia ETF | | | | |
| | Net realized gain (loss) from: | | Net change in unrealized
appreciation (depreciation) on: | |
| Equity contracts | Futures contracts | $ 18,311 | Futures contracts | $ 1,754 |
| Franklin FTSE Brazil ETF | | | | |
| | Net realized gain (loss) from: | | Net change in unrealized
appreciation (depreciation) on: | |
| Equity contracts | Futures contracts | $ (25,080) | Futures contracts | $ (53,792) |
| Franklin FTSE Canada ETF | | | | |
| | Net realized gain (loss) from: | | Net change in unrealized
appreciation (depreciation) on: | |
| Equity contracts | Futures contracts | $ 101,717 | Futures contracts | $ (8,426) |
| Franklin FTSE China ETF | | | | |
| | Net realized gain (loss) from: | | Net change in unrealized
appreciation (depreciation) on: | |
| Foreign exchange contracts | Forward exchange contracts | $ (13,142) | Forward exchange contracts | $ — |
| Equity contracts | Futures contracts | (94,853) | Futures contracts | 69,709 |
| Totals | | $(107,995) | | $69,709 |
| Franklin FTSE Europe ETF | | | | |
| | Net realized gain (loss) from: | | Net change in unrealized
appreciation (depreciation) on: | |
| Equity contracts | Futures contracts | $ (5,372) | Futures contracts | $ (17,693) |
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FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
7. Other Derivative Information (continued)
Derivative Contracts
Not Accounted for as
Hedging Instruments | Statements of
Operations Locations | Net Realized
Gain (Loss)
for the Period | Statements of
Operations Locations | Net Change in
Unrealized
Appreciation
(Depreciation)
for the Period |
| Franklin FTSE Eurozone ETF | | | | |
| | Net realized gain (loss) from: | | Net change in unrealized
appreciation (depreciation) on: | |
| Equity contracts | Futures contracts | $ (2,262) | Futures contracts | $ (405) |
| Franklin FTSE Germany ETF | | | | |
| | Net realized gain (loss) from: | | Net change in unrealized
appreciation (depreciation) on: | |
| Equity contracts | Futures contracts | $ 3,348 | Futures contracts | $ 2,705 |
| Franklin FTSE Hong Kong ETF | | | | |
| | Net realized gain (loss) from: | | Net change in unrealized
appreciation (depreciation) on: | |
| Equity contracts | Futures contracts | $ 10,829 | Futures contracts | $ 6,835 |
| Franklin FTSE India ETF | | | | |
| | Net realized gain (loss) from: | | Net change in unrealized
appreciation (depreciation) on: | |
| Equity contracts | Futures contracts | $ 3,282,856 | Futures contracts | $ (298,007) |
| Franklin FTSE Japan ETF | | | | |
| | Net realized gain (loss) from: | | Net change in unrealized
appreciation (depreciation) on: | |
| Equity contracts | Futures contracts | $ (1,098,699) | Futures contracts | $ (222,619) |
| Franklin FTSE Japan Hedged ETF | | | | |
| | Net realized gain (loss) from: | | Net change in unrealized
appreciation (depreciation) on: | |
| Foreign exchange contracts | Forward exchange contracts | $ (3,341,147) | Forward exchange contracts | $ (1,776,080) |
| Equity contracts | Futures contracts | (58,304) | Futures contracts | 35,846 |
| Totals | | $(3,399,451) | | $(1,740,234) |
| Franklin FTSE Latin America ETF | | | | |
| | Net realized gain (loss) from: | | Net change in unrealized
appreciation (depreciation) on: | |
| Foreign exchange contracts | Forward exchange contracts | $ 88 | Forward exchange contracts | $ — |
| Equity contracts | Futures contracts | (69,168) | Futures contracts | (13,250) |
| Totals | | $(69,080) | | $(13,250) |
| Franklin FTSE Mexico ETF | | | | |
| | Net realized gain (loss) from: | | Net change in unrealized
appreciation (depreciation) on: | |
| Equity contracts | Futures contracts | $ (15,149) | Futures contracts | $ (25) |
| Franklin FTSE Saudi Arabia ETF | | | | |
| | Net realized gain (loss) from: | | Net change in unrealized
appreciation (depreciation) on: | |
| Foreign exchange contracts | Forward exchange contracts | $ (132) | Forward exchange contracts | $ — |
| Equity contracts | Futures contracts | (5,667) | Futures contracts | — |
| Totals | | $(5,799) | | $— |
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FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
7. Other Derivative Information (continued)
Derivative Contracts
Not Accounted for as
Hedging Instruments | Statements of
Operations Locations | Net Realized
Gain (Loss)
for the Period | Statements of
Operations Locations | Net Change in
Unrealized
Appreciation
(Depreciation)
for the Period |
| Franklin FTSE South Korea ETF | | | | |
| | Net realized gain (loss) from: | | Net change in unrealized
appreciation (depreciation) on: | |
| Equity contracts | Futures contracts | $ (13,799) | Futures contracts | $ (121,465) |
| Franklin FTSE Switzerland ETF | | | | |
| | Net realized gain (loss) from: | | Net change in unrealized
appreciation (depreciation) on: | |
| Equity contracts | Futures contracts | $ 29,810 | Futures contracts | $ 16,783 |
| Franklin FTSE Taiwan ETF | | | | |
| | Net realized gain (loss) from: | | Net change in unrealized
appreciation (depreciation) on: | |
| Foreign exchange contracts | Forward exchange contracts | $ 51,091 | Forward exchange contracts | $ — |
| Equity contracts | Futures contracts | (156,232) | Futures contracts | (35,913) |
| Totals | | $(105,141) | | $(35,913) |
| Franklin FTSE United Kingdom ETF | | | | |
| | Net realized gain (loss) from: | | Net change in unrealized
appreciation (depreciation) on: | |
| Equity contracts | Futures contracts | $ 302,671 | Futures contracts | $ (193,047) |
For the period ended September 30, 2024, the average month end notional amount of futures contracts and average month end contract value for forward exchange contracts were as follows:
| | Franklin
FTSE
Asia ex Japan
ETF | Franklin
FTSE
Australia
ETF | Franklin
FTSE
Brazil
ETF | Franklin
FTSE
Canada
ETF |
| Futures contracts | $ 63,504 | $ 311,062 | $ 3,107,431 | $ 1,218,404 |
| | Franklin
FTSE
China
ETF | Franklin
FTSE
Europe
ETF | Franklin
FTSE
Eurozone
ETF | Franklin
FTSE
Germany
ETF |
| Futures contracts | $ 454,713 | $ 1,179,574 | $ 84,461 | $ 86,788 |
| Forward exchange contracts | $ 2,037,040 | $ — | $ — | $ — |
| | Franklin
FTSE
Hong Kong
ETF | Franklin
FTSE
India
ETF | Franklin
FTSE
Japan
ETF | Franklin
FTSE
Japan Hedged
ETF |
| Futures contracts | $ 50,441 | $ 19,267,616 | $ 12,440,501 | $ 655,346 |
| Forward exchange contracts | $ — | $ — | $ — | $ 174,689,981 |
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FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
7. Other Derivative Information (continued)
| | Franklin
FTSE
Latin America
ETF | Franklin
FTSE
Mexico
ETF | Franklin
FTSE
Saudi Arabia
ETF | Franklin
FTSE
South Korea
ETF |
| Futures contracts | $ 791,573 | $ 158,135 | $ 60,793 | $ 1,072,989 |
| Forward exchange contracts | $ 423 | $ — | $ 11,856 | $ — |
| | Franklin
FTSE
Switzerland
ETF | Franklin
FTSE
Taiwan
ETF | Franklin
FTSE
United Kingdom
ETF | |
| Futures contracts | $ 1,175,722 | $ 1,668,821 | $ 3,939,204 | |
At September 30, 2024, the Funds’ OTC derivative assets and liabilities are as follows:
| | Gross and Net Amounts of
Assets and Liabilities
Presented in the
Statements of
Assets and Liabilities |
| | Assetsa | Liabilitiesa |
| Franklin FTSE Japan Hedged ETF | | |
| Foreign exchange contracts | $438 | $1,007,508 |
| aAbsent an event of default or early termination, OTC derivative assets and liabilities are presented gross and not offset in the Statements of Assets and Liabilities. |
At September 30, 2024, the Funds’ OTC derivative assets, which may be offset against the Funds’ OTC derivative liabilities and collateral received from the counterparty, are as follows:
| | | Amounts Not Offset in the
Statements of Assets and Liabilities | |
| | Gross and Net Amounts
of Assets Presented in
the Statements of
Assets and Liabilities | Financial
Instruments
Available for Offset | Financial
Instruments
Collateral
Receiveda | Cash
Collateral
Receiveda | Net Amount (Not
less than zero) |
Franklin FTSE Japan Hedged ETF
Counterparty | | | | | |
| BOFA | $ 146 | $ (146) | $ — | $ — | $ — |
| UBSW | 292 | (292) | — | — | — |
| Total | $438 | $(438) | $— | $— | $— |
| aIn some instances, the collateral amounts disclosed in the table above were adjusted due to the requirement to limit collateral amounts to avoid the effect of overcollateralization. Actual collateral received and/or pledged may be more than the amounts disclosed herein. |
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FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
7. Other Derivative Information (continued)
At September 30, 2024, the Funds’ OTC derivative liabilities, which may be offset against the Funds’ OTC derivative assets and collateral pledged to the counterparty, are as follows:
| | | Amounts Not Offset in the
Statements of Assets and Liabilities | |
| | Gross and Net Amounts
of Liabilities Presented in
the Statements of
Assets and Liabilities | Financial
Instruments
Available for Offset | Financial
Instruments
Collateral
Pledgeda | Cash
Collateral
Pledgeda | Net Amount (Not
less than zero) |
Franklin FTSE Japan Hedged ETF
Counterparty | | | | | |
| BOFA | $ 201,012 | $ (146) | $ — | $ — | $ 200,866 |
| SSBT | 402,642 | — | — | — | 402,642 |
| UBSW | 403,854 | (292) | — | — | 403,562 |
| Total | $1,007,508 | $(438) | $— | $— | $1,007,070 |
| aIn some instances, the collateral amounts disclosed in the table above were adjusted due to the requirement to limit collateral amounts to avoid the effect of overcollateralization. Actual collateral received and/or pledged may be more than the amounts disclosed herein. |
See Note 1(c) regarding derivative financial instruments.
8. Fair Value Measurements
The Funds follow a fair value hierarchy that distinguishes between market data obtained from independent sources (observable inputs) and the Funds’ own market assumptions (unobservable inputs). These inputs are used in determining the value of the Funds financial instruments and are summarized in the following fair value hierarchy:
| • | Level 1 – quoted prices in active markets for identical financial instruments |
| • | Level 2 – other significant observable inputs (including quoted prices for similar financial instruments, interest rates, prepayment speed, credit risk, etc.) |
| • | Level 3 – significant unobservable inputs (including the Funds’ own assumptions in determining the fair value of financial instruments) |
The input levels are not necessarily an indication of the risk or liquidity associated with financial instruments at that level.
A summary of inputs used as of September 30, 2024, in valuing the Funds’ assets and liabilities carried at fair value, is as follows:
| | Level 1 | Level 2 | Level 3 | Total |
| Franklin FTSE Asia ex Japan ETF | | | | |
| Assets: | | | | |
| Investments in Securities:a | | | | |
| Equity Investmentsb | $ 30,528,937 | $ — | $ 17,967c | $ 30,546,904 |
| Short-Term Investments | 59 | — | — | 59 |
| Total Investments in Securities | $30,528,996 | $— | $17,967 | $30,546,963 |
| Franklin FTSE Australia ETF | | | | |
| Assets: | | | | |
| Investments in Securities:a | | | | |
| Equity Investmentsb | $ 59,060,593 | $ — | $ — | $ 59,060,593 |
| Short-Term Investments | 137,527 | — | — | 137,527 |
| Total Investments in Securities | $59,198,120 | $— | $— | $59,198,120 |
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FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
8. Fair Value Measurements (continued)
| | Level 1 | Level 2 | Level 3 | Total |
| Franklin FTSE Australia ETF (continued) | | | | |
| Other Financial Instruments: | | | | |
| Futures Contracts | $ 12,270 | $ — | $ — | $ 12,270 |
| Franklin FTSE Brazil ETF | | | | |
| Assets: | | | | |
| Investments in Securities:a | | | | |
| Equity Investmentsb | $ 162,003,079 | $ 154,920 | $ — | $ 162,157,999 |
| Short-Term Investments | 221,176 | — | — | 221,176 |
| Total Investments in Securities | $162,224,255 | $154,920 | $— | $162,379,175 |
| Liabilities: | | | | |
| Other Financial Instruments: | | | | |
| Futures Contracts | $ 60,262 | $ — | $ — | $ 60,262 |
| Franklin FTSE Canada ETF | | | | |
| Assets: | | | | |
| Investments in Securities:a | | | | |
| Time Deposits | $ — | $ 485,584 | $ — | $ 485,584 |
| Equity Investmentsb | 411,072,084 | — | —c | 411,072,084 |
| Short-Term Investments | 30,941 | — | — | 30,941 |
| Total Investments in Securities | $411,103,025 | $485,584 | $— | $411,588,609 |
| Other Financial Instruments: | | | | |
| Futures Contracts | $ 11,922 | $ — | $ — | $ 11,922 |
| Franklin FTSE China ETF | | | | |
| Assets: | | | | |
| Investments in Securities:a | | | | |
| Equity Investmentsb | $ 138,777,835 | $ — | $ 249,672c | $ 139,027,507 |
| Short-Term Investments | 119 | — | — | 119 |
| Total Investments in Securities | $138,777,954 | $— | $249,672 | $139,027,626 |
| Other Financial Instruments: | | | | |
| Futures Contracts | $ 69,501 | $ — | $ — | $ 69,501 |
| Franklin FTSE Europe ETF | | | | |
| Assets: | | | | |
| Investments in Securities:a | | | | |
| Equity Investmentsb | $ 85,880,456 | $ 44,780 | $ —c | $ 85,925,236 |
| Short-Term Investments | 25,519 | — | — | 25,519 |
| Total Investments in Securities | $85,905,975 | $44,780 | $— | $85,950,755 |
| Other Financial Instruments: | | | | |
| Futures Contracts | $ 21,739 | $ — | $ — | $ 21,739 |
| Liabilities: | | | | |
| Other Financial Instruments: | | | | |
| Futures Contracts | $ 1,921 | $ — | $ — | $ 1,921 |
| Franklin FTSE Eurozone ETF | | | | |
| Assets: | | | | |
| Investments in Securities:a | | | | |
| Equity Investmentsb | $ 21,363,416 | $ 22,745 | $ —c | $ 21,386,161 |
| Short-Term Investments | 830 | — | — | 830 |
| Total Investments in Securities | $21,364,246 | $22,745 | $— | $21,386,991 |
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FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
8. Fair Value Measurements (continued)
| | Level 1 | Level 2 | Level 3 | Total |
| Franklin FTSE Eurozone ETF (continued) | | | | |
| Other Financial Instruments: | | | | |
| Futures Contracts | $ 1,553 | $ — | $ — | $ 1,553 |
| Franklin FTSE Germany ETF | | | | |
| Assets: | | | | |
| Investments in Securities:a | | | | |
| Equity Investmentsb | $ 31,714,188 | $ — | $ — | $ 31,714,188 |
| Short-Term Investments | 8,537 | — | — | 8,537 |
| Total Investments in Securities | $31,722,725 | $— | $— | $31,722,725 |
| Other Financial Instruments: | | | | |
| Futures Contracts | $ 2,705 | $ — | $ — | $ 2,705 |
| Franklin FTSE Hong Kong ETF | | | | |
| Assets: | | | | |
| Investments in Securities:a | | | | |
| Equity Investmentsb | $ 13,635,319 | $ — | $ — | $ 13,635,319 |
| Short-Term Investments | 460 | — | — | 460 |
| Total Investments in Securities | $13,635,779 | $— | $— | $13,635,779 |
| Other Financial Instruments: | | | | |
| Futures Contracts | $ 6,791 | $ — | $ — | $ 6,791 |
| Franklin FTSE India ETF | | | | |
| Assets: | | | | |
| Investments in Securities:a | | | | |
| Equity Investmentsb | $ 1,847,196,701 | $ — | $ — | $ 1,847,196,701 |
| Short-Term Investments | 14,888,080 | — | — | 14,888,080 |
| Total Investments in Securities | $1,862,084,781 | $— | $— | $1,862,084,781 |
| Liabilities: | | | | |
| Other Financial Instruments: | | | | |
| Futures Contracts | $ 280,338 | $ — | $ — | $ 280,338 |
| Franklin FTSE Japan ETF | | | | |
| Assets: | | | | |
| Investments in Securities:a | | | | |
| Equity Investmentsb | $ 2,081,450,154 | $ — | $ — | $ 2,081,450,154 |
| Short-Term Investments | 695,927 | — | — | 695,927 |
| Total Investments in Securities | $2,082,146,081 | $— | $— | $2,082,146,081 |
| Other Financial Instruments: | | | | |
| Futures Contracts | $ 66,058 | $ — | $ — | $ 66,058 |
| Liabilities: | | | | |
| Other Financial Instruments: | | | | |
| Futures Contracts | $ 274,506 | $ — | $ — | $ 274,506 |
| Franklin FTSE Japan Hedged ETF | | | | |
| Assets: | | | | |
| Investments in Securities:a | | | | |
| Equity Investmentsb | $ 72,237,496 | $ — | $ — | $ 72,237,496 |
| Short-Term Investments | 683,395 | — | — | 683,395 |
| Total Investments in Securities | $72,920,891 | $— | $— | $72,920,891 |
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FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
8. Fair Value Measurements (continued)
| | Level 1 | Level 2 | Level 3 | Total |
| Franklin FTSE Japan Hedged ETF (continued) | | | | |
| Other Financial Instruments: | | | | |
| Forward Exchange Contracts | $ — | $ 438 | $ — | $ 438 |
| Futures Contracts | 43,348 | — | — | 43,348 |
| Total Other Financial Instruments | $43,348 | $438 | $— | $43,786 |
| Liabilities: | | | | |
| Other Financial Instruments: | | | | |
| Forward Exchange Contracts | $ — | $ 1,007,508 | $ — | $ 1,007,508 |
| Futures Contracts | 6,855 | — | — | 6,855 |
| Total Other Financial Instruments | $6,855 | $1,007,508 | $— | $1,014,363 |
| Franklin FTSE Latin America ETF | | | | |
| Assets: | | | | |
| Investments in Securities:a | | | | |
| Equity Investmentsb | $ 51,465,227 | $ 29,518 | $ 193,791 | $ 51,688,536 |
| Short-Term Investments | 1,565 | — | — | 1,565 |
| Total Investments in Securities | $51,466,792 | $29,518 | $193,791 | $51,690,101 |
| Other Financial Instruments: | | | | |
| Futures Contracts | $ 199 | $ — | $ — | $ 199 |
| Liabilities: | | | | |
| Other Financial Instruments: | | | | |
| Futures Contracts | $ 7,841 | $ — | $ — | $ 7,841 |
| Franklin FTSE Mexico ETF | | | | |
| Assets: | | | | |
| Investments in Securities:a | | | | |
| Equity Investmentsb | $ 93,319,177 | $ — | $ 1,464,600 | $ 94,783,777 |
| Short-Term Investments | 75,561 | — | — | 75,561 |
| Total Investments in Securities | $93,394,738 | $— | $1,464,600 | $94,859,338 |
| Liabilities: | | | | |
| Other Financial Instruments: | | | | |
| Futures Contracts | $ 25 | $ — | $ — | $ 25 |
| Franklin FTSE Saudi Arabia ETF | | | | |
| Assets: | | | | |
| Investments in Securities:a | | | | |
| Equity Investmentsb | $ 18,331,527 | $ — | $ — | $ 18,331,527 |
| Franklin FTSE South Korea ETF | | | | |
| Assets: | | | | |
| Investments in Securities:a | | | | |
| Equity Investmentsb | $ 120,125,711 | $ — | $ — | $ 120,125,711 |
| Short-Term Investments | 52,762 | — | — | 52,762 |
| Total Investments in Securities | $120,178,473 | $— | $— | $120,178,473 |
| Franklin FTSE Switzerland ETF | | | | |
| Assets: | | | | |
| Investments in Securities:a | | | | |
| Equity Investmentsb | $ 56,654,832 | $ — | $ — | $ 56,654,832 |
| Short-Term Investments | 1,714 | — | — | 1,714 |
| Total Investments in Securities | $56,656,546 | $— | $— | $56,656,546 |
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FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
8. Fair Value Measurements (continued)
| | Level 1 | Level 2 | Level 3 | Total |
| Franklin FTSE Switzerland ETF (continued) | | | | |
| Other Financial Instruments: | | | | |
| Futures Contracts | $ 19,713 | $ — | $ — | $ 19,713 |
| Franklin FTSE Taiwan ETF | | | | |
| Assets: | | | | |
| Investments in Securities:a | | | | |
| Equity Investmentsb | $ 270,528,195 | $ — | $ — | $ 270,528,195 |
| Short-Term Investments | 189,021 | — | — | 189,021 |
| Total Investments in Securities | $270,717,216 | $— | $— | $270,717,216 |
| Liabilities: | | | | |
| Other Financial Instruments: | | | | |
| Futures Contracts | $ 8,817 | $ — | $ — | $ 8,817 |
| Franklin FTSE United Kingdom ETF | | | | |
| Assets: | | | | |
| Investments in Securities:a | | | | |
| Equity Investmentsb | $ 727,857,962 | $ — | $ —c | $ 727,857,962 |
| Short-Term Investments | 63,985 | — | — | 63,985 |
| Total Investments in Securities | $727,921,947 | $— | $— | $727,921,947 |
| Liabilities: | | | | |
| Other Financial Instruments: | | | | |
| Futures Contracts | $ 27,854 | $ — | $ — | $ 27,854 |
| aFor detailed categories, see the accompanying Schedules of Investments. |
| bIncludes common and preferred stocks, warrants, as well as other equity investments. |
| cIncludes financial instruments determined to have no value. |
9. Subsequent Events
The Funds have evaluated subsequent events through the issuance of the financial statements and determined that no events have occurred that require disclosure.
Abbreviations
| Selected Portfolio |
| ADR | American Depositary Receipt |
| CDI | Clearing House Electronic Subregister System Depositary Interest |
| NVDR | Non-Voting Depositary Receipt |
| REIT | Real Estate Investment Trust |
| SF | Single Family |
| SPA | Standby Purchase Agreement |
| SRF | State Revolving Fund |
| Counterparty |
| BOFA | Bank of America Corp. |
| SSBT | State Street Bank & Trust Co. |
| UBSW | UBS AG |
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| Changes In and Disagreements With Accountants | For the period covered in the report |
Not Applicable.
| Results of Meeting of Shareholders | For the period covered in the report |
Not Applicable.
| Remuneration Paid to Directors, Officers, and Others | For the period covered in the report |
Not applicable. Remuneration paid to directors, officers and others is included as part of the all-inclusive management fee and not paid directly by the fund.
| franklintempleton.com | Semi-Annual Report | 208 |
| Board Approval of Management and Subadvisory Agreements | For the period covered in the report |
FRANKLIN TEMPLETON ETF TRUST
Franklin FTSE Asia ex Japan ETF
Franklin FTSE Australia ETF
Franklin FTSE Brazil ETF
Franklin FTSE Canada ETF
Franklin FTSE China ETF
Franklin FTSE Europe ETF
Franklin FTSE Eurozone ETF
Franklin FTSE Germany ETF
Franklin FTSE Hong Kong ETF
Franklin FTSE India ETF
Franklin FTSE Japan ETF
Franklin FTSE Japan Hedged ETF
Franklin FTSE Latin America ETF
Franklin FTSE Mexico ETF
Franklin FTSE Saudi Arabia ETF
Franklin FTSE South Korea ETF
Franklin FTSE Switzerland ETF
Franklin FTSE Taiwan ETF
Franklin FTSE United Kingdom ETF
(each a Fund)
At an in-person meeting held on May 29, 2024 (Meeting), the Board of Trustees (Board) of Franklin Templeton ETF Trust (Trust), including a majority of the trustees who are not “interested persons” as defined in the Investment Company Act of 1940 (Independent Trustees), reviewed and approved the continuance of the investment management agreement between Franklin Advisory Services, LLC (Manager) and the Trust, on behalf of each Fund (each a Management Agreement) for an additional one-year period. The Independent Trustees received advice from and met separately with Independent Trustee counsel in considering whether to approve the continuation of each Management Agreement. Although the Management Agreements for the Funds were considered at the same Board meeting, the Board considered the information provided to it about the Funds together and with respect to each Fund separately as the Board deemed appropriate. The Board also considered that it had previously approved a new investment sub-advisory agreement between the Manager and Franklin Templeton Institutional, LLC, on behalf of each Fund, that was effective September 11, 2023, for an initial two-year term.
In considering the continuation of each Management Agreement, the Board reviewed and considered information provided by the Manager at the Meeting and throughout the year at meetings of the Board and its committees. The Board also reviewed and considered information provided in response to a detailed set of requests for information submitted to the Manager by Independent Trustee counsel on behalf of the Independent Trustees in connection with the annual contract renewal process. In addition, prior to the Meeting, the Independent Trustees held a virtual contract renewal meeting at which the Independent Trustees first conferred amongst themselves and Independent Trustee counsel about contract renewal matters, and then met with management to request additional information that the Independent Trustees reviewed and considered prior to and at the Meeting. The Board reviewed and considered all of the factors it deemed relevant in approving the continuance of each Management Agreement, including, but not limited to: (i) the nature, extent and quality of the services provided by the Manager; (ii) each Fund’s tracking error against a specified benchmark index as of a recent period; (iii) the costs of the services provided and profits realized by the Manager and its affiliates from the relationship with each Fund; (iv) the extent to which economies of scale are realized as each Fund grows; and (v) whether fee levels reflect these economies of scale for the benefit of Fund investors.
In approving the continuance of each Management Agreement, the Board, including a majority of the Independent Trustees, determined, through the exercise of its business judgment, that the terms of each Management Agreement are fair and reasonable and that the continuance of the Management Agreement is in the best interests of the applicable Fund and its
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| Board Approval of Management and Subadvisory Agreements | For the period covered in the report (continued) |
shareholders. While attention was given to all information furnished, the following discusses some primary factors relevant to the Board’s determination.
Nature, Extent and Quality of Service
The Board reviewed and considered information regarding the nature, extent and quality of investment management services provided by the Manager and its affiliates to the Funds and their shareholders. This information included, among other things, the qualifications, background and experience of the senior management and investment personnel of the Manager, as well as information on succession planning where appropriate; the structure of investment personnel compensation; oversight of third-party service providers; investment performance reports and related financial information for each Fund; reports on expenses and shareholder services; legal and compliance matters; risk controls; pricing and other services provided by the Manager and its affiliates; and management fees charged by the Manager and its affiliates to US funds and other accounts, including management’s explanation of differences among accounts where relevant. The Board acknowledged the ongoing integration of the Putnam family of funds into the Franklin Templeton (FT) family of funds and management’s continued development of strategies to address areas of heightened concern in the registered fund industry, including various regulatory initiatives and continuing geopolitical concerns.
The Board also reviewed and considered the benefits provided to Fund shareholders of investing in a fund that is part of the FT family of funds. The Board noted the financial position of Franklin Resources, Inc. (FRI), the Manager’s parent, and its commitment to the registered fund business as evidenced by its continued introduction of new funds, reassessment of the fund offerings in response to FT acquisitions and the market environment, as well as project initiatives and capital investments relating to the services provided to the Funds by the FT organization. The Board specifically noted FT’s commitment to technological innovation and advancement, including its initiative to create a new enterprise-wide artificial intelligence platform.
Following consideration of such information, the Board was satisfied with the nature, extent and quality of services provided by the Manager and its affiliates to the Funds and their shareholders.
Fund Performance
The Board noted that, in light of the Funds’ use of a “passive” or indexing investment approach, management evaluates each Fund based on its tracking error against a specified benchmark. The Board also noted that management did not provide peer fund performance analyses typically prepared by Broadridge Financial Solutions, Inc. (Broadridge), an independent provider of investment company data, as the Funds are pure-index exchange-traded funds as opposed to active or smart beta funds. The Board referenced earlier discussions with management on matters related to, among other things, the expansion and rationalization of the overall product line, including investments in novel asset classes, as well as the growth in assets from internal and external clients. In addition, the Board acknowledged information provided regarding management’s strategy to grow market share through the use of innovative data and technology and investments in marketing and distribution. The Board noted management’s high level of client engagement and the strength of its internal audit and compliance program.
The Board then noted that for the one-year period ended December 31, 2023, each Fund’s tracking error was within the tolerance anticipated for such Fund, except that the tracking error for the Franklin FTSE Asia ex Japan ETF was 29.8 basis points outside the tolerance anticipated for this Fund, the Franklin FTSE Brazil ETF was 4.2 basis points outside the tolerance anticipated for this Fund, the Franklin FTSE Europe ETF was 35.7 basis points outside the tolerance anticipated for this Fund, the Franklin FTSE Germany ETF was 9.2 basis points outside the tolerance anticipated for this Fund, the Franklin FTSE India ETF was 423.9 basis points outside the tolerance anticipated for this Fund, the Franklin FTSE Latin America ETF was 12.4 basis points outside the tolerance anticipated for this Fund, the Franklin FTSE Saudi Arabia ETF was 11.7 basis points outside the tolerance anticipated for this Fund, the Franklin FTSE South Korea ETF was 1.2 basis points outside the tolerance anticipated for this Fund and the Franklin FTSE Switzerland ETF was 8.8 basis points outside the tolerance anticipated for this Fund. The Board discussed the tracking error of the Funds with management and management explained that, for each of the Franklin FTSE Asia ex Japan ETF and the Franklin FTSE India ETF, the Fund’s tracking error was outside the tolerance anticipated due, in part, to taxes and fees. Management further explained that, for each of the Franklin FTSE Brazil ETF and the Franklin FTSE Latin America ETF, the Fund’s tracking error was outside the tolerance anticipated due, in part, to fees and cash drag from Bovespa futures exposure. Management further explained that, for the Franklin FTSE Europe ETF, the Fund’s tracking error was outside the tolerance anticipated due, in part, to a tax advantage due to the recovery of withholding taxes
| franklintempleton.com | Semi-Annual Report | 210 |
| Board Approval of Management and Subadvisory Agreements | For the period covered in the report (continued) |
and fees. Management further explained that, for the Franklin FTSE Germany ETF, the Fund’s tracking error was outside the tolerance anticipated due, in part, to a tax advantage due to a lower withholding tax rate than its index. Management further explained that, for the Franklin FTSE Saudi Arabia ETF, the Fund’s tracking error was outside the tolerance anticipated due, in part, to fees. Management further explained that, for the Franklin FTSE South Korea ETF, the Fund’s tracking error was outside the tolerance anticipated due, in part, to fees and a tax advantage. Management further explained that, for the Franklin FTSE Switzerland ETF, the Fund’s tracking error was outside the tolerance anticipated due, in part, to a tax advantage due to withholding tax reclaims and a lower withholding tax rate than its index. The Board also considered the repositioning of the Franklin FTSE Eurozone ETF which, effective August 1, 2023, changed its name, ticker, underlying index, investment universe, investment goal and investment strategies to provide passive Eurozone equity exposure to investors.
Comparative Fees and Expenses
The Board reviewed and considered information regarding each Fund’s actual total expense ratio, noting that each Fund pays a Unified Fee (as defined below). The Board considered the actual total expense ratio and, separately, the contractual management fee rate, without the effect of fee waivers, if any (Management Rate), of each Fund in comparison to the median expense ratio and median Management Rate, respectively, of other exchange-traded funds deemed comparable to and with a similar expense structure to the Fund selected by Broadridge (Expense Group). Broadridge fee and expense data is based upon information taken from each fund’s most recent annual or semi-annual report, which reflects historical asset levels that may be quite different from those currently existing, particularly in a period of market volatility. While recognizing such inherent limitation and the fact that expense ratios and Management Rates generally increase as assets decline and decrease as assets grow, the Board believed the independent analysis conducted by Broadridge to be an appropriate measure of comparative fees and expenses. The Broadridge Management Rate includes administrative charges. The Board received a description of the methodology used by Broadridge to select the exchange-traded funds included in an Expense Group. The Expense Group for each Fund was as follows:
| • | The Expense Group for the Franklin FTSE Asia ex Japan ETF was comprised of pure index exchange-traded funds, which included the Fund and two other Pacific ex-Japan funds. |
| • | The Expense Group for the Franklin FTSE Australia ETF was comprised of pure index exchange-traded funds, which included the Fund and one other Pacific region fund. |
| • | The Expense Group for the Franklin FTSE Brazil ETF was comprised of pure index exchange-traded funds, which included the Fund and two other Latin American funds. |
| • | The Expense Group for the Franklin FTSE Canada ETF was comprised of pure index exchange-traded funds, which included the Fund and two other international large-cap core funds. |
| • | The Expense Group for the Franklin FTSE China ETF was comprised of pure index exchange-traded funds, which included the Fund and seven other China region funds. |
| • | The Expense Group for the Franklin FTSE Europe ETF was comprised of pure index exchange-traded funds, which included the Fund and four other European region funds. |
| • | The Expense Group for the Franklin FTSE Eurozone ETF was comprised of pure index exchange-traded funds, which included the Fund and three other European region funds. |
| • | The Expense Group for the Franklin FTSE Germany ETF was comprised of pure index exchange-traded funds, which included the Fund and two other European region funds. |
| • | The Expense Group for the Franklin FTSE Hong Kong ETF was comprised of pure index exchange-traded funds, which included the Fund and one other China region fund. |
| • | The Expense Group for the Franklin FTSE India ETF was comprised of pure index exchange-traded funds, which included the Fund and four other India region funds. |
| • | The Expense Group for the Franklin FTSE Japan ETF was comprised of pure index exchange-traded funds, which included the Fund and two other Japanese funds. |
| • | The Expense Group for the Franklin FTSE Japan Hedged ETF was comprised of pure index exchange-traded funds, which included the Fund and two other Japanese funds. |
| 211 | Semi-Annual Report | franklintempleton.com |
| Board Approval of Management and Subadvisory Agreements | For the period covered in the report (continued) |
| • | The Expense Group for the Franklin FTSE Latin America ETF was comprised of pure index exchange-traded funds, which included the Fund and one other Latin American fund. |
| • | The Expense Group for the Franklin FTSE Mexico ETF was comprised of pure index exchange-traded funds, which included the Fund and one other Latin American fund. |
| • | The Expense Group for the Franklin FTSE Saudi Arabia ETF was comprised of pure index exchange-traded funds, which included the Fund and one other emerging markets fund. |
| • | The Expense Group for the Franklin FTSE South Korea ETF was comprised of pure index exchange-traded funds, which included the Fund and one other Pacific ex-Japan fund. |
| • | The Expense Group for the Franklin FTSE Switzerland ETF was comprised of pure index exchange-traded funds, which included the Fund and one other European region fund. |
| • | The Expense Group for the Franklin FTSE Taiwan ETF was comprised of pure index exchange-traded funds, which included the Fund and one other China region fund. |
| • | The Expense Group for the Franklin FTSE United Kingdom ETF was comprised of pure index exchange-traded funds, which included the Fund and one other European region fund. |
The Board noted that the Management Rates and actual total expense ratios for the Funds were below the medians of their respective Expense Groups, except that the Management Rate for the Franklin FTSE Eurozone ETF was equal to the median of its Expense Group, and the actual total expense ratio for each of the Franklin FTSE Asia ex Japan ETF, Franklin FTSE Europe ETF and Franklin FTSE Japan Hedged ETF was equal to the median of each Fund’s respective Expense Group. The Board also noted the small size of each Fund’s Expense Group, and that therefore no quintile information was available for each Fund, except for the Franklin FTSE China ETF which had eight funds in its Expense Group. The Board further noted each Fund’s unified management fee (Unified Fee). The Board also noted that pursuant to the Unified Fee arrangement the Manager reimburses the Fund for all of its acquired fund fees and expenses (if any) and pays all of the ordinary operating expenses of the Fund, except for (i) the Fund’s Unified Fee, (ii) future Rule 12b-1 fees (if any), (iii) brokerage expenses, (iv) taxes, (v) interest (including borrowing costs and dividend expenses on securities sold short and overdraft charges), (vi) litigation expenses (including litigation to which the Trust or the Fund may be a party and indemnification of the Trustees and officers with respect thereto), and (vii) other non-routine or extraordinary expenses. The Board concluded that the Management Rate charged to each Fund is reasonable.
Profitability
The Board reviewed and considered information regarding the profits realized by the Manager and its affiliates in connection with the operation of each Fund. In this respect, the Board considered the Fund profitability analysis provided by the Manager that addresses the overall profitability of FT’s US fund business, as well as its profits in providing investment management and other services to each of the individual Funds during the 12-month period ended September 30, 2023 (the most recent fiscal year-end for FRI). The Board noted that although management continually makes refinements to its methodologies used in calculating profitability in response to organizational and product-related changes, the overall methodology has remained consistent with that used in the Funds’ profitability report presentations from prior years. The Board also noted that an independent registered public accounting firm has been engaged by the Manager to periodically review and assess the allocation methodologies to be used solely by the Funds’ Board with respect to the profitability analysis.
The Board noted management’s belief that costs incurred in establishing the infrastructure necessary for the type of fund operations conducted by the Manager and its affiliates may not be fully reflected in the expenses allocated to each Fund in determining its profitability, as well as the fact that the level of profits, to a certain extent, reflected operational cost savings and efficiencies initiated by management. As part of this evaluation, the Board considered management’s outsourcing of certain operations, which effort has required considerable up-front expenditures by the Manager but, over the long run, is expected to result in greater efficiencies. The Board also noted management’s expenditures in improving shareholder services provided to the Funds, as well as the need to implement systems and meet additional regulatory and compliance requirements resulting from recent US Securities and Exchange Commission and other regulatory requirements.
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| Board Approval of Management and Subadvisory Agreements | For the period covered in the report (continued) |
The Board also considered the extent to which the Manager and its affiliates might derive ancillary benefits from fund operations, including potential benefits resulting from personnel and systems enhancements necessitated by fund growth, as well as increased leverage with service providers and counterparties. Based upon its consideration of all these factors, the Board concluded that the level of profits realized by the Manager and its affiliates from providing services to each Fund was not excessive in view of the nature, extent and quality of services provided to each Fund.
Economies of Scale
The Board reviewed and considered the extent to which the Manager may realize economies of scale, if any, as each Fund grows larger and whether each Fund’s management fee structure reflects any economies of scale for the benefit of shareholders. The Board considered that each Fund would likely experience benefits from the Unified Fee at the Fund’s projected asset levels because of the Manager’s contractual requirement to bear most of the Fund’s ordinary operating expenses. The Board noted that, under the Unified Fee, it is not anticipated that any of the Funds will generate significant, if any, profit for the Manager and/or its affiliates for some time. The Board considered the Manager’s view that any analyses of potential economies of scale in managing a particular fund are inherently limited in light of the joint and common costs and investments the Manager incurs across the FT family of funds as a whole. The Board also noted that, as of December 31, 2023, each Fund (except for the Franklin FTSE Canada ETF, Franklin FTSE India ETF, Franklin FTSE Japan ETF, Franklin FTSE South Korea ETF and Franklin FTSE United Kingdom ETF) had net assets below $250 million (and in most cases much less). The Board also noted management’s representation that, while the Franklin FTSE Canada ETF, Franklin FTSE India ETF, Franklin FTSE Japan ETF, Franklin FTSE South Korea ETF and Franklin FTSE United Kingdom ETF had net assets that exceeded $250 million as of December 31, 2023, none of the Funds experienced a profit for the fiscal year ended September 30, 2023. The Board recognized that there would not likely be any economies of scale for a Fund until the Fund’s assets grow.
Conclusion
Based on its review, consideration and evaluation of all factors it believed relevant, including the above-described factors and conclusions, the Board unanimously approved the continuation of each Management Agreement for an additional one-year period.
| 213 | Semi-Annual Report | franklintempleton.com |
© 2024 Franklin Templeton Investments. All rights reserved.
Brandywine
GLOBAL – ETFs
Financial Statements and Other Important Information
| Semi-Annual | September 30, 2024 |
| BrandywineGLOBAL - Dynamic US Large Cap Value ETF |
| BrandywineGLOBAL - U.S. Fixed Income ETF |
| Semi-Annual Report | franklintempleton.com |
| franklintempleton.com | Semi-Annual Report | 1 |
Franklin Templeton ETF Trust
Financial Highlights
BrandywineGLOBAL - Dynamic US Large Cap Value ETF
| | Six Months Ended
September 30,
2024 (unaudited) | Year Ended
March 31,
2024 | Period Ended
March 31,
2023a | Year Ended September 30, |
| | 2022 | 2021 | 2020 | 2019 |
| Per share operating performance | | | | | | | |
| (for a share outstanding throughout the period) |
| Net asset value, beginning of period | $13.67 | $11.49 | $11.36 | $15.45 | $11.49 | $11.77 | $13.04 |
| Income from investment operationsb: | | | | | | | |
| Net investment incomec | 0.12 | 0.24 | 0.14 | 0.17 | 0.19 | 0.20 | 0.22 |
| Net realized and unrealized gains (losses) | 0.39 | 2.08 | 1.49 | (1.87) | 4.44 | 0.02 | (0.31) |
| Total from investment operations | 0.51 | 2.32 | 1.63 | (1.70) | 4.63 | 0.22 | (0.09) |
| Less distributions from: | | | | | | | |
| Net investment income | — | (0.14) | (0.18) | (0.20) | (0.17) | (0.18) | (0.20) |
| Net realized gains | — | — | (1.32) | (2.19) | (0.50) | (0.32) | (0.98) |
| Total distributions | — | (0.14) | (1.50) | (2.39) | (0.67) | (0.50) | (1.18) |
| Net asset value, end of period | $14.18 | $13.67 | $11.49 | $11.36 | $15.45 | $11.49 | $11.77 |
| Total returnd,e | 3.73% | 20.38% | 14.03% | (13.03)% | 41.75% | 1.66% | 0.01% |
| Ratios to average net assetsf | | | | | | | |
| Expenses before waiver and payments by affiliates | 0.49% | 0.49% | 0.65% | 0.67% | 0.67% | 0.71%g | 0.72%g |
| Expenses net of waiver and payments by affiliates | 0.49% | 0.49% | 0.61% | 0.65% | 0.65% | 0.65%g | 0.65%g |
| Net investment income | 1.76% | 2.05% | 2.40% | 1.24% | 1.37% | 1.75% | 1.88% |
| Supplemental data | | | | | | | |
| Net assets, end of period (000’s) | $116,319 | $165,481 | $158,053 | $155,901 | $207,109 | $169,544 | $167,688 |
| Portfolio turnover rateh | 33.79%i | 104.99%i | 52.48%i | 124.00% | 83.00% | 141.00% | 126.00% |
| aFor the period October 1, 2022 through March 31, 2023. |
| bThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of Creation Unit Fund shares in relation to income earned and/or fluctuating fair value of the investments of the Fund. |
| cBased on average daily shares outstanding. |
| dThe Fund adopted the performance of the predecessor mutual fund as the result of the Reorganization. Prior to the Reorganization, the Fund had not yet commenced operations. The returns shown for periods ending on or prior to October 28, 2022, are those of the predecessor mutual fund. The predecessor mutual fund’s performance is represented by the performance of the predecessor mutual fund’s Class IS Shares. Had the predecessor mutual fund been structured as an ETF, its performance may have differed. |
| eTotal return is not annualized for periods less than one year. Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. |
| fRatios are annualized for periods less than one year. |
| gReflects recapture of expenses waived/reimbursed from prior fiscal years for period prior to the Reorganization. |
| hPortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash ("Cash creations"). |
| iPortfolio turnover rate excluding cash creations was as follows: | 33.79% | 100.20% | 52.48% | — | — | — | — |
| 2 | Semi-Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments, September 30, 2024 (unaudited)
BrandywineGLOBAL - Dynamic US Large Cap Value ETF
| | | Country | Shares | | Value |
| | Common Stocks 98.8% | | | | |
| | Aerospace & Defense 5.1% | | | | |
| | Lockheed Martin Corp. | United States | 9,597 | | $ 5,610,022 |
| | Textron, Inc. | United States | 4,018 | | 355,915 |
| | | | | | 5,965,937 |
| | Air Freight & Logistics 1.2% | | | | |
| | Expeditors International of Washington, Inc. | United States | 10,338 | | 1,358,413 |
| | Automobile Components 0.1% | | | | |
| | Lear Corp. | United States | 723 | | 78,915 |
| | Automobiles 2.5% | | | | |
| | General Motors Co. | United States | 64,445 | | 2,889,714 |
| | Harley-Davidson, Inc. | United States | 775 | | 29,861 |
| | | | | | 2,919,575 |
| | Banks 0.3% | | | | |
| | Wells Fargo & Co. | United States | 6,818 | | 385,149 |
| | Beverages 0.1% | | | | |
| | Coca-Cola Consolidated, Inc. | United States | 50 | | 65,820 |
| | Biotechnology 0.7% | | | | |
| | Amgen, Inc. | United States | 2,691 | | 867,067 |
| | Broadline Retail 0.3% | | | | |
| | eBay, Inc. | United States | 5,984 | | 389,618 |
| | Building Products 4.6% | | | | |
| | A.O. Smith Corp. | United States | 1,561 | | 140,225 |
| | Advanced Drainage Systems, Inc. | United States | 4,495 | | 706,434 |
| a | Builders FirstSource, Inc. | United States | 12,378 | | 2,399,599 |
| | Carlisle Cos., Inc. | United States | 2,648 | | 1,190,938 |
| | Owens Corning | United States | 5,502 | | 971,213 |
| | | | | | 5,408,409 |
| | Capital Markets 0.8% | | | | |
| | Affiliated Managers Group, Inc. | United States | 2,539 | | 451,434 |
| | Evercore, Inc., Class A | United States | 1,920 | | 486,413 |
| | | | | | 937,847 |
| | Chemicals 2.7% | | | | |
| | Cabot Corp. | United States | 851 | | 95,116 |
| | CF Industries Holdings, Inc. | United States | 10,372 | | 889,918 |
| | LyondellBasell Industries NV, Class A | United States | 20,596 | | 1,975,156 |
| | NewMarket Corp. | United States | 323 | | 178,261 |
| | | | | | 3,138,451 |
| | Communications Equipment 3.3% | | | | |
| | Cisco Systems, Inc. | United States | 71,122 | | 3,785,113 |
| | Construction & Engineering 0.2% | | | | |
| | MDU Resources Group, Inc. | United States | 8,866 | | 243,017 |
| a | WillScot Holdings Corp. | United States | 1,130 | | 42,488 |
| | | | | | 285,505 |
| | Construction Materials 0.0%† | | | | |
| | Eagle Materials, Inc. | United States | 189 | | 54,366 |
| | Consumer Finance 0.4% | | | | |
| | OneMain Holdings, Inc. | United States | 9,697 | | 456,438 |
| franklintempleton.com | Semi-Annual Report | 3 |
Franklin Templeton ETF Trust
Schedule of Investments
BrandywineGLOBAL - Dynamic US Large Cap Value ETF (continued)
| | | Country | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | Consumer Staples Distribution & Retail 1.7% | | | | |
| | Sysco Corp. | United States | 5,974 | | $ 466,330 |
| | Walmart, Inc. | United States | 19,424 | | 1,568,488 |
| | | | | | 2,034,818 |
| | Containers & Packaging 0.6% | | | | |
| | Berry Global Group, Inc. | United States | 9,196 | | 625,144 |
| | Graphic Packaging Holding Co. | United States | 3,592 | | 106,287 |
| | | | | | 731,431 |
| | Diversified Consumer Services 0.9% | | | | |
| | Service Corp. International | United States | 12,925 | | 1,020,170 |
| | Diversified Telecommunication Services 0.9% | | | | |
| | AT&T, Inc. | United States | 25,505 | | 561,110 |
| | Verizon Communications, Inc. | United States | 12,094 | | 543,142 |
| | | | | | 1,104,252 |
| | Electric Utilities 0.6% | | | | |
| | NRG Energy, Inc. | United States | 7,083 | | 645,261 |
| | Electronic Equipment, Instruments & Components 1.1% | | | | |
| a | Flex Ltd. | United States | 4,793 | | 160,230 |
| | Jabil, Inc. | United States | 8,240 | | 987,399 |
| a | Trimble, Inc. | United States | 1,461 | | 90,714 |
| | | | | | 1,238,343 |
| | Energy Equipment & Services 0.3% | | | | |
| | ChampionX Corp. | United States | 3,675 | | 110,801 |
| | Halliburton Co. | United States | 9,262 | | 269,061 |
| | | | | | 379,862 |
| | Entertainment 0.5% | | | | |
| | Walt Disney Co. | United States | 5,454 | | 524,620 |
| | Financial Services 2.8% | | | | |
| | Corebridge Financial, Inc. | United States | 21,052 | | 613,876 |
| a | Corpay, Inc. | United States | 398 | | 124,479 |
| | Equitable Holdings, Inc. | United States | 11,003 | | 462,456 |
| | MGIC Investment Corp. | United States | 21,872 | | 559,923 |
| a | PayPal Holdings, Inc. | United States | 16,834 | | 1,313,557 |
| | Radian Group, Inc. | United States | 2,312 | | 80,203 |
| | Voya Financial, Inc. | United States | 644 | | 51,018 |
| | | | | | 3,205,512 |
| | Food Products 2.3% | | | | |
| | Bunge Global SA | United States | 9,145 | | 883,773 |
| | General Mills, Inc. | United States | 6,733 | | 497,232 |
| | Kraft Heinz Co. | United States | 37,364 | | 1,311,850 |
| | | | | | 2,692,855 |
| | Ground Transportation 6.8% | | | | |
| | CSX Corp. | United States | 143,290 | | 4,947,804 |
| | Norfolk Southern Corp. | United States | 10,866 | | 2,700,201 |
| | Ryder System, Inc. | United States | 1,615 | | 235,467 |
| | | | | | 7,883,472 |
| | Health Care Providers & Services 0.1% | | | | |
| a | DaVita, Inc. | United States | 497 | | 81,473 |
| 4 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
BrandywineGLOBAL - Dynamic US Large Cap Value ETF (continued)
| | | Country | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | Hotels, Restaurants & Leisure 2.8% | | | | |
| | Aramark | United States | 15,182 | | $ 587,999 |
| | Darden Restaurants, Inc. | United States | 2,997 | | 491,898 |
| a | Expedia Group, Inc. | United States | 4,304 | | 637,078 |
| | Hyatt Hotels Corp., Class A | United States | 521 | | 79,296 |
| a | MGM Resorts International | United States | 24,301 | | 949,926 |
| | Wyndham Hotels & Resorts, Inc. | United States | 6,050 | | 472,747 |
| | | | | | 3,218,944 |
| | Household Durables 1.5% | | | | |
| | KB Home | United States | 4,980 | | 426,736 |
| a | NVR, Inc. | United States | 30 | | 294,354 |
| | PulteGroup, Inc. | United States | 7,279 | | 1,044,755 |
| | | | | | 1,765,845 |
| | Household Products 1.0% | | | | |
| | Procter & Gamble Co. | United States | 6,657 | | 1,152,992 |
| | Industrial Conglomerates 3.2% | | | | |
| | Honeywell International, Inc. | United States | 17,812 | | 3,681,919 |
| | Insurance 7.1% | | | | |
| | Aflac, Inc. | United States | 46,532 | | 5,202,278 |
| | American Financial Group, Inc. | United States | 4,919 | | 662,097 |
| | Hartford Financial Services Group, Inc. | United States | 3,367 | | 395,993 |
| | Old Republic International Corp. | United States | 20,676 | | 732,344 |
| | Primerica, Inc. | United States | 400 | | 106,060 |
| | Prudential Financial, Inc. | United States | 9,689 | | 1,173,338 |
| | | | | | 8,272,110 |
| | IT Services 4.6% | | | | |
| | International Business Machines Corp. | United States | 24,036 | | 5,313,879 |
| | Leisure Products 0.4% | | | | |
| | Brunswick Corp. | United States | 5,241 | | 439,301 |
| | Machinery 6.0% | | | | |
| | Caterpillar, Inc. | United States | 7,146 | | 2,794,944 |
| | Deere & Co. | United States | 10,098 | | 4,214,198 |
| | | | | | 7,009,142 |
| | Media 5.9% | | | | |
| | Comcast Corp., Class A | United States | 119,839 | | 5,005,675 |
| | Fox Corp., Class A | United States | 11,866 | | 502,288 |
| | Interpublic Group of Cos., Inc. | United States | 28,325 | | 895,920 |
| | Nexstar Media Group, Inc. | United States | 3,037 | | 502,168 |
| | | | | | 6,906,051 |
| | Metals & Mining 3.4% | | | | |
| | Nucor Corp. | United States | 9,020 | | 1,356,067 |
| | Reliance, Inc. | United States | 3,737 | | 1,080,778 |
| | Steel Dynamics, Inc. | United States | 11,967 | | 1,508,799 |
| | | | | | 3,945,644 |
| | Multi-Utilities 0.2% | | | | |
| | CenterPoint Energy, Inc. | United States | 7,842 | | 230,712 |
| | Oil, Gas & Consumable Fuels 13.5% | | | | |
| | Antero Midstream Corp. | United States | 10,813 | | 162,736 |
| | Chesapeake Energy Corp. | United States | 2,035 | | 167,379 |
| | Chevron Corp. | United States | 16,302 | | 2,400,796 |
| | ConocoPhillips | United States | 32,430 | | 3,414,230 |
| franklintempleton.com | Semi-Annual Report | 5 |
Franklin Templeton ETF Trust
Schedule of Investments
BrandywineGLOBAL - Dynamic US Large Cap Value ETF (continued)
| | | Country | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | Oil, Gas & Consumable Fuels (continued) | | | | |
| | Coterra Energy, Inc., Class A | United States | 27,721 | | $ 663,918 |
| | Devon Energy Corp. | United States | 6,526 | | 255,297 |
| | Diamondback Energy, Inc. | United States | 996 | | 171,710 |
| | EOG Resources, Inc. | United States | 3,146 | | 386,738 |
| | HF Sinclair Corp. | United States | 3,935 | | 175,383 |
| | Marathon Oil Corp. | United States | 25,994 | | 692,220 |
| | Marathon Petroleum Corp. | United States | 20,308 | | 3,308,376 |
| | Murphy Oil Corp. | United States | 2,688 | | 90,693 |
| | Ovintiv, Inc. | United States | 4,634 | | 177,529 |
| | Phillips 66 | United States | 5,507 | | 723,895 |
| | SM Energy Co. | United States | 2,008 | | 80,260 |
| | Targa Resources Corp. | United States | 2,229 | | 329,914 |
| | Valero Energy Corp. | United States | 10,034 | | 1,354,891 |
| | Williams Cos., Inc. | United States | 24,909 | | 1,137,096 |
| | | | | | 15,693,061 |
| | Pharmaceuticals 2.7% | | | | |
| | Bristol-Myers Squibb Co. | United States | 14,213 | | 735,381 |
| | Johnson & Johnson | United States | 11,908 | | 1,929,810 |
| | Merck & Co., Inc. | United States | 4,354 | | 494,440 |
| | | | | | 3,159,631 |
| | Professional Services 0.9% | | | | |
| | Robert Half, Inc. | United States | 4,197 | | 282,920 |
| | Science Applications International Corp. | United States | 3,032 | | 422,266 |
| | TriNet Group, Inc. | United States | 3,364 | | 326,207 |
| | | | | | 1,031,393 |
| | Specialty Retail 0.9% | | | | |
| a | AutoNation, Inc. | United States | 4,518 | | 808,360 |
| | Dick’s Sporting Goods, Inc. | United States | 338 | | 70,541 |
| | Murphy USA, Inc. | United States | 244 | | 120,260 |
| | | | | | 999,161 |
| | Textiles, Apparel & Luxury Goods 0.4% | | | | |
| | PVH Corp. | United States | 1,383 | | 139,448 |
| | Ralph Lauren Corp. | United States | 1,375 | | 266,571 |
| | Tapestry, Inc. | United States | 1,382 | | 64,926 |
| | | | | | 470,945 |
| | Trading Companies & Distributors 0.2% | | | | |
| | Boise Cascade Co. | United States | 1,886 | | 265,888 |
| | Wireless Telecommunication Services 3.2% | | | | |
| | T-Mobile U.S., Inc. | United States | 18,303 | | 3,777,007 |
| | Total Common Stocks (Cost $101,413,344) | | | | 114,972,317 |
| | Total Investments before Short-Term Investments
(Cost $101,413,344) | | | | 114,972,317 |
| 6 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
BrandywineGLOBAL - Dynamic US Large Cap Value ETF (continued)
| | | Country | Shares | | Value |
| | Short-Term Investments 1.2% | | | | |
| | Money Market Funds 1.2% | | | | |
| b | State Street Institutional U.S. Government Money Market Fund, 4.94% | United States | 1,351,397 | | $ 1,351,397 |
| | Total Short-Term Investments (Cost $1,351,397) | | | | 1,351,397 |
| | Total Investments (Cost $102,764,741) 100.0% | | | | 116,323,714 |
| | Other Assets, less Liabilities (0.0)%† | | | | (4,267) |
| | Net Assets 100.0% | | | | $ 116,319,447 |
| †Rounds to less than 0.1% of net assets. |
| aNon-income producing. |
| bThe rate shown is the annualized seven-day effective yield at period end. |
| franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Semi-Annual Report | 7 |
Franklin Templeton ETF Trust
Financial Highlights
BrandywineGLOBAL - U.S. Fixed Income ETF
| | Six Months Ended
September 30, 2024
(unaudited) | Period Ended
March 31,
2024a |
| |
| Per share operating performance | | |
| (for a share outstanding throughout the period) | | |
| Net asset value, beginning of period | $24.36 | $25.00 |
| Income from investment operationsb: | | |
| Net investment incomec | 0.55 | 0.74 |
| Net realized and unrealized gains (losses) | 1.05 | (0.75) |
| Total from investment operations | 1.60 | (0.01) |
| Less distributions from net investment income | (0.56) | (0.63) |
| Net asset value, end of period | $25.40 | $24.36 |
| Total returnd | 6.72% | 0.01% |
| Ratios to average net assetse | | |
| Expenses before waiver and payments by affiliates | 0.39% | 0.39% |
| Expenses net of waiver and payments by affiliates | 0.39% | 0.39% |
| Net investment income | 4.52% | 4.51% |
| Supplemental data | | |
| Net assets, end of period (000’s) | $12,698 | $12,180 |
| Portfolio turnover ratef | 24.85%g | 84.09%g |
| aFor the period July 25, 2023 (commencement of operations) to March, 31, 2024. |
| bThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of Creation Unit Fund shares in relation to income earned and/or fluctuating fair value of the investments of the Fund. |
| cBased on average daily shares outstanding. |
| dTotal return is not annualized for periods less than one year. Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. |
| eRatios are annualized for periods less than one year. |
| fPortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash ("Cash creations"). |
| gPortfolio turnover rate excluding cash creations was as follows: | 24.85% | 84.09% |
| 8 | Semi-Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments, September 30, 2024 (unaudited)
BrandywineGLOBAL - U.S. Fixed Income ETF
| | | Country | | | Principal Amount* | Value |
| | Corporate Bonds & Notes 2.0% | | | | | |
| | Aerospace & Defense 0.2% | | | | | |
| | Boeing Co., 3.20%, 3/01/29 | United States | | | 25,000 | $ 23,149 |
| | Agriculture 0.1% | | | | | |
| | BAT Capital Corp., 3.462%, 9/06/29 | United Kingdom | | | 20,000 | 19,059 |
| | Financial Services 1.0% | | | | | |
| a | ARES Capital Corp., 2.875%, 6/15/28 | United States | | | 20,000 | 18,454 |
| a | Golub Capital BDC, Inc., 2.50%, 8/24/26 | United States | | | 110,000 | 104,376 |
| | | | | | | 122,830 |
| | Media 0.2% | | | | | |
| | Charter Communications Operating LLC/Charter Communications Operating Capital, 4.20%, 3/15/28 | United States | | | 20,000 | 19,449 |
| | Oil & Gas 0.5% | | | | | |
| | Devon Energy Corp., 7.875%, 9/30/31 | United States | | | 30,000 | 34,991 |
| | Occidental Petroleum Corp., 6.625%, 9/01/30 | United States | | | 30,000 | 32,384 |
| | | | | | | 67,375 |
| | Total Corporate Bonds & Notes (Cost $247,457) | | | | | 251,862 |
| | U.S. Government & Agency Securities 94.3% | | | | | |
| | Federal Home Loan Mortgage Corp., 5.50%, 12/01/52 | United States | | | 399,286 | 405,015 |
| | Federal National Mortgage Association, 5.50%, 1/01/53 | United States | | | 491,828 | 497,915 |
| | Government National Mortgage Association, | | | | | |
| | 5.50%, 4/20/53 | United States | | | 479,416 | 484,813 |
| | 5.50%, 5/20/53 | United States | | | 483,076 | 488,368 |
| | 5.50%, 9/20/53 | United States | | | 233,820 | 236,535 |
| | 5.50%, 10/20/53 | United States | | | 246,360 | 248,952 |
| | 5.50%, 2/20/54 | United States | | | 195,493 | 197,482 |
| | U.S. Treasury Bonds, 3.00%, 8/15/52 | United States | | | 2,210,000 | 1,776,719 |
| | U.S. Treasury Floating Rate Notes, | | | | | |
| | b 3 mo. Treasury money market yield + 0.13%, 4.677%, 7/31/25 | United States | | | 1,840,000 | 1,838,543 |
| | b 3 mo. Treasury money market yield + 0.15%, 4.702%, 4/30/26 | United States | | | 370,000 | 369,552 |
| | b 3 mo. Treasury money market yield + 0.17%, 4.722%, 10/31/25 | United States | | | 1,680,000 | 1,679,255 |
| | U.S. Treasury Notes, 3.875%, 8/15/33 | United States | | | 3,720,000 | 3,750,952 |
| | Total U.S. Government & Agency Securities (Cost $11,668,689) | | | | | 11,974,101 |
| | Total Investments before Short-Term Investments (Cost $11,916,146) | | | | | 12,225,963 |
| | Short-Term Investments 3.1% | | | | | |
| | Money Market Funds 3.1% | | | | | |
| c | State Street Institutional U.S. Government Money Market Fund, 4.94% | United States | | | 393,358 | 393,358 |
| | Total Short-Term Investments (Cost $393,358) | | | | | 393,358 |
| | Total Investments (Cost $12,309,504) 99.4% | | | | | 12,619,321 |
| | Other Assets, less Liabilities 0.6% | | | | | 78,668 |
| | Net Assets 100.0% | | | | | $ 12,697,989 |
| *The principal amount is stated in U.S. dollars unless otherwise indicated. |
| aSecurity is a business development company. See Note 1(e). |
| bVariable rate security. The rate shown represents the yield at period end. |
| cThe rate shown is the annualized seven-day effective yield at period end. |
| franklintempleton.com | Semi-Annual Report | 9 |
Franklin Templeton ETF Trust
Schedule of Investments
BrandywineGLOBAL - U.S. Fixed Income ETF (continued)
At September 30, 2024, the Fund had the following futures contracts outstanding. See Note 1(b).
Futures Contracts
| Description | Type | Number of
Contracts | Notional
Amount* | Expiration
Date | Value/Unrealized
Appreciation
(Depreciation) |
| Interest rate contracts | | | | | |
| U.S. Treasury 5 Yr. Note | Long | 29 | $ 3,186,602 | 12/31/24 | $ 8,666 |
See Note 6 regarding other derivative information.
See Abbreviations on page 20.
| 10 | Semi-Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
FINANCIAL STATEMENTS
Statements of Assets and Liabilities
September 30, 2024 (unaudited)
| | BrandywineGLOBAL -
Dynamic US Large Cap
Value ETF | BrandywineGLOBAL -
U.S. Fixed Income
ETF |
| Assets: | | |
| Investments in securities: | | |
| Cost – Unaffiliated issuers | $ 102,764,741 | $ 12,309,504 |
| Value – Unaffiliated issuers | $ 116,323,714 | $ 12,619,321 |
| Cash | 1,436 | — |
| Receivables: | | |
| Dividends and interest | 40,035 | 76,267 |
| Deposits with brokers for: | | |
| Futures contracts | — | 41,470 |
| Total assets | 116,365,185 | 12,737,058 |
| Liabilities: | | |
| Payables: | | |
| Investment securities purchased | — | 34,650 |
| Management fees | 45,738 | 4,035 |
| Variation margin on futures contracts | — | 384 |
| Total liabilities | 45,738 | 39,069 |
| Net assets, at value | $ 116,319,447 | $ 12,697,989 |
| Net assets consist of: | | |
| Paid-in capital | $ 94,707,330 | $ 12,500,000 |
| Total distributable earnings (loss) | 21,612,117 | 197,989 |
| Net assets, at value | $ 116,319,447 | $ 12,697,989 |
| Shares outstanding | 8,202,953 | 500,000 |
| Net asset value per share | $14.18 | $25.40 |
| franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Semi-Annual Report | 11 |
FRANKLIN TEMPLETON ETF TRUST
FINANCIAL STATEMENTS
Statements of Operations
for the period ended September 30, 2024 (unaudited)
| | BrandywineGLOBAL -
Dynamic US Large Cap
Value ETF | BrandywineGLOBAL -
U.S. Fixed Income
ETF |
| Investment income: | | |
| Dividends: | | |
| Unaffiliated issuers | $ 1,616,926 | $ 8,876 |
| Interest: | | |
| Unaffiliated issuers | 121 | 290,482 |
| Total investment income | 1,617,047 | 299,358 |
| Expenses: | | |
| Management fees (Note 3a) | 352,433 | 23,806 |
| Total expenses | 352,433 | 23,806 |
| Expenses waived/paid by affiliates | (681) | (164) |
| Net expenses | 351,752 | 23,642 |
| Net investment income | 1,265,295 | 275,716 |
| Realized and unrealized gains (losses): | | |
| Net realized gain (loss) from: | | |
| Investments: | | |
| Unaffiliated issuers | (1,235,672) | 79,709 |
| In-kind redemptions | 14,865,358 | — |
| Futures contracts | — | 199,841 |
| Net realized gain (loss) | 13,629,686 | 279,550 |
| Net change in unrealized appreciation (depreciation) on: | | |
| Investments: | | |
| Unaffiliated issuers | (11,271,651) | 253,251 |
| Futures contracts | — | (9,263) |
| Net change in unrealized appreciation (depreciation) | (11,271,651) | 243,988 |
| Net realized and unrealized gain (loss) | 2,358,035 | 523,538 |
| Net increase (decrease) in net assets resulting from operations | $3,623,330 | $799,254 |
| 12 | Semi-Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
FINANCIAL STATEMENTS
Statements of Changes in Net Assets
| | BrandywineGLOBAL -
Dynamic US Large Cap Value ETF | BrandywineGLOBAL -
U.S. Fixed Income ETF |
| | Six Months Ended
September 30, 2024
(unaudited) | Year Ended
March 31, 2024
| Six Months Ended
September 30, 2024
(unaudited) | Period Ended
March 31, 2024a
|
| Increase (decrease) in net assets: | | | | |
| Operations: | | | | |
| Net investment income | $ 1,265,295 | $ 3,109,385 | $ 275,716 | $ 371,116 |
| Net realized gain (loss) | 13,629,686 | 4,108,075 | 279,550 | (450,035) |
| Net change in unrealized appreciation (depreciation) | (11,271,651) | 21,686,811 | 243,988 | 74,495 |
| Net increase (decrease) in net assets resulting from operations | 3,623,330 | 28,904,271 | 799,254 | (4,424) |
| Distributions to shareholders (Note 1d) | — | (1,760,860) | (281,377) | (315,464) |
| Capital share transactions: (Note 2) | (52,785,212) | (19,714,823) | — | 12,500,000 |
| Net increase (decrease) in net assets | (49,161,882) | 7,428,588 | 517,877 | 12,180,112 |
| Net assets: | | | | |
| Beginning of period | 165,481,329 | 158,052,741 | 12,180,112 | — |
| End of period | $ 116,319,447 | $ 165,481,329 | $ 12,697,989 | $ 12,180,112 |
| aFor the period July 25, 2023 (commencement of operations) to March 31,2024. |
| franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Semi-Annual Report | 13 |
FRANKLIN TEMPLETON ETF TRUST
Notes to Financial Statements (unaudited)
1. Organization and Significant Accounting Policies
Franklin Templeton ETF Trust (Trust) is registered under the Investment Company Act of 1940 (1940 Act) as an open-end management investment company consisting of forty-nine separate funds, two of which are included in this report (Funds). The Funds follow the accounting and reporting guidance in Financial Accounting Standards Board ("FASB") Accounting Standard Codification Topic 946, Financial Services - Investment Companies ("ASC 946") and applies the specialized accounting and reporting guidance in U.S. Generally Accepted Accounting Principles (U.S. GAAP), including, but not limited to, ASC 946. The Funds are exchange traded funds (ETF) and seek to provide the investment results that closely correspond, before fees and expenses, to the performance of Fund’s corresponding underlying index.
The following summarizes the Funds’ significant accounting policies.
a. Financial Instrument Valuation
The Funds’ investments in financial instruments are carried at fair value daily. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. The Funds calculates the net asset value (NAV) per share each business day as of 4 p.m. Eastern time or the regularly scheduled close of the New York Stock Exchange (NYSE), whichever is earlier. Under compliance policies and procedures approved by the Funds’ Board of Trustees (the Board), the Board has designated the Fund’s investment manager as the valuation designee and has responsibility for oversight of valuation. The investment manager is assisted by the Fund’s administrator in performing this responsibility, including leading the cross-functional Valuation Committee (VC).
The Funds may utilize independent pricing services, quotations from securities and financial instrument dealers, and other market sources to determine fair value.
Equity securities, exchange trade funds and derivative financial instruments listed on an exchange or on the NASDAQ National Market System are valued at the last quoted sale price or the official closing price of the day, respectively. Foreign equity securities are valued as of the close of trading on the foreign stock exchange on which the security is primarily traded or as of 4 p.m. Eastern time. The value is then converted into its U.S. dollar equivalent at the foreign exchange rate in effect at 4 p.m. London time on the
day that the value of the security is determined. Over-the-counter (OTC) securities are valued within the range of the most recent quoted bid and ask prices. Securities that trade in multiple markets or on multiple exchanges are valued according to the broadest and most representative market. Certain equity securities are valued based upon fundamental characteristics or relationships to similar securities.
Investments in open-end mutual funds are valued at the closing NAV.
The Funds have procedures to determine the fair value of financial instruments for which market prices are not reliable or readily available. Under these procedures, the Funds primarily employ a market-based approach which may use related or comparable assets or liabilities, recent transactions, market multiples, and other relevant information for the investment to determine the fair value of the investment. An income-based valuation approach may also be used in which the anticipated future cash flows of the investment are discounted to calculate fair value. Discounts may also be applied due to the nature or duration of any restrictions on the disposition of the investments. Due to the inherent uncertainty of valuations of such investments, the fair values may differ significantly from the values that would have been used had an active market existed.
Trading in securities on foreign securities stock exchanges and OTC markets may be completed before 4 p.m. Eastern time. In addition, trading in certain foreign markets may not take place on every Funds’ business day. Occasionally, events occur between the time at which trading in a foreign security is completed and 4 p.m. Eastern time that might call into question the reliability of the value of a portfolio security held by the Fund. As a result, differences may arise between the value of the Funds’ portfolio securities as determined at the foreign market close and the latest indications of value at 4 p.m. Eastern time. In order to minimize the potential for these differences, an independent pricing service may be used to adjust the Funds’ portfolio securities to the latest indications of fair value at 4 p.m. Eastern time on September 30, 2024.
When the last day of the reporting period is a non-business day, certain foreign markets may be open on those days that the Funds’ NAV is not calculated, which could result in differences between the value of the Funds’ portfolio securities on the last business day and the last calendar day of the reporting period. Any significant security valuation
| 14 | Semi-Annual Report | franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. Organization and Significant Accounting Policies (continued)
a. Financial Instrument Valuation (continued)
changes due to an open foreign market are adjusted and reflected by the Funds for financial reporting purposes.
b. Derivative Financial Instruments
Certain or all Funds invested in derivative financial instruments in order to manage risk or gain exposure to various other investments or markets. Derivatives are financial contracts based on an underlying or notional amount, require no initial investment or an initial net investment that is smaller than would normally be required to have a similar response to changes in market factors, and require or permit net settlement. Derivatives contain various risks including the potential inability of the counterparty to fulfill their obligations under the terms of the contract, the potential for an illiquid secondary market, and/or the potential for market movements which expose the Fund to gains or losses in excess of the amounts shown in the Statement of Assets and Liabilities. Realized gain and loss and unrealized appreciation and depreciation on these contracts for the period are included in the Statement of Operations.
Certain or all Funds entered into exchange traded futures contracts primarily to manage and/or gain exposure to equity price risk. A futures contract is an agreement between the Fund and a counterparty to buy or sell an asset at a specified price on a future date. Required initial margins are pledged by the Fund, and the daily change in fair value is accounted for as a variation margin payable or receivable in the Statements of Assets and Liabilities.
c. Income and Deferred Taxes
It is the Fund’s policy to qualify as a regulated investment company under the Internal Revenue Code. The Fund intends to distribute to shareholders substantially all of its taxable income and net realized gains to relieve it from federal income and excise taxes. As a result, no provision for U.S. federal income taxes is required.
The Funds may be subject to foreign taxation related to income received, capital gains on the sale of securities and certain foreign currency transactions in the foreign jurisdictions in which the Funds invest. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Funds invests. When a capital gain tax is determined to apply, certain or all Funds record an estimated deferred tax liability in an amount that
would be payable if the securities were disposed of on the valuation date.
Each Fund may recognize an income tax liability related to its uncertain tax positions under U.S. GAAP when the uncertain tax position has a less than 50% probability that it will be sustained upon examination by the tax authorities based on its technical merits. As of March 31, 2024, the Funds have determined that no tax liability is required in the financial statements related to uncertain tax positions for any open tax years (or expected to be taken in future tax years). Open tax years are those that remain subject to examination and are based on the statute of limitations in each jurisdiction in which the Funds invest.
d. Security Transactions, Investment Income, Expenses and Distributions
Security transactions are accounted for on trade date. Realized gains and losses on security transactions are determined on a specific identification basis. Interest income (including interest income from payment-in-kind securities, if any) and estimated expenses are accrued daily. Amortization of premium and accretion of discount on debt securities are included in interest income. Dividend income and capital gain distributions are recorded on the ex-dividend date except for certain dividends from securities where the dividend rate is not available. In such cases, the dividend is recorded as soon as the information is received by the Funds. Distributions to shareholders are recorded on the ex-dividend date. Distributable earnings are determined according to income tax regulations (tax basis) and may differ from earnings recorded in accordance with U.S. GAAP. These differences may be permanent or temporary. Permanent differences are reclassified among capital accounts to reflect their tax character. These reclassifications have no impact on net assets or the results of operations. Temporary differences are not reclassified, as they may reverse in subsequent periods.
Common expenses incurred by the Trust are allocated among the Funds based on the ratio of net assets of Fund to the combined net assets of the Trust. Certain Fund specific expenses are allocated directly to the Fund that incurred the expense. These expenses are paid by the Fund or by the investment manager, as applicable, according to the terms of the unified management fee agreement.
e. Business development companies
Certain or all Funds may invest in securities of closed-end investment companies that have elected to be treated as a business development company under the 1940 Act. The
| franklintempleton.com | Semi-Annual Report | 15 |
FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. Organization and Significant Accounting Policies (continued)
e. Business development companies (continued)
Funds may purchase a business development company to gain exposure to the securities in the underlying portfolio. The risks of owning a business development company generally reflect the risks of owning the underlying securities. Business development companies have expenses that reduce their value.
f. Accounting Estimates
The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the
amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
g. Guarantees and Indemnifications
Under the Trust’s organizational documents, its officers and trustees are indemnified by the Trust against certain liabilities arising out of the performance of their duties to the Trust. Additionally, in the normal course of business, the Trust, on behalf of the Funds, enters into contracts with service providers that contain general indemnification clauses. The Trust’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Trust that have not yet occurred. Currently, the Trust expects the risk of loss to be remote.
2. Shares of Beneficial Interest
Shares of the Funds are issued and redeemed at their respective NAV only in aggregations of a specified number of shares or multiples thereof (Creation Units). Only certain large institutional investors (Authorized Participants) may engage in creation or redemption transactions directly with the Funds. Once created, shares of the Funds generally trade in the secondary market in amounts less than one Creation Unit. The market price of the Funds’ shares will be based on the price in the secondary market which may be at, above or below the most recent NAV. Creation Units may be issued and redeemed in exchange for a designated portfolio of securities and/or cash (which may include cash in lieu of certain securities).
Authorized participants pay a standard transaction fee to the shareholder servicing agent when purchasing or redeeming Creation Units of the Funds regardless of the number of Creation Units that are being created or redeemed on the same day by the Authorized Participant. The standard transaction fee is imposed to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units and is not charged to or paid by the Fund. Such transactions fees are treated as increases in capital and are disclosed in the Funds’ Statements of Changes in Net Assets
In addition, for cash Creation Unit transactions, a variable fee for creation transactions and redemption transactions may be charged to the Authorized Participant to cover certain brokerage, tax, foreign exchange, execution, market impact and other costs and expenses related to the execution of trades. Variable fees, if any, are included in capital share transactions in the Statements of Changes in Net Assets.
At September 30, 2024, there were an unlimited number of shares authorized (without par value). Transactions in the Funds’ shares were as follows:
| | BrandywineGLOBAL - Dynamic US Large Cap Value ETF |
| | Six Months Ended
September 30, 2024 | Year Ended
March 31, 2024 |
| | Shares | Amount | Shares | Amount |
| Shares sold | 3,050,000 | $ 40,282,165 | 3,400,000 | $ 41,842,853 |
| Shares redeemed | (6,950,000) | (93,067,377) | (5,050,000) | (61,557,676) |
| Net increase (decrease) | (3,900,000) | $ (52,785,212) | (1,650,000) | $ (19,714,823) |
| 16 | Semi-Annual Report | franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
2. Shares of Beneficial Interest (continued)
| | BrandywineGLOBAL - U.S. Fixed Income ETF |
| | Six Months Ended
September 30, 2024 | Period Ended
March 31, 2024a |
| | Shares | Amount | Shares | Amount |
| Shares sold | — | $ — | 500,001 | $ 12,500,025 |
| Shares redeemed | — | — | (1) | (25) |
| Net increase (decrease) | — | $ — | 500,000 | $ 12,500,000 |
| aFor the period July 25, 2023 (commencement of operations) to March, 31, 2024. |
3. Transactions with Affiliates
Franklin Resources, Inc. is the holding company for various subsidiaries that together are referred to as Franklin Templeton. Certain officers and trustees of the Funds are also officers and/or directors of the following subsidiaries:
| Subsidiary | Affiliation |
| Franklin Advisers, Inc. (Advisers) | Investment manager |
| Franklin Templeton Services, LLC (FT Services) | Administrative Manager |
| Franklin Distributors, LLC (Distributors) | Principal Underwriter |
| Brandywine Global Investment Management, LLC (Brandywine Global) | Investment Manager |
a. Management fees
The Funds pay a unified management fee to Advisers whereby Advisers has agreed to reimburse the Funds’ acquired fund fees and expenses (if any) and pay all of the ordinary operating expenses of the Funds, including custody, transfer agency, and Trustee fees and expenses, among others, but excluding payments under the Funds’ Rule 12b-1 plan (if any), brokerage expenses (including any costs incidental to transactions in portfolio securities or instruments), taxes, interest (including borrowing costs and dividend expenses on securities sold short and overdraft charges), litigation expenses (including litigation to which the Trust or a Fund may be a party and indemnification of the Trustees and officers with respect thereto), and other
non-routine or extraordinary expenses. The fee is calculated daily and paid monthly according to the terms of the management agreement. The gross effective investment management fees are based on the average daily net assets of each of the Funds as follows:
| | Gross Effective Investment
Management Fee Rate |
| BrandywineGLOBAL - Dynamic US Large Cap Value ETF | 0.49% |
| BrandywineGLOBAL - U.S. Fixed Income ETF | 0.39% |
Under a subadvisory agreement, Brandywine Global provides subadvisory services to the Funds. The subadvisory fee is paid by Advisers based on the Fund’s average daily net assets, and is not an additional expense of the Funds.
b. Administrative Fees
Under an agreement with Advisers, FT Services provides administrative services to the Fund. The fee is paid by Advisers based on the Funds’ average daily net assets, and is not an additional expense of the Fund.
| franklintempleton.com | Semi-Annual Report | 17 |
FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
3. Transactions with Affiliates (continued)
c. Other Affiliated Transactions
At September 30, 2024, the shares of the Fund is owned by the following entity.
| Fund | Shares | Percentage of
Outstanding Sharesa |
| BrandywineGLOBAL - U.S. Fixed Income ETF | | |
| Franklin Resources Inc. | 185,000 | 37.0% |
| aInvestment activities of significant shareholders could have a material impact on the Fund. |
4. Income Taxes
For tax purposes, capital losses may be carried over to offset future capital gains. At March 31, 2024, the utilized capital loss carryforwards were as follows:
| | BrandywineGLOBAL - Dynamic US Large Cap Value ETF | BrandywineGLOBAL - U.S. Fixed Income ETF | | |
| Capital loss carryforwards not subject to expiration: | | | | |
| Long term | $ 2,162,224 | $ — | | |
| Short term | 7,535,397 | 365,712 | | |
| Total capital loss carryforwards | $ 9,697,621 | $ 365,712 | | |
At September 30, 2024, the cost of investments, net unrealized appreciation (depreciation) and undistributed ordinary income for income tax purposes were as follows:
| | BrandywineGLOBAL - Dynamic US Large Cap Value ETF | BrandywineGLOBAL - U.S. Fixed Income ETF | | |
| Cost of investments | $ 103,017,750 | $ 12,392,886 | | |
| Unrealized appreciation | $ 15,051,712 | $ 310,949 | | |
| Unrealized depreciation | (1,745,748) | (84,514) | | |
| Net unrealized appreciation (depreciation) | $ 13,305,964 | $ 226,435 | | |
Differences between income and/or capital gains as determined on a book basis and a tax basis are primarily due to differing treatments of in-kind transactions and wash sales.
5. Investment Transactions
Purchases and sales of investments (excluding short term securities and in-kind transactions, if any) for the period ended September 30, 2024, were as follows:
| | BrandywineGLOBAL - Dynamic US Large Cap Value ETF | BrandywineGLOBAL - U.S. Fixed Income ETF | | |
| Purchases | $ 47,162,301 | $ 2,811,857 | | |
| Sales | $ 47,798,929 | $ 4,385,048 | | |
| 18 | Semi-Annual Report | franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
5. Investment Transactions (continued)
In-kind transactions associated with creation and redemptions for the year ended September 30, 2024, were as follows:
| | BrandywineGLOBAL - Dynamic US Large Cap Value ETF | BrandywineGLOBAL - U.S. Fixed Income ETF | | |
| Cost of Securities Received | $ 39,589,540 | $ — | | |
| Value of Securities Delivered | $ 89,374,626 | $ — | | |
6. Other Derivative Information
At September 30, 2024, the Fund’s investments in derivative contracts are reflected in the Statements of Assets and Liabilities as follows:
| | Asset Derivatives | | Liability Derivatives |
| | Statement of Assets and
Liabilities Location | Fair Value | | Statement of Assets and
Liabilities Location | Fair Value |
| BrandywineGLOBAL - U.S. Fixed Income ETF | | | | | |
| Interest rate contracts | Variation margin on futures contracts | $ 8,666a | | Variation margin on futures contracts | $ — |
| aThis amount reflects the cumulative appreciation (depreciation) of future contracts as reported in the Schedule of Investments. Only the variation margin receivable/payable at period end is separately reported within the Statements of Assets and Liabilities. Prior variation margin movements were recorded to cash upon receipt or payment. |
For the period ended September 30, 2024, the effect of derivative contracts in the Fund’s Statements of Operations was as follows:
Derivative Contracts
Not Accounted for as
Hedging Instruments | Statement of
Operations Locations | Net Realized
Gain (Loss)
for the Period | Statement of
Operations Locations | Net Change in
Unrealized
Appreciation
(Depreciation)
for the Period |
| BrandywineGLOBAL - U.S. Fixed Income ETF | | | | |
| | Net realized gain (loss) from: | | Net change in unrealized
appreciation (depreciation) on: | |
| Interest rate contracts | Futures contracts | $ 199,841 | Futures contracts | $ (9,263) |
For the period ended September 30, 2024, the average month end notional amount of futures contracts were as follows:
| | BrandywineGLOBAL - U.S. Fixed Income ETF | | | |
| Futures contracts | $ 7,396,015 | | | |
See Note 1(b) regarding derivative financial instruments.
7. Fair Value Measurements
The Funds follow a fair value hierarchy that distinguishes between market data obtained from independent sources (observable inputs) and the Funds’ own market assumptions (unobservable inputs). These inputs are used in determining the value of the Funds’ financial instruments and are summarized in the following fair value hierarchy:
| • | Level 1 – quoted prices in active markets for identical financial instruments |
| • | Level 2 – other significant observable inputs (including quoted prices for similar financial instruments, interest rates, prepayment speed, credit risk, etc.) |
| • | Level 3 – significant unobservable inputs (including the Funds’ own assumptions in determining the fair value of financial instruments) |
| franklintempleton.com | Semi-Annual Report | 19 |
FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
7. Fair Value Measurements (continued)
The input levels are not necessarily an indication of the risk or liquidity associated with financial instruments at that level.
A summary of inputs used as of September 30, 2024, in valuing the Funds’ assets and liabilities carried at fair value, is as follows:
| | Level 1 | Level 2 | Level 3 | Total |
| BrandywineGLOBAL - Dynamic US Large Cap Value ETF | | | | |
| Assets: | | | | |
| Investments in Securities:a | | | | |
| Equity Investmentsb | $ 114,972,317 | $ — | $ — | $ 114,972,317 |
| Short-Term Investments | 1,351,397 | — | — | 1,351,397 |
| Total Investments in Securities | $116,323,714 | $— | $— | $116,323,714 |
| BrandywineGLOBAL - U.S. Fixed Income ETF | | | | |
| Assets: | | | | |
| Investments in Securities:a | | | | |
| Corporate Bonds & Notes | $ — | $ 251,862 | $ — | $ 251,862 |
| U.S. Government & Agency Securities | — | 11,974,101 | — | 11,974,101 |
| Short-Term Investments | 393,358 | — | — | 393,358 |
| Total Investments in Securities | $393,358 | $12,225,963 | $— | $12,619,321 |
| Other Financial Instruments: | | | | |
| Futures Contracts | $ 8,666 | $ — | $ — | $ 8,666 |
| aFor detailed categories, see the accompanying Schedules of Investments. |
| bIncludes common stocks. |
8. Subsequent Events
The Funds has evaluated subsequent events through the issuance of the financial statements and determined that no events have occurred that require disclosure.
Abbreviations
| BDC | Business Development Companies |
| 20 | Semi-Annual Report | franklintempleton.com |
| Changes In and Disagreements With Accountants | For the period covered in the report |
Not Applicable.
| Results of Meeting of Shareholders | For the period covered in the report |
Not Applicable.
| Remuneration Paid to Directors, Officers, and Others | For the period covered in the report |
Not applicable. Remuneration paid to directors, officers and others is included as part of the all-inclusive management fee and not paid directly by the fund.
| franklintempleton.com | Semi-Annual Report | 21 |
| Board Approval of Management and Subadvisory Agreements | For the period covered in the report |
FRANKLIN TEMPLETON ETF TRUST
BrandywineGLOBAL – Dynamic US Large Cap Value ETF
(Fund)
At an in-person meeting held on May 29, 2024 (Meeting), the Board of Trustees (Board) of Franklin Templeton ETF Trust (Trust), including a majority of the trustees who are not “interested persons” as defined in the Investment Company Act of 1940 (Independent Trustees), reviewed and approved the continuance of (i) the investment management agreement between Franklin Advisers, Inc. (FAV) and the Trust, on behalf of the Fund; and (ii) the investment sub-advisory agreement between FAV and Brandywine Global Investment Management, LLC (BrandywineGlobal), on behalf of the Fund (each a Management Agreement) for an additional one-year period. The Independent Trustees received advice from and met separately with Independent Trustee counsel in considering whether to approve the continuation of each Management Agreement. FAV and BrandywineGlobal are each referred to herein as a Manager.
In considering the continuation of each Management Agreement, the Board reviewed and considered information provided by the Manager at the Meeting and throughout the year at meetings of the Board and its committees. The Board also reviewed and considered information provided in response to a detailed set of requests for information submitted to the Manager by Independent Trustee counsel on behalf of the Independent Trustees in connection with the annual contract renewal process. In addition, prior to the Meeting, the Independent Trustees held a virtual contract renewal meeting at which the Independent Trustees first conferred amongst themselves and Independent Trustee counsel about contract renewal matters, and then met with management to request additional information that the Independent Trustees reviewed and considered prior to and at the Meeting. The Board reviewed and considered all of the factors it deemed relevant in approving the continuance of each Management Agreement, including, but not limited to: (i) the nature, extent and quality of the services provided by the Manager; (ii) the investment performance of the Fund; (iii) the costs of the services provided and profits realized by the Manager and its affiliates from the relationship with the Fund; (iv) the extent to which economies of scale are realized as the Fund grows; and (v) whether fee levels reflect these economies of scale for the benefit of Fund investors.
In approving the continuance of each Management Agreement, the Board, including a majority of the Independent Trustees, determined, through the exercise of its business judgment, that the terms of each Management Agreement are fair and reasonable and that the continuance of each Management Agreement is in the best interests of the Fund and its shareholders. While attention was given to all information furnished, the following discusses some primary factors relevant to the Board’s determination.
Nature, Extent and Quality of Services
The Board reviewed and considered information regarding the nature, extent and quality of investment management services provided by the Manager and its affiliates to the Fund and its shareholders. This information included, among other things, the qualifications, background and experience of the senior management and investment personnel of the Manager, as well as information on succession planning where appropriate; the structure of investment personnel compensation; oversight of third-party service providers; investment performance reports and related financial information for the Fund; reports on expenses and shareholder services; legal and compliance matters; risk controls; pricing and other services provided by the Manager and its affiliates; and management fees charged by the Manager and its affiliates to US funds and other accounts, including management’s explanation of differences among accounts where relevant. The Board acknowledged the ongoing integration of the Putnam family of funds into the Franklin Templeton (FT) family of funds and management’s continued development of strategies to address areas of heightened concern in the registered fund industry, including various regulatory initiatives and continuing geopolitical concerns.
The Board also reviewed and considered the benefits provided to Fund shareholders of investing in a fund that is part of the FT family of funds. The Board noted the financial position of Franklin Resources, Inc. (FRI), the Manager’s parent, and its commitment to the registered fund business as evidenced by its continued introduction of new funds, reassessment of the fund offerings in response to FT acquisitions and the market environment, as well as project initiatives and capital investments relating to the services provided to the Fund by the FT organization. The Board specifically noted FT’s commitment to technological innovation and advancement, including its initiative to create a new enterprise-wide artificial intelligence platform.
| 22 | Semi-Annual Report | franklintempleton.com |
| Board Approval of Management and Subadvisory Agreements | For the period covered in the report (continued) |
Following consideration of such information, the Board was satisfied with the nature, extent and quality of services provided by the Manager and its affiliates to the Fund and its shareholders.
Fund Performance
The Board reviewed and considered the performance results of the Fund over various time periods ended December 31, 2023. The Board considered the performance returns for the Fund in comparison to the performance returns of registered funds deemed comparable to the Fund included in a universe (Performance Universe) selected by Broadridge Financial Solutions, Inc. (Broadridge), an independent provider of investment company data. The Board received a description of the methodology used by Broadridge to select the registered funds included in a Performance Universe. The Board also reviewed and considered Fund performance reports provided and discussions that occurred with portfolio managers at Board meetings throughout the year. The Board referenced earlier discussions with management on matters related to, among other things, the expansion and rationalization of the overall product line, including investments in novel asset classes, as well as the growth in assets from internal and external clients. In addition, the Board acknowledged information provided regarding management’s strategy to grow market share through the use of innovative data and technology and investments in marketing and distribution. The Board noted management’s high level of client engagement and the strength of its internal audit and compliance program. A summary of the Fund’s performance results is below.
The Performance Universe for the Fund included the Fund and all retail and institutional multi-cap value funds and exchange-traded funds. The Fund adopted the performance of the BrandywineGLOBAL—Dynamic US Large Cap Value Fund (predecessor mutual fund) as the result of a reorganization of the predecessor mutual fund into the Fund that was effective after the market close on October 28, 2022 (Reorganization). Prior to the Reorganization, the Fund had not yet commenced operations. The Fund’s returns for periods ending on or prior to October 28, 2022 are those of the predecessor mutual fund, except that performance prior to October 31, 2014, is that of an unregistered predecessor private fund. The Board reviewed and considered the performance results of the Fund over various periods ended December 31, 2023, noting the Reorganization. The Board further noted that the Fund’s annualized total return for the five-year period was above the median of its Performance Universe, but for the one-, three- and 10-year periods was below the median of its Performance Universe. The Board discussed this performance with management and management explained that the Fund’s underperformance relative to the Fund’s Performance Universe and its benchmark, the Russell 1000 Value Index, over the past three years was attributable to the Fund’s performance over the one-year period, during which the Fund was overweight exposure to stocks with high return on equity ratios which underperformed companies with low return on equity ratios. Management also explained that the Fund’s securities selection in the financials, communication services and consumer discretionary sectors also contributed to the Fund’s underperformance. Management discussed with the Board management’s conviction in the Fund’s investment strategies, noting that it did not anticipate making changes to the Fund’s investment process at this time. The Board concluded that the Fund’s Management Agreements should be continued for an additional one-year period, while management’s efforts continue to be closely monitored.
Comparative Fees and Expenses
The Board reviewed and considered information regarding the Fund’s actual total expense ratio, noting that the Fund pays a Unified Fee (as defined below). The Board considered the actual total expense ratio and, separately, the contractual management fee rate, without the effect of fee waivers, if any (Management Rate), of the Fund in comparison to the median expense ratio and median Management Rate, respectively, of other exchange-traded funds deemed comparable to and with a similar expense structure to the Fund selected by Broadridge (Expense Group). Broadridge fee and expense data is based upon information taken from each fund’s most recent annual or semi-annual report, which reflects historical asset levels that may be quite different from those currently existing, particularly in a period of market volatility. While recognizing such inherent limitation and the fact that expense ratios and Management Rates generally increase as assets decline and decrease as assets grow, the Board believed the independent analysis conducted by Broadridge to be an appropriate measure of comparative fees and expenses. The Broadridge Management Rate includes administrative charges. The Board received a description of the methodology used by Broadridge to select the exchange-traded funds included in an Expense Group.
The Expense Group for the Fund was comprised of actively managed exchange-traded funds, which included the Fund and eight other multi-cap value funds. The Board noted that the Management Rate and actual total expense ratio for the Fund were
| franklintempleton.com | Semi-Annual Report | 23 |
| Board Approval of Management and Subadvisory Agreements | For the period covered in the report (continued) |
above the medians of its Expense Group. The Board discussed the above median Management Rate and actual total expense ratio with management and management explained that following the Reorganization, the Fund’s Management Rate was reduced from 65 basis points to 49 basis points. The Board also noted that the Fund’s Management Rate was 2.5 basis points above the Expense Group median. The Board further noted that the Fund has a unified management fee (Unified Fee). The Board also noted that pursuant to the Unified Fee arrangement FAV reimburses the Fund for all of its acquired fund fees and expenses (if any) and pays all of the ordinary operating expenses of the Fund, except for (i) the Fund’s Unified Fee, (ii) future Rule 12b-1 fees (if any), (iii) brokerage expenses, (iv) taxes, (v) interest (including borrowing costs and dividend expenses on securities sold short and overdraft charges), (vi) litigation expenses (including litigation to which the Trust or the Fund may be a party and indemnification of the Trustees and officers with respect thereto), and (vii) other non-routine or extraordinary expenses. The Board also noted that BrandywineGlobal is paid by FAV out of the management fee FAV receives from the Fund and that the allocation of the fee between FAV and BrandywineGlobal reflected the services provided by each to the Fund. The Board concluded that the Management Rate charged to the Fund and the sub-advisory fee paid to BrandywineGlobal are reasonable.
Profitability
The Board reviewed and considered information regarding the profits realized by the Manager and its affiliates in connection with the operation of each Fund. In this respect, the Board considered the Fund profitability analysis provided by the Manager that addresses the overall profitability of FT’s US fund business, as well as its profits in providing investment management and other services to each of the individual Funds during the 12-month period ended September 30, 2023 (the most recent fiscal year-end for FRI). The Board noted that although management continually makes refinements to its methodologies used in calculating profitability in response to organizational and product-related changes, the overall methodology has remained consistent with that used in the Fund’s profitability report presentations from prior years. The Board also noted that an independent registered public accounting firm has been engaged by the Manager to periodically review and assess the allocation methodologies to be used solely by the Fund’s Board with respect to the profitability analysis.
The Board noted management’s belief that costs incurred in establishing the infrastructure necessary for the type of fund operations conducted by the Manager and its affiliates may not be fully reflected in the expenses allocated to the Fund in determining its profitability, as well as the fact that the level of profits, to a certain extent, reflected operational cost savings and efficiencies initiated by management. As part of this evaluation, the Board considered management’s outsourcing of certain operations, which effort has required considerable up-front expenditures by the Manager but, over the long run, is expected to result in greater efficiencies. The Board also noted management’s expenditures in improving shareholder services provided to the Fund, as well as the need to implement systems and meet additional regulatory and compliance requirements resulting from recent US Securities and Exchange Commission and other regulatory requirements.
The Board also considered the extent to which the Manager and its affiliates might derive ancillary benefits from fund operations, including potential benefits resulting from personnel and systems enhancements necessitated by fund growth, as well as increased leverage with service providers and counterparties. Based upon its consideration of all these factors, the Board concluded that the level of profits realized by the Manager and its affiliates from providing services to the Fund was not excessive in view of the nature, extent and quality of services provided to the Fund.
Economies of Scale
The Board reviewed and considered the extent to which the Manager may realize economies of scale, if any, as the Fund grows larger and whether the Fund’s management fee structure reflects any economies of scale for the benefit of shareholders. The Board considered that the Fund would likely experience benefits from the Unified Fee at the Fund’s projected asset levels because of FAV’s contractual requirement to bear most of the Fund’s ordinary operating expenses. The Board noted that, under the Unified Fee, it is not anticipated that the Fund will generate significant, if any, profit for FAV and/or its affiliates for some time. The Board also considered management’s view that any analyses of potential economies of scale in managing a particular fund are inherently limited in light of the joint and common costs and investments the Manager incurs across the FT family of funds as a whole. The Board concluded that to the extent economies of scale may be realized by the Manager and its affiliates, the Fund’s management fee structure provided a sharing of benefits with the Fund and its shareholders as the Fund grows.
| 24 | Semi-Annual Report | franklintempleton.com |
| Board Approval of Management and Subadvisory Agreements | For the period covered in the report (continued) |
Conclusion
Based on its review, consideration and evaluation of all factors it believed relevant, including the above-described factors and conclusions, the Board unanimously approved the continuation of each Management Agreement for an additional one-year period.
FRANKLIN TEMPLETON ETF TRUST
BrandywineGLOBAL – U.S. Fixed Income ETF
(Fund)
At a meeting held on March 3, 2023 (Meeting), the Board of Trustees (Board) of Franklin Templeton ETF Trust (Trust), including a majority of the trustees who are not “interested persons” as defined in the Investment Company Act of 1940 (Independent Trustees), reviewed and approved (i) an investment management agreement between Franklin Advisers, Inc. (FAV) and the Trust; and (ii) an investment sub-advisory agreement between FAV and Brandywine Global Investment Management, LLC (BrandywineGlobal), on behalf of the Fund, for an initial two-year period (each a Management Agreement). The Independent Trustees received advice from and met separately with Independent Trustee counsel in considering whether to approve each Management Agreement. FAV and BrandywineGlobal are each referred to herein as a Manager.
In considering the approval of each Management Agreement, the Board reviewed and considered information provided by each Manager at the Meeting and throughout the year at meetings of the Board and its committees. The Board reviewed and considered all of the factors it deemed relevant in approving each Management Agreement, including, but not limited to: (i) the nature, extent and quality of the services to be provided by each Manager; (ii) the costs of the services to be provided by each Manager; and (iii) the extent to which economies of scale may be realized as the Fund grows. The Board also reviewed and considered the form of the Management Agreement and the terms of the Management Agreement which were explained at the Meeting. The Board noted that FAV would provide general investment management and administrative services and that the Fund would operate under a unified management fee structure whereby FAV would reimburse the Fund for all acquired fund fees and expenses and pay all of the ordinary operating expenses of the Fund, except for certain excluded items (Unified Fee). The Board also noted that the Unified Fee was consistent with the current management fee structure for the existing Franklin Templeton (FT) exchange-traded funds.
In approving each Management Agreement, the Board, including a majority of the Independent Trustees, determined that the terms of the proposed Management Agreements are fair and reasonable and that such Management Agreements are in the best interests of the Fund and its shareholders. While attention was given to all information furnished, the following discusses some primary factors relevant to the Board’s determination.
Nature, Extent and Quality of Services
The Board reviewed and considered information regarding the nature, extent and quality of investment management services to be provided by the applicable Managers and their affiliates to the Fund and its shareholders. This information included, among other things, the Fund’s proposed investment strategies and the ability of the applicable Managers to implement such investment strategies; the qualifications, background and experience of the investment personnel that will be responsible for the day-to-day portfolio management of the Fund; each Manager’s experience as the Manager of other funds and accounts, including other series of the Trust and other funds in the FT family of funds; each Manager’s strength and reputation within the industry; the personnel, operations, financial condition, and investment management capabilities, methodologies and resources of each Manager; and each Manager’s compliance capabilities, as demonstrated by, among other things, its policies and procedures reasonably designed to prevent violations of the Federal Securities Laws (as defined in Rule 38a-1 of the Investment Company Act of 1940). Following consideration of such information, the Board was satisfied with the nature, extent and quality of services to be provided by each Manager and its affiliates to the Fund and its shareholders.
Fund Performance
The Board noted that, as the Fund had not yet commenced investment operations, there was no investment performance for the Fund. The Board also considered the proposed performance benchmark for the Fund and how such benchmark would be utilized to measure performance of each Manager.
Comparative Fees and Expenses
| franklintempleton.com | Semi-Annual Report | 25 |
| Board Approval of Management and Subadvisory Agreements | For the period covered in the report (continued) |
The Board reviewed and considered information regarding the Fund’s proposed total expense ratio, noting that the Fund will pay a Unified Fee. The Board considered the proposed total expense ratio and, separately, the proposed contractual management fee rate, without the effect of fee waivers, if any (Management Rate) of the Fund in comparison to the median expense ratio and median Management Rate, respectively, of other exchange-traded funds deemed comparable to and with a similar expense structure as the Fund (Expense Group) as selected by Broadridge Financial Solutions, Inc. (Broadridge), an independent provider of investment company data. Broadridge fee and expense data is based upon information taken from each fund’s most recent annual report (excluding the Fund), which reflects historical asset levels that may be quite different from those currently existing, particularly in a period of market volatility. While recognizing such inherent limitation and the fact that expense ratios and Management Rates generally increase as assets decline and decrease as assets grow, the Board believed the independent analysis conducted by Broadridge to be an appropriate measure of comparative fees and expenses. The Broadridge Management Rate includes administrative charges. The Board received a description of the methodology used by Broadridge to select the exchange-traded funds included in the Expense Group.
The Expense Group for the Fund was comprised of actively managed exchange-traded funds, which included the Fund and five core bond funds. The Board noted that the proposed Management Rate and estimated total expense ratio for the Fund were above the median of its Expense Group. The Board further noted that pursuant to the proposed Unified Fee arrangement FAV would reimburse the Fund for all of its acquired fund fees and expenses (if any) and pay all of the ordinary operating expenses of the Fund, except for (i) the Fund’s Unified Fee, (ii) payments under the Fund’s Rule 12b-1 plan (if any), (iii) brokerage expenses (including any costs incidental to transactions in portfolio securities or instruments), (iv) taxes, (v) interest (including borrowing costs and dividend expenses on securities sold short and overdraft charges), (vi) litigation expenses (including litigation to which the Trust or the Fund may be a party and indemnification of the Trustees and officers with respect thereto), and (vii) other non-routine or extraordinary expenses. The Board also noted that BrandywineGlobal would be paid by FAV out of the Unified Fee FAV receives from the Fund and that the allocation of the fee between FAV and BrandywineGlobal reflected the services provided by BrandywineGlobal to the Fund. After consideration of the above, the Board concluded that the Management Rate to be charged to the Fund and the sub-advisory fee to be paid to BrandywineGlobal are reasonable.
Profitability
The Board noted that the Managers (and their affiliates) could not report any financial results from their relationships with the Fund because the Fund has not yet commenced investment operations, and thus, the Board could not evaluate each Manager’s (or its affiliates’) profitability with respect to the Fund.
Economies of Scale
The Board reviewed and considered the extent to which each Manager may realize economies of scale, if any, as the Fund grows larger and whether the Fund’s management fee structure reflects any economies of scale for the benefit of shareholders. With respect to possible economies of scale in the future, the Board noted that it is not anticipated that the Fund will generate significant, if any, profit for the Managers and/or their affiliates for some time.
Conclusion
Based on its review, consideration and evaluation of all factors it believed relevant, including the above-described factors and conclusions, the Board unanimously approved each Management Agreement for the Fund for an initial two-year period.
| 26 | Semi-Annual Report | franklintempleton.com |
© 2024 Franklin Templeton Investments. All rights reserved.
Clearbridge Sustainable Infrastructure ETF
Financial Statements and Other Important Information
| Semi-Annual | September 30, 2024 |
| Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Financial Highlights
ClearBridge Sustainable Infrastructure ETF
| | Six Months Ended
September 30, 2024
(unaudited) | Year Ended March 31,
2024 | Period Ended
March 31,
2023a |
| |
| Per share operating performance | | | |
| (for a share outstanding throughout the period) | | | |
| Net asset value, beginning of period | $23.72 | $25.22 | $25.00 |
| Income from investment operationsb: | | | |
| Net investment incomec | 0.49 | 0.69 | 0.13 |
| Net realized and unrealized gains (losses) | 2.29 | (1.43) | 0.09 |
| Total from investment operations | 2.78 | (0.74) | 0.22 |
| Less distributions from net investment income | (0.19) | (0.76) | — |
| Net asset value, end of period | $26.31 | $23.72 | $25.22 |
| Total returnd | 11.76% | (3.03)% | 0.88% |
| Ratios to average net assetse | | | |
| Total expenses | 0.59% | 0.59% | 0.59% |
| Net investment income | 4.02% | 2.89% | 1.82% |
| Supplemental data | | | |
| Net assets, end of period (000’s) | $9,210 | $8,304 | $2,522 |
| Portfolio turnover ratef | 5.70%g | 37.99%g | 6.33%g |
| aFor the period December 14, 2022 (commencement of operations) to March 31, 2023. |
| bThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of Creation Unit Fund shares in relation to income earned and/or fluctuating fair value of the investments of the Fund. |
| cBased on average daily shares outstanding. |
| dTotal return is not annualized for periods less than one year. Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. |
| eRatios are annualized for periods less than one year. |
| fPortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash ("Cash creations"). |
| gPortfolio turnover rate excluding cash creations was as follows: | 5.70% | 36.79% | 6.33% |
| franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Semi-Annual Report | 1 |
Franklin Templeton ETF Trust
Schedule of Investments, September 30, 2024 (unaudited)
ClearBridge Sustainable Infrastructure ETF
| | | Industry | Shares | | Value |
| | Common Stocks 96.0% | | | | |
| | Australia 1.6% | | | | |
| | Atlas Arteria Ltd. | Transportation Infrastructure | 42,274 | | $ 143,412 |
| | Brazil 5.0% | | | | |
| | CCR SA | Transportation Infrastructure | 59,998 | | 133,309 |
| | Equatorial Energia SA | Electric Utilities | 25,298 | | 150,976 |
| a | Equatorial Energia SA | Electric Utilities | 1,727 | | 10,319 |
| | Rumo SA | Ground Transportation | 45,052 | | 165,456 |
| | | | | | 460,060 |
| | Canada 3.1% | | | | |
| b | Hydro One Ltd. | Electric Utilities | 8,296 | | 287,884 |
| | Denmark 4.0% | | | | |
| a,b | Orsted AS | Independent Power Producers & Energy Traders | 5,573 | | 371,450 |
| | France 4.5% | | | | |
| | Getlink SE | Transportation Infrastructure | 23,345 | | 417,388 |
| | Germany 3.0% | | | | |
| | E.ON SE | Multi-Utilities | 18,538 | | 276,306 |
| | Italy 9.9% | | | | |
| b | Enav SpA | Transportation Infrastructure | 56,720 | | 252,197 |
| | Enel SpA | Electric Utilities | 48,246 | | 386,338 |
| | Terna - Rete Elettrica Nazionale | Electric Utilities | 30,264 | | 273,181 |
| | | | | | 911,716 |
| | Netherlands 3.2% | | | | |
| | Ferrovial SE | Construction & Engineering | 6,759 | | 291,024 |
| | Portugal 3.9% | | | | |
| | EDP SA | Electric Utilities | 79,289 | | 362,988 |
| | Spain 9.8% | | | | |
| a,b | Cellnex Telecom SA | Diversified Telecommunication Services | 5,278 | | 214,591 |
| | Iberdrola SA | Electric Utilities | 14,047 | | 217,756 |
| | Redeia Corp. SA | Electric Utilities | 23,991 | | 467,762 |
| | | | | | 900,109 |
| | United Kingdom 14.6% | | | | |
| | National Grid PLC | Multi-Utilities | 22,229 | | 307,114 |
| | Pennon Group PLC | Water Utilities | 27,710 | | 220,039 |
| | Severn Trent PLC | Water Utilities | 11,442 | | 405,487 |
| | SSE PLC | Electric Utilities | 7,610 | | 192,210 |
| | United Utilities Group PLC | Water Utilities | 15,498 | | 217,341 |
| | | | | | 1,342,191 |
| | United States 33.4% | | | | |
| | American Tower Corp. | Specialized REITs | 1,269 | | 295,119 |
| | American Water Works Co., Inc. | Water Utilities | 2,143 | | 313,392 |
| | Crown Castle, Inc. | Specialized REITs | 3,054 | | 362,296 |
| | CSX Corp. | Ground Transportation | 10,594 | | 365,811 |
| | Entergy Corp. | Electric Utilities | 1,661 | | 218,604 |
| | Eversource Energy | Electric Utilities | 5,160 | | 351,138 |
| | Exelon Corp. | Electric Utilities | 4,769 | | 193,383 |
| | NextEra Energy Partners LP | Independent Power Producers & Energy Traders | 8,220 | | 227,036 |
| | NextEra Energy, Inc. | Electric Utilities | 5,375 | | 454,349 |
| 2 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investment
ClearBridge Sustainable Infrastructure ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | United States (continued) | | | | |
| | PG&E Corp. | Electric Utilities | 14,816 | | $ 292,912 |
| | | | | | 3,074,040 |
| | Total Common Stocks (Cost $7,963,221) | | | | 8,838,568 |
| | Total Investments before Short-Term Investments (Cost $7,963,221) | | | | 8,838,568 |
| | Short-Term Investments 3.9% | | | | |
| | Money Market Funds 3.9% | | | | |
| | United States 3.9% | | | | |
| c | JPMorgan 100% U.S. Treasury Securities Money Market Fund, 4.98% | Money Market Funds | 360,677 | | 360,677 |
| | Total Short-Term Investments (Cost $360,677) | | | | 360,677 |
| | Total Investments (Cost $8,323,898) 99.9% | | | | 9,199,245 |
| | Other Assets, less Liabilities 0.1% | | | | 10,763 |
| | Net Assets 100.0% | | | | $ 9,210,008 |
| aNon-income producing. |
| bSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At September 30, 2024, the value of was $1,126,122, representing 12.2% of net assets. |
| cThe rate shown is the annualized seven-day effective yield at period end. |
See Abbreviations on page 11.
| franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Semi-Annual Report | 3 |
FRANKLIN TEMPLETON ETF TRUST
FINANCIAL STATEMENTS
Statement of Assets and Liabilities
September 30, 2024 (unaudited)
ClearBridge Sustainable Infrastructure ETF
| Assets: | |
| Investments in securities: | |
| Cost – Unaffiliated issuers | $ 8,323,898 |
| Value – Unaffiliated issuers | $ 9,199,245 |
| Foreign currency, at value (cost $1,647) | 1,642 |
| Receivables: | |
| Dividends and interest | 13,849 |
| Total assets | 9,214,736 |
| Liabilities: | |
| Payables: | |
| Investment securities purchased | 365 |
| Management fees | 4,363 |
| Total liabilities | 4,728 |
| Net assets, at value | $ 9,210,008 |
| Net assets consist of: | |
| Paid-in capital | $ 8,407,126 |
| Total distributable earnings (loss) | 802,882 |
| Net assets, at value | $ 9,210,008 |
| Shares outstanding | 350,000 |
| Net asset value per share | $26.31 |
| 4 | Semi-Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
FINANCIAL STATEMENTS
Statement of Operations
for the period ended September 30, 2024 (unaudited)
ClearBridge Sustainable Infrastructure ETF
| Investment income: | |
| Dividends: (net of foreign taxes)a | |
| Unaffiliated issuers | $ 189,243 |
| Interest: | |
| Unaffiliated issuers | 6,810 |
| Total investment income | 196,053 |
| Expenses: | |
| Management fees (Note 3a) | 25,130 |
| Total expenses | 25,130 |
| Expenses waived/paid by affiliates | (187) |
| Net expenses | 24,943 |
| Net investment income | 171,110 |
| Realized and unrealized gains (losses): | |
| Net realized gain (loss) from: | |
| Investments: | |
| Unaffiliated issuers | (57,266) |
| Foreign currency transactions | 2,071 |
| Net realized gain (loss) | (55,195) |
| Net change in unrealized appreciation (depreciation) on: | |
| Investments: | |
| Unaffiliated issuers | 855,556 |
| Translation of other assets and liabilities denominated in foreign currencies | 294 |
| Net change in unrealized appreciation (depreciation) | 855,850 |
| Net realized and unrealized gain (loss) | 800,655 |
| Net increase (decrease) in net assets resulting from operations | $971,765 |
| aForeign taxes withheld on dividends | $15,163 |
| franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Semi-Annual Report | 5 |
FRANKLIN TEMPLETON ETF TRUST
FINANCIAL STATEMENTS
Statements of Changes in Net Assets
ClearBridge Sustainable Infrastructure ETF
| | Six Months Ended
September 30, 2024
(unaudited) | Year Ended
March 31, 2024
|
| Increase (decrease) in net assets: | | |
| Operations: | | |
| Net investment income | $ 171,110 | $ 178,868 |
| Net realized loss | (55,195) | (171,235) |
| Net change in unrealized appreciation (depreciation) | 855,850 | 8,211 |
| Net increase (decrease) in net assets resulting from operations | 971,765 | 15,844 |
| Distributions to shareholders (Note 1e) | (65,285) | (201,196) |
| Capital share transactions: (Note 2) | — | 5,966,959 |
| Net increase (decrease) in net assets | 906,480 | 5,781,607 |
| Net assets: | | |
| Beginning of period | 8,303,528 | 2,521,921 |
| End of period | $ 9,210,008 | $ 8,303,528 |
| 6 | Semi-Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
Notes to Financial Statements (unaudited)
1. Organization and Significant Accounting Policies
Franklin Templeton ETF Trust (Trust) is registered under the Investment Company Act of 1940 (1940 Act) as an open-end management investment company, consisting of forty-nine separate funds, one of which is included in this report (Fund). The Fund follows the accounting and reporting guidance in Financial Accounting Standards Board ("FASB") Accounting Standard Codification Topic 946, Financial Services - Investment Companies ("ASC 946"), and applies the specialized accounting and reporting guidance in U.S. Generally Accepted Accounting Principles (U.S. GAAP), including, but not limited to, ASC 946. The Fund is an exchange traded fund (ETF) and seek to provide the investment results that closely correspond, before fees and expenses, to the performance of Fund corresponding underlying index.
The following summarizes the Fund’s significant accounting policies.
a. Financial Instrument Valuation
The Fund’s investments in financial instruments are carried at fair value daily. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. The Fund calculates the net asset value (NAV) per share each business day as of 4 p.m. Eastern time or the regularly scheduled close of the New York Stock Exchange (NYSE), whichever is earlier. Under compliance policies and procedures approved by the Fund’s Board of Trustees (the Board), the Board has designated the Fund’s investment manager as the valuation designee and has responsibility for oversight of valuation. The investment manager is assisted by the Fund’s administrator in performing this responsibility, including leading the cross-functional Valuation Committee (VC).
The Fund may utilize independent pricing services, quotations from securities and financial instrument dealers, and other market sources to determine fair value.
Equity securities, exchange trade funds and derivative financial instruments listed on an exchange or on the NASDAQ National Market System are valued at the last quoted sale price or the official closing price of the day, respectively. Foreign equity securities are valued as of the close of trading on the foreign stock exchange on which the security is primarily traded or as of 4 p.m. Eastern time. The value is then converted into its U.S. dollar equivalent at the foreign exchange rate in effect at 4 p.m. London time on the
day that the value of the security is determined. Over-the-counter (OTC) securities are valued within the range of the most recent quoted bid and ask prices. Securities that trade in multiple markets or on multiple exchanges are valued according to the broadest and most representative market. Certain equity securities are valued based upon fundamental characteristics or relationships to similar securities.
Investments in open-end mutual fund are valued at the closing NAV.
The Fund has procedures to determine the fair value of financial instruments for which market prices are not reliable or readily available. Under these procedures, the Fund primarily employs a market-based approach which may use related or comparable assets or liabilities, recent transactions, market multiples, book values, and other relevant information for the investment to determine the fair value of the investment. An income-based valuation approach may also be used in which the anticipated future cash flows of the investment are discounted to calculate fair value. Discounts may also be applied due to the nature or duration of any restrictions on the disposition of the investments. Due to the inherent uncertainty of valuations of such investments, the fair values may differ significantly from the values that would have been used had an active market existed.
Trading in securities on foreign securities stock exchanges and OTC markets may be completed before 4 p.m. Eastern time. In addition, trading in certain foreign markets may not take place on Fund business day. Occasionally, events occur between the time at which trading in a foreign security is completed and 4 p.m. Eastern time that might call into question the reliability of the value of a portfolio security held by the Fund. As a result, differences may arise between the value of the Fund’s portfolio securities as determined at the foreign market close and the latest indications of value at 4 p.m. Eastern time. In order to minimize the potential for these differences, an independent pricing service may be used to adjust the Fund’s portfolio securities to the latest indications of fair value at 4 p.m. Eastern time on September 30, 2024.
When the last day of the reporting period is a non-business day, certain foreign markets may be open on those days that the Fund’s NAV is not calculated, which could result in differences between the value of the Fund’s portfolio securities on the last business day and the last calendar day of the reporting period. Any significant security valuation
| franklintempleton.com | Semi-Annual Report | 7 |
FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. Organization and Significant Accounting Policies (continued)
a. Financial Instrument Valuation (continued)
changes due to an open foreign market are adjusted and reflected by the Fund for financial reporting purposes
b. Foreign Currency Translation
Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars based on the exchange rate of such currencies against U.S. dollars on the date of valuation. The Fund may enter into foreign currency exchange contracts to facilitate transactions denominated in a foreign currency. Purchases and sales of securities, income and expense items denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date. Portfolio securities and assets and liabilities denominated in foreign currencies contain risks that those currencies will decline in value relative to the U.S. dollar. Occasionally, events may impact the availability or reliability of foreign exchange rates used to convert the U.S. dollar equivalent value. If such an event occurs, the foreign exchange rate will be valued at fair value using procedures approved by the Board.
The Fund does not separately report the effect of changes in foreign exchange rates from changes in market prices on securities held. Such changes are included in net realized and unrealized gain or loss from investments in the Statements of Operations.
Realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions and the difference between the recorded amounts of dividends, interest, and foreign withholding taxes and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in foreign exchange rates on foreign denominated assets and liabilities other than investments in securities held at the end of the reporting period.
c. Derivative Financial Instruments
During the period ended September 30, 2024, the Fund did not invest in derivative instruments.
d. Income and Deferred Taxes
It is Fund’s policy to qualify as a regulated investment company under the Internal Revenue Code. The Fund
intends to distribute to shareholders substantially all of its taxable income and net realized gains to relieve it from federal income and excise taxes. As a result, no provision for U.S. federal income taxes is required.
The Fund may be subject to foreign taxation related to income received, capital gains on the sale of securities and certain foreign currency transactions in the foreign jurisdictions in which the Fund invests. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Fund invest. When a capital gain tax is determined to apply, Fund records an estimated deferred tax liability in an amount that would be payable if the securities were disposed of on the valuation date.
The Fund may recognize an income tax liability related to its uncertain tax positions under U.S. GAAP when the uncertain tax position has a less than 50% probability that it will be sustained upon examination by the tax authorities based on its technical merits. As of September 30, 2024, Fund has determined that no tax liability is required in its financial statements related to uncertain tax positions for any open tax years (or expected to be taken in future tax years). Open tax years are those that remain subject to examination and are based on the statute of limitations in each jurisdiction in which the Fund invests.
e. Security Transactions, Investment Income, Expenses and Distributions
Security transactions are accounted for on trade date. Realized gains and losses on security transactions are determined on a specific identification basis. Interest Income (including interest income from payment-in-kind securities, if any) and estimated expenses are accrued daily. Dividend income is recorded on the ex-dividend date except for certain dividends from securities where the dividend rate is not available. In such cases, the dividend is recorded as soon as the information is received by the Fund. Distributions to shareholders are recorded on the ex-dividend date. Distributable earnings are determined according to income tax regulations (tax basis) and may differ from earnings recorded in accordance with U.S. GAAP. These differences may be permanent or temporary. Permanent differences are reclassified among capital accounts to reflect their tax character. These reclassifications have no impact on net assets or the results of operations. Temporary differences are not reclassified, as they may reverse in subsequent periods.
| 8 | Semi-Annual Report | franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. Organization and Significant Accounting Policies (continued)
e. Security Transactions, Investment Income, Expenses and Distributions (continued)
Common expenses incurred by the Trust are allocated to the Fund based on the ratio of net assets of Fund to the combined net assets of the Trust. Certain Fund specific expenses are allocated directly to the Fund that incurred the expense. These expenses are paid by the Fund or by the investment manager, as applicable, according to the terms of the unified management fee agreement.
f. Accounting Estimates
The preparation of financial statement in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements and the amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
g. Guarantees and Indemnifications
Under the Trust’s organizational documents, its officers and trustees are indemnified by the Trust against certain liabilities arising out of the performance of their duties to the Trust. Additionally, in the normal course of business, the Trust, on behalf of the Fund, enters into contracts with service providers that contain general indemnification clauses. The Trust’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Trust that have not yet occurred. Currently, the Trust expects the risk of loss to be remote.
2. Shares of Beneficial Interest
Shares of the Fund is issued and redeemed at their respective NAV only in aggregations of a specified number of shares or multiples thereof (Creation Units). Only certain large institutional investors (Authorized Participants) may engage in creation or redemption transactions directly with the Fund. Once created, shares of the Fund generally trade in the secondary market in amounts less than one Creation Unit. The market price of the Fund’s shares will be based on the price in the secondary market which may be at, above or below the most recent NAV. Creation Units may be issued and redeemed in exchange for a designated portfolio of securities and/or cash (which may include cash in lieu of certain securities).
Authorized participants pay a standard transaction fee to the shareholder servicing agent when purchasing or redeeming Creation Units of the Fund regardless of the number of Creation Units that are being created or redeemed on the same day by the Authorized Participant. The standard transaction fee is imposed to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units and is not charged to or paid by the Fund.
In addition, for cash Creation Unit transactions, a variable fee for creation transactions and redemption transactions may be charged to the Authorized Participant to cover certain brokerage, tax, foreign exchange, execution, market impact and other costs and expenses related to the execution of trades. Variable fees, if any, are included in capital share transactions in the Statements of Changes in Net Assets.
At September 30, 2024, there were an unlimited number of shares authorized (without par value). Transactions in the Fund’s shares were as follows:
| | Six Months Ended
September 30, 2024 | Year Ended
March 31, 2024 |
| | Shares | Amount | Shares | Amount |
| Shares sold | — | $ — | 300,000 | $ 7,059,636 |
| Shares redeemed | — | — | (50,000) | (1,092,677) |
| Net increase (decrease) | — | $ — | 250,000 | $ 5,966,959 |
3. Transactions with Affiliates
Franklin Resources, Inc. is the holding company for various subsidiaries that together are referred to as Franklin Templeton. Certain officers and trustees of the Fund are also officers and/or directors of the following subsidiaries:
| franklintempleton.com | Semi-Annual Report | 9 |
FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
3. Transactions with Affiliates (continued)
| Subsidiary | Affiliation |
| Franklin Advisers, Inc. (Advisers) | Investment manager |
| Franklin Advisory Services, LLC (FASL) | Investment manager |
| Franklin Templeton Services, LLC (FT Services) | Administrative manager |
| Franklin Distributors, LLC (Distributors) | Principal underwriter |
a. Management fees
The Fund pay a unified management fee to Advisers whereby Advisers has agreed to reimburse the Fund’s acquired fund fees and expenses (if any) and pay all of the ordinary operating expenses of the Fund, including custody, transfer agency, and Trustee fees and expenses, among others, but excluding payments under the Fund’s Rule 12b-1 plan (if any), brokerage expenses (including any costs incidental to transactions in portfolio securities or instruments), taxes, interest (including borrowing costs and dividend expenses on securities sold short and overdraft charges), litigation expenses (including litigation to which the Trust or a Fund may be a party and indemnification of the Trustees and officers with respect thereto), and other non-routine or extraordinary expenses. The fee is calculated daily and paid monthly according to the terms of the management agreement.
The Fund pays gross effective investment management fees 0.59% per year on the average daily net assets of the Fund.
b. Administrative Fees
Under an agreement with Advisers, FT Services provides administrative services to the Fund. The fee is paid by Advisers based on the Fund’s average daily net assets, and is not an additional expense of the Fund.
c. Other Affiliated Transactions
At September 30, 2024, the shares of ClearBridge Sustainable Infrastructure ETF were owned by the following entity:
| Fund | Shares | Percentage of
Outstanding Sharesa |
| ClearBridge Sustainable Infrastructure ETF | | |
| Franklin Resources Inc. | 49,000 | 14.0% |
| aInvestment activities of significant shareholders could have a material impact on the Fund. |
4. Income Taxes
For tax purposes, capital losses may be carried over to offset future capital gains, if any. At March 31, 2024, the capital loss carryforwards were as follows:
| | Year Ended
March 31, 2024 | | | |
| Capital loss carryforwards not subject to expiration: | | | | |
| Long term | $ 22,738 | | | |
| Short term | 72,669 | | | |
| Total capital loss carryforwards | $ 95,407 | | | |
| 10 | Semi-Annual Report | franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
4. Income Taxes (continued)
At September 30, 2024, the cost of investments and net unrealized appreciation (depreciation) for income tax purposes were as follows:
| Cost of investments | $ 8,342,718 | | | |
| Unrealized appreciation | $ 1,072,424 | | | |
| Unrealized depreciation | (215,897) | | | |
| Net unrealized appreciation (depreciation) | $ 856,527 | | | |
Differences between income and/or capital gains as determined on a book basis and a tax basis are primarily due to differing treatments of in-kind transactions and wash sales.
5. Investment Transactions
Purchases and sales of investments (excluding short term securities and in-kind transactions, if any) for the period ended September 30, 2024, $468,006 and $521,551, respectively.
There were no In-kind transactions associated with creation and redemptions for the period ended September 30, 2024.
6. Fair Value Measurements
The Fund follow a fair value hierarchy that distinguishes between market data obtained from independent sources (observable inputs) and the Fund’s own market assumptions (unobservable inputs). These inputs are used in determining the value of the Fund’s financial instruments and are summarized in the following fair value hierarchy:
| • | Level 1 – quoted prices in active markets for identical financial instruments |
| • | Level 2 – other significant observable inputs (including quoted prices for similar financial instruments, interest rates, prepayment speed, credit risk, etc.) |
| • | Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of financial instruments) |
The input levels are not necessarily an indication of the risk or liquidity associated with financial instruments at that level.
A summary of inputs used as of September 30, 2024, in valuing the Fund’s assets and liabilities carried at fair value, is as follows:
| | Level 1 | Level 2 | Level 3 | Total |
| ClearBridge Sustainable Infrastructure ETF | | | | |
| Assets: | | | | |
| Investments in Securities:a | | | | |
| Equity Investmentsb | $ 8,828,249 | $ 10,319 | $ — | $ 8,838,568 |
| Short-Term Investments | 360,677 | — | — | 360,677 |
| Total Investments in Securities | $9,188,926 | $10,319 | $— | $9,199,245 |
| aFor detailed categories, see the accompanying Schedule of Investments. |
| bIncludes common stocks. |
7. Subsequent Events
The Fund has evaluated subsequent events through the issuance of these Financial Statements and determined that no events have occurred that require disclosure.
Abbreviations
| REIT | Real Estate Investment Trust |
| SPA | Standby Purchase Agreement |
| franklintempleton.com | Semi-Annual Report | 11 |
| Changes In and Disagreements With Accountants | For the period covered in the report |
Not Applicable.
| Results of Meeting of Shareholders | For the period covered in the report |
Not Applicable.
| Remuneration Paid to Directors, Officers, and Others | For the period covered in the report |
Not applicable. Remuneration paid to directors, officers and others is included as part of the all-inclusive management fee and not paid directly by the fund.
| 12 | Semi-Annual Report | franklintempleton.com |
| Board Approval of Management and Subadvisory Agreements | For the period covered in the report |
FRANKLIN TEMPLETON ETF TRUST
ClearBridge Sustainable Infrastructure ETF
(Fund)
At an in-person meeting held on May 29, 2024 (Meeting), the Board of Trustees (Board) of the Franklin Templeton ETF Trust (Trust), including a majority of the trustees who are not “interested persons” as defined in the Investment Company Act of 1940 (Independent Trustees), reviewed and approved the continuance of (i) the investment management agreement between Franklin Advisers, Inc. (FAI) and the Trust, on behalf of the Fund and (ii) the investment sub-advisory agreement between FAI and ClearBridge Investments (North America) Pty Limited (Sub-Adviser), an affiliate of FAI, on behalf of the Fund (each a Management Agreement) for an additional one-year period. The Independent Trustees received advice from and met separately with Independent Trustee counsel in considering whether to approve the continuation of each Management Agreement. FAI and the Sub-Adviser are each referred to herein as a Manager.
In considering the continuation of each Management Agreement, the Board reviewed and considered information provided by the Manager at the Meeting and throughout the year at meetings of the Board and its committees. The Board also reviewed and considered information provided in response to a detailed set of requests for information submitted to the Manager by Independent Trustee counsel on behalf of the Independent Trustees in connection with the annual contract renewal process. In addition, prior to the Meeting, the Independent Trustees held a virtual contract renewal meeting at which the Independent Trustees first conferred amongst themselves and Independent Trustee counsel about contract renewal matters, and then met with management to request additional information that the Independent Trustees reviewed and considered prior to and at the Meeting. The Board reviewed and considered all of the factors it deemed relevant in approving the continuance of each Management Agreement, including, but not limited to: (i) the nature, extent and quality of the services provided by the Manager; (ii) the investment performance of the Fund; (iii) the costs of the services provided and profits realized by the Manager and its affiliates from the relationship with the Fund; (iv) the extent to which economies of scale are realized as the Fund grows; and (v) whether fee levels reflect these economies of scale for the benefit of Fund investors.
In approving the continuance of each Management Agreement, the Board, including a majority of the Independent Trustees, determined, through the exercise of its business judgment, that the terms of each Management Agreement are fair and reasonable and that the continuance of each Management Agreement is in the best interests of the Fund and its shareholders. While attention was given to all information furnished, the following discusses some primary factors relevant to the Board’s determination.
Nature, Extent and Quality of Services
The Board reviewed and considered information regarding the nature, extent and quality of investment management services provided by the Manager and its affiliates to the Fund and its shareholders. This information included, among other things, the qualifications, background and experience of the senior management and investment personnel of the Manager, as well as information on succession planning where appropriate; the structure of investment personnel compensation; oversight of third-party service providers; investment performance reports and related financial information for the Fund; reports on expenses and shareholder services; legal and compliance matters; risk controls; pricing and other services provided by the Manager and its affiliates; and management fees charged by the Manager and its affiliates to US funds and other accounts, including management’s explanation of differences among accounts where relevant. The Board acknowledged the ongoing integration of the Putnam family of funds into the Franklin Templeton (FT) family of funds and management’s continued development of strategies to address areas of heightened concern in the registered fund industry, including various regulatory initiatives and continuing geopolitical concerns.
The Board also reviewed and considered the benefits provided to Fund shareholders of investing in a fund that is part of the FT family of funds. The Board noted the financial position of Franklin Resources, Inc. (FRI), the Manager’s parent, and its commitment to the registered fund business as evidenced by its continued introduction of new funds, reassessment of the fund offerings in response to FT acquisitions and the market environment, as well as project initiatives and capital investments relating to the services provided to the Fund by the FT organization. The Board specifically noted FT’s commitment to technological innovation and advancement, including its initiative to create a new enterprise-wide artificial intelligence platform.
| franklintempleton.com | Semi-Annual Report | 13 |
| Board Approval of Management and Subadvisory Agreements | For the period covered in the report (continued) |
Following consideration of such information, the Board was satisfied with the nature, extent and quality of services provided by the Manager and its affiliates to the Fund and its shareholders.
Fund Performance
The Board reviewed and considered the performance results of the Fund for the one-year period ended December 31, 2023, noting the Fund commenced operations on December 14, 2022. The Board considered the performance returns for the Fund in comparison to the performance returns of registered funds deemed comparable to the Fund included in a universe (Performance Universe) selected by Broadridge Financial Solutions, Inc. (Broadridge), an independent provider of investment company data. The Board received a description of the methodology used by Broadridge to select the registered funds included in a Performance Universe. The Board also reviewed and considered Fund performance reports provided and discussions that occurred with portfolio managers at Board meetings throughout the year. The Board referenced earlier discussions with management on matters related to, among other things, the expansion and rationalization of the overall product line, including investments in novel asset classes, as well as the growth in assets from internal and external clients. In addition, the Board acknowledged information provided regarding management’s strategy to grow market share through the use of innovative data and technology and investments in marketing and distribution. The Board noted management’s high level of client engagement and the strength of its internal audit and compliance program. A summary of the Fund’s performance results is below.
The Performance Universe for the Fund included the Fund and all retail and institutional industrials funds and exchange-traded funds. The Fund commenced operations on December 14, 2022, and thus has been in operation for less than three years. The Board noted that the Fund’s annualized total return for the one-year period was below the median and in the fifth quintile (worst) of its Performance Universe. The Board also noted that, although below median, the Fund’s annualized total return for the one-year period was 5.19%. The Board further noted the Fund’s short operating history. The Board discussed this performance with management and management confirmed its confidence in the Fund’s portfolio management team, noting that the Fund outperformed its benchmark, the FTSE Global Core Infrastructure 50/50 – Net Tax, for the one -year period ended December 31, 2023. The Board concluded that the Fund’s Management Agreement should be continued for an additional one-year period, while management’s efforts continue to be closely monitored.
Comparative Fees and Expenses
The Board reviewed and considered information regarding the Fund’s actual total expense ratio, noting that the Fund pays a Unified Fee (as defined below). The Board considered the actual total expense ratio and, separately, the contractual management fee rate, without the effect of fee waivers, if any (Management Rate), of the Fund in comparison to the median expense ratio and median Management Rate, respectively, of other exchange-traded funds deemed comparable to and with a similar expense structure to the Fund selected by Broadridge (Expense Group). Broadridge fee and expense data is based upon information taken from each fund’s most recent annual or semi-annual report, which reflects historical asset levels that may be quite different from those currently existing, particularly in a period of market volatility. While recognizing such inherent limitation and the fact that expense ratios and Management Rates generally increase as assets decline and decrease as assets grow, the Board believed the independent analysis conducted by Broadridge to be an appropriate measure of comparative fees and expenses. The Broadridge Management Rate includes administrative charges. The Board received a description of the methodology used by Broadridge to select the exchange-traded funds included in an Expense Group.
The Expense Group for the Fund was comprised of exchange-traded funds, which included the Fund, one other industrials fund, five global infrastructure funds, one specialty & miscellaneous fund and one natural resources fund. The Board noted that the Management Rate and actual total expense ratio for the Fund were above the medians of its Expense Group. The Board further noted that the Fund has a unified management fee (Unified Fee). The Board also noted that pursuant to the Unified Fee arrangement FAI reimburses the Fund for all of its acquired fund fees and expenses (if any) and pays all of the ordinary operating expenses of the Fund, except for (i) the Fund’s Unified Fee, (ii) future Rule 12b-1 fees (if any), (iii) brokerage expenses, (iv) taxes, (v) interest (including borrowing costs and dividend expenses on securities sold short and overdraft charges), (vi) litigation expenses (including litigation to which the Trust or the Fund may be a party and indemnification of the Trustees and officers with respect thereto), and (vii) other non-routine or extraordinary expenses. The Board discussed the above median Management Rate and actual total expense ratio with management and management explained
| 14 | Semi-Annual Report | franklintempleton.com |
| Board Approval of Management and Subadvisory Agreements | For the period covered in the report (continued) |
that many of the Fund’s Expense Group peers are passively managed whereas the Fund is actively managed and that passively managed funds have historically been priced lower than actively managed funds. Management further explained that each peer fund that had a Management Rate below the median of the Expense Group was a passively managed fund. The Board also noted that the Sub-Adviser is paid by FAI out of the management fee FAI receives from the Fund and that the allocation of the fee between FAI and the Sub-Adviser reflected the services provided by each to the Fund. The Board concluded that the Management Rate charged to the Fund and the sub-advisory fee paid to the Sub-Adviser are reasonable.
Profitability
The Board reviewed and considered information regarding the profits realized by the Manager and its affiliates in connection with the operation of each Fund. In this respect, the Board considered the Fund profitability analysis provided by the Manager that addresses the overall profitability of FT’s US fund business, as well as its profits in providing investment management and other services to each of the individual Funds during the 12-month period ended September 30, 2023 (the most recent fiscal year-end for FRI). The Board noted that although management continually makes refinements to its methodologies used in calculating profitability in response to organizational and product-related changes, the overall methodology has remained consistent with that used in the Fund’s profitability report presentations from prior years. The Board also noted that an independent registered public accounting firm has been engaged by the Manager to periodically review and assess the allocation methodologies to be used solely by the Fund’s Board with respect to the profitability analysis.
The Board noted management’s belief that costs incurred in establishing the infrastructure necessary for the type of fund operations conducted by the Manager and its affiliates may not be fully reflected in the expenses allocated to the Fund in determining its profitability, as well as the fact that the level of profits, to a certain extent, reflected operational cost savings and efficiencies initiated by management. As part of this evaluation, the Board considered management’s outsourcing of certain operations, which effort has required considerable up-front expenditures by the Manager but, over the long run, is expected to result in greater efficiencies. The Board also noted management’s expenditures in improving shareholder services provided to the Fund, as well as the need to implement systems and meet additional regulatory and compliance requirements resulting from recent US Securities and Exchange Commission and other regulatory requirements.
The Board also considered the extent to which the Manager and its affiliates might derive ancillary benefits from fund operations, including potential benefits resulting from personnel and systems enhancements necessitated by fund growth, as well as increased leverage with service providers and counterparties. Based upon its consideration of all these factors, the Board concluded that the level of profits realized by the Manager and its affiliates from providing services to the Fund was not excessive in view of the nature, extent and quality of services provided to the Fund.
Economies of Scale
The Board reviewed and considered the extent to which the Manager may realize economies of scale, if any, as the Fund grows larger and whether the Fund’s management fee structure reflects any economies of scale for the benefit of shareholders. The Board considered that the Fund would likely experience benefits from the Unified Fee at the Fund’s projected asset levels because of FAI’s contractual requirement to bear most of the Fund’s ordinary operating expenses. The Board noted that, under the Unified Fee, it is not anticipated that the Fund will generate significant, if any, profit for FAI and/or its affiliates for some time. The Board considered the Manager’s view that any analyses of potential economies of scale in managing a particular fund are inherently limited in light of the joint and common costs and investments the Manager incurs across the FT family of funds as a whole. The Board also noted that as of December 31, 2023, the Fund did not have an asset size that would likely enable it to achieve economies of scale. The Board also noted management’s representation that for the fiscal year ended September 30, 2023, the Fund did not experience a profit. The Board recognized that there would not likely be any economies of scale for the Fund until its assets grow.
Conclusion
Based on its review, consideration and evaluation of all factors it believed relevant, including the above-described factors and conclusions, the Board unanimously approved the continuation of each Management Agreement for an additional one-year period.
| franklintempleton.com | Semi-Annual Report | 15 |
© 2024 Franklin Templeton Investments. All rights reserved.
Western Asset Bond ETF
Financial Statements and Other Important Information
| Semi-Annual | September 30, 2024 |
| Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Financial Highlights
Western Asset Bond ETF
| | Six Months Ended
September 30, 2024
(unaudited) | Period Ended
March 31,
2024a |
| |
| Per share operating performance | | |
| (for a share outstanding throughout the period) | | |
| Net asset value, beginning of period | $25.74 | $25.00 |
| Income from investment operationsb: | | |
| Net investment incomec | 0.66 | 0.70 |
| Net realized and unrealized gains (losses) | 0.76 | 0.61 |
| Total from investment operations | 1.42 | 1.31 |
| Less distributions from net investment income | (0.70) | (0.57) |
| Net asset value, end of period | $26.46 | $25.74 |
| Total returnd | 5.68% | 5.29% |
| Ratios to average net assetse | | |
| Expenses before waiver and payments by affiliates | 0.35% | 0.35% |
| Expenses net of waiver and payments by affiliates | 0.35% | 0.35% |
| Net investment income | 5.15% | 5.25% |
| Supplemental data | | |
| Net assets, end of period (000’s) | $42,334 | $41,177 |
| Portfolio turnover ratef | 32.73%g | 69.47%g |
| aFor the period September 19, 2023 (commencement of operations) to March 31, 2024. |
| bThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of Creation Unit Fund shares in relation to income earned and/or fluctuating fair value of the investments of the Fund. |
| cBased on average daily shares outstanding. |
| dTotal return is not annualized for periods less than one year. Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. |
| eRatios are annualized for periods less than one year. |
| fPortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash ("Cash creations"). |
| gPortfolio turnover rate excluding cash creations was as follows: | 32.73% | 69.47% |
| franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Semi-Annual Report | 1 |
Franklin Templeton ETF Trust
Schedule of Investments, September 30, 2024 (unaudited)
Western Asset Bond ETF
| | | Country | | | Principal Amount* | Value |
| | Corporate Bonds & Notes 40.6% | | | | | |
| | Aerospace & Defense 1.1% | | | | | |
| | Boeing Co., | | | | | |
| | 3.25%, 2/01/35 | United States | | | 10,000 | $ 8,146 |
| | 2.70%, 2/01/27 | United States | | | 50,000 | 47,436 |
| | 5.15%, 5/01/30 | United States | | | 10,000 | 10,027 |
| | 2.196%, 2/04/26 | United States | | | 70,000 | 67,435 |
| | General Dynamics Corp., | | | | | |
| | 4.25%, 4/01/50 | United States | | | 10,000 | 9,044 |
| | 4.25%, 4/01/40 | United States | | | 10,000 | 9,367 |
| | L3Harris Technologies, Inc., | | | | | |
| | 4.854%, 4/27/35 | United States | | | 10,000 | 10,035 |
| | 5.054%, 4/27/45 | United States | | | 10,000 | 9,833 |
| | Lockheed Martin Corp., | | | | | |
| | 4.50%, 5/15/36 | United States | | | 10,000 | 9,994 |
| | 4.15%, 6/15/53 | United States | | | 60,000 | 52,955 |
| | 3.90%, 6/15/32 | United States | | | 10,000 | 9,802 |
| | 5.20%, 2/15/64 | United States | | | 10,000 | 10,366 |
| | Northrop Grumman Corp., | | | | | |
| | 5.25%, 5/01/50 | United States | | | 30,000 | 30,668 |
| | 3.25%, 1/15/28 | United States | | | 50,000 | 48,599 |
| | RTX Corp., | | | | | |
| | 4.50%, 6/01/42 | United States | | | 40,000 | 37,233 |
| | 2.25%, 7/01/30 | United States | | | 20,000 | 17,965 |
| | 3.95%, 8/16/25 | United States | | | 30,000 | 29,847 |
| | 4.125%, 11/16/28 | United States | | | 10,000 | 9,977 |
| | 6.00%, 3/15/31 | United States | | | 20,000 | 21,760 |
| | | | | | | 450,489 |
| | Agriculture 0.6% | | | | | |
| | Altria Group, Inc., | | | | | |
| | 3.875%, 9/16/46 | United States | | | 30,000 | 23,444 |
| | 5.80%, 2/14/39 | United States | | | 50,000 | 52,592 |
| | 6.875%, 11/01/33 | United States | | | 60,000 | 67,806 |
| | BAT Capital Corp., | | | | | |
| | 3.557%, 8/15/27 | United Kingdom | | | 10,000 | 9,798 |
| | 4.54%, 8/15/47 | United Kingdom | | | 80,000 | 67,618 |
| | Philip Morris International, Inc., | | | | | |
| | 2.10%, 5/01/30 | United States | | | 20,000 | 17,863 |
| | 4.875%, 2/13/29 | United States | | | 10,000 | 10,256 |
| | 5.25%, 2/13/34 | United States | | | 10,000 | 10,389 |
| | | | | | | 259,766 |
| | Airlines 0.8% | | | | | |
| a | American Airlines, Inc., 8.50%, 5/15/29 | United States | | | 100,000 | 106,164 |
| | Delta Air Lines, Inc., | | | | | |
| | 7.375%, 1/15/26 | United States | | | 90,000 | 92,662 |
| | 2.90%, 10/28/24 | United States | | | 20,000 | 19,947 |
| | Delta Air Lines, Inc./SkyMiles IP Ltd., | | | | | |
| | a 4.75%, 10/20/28 | United States | | | 20,000 | 19,982 |
| | a first lien, 4.50%, 10/20/25 | United States | | | 11,112 | 11,047 |
| a | Mileage Plus Holdings LLC/Mileage Plus Intellectual Property Assets Ltd., 6.50%, 6/20/27 | United States | | | 16,500 | 16,718 |
| a | Spirit Loyalty Cayman Ltd./Spirit IP Cayman Ltd., 8.00%, 9/20/25 | United States | | | 40,000 | 22,012 |
| a | United Airlines, Inc., 4.625%, 4/15/29 | United States | | | 70,000 | 67,684 |
| | | | | | | 356,216 |
| 2 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investment
Western Asset Bond ETF (continued)
| | | Country | | | Principal Amount* | Value |
| | Corporate Bonds & Notes (continued) | | | | | |
| | Apparel 0.1% | | | | | |
| | NIKE, Inc., | | | | | |
| | 2.85%, 3/27/30 | United States | | | 20,000 | $ 18,844 |
| | 3.25%, 3/27/40 | United States | | | 20,000 | 16,789 |
| | 2.75%, 3/27/27 | United States | | | 20,000 | 19,495 |
| | | | | | | 55,128 |
| | Auto Manufacturers 1.1% | | | | | |
| | Ford Motor Credit Co. LLC, 7.35%, 3/06/30 | United States | | | 200,000 | 216,668 |
| | General Motors Co., | | | | | |
| | 6.125%, 10/01/25 | United States | | | 20,000 | 20,196 |
| | 6.25%, 10/02/43 | United States | | | 20,000 | 20,535 |
| | 5.60%, 10/15/32 | United States | | | 10,000 | 10,319 |
| a | Nissan Motor Co. Ltd., 3.522%, 9/17/25 | Japan | | | 200,000 | 196,715 |
| | | | | | | 464,433 |
| | Banks 11.6% | | | | | |
| | Bank of America Corp., | | | | | |
| | 4.083% to 3/20/50, FRN thereafter, 3/20/51 | United States | | | 80,000 | 69,571 |
| | 3.97% to 3/05/28, FRN thereafter, 3/05/29 | United States | | | 210,000 | 207,561 |
| | 5.00%, 1/21/44 | United States | | | 50,000 | 50,900 |
| | 1.319% to 6/19/25, FRN thereafter, 6/19/26 | United States | | | 140,000 | 136,582 |
| | 4.571% to 4/27/32, FRN thereafter, 4/27/33 | United States | | | 190,000 | 189,148 |
| | Bank of Montreal, 1.85%, 5/01/25 | Canada | | | 50,000 | 49,214 |
| | Bank of Nova Scotia, | | | | | |
| | 4.588% to 5/04/37, FRN thereafter, 5/04/37 | Canada | | | 20,000 | 19,032 |
| | 1.30%, 6/11/25 | Canada | | | 30,000 | 29,354 |
| a | BNP Paribas SA, 2.219% to 6/09/25, FRN thereafter, 6/09/26 | France | | | 200,000 | 196,197 |
| | Citigroup, Inc., | | | | | |
| | 4.30%, 11/20/26 | United States | | | 70,000 | 69,945 |
| | 4.40%, 6/10/25 | United States | | | 60,000 | 59,797 |
| | 3.98% to 3/20/29, FRN thereafter, 3/20/30 | United States | | | 90,000 | 88,167 |
| | 4.412% to 3/31/30, FRN thereafter, 3/31/31 | United States | | | 230,000 | 228,492 |
| | 4.45%, 9/29/27 | United States | | | 70,000 | 70,109 |
| | 4.75%, 5/18/46 | United States | | | 10,000 | 9,389 |
| | Goldman Sachs Group, Inc., | | | | | |
| | 2.615% to 4/22/31, FRN thereafter, 4/22/32 | United States | | | 40,000 | 35,360 |
| | 5.15%, 5/22/45 | United States | | | 50,000 | 50,015 |
| | 1.093% to 12/09/25, FRN thereafter, 12/09/26 | United States | | | 60,000 | 57,571 |
| | 6.75%, 10/01/37 | United States | | | 20,000 | 23,040 |
| | 4.75%, 10/21/45 | United States | | | 50,000 | 48,623 |
| | 3.691% to 6/05/27, FRN thereafter, 6/05/28 | United States | | | 110,000 | 108,272 |
| | 2.60%, 2/07/30 | United States | | | 20,000 | 18,368 |
| | 4.25%, 10/21/25 | United States | | | 30,000 | 29,896 |
| | HSBC Holdings PLC, | | | | | |
| | 2.099% to 6/04/25, FRN thereafter, 6/04/26 | United Kingdom | | | 400,000 | 392,490 |
| | 4.762% to 3/29/32, FRN thereafter, 3/29/33 | United Kingdom | | | 200,000 | 197,282 |
| | JPMorgan Chase & Co., | | | | | |
| | 3.109% to 4/22/40, FRN thereafter, 4/22/41 | United States | | | 20,000 | 16,117 |
| | 3.109% to 4/22/50, FRN thereafter, 4/22/51 | United States | | | 10,000 | 7,395 |
| | 3.509% to 1/23/28, FRN thereafter, 1/23/29 | United States | | | 100,000 | 97,680 |
| | 2.083% to 4/22/25, FRN thereafter, 4/22/26 | United States | | | 70,000 | 68,896 |
| | 2.545% to 11/08/31, FRN thereafter, 11/08/32 | United States | | | 110,000 | 96,797 |
| | 5.294% to 7/22/34, FRN thereafter, 7/22/35 | United States | | | 10,000 | 10,433 |
| | Morgan Stanley, | | | | | |
| | 2.188% to 4/28/25, FRN thereafter, 4/28/26 | United States | | | 50,000 | 49,227 |
| | 3.772% to 1/24/28, FRN thereafter, 1/24/29 | United States | | | 60,000 | 59,022 |
| | 2.511% to 10/20/31, FRN thereafter, 10/20/32 | United States | | | 70,000 | 61,123 |
| franklintempleton.com | Semi-Annual Report | 3 |
Franklin Templeton ETF Trust
Schedule of Investment
Western Asset Bond ETF (continued)
| | | Country | | | Principal Amount* | Value |
| | Corporate Bonds & Notes (continued) | | | | | |
| | Banks (continued) | | | | | |
| | 5.32% to 7/19/34, FRN thereafter, 7/19/35 | United States | | | 80,000 | $ 83,106 |
| | PNC Financial Services Group, Inc., | | | | | |
| | 5.582% to 6/12/28, FRN thereafter, 6/12/29 | United States | | | 30,000 | 31,234 |
| | 5.812% to 6/12/25, FRN thereafter, 6/12/26 | United States | | | 20,000 | 20,135 |
| | Royal Bank of Canada, | | | | | |
| | 1.15%, 6/10/25 | Canada | | | 30,000 | 29,319 |
| | 3.875%, 5/04/32 | Canada | | | 20,000 | 19,316 |
| | 5.15%, 2/01/34 | Canada | | | 20,000 | 20,807 |
| | Toronto-Dominion Bank, | | | | | |
| | 1.15%, 6/12/25 | Canada | | | 30,000 | 29,309 |
| | 4.456%, 6/08/32 | Canada | | | 20,000 | 19,876 |
| | Truist Financial Corp., 6.047% to 6/08/26, FRN thereafter, 6/08/27 | United States | | | 20,000 | 20,529 |
| | U.S. Bancorp, | | | | | |
| | 5.775% to 6/12/28, FRN thereafter, 6/12/29 | United States | | | 20,000 | 20,966 |
| | 5.836% to 6/10/33, FRN thereafter, 6/12/34 | United States | | | 20,000 | 21,363 |
| | UBS AG, | | | | | |
| | 2.95%, 4/09/25 | Switzerland | | | 250,000 | 247,552 |
| | 7.95%, 1/09/25 | Switzerland | | | 500,000 | 503,915 |
| a | UBS Group AG, 4.253%, 3/23/28 | Switzerland | | | 400,000 | 397,002 |
| | Wells Fargo & Co., | | | | | |
| | 5.013% to 4/04/50, FRN thereafter, 4/04/51 | United States | | | 170,000 | 166,801 |
| | 4.478% to 4/04/30, FRN thereafter, 4/04/31 | United States | | | 50,000 | 50,077 |
| | 2.188% to 4/30/25, FRN thereafter, 4/30/26 | United States | | | 70,000 | 68,873 |
| | 2.393% to 6/02/27, FRN thereafter, 6/02/28 | United States | | | 70,000 | 66,572 |
| | 3.584% to 5/22/27, FRN thereafter, 5/22/28 | United States | | | 110,000 | 107,884 |
| | 4.75%, 12/07/46 | United States | | | 50,000 | 45,871 |
| | 3.35% to 3/02/32, FRN thereafter, 3/02/33 | United States | | | 30,000 | 27,435 |
| | | | | | | 4,899,007 |
| | Beverages 0.4% | | | | | |
| | Anheuser-Busch Cos. LLC/Anheuser-Busch InBev Worldwide, Inc., 4.90%, 2/01/46 | United States | | | 80,000 | 78,850 |
| | Anheuser-Busch InBev Worldwide, Inc., | | | | | |
| | 3.50%, 6/01/30 | United States | | | 10,000 | 9,710 |
| | 4.75%, 1/23/29 | Belgium | | | 40,000 | 41,055 |
| | Constellation Brands, Inc., 4.35%, 5/09/27 | United States | | | 20,000 | 20,060 |
| | | | | | | 149,675 |
| | Biotechnology 0.1% | | | | | |
| | Amgen, Inc., 4.663%, 6/15/51 | United States | | | 10,000 | 9,166 |
| | Gilead Sciences, Inc., | | | | | |
| | 4.75%, 3/01/46 | United States | | | 10,000 | 9,576 |
| | 3.50%, 2/01/25 | United States | | | 10,000 | 9,959 |
| | | | | | | 28,701 |
| | Chemicals 0.4% | | | | | |
| b | OCP SA, 3.75%, 6/23/31 | Morocco | | | 200,000 | 179,934 |
| | Commercial Services & Supplies 0.3% | | | | | |
| | PayPal Holdings, Inc., | | | | | |
| | 2.30%, 6/01/30 | United States | | | 10,000 | 9,068 |
| | 5.15%, 6/01/34 | United States | | | 10,000 | 10,436 |
| | United Rentals North America, Inc., | | | | | |
| | 3.875%, 2/15/31 | United States | | | 70,000 | 65,174 |
| | a 6.125%, 3/15/34 | United States | | | 20,000 | 20,694 |
| | | | | | | 105,372 |
| 4 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investment
Western Asset Bond ETF (continued)
| | | Country | | | Principal Amount* | Value |
| | Corporate Bonds & Notes (continued) | | | | | |
| | Diversified Telecommunication Services 0.0%† | | | | | |
| | Verizon Communications, Inc., 3.40%, 3/22/41 | United States | | | 20,000 | $ 16,344 |
| | Electric 0.7% | | | | | |
| b | Comision Federal de Electricidad, 3.875%, 7/26/33 | Mexico | | | 200,000 | 168,701 |
| | Consolidated Edison Co. of New York, Inc., | | | | | |
| | Series 20B, 3.95%, 4/01/50 | United States | | | 10,000 | 8,570 |
| | Series 20A, 3.35%, 4/01/30 | United States | | | 10,000 | 9,629 |
| | Duke Energy Ohio, Inc., 3.65%, 2/01/29 | United States | | | 10,000 | 9,796 |
| | Exelon Corp., 5.625%, 6/15/35 | United States | | | 10,000 | 10,624 |
| | FirstEnergy Corp., | | | | | |
| | Series B, 3.90%, 7/15/27 | United States | | | 30,000 | 29,709 |
| | Series C, 4.85%, 7/15/47 | United States | | | 20,000 | 18,345 |
| | Pacific Gas & Electric Co., | | | | | |
| | 3.50%, 8/01/50 | United States | | | 10,000 | 7,248 |
| | 2.50%, 2/01/31 | United States | | | 20,000 | 17,530 |
| | 2.10%, 8/01/27 | United States | | | 10,000 | 9,373 |
| | Progress Energy, Inc., 6.00%, 12/01/39 | United States | | | 10,000 | 10,796 |
| | | | | | | 300,321 |
| | Electronic Equipment, Instruments &
Components 0.1% | | | | | |
| | Honeywell International, Inc., 5.00%, 3/01/35 | United States | | | 30,000 | 31,240 |
| | Energy Equipment & Services 0.0%† | | | | | |
| a | Schlumberger Holdings Corp., 3.90%, 5/17/28 | United States | | | 10,000 | 9,892 |
| | Entertainment 0.4% | | | | | |
| a | Caesars Entertainment, Inc., 7.00%, 2/15/30 | United States | | | 40,000 | 41,815 |
| | Warnermedia Holdings, Inc., | | | | | |
| | 6.412%, 3/15/26 | United States | | | 20,000 | 20,012 |
| | 3.755%, 3/15/27 | United States | | | 50,000 | 48,358 |
| | 5.05%, 3/15/42 | United States | | | 10,000 | 8,168 |
| | 4.279%, 3/15/32 | United States | | | 30,000 | 26,660 |
| | | | | | | 145,013 |
| | Environmental Control 0.2% | | | | | |
| a | GFL Environmental, Inc., 6.75%, 1/15/31 | United States | | | 60,000 | 63,005 |
| | Waste Connections, Inc., 5.00%, 3/01/34 | United States | | | 20,000 | 20,537 |
| | | | | | | 83,542 |
| | Financial Services 1.0% | | | | | |
| | AerCap Ireland Capital DAC/AerCap Global Aviation Trust, 3.00%, 10/29/28 | Ireland | | | 150,000 | 141,742 |
| | Air Lease Corp., | | | | | |
| | 3.375%, 7/01/25 | United States | | | 20,000 | 19,770 |
| | 5.30%, 2/01/28 | United States | | | 20,000 | 20,552 |
| | American Express Co., 4.05%, 5/03/29 | United States | | | 30,000 | 30,063 |
| | Charles Schwab Corp., | | | | | |
| | 5.875%, 8/24/26 | United States | | | 50,000 | 51,472 |
| | 6.136% to 8/24/33, FRN thereafter, 8/24/34 | United States | | | 20,000 | 21,873 |
| | Intercontinental Exchange, Inc., 4.60%, 3/15/33 | United States | | | 10,000 | 10,098 |
| a | Jane Street Group/JSG Finance, Inc., 7.125%, 4/30/31 | United States | | | 80,000 | 84,831 |
| | Mastercard, Inc., 3.85%, 3/26/50 | United States | | | 10,000 | 8,465 |
| | Visa, Inc., | | | | | |
| | 4.30%, 12/14/45 | United States | | | 30,000 | 27,970 |
| | 2.05%, 4/15/30 | United States | | | 20,000 | 18,112 |
| | | | | | | 434,948 |
| franklintempleton.com | Semi-Annual Report | 5 |
Franklin Templeton ETF Trust
Schedule of Investment
Western Asset Bond ETF (continued)
| | | Country | | | Principal Amount* | Value |
| | Corporate Bonds & Notes (continued) | | | | | |
| | Food 0.3% | | | | | |
| | Kraft Heinz Foods Co., 5.20%, 7/15/45 | United States | | | 40,000 | $ 39,517 |
| | Mars, Inc., | | | | | |
| | a 2.70%, 4/01/25 | United States | | | 20,000 | 19,803 |
| | a 3.20%, 4/01/30 | United States | | | 10,000 | 9,469 |
| | Mondelez International, Inc., 1.50%, 5/04/25 | United States | | | 40,000 | 39,213 |
| | | | | | | 108,002 |
| | Gas 0.4% | | | | | |
| b | Promigas SA ESP/Gases del Pacifico SAC, 3.75%, 10/16/29 | Colombia | | | 200,000 | 184,887 |
| | Health Care Providers & Services 1.0% | | | | | |
| | Centene Corp., | | | | | |
| | 4.25%, 12/15/27 | United States | | | 20,000 | 19,659 |
| | 4.625%, 12/15/29 | United States | | | 20,000 | 19,585 |
| | 3.00%, 10/15/30 | United States | | | 10,000 | 8,960 |
| | 2.625%, 8/01/31 | United States | | | 10,000 | 8,583 |
| | 3.375%, 2/15/30 | United States | | | 10,000 | 9,223 |
| | CVS Health Corp., 4.30%, 3/25/28 | United States | | | 30,000 | 29,925 |
| | Elevance Health, Inc., | | | | | |
| | 4.375%, 12/01/47 | United States | | | 10,000 | 8,860 |
| | 4.10%, 5/15/32 | United States | | | 10,000 | 9,764 |
| | 3.65%, 12/01/27 | United States | | | 10,000 | 9,861 |
| | HCA, Inc., | | | | | |
| | 7.69%, 6/15/25 | United States | | | 20,000 | 20,367 |
| | 5.875%, 2/01/29 | United States | | | 10,000 | 10,483 |
| | 3.50%, 9/01/30 | United States | | | 30,000 | 28,280 |
| | 5.50%, 6/15/47 | United States | | | 20,000 | 19,891 |
| | Humana, Inc., | | | | | |
| | 3.95%, 3/15/27 | United States | | | 10,000 | 9,918 |
| | 4.50%, 4/01/25 | United States | | | 10,000 | 9,981 |
| | 4.95%, 10/01/44 | United States | | | 20,000 | 18,579 |
| a | LifePoint Health, Inc., 9.875%, 8/15/30 | United States | | | 60,000 | 66,135 |
| | UnitedHealth Group, Inc., | | | | | |
| | 3.875%, 8/15/59 | United States | | | 40,000 | 31,930 |
| | 4.20%, 5/15/32 | United States | | | 40,000 | 39,698 |
| | 4.00%, 5/15/29 | United States | | | 20,000 | 19,960 |
| | 5.00%, 4/15/34 | United States | | | 20,000 | 20,658 |
| | | | | | | 420,300 |
| | Healthcare-Products 0.4% | | | | | |
| | Abbott Laboratories, 4.75%, 11/30/36 | United States | | | 10,000 | 10,264 |
| a | Medline Borrower LP/Medline Co-Issuer, Inc., 6.25%, 4/01/29 | United States | | | 70,000 | 72,211 |
| | Solventum Corp., | | | | | |
| | a 5.40%, 3/01/29 | United States | | | 30,000 | 30,873 |
| | a 5.45%, 3/13/31 | United States | | | 30,000 | 30,938 |
| | a 5.90%, 4/30/54 | United States | | | 40,000 | 41,465 |
| | | | | | | 185,751 |
| | Home Builders 0.0%† | | | | | |
| | Lennar Corp., 4.75%, 11/29/27 | United States | | | 10,000 | 10,132 |
| | Insurance 0.2% | | | | | |
| | Aon North America, Inc., 5.45%, 3/01/34 | United States | | | 50,000 | 52,518 |
| | Berkshire Hathaway Finance Corp., 4.25%, 1/15/49 | United States | | | 30,000 | 27,828 |
| | MetLife, Inc., 6.40%, 12/15/66 | United States | | | 10,000 | 10,623 |
| 6 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investment
Western Asset Bond ETF (continued)
| | | Country | | | Principal Amount* | Value |
| | Corporate Bonds & Notes (continued) | | | | | |
| | Insurance (continued) | | | | | |
| a | Principal Life Global Funding II, 1.25%, 6/23/25 | United States | | | 10,000 | $ 9,771 |
| | | | | | | 100,740 |
| | Internet 1.0% | | | | | |
| | Alphabet, Inc., | | | | | |
| | 1.90%, 8/15/40 | United States | | | 30,000 | 21,438 |
| | 1.10%, 8/15/30 | United States | | | 10,000 | 8,613 |
| | Amazon.com, Inc., | | | | | |
| | 3.15%, 8/22/27 | United States | | | 60,000 | 58,914 |
| | 3.10%, 5/12/51 | United States | | | 30,000 | 22,305 |
| | 4.95%, 12/05/44 | United States | | | 70,000 | 72,758 |
| | 3.60%, 4/13/32 | United States | | | 70,000 | 67,676 |
| b | Prosus NV, 3.061%, 7/13/31 | China | | | 200,000 | 176,590 |
| | | | | | | 428,294 |
| | Iron/Steel 0.3% | | | | | |
| | ArcelorMittal SA, 7.00%, 10/15/39 | Luxembourg | | | 10,000 | 11,365 |
| | Vale Overseas Ltd., 6.125%, 6/12/33 | Brazil | | | 100,000 | 105,965 |
| | | | | | | 117,330 |
| | Leisure Time 0.6% | | | | | |
| a | Carnival Corp., 10.50%, 6/01/30 | United States | | | 60,000 | 65,183 |
| | NCL Corp. Ltd., | | | | | |
| | a 7.75%, 2/15/29 | United States | | | 70,000 | 75,063 |
| | a 8.125%, 1/15/29 | United States | | | 20,000 | 21,404 |
| a | Royal Caribbean Cruises Ltd., 5.625%, 9/30/31 | United States | | | 40,000 | 40,550 |
| a | VOC Escrow Ltd., 5.00%, 2/15/28 | United States | | | 70,000 | 69,213 |
| | | | | | | 271,413 |
| | Lodging 0.3% | | | | | |
| | Hilton Domestic Operating Co., Inc., | | | | | |
| | a 3.625%, 2/15/32 | United States | | | 50,000 | 45,217 |
| | a 6.125%, 4/01/32 | United States | | | 10,000 | 10,304 |
| | Las Vegas Sands Corp., | | | | | |
| | 2.90%, 6/25/25 | United States | | | 70,000 | 68,825 |
| | 6.00%, 8/15/29 | United States | | | 10,000 | 10,397 |
| | | | | | | 134,743 |
| | Machinery-Diversified 0.1% | | | | | |
| | Deere & Co., | | | | | |
| | 3.75%, 4/15/50 | United States | | | 20,000 | 17,065 |
| | 3.10%, 4/15/30 | United States | | | 10,000 | 9,503 |
| | Otis Worldwide Corp., 2.056%, 4/05/25 | United States | | | 10,000 | 9,863 |
| | | | | | | 36,431 |
| | Media 1.8% | | | | | |
| a | CCO Holdings LLC/CCO Holdings Capital Corp., 4.50%, 6/01/33 | United States | | | 190,000 | 161,506 |
| | Charter Communications Operating LLC/Charter Communications Operating Capital, | | | | | |
| | 4.908%, 7/23/25 | United States | | | 3,000 | 2,996 |
| | 5.375%, 5/01/47 | United States | | | 30,000 | 25,204 |
| | 5.125%, 7/01/49 | United States | | | 30,000 | 24,123 |
| | 5.05%, 3/30/29 | United States | | | 70,000 | 69,657 |
| | 5.50%, 4/01/63 | United States | | | 30,000 | 24,461 |
| | 6.55%, 6/01/34 | United States | | | 10,000 | 10,406 |
| franklintempleton.com | Semi-Annual Report | 7 |
Franklin Templeton ETF Trust
Schedule of Investment
Western Asset Bond ETF (continued)
| | | Country | | | Principal Amount* | Value |
| | Corporate Bonds & Notes (continued) | | | | | |
| | Media (continued) | | | | | |
| | Comcast Corp., | | | | | |
| | 3.999%, 11/01/49 | United States | | | 10,000 | $ 8,358 |
| | 4.15%, 10/15/28 | United States | | | 90,000 | 90,166 |
| | 4.25%, 10/15/30 | United States | | | 50,000 | 49,929 |
| | 3.90%, 3/01/38 | United States | | | 50,000 | 45,153 |
| | 3.45%, 2/01/50 | United States | | | 30,000 | 22,726 |
| a | DISH DBS Corp., 5.75%, 12/01/28 | United States | | | 120,000 | 105,071 |
| | Fox Corp., | | | | | |
| | 5.476%, 1/25/39 | United States | | | 20,000 | 20,187 |
| | 6.50%, 10/13/33 | United States | | | 20,000 | 21,895 |
| | Time Warner Cable LLC, 6.55%, 5/01/37 | United States | | | 90,000 | 89,120 |
| | | | | | | 770,958 |
| | Mining 1.3% | | | | | |
| a | Anglo American Capital PLC, 4.75%, 4/10/27 | South Africa | | | 200,000 | 201,033 |
| | Barrick North America Finance LLC, | | | | | |
| | 5.75%, 5/01/43 | Canada | | | 20,000 | 21,275 |
| | 5.70%, 5/30/41 | Canada | | | 20,000 | 21,124 |
| | BHP Billiton Finance USA Ltd., 5.00%, 9/30/43 | Australia | | | 20,000 | 20,072 |
| b | Freeport Indonesia PT, 5.315%, 4/14/32 | Indonesia | | | 200,000 | 203,471 |
| | Freeport-McMoRan, Inc., 5.45%, 3/15/43 | United States | | | 50,000 | 50,263 |
| a | Glencore Funding LLC, 3.875%, 10/27/27 | Australia | | | 20,000 | 19,726 |
| | Yamana Gold, Inc., 4.625%, 12/15/27 | Canada | | | 20,000 | 20,038 |
| | | | | | | 557,002 |
| | Miscellaneous Manufacturing 0.0%† | | | | | |
| | Eaton Corp., 4.15%, 11/02/42 | United States | | | 10,000 | 9,161 |
| | Oil & Gas 4.7% | | | | | |
| | Apache Corp., | | | | | |
| | 5.10%, 9/01/40 | United States | | | 30,000 | 26,694 |
| | 4.25%, 1/15/44 | United States | | | 40,000 | 30,368 |
| | 7.75%, 12/15/29 | United States | | | 10,000 | 11,153 |
| | BP Capital Markets America, Inc., | | | | | |
| | 2.772%, 11/10/50 | United States | | | 30,000 | 19,757 |
| | 3.41%, 2/11/26 | United States | | | 30,000 | 29,760 |
| | 3.588%, 4/14/27 | United States | | | 10,000 | 9,890 |
| | 1.749%, 8/10/30 | United States | | | 30,000 | 26,189 |
| | Chevron Corp., 1.995%, 5/11/27 | United States | | | 10,000 | 9,555 |
| a | Chord Energy Corp., 6.375%, 6/01/26 | United States | | | 40,000 | 40,121 |
| | Continental Resources, Inc., | | | | | |
| | 4.375%, 1/15/28 | United States | | | 30,000 | 29,574 |
| | a 5.75%, 1/15/31 | United States | | | 20,000 | 20,470 |
| | 4.90%, 6/01/44 | United States | | | 20,000 | 17,117 |
| | a 2.268%, 11/15/26 | United States | | | 10,000 | 9,481 |
| | Coterra Energy, Inc., | | | | | |
| | 3.90%, 5/15/27 | United States | | | 50,000 | 49,273 |
| | 4.375%, 3/15/29 | United States | | | 50,000 | 49,393 |
| | Devon Energy Corp., | | | | | |
| | 5.60%, 7/15/41 | United States | | | 80,000 | 78,458 |
| | 5.85%, 12/15/25 | United States | | | 20,000 | 20,208 |
| | 4.50%, 1/15/30 | United States | | | 20,000 | 19,830 |
| | 5.75%, 9/15/54 | United States | | | 20,000 | 19,481 |
| | Diamondback Energy, Inc., | | | | | |
| | 3.50%, 12/01/29 | United States | | | 30,000 | 28,545 |
| | 4.40%, 3/24/51 | United States | | | 20,000 | 16,615 |
| 8 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investment
Western Asset Bond ETF (continued)
| | | Country | | | Principal Amount* | Value |
| | Corporate Bonds & Notes (continued) | | | | | |
| | Oil & Gas (continued) | | | | | |
| | Ecopetrol SA, 8.875%, 1/13/33 | Colombia | | | 130,000 | $ 139,487 |
| | EOG Resources, Inc., | | | | | |
| | 4.95%, 4/15/50 | United States | | | 30,000 | 28,959 |
| | 3.90%, 4/01/35 | United States | | | 20,000 | 18,758 |
| | 4.375%, 4/15/30 | United States | | | 10,000 | 10,078 |
| | EQT Corp., | | | | | |
| | 5.00%, 1/15/29 | United States | | | 30,000 | 30,370 |
| | 3.90%, 10/01/27 | United States | | | 50,000 | 49,171 |
| | Exxon Mobil Corp., | | | | | |
| | 3.482%, 3/19/30 | United States | | | 20,000 | 19,434 |
| | 4.114%, 3/01/46 | United States | | | 60,000 | 53,507 |
| b | KazMunayGas National Co. JSC, 3.50%, 4/14/33 | Kazakhstan | | | 200,000 | 174,692 |
| | Occidental Petroleum Corp., | | | | | |
| | 7.50%, 5/01/31 | United States | | | 20,000 | 22,739 |
| | 3.20%, 8/15/26 | United States | | | 40,000 | 38,835 |
| | 6.625%, 9/01/30 | United States | | | 60,000 | 64,769 |
| | 6.60%, 3/15/46 | United States | | | 50,000 | 53,841 |
| | 6.45%, 9/15/36 | United States | | | 40,000 | 43,230 |
| | 4.40%, 4/15/46 | United States | | | 20,000 | 16,247 |
| | 4.625%, 6/15/45 | United States | | | 30,000 | 24,922 |
| | 4.50%, 7/15/44 | United States | | | 20,000 | 16,276 |
| | 4.20%, 3/15/48 | United States | | | 40,000 | 31,552 |
| | 5.55%, 3/15/26 | United States | | | 20,000 | 20,243 |
| | 3.40%, 4/15/26 | United States | | | 20,000 | 19,616 |
| | 4.10%, 2/15/47 | United States | | | 10,000 | 7,632 |
| | Petrobras Global Finance BV, 6.50%, 7/03/33 | Brazil | | | 120,000 | 124,795 |
| | Pioneer Natural Resources Co., | | | | | |
| | 2.15%, 1/15/31 | United States | | | 30,000 | 26,365 |
| | 1.125%, 1/15/26 | United States | | | 10,000 | 9,620 |
| a | Range Resources Corp., 4.75%, 2/15/30 | United States | | | 40,000 | 38,613 |
| | Shell International Finance BV, | | | | | |
| | 4.00%, 5/10/46 | Netherlands | | | 30,000 | 25,693 |
| | 2.75%, 4/06/30 | Netherlands | | | 20,000 | 18,642 |
| | 3.25%, 4/06/50 | Netherlands | | | 20,000 | 14,854 |
| | 6.375%, 12/15/38 | Netherlands | | | 10,000 | 11,608 |
| | 4.375%, 5/11/45 | Netherlands | | | 10,000 | 9,091 |
| | Southwestern Energy Co., | | | | | |
| | 5.375%, 3/15/30 | United States | | | 50,000 | 49,882 |
| | 4.75%, 2/01/32 | United States | | | 20,000 | 19,148 |
| b | Tengizchevroil Finance Co. International Ltd., 3.25%, 8/15/30 | Kazakhstan | | | 200,000 | 174,361 |
| | | | | | | 1,968,962 |
| | Oil & Gas Services 0.1% | | | | | |
| | Halliburton Co., | | | | | |
| | 4.85%, 11/15/35 | United States | | | 10,000 | 9,989 |
| | 5.00%, 11/15/45 | United States | | | 10,000 | 9,586 |
| | | | | | | 19,575 |
| | Oil, Gas & Consumable Fuels 0.1% | | | | | |
| | Cheniere Energy, Inc., 4.625%, 10/15/28 | United States | | | 20,000 | 19,883 |
| | Chevron Corp., 3.078%, 5/11/50 | United States | | | 10,000 | 7,328 |
| | | | | | | 27,211 |
| | Paper & Forest Products 0.1% | | | | | |
| | Suzano Austria GmbH, 3.75%, 1/15/31 | Brazil | | | 60,000 | 55,328 |
| franklintempleton.com | Semi-Annual Report | 9 |
Franklin Templeton ETF Trust
Schedule of Investment
Western Asset Bond ETF (continued)
| | | Country | | | Principal Amount* | Value |
| | Corporate Bonds & Notes (continued) | | | | | |
| | Personal Care Products 0.1% | | | | | |
| | Kenvue, Inc., 4.90%, 3/22/33 | United States | | | 30,000 | $ 31,065 |
| | Procter & Gamble Co., 3.00%, 3/25/30 | United States | | | 10,000 | 9,582 |
| | | | | | | 40,647 |
| | Pharmaceuticals 2.3% | | | | | |
| | AbbVie, Inc., | | | | | |
| | 4.25%, 11/21/49 | United States | | | 30,000 | 26,892 |
| | 3.20%, 11/21/29 | United States | | | 70,000 | 66,959 |
| | 2.60%, 11/21/24 | United States | | | 100,000 | 99,662 |
| | 4.80%, 3/15/29 | United States | | | 20,000 | 20,589 |
| | 4.95%, 3/15/31 | United States | | | 10,000 | 10,401 |
| | 5.05%, 3/15/34 | United States | | | 20,000 | 20,898 |
| | Becton Dickinson & Co., 4.685%, 12/15/44 | United States | | | 10,000 | 9,352 |
| | Bristol-Myers Squibb Co., | | | | | |
| | 5.10%, 2/22/31 | United States | | | 10,000 | 10,474 |
| | 5.20%, 2/22/34 | United States | | | 50,000 | 52,748 |
| | 5.65%, 2/22/64 | United States | | | 10,000 | 10,606 |
| | Cigna Group, | | | | | |
| | 4.80%, 8/15/38 | United States | | | 50,000 | 48,740 |
| | 4.375%, 10/15/28 | United States | | | 30,000 | 30,124 |
| | CVS Health Corp., | | | | | |
| | 5.05%, 3/25/48 | United States | | | 90,000 | 82,205 |
| | 3.875%, 7/20/25 | United States | | | 10,000 | 9,930 |
| | 2.125%, 9/15/31 | United States | | | 70,000 | 59,169 |
| | Eli Lilly & Co., | | | | | |
| | 4.70%, 2/09/34 | United States | | | 30,000 | 30,680 |
| | 5.10%, 2/09/64 | United States | | | 30,000 | 30,674 |
| | Johnson & Johnson, 3.625%, 3/03/37 | United States | | | 50,000 | 46,450 |
| | Merck & Co., Inc., 1.45%, 6/24/30 | United States | | | 20,000 | 17,349 |
| | Pfizer, Inc., | | | | | |
| | 1.70%, 5/28/30 | United States | | | 50,000 | 44,139 |
| | 7.20%, 3/15/39 | United States | | | 20,000 | 25,024 |
| | Teva Pharmaceutical Finance Netherlands III BV, 8.125%, 9/15/31 | Israel | | | 200,000 | 229,551 |
| | | | | | | 982,616 |
| | Pipelines 3.1% | | | | | |
| | Cameron LNG LLC, | | | | | |
| | a 2.902%, 7/15/31 | United States | | | 10,000 | 8,984 |
| | a 3.302%, 1/15/35 | United States | | | 30,000 | 25,908 |
| | Cheniere Energy Partners LP, 3.25%, 1/31/32 | United States | | | 40,000 | 35,801 |
| | Columbia Pipelines Operating Co. LLC, | | | | | |
| | a 6.036%, 11/15/33 | United States | | | 30,000 | 32,029 |
| | a 6.544%, 11/15/53 | United States | | | 10,000 | 11,270 |
| | Energy Transfer LP, | | | | | |
| | 6.25%, 4/15/49 | United States | | | 90,000 | 94,695 |
| | 3.75%, 5/15/30 | United States | | | 20,000 | 19,110 |
| | 2.90%, 5/15/25 | United States | | | 20,000 | 19,756 |
| | 5.25%, 4/15/29 | United States | | | 20,000 | 20,581 |
| | 5.55%, 5/15/34 | United States | | | 20,000 | 20,722 |
| | Enterprise Products Operating LLC, | | | | | |
| | 2.80%, 1/31/30 | United States | | | 40,000 | 37,330 |
| | 3.70%, 1/31/51 | United States | | | 80,000 | 62,303 |
| | Series H, 6.65%, 10/15/34 | United States | | | 10,000 | 11,388 |
| | 4.15%, 10/16/28 | United States | | | 30,000 | 29,990 |
| | 5.375% to 2/15/28, FRN thereafter, 2/15/78 | United States | | | 10,000 | 9,578 |
| | 4.85%, 1/31/34 | United States | | | 30,000 | 30,445 |
| 10 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investment
Western Asset Bond ETF (continued)
| | | Country | | | Principal Amount* | Value |
| | Corporate Bonds & Notes (continued) | | | | | |
| | Pipelines (continued) | | | | | |
| | Kinder Morgan, Inc., | | | | | |
| | 5.55%, 6/01/45 | United States | | | 10,000 | $ 9,887 |
| | 4.30%, 6/01/25 | United States | | | 10,000 | 9,957 |
| | 4.30%, 3/01/28 | United States | | | 10,000 | 10,020 |
| | MPLX LP, | | | | | |
| | 4.875%, 6/01/25 | United States | | | 10,000 | 9,993 |
| | 4.875%, 12/01/24 | United States | | | 20,000 | 19,979 |
| | 5.20%, 3/01/47 | United States | | | 50,000 | 47,433 |
| | 4.50%, 4/15/38 | United States | | | 20,000 | 18,496 |
| | 4.80%, 2/15/29 | United States | | | 20,000 | 20,321 |
| b | Oleoducto Central SA, 4.00%, 7/14/27 | Colombia | | | 200,000 | 191,618 |
| | ONEOK, Inc., | | | | | |
| | 6.05%, 9/01/33 | United States | | | 20,000 | 21,380 |
| | 6.625%, 9/01/53 | United States | | | 10,000 | 11,104 |
| | 5.55%, 11/01/26 | United States | | | 10,000 | 10,230 |
| | 5.80%, 11/01/30 | United States | | | 20,000 | 21,303 |
| | Southern Natural Gas Co. LLC, 8.00%, 3/01/32 | United States | | | 20,000 | 23,514 |
| | Targa Resources Corp., 4.95%, 4/15/52 | United States | | | 10,000 | 9,010 |
| | Targa Resources Partners LP/Targa Resources Partners Finance Corp., | | | | | |
| | 5.00%, 1/15/28 | United States | | | 30,000 | 30,017 |
| | 6.875%, 1/15/29 | United States | | | 30,000 | 30,782 |
| | 4.875%, 2/01/31 | United States | | | 30,000 | 29,799 |
| a | Tennessee Gas Pipeline Co. LLC, 2.90%, 3/01/30 | United States | | | 20,000 | 18,321 |
| | Transcontinental Gas Pipe Line Co. LLC, 7.85%, 2/01/26 | United States | | | 60,000 | 62,075 |
| a | Venture Global Calcasieu Pass LLC, 3.875%, 11/01/33 | United States | | | 50,000 | 44,883 |
| | Western Midstream Operating LP, | | | | | |
| | 3.10%, 2/01/25 | United States | | | 10,000 | 9,924 |
| | 4.05%, 2/01/30 | United States | | | 80,000 | 77,075 |
| | 5.25%, 2/01/50 | United States | | | 20,000 | 18,154 |
| | Williams Cos., Inc., | | | | | |
| | 5.75%, 6/24/44 | United States | | | 20,000 | 20,592 |
| | 3.50%, 11/15/30 | United States | | | 50,000 | 47,284 |
| | 5.15%, 3/15/34 | United States | | | 30,000 | 30,342 |
| | | | | | | 1,323,383 |
| | Real Estate Investment Trusts (REITs) 0.1% | | | | | |
| | Service Properties Trust, 8.375%, 6/15/29 | United States | | | 20,000 | 19,997 |
| | Retail 0.5% | | | | | |
| | Costco Wholesale Corp., | | | | | |
| | 1.60%, 4/20/30 | United States | | | 20,000 | 17,671 |
| | 1.375%, 6/20/27 | United States | | | 40,000 | 37,527 |
| | Home Depot, Inc., | | | | | |
| | 3.90%, 6/15/47 | United States | | | 50,000 | 42,735 |
| | 2.70%, 4/15/30 | United States | | | 20,000 | 18,611 |
| | 2.50%, 4/15/27 | United States | | | 20,000 | 19,334 |
| | Lowe’s Cos., Inc., 4.50%, 4/15/30 | United States | | | 10,000 | 10,132 |
| | McDonald’s Corp., | | | | | |
| | 4.20%, 4/01/50 | United States | | | 30,000 | 25,967 |
| | 3.60%, 7/01/30 | United States | | | 20,000 | 19,419 |
| | 3.50%, 3/01/27 | United States | | | 10,000 | 9,881 |
| | Walmart, Inc., | | | | | |
| | 1.80%, 9/22/31 | United States | | | 10,000 | 8,700 |
| | 1.50%, 9/22/28 | United States | | | 20,000 | 18,397 |
| | | | | | | 228,374 |
| franklintempleton.com | Semi-Annual Report | 11 |
Franklin Templeton ETF Trust
Schedule of Investment
Western Asset Bond ETF (continued)
| | | Country | | | Principal Amount* | Value |
| | Corporate Bonds & Notes (continued) | | | | | |
| | Semiconductors 0.5% | | | | | |
| a | Broadcom, Inc., 4.926%, 5/15/37 | United States | | | 90,000 | $ 89,964 |
| | Intel Corp., | | | | | |
| | 4.75%, 3/25/50 | United States | | | 30,000 | 26,015 |
| | 5.125%, 2/10/30 | United States | | | 20,000 | 20,441 |
| | 1.60%, 8/12/28 | United States | | | 20,000 | 17,888 |
| | Micron Technology, Inc., | | | | | |
| | 5.875%, 2/09/33 | United States | | | 10,000 | 10,685 |
| | 5.30%, 1/15/31 | United States | | | 20,000 | 20,788 |
| | NXP BV/NXP Funding LLC/NXP USA, Inc., 2.70%, 5/01/25 | China | | | 20,000 | 19,728 |
| | Texas Instruments, Inc., 1.75%, 5/04/30 | United States | | | 20,000 | 17,668 |
| | | | | | | 223,177 |
| | Software 0.3% | | | | | |
| | Microsoft Corp., 2.921%, 3/17/52 | United States | | | 10,000 | 7,349 |
| | Oracle Corp., | | | | | |
| | 3.60%, 4/01/50 | United States | | | 10,000 | 7,620 |
| | 2.875%, 3/25/31 | United States | | | 50,000 | 45,511 |
| | 1.65%, 3/25/26 | United States | | | 50,000 | 48,084 |
| | | | | | | 108,564 |
| | Telecommunications 1.5% | | | | | |
| | AT&T, Inc., | | | | | |
| | 4.30%, 2/15/30 | United States | | | 20,000 | 19,981 |
| | 1.70%, 3/25/26 | United States | | | 10,000 | 9,630 |
| | 3.50%, 9/15/53 | United States | | | 30,000 | 22,058 |
| | 2.55%, 12/01/33 | United States | | | 40,000 | 33,734 |
| | 3.55%, 9/15/55 | United States | | | 20,000 | 14,642 |
| | 5.55%, 8/15/41 | United States | | | 30,000 | 30,808 |
| | Rogers Communications, Inc., 5.30%, 2/15/34 | Canada | | | 20,000 | 20,355 |
| | Telefonica Emisiones SA, 5.213%, 3/08/47 | Spain | | | 150,000 | 142,381 |
| | T-Mobile USA, Inc., | | | | | |
| | 3.50%, 4/15/25 | United States | | | 20,000 | 19,861 |
| | 3.00%, 2/15/41 | United States | | | 10,000 | 7,685 |
| | 3.375%, 4/15/29 | United States | | | 50,000 | 48,028 |
| | 5.15%, 4/15/34 | United States | | | 20,000 | 20,611 |
| | Verizon Communications, Inc., | | | | | |
| | 4.862%, 8/21/46 | United States | | | 40,000 | 39,010 |
| | 2.355%, 3/15/32 | United States | | | 120,000 | 103,421 |
| | a 4.78%, 2/15/35 | United States | | | 100,000 | 99,897 |
| | | | | | | 632,102 |
| | Transportation 0.2% | | | | | |
| | Burlington Northern Santa Fe LLC, 2.875%, 6/15/52 | United States | | | 10,000 | 6,906 |
| | Canadian Pacific Railway Co., 3.10%, 12/02/51 | Canada | | | 20,000 | 14,299 |
| | Union Pacific Corp., | | | | | |
| | 3.75%, 2/05/70 | United States | | | 20,000 | 15,168 |
| | 3.839%, 3/20/60 | United States | | | 40,000 | 32,012 |
| | 2.891%, 4/06/36 | United States | | | 20,000 | 17,222 |
| | | | | | | 85,607 |
| | Wireless Telecommunication Services 0.4% | | | | | |
| | T-Mobile USA, Inc., 3.875%, 4/15/30 | United States | | | 170,000 | 165,364 |
| | Total Corporate Bonds & Notes (Cost $16,268,429) | | | | | 17,186,072 |
| 12 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investment
Western Asset Bond ETF (continued)
| | | Country | | | Principal Amount* | Value |
| | U.S. Government & Agency
Securities 48.0% | | | | | |
| | Federal Home Loan Mortgage Corp., | | | | | |
| | 2.00%, 3/01/41 | United States | | | 70,531 | $ 61,635 |
| | 2.00%, 8/01/41 | United States | | | 392,761 | 342,912 |
| | 2.00%, 12/01/41 | United States | | | 80,295 | 69,879 |
| | 2.00%, 5/01/42 | United States | | | 186,809 | 162,472 |
| | 2.00%, 7/01/50 | United States | | | 55,497 | 46,320 |
| | 2.50%, 11/01/51 | United States | | | 78,833 | 69,318 |
| | 3.00%, 9/01/40 | United States | | | 235,634 | 222,052 |
| | 5.00%, 4/01/53 | United States | | | 90,897 | 91,954 |
| | 6.00%, 8/01/53 | United States | | | 824,802 | 847,754 |
| | Federal National Mortgage Association, | | | | | |
| | 1.50%, 11/01/41 | United States | | | 80,865 | 67,913 |
| | 1.50%, 3/01/42 | United States | | | 94,515 | 79,469 |
| | 2.00%, 6/01/42 | United States | | | 92,767 | 80,696 |
| | 2.00%, 8/01/42 | United States | | | 182,697 | 157,418 |
| | 2.00%, 6/01/50 | United States | | | 171,171 | 142,904 |
| | 2.00%, 7/01/51 | United States | | | 93,399 | 77,732 |
| | 2.00%, 3/01/52 | United States | | | 373,089 | 314,168 |
| | 2.50%, 11/01/41 | United States | | | 227,907 | 206,086 |
| | 2.50%, 12/01/51 | United States | | | 80,239 | 70,797 |
| | 2.50%, 2/01/52 | United States | | | 2,098,812 | 1,840,210 |
| | 3.00%, 7/01/50 | United States | | | 42,016 | 38,021 |
| | 3.00%, 9/01/51 | United States | | | 71,941 | 65,100 |
| | 3.00%, 12/01/51 | United States | | | 90,947 | 82,694 |
| | 3.00%, 9/01/61 | United States | | | 253,898 | 221,891 |
| | 3.50%, 3/01/52 | United States | | | 244,634 | 229,133 |
| | 5.00%, 7/01/53 | United States | | | 88,786 | 90,946 |
| | 5.50%, 11/01/52 | United States | | | 175,668 | 179,001 |
| | 5.50%, 4/01/53 | United States | | | 353,363 | 358,806 |
| | 5.50%, 7/01/53 | United States | | | 92,101 | 94,209 |
| | 6.50%, 10/01/53 | United States | | | 90,411 | 94,045 |
| | 6.50%, 4/01/54 | United States | | | 90,975 | 94,467 |
| | Government National Mortgage Association, | | | | | |
| | 2.00%, 8/20/50 | United States | | | 57,492 | 48,887 |
| | 2.00%, 11/20/50 | United States | | | 63,172 | 53,668 |
| | 2.00%, 2/20/51 | United States | | | 72,945 | 60,391 |
| | 2.00%, 4/20/51 | United States | | | 74,871 | 61,986 |
| | 2.00%, 7/20/51 | United States | | | 74,392 | 63,112 |
| | 2.50%, 8/20/51 | United States | | | 596,822 | 526,321 |
| | 2.50%, 9/20/51 | United States | | | 75,955 | 66,966 |
| | 5.00%, 8/20/52 | United States | | | 170,939 | 171,713 |
| | 5.00%, 8/20/53 | United States | | | 92,184 | 92,881 |
| | 5.50%, 3/20/53 | United States | | | 90,094 | 91,639 |
| | 5.50%, 4/20/53 | United States | | | 88,781 | 89,780 |
| | 5.50%, 5/20/53 | United States | | | 91,146 | 92,145 |
| | 5.50%, 5/20/53 | United States | | | 93,277 | 94,914 |
| | 5.50%, 8/20/53 | United States | | | 94,429 | 96,321 |
| | 6.00%, 7/20/53 | United States | | | 93,727 | 96,357 |
| | 6.00%, 9/20/53 | United States | | | 97,497 | 99,451 |
| | 6.50%, 1/20/54 | United States | | | 91,622 | 94,625 |
| | Government National Mortgage Association, TBA, | | | | | |
| | 2.00%, 10/20/54 | United States | | | 100,000 | 84,805 |
| | 2.50%, 10/20/54 | United States | | | 100,000 | 88,145 |
| | 3.00%, 10/20/54 | United States | | | 300,000 | 273,609 |
| | 3.50%, 10/20/54 | United States | | | 400,000 | 375,842 |
| | 4.00%, 10/20/54 | United States | | | 300,000 | 290,077 |
| | 4.50%, 10/20/54 | United States | | | 300,000 | 296,256 |
| | 5.00%, 10/20/54 | United States | | | 200,000 | 200,351 |
| franklintempleton.com | Semi-Annual Report | 13 |
Franklin Templeton ETF Trust
Schedule of Investment
Western Asset Bond ETF (continued)
| | | Country | | | Principal Amount* | Value |
| | U.S. Government & Agency Securities (continued) | | | | | |
| | U.S. Treasury Bonds, | | | | | |
| | 3.00%, 8/15/48 | United States | | | 3,240,000 | $ 2,628,577 |
| | 4.25%, 2/15/54 | United States | | | 90,000 | 91,744 |
| | 4.375%, 8/15/43 | United States | | | 2,250,000 | 2,314,292 |
| | 4.625%, 5/15/44 | United States | | | 10,000 | 10,602 |
| | 4.75%, 11/15/43 | United States | | | 280,000 | 302,127 |
| | U.S. Treasury Notes, | | | | | |
| | 3.75%, 8/31/31 | United States | | | 10,000 | 10,055 |
| | 3.875%, 8/15/34 | United States | | | 30,000 | 30,213 |
| | 4.00%, 2/15/34 | United States | | | 30,000 | 30,523 |
| | 4.125%, 3/31/29 | United States | | | 360,000 | 368,241 |
| | 4.125%, 3/31/31 | United States | | | 370,000 | 380,124 |
| | 4.25%, 2/28/29 | United States | | | 20,000 | 20,559 |
| | 4.375%, 11/30/30 | United States | | | 130,000 | 135,251 |
| | 4.625%, 9/15/26 | United States | | | 70,000 | 71,266 |
| | 4.625%, 9/30/28 | United States | | | 100,000 | 103,896 |
| | 4.625%, 4/30/29 | United States | | | 10,000 | 10,444 |
| | 4.625%, 5/31/31 | United States | | | 340,000 | 359,344 |
| | 4.875%, 10/31/28 | United States | | | 10,000 | 10,490 |
| | 5.00%, 9/30/25 | United States | | | 60,000 | 60,597 |
| | Uniform Mortgage-Backed Security, TBA, | | | | | |
| | 2.00%, 10/01/54 | United States | | | 300,000 | 248,062 |
| | 3.00%, 10/01/54 | United States | | | 1,400,000 | 1,256,717 |
| | 3.50%, 10/01/54 | United States | | | 300,000 | 279,397 |
| | 4.00%, 10/01/54 | United States | | | 600,000 | 576,264 |
| | 4.50%, 10/01/54 | United States | | | 500,000 | 491,592 |
| | 5.00%, 10/01/54 | United States | | | 300,000 | 299,848 |
| | 6.50%, 10/01/54 | United States | | | 200,000 | 206,210 |
| | Total U.S. Government & Agency Securities (Cost $19,749,921) | | | | | 20,306,679 |
| | Foreign Government and Agency
Securities 0.9% | | | | | |
| b | Dominican Republic International Bonds, 6.000%, 2/22/33 | Dominican Republic | | | 200,000 | 204,819 |
| | Mexico Government International Bonds, 4.875%, 5/19/33 | Mexico | | | 200,000 | 192,049 |
| | Total Foreign Government and Agency Securities (Cost $367,661) | | | | | 396,868 |
| c | Senior Floating Rate Interests 0.1% | | | | | |
| | Health Care Providers & Services 0.1% | | | | | |
| d | Medline Borrower LP, 2024 USD Term Loan B, TBD, 10/23/28 | United States | | | 30,000 | 29,997 |
| | Health Care Services 0.0%† | | | | | |
| | Sotera Health Holdings LLC, 2024 Term Loan B, 1 mo. USD Term SOFR + 3.25%, 8.095%, 5/30/31 | United States | | | 30,000 | 29,944 |
| | Total Floating Rate Loans (Cost $59,968) | | | | | 59,941 |
| 14 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investment
Western Asset Bond ETF (continued)
| | | Country | | | Principal Amount* | Value |
| | Asset-Backed Securities 8.3% | | | | | |
| c | Accredited Mortgage Loan Trust, Series 2004-4, Class A2D, 1 mo. USD Term SOFR + 0.81%, 4.83%, 1/25/35 | United States | | | 95,517 | $ 92,061 |
| | Ally Auto Receivables Trust, | | | | | |
| | Series 2022-3, Class A3, ABS, 5.07%, 4/15/27 | United States | | | 77,035 | 77,191 |
| | Series 2024-2, Class A3, 4.14%, 7/16/29 | United States | | | 130,000 | 130,117 |
| a,c | ARES XLIV CLO Ltd., Series 2017-44A, Class A1R, 3 mo. USD Term SOFR + 1.34%, 6.643%, 4/15/34 | Cayman Islands | | | 100,000 | 100,174 |
| a | Avis Budget Rental Car Funding AESOP LLC, Series 2023-8A, Class A, 6.02%, 2/20/30 | United States | | | 150,000 | 158,173 |
| a,c | Bain Capital Credit CLO Ltd., Series 2023-1A, Class AN, 3 mo. USD Term SOFR + 1.83%, 7.116%, 4/16/36 | Jersey | | | 200,000 | 200,806 |
| | Bayview Opportunity Master Fund VII LLC, | | | | | |
| | a,c Series 2024-EDU1, Class C, 30 day USD SOFR Average + 1.80%, 7.08%, 6/25/47 | United States | | | 90,195 | 90,312 |
| | a,c Series 2024-EDU1, Class A, 30 day USD SOFR Average + 1.45%, 6.73%, 6/25/47 | United States | | | 90,195 | 90,458 |
| | Capital One Multi-Asset Execution Trust, Series 2022-A1, Class A1, ABS, 2.80%, 3/15/27 | United States | | | 100,000 | 99,142 |
| | Capital One Prime Auto Receivables Trust, Series 2022-2, Class A3, ABS, 3.66%, 5/17/27 | United States | | | 84,716 | 84,165 |
| | CarMax Auto Owner Trust, Series 2023-4, Class A2A, ABS, 6.08%, 12/15/26 | United States | | | 63,184 | 63,513 |
| a | College Avenue Student Loans LLC, Series 2021-C, Class C, 3.06%, 7/26/55 | United States | | | 173,429 | 159,616 |
| a,c | Dryden 87 CLO Ltd., Series 2021-87A, Class A1, 3 mo. USD Term SOFR + 1.36%, 6.49%, 5/20/34 | Cayman Islands | | | 350,000 | 350,341 |
| a | Ent Auto Receivables Trust, Series 2023-1A, Class A4, 6.26%, 11/15/29 | United States | | | 100,000 | 103,627 |
| a | Enterprise Fleet Financing LLC, Series 2023-1, Class A2, 5.51%, 1/22/29 | United States | | | 76,743 | 77,172 |
| | Ford Credit Auto Lease Trust, Series 2023-A, Class A4, ABS, 4.83%, 5/15/26 | United States | | | 100,000 | 100,035 |
| | GM Financial Automobile Leasing Trust, Series 2023-1, Class A3, ABS, 5.16%, 4/20/26 | United States | | | 77,093 | 77,179 |
| a,c | GoldenTree Loan Management U.S. CLO 11 Ltd., Series 2021-11A, Class A, 3 mo. USD Term SOFR + 1.39%, 6.674%, 10/20/34 | Cayman Islands | | | 300,000 | 300,287 |
| a | MetroNet Infrastructure Issuer LLC, Series 2024-1A, Class A2, 6.23%, 4/20/54 | United States | | | 140,000 | 145,473 |
| a,c | Nelnet Student Loan Trust, Series 2021-CA, Class AFL, 1 mo. USD Term SOFR + 0.85%, 5.815%, 4/20/62 | United States | | | 111,843 | 110,584 |
| c | New Century Home Equity Loan Trust, Series 2004-2, Class M2, 1 mo. USD Term SOFR + 1.04%, 5.899%, 8/25/34 | United States | | | 109,889 | 119,636 |
| a,c | Point Au Roche Park CLO Ltd., Series 2021-1A, Class A, 3 mo. USD Term SOFR + 1.34%, 6.624%, 7/20/34 | Cayman Islands | | | 100,000 | 100,074 |
| | Santander Drive Auto Receivables Trust, | | | | | |
| | Series 2022-3, Class B, ABS, 4.13%, 8/16/27 | United States | | | 92,239 | 91,975 |
| | Series 2023-5, Class A2, ABS, 6.31%, 7/15/27 | United States | | | 50,346 | 50,509 |
| franklintempleton.com | Semi-Annual Report | 15 |
Franklin Templeton ETF Trust
Schedule of Investment
Western Asset Bond ETF (continued)
| | | Country | | | Principal Amount* | Value |
| | Asset-Backed Securities (continued) | | | | | |
| a | Sapphire Aviation Finance II Ltd., Series 2020-1A, Class A, 3.228%, 3/15/40 | Cayman Islands | | | 150,780 | $ 138,596 |
| a,c | Symphony CLO 40 Ltd., Series 2023-40A, Class A1, 3 mo. USD Term SOFR + 1.64%, 6.941%, 1/14/34 | Bermuda | | | 160,000 | 160,347 |
| | Volkswagen Auto Loan Enhanced Trust, Series 2023-2, Class A2A, ABS, 5.72%, 3/22/27 | United States | | | 74,360 | 74,798 |
| a,c | Voya CLO Ltd., Series 2018-2A, Class A1, 3 mo. USD Term SOFR + 1.26%, 6.563%, 7/15/31 | Cayman Islands | | | 154,386 | 154,503 |
| | Total Asset-Backed Securities (Cost $3,439,841) | | | | | 3,500,864 |
| | Mortgage-Backed Securities 0.2% | | | | | |
| | Federal Home Loan Mortgage Corp. REMICS, Series 5274, Class IO, CMO, IO, 2.50%, 1/25/51 | United States | | | 623,855 | 103,326 |
| | Total Mortgage-Backed Securities (Cost $100,207) | | | | | 103,326 |
| | Residential Mortgage-Backed
Securities 1.2% | | | | | |
| | Federal Home Loan Mortgage Corp. STACR REMICS Trust, | | | | | |
| | a,c Series 2022-DNA1, Class M1B, 30 day USD SOFR Average + 1.85%, 7.13%, 1/25/42 | United States | | | 100,000 | 101,463 |
| | a,c Series 2022-DNA2, Class M1B, 30 day USD SOFR Average + 2.40%, 7.68%, 2/25/42 | United States | | | 170,000 | 174,081 |
| | a,c Series 2022-DNA4, Class M1B, 30 day USD SOFR Average + 3.35%, 8.63%, 5/25/42 | United States | | | 100,000 | 104,939 |
| | a,c Series 2022-DNA2, Class M2, 30 day USD SOFR Average + 3.75%, 9.03%, 2/25/42 | United States | | | 100,000 | 105,190 |
| | Total Residential Mortgage-Backed Securities (Cost $475,450) | | | | | 485,673 |
| | Commercial Mortgage-Backed
Securities 7.4% | | | | | |
| | Angel Oak Mortgage Trust, | | | | | |
| | a,c Series 2022-3, Class A3, 4.165%, 1/25/67 | United States | | | 96,744 | 91,728 |
| | a Series 2023-1, Class A1, 4.75%, 9/26/67 | United States | | | 139,257 | 138,504 |
| | Bank, Series 2017-BNK7, Class A5, 3.435%, 9/15/60 | United States | | | 100,000 | 97,141 |
| | Benchmark Mortgage Trust, Series 2023-B39, Class A5, 5.754%, 7/15/56 | United States | | | 150,000 | 162,418 |
| a,c | BPR Trust, Series 2022-OANA, Class A, 1 mo. USD Term SOFR + 1.90%, 6.995%, 4/15/37 | United States | | | 100,000 | 100,457 |
| | BX Commercial Mortgage Trust, | | | | | |
| | a,c Series 2021-VOLT, Class A, 1 mo. USD Term SOFR + 0.81%, 5.911%, 9/15/36 | United States | | | 110,000 | 109,371 |
| | a,c Series 2024-XL5, Class A, 1 mo. USD Term SOFR + 1.39%, 6.488%, 3/15/41 | United States | | | 92,457 | 92,591 |
| | BX Trust, | | | | | |
| | a Series 2019-OC11, Class A, 3.202%, 12/09/41 | United States | | | 130,000 | 120,964 |
| | a,c Series 2021-BXMF, Class A, 1 mo. USD Term SOFR + 0.75%, 5.847%, 10/15/26 | United States | | | 88,883 | 88,156 |
| 16 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investment
Western Asset Bond ETF (continued)
| | | Country | | | | | Principal Amount* | Value |
| | Commercial Mortgage-Backed
Securities (continued) | | | | | | | |
| | CGMS Commercial Mortgage Trust, Series 2017-B1, Class A3, 3.197%, 8/15/50 | United States | | | | | 164,500 | $ 159,324 |
| a,c | Extended Stay America Trust, Series 2021-ESH, Class C, 1 mo. USD Term SOFR + 1.81%, 6.912%, 7/15/38 | United States | | | | | 124,745 | 124,624 |
| a,c | FS Commercial Mortgage Trust, Series 2023-4SZN, Class B, 7.795%, 11/10/39 | United States | | | | | 100,000 | 105,828 |
| a,c | GCAT Trust, Series 2024-INV1, Class 1A2, 5.50%, 1/25/54 | United States | | | | | 93,496 | 93,355 |
| c | GS Mortgage Securities Trust, Series 2018-GS10, Class A5, 4.155%, 7/10/51 | United States | | | | | 110,000 | 107,416 |
| a,c | LAQ Mortgage Trust, Series 2023-LAQ, Class A, 1 mo. USD Term SOFR + 2.09%, 7.188%, 3/15/36 | United States | | | | | 35,318 | 35,374 |
| a,c | MIC Trust, Series 2023-MIC, Class A, 8.732%, 12/05/38 | United States | | | | | 100,000 | 110,408 |
| a,c | Morgan Stanley Residential Mortgage Loan Trust, Series 2024-INV2, Class A1, 6.50%, 2/25/54 | United States | | | | | 88,869 | 90,382 |
| c | MSWF Commercial Mortgage Trust, Series 2023-2, Class A5, 6.014%, 12/15/56 | United States | | | | | 100,000 | 110,332 |
| a,c | NJ Trust, Series 2023-GSP, Class A, 6.697%, 1/06/29 | United States | | | | | 100,000 | 106,196 |
| a,c | NRTH Mortgage Trust, Series 2024-PARK, Class A, 1 mo. USD Term SOFR + 1.64%, 6.738%, 3/15/39 | United States | | | | | 100,000 | 100,207 |
| a,c | NYC Trust, Series 2024-3ELV, Class A, 1 mo. USD Term SOFR + 1.99%, 7.088%, 8/15/29 | United States | | | | | 100,000 | 100,642 |
| a,c | ONNI Commercial Mortgage Trust, Series 2024-APT, Class A, 5.753%, 7/15/39 | United States | | | | | 100,000 | 102,427 |
| a,c | PFP Ltd., Series 2024-11, Class A, 1 mo. USD Term SOFR + 1.83%, 6.915%, 9/17/39 | Bermuda | | | | | 100,000 | 100,600 |
| a,c | RCKT Mortgage Trust, Series 2024-INV1, Class A1, 6.50%, 6/25/54 | United States | | | | | 96,909 | 98,076 |
| a | SG Residential Mortgage Trust, Series 2022-2, Class A1, 5.353%, 8/25/62 | United States | | | | | 103,835 | 103,953 |
| | UBS Commercial Mortgage Trust, Series 2017-C4, Class A3, 3.301%, 10/15/50 | United States | | | | | 118,434 | 113,689 |
| | Verus Securitization Trust, | | | | | | | |
| | a Series 2023-4, Class A1, 5.811%, 5/25/68 | United States | | | | | 79,320 | 79,894 |
| | a,c Series 2022-7, Class A3, 5.35%, 7/25/67 | United States | | | | | 97,057 | 96,718 |
| | a Series 2024-4, Class A3, 6.674%, 6/25/69 | United States | | | | | 95,333 | 97,089 |
| | a Series 2024-3, Class A3, 6.845%, 4/25/69 | United States | | | | | 91,925 | 93,739 |
| | Total Commercial Mortgage-Backed Securities (Cost $3,021,929) | | | | | | | 3,131,603 |
| |
| | | | Expiration
Date | | Contracts | | Notional
Amount | |
| | Purchased Options 0.0%† | | | | | | | |
| | U.S. Treasury 5 Yr. Note | | 11/22/24 | | 5,000 | | $ 549,414 | 2,109 |
| | Total Purchased Option (Cost $2,704) | | | | | | | 2,109 |
| | Total Investments before Short-Term Investments (Cost $43,486,110) | | | | | | | 45,173,135 |
| |
| franklintempleton.com | Semi-Annual Report | 17 |
Franklin Templeton ETF Trust
Schedule of Investment
Western Asset Bond ETF (continued)
| | | Country | | | Principal Amount* | Value |
| | Short-Term Investments 3.7% | | | | | |
| | Money Market Funds 3.7% | | | | | |
| e | Invesco Government & Agency Portfolio, 4.76% | United States | | | 1,579,078 | $ 1,579,078 |
| | Total Short-Term Investments (Cost $1,579,078) | | | | | 1,579,078 |
| | Total Investments (Cost $45,065,188) 110.4% | | | | | 46,752,213 |
| | Securities Sold Short (0.2)% | | | | | |
| | U.S. Government & Agency Securities
(0.2)% | | | | | |
| | Government National Mortgage Association, TBA, 5.50%, 10/20/54 | United States | | | (100,000) | (100,979) |
| | Total Securities Sold Short (Proceeds $(101,141)) | | | (100,979) |
| | Other Assets, less Liabilities (10.4)% | | | | | (4,317,367) |
| | Net Assets 100.0% | | | | | $ 42,333,867 |
| *The principal amount is stated in U.S. dollars unless otherwise indicated. |
| †Rounds to less than 0.1% of net assets. |
| aSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At September 30, 2024, the value of was $8,096,133, representing 19.1% of net assets. |
| bSecurity was purchased pursuant to Regulation S under the Securities Act of 1933, which exempts from registration securities offered and sold outside of the United States. Such a security cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration. At September 30, 2024, the value of was $1,659,073, representing 3.9% of net assets. |
| cVariable rate security. The rate shown represents the yield at period end. |
| dA portion or all of the security represents an unsettled loan commitment. The coupon rate is to-be determined (TBD) at the time of settlement and will be based upon a reference index/floor plus a spread. |
| eThe rate shown is the annualized seven-day effective yield at period end. |
At September 30, 2024, the Fund had the following interest rate swap contracts outstanding. See Note 1(d).
Interest Rate Swap Contracts
| Description | Periodic
Payment
Rate
Received
(Paid) | Payment
Frequency | Maturity
Date | Notional
Amount | Value | Unamortized
Upfront
Payments
(Receipts) | Unrealized
Appreciation
(Depreciation) |
| Interest rate contracts | | | | | | | |
| Chicago Mercantile Exchange | (3.15)% | Annually | 5/15/48 | $ 537,000 | $ 25,739 | $ 58,324 | $ (32,585) |
| Chicago Mercantile Exchange | (4.2)% | Annually | 4/30/31 | $ 3,506,000 | $ (188,565) | $ (41,513) | $ (147,052) |
| | | | | | | | $(179,637) |
At September 30, 2024, the Fund had the following centrally cleared credit default swap contracts outstanding. See Note 1(d).
Centrally Cleared Credit Default Swap Contracts
| Description | Periodic
Payment
Rate
Received
(Paid) | Payment
Frequency | Maturity
Date | Notional
Amount | Value | Unamortized
Upfront
Payments
(Receipts) | Unrealized
Appreciation
(Depreciation) |
| Credit rate contracts | | | | | | | |
| Intercontinental Exchange, Inc. | 1.00% | Quarterly | 12/20/29 | $ 3,184,000 | $ 71,762 | $ 71,518 | $ 244 |
| | | | | | | | $244 |
| 18 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investment
Western Asset Bond ETF (continued)
At September 30, 2024, the Fund had the following futures contracts outstanding. See Note 1(d).
Futures Contracts
| Description | Type | Number of
Contracts | Notional
Amount* | Expiration
Date | Value/Unrealized
Appreciation
(Depreciation) |
| Interest rate contracts | | | | | |
| 3-Month CME Term SOFR | Long | 24 | $ 5,820,000 | 3/17/26 | $ 52,523 |
| U.S. Treasury 10 Yr. Note | Long | 48 | 5,485,500 | 12/19/24 | 2,030 |
| U.S. Treasury 2 Yr. Note | Long | 12 | 2,498,906 | 12/31/24 | 8,454 |
| U.S. Treasury 5 Yr. Note | Long | 60 | 6,592,969 | 12/31/24 | 8,297 |
| U.S. Treasury Bond Long | Short | 4 | 496,750 | 12/19/24 | 118 |
| U.S. Treasury Bond Ultra | Short | 4 | 532,375 | 12/19/24 | 3,962 |
| U.S. Treasury Ultra 10 Yr. Note | Short | 10 | 1,182,969 | 12/19/24 | (1,004) |
| Total Futures Contracts | | | | | $74,380 |
At September 30, 2024, the Fund had the following written options contracts. See Note 1(d).
Written Options
| Description | Expiration
Date | Strike
Price | Contracts | Notional
Amount* | Value |
| Call Option Written | | | | | |
| U.S. Treasury 5 Yr. Note 111.00 Call | 10/25/24 | 111.00 | 5 | $549,414 | $(625) |
| (Premiums received—$1,123) | | | | | |
| Put Option Written | | | | | |
| U.S. Treasury 5 Yr. Note 108.00 Call | 11/22/24 | 108.00 | 5 | $549,414 | $(898) |
| (Premiums received—$1,320) | | | | | |
| *Notional amount denominated in U.S. dollars, unless otherwise noted. |
See Note 7 regarding other derivative information.
See Abbreviations on page 31.
| franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Semi-Annual Report | 19 |
FRANKLIN TEMPLETON ETF TRUST
FINANCIAL STATEMENTS
Statement of Assets and Liabilities
September 30, 2024 (unaudited)
Western Asset Bond ETF
| Assets: | |
| Investments in securities: | |
| Cost – Unaffiliated issuers | $ 45,065,188 |
| Value – Unaffiliated issuers | $ 46,752,213 |
| Cash | 45,467 |
| Receivables: | |
| Dividends and interest | 301,070 |
| Investment securities sold | 650,246 |
| Variation margin on centrally cleared swap contracts | 16,480 |
| Deposits with brokers for: | |
| Futures contracts | 185,196 |
| Swap contracts | 128,968 |
| Total assets | 48,079,640 |
| Liabilities: | |
| Payables: | |
| Investment securities purchased | 5,588,616 |
| Management fees | 12,043 |
| Variation margin on futures contracts | 42,612 |
| Options written, at value (premiums received $2,443) | 1,523 |
| Securities sold short, at value (proceeds $101,141) | 100,979 |
| Total liabilities | 5,745,773 |
| Net assets, at value | $ 42,333,867 |
| Net assets consist of: | |
| Paid-in capital | $ 39,885,774 |
| Total distributable earnings (loss) | 2,448,093 |
| Net assets, at value | $ 42,333,867 |
| Shares outstanding | 1,600,000 |
| Net asset value per share | $26.46 |
| 20 | Semi-Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
FINANCIAL STATEMENTS
Statement of Operations
for the period ended September 30, 2024 (unaudited)
| Investment income: | |
| Interest: | |
| Unaffiliated issuers | $ 1,130,847 |
| Total investment income | 1,130,847 |
| Expenses: | |
| Management fees (Note 3a) | 72,020 |
| Total expenses | 72,020 |
| Expenses waived/paid by affiliates | (596) |
| Net expenses | 71,424 |
| Net investment income | 1,059,423 |
| Realized and unrealized gains (losses): | |
| Net realized gain (loss) from: | |
| Investments: | |
| Unaffiliated issuers | 352,316 |
| Written options | 26,691 |
| Futures contracts | 101,402 |
| Swap contracts | 25,767 |
| Net realized gain (loss) | 506,176 |
| Net change in unrealized appreciation (depreciation) on: | |
| Investments: | |
| Unaffiliated issuers | 844,078 |
| Written options | (273) |
| Futures contracts | 20,884 |
| Swap contracts | (146,055) |
| Securities Sold Short | 162 |
| Net change in unrealized appreciation (depreciation) | 718,796 |
| Net realized and unrealized gain (loss) | 1,224,972 |
| Net increase (decrease) in net assets resulting from operations | $2,284,395 |
| franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Semi-Annual Report | 21 |
FRANKLIN TEMPLETON ETF TRUST
FINANCIAL STATEMENTS
Statements of Changes in Net Assets
Western Asset Bond ETF
| | Six Months Ended
September 30, 2024
(unaudited) | Period Ended
March 31, 2024a
|
| Increase (decrease) in net assets: | | |
| Operations: | | |
| Net investment income | $ 1,059,423 | $ 1,160,518 |
| Net realized gain | 506,176 | 214,897 |
| Net change in unrealized appreciation (depreciation) | 718,796 | 864,298 |
| Net increase (decrease) in net assets resulting from operations | 2,284,395 | 2,239,713 |
| Distributions to shareholders | (1,127,475) | (948,540) |
| Capital share transactions: (Note 2) | — | 39,885,774 |
| Net increase (decrease) in net assets | 1,156,920 | 41,176,947 |
| Net assets: | | |
| Beginning of period | 41,176,947 | — |
| End of period | $ 42,333,867 | $ 41,176,947 |
| aFor the period September 19, 2023 (commencement of operations) to March 31, 2024. |
| 22 | Semi-Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
Notes to Financial Statements (unaudited)
1. Organization and Significant Accounting Policies
Franklin Templeton ETF Trust (Trust) is registered under the Investment Company Act of 1940 (1940 Act) as an open-end management investment company consisting of forty-nine separate funds, one of which is included in this report (Fund). The Fund follows the accounting and reporting guidance in Financial Accounting Standards Board ("FASB") Accounting Standard Codification Topic 946, Financial Services - Investment Companies ("ASC 946"), and applies the specialized accounting and reporting guidance in U.S. Generally Accepted Accounting Principles (U.S. GAAP), including, but not limited to, ASC 946. The Fund is an exchange traded fund (ETF) and seek to provide the investment results that closely correspond, before fees and expenses, to the performance of Fund corresponding underlying index.
The following summarizes the Fund’s significant accounting policies.
a. Financial Instrument Valuation
The Fund’s investments in financial instruments are carried at fair value daily. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. The Fund calculates the net asset value (NAV) per share each business day as of 4 p.m. Eastern time or the regularly scheduled close of the New York Stock Exchange (NYSE), whichever is earlier. Under compliance policies and procedures approved by the Fund’s Board of Trustees (the Board), the Board has designated the Fund’s investment manager as the valuation designee and has responsibility for oversight of valuation. The investment manager is assisted by the Fund’s administrator in performing this responsibility, including leading the cross-functional Valuation Committee (VC).
The Fund may utilize independent pricing services, quotations from securities and financial instrument dealers, and other market sources to determine fair value.
Equity securities, exchange trade funds and derivative financial instruments listed on an exchange or on the NASDAQ National Market System are valued at the last quoted sale price or the official closing price of the day, respectively. Foreign equity securities are valued as of the close of trading on the foreign stock exchange on which the security is primarily traded or as of 4 p.m. Eastern time. The value is then converted into its U.S. dollar equivalent at the foreign exchange rate in effect at 4 p.m. London time on the
day that the value of the security is determined. Over-the-counter (OTC) securities are valued within the range of the most recent quoted bid and ask prices. Securities that trade in multiple markets or on multiple exchanges are valued according to the broadest and most representative market. Certain equity securities are valued based upon fundamental characteristics or relationships to similar securities.
Investments in open-end mutual funds are valued at the closing NAV.
Certain derivative financial instruments are centrally cleared or trade in the OTC market. The Funds pricing services use various techniques including industry standard option pricing models and proprietary discounted cash flow models to determine the fair value of those instruments. The Funds’ net benefit or obligation under the derivative contract, as measured by the fair value of the contract, is included in net assets.
The Fund has procedures to determine the fair value of financial instruments for which market prices are not reliable or readily available. Under these procedures, the Fund primarily employs a market-based approach which may use related or comparable assets or liabilities, recent transactions, market multiples, book values, and other relevant information for the investment to determine the fair value of the investment. An income-based valuation approach may also be used in which the anticipated future cash flows of the investment are discounted to calculate fair value. Discounts may also be applied due to the nature or duration of any restrictions on the disposition of the investments. Due to the inherent uncertainty of valuations of such investments, the fair values may differ significantly from the values that would have been used had an active market existed.
Trading in securities on foreign securities stock exchanges and OTC markets may be completed before 4 p.m. Eastern time. In addition, trading in certain foreign markets may not take place on Fund business day. Occasionally, events occur between the time at which trading in a foreign security is completed and 4 p.m. Eastern time that might call into question the reliability of the value of a portfolio security held by the Fund. As a result, differences may arise between the value of the Fund’s portfolio securities as determined at the foreign market close and the latest indications of value at 4 p.m. Eastern time. In order to minimize the potential for these differences, an independent pricing service may be used to adjust the Fund’s portfolio securities to the latest indications of fair value at 4 p.m. Eastern time on
| franklintempleton.com | Semi-Annual Report | 23 |
FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. Organization and Significant Accounting Policies (continued)
a. Financial Instrument Valuation (continued)
September 30, 2024. At September 30, 2024, certain securities may have been fair valued using these procedures, in which case the securities were categorized as Level 2 inputs within the fair value hierarchy (referred to as “market level fair value”).
When the last day of the reporting period is a non-business day, certain foreign markets may be open on those days that the Fund’s NAV is not calculated, which could result in differences between the value of the Fund’s portfolio securities on the last business day and the last calendar day of the reporting period. Any significant security valuation changes due to an open foreign market are adjusted and reflected by the Fund for financial reporting purposes.
b. Foreign Currency Translation
Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars based on the exchange rate of such currencies against U.S. dollars on the date of valuation. The Fund may enter into foreign currency exchange contracts to facilitate transactions denominated in a foreign currency. Purchases and sales of securities, income and expense items denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date. Portfolio securities and assets and liabilities denominated in foreign currencies contain risks that those currencies will decline in value relative to the U.S. dollar. Occasionally, events may impact the availability or reliability of foreign exchange rates used to convert the U.S. dollar equivalent value. If such an event occurs, the foreign exchange rate will be valued at fair value using procedures established and approved by the Board.
The Fund does not separately report the effect of changes in foreign exchange rates from changes in market prices on securities held. Such changes are included in net realized and unrealized gain or loss from investments in the Statements of Operations.
Realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions and the difference between the recorded amounts of dividends, interest, and foreign withholding taxes and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and
losses arise from changes in foreign exchange rates on foreign denominated assets and liabilities other than investments in securities held at the end of the reporting period.
c. Derivative Financial Instruments
The Fund invested in derivative financial instruments in order to manage risk or gain exposure to various other investments or markets. Derivatives are financial contracts based on an underlying or notional amount, require no initial investment or an initial net investment that is smaller than would normally be required to have a similar response to changes in market factors, and require or permit net settlement. Derivatives contain various risks including the potential inability of the counterparty to fulfill their obligations under the terms of the contract, the potential for an illiquid secondary market, and/or the potential for market movements which expose the Fund to gains or losses in excess of the amounts shown in the Statement of Assets and Liabilities. Realized gain and loss and unrealized appreciation and depreciation on these contracts for the period are included in the Statement of Operations.
Derivative counterparty credit risk is managed through a formal evaluation of the creditworthiness of all potential counterparties. The Fund attempts to reduce their exposure to counterparty credit risk on OTC derivatives, whenever possible, by entering into International Swaps and Derivatives Association (ISDA) master agreements with certain counterparties. These agreements contain various provisions, including but not limited to collateral requirements, events of default, or early termination.
Termination events applicable to the counterparty include certain deteriorations in the credit quality of the counterparty. Termination events applicable to the Funds include failure of the Funds to maintain certain net asset levels and/or limit the decline in net assets over various periods of time. In the event of default or early termination, the ISDA master agreement gives the non-defaulting party the right to net and close-out all transactions traded, whether or not arising under the ISDA agreement, to one net amount payable by one counterparty to the other. Early termination by the counterparty may result in an immediate payment by the Funds of any net liability owed to that counterparty under the ISDA agreement.
The Fund entered into credit default swap contracts primarily to manage and/or gain exposure to credit risk. A credit default swap is an agreement between the Fund and a counterparty whereby the buyer of the contract receives
| 24 | Semi-Annual Report | franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. Organization and Significant Accounting Policies (continued)
c. Derivative Financial Instruments (continued)
credit protection and the seller of the contract guarantees the credit worthiness of a referenced debt obligation. These agreements may be privately negotiated in the over-the-counter market (OTC credit default swaps) or may be executed in a multilateral trade facility platform, such as a registered exchange (centrally cleared credit default swaps). The underlying referenced debt obligation may be a single issuer of corporate or sovereign debt, a credit index, a basket of issuers or indices, or a tranche of a credit index or basket of issuers or indices. In the event of a default of the underlying referenced debt obligation, the buyer is entitled to receive the notional amount of the credit default swap contract from the seller in exchange for the referenced debt obligation, a net settlement amount equal to the notional amount of the credit default swap less the recovery value of the referenced debt obligation, or other agreed upon amount. For centrally cleared credit default swaps, required initial margins are pledged by the Fund, and the daily change in fair value is accounted for as a variation margin payable or receivable. Over the term of the contract, the buyer pays the seller a periodic stream of payments, provided that no event of default has occurred. Such periodic payments are accrued daily as an unrealized appreciation or depreciation until the payments are made, at which time they are realized.
The Fund entered into Interest rate swap contracts primarily to manage interest rate risk. An interest rate swap is an agreement between the Fund and a counterparty to exchange cash flows based on the difference between two interest rates, applied to a notional amount. These agreements may be privately negotiated in the over-the-counter market (OTC interest rate swaps) or may be executed on a registered exchange (centrally cleared interest rate swaps). For centrally cleared interest rate swaps, required initial margins are pledged by the Fund, and the daily change in fair value is accounted for as a variation margin payable or receivable in the Statements of Assets and Liabilities. Over the term of the contract, contractually required payments to be paid and to be received are accrued daily and recorded as unrealized appreciation or depreciation until the payments are made, at which time they are realized.
Collateral requirements differ by type of derivative. Collateral terms are contract specific for OTC derivatives. For OTC derivatives traded under an ISDA master agreement, posting of collateral is required by either the Fund or the applicable
counterparty if the total net exposure of all OTC derivatives with the applicable counterparty exceeds the minimum transfer amount, which typically ranges from $100,000 to $250,000, and can vary depending on the counterparty and the type of agreement. Generally, collateral is determined at the close of Fund business each day and any additional collateral required due to changes in derivative values may be delivered by the Fund or the counterparty the next business day, or within a few business days. Collateral pledged and/or received by the Fund, if any, is held in segregated accounts with the Fund’s custodian/counterparty broker and can be in the form of cash and/or securities. Unrestricted cash may be invested according to the Funds’ investment objectives. To the extent that the amounts due to the Fund from its counterparties are not subject to collateralization or are not fully collateralized, the Funds bears the risk of loss from counterparty non-performance.
The Fund entered into exchange traded futures contracts primarily to manage and/or gain exposure to equity price risk. A futures contract is an agreement between the Fund and a counterparty to buy or sell an asset at a specified price on a future date. Required initial margins are pledged by the Fund, and the daily change in fair value is accounted for as a variation margin payable or receivable in the Statements of Assets and Liabilities.
The Fund entered into purchased or written option contracts primarily to manage and/or gain exposure to equity price risk. An option is a contract entitling the holder to purchase or sell a specific amount of shares or units of an asset or notional amount of a swap (swaption), at a specified price. When an option is purchased or written, an amount equal to the premium paid or received is recorded as an asset or liability, respectively. Upon exercise of an option, the acquisition cost or sales proceeds of the underlying investment is adjusted by any premium received or paid. Upon expiration of an option, any premium received or paid is recorded as a realized gain or loss. Upon closing an option other than through expiration or exercise, the difference between the premium received or paid and the cost to close the position is recorded as a realized gain or loss.
A purchased swaption contract grants the Fund, in return for payment of the purchase price, the right, but not the obligation, to enter into a new swap agreement or to shorten, extend, cancel or otherwise modify an existing swap agreement, at some designated future time on specified terms. When the Fund purchases a swaption, the premium paid to the writer is recorded as an investment and subsequently marked-to-market to reflect the current value of
| franklintempleton.com | Semi-Annual Report | 25 |
FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. Organization and Significant Accounting Policies (continued)
c. Derivative Financial Instruments (continued)
the swaption. A written swaption gives the Fund the obligation, if exercised by the purchaser, to enter into a swap contract according to the terms of the underlying agreement. When the Fund writes a swaption, the premium received by the Fund is recorded as a liability and subsequently marked-to-market to reflect the current value of the swaption. When a swaption is exercised, the cost of the swap is adjusted by the amount of the premium paid or received. When a swaption expires or an unexercised swaption is closed, a gain or loss is recognized in the amount of the premium paid or received, plus the cost to close. The Fund’s risk for purchased swaptions is limited to the premium paid. The writer of a swaption bears the risk of unfavorable changes in the preset terms of the underlying swap contract. Purchased swaptions traded over-the-counter involve risk that the issuer or counterparty will fail to perform its contractual obligations.
See Note 7 regarding other derivative information.
d. Securities Sold Short
The Fund is engaged in selling securities short, which obligates the Fund to replace a borrowed security with the same security at current fair value. The Fund incurs a loss if the price of the security increases between the date of the short sale and the date on which the Fund replaces the borrowed security. The Fund realizes a gain if the price of the security declines between those dates. Gains are limited to the price at which the Fund sold the security short, while losses are potentially unlimited in size.
The Fund is required to establish a margin account with the broker lending the security sold short. While the short sale is outstanding, the broker retains the proceeds of the short sale to the extent necessary to meet margin requirements until the short position is closed out. A deposit must also be maintained with the Fund’s custodian/counterparty broker consisting of cash and/or securities having a value equal to a specified percentage of the value of the securities sold short. The Fund may receive income from the investment of cash collateral. The Fund is obligated to pay fees for borrowing the securities sold short and is required to pay the counterparty any dividends and/or interest due on securities sold short. Such dividends and/or interest and any security borrowing fees are recorded as an expense to the Fund.
e. Income and Deferred Taxes
It is Fund’s policy to qualify as a regulated investment company under the Internal Revenue Code. The Fund intends to distribute to shareholders substantially all of its taxable income and net realized gains to relieve it from federal income and excise taxes. As a result, no provision for U.S. federal income taxes is required.
The Fund may be subject to foreign taxation related to income received, capital gains on the sale of securities and certain foreign currency transactions in the foreign jurisdictions in which the Fund invests. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Fund invests. When a capital gain tax is determined to apply, Fund records an estimated deferred tax liability in an amount that would be payable if the securities were disposed of on the valuation date.
The Fund may recognize an income tax liability related to its uncertain tax positions under U.S. GAAP when the uncertain tax position has a less than 50% probability that it will be sustained upon examination by the tax authorities based on its technical merits. As of September 30, 2024, Fund has determined that no tax liability is required in its financial statements related to uncertain tax positions for any open tax years (or expected to be taken in future tax years). Open tax years are those that remain subject to examination and are based on the statute of limitations in each jurisdiction in which the Fund invests.
Security transactions are accounted for on trade date. Realized gains and losses on security transactions are determined on a specific identification basis. Interest Income (including interest income from payment-in-kind securities, if any) and estimated expenses are accrued daily. Amortization of premium and accretion of discount on debt securities are included in interest income. Dividend income and capital gain distributions are recorded on the ex-dividend date except for certain dividends from securities where the dividend rate is not available. In such cases, the dividend is recorded as soon as the information is received by the Fund. Distributions to shareholders are recorded on the ex-dividend date. Distributable earnings are determined according to income tax regulations (tax basis) and may differ from earnings recorded in accordance with U.S. GAAP. These differences may be permanent or temporary. Permanent differences are reclassified among capital accounts to reflect their tax character. These reclassifications have no impact on net assets or the results of operations.
| 26 | Semi-Annual Report | franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. Organization and Significant Accounting Policies (continued)
e. Income and Deferred Taxes (continued)
Temporary differences are not reclassified, as they may reverse in subsequent periods.
Common expenses incurred by the Trust are allocated among the Funds based on the ratio of net assets of Fund to the combined net assets of the Trust. Certain Fund specific expenses are allocated directly to the Fund that incurred the expense. These expenses are paid by the Fund or by the investment manager, as applicable, according to the terms of the unified management fee agreement.
f. Accounting Estimates
The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
g. Guarantees and Indemnifications
Under the Trust’s organizational documents, its officers and trustees are indemnified by the Trust against certain liabilities arising out of the performance of their duties to the Trust. Additionally, in the normal course of business, the Trust, on behalf of the Funds, enters into contracts with service providers that contain general indemnification clauses. The Trust’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Trust that have not yet occurred. Currently, the Trust expects the risk of loss to be remote.
2. Shares of Beneficial Interest
Shares of the Fund are issued and redeemed at their respective NAV only in aggregations of a specified number of shares or multiples thereof (Creation Units). Only certain large institutional investors (Authorized Participants) may engage in creation or redemption transactions directly with the Fund. Once created, shares of the Fund generally trade in the secondary market in amounts less than one Creation Unit. The market price of the Fund’s shares will be based on the price in the secondary market which may be at, above or below the most recent NAV. Creation Units may be issued and redeemed in exchange for a designated portfolio of securities and/or cash (which may include cash in lieu of certain securities).
Authorized participants pay a standard transaction fee to the shareholder servicing agent when purchasing or redeeming Creation Units of the Fund regardless of the number of Creation Units that are being created or redeemed on the same day by the Authorized Participant. The standard transaction fee is imposed to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units and is not charged to or paid by the Fund. Such transactions fees are treated as increases in capital and are disclosed in the Fund’s Statements of Changes in Net Assets.
In addition, for cash Creation Unit transactions, a variable fee for creation transactions and redemption transactions may be charged to the Authorized Participant to cover certain brokerage, tax, foreign exchange, execution, market impact and other costs and expenses related to the execution of trades. Variable fees, if any, are included in capital share transactions in the Statements of Changes in Net Assets.
At September 30, 2024, there were an unlimited number of shares authorized (without par value). Transactions in the Fund’s shares were as follows:
| | Six Months Ended
September 30, 2024 | Period Ended
March 31, 2024a |
| | Shares | Amount | Shares | Amount |
| Shares sold | — | $ — | 1,700,001 | $ 42,502,642 |
| Shares redeemed | — | — | (100,001) | (2,616,868) |
| Net increase (decrease) | — | $ — | 1,600,000 | $ 39,885,774 |
| aFor the period September 19, 2023 (commencement of operations) to March 31, 2024. |
| franklintempleton.com | Semi-Annual Report | 27 |
FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
3. Transactions with Affiliates
Franklin Resources, Inc. is the holding company for various subsidiaries that together are referred to as Franklin Templeton. Certain officers and trustees of the Funds are also officers and/or directors of the following subsidiaries:
| Subsidiary | Affiliation |
| Franklin Advisers, Inc. (Advisers) | Investment manager |
| Franklin Templeton Services, LLC (FT Services) | Administrative manager |
| Franklin Distributors, LLC (Distributors) | Principal underwriter |
a. Management fees
The Funds pay a unified management fee to Advisers whereby Advisers has agreed to reimburse the Funds’ acquired fund fees and expenses (if any) and pay all of the ordinary operating expenses of the Funds, including custody, transfer agency, and Trustee fees and expenses, among others, but excluding payments under the Funds’ Rule 12b-1 plan (if any), brokerage expenses (including any costs incidental to transactions in portfolio securities or instruments), taxes, interest (including borrowing costs and dividend expenses on securities sold short and overdraft charges), litigation expenses (including litigation to which the Trust or a Fund may be a party and indemnification of the Trustees and officers with respect thereto), and other non-routine or extraordinary expenses. The fee is calculated daily and paid monthly according to the terms of the management agreement.
The Fund pays gross effective investment management fees 0.35% per year on the average daily net assets of the Fund.
Under a subadvisory agreement, Western Asset Management Company, LLC provides subadvisory services to the Fund. The subadvisory fee is paid by Advisers based on the Fund’s average daily net assets, and is not an additional expense of the Fund.
b. Administrative Fees
Under an agreement with Advisers, FT Services provides administrative services to the Fund. The fee is paid by Advisers based on the Fund’s average daily net assets, and is not an additional expense of the Fund.
c. Other Affiliated Transactions
At September 30, 2024, the shares of Western Asset Bond ETF is owned by the following investment entity:
| Fund | Shares | Percentage of
Outstanding Sharesa |
| Western Asset Bond ETF | | |
| Franklin Resources Inc. | 700,000 | 43.8% |
| aInvestment activities of significant shareholders could have a material impact on the Fund. |
4. Upcoming Reorganization
On September 5, 2024, the Board of Trustees of Western Asset Total Return ETF (WBND) approved the reorganization of WBND into the Western Asset Bond ETF (WABF). It is anticipated that in the fourth quarter of 2024, shareholders of WBND will receive a combined prospectus/proxy statement seeking shareholder approval of the reorganization and detailing the reasons for, and other matters relating to, the reorganization. The reorganization is subject to the approval of WBND’s shareholders, and the shareholder meeting is scheduled for December 13, 2024. If approved by WBND’s shareholders, it is anticipated that the reorganization will be completed in the first quarter of 2025.
5. Income Taxes
For tax purposes, capital losses may be carried over to offset future capital gains. At March 31, 2024, there were no capital loss carryforwards.
| 28 | Semi-Annual Report | franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
5. Income Taxes (continued)
At September 30, 2024, the cost of investments and net unrealized appreciation (depreciation) for income tax purposes were as follows:
| | Period Ended
September 30, 2024 | | | |
| Cost of investments | $ 45,130,458 | | | |
| Unrealized appreciation | $ 1,765,288 | | | |
| Unrealized depreciation | (143,533) | | | |
| Net unrealized appreciation (depreciation) | $ 1,621,755 | | | |
Differences between income and/or capital gains as determined on a book basis and a tax basis are primarily due to differing treatments of derivative financial instruments.
6. Investment Transactions
Purchases and sales of investments (excluding short term securities and in-kind transactions, if any) for the period ended September 30, 2024, $14,379,663 and $12,678,208, respectively.
There were no In-kind transactions associated with creation and redemptions for the period ended September 30, 2024.
7. Other Derivative Information
At September 30, 2024, the Fund’s investments in derivative contracts are reflected in the Statement of Assets and Liabilities as follows:
| | Asset Derivatives | | Liability Derivatives |
| | Statement of Assets and
Liabilities Location | Fair Value | | Statement of Assets and
Liabilities Location | Fair Value |
| Interest rate contracts | Variation margin on futures contracts | $ 75,384a | | Variation margin on futures contracts | $ 1,004a |
| Interest rate contracts | Investments in securities at value | 2,109b | | Investments in securities at value | — |
| Interest rate contracts | Written options | — | | Written options | 1,523 |
| Credit contracts | Swap contracts | 244 | | Swap contracts | — |
| Interest rate contracts | Swap contracts | — | | Swap contracts | 179,637 |
| Totals | | $77,737 | | | $182,164 |
| aThis amount reflects the cumulative appreciation (depreciation) of future contracts as reported in the Schedule of Investments. Only the variation margin receivable/payable at period end is separately reported within the Statements of Assets and Liabilities. Prior variation margin movements were recorded to cash upon receipt or payment. |
| bRepresents purchased options, at value. |
For the period ended September 30, 2024, the effect of derivative contracts in the Fund’s Statement of Operations was as follows:
Derivative Contracts
Not Accounted for as
Hedging Instruments | Statement of
Operations Locations | Net Realized
Gain (Loss)
for the Period | Statement of
Operations Locations | Net Change in
Unrealized
Appreciation
(Depreciation)
for the Period |
| | Net realized gain (loss) from: | | Net change in unrealized
appreciation (depreciation) on: | |
| Interest rate contracts | Futures contracts | $ 101,402 | Futures contracts | $ 20,884 |
| Interest rate contracts | Investments | (25,003)a | Investments | 1,943a |
| Interest rate contracts | Written options | 26,691 | Written options | (273) |
| Credit contracts | Swap contracts | 10,514 | Swap Contracts | (226) |
| franklintempleton.com | Semi-Annual Report | 29 |
FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
7. Other Derivative Information (continued)
Derivative Contracts
Not Accounted for as
Hedging Instruments | Statement of
Operations Locations | Net Realized
Gain (Loss)
for the Period | Statement of
Operations Locations | Net Change in
Unrealized
Appreciation
(Depreciation)
for the Period |
| | Net realized gain (loss) from: | | Net change in unrealized
appreciation (depreciation) on: | |
| Interest rate contracts | Swap contracts | $ 15,253 | Swap contracts | $ (145,829) |
| Totals | | $128,857 | | $(123,501) |
| aRepresents realized gain (loss) and change in unrealized appreciation (depreciation), respectively, for purchased options during the period. |
For the period ended September 30, 2024, the average month end notional amount of futures contracts, options and swap contracts were as follows:
| | Western Asset Bond ETF | | | |
| Credit default contracts | $ 1,762,571 | | | |
| Interest rate contracts | $ 3,940,000 | | | |
| Futures contracts | $ 20,863,334 | | | |
| Purchased Options | $ 124,929 | | | |
| Written Options | $ 365,714 | | | |
8. Fair Value Measurements
The Fund follow a fair value hierarchy that distinguishes between market data obtained from independent sources (observable inputs) and the Fund’s own market assumptions (unobservable inputs). These inputs are used in determining the value of the Fund’s financial instruments and are summarized in the following fair value hierarchy:
| • | Level 1 – quoted prices in active markets for identical financial instruments |
| • | Level 2 – other significant observable inputs (including quoted prices for similar financial instruments, interest rates, prepayment speed, credit risk, etc.) |
| • | Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of financial instruments) |
The input levels are not necessarily an indication of the risk or liquidity associated with financial instruments at that level.
A summary of inputs used as of September 30, 2024, in valuing the Fund’s assets and liabilities carried at fair value, is as follows:
| | Level 1 | Level 2 | Level 3 | Total |
| Western Asset Bond ETF | | | | |
| Assets: | | | | |
| Investments in Securities:a | | | | |
| Corporate Bonds & Notes | $ — | $ 17,186,072 | $ — | $ 17,186,072 |
| Senior Floating Rate Interests | — | 59,941 | — | 59,941 |
| Mortgage-Backed Securities | — | 103,326 | — | 103,326 |
| Foreign Government and Agency Securities | — | 396,868 | — | 396,868 |
| Asset-Backed Securities | — | 3,500,864 | — | 3,500,864 |
| Residential Mortgage-Backed Securities | — | 485,673 | — | 485,673 |
| Commercial Mortgage-Backed Securities | — | 3,131,603 | — | 3,131,603 |
| Put Options Purchased | 2,109 | — | — | 2,109 |
| U.S. Government & Agency Securities | — | 20,306,679 | — | 20,306,679 |
| Short-Term Investments | 1,579,078 | — | — | 1,579,078 |
| Total Investments in Securities | $1,581,187 | $45,171,026 | $— | $46,752,213 |
| 30 | Semi-Annual Report | franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
8. Fair Value Measurements (continued)
| | Level 1 | Level 2 | Level 3 | Total |
| Western Asset Bond ETF (continued) | | | | |
| Other Financial Instruments: | | | | |
| Futures Contracts | $ 75,384 | $ — | $ — | $ 75,384 |
| Credit Default Swap Contracts | — | 244 | — | 244 |
| Total Other Financial Instruments | $75,384 | $244 | $— | $75,628 |
| Liabilities: | | | | |
| Other Financial Instruments: | | | | |
| Securities Sold Short | $ — | $ 100,979 | $ — | $ 100,979 |
| Futures Contracts | 1,004 | — | — | 1,004 |
| Interest Rate Swaps - CCP | — | 179,637 | — | 179,637 |
| Put Option Written | 898 | — | — | 898 |
| Call Option Written | 625 | — | — | 625 |
| Total Other Financial Instruments | $2,527 | $280,616 | $— | $283,143 |
| aFor detailed categories, see the accompanying Schedule of Investments. |
9. Subsequent Events
The Fund has evaluated subsequent events through the issuance of the financial statements and determined that no events have occurred that require disclosure.
Abbreviations
| CLO | Collateralized Loan Obligation |
| FRN | Floating Rate Note |
| SOFR | Secured Overnight Financing Rate |
| franklintempleton.com | Semi-Annual Report | 31 |
| Changes In and Disagreements With Accountants | For the period covered in the report |
Not Applicable.
| Results of Meeting of Shareholders | For the period covered in the report |
Not Applicable.
| Remuneration Paid to Directors, Officers, and Others | For the period covered in the report |
Not applicable. Remuneration paid to directors, officers and others is included as part of the all-inclusive management fee and not paid directly by the fund.
| 32 | Semi-Annual Report | franklintempleton.com |
| Board Approval of Management and Subadvisory Agreements | For the period covered in the report |
At a meeting held on March 3, 2023 (Meeting), the Board of Trustees (Board) of Franklin Templeton ETF Trust (Trust), including a majority of the trustees who are not “interested persons” as defined in the Investment Company Act of 1940 (Independent Trustees), reviewed and approved (i) an investment management agreement between Franklin Advisers, Inc. (FAV) and the Trust; (ii) an investment sub-advisory agreement between FAV and Western Asset Management Company, LLC (Western Asset); and (iii) sub-subadvisory agreements between Western Asset and Western Asset Management Company Limited in London (Western Asset London), Western Asset Management Company Pte. Ltd. in Singapore (Western Asset Singapore), and Western Asset Management Company Ltd in Japan (Western Asset Japan) on behalf of the Fund, for an initial two-year period (each a Management Agreement). The Independent Trustees received advice from and met separately with Independent Trustee counsel in considering whether to approve each Management Agreement. FAV, Western Asset, Western Asset London, Western Asset Singapore and Western Asset Japan are each referred to herein as a Manager.
In considering the approval of each Management Agreement, the Board reviewed and considered information provided by each Manager at the Meeting and throughout the year at meetings of the Board and its committees. The Board reviewed and considered all of the factors it deemed relevant in approving each Management Agreement, including, but not limited to: (i) the nature, extent and quality of the services to be provided by each Manager; (ii) the costs of the services to be provided by each Manager; and (iii) the extent to which economies of scale may be realized as the Fund grows. The Board also reviewed and considered the form of the Management Agreement and the terms of the Management Agreement which were explained at the Meeting. The Board noted that FAV would provide general investment management and administrative services and that the Fund would operate under a unified management fee structure whereby FAV would reimburse the Fund for all acquired fund fees and expenses and pay all of the ordinary operating expenses of the Fund, except for certain excluded items (Unified Fee). The Board also noted that the Unified Fee was consistent with the current management fee structure for the existing Franklin Templeton (FT) exchange-traded funds.
In approving each Management Agreement, the Board, including a majority of the Independent Trustees, determined that the terms of the proposed Management Agreements are fair and reasonable and that such Management Agreements are in the best interests of the Fund and its shareholders. While attention was given to all information furnished, the following discusses some primary factors relevant to the Board’s determination.
Nature, Extent and Quality of Services
The Board reviewed and considered information regarding the nature, extent and quality of investment management services to be provided by the applicable Managers and their affiliates to the Fund and its shareholders. This information included, among other things, the Fund’s proposed investment strategies and the ability of the applicable Managers to implement such investment strategies; the qualifications, background and experience of the investment personnel that will be responsible for the day-to-day portfolio management of the Fund; each Manager’s experience as the Manager of other funds and accounts, including other series of the Trust and other funds in the FT family of funds; each Manager’s strength and reputation within the industry; the personnel, operations, financial condition, and investment management capabilities, methodologies and resources of each Manager; and each Manager’s compliance capabilities. Following consideration of such information, the Board was satisfied with the nature, extent and quality of services to be provided by each Manager and its affiliates to the Fund and its shareholders.
Fund Performance
The Board noted that, as the Fund had not yet commenced investment operations, there was no investment performance for the Fund. The Board also considered the proposed performance benchmark for the Fund and how such benchmark would be utilized to measure performance of each Manager.
Comparative Fees and Expenses
The Board reviewed and considered information regarding the Fund’s estimated total expense ratio, noting that the Fund will pay a Unified Fee. The Board considered the estimated total expense ratio and, separately, the proposed contractual Unified Fee, without the effect of fee waivers, if any (Management Rate) of the Fund in comparison to the median expense ratio and median Management Rate, respectively, of other exchange-traded funds deemed comparable to and with a similar expense structure as the Fund (Expense Group) as selected by Broadridge Financial Solutions, Inc. (Broadridge), an independent provider of investment company data. Broadridge fee and expense data is based upon information taken from each fund’s most recent annual report (excluding the Fund), which reflects historical asset levels that may be quite different from those
| franklintempleton.com | Semi-Annual Report | 33 |
| Board Approval of Management and Subadvisory Agreements | For the period covered in the report (continued) |
currently existing, particularly in a period of market volatility. While recognizing such inherent limitation and the fact that expense ratios and Management Rates generally increase as assets decline and decrease as assets grow, the Board believed the independent analysis conducted by Broadridge to be an appropriate measure of comparative fees and expenses. The Broadridge Management Rate includes administrative charges. The Board received a description of the methodology used by Broadridge to select the exchange-traded funds included in the Expense Group.
The Expense Group for the Fund was comprised of actively managed exchange-traded funds, which included the Fund, seven other core plus bond funds and one core bond fund. The Board noted that the proposed Management Rate for the Fund was equal to the median of its Expense Group and the estimated total expense ratio for the Fund was below the median of its Expense Group. The Board further noted that pursuant to the proposed Unified Fee arrangement FAV would reimburse the Fund for all of its acquired fund fees and expenses (if any) and pay all of the ordinary operating expenses of the Fund, except for (i) the Fund’s Unified Fee, (ii) payments under the Fund’s Rule 12b-1 plan (if any), (iii) brokerage expenses (including any costs incidental to transactions in portfolio securities or instruments), (iv) taxes, (v) interest (including borrowing costs and dividend expenses on securities sold short and overdraft charges), (vi) litigation expenses (including litigation to which the Trust or the Fund may be a party and indemnification of the Trustees and officers with respect thereto), and (vii) other non-routine or extraordinary expenses. The Board also noted that Western Asset would be paid by FAV out of the Unified Fee FAV receives from the Fund and that the allocation of the fee between FAV and Western Asset reflected the services provided by Western Asset to the Fund. The Board also noted that Western Asset London, Western Asset Singapore and Western Asset Japan would each be paid by Western Asset from the fee FAV pays to Western Asset and this fee reflects the services provided by the sub-subadvisers to the Fund. After consideration of the above, the Board concluded that the Management Rate to be charged to the Fund, the sub-advisory fee to be paid to Western Asset and the sub-subadvisory fees to be paid to Western Asset London, Western Asset Singapore and Western Asset Japan are reasonable.
Profitability
The Board noted that the Managers (and their affiliates) could not report any financial results from its relationship with the Fund because the Fund has not yet commenced investment operations, and thus, the Board could not evaluate each Manager’s (or its affiliates’) profitability with respect to the Fund.
Economies of Scale
The Board reviewed and considered the extent to which each Manager may realize economies of scale, if any, as the Fund grows larger and whether the Fund’s management fee structure reflects any economies of scale for the benefit of shareholders. With respect to possible economies of scale in the future, the Board noted that it is not anticipated that the Fund will generate significant, if any, profit for the Managers and/or their affiliates for some time.
Conclusion
Based on its review, consideration and evaluation of all factors it believed relevant, including the above-described factors and conclusions, the Board unanimously approved each Management Agreement for the Fund for an initial two-year period.
| 34 | Semi-Annual Report | franklintempleton.com |
© 2024 Franklin Templeton Investments. All rights reserved.
Martin Currie Sustainable International Equity ETF
Financial Statements and Other Important Information
| Semi-Annual | September 30, 2024 |
| Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Financial Highlights
Martin Currie Sustainable International Equity ETF
| | Six Months Ended
September 30,
2024 (unaudited) | Year Ended
March 31,
2024 | Period Ended
March 31,
2023† | Year Ended May 31, |
| | 2022 | 2021 | 2020 | 2019 |
| Per share operating performance | | | | | | | |
| (for a share outstanding throughout the period) |
| Net asset value, beginning of period | $15.69 | $14.41 | $13.88 | $18.93 | $12.72 | $11.58 | $11.55 |
| Income from investment operationsa: | | | | | | | |
| Net investment incomeb | 0.07 | 0.09 | —c | 0.10 | 0.04 | 0.02 | 0.10 |
| Net realized and unrealized gains (losses) | (0.36) | 1.27 | 0.59 | (4.10) | 6.19 | 1.17 | 0.21 |
| Total from investment operations | (0.29) | 1.36 | 0.59 | (4.00) | 6.23 | 1.19 | 0.31 |
| Less distributions from: | | | | | | | |
| Net investment income | — | (0.08) | (0.05) | — | (—)c | (0.05) | (0.16) |
| Net realized gains | — | — | (0.01) | (1.05) | (0.02) | — | (0.12) |
| Total distributions | — | (0.08) | (0.06) | (1.05) | (0.02) | (0.05) | (0.28) |
| Net asset value, end of period | $15.39 | $15.69 | $14.41 | $13.88 | $18.93 | $12.72 | $11.58 |
| Total returnd | (1.85)% | 9.44% | 4.30%e | (22.38)% | 49.06% | 10.26% | 3.06% |
| Ratios to average net assetsf | | | | | | | |
| Expenses before waiver and payments by affiliates | 0.59% | 0.61%g | 1.07%h | 1.50% | 1.89% | 4.61%i | 5.22%i |
| Expenses net of waiver and payments by affiliates | 0.59% | 0.61%g | 0.73%h | 0.75% | 0.75% | 0.75%i | 0.75%i |
| Net investment income | 0.99% | 0.60% | 0.03% | 0.57% | 0.22% | 0.14% | 0.88% |
| Supplemental data | | | | | | | |
| Net assets, end of period (000’s) | $33,357 | $33,987 | $19,700 | $40,848 | $20,966 | $4,783 | $4,800 |
| Portfolio turnover ratej | 9.62%k | 20.90%k | 26.05%k | 25.00% | 49.00% | 37.00% | 63.00% |
| †For the period June 1, 2022 through March 31, 2023. |
| aThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of Creation Unit Fund shares in relation to income earned and/or fluctuating fair value of the investments of the Fund. |
| bBased on average daily shares outstanding. |
| cAmount rounds to less than $0.005 per share. |
| dTotal return is not annualized for periods less than one year. Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. |
| eThe Fund adopted the performance of the predecessor mutual fund as the result of the Reorganization. Prior to the Reorganization, the Fund had not yet commenced operations. The returns shown for periods ending on or prior to October 28, 2022, are those of the predecessor mutual fund. The predecessor mutual fund’s performance is represented by the performance of the predecessor mutual fund’s Class IS Shares. Had the predecessor mutual fund been structured as an ETF, its performance may have differed. |
| fRatios are annualized for periods less than one year, except for non-recurring expenses, if any. |
| gExpense ratios include European Union tax reclaims contingency fees that were incurred by the Fund during the year. Without these fees, the gross and net expense ratios would have been 0.59% and 0.59%, respectively, for the year ended March 31, 2024. |
| hExpense ratios are including non-recurring European Union tax reclaim contingent fees that were incurred by the Fund during the period. Without these fees, the gross and net expense ratios would have been 1.06% and 0.73%, respectively, for the period ended March 31, 2023. |
| iReflects recapture of expenses waived/reimbursed from prior fiscal years for period prior to the Reorganization. |
| jPortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash ("Cash creations"). |
| kPortfolio turnover rate excluding cash creations was as follows: | 9.62% | 20.90% | 26.05% | — | — | — | — |
| franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Semi-Annual Report | 1 |
Franklin Templeton ETF Trust
Schedule of Investments, September 30, 2024 (unaudited)
Martin Currie Sustainable International Equity ETF
| | | Country | Shares | | Value |
| | Common Stocks 99.1% | | | | |
| | Automobiles 7.6% | | | | |
| | Ferrari NV | Italy | 5,421 | | $ 2,539,230 |
| | Beverages 2.0% | | | | |
| | Pernod Ricard SA | France | 4,313 | | 652,714 |
| | Biotechnology 3.9% | | | | |
| | CSL Ltd. | Australia | 6,540 | | 1,298,889 |
| | Building Products 8.0% | | | | |
| | Assa Abloy AB, Class B | Sweden | 31,994 | | 1,078,187 |
| | Kingspan Group PLC | Ireland | 17,026 | | 1,602,808 |
| | | | | | 2,680,995 |
| | Capital Markets 2.6% | | | | |
| | Partners Group Holding AG | Switzerland | 575 | | 865,687 |
| | Chemicals 7.8% | | | | |
| | Croda International PLC | United Kingdom | 15,826 | | 895,193 |
| | Linde PLC | United States | 3,560 | | 1,697,621 |
| | | | | | 2,592,814 |
| | Electrical Equipment 2.0% | | | | |
| | Schneider Electric SE | France | 2,600 | | 685,389 |
| | Electronic Equipment, Instruments & Components 4.6% | | | | |
| | Hexagon AB, Class B | Sweden | 143,729 | | 1,548,370 |
| | Financial Services 3.8% | | | | |
| a,b | Adyen NV | Netherlands | 811 | | 1,269,517 |
| | Health Care Equipment & Supplies 9.8% | | | | |
| | Coloplast AS, Class B | Denmark | 10,006 | | 1,310,764 |
| | ResMed, Inc., CDI | United States | 80,182 | | 1,945,251 |
| | | | | | 3,256,015 |
| | Life Sciences Tools & Services 9.9% | | | | |
| b | Mettler-Toledo International, Inc. | United States | 1,169 | | 1,753,149 |
| b | Oxford Nanopore Technologies PLC | United Kingdom | 135,668 | | 289,527 |
| | Sartorius Stedim Biotech | France | 6,008 | | 1,258,907 |
| | | | | | 3,301,583 |
| | Machinery 6.1% | | | | |
| | Atlas Copco AB, Class A | Sweden | 104,399 | | 2,023,280 |
| | Personal Care Products 4.0% | | | | |
| | L’Oreal SA | France | 2,988 | | 1,340,740 |
| | Pharmaceuticals 3.8% | | | | |
| | Novo Nordisk AS, Class B | Denmark | 10,850 | | 1,278,057 |
| | Semiconductors & Semiconductor Equipment 10.5% | | | | |
| | ASML Holding NV | Netherlands | 3,158 | | 2,627,857 |
| | BE Semiconductor Industries NV | Netherlands | 6,894 | | 873,660 |
| | | | | | 3,501,517 |
| | Software 6.4% | | | | |
| | Dassault Systemes SE | France | 33,780 | | 1,343,257 |
| | Nemetschek SE | Germany | 7,558 | | 784,465 |
| | | | | | 2,127,722 |
| 2 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Martin Currie Sustainable International Equity ETF (continued)
| | | Country | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | Textiles, Apparel & Luxury Goods 6.3% | | | | |
| | Kering SA | France | 1,954 | | $ 560,129 |
| | Moncler SpA | Italy | 24,348 | | 1,549,438 |
| | | | | | 2,109,567 |
| | Total Common Stocks (Cost $31,178,766) | | | | 33,072,086 |
| | Total Investments (Cost $31,178,766) 99.1% | | | | 33,072,086 |
| | Other Assets, less Liabilities 0.9% | | | | 285,181 |
| | Net Assets 100.0% | | | | $ 33,357,267 |
| aSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At September 30, 2024, the value of was $1,269,517, representing 3.8% of net assets. |
| bNon-income producing. |
See Abbreviations on page 12.
| franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Semi-Annual Report | 3 |
FRANKLIN TEMPLETON ETF TRUST
FINANCIAL STATEMENTS
Statement of Assets and Liabilities
September 30, 2024 (unaudited)
Martin Currie Sustainable International Equity ETF
| Assets: | |
| Investments in securities: | |
| Cost – Unaffiliated issuers | $ 31,178,766 |
| Value – Unaffiliated issuers | $ 33,072,086 |
| Cash | 194,670 |
| Foreign currency, at value (cost $7) | 7 |
| Receivables: | |
| Dividends and interest | 73,929 |
| European Union tax reclaims receivable (Note 1e) | 43,050 |
| Total assets | 33,383,742 |
| Liabilities: | |
| Payables: | |
| European Union tax reclaims contingency fees payable (Note 1e) | 10,763 |
| Management fees | 15,712 |
| Total liabilities | 26,475 |
| Net assets, at value | $ 33,357,267 |
| Net assets consist of: | |
| Paid-in capital | $ 37,847,989 |
| Total distributable earnings (loss) | (4,490,722) |
| Net assets, at value | $ 33,357,267 |
| Shares outstanding | 2,166,807 |
| Net asset value per share | $15.39 |
| 4 | Semi-Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
FINANCIAL STATEMENTS
Statement of Operations
for the period ended September 30, 2024 (unaudited)
Martin Currie Sustainable International Equity ETF
| Investment income: | |
| Dividends: (net of foreign taxes)a | |
| Unaffiliated issuers | $ 254,121 |
| Interest: | |
| Unaffiliated issuers | 1,766 |
| Total investment income | 255,887 |
| Expenses: | |
| Management fees (Note 3a) | 95,789 |
| Total expenses | 95,789 |
| Net investment income | 160,098 |
| Realized and unrealized gains (losses): | |
| Net realized gain (loss) from: | |
| Investments: | |
| Unaffiliated issuers | (35,418) |
| Foreign currency transactions | (146) |
| Net realized gain (loss) | (35,564) |
| Net change in unrealized appreciation (depreciation) on: | |
| Investments: | |
| Unaffiliated issuers | (758,370) |
| Translation of other assets and liabilities denominated in foreign currencies | 4,498 |
| Net change in unrealized appreciation (depreciation) | (753,872) |
| Net realized and unrealized gain (loss) | (789,436) |
| Net increase (decrease) in net assets resulting from operations | $(629,338) |
| aForeign taxes withheld on dividends | $34,465 |
| franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Semi-Annual Report | 5 |
FRANKLIN TEMPLETON ETF TRUST
FINANCIAL STATEMENTS
Statements of Changes in Net Assets
Martin Currie Sustainable International Equity ETF
| | Six Months Ended
September 30, 2024
(unaudited) | Year Ended
March 31, 2024
|
| Increase (decrease) in net assets: | | |
| Operations: | | |
| Net investment income | $ 160,098 | $ 191,190 |
| Net realized loss | (35,564) | (896,880) |
| Net change in unrealized appreciation (depreciation) | (753,872) | 3,942,791 |
| Net increase (decrease) in net assets resulting from operations | (629,338) | 3,237,101 |
| Distributions to shareholders (Note 1f) | — | (190,339) |
| Capital share transactions: (Note 2) | — | 11,240,030 |
| Net increase (decrease) in net assets | (629,338) | 14,286,792 |
| Net assets: | | |
| Beginning of period | 33,986,605 | 19,699,813 |
| End of period | $ 33,357,267 | $ 33,986,605 |
| 6 | Semi-Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
Notes to Financial Statements (unaudited)
1. Organization and Significant Accounting Policies
Franklin Templeton ETF Trust (Trust) is registered under the Investment Company Act of 1940 (1940 Act) as an open-end management investment company consisting of forty-nine separate funds, one of which is included in this report (Fund). The Fund follows the accounting and reporting guidance in Financial Accounting Standards Board (FASB) Accounting Standard Codification Topic 946, Financial Services - Investment Companies (ASC 946), and applies the specialized accounting and reporting guidance in U.S. Generally Accepted Accounting Principles (U.S. GAAP), including, but not limited to, ASC 946. The Fund is an exchange traded fund (ETF) and seek to provide the investment results that closely correspond, before fees and expenses, to the performance of Fund corresponding underlying index.
The following summarizes the Fund’s significant accounting policies.
a. Financial Instrument Valuation
The Fund’s investments in financial instruments are carried at fair value daily. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. The Fund calculates the net asset value (NAV) per share each business day as of 4 p.m. Eastern time or the regularly scheduled close of the New York Stock Exchange (NYSE), whichever is earlier. Under compliance policies and procedures approved by the Fund’s Board of Trustees (the Board), the Board has designated the Fund’s investment manager as the valuation designee and has responsibility for oversight of valuation. The investment manager is assisted by the Fund’s administrator in performing this responsibility, including leading the cross-functional Valuation Committee (VC).
The Fund may utilize independent pricing services, quotations from securities and financial instrument dealers, and other market sources to determine fair value.
Equity securities, exchange trade funds and derivative financial instruments listed on an exchange or on the NASDAQ National Market System are valued at the last quoted sale price or the official closing price of the day, respectively. Foreign equity securities are valued as of the close of trading on the foreign stock exchange on which the security is primarily traded or as of 4 p.m. Eastern time. The value is then converted into its U.S. dollar equivalent at the foreign exchange rate in effect at 4 p.m. London time on the day that the value of the security is determined. Over-the
counter (OTC) securities are valued within the range of the most recent quoted bid and ask prices. Securities that trade in multiple markets or on multiple exchanges are valued according to the broadest and most representative market. Certain equity securities are valued based upon fundamental characteristics or relationships to similar securities.
Investments in open-end mutual funds are valued at the closing NAV.
The Fund has procedures to determine the fair value of financial instruments for which market prices are not reliable or readily available. Under these procedures, the Fund primarily employs a market-based approach which may use related or comparable assets or liabilities, recent transactions, market multiples, and other relevant information for the investment to determine the fair value of the investment. An income-based valuation approach may also be used in which the anticipated future cash flows of the investment are discounted to calculate fair value. Discounts may also be applied due to the nature or duration of any restrictions on the disposition of the investments. Due to the inherent uncertainty of valuations of such investments, the fair values may differ significantly from the values that would have been used had an active market existed.
Trading in securities on foreign securities stock exchanges and OTC markets may be completed before 4 p.m. Eastern time. In addition, trading in certain foreign markets may not take place on Fund business day. Occasionally, events occur between the time at which trading in a foreign security is completed and 4 p.m. Eastern time that might call into question the reliability of the value of a portfolio security held by the Fund. As a result, differences may arise between the value of the Fund’s portfolio securities as determined at the foreign market close and the latest indications of value at 4 p.m. Eastern time. In order to minimize the potential for these differences, an independent pricing service may be used to adjust the Fund’s portfolio securities to the latest indications of fair value at 4 p.m. Eastern time on September 30, 2024. At September 30, 2024, certain securities may have been fair valued using these procedures, in which case the securities were categorized as Level 2 inputs within the fair value hierarchy (referred to as “market level fair value”).
When the last day of the reporting period is a non-business day, certain foreign markets may be open on those days that the Fund’s NAV is not calculated, which could result in differences between the value of the Fund’s portfolio
| franklintempleton.com | Semi-Annual Report | 7 |
FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. Organization and Significant Accounting Policies (continued)
a. Financial Instrument Valuation (continued)
securities on the last business day and the last calendar day of the reporting period. Any significant security valuation changes due to an open foreign market are adjusted and reflected by the Fund for financial reporting purposes.
b. Foreign Currency Translation
Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts based upon prevailing exchange rates on the date of valuation. Purchases and sales of investment securities and income and expense items denominated in foreign currencies are translated into U.S. dollar amounts based upon prevailing exchange rates on the respective dates of such transactions.
The Fund does not isolate that portion of the results of operations resulting from fluctuations in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss on investments.
Net realized foreign exchange gains or losses arise from sales of foreign currencies, including gains and losses on forward foreign currency contracts, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the values of assets and liabilities, other than investments in securities, on the date of valuation, resulting from changes in exchange rates.
Foreign security and currency transactions may involve certain considerations and risks not typically associated with those of U.S. dollar denominated transactions as a result of, among other factors, the possibility of lower levels of governmental supervision and regulation of foreign securities markets and the possibility of political or economic instability.
The Fund’s investments in foreign securities may involve risks not present in domestic investments. Since securities may be denominated in foreign currencies, may require settlement in foreign currencies or may pay interest or dividends in foreign currencies, changes in the relationship
of these foreign currencies to the U.S. dollar can significantly affect the value of the investments and earnings of the Fund. Foreign investments may also subject the Fund to foreign government exchange restrictions, expropriation, taxation or other political, social or economic developments, all of which affect the market and/or credit risk of the investments.
c. Derivative Financial Instruments
During the six months ended September 30, 2024, the Fund did not invest in derivative instruments.
d. Securities Lending
The Fund participates in an agency based securities lending program to earn additional income. The Fund receives cash collateral against the loaned securities in an amount equal to at least 102% of the fair value of the loaned securities. Collateral is maintained over the life of the loan in an amount not less than 100% of the fair value of loaned securities, as determined at the close of Fund business each day; any additional collateral required due to changes in security values is delivered to the Fund on the next business day. The collateral is deposited into a joint cash account with other fund and is used to invest in a money market fund managed by Franklin Advisers, Inc., an affiliate of the Fund. These securities received as collateral are held in segregated accounts with the Fund’s custodian. The Fund cannot repledge or resell these securities received as collateral. As such, the non-cash collateral is excluded from the Statement of Assets and Liabilities. The Fund may receive income from the investment of cash collateral, in addition to lending fees paid by the borrower. Income from securities loaned, net of fees paid to the securities lending agent and/or third-party vendor, is reported separately in the Statement of Operations. The Fund bears the market risk with respect to the collateral investment, securities loaned, and the risk that the agent may default on its obligations to the Fund. If the borrower defaults on its obligation to return the securities loaned, the Fund has the right to repurchase the securities in the open market using the collateral received. The securities lending agent has agreed to indemnify the Fund in the event of default by a third party borrower.
At September 30, 2024, the Fund had no securities on loan.
e. Income and Deferred Taxes
It is Fund’s policy to qualify as a regulated investment company under the Internal Revenue Code. The Fund intends to distribute to shareholders substantially all of its taxable income and net realized gains to relieve it from
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FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. Organization and Significant Accounting Policies (continued)
e. Income and Deferred Taxes (continued)
federal income and excise taxes. As a result, no provision for U.S. federal income taxes is required.
The Fund may be subject to foreign taxation related to income received, capital gains on the sale of securities and certain foreign currency transactions in the foreign jurisdictions in which the Fund invests. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Fund invests. When a capital gain tax is determined to apply, Fund records an estimated deferred tax liability in an amount that would be payable if the securities were disposed of on the valuation date.
The Fund may recognize an income tax liability related to its uncertain tax positions under U.S. GAAP when the uncertain tax position has a less than 50% probability that it will be sustained upon examination by the tax authorities based on its technical merits. As of September 30, 2024, Fund has determined that no tax liability is required in its financial statements related to uncertain tax positions for any open tax years (or expected to be taken in future tax years). Open tax years are those that remain subject to examination and are based on the statute of limitations in each jurisdiction in which the Fund invests.
As a result of several court cases, in certain countries across the European Union the Fund filed additional tax reclaims for previously withheld taxes on dividends earned in those countries (EU reclaims). Income recognized, if any, for EU reclaims is reflected as European Union tax reclaims in the Statement of Operations and any related receivable is reflected as European Union tax reclaims receivable in the Statement of Assets and Liabilities. Any fees associated with these filings are reflected as European Union tax reclaims contingency fees in the Statement of Operations. When uncertainty exists as to the ultimate resolution of these proceedings, the likelihood of receipt of these EU reclaims, and the potential timing of payment, no amounts are reflected in the financial statements. For U.S. income tax purposes, EU reclaims received by the Fund, if any, reduce the amount of foreign taxes Fund shareholders can use as tax deductions or credits on their income tax returns
f. Security Transactions, Investment Income, Expenses and Distributions
Security transactions are accounted for on trade date. Realized gains and losses on security transactions are determined on a specific identification basis. Interest Income (including interest income from payment-in-kind securities, if any) and estimated expenses are accrued daily. Amortization of premium and accretion of discount on debt securities are included in interest income. Dividend income and capital gain distributions are recorded on the ex-dividend date except for certain dividends from securities where the dividend rate is not available. In such cases, the dividend is recorded as soon as the information is received by the Fund. Distributions to shareholders are recorded on the ex-dividend date. Distributable earnings are determined according to income tax regulations (tax basis) and may differ from earnings recorded in accordance with U.S. GAAP. These differences may be permanent or temporary. Permanent differences are reclassified among capital accounts to reflect their tax character. These reclassifications have no impact on net assets or the results of operations. Temporary differences are not reclassified, as they may reverse in subsequent periods.
Common expenses incurred by the Trust are allocated among the Fund based on the ratio of net assets of Fund to the combined net assets of the Trust. Certain Fund specific expenses are allocated directly to the Fund that incurred the expense. These expenses are paid by the Fund or by the investment manager, as applicable, according to the terms of the unified management fee agreement.
g. Accounting Estimates
The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
h. Guarantees and Indemnifications
Under the Trust’s organizational documents, its officers and trustees are indemnified by the Trust against certain liabilities arising out of the performance of their duties to the Trust. Additionally, in the normal course of business, the Trust, on behalf of the Fund, enters into contracts with service providers that contain general indemnification clauses. The Trust’s maximum exposure under these arrangements is unknown as this would involve future claims
| franklintempleton.com | Semi-Annual Report | 9 |
FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. Organization and Significant Accounting Policies (continued)
h. Guarantees and Indemnifications (continued)
that may be made against the Trust that have not yet occurred. Currently, the Trust expects the risk of loss to be remote.
2. Shares of Beneficial Interest
Shares of the Fund is issued and redeemed at their respective NAV only in aggregations of a specific number of shares or multiples thereof (Creation Units). Only certain large institutional investors (Authorized Participants) may engage in creation or redemption transactions directly with the Fund. Once created, shares of the Fund generally trade in the secondary market in amounts less than one Creation Unit. The market price of the Fund’s shares will be based on the price in the secondary market which may be at, above or below the most recent NAV. Creation Units may be issued and redeemed in exchange for a designated portfolio of securities and/or cash (which may include cash in lieu of certain securities).
Authorized Participants pay a standard transaction fee to the shareholder servicing agent when purchasing or redeeming Creation Units of the Fund regardless of the number of Creation Units that are being created or redeemed on the same day by the Authorized Participant. The standard transaction fee is imposed to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units and is not charged to or paid by the Fund. Such transactions fees are treated as increases in capital and are disclosed in the Fund’s Statements of Changes in Net Assets.
In addition, for cash Creation Unit transactions, a variable fee for creation transactions and redemption transactions may be charged to the Authorized Participant to cover certain brokerage, tax, foreign exchange, execution, market impact and other costs and expenses related to the execution of trades. Variable fees, if any, are included in capital share transactions in the Statements of Changes in Net Assets.
At September 30, 2024, there were an unlimited number of shares authorized (without par value). Transactions in the Fund’s shares were as follows:
| | Six Months Ended
September 30, 2024 | Year Ended
March 31, 2024 |
| | Shares | Amount | Shares | Amount |
| Shares sold | — | $ — | 900,000 | $ 12,800,723 |
| Shares redeemed | — | — | (100,000) | (1,560,693) |
| Net increase (decrease) | — | $ — | 800,000 | $ 11,240,030 |
3. Transactions with Affiliates
Franklin Resources, Inc. is the holding company for various subsidiaries that together are referred to as Franklin Templeton. Certain officers and trustees of the Funds are also officers and/or directors of the following subsidiaries:
| Subsidiary | Affiliation |
| Franklin Advisers, Inc. (Advisers) | Investment manager |
| Franklin Templeton Institutional, LLC (FT Institutional) | Investment manager |
| Franklin Templeton Services, LLC (FT Services) | Administrative manager |
| Franklin Distributors, LLC (Distributors) | Principal underwriter |
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FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
3. Transactions with Affiliates (continued)
a. Management fees
The Fund pay a unified management fee to Advisers whereby Advisers has agreed to reimburse the Fund’s acquired fund fees and expenses (if any) and pay all of the ordinary operating expenses of the Fund, including custody, transfer agency, and Trustee fees and expenses, among others, but excluding payments under the Fund’s Rule 12b-1 plan (if any), brokerage expenses (including any costs incidental to transactions in portfolio securities or instruments), taxes, interest (including borrowing costs and dividend expenses on securities sold short and overdraft charges), litigation expenses (including litigation to which the Trust or a Fund may be a party and indemnification of the Trustees and officers with respect thereto), and other non-routine or extraordinary expenses. Advisers pays Martin Currie for its services. The fee is calculated daily and paid monthly according to the terms of the management agreement. The Fund pays gross effective investment management fees 0.59% per year on the average daily net assets of the Fund.
Under a subadvisory agreement, Martin Currie Inc. provides subadvisory services to the Fund. The subadvisory fee is paid by Advisers based on the Fund’s average daily net assets, and is not an additional expense of the Fund.
b. Administrative Fees
Under an agreement with Advisers, FT Services provides administrative services to the Fund. The fee is paid by Advisers based on the Fund’s average daily net assets, and is not an additional expense of the Fund.
c. Other Affiliated Transactions
At September 30, 2024, the shares of Martin Currie Sustainable International Equity ETF was owned by the following entity:
| Fund | Shares | Percentage of
Outstanding Sharesa |
| Martin Currie Sustainable International Equity ETF | | |
| Franklin Resources Inc. | 625,000 | 28.8% |
| aInvestment activities of significant shareholders could have a material impact on the Fund. |
4. Income Taxes
For tax purposes, capital losses of the predecessor mutual fund may be carried over to offset future capital gains, if any. At March 31, 2024, the capital loss carryforwards were as follows:
| | Year Ended
March 31, 2024 | | | |
| Capital loss carryforwards not subject to expiration: | | | | |
| Long term | $ 2,441,944 | | | |
| Short term | 3,857,422 | | | |
| Total capital loss carryforwards | $ 6,299,366 | | | |
At September 30, 2024, the cost of investments and net unrealized appreciation (depreciation) for income tax purposes were as follows:
| Cost of investments | $ 31,409,189 | | | |
| Unrealized appreciation | $ 4,452,776 | | | |
| Unrealized depreciation | (2,789,879) | | | |
| Net unrealized appreciation (depreciation) | $ 1,662,897 | | | |
Differences between income and/or capital gains as determined on a book basis and a tax basis are primarily due to differing treatments of in-kind transactions and wash sales.
| franklintempleton.com | Semi-Annual Report | 11 |
FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
5. Investment Transactions
Purchases and sales of investments (excluding short term securities and in-kind transactions, if any) for the period ended September 30, 2024, $3,238,616 and $3,113,895, respectively.
There were no In-kind transactions associated with creation and redemptions for the period ended September 30, 2024.
6. Fair Value Measurements
The Fund follows a fair value hierarchy that distinguishes between market data obtained from independent sources (observable inputs) and the Fund’s own market assumptions (unobservable inputs). These inputs are used in determining the value of the Fund’s financial instruments and are summarized in the following fair value hierarchy:
| • | Level 1 – quoted prices in active markets for identical financial instruments |
| • | Level 2 – other significant observable inputs (including quoted prices for similar financial instruments, interest rates, prepayment speed, credit risk, etc.) |
| • | Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of financial instruments) |
The input levels are not necessarily an indication of the risk or liquidity associated with financial instruments at that level.
A summary of inputs used as of September 30, 2024, in valuing the Fund’s assets and liabilities carried at fair value, is as follows:
| | Level 1 | Level 2 | Level 3 | Total |
| Martin Currie Sustainable International Equity ETF | | | | |
| Assets: | | | | |
| Investments in Securities:a | | | | |
| Equity Investmentsb | $ 33,072,086 | $ — | $ — | $ 33,072,086 |
| aFor detailed categories, see the accompanying Schedule of Investments. |
| bIncludes common stocks. |
7. Subsequent Events
The Fund has evaluated subsequent events through the issuance of these Financial Statements and determined that no events have occurred that require disclosure.
Abbreviations
| CDI | Clearing House Electronic Subregister System Depositary Interest |
| SPA | Standby Purchase Agreement |
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| Changes In and Disagreements With Accountants | For the period covered in the report |
Not Applicable.
| Results of Meeting of Shareholders | For the period covered in the report |
Not Applicable.
| Remuneration Paid to Directors, Officers, and Others | For the period covered in the report |
Not applicable. Remuneration paid to directors, officers and others is included as part of the all-inclusive management fee and not paid directly by the fund.
| franklintempleton.com | Semi-Annual Report | 13 |
| Board Approval of Management and Subadvisory Agreements | For the period covered in the report |
FRANKLIN TEMPLETON ETF TRUST
Martin Currie Sustainable International Equity ETF
(Fund)
At an in-person meeting held on May 29, 2024 (Meeting), the Board of Trustees (Board) of Franklin Templeton ETF Trust (Trust), including a majority of the trustees who are not “interested persons” as defined in the Investment Company Act of 1940 (Independent Trustees), reviewed and approved the continuance of (i) the investment management agreement between Franklin Advisers, Inc. (FAV) and the Trust, on behalf of the Fund; and (ii) the investment sub-advisory agreement between FAV and Martin Currie Inc. (Martin Currie), on behalf of the Fund (each a Management Agreement) for an additional one-year period. The Independent Trustees received advice from and met separately with Independent Trustee counsel in considering whether to approve the continuation of each Management Agreement. FAV and Martin Currie are each referred to herein as a Manager.
In considering the continuation of each Management Agreement, the Board reviewed and considered information provided by the Manager at the Meeting and throughout the year at meetings of the Board and its committees. The Board also reviewed and considered information provided in response to a detailed set of requests for information submitted to the Manager by Independent Trustee counsel on behalf of the Independent Trustees in connection with the annual contract renewal process. In addition, prior to the Meeting, the Independent Trustees held a virtual contract renewal meeting at which the Independent Trustees first conferred amongst themselves and Independent Trustee counsel about contract renewal matters, and then met with management to request additional information that the Independent Trustees reviewed and considered prior to and at the Meeting. The Board reviewed and considered all of the factors it deemed relevant in approving the continuance of each Management Agreement, including, but not limited to: (i) the nature, extent and quality of the services provided by the Manager; (ii) the investment performance of the Fund; (iii) the costs of the services provided and profits realized by the Manager and its affiliates from the relationship with the Fund; (iv) the extent to which economies of scale are realized as the Fund grows; and (v) whether fee levels reflect these economies of scale for the benefit of Fund investors.
In approving the continuance of each Management Agreement, the Board, including a majority of the Independent Trustees, determined, through the exercise of its business judgment, that the terms of each Management Agreement are fair and reasonable and that the continuance of each Management Agreement is in the best interests of the Fund and its shareholders. While attention was given to all information furnished, the following discusses some primary factors relevant to the Board’s determination
Nature, Extent and Quality of Services
The Board reviewed and considered information regarding the nature, extent and quality of investment management services provided by the Manager and its affiliates to the Fund and its shareholders. This information included, among other things, the qualifications, background and experience of the senior management and investment personnel of the Manager, as well as information on succession planning where appropriate; the structure of investment personnel compensation; oversight of third-party service providers; investment performance reports and related financial information for the Fund; reports on expenses and shareholder services; legal and compliance matters; risk controls; pricing and other services provided by the Manager and its affiliates; and management fees charged by the Manager and its affiliates to US funds and other accounts, including management’s explanation of differences among accounts where relevant. The Board acknowledged the ongoing integration of the Putnam family of funds into the Franklin Templeton (FT) family of funds and management’s continued development of strategies to address areas of heightened concern in the registered fund industry, including various regulatory initiatives and continuing geopolitical concerns.
The Board also reviewed and considered the benefits provided to Fund shareholders of investing in a fund that is part of the FT family of funds. The Board noted the financial position of Franklin Resources, Inc. (FRI), the Manager’s parent, and its commitment to the registered fund business as evidenced by its continued introduction of new funds, reassessment of the fund offerings in response to FT acquisitions and the market environment, as well as project initiatives and capital investments relating to the services provided to the Fund by the FT organization. The Board specifically noted FT’s commitment to technological innovation and advancement, including its initiative to create a new enterprise-wide artificial intelligence platform.
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| Board Approval of Management and Subadvisory Agreements | For the period covered in the report (continued) |
Following consideration of such information, the Board was satisfied with the nature, extent and quality of services provided by the Manager and its affiliates to the Fund and its shareholders.
Fund Performance
The Board reviewed and considered the performance results of the Fund over various time periods ended December 31, 2023. The Board considered the performance returns for the Fund in comparison to the performance returns of registered funds deemed comparable to the Fund included in a universe (Performance Universe) selected by Broadridge Financial Solutions, Inc. (Broadridge), an independent provider of investment company data. The Board received a description of the methodology used by Broadridge to select the registered funds included in a Performance Universe. The Board also reviewed and considered Fund performance reports provided and discussions that occurred with portfolio managers at Board meetings throughout the year. The Board referenced earlier discussions with management on matters related to, among other things, the expansion and rationalization of the overall product line, including investments in novel asset classes, as well as the growth in assets from internal and external clients. In addition, the Board acknowledged information provided regarding management’s strategy to grow market share through the use of innovative data and technology and investments in marketing and distribution. The Board noted management’s high level of client engagement and the strength of its internal audit and compliance program. A summary of the Fund’s performance results is below.
The Performance Universe for the Fund included the Fund and all retail and institutional large-cap growth funds and exchange-traded funds. The Fund adopted the performance of the Martin Currie International Sustainable Equity Fund (the “predecessor mutual fund”) as the result of a reorganization of the predecessor mutual fund into the Fund that was effective after the market close on October 28, 2022 (the “Reorganization”). Prior to the Reorganization, the Fund had not yet commenced operations. The returns for periods ending on or prior to October 28, 2022, are those of the predecessor mutual fund which commenced operations on November 30, 2015 and thus had been in operation for less than 10 years. The Board reviewed and considered the performance results of the Fund over various time periods ended December 31, 2023, noting the Reorganization. The Board noted that the Fund’s annualized total return for the one-, three- and five-year periods was below the median of its Performance Universe. The Board discussed this performance with management and management explained that underperformance relative to the Fund’s Performance Universe over the past two years was due, in part, to the rising bond yields which were unfavorable for quality growth companies, adversely impacting the performance of the Fund’s portfolio, which exhibits higher growth characteristics than the portfolios of peers in the Performance Universe. Management also explained that the Fund’s healthcare securities selection, in comparison to its peers, and not owning securities in other sectors such as energy and pharmaceuticals contributed to the Fund’s relative underperformance. The Board noted management’s representations regarding the actions that management was taking/had taken in an effort to improve the overall performance of the Fund, including changes to the Fund’s exposure to certain holdings and enhancements to the securities selection process. The Board concluded that the Fund’s Management Agreement should be continued for an additional one-year period, while management’s efforts continue to be closely monitored.
Comparative Fees and Expenses
The Board reviewed and considered information regarding the Fund’s actual total expense ratio, noting that the Fund pays a Unified Fee (as defined below). The Board considered the actual total expense ratio and, separately, the contractual management fee rate, without the effect of fee waivers, if any (Management Rate), of the Fund in comparison to the median expense ratio and median Management Rate, respectively, of other exchange-traded funds deemed comparable to and with a similar expense structure to the Fund selected by Broadridge (Expense Group). Broadridge fee and expense data is based upon information taken from each fund’s most recent annual or semi-annual report, which reflects historical asset levels that may be quite different from those currently existing, particularly in a period of market volatility. While recognizing such inherent limitation and the fact that expense ratios and Management Rates generally increase as assets decline and decrease as assets grow, the Board believed the independent analysis conducted by Broadridge to be an appropriate measure of comparative fees and expenses. The Broadridge Management Rate includes administrative charges. The Board received a description of the methodology used by Broadridge to select the exchange-traded funds included in an Expense Group.
The Expense Group for the Fund was comprised of actively managed exchange-traded funds, which included the Fund, one other international large-cap growth fund, two international large-cap core funds, two international multi-cap core funds, and
| franklintempleton.com | Semi-Annual Report | 15 |
| Board Approval of Management and Subadvisory Agreements | For the period covered in the report (continued) |
one international multi-cap growth fund. The Board noted that the Management Rate and actual total expense ratio for the Fund were equal to the medians of its Expense Group. The Board further noted that the Fund has a unified management fee (Unified Fee). The Board also noted that pursuant to the Unified Fee arrangement FAV reimburses the Fund for all of its acquired fund fees and expenses (if any) and pays all of the ordinary operating expenses of the Fund, except for (i) the Fund’s Unified Fee, (ii) future Rule 12b-1 fees (if any), (iii) brokerage expenses, (iv) taxes, (v) interest (including borrowing costs and dividend expenses on securities sold short and overdraft charges), (vi) litigation expenses (including litigation to which the Trust or the Fund may be a party and indemnification of the Trustees and officers with respect thereto), and (vii) other non-routine or extraordinary expenses. The Board also noted that Martin Currie is paid by FAV out of the management fee FAV receives from the Fund and that the allocation of the fee between FAV and Martin Currie reflected the services provided by each to the Fund. The Board concluded that the Management Rate charged to the Fund and the sub-advisory fee paid to Martin Currie are reasonable.
Profitability
The Board reviewed and considered information regarding the profits realized by the Manager and its affiliates in connection with the operation of each Fund. In this respect, the Board considered the Fund profitability analysis provided by the Manager that addresses the overall profitability of FT’s US fund business, as well as its profits in providing investment management and other services to each of the individual Funds during the 12-month period ended September 30, 2023 (the most recent fiscal year-end for FRI). The Board noted that although management continually makes refinements to its methodologies used in calculating profitability in response to organizational and product-related changes, the overall methodology has remained consistent with that used in the Fund’s profitability report presentations from prior years. The Board also noted that an independent registered public accounting firm has been engaged by the Manager to periodically review and assess the allocation methodologies to be used solely by the Fund’s Board with respect to the profitability analysis.
The Board noted management’s belief that costs incurred in establishing the infrastructure necessary for the type of fund operations conducted by the Manager and its affiliates may not be fully reflected in the expenses allocated to the Fund in determining its profitability, as well as the fact that the level of profits, to a certain extent, reflected operational cost savings and efficiencies initiated by management. As part of this evaluation, the Board considered management’s outsourcing of certain operations, which effort has required considerable up-front expenditures by the Manager but, over the long run, is expected to result in greater efficiencies. The Board also noted management’s expenditures in improving shareholder services provided to the Fund, as well as the need to implement systems and meet additional regulatory and compliance requirements resulting from recent US Securities and Exchange Commission and other regulatory requirements.
The Board also considered the extent to which the Manager and its affiliates might derive ancillary benefits from fund operations, including potential benefits resulting from personnel and systems enhancements necessitated by fund growth, as well as increased leverage with service providers and counterparties. Based upon its consideration of all these factors, the Board concluded that the level of profits realized by the Manager and its affiliates from providing services to the Fund was not excessive in view of the nature, extent and quality of services provided to the Fund.
Economies of Scale
The Board reviewed and considered the extent to which the Manager may realize economies of scale, if any, as the Fund grows larger and whether the Fund’s management fee structure reflects any economies of scale for the benefit of shareholders. The Board considered that the Fund would likely experience benefits from the Unified Fee at the Fund’s projected asset levels because of FAV’s contractual requirement to bear most of the Fund’s ordinary operating expenses. The Board noted that, under the Unified Fee, it is not anticipated that the Fund will generate significant, if any, profit for FAV and/or its affiliates for some time. The Board considered the Manager’s view that any analyses of potential economies of scale in managing a particular fund are inherently limited in light of the joint and common costs and investments the Manager incurs across the FT family of funds as a whole. The Board also noted that as of December 31, 2023, the Fund did not have an asset size that would likely enable it to achieve economies of scale. The Board also noted management’s representation that for the fiscal year ended September 30, 2023, the Fund did not experience a profit. The Board recognized that there would not likely be any economies of scale for the Fund until its assets grow.
| 16 | Semi-Annual Report | franklintempleton.com |
| Board Approval of Management and Subadvisory Agreements | For the period covered in the report (continued) |
Conclusion
Based on its review, consideration and evaluation of all factors it believed relevant, including the above-described factors and conclusions, the Board unanimously approved the continuation of each Management Agreement for an additional one-year period.
| franklintempleton.com | Semi-Annual Report | 17 |
© 2024 Franklin Templeton Investments. All rights reserved.
Franklin U.S. Equity
Index ETF
Financial Statements and Other Important Information
| Semi-Annual | September 30, 2024 |
| Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Financial Highlights
Franklin U.S. Equity Index ETF
| | Six Months Ended
September 30, 2024
(unaudited) | Year Ended March 31, |
| | 2024 | 2023 | 2022 | 2021 | 2020 |
| Per share operating performance | | | | | | |
| (for a share outstanding throughout the period) | | | | | | |
| Net asset value, beginning of period | $45.88 | $35.70 | $40.04 | $37.65 | $26.77 | $30.90 |
| Income from investment operationsa: | | | | | | |
| Net investment incomeb | 0.31 | 0.60 | 0.59 | 1.05 | 0.81 | 0.90 |
| Net realized and unrealized gains (losses) | 4.39 | 10.15 | (4.10) | 2.34 | 10.97 | (4.00) |
| Total from investment operations | 4.70 | 10.75 | (3.51) | 3.39 | 11.78 | (3.10) |
| Less distributions from net investment income | (0.33) | (0.57) | (0.83) | (1.00) | (0.90) | (1.03) |
| Net asset value, end of period | $50.25 | $45.88 | $35.70 | $40.04 | $37.65 | $26.77 |
| Total returnc | 10.26% | 30.34% | (8.63)% | 9.00% | 44.55% | (10.53)% |
| Ratios to average net assetsd | | | | | | |
| Expenses before waiver and payments by affiliates | 0.03% | 0.03% | 0.03% | 0.35% | 0.35% | 0.35% |
| Expenses net of waiver and payments by affiliates | 0.03% | 0.03% | 0.03% | 0.35% | 0.34% | 0.34% |
| Net investment income | 1.32% | 1.51% | 1.73% | 2.63% | 2.45% | 2.86% |
| Supplemental data | | | | | | |
| Net assets, end of period (000’s) | $1,123,175 | $1,101,166 | $681,913 | $16,014 | $15,059 | $16,059 |
| Portfolio turnover ratee | 1.68%f | 3.77%f | 6.33%f | 24.13%f | 31.70%f | 27.85%f |
| aThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of Creation Unit Fund shares in relation to income earned and/or fluctuating fair value of the investments of the Fund. |
| bBased on average daily shares outstanding. |
| cTotal return is not annualized for periods less than one year. Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. |
| dRatios are annualized for periods less than one year. |
| ePortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash ("Cash creations"). |
| fPortfolio turnover rate excluding cash creations was as follows: | 1.68% | 3.77% | 6.33% | 24.13% | 31.70% | 27.85% |
| franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Semi-Annual Report | 1 |
Franklin Templeton ETF Trust
Schedule of Investments, September 30, 2024 (unaudited)
Franklin U.S. Equity Index ETF
| | | Industry | Shares | | Value |
| | Common Stocks 99.9% | | | | |
| | Brazil 0.2% | | | | |
| a | MercadoLibre, Inc. | Broadline Retail | 1,117 | | $ 2,292,039 |
| | Ireland 0.1% | | | | |
| | TE Connectivity PLC | Electronic Equipment, Instruments & Components | 6,705 | | 1,012,388 |
| | Netherlands 0.1% | | | | |
| | NXP Semiconductors NV | Semiconductors & Semiconductor Equipment | 5,811 | | 1,394,698 |
| a,b,c | Russia 0.0% | | | | |
| | Alrosa PJSC | Metals & Mining | 3,584 | | — |
| | Gazprom PJSC | Oil, Gas & Consumable Fuels | 15,428 | | — |
| | GMK Norilskiy Nickel PAO | Metals & Mining | 10,000 | | — |
| | Inter RAO UES PJSC | Electric Utilities | 53,546 | | — |
| | LUKOIL PJSC | Oil, Gas & Consumable Fuels | 516 | | — |
| | Novolipetsk Steel PJSC | Metals & Mining | 2,272 | | — |
| | PhosAgro PJSC | Chemicals | 73 | | — |
| | PhosAgro PJSC | Chemicals | 2 | | — |
| | Polyus PJSC | Metals & Mining | 50 | | — |
| | Rosneft Oil Co. PJSC | Oil, Gas & Consumable Fuels | 1,154 | | — |
| | Severstal PAO | Metals & Mining | 392 | | — |
| | Surgutneftegas PJSC | Oil, Gas & Consumable Fuels | 8,286 | | — |
| | Tatneft PJSC | Oil, Gas & Consumable Fuels | 1,974 | | — |
| | United Co. RUSAL International PJSC | Metals & Mining | 1,714 | | — |
| | | | | | — |
| | United Kingdom 0.0%† | | | | |
| | CNH Industrial NV | Machinery | 21,456 | | 238,162 |
| | United States 99.5% | | | | |
| | 3M Co. | Industrial Conglomerates | 12,516 | | 1,710,937 |
| | Abbott Laboratories | Health Care Equipment & Supplies | 38,889 | | 4,433,735 |
| | AbbVie, Inc. | Biotechnology | 39,783 | | 7,856,347 |
| | Accenture PLC, Class A | IT Services | 13,857 | | 4,898,172 |
| a | Adobe, Inc. | Software | 9,834 | | 5,091,849 |
| a | Advanced Micro Devices, Inc. | Semiconductors & Semiconductor Equipment | 36,207 | | 5,940,845 |
| | AES Corp. | Independent Power Producers & Energy Traders | 16,539 | | 331,772 |
| | Aflac, Inc. | Insurance | 11,622 | | 1,299,340 |
| | Agilent Technologies, Inc. | Life Sciences Tools & Services | 6,705 | | 995,558 |
| | Air Products & Chemicals, Inc. | Chemicals | 4,917 | | 1,463,988 |
| a | Airbnb, Inc., Class A | Hotels, Restaurants & Leisure | 9,387 | | 1,190,365 |
| a | Akamai Technologies, Inc. | IT Services | 3,576 | | 360,997 |
| | Albemarle Corp. | Chemicals | 2,682 | | 254,012 |
| | Albertsons Cos., Inc., Class A | Consumer Staples Distribution & Retail | 9,387 | | 173,472 |
| | Alexandria Real Estate Equities, Inc. | Health Care REITs | 3,576 | | 424,650 |
| a | Align Technology, Inc. | Health Care Equipment & Supplies | 1,788 | | 454,724 |
| | Allegion PLC | Building Products | 1,788 | | 260,583 |
| | Alliant Energy Corp. | Electric Utilities | 5,811 | | 352,670 |
| | Allstate Corp. | Insurance | 5,811 | | 1,102,056 |
| a | Alnylam Pharmaceuticals, Inc. | Biotechnology | 2,682 | | 737,630 |
| | Alphabet, Inc., Class A | Interactive Media & Services | 131,865 | | 21,869,810 |
| | Alphabet, Inc., Class C | Interactive Media & Services | 117,114 | | 19,580,290 |
| | Altria Group, Inc. | Tobacco | 38,889 | | 1,984,895 |
| a | Amazon.com, Inc. | Broadline Retail | 213,219 | | 39,729,096 |
| | Amcor PLC | Containers & Packaging | 32,631 | | 369,709 |
| a | Amentum Holdings, Inc. | Professional Services | 2,670 | | 86,108 |
| | Ameren Corp. | Multi-Utilities | 5,811 | | 508,230 |
| | American Electric Power Co., Inc. | Electric Utilities | 12,069 | | 1,238,279 |
| | American Express Co. | Consumer Finance | 12,516 | | 3,394,339 |
| | American Financial Group, Inc. | Insurance | 1,788 | | 240,665 |
| 2 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin U.S. Equity Index ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | United States (continued) | | | | |
| | American International Group, Inc. | Insurance | 15,198 | | $ 1,112,950 |
| | American Tower Corp. | Specialized REITs | 10,281 | | 2,390,949 |
| | American Water Works Co., Inc. | Water Utilities | 4,470 | | 653,693 |
| | Ameriprise Financial, Inc. | Capital Markets | 2,235 | | 1,050,025 |
| | AMETEK, Inc. | Electrical Equipment | 5,364 | | 921,052 |
| | Amgen, Inc. | Biotechnology | 12,069 | | 3,888,752 |
| | Amphenol Corp., Class A | Electronic Equipment, Instruments & Components | 26,820 | | 1,747,591 |
| | Analog Devices, Inc. | Semiconductors & Semiconductor Equipment | 11,175 | | 2,572,150 |
| | Annaly Capital Management, Inc. | Mortgage Real Estate Investment Trusts (REITs) | 11,175 | | 224,282 |
| a | ANSYS, Inc. | Software | 1,788 | | 569,710 |
| | Aon PLC, Class A | Insurance | 4,917 | | 1,701,233 |
| | APA Corp. | Oil, Gas & Consumable Fuels | 8,493 | | 207,739 |
| | Apollo Global Management, Inc. | Financial Services | 8,940 | | 1,116,695 |
| | Apple, Inc. | Technology Hardware, Storage & Peripherals | 322,734 | | 75,197,022 |
| | Applied Materials, Inc. | Semiconductors & Semiconductor Equipment | 18,774 | | 3,793,287 |
| a | Aptiv PLC | Automobile Components | 5,364 | | 386,262 |
| a | Arch Capital Group Ltd. | Insurance | 8,493 | | 950,197 |
| | Archer-Daniels-Midland Co. | Food Products | 11,175 | | 667,594 |
| | ARES Management Corp., Class A | Capital Markets | 4,023 | | 626,944 |
| a | Arista Networks, Inc. | Communications Equipment | 5,811 | | 2,230,378 |
| | Arthur J Gallagher & Co. | Insurance | 4,917 | | 1,383,496 |
| a | Aspen Technology, Inc. | Software | 447 | | 106,753 |
| | AT&T, Inc. | Diversified Telecommunication Services | 160,920 | | 3,540,240 |
| a | Atlassian Corp., Class A | Software | 3,576 | | 567,905 |
| | Atmos Energy Corp. | Gas Utilities | 3,576 | | 496,027 |
| a | Autodesk, Inc. | Software | 4,917 | | 1,354,535 |
| | Automatic Data Processing, Inc. | Professional Services | 9,387 | | 2,597,665 |
| a | AutoZone, Inc. | Specialty Retail | 386 | | 1,215,915 |
| | AvalonBay Communities, Inc. | Residential REITs | 3,129 | | 704,807 |
| | Avangrid, Inc. | Electric Utilities | 1,788 | | 63,993 |
| a | Avantor, Inc. | Life Sciences Tools & Services | 14,751 | | 381,608 |
| | Avery Dennison Corp. | Containers & Packaging | 1,788 | | 394,719 |
| a | Axon Enterprise, Inc. | Aerospace & Defense | 1,788 | | 714,485 |
| | Baker Hughes Co. | Energy Equipment & Services | 22,797 | | 824,112 |
| | Ball Corp. | Containers & Packaging | 7,152 | | 485,692 |
| | Bank of America Corp. | Banks | 152,874 | | 6,066,040 |
| | Bank of New York Mellon Corp. | Capital Markets | 16,986 | | 1,220,614 |
| | Baxter International, Inc. | Health Care Equipment & Supplies | 11,622 | | 441,287 |
| | Becton Dickinson & Co. | Health Care Equipment & Supplies | 6,705 | | 1,616,575 |
| | Bentley Systems, Inc., Class B | Software | 3,129 | | 158,984 |
| a | Berkshire Hathaway, Inc., Class B | Financial Services | 40,677 | | 18,721,996 |
| | Best Buy Co., Inc. | Specialty Retail | 4,023 | | 415,576 |
| a | Biogen, Inc. | Biotechnology | 3,129 | | 606,525 |
| a | BioMarin Pharmaceutical, Inc. | Biotechnology | 4,470 | | 314,196 |
| | Bio-Techne Corp. | Life Sciences Tools & Services | 3,576 | | 285,830 |
| | BlackRock, Inc. | Capital Markets | 3,354 | | 3,184,657 |
| | Blackstone, Inc. | Capital Markets | 16,092 | | 2,464,168 |
| a | Block, Inc. | Financial Services | 12,516 | | 840,199 |
| a | Boeing Co. | Aerospace & Defense | 13,857 | | 2,106,818 |
| | Booking Holdings, Inc. | Hotels, Restaurants & Leisure | 758 | | 3,192,787 |
| | Booz Allen Hamilton Holding Corp. | Professional Services | 2,682 | | 436,522 |
| a | Boston Scientific Corp. | Health Care Equipment & Supplies | 32,631 | | 2,734,478 |
| | Bristol-Myers Squibb Co. | Pharmaceuticals | 45,147 | | 2,335,906 |
| | Broadcom, Inc. | Semiconductors & Semiconductor Equipment | 102,326 | | 17,651,235 |
| | Broadridge Financial Solutions, Inc. | Professional Services | 2,682 | | 576,710 |
| | Brown & Brown, Inc. | Insurance | 5,364 | | 555,710 |
| | Brown-Forman Corp., Class A | Beverages | 894 | | 42,984 |
| franklintempleton.com | Semi-Annual Report | 3 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin U.S. Equity Index ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | United States (continued) | | | | |
| | Brown-Forman Corp., Class B | Beverages | 6,705 | | $ 329,886 |
| a | Builders FirstSource, Inc. | Building Products | 2,682 | | 519,933 |
| | Bunge Global SA | Food Products | 3,129 | | 302,387 |
| a | Burlington Stores, Inc. | Specialty Retail | 1,341 | | 353,327 |
| | BXP, Inc. | Office REITs | 3,576 | | 287,725 |
| a | Cadence Design Systems, Inc. | Software | 6,258 | | 1,696,106 |
| | Camden Property Trust | Residential REITs | 2,235 | | 276,090 |
| | Campbell Soup Co. | Food Products | 4,470 | | 218,672 |
| | Capital One Financial Corp. | Consumer Finance | 8,493 | | 1,271,657 |
| | Cardinal Health, Inc. | Health Care Providers & Services | 5,364 | | 592,829 |
| | Carlyle Group, Inc. | Capital Markets | 4,470 | | 192,478 |
| a | CarMax, Inc. | Specialty Retail | 3,576 | | 276,711 |
| a | Carnival Corp. | Hotels, Restaurants & Leisure | 21,456 | | 396,507 |
| | Carrier Global Corp. | Building Products | 18,774 | | 1,511,119 |
| | Caterpillar, Inc. | Machinery | 11,175 | | 4,370,766 |
| a | CBRE Group, Inc., Class A | Real Estate Management & Development | 6,705 | | 834,638 |
| | CDW Corp. | Electronic Equipment, Instruments & Components | 3,129 | | 708,093 |
| | Celanese Corp. | Chemicals | 2,235 | | 303,871 |
| | Cencora, Inc. | Health Care Providers & Services | 4,023 | | 905,497 |
| a | Centene Corp. | Health Care Providers & Services | 12,069 | | 908,554 |
| | CenterPoint Energy, Inc. | Multi-Utilities | 14,304 | | 420,824 |
| | CF Industries Holdings, Inc. | Chemicals | 4,023 | | 345,173 |
| a | Charles River Laboratories International, Inc. | Life Sciences Tools & Services | 1,341 | | 264,137 |
| | Charles Schwab Corp. | Capital Markets | 32,184 | | 2,085,845 |
| a | Charter Communications, Inc., Class A | Media | 2,235 | | 724,319 |
| | Cheniere Energy, Inc. | Oil, Gas & Consumable Fuels | 4,917 | | 884,273 |
| | Chevron Corp. | Oil, Gas & Consumable Fuels | 37,995 | | 5,595,524 |
| a | Chipotle Mexican Grill, Inc. | Hotels, Restaurants & Leisure | 30,810 | | 1,775,272 |
| | Chubb Ltd. | Insurance | 8,493 | | 2,449,296 |
| | Church & Dwight Co., Inc. | Household Products | 5,364 | | 561,718 |
| | Cigna Group | Health Care Providers & Services | 6,258 | | 2,168,022 |
| | Cincinnati Financial Corp. | Insurance | 3,576 | | 486,765 |
| | Cintas Corp. | Commercial Services & Supplies | 7,793 | | 1,604,423 |
| | Cisco Systems, Inc. | Communications Equipment | 90,741 | | 4,829,236 |
| | Citigroup, Inc. | Banks | 42,465 | | 2,658,309 |
| | Citizens Financial Group, Inc. | Banks | 10,281 | | 422,241 |
| | Clorox Co. | Household Products | 2,682 | | 436,925 |
| a | Cloudflare, Inc., Class A | IT Services | 6,705 | | 542,367 |
| | CME Group, Inc. | Capital Markets | 8,046 | | 1,775,350 |
| | CMS Energy Corp. | Multi-Utilities | 6,705 | | 473,574 |
| | Coca-Cola Co. | Beverages | 88,059 | | 6,327,920 |
| | Cognizant Technology Solutions Corp., Class A | IT Services | 11,175 | | 862,486 |
| a | Coinbase Global, Inc., Class A | Capital Markets | 4,470 | | 796,420 |
| | Colgate-Palmolive Co. | Household Products | 18,774 | | 1,948,929 |
| | Comcast Corp., Class A | Media | 88,059 | | 3,678,224 |
| | Conagra Brands, Inc. | Food Products | 10,281 | | 334,338 |
| | ConocoPhillips | Oil, Gas & Consumable Fuels | 26,373 | | 2,776,549 |
| | Consolidated Edison, Inc. | Multi-Utilities | 7,599 | | 791,284 |
| | Constellation Brands, Inc., Class A | Beverages | 3,576 | | 921,499 |
| | Constellation Energy Corp. | Electric Utilities | 7,152 | | 1,859,663 |
| a | Cooper Cos., Inc. | Health Care Equipment & Supplies | 4,470 | | 493,220 |
| a | Copart, Inc. | Commercial Services & Supplies | 19,668 | | 1,030,603 |
| | Corebridge Financial, Inc. | Financial Services | 5,364 | | 156,414 |
| | Corning, Inc. | Electronic Equipment, Instruments & Components | 17,433 | | 787,100 |
| a | Corpay, Inc. | Financial Services | 1,341 | | 419,411 |
| | Corteva, Inc. | Chemicals | 16,092 | | 946,049 |
| 4 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin U.S. Equity Index ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | United States (continued) | | | | |
| a | CoStar Group, Inc. | Real Estate Management & Development | 9,387 | | $ 708,155 |
| | Costco Wholesale Corp. | Consumer Staples Distribution & Retail | 10,001 | | 8,866,087 |
| | Coterra Energy, Inc., Class A | Oil, Gas & Consumable Fuels | 16,986 | | 406,815 |
| a | Coupang, Inc. | Broadline Retail | 26,373 | | 647,457 |
| | CRH PLC | Construction Materials | 15,645 | | 1,450,917 |
| a | Crowdstrike Holdings, Inc., Class A | Software | 5,364 | | 1,504,441 |
| | Crown Castle, Inc. | Specialized REITs | 9,834 | | 1,166,607 |
| | Crown Holdings, Inc. | Containers & Packaging | 2,682 | | 257,150 |
| | CSX Corp. | Ground Transportation | 43,806 | | 1,512,621 |
| | Cummins, Inc. | Machinery | 3,129 | | 1,013,139 |
| | CVS Health Corp. | Health Care Providers & Services | 28,161 | | 1,770,764 |
| | Danaher Corp. | Life Sciences Tools & Services | 14,304 | | 3,976,798 |
| | Darden Restaurants, Inc. | Hotels, Restaurants & Leisure | 2,682 | | 440,197 |
| a | Datadog, Inc., Class A | Software | 6,705 | | 771,477 |
| a | Dayforce, Inc. | Professional Services | 3,129 | | 191,651 |
| a | Deckers Outdoor Corp. | Textiles, Apparel & Luxury Goods | 3,539 | | 564,294 |
| | Deere & Co. | Machinery | 5,811 | | 2,425,105 |
| | Dell Technologies, Inc., Class C | Technology Hardware, Storage & Peripherals | 5,811 | | 688,836 |
| | Delta Air Lines, Inc. | Passenger Airlines | 14,751 | | 749,203 |
| | Devon Energy Corp. | Oil, Gas & Consumable Fuels | 14,304 | | 559,572 |
| a | Dexcom, Inc. | Health Care Equipment & Supplies | 8,940 | | 599,338 |
| | Diamondback Energy, Inc. | Oil, Gas & Consumable Fuels | 4,023 | | 693,565 |
| | Digital Realty Trust, Inc. | Specialized REITs | 7,152 | | 1,157,408 |
| | Discover Financial Services | Consumer Finance | 5,811 | | 815,225 |
| a | DocuSign, Inc. | Software | 4,470 | | 277,542 |
| | Dollar General Corp. | Consumer Staples Distribution & Retail | 4,917 | | 415,831 |
| a | Dollar Tree, Inc. | Consumer Staples Distribution & Retail | 4,917 | | 345,763 |
| | Dominion Energy, Inc. | Multi-Utilities | 18,774 | | 1,084,949 |
| | Domino’s Pizza, Inc. | Hotels, Restaurants & Leisure | 894 | | 384,545 |
| a | DoorDash, Inc., Class A | Hotels, Restaurants & Leisure | 7,152 | | 1,020,805 |
| | Dover Corp. | Machinery | 3,129 | | 599,954 |
| | Dow, Inc. | Chemicals | 16,092 | | 879,106 |
| | DR Horton, Inc. | Household Durables | 6,705 | | 1,279,113 |
| | DTE Energy Co. | Multi-Utilities | 4,470 | | 573,993 |
| | Duke Energy Corp. | Electric Utilities | 17,433 | | 2,010,025 |
| | DuPont de Nemours, Inc. | Chemicals | 9,387 | | 836,476 |
| a | Dynatrace, Inc. | Software | 6,258 | | 334,615 |
| | East West Bancorp, Inc. | Banks | 3,129 | | 258,893 |
| | Eastman Chemical Co. | Chemicals | 2,682 | | 300,250 |
| | Eaton Corp. PLC | Electrical Equipment | 8,940 | | 2,963,074 |
| | eBay, Inc. | Broadline Retail | 11,622 | | 756,708 |
| | Ecolab, Inc. | Chemicals | 5,811 | | 1,483,723 |
| | Edison International | Electric Utilities | 8,493 | | 739,655 |
| a | Edwards Lifesciences Corp. | Health Care Equipment & Supplies | 13,410 | | 884,926 |
| | Electronic Arts, Inc. | Entertainment | 5,364 | | 769,412 |
| | Elevance Health, Inc. | Health Care Providers & Services | 5,206 | | 2,707,120 |
| | Eli Lilly & Co. | Pharmaceuticals | 19,066 | | 16,891,332 |
| | Emerson Electric Co. | Electrical Equipment | 12,516 | | 1,368,875 |
| a | Enphase Energy, Inc. | Semiconductors & Semiconductor Equipment | 3,129 | | 353,640 |
| | Entegris, Inc. | Semiconductors & Semiconductor Equipment | 3,576 | | 402,407 |
| | Entergy Corp. | Electric Utilities | 4,917 | | 647,126 |
| | EOG Resources, Inc. | Oil, Gas & Consumable Fuels | 12,963 | | 1,593,542 |
| a | EPAM Systems, Inc. | IT Services | 1,341 | | 266,899 |
| | EQT Corp. | Oil, Gas & Consumable Fuels | 12,963 | | 474,964 |
| | Equifax, Inc. | Professional Services | 2,682 | | 788,133 |
| | Equinix, Inc. | Specialized REITs | 2,235 | | 1,983,853 |
| | Equitable Holdings, Inc. | Financial Services | 7,152 | | 300,599 |
| franklintempleton.com | Semi-Annual Report | 5 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin U.S. Equity Index ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | United States (continued) | | | | |
| | Equity LifeStyle Properties, Inc. | Residential REITs | 4,023 | | $ 287,001 |
| | Equity Residential | Residential REITs | 7,599 | | 565,822 |
| | Essex Property Trust, Inc. | Residential REITs | 1,341 | | 396,158 |
| | Estee Lauder Cos., Inc., Class A | Personal Care Products | 5,364 | | 534,737 |
| | Everest Group Ltd. | Insurance | 894 | | 350,296 |
| | Evergy, Inc. | Electric Utilities | 4,917 | | 304,903 |
| | Eversource Energy | Electric Utilities | 8,046 | | 547,530 |
| a | Exact Sciences Corp. | Biotechnology | 4,023 | | 274,047 |
| | Exelon Corp. | Electric Utilities | 22,350 | | 906,292 |
| a | Expedia Group, Inc. | Hotels, Restaurants & Leisure | 2,682 | | 396,990 |
| | Expeditors International of Washington, Inc. | Air Freight & Logistics | 3,129 | | 411,151 |
| | Extra Space Storage, Inc. | Specialized REITs | 4,917 | | 885,994 |
| | Exxon Mobil Corp. | Oil, Gas & Consumable Fuels | 100,128 | | 11,737,004 |
| a | F5, Inc. | Communications Equipment | 1,341 | | 295,288 |
| | FactSet Research Systems, Inc. | Capital Markets | 894 | | 411,106 |
| a | Fair Isaac Corp. | Software | 558 | | 1,084,484 |
| | Fastenal Co. | Trading Companies & Distributors | 12,963 | | 925,817 |
| | FedEx Corp. | Air Freight & Logistics | 4,917 | | 1,345,685 |
| | Ferguson Enterprises, Inc. | Trading Companies & Distributors | 4,470 | | 887,608 |
| | Fidelity National Financial, Inc. | Insurance | 5,811 | | 360,631 |
| | Fidelity National Information Services, Inc. | Financial Services | 12,516 | | 1,048,215 |
| | Fifth Third Bancorp | Banks | 15,198 | | 651,082 |
| | First Citizens BancShares, Inc., Class A | Banks | 300 | | 552,285 |
| a | First Solar, Inc. | Semiconductors & Semiconductor Equipment | 2,235 | | 557,498 |
| | FirstEnergy Corp. | Electric Utilities | 11,622 | | 515,436 |
| a | Fiserv, Inc. | Financial Services | 12,963 | | 2,328,803 |
| a | Flex Ltd. | Electronic Equipment, Instruments & Components | 9,834 | | 328,751 |
| | Ford Motor Co. | Automobiles | 88,506 | | 934,623 |
| a | Fortinet, Inc. | Software | 14,751 | | 1,143,940 |
| | Fortive Corp. | Machinery | 8,046 | | 635,071 |
| | Fox Corp., Class A | Media | 5,364 | | 227,058 |
| | Fox Corp., Class B | Media | 3,129 | | 121,405 |
| | Franklin Resources, Inc. | Capital Markets | 6,258 | | 126,099 |
| | Freeport-McMoRan, Inc. | Metals & Mining | 32,184 | | 1,606,625 |
| | Garmin Ltd. | Household Durables | 3,576 | | 629,483 |
| a | Gartner, Inc. | IT Services | 1,788 | | 906,087 |
| | GE HealthCare Technologies, Inc. | Health Care Equipment & Supplies | 8,940 | | 839,019 |
| a | GE Vernova, Inc. | Electrical Equipment | 6,258 | | 1,595,665 |
| | Gen Digital, Inc. | Software | 13,410 | | 367,836 |
| | General Dynamics Corp. | Aerospace & Defense | 5,364 | | 1,621,001 |
| | General Electric Co. | Aerospace & Defense | 24,585 | | 4,636,239 |
| | General Mills, Inc. | Food Products | 12,963 | | 957,318 |
| | General Motors Co. | Automobiles | 25,032 | | 1,122,435 |
| | Genuine Parts Co. | Distributors | 3,129 | | 437,059 |
| | Gilead Sciences, Inc. | Biotechnology | 28,161 | | 2,361,018 |
| | Global Payments, Inc. | Financial Services | 5,811 | | 595,163 |
| a | GoDaddy, Inc., Class A | IT Services | 3,129 | | 490,565 |
| | Goldman Sachs Group, Inc. | Capital Markets | 7,152 | | 3,541,027 |
| | Halliburton Co. | Energy Equipment & Services | 20,115 | | 584,341 |
| | Hartford Financial Services Group, Inc. | Insurance | 6,705 | | 788,575 |
| | HCA Healthcare, Inc. | Health Care Providers & Services | 4,023 | | 1,635,068 |
| | Healthpeak Properties, Inc. | Health Care REITs | 16,092 | | 368,024 |
| | HEICO Corp. | Aerospace & Defense | 894 | | 233,763 |
| | HEICO Corp., Class A | Aerospace & Defense | 1,788 | | 364,323 |
| | Hershey Co. | Food Products | 3,129 | | 600,080 |
| | Hess Corp. | Oil, Gas & Consumable Fuels | 6,258 | | 849,836 |
| | Hewlett Packard Enterprise Co. | Technology Hardware, Storage & Peripherals | 29,055 | | 594,465 |
| 6 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin U.S. Equity Index ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | United States (continued) | | | | |
| | Hilton Worldwide Holdings, Inc. | Hotels, Restaurants & Leisure | 5,364 | | $ 1,236,402 |
| a | Hologic, Inc. | Health Care Equipment & Supplies | 5,364 | | 436,951 |
| | Home Depot, Inc. | Specialty Retail | 22,350 | | 9,056,220 |
| | Honeywell International, Inc. | Industrial Conglomerates | 14,751 | | 3,049,179 |
| | Hormel Foods Corp. | Food Products | 6,705 | | 212,548 |
| | Host Hotels & Resorts, Inc. | Hotel & Resort REITs | 14,751 | | 259,618 |
| | Howmet Aerospace, Inc. | Aerospace & Defense | 8,940 | | 896,235 |
| | HP, Inc. | Technology Hardware, Storage & Peripherals | 22,350 | | 801,694 |
| | Hubbell, Inc., Class B | Electrical Equipment | 1,341 | | 574,417 |
| a | HubSpot, Inc. | Software | 1,100 | | 584,760 |
| | Humana, Inc. | Health Care Providers & Services | 2,682 | | 849,497 |
| | Huntington Bancshares, Inc. | Banks | 31,290 | | 459,963 |
| | Huntington Ingalls Industries, Inc. | Aerospace & Defense | 894 | | 236,356 |
| | IDEX Corp. | Machinery | 1,788 | | 383,526 |
| a | IDEXX Laboratories, Inc. | Health Care Equipment & Supplies | 1,788 | | 903,333 |
| | Illinois Tool Works, Inc. | Machinery | 6,705 | | 1,757,179 |
| a | Illumina, Inc. | Life Sciences Tools & Services | 3,576 | | 466,346 |
| a | Incyte Corp. | Biotechnology | 4,023 | | 265,920 |
| | Ingersoll Rand, Inc. | Machinery | 8,940 | | 877,550 |
| a | Insulet Corp. | Health Care Equipment & Supplies | 1,788 | | 416,157 |
| | Intel Corp. | Semiconductors & Semiconductor Equipment | 96,105 | | 2,254,623 |
| | Intercontinental Exchange, Inc. | Capital Markets | 12,963 | | 2,082,376 |
| | International Business Machines Corp. | IT Services | 20,562 | | 4,545,847 |
| | International Flavors & Fragrances, Inc. | Chemicals | 5,811 | | 609,748 |
| | International Paper Co. | Containers & Packaging | 7,599 | | 371,211 |
| | Interpublic Group of Cos., Inc. | Media | 8,493 | | 268,634 |
| | Intuit, Inc. | Software | 6,258 | | 3,886,218 |
| a | Intuitive Surgical, Inc. | Health Care Equipment & Supplies | 8,046 | | 3,952,758 |
| | Invitation Homes, Inc. | Residential REITs | 13,410 | | 472,837 |
| a | IQVIA Holdings, Inc. | Life Sciences Tools & Services | 4,023 | | 953,330 |
| | Iron Mountain, Inc. | Specialized REITs | 6,705 | | 796,755 |
| | J.M. Smucker Co. | Food Products | 2,235 | | 270,658 |
| | Jack Henry & Associates, Inc. | Financial Services | 1,788 | | 315,654 |
| | Jacobs Solutions, Inc. | Professional Services | 2,682 | | 351,074 |
| | JB Hunt Transport Services, Inc. | Ground Transportation | 1,788 | | 308,126 |
| | Johnson & Johnson | Pharmaceuticals | 54,087 | | 8,765,339 |
| | Johnson Controls International PLC | Building Products | 14,751 | | 1,144,825 |
| | JPMorgan Chase & Co. | Banks | 63,921 | | 13,478,382 |
| | Juniper Networks, Inc. | Communications Equipment | 7,152 | | 278,785 |
| | Kellanova | Food Products | 5,811 | | 469,006 |
| | Kenvue, Inc. | Personal Care Products | 38,889 | | 899,503 |
| | Keurig Dr. Pepper, Inc. | Beverages | 24,585 | | 921,446 |
| | KeyCorp | Banks | 21,009 | | 351,901 |
| a | Keysight Technologies, Inc. | Electronic Equipment, Instruments & Components | 4,023 | | 639,375 |
| | Kimberly-Clark Corp. | Household Products | 7,599 | | 1,081,186 |
| | Kimco Realty Corp. | Retail REITs | 15,198 | | 352,898 |
| | Kinder Morgan, Inc. | Oil, Gas & Consumable Fuels | 44,253 | | 977,549 |
| | KKR & Co., Inc. | Capital Markets | 14,751 | | 1,926,186 |
| | KLA Corp. | Semiconductors & Semiconductor Equipment | 3,129 | | 2,423,129 |
| | Kraft Heinz Co. | Food Products | 20,115 | | 706,238 |
| | Kroger Co. | Consumer Staples Distribution & Retail | 15,198 | | 870,845 |
| | L3Harris Technologies, Inc. | Aerospace & Defense | 4,470 | | 1,063,279 |
| | Labcorp Holdings, Inc. | Health Care Providers & Services | 1,788 | | 399,582 |
| | Lam Research Corp. | Semiconductors & Semiconductor Equipment | 2,970 | | 2,423,758 |
| | Lamb Weston Holdings, Inc. | Food Products | 3,129 | | 202,571 |
| | Las Vegas Sands Corp. | Hotels, Restaurants & Leisure | 9,387 | | 472,542 |
| | Leidos Holdings, Inc. | Professional Services | 3,129 | | 510,027 |
| franklintempleton.com | Semi-Annual Report | 7 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin U.S. Equity Index ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | United States (continued) | | | | |
| | Lennar Corp., Class A | Household Durables | 5,364 | | $ 1,005,643 |
| | Lennox International, Inc. | Building Products | 894 | | 540,235 |
| a | Liberty Media Corp.-Liberty Formula One, Class A | Entertainment | 447 | | 31,974 |
| a | Liberty Media Corp.-Liberty Formula One, Class C | Entertainment | 4,470 | | 346,112 |
| | Linde PLC | Chemicals | 10,728 | | 5,115,754 |
| a | Live Nation Entertainment, Inc. | Entertainment | 3,129 | | 342,594 |
| | LKQ Corp. | Distributors | 6,258 | | 249,819 |
| | Lockheed Martin Corp. | Aerospace & Defense | 4,917 | | 2,874,282 |
| | Loews Corp. | Insurance | 4,023 | | 318,018 |
| | Lowe’s Cos., Inc. | Specialty Retail | 12,963 | | 3,511,029 |
| | LPL Financial Holdings, Inc. | Capital Markets | 1,788 | | 415,942 |
| a | Lululemon Athletica, Inc. | Textiles, Apparel & Luxury Goods | 2,682 | | 727,761 |
| | LyondellBasell Industries NV, Class A | Chemicals | 5,811 | | 557,275 |
| | M&T Bank Corp. | Banks | 3,576 | | 636,957 |
| | Marathon Oil Corp. | Oil, Gas & Consumable Fuels | 12,516 | | 333,301 |
| | Marathon Petroleum Corp. | Oil, Gas & Consumable Fuels | 7,599 | | 1,237,953 |
| a | Markel Group, Inc. | Insurance | 308 | | 483,123 |
| | Marriott International, Inc., Class A | Hotels, Restaurants & Leisure | 5,364 | | 1,333,490 |
| | Marsh & McLennan Cos., Inc. | Insurance | 11,175 | | 2,493,031 |
| | Martin Marietta Materials, Inc. | Construction Materials | 1,341 | | 721,793 |
| | Marvell Technology, Inc. | Semiconductors & Semiconductor Equipment | 19,221 | | 1,386,219 |
| | Masco Corp. | Building Products | 4,917 | | 412,733 |
| | Mastercard, Inc., Class A | Financial Services | 18,327 | | 9,049,873 |
| | McCormick & Co., Inc. | Food Products | 5,811 | | 478,245 |
| | McDonald’s Corp. | Hotels, Restaurants & Leisure | 16,092 | | 4,900,175 |
| | McKesson Corp. | Health Care Providers & Services | 3,129 | | 1,547,040 |
| | Medtronic PLC | Health Care Equipment & Supplies | 29,502 | | 2,656,065 |
| | Merck & Co., Inc. | Pharmaceuticals | 56,769 | | 6,446,688 |
| | Meta Platforms, Inc., Class A | Interactive Media & Services | 49,170 | | 28,146,875 |
| | MetLife, Inc. | Insurance | 13,410 | | 1,106,057 |
| a | Mettler-Toledo International, Inc. | Life Sciences Tools & Services | 482 | | 722,855 |
| a | MGM Resorts International | Hotels, Restaurants & Leisure | 5,364 | | 209,679 |
| | Microchip Technology, Inc. | Semiconductors & Semiconductor Equipment | 12,069 | | 969,020 |
| | Micron Technology, Inc. | Semiconductors & Semiconductor Equipment | 25,032 | | 2,596,069 |
| | Microsoft Corp. | Software | 167,625 | | 72,129,037 |
| | Mid-America Apartment Communities, Inc. | Residential REITs | 2,682 | | 426,170 |
| a | Moderna, Inc. | Biotechnology | 7,599 | | 507,841 |
| a | Molina Healthcare, Inc. | Health Care Providers & Services | 1,341 | | 462,055 |
| | Molson Coors Beverage Co., Class B | Beverages | 4,023 | | 231,403 |
| | Mondelez International, Inc., Class A | Food Products | 30,396 | | 2,239,273 |
| a | MongoDB, Inc. | IT Services | 1,788 | | 483,386 |
| | Monolithic Power Systems, Inc. | Semiconductors & Semiconductor Equipment | 1,061 | | 980,894 |
| a | Monster Beverage Corp. | Beverages | 15,198 | | 792,880 |
| | Moody’s Corp. | Capital Markets | 3,576 | | 1,697,134 |
| | Morgan Stanley | Capital Markets | 28,161 | | 2,935,503 |
| | Mosaic Co. | Chemicals | 7,599 | | 203,501 |
| | Motorola Solutions, Inc. | Communications Equipment | 3,576 | | 1,607,877 |
| | MSCI, Inc. | Capital Markets | 1,788 | | 1,042,279 |
| | Nasdaq, Inc. | Capital Markets | 8,940 | | 652,709 |
| | NetApp, Inc. | Technology Hardware, Storage & Peripherals | 4,470 | | 552,090 |
| a | Netflix, Inc. | Entertainment | 9,834 | | 6,974,961 |
| a | Neurocrine Biosciences, Inc. | Biotechnology | 2,235 | | 257,517 |
| | Newmont Corp. | Metals & Mining | 25,926 | | 1,385,745 |
| | News Corp., Class A | Media | 8,493 | | 226,169 |
| | News Corp., Class B | Media | 2,235 | | 62,468 |
| 8 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin U.S. Equity Index ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | United States (continued) | | | | |
| | NextEra Energy, Inc. | Electric Utilities | 46,041 | | $ 3,891,846 |
| | NIKE, Inc., Class B | Textiles, Apparel & Luxury Goods | 26,373 | | 2,331,373 |
| | NiSource, Inc. | Multi-Utilities | 10,281 | | 356,237 |
| | Norfolk Southern Corp. | Ground Transportation | 4,917 | | 1,221,874 |
| | Northern Trust Corp. | Capital Markets | 4,917 | | 442,678 |
| | Northrop Grumman Corp. | Aerospace & Defense | 3,129 | | 1,652,331 |
| | NRG Energy, Inc. | Electric Utilities | 4,470 | | 407,217 |
| | Nucor Corp. | Metals & Mining | 5,364 | | 806,424 |
| | NVIDIA Corp. | Semiconductors & Semiconductor Equipment | 534,165 | | 64,868,998 |
| a | NVR, Inc. | Household Durables | 68 | | 667,202 |
| | Occidental Petroleum Corp. | Oil, Gas & Consumable Fuels | 14,304 | | 737,228 |
| a | Okta, Inc. | IT Services | 3,576 | | 265,840 |
| | Old Dominion Freight Line, Inc. | Ground Transportation | 4,470 | | 887,921 |
| | Omnicom Group, Inc. | Media | 4,470 | | 462,153 |
| a | ON Semiconductor Corp. | Semiconductors & Semiconductor Equipment | 9,834 | | 714,047 |
| | ONEOK, Inc. | Oil, Gas & Consumable Fuels | 12,963 | | 1,181,318 |
| | Oracle Corp. | Software | 35,760 | | 6,093,504 |
| a | O’Reilly Automotive, Inc. | Specialty Retail | 1,341 | | 1,544,296 |
| | Otis Worldwide Corp. | Machinery | 8,940 | | 929,224 |
| | Owens Corning | Building Products | 1,788 | | 315,618 |
| | PACCAR, Inc. | Machinery | 11,622 | | 1,146,859 |
| | Packaging Corp. of America | Containers & Packaging | 1,788 | | 385,135 |
| a | Palantir Technologies, Inc., Class A | Software | 44,700 | | 1,662,840 |
| a | Palo Alto Networks, Inc. | Software | 7,152 | | 2,444,554 |
| | Parker-Hannifin Corp. | Machinery | 2,799 | | 1,768,464 |
| | Paychex, Inc. | Professional Services | 7,152 | | 959,727 |
| | Paycom Software, Inc. | Professional Services | 894 | | 148,914 |
| a | PayPal Holdings, Inc. | Financial Services | 23,691 | | 1,848,609 |
| | Pentair PLC | Machinery | 3,576 | | 349,697 |
| | PepsiCo, Inc. | Beverages | 30,843 | | 5,244,852 |
| | Pfizer, Inc. | Pharmaceuticals | 127,395 | | 3,686,811 |
| | PG&E Corp. | Electric Utilities | 47,829 | | 945,579 |
| | Philip Morris International, Inc. | Tobacco | 34,866 | | 4,232,732 |
| | Phillips 66 | Oil, Gas & Consumable Fuels | 9,387 | | 1,233,921 |
| a | Pinterest, Inc., Class A | Interactive Media & Services | 13,410 | | 434,082 |
| | PNC Financial Services Group, Inc. | Banks | 8,940 | | 1,652,559 |
| | Pool Corp. | Distributors | 894 | | 336,859 |
| | PPG Industries, Inc. | Chemicals | 5,364 | | 710,515 |
| | PPL Corp. | Electric Utilities | 16,539 | | 547,110 |
| | Principal Financial Group, Inc. | Insurance | 5,364 | | 460,768 |
| | Procter & Gamble Co. | Household Products | 53,193 | | 9,213,028 |
| | Progressive Corp. | Insurance | 12,963 | | 3,289,491 |
| | Prologis, Inc. | Industrial REITs | 21,009 | | 2,653,017 |
| | Prudential Financial, Inc. | Insurance | 8,046 | | 974,371 |
| a | PTC, Inc. | Software | 2,682 | | 484,530 |
| | Public Service Enterprise Group, Inc. | Multi-Utilities | 11,175 | | 996,922 |
| | Public Storage | Specialized REITs | 3,576 | | 1,301,199 |
| | PulteGroup, Inc. | Household Durables | 4,917 | | 705,737 |
| a | Qorvo, Inc. | Semiconductors & Semiconductor Equipment | 2,235 | | 230,875 |
| | QUALCOMM, Inc. | Semiconductors & Semiconductor Equipment | 25,032 | | 4,256,692 |
| | Quanta Services, Inc. | Construction & Engineering | 3,129 | | 932,911 |
| | Quest Diagnostics, Inc. | Health Care Providers & Services | 2,682 | | 416,380 |
| | Raymond James Financial, Inc. | Capital Markets | 4,470 | | 547,396 |
| | Realty Income Corp. | Retail REITs | 19,668 | | 1,247,345 |
| | Regency Centers Corp. | Retail REITs | 4,023 | | 290,581 |
| a | Regeneron Pharmaceuticals, Inc. | Biotechnology | 2,386 | | 2,508,259 |
| | Regions Financial Corp. | Banks | 21,009 | | 490,140 |
| franklintempleton.com | Semi-Annual Report | 9 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin U.S. Equity Index ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | United States (continued) | | | | |
| | Reinsurance Group of America, Inc. | Insurance | 1,341 | | $ 292,164 |
| | Republic Services, Inc. | Commercial Services & Supplies | 4,470 | | 897,755 |
| | ResMed, Inc. | Health Care Equipment & Supplies | 3,129 | | 763,851 |
| | Revvity, Inc. | Life Sciences Tools & Services | 2,682 | | 342,625 |
| a | ROBLOX Corp., Class A | Entertainment | 11,622 | | 514,390 |
| | Rockwell Automation, Inc. | Electrical Equipment | 2,682 | | 720,010 |
| | Rollins, Inc. | Commercial Services & Supplies | 6,705 | | 339,139 |
| | Roper Technologies, Inc. | Software | 2,235 | | 1,243,643 |
| | Ross Stores, Inc. | Specialty Retail | 7,599 | | 1,143,725 |
| | Royal Caribbean Cruises Ltd. | Hotels, Restaurants & Leisure | 5,364 | | 951,359 |
| | Royalty Pharma PLC, Class A | Pharmaceuticals | 8,940 | | 252,913 |
| | RTX Corp. | Aerospace & Defense | 29,949 | | 3,628,621 |
| | S&P Global, Inc. | Capital Markets | 7,152 | | 3,694,866 |
| | Salesforce, Inc. | Software | 21,009 | | 5,750,373 |
| | SBA Communications Corp. | Specialized REITs | 2,235 | | 537,964 |
| | Schlumberger NV | Energy Equipment & Services | 32,184 | | 1,350,119 |
| | Seagate Technology Holdings PLC | Technology Hardware, Storage & Peripherals | 4,470 | | 489,599 |
| | Sempra | Multi-Utilities | 14,304 | | 1,196,244 |
| a | ServiceNow, Inc. | Software | 4,470 | | 3,997,923 |
| | Sherwin-Williams Co. | Chemicals | 5,364 | | 2,047,278 |
| | Simon Property Group, Inc. | Retail REITs | 6,705 | | 1,133,279 |
| | Sirius XM Holdings, Inc. | Media | 1,432 | | 33,867 |
| | Skyworks Solutions, Inc. | Semiconductors & Semiconductor Equipment | 3,576 | | 353,202 |
| | Smurfit WestRock PLC | Containers & Packaging | 11,175 | | 552,268 |
| a | Snap, Inc., Class A | Interactive Media & Services | 24,138 | | 258,277 |
| | Snap-on, Inc. | Machinery | 1,341 | | 388,501 |
| a | Snowflake, Inc., Class A | IT Services | 7,152 | | 821,479 |
| | Southern Co. | Electric Utilities | 24,585 | | 2,217,075 |
| | Southern Copper Corp. | Metals & Mining | 1,798 | | 207,975 |
| | Southwest Airlines Co. | Passenger Airlines | 13,410 | | 397,338 |
| | SS&C Technologies Holdings, Inc. | Professional Services | 4,917 | | 364,891 |
| | Stanley Black & Decker, Inc. | Machinery | 3,576 | | 393,825 |
| | Starbucks Corp. | Hotels, Restaurants & Leisure | 25,479 | | 2,483,948 |
| | State Street Corp. | Capital Markets | 7,152 | | 632,737 |
| | Steel Dynamics, Inc. | Metals & Mining | 3,129 | | 394,504 |
| | STERIS PLC | Health Care Equipment & Supplies | 2,235 | | 542,077 |
| | Stryker Corp. | Health Care Equipment & Supplies | 8,046 | | 2,906,698 |
| | Sun Communities, Inc. | Residential REITs | 2,682 | | 362,472 |
| a | Super Micro Computer, Inc. | Technology Hardware, Storage & Peripherals | 1,140 | | 474,696 |
| | Synchrony Financial | Consumer Finance | 8,940 | | 445,927 |
| a | Synopsys, Inc. | Software | 3,576 | | 1,810,851 |
| | Sysco Corp. | Consumer Staples Distribution & Retail | 11,175 | | 872,320 |
| | T. Rowe Price Group, Inc. | Capital Markets | 4,917 | | 535,609 |
| a | Take-Two Interactive Software, Inc. | Entertainment | 3,576 | | 549,667 |
| | Targa Resources Corp. | Oil, Gas & Consumable Fuels | 4,917 | | 727,765 |
| | Target Corp. | Consumer Staples Distribution & Retail | 10,281 | | 1,602,397 |
| a | Teledyne Technologies, Inc. | Electronic Equipment, Instruments & Components | 894 | | 391,268 |
| | Teleflex, Inc. | Health Care Equipment & Supplies | 894 | | 221,104 |
| | Teradyne, Inc. | Semiconductors & Semiconductor Equipment | 3,576 | | 478,934 |
| a | Tesla, Inc. | Automobiles | 62,580 | | 16,372,805 |
| | Texas Instruments, Inc. | Semiconductors & Semiconductor Equipment | 20,562 | | 4,247,492 |
| | Texas Pacific Land Corp. | Oil, Gas & Consumable Fuels | 447 | | 395,479 |
| | Textron, Inc. | Aerospace & Defense | 4,470 | | 395,953 |
| | Thermo Fisher Scientific, Inc. | Life Sciences Tools & Services | 8,493 | | 5,253,515 |
| | TJX Cos., Inc. | Specialty Retail | 25,479 | | 2,994,802 |
| | T-Mobile U.S., Inc. | Wireless Telecommunication Services | 11,175 | | 2,306,073 |
| | Tractor Supply Co. | Specialty Retail | 2,235 | | 650,229 |
| 10 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin U.S. Equity Index ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | United States (continued) | | | | |
| a | Trade Desk, Inc., Class A | Media | 10,281 | | $ 1,127,312 |
| | Trane Technologies PLC | Building Products | 4,917 | | 1,911,385 |
| | TransDigm Group, Inc. | Aerospace & Defense | 1,263 | | 1,802,465 |
| | TransUnion | Professional Services | 4,023 | | 421,208 |
| | Travelers Cos., Inc. | Insurance | 4,917 | | 1,151,168 |
| a | Trimble, Inc. | Electronic Equipment, Instruments & Components | 5,364 | | 333,051 |
| | Truist Financial Corp. | Banks | 29,949 | | 1,280,919 |
| a | Twilio, Inc., Class A | IT Services | 4,023 | | 262,380 |
| a | Tyler Technologies, Inc. | Software | 894 | | 521,846 |
| | Tyson Foods, Inc., Class A | Food Products | 6,258 | | 372,726 |
| | U.S. Bancorp | Banks | 34,866 | | 1,594,422 |
| a | Uber Technologies, Inc. | Ground Transportation | 45,147 | | 3,393,249 |
| | UDR, Inc. | Residential REITs | 7,599 | | 344,539 |
| a | Ulta Beauty, Inc. | Specialty Retail | 894 | | 347,873 |
| | Union Pacific Corp. | Ground Transportation | 13,857 | | 3,415,473 |
| a | United Airlines Holdings, Inc. | Passenger Airlines | 7,599 | | 433,599 |
| | United Parcel Service, Inc., Class B | Air Freight & Logistics | 16,539 | | 2,254,927 |
| | United Rentals, Inc. | Trading Companies & Distributors | 1,523 | | 1,233,219 |
| | UnitedHealth Group, Inc. | Health Care Providers & Services | 20,718 | | 12,113,400 |
| a | Unity Software, Inc. | Software | 6,705 | | 151,667 |
| | Universal Health Services, Inc., Class B | Health Care Providers & Services | 1,341 | | 307,102 |
| | Valero Energy Corp. | Oil, Gas & Consumable Fuels | 7,152 | | 965,735 |
| a | Veeva Systems, Inc., Class A | Health Care Technology | 3,129 | | 656,683 |
| | Ventas, Inc. | Health Care REITs | 8,940 | | 573,322 |
| | Veralto Corp. | Commercial Services & Supplies | 5,364 | | 600,017 |
| a | VeriSign, Inc. | IT Services | 1,788 | | 339,648 |
| | Verisk Analytics, Inc. | Professional Services | 3,129 | | 838,447 |
| | Verizon Communications, Inc. | Diversified Telecommunication Services | 95,211 | | 4,275,926 |
| a | Vertex Pharmaceuticals, Inc. | Biotechnology | 5,811 | | 2,702,580 |
| | Vertiv Holdings Co., Class A | Electrical Equipment | 8,046 | | 800,497 |
| | Viatris, Inc. | Pharmaceuticals | 25,926 | | 301,001 |
| | VICI Properties, Inc. | Specialized REITs | 23,244 | | 774,258 |
| | Visa, Inc., Class A | Financial Services | 37,548 | | 10,323,823 |
| | Vistra Corp. | Independent Power Producers & Energy Traders | 7,152 | | 847,798 |
| | Vulcan Materials Co. | Construction Materials | 3,129 | | 783,595 |
| | W.R. Berkley Corp. | Insurance | 6,705 | | 380,375 |
| | Walgreens Boots Alliance, Inc. | Consumer Staples Distribution & Retail | 16,092 | | 144,184 |
| | Walmart, Inc. | Consumer Staples Distribution & Retail | 97,893 | | 7,904,860 |
| | Walt Disney Co. | Entertainment | 41,124 | | 3,955,718 |
| a | Warner Bros Discovery, Inc. | Entertainment | 50,511 | | 416,716 |
| | Waste Management, Inc. | Commercial Services & Supplies | 8,046 | | 1,670,350 |
| a | Waters Corp. | Life Sciences Tools & Services | 1,341 | | 482,612 |
| | Watsco, Inc. | Trading Companies & Distributors | 894 | | 439,741 |
| | WEC Energy Group, Inc. | Multi-Utilities | 7,152 | | 687,879 |
| | Wells Fargo & Co. | Banks | 76,437 | | 4,317,926 |
| | Welltower, Inc. | Health Care REITs | 13,410 | | 1,716,882 |
| | West Pharmaceutical Services, Inc. | Life Sciences Tools & Services | 1,788 | | 536,686 |
| a | Western Digital Corp. | Technology Hardware, Storage & Peripherals | 7,152 | | 488,410 |
| | Westinghouse Air Brake Technologies Corp. | Machinery | 4,023 | | 731,261 |
| | Westlake Corp. | Chemicals | 894 | | 134,359 |
| | Weyerhaeuser Co. | Specialized REITs | 16,539 | | 560,011 |
| | Williams Cos., Inc. | Oil, Gas & Consumable Fuels | 27,267 | | 1,244,739 |
| | Willis Towers Watson PLC | Insurance | 2,235 | | 658,275 |
| a | Workday, Inc., Class A | Software | 4,917 | | 1,201,764 |
| | WP Carey, Inc. | Diversified REITs | 4,917 | | 306,329 |
| | WW Grainger, Inc. | Trading Companies & Distributors | 894 | | 928,696 |
| | Wynn Resorts Ltd. | Hotels, Restaurants & Leisure | 2,235 | | 214,292 |
| franklintempleton.com | Semi-Annual Report | 11 |
Franklin Templeton ETF Trust
Schedule of Investments
Franklin U.S. Equity Index ETF (continued)
| | | Industry | Shares | | Value |
| | Common Stocks (continued) | | | | |
| | United States (continued) | | | | |
| | Xcel Energy, Inc. | Electric Utilities | 12,516 | | $ 817,295 |
| | Xylem, Inc. | Machinery | 5,364 | | 724,301 |
| | Yum! Brands, Inc. | Hotels, Restaurants & Leisure | 6,258 | | 874,305 |
| a | Zebra Technologies Corp., Class A | Electronic Equipment, Instruments & Components | 1,341 | | 496,599 |
| a | Zillow Group, Inc., Class A | Real Estate Management & Development | 1,341 | | 83,048 |
| a | Zillow Group, Inc., Class C | Real Estate Management & Development | 3,576 | | 228,328 |
| | Zimmer Biomet Holdings, Inc. | Health Care Equipment & Supplies | 4,470 | | 482,536 |
| | Zoetis, Inc. | Pharmaceuticals | 10,281 | | 2,008,702 |
| a | Zoom Video Communications, Inc., Class A | Software | 5,364 | | 374,085 |
| a | Zscaler, Inc. | Software | 2,235 | | 382,051 |
| | | | | | 1,117,024,268 |
| | Total Common Stocks (Cost $831,699,159) | | | | 1,121,961,555 |
| | Preferred Stock 0.0% | | | | |
| | Russia 0.0% | | | | |
| a,b,c | Surgutneftegas PJSC, pfd. | Oil, Gas & Consumable Fuels | 10,688 | | — |
| | Total Preferred Stocks (Cost $6,129) | | | | — |
| | Total Investments before Short-Term Investments (Cost $831,705,288) | | | | 1,121,961,555 |
| | Short-Term Investments 0.0%† | | | | |
| | Money Market Funds 0.0%† | | | | |
| | United States 0.0%† | | | | |
| d,e | Institutional Fiduciary Trust - Money Market Portfolio, 4.74% | Money Market Funds | 584,221 | | 584,221 |
| | Total Short-Term Investments (Cost $584,221) | | | | 584,221 |
| | Total Investments (Cost $832,289,509) 99.9% | | | | 1,122,545,776 |
| | Other Assets, less Liabilities 0.1% | | | | 629,357 |
| | Net Assets 100.0% | | | | $ 1,123,175,133 |
| †Rounds to less than 0.1% of net assets. |
| aNon-income producing. |
| bFair valued using significant unobservable inputs. See Note 8 regarding fair value measurements. |
| cSee Note 6 regarding investments in Russian securities. |
| dThe rate shown is the annualized seven-day effective yield at period end. |
| eSee Note 3(c) regarding investments in affiliated management investment companies. |
| 12 | Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Franklin U.S. Equity Index ETF (continued)
At September 30, 2024, the Fund had the following futures contracts outstanding. See Note 1(c).
Futures Contracts
| Description | Type | Number of
Contracts | Notional
Amount* | Expiration
Date | Value/Unrealized
Appreciation
(Depreciation) |
| Equity Contracts | | | | | |
| S&P 500 E-Mini | Long | 3 | $ 872,138 | 12/20/24 | $ 17,229 |
See Note 7 regarding other derivative information.
See Abbreviations on page 25.
| franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Semi-Annual Report | 13 |
FRANKLIN TEMPLETON ETF TRUST
FINANCIAL STATEMENTS
Statement of Assets and Liabilities
September 30, 2024 (unaudited)
Franklin U.S. Equity Index ETF
| Assets: | |
| Investments in securities: | |
| Cost – Unaffiliated issuers | $ 831,705,288 |
| Cost – Non-controlled affiliates (Note 3c) | 584,221 |
| Value – Unaffiliated issuers | $ 1,121,961,555 |
| Value – Non-controlled affiliates (Note 3c) | 584,221 |
| Cash | 3,137 |
| Receivables: | |
| Capital shares sold | 5,025,392 |
| Dividends and interest | 572,755 |
| Variation margin on futures contracts | 3,498 |
| Deposits with brokers for: | |
| Futures contracts | 43,800 |
| Total assets | 1,128,194,358 |
| Liabilities: | |
| Payables: | |
| Investment securities purchased | 4,991,943 |
| Management fees | 27,282 |
| Total liabilities | 5,019,225 |
| Net assets, at value | $ 1,123,175,133 |
| Net assets consist of: | |
| Paid-in capital | $ 794,579,505 |
| Total distributable earnings (loss) | 328,595,628 |
| Net assets, at value | $ 1,123,175,133 |
| Shares outstanding | 22,350,000 |
| Net asset value per share | $50.25 |
| 14 | Semi-Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
FINANCIAL STATEMENTS
Statement of Operations
for the period ended September 30, 2024 (unaudited)
Franklin U.S. Equity Index ETF
| Investment income: | |
| Dividends: (net of foreign taxes)a | |
| Unaffiliated issuers | $ 7,482,720 |
| Non-Controlled affiliates (Note 3c) | 33,899 |
| Interest: | |
| Unaffiliated issuers | 1,741 |
| Interest from securities loaned (Note 1d): | |
| Unaffiliated issuers (net of fees and rebates) | 9,544 |
| Non-Controlled affiliates (Note 3c) | 2,158 |
| Total investment income | 7,530,062 |
| Expenses: | |
| Management fees (Note 3a) | 167,031 |
| Total expenses | 167,031 |
| Expenses waived/paid by affiliates (Note 3c) | (325) |
| Net expenses | 166,706 |
| Net investment income | 7,363,356 |
| Realized and unrealized gains (losses): | |
| Net realized gain (loss) from: | |
| Investments: | |
| Unaffiliated issuers | (1,280,313) |
| In-kind redemptions | 41,495,298 |
| Futures contracts | 66,267 |
| Net realized gain (loss) | 40,281,252 |
| Net change in unrealized appreciation (depreciation) on: | |
| Investments: | |
| Unaffiliated issuers | 61,795,103 |
| Translation of other assets and liabilities denominated in foreign currencies | 440 |
| Futures contracts | (19,516) |
| Net change in unrealized appreciation (depreciation) | 61,776,027 |
| Net realized and unrealized gain (loss) | 102,057,279 |
| Net increase (decrease) in net assets resulting from operations | $109,420,635 |
| aForeign taxes withheld on dividends | $1,840 |
| franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Semi-Annual Report | 15 |
FRANKLIN TEMPLETON ETF TRUST
FINANCIAL STATEMENTS
Statements of Changes in Net Assets
Franklin U.S. Equity Index ETF
| | Six Months Ended
September 30, 2024
(unaudited) | Year Ended
March 31, 2024
|
| Increase (decrease) in net assets: | | |
| Operations: | | |
| Net investment income | $ 7,363,356 | $ 13,236,120 |
| Net realized gain | 40,281,252 | 26,887,063 |
| Net change in unrealized appreciation (depreciation) | 61,776,027 | 207,357,740 |
| Net increase (decrease) in net assets resulting from operations | 109,420,635 | 247,480,923 |
| Distributions to shareholders (Note 1f) | (7,527,805) | (12,897,623) |
| Capital share transactions: (Note 2) | (79,884,115) | 184,670,434 |
| Net increase (decrease) in net assets | 22,008,715 | 419,253,734 |
| Net assets: | | |
| Beginning of period | 1,101,166,418 | 681,912,684 |
| End of period | $ 1,123,175,133 | $ 1,101,166,418 |
| 16 | Semi-Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
Notes to Financial Statements (unaudited)
1. Organization and Significant Accounting Policies
Franklin Templeton ETF Trust (Trust) is registered under the Investment Company Act of 1940 (1940 Act) as an open-end management investment company. consisting of forty-nine separate funds, one of which is included in this report (Fund). The Fund follows the accounting and reporting guidance in Financial Accounting Standards Board ("FASB") Accounting Standard Codification Topic 946, Financial Services - Investment Companies ("ASC 946"), and applies the specialized accounting and reporting guidance in U.S. Generally Accepted Accounting Principles (U.S. GAAP), including, but not limited to, ASC 946. The Fund is an exchange traded fund (ETF) and seek to provide the investment results that closely correspond, before fees and expenses, to the performance of Fund corresponding underlying index.
The following summarizes the Fund’s significant accounting policies.
a. Financial Instrument Valuation
The Fund’s investments in financial instruments are carried at fair value daily. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. The Fund calculates the net asset value (NAV) per share each business day as of 4 p.m. Eastern time or the regularly scheduled close of the New York Stock Exchange (NYSE), whichever is earlier. Under compliance policies and procedures approved by the Fund’s Board of Trustees (the Board), the Board has designated the Fund’s investment manager as the valuation designee and has responsibility for oversight of valuation. The investment manager is assisted by the Fund’s administrator in performing this responsibility, including leading the cross-functional Valuation Committee (VC).
The Fund may utilize independent pricing services, quotations from securities and financial instrument dealers, and other market sources to determine fair value.
Equity securities, exchange trade funds and derivative financial instruments listed on an exchange or on the NASDAQ National Market System are valued at the last quoted sale price or the official closing price of the day, respectively. Foreign equity securities are valued as of the close of trading on the foreign stock exchange on which the security is primarily traded or as of 4 p.m. Eastern time. The value is then converted into its U.S. dollar equivalent at the foreign exchange rate in effect at 4 p.m. London time on the
day that the value of the security is determined. Over-the-counter (OTC) securities are valued within the range of the most recent quoted bid and ask prices. Securities that trade in multiple markets or on multiple exchanges are valued according to the broadest and most representative market. Certain equity securities are valued based upon fundamental characteristics or relationships to similar securities.
Investments in open-end mutual fund are valued at the closing NAV.
The Fund has procedures to determine the fair value of financial instruments for which market prices are not reliable or readily available. Under these procedures, the Fund primarily employs a market-based approach which may use related or comparable assets or liabilities, recent transactions, market multiples, book values, and other relevant information for the investment to determine the fair value of the investment. An income-based valuation approach may also be used in which the anticipated future cash flows of the investment are discounted to calculate fair value. Discounts may also be applied due to the nature or duration of any restrictions on the disposition of the investments. Due to the inherent uncertainty of valuations of such investments, the fair values may differ significantly from the values that would have been used had an active market existed.
Trading in securities on foreign securities stock exchanges and OTC markets may be completed before 4 p.m. Eastern time. In addition, trading in certain foreign markets may not take place on Fund business day. Occasionally, events occur between the time at which trading in a foreign security is completed and 4 p.m. Eastern time that might call into question the reliability of the value of a portfolio security held by the Fund. As a result, differences may arise between the value of the Fund’s portfolio securities as determined at the foreign market close and the latest indications of value at 4 p.m. Eastern time. In order to minimize the potential for these differences, an independent pricing service may be used to adjust the Fund’s portfolio securities to the latest indications of fair value at 4 p.m. Eastern time on September 30, 2024. At September 30, 2024, certain securities may have been fair valued using these procedures, in which case the securities were categorized as Level 2 inputs within the fair value hierarchy (referred to as “market level fair value”).
When the last day of the reporting period is a non-business day, certain foreign markets may be open on those days that the Fund’s NAV is not calculated, which could result in
| franklintempleton.com | Semi-Annual Report | 17 |
FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. Organization and Significant Accounting Policies (continued)
a. Financial Instrument Valuation (continued)
differences between the value of the Fund’s portfolio securities on the last business day and the last calendar day of the reporting period. Any significant security valuation changes due to an open foreign market are adjusted and reflected by the Fund for financial reporting purposes.
b. Foreign Currency Translation
Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars based on the exchange rate of such currencies against U.S. dollars on the date of valuation. The Fund may enter into foreign currency exchange contracts to facilitate transactions denominated in a foreign currency. Purchases and sales of securities, income and expense items denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date. Portfolio securities and assets and liabilities denominated in foreign currencies contain risks that those currencies will decline in value relative to the U.S. dollar. Occasionally, events may impact the availability or reliability of foreign exchange rates used to convert the U.S. dollar equivalent value. If such an event occurs, the foreign exchange rate will be valued at fair value using procedures established and approved by the Board.
The Fund does not separately report the effect of changes in foreign exchange rates from changes in market prices on securities held. Such changes are included in net realized and unrealized gain or loss from investments in the Statements of Operations.
Realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions and the difference between the recorded amounts of dividends, interest, and foreign withholding taxes and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in foreign exchange rates on foreign denominated assets and liabilities other than investments in securities held at the end of the reporting period.
c. Derivative Financial Instruments
The Fund invested in derivative financial instruments in order to manage risk or gain exposure to various other investments or markets. Derivatives are financial contracts based on an
underlying or notional amount, require no initial investment or an initial net investment that is smaller than would normally be required to have a similar response to changes in market factors, and require or permit net settlement. Derivatives contain various risks including the potential inability of the counterparty to fulfill their obligations under the terms of the contract, the potential for an illiquid secondary market, and/or the potential for market movements which expose the Fund to gains or losses in excess of the amounts shown in the Statement of Assets and Liabilities. Realized gain and loss and unrealized appreciation and depreciation on these contracts for the period are included in the Statement of Operations.
Derivative counterparty credit risk is managed through a formal evaluation of the creditworthiness of all potential counterparties. Fund attempt to reduce their exposure to counterparty credit risk on OTC derivatives, whenever possible, by entering into International Swaps and Derivatives Association (ISDA) master agreements with certain counterparties. These agreements contain various provisions, including but not limited to collateral requirements, events of default, or early termination. Termination events applicable to the counterparty include certain deteriorations in the credit quality of the counterparty.
Termination events applicable to the Fund include failure of the Fund to maintain certain net asset levels and/or limit the decline in net assets over various periods of time. In the event of default or early termination, the ISDA master agreement gives the non-defaulting party the right to net and close-out all transactions traded, whether or not arising under the ISDA agreement, to one net amount payable by one counterparty to the other. However, absent an event of default or early termination, OTC derivative assets and liabilities are presented gross and not offset in the Statement of Assets and Liabilities. Early termination by the counterparty may result in an immediate payment by the Fund of any net liability owed to that counterparty under the ISDA agreement.
Collateral requirements differ by type of derivative. Collateral terms are contract specific for OTC derivatives. For OTC derivatives traded under an ISDA master agreement, posting of collateral is required by either the Fund or the applicable counterparty if the total net exposure of all OTC derivatives with the applicable counterparty exceeds the minimum transfer amount, which typically ranges from $100,000 to $250,000, and can vary depending on the counterparty and the type of agreement. Generally, collateral is determined at the close of Fund business each day and any additional
| 18 | Semi-Annual Report | franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. Organization and Significant Accounting Policies (continued)
c. Derivative Financial Instruments (continued)
collateral required due to changes in derivative values may be delivered by the Fund or the counterparty the next business day, or within a few business days. Collateral pledged and/or received by the Fund, if any, is held in segregated accounts with the Fund’s custodian/counterparty broker and can be in the form of cash and/or securities. Unrestricted cash may be invested according to the Fund’s investment objectives. To the extent that the amounts due to the Fund from its counterparties are not subject to collateralization or are not fully collateralized, the Fund bears the risk of loss from counterparty non-performance.
The Fund entered into exchange traded futures contracts primarily to manage and/or gain exposure to equity price risk. A futures contract is an agreement between the Fund and a counterparty to buy or sell an asset at a specified price on a future date. Required initial margins are pledged by the Fund, and the daily change in fair value is accounted for as a variation margin payable or receivable in the Statement of Assets and Liabilities.
See Note 7 regarding other derivative information.
d. Securities Lending
The Fund participates in an agency based securities lending program to earn additional income. The Fund receives cash collateral against the loaned securities in an amount equal to at least 102% of the fair value of the loaned securities. Collateral is maintained over the life of the loan in an amount not less than 100% of the fair value of loaned securities, as determined at the close of Fund business each day; any additional collateral required due to changes in security values is delivered to the Fund on the next business day. The collateral is deposited into a joint cash account with other fund and is used to invest in a money market fund managed by Franklin Advisers, Inc., an affiliate of the Fund. These securities received as collateral are held in segregated accounts with the Fund’s custodian. The Fund cannot repledge or resell these securities received as collateral. As such, the non-cash collateral is excluded from the Statement of Assets and Liabilities. The Fund may receive income from the investment of cash collateral, in addition to lending fees and rebates paid by the borrower. Income from securities loaned, net of fees paid to the securities lending agent and/or third-party vendor, is reported separately in the Statement of Operations. The Fund bears the market risk with respect to the collateral investment, securities loaned,
and the risk that the agent may default on its obligations to the Fund. If the borrower defaults on its obligation to return the securities loaned, the Fund has the right to repurchase the securities in the open market using the collateral received. The securities lending agent has agreed to indemnify the Fund in the event of default by a third party borrower.
At September 30, 2024, the Fund had no securities on loan.
e. Income and Deferred Taxes
It is Fund’s policy to qualify as a regulated investment company under the Internal Revenue Code. The Fund intends to distribute to shareholders substantially all of its taxable income and net realized gains to relieve it from federal income and excise taxes. As a result, no provision for U.S. federal income taxes is required.
The Fund may be subject to foreign taxation related to income received, capital gains on the sale of securities and certain foreign currency transactions in the foreign jurisdictions in which the Fund invests. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Fund invests. When a capital gain tax is determined to apply, Fund records an estimated deferred tax liability in an amount that would be payable if the securities were disposed of on the valuation date.
The Fund may recognize an income tax liability related to its uncertain tax positions under U.S. GAAP when the uncertain tax position has a less than 50% probability that it will be sustained upon examination by the tax authorities based on its technical merits. As of September 30, 2024, Fund has determined that no tax liability is required in its financial statements related to uncertain tax positions for any open tax years (or expected to be taken in future tax years). Open tax years are those that remain subject to examination and are based on the statute of limitations in each jurisdiction in which the Fund invests.
f. Security Transactions, Investment Income, Expenses and Distributions
Security transactions are accounted for on trade date. Realized gains and losses on security transactions are determined on a specific identification basis. Interest Income (including interest income from payment-in-kind securities, if any) and estimated expenses are accrued daily. Dividend income is recorded on the ex-dividend date except for certain dividends from securities where the dividend rate is not available. In such cases, the dividend is recorded as
| franklintempleton.com | Semi-Annual Report | 19 |
FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. Organization and Significant Accounting Policies (continued)
f. Security Transactions, Investment Income, Expenses and Distributions (continued)
soon as the information is received by the Fund. Distributions to shareholders are recorded on the ex-dividend date. Distributable earnings are determined according to income tax regulations (tax basis) and may differ from earnings recorded in accordance with U.S. GAAP. These differences may be permanent or temporary. Permanent differences are reclassified among capital accounts to reflect their tax character. These reclassifications have no impact on net assets or the results of operations. Temporary differences are not reclassified, as they may reverse in subsequent periods.
Common expenses incurred by the Trust are allocated to the Fund based on the ratio of net assets of Fund to the combined net assets of the Trust. Certain Fund specific expenses are allocated directly to the Fund that incurred the expense. These expenses are paid by the Fund or by the investment manager, as applicable, according to the terms of the unified management fee agreement.
g. Accounting Estimates
The preparation of financial statement in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
h. Guarantees and Indemnifications
Under the Trust’s organizational documents, its officers and trustees are indemnified by the Trust against certain liabilities arising out of the performance of their duties to the Trust. Additionally, in the normal course of business, the Trust, on behalf of the Fund, enters into contracts with service providers that contain general indemnification clauses. The Trust’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Trust that have not yet occurred. Currently, the Trust expects the risk of loss to be remote.
2. Shares of Beneficial Interest
Shares of the Fund is issued and redeemed at their respective NAV only in aggregations of a specified number of shares or multiples thereof (Creation Units). Only certain large institutional investors (Authorized Participants) may engage in creation or redemption transactions directly with the Fund. Once created, shares of the Fund generally trade in the secondary market in amounts less than one Creation Unit. The market price of the Fund’s shares will be based on the price in the secondary market which may be at, above or below the most recent NAV. Creation Units may be issued and redeemed in exchange for a designated portfolio of securities and/or cash (which may include cash in lieu of certain securities).
Authorized participants pay a standard transaction fee to the shareholder servicing agent when purchasing or redeeming Creation Units of the Fund regardless of the number of Creation Units that are being created or redeemed on the same day by the Authorized Participant. The standard transaction fee is imposed to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units and is not charged to or paid by the Fund.
In addition, for cash Creation Unit transactions, a variable fee for creation transactions and redemption transactions may be charged to the Authorized Participant to cover certain brokerage, tax, foreign exchange, execution, market impact and other costs and expenses related to the execution of trades. Variable fees, if any, are included in capital share transactions in the Statements of Changes in Net Assets.
| 20 | Semi-Annual Report | franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
2. Shares of Beneficial Interest (continued)
At September 30, 2024, there were an unlimited number of shares authorized (without par value). Transactions in the Fund’s shares were as follows:
| | Six Months Ended
September 30, 2024 | Year Ended
March 31, 2024 |
| | Shares | Amount | Shares | Amount |
| Shares sold | 700,000 | $ 32,664,127 | 7,300,000 | $ 283,808,492 |
| Shares redeemed | (2,350,000) | (112,548,242) | (2,400,000) | (99,138,058) |
| Net increase (decrease) | (1,650,000) | $ (79,884,115) | 4,900,000 | $ 184,670,434 |
3. Transactions with Affiliates
Franklin Resources, Inc. is the holding company for various subsidiaries that together are referred to as Franklin Templeton. Certain officers and trustees of the Fund are also officers and/or directors of the following subsidiaries:
| Subsidiary | Affiliation |
| Franklin Advisers, Inc. (Advisers) | Investment manager |
| Franklin Templeton Institutional, LLC (FT Institutional) | Investment manager |
| Franklin Advisory Services, LLC (FASL) | Investment manager |
| Franklin Templeton Services, LLC (FT Services) | Administrative manager |
| Franklin Distributors, LLC (Distributors) | Principal underwriter |
a. Management fees
The Fund pay a unified management fee to FASL whereby FASL has agreed to reimburse the Fund’s acquired fund fees and expenses (if any) and pay all of the ordinary operating expenses of the Fund, including custody, transfer agency, and Trustee fees and expenses, among others, but excluding payments under the Fund’s Rule 12b-1 plan (if any), brokerage expenses (including any costs incidental to transactions in portfolio securities or instruments), taxes, interest (including borrowing costs and dividend expenses on securities sold short and overdraft charges), litigation expenses (including litigation to which the Trust or a Fund may be a party and indemnification of the Trustees and officers with respect thereto), and other non-routine or extraordinary expenses. The fee is calculated daily and paid monthly according to the terms of the management agreement. The Fund pays gross effective investment management fees 0.03% per year on the average daily net assets of the Fund.
Under a subadvisory agreement, FT Institutional provides subadvisory services to the Fund. The subadvisory fee is paid by FASL based on the Fund’s average daily net assets and is not an additional expense of the Fund.
b. Administrative Fees
Under an agreement with Advisers, FT Services provides administrative services to the Fund. The fee is paid by Advisers based on the Fund’s average daily net assets, and is not an additional expense of the Fund.
| franklintempleton.com | Semi-Annual Report | 21 |
FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
3. Transactions with Affiliates (continued)
c. Investments in Affiliated Management Investment Companies
The Fund invests in one or more affiliated management investment companies. As defined in the 1940 Act, an investment is deemed to be a “Controlled Affiliate” of a fund when a fund owns, either directly or indirectly, 25% or more of the affiliated fund’s outstanding shares or has the power to exercise control over management or policies of such fund. The Fund does not invest for purposes of exercising a controlling influence over the management or policies. Management fees paid by the Fund are waived on assets invested in the affiliated management investment companies, as noted in the Statement of Operations, in an amount not to exceed the management and administrative fees paid directly or indirectly by each affiliate. During the period ended September 30, 2024, investments in affiliated management investment companies were as follows:
| | Value at
Beginning
of Period | Purchases | Sales | Realized
Gain (Loss) | Net Change in
Unrealized
Appreciation
(Depreciation) | Value at
End of
Period | Number
of Shares
Held at
End of
Period | Investment
Income |
Non-Controlled Affiliates | | | | | | | | Dividend
Income |
| Institutional Fiduciary Trust - Money Market Portfolio, 4.74% | $1,132,943 | $11,859,173 | $(12,407,895) | $— | $— | $584,221 | 584,221 | $33,899 |
| | | | | | | | | Income
from
Securities
loaned |
| Institutional Fiduciary Trust - Money Market Portfolio, 4.74% | $93,105 | $1,429,915 | $(1,523,020) | $— | $— | $— | — | $2,158 |
| Total Affiliated Securities | $1,226,048 | $13,289,088 | $(13,930,915) | $— | $— | $584,221 | 584,221 | $36,057 |
d. Other Affiliated Transactions
At September 30, 2024, the shares of Franklin U.S. Equity Index ETF were owned by the following entities:
| Fund | Shares | Percentage of
Outstanding Sharesa |
| Franklin U.S. Equity Index ETF | | |
| Franklin Growth Allocation Fund | 2,510,425 | 11.2% |
| Franklin 529 Portfolios | 14,159,937 | 63.4% |
| | 16,670,362 | 74.6% |
| aInvestment activities of significant shareholders could have a material impact on the Fund. |
4. Income Taxes
For tax purposes, capital losses may be carried over to offset future capital gains, if any. At March 31, 2024, the capital loss carryforwards were as follows:
| | Year Ended
March 31, 2024 | | | |
| Capital loss carryforwards not subject to expiration: | | | | |
| Long term | $ 243,691 | | | |
| Short term | 2,509,918 | | | |
| Total capital loss carryforwards | $ 2,753,609 | | | |
| 22 | Semi-Annual Report | franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
4. Income Taxes (continued)
At September 30, 2024, the cost of investments and net unrealized appreciation (depreciation) for income tax purposes were as follows:
| Cost of investments | $ 832,568,514 | | | |
| Unrealized appreciation | $ 312,064,118 | | | |
| Unrealized depreciation | (22,086,856) | | | |
| Net unrealized appreciation (depreciation) | $ 289,977,262 | | | |
Differences between income and/or capital gains as determined on a book basis and a tax basis are primarily due to differing treatments of in-kind transactions and wash sales.
5. Investment Transactions
Purchases and sales of investments (excluding short term securities and in-kind transactions, if any) for the period ended September 30, 2024, $18,874,819 and $18,584,856, respectively.
In-kind transactions associated with creation and redemptions for the period ended September 30, 2024, $32,361,292 and $111,632,740, respectively.
6. Concentration of Risk
Investing in foreign securities may include certain risks and considerations not typically associated with investing in U.S. securities, such as fluctuating currency values and changing local, regional and global economic, political and social conditions, which may result in greater market volatility. Political and financial uncertainty in many foreign regions may increase market volatility and the economic risk of investing in foreign securities. In addition, certain foreign securities may not be as liquid as U.S. securities.
Russia’s military invasion of Ukraine in February 2022, the resulting responses by the United States and other countries, and the potential for wider conflict could increase volatility and uncertainty in the financial markets and adversely affect regional and global economies. The United States and other countries have imposed broad-ranging economic sanctions on Russia and certain Russian individuals, banking entities and corporations as a response to its invasion of Ukraine. The United States and other countries have also imposed economic sanctions on Belarus and may impose sanctions on other countries that support Russia’s military invasion. These sanctions, as well as any other economic consequences related to the invasion, such as additional sanctions, boycotts or changes in consumer or purchaser preferences or cyberattacks on governments, companies or individuals, may further decrease the value and liquidity of certain Russian securities and securities of issuers in other countries that are subject to economic sanctions related to the invasion. To the extent that the Fund has exposure to Russian investments or investments in countries affected by the invasion, the Fund’s ability to price, buy, sell, receive or deliver such investments was impaired. The Fund could determine at any time that certain of the most affected securities have little or no value. In addition, any exposure that the Fund may have to counterparties in Russia or in countries affected by the invasion could negatively impact the Fund’s portfolio. The extent and duration of Russia’s military actions and the repercussions of such actions (including any retaliatory actions or countermeasures that may be taken by those subject to sanctions) are impossible to predict, but could result in significant market disruptions, including in the oil and natural gas markets, and may negatively affect global supply chains, inflation and global growth. These and any related events could significantly impact the Fund’s performance and the value of an investment in the Fund, even beyond any direct exposure the Fund may have to Russian issuers or issuers in other countries affected by the invasion. The Valuation Committee determined that based on their analysis of the market and access to market participants, the Russian financial instruments held by the Fund had no value at September 30, 2024.
7. Other Derivative Information
At September 30, 2024, the Fund’s investments in derivative contracts are reflected in the Statement of Assets and Liabilities as follows:
| franklintempleton.com | Semi-Annual Report | 23 |
FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
7. Other Derivative Information (continued)
| | Asset Derivatives | | Liability Derivatives |
| | Statement of Assets and
Liabilities Location | Fair Value | | Statement of Assets and
Liabilities Location | Fair Value |
| Equity contracts | Variation margin on futures contracts | $ 17,229a | | Variation margin on futures contracts | $ — |
| aThis amount reflects the cumulative appreciation (depreciation) of future contracts as reported in the Schedule of Investments. Only the variation margin receivable/payable at period end is separately reported within the Statements of Assets and Liabilities. Prior variation margin movements were recorded to cash upon receipt or payment. |
For the period ended September 30, 2024, the effect of derivative contracts in the Fund’s Statement of Operations was as follows:
Derivative Contracts
Not Accounted for as
Hedging Instruments | Statement of
Operations Locations | Net Realized
Gain (Loss)
for the Period | Statement of
Operations Locations | Net Change in
Unrealized
Appreciation
(Depreciation)
for the Period |
| | Net realized gain (loss) from: | | Net change in unrealized
appreciation (depreciation) on: | |
| Equity contracts | Futures contracts | $ 66,267 | Futures contracts | $ (19,516) |
For the period ended September 30, 2024, the average month end notional amount of futures contracts was $1,118,838.
See Note 1(c) regarding derivative financial instruments.
8. Fair Value Measurements
The Fund follows a fair value hierarchy that distinguishes between market data obtained from independent sources (observable inputs) and the Fund’s own market assumptions (unobservable inputs). These inputs are used in determining the value of the Fund’s financial instruments and are summarized in the following fair value hierarchy:
| • | Level 1 – quoted prices in active markets for identical financial instruments |
| • | Level 2 – other significant observable inputs (including quoted prices for similar financial instruments, interest rates, prepayment speed, credit risk, etc.) |
| • | Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of financial instruments) |
The input levels are not necessarily an indication of the risk or liquidity associated with financial instruments at that level.
A summary of inputs used as of September 30, 2024, in valuing the Fund’s assets and liabilities carried at fair value, is as follows:
| | Level 1 | Level 2 | Level 3 | Total |
| Franklin U.S. Equity Index ETF | | | | |
| Assets: | | | | |
| Investments in Securities:a | | | | |
| Equity Investmentsb | $ 1,121,961,555 | $ — | $ —c | $ 1,121,961,555 |
| Short-Term Investments | 584,221 | — | — | 584,221 |
| Total Investments in Securities | $1,122,545,776 | $— | $— | $1,122,545,776 |
| Other Financial Instruments: | | | | |
| Futures Contracts | $ 17,229 | $ — | $ — | $ 17,229 |
| aFor detailed categories, see the accompanying Schedule of Investments. |
| bIncludes common and preferred stocks. |
| cIncludes financial instruments determined to have no value. |
| 24 | Semi-Annual Report | franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
9. Subsequent Events
The Fund has evaluated subsequent events through the issuance of these Financial Statements and determined that no events have occurred that require disclosure.
Abbreviations
| REIT | Real Estate Investment Trust |
| SBA | Small Business Administration |
| franklintempleton.com | Semi-Annual Report | 25 |
| Changes In and Disagreements With Accountants | For the period covered in the report |
Not Applicable.
| Results of Meeting of Shareholders | For the period covered in the report |
Not Applicable.
| Remuneration Paid to Directors, Officers, and Others | For the period covered in the report |
Not applicable. Remuneration paid to directors, officers and others is included as part of the all-inclusive management fee and not paid directly by the fund.
| 26 | Semi-Annual Report | franklintempleton.com |
| Board Approval of Management and Subadvisory Agreements | For the period covered in the report |
FRANKLIN TEMPLETON ETF TRUST
Franklin U.S. Equity Index ETF
(Fund)
At an in-person meeting held on May 29, 2024 (Meeting), the Board of Trustees (Board) of Franklin Templeton ETF Trust (Trust), including a majority of the trustees who are not “interested persons” as defined in the Investment Company Act of 1940 (Independent Trustees), reviewed and approved the continuance of the investment management agreement between Franklin Advisory Services, LLC (Manager) and the Trust, on behalf of the Fund (Management Agreement) for an additional one-year period. The Independent Trustees received advice from and met separately with Independent Trustee counsel in considering whether to approve the continuation of the Management Agreement. The Board also considered that it had approved a new investment sub-advisory agreement between the Manager and Franklin Templeton Institutional, LLC, on behalf of the Fund, that was effective September 11, 2023, for an initial two-year term.
In considering the continuation of the Management Agreement, the Board reviewed and considered information provided by the Manager at the Meeting and throughout the year at meetings of the Board and its committees. The Board also reviewed and considered information provided in response to a detailed set of requests for information submitted to the Manager by Independent Trustee counsel on behalf of the Independent Trustees in connection with the annual contract renewal process. In addition, prior to the Meeting, the Independent Trustees held a virtual contract renewal meeting at which the Independent Trustees first conferred amongst themselves and Independent Trustee counsel about contract renewal matters, and then met with management to request additional information that the Independent Trustees reviewed and considered prior to and at the Meeting. The Board reviewed and considered all of the factors it deemed relevant in approving the continuance of the Management Agreement, including, but not limited to: (i) the nature, extent and quality of the services provided by the Manager; (ii) the investment performance of the Fund, as well as the Fund’s tracking error against a specified benchmark index as of a recent period; (iii) the costs of the services provided and profits realized by the Manager and its affiliates from the relationship with the Fund; (iv) the extent to which economies of scale are realized as the Fund grows; and (v) whether fee levels reflect these economies of scale for the benefit of Fund investors.
In approving the continuance of the Management Agreement, the Board, including a majority of the Independent Trustees, determined, through the exercise of its business judgment, that the terms of the Management Agreement are fair and reasonable and that the continuance of the Management Agreement is in the best interests of the Fund and its shareholders. While attention was given to all information furnished, the following discusses some primary factors relevant to the Board’s determination.
Nature, Extent and Quality of Services
The Board reviewed and considered information regarding the nature, extent and quality of investment management services provided by the Manager and its affiliates to the Fund and its shareholders. This information included, among other things, the qualifications, background and experience of the senior management and investment personnel of the Manager, as well as information on succession planning where appropriate; the structure of investment personnel compensation; oversight of third-party service providers; investment performance reports and related financial information for the Fund; reports on expenses and shareholder services; legal and compliance matters; risk controls; pricing and other services provided by the Manager and its affiliates; and management fees charged by the Manager and its affiliates to US funds and other accounts, including management’s explanation of differences among accounts where relevant. The Board acknowledged the ongoing integration of the Putnam family of funds into the Franklin Templeton (FT) family of funds and management’s continued development of strategies to address areas of heightened concern in the registered fund industry, including various regulatory initiatives and continuing geopolitical concerns.
The Board also reviewed and considered the benefits provided to Fund shareholders of investing in a fund that is part of the FT family of funds. The Board noted the financial position of Franklin Resources, Inc. (FRI), the Manager’s parent, and its commitment to the registered fund business as evidenced by its continued introduction of new funds, reassessment of the fund offerings in response to FT acquisitions and the market environment, as well as project initiatives and capital investments relating to the services provided to the Fund by the FT organization. The Board specifically noted FT’s commitment to technological innovation and advancement, including its initiative to create a new enterprise-wide artificial intelligence platform.
| franklintempleton.com | Semi-Annual Report | 27 |
| Board Approval of Management and Subadvisory Agreements | For the period covered in the report (continued) |
Following consideration of such information, the Board was satisfied with the nature, extent and quality of services provided by the Manager and its affiliates to the Fund and its shareholders.
Fund Performance
The Board reviewed and considered the performance results of the Fund for various time periods ended December 31, 2023. The Board considered the performance returns for the Fund in comparison to the performance returns of registered funds deemed comparable to the Fund included in a universe (Performance Universe) selected by Broadridge Financial Solutions, Inc. (Broadridge), an independent provider of investment company data. The Board received a description of the methodology used by Broadridge to select the registered funds included in a Performance Universe. The Board also reviewed and considered Fund performance reports provided and discussions that occurred with portfolio managers at Board meetings throughout the year. The Board referenced earlier discussions with management on matters related to, among other things, the expansion and rationalization of the overall product line, including investments in novel asset classes, as well as the growth in assets from internal and external clients. In addition, the Board acknowledged information provided regarding management’s strategy to grow market share through the use of innovative data and technology and investments in marketing and distribution. The Board noted management’s high level of client engagement and the strength of its internal audit and compliance program. A summary of the Fund’s performance results is below.
The Performance Universe for the Fund included the Fund and all retail and institutional large-cap core funds and exchange-traded funds. The Fund commenced operations on June 1, 2016, and thus has been in operation for less than 10 years. The Board noted that the Fund’s annualized total return for the one-year period was 27.16% and was above the Performance Universe median, but for the three- and five-year periods was below the median and in the fifth quintile (worst) of its Performance Universe. The Board noted that, although below the median, the Fund’s annualized total return for the three- and five-year periods was 7.22% and 11.27%, respectively. The Board further noted that, in light of the Fund’s use of a “passive” or indexing investment approach, management evaluates the Fund based on its tracking error against a specified benchmark. The Board also noted that for the one-year period ended December 31, 2023, the Fund’s tracking error was within the tolerance anticipated for the Fund. The Board considered the repositioning of the Fund as a low-cost, market capitalization-weighted, index-based ETF investing in large- and mid-capitalization US stocks which effective August 1, 2022, changed its name, ticker symbol, underlying index, investment universe, investment goal and investment strategies. The Board concluded that the Fund’s Management Agreement should be continued for an additional one-year period, while management’s efforts continue to be closely monitored.
Comparative Fees and Expenses
The Board reviewed and considered information regarding the Fund’s actual total expense ratio, noting that the Fund pays a Unified Fee (as defined below). The Board considered the actual total expense ratio and, separately, the contractual management fee rate, without the effect of fee waivers, if any (Management Rate), of the Fund in comparison to the median expense ratio and median Management Rate, respectively, of other exchange-traded funds deemed comparable to and with a similar expense structure to the Fund selected by Broadridge (Expense Group). Broadridge fee and expense data is based upon information taken from each fund’s most recent annual or semi-annual report, which reflects historical asset levels that may be quite different from those currently existing, particularly in a period of market volatility. While recognizing such inherent limitation and the fact that expense ratios and Management Rates generally increase as assets decline and decrease as assets grow, the Board believed the independent analysis conducted by Broadridge to be an appropriate measure of comparative fees and expenses. The Broadridge Management Rate includes administrative charges. The Board received a description of the methodology used by Broadridge to select the exchange-traded funds included in an Expense Group.
The Expense Group for the Fund was comprised of pure index exchange-traded funds, which included the Fund, four other large-cap core funds and two multi-cap core funds. The Board noted that the Management Rate for the Fund was equal to the median of its Expense Group, and the actual total expense ratio for the Fund was below the median of its Expense Group. The Board further noted that the Fund has implemented a unified management fee (Unified Fee) and that pursuant to the Unified Fee arrangement the Manager reimburses the Fund for all of its acquired fund fees and expenses (if any) and pays all of the ordinary operating expenses of the Fund, except for (i) the Fund’s Unified Fee, (ii) future Rule 12b-1 fees, (iii) brokerage expenses, (iv) taxes, (v) interest (including borrowing costs and dividend expenses on securities sold short and overdraft
| 28 | Semi-Annual Report | franklintempleton.com |
| Board Approval of Management and Subadvisory Agreements | For the period covered in the report (continued) |
charges), (vi) litigation expenses (including litigation to which the Trust or the Fund may be a party and indemnification of the Trustees and officers with respect thereto), and (vii) other non-routine or extraordinary expenses. The Board concluded that the Management Rate charged to the Fund is reasonable.
Profitability
The Board reviewed and considered information regarding the profits realized by the Manager and its affiliates in connection with the operation of the Fund. In this respect, the Board considered the Fund profitability analysis provided by the Manager that addresses the overall profitability of FT’s US fund business, as well as its profits in providing investment management and other services to each of the individual Funds during the 12-month period ended September 30, 2023 (the most recent fiscal year-end for FRI). The Board noted that although management continually makes refinements to its methodologies used in calculating profitability in response to organizational and product-related changes, the overall methodology has remained consistent with that used in the Fund’s profitability report presentations from prior years. The Board also noted that an independent registered public accounting firm has been engaged by the Manager to periodically review and assess the allocation methodologies to be used solely by the Fund’s Board with respect to the profitability analysis.
The Board noted management’s belief that costs incurred in establishing the infrastructure necessary for the type of fund operations conducted by the Manager and its affiliates may not be fully reflected in the expenses allocated to the Fund in determining its profitability, as well as the fact that the level of profits, to a certain extent, reflected operational cost savings and efficiencies initiated by management. As part of this evaluation, the Board considered management’s outsourcing of certain operations, which effort has required considerable up-front expenditures by the Manager but, over the long run, is expected to result in greater efficiencies. The Board also noted management’s expenditures in improving shareholder services provided to the Fund, as well as the need to implement systems and meet additional regulatory and compliance requirements resulting from recent US Securities and Exchange Commission and other regulatory requirements.
The Board also considered the extent to which the Manager and its affiliates might derive ancillary benefits from fund operations, including potential benefits resulting from personnel and systems enhancements necessitated by fund growth, as well as increased leverage with service providers and counterparties. Based upon its consideration of all these factors, the Board concluded that the level of profits realized by the Manager and its affiliates from providing services to the Fund was not excessive in view of the nature, extent and quality of services provided to the Fund.
Economies of Scale
The Board reviewed and considered the extent to which the Manager may realize economies of scale, if any, as the Fund grows larger and whether the Fund’s management fee structure reflects any economies of scale for the benefit of shareholders. The Board considered that the Fund would likely experience benefits from the Unified Fee at the Fund’s projected asset levels because of the Manager’s contractual requirement to bear most of the Fund’s ordinary operating expenses. The Board noted that, under the Unified Fee, it is not anticipated that the Fund will generate significant, if any, profit for the Manager and/or its affiliates for some time. The Board also considered the Manager’s view that any analyses of potential economies of scale in managing a particular fund are inherently limited in light of the joint and common costs and investments the Manager incurs across the FT family of funds as a whole. The Board noted that, as of December 31, 2023, the Fund’s net assets were approximately $1.01 billion. The Board also noted management’s representation that for the fiscal year ended September 30, 2023, the Fund did not experience a profit. The Board concluded that to the extent economies of scale may be realized by the Manager and its affiliates, the Fund’s management fee structure provided a sharing of benefits with the Fund and its shareholders as the Fund grows.
Conclusion
Based on its review, consideration and evaluation of all factors it believed relevant, including the above-described factors and conclusions, the Board unanimously approved the continuation of the Management Agreement for an additional one-year period.
| franklintempleton.com | Semi-Annual Report | 29 |
© 2024 Franklin Templeton Investments. All rights reserved.
Franklin FTSE
Russia ETF
Financial Statements and Other Important Information
| Semi-Annual | September 30, 2024 |
| Semi-Annual Report | franklintempleton.com |
Franklin Templeton ETF Trust
Financial Highlights
Franklin FTSE Russia ETF
| | Six Months Ended
September 30, 2024
(unaudited) | Year Ended March 31, |
| | 2024 | 2023 | 2022 | 2021 | 2020 |
| Per share operating performance | | | | | | |
| (for a share outstanding throughout the period) | | | | | | |
| Net asset value, beginning of period | $0.01a | $0.01a | $—b | $26.98 | $18.91 | $23.37 |
| Income from investment operationsc: | | | | | | |
| Net investment income (loss)d | (—)b | —b | —b | 1.68 | 1.41 | 1.73 |
| Net realized and unrealized gains (losses) | —b | —b | 0.01a | (27.28) | 8.34 | (4.44) |
| Total from investment operations | —b | —b | 0.01a | (25.60) | 9.75 | (2.71) |
| Less distributions from net investment income | — | — | — | (1.38) | (1.68) | (1.75) |
| Net asset value, end of period | $0.01a | $0.01a | $0.01a | $—b | $26.98 | $18.91 |
| Total returne | (0.92)%f | 1.52%g | 73.56%h | (100.00)% | 52.27% | (13.90)% |
| Ratios to average net assetsi | | | | | | |
| Expenses before waiver and payments by affiliates | 0.19% | 0.19% | 0.19% | 0.19% | 0.19% | 0.19% |
| Expenses net of waiver and payments by affiliates | —% | —% | —% | 0.19% | 0.19% | 0.19% |
| Net investment income (loss) | (1.85)% | 1.52% | 49.38%j | 6.19% | 6.02% | 6.49% |
| Supplemental data | | | | | | |
| Net assets, end of period (000’s) | $5 | $5 | $5 | $3 | $10,794 | $13,240 |
| Portfolio turnover ratek | —%l | —%l | —%l | 20.45%l | 18.82%l | 15.74%l |
| aActual amount less than $0.01 per share. Amount shown reflects effect of rounding. |
| bAmount rounds to less than $0.005 per share. |
| cThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of Creation Unit Fund shares in relation to income earned and/or fluctuating fair value of the investments of the Fund. |
| dBased on average daily shares outstanding. |
| eTotal return is not annualized for periods less than one year. Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. |
| fThe amount shown above reflects the Fund’s unrounded NAV per share decreasing from $0.005946 as of March 31, 2024 to $0.005891 as of September 30, 2024. |
| gThe amount shown above reflects the Fund’s unrounded NAV per share increasing from $0.005857 as of March 31, 2023 to $0.005946 as of March 31, 2024. |
| hThe amount shown above reflects the Fund’s unrounded NAV per share increasing from $0.003378 as of March 31, 2022 to $0.005857 as of March 31, 2023. |
| iRatios are annualized for periods less than one year. |
| j47.52% of this amount represents income from refunds of foreign tax withheld included in net investment income. |
| kPortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash ("Cash creations"). |
| lPortfolio turnover rate excluding cash creations was as follows: | — | — | — | 20.45% | 18.82% | 15.74% |
| franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Semi-Annual Report | 1 |
Franklin Templeton ETF Trust
Schedule of Investments, September 30, 2024 (unaudited)
Franklin FTSE Russia ETF
| | | Industry | Shares | | Value |
| | Common Stocks 0.0% | | | | |
| a,b,c | Russia 0.0% | | | | |
| | Aeroflot PJSC | Passenger Airlines | 174,496 | | $ — |
| | Alrosa PJSC | Metals & Mining | 361,232 | | — |
| | Credit Bank of Moscow PJSC | Banks | 2,127,840 | | — |
| | Federal Grid Co-Rosseti PJSC | Electric Utilities | 80,095,477 | | — |
| | Gazprom PJSC | Oil, Gas & Consumable Fuels | 981,872 | | — |
| | GMK Norilskiy Nickel PAO | Metals & Mining | 288,800 | | — |
| | Inter RAO UES PJSC | Electric Utilities | 6,229,280 | | — |
| | LUKOIL PJSC | Oil, Gas & Consumable Fuels | 36,048 | | — |
| | M.Video PJSC | Specialty Retail | 8,000 | | — |
| | Magnit PJSC | Consumer Staples Distribution & Retail | 8,112 | | — |
| | Magnitogorsk Iron & Steel Works PJSC | Metals & Mining | 370,640 | | — |
| | Mobile TeleSystems PJSC | Wireless Telecommunication Services | 147,584 | | — |
| | Moscow Exchange MICEX-RTS PJSC | Capital Markets | 253,248 | | — |
| | Mosenergo PJSC | Electric Utilities | 1,418,704 | | — |
| | Novatek PJSC | Oil, Gas & Consumable Fuels | 47,472 | | — |
| | Novolipetsk Steel PJSC | Metals & Mining | 200,944 | | — |
| | PhosAgro PJSC | Chemicals | 6,208 | | — |
| | Polyus PJSC | Metals & Mining | 3,504 | | — |
| | Raspadskaya OJSC | Metals & Mining | 10,720 | | — |
| | Rosneft Oil Co. PJSC | Oil, Gas & Consumable Fuels | 92,320 | | — |
| | Rostelecom PJSC | Diversified Telecommunication Services | 165,056 | | — |
| | RusHydro PJSC | Electric Utilities | 20,149,712 | | — |
| | Sberbank of Russia PJSC | Banks | 959,968 | | — |
| d | Segezha Group PJSC | Paper & Forest Products | 666,096 | | — |
| | Severstal PAO | Metals & Mining | 27,744 | | — |
| | Sistema AFK PAO | Wireless Telecommunication Services | 499,664 | | — |
| | Sovcomflot PJSC | Oil, Gas & Consumable Fuels | 72,128 | | — |
| | Surgutneftegas PJSC | Oil, Gas & Consumable Fuels | 634,480 | | — |
| | Tatneft PJSC | Oil, Gas & Consumable Fuels | 105,552 | | — |
| | Unipro PJSC | Independent Power Producers & Energy Traders | 1,811,376 | | — |
| | United Co. RUSAL International PJSC | Metals & Mining | 447,600 | | — |
| | VTB Bank PJSC | Banks | 177,271 | | — |
| | Total Common Stocks (Cost $21,363,101) | | | | — |
| | Preferred Stocks 0.0% | | | | |
| a,b,c | Russia 0.0% | | | | |
| | Bashneft PJSC, pfd. | Oil, Gas & Consumable Fuels | 3,392 | | — |
| | Surgutneftegas PJSC, pfd. | Oil, Gas & Consumable Fuels | 682,080 | | — |
| | Tatneft PJSC, pfd. | Oil, Gas & Consumable Fuels | 10,416 | | — |
| | Transneft PJSC, pfd. | Oil, Gas & Consumable Fuels | 27,600 | | — |
| | Total Preferred Stocks (Cost $1,113,686) | | | | — |
| | Total Investments (Cost $22,476,787) 0.0% | | | | — |
| | Other Assets, less Liabilities 100.0% | | | | 4,719 |
| | Net Assets 100.0% | | | | $ 4,719 |
| aNon-income producing. |
| bFair valued using significant unobservable inputs. See Note 8 regarding fair value measurements. |
| cSee Note 6 regarding investments in Russian securities. |
| dSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At September 30, 2024, the value of was $0, representing 0.0% of net assets. |
| 2 | Semi-Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
FINANCIAL STATEMENTS
Statement of Assets and Liabilities
September 30, 2024 (unaudited)
| Assets: | |
| Investments in securities: | |
| Cost – Unaffiliated issuers | $ 22,476,787 |
| Value – Unaffiliated issuers | $ — |
| Cash | 4,719 |
| Total assets | 4,719 |
| Liabilities: | |
| Total liabilities | — |
| Net assets, at value | $ 4,719 |
| Net assets consist of: | |
| Paid-in capital | $ 23,214,723 |
| Total distributable earnings (loss) | (23,210,004) |
| Net assets, at value | $ 4,719 |
| Shares outstanding | 800,000 |
| Net asset value per share | $0.01a |
| aActual amount less than $0.01 per share. Amount shown reflects effect of rounding. |
| franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Semi-Annual Report | 3 |
FRANKLIN TEMPLETON ETF TRUST
FINANCIAL STATEMENTS
Statement of Operations
for the period ended September 30, 2024 (unaudited)
| Investment income: | |
| Other incomea | $ (44) |
| Total investment income | (44) |
| Expenses: | |
| Management fees (Note 3a) | 5 |
| Total expenses | 5 |
| Expenses waived/paid by affiliates (Note 3a) | (5) |
| Net investment income | (44) |
| Realized and unrealized gains (losses): | |
| Net realized gain (loss) from: | |
| Investments: | |
| Net realized gain (loss) | — |
| Net change in unrealized appreciation (depreciation) on: | |
| Investments: | |
| Net change in unrealized appreciation (depreciation) | — |
| Net realized and unrealized gain (loss) | — |
| Net increase (decrease) in net assets resulting from operations | $(44) |
| aIncludes reversal of receivable related to the prior year ended March 2023 in the current reporting period. |
| 4 | Semi-Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
Franklin Templeton ETF Trust
Financial Statements
Statements of Changes in Net assets
| | Six Months Ended
September 30, 2024
(unaudited) | Year Ended
March 31, 2024
|
| Increase (decrease) in net assets: | | |
| Operations: | | |
| Net investment income (loss) | $ (44) | $ 72 |
| Net increase (decrease) in net assets resulting from operations | (44) | 72 |
| Net increase (decrease) in net assets | (44) | 72 |
| Net assets: | | |
| Beginning of period | 4,763 | 4,691 |
| End of period | $ 4,719 | $ 4,763 |
| franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Semi-Annual Report | 5 |
Franklin Templeton ETF Trust
Financial Statements
Statement of Cash Flows
for the period ended September 30, 2024
| | Franklin FTSE
Russia ETF |
| Cash Flows from Operating Activities | |
| Net decrease in net assets resulting from operations | $ (44) |
| Decrease in miscellaneous receivable | 164 |
| Net cash provided by operating activities | 120 |
| Cash Flows from Financing Activities | |
| Net change in cash | 120 |
| Cash/(bank overdraft) at beginning of period | 4,599 |
| Cash at end of period | $4,719 |
| |
| 6 | Semi-Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
Notes to Financial Statements (unaudited)
1. Organization and Significant Accounting Policies
Franklin Templeton ETF Trust (Trust) is registered under the Investment Company Act of 1940 (1940 Act) as an open-end management investment company consisting of forty-nine separate funds, one of which is included in this report (Fund) and applies the specialized accounting and reporting guidance in U.S. Generally Accepted Accounting Principles (U.S. GAAP), including, but not limited to, ASC 946. The Fund follows the accounting and reporting guidance in Financial Accounting Standards Board ("FASB") Accounting Standard Codification Topic 946, Financial Services - Investment Companies ("ASC 946"). The Fund seeks to provide the investment results that closely correspond, before fees and expenses, to the performance of the Fund’s underlying index.
The following summarizes the Fund’s significant accounting policies.
a. Financial Instrument Valuation
The Fund’s investments in financial instruments are carried at fair value daily. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. The Fund calculates the net asset value (NAV) per share each business day as of 4 p.m. Eastern time or the regularly scheduled close of the New York Stock Exchange (NYSE), whichever is earlier. Under compliance policies and procedures approved by the Trust’s Board of Trustees (the Board), the Board has designated the Fund’s investment manager as the valuation designee and has responsibility for oversight of valuation. The investment manager is assisted by the Fund’s administrator in performing this responsibility, including leading the cross-functional Valuation Committee (VC).
The Fund may utilize independent pricing services, quotations from securities and financial instrument dealers, and other market sources to determine fair value.
Equity securities and derivative financial instruments listed on an exchange or on the NASDAQ National Market System are valued at the last quoted sale price or the official closing price of the day, respectively. Foreign equity securities are valued as of the close of trading on the foreign stock exchange on which the security is primarily traded or as of 4 p.m. Eastern time. The value is then converted into its U.S. dollar equivalent at the foreign exchange rate in effect at 4 p.m. London time on the day that the value of the security is determined. Over-the-counter (OTC) securities are valued within the range of the most recent quoted bid and ask
prices. Securities that trade in multiple markets or on multiple exchanges are valued according to the broadest and most representative market. Certain equity securities are valued based upon fundamental characteristics or relationships to similar securities.
The Fund has procedures to determine the fair value of financial instruments for which market prices are not reliable or readily available. Under these procedures, the Fund primarily employs a market-based approach which may use related or comparable assets or liabilities, recent transactions, market multiples, book values, and other relevant information for the investment to determine the fair value of the investment. An income-based valuation approach may also be used in which the anticipated future cash flows of the investment are discounted to calculate fair value. Discounts may also be applied due to the nature or duration of any restrictions on the disposition of the investments. Due to the inherent uncertainty of valuations of such investments, the fair values may differ significantly from the values that would have been used had an active market existed.
Trading in securities on foreign securities stock exchanges and OTC markets may be completed before 4 p.m. Eastern time. In addition, trading in certain foreign markets may not take place on Fund’s business day. Occasionally, events occur between the time at which trading in a foreign security is completed and 4 p.m. Eastern time that might call into question the reliability of the value of a portfolio security held by the Fund. As a result, differences may arise between the value of the Fund’s portfolio securities as determined at the foreign market close and the latest indications of value at 4 p.m. Eastern time. In order to minimize the potential for these differences, an independent pricing service may be used to adjust the Fund’s portfolio securities to the latest indications of fair value at 4 p.m.
When the last day of the reporting period is a non-business day, certain foreign markets may be open on those days that the Fund’s NAV is not calculated, which could result in differences between the value of the Fund’s portfolio securities on the last business day and the last calendar day of the reporting period. Any significant security valuation changes due to an open foreign market are adjusted and reflected by the Fund for financial reporting purposes.
b. Foreign Currency Translation
Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars based on the exchange rate of such currencies
| franklintempleton.com | Semi-Annual Report | 7 |
FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. Organization and Significant Accounting Policies (continued)
b. Foreign Currency Translation (continued)
against U.S. dollars on the date of valuation. The Fund may enter into foreign currency exchange contracts to facilitate transactions denominated in a foreign currency. Purchases and sales of securities, income and expense items denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date. Portfolio securities and assets and liabilities denominated in foreign currencies contain risks that those currencies will decline in value relative to the U.S. dollar. Occasionally, events may impact the availability or reliability of foreign exchange rates used to convert the U.S. dollar equivalent value. If such an event occurs, the foreign exchange rate will be valued at fair value using procedures approved by the Board.
The Fund does not separately report the effect of changes in foreign exchange rates from changes in market prices on securities held. Such changes are included in net realized and unrealized gain or loss from investments in the Statements of Operations.
Realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions and the difference between the recorded amounts of dividends, interest, and foreign withholding taxes and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in foreign exchange rates on foreign denominated assets and liabilities other than investments in securities held at the end of the reporting period.
c. Derivative Financial Instruments
During the six months ended September 30, 2024, the Fund did not invest in derivative instruments.
d. Income and Deferred Taxes
It is the Fund’s policy to qualify as a regulated investment company under the Internal Revenue Code. The Fund intends to distribute to shareholders substantially all of its taxable income and net realized gains to relieve it from federal income and excise taxes. As a result, no provision for U.S. federal income taxes is required.
The Fund may be subject to foreign taxation related to income received, capital gains on the sale of securities and
certain foreign currency transactions in the foreign jurisdictions in which the Fund invests. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Fund invest. When a capital gain tax is determined to apply, Fund records an estimated deferred tax liability in an amount that would be payable if the securities were disposed of on the valuation date.
The Fund may recognize an income tax liability related to its uncertain tax positions under U.S. GAAP when the uncertain tax position has a less than 50% probability that it will be sustained upon examination by the tax authorities based on its technical merits. As of September 30, 2024, the Fund has determined that no tax liability is required in its financial statements related to uncertain tax positions for any open tax years (or expected to be taken in future tax years). Open tax years are those that remain subject to examination and are based on the statute of limitations in each jurisdiction in which the Fund invests.
e. Security Transactions, Investment Income, Expenses and Distributions
Security transactions are accounted for on trade date. Realized gains and losses on security transactions are determined on a specific identification basis. Interest income (including interest income from payment-in-kind securities, if any) and estimated expenses are accrued daily. Amortization of premium and accretion of discount on debt securities are included in interest income. Dividend income and capital gain distributions are recorded on the ex-dividend date except for certain dividends from securities where the dividend rate is not available. In such cases, the dividend is recorded as soon as the information is received by the Fund. Distributions from realized capital gains and other distributions, if any, are recorded on the ex-dividend date. Distributable earnings are determined according to income tax regulations (tax basis) and may differ from earnings recorded in accordance with U.S. GAAP. These differences may be permanent or temporary. Permanent differences are reclassified among capital accounts to reflect their tax character. These reclassifications have no impact on net assets or the results of operations. Temporary differences are not reclassified, as they may reverse in subsequent periods.
Common expenses incurred by the Trust are allocated to the Fund based on the ratio of net assets of Fund to the combined net assets of the Trust. Certain Fund specific expenses are allocated directly to the Fund that incurred the
| 8 | Semi-Annual Report | franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. Organization and Significant Accounting Policies (continued)
e. Security Transactions, Investment Income, Expenses and Distributions (continued)
expense. These expenses are paid by the Fund or by the investment manager, as applicable, according to the terms of the unified management fee agreement.
f. Accounting Estimates
The preparation of financial statement in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
g. Guarantees and Indemnifications
Under the Trust’s organizational documents, its officers and trustees are indemnified by the Trust against certain liabilities arising out of the performance of their duties to the Trust. Additionally, in the normal course of business, the Trust, on behalf of the Fund, enters into contracts with service providers that contain general indemnification clauses. The Trust’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Trust that have not yet occurred. Currently, the Trust expects the risk of loss to be remote.
2. Shares of Beneficial Interest
Shares of the Fund are issued and redeemed at their respective NAV only in aggregations of a specified number of shares or multiples thereof (Creation Units). Only certain large institutional investors (Authorized Participants) may engage in creation or redemption transactions directly with the Fund. Once created, shares of the Fund generally trade in the secondary market in amounts less than one Creation Unit. The market price of the Fund’s shares will be based on the price in the secondary market which may be at, above or below the most recent NAV. Creation Units may be issued and redeemed in exchange for a designated portfolio of securities and/or cash (which may include cash in lieu of certain securities).
Authorized Participants pay a standard transaction fee to the shareholder servicing agent when purchasing or redeeming Creation Units of the Fund regardless of the number of Creation Units that are being created or redeemed on the same day by the Authorized Participant. The standard transaction fee is imposed to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units and is not charged to or paid by the Fund.
In addition, for cash Creation Unit transactions, a variable fee for creation transactions and redemption transactions may be charged to the Authorized Participant to cover certain brokerage, tax, foreign exchange, execution, market impact and other costs and expenses related to the execution of trades. Variable fees, if any, are included in capital share transactions in the Statements of Changes in Net Assets.
At September 30, 2024, there were an unlimited number of shares authorized (without par value). Effective March 1, 2022, the Fund suspended new creations of its shares in light of ongoing issues related to Russia’s invasion of Ukraine. In addition, effective March 4, 2022, NYSE Arca halted trading of the Fund. On December 23, 2022, the SEC granted exemptive relief to the Fund permitting the Fund to suspend the right of redemption with respect to shares of the Fund and, if necessary, postpone the date of payment of redemption proceeds with respect to redemption orders received but not yet paid until the Fund completes the liquidation of its portfolio and distributes all its assets to remaining shareholders. The Fund was delisted from NYSE Arca effective December 27, 2022.
3. Transactions with Affiliates
Franklin Resources, Inc. is the holding company for various subsidiaries that together are referred to as Franklin Templeton. Certain officers and trustees of the Fund are also officers and/or directors of the following subsidiaries:
| franklintempleton.com | Semi-Annual Report | 9 |
FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
3. Transactions with Affiliates (continued)
| Subsidiary | Affiliation |
| Franklin Advisory Services, LLC (FASL) | Investment manager |
| Franklin Templeton Institutional, LLC (FT Institutional) | Investment manager |
| Franklin Templeton Services, LLC (FT Services) | Administrative manager |
| Franklin Distributors, LLC (Distributors) | Principal underwriter |
a. Management fees
The Fund pays a unified management fee to FASL whereby FASL has agreed to reimburse the Fund’s acquired fund fees and expenses (if any) and pay all of the ordinary operating expenses of the Fund, including custody, transfer agency, and Trustee fees and expenses, among others, but excluding payments under the Fund’s Rule 12b-1 plan (if any), brokerage expenses (including any costs incidental to transactions in portfolio securities or instruments), taxes, interest (including borrowing costs and dividend expenses on securities sold short and overdraft charges), litigation expenses (including litigation to which the Trust or a Fund may be a party and indemnification of the Trustees and officers with respect thereto), and other non-routine or extraordinary expenses. Effective March 1, 2022, FASL implemented a waiver of its management fee for the Fund, which will continue in effect while the Fund liquidates. The Fund’s contractual unified management fee is 0.19% per year on the average daily net assets of the Fund. FASL waived its management fee for the period.
Under a subadvisory agreement, FT Institutional provides subadvisory services to the Fund. The subadvisory fee is paid by FASL based on the Fund’s average daily net assets and is not an additional expense of the Fund.
b. Administrative Fees
Under an agreement with FASL, FT Services provides administrative services to the Fund. The fee is paid by FASL based on the Fund’s average daily net assets, and is not an additional expense of the Fund.
4. Income Taxes
For tax purposes, capital losses may be carried over to offset future capital gains. At March 31, 2024, the capital loss carryforwards were as follows:
| | Year Ended
March 31, 2024 | | | |
| Capital loss carryforwards not subject to expiration: | | | | |
| Long term | $ 313,328 | | | |
| Short term | 235,236 | | | |
| Total capital loss carryforwards | $ 548,564 | | | |
At September 30, 2024, the cost of investments and net unrealized appreciation (depreciation) for income tax purposes were as follows:
| Cost of investments | $ 22,661,468 | | | |
| Unrealized appreciation | $ — | | | |
| Unrealized depreciation | (22,661,468) | | | |
| Net unrealized appreciation (depreciation) | $ (22,661,468) | | | |
Differences between income and/or capital gains as determined on a book basis and a tax basis are primarily due to wash sales.
5. Investment Transactions
There were no purchases and sales of investments for the period ended September 30, 2024.
| 10 | Semi-Annual Report | franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
6. Concentration of Risk
Investing in foreign securities may include certain risks and considerations not typically associated with investing in U.S. securities, such as fluctuating currency values and changing local, regional and global economic, political and social conditions, which may result in greater market volatility. Political and financial uncertainty in many foreign regions may increase market volatility and the economic risk of investing in foreign securities. In addition, certain foreign securities may not be as liquid as U.S. securities.
Russia’s military invasion of Ukraine in February 2022, the resulting responses by the United States and other countries, and the potential for wider conflict has increased volatility and uncertainty in the financial markets and adversely affected the Fund. The United States and other countries and certain international organizations have imposed broad-ranging economic sanctions on Russia and certain Russian individuals, banking entities and corporations as a response to Russia’s invasion of Ukraine. These sanctions froze certain Russian assets and prohibited, among other things, trading in certain Russian securities and doing business with specific Russian corporate entities, large financial institutions, officials and oligarchs. The sanctions also included the removal of some Russian banks from the Society for Worldwide Interbank Financial Telecommunications (SWIFT), the electronic network that connects banks globally, and imposed restrictive measures to prevent the Russian Central Bank from undermining the impact of the sanctions. A number of large corporations and U.S. states also announced plans to divest interests or otherwise curtail business dealings with certain Russian businesses. In response, the government of Russia imposed capital controls to restrict movements of capital entering and exiting the country. These sanctions and any additional sanctions or other intergovernmental actions that may be undertaken against Russia may result in the devaluation of the Russian currency and a downgrade in the country’s credit rating. Ongoing developments related to the war have caused and may continue to cause severe declines in the value and liquidity of Russian securities. As a result, the Fund’s ability to price, buy, sell, receive or deliver Russian investments has been severely impaired. For example, the Fund may be prohibited from investing in or acquiring securities issued by companies subject to such sanctions. In addition, the sanctions may require the Fund to freeze its existing investments in companies operating in or having dealings with Russia, which would prevent the Fund from selling or delivering these investments. Further, any exposure that the Fund may have to Russian counterparties could negatively impact the Fund’s portfolio. The liquidation of Fund assets during this time may also result in the Fund receiving substantially lower prices for its securities. The extent and duration of Russia’s military actions and the repercussions of such actions are impossible to predict, but could result in significant market disruptions, including in the oil and natural gas markets, and may negatively affect global supply chains, inflation and global growth. These and any related events have adversely affected the value and liquidity of the Fund’s holdings and may continue to significantly impact the Fund’s performance and the value of an investment in the Fund. These as well as any other consequences to Russia, such as additional sanctions, boycotts or changes in consumer or purchaser preferences or cyberattacks on the Russian government, companies or individuals, along with any retaliatory actions or countermeasures that may be taken by Russia (including cyberattacks on other governments, corporations or individuals), may further decrease the value and liquidity of Russian securities. Additionally, due to current and potential future sanctions or market closures impacting the ability to trade or transfer Russian securities, the Fund may experience higher transaction costs. During this time, the Fund will not meet its investment goal and will experience significant tracking error. These circumstances could also have adverse tax, regulatory and/or other consequences to the Fund.
At September 30, 2024, the Franklin FTSE Russia ETF had 100% of its security holdings invested in securities with significant economic risk or exposure to Russia. The Valuation Committee determined that based on their analysis of the market and access to market participants, the Russian financial instruments held by the Fund had no value at September 30, 2024.
7. Plan of Liquidation
Russia’s large-scale invasion of Ukraine on February 24, 2022 has led to economic sanctions on certain Russian individuals and Russian corporate and banking entities, the imposition of capital controls in Russia, and the closure of Russian securities markets. Previously, on March 1, 2022, the Fund suspended new creations of its shares in light of circumstances involving Russia and Ukraine and trading in the Fund was halted by the Fund’s listing exchange, NYSE Arca, Inc. (“NYSE Arca”), prior to market open on March 4, 2022. All of the Fund’s security holdings had significant economic risk or exposure to Russia. The Fund fair valued all Russian equity securities at $0 as of September 30, 2024, such securities continue to be fair valued at $0).
| franklintempleton.com | Semi-Annual Report | 11 |
FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
7. Plan of Liquidation (continued)
Accordingly, as of September 30, 2024, the Fund’s portfolio is comprised of Russian equity securities (currently fair valued at $0 as noted above) and USD cash.
On July 20, 2022, the Board of Trustees of the Trust (the “Board”) unanimously voted to close and liquidate the Fund, contingent on receiving any necessary relief from the U.S. Securities and Exchange Commission (“SEC”). On December 23, 2022, the SEC granted exemptive relief to the Fund permitting the Fund to suspend the right of redemption with respect to shares of the Fund and, if necessary, postpone the date of payment of redemption proceeds with respect to redemption orders received but not yet paid until the Fund completes the liquidation of its portfolio and distributes all its assets to remaining shareholders. The Fund was delisted from NYSE Arca effective December 27, 2022.
The Fund is in the process of liquidating its assets and winding up its business pursuant to a plan of liquidation. The Fund may make one or more liquidating distributions. It is possible that the liquidation of the Fund will take an extended period of time if circumstances involving Russian securities do not improve. While the Fund is in the process of liquidating its portfolio, the Fund will hold cash and securities that may not be consistent with the Fund’s investment goal and strategies. Additionally, the Fund’s underlying index was discontinued effective February 28, 2024. Furthermore, because of the delisting of the Fund by NYSE Arca and the liquidation of the Fund, the Fund is no longer an exchange-traded fund. Upon payment of the final liquidating distribution, it is anticipated that the Fund will be terminated.
The Fund may be terminated at any time, at the discretion of the Board, even if not all of the Russian securities have been sold. Due to the uncertainty involved, there can be no assurance that shareholders will receive any liquidating distribution relating to any unsold Russian securities.
8. Fair Value Measurements
The Fund follows a fair value hierarchy that distinguishes between market data obtained from independent sources (observable inputs) and the Fund’s own market assumptions (unobservable inputs). These inputs are used in determining the value of the Fund’s financial instruments and are summarized in the following fair value hierarchy:
| • | Level 1 – quoted prices in active markets for identical financial instruments |
| • | Level 2 – other significant observable inputs (including quoted prices for similar financial instruments, interest rates, prepayment speed, credit risk, etc.) |
| • | Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of financial instruments) |
The input levels are not necessarily an indication of the risk or liquidity associated with financial instruments at that level.
A summary of inputs used as of September 30, 2024, in valuing the Fund’s assets and liabilities carried at fair value, is as follows:
| | Level 1 | Level 2 | Level 3 | Total |
| Franklin FTSE Russia ETF | | | | |
| Assets: | | | | |
| Investments in Securities:a | | | | |
| Equity Investmentsb | $ — | $ — | $ —c | $ — |
| aFor detailed categories, see the accompanying Schedules of Investments. |
| bIncludes common and preferred stocks, warrants, as well as other equity investments. |
| cIncludes financial instruments determined to have no value. |
9. Subsequent Events
The Fund has evaluated subsequent events through the issuance of these Financial Statements and determined that no events have occurred that require disclosure.
| 12 | Semi-Annual Report | franklintempleton.com |
| Changes In and Disagreements With Accountants | For the period covered in the report |
Not Applicable.
| Results of Meeting of Shareholders | For the period covered in the report |
Not Applicable.
| Remuneration Paid to Directors, Officers, and Others | For the period covered in the report |
Not applicable. Remuneration paid to directors, officers and others is included as part of the all-inclusive management fee and not paid directly by the fund.
| franklintempleton.com | Semi-Annual Report | 13 |
| Board Approval of Management and Subadvisory Agreements | For the period covered in the report |
FRANKLIN TEMPLETON ETF TRUST
Franklin FTSE Russia ETF
(Fund)
At an in-person meeting held on May 29, 2024 (Meeting), the Board of Trustees (Board) of Franklin Templeton ETF Trust (Trust), including a majority of the trustees who are not “interested persons” as defined in the Investment Company Act of 1940 (Independent Trustees), reviewed and approved the continuance of the investment management agreement between Franklin Advisory Services, LLC (Manager) and the Trust, on behalf of the Fund (Management Agreement) for an additional one-year period pending the liquidation of the Fund. The Independent Trustees received advice from and met separately with Independent Trustee counsel in considering whether to approve the continuation of the Management Agreement. The Board also considered that it had previously approved a new investment sub-advisory agreement between the Manager and Franklin Templeton Institutional, LLC, on behalf of the Fund, that was effective September 11, 2023, for an initial two-year term.
In considering the continuation of the Management Agreement, the Board reviewed and considered information provided by the Manager with respect to the Manager’s ongoing efforts to liquidate the remaining holdings in the Fund’s portfolio. The Board also considered, among other things, that (i) the Fund had been delisted by NYSE Arca, Inc. (NYSE Arca) in connection with the pending liquidation of the Fund and that trading in the Fund on NYSE Arca had been halted since March 4, 2022; (ii) the Fund had no tracking error information for 2023 in light of its pending liquidation and that the Fund’s underlying index was discontinued as of February 28, 2024; (iii) the Manager has implemented a voluntary waiver of its unified management fee for the Fund; and (iv) as of December 31, 2023, the Fund had net assets below $5,000 in light of the pending liquidation.
Based on its review, consideration and evaluation of all factors it believed relevant, including the above-described factors, the Board unanimously approved the continuation of the Management Agreement for an additional one-year period in light of the pending liquidation of the Fund.
| 14 | Semi-Annual Report | franklintempleton.com |
© 2024 Franklin Templeton Investments. All rights reserved.
| ITEM 8. | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES. |
The information is disclosed as part of the Financial Statements included in Item 7 of this Form N-CSR.
| ITEM 9. | PROXY DISCLOSURES FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES. |
The information is disclosed as part of the Financial Statements included in Item 7 of this Form N-CSR.
| ITEM 10. | REMUNERATION PAID TO DIRECTORS, OFFICERS, AND OTHERS OF OPEN-END MANAGEMENT INVESTMENT COMPANIES. |
The information is disclosed as part of the Financial Statements included in Item 7 of this Form N-CSR.
| ITEM 11. | STATEMENT REGARDING BASIS FOR APPROVAL OF INVESTMENT ADVISORY CONTRACT. |
The information is disclosed as part of the Financial Statements included in Item 7 of this Form N-CSR, as applicable.
| ITEM 12. | DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. |
Not applicable.
| ITEM 13. | PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES. |
Not applicable.
| ITEM 14. | PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. |
Not applicable.
| ITEM 15. | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. |
There have been no changes to the procedures by which shareholders may recommend nominees to the Registrant’s Board of Trustees that would require disclosure herein.
| ITEM 16. | CONTROLS AND PROCEDURES. |
| (a) | Evaluation of Disclosure Controls and Procedures. The Registrant maintains disclosure controls and procedures that are designed to provide reasonable assurance that information required to be disclosed in the Registrant’s filings under the Securities Exchange Act of 1934, as amended, and the Investment Company Act of 1940 is recorded, processed, summarized and reported within the periods specified in the rules and forms of the Securities and Exchange Commission. Such information is accumulated and communicated to the Registrant’s management, including its principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure. The Registrant’s management, including the principal executive officer and the principal financial officer, recognizes that any set of controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. |
Within 90 days prior to the filing date of this Shareholder Report on Form N-CSRS, the Registrant had carried out an evaluation, under the supervision and with the participation of the Registrant’s management, including the Registrant’s principal executive officer and the Registrant’s principal financial officer, of the effectiveness of the design and operation of the Registrant’s disclosure controls and procedures. Based on such evaluation, the Registrant’s principal executive officer and principal financial officer concluded that the Registrant’s disclosure controls and procedures are effective.
| (b) | Changes in Internal Controls. There have been no changes in the Registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected or is reasonably likely to materially affect the internal control over financial reporting. |
| ITEM 17. | DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANY. |
Not applicable.
| ITEM 18. | RECOVERY OF ERRONEOUSLY AWARDED COMPENSATION. |
(a) (1) Not applicable.
(a) (2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 of Christopher Kings, Chief Executive Officer - Finance and Administration, and Vivek pai, Chief Financial Officer, Chief Accounting Officer and Treasurer
(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 of Christopher Kings, Chief Executive Officer - Finance and Administration, and Vivek pai, Chief Financial Officer, Chief Accounting Officer and Treasurer
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this Report to be signed on its behalf by the undersigned, there unto duly authorized.
| FRANKLIN TEMPLETON ETF TRUST | |
| | | |
| By: | /s/ Christopher Kings | |
| | Christopher Kings | |
| | Chief Executive Officer - Finance and Administration | |
| | | |
| Date: | November 22, 2024 | |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
| By: | /s/ Christopher Kings | |
| | Christopher Kings | |
| | Chief Executive Officer - Finance and Administration | |
| | | |
| Date: | November 22, 2024 | |
| By: | /s/ Vivek Pai | |
| | Vivek Pai | |
| | Chief Financial Officer and Chief Accounting Officer and Treasurer | |
| | | |
| Date: | November 22, 2024 | |
