Franklin High Yield Corporate ETF NCSR Certified annual shareholder report (management investment company)

Franklin High Yield Corporate ETF (FLHY) N-CSRCertified annual shareholder report (management investment company)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORMN-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number811-23124

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)

Craig S. Tyle, One Franklin Parkway, San Mateo, CA 94403-1906

(Name and address of agent for service)

Registrant’s telephone number, including area code: 650312-2000

Date of fiscal year end: 3/31

Date of reporting period: 03/31/19

Item 1. Reports to Stockholders.

ANNUAL REPORT

FRANKLIN TEMPLETON

ETF TRUST

March 31, 2019

LOGO


Franklin LibertyQ Emerging Markets ETF		Franklin LibertyQ Global Equity ETF
Franklin LibertyQ Global Dividend ETF		Franklin LibertyQ International Equity Hedged ETF

Internet Delivery of Fund Reports Unless You Request Paper Copies: Effective January 1, 2021, as permitted by the SEC, paper copies of the Fund’s shareholder reports will no longer be sent by mail, unless you specifically request them from the Fund or your financial intermediary. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. If you have not signed up for electronic delivery, we would encourage you to join fellow shareholders who have. You may elect to receive shareholder reports and other communications electronically from the Fund by calling(800) 632-2301 or by contacting your financial intermediary.

You may elect to continue to receive paper copies of all your future shareholder reports free of charge by contacting your financial intermediary or, if you invest directly with a Fund, calling(800) 632-2301 to let the Fund know of your request. Your election to receive reports in paper will apply to all funds held in your account.

Franklin Templeton

Successful investing begins with ambition. And achievement only comes when you reach for it. That’s why we continually strive to deliver better outcomes for investors. No matter what your goals are, our deep, global investment expertise allows us to offer solutions that can help.

During our more than 70 years of experience, we’ve managed through all kinds of markets—up, down and those in between. We’re always preparing for what may come next. It’s because of this, combined with our strength as one of the world’s largest asset managers that we’ve earned the trust of millions of investors around the world.



Contents

Annual Report

Economic and Market Overview			2
Franklin LibertyQ Emerging Markets ETF			3
Franklin LibertyQ Global Dividend ETF			10
Franklin LibertyQ Global Equity ETF			17
Franklin LibertyQ International Equity Hedged ETF			24
Financial Highlights and Statements of Investments			31
Financial Statements			65
Notes to Financial Statements			69
Report of Independent Registered Public Accounting Firm			82
Tax Information			83
Board Members and Officers			84
Shareholder Information			87

Visitfranklintempleton.com/investor/products/etf/ for fund updates and documents.


Not FDIC Insured		\|		May Lose Value		\|		No Bank Guarantee



franklintempleton.com	Not part of the annual report	1

ANNUAL REPORT

Economic and Market Overview

The global economy expanded during the 12 months under review, despite weakness in certain regions. Global developed and emerging market stocks were aided by upbeat economic data in some regions, encouraging corporate earnings reports, the U.S. Federal Reserve’s (Fed’s) indications of a patient approach to its monetary policy decisions and optimism about a potential U.S.-China trade deal. In this environment, global stocks, as measured by the MSCI All Country World Index, posted a +3.16% total return for the 12 months ended March 31, 2019.¹

However, various factors weighed on global markets, including concerns about regulation of technology companies, political uncertainties in the U.S. and the European Union, the Fed’s interest-rate path and the European Central Bank’s (ECB’s) unwinding of its bond purchase program. Markets were also pressured by U.S. trade disputes with China and other trading partners, and their impact on global growth and corporate earnings.

The U.S. economy grew during the12-month period. The economy expanded at a faster rate in 2019’s first quarter after moderating in the previous two quarters. Growth in consumer spending, business investment, exports, government spending and inventory investment was partly offset by a decrease in housing investment. The unemployment rate decreased from 4.0% in March 2018 to 3.8% atperiod-end.²The annual inflation rate, as measured by the Consumer Price Index, decreased from 2.4% in March 2018 to 1.9% at period-end.²

The Fed raised its target range for the federal funds rate by 0.25% three times during the period, to 2.25%–2.50%, and continued reducing its balance sheet as part of its plan to normalize monetary policy. At its March 2019 meeting, the Fed held its target range for the federal funds rate unchanged, signaled no rate hikes in 2019 and mentioned it would end its balance sheet normalization by the end of September 2019.

accelerated in the following two quarters. The bloc’s annual inflation varied throughout the 12 months under review but ended the period unchanged from the March 2018 level. The ECB kept its benchmark interest rate unchanged during the period and concluded its bond purchase program at the end of 2018. In March 2019, the ECB mentioned it expected key interest rates to remain unchanged at least through the end of 2019 and announced the launch of a new stimulus measure beginning in September 2019.

In Asia, Japan’s quarterly GDP expanded in 2018’s second quarter, contracted in the third quarter and returned to growth in the fourth quarter. The Bank of Japan left its benchmark interest rate unchanged during the period and continued its monetary stimulus measures.

In emerging markets, Brazil’s quarterly GDP growth slowed in 2018’s second quarter, but it accelerated in the third quarter before easing in the fourth quarter. After accelerating in 2018’s second quarter, Russia’s annual GDP growth held steady in 2018’s third quarter and accelerated in the fourth quarter. The Bank of Russia increased its key rate twice during the period. China’s annual GDP growth stabilized in 2019’s first quarter after moderating in the previous three quarters. The People’s Bank of China left its benchmark interest rate unchanged, but it took measures to improve financial liquidity to mitigate the effects of the U.S.-China trade dispute and support economic growth. Overall, emerging market stocks, as measured by the MSCI Emerging Markets Index, posted a-7.06% total return during the12-month period.¹

The foregoing information reflects our analysis and opinions as of March 31, 2019. The information is not a complete analysis of every aspect of any market, country, industry, security or fund. Statements of fact are from sources considered reliable.

1. Source: Morningstar.

2. Source: U.S. Bureau of Labor Statistics.

See www.franklintempletondatasources.com for additional data provider information.



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Franklin LibertyQ Emerging Markets ETF

This annual report for Franklin LibertyQ Emerging Markets ETF covers the fiscal year ended March 31, 2019.

Your Fund’s Goal and Main Investments

The Fund seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the LibertyQ Emerging Markets (EM) Index (the Underlying Index).¹ Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the Underlying Index and in depositary receipts representing such securities. The Underlying Index includes stocks from emerging market countries that have favorable exposure to four investment-style factors: quality, value, momentum and low volatility, subject to a maximum 1% per company weighting. The Underlying Index seeks to achieve a lower level of risk and higher risk-adjusted performance than the MSCI EM Index over the long term by selecting equity securities from the MSCI EM Index that have exposure to these investment-style factors.

Performance Overview

During the12-month period, the Fund posted cumulative total returns of-8.83% based on market price and-7.51% based on net asset value (NAV). In comparison, the LibertyQ EM Index posted a-7.01% total return for the same period, while the MSCI EM Index (Net Returns) posted a-7.41% total return.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 6.

Performance data represent past performance, which does not guarantee future results. Investment return and principal value will fluctuate, and you may have a gain or loss when you sell your shares. Current performance may differ from figures shown. For most recentmonth-end performance, go tofranklintempleton.com or call(800)342-5236.

Investment Strategy

The Fund, using a passive or indexing investment approach, seeks investment results that closely correspond, before fees

Geographic Composition*

Based on Total Net Assets as of 3/31/19

*Figures are stated as a percentage of total and may not equal 100% or may be negative due to rounding, use of derivatives, unsettled trades or other factors.

and expenses, to the performance of the LibertyQ EM Index. The investment manager seeks to achieve, over time, a correlation between the Fund’s performance, before fees and expenses, and that of the Underlying Index of 0.95 or better. A figure of 1.00 would indicate perfect correlation. The Fund’s intention is to replicate the component securities of the Underlying Index as closely as possible. However, under various circumstances, it may not be possible or practicable to replicate the Underlying Index. In these circumstances, the Fund may use a “representative sampling” strategy whereby the Fund would invest in what it believes to be a representative sample of the component securities of the Underlying Index, but may not track the Underlying Index with the same degree of accuracy as would an investment vehicle replicating the entire Underlying Index. The Fund’s portfolio is reconstituted semiannually following the semiannual reconstitution of the Underlying Index.

1. The LibertyQ EM Index is a systematic, rules-based proprietary index that is owned and calculated by MSCI Inc. (MSCI). It is based on the MSCI EM Index using a methodology developed with Franklin Templeton to reflect Franklin Templeton’s desired investment strategy. The MSCI EM Index is a free float-adjusted market capitalization-weighted index that is designed to measure the equity market performance of emerging markets.

2. Source: FactSet.

The indexes are unmanaged and include reinvestment of any income or distributions (after the deduction of certain withholding taxes). They do not reflect any fees, expenses or sales charges. One cannot invest directly in an index.

See www.franklintempletondatasources.com for additional data provider information.

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Statement of Investments (SOI). The SOI begins on page 32.



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FRANKLIN LIBERTYQ EMERGING MARKETS ETF


Top 10 Sectors/Industries

3/31/19

	% of Total Net Assets
Oil, Gas & Consumable Fuels		16.2%
Banks		9.8%
Wireless Telecommunication Services		7.6%
Chemicals		6.8%
Metals & Mining		5.6%
IT Services		4.8%
Semiconductors & Semiconductor Equipment		4.0%
Diversified Telecommunication Services		3.9%
Automobiles		3.2%
Tobacco		3.1%


Top 10 Holdings

3/31/19

Company *Sector/Industry, Country*	% of Total Net Assets
Anta Sports Products Ltd. Textiles, Apparel & Luxury Goods, China		1.3%
LUKOIL PJSC Oil, Gas & Consumable Fuels, Russia		1.2%
Rosneft PJSC Oil, Gas & Consumable Fuels, Russia		1.2%
Unilever Indonesia Tbk PT Household Products, Indonesia		1.2%
Infosys Ltd. IT Services, India		1.1%
MMC Norilsk Nickel PJSC Metals & Mining, Russia		1.1%
Taiwan Semiconductor Manufacturing Co. Ltd. Semiconductors & Semiconductor Equipment, Taiwan		1.1%
Bank of Communications Co. Ltd., A, H Banks, China		1.1%
HCL Technologies Ltd. IT Services, India		1.1%
Shenzhou International Group Holdings Ltd. Textiles, Apparel & Luxury Goods, China		1.1%


Top 10 Countries

3/31/19

	% of Total Net Assets
China		15.3%
Taiwan		13.2%
India		12.9%
Russia		12.1%
South Korea		10.9%
Thailand		5.6%
Brazil		4.9%
South Africa		4.7%
Indonesia		3.7%
Malaysia		3.4%

Manager’s Discussion

For the fiscal year ended March 31, 2019, individual holdings that lifted the Fund’s absolute return included LUKOIL, Novatek and Anta Sports Products. Individual holdings that hindered the Fund’s absolute return included AAC Technologies, Cielo (not held at period-end) and Mr. Price Group.

The Fund’s research-based selection process focuses on four investment factors: quality, value, momentum and low volatility. Of the four target-style factors, low volatility and value benefited the Fund’s performance for the reporting period, while momentum and quality detracted from the Fund’s return.

CFA^® is a trademark owned by CFA Institute.



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FRANKLIN LIBERTYQ EMERGING MARKETS ETF

Thank you for your participation in Franklin LibertyQ Emerging Markets ETF. We look forward to serving your future investment needs.


		Dina Ting, CFA

		Louis Hsu, CFA

		Portfolio Management Team

The foregoing information reflects our analysis, opinions and portfolio holdings as of March 31, 2019, the end of the reporting period. These opinions may not be relied upon as investment advice or an offer for a particular security. The information is not a complete analysis of every aspect of any market, country, industry, security or the Fund. Statements of fact are from sources considered reliable, but the investment manager makes no representation or warranty as to their completeness or accuracy. Although historical performance is no guarantee of future results, these insights may help you understand our investment management philosophy.



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FRANKLIN LIBERTYQ EMERGING MARKETS ETF

Performance Summary as of March 31, 2019

Total return reflects reinvestment of the Fund’s dividends and capital gain distributions, if any, and any unrealized gains or losses. Total returns do not include brokerage commissions that may be payable on secondary market transactions. The performance table and graph do not reflect any taxes that a shareholder would pay on Fund dividends, capital gain distributions, if any, or any realized gains on the sale of Fund shares.

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (6/3/16), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Your dividend income will vary depending on dividends or interest paid by securities in the Fund’s portfolio, adjusted for operating expenses. Capital gain distributions are net profits realized from the sale of portfolio securities.

Performance as of 3/31/19¹

Cumulative Total Return²

Average Annual Total Return²

Based on

NAV³

Based on

market price⁴

Based on

NAV³

Based on

market price⁴

1-Year

-7.51%

⁵

-8.83%

-7.51%

⁵

-8.83%

Since Inception (6/1/16)

+23.91%

+23.78%

+7.87%

+7.83%

See page 8 for Performance Summary footnotes.



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FRANKLIN LIBERTYQ EMERGING MARKETS ETF

PERFORMANCE SUMMARY

Total Return Index Comparison for a Hypothetical $10,000 Investment¹

Total return is calculated at net asset value and represents the change in value of an investment over the periods shown. It includes any Fund fees and expenses, and reinvested distributions. The unmanaged indexes include reinvestment of any income or distributions. They differ from the Fund in composition and do not pay management fees or expenses. One cannot invest directly in an index.

6/1/16–3/31/19

LOGO

See page 8 for Performance Summary footnotes.



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FRANKLIN LIBERTYQ EMERGING MARKETS ETF

PERFORMANCE SUMMARY

Distributions(4/1/18–3/31/19)

Net Investment
Income

$1.09265

Total Annual Operating Expenses⁷

0.55%

ETFs trade like stocks, fluctuate in market value and may trade at prices above or below their net asset value. Brokerage commissions and ETF expenses will reduce returns.

1. Effective December 1, 2017, the Fund adopted a unified fee structure whereby Management 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: (i) payments under the Fund’s Rule12b-1 plan (if any); (ii) brokerage expenses (including any costs incidental to transactions in portfolio securities or instruments); (iii) taxes; (iv) interest (including borrowing costs and dividend expenses on securities sold short and overdraft charges); (v) 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 (vi) othernon-routine or extraordinary expenses.

2. Total return calculations represent the cumulative and average annual changes in value of an investment over the periods indicated. Return for less than one year, if any, has not been annualized.

3. Assumes reinvestment of distributions based on net asset value.

4. Assumes reinvestment of distributions based on market price.

5. Total return information is based on net asset values calculated for shareholder transactions. Certain adjustments were made to net assets of the Fund at 3/31/18 for financial reporting purposes, and as a result, the total returns based on those net asset values differ from the adjusted total returns reported in the Financial Highlights.

6. The LibertyQ EM Index is a systematic, rules-based proprietary index that is owned and calculated by MSCI Inc. (MSCI). It is based on the MSCI EM Index using a methodology developed with Franklin Templeton to reflect Franklin Templeton’s desired investment strategy. The MSCI EM Index is a free float-adjusted market capitalization-weighted index that is designed to measure the equity market performance of emerging markets.

7. Figures are as stated in the Fund’s current prospectus and may differ from the expense ratios disclosed in the Your Fund’s Expenses and Financial Highlights sections in this report. In periods of market volatility, assets may decline significantly, causing total annual Fund operating expenses to become higher than the figures shown.

See www.franklintempletondatasources.com for additional data provider information.



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FRANKLIN LIBERTYQ EMERGING MARKETS ETF

Your Fund’s Expenses

As a Fund shareholder, you can incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of Fund shares; and (2) ongoing Fund costs, including management fees and other Fund expenses. All funds have ongoing costs, sometimes referred to as operating expenses. The table below shows ongoing costs of investing in the Fund and can help you understand these costs and compare them with those of other funds. The table assumes a $1,000 investment held for the six months indicated.

Actual Fund Expenses

The table below provides information about actual account values and actual expenses in the columns under the heading “Actual.” In these columns the Fund’s actual return, which includes the effect of Fund expenses, is used to calculate the “Ending Account Value” for each class of shares. You can estimate the expenses you paid during the period by following these steps (of course, your account value and expenses will differ from those in this illustration):Divide your account value by $1,000 (if your account had an $8,600 value, then $8,600÷ $1,000 = 8.6).Then multiply the result by the number in the row for your class of shares under the headings “Actual” and “Expenses Paid During Period” (if Actual Expenses Paid During Period were $7.50, then 8.6 x $7.50 = $64.50).In this illustration, the actual expenses paid this period are $64.50.

Hypothetical Example for Comparison with Other Funds

Under the heading “Hypothetical” in the table, information is provided about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. This information may not be used to estimate the actual ending account balance or expenses you paid for the period, but it can help you compare ongoing costs of investing in the Fund with those of other funds. To do so, compare this 5% hypothetical example for the class of shares you hold with the 5% hypothetical examples that appear in the shareholder reports of other funds.

Please note that expenses shown in the table are meant to highlight ongoing costs and do not reflect any transactional costs.Therefore, information under the heading “Hypothetical” is useful in comparing ongoing costs only, and will not help you compare total costs of owning different funds. In addition, if transactional costs were included, your total costs would have been higher.


		Actual (actual return after expenses)				Hypothetical (5% annual return before expenses)

Beginning Account Value 10/1/18		Ending Account Value 3/31/19		Expenses Paid During Period 10/1/18–3/31/19^1,2		Ending Account Value 3/31/19		Expenses Paid During Period 10/1/18–3/31/19^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	993.90	$	2.73	$	1,022.19	$	2.77		0.55	%

1. Expenses are equal to the annualized expense ratio for thesix-month period as indicated above—in the far right column—multiplied by the simple average account value over the period indicated, and then multiplied by 182/365 to reflect theone-half year period.

2. Reflects expenses after fee waivers and expense reimbursements.



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Franklin LibertyQ Global Dividend ETF

This annual report for Franklin LibertyQ Global Dividend ETF covers the fiscal year ended March 31, 2019.

Your Fund’s Goal and Main Investments

The Fund seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the LibertyQ Global Dividend Index (the Underlying Index).¹Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the Underlying Index and in depositary receipts representing such securities. The Underlying Index includes stocks from developed and emerging market countries with high and persistent dividend income that have favorable exposure to a quality investment-style factor, subject to a maximum 2% per company weighting. The Underlying Index seeks to achieve a lower level of risk and higher risk-adjusted performance than the MSCI All Country World Index (ACWI) ex REITs Index over the long term by applying dividend persistence and yield screens and the quality factor selection process.

Performance Overview

For the12-month period, the Fund posted cumulative total returns of +2.82% based on market price and +3.51% based on net asset value (NAV). In comparison, the LibertyQ Global Dividend Index posted a +3.48% total return for the same period, while the MSCI ACWI ex REITs Index (Net Returns) posted a +2.34% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 13.

Investment Strategy

The Fund, using a passive or indexing investment approach, seeks investment results that closely correspond, before fees

Geographic Composition*

Based on Total Net Assets as of 3/31/19

LOGO

*Figures are stated as a percentage of total and may not equal 100% or may be negative due to rounding, use of derivatives, unsettled trades or other factors.

and expenses, to the performance of the LibertyQ Global Dividend Index. The investment manager seeks to achieve, over time, a correlation between the Fund’s performance, before fees and expenses, and that of the Underlying Index of 0.95 or better. A figure of 1.00 would indicate perfect correlation. The Fund’s intention is to replicate the component securities of the Underlying Index as closely as possible. However, under various circumstances, it may not be possible or practicable to replicate the Underlying Index. In these circumstances, the Fund may use a “representative sampling” strategy whereby the Fund would invest in what it believes to be a representative sample of the component securities of the Underlying Index, but may not track the Underlying Index with the same degree of accuracy as would an investment vehicle replicating the entire Underlying Index. The Fund’s portfolio is reconstituted semiannually following the semiannual reconstitution of the Underlying Index.

1. The LibertyQ Global Dividend Index is a systematic, rules-based proprietary index that is owned and calculated by MSCI Inc. (MSCI). It is based on the MSCI ACWI ex REITs Index using a methodology developed with Franklin Templeton to reflect Franklin Templeton’s desired investment strategy. The MSCI ACWI ex REITs Index is a free float-adjusted market capitalization-weighted index that is designed to measure the equity market performance of developed and emerging markets, excluding REIT securities.

2. Source: FactSet.

See www.franklintempletondatasources.com for additional data provider information.

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Statement of Investments (SOI). The SOI begins on page 39.



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FRANKLIN LIBERTYQ GLOBAL DIVIDEND ETF


Top 10 Sectors/Industries

3/31/19

	% of Total Net Assets
Banks		17.0%
Pharmaceuticals		12.0%
Household Products		6.2%
Insurance		6.2%
Hotels, Restaurants & Leisure		5.8%
Diversified Telecommunication Services		5.4%
IT Services		4.3%
Personal Products		4.0%
Tobacco		3.9%
Capital Markets		3.5%


Top 10 Holdings

3/31/19

Company *Sector/Industry, Country*	% of Total Net Assets
International Business Machines Corp. IT Services, United States		2.3%
Intel Corp. Semiconductors & Semiconductor Equipment, United States		2.2%
The Procter & Gamble Co. Household Products, United States		2.2%
Merck & Co. Inc. Pharmaceuticals, United States		2.1%
Kimberly-Clark Corp. Household Products, United States		2.1%
Roche Holding AG Pharmaceuticals, Switzerland		2.1%
Zurich Insurance Group AG Insurance, Switzerland		2.1%
Novartis AG Pharmaceuticals, Switzerland		2.1%
Royal Bank of Canada Banks, Canada		2.0%
Eli Lilly & Co. Pharmaceuticals, United States		2.0%


Top 10 Countries

3/31/19

	% of Total Net Assets
United States		39.1%
Australia		11.6%
United Kingdom		8.8%
Canada		8.6%
Switzerland		7.0%
Japan		3.1%
Germany		2.6%
South Africa		2.6%
Finland		2.4%
Sweden		2.0%

Manager’s Discussion

For the fiscal year ended March 31, 2019, individual holdings that lifted the Fund’s absolute return included Eli Lilly & Co., Merck & Co. and Procter & Gamble. Individual holdings that hindered the Fund’s absolute return included Cia de Bebidas Das Americas (Ambev) (not held at period-end), Lyondellbasell Industries and ProSiebenSat.1 Media.

The Fund’s research-based selection process focuses on four investment factors: quality, value, momentum and low volatility. Of the four target-style factors, low volatility, quality and momentum benefited the Fund’s performance for the reporting period, while value detracted from the Fund’s return.



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FRANKLIN LIBERTYQ GLOBAL DIVIDEND ETF

Thank you for your participation in Franklin LibertyQ Global Dividend ETF. We look forward to serving your future investment needs.


		Dina Ting, CFA

		Louis Hsu, CFA

		Portfolio Management Team



12	Annual Report	franklintempleton.com

FRANKLIN LIBERTYQ GLOBAL DIVIDEND ETF

Performance Summary as of March 31, 2019

Performance as of 3/31/19¹

Cumulative Total Return²

Average Annual Total Return²

Based on

NAV³

Based on

market price⁴

Based on

NAV³

Based on

market price⁴

1-Year

+3.51%

+2.82%

+3.51%

+2.82%

Since Inception (6/1/16)

+21.50%

+21.40%

+7.12%

+7.09%

See page 15 for Performance Summary footnotes.



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FRANKLIN LIBERTYQ GLOBAL DIVIDEND ETF

PERFORMANCE SUMMARY

Total Return Index Comparison for a Hypothetical $10,000 Investment¹

6/1/16–3/31/19

LOGO

See page 15 for Performance Summary footnotes.



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FRANKLIN LIBERTYQ GLOBAL DIVIDEND ETF

PERFORMANCE SUMMARY

Distributions(4/1/18–3/31/19)

Net Investment
Income

$0.949201

Total Annual Operating Expenses⁶

0.45%

All investments involve risks, including possible loss of principal. Generally, those offering potential for higher returns are accompanied by a higher degree of risk. Special risks are associated with foreign investing, including currency fluctuations, economic instability and political developments; investments in emerging markets involve heightened risks related to the same factors. To the extent the Fund focuses on particular countries, regions, industries, sectors or types of investment from time to time, it may be subject to greater risks of adverse developments in such areas of focus than a fund that invests in a wider variety of countries, regions, industries, sectors or investments. Companies that have historically paid regular dividends to shareholders may decrease or eliminate dividend payments in the future. A decrease in dividend payments by an issuer may result in a decrease in the value of the issuer’s stock and less available income for the Fund. There can be no assurance that the Fund’s multi-factor stock selection process will enhance performance. Exposure to such investment factors may detract from performance in some market environments, perhaps for extended periods. The Fund’s prospectus also includes a description of the main investment risks.

ETFs trade like stocks, fluctuate in market value and may trade at prices above or below their net asset value. Brokerage commissions and ETF expenses will reduce returns.

2. Total return calculations represent the cumulative and average annual changes in value of an investment over the periods indicated. Return for less than one year, if any, has not been annualized.

3. Assumes reinvestment of distributions based on net asset value.

4. Assumes reinvestment of distributions based on market price.

5. The LibertyQ Global Dividend Index is a systematic, rules-based proprietary index that is owned and calculated by MSCI Inc. (MSCI). It is based on the MSCI ACWI ex REITs Index using a methodology developed with Franklin Templeton to reflect Franklin Templeton’s desired investment strategy. The MSCI ACWI ex REITs Index is a free float-adjusted market capitalization-weighted index that is designed to measure the equity market performance of developed and emerging markets, excluding REIT securities.

6. Figures are as stated in the Fund’s current prospectus and may differ from the expense ratios disclosed in the Your Fund’s Expenses and Financial Highlights sections in this report. In periods of market volatility, assets may decline significantly, causing total annual Fund operating expenses to become higher than the figures shown.

See www.franklintempletondatasources.com for additional data provider information.



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FRANKLIN LIBERTYQ GLOBAL DIVIDEND ETF

Your Fund’s Expenses

Actual Fund Expenses

Hypothetical Example for Comparison with Other Funds


		Actual (actual return after expenses)				Hypothetical (5% annual return before expenses)

Beginning Account Value 10/1/18		Ending Account Value 3/31/19		Expenses Paid During Period 10/1/18–3/31/19^1,2		Ending Account Value 3/31/19		Expenses Paid During Period 10/1/18–3/31/19^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	1,016.40	$	2.26	$	1,022.69	$	2.27		0.45	%

2. Reflects expenses after fee waivers and expense reimbursements.



16	Annual Report	franklintempleton.com

Franklin LibertyQ Global Equity ETF

This annual report for Franklin LibertyQ Global Equity ETF covers the fiscal year ended March 31, 2019.

Your Fund’s Goal and Main Investments

The Fund seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the LibertyQ Global Equity Index (the Underlying Index).¹Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the Underlying Index and in depositary receipts representing such securities. The Underlying Index includes stocks from developed and emerging market countries that have favorable exposure to four investment-style factors: quality, value, momentum and low volatility, subject to a maximum 1% per company weighting. The Underlying Index seeks to achieve a lower level of risk and higher risk-adjusted performance than the MSCI All Country World Index (ACWI) over the long term by selecting equity securities from the MSCI ACWI that have exposure to these investment-style factors.

Performance Overview

During the12-month period, the Fund posted cumulative total returns of +5.78% based on market price and +5.50% based on net asset value (NAV). In comparison, the LibertyQ Global Equity Index posted a +5.42% total return for the same period, while the MSCI ACWI (Net Returns) posted a +2.60% total return.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 20.

Geographic Composition*

Based on Total Net Assets as of 3/31/19

LOGO

*Figures are stated as a percentage of total and may not equal 100% or may be negative due to rounding, use of derivatives, unsettled trades or other factors.

Investment Strategy

The Fund, using a passive or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the LibertyQ Global Equity Index. The investment manager seeks to achieve, over time, a correlation between the Fund’s performance, before fees and expenses, and that of the Underlying Index of 0.95 or better. A figure of 1.00 would indicate perfect correlation. The Fund’s intention is to replicate the component securities of the Underlying Index as closely as possible. However, under various circumstances, it may not be possible or practicable to replicate the Underlying Index. In these circumstances, the Fund may use a “representative sampling” strategy whereby the Fund would invest in what it believes to be a representative sample of the component securities of the Underlying Index, but may not track the Underlying Index with the same degree of accuracy as would an investment vehicle replicating the entire Underlying Index. The Fund’s portfolio is reconstituted semiannually following the semiannual reconstitution of the Underlying Index.

1. The LibertyQ Global Equity Index is a systematic, rules-based proprietary index that is owned and calculated by MSCI Inc. (MSCI). It is based on the MSCI ACWI using a methodology developed with Franklin Templeton to reflect Franklin Templeton’s desired investment strategy. The MSCI ACWI is a free float-adjusted market capitalization-weighted index that is designed to measure the equity market performance of developed and emerging markets.

2. Source: FactSet.

See www.franklintempletondatasources.com for additional data provider information.

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Statement of Investments (SOI). The SOI begins on page 44.



franklintempleton.com	Annual Report	17

FRANKLIN LIBERTYQ GLOBAL EQUITY ETF


Top 10 Sectors/Industries

3/31/19

	% of Total Net Assets
Pharmaceuticals		8.0%
Semiconductors & Semiconductor Equipment		6.7%
Specialty Retail		5.5%
IT Services		5.2%
Diversified Telecommunication Services		4.3%
Metals & Mining		3.6%
Oil, Gas & Consumable Fuels		3.5%
Banks		3.2%
Biotechnology		3.2%
Food & Staples Retailing		3.1%


Top 10 Holdings

3/31/19

Company *Sector/Industry, Country*	% of Total Net Assets
iShares MSCI India ETF Diversified Financial Services, India		1.3%
Mastercard Inc., A IT Services, United States		1.2%
Facebook Inc., A Interactive Media & Services, United States		1.2%
Cisco Systems Inc. Communications Equipment, United States		1.1%
International Business Machines Corp. IT Services, United States		1.1%
Novo Nordisk AS, B Pharmaceuticals, Denmark		1.1%
Union Pacific Corp. Road & Rail, United States		1.1%
Microsoft Corp. Software, United States		1.1%
The Procter & Gamble Co. Household Products, United States		1.1%
Taiwan Semiconductor Manufacturing Co. Ltd. Semiconductors & Semiconductor Equipment, Taiwan		1.1%


Top 10 Countries

3/31/19

	% of Total Net Assets
United States		52.9%
United Kingdom		8.5%
Australia		5.4%
Japan		5.2%
South Korea		2.7%
China		2.5%
Canada		2.5%
Taiwan		2.5%
Russia		2.1%
India		1.8%

Manager’s Discussion

For the fiscal year ended March 31, 2019, individual holdings that lifted the Fund’s absolute return included Eli Lilly & Co., Procter & Gamble and Mastercard. Individual holdings that hindered the Fund’s absolute return included NVIDIA, Cia de Bebidas Americas (Ambev) (not held at period-end) and Samsung Electronics.

The Fund’s research-based selection process focuses on four investment factors: quality, value, momentum and low volatility. Of the four target-style factors, low volatility and quality benefited the Fund’s performance for the reporting period, while value and momentum detracted from the Fund’s return.



18	Annual Report	franklintempleton.com

FRANKLIN LIBERTYQ GLOBAL EQUITY ETF

Thank you for your participation in Franklin LibertyQ Global Equity ETF. We look forward to serving your future investment needs.


		Dina Ting, CFA

		Louis Hsu, CFA

		Portfolio Management Team



franklintempleton.com	Annual Report	19

FRANKLIN LIBERTYQ GLOBAL EQUITY ETF

Performance Summary as of March 31, 2019

Performance as of 3/31/19¹

Cumulative Total Return²

Average Annual Total Return²

Based on
NAV³

Based on
market price⁴

Based on
NAV³

Based on

market price⁴

1-Year

+5.50%

⁵

+5.78%

+5.50%

⁵

+5.78%

Since Inception (6/1/16)

+32.05%

+32.02%

+10.32%

+10.31%

See page 22 for Performance Summary footnotes.



20	Annual Report	franklintempleton.com

FRANKLIN LIBERTYQ GLOBAL EQUITY ETF

PERFORMANCE SUMMARY

Total Return Index Comparison for a Hypothetical $10,000 Investment¹

6/1/16–3/31/19

LOGO

See page 22 for Performance Summary footnotes.



franklintempleton.com	Annual Report	21

FRANKLIN LIBERTYQ GLOBAL EQUITY ETF

PERFORMANCE SUMMARY

Distributions(4/1/18–3/31/19)

Net Investment
Income

$0.796900

Total Annual Operating Expenses⁷

0.35%

ETFs trade like stocks, fluctuate in market value and may trade at prices above or below their net asset value. Brokerage commissions and ETF expenses will reduce returns.

2. Total return calculations represent the cumulative and average annual changes in value of an investment over the periods indicated. Return for less than one year, if any, has not been annualized.

3. Assumes reinvestment of distributions based on net asset value.

4. Assumes reinvestment of distributions based on market price.

6. The LibertyQ Global Equity Index is a systematic, rules-based proprietary index that is owned and calculated by MSCI Inc. (MSCI). It is based on the MSCI ACWI Index using a methodology developed with Franklin Templeton to reflect Franklin Templeton’s desired investment strategy. The MSCI ACWI Index is a free float-adjusted market capitalization-weighted index that is designed to measure the equity market performance of developed and emerging markets.

See www.franklintempletondatasources.com for additional data provider information.



22	Annual Report	franklintempleton.com

FRANKLIN LIBERTYQ GLOBAL EQUITY ETF

Your Fund’s Expenses

Actual Fund Expenses

Hypothetical Example for Comparison with Other Funds


		Actual (actual return after expenses)				Hypothetical (5% annual return before expenses)

Beginning Account Value 10/1/18		Ending Account Value 3/31/19		Expenses Paid During Period 10/1/18–3/31/19^1,2		Ending Account Value 3/31/19		Expenses Paid During Period 10/1/18–3/31/19^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	1,006.10	$	1.70	$	1,023.24	$	1.72		0.34	%

2. Reflects expenses after fee waivers and expense reimbursements.



franklintempleton.com	Annual Report	23

Franklin LibertyQ International Equity Hedged ETF

This annual report for Franklin LibertyQ International Equity Hedged ETF covers the fiscal year ended March 31, 2019.

Your Fund’s Goal and Main Investments

The Fund seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the LibertyQ International Equity Hedged Index (the Underlying Index).¹Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the Underlying Index and in depositary receipts representing such securities. The Underlying Index includes stocks from developed market countries in Europe, Australasia and the Far East that have favorable exposure to four investment-style factors: quality, value, momentum and low volatility, subject to a maximum 2% per company weighting. The Underlying Index seeks to achieve a lower level of risk and higher risk-adjusted performance than the MSCI EAFE Index over the long term by selecting equity securities from the MSCI EAFE Index that have exposure to these investment-style factors. The Underlying Index incorporates a hedge againstnon-U.S. currency fluctuations by reflecting the impact of rolling monthly currency forward contracts on the currencies represented in the Underlying Index. In order to replicate the hedge impact incorporated in the calculation of the Underlying Index, the Fund intends to enter into monthly foreign currency forward contracts designed to offset the Fund’s exposure to the component currencies of the Underlying Index.

What is a currency forward contract?

A currency forward contract is an agreement between the Fund and a counterparty to buy or sell a foreign currency in exchange for another currency at a specific exchange rate on a future date. Currency forward contracts are privately traded in the interbank market, not on a centralized exchange.

Performance Overview

During the12-month period, the Fund posted cumulative total returns of +7.95% based on market price and +7.69% based

Geographic Composition*

Based on Total Net Assets as of 3/31/19

LOGO

*Figures are stated as a percentage of total and may not equal 100% or may be negative due to rounding, use of derivatives, unsettled trades or other factors.

on net asset value (NAV). In comparison, LibertyQ International Equity Hedged Index posted a +8.13% total return for the same period, while the MSCI EAFE 100% Hedged to USD Index (Net Returns) posted a +5.25% total return.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 27.

Investment Strategy

The Fund, using a passive or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the LibertyQ International Equity Hedged Index. The investment manager seeks to achieve, over time, a correlation between the Fund’s performance, before fees and expenses, and that of the Underlying Index of 0.95 or better. A figure of 1.00 would indicate perfect correlation. The Fund’s intention is to replicate the component securities of the Underlying Index as

1. The LibertyQ International Equity Hedged Index is a systematic, rules-based proprietary index that is owned and calculated by MSCI Inc. (MSCI). It is based on the MSCI EAFE Index using a methodology developed with Franklin Templeton to reflect Franklin Templeton’s desired investment strategy. The MSCI EAFE Index is a free float-adjusted market capitalization-weighted index that is designed to measure the equity market performance of developed markets, excluding the U.S. and Canada.

2. Source: FactSet.

See www.franklintempletondatasources.com for additional data provider information.

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Statement of Investments (SOI). The SOI begins on page 58.



24	Annual Report	franklintempleton.com

FRANKLIN LIBERTYQ INTERNATIONAL EQUITY HEDGED ETF


Top 10 Sectors/Industries

3/31/19

	% of Total Net Assets
Pharmaceuticals		10.9%
Metals & Mining		7.7%
Banks		7.5%
Insurance		5.4%
Personal Products		4.9%
Diversified Telecommunication Services		4.7%
Automobiles		4.3%
Oil, Gas & Consumable Fuels		3.5%
Hotels, Restaurants & Leisure		2.9%
Equity Real Estate Investment Trusts (REITs)		2.7%


Top 10 Holdings

3/31/19

Company *Sector/Industry, Country*	% of Total Net Assets
Novo Nordisk AS, B Pharmaceuticals, Denmark		2.2%
Rio Tinto PLC Metals & Mining, United Kingdom		2.2%
AIA Group Ltd. Insurance, Hong Kong		2.2%
Roche Holding AG Pharmaceuticals, Switzerland		2.1%
BHP Group Ltd. Metals & Mining, Australia		2.0%
CSL Ltd. Biotechnology, Australia		2.0%
Unilever NV, IDR Personal Products, United Kingdom		2.0%
Unilever PLC Personal Products, United Kingdom		1.9%
GlaxoSmithKline PLC Pharmaceuticals, United Kingdom		1.9%
Commonwealth Bank of Australia Banks, Australia		1.9%


Top 10 Countries

3/31/19

	% of Total Net Assets
United Kingdom		26.5%
Japan		19.9%
Australia		18.7%
Hong Kong		5.6%
Switzerland		5.4%
France		4.0%
Denmark		3.2%
Spain		3.1%
Sweden		2.0%
Germany		1.7%

closely as possible. However, under various circumstances, it may not be possible or practicable to replicate the Underlying Index. In these circumstances, the Fund may use a “representative sampling” strategy whereby the Fund would invest in what it believes to be a representative sample of the component securities of the Underlying Index, but may not track the Underlying Index with the same degree of accuracy as would an investment vehicle replicating the entire Underlying Index. The Fund’s portfolio is reconstituted semiannually following the semiannual reconstitution of the Underlying Index.

Manager’s Discussion

For the fiscal year ended March 31, 2019, individual holdings that lifted the Fund’s absolute return included Rio Tinto, Roche Holdings and BHP Group. Individual holdings that hindered the Fund’s absolute return included Continental, Pandora and Covestro.

The Fund’s research-based selection process focuses on four investment factors: quality, value, momentum and low volatility. Of the four target-style factors, low volatility benefited the Fund’s performance for the reporting period, while value and quality detracted from the Fund’s return. Momentum had a neutral effect on the Fund’s return.



franklintempleton.com	Annual Report	25

FRANKLIN LIBERTYQ INTERNATIONAL EQUITY HEDGED ETF

Thank you for your participation in Franklin LibertyQ International Equity Hedged ETF. We look forward to serving your future investment needs.


		Dina Ting, CFA

		Louis Hsu, CFA

		Portfolio Management Team



26	Annual Report	franklintempleton.com

FRANKLIN LIBERTYQ INTERNATIONAL EQUITY HEDGED ETF

Performance Summary as of March 31, 2019

Performance as of 3/31/19¹

Cumulative Total Return²

Average Annual Total Return²

Based on
NAV³

Based on
market price⁴

Based on
NAV³

Based on

market price⁴

1-Year

+7.69%

⁵

+7.95%

+7.69%

+7.95%

Since Inception (6/1/16)

+20.52%

+21.20%

+6.82%

+7.03%

See page 29 for Performance Summary footnotes.



franklintempleton.com	Annual Report	27

FRANKLIN LIBERTYQ INTERNATIONAL EQUITY HEDGED ETF

PERFORMANCE SUMMARY

Total Return Index Comparison for a Hypothetical $10,000 Investment¹

6/1/16–3/31/19

LOGO

See page 29 for Performance Summary footnotes.



28	Annual Report	franklintempleton.com

FRANKLIN LIBERTYQ INTERNATIONAL EQUITY HEDGED ETF

PERFORMANCE SUMMARY

Distributions(4/1/18–3/31/19)



Net Investment Income	Long-Term Capital Gains	Total
$0.300911	$0.968880	$1.269711

Total Annual Operating Expenses⁷

0.40%

All investments involve risks, including possible loss of principal. Generally, those offering potential for higher returns are accompanied by a higher degree of risk. Special risks are associated with foreign investing, including currency fluctuations, economic instability and political developments; investments in emerging markets involve heightened risks related to the same factors. To the extent the Fund focuses on particular countries, regions, industries, sectors or types of investment from time to time, it may be subject to greater risks of adverse developments in such areas of focus than a fund that invests in a wider variety of countries, regions, industries, sectors or investments. The Fund will attempt to hedge the currency exposure ofnon-U.S. dollar denominated securities held in its portfolio by investing in foreign currency forward contracts. Foreign currency forward contracts do not eliminate movements in the value ofnon-U.S. currencies and securities but rather allow the Fund to establish a fixed rate of exchange for a future point in time. Investments in derivatives involve costs and create economic leverage, which may result in significant volatility and cause the Fund to participate in losses (as well as gains) that significantly exceed the Fund’s initial investment. Currency management strategies could result in losses to the Fund if currencies do not perform as the investment manager expects. There can be no assurance that the Fund’s multi-factor stock selection process will enhance performance. Exposure to such investment factors may detract from performance in some market environments, perhaps for extended periods. The Fund’s prospectus also includes a description of the main investment risks.

ETFs trade like stocks, fluctuate in market value and may trade at prices above or below their net asset value. Brokerage commissions and ETF expenses will reduce returns.

2. Total return calculations represent the cumulative and average annual changes in value of an investment over the periods indicated. Return for less than one year, if any, has not been annualized.

3. Assumes reinvestment of distributions based on net asset value.

4. Assumes reinvestment of distributions based on market price.

6. The LibertyQ International Equity Hedged Index is a systematic, rules-based proprietary index that is owned and calculated by MSCI Inc. (MSCI). It is based on the MSCI EAFE Index using a methodology developed with Franklin Templeton to reflect Franklin Templeton’s desired investment strategy. The MSCI EAFE Index is a free float-adjusted market capitalization-weighted index that is designed to measure the equity market performance of developed markets, excluding the U.S. and Canada.

See www.franklintempletondatasources.com for additional data provider information.



franklintempleton.com	Annual Report	29

FRANKLIN LIBERTYQ INTERNATIONAL EQUITY HEDGED ETF

Your Fund’s Expenses

Actual Fund Expenses

Hypothetical Example for Comparison with Other Funds


		Actual (actual return after expenses)				Hypothetical (5% annual return before expenses)

Beginning Account Value 10/1/18		Ending Account Value 3/31/19		Expenses Paid During Period 10/1/18–3/31/19^1,2		Ending Account Value 3/31/19		Expenses Paid During Period 10/1/18–3/31/19^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	1,009.10	$	2.00	$	1,022.94	$	2.02		0.40	%

2. Reflects expenses after fee waivers and expense reimbursements.



30	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin LibertyQ Emerging Markets ETF



	Year Ended March 31,

	2019			2018			2017^a

Per share operating performance (for a share outstanding throughout the year)

Net asset value, beginning of year	$	33.41		$	29.29		$	25.66


Income from investment operations^b:

Net investment income^c		1.14			0.83			0.47

Net realized and unrealized gains (losses)		(3.76	)		4.15			3.25


Total from investment operations		(2.62	)		4.98			3.72


Less distributions from net investment income		(1.09	)		(0.86	)		(0.09	)


Net asset value, end of year	$	29.70		$	33.41		$	29.29


Total return^d		(7.70)%			17.20%			14.55%

Ratios to average net assets^e

Expenses before waiver and payments by affiliates		0.55%			0.69%	^f		0.75%

Expenses net of waiver and payments by affiliates		0.55%			0.54%	^f		0.55%

Net investment income		3.75%			2.61%			2.09%

Supplemental data

Net assets, end of year (000’s)		$344,484			$400,908			$328,086

Portfolio turnover rate^g		52.42%			32.87%			31.66%

^aFor the period June 1, 2016 (commencement of operations) to March 31, 2017.

^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 of 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.

^fEffective December 1, 2017, the Fund replaced the prior fee structure with a unified management fee. See Note 3(a).

^gPortfolio turnover rate excludes the value of portfolio securities received or delivered as a result of processing capital share transactions in Creation Units, if any.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	31

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2019

Franklin LibertyQ Emerging Markets ETF



	Industry		Shares		Value
Common Stocks 96.6%
Brazil 3.1%
BB Seguridade Participacoes SA		Insurance		464,000	$	3,161,929
Cielo SA		IT Services		788,800		1,923,507
Companhia de Saneamento Basico do Estado de Sao Paulo		Water Utilities		185,600		2,003,032
Engie Brasil SA		Independent Power and Renewable Electricity Producers		150,800		1,654,975
IRB Brasil Resseguros SA		Insurance		58,000		1,359,946
M. Dias Branco SA		Food Products		58,000		647,558


						10,750,947

Chile 1.0%
Aguas Andinas SA, A		Water Utilities		1,634,498		929,332
Compania Cervecerias Unidas SA		Beverages		48,604		695,845
Enel Chile SA		Electric Utilities		15,760,572		1,651,389


						3,276,566

China 15.3%
Agricultural Bank of China Ltd., H		Banks		7,366,000		3,396,827
Anhui Conch Cement Co. Ltd., A		Construction Materials		29,000		164,760
Anhui Conch Cement Co. Ltd., H		Construction Materials		377,000		2,302,836
Anta Sports Products Ltd.		Textiles, Apparel & Luxury Goods		638,000		4,340,053
Bank of Communications Co. Ltd., A		Banks		220,400		204,651
Bank of Communications Co. Ltd., H		Banks		4,234,000		3,468,127
Bank of Guiyang Co. Ltd.		Banks		11,600		22,526
China Cinda Asset Management Co. Ltd., H		Capital Markets		2,842,000		789,248
China CITIC Bank Corp. Ltd., A		Banks		29,000		27,144
China CITIC Bank Corp. Ltd., H		Banks		5,046,000		3,214,033
China Conch Venture Holdings Ltd.		Machinery		493,000		1,764,763
China Everbright Bank Co. Ltd., H		Banks		1,624,000		767,526
China Medical System Holdings Ltd.		Pharmaceuticals		638,000		618,498
China Minsheng Banking Corp. Ltd., H		Banks		3,045,000		2,211,033
China Mobile Ltd.		Wireless Telecommunication Services		348,000		3,546,519
China Oriental Group Co. Ltd.		Metals & Mining		464,000		291,406
China Petroleum & Chemical Corp., A		Oil, Gas & Consumable Fuels		52,200		44,586
China Petroleum & Chemical Corp., H		Oil, Gas & Consumable Fuels		3,828,000		3,018,531
China Shenhua Energy Co. Ltd., A		Oil, Gas & Consumable Fuels		17,400		50,774
China Shenhua Energy Co. Ltd., H		Oil, Gas & Consumable Fuels		1,363,000		3,108,007
China Yangtze Power Co. Ltd., A		Independent Power and Renewable Electricity Producers		75,400		189,280
Dali Foods Group Co. Ltd.		Food Products		986,000		737,307
Daqin Railway Co. Ltd., A		Road & Rail		75,400		93,574
Dongfeng Motor Group Co. Ltd., H		Automobiles		2,088,000		2,090,673
Fangda Carbon New Material Co. Ltd.		Electrical Equipment		11,600		38,993
Focus Media Information Technology Co. Ltd.		Technology Hardware, Storage & Peripherals		92,800		86,583
Foshan Haitian Flavouring & Food Co. Ltd.		Food Products		11,600		149,656
Guangzhou Automobile Group Co. Ltd., H		Automobiles		1,972,000		2,328,733
Heilan Home Co. Ltd., A		Textiles, Apparel & Luxury Goods		17,400		25,297
Henan Shuanghui Investment & Development Co. Ltd.		Food Products		17,400		66,931
Huayu Automotive Systems Co. Ltd.		Auto Components		17,400		52,768
Industrial Bank Co. Ltd., A		Banks		110,582		298,990
Jiangsu Expressway Co. Ltd., H		Transportation Infrastructure		696,000		984,159
Longfor Group Holdings Ltd.		Real Estate Management & Development		928,000		3,268,709
Maanshan Iron & Steel Co. Ltd., A		Metals & Mining		29,000		16,787
Maanshan Iron & Steel Co. Ltd., H		Metals & Mining		580,000		283,722
Nine Dragons Paper Holdings Ltd.		Paper & Forest Products		812,000		773,732



32	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ Emerging Markets ETF(continued)



		Industry		Shares		Value
	Common Stocks (continued)
	China (continued)
	Shaanxi Coal Industry Co. Ltd.		Oil, Gas & Consumable Fuels		34,800	$	46,140
	Shanghai International Airport Co. Ltd., A		Transportation Infrastructure		5,800		53,640
	Shenzhen Salubris Pharmaceuticals Co. Ltd.		Pharmaceuticals		5,800		23,467
	Shenzhou International Group Holdings Ltd.		Textiles, Apparel & Luxury Goods		272,600		3,653,211
	Sihuan Pharmaceutical Holdings Group Ltd.		Pharmaceuticals		2,204,000		533,456
	Sinopec Shanghai Petrochemical Co. Ltd., A		Chemicals		34,800		27,808
	Sinopec Shanghai Petrochemical Co. Ltd., H		Chemicals		2,668,000		1,271,132
	Wuhu Shunrong Sanqi Interactive Entertainment Network Technology Co. Ltd.		Entertainment		11,600		23,993
a	YY Inc., ADR		Interactive Media & Services		25,172		2,114,700


							52,585,289

	Czech Republic 0.3%
	Moneta Money Bank AS		Banks		321,378		1,109,219

	Egypt 0.3%
	Eastern Tobacco		Tobacco		594,616		624,467
	ElSewedy Electric Co.		Electrical Equipment		520,898		467,395


							1,091,862

	Hong Kong 0.4%
	Kingboard Laminates Holdings Ltd.		Chemicals		580,000		609,558
	Lee & Man Paper Manufacturing Ltd.		Paper & Forest Products		928,000		790,874


							1,400,432

	Hungary 0.8%
	MOL Hungarian Oil and Gas PLC		Oil, Gas & Consumable Fuels		224,808		2,572,680

	India 12.9%
	Bajaj Auto Ltd.		Automobiles		50,286		2,113,137
	Bharat Petroleum Corp. Ltd.		Oil, Gas & Consumable Fuels		499,496		2,866,469
	Britannia Industries Ltd.		Food Products		18,908		842,160
	Coal India Ltd.		Oil, Gas & Consumable Fuels		533,136		1,825,476
	Dabur India Ltd.		Personal Products		307,690		1,815,715
	Eicher Motors Ltd.		Automobiles		8,816		2,614,919
	HCL Technologies Ltd.		IT Services		233,276		3,661,869
	Hero Motocorp Ltd.		Automobiles		37,526		1,383,032
	Hindustan Petroleum Corp. Ltd.		Oil, Gas & Consumable Fuels		508,080		2,081,826
	Hindustan Unilever Ltd.		Household Products		138,620		3,415,325
	Indian Oil Corp. Ltd.		Oil, Gas & Consumable Fuels		974,748		2,291,414
	Infosys Ltd.		IT Services		366,850		3,939,103
	ITC Ltd.		Tobacco		827,660		3,551,381
	Marico Ltd.		Personal Products		271,962		1,360,890
	Nestle India Ltd.		Food Products		12,992		2,055,643
	Page Industries Ltd.		Textiles, Apparel & Luxury Goods		2,146		773,590
	Pidilite Industries Ltd.		Chemicals		55,216		993,330
	Tata Consultancy Services Ltd.		IT Services		125,280		3,619,873
	Tech Mahindra Ltd.		IT Services		294,814		3,302,002


							44,507,154

	Indonesia 3.7%
	Adaro Energy Tbk PT		Oil, Gas & Consumable Fuels		6,931,000		654,649
	Bukit Asam Tbk PT		Oil, Gas & Consumable Fuels		1,032,400		304,500
	Hanjaya Mandala Sampoerna Tbk PT		Tobacco		7,528,400		1,982,549
	Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk, B		Diversified Telecommunication Services		12,145,200		3,368,928
	Surya Citra Media Tbk PT		Media		4,413,800		512,980
	Unilever Indonesia Tbk PT		Household Products		1,160,000		4,009,902



franklintempleton.com	Annual Report	33

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ Emerging Markets ETF(continued)



		Industry		Shares		Value
	Common Stocks (continued)
	Indonesia (continued)
	United Tractors Tbk PT		Oil, Gas & Consumable Fuels		1,009,200	$	1,917,055


							12,750,563

	Malaysia 3.4%
	AirAsia Group Bhd.		Airlines		817,800		532,847
	British American Tobacco Malaysia Bhd.		Tobacco		133,400		1,180,913
	Digi.com Bhd.		Wireless Telecommunication Services		2,291,000		2,553,349
	Hartalega Holdings Bhd.		Health Care Equipment & Supplies		806,200		914,319
	Nestle (Malaysia) Bhd.		Food Products		46,400		1,668,468
	Petronas Chemicals Group Bhd.		Chemicals		1,490,600		3,344,494
	Petronas Dagangan Bhd.		Oil, Gas & Consumable Fuels		121,800		745,866
	Westports Holdings Bhd.		Transportation Infrastructure		672,800		619,652


							11,559,908

	Mexico 2.2%
	Grupo Aeroportuario del Pacifico SAB de CV		Transportation Infrastructure		212,976		1,891,997
a	Kimberly-Clark de Mexico SAB de CV, A		Household Products		914,254		1,552,547
	Megacable Holdings SAB de CV		Media		95,932		445,449
	Wal-Mart de Mexico SAB de CV, V		Food & Staples Retailing		1,329,882		3,559,607


							7,449,600

	Pakistan 0.2%
	MCB Bank Ltd.		Banks		249,400		348,238
	Oil & Gas Development Co. Ltd.		Oil, Gas & Consumable Fuels		458,200		480,337


							828,575

	Philippines 0.7%
	DMCI Holdings Inc.		Industrial Conglomerates		2,511,400		573,925
	Globe Telecom Inc.		Wireless Telecommunication Services		19,430		717,108
	Manila Electric Co.		Electric Utilities		140,360		1,015,745

						2,306,778

	Poland 0.1%
a	Jastrzebska Spolka Weglowa SA		Metals & Mining		29,986		477,104

	Qatar 2.3%
	Barwa Real Estate Co.		Real Estate Management & Development		75,516		760,190
	Industries Qatar QSC		Industrial Conglomerates		87,406		2,974,553
	Qatar Electricity & Water Co. QSC		Multi-Utilities		26,738		1,265,314
	Qatar National Bank SAQ		Banks		62,002		3,073,916
	The Commercial Bank PQSC		Banks		742		9,162


							8,083,135

	Russia 11.3%
	Alrosa PJSC		Metals & Mining		2,167,170		3,048,668
	Gazprom PJSC		Oil, Gas & Consumable Fuels		1,443,098		3,286,303
	Inter RAO UES PJSC		Electric Utilities		25,774,330		1,466,093
	LUKOIL PJSC		Oil, Gas & Consumable Fuels		45,124		4,048,264
	Magnitogorsk Iron & Steel Works		Metals & Mining		1,369,960		957,132
	MMC Norilsk Nickel PJSC		Metals & Mining		18,502		3,863,883
	Mobile TeleSystems PJSC, ADR		Wireless Telecommunication Services		426,010		3,220,636
	NLMK PJSC		Metals & Mining		862,576		2,238,581
b	Novatek PJSC, GDR, Reg S		Oil, Gas & Consumable Fuels		116		19,882
b	Novatek PJSC, GDR, Reg S		Oil, Gas & Consumable Fuels		18,444		3,161,302
	Polymetal International PLC		Metals & Mining		59,907		674,767
	Polymetal International PLC		Metals & Mining		1,805		20,273
	Polyus Gold OJSC		Metals & Mining		13,746		1,137,593
	Rosneft PJSC		Oil, Gas & Consumable Fuels		644,670		4,042,833
	Severstal PJSC		Metals & Mining		197,896		3,096,573



34	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ Emerging Markets ETF(continued)



	Industry		Shares		Value
Common Stocks (continued)
Russia (continued)
Surgutneftegas PJSC		Oil, Gas & Consumable Fuels		3,267,256	$	1,237,079
Tatneft PAO		Oil, Gas & Consumable Fuels		289,014		3,321,368


						38,841,230

South Africa 4.7%
Clicks Group Ltd.		Food & Staples Retailing		118,320		1,511,362
Exxaro Resources Ltd.		Oil, Gas & Consumable Fuels		154,164		1,756,911
Kumba Iron Ore Ltd.		Metals & Mining		46,632		1,391,401
Mr. Price Group Ltd.		Specialty Retail		200,912		2,640,329
RMB Holdings Ltd.		Diversified Financial Services		342,954		1,806,892
Telkom SA SOC Ltd.		Diversified Telecommunication Services		160,254		810,313
Tiger Brands Ltd.		Food Products		102,776		1,888,577
Truworths International Ltd.		Specialty Retail		321,668		1,547,754
Vodacom Group Ltd.		Wireless Telecommunication Services		388,020		2,998,150


						16,351,689

South Korea 10.5%
BNK Financial Group Inc.		Banks		159,558		938,990
Coway Co. Ltd.		Household Durables		37,294		3,104,822
DGB Financial Group Inc.		Banks		113,738		818,641
Hana Financial Group Inc.		Banks		96,048		3,080,035
Hanwha Life Insurance Co. Ltd.		Insurance		171,100		602,942
Hyundai Marine & Fire Insurance Co. Ltd.		Insurance		36,656		1,223,912
Industrial Bank of Korea		Banks		172,898		2,140,091
Kangwon Land Inc.		Hotels, Restaurants & Leisure		71,746		2,022,616
KB Financial Group Inc.		Banks		79,054		2,914,642
KT&G Corp.		Tobacco		36,656		3,342,345
Lotte Chemical Corp.		Chemicals		12,470		3,191,380
NCsoft Corp.		Entertainment		5,626		2,458,370
S-1 Corp.		Commercial Services & Supplies		10,788		955,153
Samsung Electronics Co. Ltd.		Technology Hardware, Storage & Peripherals		75,342		2,963,633
SK Hynix Inc.		Semiconductors & Semiconductor Equipment		54,984		3,594,232
SK Telecom Co. Ltd.		Wireless Telecommunication Services		13,108		2,904,292


						36,256,096

Taiwan 13.2%
AU Optronics Corp.		Electronic Equipment, Instruments & Components		4,060,000		1,495,141
Catcher Technology Co. Ltd.		Technology Hardware, Storage & Peripherals		393,820		3,028,353
Chicony Electronics Co. Ltd.		Technology Hardware, Storage & Peripherals		348,000		809,578
Chunghwa Telecom Co. Ltd.		Diversified Telecommunication Services		928,000		3,297,026
Far EasTone Telecommunications Co. Ltd.		Wireless Telecommunication Services		986,000		2,376,983
Feng Tay Enterprise Co. Ltd.		Textiles, Apparel & Luxury Goods		232,000		1,640,986
Formosa Chemicals & Fibre Corp.		Chemicals		928,000		3,372,301
Formosa Petrochemical Corp.		Oil, Gas & Consumable Fuels		812,000		3,042,975
Formosa Plastics Corp.		Chemicals		986,000		3,503,090
Micro-Star International Co. Ltd.		Technology Hardware, Storage & Peripherals		406,000		1,139,469
Nan Ya Plastics Corp.		Chemicals		1,276,000		3,266,540
Nanya Technology Corp.		Semiconductors & Semiconductor Equipment		754,000		1,502,104
Nien Made Enterprise Co. Ltd.		Household Durables		116,000		1,021,852
Novatek Microelectronics Corp. Ltd.		Semiconductors & Semiconductor Equipment		406,000		2,608,264
Phison Electronics Corp.		Semiconductors & Semiconductor Equipment		116,000		1,136,646
President Chain Store Corp.		Food & Staples Retailing		323,060		3,181,282
Taiwan Mobile Co. Ltd.		Wireless Telecommunication Services		928,000		3,357,246
Taiwan Semiconductor Manufacturing Co. Ltd.		Semiconductors & Semiconductor Equipment		464,000		3,695,982
Vanguard International Semiconductor Corp.		Semiconductors & Semiconductor Equipment		522,000		1,126,296
Yageo Corp.		Electronic Equipment, Instruments & Components		86,000		901,283


						45,503,397



franklintempleton.com	Annual Report	35

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ Emerging Markets ETF(continued)



		Industry		Shares		Value
	Common Stocks (continued)
	Thailand 5.6%
	Advanced Info Service PCL		Wireless Telecommunication Services		609,000	$	3,530,991
	Bumrungrad Hospital PCL		Health Care Providers & Services		226,200		1,279,436
	Central Pattana PCL		Real Estate Management & Development		864,200		1,994,727
	Delta Electronics Thailand PCL		Electronic Equipment, Instruments & Components		301,600		674,763
	Glow Energy PCL		Independent Power and Renewable Electricity Producers		319,000		914,731
	PTT Global Chemical PCL, NVDR		Chemicals		1,310,800		2,777,731
	PTT PCL		Oil, Gas & Consumable Fuels		2,244,600		3,395,015
	Thai Oil PCL		Oil, Gas & Consumable Fuels		713,400		1,562,354
	The Siam Cement PCL		Construction Materials		197,200		2,995,128


							19,124,876

	Turkey 2.8%
	BIM Birlesik Magazalar AS		Food & Staples Retailing		147,146		1,984,658
	Eregli Demir ve Celik Fabrikalari AS		Metals & Mining		1,069,288		1,726,123
	Ford Otomotiv Sanayi AS		Automobiles		58,116		501,788
	Petkim Petrokimya Holding AS		Chemicals		501,584		403,071
	TAV Havalimanlari Holding AS		Transportation Infrastructure		119,712		494,562
	Tupras-Turkiye Petrol Rafinerileri AS		Oil, Gas & Consumable Fuels		101,210		2,235,735
	Turkcell Iletisim Hizmetleri AS		Wireless Telecommunication Services		482,096		1,031,673
	Turkiye Halk Bankasi AS		Banks		390,688		441,198
	Turkiye Is Bankasi AS, C		Banks		1,000,732		974,233


							9,793,041

	United Arab Emirates 1.8%
	Aldar Properties PJSC		Real Estate Management & Development		2,302,890		1,134,799
	Dubai Islamic Bank PJSC		Banks		976,430		1,302,580
	Emaar Development PJSC		Real Estate Management & Development		420,268		443,941
	Emirates Telecommunications Group Co. PJSC		Diversified Telecommunication Services		712,820		3,240,885


							6,122,205

	Total Common Stocks (Cost $322,395,192)						332,742,346

	Preferred Stocks 2.9%
	Brazil 1.7%
c	Itausa-Investimentos Itau SA, 3.414%, pfd.		Banks		1,020,800		3,142,376
c	Telefonica Brasil SA, 9.571%, pfd.		Diversified Telecommunication Services		232,000		2,831,667


							5,974,043

	Russia 0.8%
c	Surgutneftegas PJSC, 3.367%, pfd.		Oil, Gas & Consumable Fuels		3,515,264		2,192,709
c	Transneft PJSC, 4.294%, pfd.		Oil, Gas & Consumable Fuels		232		623,281


							2,815,990

	South Korea 0.4%
c	LG Chem Ltd., 2.909%, pfd.		Chemicals		4,466		818,367
c	Samsung Electronics Co. Ltd., 3.909%, pfd.		Technology Hardware, Storage & Peripherals		14,442		461,213
								��

							1,279,580



36	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ Emerging Markets ETF(continued)



	Value
Total Preferred Stocks (Cost $9,277,272)	$	10,069,613

Total Investments (Cost $331,672,464) 99.5%		342,811,959
Other Assets, less Liabilities 0.5%		1,672,365

Net Assets 100.0%	$	344,484,324

^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. These securities have been deemed liquid under guidelines approved by the Fund’s Board of Trustees. At March 31, 2019, the aggregate value of these securities was $3,181,184, representing 0.9% of net assets.

^cVariable rate security. The rate shown represents the yield at period end.

At March 31, 2019, 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

MSCI Emerging Markets Index

Long

1,797,580

6/21/19

16,210

*As of period end.

See Abbreviations on page 81.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	37

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin LibertyQ Global Dividend ETF



	Year Ended March 31,

	2019			2018			2017^a
Per share operating performance (for a share outstanding throughout the year)

Net asset value, beginning of year	$	28.22		$	27.31		$	25.43


Income from investment operations^b:

Net investment income^c		0.95			0.86			0.67

Net realized and unrealized gains (losses)		(0.02	)		1.03			1.79


Total from investment operations		0.93			1.89			2.46


Less distributions from net investment income		(0.95	)		(0.98	)		(0.58	)


Net asset value, end of year	$	28.20		$	28.22		$	27.31


Total return^d		3.51%			6.91%			9.79%

Ratios to average net assets^e

Expenses before waiver and payments by affiliates		0.45%			0.75%	^f		0.98%

Expenses net of waiver and payments by affiliates		0.45%			0.45%	^f		0.45%

Net investment income		3.43%			3.05%			3.11%

Supplemental data

Net assets, end of year (000’s)		$16,920			$16,933			$27,306

Portfolio turnover rate^g		25.75%			43.32%			13.38%

^aFor the period June 1, 2016 (commencement of operations) to March 31, 2017.

^cBased on average daily shares outstanding.

^eRatios are annualized for periods less than one year.

^fEffective December 1, 2017, the Fund replaced the prior fee structure with a unified management fee. See Note 3(a).

^gPortfolio turnover rate excludes the value of portfolio securities received or delivered as a result of processing capital share transactions in Creation Units, if any.



38	Annual Report \| The accompanying notes are an integral part of these financial statements.	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2019

Franklin LibertyQ Global Dividend ETF



	Industry		Shares		Value
Common Stocks 97.7%
Australia 11.6%
Amcor Ltd.		Containers & Packaging		12,078	$	132,040
Australian Stock Exchange Ltd.		Capital Markets		1,215		60,277
Brambles Ltd.		Commercial Services & Supplies		19,152		159,990
Challenger Ltd.		Diversified Financial Services		5,730		33,702
Commonwealth Bank of Australia		Banks		6,423		322,300
Flight Centre Travel Group Ltd.		Hotels, Restaurants & Leisure		564		16,847
Macquarie Group Ltd.		Capital Markets		2,043		187,820
National Australia Bank Ltd.		Banks		18,606		333,988
Telstra Corp. Ltd.		Diversified Telecommunication Services		50,772		119,739
Wesfarmers Ltd.		Multiline Retail		11,373		279,931
Westpac Banking Corp.		Banks		17,472		321,699


						1,968,333

Belgium 0.3%
Proximus SADP		Diversified Telecommunication Services		1,674		48,326

Canada 8.6%
Bank of Nova Scotia		Banks		6,132		326,532
Canadian Imperial Bank of Commerce		Banks		3,804		300,687
CI Financial Corp.		Capital Markets		4,170		56,934
IGM Financial Inc.		Capital Markets		951		24,474
Royal Bank of Canada		Banks		4,563		344,355
TELUS Corp.		Diversified Telecommunication Services		1,521		56,311
The Toronto-Dominion Bank		Banks		6,063		329,121
Vermilion Energy Inc.		Oil, Gas & Consumable Fuels		927		22,891


						1,461,305

China 0.9%
Anta Sports Products Ltd.		Textiles, Apparel & Luxury Goods		9,000		61,223
China Vanke Co. Ltd., A		Real Estate Management & Development		1,200		5,486
China Vanke Co. Ltd., H		Real Estate Management & Development		11,700		49,185
Longfor Group Holdings Ltd.		Real Estate Management & Development		10,500		36,984


						152,878

Denmark 0.3%
Tryg AS		Insurance		1,671		45,893

Finland 2.4%
Elisa OYJ		Diversified Telecommunication Services		1,473		66,522
Kone OYJ, B		Machinery		3,372		170,230
Nokian Renkaat OYJ		Auto Components		1,203		40,308
Sampo OYJ, A		Insurance		2,682		121,694


						398,754

France 1.9%
Sanofi		Pharmaceuticals		3,582		316,696

Germany 2.6%
Deutsche Boerse AG		Capital Markets		2,022		259,507
Hannover Rueck SE		Insurance		582		83,648
Hugo Boss AG		Textiles, Apparel & Luxury Goods		942		64,394
ProSiebenSat.1 Media SE		Media		2,805		40,063


						447,612

Hong Kong 1.0%
Sands China Ltd.		Hotels, Restaurants & Leisure		34,800		174,888

Indonesia 0.7%
Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk, B		Diversified Telecommunication Services		418,800		116,170



franklintempleton.com	Annual Report	39

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ Global Dividend ETF(continued)



		Industry		Shares		Value
	Common Stocks (continued)
	Japan 3.1%
	Daito Trust Construction Co. Ltd.		Real Estate Management & Development		1,300	$	181,226
	Lawson Inc.		Food & Staples Retailing		430		23,853
	NTT DoCoMo Inc.		Wireless Telecommunication Services		14,100		312,293

						517,372

	Malaysia 0.2%
	Nestle (Malaysia) Bhd.		Food Products		900		32,363

	Mexico 0.2%
a	Kimberly-Clark de Mexico SAB de CV, A		Household Products		15,372		26,104

	Norway 0.7%
	Telenor ASA		Diversified Telecommunication Services		6,168		123,695

	Qatar 1.4%
	Qatar National Bank SAQ		Banks		4,704		233,213

	Singapore 1.6%
	ComfortDelGro Corp. Ltd.		Road & Rail		22,500		42,691
	SATS Ltd.		Transportation Infrastructure		7,800		29,426
	Singapore Telecommunications Ltd.		Diversified Telecommunication Services		70,200		156,518
	Singapore Telecommunications Ltd.		Diversified Telecommunication Services		6,900		15,384
	Venture Corp. Ltd.		Electronic Equipment, Instruments & Components		2,400		31,788


							275,807

	South Africa 2.6%
	Absa Group Ltd.		Banks		5,124		54,043
	FirstRand Ltd.		Diversified Financial Services		37,644		164,345
	Mr. Price Group Ltd.		Specialty Retail		3,204		42,106
	Rand Merchant Investment Holdings Ltd.		Insurance		7,998		18,596
	RMB Holdings Ltd.		Diversified Financial Services		10,215		53,819
	Sanlam Ltd.		Insurance		16,872		86,295
	Truworths International Ltd.		Specialty Retail		4,920		23,673


							442,877

	Spain 0.4%
	Red Electrica Corp. SA		Electric Utilities		3,348		71,427

	Sweden 2.0%
	Atlas Copco AB		Machinery		4,920		122,055
	Hennes & Mauritz AB, B		Specialty Retail		13,137		219,533


							341,588

	Switzerland 7.0%
	Novartis AG		Pharmaceuticals		3,648		350,844
	Roche Holding AG		Pharmaceuticals		1,296		357,021
	SGS SA		Professional Services		48		119,434
	Zurich Insurance Group AG		Insurance		1,062		351,476


							1,178,775

	Taiwan 0.3%
	Feng Tay Enterprise Co. Ltd.		Textiles, Apparel & Luxury Goods		3,000		21,219
	Phison Electronics Corp.		Semiconductors & Semiconductor Equipment		1,000		9,799
	Vanguard International Semiconductor Corp.		Semiconductors & Semiconductor Equipment		9,000		19,419


							50,437

	United Kingdom 8.8%
	BAE Systems PLC		Aerospace & Defense		24,606		154,671
	BT Group PLC		Diversified Telecommunication Services		73,191		212,631
	Direct Line Insurance Group PLC		Insurance		15,720		72,308



40	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ Global Dividend ETF(continued)



		Industry		Shares		Value
	Common Stocks (continued)
	United Kingdom (continued)
	Legal & General Group PLC		Insurance		52,377	$	187,892
	Marks & Spencer Group PLC		Multiline Retail		13,296		48,320
	Next PLC		Multiline Retail		1,101		80,054
	Smiths Group PLC		Industrial Conglomerates		3,102		58,004
	Unilever NV, IDR		Personal Products		5,796		336,986
	Unilever PLC		Personal Products		5,901		337,945


							1,488,811

	United States 39.1%
	Altria Group Inc.		Tobacco		5,799		333,037
	Arthur J. Gallagher & Co.		Insurance		1,074		83,879
	Clorox Co.		Household Products		1,887		302,788
	Darden Restaurants Inc.		Hotels, Restaurants & Leisure		1,479		179,654
	Eli Lilly & Co.		Pharmaceuticals		2,646		343,345
	Emerson Electric Co.		Electrical Equipment		4,815		329,683
	Garmin Ltd.		Household Durables		1,323		114,241
	H&R Block Inc.		Diversified Consumer Services		2,661		63,704
	Intel Corp.		Semiconductors & Semiconductor Equipment		6,810		365,697
	International Business Machines Corp.		IT Services		2,754		388,589
	Johnson & Johnson		Pharmaceuticals		2,205		308,237
	Kimberly-Clark Corp.		Household Products		2,892		358,319
	Las Vegas Sands Corp.		Hotels, Restaurants & Leisure		4,587		279,624
	Leggett & Platt Inc.		Household Durables		1,305		55,097
	Lockheed Martin Corp.		Aerospace & Defense		1,101		330,476
	LyondellBasell Industries NV, A		Chemicals		3,534		297,139
	Maxim Integrated Products Inc.		Semiconductors & Semiconductor Equipment		3,534		187,903
	McDonald’s Corp.		Hotels, Restaurants & Leisure		1,758		333,844
	Merck & Co. Inc.		Pharmaceuticals		4,317		359,045
	Paychex Inc.		IT Services		4,251		340,930
	Philip Morris International Inc.		Tobacco		3,729		329,606
	Seagate Technology PLC		Technology Hardware, Storage & Peripherals		3,192		152,865
	Sysco Corp.		Food & Staples Retailing		4,389		293,010
	Tapestry Inc.		Textiles, Apparel & Luxury Goods		2,871		93,279
	The Gap Inc.		Specialty Retail		1,389		36,364
	The Procter & Gamble Co.		Household Products		3,504		364,591


							6,624,946

	Total Common Stocks (Cost $15,584,037)						16,538,270

	Preferred Stocks (Cost $172,555) 1.8%
	Brazil 1.8%
b	Itau Unibanco Holding SA, 4.179%, pfd.		Banks		34,500		305,222

	Total Investments (Cost $15,756,592) 99.5%						16,843,492
	Other Assets, less Liabilities 0.5%						76,629

	Net Assets 100.0%					$	16,920,121

^aNon-income producing.

^bVariable rate security. The rate shown represents the yield at period end.



franklintempleton.com	Annual Report	41

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ Global Dividend ETF(continued)

At March 31, 2019, 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

MSCI All Country World Index

Long

50,200

6/21/19

397

*As of period end.

See Abbreviations on page 81.



42	Annual Report \| The accompanying notes are an integral part of these financial statements.	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin LibertyQ Global Equity ETF



	Year Ended March 31,

	2019			2018			2017^a
Per share operating performance (for a share outstanding throughout the year)

Net asset value, beginning of year	$	30.14		$	27.18		$	25.32


Income from investment operations^b:

Net investment income^c		0.89			0.74			0.56

Net realized and unrealized gains (losses)		0.67			3.01			1.92


Total from investment operations		1.56			3.75			2.48


Less distributions from net investment income		(0.80	)		(0.79	)		(0.62	)


Net asset value, end of year	$	30.90		$	30.14		$	27.18


Total return^d		5.44%			13.91%			9.95%

Ratios to average net assets^e

Expenses before waiver and payments by affiliates		0.35%			0.90%	^f		1.04%

Expenses net of waiver and payments by affiliates		0.34%			0.35%	^f		0.35%

Net investment income		2.99%			2.53%			2.60%

Supplemental data

Net assets, end of year (000’s)		$24,721			$18,082			$21,744

Portfolio turnover rate^g		34.99%			35.01%			13.84%

^aFor the period June 1, 2016 (commencement of operations) to March 31, 2017.

^cBased on average daily shares outstanding.

^eRatios are annualized for periods less than one year.

^fEffective December 1, 2017, the Fund replaced the prior fee structure with a unified management fee. See Note 3(a).

^gPortfolio turnover rate excludes the value of portfolio securities received or delivered as a result of processing capital share transactions in Creation Units, if any.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	43

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2019

Franklin LibertyQ Global Equity ETF



	Industry			Shares		Value
Common Stocks 97.3%
Australia 5.4%
AGL Energy Ltd.		Multi-Utilities			1,016	$	15,712
Alumina Ltd.		Metals & Mining			6,420		11,036
Amcor Ltd.		Containers & Packaging			3,436		37,563
Aristocrat Leisure Ltd.		Hotels, Restaurants & Leisure			1,928		33,568
Aurizon Holdings Ltd.		Road & Rail			5,716		18,475
Bendigo and Adelaide Bank Ltd.		Banks			432		2,970
BHP Group Ltd.		Metals & Mining			7,536		206,044
Bluescope Steel Ltd.		Metals & Mining			1,208		11,970
Brambles Ltd.		Commercial Services & Supplies			3,932		32,847
Cimic Group Ltd.		Construction & Engineering			292		10,010
Coca-Cola Amatil Ltd.		Beverages			1,772		10,888
Cochlear Ltd.		Health Care Equipment & Supplies			208		25,603
Crown Resorts Ltd.		Hotels, Restaurants & Leisure			1,036		8,470
CSL Ltd.		Biotechnology			1,368		189,435
Dexus		Equity Real Estate Investment Trusts (REITs	)		3,180		28,779
Domino’s Pizza Enterprises Ltd.		Hotels, Restaurants & Leisure			108		3,331
Flight Centre Travel Group Ltd.		Hotels, Restaurants & Leisure			208		6,213
Fortescue Metals Group Ltd.		Metals & Mining			5,140		25,960
Goodman Group		Equity Real Estate Investment Trusts (REITs	)		2,556		24,239
GPT Group		Equity Real Estate Investment Trusts (REITs	)		5,468		24,121
Harvey Norman Holdings Ltd.		Multiline Retail			2,880		8,224
Macquarie Group Ltd.		Capital Markets			416		38,244
Medibank Private Ltd.		Insurance			9,840		19,292
Mirvac Group		Equity Real Estate Investment Trusts (REITs	)		5,052		9,869
National Australia Bank Ltd.		Banks			6,924		124,290
REA Group Ltd.		Interactive Media & Services			136		7,217
Rio Tinto Ltd.		Metals & Mining			1,192		82,904
Scentre Group		Equity Real Estate Investment Trusts (REITs	)		7,732		22,574
Sonic Healthcare Ltd.		Health Care Providers & Services			1,100		19,191
South32 Ltd.		Metals & Mining			13,540		35,876
Telstra Corp. Ltd.		Diversified Telecommunication Services			15,096		35,602
Vicinity Centres		Equity Real Estate Investment Trusts (REITs	)		8,848		16,341
Washington H. Soul Pattinson & Co. Ltd.		Oil, Gas & Consumable Fuels			240		4,485
Wesfarmers Ltd.		Multiline Retail			3,396		83,588
Woodside Petroleum Ltd.		Oil, Gas & Consumable Fuels			1,200		29,511
Woolworths Group Ltd.		Food & Staples Retailing			3,776		81,541


							1,345,983

Austria 0.1%
OMV AG		Oil, Gas & Consumable Fuels			348		18,901

Belgium 0.1%
Colruyt SA		Food & Staples Retailing			192		14,207
Proximus SADP		Diversified Telecommunication Services			512		14,781


							28,988

Brazil 0.3%
Banco Santander Brasil SA		Banks			800		9,039
BB Seguridade Participacoes SA		Insurance			2,800		19,080
Cielo SA		IT Services			3,200		7,803
Companhia de Saneamento Basico do Estado de Sao Paulo		Water Utilities			800		8,634
Cosan SA		Oil, Gas & Consumable Fuels			100		1,096
Engie Brasil SA		Independent Power and Renewable Electricity Producers			800		8,780
Hypera SA		Pharmaceuticals			400		2,662
IRB Brasil Resseguros SA		Insurance			280		6,565
Kroton Educacional SA		Diversified Consumer Services			3,200		8,716
M. Dias Branco SA		Food Products			400		4,466



44	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ Global Equity ETF(continued)



	Industry			Shares		Value
Common Stocks(continued)
Brazil (continued)
Porto Seguro SA		Insurance			400	$	5,533


							82,374

Canada 2.5%
BCE Inc.		Diversified Telecommunication Services			440		19,544
Canadian Imperial Bank of Commerce		Banks			1,072		84,736
Canadian National Railway Co.		Road & Rail			2,020		180,884
CI Financial Corp.		Capital Markets			784		10,704
Constellation Software Inc.		Software			60		50,863
First Capital Realty Inc.		Real Estate Management & Development			448		7,176
Gildan Activewear Inc.		Textiles, Apparel & Luxury Goods			704		25,321
H&R Real Estate Investment Trust		Equity Real Estate Investment Trusts (REITs	)		428		7,500
Inter Pipeline Ltd.		Oil, Gas & Consumable Fuels			580		9,599
Magna International Inc.		Auto Components			1,160		56,500
Metro Inc., A		Food & Staples Retailing			736		27,105
Power Corp. of Canada		Insurance			400		9,330
RioCan REIT		Equity Real Estate Investment Trusts (REITs	)		416		8,242
Rogers Communications Inc., B		Wireless Telecommunication Services			892		47,987
Saputo Inc.		Food Products			676		23,049
SmartCentres REIT		Equity Real Estate Investment Trusts (REITs	)		184		4,822
Teck Resources Ltd., B		Metals & Mining			1,032		23,885
TELUS Corp.		Diversified Telecommunication Services			488		18,067
West Fraser Timber Co. Ltd.		Paper & Forest Products			144		7,006


							622,320

Chile 0.1%
Aguas Andinas SA, A		Water Utilities			4,608		2,620
Colbun SA		Independent Power and Renewable Electricity Producers			9,508		2,149
Compania Cervecerias Unidas SA		Beverages			280		4,009
Enel Chile SA		Electric Utilities			60,712		6,361


							15,139

China 2.5%
AAC Technologies Holdings Inc.		Electronic Equipment, Instruments & Components			2,000		11,834
Agricultural Bank of China Ltd., A		Banks			1,200		666
Agricultural Bank of China Ltd., H		Banks			72,000		33,203
Anhui Conch Cement Co. Ltd., A		Construction Materials			400		2,272
Anhui Conch Cement Co. Ltd., H		Construction Materials			2,500		15,271
Anta Sports Products Ltd.		Textiles, Apparel & Luxury Goods			3,000		20,408
Bank of China Ltd., A		Banks			800		449
Bank of China Ltd., H		Banks			216,000		97,957
Bank of Communications Co. Ltd., A		Banks			100		93
Bank of Communications Co. Ltd., H		Banks			24,000		19,659
China Cinda Asset Management Co. Ltd., H		Capital Markets			20,000		5,554
China CITIC Bank Corp. Ltd., H		Banks			24,000		15,287
China Conch Venture Holdings Ltd.		Machinery			4,000		14,318
China Everbright Bank Co. Ltd., H		Banks			8,000		3,781
China Minsheng Banking Corp. Ltd., H		Banks			16,000		11,618
China Mobile Ltd.		Wireless Telecommunication Services			18,500		188,536
China Petroleum & Chemical Corp., H		Oil, Gas & Consumable Fuels			40,000		31,542
China Resources Cement Holdings Ltd.		Construction Materials			2,000		2,064
China Shenhua Energy Co. Ltd., H		Oil, Gas & Consumable Fuels			10,000		22,803
China Yangtze Power Co. Ltd., A		Independent Power and Renewable Electricity Producers			400		1,004
China Zhongwang Holdings Ltd.		Metals & Mining			1,600		872
Chongqing Rural Commercial Bank Co. Ltd., H		Banks			8,000		4,616
Dali Foods Group Co. Ltd.		Food Products			4,000		2,991



franklintempleton.com	Annual Report	45

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ Global Equity ETF(continued)



		Industry			Shares		Value
	Common Stocks(continued)
	China (continued)
	Daqin Railway Co. Ltd., A		Road & Rail			1,200	$	1,489
	Dongfeng Motor Group Co. Ltd., H		Automobiles			8,000		8,010
	Focus Media Information Technology Co. Ltd.		Technology Hardware, Storage & Peripherals			460		429
	Fuyao Group Glass Industries Co. Ltd., H		Auto Components			1,600		5,371
	Guangdong Investment Ltd.		Water Utilities			8,000		15,450
	Guangzhou Automobile Group Co. Ltd., H		Automobiles			9,600		11,337
	Jiangsu Expressway Co. Ltd., H		Transportation Infrastructure			2,000		2,828
	Longfor Group Holdings Ltd.		Real Estate Management & Development			4,000		14,089
	Nexteer Automotive Group Ltd.		Auto Components			1,000		1,236
	Nine Dragons Paper Holdings Ltd.		Paper & Forest Products			4,000		3,811
	SAIC Motor Corp. Ltd.		Automobiles			400		1,552
	Shenzhou International Group Holdings Ltd.		Textiles, Apparel & Luxury Goods			2,000		26,803
	Sihuan Pharmaceutical Holdings Group Ltd.		Pharmaceuticals			20,000		4,841
	Sino-Ocean Land Holdings Ltd.		Real Estate Management & Development			8,000		3,506
	Sinopec Shanghai Petrochemical Co. Ltd., H		Chemicals			8,000		3,811
	Yuzhou Properties Co. Ltd.		Real Estate Management & Development			8,000		4,831
a	YY Inc., ADR		Interactive Media & Services			116		9,745


								625,937

	Colombia 0.0%^†
	Ecopetrol SA		Oil, Gas & Consumable Fuels			10,336		11,081

	Czech Republic 0.0%^†
	Moneta Money Bank AS		Banks			1,064		3,672

	Denmark 1.5%
	Coloplast AS, B		Health Care Equipment & Supplies			412		45,249
	Novo Nordisk AS, B		Pharmaceuticals			5,244		274,794
	Novozymes AS		Chemicals			448		20,619
	Pandora AS		Textiles, Apparel & Luxury Goods			472		22,121


								362,783

	Egypt 0.0%^†
	Eastern Tobacco		Tobacco			1,980		2,079
	ElSewedy Electric Co.		Electrical Equipment			1,840		1,651


								3,730

	Finland 0.2%
	Elisa OYJ		Diversified Telecommunication Services			396		17,884
	Nokian Renkaat OYJ		Auto Components			344		11,526
	Orion OYJ		Pharmaceuticals			312		11,708


								41,118

	France 0.8%
	Cie Generale des Etablissements Michelin SCA		Auto Components			460		54,440
	Covivio		Equity Real Estate Investment Trusts (REITs	)		60		6,373
	Hermes International		Textiles, Apparel & Luxury Goods			88		58,121
	Peugeot SA		Automobiles			1,484		36,226
	Societe BIC SA		Commercial Services & Supplies			68		6,066
	Societe Generale SA		Banks			984		28,478


								189,704

	Germany 0.4%
	Aroundtown SA		Real Estate Management & Development			1,600		13,205
	Covestro AG		Chemicals			612		33,686
	Deutsche Lufthansa AG		Airlines			648		14,235
	Hugo Boss AG		Textiles, Apparel & Luxury Goods			220		15,039
	ProSiebenSat.1 Media SE		Media			728		10,398
	TUI AG		Hotels, Restaurants & Leisure			1,200		11,502


								98,065



46	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ Global Equity ETF(continued)



		Industry		Shares		Value
	Common Stocks(continued)
	Greece 0.0%^†
	JUMBO SA		Specialty Retail		260	$	4,350

	Hong Kong 1.1%
	CLP Holdings Ltd.		Electric Utilities		4,400		51,007
	Galaxy Entertainment Group Ltd.		Hotels, Restaurants & Leisure		5,000		34,045
	HKT Trust and HKT Ltd.		Diversified Telecommunication Services		12,000		19,292
	Hongkong Land Holdings Ltd.		Real Estate Management & Development		2,800		19,908
	Jardine Matheson Holdings Ltd.		Industrial Conglomerates		500		31,180
	Kerry Properties Ltd.		Real Estate Management & Development		2,000		8,930
	Kingboard Holdings Ltd.		Electronic Equipment, Instruments & Components		2,000		7,096
	Kingboard Laminates Holdings Ltd.		Electronic Equipment, Instruments & Components		2,000		2,102
	Lee & Man Paper Manufacturing Ltd.		Paper & Forest Products		4,000		3,409
	NWS Holdings Ltd.		Industrial Conglomerates		4,000		8,744
	Sands China Ltd.		Hotels, Restaurants & Leisure		8,400		42,214
	Swire Properties Ltd.		Real Estate Management & Development		2,400		10,318
b	WH Group Ltd., Reg S		Food Products		20,000		21,401
	Yue Yuen Industrial Holdings Ltd.		Textiles, Apparel & Luxury Goods		2,000		6,879


							266,525

	Hungary 0.1%
	MOL Hungarian Oil and Gas PLC		Oil, Gas & Consumable Fuels		1,052		12,039

	India 0.5%
	Infosys Ltd., ADR		IT Services		10,760		117,607

	Indonesia 0.4%
	Adaro Energy Tbk PT		Oil, Gas & Consumable Fuels		39,600		3,740
	Bukit Asam Tbk PT		Oil, Gas & Consumable Fuels		8,800		2,596
	Gudang Garam Tbk PT		Tobacco		800		4,674
	Hanjaya Mandala Sampoerna Tbk PT		Tobacco		33,200		8,743
	Indofood CBP Sukses Makmur Tbk PT		Food Products		4,000		2,619
	Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk, B		Diversified Telecommunication Services		152,800		42,385
	Surya Citra Media Tbk PT		Media		18,400		2,139
	Unilever Indonesia Tbk PT		Household Products		6,000		20,741
	United Tractors Tbk PT		Oil, Gas & Consumable Fuels		4,400		8,358


							95,995

	Israel 0.3%
	Bank LeumiLe-Israel BM		Banks		3,352		21,898
	Bezeq Israeli Telecommunication Corp. Ltd.		Diversified Telecommunication Services		6,672		4,789
a	Check Point Software Technologies Ltd.		Software		344		43,512
	Israel Chemicals Ltd.		Chemicals		1,172		6,097


							76,296

	Italy 0.5%
	Intesa Sanpaolo SpA		Banks		33,760		82,297
	Moncler SpA		Textiles, Apparel & Luxury Goods		436		17,585
b	Poste Italiane SpA, Reg S		Insurance		1,272		12,386


							112,268

	Japan 5.2%
	ABC-Mart Inc.		Specialty Retail		100		5,954
	Astellas Pharma Inc.		Pharmaceuticals		6,000		89,904
	Bandai Namco Holdings Inc.		Leisure Products		400		18,756
	Bridgestone Corp.		Auto Components		1,600		61,667
	CANON Inc.		Technology Hardware, Storage & Peripherals		2,500		72,571
	Daito Trust Construction Co. Ltd.		Real Estate Management & Development		240		33,457
	Hoya Corp.		Health Care Equipment & Supplies		1,100		72,638
	Idemitsu Kosan Co. Ltd.		Oil, Gas & Consumable Fuels		400		13,389



franklintempleton.com	Annual Report	47

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ Global Equity ETF(continued)



		Industry			Shares		Value
	Common Stocks(continued)
	Japan (continued)
	Iida Group Holdings Co. Ltd.		Household Durables			400	$	7,246
	ITOCHU Corp.		Trading Companies & Distributors			3,600		65,131
	Japan Airlines Co. Ltd.		Airlines			400		14,090
	Japan Post Bank Co. Ltd.		Banks			800		8,738
	Japan Tobacco Inc.		Tobacco			3,200		79,360
	JFE Holdings Inc.		Metals & Mining			800		13,577
	JXTG Holdings Inc.		Oil, Gas & Consumable Fuels			6,800		31,117
	Kakaku.com Inc.		Interactive Media & Services			400		7,687
	KAO Corp.		Personal Products			973		76,637
	KDDI Corp.		Wireless Telecommunication Services			5,600		120,667
	Lawson Inc.		Food & Staples Retailing			100		5,547
	Marubeni Corp.		Trading Companies & Distributors			3,200		22,117
	Mitsubishi Chemical Holdings Corp.		Chemicals			1,600		11,267
	Mitsubishi Gas Chemical Co. Inc.		Chemicals			400		5,706
	Nippon Telegraph & Telephone Corp.		Diversified Telecommunication Services			2,000		84,980
	Nissan Motor Co. Ltd.		Automobiles			6,400		52,514
	NTT DoCoMo Inc.		Wireless Telecommunication Services			4,800		106,312
	Oracle Corp. Japan		Software			100		6,713
	Pigeon Corp.		Household Products			200		8,176
	Shionogi & Co. Ltd.		Pharmaceuticals			400		24,762
a	Showa Shell Sekiyu K.K.		Oil, Gas & Consumable Fuels			400		5,490
	Subaru Corp.		Automobiles			2,000		45,580
	Sumitomo Rubber Industries Ltd.		Auto Components			400		4,799
	Taisei Corp.		Construction & Engineering			500		23,219
	Tokyo Electron Ltd.		Semiconductors & Semiconductor Equipment			400		57,822
	Tosoh Corp.		Chemicals			800		12,439
	Zozo Inc.		Internet & Direct Marketing Retail			800		15,077


								1,285,106

	Luxembourg 0.0%^†
	RTL Group SA		Media			132		7,218

	Macau 0.0%^†
	Wynn Macau Ltd.		Hotels, Restaurants & Leisure			3,200		7,541

	Malaysia 0.3%
	AirAsia Group Bhd.		Airlines			4,400		2,867
	British American Tobacco Malaysia Bhd.		Tobacco			800		7,082
	Digi.com Bhd.		Wireless Telecommunication Services			11,200		12,482
	Fraser & Neave Holdings Bhd.		Beverages			400		3,414
	Hartalega Holdings Bhd.		Health Care Equipment & Supplies			4,400		4,990
	Nestle (Malaysia) Bhd.		Food Products			200		7,192
	Petronas Chemicals Group Bhd.		Chemicals			8,400		18,847
	Petronas Dagangan Bhd.		Oil, Gas & Consumable Fuels			800		4,899
	Petronas Gas Bhd.		Gas Utilities			800		3,453
	Top Glove Corp. Bhd.		Health Care Equipment & Supplies			4,000		4,527
	Westports Holdings Bhd.		Transportation Infrastructure			5,200		4,789


								74,542

	Mexico 0.3%
	Fibra Uno Administracion SA de CV		Equity Real Estate Investment Trusts (REITs	)		7,656		10,585
	Grupo Aeroportuario del Pacifico SAB de CV		Transportation Infrastructure			844		7,498
a	Kimberly-Clark de Mexico SAB de CV, A		Household Products			4,960		8,423
	Megacable Holdings SAB de CV		Media			472		2,192
	Wal-Mart de Mexico SAB de CV, V		Food & Staples Retailing			15,336		41,049


								69,747



48	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ Global Equity ETF(continued)



		Industry		Shares		Value
	Common Stocks(continued)
	Netherlands 0.4%
	Aegon NV		Insurance		4,524	$	21,762
	Koninklijke Ahold Delhaize NV		Food & Staples Retailing		2,880		76,722


							98,484

	New Zealand 0.2%
	Fisher & Paykel Healthcare Corp. Ltd.		Health Care Equipment & Supplies		1,714		18,352
	Spark New Zealand Ltd.		Diversified Telecommunication Services		7,576		19,634


							37,986

	Norway 0.3%
	Mowi ASA		Food Products		1,452		32,457
	Telenor ASA		Diversified Telecommunication Services		2,132		42,756


							75,213

	Pakistan 0.0%^†
	MCB Bank Ltd.		Banks		1,200		1,676
	Oil & Gas Development Co. Ltd.		Oil, Gas & Consumable Fuels		2,800		2,935


							4,611

	Philippines 0.0%^†
	DMCI Holdings Inc.		Industrial Conglomerates		9,200		2,103
	Globe Telecom Inc.		Wireless Telecommunication Services		120		4,429
	Manila Electric Co.		Electric Utilities		720		5,210


							11,742

	Poland 0.0%^†
a	Jastrzebska Spolka Weglowa SA		Metals & Mining		140		2,228
a	PGE Polska Grupa Energetyczna SA		Electric Utilities		1,964		5,092


							7,320

	Portugal 0.0%^†
	Jeronimo Martins SGPS SA		Food & Staples Retailing		780		11,517

	Qatar 0.3%
	Barwa Real Estate Co.		Real Estate Management & Development		288		2,899
	Industries Qatar QSC		Industrial Conglomerates		540		18,377
	Qatar Electricity & Water Co. QSC		Multi-Utilities		92		4,354
	Qatar Islamic Bank SAQ		Banks		168		6,998
	Qatar National Bank SAQ		Banks		616		30,540
	The Commercial Bank PQSC		Banks		2		29


							63,197

	Russia 2.0%
	Alrosa PJSC		Metals & Mining		11,928		16,780
	Gazprom PJSC		Oil, Gas & Consumable Fuels		36,636		83,429
	Inter RAO UES PJSC		Electric Utilities		84,876		4,828
	LUKOIL PJSC		Oil, Gas & Consumable Fuels		1,780		159,691
	Magnitogorsk Iron & Steel Works		Metals & Mining		6,396		4,469
	MMC Norilsk Nickel PJSC		Metals & Mining		216		45,109
	Mobile TeleSystems PJSC, ADR		Wireless Telecommunication Services		1,840		13,910
	NLMK PJSC		Metals & Mining		4,288		11,128
b	Novatek PJSC, GDR, Reg S		Oil, Gas & Consumable Fuels		42		7,199
b	Novatek PJSC, GDR, Reg S		Oil, Gas & Consumable Fuels		214		36,680
	Polymetal International PLC		Metals & Mining		428		4,821
	Polyus Gold OJSC		Metals & Mining		72		5,959
	Rosneft PJSC		Oil, Gas & Consumable Fuels		3,552		22,275
	Severstal PJSC		Metals & Mining		936		14,646
	Surgutneftegas PJSC		Oil, Gas & Consumable Fuels		19,520		7,391



franklintempleton.com	Annual Report	49

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ Global Equity ETF(continued)



		Industry			Shares		Value
	Common Stocks(continued)
	Russia (continued)
	Tatneft PAO		Oil, Gas & Consumable Fuels			5,744	$	66,010


								504,325

	Singapore 0.5%
	CapitaLand Mall Trust		Equity Real Estate Investment Trusts (REITs	)		6,400		11,245
	ComfortDelGro Corp. Ltd.		Road & Rail			7,600		14,420
	SATS Ltd.		Transportation Infrastructure			2,000		7,545
	Singapore Exchange Ltd.		Capital Markets			2,800		15,111
	Singapore Press Holdings Ltd.		Media			3,200		5,694
	Singapore Technologies Engineering Ltd.		Aerospace & Defense			4,000		11,045
	Singapore Telecommunications Ltd.		Diversified Telecommunication Services			21,600		48,159
	Singapore Telecommunications Ltd.		Diversified Telecommunication Services			1,200		2,676
	Venture Corp. Ltd.		Electronic Equipment, Instruments & Components			800		10,596
	Yangzijiang Shipbuilding Holdings Ltd.		Machinery			7,200		7,973


								134,464

	South Africa 0.3%
	Capitec Bank Holdings Ltd.		Banks			36		3,370
	Clicks Group Ltd.		Food & Staples Retailing			616		7,869
	Exxaro Resources Ltd.		Oil, Gas & Consumable Fuels			836		9,527
	Kumba Iron Ore Ltd.		Metals & Mining			232		6,922
	Mr. Price Group Ltd.		Specialty Retail			932		12,248
	RMB Holdings Ltd.		Diversified Financial Services			1,144		6,027
	Telkom SA SOC Ltd.		Diversified Telecommunication Services			456		2,306
	Tiger Brands Ltd.		Food Products			520		9,555
	Truworths International Ltd.		Specialty Retail			1,580		7,603
	Vodacom Group Ltd.		Wireless Telecommunication Services			1,844		14,248


								79,675

	South Korea 2.5%
	BNK Financial Group Inc.		Banks			480		2,825
	Coway Co. Ltd.		Household Durables			148		12,321
	DB Insurance Co. Ltd.		Insurance			152		9,200
	DGB Financial Group Inc.		Banks			424		3,052
	Hana Financial Group Inc.		Banks			832		26,680
	Hankook Tire Co. Ltd.		Auto Components			252		8,314
	Hanwha Life Insurance Co. Ltd.		Insurance			1,080		3,806
	Hyundai Marine & Fire Insurance Co. Ltd.		Insurance			188		6,277
	Industrial Bank of Korea		Banks			840		10,397
	Kangwon Land Inc.		Hotels, Restaurants & Leisure			340		9,585
	KB Financial Group Inc.		Banks			1,044		38,491
	Korea Zinc Co. Ltd.		Metals & Mining			16		6,555
	KT&G Corp.		Tobacco			380		34,649
	Kumho Petrochemical Co. Ltd.		Chemicals			28		2,348
	LG Corp.		Industrial Conglomerates			212		14,475
	LG Uplus Corp.		Diversified Telecommunication Services			12		163
	Lotte Chemical Corp.		Chemicals			56		14,332
	NCsoft Corp.		Entertainment			24		10,487
b	Orange Life Insurance Ltd., Reg S		Insurance			80		2,537
	S-1 Corp.		Commercial Services & Supplies			68		6,021
	Samsung Electronics Co. Ltd.		Technology Hardware, Storage & Peripherals			5,248		206,434
	Samsung Fire & Marine Insurance Co. Ltd.		Insurance			40		10,607
	SK Hynix Inc.		Semiconductors & Semiconductor Equipment			2,368		154,793
	SK Telecom Co. Ltd.		Wireless Telecommunication Services			60		13,294


								607,643

	Spain 1.2%
	Amadeus IT Group SA, A		IT Services			1,264		101,337



50	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ Global Equity ETF(continued)



		Industry		Shares		Value
	Common Stocks(continued)
	Spain (continued)
	Banco de Sabadell SA		Banks		9,780	$	9,749
	Enagas SA		Oil, Gas & Consumable Fuels		488		14,214
	Endesa SA		Electric Utilities		912		23,286
	Industria de Diseno Textil SA		Specialty Retail		3,144		92,492
	Red Electrica Corp. SA		Electric Utilities		544		11,606
	Repsol SA		Oil, Gas & Consumable Fuels		2,032		34,818


							287,502

	Sweden 0.5%
	Boliden AB		Metals & Mining		600		17,116
	Hennes & Mauritz AB, B		Specialty Retail		3,012		50,334
	Swedish Match AB		Tobacco		504		25,751
	Telia Co. AB		Diversified Telecommunication Services		5,220		23,609


							116,810

	Switzerland 1.5%
	EMS-Chemie Holding AG		Chemicals		20		10,845
	Partners Group Holding AG		Capital Markets		60		43,619
	Roche Holding AG		Pharmaceuticals		920		253,441
a	Swiss Life Holding AG		Insurance		88		38,747
	Swisscom AG		Diversified Telecommunication Services		68		33,252


							379,904

	Taiwan 2.5%
	AU Optronics Corp.		Electronic Equipment, Instruments & Components		24,000		8,838
	Catcher Technology Co. Ltd.		Technology Hardware, Storage & Peripherals		2,000		15,379
	Chicony Electronics Co. Ltd.		Technology Hardware, Storage & Peripherals		4,015		9,340
	China Development Financial Holding Corp.		Banks		20,000		6,684
	China Life Insurance Co. Ltd.		Insurance		4,180		3,547
	Chunghwa Telecom Co. Ltd.		Diversified Telecommunication Services		12,000		42,634
	Far EasTone Telecommunications Co. Ltd.		Wireless Telecommunication Services		4,000		9,643
	Feng Tay Enterprise Co. Ltd.		Textiles, Apparel & Luxury Goods		1,000		7,073
	Formosa Chemicals & Fibre Corp.		Chemicals		8,000		29,071
	Formosa Petrochemical Corp.		Oil, Gas & Consumable Fuels		4,000		14,990
	Formosa Plastics Corp.		Chemicals		9,000		31,975
	Largan Precision Co. Ltd.		Electronic Equipment, Instruments & Components		280		41,790
	Lite-On Technology Corp.		Technology Hardware, Storage & Peripherals		5,000		7,276
	Micro-Star International Co. Ltd.		Technology Hardware, Storage & Peripherals		2,000		5,613
	Nan Ya Plastics Corp.		Chemicals		12,000		30,720
	Nanya Technology Corp.		Semiconductors & Semiconductor Equipment		4,000		7,969
	Novatek Microelectronics Corp. Ltd.		Semiconductors & Semiconductor Equipment		2,000		12,849
	Powertech Technology Inc.		Semiconductors & Semiconductor Equipment		2,000		4,724
	President Chain Store Corp.		Food & Staples Retailing		2,000		19,695
	Taiwan Business Bank		Banks		8,000		3,115
	Taiwan Mobile Co. Ltd.		Wireless Telecommunication Services		4,000		14,471
	Taiwan Semiconductor Manufacturing Co. Ltd.		Semiconductors & Semiconductor Equipment		33,000		262,861
	Vanguard International Semiconductor Corp.		Semiconductors & Semiconductor Equipment		4,000		8,631
	WPG Holdings Ltd.		Electronic Equipment, Instruments & Components		4,000		5,217
	Yageo Corp.		Electronic Equipment, Instruments & Components		600		6,288


							610,393

	Thailand 0.6%
	Advanced Info Service PCL		Wireless Telecommunication Services		3,600		20,873
	Airports of Thailand Public Co. Ltd., NVDR		Transportation Infrastructure		8,400		17,999
	Bumrungrad Hospital PCL		Health Care Providers & Services		1,200		6,787
	Central Pattana PCL		Real Estate Management & Development		2,800		6,463
	Delta Electronics Thailand PCL		Electronic Equipment, Instruments & Components		1,600		3,580



franklintempleton.com	Annual Report	51

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ Global Equity ETF(continued)



	Industry			Shares		Value
Common Stocks(continued)
Thailand (continued)
Glow Energy PCL		Independent Power and Renewable Electricity Producers			1,200	$	3,441
Home Product Center PCL, NVDR		Specialty Retail			12,000		5,785
PTT Exploration and Production PCL, NVDR		Oil, Gas & Consumable Fuels			2,400		9,491
PTT Global Chemical PCL, NVDR		Chemicals			6,000		12,715
PTT PCL		Oil, Gas & Consumable Fuels			22,000		33,275
Thai Oil PCL		Oil, Gas & Consumable Fuels			3,200		7,008
The Siam Cement PCL		Construction Materials			800		12,151


							139,568

Turkey 0.2%
BIM Birlesik Magazalar AS		Food & Staples Retailing			768		10,359
Eregli Demir ve Celik Fabrikalari AS		Metals & Mining			5,204		8,401
Ford Otomotiv Sanayi AS		Automobiles			408		3,523
Petkim Petrokimya Holding AS		Chemicals			2,064		1,659
TAV Havalimanlari Holding AS		Transportation Infrastructure			564		2,330
Tupras-Turkiye Petrol Rafinerileri AS		Oil, Gas & Consumable Fuels			504		11,133
Turkcell Iletisim Hizmetleri AS		Wireless Telecommunication Services			2,864		6,129
Turkiye Garanti Bankasi AS		Banks			2,928		4,322
Turkiye Halk Bankasi AS		Banks			444		501
Turkiye Is Bankasi AS, C		Banks			3,244		3,158
Turkiye Sise Ve Cam Fabrikalari AS		Industrial Conglomerates			1,576		1,626


							53,141

United Arab Emirates 0.3%
Abu Dhabi Commercial Bank PJSC		Banks			3,252		8,393
Aldar Properties PJSC		Real Estate Management & Development			7,960		3,923
Dubai Islamic Bank PJSC		Banks			4,584		6,115
Emaar Development PJSC		Real Estate Management & Development			1,960		2,070
Emirates Telecommunications Group Co. PJSC		Diversified Telecommunication Services			5,464		24,843
First Abu Dhabi Bank PJSC		Banks			5,424		22,534


							67,878

United Kingdom 8.5%
Admiral Group PLC		Insurance			660		18,662
Anglo American PLC		Metals & Mining			2,228		59,617
AstraZeneca PLC		Pharmaceuticals			2,864		228,954
Auto Trader Group PLC		Interactive Media & Services			1,356		9,216
Barratt Developments PLC		Household Durables			3,668		28,639
BHP Group PLC		Metals & Mining			2,896		69,759
British Land Co. PLC		Equity Real Estate Investment Trusts (REITs	)		2,100		16,117
BT Group PLC		Diversified Telecommunication Services			27,392		79,578
Burberry Group PLC		Textiles, Apparel & Luxury Goods			1,348		34,331
Compass Group PLC		Hotels, Restaurants & Leisure			3,968		93,302
Croda International PLC		Chemicals			344		22,583
Direct Line Insurance Group PLC		Insurance			3,760		17,295
GlaxoSmithKline PLC		Pharmaceuticals			11,288		234,871
Hammerson PLC		Equity Real Estate Investment Trusts (REITs	)		1,368		5,986
Hargreaves Lansdown PLC		Capital Markets			868		21,077
Imperial Brands PLC		Tobacco			2,972		101,638
Intertek Group PLC		Professional Services			428		27,088
ITV PLC		Media			12,800		21,199
Kingfisher PLC		Specialty Retail			5,140		15,726
Land Securities Group PLC		Equity Real Estate Investment Trusts (REITs	)		960		11,426
Marks & Spencer Group PLC		Multiline Retail			5,100		18,535
Mondi PLC		Paper & Forest Products			872		19,294
Next PLC		Multiline Retail			564		41,009



52	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ Global Equity ETF(continued)



		Industry			Shares		Value
	Common Stocks(continued)
	United Kingdom (continued)
	Persimmon PLC		Household Durables			1,348	$	38,116
	RELX PLC		Professional Services			5,712		122,177
	Rio Tinto PLC		Metals & Mining			3,400		197,639
	Royal Mail PLC		Air Freight & Logistics			3,144		9,763
	SSE PLC		Electric Utilities			2,688		41,576
	Taylor Wimpey PLC		Household Durables			11,916		27,242
	The Berkeley Group Holdings PLC		Household Durables			432		20,766
	Unilever NV, IDR		Personal Products			4,108		238,844
	Unilever PLC		Personal Products			3,172		181,658
	Whitbread PLC		Hotels, Restaurants & Leisure			452		29,908


								2,103,591

	United States 52.9%
	Accenture PLC, A		IT Services			1,476		259,805
	AGNC Investment Corp.		Mortgage Real Estate Investment Trusts (REITs	)		1,376		24,768
	Altria Group Inc.		Tobacco			4,144		237,990
	American Electric Power Co. Inc.		Electric Utilities			1,240		103,850
	Amgen Inc.		Biotechnology			1,164		221,137
	Annaly Capital Management Inc.		Mortgage Real Estate Investment Trusts (REITs	)		4,036		40,320
	Apple Inc.		Technology Hardware, Storage & Peripherals			1,304		247,695
	Applied Materials Inc.		Semiconductors & Semiconductor Equipment			2,668		105,813
	AT&T Inc.		Diversified Telecommunication Services			7,792		244,357
	Best Buy Co. Inc.		Specialty Retail			764		54,290
a	Biogen Inc.		Biotechnology			552		130,482
	Bristol-Myers Squibb Co.		Pharmaceuticals			3,184		151,909
	Broadridge Financial Solutions Inc.		IT Services			328		34,010
a	Burlington Stores Inc.		Specialty Retail			100		15,668
	C.H. Robinson Worldwide Inc.		Air Freight & Logistics			360		31,316
	Campbell Soup Co.		Food Products			536		20,438
	Capri Holdings Ltd.		Textiles, Apparel & Luxury Goods			536		24,522
	Carnival Corp.		Hotels, Restaurants & Leisure			1,040		52,749
	Cisco Systems Inc.		Communications Equipment			5,164		278,804
	Clorox Co.		Household Products			460		73,812
	Cognizant Technology Solutions Corp., A		IT Services			1,176		85,201
a	Copart Inc.		Commercial Services & Supplies			416		25,205
	Cummins Inc.		Machinery			432		68,200
	CVS Health Corp.		Health Care Providers & Services			2,184		117,783
	Darden Restaurants Inc.		Hotels, Restaurants & Leisure			376		45,673
	Delta Air Lines Inc.		Airlines			484		24,999
	Dollar General Corp.		Multiline Retail			748		89,236
	Eli Lilly & Co.		Pharmaceuticals			2,024		262,634
	Estee Lauder Cos. Inc., A		Personal Products			604		99,992
	Everest Re Group Ltd.		Insurance			96		20,732
	Expeditors International of Washington Inc.		Air Freight & Logistics			476		36,128
	Extra Space Storage Inc.		Equity Real Estate Investment Trusts (REITs	)		260		26,497
a	F5 Networks Inc.		Communications Equipment			232		36,408
a	Facebook Inc., A		Interactive Media & Services			1,732		288,707
	Fastenal Co.		Trading Companies & Distributors			840		54,020
	Ford Motor Co.		Automobiles			8,080		70,942
	Garmin Ltd.		Household Durables			412		35,576
	General Mills Inc.		Food Products			1,536		79,488
	General Motors Co.		Automobiles			3,688		136,825
	Gilead Sciences Inc.		Biotechnology			3,432		223,114
	H&R Block Inc.		Diversified Consumer Services			704		16,854
	Hanesbrands Inc.		Textiles, Apparel & Luxury Goods			684		12,230
	Hasbro Inc.		Leisure Products			320		27,206
	HollyFrontier Corp.		Oil, Gas & Consumable Fuels			344		16,949
	Hormel Foods Corp.		Food Products			956		42,791



franklintempleton.com	Annual Report	53

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ Global Equity ETF(continued)



		Industry			Shares		Value
	Common Stocks(continued)
	United States (continued)
	Ingredion Inc.		Food Products			192	$	18,180
	Intel Corp.		Semiconductors & Semiconductor Equipment			4,860		260,982
	International Business Machines Corp.		IT Services			1,968		277,685
	Intuit Inc.		Software			832		217,493
a	Intuitive Surgical Inc.		Health Care Equipment & Supplies			280		159,762
	J.B. Hunt Transport Services Inc.		Road & Rail			212		21,473
	Jack Henry & Associates Inc.		IT Services			208		28,858
	Johnson & Johnson		Pharmaceuticals			1,584		221,427
	Kellogg Co.		Food Products			396		22,722
	Kimberly-Clark Corp.		Household Products			1,028		127,369
	Kimco Realty Corp.		Equity Real Estate Investment Trusts (REITs	)		616		11,396
	KLA-Tencor Corp.		Semiconductors & Semiconductor Equipment			496		59,227
	Kohl’s Corp.		Multiline Retail			520		35,760
	L Brands Inc.		Specialty Retail			508		14,011
	Lam Research Corp.		Semiconductors & Semiconductor Equipment			252		45,111
	Las Vegas Sands Corp.		Hotels, Restaurants & Leisure			1,148		69,982
	Lear Corp.		Auto Components			208		28,228
	Leggett & Platt Inc.		Household Durables			292		12,328
	Lockheed Martin Corp.		Aerospace & Defense			736		220,918
	Lowe’s Cos. Inc.		Specialty Retail			2,160		236,455
a	Lululemon Athletica Inc.		Textiles, Apparel & Luxury Goods			240		39,329
	LyondellBasell Industries NV, A		Chemicals			1,256		105,604
	Macy’s Inc.		Multiline Retail			980		23,549
	Marsh & McLennan Cos. Inc.		Insurance			1,292		121,319
	Mastercard Inc., A		IT Services			1,256		295,725
	Maxim Integrated Products Inc.		Semiconductors & Semiconductor Equipment			792		42,111
a	Micron Technology Inc.		Semiconductors & Semiconductor Equipment			2,992		123,659
	Microsoft Corp.		Software			2,268		267,488
	MSCI Inc.		Capital Markets			280		55,675
	National Retail Properties Inc.		Equity Real Estate Investment Trusts (REITs	)		228		12,629
	NIKE Inc., B		Textiles, Apparel & Luxury Goods			2,860		240,841
	Nordstrom Inc.		Multiline Retail			324		14,379
	NVIDIA Corp.		Semiconductors & Semiconductor Equipment			1,128		202,544
a	NVR Inc.		Household Durables			8		22,136
a	O’Reilly Automotive Inc.		Specialty Retail			256		99,405
	Old Dominion Freight Line Inc.		Road & Rail			120		17,327
	Omnicom Group Inc.		Media			608		44,378
	Paychex Inc.		IT Services			920		73,784
	PepsiCo Inc.		Beverages			1,984		243,139
	Pfizer Inc.		Pharmaceuticals			5,312		225,601
	Philip Morris International Inc.		Tobacco			2,676		236,532
	Public Service Enterprise Group Inc.		Multi-Utilities			1,276		75,807
	Public Storage		Equity Real Estate Investment Trusts (REITs	)		552		120,215
	PulteGroup Inc.		Household Durables			396		11,072
	Ralph Lauren Corp.		Textiles, Apparel & Luxury Goods			112		14,524
	Robert Half International Inc.		Professional Services			376		24,500
	Rollins Inc.		Commercial Services & Supplies			372		15,483
	Ross Stores Inc.		Specialty Retail			1,392		129,595
	S&P Global Inc.		Capital Markets			612		128,857
	Seagate Technology PLC		Technology Hardware, Storage & Peripherals			1,036		49,614
	Simon Property Group Inc.		Equity Real Estate Investment Trusts (REITs	)		1,132		206,262
	Skyworks Solutions Inc.		Semiconductors & Semiconductor Equipment			616		50,808
	Snap-on Inc.		Machinery			64		10,017
	Southwest Airlines Co.		Airlines			380		19,726
	Starbucks Corp.		Hotels, Restaurants & Leisure			3,436		255,432
	Sysco Corp.		Food & Staples Retailing			1,360		90,794
	Tapestry Inc.		Textiles, Apparel & Luxury Goods			792		25,732
	Target Corp.		Multiline Retail			1,540		123,600



54	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ Global Equity ETF(continued)



		Industry			Shares		Value
	Common Stocks(continued)
	United States (continued)
	Texas Instruments Inc.		Semiconductors & Semiconductor Equipment			2,392	$	253,719
	The Chemours Co. LLC		Chemicals			280		10,405
	The Gap Inc.		Specialty Retail			776		20,316
	The Hershey Co.		Food Products			508		58,334
	The Home Depot Inc.		Specialty Retail			1,356		260,203
	The Kroger Co.		Food & Staples Retailing			2,292		56,383
	The Procter & Gamble Co.		Household Products			2,556		265,952
	The Progressive Corp.		Insurance			1,196		86,220
	The TJX Cos. Inc.		Specialty Retail			4,444		236,465
	The Walt Disney Co.		Media			2,048		227,389
	Tractor Supply Co.		Specialty Retail			364		35,585
	Tyson Foods Inc.		Food Products			776		53,878
a	Ulta Beauty Inc.		Specialty Retail			172		59,982
	Union Pacific Corp.		Road & Rail			1,640		274,208
a	United Therapeutics Corp.		Biotechnology			136		15,962
	Valero Energy Corp.		Oil, Gas & Consumable Fuels			1,172		99,421
	Ventas Inc.		Equity Real Estate Investment Trusts (REITs	)		484		30,884
	VEREIT Inc.		Equity Real Estate Investment Trusts (REITs	)		2,788		23,336
	Verizon Communications Inc.		Diversified Telecommunication Services			3,860		228,242
	VF Corp.		Textiles, Apparel & Luxury Goods			924		80,305
	Viacom Inc., B		Media			748		20,996
	W.W. Grainger Inc.		Trading Companies & Distributors			132		39,723
	Walgreens Boots Alliance Inc.		Food & Staples Retailing			1,224		77,442
	Walmart Inc.		Food & Staples Retailing			2,444		238,363
	WEC Energy Group Inc.		Multi-Utilities			780		61,682
	Western Digital Corp.		Technology Hardware, Storage & Peripherals			428		20,570


								13,081,649

	Total Common Stocks (Cost $22,163,709)							24,055,642

	Management Investment Companies (Cost $291,897) 1.3%
	India 1.3%
	iShares MSCI India ETF		Diversified Financial Services			9,402		331,421


	Preferred Stocks 0.6%
	Brazil 0.2%
c	Itausa-Investimentos Itau SA, 3.414%, pfd.		Banks			13,600		41,865
c	Telefonica Brasil SA, 9.571%, pfd.		Diversified Telecommunication Services			1,200		14,647


								56,512

	Germany 0.1%
c	Bayerische Motoren Werke AG, 6.860%, pfd.		Automobiles			116		7,633
c	Porsche Automobil Holding SE, 3.146%, pfd.		Automobiles			300		18,843


								26,476

	Russia 0.1%
c	Surgutneftegas PJSC, 3.367%, pfd.		Oil, Gas & Consumable Fuels			24,820		15,482
c	Transneft PJSC, 4.294%, pfd.		Oil, Gas & Consumable Fuels			1		2,687


								18,169

	South Korea 0.2%
c	Hyundai Motor Co., 5.853%, pfd.		Automobiles			96		5,852
c	LG Chem Ltd., 2.909%, pfd.		Chemicals			20		3,665
c	LG Household & Health Care Ltd., 1.112%, pfd.		Personal Products			4		2,946



franklintempleton.com	Annual Report	55

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin LibertyQ Global Equity ETF(continued)



		Industry		Shares		Value
	Preferred Stocks (continued)
	South Korea (continued)
c	Samsung Electronics Co. Ltd., 3.909%, pfd.		Technology Hardware, Storage & Peripherals		1,056	$	33,724


							46,187

	Total Preferred Stocks (Cost $134,670)						147,344

	Total Investments (Cost $22,590,276) 99.2%						24,534,407
	Other Assets, less Liabilities 0.8%						186,892

	Net Assets 100.0%					$	24,721,299

^†Rounds to less than 0.1% of net assets.

^aNon-income producing.

^cVariable rate security. The rate shown represents the yield at period end.

At March 31, 2019, 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

MSCI All Country World Index

Long

125,500

6/21/19

1,693

*As of period end.

See Abbreviations on page 81.



56	Annual Report \| The accompanying notes are an integral part of these financial statements.	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin LibertyQ International Equity Hedged ETF



	Year Ended March 31,

	2019			2018			2017^a
Per share operating performance (for a share outstanding throughout the year)

Net asset value, beginning of year	$	24.25		$	24.70		$	25.45


Income from investment operations^b:

Net investment income^c		0.93			0.77			0.52

Net realized and unrealized gains (losses)		0.79			0.10			1.45


Total from investment operations		1.72			0.87			1.97


Less distributions from:

Net investment income and net foreign currency gains		(0.30	)		(1.32	)		(2.72	)

Net realized gains		(0.97	)		—			—


Total distributions		(1.27	)		(1.32	)		(2.72	)


Net asset value, end of year	$	24.70		$	24.25		$	24.70


Total return^d		7.53%			3.47%			8.30%

Ratios to average net assets^e

Expenses before waiver and payments by affiliates		0.40%			1.42%	^f		1.25%

Expenses net of waiver and payments by affiliates		0.40%			0.40%	^f		0.40%

Net investment income		3.75%			3.07%			2.47%

Supplemental data

Net assets, end of year (000’s)		$7,410			$9,702			$9,880

Portfolio turnover rate^g		39.24%			32.55%			19.09%

^aFor the period June 1, 2016 (commencement of operations) to March 31, 2017.

^cBased on average daily shares outstanding.

^eRatios are annualized for periods less than one year.

^fEffective December 1, 2017, the Fund replaced the prior fee structure with a unified management fee. See Note 3(a).

^gPortfolio turnover rate excludes the value of portfolio securities received or delivered as a result of processing capital share transactions in Creation Units, if any.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	57

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2019

Franklin LibertyQ International Equity Hedged ETF



	Industry			Shares		Value
Common Stocks 97.7%
Australia 18.7%
AGL Energy Ltd.		Multi-Utilities			1,473	$	22,779
Alumina Ltd.		Metals & Mining			4,437		7,627
Amcor Ltd.		Containers & Packaging			2,709		29,616
Aristocrat Leisure Ltd.		Hotels, Restaurants & Leisure			1,443		25,124
Aurizon Holdings Ltd.		Road & Rail			4,308		13,924
Australian Stock Exchange Ltd.		Capital Markets			369		18,306
Bank of Queensland Ltd.		Banks			393		2,540
Bendigo and Adelaide Bank Ltd.		Banks			708		4,868
BHP Group Ltd.		Metals & Mining			5,493		150,186
Bluescope Steel Ltd.		Metals & Mining			1,098		10,881
Brambles Ltd.		Commercial Services & Supplies			3,870		32,329
Caltex Australia Ltd.		Oil, Gas & Consumable Fuels			522		9,719
Challenger Ltd.		Diversified Financial Services			942		5,541
Cimic Group Ltd.		Construction & Engineering			195		6,685
Coca-Cola Amatil Ltd.		Beverages			1,224		7,521
Cochlear Ltd.		Health Care Equipment & Supplies			159		19,571
Commonwealth Bank of Australia		Banks			2,757		138,344
Computershare Ltd.		IT Services			855		10,374
Crown Resorts Ltd.		Hotels, Restaurants & Leisure			813		6,647
CSL Ltd.		Biotechnology			1,077		149,138
Dexus		Equity Real Estate Investment Trusts (REITs	)		2,448		22,154
Domino’s Pizza Enterprises Ltd.		Hotels, Restaurants & Leisure			96		2,961
Flight Centre Travel Group Ltd.		Hotels, Restaurants & Leisure			132		3,943
Fortescue Metals Group Ltd.		Metals & Mining			4,200		21,212
Goodman Group		Equity Real Estate Investment Trusts (REITs	)		1,734		16,444
GPT Group		Equity Real Estate Investment Trusts (REITs	)		4,083		18,011
Harvey Norman Holdings Ltd.		Multiline Retail			1,599		4,566
Macquarie Group Ltd.		Capital Markets			312		28,683
Medibank Private Ltd.		Insurance			7,524		14,751
Mirvac Group		Equity Real Estate Investment Trusts (REITs	)		7,611		14,868
National Australia Bank Ltd.		Banks			5,325		95,587
REA Group Ltd.		Interactive Media & Services			117		6,208
Rio Tinto Ltd.		Metals & Mining			981		68,229
Scentre Group		Equity Real Estate Investment Trusts (REITs	)		8,181		23,885
Sonic Healthcare Ltd.		Health Care Providers & Services			795		13,870
South32 Ltd.		Metals & Mining			10,080		26,708
Telstra Corp. Ltd.		Diversified Telecommunication Services			12,138		28,626
TPG Telecom Ltd.		Diversified Telecommunication Services			732		3,614
Vicinity Centres		Equity Real Estate Investment Trusts (REITs	)		6,642		12,267
Washington H. Soul Pattinson & Co. Ltd.		Oil, Gas & Consumable Fuels			123		2,299
Wesfarmers Ltd.		Multiline Retail			2,730		67,195
Westpac Banking Corp.		Banks			6,954		128,039
Woodside Petroleum Ltd.		Oil, Gas & Consumable Fuels			936		23,018
Woolworths Group Ltd.		Food & Staples Retailing			2,937		63,423


							1,382,281

Austria 0.2%
OMV AG		Oil, Gas & Consumable Fuels			291		15,805

Belgium 0.3%
Colruyt SA		Food & Staples Retailing			141		10,434
Proximus SADP		Diversified Telecommunication Services			378		10,912


							21,346

Denmark 3.2%
Coloplast AS, B		Health Care Equipment & Supplies			318		34,925
Novo Nordisk AS, B		Pharmaceuticals			3,135		164,279
Novozymes AS		Chemicals			375		17,259



58	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ International Equity Hedged ETF(continued)



		Industry			Shares		Value
	Common Stocks(continued)
	Denmark (continued)
	Pandora AS		Textiles, Apparel & Luxury Goods			348	$	16,310
	Tryg AS		Insurance			231		6,344


								239,117

	Finland 1.2%
	Elisa OYJ		Diversified Telecommunication Services			342		15,445
	Kone OYJ, B		Machinery			660		33,319
	Nokian Renkaat OYJ		Auto Components			240		8,042
	Orion OYJ		Pharmaceuticals			240		9,006
	UPM-Kymmene OYJ		Paper & Forest Products			738		21,545


								87,357

	France 4.0%
	Cie Generale des Etablissements Michelin SCA		Auto Components			357		42,250
	Covivio		Equity Real Estate Investment Trusts (REITs	)		66		7,011
	Eutelsat Communications SA		Media			162		2,837
	Hermes International		Textiles, Apparel & Luxury Goods			69		45,572
	Peugeot SA		Automobiles			1,170		28,561
	Renault SA		Automobiles			180		11,906
	Sanofi		Pharmaceuticals			1,059		93,630
	Societe BIC SA		Commercial Services & Supplies			63		5,620
	Societe Generale SA		Banks			777		22,487
	Unibail-Rodamco-Westfield		Equity Real Estate Investment Trusts (REITs	)		219		35,936


								295,810

	Germany 1.4%
	Aroundtown SA		Real Estate Management & Development			1,086		8,963
	Continental AG		Auto Components			201		30,288
	Covestro AG		Chemicals			486		26,750
	Deutsche Lufthansa AG		Airlines			504		11,072
	Hugo Boss AG		Textiles, Apparel & Luxury Goods			162		11,074
	ProSiebenSat.1 Media SE		Media			618		8,827
	TUI AG		Hotels, Restaurants & Leisure			885		8,483


								105,457

	Hong Kong 5.6%
	AIA Group Ltd.		Insurance			16,200		161,279
	ASM Pacific Technology Ltd.		Semiconductors & Semiconductor Equipment			600		6,692
	CK Asset Holdings Ltd.		Real Estate Management & Development			4,500		40,013
	CK Infrastructure Holdings Ltd.		Electric Utilities			1,500		12,315
	CLP Holdings Ltd.		Electric Utilities			3,300		38,255
	Galaxy Entertainment Group Ltd.		Hotels, Restaurants & Leisure			4,000		27,236
	HKT Trust and HKT Ltd.		Diversified Telecommunication Services			9,000		14,469
	Hongkong Land Holdings Ltd.		Real Estate Management & Development			2,400		17,064
	Jardine Matheson Holdings Ltd.		Industrial Conglomerates			400		24,944
	Kerry Properties Ltd.		Real Estate Management & Development			1,500		6,697
	NWS Holdings Ltd.		Industrial Conglomerates			3,000		6,558
	Sands China Ltd.		Hotels, Restaurants & Leisure			6,000		30,153
	Swire Properties Ltd.		Real Estate Management & Development			2,400		10,319
a	WH Group Ltd., Reg S		Food Products			16,500		17,656
	Yue Yuen Industrial Holdings Ltd.		Textiles, Apparel & Luxury Goods			1,500		5,159


								418,809

	Ireland 0.0%^†
b	Ryanair Holdings PLC		Airlines			206		2,698

	Israel 1.0%
	Bank Hapoalim BM		Banks			2,001		13,249
	Bank LeumiLe-Israel BM		Banks			2,664		17,403



franklintempleton.com	Annual Report	59

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ International Equity Hedged ETF(continued)



		Industry		Shares		Value
	Common Stocks(continued)
	Israel (continued)
	Bezeq Israeli Telecommunication Corp. Ltd.		Diversified Telecommunication Services		5,790	$	4,156
b	Check Point Software Technologies Ltd.		Software		267		33,773
	Israel Chemicals Ltd.		Chemicals		699		3,636
	Mizrahi Tefahot Bank Ltd.		Banks		270		5,550


							77,767

	Italy 1.1%
	Intesa Sanpaolo SpA		Banks		25,188		61,401
	Moncler SpA		Textiles, Apparel & Luxury Goods		309		12,463
a	Poste Italiane SpA, Reg S		Insurance		1,104		10,750


							84,614

	Japan 19.9%
	ABC-Mart Inc.		Specialty Retail		100		5,954
	Aisin Seiki Co. Ltd.		Auto Components		300		10,720
	Asahi Kasei Corp.		Chemicals		2,400		24,762
	Astellas Pharma Inc.		Pharmaceuticals		4,600		68,926
	Bandai Namco Holdings Inc.		Leisure Products		400		18,756
	Bridgestone Corp.		Auto Components		1,300		50,104
	CANON Inc.		Technology Hardware, Storage & Peripherals		2,100		60,960
	Daicel Corp.		Chemicals		600		6,516
	Daito Trust Construction Co. Ltd.		Real Estate Management & Development		185		25,790
	Daiwa House Industry Co. Ltd.		Real Estate Management & Development		600		19,076
	Disco Corp.		Semiconductors & Semiconductor Equipment		51		7,266
	Hoya Corp.		Health Care Equipment & Supplies		800		52,827
	Idemitsu Kosan Co. Ltd.		Oil, Gas & Consumable Fuels		200		6,695
	Iida Group Holdings Co. Ltd.		Household Durables		300		5,434
	Isuzu Motors Ltd.		Automobiles		900		11,823
	ITOCHU Corp.		Trading Companies & Distributors		2,700		48,848
	Japan Airlines Co. Ltd.		Airlines		300		10,568
	Japan Post Bank Co. Ltd.		Banks		900		9,831
	Japan Tobacco Inc.		Tobacco		2,400		59,520
	JFE Holdings Inc.		Metals & Mining		600		10,183
	JXTG Holdings Inc.		Oil, Gas & Consumable Fuels		5,400		24,711
	Kajima Corp.		Construction & Engineering		873		12,888
	Kakaku.com Inc.		Interactive Media & Services		300		5,765
	KAO Corp.		Personal Products		995		78,370
	KDDI Corp.		Wireless Telecommunication Services		4,500		96,964
	Koito Manufacturing Co. Ltd.		Auto Components		200		11,329
	Kuraray Co. Ltd.		Chemicals		600		7,632
	Lawson Inc.		Food & Staples Retailing		100		5,547
	Marubeni Corp.		Trading Companies & Distributors		2,400		16,588
	McDonald’s Holdings Co. Japan Ltd.		Hotels, Restaurants & Leisure		100		4,626
	Mitsubishi Chemical Holdings Corp.		Chemicals		2,400		16,900
	Mitsubishi Gas Chemical Co. Inc.		Chemicals		300		4,280
	Mizuho Financial Group Inc.		Banks		22,500		34,822
	MS&AD Insurance Group Holdings Inc.		Insurance		700		21,313
	Nippon Telegraph & Telephone Corp.		Diversified Telecommunication Services		1,500		63,735
	Nissan Motor Co. Ltd.		Automobiles		5,400		44,308
	NTT DoCoMo Inc.		Wireless Telecommunication Services		3,600		79,734
	Obayashi Corp.		Construction & Engineering		1,200		12,078
	Oracle Corp. Japan		Software		100		6,713
	ORIX Corp.		Diversified Financial Services		1,200		17,233
	Park24 Co. Ltd.		Commercial Services & Supplies		300		6,513
	Pigeon Corp.		Household Products		100		4,088
	Ryohin Keikaku Co. Ltd.		Multiline Retail		30		7,600
	Sekisui House Ltd.		Household Durables		1,200		19,862
	Shionogi & Co. Ltd.		Pharmaceuticals		600		37,143



60	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ International Equity Hedged ETF(continued)



		Industry			Shares		Value
	Common Stocks(continued)
	Japan (continued)
b	Showa Shell Sekiyu K.K.		Oil, Gas & Consumable Fuels			300	$	4,117
	Sony Financial Holdings Inc.		Insurance			200		3,773
	Subaru Corp.		Automobiles			1,500		34,185
	Sumitomo Chemical Co. Ltd.		Chemicals			1,500		6,979
	Sumitomo Rubber Industries Ltd.		Auto Components			300		3,599
	Sundrug Co. Ltd.		Food & Staples Retailing			100		2,756
	Suzuki Motor Corp.		Automobiles			600		26,551
	Taisei Corp.		Construction & Engineering			400		18,575
	Teijin Ltd.		Chemicals			300		4,949
	Tokyo Electron Ltd.		Semiconductors & Semiconductor Equipment			300		43,366
	Tosoh Corp.		Chemicals			600		9,329
	Toyota Motor Corp.		Automobiles			2,300		134,798
	USS Co. Ltd.		Specialty Retail			300		5,567
	Yamaha Motor Co. Ltd.		Automobiles			300		5,884
	Zozo Inc.		Internet & Direct Marketing Retail			600		11,308


								1,471,037

	Luxembourg 0.1%
	RTL Group SA		Media			99		5,414

	Macau 0.1%
	Wynn Macau Ltd.		Hotels, Restaurants & Leisure			2,400		5,656

	Netherlands 1.0%
	Aegon NV		Insurance			3,840		18,472
	Koninklijke Ahold Delhaize NV		Food & Staples Retailing			2,097		55,863


								74,335

	New Zealand 0.4%
	Fisher & Paykel Healthcare Corp. Ltd.		Health Care Equipment & Supplies			1,206		12,913
	Spark New Zealand Ltd.		Diversified Telecommunication Services			5,793		15,013


								27,926

	Norway 0.9%
	Mowi ASA		Food Products			1,050		23,471
	Orkla ASA		Food Products			777		5,973
	Telenor ASA		Diversified Telecommunication Services			1,710		34,293


								63,737

	Portugal 0.1%
	Jeronimo Martins SGPS SA		Food & Staples Retailing			519		7,663

	Singapore 1.5%
	CapitaLand Mall Trust		Equity Real Estate Investment Trusts (REITs	)		5,700		10,016
	ComfortDelGro Corp. Ltd.		Road & Rail			5,100		9,677
	Jardine Cycle & Carriage Ltd.		Distributors			200		4,797
	SATS Ltd.		Transportation Infrastructure			1,800		6,791
	Singapore Exchange Ltd.		Capital Markets			2,700		14,571
	Singapore Press Holdings Ltd.		Media			2,100		3,736
	Singapore Technologies Engineering Ltd.		Aerospace & Defense			3,600		9,940
	Singapore Telecommunications Ltd.		Diversified Telecommunication Services			18,300		40,802
	Venture Corp. Ltd.		Electronic Equipment, Instruments & Components			300		3,973
	Yangzijiang Shipbuilding Holdings Ltd.		Machinery			5,100		5,648


								109,951

	Spain 3.1%
	Amadeus IT Group SA, A		IT Services			969		77,686
	Banco de Sabadell SA		Banks			8,616		8,589
	Enagas SA		Oil, Gas & Consumable Fuels			339		9,874
	Endesa SA		Electric Utilities			723		18,461



franklintempleton.com	Annual Report	61

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ International Equity Hedged ETF(continued)



		Industry			Shares		Value
	Common Stocks(continued)
	Spain (continued)
	Industria de Diseno Textil SA		Specialty Retail			2,445	$	71,928
	Red Electrica Corp. SA		Electric Utilities			912		19,457
	Repsol SA		Oil, Gas & Consumable Fuels			1,508		25,839


								231,834

	Sweden 2.0%
	Atlas Copco AB		Machinery			747		18,531
	Boliden AB		Metals & Mining			504		14,378
	Electrolux AB, Bs		Household Durables			447		11,513
	Hennes & Mauritz AB, B		Specialty Retail			2,382		39,806
	ICA Gruppen AB		Food & Staples Retailing			153		6,153
	Swedbank AB, A		Banks			855		12,108
	Swedish Match AB		Tobacco			390		19,926
	Telia Co. AB		Diversified Telecommunication Services			4,920		22,252


								144,667

	Switzerland 5.4%
	EMS-Chemie Holding AG		Chemicals			21		11,387
	Geberit AG		Building Products			69		28,199
	Kuehne + Nagel International AG		Marine			105		14,402
	Partners Group Holding AG		Capital Markets			51		37,076
	Roche Holding AG		Pharmaceuticals			555		152,891
b	Swiss Life Holding AG		Insurance			66		29,060
	Swisscom AG		Diversified Telecommunication Services			57		27,873
	Zurich Insurance Group AG		Insurance			300		99,287


								400,175

	United Kingdom 26.5%
	3i Group PLC		Capital Markets			1,785		22,906
	Admiral Group PLC		Insurance			618		17,475
	Anglo American PLC		Metals & Mining			1,698		45,435
	AstraZeneca PLC		Pharmaceuticals			1,728		138,140
	Auto Trader Group PLC		Interactive Media & Services			1,044		7,096
	Babcock International Group PLC		Commercial Services & Supplies			240		1,543
	BAE Systems PLC		Aerospace & Defense			6,339		39,846
	Barratt Developments PLC		Household Durables			2,829		22,089
	BHP Group PLC		Metals & Mining			2,136		51,452
	British Land Co. PLC		Equity Real Estate Investment Trusts (REITs	)		1,671		12,825
	BT Group PLC		Diversified Telecommunication Services			21,981		63,858
	Burberry Group PLC		Textiles, Apparel & Luxury Goods			1,035		26,360
	Centrica PLC		Multi-Utilities			9,954		14,812
	Compass Group PLC		Hotels, Restaurants & Leisure			3,198		75,196
	Croda International PLC		Chemicals			273		17,922
	Diageo PLC		Beverages			3,342		136,653
	Direct Line Insurance Group PLC		Insurance			3,297		15,165
	easyJet PLC		Airlines			336		4,893
	Experian PLC		Professional Services			1,752		47,462
	GlaxoSmithKline PLC		Pharmaceuticals			6,825		142,009
	Hammerson PLC		Equity Real Estate Investment Trusts (REITs	)		1,263		5,526
	Hargreaves Lansdown PLC		Capital Markets			714		17,338
	Imperial Brands PLC		Tobacco			2,283		78,075
	Intertek Group PLC		Professional Services			342		21,645
	ITV PLC		Media			10,566		17,499
	Kingfisher PLC		Specialty Retail			4,473		13,685
	Land Securities Group PLC		Equity Real Estate Investment Trusts (REITs	)		1,464		17,425
	Marks & Spencer Group PLC		Multiline Retail			3,771		13,705
	Mondi PLC		Paper & Forest Products			759		16,794
	Next PLC		Multiline Retail			438		31,847



62	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ International Equity Hedged ETF(continued)



		Industry		Shares		Value
	Common Stocks(continued)
	United Kingdom (continued)
	Pearson PLC		Media		1,101	$	11,997
	Persimmon PLC		Household Durables		1,005		28,418
	RELX PLC		Professional Services		4,446		95,098
	Rio Tinto PLC		Metals & Mining		2,811		163,401
	Royal Dutch Shell PLC, A		Oil, Gas & Consumable Fuels		4,326		136,049
	Royal Mail PLC		Air Freight & Logistics		2,391		7,424
	SSE PLC		Electric Utilities		2,205		34,105
	Taylor Wimpey PLC		Household Durables		9,354		21,385
	The Berkeley Group Holdings PLC		Household Durables		357		17,161
	Unilever NV, IDR		Personal Products		2,487		144,597
	Unilever PLC		Personal Products		2,490		142,600
	Whitbread PLC		Hotels, Restaurants & Leisure		366		24,218


							1,963,129

	Total Common Stocks (Cost $7,046,722)						7,236,585


	Preferred Stocks 0.3%
	Germany 0.3%
c	Bayerische Motoren Werke AG, 6.860%, pfd.		Automobiles		93		6,119
c	Fuchs Petrolub SE, 2.480%, pfd.		Chemicals		129		5,316
c	Porsche Automobil Holding SE, 3.146%, pfd.		Automobiles		222		13,945

	Total Preferred Stocks (Cost $28,019)						25,380

	Total Investments (Cost $7,074,741) 98.0%						7,261,965
	Other Assets, less Liabilities 2.0%						147,725

	Net Assets 100.0%					$	7,409,690

^†Rounds to less than 0.1% of net assets.

^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. These securities have been deemed liquid under guidelines approved by the Fund’s Board of Trustees. At March 31, 2019, the aggregate value of these securities was $28,406, representing 0.4% of net assets.

^bNon-income producing.

^cVariable rate security. The rate shown represents the yield at period end.

At March 31, 2019, 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

MSCI All Country World Index

Long

75,300

6/21/19

871

*As of period end.

At March 31, 2019 the Fund had the following forward exchange contracts outstanding. See Note 1(c).

Forward Exchange Contracts

Currency

Counterparty^a

Type

Quantity

Contract
Amount

Settlement
Date

Unrealized
Appreciation

Unrealized
Depreciation

OTC Forward Exchange Contracts

Australian Dollar

BOFA

Buy

1,926,000

1,368,094

4/02/19

—

Australian Dollar

BOFA

Sell

1,926,000

1,370,890

4/02/19

2,756

—



franklintempleton.com	Annual Report	63

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ International Equity Hedged ETF(continued)


Forward Exchange Contracts

Currency	Counterparty^a		Type		Quantity		Contract Amount		Settlement Date		Unrealized Appreciation		Unrealized Depreciation
OTC Forward Exchange Contracts (continued)
Danish Krone		BOFA		Buy		1,489,700	$	224,049		4/02/19	$	11	$	—
Danish Krone		BOFA		Sell		1,489,700		227,940		4/02/19		3,880		—
Euro		BOFA		Buy		957,200		1,074,760		4/02/19		32		—
Euro		BOFA		Sell		957,200		1,092,590		4/02/19		17,798		—
Great British Pound		BOFA		Buy		457,153		595,675		4/02/19		18		—
Great British Pound		HSBK		Buy		457,153		595,684		4/02/19		9		—
Great British Pound		UBSW		Buy		457,153		595,681		4/02/19		12		—
Great British Pound		BOFA		Sell		457,153		608,954		4/02/19		13,261		—
Great British Pound		HSBK		Sell		457,153		608,955		4/02/19		13,262		—
Great British Pound		UBSW		Sell		457,153		608,929		4/02/19		13,236		—
Hong Kong Dollar		MSCO		Buy		2,998,100		381,888		4/02/19		38		—
Hong Kong Dollar		MSCO		Sell		2,998,100		382,256		4/02/19		330		—
Israeli Shekel		BOFA		Buy		165,000		45,466		4/02/19		—		(3	)
Israeli Shekel		BOFA		Sell		165,000		45,618		4/02/19		156		—
Japanese Yen		BOFA		Buy		169,357,700		1,530,133		4/02/19		—		(46	)
Japanese Yen		BOFA		Sell		169,357,700		1,524,859		4/02/19		—		(5,228	)
New Zealand Dollar		BOFA		Buy		38,500		26,256		4/02/19		1		—
New Zealand Dollar		BOFA		Sell		38,500		26,253		4/02/19		—		(4	)
Norwegian Krone		BOFA		Buy		554,500		64,387		4/02/19		3		—
Norwegian Krone		BOFA		Sell		554,500		64,963		4/02/19		573		—
Singapore Dollar		BOFA		Buy		144,200		106,465		4/02/19		—		(5	)
Singapore Dollar		BOFA		Sell		144,200		106,758		4/02/19		299		—
Swedish Krona		BOFA		Buy		1,312,700		141,519		4/02/19		7		—
Swedish Krona		BOFA		Sell		1,312,700		142,531		4/02/19		1,004		—
Swiss Franc		MSCO		Buy		395,500		397,108		4/02/19		20		—
Swiss Franc		MSCO		Sell		395,500		398,080		4/02/19		951		—
Australian Dollar		BOFA		Sell		1,980,000		1,407,279		5/02/19		—		(45	)
Danish Krone		BOFA		Sell		1,616,200		243,737		5/02/19		—		(12	)
Great British Pound		BOFA		Sell		477,756		623,458		5/02/19		—		(24	)
Great British Pound		UBSW		Sell		477,756		623,445		5/02/19		—		(37	)
Great British Pound		HSBK		Sell		477,756		623,467		5/02/19		—		(15	)
Israeli Shekel		BOFA		Sell		163,400		45,113		5/02/19		2		—
New Zealand Dollar		BOFA		Sell		41,200		28,113		5/02/19		—		(1	)
Euro		BOFA		Sell		990,400		1,114,945		5/03/19		—		(31	)
Hong Kong Dollar		MSCO		Sell		3,046,600		388,436		5/03/19		—		(59	)
Norwegian Krone		BOFA		Sell		569,800		66,243		5/03/19		—		(3	)
Singapore Dollar		BOFA		Sell		144,200		106,523		5/03/19		3		—
Swedish Krona		BOFA		Sell		1,338,100		144,591		5/03/19		—		(8	)
Swiss Franc		MSCO		Sell		399,800		402,557		5/03/19		—		(70	)
Japanese Yen		BOFA		Sell		166,152,100		1,505,354		5/08/19		—		(433	)

Total Forward Exchange Contracts											$	67,702	$	(6,024	)

Net unrealized appreciation (depreciation)													$	61,678

^aMay be comprised of multiple contracts with the same counterparty, currency and settlement date.

See Abbreviations on page 81.



64	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

March 31, 2019



	Franklin LibertyQ Emerging Markets ETF			Franklin LibertyQ Global Dividend ETF		Franklin LibertyQ Global Equity ETF		Franklin LibertyQ International Equity Hedged ETF
Assets:
Investments in securities:
Cost – Unaffiliated issuers	$	331,672,464		$	15,756,592	$	22,590,276	$	7,074,741

Value – Unaffiliated issuers	$	342,811,959		$	16,843,492	$	24,534,407	$	7,261,965
Cash		144,406			—		29,568		—
Foreign currency, at value (cost $470,886, $58,135, $62,727 and $27,244, respectively)		468,864			57,840		62,448		27,182
Receivables:
Dividends		1,769,833			78,024		92,966		63,238
Variation margin on futures contracts		17,000			417		1,019		601
Deposits with brokers for:
Futures contracts		88,400			2,971		8,018		4,575
Unrealized appreciation on OTC forward exchange contracts		—			—		—		67,702

Total assets		345,300,462			16,982,744		24,728,426		7,425,263

Liabilities:
Payables:
Management fees		163,319			6,427		7,127		2,493
Funds advanced by custodian		—			56,196		—		7,056
Deferred tax		652,819			—		—		—
Unrealized depreciation on OTC forward exchange contracts		—			—		—		6,024

Total liabilities		816,138			62,623		7,127		15,573

Net assets, at value	$	344,484,324		$	16,920,121	$	24,721,299	$	7,409,690

Net assets consist of:
Paid-in capital	$	346,426,552		$	15,871,033	$	22,647,758	$	7,190,050
Total distributable earnings (loss)		(1,942,228	)		1,049,088		2,073,541		219,640

Net assets, at value	$	344,484,324		$	16,920,121	$	24,721,299	$	7,409,690

Shares outstanding		11,600,000			600,000		800,000		300,000

Net asset value per share	$	29.70		$	28.20	$	30.90	$	24.70



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	65

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Operations

for the year ended March 31, 2019



	Franklin LibertyQ Emerging Markets ETF			Franklin LibertyQ Global Dividend ETF			Franklin LibertyQ Global Equity ETF			Franklin LibertyQ International Equity Hedged ETF
Investment income:
Dividends: (net of foreign taxes)^a
Unaffiliated issuers	$	13,863,230		$	642,138		$	619,910		$	291,535
Interest from securities loaned:
Non-Controlled affiliates (Note 3d)		3,152			194			65			—

Total investment income		13,866,382			642,332			619,975			291,535

Expenses:
Management fees (Note 3a)		1,776,709			74,518			65,359			28,081
Other		3,719			27			—			6

Total expenses		1,780,428			74,545			65,359			28,087
Expenses waived/paid by affiliates (Note 3c)		(12,120	)		(56	)		(1,508	)		—

Net expenses		1,768,308			74,489			63,851			28,087

Net investment income		12,098,074			567,843			556,124			263,448

Realized and unrealized gains (losses):
Net realized gain (loss) from:
Investments:
Unaffiliated issuers		(13,568,663	)		(27,042	)		(8,369	)		(110,478	)
In-kind redemptions		17,013,234			—			1,103,795			515,523
Foreign currency transactions		(253,161	)		(5,061	)		(5,884	)		(5,128	)
Forward exchange contracts		—			—			—			568,281
Futures contracts		(69,882	)		(3,715	)		(9,811	)		292

Net realized gain (loss)		3,121,528			(35,818	)		1,079,731			968,490

Net change in unrealized appreciation (depreciation) on:
Investments:
Unaffiliated issuers		(47,735,945	)		25,158			(577,587	)		(571,456	)
Translation of other assets and liabilities denominated in foreign currencies		(24,865	)		(991	)		(666	)		(336	)
Forward exchange contracts		—			—			—			76,208
Futures contracts		16,210			397			1,693			871
Change in deferred taxes on unrealized appreciation		(447,620	)		—			—			—

Net change in unrealized appreciation (depreciation)		(48,192,220	)		24,564			(576,560	)		(494,713	)

Net realized and unrealized gain (loss)		(45,070,692	)		(11,254	)		503,171			473,777

Net increase (decrease) in net assets resulting from operations	$	(32,972,618	)	$	556,589		$	1,059,295		$	737,225


^aForeign taxes withheld on dividends		$	1,540,949			$	38,822			$	30,675			$	21,087



66	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 LibertyQ Emerging Markets ETF						Franklin LibertyQ Global Dividend ETF

	Year Ended March 31, 2019			Year Ended March 31, 2018			Year Ended March 31, 2019			Year Ended March 31, 2018
Increase (decrease) in net assets:
Operations:
Net investment income	$	12,098,074		$	10,087,219		$	567,843		$	636,274
Net realized gain (loss)		3,121,528			13,064,209			(35,818	)		1,741,940
Net change in unrealized appreciation (depreciation)		(48,192,220	)		37,377,161			24,564			(799,825	)

Net increase (decrease) in net assets resulting from operations		(32,972,618	)		60,528,589			556,589			1,578,389

Distributions to shareholders (Note 1f)		(11,215,046	)		(10,215,291	)		(569,521	)		(703,577	)

Capital share transactions: (Note 2)		(12,217,518	)		22,490,658			—			(11,247,987	)

Net increase (decrease) in net assets		(56,405,182	)		72,803,956			(12,932	)		(10,373,175	)
Net assets:
Beginning of year		400,889,506			328,085,550			16,933,053			27,306,228

End of year (Note 1f)	$	344,484,324		$	400,889,506		$	16,920,121		$	16,933,053



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	67

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Changes in Net Assets (continued)



	Franklin LibertyQ Global Equity ETF						Franklin LibertyQ International Equity Hedged ETF

	Year Ended March 31, 2019			Year Ended March 31, 2018			Year Ended March 31, 2019			Year Ended March 31, 2018
Increase (decrease) in net assets:
Operations:
Net investment income	$	556,124		$	446,902		$	263,448		$	304,432
Net realized gain (loss)		1,079,731			463,478			968,490			(483,664	)
Net change in unrealized appreciation (depreciation)		(576,560	)		1,333,208			(494,713	)		530,205

Net increase (decrease) in net assets resulting from operations		1,059,295			2,243,588			737,225			350,973

Distributions to shareholders (Note 1f)		(478,140	)		(476,289	)		(380,919	)		(529,464	)

Capital share transactions: (Note 2)		6,058,346			(5,429,739	)		(2,648,534	)		—

Net increase (decrease) in net assets		6,639,501			(3,662,440	)		(2,292,228	)		(178,491	)
Net assets:
Beginning of year		18,081,798			21,744,238			9,701,918			9,880,409

End of year (Note 1f)	$	24,721,299		$	18,081,798		$	7,409,690		$	9,701,918



68	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 anopen-end management investment company, consisting of thirty-eight separate funds, four of which are included in this report (Funds) and applies the specialized accounting and reporting guidance in U.S. Generally Accepted Accounting Principles (U.S. GAAP). 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 as of 4 p.m. Eastern time each day the New York Stock Exchange (NYSE) is open for trading. Under compliance policies and procedures approved by the Trust’s Board of Trustees (the Board), the Funds’ administrator has responsibility for oversight of valuation, 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.

Investments inopen-end mutual funds are valued at the closing NAV.

Certain derivative financial instruments 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. 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.



franklintempleton.com	Annual Report	69

FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

1. Organization and Significant Accounting Policies(continued)

When the last day of the reporting period is anon-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 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.

Collateral requirements differ by type of derivative. Collateral or initial margin requirements are set by the broker or exchange clearing house for exchange traded and centrally cleared derivatives. Initial margin deposited is held at the exchange and can be in the form or cash and/or securities. 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 the 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 for OTC derivatives, 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 counterpartynon-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.



70	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

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.

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. 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. At March 31, 2019, the Funds had no securities on loan.

e. Income and Deferred Taxes

It is each Fund’s policy to qualify as a regulated investment company under the Internal Revenue Code. Each 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 March 31, 2019, 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.

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. Estimated expenses are accrued daily. Dividend income is recorded on theex-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 theex-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.

Effective with the current reporting period, it is no longer required to present certain line items on the Statements of Changes in Net Assets. The below prior period amounts affected by this change are shown as they were in the prior year Statements of Changes in Net Assets.



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NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

1. Organization and Significant Accounting Policies(continued)

For the year ended March 31, 2018, distributions to shareholders were as follows:


	Franklin LibertyQ Emerging Markets ETF			Franklin LibertyQ Global Dividend ETF			Franklin LibertyQ Global Equity ETF			Franklin LibertyQ International Equity Hedged ETF
Distributions from net investment income:	$	(10,215,291	)	$	(703,577	)	$	(476,289	)	$	(529,464	)

For the year ended March 31, 2018, undistributed net investment income and distribution in excess of net investment income included in net assets were as follows:


Fund	Undistributed Net Investment Income		Distribution in Excess of Net Investment Income
Franklin LibertyQ Emerging Markets ETF	$	1,259,012	$	—
Franklin LibertyQ Global Dividend ETF		66,523		—
Franklin LibertyQ Global Equity ETF		86,314		—
Franklin LibertyQ International Equity Hedged ETF		—		(335,926	)

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 Funds 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 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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NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

At March 31, 2019, there were an unlimited number of shares authorized (without par value). Transactions in the Funds’ shares were as follows:



	Franklin LibertyQ Emerging Markets ETF

	Year Ended March 31, 2019						Year Ended March 31, 2018

	Shares			Amount			Shares			Amount
Shares sold		4,000,000		$	121,573,734			2,400,000		$	74,304,093
Shares redeemed		(4,400,000	)		(133,791,252	)		(1,600,000	)		(51,813,435	)

Net increase (decrease)		(400,000	)	$	(12,217,518	)		800,000		$	22,490,658


	Franklin LibertyQ Global Dividend ETF

	Year Ended March 31, 2019						Year Ended March 31, 2018

	Shares			Amount			Shares			Amount
Shares sold		—		$	—			200,000		$	5,648,090
Shares redeemed		—			—			(600,000	)		(16,896,077	)

Net increase (decrease)		—		$	—			(400,000	)	$	(11,247,987	)


	Franklin LibertyQ Global Equity ETF

	Year Ended March 31, 2019						Year Ended March 31, 2018

	Shares			Amount			Shares			Amount
Shares sold		400,000		$	12,112,015			—		$	—
Shares redeemed		(200,000	)		(6,053,669	)		(200,000	)		(5,429,739	)

Net increase (decrease)		200,000		$	6,058,346			(200,000	)	$	(5,429,739	)


	Franklin LibertyQ International Equity Hedged ETF

	Year Ended March 31, 2019						Year Ended March 31, 2018

	Shares			Amount			Shares			Amount
Shares sold		100,000		$	2,422,854			—		$	—
Shares redeemed		(200,000	)		(5,071,388	)		—			—

Net increase (decrease)		(100,000	)	$	(2,648,534	)		—		$	—

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 Advisory Services, LLC (FASL)		Investment manager
Franklin Templeton Services, LLC (FT Services)		Administrative manager
Franklin Templeton Distributors, Inc. (Distributors)		Principal underwriter



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NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

3. Transactions with Affiliates(continued)

a. Management Fees

The Funds pay a unified management fee to FASL whereby FASL has agreed to reimburse the Funds’ acquired fund fee 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’ Rule12b-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 othernon-routine or extraordinary expenses. The fees are based on the daily average net assets of each of the Funds as follows:



		Annualized Fee Rate
Franklin LibertyQ Emerging Markets ETF		0.55%
Franklin LibertyQ Global Dividend ETF		0.45%
Franklin LibertyQ Global Equity ETF		0.35%
Franklin LibertyQ International Equity Hedged ETF		0.40%

Prior to February 1, 2019 the Funds paid a unified management fee to Franklin Advisers, Inc.

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 for purposes other than 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. During the year ended March 31, 2019, the Funds held investments in affiliated management investment companies as follows:



	Number of Shares Held at Beginning of Year		Gross Additions		Gross Reductions			Number of Shares Held at End of Year		Value at End of Year		Income from securities loaned		Realized Gain (Loss)		Net Change in Unrealized Appreciation (Depreciation)

Franklin LibertyQ Emerging Markets ETF
Non-Controlled Affiliates
Institutional Fiduciary Trust Money Market Portfolio 2.10%		—		9,351,716		(9,351,716	)		—	$	—	$	3,152	$	—	$	—


Franklin LibertyQ Global Dividend ETF
Non-Controlled Affiliates
Institutional Fiduciary Trust Money Market Portfolio 2.10%		27,000		435,784		(462,784	)		—	$	—	$	194	$	—	$	—


Franklin LibertyQ Global Equity ETF
Non-Controlled Affiliates
Institutional Fiduciary Trust Money Market Portfolio 2.10%		—		270,154		(270,154	)		—	$	—	$	65	$	—	$	—



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d. Other Affiliated Transactions

At March 31, 2019, the shares of the Funds were owned by the following entities:



Funds	Shares		Percentage of Outstanding Shares^a

Franklin LibertyQ Emerging Markets ETF
Franklin 529 Portfolios		1,054,252		9.1%
Franklin Conservative Allocation Fund		1,426,049		12.3%
Franklin Growth Allocation Fund		2,976,130		25.7%
Franklin LifeSmart^™ 2020 – 2055 Retirement Target Funds		1,036,071		8.9%
Franklin Moderate Allocation Fund		3,434,565		29.6%

		9,927,067		85.6%


Franklin LibertyQ Global Equity ETF
Franklin Resources Inc.		104,000		13.0%

^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, 2019, the capital loss carryforwards were as follows:



	Franklin LibertyQ Emerging Markets ETF		Franklin LibertyQ Global Dividend ETF		Franklin LibertyQ Global Equity ETF		Franklin LibertyQ International Equity Hedged ETF
Capital loss carryforwards not subject to expiration:
Short term	$	7,245,482	$	31,911	$	7,366	$	—
Long term		2,639,912		1,217		—		—

Total capital loss carryforwards	$	9,885,394	$	33,128	$	7,366	$	—

During the year ended March 31, 2019, the following Funds utilized capital loss carryforwards as follows:



Franklin LibertyQ Global Equity ETF		Franklin LibertyQ International Equity Hedged ETF
	$3,601		$69,934

For tax purposes, the Fund may elect to defer any portion of a post-October capital loss or late-year ordinary loss to the first day of the following fiscal year. At March 31, 2019, Franklin LibertyQ International Equity Hedged ETF deferred late year ordinary losses of $11,086.

The tax character of distributions paid during the years ended March 31, 2019 and 2018, were as follows:



	Franklin LibertyQ Emerging Markets ETF				Franklin LibertyQ Global Dividend ETF

	2019		2018		2019		2018
Distributions paid from ordinary income	$	11,215,046	$	10,215,291	$	569,521	$	703,577



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NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

4. Income Taxes(continued)


	Franklin LibertyQ Global Equity ETF				Franklin LibertyQ International Equity Hedged ETF

	2019		2018		2019		2018
Distributions paid from:
Ordinary income	$	478,140	$	476,289	$	80,011	$	529,464
Long-term Capital Gain	$	—	$	—	$	300,908	$	—

	$	478,140	$	476,289	$	380,919	$	529,464

At March 31, 2019, the cost of investments, net unrealized appreciation (depreciation) and undistributed ordinary income for income tax purposes were as follows:



	Franklin LibertyQ Emerging Markets ETF			Franklin LibertyQ Global Dividend ETF			Franklin LibertyQ Global Equity ETF			Franklin LibertyQ International Equity Hedged ETF
Cost of investments	$	336,483,163		$	15,820,904		$	22,638,631		$	7,119,984

Unrealized appreciation	$	26,031,618		$	1,778,488		$	2,607,697		$	592,902
Unrealized depreciation		(19,702,822	)		(755,900	)		(711,921	)		(450,921	)

Net unrealized appreciation (depreciation)	$	6,328,796		$	1,022,588		$	1,895,776		$	141,981

Distributable earnings – undistributed ordinary income	$	2,282,685		$	60,332		$	185,672		$	—

Differences between income and/or capital gains as determined on a book basis and a tax basis are primarily due to differing treatments of corporate actions, passive foreign investment company shares and wash sales.

5. Investment Transactions

Purchases and sales of investments (excluding short term securities andin-kind transactions, if any) for the year ended March 31, 2019, were as follows:



	Franklin LibertyQ Emerging Markets ETF		Franklin LibertyQ Global Dividend ETF		Franklin LibertyQ Global Equity ETF		Franklin LibertyQ International Equity Hedged ETF
Purchases	$	189,652,978	$	4,257,137	$	7,529,600	$	3,109,563
Sales	$	171,927,406	$	4,249,992	$	6,605,181	$	2,788,716

In-kind transactions associated with creation and redemptions for the year ended March 31, 2019, were as follows:



	Franklin LibertyQ Emerging Markets ETF		Franklin LibertyQ Global Dividend ETF		Franklin LibertyQ Global Equity ETF		Franklin LibertyQ International Equity Hedged ETF
Cost of Securities Received	$	46,529,395	$	—	$	10,198,492	$	2,377,327
Value of Securities Delivered^a	$	75,755,622	$	—	$	5,040,428	$	4,874,548

^aRealized gains and losses from in-kind redemptions, as shown on the Statement of Operations, are not recognized by the Funds for tax purposes.



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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 and regional economic, political and social conditions, which may result in greater market volatility. Current political and financial uncertainty surrounding the European Union may increase market volatility and the economic risk of investing in Europe. In addition, certain foreign securities may not be as liquid as U.S. securities.

The United States and other nations have imposed and could impose additional sanctions on certain issuers in Russia due to regional conflicts. These sanctions could result in the devaluation of Russia’s currency, a downgrade in Russian issuers’ credit ratings, or a decline in the value and liquidity of Russian stocks or other securities. Such sanctions could also adversely affect Russia’s economy, possibly forcing the economy into a recession. Certain or all Funds may be prohibited from investing in securities issued by companies subject to such sanctions. In addition, if the Fund holds the securities of an issuer that is subject to such sanctions, an immediate freeze of that issuer’s securities could result, impairing the ability of the Fund to buy, sell, receive or deliver those securities. There is also the risk that countermeasures could be taken by Russia’s government, which could involve the seizure of the Fund’s assets. These risks could affect the value of the Funds’ portfolio. While the Funds hold securities of certain issuers recently impacted by the sanctions, existing investments do not presently violate the applicable terms and conditions of the sanctions. The sanctions currently do not affect the Fund’s ability to sell these securities. At March 31, 2019, Franklin LibertyQ Emerging Markets ETF had 11.3% of its net assets invested in Russia. The remaining Funds in the Trust did not have a significant investment in Russia.

7. Other Derivative Information

At March 31, 2019, the Funds’ investments in derivative contracts are reflected in the Statements of Assets 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 LibertyQ Emerging Markets ETF

Equity contracts	Variation margin on futures contracts	$	16,210	^a	Variation margin on futures contracts	$	—
Franklin LibertyQ Global Dividend ETF

Equity contracts	Variation margin on futures contracts	$	397	^a		$	—
Franklin LibertyQ Global Equity ETF

Equity contracts	Variation margin on futures contracts	$	1,693	^a	Variation margin on futures contracts	$	—
Franklin LibertyQ International Equity Hedged ETF

Equity contracts	Variation margin on futures contracts	$	871	^a	Variation margin on futures contracts	$	—

Foreign exchange contracts	Unrealized appreciation on OTC forward exchange contracts		67,702		Unrealized depreciation on OTC forward exchange contracts		6,024

Totals		$	68,573			$	6,024

^aThis amount reflects the cumulative appreciation (depreciation) of futures contracts as reported in the Statement 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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NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

7. Other Derivative Information(continued)

For the year ended March 31, 2019, 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 LibertyQ Emerging Markets ETF
		Net realized gain (loss) from:					Net change in unrealized appreciation (depreciation) on:

Equity contracts		Futures contracts	$	(69,882	)		Futures contracts	$	16,210

Franklin LibertyQ Global Dividend ETF
		Net realized gain (loss) from:					Net change in unrealized appreciation (depreciation) on:

Equity contracts		Futures contracts	$	(3,715	)		Futures contracts	$	397

Franklin LibertyQ Global Equity ETF
		Net realized gain (loss) from:					Net change in unrealized appreciation (depreciation) on:

Equity contracts		Futures contracts	$	(9,811	)		Futures contracts	$	1,693

Franklin LibertyQ International Equity Hedged ETF
		Net realized gain (loss) from:					Net change in unrealized appreciation (depreciation) on:

Equity contracts		Futures contracts	$	292			Futures contracts	$	871

Foreign exchange contracts		Forward exchange contracts		568,281			Forward exchange contracts		76,208

Totals			$	568,573				$	77,079

For the year ended March 31, 2019, the average month end notional amount of futures contracts and average month end contract value for forward exchange contracts were as follows:



	Franklin LibertyQ Emerging Markets ETF		Franklin LibertyQ Global Dividend ETF		Franklin LibertyQ Global Equity ETF		Franklin LibertyQ International Equity Hedged ETF
Futures contracts	$	1,080,546	$	37,285	$	41,724	$	7,697
Forward exchange contracts	$	—	$	—	$	—	$	21,569,417

At March 31, 2019, 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

	Assets^a		Liabilities^a
Franklin International Equity Hedged ETF
Forward Exchange Contracts	$	67,702	$	6,024

^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.



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NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

At March 31, 2019, 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 Received		Cash Collateral Received		Net Amount (Not less than zero)
Franklin LibertyQ International Equity Hedged ETF
Counterparty
BOFA	$	39,844	$	(5,843	)	$	—	$	—	$	34,001
HSBK		13,271		(15	)		—		—		13,256
MSCO		1,339		(129	)		—		—		1,210
UBSW		13,248		(37	)’		—		—		13,211

Total	$	67,702	$	(6,024	)	$	—	$	—	$	61,678

At March 31, 2019, the Funds’ OTC derivative liabilities, which may be offset against the Funds’ OTC derivative assets and collateral received from 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 Pledged		Cash Collateral Pledged		Net Amount (Not less than zero)
Franklin LibertyQ International Equity Hedged ETF
Counterparty
BOFA	$	5,843	$	(5,843	)	$	—	$	—	$	—
HSBK		15		(15	)		—		—		—
MSCO		129		(129	)		—		—		—
UBSW		37		(37	)		—		—		—

Total	$	6,024	$	(6,024	)	$	—	$	—	$	—

See Note 1(c) regarding derivative financial instruments.

See abbreviations on page 81.

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.)



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NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

8. Fair Value Measurements(continued)

•

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 March 31, 2019, in valuing the Funds’ assets and liabilities carried at fair value, is as follows:



	Level 1		Level 2			Level 3		Total

Franklin LibertyQ Emerging Markets ETF

Assets:
Investments in Securities:^a
Equity Investments^b	$	342,811,959	$	—		$	—	$	342,811,959

Other Financial Instruments:
Futures Contracts	$	16,210	$	—		$	—	$	16,210


Franklin LibertyQ Global Dividend ETF

Assets:
Investments in Securities:^a
Equity Investments^b	$	16,843,492	$	—		$	—	$	16,843,492

Other Financial Instruments:
Futures Contracts	$	397	$	—		$	—	$	397


Franklin LibertyQ Global Equity ETF

Assets:
Investments in Securities:^a
Equity Investments:^b	$	24,534,407	$	—		$	—	$	24,534,407

Other Financial Instruments:
Futures Contracts	$	1,693	$	—		$	—	$	1,693


Franklin LibertyQ International Equity Hedged ETF

Assets:
Investments in Securities:^a
Equity Investments^b	$	7,261,965	$	—		$	—	$	7,261,965

Other Financial Instruments:
Forward Exchange Contracts		—		67,702			—		67,702
Futures Contracts		871		—			—		871

Total Other Financial Instruments	$	871	$	67,702		$	—	$	68,573


Liabilities:
Other Financial Instruments:
Forward Exchange Contracts	$	—	$	(6,024	)	$	—	$	(6,024	)

^aFor detailed categories, see the accompanying Statement of Investments.

^bIncludes common and preferred stocks.



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NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

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		Counterparty
ADR	American Depositary Receipt	BOFA	Bank of America Corp.
ETF	Exchange Traded Fund	HSBK	HSBC Bank PLC
GDR	Global Depositary Receipt	IDR	International Depositary Receipt
IDR	International Depositary Receipt	MSCO	Morgan Stanley
NVDR	Non-Voting Depositary Receipt	UBSW	UBS AG
REIT	Real Estate Investment Trust



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Report of Independent Registered Public Accounting Firm

To the Board of Trustees of Franklin Templeton ETF Trust and Shareholders of Franklin LibertyQ Emerging Markets ETF, Franklin LibertyQ Global Dividend ETF, Franklin LibertyQ Global Equity ETF and Franklin LibertyQ International Equity Hedged ETF

Opinions on the Financial Statements

We have audited the accompanying statements of assets and liabilities, including the statements of investments, of Franklin LibertyQ Emerging Markets ETF, Franklin LibertyQ Global Dividend ETF, Franklin LibertyQ Global Equity ETF and Franklin LibertyQ International Equity Hedged ETF (the “Funds”) as of March 31, 2019, the related statementsof operationsfor the year ended March 31, 2019 , the statements of changes in net assets for each of the two years in the period ended March 31, 2019, including the related notes,and the financial highlights for each of the periods indicated therein(collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of March 31, 2019, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period ended March 31, 2019 and each of the financial highlights for each of the periods indicated therein in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinions

These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our auditsof these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of March 31, 2019 by correspondence with the custodian. We believe that our audits provide a reasonable basis for our opinions.

PricewaterhouseCoopers LLP

San Francisco, California

May 20, 2019

We have served as the auditor of one or more investment companies in the Franklin Templeton funds since 1948.



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Tax information (unaudited)

Under Section 852(b)(3)(C) of the Internal Revenue Code, Franklin LibertyQ International Equity Hedged hereby reports the maximum amount allowable but no less than $300,908 as a long term capital gain dividend for the fiscal year ended March 31, 2019.

Under Section 871(k)(2)(C) of the Internal Revenue Code, Franklin LibertyQ International Equity Hedged hereby reports the maximum amount allowable but no less than $80,011 as a short term capital gain dividend for purposes of the tax imposed under Section 871(a)(1)(A) of the Internal Revenue Code for the fiscal year ended March 31, 2019.

Under Section 854(b)(1)(A) of the Internal Revenue Code, the Funds hereby report the following percentage amounts of the ordinary income dividends as income qualifying for the dividends received deduction for the fiscal year ended March 31, 2019.



Franklin LibertyQ Global Dividend ETF		Franklin LibertyQ Global Equity ETF
	33.63%		43.97%

Under Section 854(b)(1)(B) of the Internal Revenue Code, the Funds hereby report the maximum amount allowable but no less than the following amounts as qualified dividends for purposes of the maximum rate under Section 1(h)(11) of the Internal Revenue Code for the fiscal year ended March 31,2019.



Franklin LibertyQ Emerging Markets ETF		Franklin LibertyQ Global Dividend ETF		Franklin LibertyQ Global Equity ETF		Franklin LibertyQ International Equity Hedged ETF
	$9,473,525		$621,878		$535,793		$278,331

Distributions, including qualified dividend income, paid during calendar year 2019 will be reported to shareholders on Form1099-DIV bymid-February 2020. Shareholders are advised to check with their tax advisors for information on the treatment of these amounts on their individual income tax returns.

At March 31, 2019, more than 50% of the following Funds’ total assets were invested in securities of foreign issuers. In most instances, foreign taxes were withheld from income paid to the Funds on these investments. The Funds elect to treat foreign taxes paid as allowed under Section 853 of the Internal Revenue Code. This election will allow shareholders of record as of the June 2019 distribution, to treat their proportionate share of foreign taxes paid by the Funds as having been paid directly by them. The shareholder shall consider these amounts as foreign taxes paid in the tax year in which they receive the Fund distribution.

Franklin LibertyQ Emerging Markets ETF

Franklin LibertyQ Global Dividend ETF

Franklin LibertyQ International Equity Hedged ETF



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FRANKLIN TEMPLETON ETF TRUST

Board Members and Officers

The name, year of birth and address of the officers and board members, as well as their affiliations, positions held with the Trust, principal occupations during at least the past five years and number of U.S. registered portfolios overseen in the Franklin Templeton fund complex, are shown below. Generally, each board member serves until that person’s successor is elected and qualified.

Independent Board Members



Name, Year of Birth and Address	Position	Length of Time Served	Number of Portfolios in Fund Complex Overseen by Board Member*	Other Directorships Held During at Least the Past 5 Years

Rohit Bhagat (1964) One Franklin Parkway San Mateo, CA 94403-1906	Lead Independent Trustee	Since 2016	39	Zentific Investment Management (hedge fund) (2015-present), Axis Bank (2013-present), AssetMark Financial Holdings, Inc. (investment solutions) (2018-present) and CapFloat Financial Services Pvt., Ltd.(non-banking finance company) (2018-present).

Principal Occupation During at Least the Past 5 Years:
Managing Member, Mukt Capital, LLC (private investment firm) (2014-present); Advisor, Optimal Asset Management (investment technology and advisory services company) (2015-present); andformerly, Chairman, Asia Pacific, BlackRock (2009-2012); Global Chief Operating Officer, Barclays Global Investors (investment management) (2005-2009); and Senior Partner, The Boston Consulting Group (management consulting) (1992-2005).

Anantha Pradeep (1963) One Franklin Parkway San Mateo, CA 94403-1906	Trustee	Since 2016	39	None

Principal Occupation During at Least the Past 5 Years:
Chief Executive Officer, Smilable, Inc. (technology company) (2014-present); Chief Executive Officer, MachineVantage (technology company) (2018-present); Founder and Managing Partner, Consult Meridian, LLC (consulting company) (2009-present); andformerly, Founder, BoardVantage (board portal solutions provider delivering paperless process for boards and leadership) (2000-2002).

Interested Board Members and Officers



Name, Year of Birth and Address	Position	Length of Time Served	Number of Portfolios in Fund Complex Overseen by Board Member*	Other Directorships Held During at Least the Past 5 Years

**Jennifer M. Johnson (1964) One Franklin Parkway San Mateo, CA 94403-1906	Chairperson of the Board and Trustee	Since 2016	46	None

Principal Occupation During at Least the Past 5 Years:
President and Chief Operating Officer, Franklin Resources, Inc.; officer and/or director or trustee, as the case may be, of some of the other subsidiaries of Franklin Resources, Inc. and of four of the investment companies in Franklin Templeton; andformerly, Chief Operating Officer and Executive Vice President, Franklin Resources, Inc. (1994-2015); Executive Vice President of Operations and Technology, Franklin Resources, Inc. (2005-2010); and Senior Vice President, Franklin Resources, Inc. (2003-2005).

Alison E. Baur (1964) One Franklin Parkway San Mateo, CA 94403-1906	Vice President	Since 2016	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Deputy General Counsel, Franklin Templeton; and officer of some of the other subsidiaries of Franklin Resources, Inc. and of 44 of the investment companies in Franklin Templeton.



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Interested Board Members and Officers(continued)



Name, Year of Birth and Address	Position	Length of Time Served	Number of Portfolios in Fund Complex Overseen by Board Member*	Other Directorships Held During at Least the Past 5 Years

Gaston Gardey (1967) One Franklin Parkway San Mateo, CA 94403-1906	Treasurer, Chief Financial Officer and Chief Accounting Officer	Since 2015	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Treasurer, U.S. Fund Administration & Reporting and officer of 28 of the investment companies in Franklin Templeton.

Aliya S. Gordon (1973) One Franklin Parkway San Mateo, CA 94403-1906	Vice President	Since 2016	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Senior Associate General Counsel and officer of 44 of the investment companies in Franklin Templeton.

Steven J. Gray (1955) One Franklin Parkway San Mateo, CA 94403-1906	Vice President	Since 2016	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Senior Associate General Counsel, Franklin Templeton; Vice President, Franklin Templeton Distributors, Inc. and FASA, LLC; and officer of 44 of the investment companies in Franklin Templeton.

Matthew T. Hinkle (1971) One Franklin Parkway San Mateo, CA 94403-1906	Chief Executive Officer – Finance and Administration	Since 2017	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Senior Vice President, Franklin Templeton Services, LLC; officer of 44 of the investment companies in Franklin Templeton; andformerly, Vice President, Global Tax (2012-April 2017) and Treasurer/Assistant Treasurer, Franklin Templeton (2009-2017).

Robert Lim (1948) One Franklin Parkway San Mateo, CA 94403-1906	VicePresident-AML Compliance	Since 2016	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Vice President, Franklin Templeton Companies, LLC; Chief Compliance Officer, Franklin Templeton Distributors, Inc. and Franklin Templeton Investor Services, LLC; and officer of 44 of the investment companies in Franklin Templeton.

Kimberly H. Novotny (1972) 300 S.E. 2nd Street Fort Lauderdale, FL 33301-1923	Vice President	Since 2016	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Associate General Counsel, Franklin Templeton; Vice President and Corporate Secretary, Fiduciary Trust International of the South; Vice President, Templeton Investment Counsel, LLC; Assistant Secretary, Franklin Resources, Inc.; and officer of 44 of the investment companies in Franklin Templeton.



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Interested Board Members and Officers(continued)



Name, Year of Birth and Address	Position	Length of Time Served	Number of Portfolios in Fund Complex Overseen by Board Member*	Other Directorships Held During at Least the Past 5 Years

Patrick O’Connor (1967) One Franklin Parkway San Mateo, CA 94403-1906	President and Chief Executive Officer– Investment Management	Since 2016	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
President and Chief Investment Officer, Franklin Advisory Services, LLC; Senior Vice President, Franklin Advisers, Inc.; officer of two of the investment companies in Franklin Templeton; andformerly, Managing Director, Head of iShares Product Canada, BlackRock (1998-2014).

Robert C. Rosselot (1960) 300 S.E. 2nd Street Fort Lauderdale, FL 33301-1923	Chief Compliance Officer	Since 2016	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Director, Global Compliance, Franklin Templeton; Vice President, Franklin Templeton Companies, LLC; officer of 44 of the investment companies in Franklin Templeton; andformerly, Senior Associate General Counsel, Franklin Templeton (2007-2013); and Secretary and Vice President, Templeton Group of Funds (2004-2013).

Navid J. Tofigh (1972) One Franklin Parkway San Mateo, CA 94403-1906	Vice President and Secretary	Since 2015	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Associate General Counsel and officer of 44 of the investment companies in Franklin Templeton.

Craig S. Tyle (1960) One Franklin Parkway San Mateo, CA 94403-1906	Vice President	Since 2016	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
General Counsel, Executive Vice President and Secretary, Franklin Resources, Inc.; and officer of some of the other subsidiaries of Franklin Resources, Inc. and of 44 of the investment companies in Franklin Templeton.

Lori A. Weber (1964) 300 S.E. 2nd Street Fort Lauderdale, FL 33301-1923	Vice President	Since 2016	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Senior Associate General Counsel, Franklin Templeton; Assistant Secretary, Franklin Resources, Inc.; Vice President and Secretary, Templeton Investment Counsel, LLC; and officer of 44 of the investment companies in Franklin Templeton.

*We base the number of portfolios on each separate series of the U.S. registered investment companies within the Franklin Templeton fund complex. These portfolios have a common investment manager or affiliated investment managers.

**Jennifer M. Johnson is considered to be an interested person of the Fund under the federal securities laws due to her position as an officer of Franklin Resources, Inc. (Resources), which is the parent company of the Fund’s investment manager and distributor.

Note 1: Effective May 1, 2018, Susan R. Thompson ceased to be a trustee of the Trust.

Note 2: Officer information is current as of the date of this report. It is possible that after this date, information about officers may change.

The Sarbanes-Oxley Act of 2002 and Rules adopted by the Securities and Exchange Commission require the Fund to disclose whether the Fund’s Audit Committee includes at least one member who is an audit committee financial expert within the meaning of such Act and Rules. The Fund’s Board has determined that there is at least one such financial expert on the Audit Committee and has designated Rohit Bhagat as its audit committee financial expert. The Board believes that Mr. Bhagat qualifies as such an expert in view of his extensive business background and experience, including extensive experience in the asset management and financial services industries. Mr. Bhagat has been a Member and Chairman of the Fund’s Audit Committee since 2016. As a result of such background and experience, the Board believes that Mr. Bhagat has acquired an understanding of generally accepted accounting principles and financial statements, the general application of such principles in connection with the accounting estimates, accruals and reserves, and analyzing and evaluating financial statements that present a breadth and level of complexity of accounting issues generally comparable to those of the Fund, as well as an understanding of internal controls and procedures for financial reporting and an understanding of audit committee functions. Mr. Bhagat is an independent Board member as that term is defined under the relevant Securities and Exchange Commission Rules and Releases.

The Statement of Additional Information (SAI) includes additional information about the board members and is available, without charge, upon request. Shareholders may call (800) DIALBEN/342-5236 to request the SAI.



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Shareholder Information

Proxy Voting Policies and Procedures

The Trust’s investment manager has established Proxy Voting Policies and Procedures (Policies) that the Trust uses to determine how to vote proxies relating to portfolio securities. Shareholders may view the Trust’s complete Policies online at franklintempleton.com. Alternatively, shareholders may request copies of the Policies free of charge by calling the Proxy Group collect at (954)527-7678 or by sending a written request to: Franklin Templeton Companies, LLC, 300 S.E. 2nd Street, Fort Lauderdale, FL 33301, Attention: Proxy Group. Copies of the Trust’s proxy voting records are also made available online at franklintempleton.com and posted on the U.S. Securities and Exchange Commission’s website at sec.gov and reflect the most recent12-month period ended June 30.

Quarterly Statement of Investments

The Trust files a complete statement of investments with the U.S. Securities and Exchange Commission for the first and third quarters for each fiscal year as an exhibit to its report on FormN-PORT. Shareholders may view the filed FormN-PORT by visiting the Commission’s website at sec.gov. The filed form may also be viewed and copied at the Commission’s Public Reference Room in Washington, DC. Information regarding the operations of the Public Reference Room may be obtained by calling(800) SEC-0330.

Premium/Discount Information

Information about the differences between the daily market price on the secondary market for the shares of the Funds and the Funds’ net asset value may be found on the Funds’ website at franklintempleton.com.



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Authorized for distribution only when accompanied or preceded by a summary prospectus and/or prospectus. Investors should carefully consider a fund’s investment goals, risks, charges and expenses before investing. A prospectus contains this and other information; please read it carefully before investing.

To help ensure we provide you with quality service, all calls to and from our service areas are monitored and/or recorded.

ANNUAL REPORT

FRANKLIN TEMPLETON

ETF TRUST

March 31, 2019

LOGO


Franklin Liberty International Opportunities ETF		Franklin Liberty U.S. Low Volatility ETF
Franklin Liberty Investment Grade Corporate ETF

Franklin Templeton Investments



Contents

Annual Report

Franklin Liberty International Opportunities ETF			2
Franklin Liberty Investment Grade Corporate ETF			9
Franklin Liberty U.S. Low Volatility ETF			16
Financial Highlights and Statements of Investments			23
Financial Statements			36
Notes to Financial Statements			40
Report of Independent Registered Public Accounting Firm			48
Tax Information			49
Board Members and Officers			50
Shareholder Information			53

Visitwww.franklintempleton.com/investor/products/etf/ for fund

updates and documents.


Not FDIC Insured		\|		May Lose Value		\|		No Bank Guarantee



franklintempleton.com	Not part of the annual report	1

ANNUAL REPORT

Franklin Liberty International Opportunities ETF

This annual report for Franklin Liberty International Opportunities ETF covers the fiscal year ended March 31, 2019.

Your Fund’s Goal and Main Investments

The Fund seeks long-term capital appreciation. Under normal market conditions, the Fund invests predominantly in equity securities in developed, developing and frontier markets outside of the U.S. across the entire market capitalization spectrum, including small- andmid-capitalization companies.

Performance Overview

During the12-month period, the Fund posted cumulative total returns of-5.80% based on market price and-4.54% based on net asset value (NAV). In comparison, the MSCI All Country World Index (ACWI) ex USA Index, which measures stock performance in global developed and emerging markets excluding the U.S., posted a-3.74% total return for the same period.¹ You can find more of the Fund’s performance data in the Performance Summary beginning on page 5.

Economic and Market Overview

The global economy expanded during the 12 months under review, despite weakness in certain regions. Global developed and emerging market stocks were aided by upbeat economic data in some regions, encouraging corporate earnings reports, the U.S. Federal Reserve’s (Fed’s) indications of a patient approach to its monetary policy decisions and optimism about a potential U.S.-China trade deal. In this environment, global stocks, as measured by the MSCI ACWI Index, posted a +3.16% total return for the 12 months ended March 31, 2019.¹

However, various factors weighed on global markets, including concerns about regulation of technology companies, political uncertainties in the U.S. and the European

Geographic Composition

Based on Total Net Assets as of 3/31/19

Union, the Fed’s interest-rate path and the European Central Bank’s (ECB’s) unwinding of its bond purchase program. Markets were also pressured by U.S. trade disputes with China and other trading partners, and their impact on global growth and corporate earnings.

1. Source: Morningstar.

The index is unmanaged and includes reinvestment of any income or distributions. It does not reflect any fees, expenses or sales charges. One cannot invest directly in an index, and an index is not representative of the Fund’s portfolio.

2. Source: U.S. Bureau of Labor Statistics.

See www.franklintempletondatasources.com for additional data provider information.

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Statement of Investments (SOI). The SOI begins on page 24.



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In Europe, the U.K.’s quarterly gross domestic product (GDP) growth accelerated in 2018’s second and third quarters, but it moderated in the fourth quarter. The Bank of England raised its key policy rate once during the review period. The eurozone’s quarterly GDP growth moderated in 2018’s third quarter but accelerated in the following two quarters. The bloc’s annual inflation varied throughout the 12 months under review but ended the period unchanged from the March 2018 level. The ECB kept its benchmark interest rate unchanged during the period and concluded its bond purchase program at the end of 2018. In March 2019, the ECB mentioned it expected key interest rates to remain unchanged at least through the end of 2019 and announced the launch of a new stimulus measure beginning in September 2019.

Investment Strategy

The Fund’s individual country and sector weightings may vary significantly from its benchmark index, and investments will not necessarily be in the securities that comprise its benchmark index. The Fund’s exposure to various regions and markets will vary from time to time according to the investment manager’s opinions as to the prevailing conditions and prospects for these markets. In seeking to outperform the relevant market of each region, the investment manager consults with various local asset managers based in certain regions around the world(Sub-Advisors). Although theSub-Advisors assist the investment manager in the selection of local securities, the investment manager retains the sole discretion with respect to portfolio security selection. The Fund may enter into certain derivative transactions to seek to enhance Fund returns, increase


Top 10 Countries

3/31/19

	% of Total Net Assets
Japan		13.9%
United Kingdom		12.1%
China		11.7%
France		6.6%
Canada		6.2%
Spain		5.4%
Switzerland		5.0%
Australia		3.8%
Italy		3.5%
India		3.3%

liquidity, gain exposure to certain instruments or markets in a more efficient or less expensive way and/or hedge risks associated with its other portfolio investments.

When choosing equity investments for the Fund, we apply a research-driven,bottom-up, fundamental long-term approach, focusing on the market price of a company’s securities relative to our evaluation of the company’s long-term earnings, asset value and cash flow potential. We seek to invest in companies that we consider to be financially strong with favorable growth potential and sustainable competitive advantages. We may also consider, among other factors, a company’s price/earnings ratio, profit margins and liquidation value.

Manager’s Discussion

During the reporting period, the Fund underperformed its benchmark, the MSCI ACWI ex USA Index, as security selection and an overweighted position in the consumer discretionary sector and stock selection in materials weighed on relative performance. Stock selection in financials and health care contributed to relative performance.

A number of the Fund’s more cyclically oriented companies detracted from relative performance amid increasing investor concerns about the health of the global economy. Among the detractors were China-based auto company Brilliance China Automotive Holdings and France-based home furnishings retailer Maisons du Monde. Brilliance China Automotive saw its shares fall steadily through much of 2018 amid weak car sales in China and news German automaker BMW (not a Fund holding) would take a majority stake in their joint venture, potentially further reducing Brilliance China Automotive’s overall sales.

Maisons du Monde, meanwhile, had to contend with a weak economic environment in France. However, sales have remained resilient as the company benefited from its omnichannel and international strategies.



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FRANKLIN LIBERTY INTERNATIONAL OPPORTUNITIES ETF


Top 10 Sectors/Industries

3/31/19

	% of Total Net Assets
Banks		12.5%
Pharmaceuticals		7.5%
Internet & Direct Marketing Retail		6.2%
Insurance		5.7%
Semiconductors & Semiconductor Equipment		4.0%
Electrical Equipment		3.9%
Interactive Media & Services		3.5%
IT Services		3.5%
Oil, Gas & Consumable Fuels		3.3%
Capital Markets		3.0%


Top 10 Holdings

3/31/19

Company *Sector/Industry, Country*	% of Total Net Assets
Alibaba Group Holding Ltd., ADR Internet & Direct Marketing Retail, China		3.1%
Tencent Holdings Ltd. Interactive Media & Services, China		2.3%
Novartis AG Pharmaceuticals, Switzerland		2.2%
Roche Holding AG Pharmaceuticals, Switzerland		2.2%
Taiwan Semiconductor Manufacturing Co. Ltd. Semiconductors & Semiconductor Equipment, Taiwan		2.1%
Ping An Insurance (Group) Co. of China Ltd., HInsurance, China		1.6%
Sanofi Pharmaceuticals, France		1.7%
AIA Group Ltd. Insurance, Hong Kong		1.6%
FinecoBank Banca Fineco SpA Banks, Italy		1.5%
Naspers Ltd., N Internet & Direct Marketing Retail, South Africa		1.4%

In the industrials sector, Italian electric cable manufacturer Prysmian weighed on relative performance after it issued a warning of additional costs related to a U.K. subsea project. Despite the weakness, Prysmian has continued to see solid demand for its undersea electrical and telecommunications cables. Furthermore, we believe Prysmian could benefit from long-term secular trends such as the growing use of alternative energy sources and smart grid adoption. Other detractors included materials stocks Lotte Chemical, a South Korean chemical company, and Ezz Steel, an Egyptian steel company.

With energy prices rising during the period,TGS-Nopec Geophysical (not held at period-end), a Norway-based provider of geosciences data, contributed to relative performance based on growing investor optimism that higher crude oil prices could lead to a pickup in oil and gas exploration and production activity.

In financials, Italian multi-channel lender FinecoBank Banca Fineco reported strong earnings for 2018 as the bank continues to execute well, in our assessment. Additionally, investor optimism that the ECB would continue to undertake efforts to support the European banking system was also a positive for the Italian lender.

Several of the Fund’s pharmaceuticals holdings contributed to relative performance as investors sought out stable growth amid the more challenging market environment in late 2018. Contributors included Swiss drug makers Roche Holding and Novartis, both of which have what we view as robust product pipelines. Australia-based blood products company CSL was another contributor based on strong growth in its plasma and vaccines businesses.

The ETF did not use derivatives during the period.

Thank you for your participation in Franklin Liberty International Opportunities ETF. We look forward to serving your future investment needs.


		Purav A. Jhaveri, CFA, FRM

		Portfolio Manager

The foregoing information reflects our analysis, opinions and portfolio holdings as of March 31, 2019, the end of the reporting period. The way we implement our main investment strategies and the resulting portfolio holdings may change depending on factors such as market and economic conditions. These opinions may not be relied upon as investment advice or an offer for a particular security. The information is not a complete analysis of every aspect of any market, country, industry, security or the Fund. Statements of fact are from sources considered reliable, but the investment manager makes no representation or warranty as to their completeness or accuracy. Although historical performance is no guarantee of future results, these insights may help you understand our investment management philosophy.



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CFA^® is a trademark owned by CFA Institute.

FRANKLIN LIBERTY INTERNATIONAL OPPORTUNITIES ETF

Performance Summary as of March 31, 2019

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (1/27/17), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Performance as of 3/31/19¹

Cumulative Total Return²

Average Annual Total Return²

Based on
NAV³

Based on

market price⁴

Based on
NAV³

Based on

market price⁴

1-Year

-4.54%

⁵

-5.80%

-4.54%

-5.80%

Since Inception (1/25/17)

+16.92%

+16.64%

+7.44%

+7.32%

See page 7 for Performance Summary footnotes.



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FRANKLIN LIBERTY INTERNATIONAL OPPORTUNITIES ETF

PERFORMANCE SUMMARY

Total Return Index Comparison for a Hypothetical $10,000 Investment¹

Total return is calculated at net asset value and represents the change in value of an investment over the periods shown. It includes any Fund fees and expenses, and reinvested distributions. The unmanaged index includes reinvestment of any income or distributions. It differs from the Fund in composition and does not pay management fees or expenses. One cannot invest directly in an index.

1/25/17–3/31/19

LOGO

See page 7 for Performance Summary footnotes.



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PERFORMANCE SUMMARY

Distributions(4/1/18–3/31/19)



Net Investment Income	Short-Term Capital Gain		Long-Term Capital Gain		Total
$0.239893	$	0.095145	$	0.087308	$	0.422346

Total Annual Operating Expenses⁷



With Waiver	Without Waiver
0.60%		3.39%

All investments involve risks, including possible loss of principal. The market values of stocks owned by the Fund will go up or down, sometimes rapidly or unpredictably. Special risks are associated with foreign investing, including currency fluctuations, economic instability and political developments; investments in emerging markets involve heightened risks related to the same factors. To the extent the Fund focuses on particular countries, regions, industries, sectors or types of investment from time to time, it may be subject to greater risks or adverse developments in such areas of focus than a fund that invests in a wider variety of countries, regions, industries or sectors, or investments. Investments in developing markets involve heightened risks related to the same factors, in addition to those associated with their relatively small size and lesser liquidity. Smaller andmidsize-company stocks have historically experienced more price volatility than larger-company stocks, especially over the short term. Investments in derivatives involve costs and create economic leverage, which may result in significant volatility and cause the Fund to participate in losses (as well as gains) that significantly exceed the Fund’s initial investment. The Fund is actively managed but there is no guarantee that the manager’s investment decisions will produce the desired results. The Fund’s prospectus also includes a description of the main investment risks.

ETFs trade like stocks, fluctuate in market value and may trade at prices above or below their net asset value. Brokerage commissions and ETF expenses will reduce returns.

1. The Fund has an expense reduction contractually guaranteed through 7/31/19. Fund investment results reflect the expense reduction; without this reduction, the results would have been lower.

2. Total return calculations represent the cumulative and average annual changes in value of an investment over the periods indicated. Return for less than one year, if any, has not been annualized.

3. Assumes reinvestment of distributions based on net asset value.

4. Assumes reinvestment of distributions based on market price.

6. Source: Morningstar. The MSCI ACWI ex USA Index is a free float-adjusted, market capitalization-weighted index designed to measure equity market performance in global developed and emerging markets excluding the U.S.

See www.franklintempletondatasources.com for additional data provider information.



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FRANKLIN LIBERTY INTERNATIONAL OPPORTUNITIES ETF

Your Fund’s Expenses

Actual Fund Expenses

The table below provides information about actual account values and actual expenses in the columns under the heading “Actual.” In these columns the Fund’s actual return, which includes the effect of Fund expenses, is used to calculate the “Ending Account Value.” You can estimate the expenses you paid during the period by following these steps (of course, your account value and expenses will differ from those in this illustration): Divide your account value by $1,000 (if your account had an $8,600 value, then $8,600÷ $1,000 = 8.6). Then multiply the result by the number in the row under the headings “Actual” and “Expenses Paid During Period” (if Actual Expenses Paid During Period were $ 7.50, then8.6 x $ 7.50 = $64.50). In this illustration, the actual expenses paid this period are $64.50.

Hypothetical Example for Comparison with Other Funds

Under the heading “Hypothetical” in the table, information is provided about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. This information may not be used to estimate the actual ending account balance or expenses you paid for the period, but it can help you compare ongoing costs of investing in the Fund with those of other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

Please note that expenses shown in the table are meant to highlight ongoing costs and do not reflect any transactional costs.Therefore, information under the heading “Hypothetical” is useful in comparing ongoing costs only, and will not help you compare total costs of owning different ETFs. In addition, if transactional costs were included, your total costs would have been higher.


		Actual (actual return after expenses)				Hypothetical (5% annual return before expenses)

Beginning Account Value 10/1/18		Ending Account Value 3/31/19		Expenses Paid During Period 10/1/18–3/31/19^1,2		Ending Account Value 3/31/19		Expenses Paid During Period 10/1/18–3/31/19^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	972.00	$	2.90	$	1,021.99	$	2.97		0.59	%

2. Reflects expenses after fee waivers and expense reimbursements.



8	Annual Report	franklintempleton.com

Franklin Liberty Investment Grade Corporate ETF

This annual report for Franklin Liberty Investment Grade Corporate ETF covers the fiscal year ended March 31, 2019.

Your Fund’s Goal and Main Investments

The Fund seeks a high level of current income as is consistent with prudent investing, while seeking preservation of capital. Under normal market conditions, the Fund invests at least 80% of its net assets in investment-grade corporate debt securities and investments.

Performance Overview

During the12-month period, the Fund posted cumulative total returns of +4.80% based on market price and +4.46% based on net asset value (NAV).¹ In comparison, the Bloomberg Barclays U.S. Corporate Investment Grade Index posted a +4.94% total return for the same period.¹ You can find more of the Fund’s performance data in the Performance Summary beginning on page 12.

Economic and Market Overview

The U.S. economy grew during the12-month period. The economy expanded at a faster rate in 2019’s first quarter after moderating in the previous two quarters. Growth in consumer spending, business investment, exports, government spending and inventory investment was partly offset by a decrease in housing investment. The manufacturing and services sectors expanded during the period. The unemployment rate decreased from 4.0% in March 2018 to 3.8% atperiod-end.² The annual inflation rate, as measured by the Consumer Price Index, decreased from 2.4% in March 2018 to 1.9% atperiod-end.²

The U.S. Federal Reserve (Fed) raised its target range for the federal funds rate by 0.25% three times during the period,


Top 10 Sectors/Industries

3/31/19

	% of Total Net Assets
Banks		21.1%
Oil, Gas & Consumable Fuels		12.5%
Capital Markets		4.9%
Electric Utilities		4.0%
Diversified Financial Services		3.8%
Food & Staples Retailing		3.7%
Diversified Telecommunication Services		3.5%
Internet & Direct Marketing Retail		3.4%
Media		3.4%
Entertainment		3.1%

to 2.25%–2.50%, and continued reducing its balance sheet as a part of its plan to normalize monetary policy. At its March 2019 meeting, the Fed held its target range for the federal funds rate unchanged and signaled no rate hikes in 2019. The Fed also lowered its forecasts for economic growth in 2019 and 2020. Furthermore, the Fed mentioned it would end its balance sheet normalization by the end of September 2019.

The10-year Treasury yield, which moves inversely to its price, decreased during the period. The yield rose to multi-year highs several times in 2018 amid investor concerns about higher inflation and the Fed’s interest-rate path. Expectations that other central banks might scale back monetary stimulus, several better-than-expected U.S. economic reports and optimism surrounding trade talks between the U.S. and China also pushed the yield higher. However, some factors weighed on the Treasury yield at certain points during the period, including concerns about political turmoil in Italy, political uncertainties in the U.S., tensions between the U.S. and North Korea, U.S. trade disputes with China and other trading partners, slower domestic and global economic growth, and the Fed’s indications of a cautious approach to its monetary policy decisions. Overall, the10-year Treasury yield declined from 2.74% at the beginning of the period to 2.41% atperiod-end.

1. Source: Morningstar.

2. Source: Bureau of Labor Statistics.

See www.franklintempletondatasources.com for additional data provider information.

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Statement of Investments (SOI). The SOI begins on page 30.



franklintempleton.com	Annual Report	9

FRANKLIN LIBERTY INVESTMENT GRADE CORPORATE ETF

Investment Strategy

The Fund invests primarily in U.S. dollar-denominated corporate debt securities issued by U.S. and foreign companies. The Fund may invest in debt securities of any maturity or duration.

The Fund’s focus on the credit quality of its portfolio is intended to reduce credit risk and help to preserve the Fund’s capital. The Fund may also invest a portion of its assets in convertible securities, preferred securities and U.S. Treasury securities, and generally expects to invest a portion of its assets in cash, cash equivalents and high quality money market securities, including commercial paper, repurchase agreements and affiliated or unaffiliated money market funds. The Fund may invest up to 40% of its net assets in foreign securities, including those in developing markets, and up to 15% of its net assets innon-U.S. dollar-denominated securities. The Fund may enter into certain derivative transactions to seek to enhance Fund returns, increase liquidity, gain exposure to certain instruments or markets in a more efficient or less expensive way and/or hedge risks associated with its other portfolio investments.

In choosing investments, we select securities in various market sectors based on our assessment of changing economic, market, industry and issuer conditions. We use atop-down analysis of macroeconomic trends, combined with abottom-up fundamental analysis of market sectors, industries and issuers, to try to take advantage of varying sector reactions to economic events. The Fund’s portfolio is constructed by taking into account our desired duration and yield curve exposure, total return potential, as well as the appropriate diversification and risk profile at the issue, company and industry level.

Manager’s Discussion

Investment-grade corporate bonds were volatile during the period. Yield spreads relative to U.S. Treasury securities increased for the final nine months of 2018 before recovering in early 2019. The market was driven by mixed global economic growth data, mostly positive corporate earnings news, central bank activities and headlines about trade wars. Investors also focused on the diminishing quality of the investment grade credit universe, as shown by a rising proportion of bonds rated BBB by the major credit rating agencies.

Government bond yields also reflected these uncertainties, with the10-year U.S. Treasury yield starting the period at 2.74% and ending at 2.41% after closing as high as 3.24% in November 2018. The yield curve continued to flatten and then invert, as shorter yields rose more than longer term yields. Investors closely watched the monetary policy plans


Top 10 Holdings

3/31/19

Issue/Issurer *Sector/Industry*	% of Total Net Assets
Alibaba Group Holding Ltd., senior note, 2.50%, 11/28/19 Internet & Direct Marketing Retail		3.4%
Chevron Corp., senior note, 2.954%, 5/16/26 Oil, Gas & Consumable Fuels		3.0%
Shell International Finance BV, senior note, 2.125%, 5/11/20 Oil, Gas & Consumable Fuels		2.8%
Microsoft Corp., senior bond, 4.45%, 11/03/45 Software		2.7%
The Goldman Sachs Group Inc., sub. note, 4.25%, 10/21/25 Capital Markets		2.7%
Bank of America Corp., sub. bond, 4.183%, 11/25/27 Banks		2.5%
Sumitomo Mitsui Banking Corp., senior note, 2.514%, 1/17/20 Banks		2.5%
NBCUniversal Media LLC, senior note, 4.375%, 4/01/21 Media		2.5%
JPMorgan Chase & Co., sub. note, 3.375%, 5/01/23 Banks		2.4%
Verizon Communications Inc., senior bond, 5.50%, 3/16/47 Diversified Telecommunication Services		2.3%

from the Fed. The Fed continued to hike rates through late 2018 before taking a dovish turn in early 2019 as economic growth showed some weakness and inflation pressures remained mostly muted.

The Fund underperformed its benchmark on a net basis during the period. Duration/yield curve positioning was a major performance detractor, while security selection also hurt performance. Industry and quality allocations helped performance.

Duration/yield curve positioning detracted due to the Fund’s slightly short duration stance relative to the benchmark in an environment where U.S. treasury rates ultimately ended lower. Duration remains a key component of any investment-grade credit strategy.

Security selection results were mixed, but negatives ultimately outweighed the positives. Some of the major detractors during the period included British American Tobacco, Anadarko Petroleum, Telefonica Emisiones and FedEx. Major contributors included Verizon Communications, Chevron, Burlington Northern Santa Fe and Glencore Funding.

The Fund’s overweighted position in BBB rated bonds helped performance, despite investor concerns about the growth of the BBB segment of the market. We remained selective about



10	Annual Report	franklintempleton.com

FRANKLIN LIBERTY INVESTMENT GRADE CORPORATE ETF

which BBB bonds we bought, focusing primarily on those issuers with improving or stable credit metrics that we believed also offered good compensation for the risks involved.

What is the yield curve?

The yield curve is a line that plots the interest rates, at a set point in time, of bonds having equal credit quality but differing maturity dates. The most frequently reported yield curve compares three-month, two-year and 30-year U.S. Treasury debt.

What is duration?

Duration is a measure of a bond’s price sensitivity to interest-rate changes. In general, a portfolio of securities with a lower duration can be expected to be less sensitive to interest-rate changes than a portfolio with a higher duration.

The Fund held only cash bonds during the period and had no exposure to derivatives.

Thank you for your participation in Franklin Liberty Investment Grade Corporate ETF. We look forward to serving your future investment needs.

LOGO

Marc Kremer, CFA


		Shawn Lyons, CFA

		Portfolio Management Team



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FRANKLIN LIBERTY INVESTMENT GRADE CORPORATE ETF

Performance Summary as of March 31, 2019

Total return reflects reinvestment of the Fund’s dividends and capital gain distributions, if any, and any unrealized gains or losses. Total returns do not include brokerage commissions that may be payable on secondary market transactions. The performance tables and graph do not reflect any taxes that a shareholder would pay on Fund dividends, capital gain distributions, if any, or any realized gains on the sale of Fund shares.

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (10/5/16), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Performance as of 3/31/19¹

Cumulative Total Return²

Average Annual Total Return²

Based on
NAV³

Based on
market price⁴

Based on
NAV³

Based on
market price⁴

1-Year

+4.46%

+4.80%

+4.46%

+4.80%

Since Inception (10/3/16)

+4.99%

+5.11%

+1.97%

+2.02%



	30-Day Standardized Yield⁶
Distribution Rate⁵	(with waiver)		(without waiver)
3.61%		3.51%		2.50%

See page 14 for Performance Summary footnotes.



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FRANKLIN LIBERTY INVESTMENT GRADE CORPORATE ETF

PERFORMANCE SUMMARY

Total Return Index Comparison for a Hypothetical $10,000 Investment¹

Total return is calculated at net asset value and represents the change in value of an investment over the periods shown. It includes any Fund fees and expenses, and reinvested distributions. The unmanaged index includes reinvestment of any income or distributions. It differs from the Fund in composition and does not pay management fees or expenses. One cannot invest directly in an index.

10/3/16–3/31/19

LOGO

See page 14 for Performance Summary footnotes.



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FRANKLIN LIBERTY INVESTMENT GRADE CORPORATE ETF

PERFORMANCE SUMMARY

Distributions(4/1/18–3/31/19)

Net Investment
Income

$0.908476

Total Annual Operating Expenses⁸



With Waiver	Without Waiver
0.35%		1.04%

All investments involve risks, including possible loss of principal. Bond prices generally move in the opposite direction of interest rates. Thus, as the prices of bonds in the Fund adjust to a rise in interest rates, the Fund’s share price may decline. Distributions to shareholders may decline when prevailing interest rates fall or when the Fund experiences defaults on debt securities it holds. Changes in the financial strength of a bond issuer or in a bond’s credit rating may affect its value. The Fund’s investments in foreign securities involve certain risks including currency fluctuations, and economic and political uncertainties. Investments in developing markets involve heightened risks related to the same factors, in addition to those associated with their relatively small size and lesser liquidity. Investing in derivative securities and the use of foreign currency techniques involve special risks as such may not achieve the anticipated benefits and/or may result in losses to the Fund. The Fund is actively managed but there is no guarantee that the manager’s investment decisions will produce the desired results. The Fund’s prospectus also includes a description of the main investment risks.

ETFs trade like stocks, fluctuate in market value and may trade at prices above or below their net asset value. Brokerage commissions and ETF expenses will reduce returns.

1. The Fund has an expense reduction contractually guaranteed through 7/31/19. Fund investment results reflect the expense reduction; without this reduction, the results would have been lower.

2. Total return calculations represent the cumulative and average annual changes in value of an investment over the periods indicated. Return for less than one year, if any, has not been annualized.

3. Assumes reinvestment of distributions based on net asset value.

4. Assumes reinvestment of distributions based on market price.

5. Distribution rate is based on an annualization of the March dividend and the NAV per share on 3/31/19.

6. The Fund’s30-day standardized yield is calculated over a trailing30-day period using the yield to maturity on bonds and/or the dividends accrued on stocks. It may not equal the Fund’s actual income distribution rate, which reflects the Fund’s past dividends paid to shareholders.

7. Source: Morningstar. The Bloomberg Barclays U.S. Corporate Investment Grade Index measures the investment grade, fixed-rate, taxable corporate bond market. It includes U.S. dollar-denominated securities publicly issued by U.S. andnon-U.S. industrial, utility and financial issuers.

8. Figures are as stated in the Fund’s current prospectus and may differ from the expense ratios disclosed in the Your Fund’s Expenses and Financial Highlights sections in this report. In periods of market volatility, assets may decline significantly, causing total annual Fund operating expenses to become higher than the figures shown.

See www.franklintempletondatasources.com for additional data provider information.



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FRANKLIN LIBERTY INVESTMENT GRADE CORPORATE ETF

Your Fund’s Expenses

Actual Fund Expenses

The table below provides information about actual account values and actual expenses in the columns under the heading “Actual.” In these columns the Fund’s actual return, which includes the effect of Fund expenses, is used to calculate the “Ending Account Value.” You can estimate the expenses you paid during the period by following these steps (of course, your account value and expenses will differ from those in this illustration):Divide your account value by $1,000 (if your account had an $8,600 value, then $8,600÷ $1,000 = 8.6).Then multiply the result by the number in the row under the headings “Actual” and “Expenses Paid During Period” (if Actual Expenses Paid During Period were $7.50, then 8.6 x $7.50 = $64.50).In this illustration, the actual expenses paid this period are $64.50.

Hypothetical Example for Comparison with Other Funds

Under the heading “Hypothetical” in the table, information is provided about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. This information may not be used to estimate the actual ending account balance or expenses you paid for the period, but it can help you compare ongoing costs of investing in the Fund with those of other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.


		Actual (actual return after expenses)				Hypothetical (5% annual return before expenses)

Beginning Account Value 10/1/18		Ending Account Value 3/31/19		Expenses Paid During Period 10/1/18–3/31/19^1,2		Ending Account Value 3/31/19		Expenses Paid During Period 10/1/18–3/31/19^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	1,043.20	$	1.78	$	1,023.19	$	1.77		0.35	%

2. Reflects expenses after fee waivers and expense reimbursements.



franklintempleton.com	Annual Report	15

Franklin Liberty U.S. Low Volatility ETF

This annual report for Franklin Liberty U.S. Low Volatility ETF covers the fiscal year ended March 31, 2019.

Your Fund’s Goal and Main Investments

The Fund seeks capital appreciation with an emphasis on lower volatility. Under normal market conditions, the Fund invests at least 80% of its net assets in U.S. investments.

Performance Overview

During the12-month period, the Fund posted cumulative total returns of +15.08% based on market price and +14.98% based on net asset value (NAV). In comparison, the Russell 1000^® Index produced a +9.30% total return for the same period.¹ You can find more of the Fund’s performance data in the Performance Summary beginning on page 19.

Economic and Market Overview

The U.S. economy grew during the12-month period. The economy expanded at a faster rate in 2019’s first quarter after moderating in the previous two quarters. Growth in consumer spending, business investment, exports, government spending and inventory investment was partly offset by a decrease in housing investment. The manufacturing and services sectors expanded during the period. The unemployment rate decreased from 4.0% in March 2018 to 3.8% atperiod-end.² The annual inflation rate, as measured by the Consumer Price Index, decreased from 2.4% in March 2018 to 1.9% atperiod-end.²

The U.S. Federal Reserve (Fed) raised its target range for the federal funds rate by 0.25% three times during the period, to 2.25%–2.50%, and continued reducing its balance sheet


Top 10 Sectors/Industries

3/31/19

	% of Total Net Assets
Information Technology		22.8%
Health Care		14.3%
Financials		13.2%
Consumer Discretionary		10.2%
Industrials		9.8%
Communication Services		7.4%
Consumer Staples		6.8%
Energy		5.1%
Real Estate		3.9%
Utilities		3.2%

as part of its plan to normalize monetary policy. At its March 2019 meeting, the Fed held its target range for the federal funds rate unchanged and signaled no rate hikes in 2019. The Fed also lowered its forecasts for economic growth in 2019 and 2020. Furthermore, the Fed mentioned it would end its balance sheet normalization by the end of September 2019.

U.S. equity markets overall rose during the period, benefiting from upbeat economic data and better U.S. corporate earnings. However, markets reflected concerns about tighter regulation of technology companies, the Fed’s interest-rate path, U.S. political uncertainties and the impact of U.S. trade disputes with China and other trading partners on global growth and corporate earnings. These concerns were partially alleviated by easing trade tensions and optimism about a potential U.S.-China trade deal. Markets also benefited from the Fed’s indications of a patient approach to its monetary policy decisions. After reaching a newall-time high in September 2018, the broad U.S. stock market, as measured by the Standard & Poor’s^® 500 Index (S&P 500^®), sold off sharply during 2018’s fourth quarter but rallied in 2019’s first quarter. Overall, the S&P 500 posted a +9.50% total return for the12-month period.³

1. Source: Morningstar. Frank Russell Company is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell^® is a trademark of Frank Russell Company.

2. Source: Bureau of Labor Statistics.

3. Source: Morningstar.

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Statement of Investments (SOI). The SOI begins on page 34.



16	Annual Report	franklintempleton.com

FRANKLIN LIBERTY U.S. LOW VOLATILITY ETF

Investment Strategy

The Fund invests primarily in equity securities (principally common stocks) of U.S. companies.⁴ The Fund seeks capital appreciation, while providing a lower level of volatility than the broader equity market as measured by the Russell 1000^® Index, meaning the Fund seeks returns that fluctuate less than the returns of the Russell 1000^® Index. We apply a fundamentally driven“bottom-up” research process to create a starting universe of eligible securities across a large number of sectors derived from the holdings of a number of Franklin Templeton equity funds. The investment manager screens that universe on a quarterly basis in order to identify those securities with the lowest realized volatility relative to their corresponding sectors. The Fund’s sector weightings generally are based on the current sector weightings within the Russell 1000^® Index. Individual securities in the Fund’s portfolio are generally weighted equally within each sector. The investment manager may, from time to time, make adjustments to the Fund’s portfolio as a result of corporate actions, changes to the volatility profile of the Fund’s holdings, or for risk management related purposes.

Manager’s Discussion

The Fund posted strong performance during the period and outperformed its benchmark, the Russell 1000^® Index. Most sectors contributed to relative returns, led by information technology, financials and health care. Conversely, the industrials sector dampened relative results.

Overall, technology stocks held by the Fund fared well despite investor concerns about trade and global growth that permeated financial markets during the reporting period. Major sector contributors included software industry holdings Intuit and Synopsys and payroll processing software company Automatic Data Processing. In contrast, an underweighting in rising shares of Microsoft dampened relative performance.

Stock selection benefited relative returns in the financials sector, particularly in the insurance industry where The Progressive Corp., Aflac and The Travelers Companies had positive performance. A detractor in the sector was investment management company BlackRock (not held atperiod-end).

The health care sector benefited from a position in Merck & Co., which had a successful year from strong sales of its lung cancer treatment. Diversified life sciences company Danaher


Top 10 Holdings

3/31/19

Company *Sector/Industry*	% of Total Net Assets
Verizon Communications Inc. Communication Services		1.5%
TELUS Corp. Communication Services		1.5%
The Walt Disney Co. Communication Services		1.5%
Comcast Corp.,A Communication Services		1.5%
Accenture PLC, A Information Technology		1.5%
Synopsys Inc. Information Technology		1.5%
Fiserv Inc. Information Technology		1.5%
Alphabet Inc., A Information Technology		1.5%
Automatic Data Processing Inc. Information Technology		1.5%
Intuit Inc. Information Technology		1.4%

also added to Fund performance along with Abbott Laboratories and Baxter International. A detractor in the sector was Laboratory Corporation of America (not held at period-end), which struggled from weak demand for its diagnostic testing services that led to a revenue shortfall for the company.

Elsewhere, top contributors included household products company Church & Dwight (not held at period-end) in the consumer staples sector and Starbucks (not held atperiod-end) in the consumer discretionary sector.

In contrast, federal budget concerns made it a difficult year for defense contractor General Dynamics in the industrials sector. In the consumer discretionary sector, Ford Motor (not held at period-end) shares declined as the automaker faced several challenges, including slowing sales, rising raw materials costs and the potential impact of tariffs on its bottom line.

4. “U.S. companies” are those that (i) are organized under the laws of, or have a principal office in, or for whose securities the principal trading market is, the U.S.; (ii) derive 50% or more of their total revenue or profit from either goods or services produced, or sales made, in the U.S.; or (iii) have 50% or more of their assets in the U.S.

See www.franklintempletondatasources.com for additional data provider information.



franklintempleton.com	Annual Report	17

FRANKLIN LIBERTY U.S. LOW VOLATILITY ETF

Thank you for your participation in Franklin Liberty U.S. Low Volatility ETF. We look forward to serving your future investment needs.


		Todd Brighton, CFA

		Portfolio Manager



18	Annual Report	franklintempleton.com

FRANKLIN LIBERTY U.S. LOW VOLATILITY ETF

Performance Summary as of March 31, 2019

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (9/22/16), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Performance as of 3/31/19¹

Cumulative Total Return²

Average Annual Total Return²

Based on
NAV³

Based on

market price⁴

Based on
NAV³

Based on

market price⁴

1-Year

+14.98%

+15.08%

+14.98%

+15.08%

Since Inception (9/20/16)

+40.94%

+41.16%

+14.55%

+14.62%

See page 21 for Performance Summary footnotes.



franklintempleton.com	Annual Report	19

FRANKLIN LIBERTY U.S. LOW VOLATILITY ETF

PERFORMANCE SUMMARY

Total Return Index Comparison for a Hypothetical $10,000 Investment¹

Total return is calculated at net asset value and represents the change in value of an investment over the periods shown. It includes any Fund fees and expenses, and reinvested distributions. The unmanaged index includes reinvestment of any income or distributions. It differs from the Fund in composition and does not pay management fees or expenses. One cannot invest directly in an index.

9/20/16–3/31/19

LOGO

See page 21 for Performance Summary footnotes.



20	Annual Report	franklintempleton.com

FRANKLIN LIBERTY U.S. LOW VOLATILITY ETF

PERFORMANCE SUMMARY

Distributions(4/1/18–3/31/19)



Net Investment Income	Short-Term Capital Gain		Long-Term Capital Gain		Total
$0.471519	$	0.016245	$	0.335250	$	0.823014

Total Annual Operating Expenses⁶



With Waiver	Without Waiver
0.50%		2.11%

All investments involve risks, including possible loss of principal. The market values of stocks owned by the Fund will go up or down, sometimes rapidly or unpredictably. There can be no guarantee that the Fund’s volatility strategy will be successful, and achieving the Fund’s volatility strategy does not mean the Fund will achieve a positive or competitive return. The volatility strategy can also be expected to limit the Fund’s participation in market price appreciation when compared to similar funds that do not attempt this strategy. Smaller andmidsize-company stocks have historically experienced more price volatility than larger company stocks, especially over the short term. The Fund is actively managed but there is no guarantee that the manager’s investment decisions will produce the desired results. The Fund’s prospectus also includes a description of the main investment risks.

ETFs trade like stocks, fluctuate in market value and may trade at prices above or below their net asset value. Brokerage commissions and ETF expenses will reduce returns.

1. The Fund has an expense reduction contractually guaranteed through 7/31/19. Fund investment results reflect the expense reduction; without this reduction, the results would have been lower.

2. Total return calculations represent the cumulative and average annual changes in value of an investment over the periods indicated. Return for less than one year, if any, has not been annualized.

3. Assumes reinvestment of distributions based on net asset value.

4. Assumes reinvestment of distributions based on market price.

5. Source: Morningstar. The Russell 1000 Index is market capitalization weighted and measures performance of the largest companies in the Russell 3000 Index, which represents the majority of the U.S. market’s total capitalization.

See www.franklintempletondatasources.com for additional data provider information.



franklintempleton.com	Annual Report	21

FRANKLIN LIBERTY U.S. LOW VOLATILITY ETF

Your Fund’s Expenses

Actual Fund Expenses

The table below provides information about actual account values and actual expenses in the columns under the heading “Actual.” In these columns the Fund’s actual return, which includes the effect of Fund expenses, is used to calculate the “Ending Account Value.” You can estimate the expenses you paid during the period by following these steps (of course, your account value and expenses will differ from those in this illustration):Divide your account value by $1,000 (if your account had an $8,600 value, then $8,600÷ $1,000 = 8.6).Then multiply the result by the number in the row under the headings “Actual” and “Expenses Paid During Period” (if Actual Expenses Paid During Period were $ 7.50, then 8.6 x $ 7.50 = $64.50).In this illustration, the actual expenses paid this period are $64.50.

Hypothetical Example for Comparison with Other Funds

Under the heading “Hypothetical” in the table, information is provided about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. This information may not be used to estimate the actual ending account balance or expenses you paid for the period, but it can help you compare ongoing costs of investing in the Fund with those of other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.


		Actual (actual return after expenses)				Hypothetical (5% annual return before expenses)

Beginning Account Value 10/1/18		Ending Account Value 3/31/19		Expenses Paid During Period 10/1/18–3/31/19^1,2		Ending Account Value 3/31/19		Expenses Paid During Period 10/1/18–3/31/19^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	1,036.80	$	2.54	$	1,022.44	$	2.52		0.50	%

2. Reflects expenses after fee waivers and expense reimbursements.



22	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin Liberty International Opportunities ETF



	Year Ended March 31,

	2019			2018			2017^a

Per share operating performance (for a share outstanding throughout the year)

Net asset value, beginning of year	$	28.89		$	25.58		$	24.50


Income from investment operations:^b

Net investment income^c		0.51			0.45			0.09

Net realized and unrealized gains (losses)		(1.89	)		4.00			0.99


Total from investment operations		(1.38	)		4.45			1.08


Less distributions from:

Net investment income		(0.24	)		(0.74	)		—

Net realized gains		(0.18	)		(0.40	)		—


Total distributions		(0.42	)		(1.14	)		—


Net asset value, end of year	$	27.09		$	28.89		$	25.58


Total return^d		(4.70)%			17.50%			4.41%

Ratios to average net assets^e

Expenses before waiver and payments by affiliates		2.34%			3.38%			8.50%

Expenses net of waiver and payments by affiliates		0.60%			0.59%			0.60%

Net investment income		1.89%			1.60%			1.98%

Supplemental data

Net assets, end of year (000’s)		$9,480			$5,778			$5,116

Portfolio turnover rate^f		20.83%			34.08%			2.32%

^aFor the period January 25, 2017 (commencement of operations) to March 31, 2017.

^cBased on average daily shares outstanding.

^eRatios are annualized for periods less than one year.

^fPortfolio turnover rate excludes the value of portfolio securities received or delivered as a result of processing capital share transactions in Creation Units, if any.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	23

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2019

Franklin Liberty International Opportunities ETF



		Industry		Shares/Unit		Value
	Common Stocks 99.0%
	Australia 3.8%
	Amcor Ltd.		Containers & Packaging		8,376	$	91,569
	BHP Group Ltd.		Metals & Mining		798		21,818
	Commonwealth Bank of Australia		Banks		413		20,724
	CSL Ltd.		Biotechnology		847		117,289
	Ramsay Health Care Ltd.		Health Care Providers & Services		684		31,266
	Rio Tinto Ltd.		Metals & Mining		1,062		73,863

						356,529

	Brazil 1.2%
	Ambev SA		Beverages		2,500		10,811
a	B2W Cia Digital		Internet & Direct Marketing Retail		800		8,679
	B3 SA—Brasil Bolsa Balcao		Capital Markets		2,500		20,634
	CCR SA		Transportation Infrastructure		4,900		14,782
	Companhia Energetica de Minas Gerais		Electric Utilities		4,600		19,739
	Energisa SA		Electric Utilities		900		9,378
	Vale SA		Metals & Mining		2,100		27,482

						111,505

	Canada 6.2%
	Alimentation Couche-Tard Inc., B		Food & Staples Retailing		875		51,559
	Brookfield Asset Management Inc., A		Capital Markets		2,275		106,023
	Canadian National Railway Co.		Road & Rail		1,225		109,695
	Dollarama Inc.		Multiline Retail		963		25,698
	Enbridge Inc.		Oil, Gas & Consumable Fuels		1,575		57,060
	Nutrien Ltd.		Chemicals		700		36,930
	Peyto Exploration & Development Corp.		Oil, Gas & Consumable Fuels		2,975		15,566
	Royal Bank of Canada		Banks		1,084		81,806
	TELUS Corp.		Diversified Telecommunication Services		1,138		42,151
	The Toronto-Dominion Bank		Banks		1,170		63,512

						590,000

	China 11.7%
a	Alibaba Group Holding Ltd., ADR		Internet & Direct Marketing Retail		1,593		290,643
	Bank of Ningbo Co. Ltd., A		Banks		17,500		55,311
	Brilliance China Automotive Holdings Ltd.		Automobiles		48,000		47,572
	China Merchants Bank Co. Ltd., A		Banks		5,500		27,761
	China Merchants Bank Co. Ltd., H		Banks		15,500		75,329
a	Ctrip.com International Ltd., ADR		Internet & Direct Marketing Retail		2,870		125,390
a	New Oriental Education & Technology Group Inc., ADR		Diversified Consumer Services		175		15,766
	Ping An Insurance (Group) Co. of China Ltd., H		Insurance		14,000		156,765
	Silergy Corp.		Semiconductors & Semiconductor Equipment		5,000		74,626
	Sunny Optical Technology Group Co. Ltd.		Electronic Equipment, Instruments & Components		1,800		21,497
	Tencent Holdings Ltd.		Interactive Media & Services		4,800		220,740

						1,111,400

	Denmark 0.6%
	ISS AS		Commercial Services & Supplies		1,839		56,011

	Egypt 0.4%
a	Ezz Steel		Metals & Mining		37,815		39,473

	Finland 0.9%
	Tieto OYJ		IT Services		2,703		82,554

	France 6.6%
	Capgemini SE		IT Services		777		94,312
	Maisons du Monde SA		Specialty Retail		3,406		65,857
	Sanofi		Pharmaceuticals		1,761		155,696
	Schneider Electric SE		Electrical Equipment		1,216		95,495



24	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin Liberty International Opportunities ETF(continued)



		Industry		Shares/Unit		Value
	Common Stocks (continued)
	France (continued)
	SEB SA		Household Durables		530	$	89,266
	Vinci SA		Construction & Engineering		1,258		122,496


							623,122

	Germany 1.1%
	1&1 Drillisch AG		Wireless Telecommunication Services		1,064		37,920
	Draegerwerk AG & Co. KGAA		Health Care Equipment & Supplies		1,525		65,412


							103,332

	Hong Kong 2.6%
	AIA Group Ltd.		Insurance		15,200		151,323
	IMAX China Holding Inc.		Media		8,900		22,131
a	Samsonite International SA		Textiles, Apparel & Luxury Goods		23,100		74,009


							247,463

	India 3.3%
	Bharti Airtel Ltd.		Wireless Telecommunication Services		8,965		43,107
	HDFC Bank Ltd.		Banks		3,150		105,443
	ICICI Bank Ltd.		Banks		7,364		42,574
	Infosys Ltd.		IT Services		4,055		43,541
	Kotak Mahindra Bank Ltd.		Banks		805		15,507
a	MakeMyTrip Ltd.		Internet & Direct Marketing Retail		1,225		33,810
	UltraTech Cement Ltd.		Construction Materials		554		31,975


							315,957

	Indonesia 0.7%
	Bank Central Asia Tbk PT		Banks		34,800		67,816

	Ireland 1.2%
	Glanbia PLC		Food Products		6,036		118,200

	Italy 3.5%
	Banca Generali SpA		Capital Markets		4,081		101,636
	FinecoBank Banca Fineco SpA		Banks		10,759		141,647
	Prysmian SpA		Electrical Equipment		4,470		84,648

						327,931

	Japan 13.9%
	Astellas Pharma Inc.		Pharmaceuticals		2,200		32,965
	Bridgestone Corp.		Auto Components		800		30,833
	Daikin Industries Ltd.		Building Products		800		93,743
	Denso Corp.		Auto Components		2,200		85,806
	FUJIFILM Holdings Corp.		Technology Hardware, Storage & Peripherals		800		36,384
	Honda Motor Co. Ltd.		Automobiles		3,900		105,529
	JXTG Holdings Inc.		Oil, Gas & Consumable Fuels		20,100		91,979
	Mitsubishi Electric Corp.		Electrical Equipment		7,000		89,962
	Mitsubishi UFJ Financial Group Inc.		Banks		14,000		69,567
	Murata Manufacturing Co. Ltd.		Electronic Equipment, Instruments & Components		1,200		59,759
	Nidec Corp.		Electrical Equipment		800		101,369
	Otsuka Holdings Co. Ltd.		Pharmaceuticals		800		31,433
	Panasonic Corp.		Household Durables		1,400		12,069
	Pigeon Corp.		Household Products		1,100		44,970
	SCSK Corp.		IT Services		800		35,669
	SoftBank Group Corp.		Wireless Telecommunication Services		1,200		116,493
	Sony Corp.		Household Durables		1,100		46,163
	Sumitomo Chemical Co. Ltd.		Chemicals		14,900		69,327
	Sumitomo Electric Industries Ltd.		Auto Components		3,200		42,456
	Suntory Beverage & Food Ltd.		Beverages		500		23,490
	TheDai-ichi Life Holdings Inc.		Insurance		4,900		68,087



franklintempleton.com	Annual Report	25

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin Liberty International Opportunities ETF(continued)



		Industry			Shares/Unit		Value
	Common Stocks (continued)
	Japan (continued)
	Toyota Motor Corp.		Automobiles			500	$	29,304


								1,317,357

	Mexico 1.2%
	America Movil SAB de CV, L		Wireless Telecommunication Services			70,000		50,089
	Fomento Economico Mexicano SAB de CV		Beverages			6,650		61,418


								111,507

	Netherlands 2.4%
	ASML Holding NV		Semiconductors & Semiconductor Equipment			581		109,077
	ASR Nederland NV		Insurance			2,736		113,976


								223,053

	Norway 2.0%
a	Atea ASA		IT Services			5,215		75,818
	Sbanken ASA		Banks			13,020		118,383


								194,201

	Philippines 0.6%
	BDO Unibank Inc.		Banks			11,730		29,889
	Security Bank Corp.		Banks			8,680		28,597


								58,486

	Portugal 1.0%
	Corticeira Amorim SGPS SA		Paper & Forest Products			7,654		91,443

	Russia 1.0%
	Gazprom PJSC		Oil, Gas & Consumable Fuels			20,720		47,185
a	Yandex NV, A		Interactive Media & Services			1,400		48,076


								95,261

	Singapore 1.0%
	DBS Group Holdings Ltd.		Banks			4,900		91,271

	South Africa 1.6%
a	MultiChoice Group Ltd.		Media			560		4,687
	Naspers Ltd., N		Internet & Direct Marketing Retail			560		129,392
	Redefine Properties Ltd.		Equity Real Estate Investment Trusts (REITs	)		21,308		14,332


								148,411

	South Korea 2.6%
	Lotte Chemical Corp.		Chemicals			298		76,265
	Naver Corp.		Interactive Media & Services			578		63,142
	Samsung Electronics Co. Ltd.		Technology Hardware, Storage & Peripherals			2,800		110,140


								249,547

	Spain 5.4%
	Applus Services SA		Professional Services			8,866		105,923
	Cia de Distribucion Integral Logista Holdings SA		Air Freight & Logistics			4,961		116,980
	Ebro Foods SA		Food Products			4,691		100,395
	Merlin Properties Socimi SA		Equity Real Estate Investment Trusts (REITs	)		9,280		121,550
	Tecnicas Reunidas SA		Energy Equipment & Services			2,472		69,586


								514,434

	Sweden 0.8%
	Dometic Group AB		Auto Components			10,073		79,332

	Switzerland 5.0%
	Ferguson PLC		Trading Companies & Distributors			796		50,658
	Novartis AG		Pharmaceuticals			2,202		211,776



26	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin Liberty International Opportunities ETF(continued)



		Industry			Shares/Unit		Value
	Common Stocks (continued)
	Switzerland (continued)
	Roche Holding AG		Pharmaceuticals			754	$	207,712


								470,146

	Taiwan 2.5%
	Ennoconn Corp.		Technology Hardware, Storage & Peripherals			4,000		34,522
	Taiwan Semiconductor Manufacturing Co. Ltd.		Semiconductors & Semiconductor Equipment			25,000		199,137


								233,659

	Thailand 1.3%
	Kasikornbank PCL, fgn.		Banks			5,000		29,620
	Minor International PCL, fgn.		Hotels, Restaurants & Leisure			38,500		46,707
	The Siam Cement PCL, fgn.		Construction Materials			3,300		49,706


								126,033

	United Arab Emirates 0.8%
	Emirates NBD PJSC		Banks			27,076		74,820

	United Kingdom 12.1%
	Associated British Foods PLC		Food Products			2,004		63,690
	AstraZeneca PLC		Pharmaceuticals			910		72,747
	Bodycote PLC		Machinery			5,871		62,961
	BP PLC		Oil, Gas & Consumable Fuels			10,759		78,299
	British American Tobacco PLC		Tobacco			1,234		51,358
	Bunzl PLC		Trading Companies & Distributors			2,017		66,547
	Close Brothers Group PLC		Capital Markets			3,137		59,475
	Derwent London PLC		Equity Real Estate Investment Trusts (REITs	)		1,628		68,372
	DS Smith PLC		Containers & Packaging			13,231		57,911
	Howden Joinery Group PLC		Trading Companies & Distributors			11,593		73,311
b	Ibstock PLC, Reg S		Construction Materials			18,347		57,329
	Imperial Brands PLC		Tobacco			1,907		65,217
	National Grid PLC		Multi-Utilities			4,328		47,982
	Prudential PLC		Insurance			2,385		47,782
	Reckitt Benckiser Group PLC		Household Products			570		47,402
	RELX PLC		Professional Services			2,718		58,137
	Restore PLC		Commercial Services & Supplies			7,424		33,375
	Smith & Nephew PLC		Health Care Equipment & Supplies			3,010		59,735
	Unite Group PLC		Equity Real Estate Investment Trusts (REITs	)		6,562		78,452


								1,150,082

	Total Common Stocks (Cost $9,497,202)							9,380,336

	Preferred Stocks 0.8%
	Brazil 0.8%
a	Azul SA, pfd.		Airlines			1,000		9,834
c	Banco Bradesco SA, 2.673%, pfd.		Banks			2,650		29,239
c	Itau Unibanco Holding SA, 4.179%, pfd.		Banks			2,000		17,694
c	Petroleo Brasileiro SA, 3.207%, pfd.		Oil, Gas & Consumable Fuels			2,900		20,910

	Total Preferred Stocks (Cost $62,810)							77,677

	Total Investments (Cost $9,560,012) 99.8%							9,458,013
	Other Assets, less Liabilities 0.2%							22,059

	Net Assets 100.0%						$	9,480,072



franklintempleton.com	Annual Report	27

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin Liberty International Opportunities ETF(continued)

See Abbreviations on page 47.

^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. This security has been deemed liquid under guidelines approved by the Fund’s Board of Trustees. At March 31, 2019, the value of this security was $57,329, representing 0.6% of net assets.

^cVariable rate security. The rate shown represents the yield at period end.



28	Annual Report \| The accompanying notes are an integral part of these financial statements.	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin Liberty Investment Grade Corporate ETF



	Year Ended March 31,

	2019			2018			2017^a

Per share operating performance (for a share outstanding throughout the year)

Net asset value, beginning of year	$	23.97		$	24.21		$	25.00


Income from investment operations:^b

Net investment income^c		0.82			0.80			0.32

Net realized and unrealized gains (losses)		0.21			(0.22	)		(0.78	)


Total from investment operations		1.03			0.58			(0.46	)


Less distributions from net investment income		(0.91	)		(0.82	)		(0.33	)


Net asset value, end of year	$	24.09		$	23.97		$	24.21


Total return^d		4.46%			2.38%			(1.83)%

Ratios to average net assets^e

Expenses before waiver and payments by affiliates		1.07%			1.04%			1.06%

Expenses net of waiver and payments by affiliates		0.35%			0.37%			0.40%

Net investment income		3.49%			3.27%			2.76%

Supplemental data

Net assets, end of year (000’s)		$18,065			$39,554			$53,268

Portfolio turnover rate^f		22.02%			63.14%			17.85%

^aFor the period October 3, 2016 (commencement of operations) to March 31, 2017.

^cBased on average daily shares outstanding.

^eRatios are annualized for periods less than one year.

^fPortfolio turnover rate excludes the value of portfolio securities received or delivered as a result of processing capital share transactions in Creation Units, if any.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	29

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2019

Franklin Liberty Investment Grade Corporate ETF



		Country		Principal Amount*		Value
	Corporate Bonds & Notes 93.7%
	Air Freight & Logistics 1.1%
	FedEx Corp., senior bond, 4.75%, 11/15/45		United States		200,000	$	198,543

	Automobiles 1.1%
	Ford Motor Credit Co. LLC, senior note, 2.343%, 11/02/20		United States		200,000		195,631

	Banks 21.1%
a	ANZ New Zealand International Ltd. of London, senior note, 144A, 2.875%, 1/25/22		New Zealand		200,000		199,414
	Bank of America Corp., sub. bond, 4.183%, 11/25/27		United States		450,000		457,357
a	BPCE SA, sub note, 144A, 5.15%, 7/21/24		France		200,000		208,826
	Citigroup Inc., sub. note, 4.05%, 7/30/22		United States		345,000		355,454
a	Commonwealth Bank of Australia, sub. note, 144A, 4.50%, 12/09/25		Australia		390,000		400,458
b	HSBC Holdings PLC, junior sub. bond, 6.25% to 3/23/23, FRN thereafter, Perpetual		United Kingdom		200,000		199,867
	HSBC USA Inc., sub. note, 5.00%, 9/27/20		United States		344,000		354,032
	JPMorgan Chase & Co., sub. note, 3.375%, 5/01/23		United States		425,000		429,599
	Santander UK Group Holdings PLC, senior note, 2.875%, 8/05/21		United Kingdom		230,000		228,293
a	Standard Chartered PLC, senior note, 144A, 3.885% to 3/15/23, FRN thereafter, 3/15/24		United Kingdom		325,000		326,238
	Sumitomo Mitsui Banking Corp., senior note, 2.514%, 1/17/20		Japan		450,000		449,415
	Wells Fargo & Co., sub. bond, 4.75%, 12/03/46		United States		185,000		194,416

							3,803,369

	Beverages 1.9%
a	Anheuser-Busch Cos. LLC/Anheuser-Busch InBev Worldwide Inc., senior bond, 144A, 4.70%, 2/01/36		United States		340,000		340,166

	Biotechnology 1.1%
	Biogen Inc., senior bond, 5.20%, 9/15/45		United States		185,000		195,622

	Capital Markets 4.9%
	Morgan Stanley, sub. bond, 3.95%, 4/23/27		United States		405,000		405,266
	The Goldman Sachs Group Inc., sub. note, 4.25%, 10/21/25		United States		475,000		486,674

							891,940

	Diversified Financial Services 3.8%
	AerCap Ireland Capital Ltd./AerCap Global Aviation Trust, senior note, 5.00%, 10/01/21		Netherlands		215,000		223,174
a	Ashtead Capital Inc., second lien, 144A, 4.125%, 8/15/25		United Kingdom		220,000		217,250
	GE Capital International Funding Co., senior bond, 4.418%, 11/15/35		United States		275,000		254,641

							695,065

	Diversified Telecommunication Services 3.5%
	Telefonica Emisiones SA, senior bond, 7.045%, 6/20/36		Spain		185,000		225,418
	Verizon Communications Inc., senior bond, 5.50%, 3/16/47		United States		355,000		416,061

							641,479

	Electric Utilities 4.0%
	Duke Energy Corp., senior bond, 4.80%, 12/15/45		United States		165,000		178,396
	Georgia Power Co., senior bond, 4.30%, 3/15/42		United States		245,000		242,835
a	Saudi Electricity Global Sukuk Co. 2, senior bond, 144A, 5.06%, 4/08/43		Cayman Islands		300,000		304,601

							725,832

	Entertainment 3.1%
	Time Warner Inc., senior bond, 3.60%, 7/15/25		United States		225,000		224,649
a	TWDC Holdco 613 Corp., senior bond, 144A, 6.40%, 12/15/35		United States		250,000		332,058

							556,707

	Equity Real Estate Investment Trusts (REITs) 1.3%
	Realty Income Corp., senior bond, 3.00%, 1/15/27		United States		250,000		243,219



30	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin Liberty Investment Grade Corporate ETF(continued)



		Country		Principal Amount*		Value
	Corporate Bonds & Notes (continued)
	Food & Staples Retailing 3.7%
	The Kroger Co., senior note, 4.00%, 2/01/24		United States		225,000	$	232,519
	Walgreens Boots Alliance Inc., senior bond, 4.80%, 11/18/44		United States		185,000		177,582
	Walmart Inc., senior note, 3.40%, 6/26/23		United States		250,000		257,551

							667,652

	Food Products 1.0%
	Kraft Heinz Foods Co., senior bond, 5.20%, 7/15/45		United States		185,000		178,824

	Health Care Providers & Services 2.6%
	Anthem Inc., senior note, 4.101%, 3/01/28		United States		285,000		293,527
	HCA Inc., senior secured note, 6.50%, 2/15/20		United States		165,000		169,831

							463,358

	Household Products 1.7%
	Kimberly-Clark Corp., senior bond, 3.95%, 11/01/28		United States		290,000		310,741

	Insurance 2.5%
	MetLife Inc., junior sub. bond, 6.40%, 12/15/66		United States		210,000		225,526
	Prudential Financial Inc., junior sub. bond, 5.20% to 3/15/24, FRN thereafter, 3/15/44		United States		230,000		232,829

							458,355

	Internet & Direct Marketing Retail 3.4%
	Alibaba Group Holding Ltd., senior note, 2.50%, 11/28/19		China		615,000		614,386

	Machinery 1.0%
	CNH Industrial NV, senior note, 4.50%, 8/15/23		Netherlands		175,000		182,000

	Media 3.4%
	Charter Communications Operating LLC/Charter Communications Operating Capital Corp., senior secured note, first lien, 4.464%, 7/23/22		United States		170,000		175,959
	NBCUniversal Media LLC, senior note, 4.375%, 4/01/21		United States		430,000		444,366

							620,325

	Metals & Mining 1.3%
a	Glencore Funding LLC, senior note, 144A, 4.125%, 5/30/23		Switzerland		225,000		229,305

	Multiline Retail 1.4%
	Dollar Tree Inc., senior note, 3.70%, 5/15/23		United States		150,000		152,201
	Kohl’s Corp., senior bond, 5.55%, 7/17/45		United States		100,000		96,975

							249,176

	Oil, Gas & Consumable Fuels 12.5%
	Anadarko Petroleum Corp., senior note, 6.20%, 3/15/40		United States		195,000		219,230
	Chevron Corp., senior note, 2.954%, 5/16/26		United States		545,000		549,458
	Ecopetrol SA, senior bond, 5.875%, 5/28/45		Colombia		135,000		140,400
	Energy Transfer Operating LP, senior bond, 6.50%, 2/01/42		United States		150,000		166,895
	Enterprise Products Operating LLC, senior bond, 5.10%, 2/15/45		United States		270,000		296,109
	Sabine Pass Liquefaction LLC, senior secured bond, first lien, 4.20%, 3/15/28		United States		185,000		186,464
	Shell International Finance BV, senior note, 2.125%, 5/11/20		Netherlands		500,000		497,547
	The Williams Cos. Inc., senior note, 4.125%, 11/15/20		United States		200,000		203,236

							2,259,339

	Road & Rail 1.3%
	Burlington Northern Santa Fe LLC, senior bond, 3.25%, 6/15/27		United States		235,000		237,934

	Software 2.7%
	Microsoft Corp., senior bond, 4.45%, 11/03/45		United States		430,000		488,082

	Specialty Retail 2.8%
a	Michael Kors USA Inc., senior note, 144A, 4.00%, 11/01/24		United States		190,000		183,355
	The Home Depot Inc., senior bond, 3.00%, 4/01/26		United States		325,000		326,747

							510,102



franklintempleton.com	Annual Report	31

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin Liberty Investment Grade Corporate ETF(continued)



		Country		Principal Amount*		Value
	Corporate Bonds & Notes (continued)
	Technology Hardware, Storage & Peripherals 2.0%
a	Dell International LLC/EMC Corp., senior secured note, first lien, 144A, 4.42%, 6/15/21		United States		345,000	$	354,081

	Textiles, Apparel & Luxury Goods 1.3%
	NIKE Inc., senior bond, 3.875%, 11/01/45		United States		225,000		230,113

	Tobacco 1.2%
	Reynolds American Inc., senior bond, 5.85%, 8/15/45		United States		205,000		210,756

	Transportation Infrastructure 1.0%
a	Mexico City Airport Trust, secured bond, 144A, 5.50%, 7/31/47		Mexico		200,000		185,000

	Total Corporate Bonds & Notes (Cost $16,790,055)						16,937,102

	U.S. Government & Agency Securities 4.0%
	U.S. Treasury Bond, 2.75%, 11/15/47		United States		50,000		49,291
	U.S. Treasury Note, 2.875%, 8/15/28				350,000		363,706
	2.625%, 12/31/23				300,000		305,145

	Total U.S. Government & Agency Securities (Cost $703,748)						718,142

	Total Investments before Short Term Investments (Cost $17,493,803)						17,655,244

	Short Term Investments 1.7%
	U.S. Government & Agency Securities (Cost $305,000) 1.7%
c	FHLB, 4/01/19		United States		305,000		305,000

	Total Investments (Cost $17,798,803) 99.4%						17,960,244
	Other Assets, less Liabilities 0.6%						104,709

	Net Assets 100.0%					$	18,064,953

See Abbreviations on page 47.

*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. These securities have been deemed liquid under guidelines approved by the Fund’s Board of Trustees. At March 31, 2019, the aggregate value of these securities was $3,280,752, representing 18.2% of net assets.

^bPerpetual security with no stated maturity date.

^cThe security was issued on a discount basis with no stated coupon rate.



32	Annual Report \| The accompanying notes are an integral part of these financial statements.	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin Liberty U.S. Low Volatility ETF



	Year Ended March 31,

	2019			2018			2017^a

Per share operating performance (for a share outstanding throughout the year)

Net asset value, beginning of year	$	30.03		$	26.97		$	25.05


Income from investment operations:^b

Net investment income^c		0.52			0.45			0.23

Net realized and unrealized gains (losses)		3.88			3.06			1.87


Total from investment operations		4.40			3.51			2.10


Less distributions from:

Net investment income		(0.47	)		(0.45	)		(0.18	)

Net realized gains		(0.35	)		—			—


Total distributions		(0.82	)		(0.45	)		(0.18	)


Net asset value, end of year	$	33.61		$	30.03		$	26.97


Total return^d		14.98%			13.08%			8.40%

Ratios to average net assets^e

Expenses before waiver and payments by affiliates		1.12%			2.11%			2.96%

Expenses net of waiver and payments by affiliates		0.50%			0.50%			0.50%

Net investment income		1.64%			1.56%			1.69%

Supplemental data

Net assets, end of year (000’s)		$13,443			$ 6,005			$ 5,393

Portfolio turnover rate^f		46.90%			65.68%			12.55%

^aFor the period September 20, 2016 (commencement of operations) to March 31, 2017.

^cBased on average daily shares outstanding.

^eRatios are annualized for periods less than one year.

^fPortfolio turnover rate excludes the value of portfolio securities received or delivered as a result of processing capital share transactions in Creation Units, if any.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	33

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2019

Franklin Liberty U.S. Low Volatility ETF



		Shares		Value
	Common Stocks 99.6%
	Communication Services 7.4%
a	Charter Communications Inc., A		533	$	184,903
	Comcast Corp., A		5,023		200,820
	TELUS Corp.		5,505		203,905
	The Walt Disney Co.		1,816		201,630
	Verizon Communications Inc.		3,475		205,477

					996,735

	Consumer Discretionary 10.2%
	Lowe’s Cos. Inc.		1,622		177,560
	Marriott International Inc., A		1,334		166,870
	McDonald’s Corp.		916		173,948
	NIKE Inc., B		1,914		161,178
a	O’Reilly Automotive Inc.		448		173,959
	Ross Stores Inc.		1,830		170,373
	The Home Depot Inc.		911		174,812
	Yum! Brands Inc.		1,691		168,779

					1,367,479

	Consumer Staples 6.8%
	Mondelez International Inc., A		3,728		186,102
	PepsiCo Inc.		1,523		186,644
	The Coca-Cola Co.		3,947		184,956
	The Procter & Gamble Co.		1,765		183,648
	Walmart Inc.		1,801		175,651

					917,001

	Energy 5.1%
	Chevron Corp.		1,095		134,882
	EOG Resources Inc.		1,477		140,581
	Exxon Mobil Corp.		1,696		137,037
	Occidental Petroleum Corp.		2,073		137,232
	Schlumberger Ltd.		3,172		138,204

					687,936

	Financials 13.2%
	Aflac Inc.		2,978		148,900
	Arthur J. Gallagher & Co.		1,883		147,062
	BB&T Corp.		3,015		140,288
	Chubb Ltd.		1,099		153,948
	Intercontinental Exchange Inc.		2,009		152,965
	JPMorgan Chase & Co.		1,397		141,418
	S&P Global Inc.		717		150,964
	The Progressive Corp.		2,060		148,506
	The Travelers Cos. Inc.		1,122		153,894
	U.S. Bancorp		2,873		138,450
	W.R. Berkley Corp.		1,796		152,157
	Wells Fargo & Co.		2,902		140,225

					1,768,777

	Health Care 14.3%
	Abbott Laboratories		2,182		174,429
	Baxter International Inc.		2,249		182,866
	Becton Dickinson and Co.		704		175,810
	Danaher Corp.		1,343		177,303
	Johnson & Johnson		1,260		176,135
	Medtronic PLC		1,883		171,504
	Merck & Co. Inc.		2,130		177,152
	Pfizer Inc.		4,125		175,189
	Quest Diagnostics Inc.		1,952		175,524



34	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin Liberty U.S. Low Volatility ETF(continued)



		Shares		Value
	Common Stocks (continued)
	Health Care (continued)
	Stryker Corp.		889	$	175,595
	UnitedHealth Group Inc.		678		167,642

					1,929,149

	Industrials 9.8%
	Fortive Corp.		1,732		145,297
	General Dynamics Corp.		842		142,534
	Honeywell International Inc.		915		145,412
	Lockheed Martin Corp.		485		145,578
	Raytheon Co.		798		145,300
	Republic Services Inc.		1,825		146,693
	Roper Technologies Inc.		433		148,073
	United Technologies Corp.		1,137		146,548
	Verisk Analytics Inc.		1,116		148,428

					1,313,863

	Information Technology 22.8%
	Accenture PLC, A		1,138		200,311
a	Alphabet Inc., A		166		195,364
	Amphenol Corp., A		1,976		186,613
	Analog Devices Inc.		1,720		181,064
	Apple Inc.		1,014		192,609
	Automatic Data Processing Inc.		1,223		195,362
	Cisco Systems Inc.		3,548		191,557
a	Fiserv Inc.		2,236		197,394
	Intuit Inc.		738		192,921
	Mastercard Inc., A		818		192,598
	Microsoft Corp.		1,608		189,648
	Oracle Corp.		3,500		187,985
a	Synopsys Inc.		1,732		199,440
	Texas Instruments Inc.		1,719		182,334
	Total System Services Inc.		2,011		191,065
	Visa Inc., A		1,223		191,020

					3,067,285

	Materials 2.9%
	Air Products and Chemicals Inc.		691		131,953
	Ecolab Inc.		730		128,874
	Linde PLC		736		129,485

					390,312

	Real Estate 3.9%
	Alexandria Real Estate Equities Inc.		906		129,160
	American Tower Corp.		666		131,242
	Equity Residential		1,722		129,701
	UDR Inc.		2,842		129,197

					519,300

	Utilities 3.2%
	Consolidated Edison Inc.		1,271		107,794
	Dominion Energy Inc.		1,417		108,627
	Duke Energy Corp.		1,195		107,550
	Xcel Energy Inc.		1,914		107,586

					431,557

	Total Investments (Cost $11,260,389) 99.6%				13,389,394
	Other Assets, less Liabilities 0.4%				53,701

	Net Assets 100.0%			$	13,443,095

See Abbreviations on page 47.

^aNon-income producing.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	35

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Assets and Liabilities

March 31, 2019



	Franklin Liberty International Opportunities ETF			Franklin Liberty Investment Grade Corporate ETF			Franklin Liberty U.S. Low Volatility ETF
Assets:
Investments in securities:
Cost – Unaffiliated issuers	$	9,560,012		$	17,798,803		$	11,260,389

Value – Unaffiliated issuers	$	9,458,013		$	17,960,244		$	13,389,394
Cash		65,739			83,138			91,376
Foreign currency, at value (cost $4,882, $— and $—, respectively)		4,879			—			—
Receivables:
Dividends and interest		44,245			182,540			20,440
Affiliates		7,714			—			—

Total assets		9,580,590			18,225,922			13,501,210

Liabilities:
Payables:
Management fees		—			21,552			5,962
Transfer agent fees		11,700			11,700			11,700
Trustees’ fees and expenses		149			172			32
Distributions to shareholders		—			54,301			—
Custodian fees		17,510			15,473			816
Professional fees		37,724			33,955			23,039
Registration and filing fees		7,699			7,439			7,616
Pricing fees		13,543			2,000			833
Accrued expenses and other liabilities		12,193			14,377			8,117

Total liabilities		100,518			160,969			58,115

Net assets, at value	$	9,480,072		$	18,064,953		$	13,443,095

Net assets consist of:
Paid-in capital	$	9,530,691		$	18,874,499		$	11,356,248
Total distributable earnings (loss)		(50,619	)		(809,546	)		2,086,847

Net assets, at value	$	9,480,072		$	18,064,953		$	13,443,095

Shares outstanding		350,000			750,000			400,000

Net asset value per share	$	27.09		$	24.09		$	33.61



36	Annual Report \| The accompanying notes are an integral part of these financial statements.	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Operations

for the year ended March 31, 2019



	Franklin Liberty International Opportunities ETF			Franklin Liberty Investment Grade Corporate ETF			Franklin Liberty U.S. Low Volatility ETF
Investment income:
Dividends: (net of foreign taxes)^a
Unaffiliated issuers:
Paid in cash	$	238,375		$	—		$	245,752
Non-cash dividends		14,290			—			—
Interest:
Unaffiliated issuers		—			1,035,646			268

Total investment income		252,665			1,035,646			246,020

Expenses:
Management fees (Note 3a)		60,953			168,616			57,355
Transfer agent fees		15,600			15,600			15,600
Custodian fees		23,918			20,823			1,139
Reports to shareholders		7,029			2,479			5,170
Registration and filing fees		7,512			7,481			7,621
Professional fees		70,713			45,753			26,630
Trustees’ fees and expenses		1,314			2,416			1,231
Pricing fees		36,150			12,060			5,019
Other		14,328			14,471			9,251

Total expenses		237,517			289,699			129,016
Expenses waived/paid by affiliates (Note 3c)		(176,834	)		(195,274	)		(71,661	)

Net expenses		60,683			94,425			57,355

Net investment income		191,982			941,221			188,665

Realized and unrealized gains (losses):
Net realized gain (loss) from:
Investments:
Unaffiliated issuers		(28,172	)		(722,823	)		(53,892	)
In-kind redemptions		130,023			—			304,968
Foreign currency transactions		(2,035	)		—			—

Net realized gain (loss)		99,816			(722,823	)		251,076

Net change in unrealized appreciation (depreciation) on:
Investments:
Unaffiliated issuers		(924,299	)		370,103			1,276,591
Translation of other assets and liabilities denominated in foreign currencies		(155	)		—			9

Net change in unrealized appreciation (depreciation)		(924,454	)		370,103			1,276,600

Net realized and unrealized gain (loss)		(824,638	)		(352,720	)		1,527,676

Net increase (decrease) in net assets resulting from operations	$	(632,656	)	$	588,501		$	1,716,341


^aForeign taxes withheld on dividends		$	27,931			$	—			$	285



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	37

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Changes in Net Assets



	Franklin Liberty International Opportunities ETF						Franklin Liberty Investment Grade Corporate ETF

	Year Ended March 31, 2019			Year Ended March 31, 2018			Year Ended March 31, 2019			Year Ended March 31, 2018
Increase (decrease) in net assets:
Operations:
Net investment income	$	191,982		$	90,666		$	941,221		$	1,488,244
Net realized gain (loss)		99,816			170,722			(722,823	)		30,394
Net change in unrealized appreciation (depreciation)		(924,454	)		627,771			370,103			(129,279	)

Net increase (decrease) in net assets resulting from operations		(632,656	)		889,159			588,501			1,389,359

Distributions to shareholders (Note 1d)		(168,938	)		(227,066	)		(1,010,692	)		(1,520,545	)

Capital share transactions: (Note 2)		4,503,793			—			(21,066,405	)		(13,583,504	)

Net increase (decrease) in net assets		3,702,199			662,093			(21,488,596	)		(13,714,690	)
Net assets:
Beginning of year		5,777,873			5,115,780			39,553,549			53,268,239

End of year (Note 1d)	$	9,480,072		$	5,777,873		$	18,064,953		$	39,553,549



38	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 Liberty U.S. Low Volatility ETF

	Year Ended March 31, 2019			Year Ended March 31, 2018
Increase (decrease) in net assets:
Operations:
Net investment income	$	188,665		$	89,984
Net realized gain (loss)		251,076			135,509
Net change in unrealized appreciation (depreciation)		1,276,600			476,798

Net increase (decrease) in net assets resulting from operations		1,716,341			702,291

Distributions to shareholders (Note 1d)		(321,023	)		(90,569	)

Capital share transactions: (Note 2)		6,042,757			—

Net increase (decrease) in net assets		7,438,075			611,722
Net assets:
Beginning of year		6,005,020			5,393,298

End of year (Note 1d)	$	13,443,095		$	6,005,020



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	39

FRANKLIN TEMPLETON ETF TRUST

Notes to Financial Statements

1. Organization and Significant Accounting Policies

Franklin Templeton ETF Trust (Trust) is registered under the Investment Company Act of 1940 (1940 Act) as anopen-end management investment company, consisting of thirty-eight separate funds, three of which are included in this report (Funds) and applies the specialized accounting and reporting guidance in U.S. Generally Accepted Accounting Principles (U.S. GAAP). Each of the Funds are an exchange traded fund (ETF) and are actively managed, thus they are not designed to track an index.

The following summarizes the Funds’ significant accounting policies.

a. Financial Instrument Valuation

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, whichever is earlier. 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.

Debt securities generally trade in theover-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 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.



40	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS

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 anon-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

c. Income and Deferred Taxes

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.

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 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 theex-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 theex-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



franklintempleton.com	Annual Report	41

FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS

1. Organization and Significant Accounting Policies(continued)

d. Security Transactions, Investment Income,

Expenses and Distributions(continued)

have no impact on net assets or the results of operations. Temporary differences are not reclassified, as they may reverse in subsequent periods.

Effective during the current reporting period, it is no longer required to present certain line items on the Statements of

Changes in Net Assets. The below prior period amounts affected by this change are shown as they were in the prior year Statements of Changes in Net Assets.

For the year ended March 31, 2018, distributions to shareholders were as follows:



	Franklin Liberty International Opportunities ETF			Franklin Liberty Investment Grade Corporate ETF			Franklin Liberty U.S. Low Volatility ETF
Distributions from net investment income:	$	(147,219	)	$	(1,520,545	)	$	(90,569	)
Distributions from net realized gains:	$	(79,847	)	$	—		$	—

For the year ended March 31, 2018, undistributed net investment income/distribution in excess of net investment income included in net asset were as follows:



Funds	Undistributed net investment income		Distribution in excess of net investment income
Franklin Liberty International Opportunities ETF	$	—	$	(18,841	)
Franklin Liberty Investment Grade Corporate ETF		12,565		—
Franklin Liberty U.S. Low Volatility ETF		9,716		—

e. Accounting Estimates

f. Guarantees and Indemnifications

2. Shares of Beneficial Interest

Shares of the Funds are issued and redeemed at their respective NAV only in aggregations of 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).



42	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS

At March 31, 2019, there were an unlimited number of shares authorized (without par value). Transactions in the Funds’ shares were as follows:



	Franklin Liberty International Opportunities ETF

	Year Ended March 31, 2019						Year Ended March 31, 2018

	Shares			Amount			Shares			Amount
Shares sold		200,000		$	5,852,625			—		$	—
Shares redeemed		(50,000	)		(1,348,832	)		—			—

Net increase (decrease)		150,000		$	4,503,793			—		$	—


	Franklin Liberty Investment Grade Corporate ETF

	Year Ended March 31, 2019						Year Ended March 31, 2018

	Shares			Amount			Shares			Amount
Shares sold		50,000		$	1,200,485			400,000		$	9,845,321
Shares redeemed		(950,000	)		(22,266,890	)		(950,000	)		(23,428,825	)

Net increase (decrease)		(900,000	)	$	(21,066,405	)		(550,000	)	$	(13,583,504	)


	Franklin Liberty U.S. Low Volatility ETF

	Year Ended March 31, 2019						Year Ended March 31, 2018

	Shares			Amount			Shares			Amount
Shares sold		250,000		$	7,630,864			—		$	—
Shares redeemed		(50,000	)		(1,588,107	)		—			—

Net increase (decrease)		200,000		$	6,042,757			—		$	—



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FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS

3. Transactions with Affiliates



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
Templeton Asset Management Ltd. (TAML)		Investment manager
Franklin Templeton Services, LLC (FT Services)		Administrative manager
Franklin Templeton Distributors, Inc. (Distributors)		Principal underwriter

a. Management Fees

Franklin Liberty International Opportunities ETF and Franklin Liberty U.S. Low Volatility ETF pay an investment management fee to Advisers of 0.600% and 0.500%, respectively, per year of the average daily net assets of each of the Funds.

Franklin Liberty Investment Grade Corporate ETF pays an investment management fee to Advisers based on the average daily net assets of the fund as follows:



Annualized Fee Rate		Net Assets
0.625%		Up to and including $100 million
0.500%		Over $100 million, up to and including $250 million
0.450%		Over $250 million, up to and including $7.5 billion
0.440%		Over $7.5 billion, up to and including $10 billion
0.430%		Over $10 billion, up to and including $12.5 billion
0.420%		Over $12.5 billion, up to and including $15 billion
0.400%		Over $15 billion, up to and including $17.5 billion
0.380%		Over $17.5 billion, up to and including $20 billion
0.360%		Over $20 billion, up to and including $35 billion
0.355%		Over $35 billion, up to and including $50 billion
0.350%		In excess of $50 billion

For the year ended March 31, 2019, the gross effective investment management fee rate was 0.625% of the Franklin Liberty Investment Grade Corporate ETF’s average daily net assets.

Under a subadvisory agreement, FTI Brasil, FTIML, FTIME, FTIC and TAML, affiliates of Advisers, provide subadvisory services to Franklin Liberty International Opportunities ETF and FT Institutional, an affiliate of Advisers, provides subadvisory services to Franklin Liberty Investment Grade Corporate ETF. The subadvisory fee is paid by Advisers based on each Fund’s average daily net assets, and is not an additional expense of the Funds. Prior to March 1, 2019, under a subadvisory agreement, FT Korea, an affiliate of Advisers, provided subadvisory services to Franklin Liberty International Opportunities ETF.



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NOTES TO FINANCIAL STATEMENTS

b. Administrative Fees

Under an agreement with Advisers, FT Services provides administrative services to the Funds. The fee is paid by Advisers based on the Funds’ average daily net assets, and is not an additional expense of the Funds.

c. Waiver and Expense Reimbursements

Advisers has contractually agreed in advance to waive or limit its fees and to assume as its own expense certain expenses otherwise payable by Franklin Liberty International Opportunities ETF, Franklin Liberty Investment Grade Corporate ETF, and Franklin Liberty U.S. Low Volatility ETF so that the expenses (including acquired fund fees and expenses) of the Funds do not exceed 0.60%, 0.35%, and 0.50%, respectively, based on the average net assets (other than certainnon-routine expenses or costs, including those relating to litigation, indemnification, reorganizations, and liquidations) until July 31, 2019. Total expenses waived or paid are not subject to recapture subsequent to the Funds’ fiscal year end.

d. Other Affiliated Transactions

At March 31, 2019, the shares of Franklin Liberty Investment Grade Corporate ETF were owned by the following investment companies:



Fund	Shares		Percentage of Outstanding Shares^a
Franklin Total Return Fund		400,000		53.3%

^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, 2019, the capital loss carryforwards were as follows:



	Franklin Liberty International Opportunities ETF		Franklin Liberty Investment Grade Corporate ETF		Franklin Liberty U.S. Low Volatility ETF
Capital loss carryforwards not subject to expiration:
Short term	$	44,687	$	378,345	$	44,747
Long term		—		531,347		—

Total capital loss carryforwards	$	44,687	$	909,692	$	44,747

The tax character of distributions paid during the years ended March 31, 2019 and 2018, were as follows:



	Franklin Liberty International Opportunities ETF				Franklin Liberty Investment Grade Corporate ETF				Franklin Liberty U.S. Low Volatility ETF

	2019		2018		2019		2018		2019		2018
Distributions paid from:
Ordinary income	$	134,015	$	227,066	$	1,010,692	$	1,520,545	$	186,923	$	90,569
Long term capital gain		34,923		—		—		—		134,100		—

	$	168,938	$	227,066	$	1,010,692	$	1,520,545	$	321,023	$	90,569



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FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS

4. Income Taxes(continued)

At March 31, 2019, the cost of investments, net unrealized appreciation (depreciation) and undistributed ordinary income for income tax purposes were as follows:



	Franklin Liberty International Opportunities ETF			Franklin Liberty Investment Grade Corporate ETF			Franklin Liberty U.S. Low Volatility ETF
Cost of investments	$	9,568,716		$	17,868,762		$	11,275,769

Unrealized appreciation	$	714,731		$	282,864		$	2,163,818
Unrealized depreciation		(825,434	)		(191,382	)		(50,193	)

Net unrealized appreciation (depreciation)	$	(110,703	)	$	91,482		$	2,113,625

Distributable earnings – undistributed ordinary income	$	104,890		$	62,965		$	17,956

5. Investment Transactions

Purchases and sales of investments (excluding short term securities andin-kind transactions, if any) for the year ended March 31, 2019, were as follows:



	Franklin Liberty International Opportunities ETF		Franklin Liberty Investment Grade Corporate ETF		Franklin Liberty U.S. Low Volatility ETF
Purchases	$	2,566,154	$	5,810,013	$	5,247,342
Sales	$	2,049,721	$	26,359,511	$	5,434,892

In-kind transactions associated with creation and redemptions for the year ended March 31, 2019, were as follows:



	Franklin Liberty International Opportunities ETF		Franklin Liberty Investment Grade Corporate ETF		Franklin Liberty U.S. Low Volatility ETF
Cost of Securities Received	$	5,082,467	$	—	$	7,615,974
Value of Securities Delivered^a	$	1,121,327	$	—	$	1,582,844

^a Realized gains and losses from in-kind redemptions, as shown on the Statement of Operations, are not recognized by the Funds for tax purposes.

6. Concentration of Risk

7. Fair Value Measurements

•

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)



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NOTES TO FINANCIAL STATEMENTS

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 March 31, 2019, in valuing the Funds’ assets and liabilities carried at fair value, is as follows:



	Level 1		Level 2		Level 3		Total

Franklin Liberty International Opportunities ETF

Assets:
Investments in Securities:^a
Equity Investments^b	$	9,458,013	$	—	$	—	$	9,458,013


Franklin Liberty Investment Grade Corporate ETF

Assets:
Investments in Securities:^a
Corporate Bonds & Notes	$	—	$	16,937,102	$	—	$	16,937,102
U.S. Government & Agency Securities		—		718,142		—		718,142
Short-Term Investments		—		305,000		—		305,000

Total Investments in Securities	$	—	$	17,960,244	$	—	$	17,960,244


Franklin Liberty U.S. Low Volatility ETF

Assets:
Investments in Securities:^a
Equity Investments	$	13,389,394	$	—	$	—	$	13,389,394

^aFor detailed categories, see the accompanying Statement of Investments.

^bIncludes common and preferred stocks.

8. New Accounting Pronouncements

In March 2017, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2017-08, Receivables—Nonrefundable Fees and Other Costs (Subtopic310-20): Premium Amortization on Purchased Callable Debt Securities. The amendments in the ASU shorten the amortization period for certain callable debt securities, held at a premium, to be amortized to the earliest call date. The ASU does not require an accounting change for securities held at a discount; which continues to be amortized to maturity. The ASU is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2018. Management has reviewed the requirements and believes the adoption of this ASU will not have a material impact on the financial statements.

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
FHLB		Federal Home Loan Bank
FRN		Floating Rate Note
REIT		Real Estate Investment Trust



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Report of Independent Registered Public Accounting Firm

To the Board of Trustees of Franklin Templeton ETF Trust and Shareholders of Franklin Liberty International Opportunities ETF, Franklin Liberty Investment Grade Corporate ETF, and Franklin Liberty U.S. Low Volatility ETF

Opinions on the Financial Statements

We have audited the accompanying statements of assets and liabilities, including the statements of investments, ofFranklin Liberty International Opportunities ETF, Franklin Liberty Investment Grade Corporate ETF, and Franklin Liberty U.S. Low Volatility ETF (the “Funds”) as ofMarch 31, 2019, the related statements of operations for the year ended March 31, 2019, the statements of changes in net assets for each of the two years in the period ended March 31, 2019, including the related notes, and the financial highlights for each of the periods indicated therein (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of March 31, 2019, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period ended March 31, 2019 and each of the financial highlights for each of the periods indicated therein in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinions

PricewaterhouseCoopers LLP

San Francisco, California

May 20, 2019

We have served as the auditor of one or more investment companies in the Franklin Templeton funds since 1948.



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Tax information (unaudited)

Under Section 852(b)(3)(C) of the Internal Revenue Code, the Funds hereby report the maximum amount allowable but no less than the following amounts as long term capital gain dividends for the fiscal year ended March 31, 2019:



Franklin Liberty International Opportunities ETF		Franklin Liberty U.S. Low Volatility ETF
	$34,923		$134,100

Under Section 871(k)(2)(C) of the Internal Revenue Code, the Funds hereby report the maximum amount allowable but no less than the following amounts as short term capital gain dividends for purposes of the tax imposed under Section 871(a)(1)(A) of the Internal Revenue Code for the fiscal year ended March 31, 2019:



Franklin Liberty International Opportunities ETF		Franklin Liberty U.S. Low Volatility ETF
	$38,058		$6,498

Under Section 854(b)(1)(A) of the Internal Revenue Code, Franklin Liberty U.S. Low Volatility ETF hereby reports 100% of the ordinary income dividends as income qualifying for the dividends received deduction for the fiscal year ended March 31, 2019.



Franklin Liberty International Opportunities ETF		Franklin Liberty U.S. Low Volatility ETF
	$241,394		$231,615

Under Section 871(k)(1)(C) of the Internal Revenue Code, Franklin Liberty Investment Grade Corporate ETF hereby reports the maximum amount allowable but no less than $722,260 as interest related dividends for purposes of the tax imposed under Section 871(a)(1)(A) of the Internal Revenue Code for the fiscal year ended March 31, 2019.

At March 31, 2019, more than 50% of Franklin Liberty International Opportunity ETF’s total assets were invested in securities of foreign issuers. In most instances, foreign taxes were withheld from income paid to the Fund on these investments. The Fund elects to treat foreign taxes paid as allowed under Section 853 of the Internal Revenue Code. This election will allow shareholders of record as of the June 2019 distribution, to treat their proportionate share of foreign taxes paid by the Fund as having been paid directly by them. The shareholder shall consider these amounts as foreign taxes paid in the tax year in which they receive the Fund distribution.



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FRANKLIN TEMPLETON ETF TRUST

Board Members and Officers

Independent Board Members



Name, Year of Birth and Address	Position	Length of Time Served	Number of Portfolios in Fund Complex Overseen by Board Member*	Other Directorships Held During at Least the Past 5 Years

Rohit Bhagat (1964) One Franklin Parkway San Mateo, CA 94403-1906	Lead Independent Trustee	Since 2016	39	Zentific Investment Management (hedge fund) (2015-present), Axis Bank (2013-present), AssetMark Financial Holdings, Inc. (investment solutions) (2018-present) and CapFloat Financial Services Pvt., Ltd.(non-banking finance company) (2018-present).

Principal Occupation During at Least the Past 5 Years:
Managing Member, Mukt Capital, LLC (private investment firm) (2014-present); Advisor, Optimal Asset Management (investment technology and advisory services company) (2015-present); andformerly, Chairman, Asia Pacific, BlackRock (2009-2012); Global Chief Operating Officer, Barclays Global Investors (investment management) (2005-2009); and Senior Partner, The Boston Consulting Group (management consulting) (1992-2005).

Anantha Pradeep (1963) One Franklin Parkway San Mateo, CA 94403-1906	Trustee	Since 2016	39	None

Principal Occupation During at Least the Past 5 Years:
Chief Executive Officer, Smilable, Inc. (technology company) (2014-present); Chief Executive Officer, MachineVantage (technology company) (2018-present); Founder and Managing Partner, Consult Meridian, LLC (consulting company) (2009-present); andformerly, Founder, BoardVantage (board portal solutions provider delivering paperless process for boards and leadership) (2000-2002).

Interested Board Members and Officers



Name, Year of Birth and Address	Position	Length of Time Served	Number of Portfolios in Fund Complex Overseen by Board Member*	Other Directorships Held During at Least the Past 5 Years

**Jennifer M. Johnson (1964) One Franklin Parkway San Mateo, CA 94403-1906	Chairperson of the Board and Trustee	Since 2016	46	None

Principal Occupation During at Least the Past 5 Years:
President and Chief Operating Officer, Franklin Resources, Inc.; officer and/or director or trustee, as the case may be, of some of the other subsidiaries of Franklin Resources, Inc. and of four of the investment companies in Franklin Templeton; andformerly, Chief Operating Officer and Executive Vice President, Franklin Resources, Inc. (1994-2015); Executive Vice President of Operations and Technology, Franklin Resources, Inc. (2005-2010); and Senior Vice President, Franklin Resources, Inc. (2003-2005).

Alison E. Baur (1964) One Franklin Parkway San Mateo, CA 94403-1906	Vice President	Since 2016	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Deputy General Counsel, Franklin Templeton; and officer of some of the other subsidiaries of Franklin Resources, Inc. and of 44 of the investment companies in Franklin Templeton.



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Interested Board Members and Officers(continued)



Name, Year of Birth and Address	Position	Length of Time Served	Number of Portfolios in Fund Complex Overseen by Board Member*	Other Directorships Held During at Least the Past 5 Years

Gaston Gardey (1967) One Franklin Parkway San Mateo, CA 94403-1906	Treasurer, Chief Financial Officer and Chief Accounting Officer	Since 2015	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Treasurer, U.S. Fund Administration & Reporting and officer of 28 of the investment companies in Franklin Templeton.

Aliya S. Gordon (1973) One Franklin Parkway San Mateo, CA 94403-1906	Vice President	Since 2016	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Senior Associate General Counsel and officer of 44 of the investment companies in Franklin Templeton.

Steven J. Gray (1955) One Franklin Parkway San Mateo, CA 94403-1906	Vice President	Since 2016	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Senior Associate General Counsel, Franklin Templeton; Vice President, Franklin Templeton Distributors, Inc. and FASA, LLC; and officer of 44 of the investment companies in Franklin Templeton.

Matthew T. Hinkle (1971) One Franklin Parkway San Mateo, CA 94403-1906	Chief Executive Officer – Finance and Administration	Since 2017	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Senior Vice President, Franklin Templeton Services, LLC; officer of 44 of the investment companies in Franklin Templeton; andformerly, Vice President, Global Tax (2012-April 2017) and Treasurer/Assistant Treasurer, Franklin Templeton (2009-2017).

Robert Lim (1948) One Franklin Parkway San Mateo, CA 94403-1906	VicePresident-AML Compliance	Since 2016	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Vice President, Franklin Templeton Companies, LLC; Chief Compliance Officer, Franklin Templeton Distributors, Inc. and Franklin Templeton Investor Services, LLC; and officer of 44 of the investment companies in Franklin Templeton.

Kimberly H. Novotny (1972) 300 S.E. 2nd Street Fort Lauderdale, FL 33301-1923	Vice President	Since 2016	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Associate General Counsel, Franklin Templeton; Vice President and Corporate Secretary, Fiduciary Trust International of the South; Vice President, Templeton Investment Counsel, LLC; Assistant Secretary, Franklin Resources, Inc.; and officer of 44 of the investment companies in Franklin Templeton.



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Interested Board Members and Officers(continued)



Name, Year of Birth and Address	Position	Length of Time Served	Number of Portfolios in Fund Complex Overseen by Board Member*	Other Directorships Held During at Least the Past 5 Years

Patrick O’Connor (1967) One Franklin Parkway San Mateo, CA 94403-1906	President and Chief Executive Officer– Investment Management	Since 2016	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
President and Chief Investment Officer, Franklin Advisory Services, LLC; Senior Vice President, Franklin Advisers, Inc.; officer of two of the investment companies in Franklin Templeton; andformerly, Managing Director, Head of iShares Product Canada, BlackRock (1998-2014).

Robert C. Rosselot (1960) 300 S.E. 2nd Street Fort Lauderdale, FL 33301-1923	Chief Compliance Officer	Since 2016	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Director, Global Compliance, Franklin Templeton; Vice President, Franklin Templeton Companies, LLC; officer of 44 of the investment companies in Franklin Templeton; andformerly, Senior Associate General Counsel, Franklin Templeton (2007-2013); and Secretary and Vice President, Templeton Group of Funds (2004-2013).

Navid J. Tofigh (1972) One Franklin Parkway San Mateo, CA 94403-1906	Vice President and Secretary	Since 2015	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Associate General Counsel and officer of 44 of the investment companies in Franklin Templeton.

Craig S. Tyle (1960) One Franklin Parkway San Mateo, CA 94403-1906	Vice President	Since 2016	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
General Counsel, Executive Vice President and Secretary, Franklin Resources, Inc.; and officer of some of the other subsidiaries of Franklin Resources, Inc. and of 44 of the investment companies in Franklin Templeton.

Lori A. Weber (1964) 300 S.E. 2nd Street Fort Lauderdale, FL 33301-1923	Vice President	Since 2016	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Senior Associate General Counsel, Franklin Templeton; Assistant Secretary, Franklin Resources, Inc.; Vice President and Secretary, Templeton Investment Counsel, LLC; and officer of 44 of the investment companies in Franklin Templeton.

Note 1: Effective May 1, 2018, Susan R. Thompson ceased to be a trustee of the Trust.

Note 2: Officer information is current as of the date of this report. It is possible that after this date, information about officers may change.



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Shareholder Information

Proxy Voting Policies and Procedures

Quarterly Statement of Investments

Premium/Discount Information

Information about the differences between the daily market price on the secondary market for the shares of the Fund and the Fund’s net asset value may be found on the Fund’s website at franklintempleton.com.



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To help ensure we provide you with quality service, all calls to and from our service areas are monitored and/or recorded.

ANNUAL REPORT

FRANKLIN TEMPLETON

ETF TRUST

March 31, 2019

LOGO


Franklin LibertyQ U.S. Equity ETF		Franklin LibertyQ U.S. Small Cap Equity ETF
Franklin LibertyQ U.S. Mid Cap Equity ETF

Franklin Templeton



Contents

Annual Report

Economic and Market Overview			2
Franklin LibertyQ U.S. Equity ETF			3
Franklin LibertyQ U.S. Mid Cap Equity ETF			9
Franklin LibertyQ U.S. Small Cap Equity ETF			15
Financial Highlights and Statements of Investments			21
Financial Statements			45
Notes to Financial Statements			49
Report of Independent Registered Public Accounting Firm			57
Tax Information			58
Board Members and Officers			59
Shareholder Information			62

Visitfranklintempleton.com/investor/products/etf/ for fund updates and documents.


Not FDIC Insured		\|		May Lose Value		\|		No Bank Guarantee



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ANNUAL REPORT

Economic and Market Overview

The U.S. economy grew during the12-month period. The economy expanded at a faster rate in 2019’s first quarter after moderating in the previous two quarters. Growth in consumer spending, business investment, exports, government spending and inventory investment was partly offset by a decrease in housing investment. The manufacturing and services sectors expanded during the period. The unemployment rate decreased from 4.0% in March 2018 to 3.8% atperiod-end.¹ The annual inflation rate, as measured by the Consumer Price Index, decreased from 2.4% in March 2018 to 1.9% atperiod-end.¹

The U.S. Federal Reserve (Fed) raised its target range for the federal funds rate by 0.25% three times during the period, to 2.25%–2.50%, and continued reducing its balance sheet as part of its plan to normalize monetary policy. At its March 2019 meeting, the Fed held its target range for the federal funds rate unchanged and signaled no rate hikes in 2019. The Fed also lowered its forecasts for economic growth in 2019 and 2020. Furthermore, the Fed mentioned it would end its balance sheet normalization by the end of September 2019.

1. Source: Bureau of Labor Statistics.

2. Source: Morningstar.

See www.franklintempletondatasources.com for additional data provider information.



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Franklin LibertyQ U.S. Equity ETF

This annual report for Franklin LibertyQ U.S. Equity ETF covers the fiscal year ended March 31, 2019.

Your Fund’s Goal and Main Investments

The Fund seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the LibertyQ U.S. Large Cap Equity Index (the Underlying Index).¹ Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the Underlying Index. The Underlying Index seeks to achieve a lower level of risk and higher risk-adjusted performance than the Russell 1000^® Index over the long term by applying a multi-factor selection process, which is designed to select equity securities from the Russell 1000^® Index that have favorable exposure to four investment style factors: quality, value, momentum and low volatility.

Performance Overview

For the 12 months under review, the Fund posted cumulative total returns of +11.50% based on market price and +11.97% based on net asset value (NAV). In comparison, the LibertyQ U.S. Large Cap Equity Index posted a +12.27% total return for the same period, while the Russell 1000^® Index posted a +9.30% total return.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 5.


Top 10 Holdings

3/31/19

Company *Sector/Industry*	% of Total Net Assets
Intuit Inc. Information Technology		1.2%
Mastercard Inc., A Information Technology		1.1%
Lowe’s Cos. Inc. Consumer Discretionary		1.1%
International Business Machines Corp. Information Technology		1.1%
Cisco Systems Inc. Information Technology		1.1%
NIKE Inc., B Consumer Discretionary		1.1%
Starbucks Corp. Consumer Discretionary		1.1%
The Procter & Gamble Co. Consumer Staples		1.1%
Eli Lilly & Co. Health Care		1.1%
NVIDIA Corp. Information Technology		1.1%

Investment Strategy

The Fund, using a passive or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the LibertyQ U.S. Large Cap Equity Index. The investment manager seeks to achieve, over time, a correlation between the Fund’s performance, before fees and expenses, and that of the Underlying Index of 0.95 or better. A figure of 1.00 would indicate perfect correlation. The Fund’s intention is to replicate the component securities of the Underlying Index as closely as possible. However, under various circumstances, it may not be possible or practicable to replicate the Underlying Index. In these circumstances, the Fund may use a “representative sampling” strategy whereby the Fund would invest in what it believes to be a representative sample of the component securities of the Underlying Index, but may not track the Underlying Index with the same degree of accuracy as would an investment vehicle replicating the entire Underlying Index. The Fund’s portfolio is reconstituted semiannually following the semiannual reconstitution of the Underlying Index.

1. Frank Russell Company is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell^® is a trademark of Frank Russell Company. The LibertyQ U.S. Large Cap Equity Index is a systematic, rules-based proprietary index maintained and calculated by FTSE Russell (Russell) based on the Russell 1000^® Index using a methodology developed with Franklin Templeton to reflect Franklin Templeton’s desired investment strategy. Russell 1000^® Index is market capitalization weighted and measures performance of the largest companies in the Russell 3000^® Index, which represents the majority of the U.S. market’s total capitalization.

2. Source: FactSet.

See www.franklintempletondatasources.com for additional data provider information.

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Statement of Investments (SOI). The SOI begins on page 22.



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FRANKLIN LIBERTYQ U.S. EQUITY ETF


Top 10 Sectors/Industries

3/31/19

	% of Total Net Assets
Information Technology		21.1%
Consumer Discretionary		18.5%
Consumer Staples		14.7%
Health Care		11.9%
Industrials		10.7%
Utilities		6.1%
Communication Services		4.5%
Financials		3.9%
Real Estate		3.7%
Materials		2.4%

Manager’s Discussion

During the period, individual holdings that lifted the Fund’s absolute return included Eli Lilly, Intuit and Automatic Data Processing. Individual holdings that hindered the Fund’s absolute return included Northrop Grumman (not held at period-end), Applied Materials and PG&E (not held at period-end).

The Fund’s research-based selection process focuses on four investment factors: quality, value, momentum and low volatility. Of the four target-style factors, quality and low volatility benefited the Fund’s performance for the reporting period, while value and momentum detracted from the Fund’s return.

Thank you for your participation in Franklin LibertyQ U.S. Equity ETF. We look forward to serving your future investment needs.

LOGO

Dina Ting, CFA


		Louis Hsu, CFA

		Portfolio Management Team

CFA^® is a trademark owned by CFA Institute.



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Performance Summary as of March 31, 2019

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (4/28/17), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Performance as of 3/31/19¹

Cumulative Total Return²

Average Annual Total Return²

Based on

NAV³

Based on

market price⁴

Based on

NAV³

Based on

market price⁴

1-Year

+11.97%

+11.50%

+11.97%

+11.50%

Since Inception (4/26/17)

+27.47%

+13.41%

See page 7 for Performance Summary footnotes.



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FRANKLIN LIBERTYQ U.S. EQUITY ETF

PERFORMANCE SUMMARY

Total Return Index Comparison for a Hypothetical $10,000 Investment¹

4/26/17–3/31/19

LOGO

See page 7 for Performance Summary footnotes.



6	Annual Report	franklintempleton.com

FRANKLIN LIBERTYQ U.S. EQUITY ETF

PERFORMANCE SUMMARY

Distributions(4/1/18–3/31/19)

Net Investment

Income

$0.469593

Total Annual Operating Expenses⁶

0.25%

All investments involve risks, including possible loss of principal. There can be no assurance that the Fund’s multi-factor stock selection process will enhance performance. Exposure to such investment factors may detract from performance in some market environments, perhaps for extended periods. Performance of the Fund may vary significantly from the performance of an index, as a result of transactions costs, expenses and other factors. The Fund’s prospectus also includes a description of the main investment risks.

ETFs trade like stocks, fluctuate in market value and may trade at prices above or below their net asset value. Brokerage commissions and ETF expenses will reduce returns.

2. Total return calculations represent the cumulative and average annual changes in value of an investment over the periods indicated. Return for less than one year, if any, has not been annualized.

3. Assumes reinvestment of distributions based on net asset value.

4. Assumes reinvestment of distributions based on market price.

5. The LibertyQ U.S. Large Cap Equity Index is a systematic, rules-based proprietary index maintained and calculated by FTSE Russell (Russell) based on the Russell 1000 Index using a methodology developed with Franklin Templeton to reflect Franklin Templeton’s desired investment strategy. Russell 1000 Index is market capitalization weighted and measures performance of the largest companies in the Russell 3000 Index, which represents the majority of the U.S. market’s total capitalization.

See www.franklintempletondatasources.com for additional data provider information.



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FRANKLIN LIBERTYQ U.S. EQUITY ETF

Your Fund’s Expenses

Actual Fund Expenses

The table below provides information about actual account values and actual expenses in the columns under the heading “Actual.” In these columns the Fund’s actual return, which includes the effect of Fund expenses, is used to calculate the “Ending Account Value.” You can estimate the expenses you paid during the period by following these steps (of course, your account value and expenses will differ from those in this illustration):Divide your account value by $1,000 (if your account had an $8,600 value, then $8,600÷ $1,000 = 8.6).Then multiply the result by the number in the row under the headings “Actual” and “Expenses Paid During Period” (if Actual Expenses Paid During Period were $7.50, then 8.6 x $7.50 = $64.50).In this illustration, the actual expenses paid this period are $64.50.

Hypothetical Example for Comparison with Other Funds

Under the heading “Hypothetical” in the table, information is provided about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. This information may not be used to estimate the actual ending account balance or expenses you paid for the period, but it can help you compare ongoing costs of investing in the Fund with those of other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.


		Actual (actual return after expenses)				Hypothetical (5% annual return before expenses)

Beginning Account Value 10/1/18		Ending Account Value 3/31/19		Expenses Paid During Period 10/1/18–3/31/19^1,2		Ending Account Value 3/31/19		Expenses Paid During Period 10/1/18–3/31/19^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	1,011.80	$	1.25	$	1,023.68	$	1.26		0.25	%

1. Expenses are equal to the annualized expense ratio for the six-month period as indicated above—in the far right column—multiplied by the simple average account value over the period indicated, and then multiplied by 182/365 to reflect the one-half year period.

2. Reflects expenses after fee waivers and expense reimbursements.



8	Annual Report	franklintempleton.com

Franklin LibertyQ U.S. Mid Cap Equity ETF

This annual report for Franklin LibertyQ U.S. Mid Cap Equity ETF covers the fiscal year ended March 31, 2019.

Your Fund’s Goal and Main Investments

The Fund seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the LibertyQ U.S. Mid Cap Equity Index (the Underlying Index).¹Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the Underlying Index. The Underlying Index seeks to achieve a lower level of risk and higher risk-adjusted performance than the Russell Midcap^® Index over the long term by applying a multi-factor selection process, which is designed to select equity securities from the Russell Midcap^® Index that have favorable exposure to four investment style factors: quality, value, momentum and low volatility.

Performance Overview

For the 12 months under review, the Fund posted cumulative total returns of +10.54% based on market price and +10.92% based on net asset value (NAV). In comparison, the LibertyQ U.S. Mid Cap Equity Index posted a +11.25% total return for the same period, while the Russell Midcap^® Index posted a +6.47% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 11.


Top 10 Holdings

3/31/19

Company *Sector/Industry*	% of Total Net Assets
Xilinx Inc. Information Technology		1.3%
AutoZone Inc. Consumer Discretionary		1.2%
Edwards Lifesciences Corp. Health Care		1.1%
Ulta Beauty Inc. Consumer Discretionary		1.1%
Realty Income Corp. Real Estate		1.1%
Cadence Design Systems Inc. Information Technology		1.1%
Mettler-Toledo International Inc. Health Care		1.1%
Paychex Inc. Information Technology		1.1%
KLA-Tencor Corp. Information Technology		1.1%
O’Reilly Automotive Inc. Consumer Discretionary		1.1%

Investment Strategy

The Fund, using a passive or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the LibertyQ U.S. Mid Cap Equity Index. The investment manager seeks to achieve, over time, a correlation between the Fund’s performance, before fees and expenses, and that of the Underlying Index of 0.95 or better. A figure of 1.00 would indicate perfect correlation. The Fund’s intention is to replicate the component securities of the Underlying Index as closely as possible. However, under various circumstances, it may not be possible or practicable to replicate the Underlying Index. In these circumstances, the Fund may use a “representative sampling” strategy whereby the Fund would invest in what it believes to be a representative sample of the component securities of the Underlying Index, but may not track the Underlying Index with the same degree of accuracy as would an investment vehicle replicating the entire Underlying Index. The Fund’s portfolio is reconstituted semiannually following the semiannual reconstitution of the Underlying Index.

1. Frank Russell Company is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell^® is a trademark of Frank Russell Company. The LibertyQ U.S. Mid Cap Equity Index is a systematic, rules-based proprietary index that is maintained and calculated by FTSE Russell (Russell). It is based on the Russell Midcap^® Index using a methodology developed with Franklin Templeton to reflect Franklin Templeton’s desired investment strategy. Russell Midcap^® Index is market capitalization weighted and measures performance of the smallest companies in the Russell 1000^® Index, which represents a modest amount of the Russell 1000^® Index’s total market capitalization.

2. Source: FactSet.

See www.franklintempletondatasources.com for additional data provider information.

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Statement of Investments (SOI). The SOI begins on page 29.



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FRANKLIN LIBERTYQ U.S. MID CAP EQUITY ETF


Top 10 Sectors/Industries

3/31/19

	% of Total Net Assets
Consumer Discretionary		23.7%
Industrials		17.3%
Information Technology		14.9%
Financials		10.0%
Health Care		9.8%
Consumer Staples		8.5%
Real Estate		7.2%
Communication Services		3.2%
Utilities		3.0%
Materials		2.0%

Manager’s Discussion

During the fiscal year ended March 31, 2019, individual holdings that lifted the Fund’s absolute return included Xilinx, Cadence Design Systems and AutoZone. Individual holdings that hindered the Fund’s absolute return included American Airlines Group, Coach (not held at period-end) and SEI Investments.

Thank you for your participation in Franklin LibertyQ U.S. Mid Cap Equity ETF. We look forward to serving your future investment needs.

LOGO

Dina Ting, CFA


		Louis Hsu, CFA

		Portfolio Management Team



10	Annual Report	franklintempleton.com

FRANKLIN LIBERTYQ U.S. MID CAP EQUITY ETF

Performance Summary as of March 31, 2019

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (4/28/17), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Performance as of 3/31/19¹

Cumulative Total Return²

Average Annual Total Return²

Based on

NAV³

Based on

market price⁴

Based on

NAV³

Based on

market price⁴

1-Year

+10.92%

+10.54%

+10.92%

+10.54%

Since Inception (4/26/17)

+22.11%

+22.22%

+10.91%

+10.96%

See page 13 for Performance Summary footnotes.



franklintempleton.com	Annual Report	11

FRANKLIN LIBERTYQ U.S. MID CAP EQUITY ETF

PERFORMANCE SUMMARY

Total Return Index Comparison for a Hypothetical $10,000 Investment¹

4/26/17–3/31/19

LOGO

See page 13 for Performance Summary footnotes.



12	Annual Report	franklintempleton.com

FRANKLIN LIBERTYQ U.S. MID CAP EQUITY ETF

PERFORMANCE SUMMARY

Distributions(4/1/18–3/31/19)

Net Investment

Income

$0.376555

Total Annual Operating Expenses⁶

0.30%

All investments involve risks, including possible loss of principal. Generally, those offering potential for higher returns are accompanied by a higher degree of risk. Stock prices fluctuate, sometimes rapidly and dramatically, due to factors affecting individual companies, particular industries or sectors, or general market conditions. Historically,mid-size company securities have been more volatile in price than larger company securities, especially over the short term.Mid-size companies may be more susceptible to particular economic events or competitive factors than are larger, more broadly diversified companies. There can be no assurance that the Fund’s multi-factor stock selection process will enhance performance. Exposure to such investment factors may detract from performance in some market environments, perhaps for extended periods. Performance of the Fund may vary significantly from the performance of an index, as a result of transactions costs, expenses and other factors. The Fund’s prospectus also includes a description of the main investment risks.

ETFs trade like stocks, fluctuate in market value and may trade at prices above or below their net asset value. Brokerage commissions and ETF expenses will reduce returns.

2. Total return calculations represent the cumulative and average annual changes in value of an investment over the periods indicated. Return for less than one year, if any, has not been annualized.

3. Assumes reinvestment of distributions based on net asset value.

4. Assumes reinvestment of distributions based on market price.

5. The LibertyQ U.S. Mid Cap Equity Index is a systematic, rules-based proprietary index maintained and calculated by FTSE Russell (Russell) based on the Russell Midcap Index using a methodology developed with Franklin Templeton to reflect Franklin Templeton’s desired investment strategy. Russell Midcap Index is market capitalization weighted and measures performance of the smallest companies in the Russell 1000 Index, which represents a modest amount of the Russell 1000 Index’s total market capitalization.

See www.franklintempletondatasources.com for additional data provider information.



franklintempleton.com	Annual Report	13

FRANKLIN LIBERTYQ U.S. MID CAP EQUITY ETF

Your Fund’s Expenses

Actual Fund Expenses

The table below provides information about actual account values and actual expenses in the columns under the heading “Actual.” In these columns the Fund’s actual return, which includes the effect of Fund expenses, is used to calculate the “Ending Account Value.” You can estimate the expenses you paid during the period by following these steps (of course, your account value and expenses will differ from those in this illustration):Divide your account value by $1,000 (if your account had an $8,600 value, then $8,600÷ $1,000 = 8.6).Then multiply the result by the number in the row under the headings “Actual” and “Expenses Paid During Period” (if Actual Expenses Paid During Period were $7.50, then 8.6 x $7.50 = $64.50).In this illustration, the actual expenses paid this period are $64.50.

Hypothetical Example for Comparison with Other Funds

Under the heading “Hypothetical” in the table, information is provided about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. This information may not be used to estimate the actual ending account balance or expenses you paid for the period, but it can help you compare ongoing costs of investing in the Fund with those of other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.


		Actual (actual return after expenses)				Hypothetical (5% annual return before expenses)

Beginning Account Value10/1/18		Ending Account Value 3/31/19		Expenses Paid During Period 10/1/18–3/31/19^1,2		Ending Account Value 3/31/19		Expenses Paid During Period 10/1/18–3/31/19^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	1,006.10	$	1.50	$	1,023.44	$	1.51		0.30	%

1. Expenses are equal to the annualized expense ratio for the six-month period as indicated above—in the far right column—multiplied by the simple average account value over the period indicated, and then multiplied by 182/365 to reflect the one-half year period.

2. Reflects expenses after fee waivers and expense reimbursements.



14	Annual Report	franklintempleton.com

Franklin LibertyQ U.S. Small Cap Equity ETF

This annual report for Franklin LibertyQ U.S. Small Cap Equity ETF covers the fiscal year ended March 31, 2019.

Your Fund’s Goal and Main Investments

The Fund seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the LibertyQ U.S. Small Cap Equity Index (the Underlying Index).¹Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the Underlying Index. The Underlying Index seeks to achieve a lower level of risk and higher risk-adjusted performance than the Russell 2000^® Index over the long term by applying a multi-factor selection process, which is designed to select equity securities from the Russell 2000^® Index that have favorable exposure to four investment style factors: quality, value, momentum and low volatility.

Performance Overview

For the 12-month period, the Fund posted cumulative total returns of +5.17% based on market price and +5.05% based on net asset value (NAV).² In comparison, the LibertyQ U.S. Small Cap Equity Index posted a +5.32% total return for the same period, while the Russell 2000^® Index posted a +2.05% total return.³ You can find more of the Fund’s performance data in the Performance Summary beginning on page 17.


Top 10 Holdings

3/31/19

Company *Sector/Industry*	% of Total Net Assets
Five Below Inc. Consumer Discretionary		1.2%
Etsy Inc. Consumer Discretionary		1.0%
Insperity Inc. Industrials		1.0%
Texas Roadhouse Inc., A Consumer Discretionary		1.0%
Deckers Outdoor Corp. Consumer Discretionary		0.9%
Essent Group Ltd. Financials		0.9%
Ollie’s Bargain Outlet Holdings Inc. Consumer Discretionary		0.8%
The New York Times Co., A Communication Services		0.8%
IDACORP Inc. Utilities		0.8%
Ciena Corp. Information Technology		0.8%

Investment Strategy

The Fund, using a passive or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the LibertyQ U.S. Small Cap Equity Index. The investment manager seeks to achieve, over time, a correlation between the Fund’s performance, before fees and expenses, and that of the Underlying Index of 0.95 or better. A figure of 1.00 would indicate perfect correlation. The Fund’s intention is to replicate the component securities of the Underlying Index as closely as possible. However, under various circumstances, it may not be possible or practicable to replicate the Underlying Index. In these circumstances, the Fund may use a “representative sampling” strategy whereby the Fund would invest in what it believes to be a representative sample of the component securities of the Underlying Index, but may not track the Underlying Index with the same degree of accuracy as would an investment vehicle replicating the entire Underlying Index. The Fund’s portfolio is reconstituted semiannually following the semiannual reconstitution of the Underlying Index.

1. Frank Russell Company is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell^® is a trademark of Frank Russell Company. The LibertyQ U.S. Small Cap Equity Index is a systematic, rules-based proprietary index that is maintained and calculated by FTSE Russell (Russell). It is based on the Russell 2000^® Index using a methodology developed with Franklin Templeton to reflect Franklin Templeton’s desired investment strategy. Russell 2000^® Index is market capitalization weighted and measures performance of the 2,000 smallest companies in the Russell 3000^® Index, which represent a small amount of the total market capitalization of the Russell 3000^® Index.

2. Source: FactSet.

See www.franklintempletondatasources.com for additional data provider information.

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Statement of Investments (SOI). The SOI begins on page 35.



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FRANKLIN LIBERTYQ U.S. SMALL CAP EQUITY ETF


Top 10 Sectors/Industries

3/31/19

	% of Total Net Assets
Consumer Discretionary	��	26.4%
Industrials		16.2%
Information Technology		12.9%
Health Care		10.8%
Financials		8.9%
Utilities		6.5%
Consumer Staples		6.0%
Communication Services		5.3%
Real Estate		4.7%
Materials		1.5%

Manager’s Discussion

For the fiscal year ended March 31, 2019, individual holdings that lifted the Fund’s absolute return included Five Below, Insperity and Etsy. Individual holdings that hindered the Fund’s absolute return included Stamps.com, Marriott Vacations Worldwide (not held at period-end) and Cimpress.

The Fund’s research-based selection process focuses on four investment factors: quality, value, momentum and low volatility. Of the four target-style factors, quality and low volatility benefited the Fund’s performance for the reporting period, while momentum and value detracted from the Fund’s return.

Thank you for your participation in Franklin LibertyQ U.S. Small Cap Equity ETF. We look forward to serving your future investment needs.

LOGO

Dina Ting, CFA


		Louis Hsu, CFA

		Portfolio Management Team



16	Annual Report	franklintempleton.com

FRANKLIN LIBERTYQ U.S. SMALL CAP EQUITY ETF

Performance Summary as of March 31, 2019

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (4/28/17), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Performance as of 3/31/19¹

Cumulative Total Return²

Average Annual Total Return²

Based on

NAV³

Based on

market price⁴

Based on

NAV³

Based on

market price⁴

1-Year

+5.05%

+5.17%

+5.05%

+5.17%

Since Inception (4/26/17)

+11.70%

+11.79%

+5.91%

+5.95%

See page 19 for Performance Summary footnotes.



franklintempleton.com	Annual Report	17

FRANKLIN LIBERTYQ U.S. SMALL CAP EQUITY ETF

PERFORMANCE SUMMARY

Total Return Index Comparison for a Hypothetical $10,000 Investment¹

4/26/17–3/31/19

LOGO

See page 19 for Performance Summary footnotes.



18	Annual Report	franklintempleton.com

FRANKLIN LIBERTYQ U.S. SMALL CAP EQUITY ETF

PERFORMANCE SUMMARY

Distributions(4/1/18–3/31/19)

Net Investment

Income

$0.337529

Total Annual Operating Expenses⁶

0.35%

All investments involve risks, including possible loss of principal. Generally, those offering potential for higher returns are accompanied by a higher degree of risk. Stock prices fluctuate, sometime rapidly and dramatically, due to factors affecting individual companies, particular industries or sectors, or general market conditions. Smaller,mid-sized and relative new or unseasoned companies can be particularly sensitive to changing economic conditions, and their prospects for growth are less certain than those of larger, more established companies. Historically, these securities have experienced more price volatility than larger company stocks, especially over the short term. Smaller companies may be more susceptible to particular events or economic conditions, less certain growth prospects, lack of depth of management and funds for growth and development and limited or less developed product lines and markets. There can be no assurance that the Fund’s multi-factor stock selection process will enhance performance. Exposure to such investment factors may detract from performance in some market environments, perhaps for extended periods. Performance of the Fund may vary significantly from the performance of an index, as a result of transactions costs, expenses and other factors. The Fund’s prospectus also includes a description of the main investment risks.

ETFs trade like stocks, fluctuate in market value and may trade at prices above or below their net asset value. Brokerage commissions and ETF expenses will reduce returns.

2. Total return calculations represent the cumulative and average annual changes in value of an investment over the periods indicated. Return for less than one year, if any, has not been annualized.

3. Assumes reinvestment of distributions based on net asset value.

4. Assumes reinvestment of distributions based on market price.

5. The LibertyQ U.S. Small Cap Equity Index is a systematic, rules-based proprietary index that is maintained and calculated by FTSE Russell (Russell) based on the Russell 2000 Index using a methodology developed with Franklin Templeton to reflect Franklin Templeton’s desired investment strategy. Russell 2000 Index is market capitalization weighted and measures performance of the 2,000 smallest companies in the Russell 3000 Index, which represent a small amount of the total market capitalization of the Russell 3000 Index.

See www.franklintempletondatasources.com for additional data provider information.



franklintempleton.com	Annual Report	19

FRANKLIN LIBERTYQ U.S. SMALL CAP EQUITY ETF

Your Fund’s Expenses

Actual Fund Expenses

The table below provides information about actual account values and actual expenses in the columns under the heading “Actual.” In these columns the Fund’s actual return, which includes the effect of Fund expenses, is used to calculate the “Ending Account Value.” You can estimate the expenses you paid during the period by following these steps (of course, your account value and expenses will differ from those in this illustration):Divide your account value by $1,000 (if your account had an $8,600 value, then $8,600÷ $1,000 = 8.6).Then multiply the result by the number in the row under the headings “Actual” and “Expenses Paid During Period” (if Actual Expenses Paid During Period were $7.50, then 8.6 x $7.50 = $64.50).In this illustration, the actual expenses paid this period are $64.50.

Hypothetical Example for Comparison with Other Funds

Under the heading “Hypothetical” in the table, information is provided about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. This information may not be used to estimate the actual ending account balance or expenses you paid for the period, but it can help you compare ongoing costs of investing in the Fund with those of other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.


		Actual (actual return after expenses)				Hypothetical (5% annual return before expenses)

Beginning Account Value 10/1/18		Ending Account Value 3/31/19		Expenses Paid During Period 10/1/18–3/31/19^1,2		Ending Account Value 3/31/19		Expenses Paid During Period 10/1/18–3/31/19^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	927.80	$	1.68	$	1,023.19	$	1.77		0.35	%

1. Expenses are equal to the annualized expense ratio for the six-month period as indicated above—in the far right column—multiplied by the simple average account value over the period indicated, and then multiplied by 182/365 to reflect the one-half year period.

2. Reflects expenses after fee waivers and expense reimbursements.



20	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin LibertyQ U.S. Equity ETF



	Year Ended March 31,

	2019			2018^a
Per share operating performance (for a share outstanding throughout the year)

Net asset value, beginning of year	$	28.51		$	25.44


Income from investment operations^b:

Net investment income^c		0.66			0.53

Net realized and unrealized gains (losses)		2.71			2.98


Total from investment operations		3.37			3.51


Less distributions from net investment income		(0.47	)		(0.44	)


Net asset value, end of year	$	31.41		$	28.51


Total return^d		11.97%			13.84%

Ratios to average net assets^e

Expenses before waiver and payments by affiliates		0.25%			0.32%^f

Expenses net of waiver and payments by affiliates		0.25%			0.25%^f

Net investment income		2.20%			2.10%

Supplemental data

Net assets, end of year (000’s)		$1,008,255			$108,326

Portfolio turnover rate^g		18.04%			20.80%

^aFor the period April 26, 2017 (commencement of operations) to March 31, 2018.

^cBased on average daily shares outstanding.

^eRatios are annualized for periods less than one year.

^fEffective December 1, 2017, the Fund replaced the prior fee structure with a unified management fee. See Note 3(a).

^gPortfolio turnover rate excludes the value of portfolio securities received or delivered as a result of processing capital share transactions in Creation Units, if any.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	21

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2019

Franklin LibertyQ U.S. Equity ETF



		Shares		Value
	Common Stocks 99.6%
	Communication Services 4.5%
a	AMC Networks Inc., A		6,420	$	364,399
	AT&T Inc.		314,580		9,865,229
	Cable One Inc.		250		245,345
	Cinemark Holdings Inc.		6,420		256,736
	Comcast Corp., A		251,664		10,061,527
	John Wiley & Sons Inc., A		4,494		198,725
	Match Group Inc.		7,062		399,780
	Omnicom Group Inc.		44,298		3,233,311
	The Interpublic Group of Cos. Inc.		41,088		863,259
	The Walt Disney Co.		84,744		9,409,126
	Verizon Communications Inc.		162,426		9,604,249
	Viacom Inc., B		39,804		1,117,298

					45,618,984

	Consumer Discretionary 18.5%
	Advance Auto Parts Inc.		3,852		656,882
a	AutoZone Inc.		3,210		3,287,425
	Best Buy Co. Inc.		58,422		4,151,467
a	Capri Holdings Ltd.		38,520		1,762,290
	Carnival Corp.		72,546		3,679,533
	Carter’s Inc.		9,630		970,608
	Choice Hotels International Inc.		7,704		598,909
	Darden Restaurants Inc.		30,816		3,743,220
	Dick’s Sporting Goods Inc.		19,260		708,961
	Dollar General Corp.		38,520		4,595,436
	Domino’s Pizza Inc.		9,630		2,485,503
	Foot Locker Inc.		32,742		1,984,165
	Ford Motor Co.		390,978		3,432,787
	Garmin Ltd.		28,248		2,439,215
	Gentex Corp.		57,780		1,194,890
	Genuine Parts Co.		32,742		3,668,086
a	Grand Canyon Education Inc.		5,136		588,123
	H&R Block Inc.		54,570		1,306,406
	Hasbro Inc.		26,322		2,237,896
	Kohl’s Corp.		42,372		2,913,922
	L Brands Inc.		57,780		1,593,572
	Las Vegas Sands Corp.		53,286		3,248,315
	Lear Corp.		12,840		1,742,516
	Leggett & Platt Inc.		28,248		1,192,631
	Lowe’s Cos. Inc.		104,004		11,385,318
a	Lululemon Athletica Inc.		21,828		3,576,954
	Macy’s Inc.		64,842		1,558,153
	McDonald’s Corp.		52,002		9,875,180
	NIKE Inc., B		130,326		10,974,753
	Nordstrom Inc.		27,606		1,225,154
a	NVR Inc.		512		1,416,704
a	O’Reilly Automotive Inc.		19,260		7,478,658
	Penske Automotive Group Inc.		3,852		171,992
	Polaris Industries Inc.		14,124		1,192,489
	Pool Corp.		7,704		1,270,929
	Ralph Lauren Corp.		5,136		666,037
	Ross Stores Inc.		103,362		9,623,002
	Six Flags Entertainment Corp.		7,704		380,192
	Starbucks Corp.		147,018		10,929,318
	Tapestry Inc.		69,978		2,273,585
	Target Corp.		104,004		8,347,361
	The Gap Inc.		60,990		1,596,718
	The Home Depot Inc.		54,570		10,471,437



22	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ U.S. Equity ETF(continued)



		Shares		Value
	Common Stocks (continued)
	Consumer Discretionary (continued)
a	The Michaels Cos. Inc.		19,902	$	227,281
	The TJX Cos. Inc.		200,304		10,658,176
	Thor Industries Inc.		10,272		640,665
	Tiffany & Co.		20,544		2,168,419
	Tractor Supply Co.		28,248		2,761,525
a	Ulta Beauty Inc.		13,482		4,701,578
a	Urban Outfitters Inc.		16,692		494,751
	VF Corp.		73,830		6,416,565
	Williams-Sonoma Inc.		21,828		1,228,262
	Wyndham Destinations Inc.		7,062		285,940
	Yum! Brands Inc.		86,670		8,650,533

					186,830,387

	Consumer Staples 14.7%
	Altria Group Inc.		179,118		10,286,747
	Archer-Daniels-Midland Co.		59,706		2,575,120
	Brown-Forman Corp., A		12,198		624,172
	Casey’s General Stores Inc.		7,062		909,374
	Church & Dwight Co. Inc.		56,496		4,024,210
	Clorox Co.		34,668		5,562,827
	Colgate-Palmolive Co.		154,080		10,560,643
	Costco Wholesale Corp.		42,372		10,259,956
	Estee Lauder Cos. Inc., A		52,002		8,608,931
	Flowers Foods Inc.		35,952		766,497
	General Mills Inc.		129,042		6,677,924
	Hormel Foods Corp.		65,484		2,931,064
	Ingredion Inc.		13,482		1,276,611
	Kellogg Co.		16,050		920,949
	Kimberly-Clark Corp.		23,754		2,943,121
	Lamb Weston Holdings Inc.		25,680		1,924,459
a	Monster Beverage Corp.		55,854		3,048,511
	Nu Skin Enterprises Inc., A		10,914		522,344
	PepsiCo Inc.		80,250		9,834,637
	Philip Morris International Inc.		112,992		9,987,363
a	Sprouts Farmers Market Inc.		14,124		304,231
	Sysco Corp.		109,140		7,286,186
	The Coca-Cola Co.		194,526		9,115,488
	The Hershey Co.		37,236		4,275,810
	The J. M. Smucker Co.		12,198		1,421,067
	The Kroger Co.		52,002		1,279,249
	The Procter & Gamble Co.		103,362		10,754,816
	Tyson Foods Inc.		58,422		4,056,239
	Walgreens Boots Alliance Inc.		93,090		5,889,804
	Walmart Inc.		100,152		9,767,825

					148,396,175

	Energy 2.1%
	Cimarex Energy Co.		5,778		403,882
	Exxon Mobil Corp.		123,264		9,959,731
	Phillips 66		43,656		4,154,742
	Valero Energy Corp.		82,176		6,970,990

					21,489,345

	Financials 3.9%
	American National Insurance Co.		1,926		232,699
	Assured Guaranty Ltd.		6,420		285,241
	Chimera Investment Corp.		38,520		721,865
	Erie Indemnity Co., A		5,136		916,879



franklintempleton.com	Annual Report	23

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ U.S. Equity ETF(continued)



		Shares		Value
	Common Stocks (continued)
	Financials (continued)
	Evercore Inc.		4,494	$	408,954
	Everest Re Group Ltd.		4,494		970,524
	FactSet Research Systems Inc.		7,704		1,912,672
	Invesco Ltd.		23,754		458,690
	Lazard Ltd., A		28,248		1,020,883
	MarketAxess Holdings Inc.		7,062		1,737,817
	Marsh & McLennan Cos. Inc.		93,090		8,741,151
	Mercury General Corp.		6,420		321,449
	Morningstar Inc.		3,852		485,313
	MSCI Inc.		15,408		3,063,727
	Navient Corp.		16,050		185,698
	People’s United Financial Inc.		69,336		1,139,884
	S&P Global Inc.		43,014		9,056,598
	Santander Consumer USA Holdings Inc.		20,544		434,095
	SEI Investments Co.		17,334		905,701
	The Progressive Corp.		91,806		6,618,295

					39,618,135

	Health Care 11.9%
	AbbVie Inc.		104,004		8,381,682
	Amgen Inc.		46,866		8,903,603
a	Biogen Inc.		29,532		6,980,774
	Bristol-Myers Squibb Co.		179,760		8,576,350
a	Cerner Corp.		46,224		2,644,475
	Chemed Corp.		1,926		616,455
	Eli Lilly & Co.		82,818		10,746,464
	Encompass Health Corp.		10,272		599,885
a	Exelixis Inc.		41,088		977,894
	Gilead Sciences Inc.		136,104		8,848,121
	HCA Holdings Inc.		27,606		3,599,270
a	Intuitive Surgical Inc.		17,334		9,890,434
	Johnson & Johnson		66,768		9,333,499
	Merck & Co. Inc.		123,264		10,251,867
a	Mettler-Toledo International Inc.		5,136		3,713,328
	Pfizer Inc.		211,860		8,997,694
	ResMed Inc.		30,816		3,203,939
a	United Therapeutics Corp.		10,914		1,280,976
	UnitedHealth Group Inc.		34,668		8,572,010
	Universal Health Services Inc., B		5,136		687,043
a	Varian Medical Systems Inc.		19,902		2,820,511

					119,626,274

	Industrials 10.7%
	3M Co.		46,866		9,737,818
	Alaska Air Group Inc.		30,174		1,693,365
	Allison Transmission Holdings Inc.		7,704		346,064
	BWX Technologies Inc.		18,618		923,080
	C.H. Robinson Worldwide Inc.		34,668		3,015,769
	Cintas Corp.		17,976		3,633,129
	Copa Holdings SA		5,136		414,013
a	Copart Inc.		41,088		2,489,522
	Cummins Inc.		30,816		4,864,922
	Delta Air Lines Inc.		121,338		6,267,108
	Emerson Electric Co.		132,252		9,055,294
	Expeditors International of Washington Inc.		37,878		2,874,940
	Fastenal Co.		70,620		4,541,572
	Graco Inc.		34,026		1,684,968
	Huntington Ingalls Industries Inc.		8,346		1,729,291



24	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ U.S. Equity ETF(continued)



		Shares		Value
	Common Stocks (continued)
	Industrials (continued)
	J.B. Hunt Transport Services Inc.		21,186	$	2,145,930
	Landstar System Inc.		7,704		842,741
	Lockheed Martin Corp.		32,742		9,827,839
	MSC Industrial Direct Co. Inc., A		8,346		690,298
	Raytheon Co.		48,150		8,767,152
	Robert Half International Inc.		32,100		2,091,636
	Rockwell Automation Inc.		28,248		4,956,394
	Rollins Inc.		36,594		1,523,042
	Schneider National Inc., B		5,778		121,627
	Snap-on Inc.		3,210		502,429
	Southwest Airlines Co.		105,930		5,498,826
	Toro Co.		27,606		1,900,397
	Union Pacific Corp.		63,558		10,626,898
	W.W. Grainger Inc.		12,198		3,670,744
a	WABCO Holdings Inc.		3,210		423,174
	Watsco Inc.		5,778		827,467

					107,687,449

	Information Technology 21.1%
	Accenture PLC, A		59,706		10,509,450
a	Adobe Inc.		39,162		10,436,281
	Amdocs Ltd.		32,742		1,771,670
	Apple Inc.		55,212		10,487,519
	Applied Materials Inc.		193,884		7,689,440
a	Aspen Technology Inc.		4,494		468,544
	Automatic Data Processing Inc.		66,768		10,665,520
	Broadridge Financial Solutions Inc.		28,248		2,929,035
	Cisco Systems Inc.		204,798		11,057,044
	Cognizant Technology Solutions Corp., A		59,706		4,325,700
a	F5 Networks Inc.		16,050		2,518,727
a	Fortinet Inc.		14,766		1,239,901
	HP Inc.		392,262		7,621,651
	Intel Corp.		199,020		10,687,374
	International Business Machines Corp.		79,608		11,232,689
	Intuit Inc.		45,582		11,915,591
	Jack Henry & Associates Inc.		17,976		2,493,990
	KLA-Tencor Corp.		29,532		3,526,416
	Lam Research Corp.		25,680		4,596,977
	Mastercard Inc., A		48,792		11,488,076
	Maxim Integrated Products Inc.		57,780		3,072,163
a	Micron Technology Inc.		173,340		7,164,142
	Microsoft Corp.		88,596		10,449,012
	Motorola Solutions Inc.		31,458		4,417,332
	NetApp Inc.		45,582		3,160,656
	NVIDIA Corp.		59,706		10,720,809
	Paychex Inc.		80,892		6,487,538
	Skyworks Solutions Inc.		45,582		3,759,603
	Texas Instruments Inc.		98,226		10,418,832
	Ubiquiti Networks Inc.		1,926		288,342
a	VeriSign Inc.		22,470		4,079,653
	VMware Inc., A		16,050		2,897,186
	Western Union Co.		50,076		924,904
	Xilinx Inc.		58,422		7,407,325

					212,909,092

	Materials 2.4%
	Avery Dennison Corp.		13,482		1,523,466
	Eastman Chemical Co.		14,124		1,071,729



franklintempleton.com	Annual Report	25

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ U.S. Equity ETF(continued)



	Shares		Value
Common Stocks (continued)
Materials (continued)
Huntsman Corp.		13,482	$	303,210
Linde PLC		51,360		9,035,765
LyondellBasell Industries NV, A		84,744		7,125,275
NewMarket Corp.		1,926		835,037
Packaging Corp. of America		12,198		1,212,237
Sealed Air Corp.		16,050		739,263
Sonoco Products Co.		21,186		1,303,575
Steel Dynamics Inc.		12,840		452,867

				23,602,424

Real Estate 3.7%
EPR Properties		14,124		1,086,136
Gaming and Leisure Properties Inc.		35,952		1,386,669
Kimco Realty Corp.		66,126		1,223,331
National Retail Properties Inc.		37,878		2,098,062
OMEGA Healthcare Investors Inc.		48,150		1,836,923
Public Storage		38,520		8,388,886
Realty Income Corp.		66,768		4,911,454
Senior Housing Properties Trust		52,002		612,584
Simon Property Group Inc.		44,940		8,188,517
Spirit Realty Capital Inc.		21,828		867,226
STORE Capital Corp.		35,310		1,182,885
Ventas Inc.		21,186		1,351,879
VEREIT Inc.		224,058		1,875,365
WP Carey Inc.		21,186		1,659,499

				36,669,416

Utilities 6.1%
Alliant Energy Corp.		43,014		2,027,250
Ameren Corp.		14,766		1,086,039
Atmos Energy Corp.		20,544		2,114,594
Consolidated Edison Inc.		62,916		5,335,906
DTE Energy Co.		39,804		4,965,151
Evergy Inc.		16,050		931,703
Eversource Energy		48,792		3,461,792
Exelon Corp.		211,218		10,588,358
Hawaiian Electric Industries Inc.		21,186		863,753
NextEra Energy Inc.		53,928		10,425,361
OGE Energy Corp.		35,310		1,522,567
Pinnacle West Capital Corp.		25,038		2,393,132
PPL Corp.		45,582		1,446,773
Public Service Enterprise Group Inc.		121,338		7,208,691
The Southern Co.		61,632		3,185,142
UGI Corp.		10,272		569,274
WEC Energy Group Inc.		43,014		3,401,547

				61,527,033

Total Investments (Cost $963,646,153) 99.6%				1,003,974,714
Other Assets, less Liabilities 0.4%				4,279,835

Net Assets 100.0%			$	1,008,254,549

^aNon-income producing.



26	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ U.S. Equity ETF(continued)

At March 31, 2019, 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)

Index Contracts

S&P 500E-Mini

Long

3,405,360

6/21/19

105,460

*As of period end.



franklintempleton.com	Annual Report	27

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin LibertyQ U.S. Mid Cap Equity ETF



	��	Year Ended March 31,

		2019			2018^a
Per share operating performance (for a share outstanding throughout the year)

Net asset value, beginning of year		$	27.70		$	25.51


Income from investment operations^b:

Net investment income^c			0.47			0.38

Net realized and unrealized gains (losses)			2.53			2.18


Total from investment operations			3.00			2.56


Less distributions from net investment income			(0.38	)		(0.37	)


Net asset value, end of year		$	30.32		$	27.70


Total return^d			10.92%			10.09%

Ratios to average net assets^e

Expenses before waiver and payments by affiliates			0.30%			0.99%^f

Expenses net of waiver and payments by affiliates			0.30%			0.30%^f

Net investment income			1.65%			1.58%

Supplemental data

Net assets, end of year (000’s)			$10,612			$2,770

Portfolio turnover rate^g			23.49%			36.21%

^aFor the period April 26, 2017 (commencement of operations) to March 31, 2018.

^cBased on average daily shares outstanding.

^eRatios are annualized for periods less than one year.

^fEffective December 1, 2017, the Fund replaced the prior fee structure with a unified management fee. See Note 3(a).

^gPortfolio turnover rate excludes the value of portfolio securities received or delivered as a result of processing capital share transactions in Creation Units, if any.



28	Annual Report \| The accompanying notes are an integral part of these financial statements.	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2019

Franklin LibertyQ U.S. Mid Cap Equity ETF



		Shares		Value
	Common Stocks 99.8%
	Communication Services 3.2%
a	AMC Networks Inc., A		266	$	15,098
	CBS Corp., B		1,519		72,198
	Cinemark Holdings Inc.		553		22,115
a	GCI Liberty Inc.		413		22,967
	John Wiley & Sons Inc., A		315		13,929
	Match Group Inc.		301		17,040
	Omnicom Group Inc.		1,008		73,574
	The Interpublic Group of Cos. Inc.		2,730		57,357
	Viacom Inc., B		1,512		42,442

					336,720

	Consumer Discretionary 23.7%
a	AutoZone Inc.		126		129,039
	Best Buy Co. Inc.		1,568		111,422
	BorgWarner Inc.		931		35,760
a	Burlington Stores Inc.		434		67,999
a	Capri Holdings Ltd.		1,057		48,358
	Carter’s Inc.		315		31,749
	Dick’s Sporting Goods Inc.		574		21,129
	Dollar General Corp.		924		110,233
	Domino’s Pizza Inc.		315		81,302
	Foot Locker Inc.		868		52,601
a	frontdoor Inc.		301		10,360
	Garmin Ltd.		693		59,841
	Genuine Parts Co.		987		110,574
a	Grand Canyon Education Inc.		231		26,452
	H&R Block Inc.		1,435		34,354
	Hanesbrands Inc.		2,023		36,171
	Hasbro Inc.		742		63,085
a	Hilton Grand Vacations Inc.		476		14,685
	Kohl’s Corp.		1,309		90,020
	L Brands Inc.		1,617		44,597
a	Lululemon Athletica Inc.		420		68,825
	Macy’s Inc.		2,464		59,210
	Nordstrom Inc.		917		40,696
a	NVR Inc.		18		49,806
a	O’Reilly Automotive Inc.		294		114,160
	Penske Automotive Group Inc.		147		6,564
	Pool Corp.		329		54,275
	Ralph Lauren Corp.		329		42,665
	Ross Stores Inc.		1,162		108,182
a	ServiceMaster Global Holdings Inc.		567		26,479
	Six Flags Entertainment Corp.		469		23,145
a	Skechers USA. Inc., A		756		25,409
	Tapestry Inc.		1,911		62,088
a	Tempur Sealy International Inc.		238		13,725
	The Gap Inc.		1,736		45,448
a	The Michaels Cos. Inc.		847		9,673
	Tiffany & Co.		700		73,885
	Tractor Supply Co.		1,036		101,279
a	Ulta Beauty Inc.		343		119,614
a	Urban Outfitters Inc.		455		13,486
	VF Corp.		1,260		109,507
	Williams-Sonoma Inc.		616		34,662
	Wyndham Destinations Inc.		812		32,878
	Yum China Holdings Inc.		2,289		102,799

					2,518,191



franklintempleton.com	Annual Report	29

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ U.S. Mid Cap Equity ETF(continued)



		Shares		Value
	Common Stocks (continued)
	Consumer Staples 8.5%
	Brown-Forman Corp., A		301	$	15,402
	Brown-Forman Corp., B		1,582		83,498
	Campbell Soup Co.		1,099		41,905
	Church & Dwight Co. Inc.		1,519		108,198
	Clorox Co.		616		98,843
b	Coty Inc., A		2,758		31,717
	Energizer Holdings Inc.		343		15,411
	Flowers Foods Inc.		1,463		31,191
a	Herbalife Ltd.		714		37,835
	Kellogg Co.		1,596		91,579
	Keurig Dr Pepper Inc.		511		14,293
	McCormick & Co. Inc.		679		102,278
	Nu Skin Enterprises Inc., A		399		19,096
a	Sprouts Farmers Market Inc.		889		19,149
	The Hershey Co.		945		108,514
	The Kroger Co.		3,444		84,723

					903,632

	Energy 0.2%
	PBF Energy Inc.		581		18,092

	Financials 10.0%
	Ally Financial Inc.		1,855		50,994
	American National Insurance Co.		56		6,766
	Annaly Capital Management Inc.		6,454		64,475
a	Arch Capital Group Ltd.		2,401		77,600
	Arthur J. Gallagher & Co.		483		37,722
	BGC Partners Inc.		1,379		7,323
a	Brighthouse Financial Inc.		504		18,290
	Cincinnati Financial Corp.		763		65,542
	CNA Financial Corp.		189		8,193
a	Credit Acceptance Corp.		77		34,799
	Discover Financial Services		1,428		101,617
	Evercore Inc.		168		15,288
	Everest Re Group Ltd.		294		63,492
	FactSet Research Systems Inc.		238		59,088
	First American Financial Corp.		637		32,806
	Lazard Ltd., A		749		27,069
	Legg Mason Inc.		469		12,837
	MarketAxess Holdings Inc.		175		43,064
	Mercury General Corp.		168		8,412
	Nasdaq Inc.		735		64,305
	Navient Corp.		1,148		13,282
	Prosperity Bancshares Inc.		392		27,072
	Santander Consumer USA Holdings Inc.		742		15,678
	SEI Investments Co.		1,071		55,960
	Torchmark Corp.		616		50,481
	Unum Group		1,463		49,493
	W.R. Berkley Corp.		574		48,629

					1,060,277

	Health Care 9.8%
a	Acadia Healthcare Co. Inc.		462		13,541
a	Align Technology Inc.		378		107,477
a	Cerner Corp.		1,764		100,918
a	Covetrus Inc.		394		12,549
a	Edwards Lifesciences Corp.		630		120,538
	Encompass Health Corp.		581		33,930



30	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ U.S. Mid Cap Equity ETF(continued)



		Shares		Value
	Common Stocks (continued)
	Health Care (continued)
a	Henry Schein Inc.		987	$	59,329
a	IDEXX Laboratories Inc.		504		112,694
a	Masimo Corp.		210		29,039
a	Mednax Inc.		581		15,786
a	Mettler-Toledo International Inc.		161		116,403
a	Molina Healthcare Inc.		168		23,849
a	United Therapeutics Corp.		294		34,507
	Universal Health Services Inc., B		609		81,466
a	Varian Medical Systems Inc.		518		73,411
a	Waters Corp.		434		109,242

					1,044,679

	Industrials 17.3%
	Air Lease Corp.		539		18,515
	Allegion PLC		574		52,067
	Allison Transmission Holdings Inc.		553		24,841
	American Airlines Group Inc.		2,506		79,590
	BWX Technologies Inc.		532		26,377
	C.H. Robinson Worldwide Inc.		910		79,161
	Cintas Corp.		497		100,449
	Copa Holdings SA		189		15,235
	Cummins Inc.		679		107,194
	Donaldson Co. Inc.		777		38,897
	Equifax Inc.		672		79,632
	Expeditors International of Washington Inc.		1,085		82,351
	Fastenal Co.		1,722		110,742
	Fortive Corp.		1,337		112,161
	Graco Inc.		1,127		55,809
	Hubbell Inc., B		322		37,989
	KAR Auction Services Inc.		665		34,121
	Landstar System Inc.		168		18,377
	Lennox International Inc.		217		57,375
	ManpowerGroup Inc.		427		35,309
	MSC Industrial Direct Co. Inc., A		308		25,475
	Nielsen Holdings PLC		2,303		54,512
	Old Dominion Freight Line Inc.		420		60,644
	Robert Half International Inc.		945		61,576
	Rockwell Automation Inc.		588		103,170
	Rollins Inc.		1,092		45,449
	Schneider National Inc., B		238		5,010
	Toro Co.		721		49,634
a	United Continental Holdings Inc.		651		51,937
	W.W. Grainger Inc.		308		92,686
a	WABCO Holdings Inc.		147		19,379
	Watsco Inc.		217		31,077
	Xylem Inc.		889		70,266

					1,837,007

	Information Technology 14.9%
a	Aspen Technology Inc.		196		20,435
a	Black Knight Inc.		686		37,387
	Booz Allen Hamilton Holding Corp.		1,078		62,675
a	Cadence Design Systems Inc.		1,841		116,922
	CDW Corp.		1,001		96,466
a	F5 Networks Inc.		497		77,994
a	Fair Isaac Corp.		126		34,225
	Genpact Ltd.		819		28,812
	Jack Henry & Associates Inc.		525		72,839



franklintempleton.com	Annual Report	31

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ U.S. Mid Cap Equity ETF(continued)



		Shares		Value
	Common Stocks (continued)
	Information Technology (continued)
	Juniper Networks Inc.		1,932	$	51,140
	KLA-Tencor Corp.		966		115,350
	Lam Research Corp.		420		75,184
a	Manhattan Associates Inc.		469		25,847
	Monolithic Power Systems		175		23,711
	National Instruments Corp.		749		33,226
	NetApp Inc.		1,526		105,813
	Paychex Inc.		1,442		115,648
	Pegasystems Inc.		147		9,555
a	Red Hat Inc.		574		104,870
a	Synopsys Inc.		875		100,756
	Ubiquiti Networks Inc.		84		12,576
	Western Digital Corp.		791		38,015
	Western Union Co.		2,709		50,035
	Xerox Corp.		819		26,192
	Xilinx Inc.		1,106		140,230

					1,575,903

	Materials 2.0%
	Ardagh Group SA		63		819
	Avery Dennison Corp.		539		60,907
a	Crown Holdings Inc.		742		40,491
	NewMarket Corp.		42		18,210
	RPM International Inc.		805		46,722
	Sealed Air Corp.		672		30,952
	The Chemours Co. LLC		518		19,249

					217,350

	Real Estate 7.2%
	Alexandria Real Estate Equities Inc.		602		85,821
	Apple Hospitality REIT Inc.		1,309		21,337
	Coresite Realty Corp.		175		18,729
	EPR Properties		497		38,219
	Equity Lifestyle Properties Inc.		357		40,805
	Essex Property Trust Inc.		392		113,382
	Federal Realty Investment Trust		350		48,247
	Highwoods Properties Inc.		616		28,816
	Hospitality Properties Trust		1,029		27,073
	Host Hotels & Resorts Inc.		2,968		56,095
	Lamar Advertising Co., A		574		45,495
	National Retail Properties Inc.		1,141		63,200
	OMEGA Healthcare Investors Inc.		518		19,762
	Realogy Holdings Corp.		322		3,671
	Realty Income Corp.		1,596		117,402
	Retail Properties of America Inc., A		882		10,752
	Retail Value Inc.		28		873
	Senior Housing Properties Trust		1,792		21,110

					760,789

	Utilities 3.0%
	Ameren Corp.		679		49,941
	Consolidated Edison Inc.		1,274		108,048
	Entergy Corp.		1,064		101,750
	PPL Corp.		1,918		60,877

					320,616

	Total Investments before Short Term Investments (Cost $9,678,602)				10,593,256



32	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ U.S. Mid Cap Equity ETF(continued)



		Shares		Value
	Short Term Investments (Cost $27,777) 0.3%
	Investments from Cash Collateral Received for Loaned Securities 0.3%
	Money Market Funds 0.3%
c,d	Institutional Fiduciary Trust Money Market Portfolio, 2.10%		27,777	$	27,777

	Total Investments (Cost $9,706,379) 100.1%				10,621,033
	Other Assets, less Liabilities (0.1)%				(9,026	)

	Net Assets 100.0%			$	10,612,007

See Abbreviations on page 56.

^aNon-income producing.

^bA portion or all of the security is on loan at March 31, 2019. See Note 1(c).

^cSee Note 3(c) regarding investments in affiliated management investment companies.

^dThe rate shown is the annualizedseven-day effective yield at period end.



franklintempleton.com	Annual Report	33

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin LibertyQ U.S. Small Cap Equity ETF



	Year Ended March 31,

	2019			2018^a

Per share operating performance (for a share outstanding throughout the year)

Net asset value, beginning of year	$	26.66		$	25.36


Income from investment operations^b:

Net investment income^c		0.47			0.33

Net realized and unrealized gains (losses)		0.87			1.27


Total from investment operations		1.34			1.60


Less distributions from net investment income		(0.34	)		(0.30	)


Net asset value, end of year	$	27.66		$	26.66


Total return^d		5.05%			6.34%

Ratios to average net assets^e

Expenses before waiver and payments by affiliates		0.35%			1.15%^f

Expenses net of waiver and payments by affiliates		0.35%			0.35%^f

Net investment income		1.69%			1.40%

Supplemental data

Net assets, end of year (000’s)		$17,979			$2,666

Portfolio turnover rate^g		22.17%			23.99%

^aFor the period April 26, 2017 (commencement of operations) to March 31, 2018.

^cBased on average daily shares outstanding.

^eRatios are annualized for periods less than one year.

^fEffective December 1, 2017, the Fund replaced the prior fee structure with a unified management fee. See Note 3(a).

^gPortfolio turnover rate excludes the value of portfolio securities received or delivered as a result of processing capital share transactions in Creation Units, if any.



34	Annual Report \| The accompanying notes are an integral part of these financial statements.	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2019

Franklin LibertyQ U.S. Small Cap Equity ETF



			Shares		Value
		Common Stocks 99.8%
		Communication Services 5.3%
		AMC Entertainment Holdings Inc., A		1,248	$	18,533
a		Cardlytics Inc.		91		1,505
a		Care.com Inc.		546		10,789
a	��	CarGurus Inc.		1,196		47,912
		Cogent Communications Holdings Inc.		1,300		70,525
		Entravision Communications Corp., A		1,703		5,518
		Gannett Co. Inc.		4,134		43,572
a		Liberty Latin America Ltd.		2,626		51,076
a		Liberty Latin America Ltd., A		1,053		20,365
		Marcus Corp.		650		26,032
		Meredith Corp.		1,274		70,401
		National CineMedia Inc.		2,340		16,497
		New Media Investment Group Inc.		2,470		25,935
a		Rosetta Stone Inc.		559		12,214
		Scholastic Corp.		1,040		41,350
		Sinclair Broadcast Group Inc., A		1,508		58,028
		Spok Holdings Inc.		559		7,614
		The New York Times Co., A		4,472		146,905
a		Travelzoo		104		1,394
a		TrueCar Inc.		1,339		8,891
a		Vonage Holdings Corp.		6,656		66,826
a		WideOpenWest Inc.		858		7,808
		World Wrestling Entertainment Inc.		1,235		107,173
a		Yelp Inc.		2,574		88,803

						955,666

		Consumer Discretionary 26.4%
		Dine Brands Global Inc.		598		54,591
a		1-800-FLOWERS.Com Inc.		936		17,063
		Aaron’s Inc.		1,014		53,336
		Abercrombie & Fitch Co., A		2,782		76,255
		Acushnet Holdings Corp.		1,040		24,066
a		Adtalem Global Education Inc.		1,755		81,292
a		America’sCar-Mart Inc.		208		18,999
		American Eagle Outfitters Inc.		5,915		131,136
a		American Public Education Inc.		468		14,096
a		Asbury Automotive Group Inc.		780		54,101
a		Ascena Retail Group Inc.		5,954		6,430
a		At Home Group Inc.		910		16,253
a		Barnes & Noble Education Inc.		650		2,730
		Barnes & Noble Inc.		1,963		10,659
		Bassett Furniture Industries Inc.		351		5,760
		Bed Bath & Beyond Inc.		3,601		61,181
a		Belmond Ltd., A		2,665		66,438
		Big 5 Sporting Goods Corp.		767		2,439
		Big Lots Inc.		1,794		68,208
		BJ’s Restaurants Inc.		715		33,805
		Bloomin’ Brands Inc.		3,666		74,970
		Brinker International Inc.		949		42,117
b		Buckle Inc.		1,131		21,172
		Caleres Inc.		1,573		38,837
		Callaway Golf Co.		2,158		34,377
		Camping World Holdings Inc., A		1,053		14,647
a		Career Education Corp.		2,171		35,865
a		Carrols Restaurant Group Inc.		533		5,314
		Chico’s FAS Inc.		4,849		20,705
a		Chuy’s Holdings Inc.		663		15,097
		Citi Trends Inc.		442		8,535



franklintempleton.com	Annual Report	35

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ U.S. Small Cap Equity ETF(continued)



		Shares		Value
	Common Stocks (continued)
	Consumer Discretionary (continued)
	Cooper Tire & Rubber Co.		1,443	$	43,131
	Cracker Barrel Old Country Store Inc.		806		130,258
a	Crocs Inc.		1,976		50,882
	Dana Inc.		3,679		65,266
	Dave & Buster’s Entertainment Inc.		1,443		71,962
a	Deckers Outdoor Corp.		1,079		158,602
a	Del Frisco’s Restaurant Group Inc.		910		5,833
a	Denny’s Corp.		2,340		42,939
b	Dillard’s Inc., A		377		27,152
a	Dorman Products Inc.		936		82,452
a	Duluth Holdings Inc.		364		8,678
a	El Pollo Loco Holdings Inc.		702		9,133
	Escalade Inc.		351		3,921
	Ethan Allen Interiors Inc.		1,001		19,149
a	Etsy Inc.		2,730		183,511
a	Fiesta Restaurant Group Inc.		936		12,271
a	Five Below Inc.		1,755		218,059
	Flexsteel Industries Inc.		247		5,728
a	Francesca’s Holdings Corp.		1,222		827
b	GameStop Corp., A		1,716		17,435
a	Genesco Inc.		780		35,529
	Group 1 Automotive Inc.		637		41,214
	Guess? Inc.		2,093		41,023
	Hamilton Beach Brands Holding Co., A		182		3,906
	Haverty Furniture Cos. Inc.		832		18,204
a	Helen of Troy Ltd.		637		73,867
a	Hibbett Sports Inc.		663		15,123
	Hooker Furniture Corp.		325		9,370
	International Speedway Corp., A		572		24,956
a	iRobot Corp.		819		96,388
b	J. Jill Inc.		533		2,926
	Jack in the Box Inc.		949		76,926
	Johnson Outdoors Inc., A		182		12,988
a	K12 Inc.		624		21,297
a	Kirkland’s Inc.		481		3,381
	La-Z-Boy Inc.		1,560		51,464
a	Lands’ End Inc.		234		3,887
	LCI Industries		754		57,922
a	LGI Homes Inc.		429		25,843
	Lifetime Brands Inc.		442		4,177
	Lithia Motors Inc.		533		49,436
a	Malibu Boats Inc., A		572		22,640
	Marine Products Corp.		260		3,502
a	Monarch Casino & Resort Inc.		273		11,990
	Monro Inc.		1,066		92,230
	Movado Group Inc.		585		21,282
a	Nautilus Inc.		975		5,421
	Office Depot Inc.		17,524		63,612
a	Ollie’s Bargain Outlet Holdings Inc.		1,742		148,645
	Oxford Industries Inc.		676		50,876
b	Papa John’s International Inc.		702		37,171
	PetMed Express Inc.		767		17,472
a	Potbelly Corp.		663		5,642
	Red Rock Resorts Inc., A		1,625		42,006
a	Regis Corp.		923		18,155
a	Rent-A-Center Inc.		1,560		32,557
	Rocky Brands Inc.		169		4,049



36	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ U.S. Small Cap Equity ETF(continued)



		Shares		Value
	Common Stocks (continued)
	Consumer Discretionary (continued)
	RTW RetailWinds Inc.		793	$	1,903
	Ruth’s Hospitality Group Inc.		975		24,950
a	Sally Beauty Holdings Inc.		3,302		60,790
	Shoe Carnival Inc.		429		14,599
	Shutterstock Inc.		442		20,610
	Signet Jewelers Ltd.		1,287		34,955
a	Sleep Number Corp.		1,235		58,045
	Sonic Automotive Inc.		871		12,900
a,b	Sonos Inc.		234		2,408
a	Sportsman’s Warehouse Holdings Inc.		1,391		6,677
a	Stamps.com Inc.		598		48,683
	Standard Motor Products Inc.		728		35,745
	Steven Madden Ltd.		2,912		98,542
	Strategic Education Inc.		832		109,250
	Sturm Ruger & Co. Inc.		585		31,017
	Superior Group of Cos. Inc.		299		4,969
	Tailored Brands Inc.		1,781		13,963
	Tenneco Inc., A		1,664		36,874
	Texas Roadhouse Inc., A		2,795		173,821
	The Cato Corp., A		819		12,269
	The Cheesecake Factory Inc.		1,859		90,942
	The Children’s Place Inc.		611		59,438
a	The Container Store Group Inc.		572		5,034
a	The Habit Restaurants Inc., A		793		8,580
	Tile Shop Holdings Inc.		1,599		9,050
	Tilly’s Inc., A		611		6,800
a	Town Sports International Holdings Inc.		338		1,609
	Tupperware Brands Corp.		1,404		35,914
a	Vera Bradley Inc.		780		10,335
	Weyco Group Inc.		234		7,245
	Wingstop Inc.		429		32,617
	Winmark Corp.		78		14,710
	Wolverine World Wide Inc.		3,432		122,625
a	Zumiez Inc.		637		15,855

					4,738,464

	Consumer Staples 6.0%
b	B&G Foods Inc., A		1,898		46,349
a	Boston Beer Inc., A		338		99,619
a	Central Garden & Pet Co.		286		7,310
a	Central Garden & Pet Co., A		1,053		24,482
	Coca-Cola Consolidated Inc.		156		44,901
	Dean Foods Co.		3,042		9,217
a	Farmer Brothers Co.		286		5,723
	Ingles Markets Inc., A		494		13,644
	Inter Parfums Inc.		559		42,411
	J & J Snack Foods Corp.		559		88,792
	John B. Sanfilippo & Son Inc.		286		20,555
	Lancaster Colony Corp.		611		95,738
	Medifast Inc.		429		54,719
	National Beverage Corp.		429		24,766
a	Natural Grocers by Vitamin Cottage Inc.		286		3,418
	Natural Health Trends Corp.		208		2,696
a	Natures Sunshine Products Inc.		299		2,778
a	Performance Food Group Co.		3,185		126,253
	PriceSmart Inc.		832		48,988
	Sanderson Farms Inc.		611		80,554
a	Smart & Final Stores Inc.		663		3,275



franklintempleton.com	Annual Report	37

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ U.S. Small Cap Equity ETF(continued)



		Shares		Value
	Common Stocks (continued)
	Consumer Staples (continued)
a	The Chefs’ Warehouse Inc.		650	$	20,183
	Tootsie Roll Industries Inc.		254		9,474
	Turning Point Brands Inc.		182		8,388
	Universal Corp.		793		45,701
	Vector Group Ltd.		3,172		34,226
	Village Super Market Inc., A		351		9,593
	WD-40 Co.		520		88,109
	Weis Markets Inc.		377		15,385

					1,077,247

	Energy 0.3%
a	CONSOL Mining Corp.		689		23,577
a	FTS International Inc.		624		6,240
	Liberty Oilfield Services Inc., A		754		11,604
a	Renewable Energy Group Inc.		806		17,700
a	SilverBow Resources Inc.		169		3,887

					63,008

	Financials 8.9%
	1st Source Corp.		520		23,353
	Ames National Corp.		286		7,839
	Apollo Commercial Finance Inc.		3,367		61,279
	Arbor Realty Trust Inc.		1,599		20,739
	Auburn National Bancorp Inc.		52		2,050
	BancFirst Corp.		559		29,152
	Banco Latinoamericano de Comercio Exterior SA		494		9,840
	Bank of Marin Bancorp.		351		14,282
	Capitol Federal Financial Inc.		3,523		47,032
	Capstead Mortgage Corp.		2,964		25,461
	Citizens & Northern Corp.		338		8,464
a	Citizens Inc., A		1,612		10,752
	Cohen & Steers Inc.		689		29,124
	Colony Credit Real Estate Inc., A		2,184		34,201
	Community Bank System Inc.		1,638		97,903
	Crawford & Co., B		377		3,442
	Diamond Hill Investment Group Inc.		104		14,560
	Donegal Group Inc.		299		4,022
	Dynex Capital Inc.		1,859		11,321
	EMC Insurance Group Inc.		286		9,118
a	Essent Group Ltd.		3,510		152,509
	Exantas Capital Corp.		689		7,324
a	EZCORP Inc., A		884		8,239
	FBL Financial Group Inc., A		325		20,384
	Federated Investors Inc., B		2,834		83,065
	Financial Institutions Inc.		559		15,194
	First Bancorp Inc.		286		7,127
	First Citizens Bancorp		390		8,514
	First Commonwealth Financial Corp.		3,341		42,097
	FirstCash Inc.		923		79,840
a	Genworth Financial Inc., A		7,774		29,774
	Greene County Bancorp Inc.		91		2,763
	Heritage Commerce Corp.		1,053		12,741
	Heritage Financial Corp.		975		29,387
	Horace Mann Educators Corp.		1,534		54,012
	Invesco Mortgage Capital		3,328		52,582
	James River Group Holdings Ltd.		689		27,615
	Kingstone Cos. Inc.		260		3,832
	LCNB Corp.		286		4,905



38	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ U.S. Small Cap Equity ETF(continued)



		Shares		Value
	Common Stocks (continued)
	Financials (continued)
	Macatawa Bancorp		741	$	7,366
	Maiden Holdings Ltd.		2,197		1,632
	Middlefield Banc Corp.		65		2,679
	Midwestone Financial Group Inc.		325		8,856
	National Western Life Group Inc., A		91		23,885
	Navigators Group Inc.		325		22,708
	Nelnet Inc., A		598		32,932
	Northfield Bancorp Inc.		1,443		20,058
	Northwest Bancshares Inc.		3,068		52,064
	Norwood Financial Corp.		130		4,009
a	Ocwen Financial Corp.		1,703		3,099
	Ohio Valley Banc Corp.		130		4,700
a	On Deck Capital Inc.		1,131		6,130
	Penns Woods Bancorp Inc.		143		5,877
	People’s Utah Bancorp		364		9,599
	Premier Financial Bancorp Inc.		442		6,944
	Protective Insurance Corp., B		325		6,019
	Provident Financial Services Inc.		2,275		58,900
	Pzena Investment Management Inc., A		533		4,312
	Ready Capital Corp.		468		6,866
a	Regional Management Corp.		390		9,524
	Silvercrest Asset Management Group Inc., A		273		3,890
	Southern Missouri Bancorp Inc.		104		3,203
	Stewart Information Services Corp.		559		23,864
	Territorial Bancorp Inc.		286		7,696
	Tompkins Financial Corp.		416		31,645
	TrustCo Bank Corp. NY		2,899		22,496
	United Fire Group Inc.		689		30,116
	Universal Insurance Holdings Inc.		1,027		31,837
	Value Line Inc.		39		963
	West Bancorp		377		7,796
	Westwood Holdings Group Inc.		312		11,004
a	World Acceptance Corp.		195		22,840

					1,601,347

	Health Care 10.8%
a	AAC Holdings Inc.		442		813
a	Addus Homecare Corp.		273		17,360
a	Amedisys Inc.		1,027		126,588
a	AMN Healthcare Services Inc.		1,469		69,175
a	AngioDynamics Inc.		819		18,722
a	Aquestive Therapeutics Inc.		65		449
a	AtriCure Inc.		1,053		28,210
	Atrion Corp.		52		45,691
a	Biospecifics Technologies Corp.		169		10,534
a	Cardiovascular Systems Inc.		1,053		40,709
a	Community Health Systems Inc.		2,704		10,086
	CONMED Corp.		832		69,206
a	Corcept Therapeutics Inc.		3,718		43,649
a	CorVel Corp.		273		17,811
a	Cross Country Healthcare Inc.		793		5,575
a	Cutera Inc.		494		8,724
a	Eagle Pharmaceuticals Inc.		247		12,471
a	Enanta Pharmaceuticals Inc.		455		43,462
a	Fonar Corp.		169		3,459
a	Genomic Health Inc.		754		52,818
a	Glaukos Corp.		533		41,771



franklintempleton.com	Annual Report	39

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ U.S. Small Cap Equity ETF(continued)



		Shares		Value
	Common Stocks (continued)
	Health Care (continued)
a	Globus Medical Inc., A		2,691	$	132,962
a	Haemonetics Corp.		1,170		102,352
a	Harvard Bioscience Inc.		819		3,530
a	Heska Corp.		182		15,492
a	Inogen Inc.		481		45,873
a	iRadimed Corp.		78		2,191
	LeMaitre Vascular Inc.		533		16,523
a	LHC Group Inc.		936		103,765
	Luminex Corp.		1,222		28,118
a	Medidata Solutions Inc.		1,326		97,116
	Meridian Bioscience Inc.		1,573		27,701
a	Merit Medical Systems Inc.		1,586		98,062
a	Myriad Genetics Inc.		2,054		68,193
	National Healthcare Corp.		416		31,566
	National Research Corp., A		390		15,054
a	NextGen Healthcare Inc.		1,638		27,568
a	NuVasive Inc.		1,417		80,471
a	Orthofix International NV		637		35,933
	Patterson Cos. Inc.		2,015		44,028
	Phibro Animal Health Corp.		637		21,021
a	Prestige Consumer Healthcare Inc.		1,469		43,938
a	Quorum Health Corp.		481		673
a	SI-BONE Inc.		130		2,449
	Simulations Plus Inc.		338		7,135
a	STAAR Surgical Co.		1,235		42,225
a	Supernus Pharmaceuticals Inc.		1,729		60,584
a	Tactile Systems Technology Inc.		468		24,673
	U.S. Physical Therapy Inc.		364		38,231
	Utah Medical Products Inc.		117		10,325
a	Vanda Pharmaceuticals Inc.		780		14,352
a	Vocera Communications Inc.		936		29,606

					1,938,993

	Industrials 16.2%
	ABM Industries Inc.		2,119		77,026
a	Advanced Disposal Services Inc.		1,079		30,212
	Aircastle Ltd.		1,625		32,890
	Alamo Group Inc.		273		27,284
	Allegiant Travel Co.		416		53,859
	Allied Motion Technologies Inc.		182		6,257
	Altra Industrial Motion Corp.		1,274		39,558
	Applied Industrial Technologies Inc.		1,482		88,135
a	Axon Enterprise Inc.		1,261		68,611
	BG Staffing Inc.		299		6,530
	Brady Corp., A		1,664		77,226
a	Cimpress NV		728		58,335
	CompX International Inc.		52		761
a	Covenant Transportation Group Inc., A		381		7,231
	Deluxe Corp.		1,859		81,275
	Douglas Dynamics Inc.		624		23,756
	Ennis Inc.		832		17,272
	EnPro Industries Inc.		624		40,217
	Exponent Inc.		1,625		93,795
	Forrester Research Inc.		390		18,856
	Forward Air Corp.		1,144		74,051
a	Foundation Building Materials Inc.		429		4,221
a	Franklin Covey Co.		312		7,894
a	General Finance Corp.		221		2,062



40	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ U.S. Small Cap Equity ETF(continued)



		Shares		Value
	Common Stocks (continued)
	Industrials (continued)
	Global Brass & Copper Holdings Inc.		598	$	20,595
	Hawaiian Holdings Inc.		1,534		40,267
	Healthcare Services Group Inc.		2,210		72,908
	Heartland Express Inc.		715		13,785
	Heidrick & Struggles International Inc.		702		26,908
a	Heritage-Crystal Clean Inc.		507		13,917
	Herman Miller Inc.		2,028		71,345
	Hillenbrand Inc.		2,015		83,683
	HNI Corp.		1,508		54,725
	Hyster-Yale Materials Handling Inc.		312		19,456
	ICF International Inc.		689		52,419
	Insperity Inc.		1,456		180,049
	Interface Inc.		1,755		26,887
	Kadant Inc.		364		32,017
	Kaman Corp., A		858		50,141
	Kelly Services Inc., A		1,040		22,942
	Kforce Inc.		936		32,872
	Kimball International Inc., B		1,170		16,544
	Knoll Inc.		1,612		30,483
	Korn Ferry		1,911		85,575
a	Lawson Products Inc.		247		7,746
	Lindsay Corp.		325		31,457
	LSC Communications Inc.		988		6,452
	Maxar Technologies Inc.		858		3,449
	McGrath RentCorp		767		43,389
	Miller Industries Inc.		286		8,823
	Mobile Mini Inc.		1,573		53,388
	Moog Inc., A		962		83,646
	MSA Safety Inc.		1,131		116,945
	National Presto Industries Inc.		156		16,934
	Omega Flex Inc.		104		7,883
a	P.A.M. Transportation Services Inc.		52		2,545
	Pitney Bowes Inc.		4,290		29,472
	Preformed Line Products Co.		91		4,831
	Quad/Graphics Inc.		949		11,293
	Resources Connection Inc.		1,170		19,352
	Rush Enterprises Inc., B		117		4,859
a	SAIA Inc.		897		54,807
	Simpson Manufacturing Co. Inc.		1,339		79,363
	Standex International Corp.		377		27,672
	Steelcase Inc., A		3,094		45,018
	Systemax Inc.		273		6,181
	Tennant Co.		572		35,515
a	Trex Co. Inc.		1,807		111,167
	UniFirst Corp.		468		71,838
	Universal Logistics Holdings Inc.		260		5,117
a	US Xpress Enterprises Inc., A		442		2,922
a	USA Truck Inc.		182		2,628
a	Vicor Corp.		364		11,291
	Watts Water Technologies Inc., A		780		63,040
	Werner Enterprises Inc.		1,625		55,494
a	Willdan Group Inc.		234		8,674

					2,918,023

	Information Technology 12.9%
a	A10 Networks Inc.		806		5,715
	ADTRAN Inc.		1,222		16,741
a	Aerohive Networks Inc.		533		2,414



franklintempleton.com	Annual Report	41

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ U.S. Small Cap Equity ETF(continued)



		Shares		Value
	Common Stocks (continued)
	Information Technology (continued)
a	Alarm.com Holdings Inc.		689	$	44,716
a	Altair Engineering Inc.		650		23,926
	American Software Inc., A		897		10,719
a	Avid Technology Inc.		936		6,973
	Badger Meter Inc.		845		47,016
	Cabot Microelectronics Corp.		780		87,329
a	CACI International Inc., A		364		66,255
a	Carbonite Inc.		845		20,964
a	Casa Systems Inc.		429		3,561
a	CEVA Inc.		611		16,473
a	ChannelAdvisor Corp.		585		7,125
a	Ciena Corp.		3,627		135,432
a	Cirrus Logic Inc.		1,976		83,130
a	CommVault Systems Inc.		1,469		95,103
a	Control4 Corp.		806		13,646
	CSG Systems International Inc.		1,170		49,491
	Daktronics Inc.		1,118		8,329
a	Dasan Zhone Solutions Inc.		78		834
a	eGain Corp.		403		4,211
a	ePlus Inc.		403		35,682
	EVERTEC Inc.		1,859		51,699
a	Five9 Inc.		1,391		73,487
	Hackett Group Inc.		832		13,146
a	I3 Verticals Inc., A		117		2,810
a	Immersion Corp.		832		7,014
a	Information Services Group Inc.		728		2,715
a	Insight Enterprises Inc.		1,274		70,146
a	Integrated Device Technology Inc.		1,937		94,894
	InterDigital Inc.		1,235		81,485
a	Iteris Inc.		650		2,711
	J2 Global Inc.		1,482		128,341
a	Majesco		100		705
	ManTech International Corp., A		767		41,433
a	MicroStrategy Inc.		286		41,255
a	Mitek Systems Inc.		1,144		14,003
	Monotype Imaging Holdings Inc.		1,469		29,218
a	Napco Security Technologies Inc.		286		5,932
a	New Relic Inc.		1,105		109,063
	NIC Inc.		2,184		37,325
a	Novanta Inc.		819		69,394
	NVE Corp.		156		15,271
a	PAR Technology Corp.		247		6,042
	PC Connection Inc.		390		14,301
	Plantronics Inc.		1,027		47,355
	QAD Inc., A		299		12,878
a	Qualys Inc.		1,105		91,428
a	Rimini Street Inc.		156		780
a	ScanSource Inc.		806		28,871
	Science Applications International Corp.		1,170		90,031
a	Silicon Laboratories Inc.		1,287		104,067
a	SMART Global Holdings Inc.		273		5,242
a	SPS Commerce Inc.		403		42,742
a	Tenable Holdings Inc.		247		7,820
	Travelport Worldwide Ltd.		3,640		57,257
	Vishay Intertechnology Inc.		3,614		66,751
a	Vishay Precision Group Inc.		260		8,895
a	Workiva Inc.		793		40,205



42	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ U.S. Small Cap Equity ETF(continued)



		Shares		Value
	Common Stocks (continued)
	Information Technology (continued)
a	Zix Corp.		2,041	$	14,042

					2,316,539

	Materials 1.5%
	Advanced Emissions Solutions Inc.		455		5,260
	Greif Inc., A		793		32,711
	Greif Inc., B		195		9,534
	Innophos Holdings Inc.		559		16,848
	Myers Industries Inc.		884		15,125
	Quaker Chemical Corp.		195		39,064
	Schweitzer-Mauduit International Inc.		923		35,739
	Sensient Technologies Corp.		1,300		88,127
	Valhi Inc.		572		1,321
	Warrior Met Coal Inc.		1,001		30,431

					274,160

	Real Estate 4.7%
	Agree Realty Corp.		832		57,691
a	Altisource Portfolio Solutions SA		286		6,770
	Cedar Realty Trust Inc.		2,236		7,602
	Chesapeake Lodging Trust		1,911		53,145
	CoreCivic Inc.		2,938		57,144
	First Industrial Realty Trust Inc.		2,977		105,267
	Franklin Street Properties Corp.		3,679		26,452
	Lexington Realty Trust		7,098		64,308
	LTC Properties Inc.		1,196		54,777
	Monmouth Real Estate Investment Corp., A		2,106		27,757
	National Health Investors Inc.		1,053		82,713
	One Liberty Properties Inc.		455		13,195
	PotlatchDeltic Corp.		1,508		56,987
	Preferred Apartment Communities Inc., A		1,495		22,156
	PS Business Parks Inc.		702		110,095
	RE/MAX Holdings Inc., A		663		25,552
	RPT Realty		2,782		33,412
	Universal Health Realty Income Trust		195		14,763
	Urstadt Biddle Properties, A		845		17,441
	Whitestone REIT		897		10,782

					848,009

	Specialty Retail 0.3%
	DSW Inc., A		2,431		54,017

	Utilities 6.5%
	American States Water Co.		1,274		90,836
	Artesian Resources Corp., A		221		8,237
	Avista Corp.		2,054		83,433
	Black Hills Corp.		1,300		96,291
	California Water Service Group		1,534		83,265
	Clearway Energy Inc., A		1,092		15,878
	Clearway Energy Inc., C		1,742		26,322
	El Paso Electric Co.		1,274		74,937
	Global Water Resources Inc.		221		2,168
	IDACORP Inc.		1,417		141,048
	MGE Energy Inc.		1,040		70,689
	New Jersey Resources Corp.		2,483		123,629
	NorthWestern Corp.		1,118		78,718
	PNM Resources Inc.		1,885		89,236
	SJW Group		481		29,697



franklintempleton.com	Annual Report	43

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ U.S. Small Cap Equity ETF(continued)



		Shares		Value
	Common Stocks (continued)
	Utilities (continued)
	Southwest Gas Holdings Inc.		1,521	$	125,117
b	Spark Energy Inc., A		416		3,707
	Unitil Corp.		468		25,351

					1,168,559

	Total Investments before Short Term Investments (Cost $17,526,087)				17,954,032

	Short Term Investments (Cost $102,580) 0.6%
	Investments from Cash Collateral Received for Loaned Securities 0.6%
	Money Market Funds 0.6%
c,d	Institutional Fiduciary Trust Money Market Portfolio, 2.10%		102,580		102,580

	Total Investments (Cost $17,628,667) 100.4%				18,056,612
	Other Assets, less Liabilities (0.4)%				(77,475	)

	Net Assets 100.0%			$	17,979,137

See Abbreviations on page 56.

^aNon-income producing.

^bA portion or all of the security is on loan at March 31, 2019. See Note 1(c).

^cSee Note 3(c) regarding investments in affiliated management investment companies.

^dThe rate shown is the annualizedseven-day effective yield at period end.



44	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Assets and Liabilities

March 31, 2019



	Franklin LibertyQ U.S. Equity ETF		Franklin LibertyQ U.S. Mid Cap Equity ETF		Franklin LibertyQ U.S. Small Cap Equity ETF
Assets:
Investments in securities:
Cost – Unaffiliated issuers	$	963,646,153	$	9,678,602	$	17,526,087
Cost –Non-controlled affiliates (Note 3c)		—		27,777		102,580

Value – Unaffiliated issuers+	$	1,003,974,714	$	10,593,256	$	17,954,032
Value –Non-controlled affiliates (Note 3c)		—		27,777		102,580
Cash		3,224,014		5,979		8,419
Receivables:
Capital shares sold		7,852,439		—		—
Dividends		1,013,050		15,431		22,002
Variation margin on futures contracts		20,166		—		—
Deposits with brokers for:
Futures contracts		144,000		—		—

Total assets		1,016,228,383		10,642,443		18,087,033

Liabilities:
Payables:
Investment securities purchased		7,806,174		—		—
Management fees		167,660		2,659		5,316
Payable upon return of securities loaned		—		27,777		102,580

Total liabilities		7,973,834		30,436		107,896

Net assets, at value	$	1,008,254,549	$	10,612,007	$	17,979,137

Net assets consist of:
Paid-in capital	$	971,536,270	$	9,785,675	$	17,859,219
Total distributable earnings (loss)		36,718,279		826,332		119,918

Net assets, at value	$	1,008,254,549	$	10,612,007	$	17,979,137

Shares outstanding		32,100,000		350,000		650,000

Net asset value per share	$	31.41	$	30.32	$	27.66


+Includes securities loaned	—	27,186	100,237



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	45

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Operations

for the period ended March 31, 2019



	Franklin LibertyQ U.S. Equity ETF			Franklin LibertyQ U.S. Mid Cap Equity ETF			Franklin LibertyQ U.S. Small Cap Equity ETF
Investment income:
Dividends:
Unaffiliated issuers:
Paid in cash	$	8,144,508		$	143,858		$	176,056
Non-cash dividends		—			—			11,642
Interest:
Unaffiliated issuers		4,230			26			36
Interest from securities loaned:
Unaffiliated issuers (net of fees and rebates)		—			—			1,185
Non-Controlled affiliates (Note 3)		3,744			131			1,638

Total investment income		8,152,482			144,015			190,557

Expenses:
Management fees (Note 3a)		830,526			22,148			32,697

Total expenses		830,526			22,148			32,697
Expenses waived/paid by affiliates (Note 3c)		(825	)		(27	)		(286	)

Net expenses		829,701			22,121			32,411

Net investment income		7,322,781			121,894			158,146

Realized and unrealized gains (losses):
Net realized gain (loss) from:
Investments:
Unaffiliated issuers		(5,183,762	)		(95,878	)		(335,223	)
In-kind redemptions		14,880,573			202,792			165,989
Futures contracts		107,458			—			—

Net realized gain (loss)		9,804,269			106,914			(169,234	)

Net change in unrealized appreciation (depreciation) on:
Investments:
Unaffiliated issuers		31,223,334			734,943			302,305
Futures contracts		105,460			—			—

Net change in unrealized appreciation (depreciation)		31,328,794			734,943			302,305

Net realized and unrealized gain (loss)		41,133,063			841,857			133,071

Net increase (decrease) in net assets resulting from operations	$	48,455,844		$	963,751		$	291,217



46	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 LibertyQ U.S. Equity ETF						Franklin LibertyQ U.S. Mid Cap Equity ETF

	Year Ended March 31, 2019			Year Ended March 31, 2018^a			Year Ended March 31, 2019			Year Ended March 31, 2018^a
Increase (decrease) in net assets:
Operations:
Net investment income	$	7,322,781		$	1,994,532		$	121,894		$	56,207
Net realized gain (loss)		9,804,269			2,689,148			106,914			110,228
Net change in unrealized appreciation (depreciation)		31,328,794			9,105,227			734,943			179,711

Net increase (decrease) in net assets resulting from operations		48,455,844			13,788,907			963,751			346,146

Distributions to shareholders (Note 1e)		(6,162,655	)		(1,783,204	)		(106,377	)		(51,110	)

Capital share transactions: (Note 2)		857,635,782			96,319,875			6,984,672			2,474,925

Net increase (decrease) in net assets		899,928,971			108,325,578			7,842,046			2,769,961
Net assets:
Beginning of year		108,325,578			—			2,769,961			—

End of year (Note 1e)	$	1,008,254,549		$	108,325,578		$	10,612,007		$	2,769,961

^aFor the period April 26, 2017 (commencement of operations) to March 31, 2018.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	47

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Changes in Net Assets(continued)



	Franklin LibertyQ U.S. Small Cap Equity ETF

	Year Ended March 31, 2019			Year Ended March 31, 2018^a
Increase (decrease) in net assets:
Operations:
Net investment income	$	158,146		$	42,157
Net realized gain (loss)		(169,234	)		31,351
Net change in unrealized appreciation (depreciation)		302,305			125,640

Net increase (decrease) in net assets resulting from operations		291,217			199,148

Distributions to shareholders (Note 1e)		(121,259	)		(36,568	)

Capital share transactions: (Note 2)		15,142,986			2,503,613

Net increase (decrease) in net assets		15,312,944			2,666,193
Net assets:
Beginning of year		2,666,193			—

End of year (Note 1e)	$	17,979,137		$	2,666,193

^aFor the period April 26, 2017 (commencement of operations) to March 31, 2018.



48	Annual Report \| The accompanying notes are an integral part of these financial statements.	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

Notes to Financial Statements

1. Organization and Significant Accounting Policies

Franklin Templeton ETF Trust (Trust) is registered under the Investment Company Act of 1940 (1940 Act) as anopen-end management investment company, consisting of thirty-eight separate funds, three of which are included in this report (Funds) and applies the specialized accounting and reporting guidance in U.S. Generally Accepted Accounting Principles (U.S. GAAP). 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 as of 4 p.m. Eastern time each day the New York Stock Exchange (NYSE), is open for trading. Under compliance policies and procedures approved by the Trust’s Board of Trustees (the Board), the Funds’ administrator has responsibility for oversight of valuation, 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 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.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 inopen-end mutual funds are valued at the closing NAV.

Certain derivative financial instruments 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.

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 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.

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



franklintempleton.com	Annual Report	49

FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS

1. Organization and Significant Accounting Policies(continued)

b. Derivative Financial Instruments(continued)

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 6 regarding other derivative information.

c. Securities Lending

d. Income Taxes

It is each Fund’s policy to qualify as a regulated investment company under the Internal Revenue Code. Each 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.

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. Estimated expenses are accrued daily. Dividend income is recorded on theex-dividend date. Distributions to shareholders are recorded on theex-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.

Effective during the current reporting period, it is no longer required to present certain line items on the Statements of Changes in Net Assets. The below prior period amounts affected by this change are shown as they were in the prior year Statements of Changes in Net Assets.

For the year ended March 31, 2018, distributions to shareholders were as follows:



	Franklin LibertyQ U.S. Equity ETF			Franklin LibertyQ U.S. Mid Cap Equity ETF			Franklin LibertyQ U.S. Small Cap Equity ETF
Distributions from net investment income:	$	(1,783,204	)	$	(51,110	)	$	(36,568	)



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NOTES TO FINANCIAL STATEMENTS

For the year ended March 31, 2018, undistributed net investment income included in net assets were as follows:



Fund	Undistributed Net Investment Income
Franklin LibertyQ U.S. Equity ETF	$	199,982
Franklin LibertyQ U.S. Mid Cap Equity ETF		4,790
Franklin LibertyQ U.S. Small Cap Equity ETF		4,101

f. Accounting Estimates

g. Guarantees and Indemnifications

2. Shares of Beneficial Interest

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.



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NOTES TO FINANCIAL STATEMENTS

2. Shares of Beneficial Interest(continued)

At March 31, 2019, there were an unlimited number of shares authorized (without par value). Transactions in the Funds’ shares were as follows:



	Franklin LibertyQ U.S. Equity ETF

	Year Ended March 31, 2019						Year Ended March 31, 2018^a

	Shares			Amount			Shares			Amount
Shares sold		31,000,000		$	938,802,146			4,650,000		$	120,156,252
Shares redeemed		(2,700,000	)		(81,166,364	)		(850,000	)		(23,836,377	)

Net increase (decrease)		28,300,000		$	857,635,782			3,800,000		$	96,319,875


	Franklin LibertyQ U.S. Mid Cap Equity ETF

	Year Ended March 31, 2019						Year Ended March 31, 2018^a

	Shares			Amount			Shares			Amount
Shares sold		300,000		$	8,425,958			200,001		$	5,110,374
Shares redeemed		(50,000	)		(1,441,286	)		(100,001	)		(2,635,449	)

Net increase (decrease)		250,000		$	6,984,672			100,000		$	2,474,925


	Franklin LibertyQ U.S. Small Cap Equity ETF

	Year Ended March 31, 2019						Year Ended March 31, 2018^a

	Shares			Amount			Shares			Amount
Shares sold		600,000		$	16,620,824			150,000		$	3,804,019
Shares redeemed		(50,000	)		(1,477,838	)		(50,000	)		(1,300,406	)

Net increase (decrease)		550,000		$	15,142,986			100,000		$	2,503,613

^aFor the period April 26, 2017 (commencement of operations) to March 31, 2018.

3. Transactions with Affiliates



Subsidiary		Affiliation
Franklin Advisers, Inc. (Advisers)		Investment manager
Franklin Advisory Services, LLC (FASL)		Investment manager
Franklin Templeton Services, LLC (FT Services)		Administrative manager
Franklin Templeton Distributors, Inc. (Distributors)		Principal underwriter

a. Management Fees



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NOTES TO FINANCIAL STATEMENTS

Trust or a Fund may be a party and indemnification of the Trustees and officers with respect thereto), and other nonroutine or extraordinary expenses. The fees are based on the daily average net assets of each of the Funds as follows:



		Annualized Fee Rate
Franklin LibertyQ U.S. Equity ETF		0.25%
Franklin LibertyQ U.S. Mid Cap Equity ETF		0.30%
Franklin LibertyQ U.S. Small Cap Equity ETF		0.35%

Prior to February 1, 2019 the Funds paid a unified management fee to Franklin Advisers, Inc.

b. Administrative Fees

c. Investments in Affiliated Management Investment Companies



	Number of Shares Held at Beginning of Year		Gross Additions		Gross Reductions			Number of Shares Held at End of Year		Value at End of Year		Income from Securities Loaned		Realized Gain (Loss)		Net Change in Unrealized Appreciation (Depreciation)

Franklin LibertyQ U.S. Equity ETF
Non-Controlled Affiliates
Institutional Fiduciary Trust Money Market Portfolio 2.10%		5,200		12,047,584		(12,052,784	)		—	$	—	$	3,744	$	—	$	—


Franklin LibertyQ U.S. Mid Cap Equity ETF
Non-Controlled Affiliates
Institutional Fiduciary Trust Money Market Portfolio 2.10%		305,850		956,727		(1,234,800	)		27,777	$	27,777	$	131	$	—	$	—


Franklin LibertyQ U.S. Small Cap Equity ETF
Non-Controlled Affiliates
Institutional Fiduciary Trust Money Market Portfolio 2.10%		12,950		1,525,780		(1,436,150	)		102,580	$	102,580	$	1,638	$	—	$	—



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NOTES TO FINANCIAL STATEMENTS

3. Transactions with Affiliates(continued)

d. Other Affiliated Transactions

At March 31, 2019, the shares of Franklin LibertyQ U.S. Equity ETF were owned by the following entities:



Fund	Shares		Percentage of Outstanding Shares^a
Franklin 529 Portfolios		12,021,719		37.5%
Franklin Conservative Allocation Fund		2,958,738		9.2%
Franklin Growth Allocation Fund		6,249,306		19.5%
Franklin LifeSmart^™ 2020 – 2055 Retirement Target Funds		2,259,994		7.0%
Franklin Moderate Allocation Fund		7,179,629		22.4%

		30,669,386		95.6%

^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, 2019, the capital loss carryforwards were as follows:



	Franklin LibertyQ U.S. Equity ETF		Franklin LibertyQ U.S. Mid Cap Equity ETF		Franklin LibertyQ U.S. Small Cap Equity ETF
Capital loss carryforwards not subject to expiration:
Short term	$	3,709,258	$	67,247	$	219,018
Long term		1,150,711		34,322		90,479

Total capital loss carryforwards	$	4,859,969	$	101,569	$	309,497

The tax character of distributions paid during the years ended March 31, 2019 and 2018, were as follows:



	Franklin LibertyQ U.S. Equity ETF				Franklin LibertyQ U.S. Mid Cap Equity ETF				Franklin LibertyQ U.S. Small Cap Equity ETF

	2019		2018		2019		2018		2019		2018
Distributions paid from ordinary income	$	6,162,655	$	1,783,204	$	106,377	$	51,110	$	121,259	$	36,568

At March 31, 2019, the cost of investments, net unrealized appreciation (depreciation) and undistributed ordinary income for income tax purposes were as follows:



	Franklin LibertyQ U.S. Equity ETF			Franklin LibertyQ U.S. Mid Cap Equity ETF			Franklin LibertyQ U.S. Small Cap Equity ETF
Cost of investments	$	963,698,427		$	9,712,133		$	17,663,864

Unrealized appreciation	$	52,649,061		$	1,233,485		$	1,281,246
Unrealized depreciation		(12,372,774	)		(324,585	)		(888,498	)

Net unrealized appreciation (depreciation)	$	40,276,287		$	908,900		$	392,748

Distributable earnings – undistributed ordinary income	$	1,301,961		$	19,001		$	36,667

Differences between income and/or capital gains as determined on a book basis and a tax basis are primarily due to differing treatment of corporate actions, passive foreign investment company shares and wash sales.



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NOTES TO FINANCIAL STATEMENTS

5. Investment Transactions

Purchases and sales of investments (excluding short term securities andin-kind transactions, if any) for the year ended March 31, 2019, were as follows:



	Franklin LibertyQ U.S. Equity ETF		Franklin LibertyQ U.S. Mid Cap Equity ETF		Franklin LibertyQ U.S. Small Cap Equity ETF
Purchases	$	65,572,010	$	1,759,090	$	2,303,156
Sales	$	62,834,737	$	1,697,294	$	2,056,997

In-kind transactions associated with creation and redemptions for the year ended March 31, 2019, were as follows:



	Franklin LibertyQ U.S. Equity ETF		Franklin LibertyQ U.S. Mid Cap Equity ETF		Franklin LibertyQ U.S. Small Cap Equity ETF
Cost of Securities Received	$	933,674,831	$	8,398,405	$	16,592,842
Value of Securities Delivered^a	$	80,569,024	$	1,423,667	$	1,446,184

^a Realized gains and losses from in-kind redemptions, as shown on the Statement of Operations, are not recognized by the Funds for tax purposes.

At March 31, 2019, in connection with securities lending transactions, certain or all Funds loaned investments and received cash collateral as follows:



	Franklin LibertyQ U.S. Mid Cap Equity ETF		Franklin LibertyQ U.S. Small Cap Equity ETF
Securities lending transactions^a:
Equity investments^b	$	27,777	$	102,580

^a The agreements can be terminated at any time.

^b The 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. Other Derivative Information

At March 31, 2019, the Funds’ investments in derivative contracts are reflected in the Statements of Assets 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 LibertyQ U.S. Equity ETF

Equity Contracts

Variation margin on future contracts

105,460^a

Variation margin on future contracts

—

^aThis amount reflects the cumulative appreciation (depreciation) of futures contracts as reported in the Statement of Investments. Only the variation margin receivable/at year 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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NOTES TO FINANCIAL STATEMENTS

6. Other Derivative Information(continued)

For the year ended March 31, 2019, 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 LibertyQ U.S. Equity ETF

Net realized gain (loss) from:

Net change in unrealized
appreciation
(depreciation) on:

Equity Contracts

Future contracts

107,458

Future contracts

105,460

For the year ended March 31, 2019, the average month end notional amount of futures contracts was $889,107.

See Note 1(b) regarding derivative financial instruments.

7. Fair Value Measurements

•

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.

At March 31, 2019, all of the Funds’ investments in financial instruments carried at fair value were valued using Level 1 inputs.

8. 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
REIT		Real Estate Investment Trust



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Report of Independent Registered Public Accounting Firm

To the Board of Trustees of Franklin Templeton ETF Trust and Shareholders of Franklin LibertyQ U.S. Equity ETF, Franklin LibertyQ U.S. Mid Cap Equity ETF and Franklin LibertyQ U.S. Small Cap Equity ETF

Opinions on the Financial Statements

We have audited the accompanying statements of assets and liabilities, including the statements of investments, of Franklin LibertyQ U.S. Equity ETF, Franklin LibertyQ U.S. Mid Cap Equity ETF and Franklin LibertyQ U.S. Small Cap Equity ETF (the “Funds”) as of March 31, 2019, the related statements of operations for the year ended March 31, 2019, the statements of changes in net assets for the year ended March 31, 2019 and the period April 26, 2017 (commencement of operations) through March 31, 2018, including the related notes, and the financial highlights for each of the periods indicated therein (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of March 31, 2019, and the results of each of their operations for the year ended March 31, 2019, the changes in each of their net assets for the year ended March 31, 2019 and the period April 26, 2017 (commencement of operations) through March 31, 2018, and each of the financial highlights for each of the periods indicated therein in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinions

We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of March 31, 2019 by correspondence with the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinions.

PricewaterhouseCoopers LLP

San Francisco, California

May 20, 2019

We have served as the auditor of one or more investment companies in the Franklin Templeton funds since 1948.



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Tax Information (unaudited)



Franklin LibertyQ U.S. Equity ETF		Franklin LibertyQ U.S. Mid Cap Equity ETF		Franklin LibertyQ U.S. Small Cap Equity ETF
	90.71%		91.94%		83.51%



Franklin LibertyQ U.S. Equity ETF		Franklin LibertyQ U.S. Mid Cap Equity ETF		Franklin LibertyQ U.S. Small Cap Equity ETF
	$6,814,442		$111,914		$112,156

Distributions, including qualified dividend income, paid during calendar year 2019 will be reported to shareholders onForm 1099-DIV bymid-February 2020. Shareholders are advised to check with their tax advisors for information on the treatment of these amounts on their individual income tax returns.



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Board Members and Officers

Independent Board Members



Name, Year of Birth and Address	Position	Length of Time Served	Number of Portfolios in Fund Complex Overseen by Board Member*	Other Directorships Held During at Least the Past 5 Years

Rohit Bhagat (1964) One Franklin Parkway San Mateo, CA 94403-1906	Lead Independent Trustee	Since 2016	39	Zentific Investment Management (hedge fund) (2015-present), Axis Bank (2013-present), AssetMark Financial Holdings, Inc. (investment solutions) (2018-present) and CapFloat Financial Services Pvt., Ltd.(non-banking finance company) (2018-present).

Principal Occupation During at Least the Past 5 Years:
Managing Member, Mukt Capital, LLC (private investment firm) (2014-present); Advisor, Optimal Asset Management (investment technology and advisory services company) (2015-present); andformerly, Chairman, Asia Pacific, BlackRock (2009-2012); Global Chief Operating Officer, Barclays Global Investors (investment management) (2005-2009); and Senior Partner, The Boston Consulting Group (management consulting) (1992-2005).

Anantha Pradeep (1963) One Franklin Parkway San Mateo, CA 94403-1906	Trustee	Since 2016	39	None

Principal Occupation During at Least the Past 5 Years:
Chief Executive Officer, Smilable, Inc. (technology company) (2014-present); Chief Executive Officer, MachineVantage (technology company) (2018-present); Founder and Managing Partner, Consult Meridian, LLC (consulting company) (2009-present); andformerly, Founder, BoardVantage (board portal solutions provider delivering paperless process for boards and leadership) (2000-2002).

Interested Board Members and Officers



Name, Year of Birth and Address	Position	Length of Time Served	Number of Portfolios in Fund Complex Overseen by Board Member*	Other Directorships Held During at Least the Past 5 Years

**Jennifer M. Johnson (1964) One Franklin Parkway San Mateo, CA 94403-1906	Chairperson of the Board and Trustee	Since 2016	46	None

Principal Occupation During at Least the Past 5 Years:
President and Chief Operating Officer, Franklin Resources, Inc.; officer and/or director or trustee, as the case may be, of some of the other subsidiaries of Franklin Resources, Inc. and of four of the investment companies in Franklin Templeton; andformerly, Chief Operating Officer and Executive Vice President, Franklin Resources, Inc. (1994-2015); Executive Vice President of Operations and Technology, Franklin Resources, Inc. (2005-2010); and Senior Vice President, Franklin Resources, Inc. (2003-2005).

Alison E. Baur (1964) One Franklin Parkway San Mateo, CA 94403-1906	Vice President	Since 2016	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Deputy General Counsel, Franklin Templeton; and officer of some of the other subsidiaries of Franklin Resources, Inc. and of 44 of the investment companies in Franklin Templeton.



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Interested Board Members and Officers(continued)



Name, Year of Birth and Address	Position	Length of Time Served	Number of Portfolios in Fund Complex Overseen by Board Member*	Other Directorships Held During at Least the Past 5 Years

Gaston Gardey (1967) One Franklin Parkway San Mateo, CA 94403-1906	Treasurer, Chief Financial Officer and Chief Accounting Officer	Since 2015	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Treasurer, U.S. Fund Administration & Reporting and officer of 28 of the investment companies in Franklin Templeton.

Aliya S. Gordon (1973) One Franklin Parkway San Mateo, CA 94403-1906	Vice President	Since 2016	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Senior Associate General Counsel and officer of 44 of the investment companies in Franklin Templeton.

Steven J. Gray (1955) One Franklin Parkway San Mateo, CA 94403-1906	Vice President	Since 2016	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Senior Associate General Counsel, Franklin Templeton; Vice President, Franklin Templeton Distributors, Inc. and FASA, LLC; and officer of 44 of the investment companies in Franklin Templeton.

Matthew T. Hinkle (1971) One Franklin Parkway San Mateo, CA 94403-1906	Chief Executive Officer – Finance and Administration	Since 2017	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Senior Vice President, Franklin Templeton Services, LLC; officer of 44 of the investment companies in Franklin Templeton; andformerly, Vice President, Global Tax (2012-April 2017) and Treasurer/Assistant Treasurer, Franklin Templeton (2009-2017).

Robert Lim (1948) One Franklin Parkway San Mateo, CA 94403-1906	VicePresident-AML Compliance	Since 2016	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Vice President, Franklin Templeton Companies, LLC; Chief Compliance Officer, Franklin Templeton Distributors, Inc. and Franklin Templeton Investor Services, LLC; and officer of 44 of the investment companies in Franklin Templeton.

Kimberly H. Novotny (1972) 300 S.E. 2nd Street Fort Lauderdale, FL 33301-1923	Vice President	Since 2016	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Associate General Counsel, Franklin Templeton; Vice President and Corporate Secretary, Fiduciary Trust International of the South; Vice President, Templeton Investment Counsel, LLC; Assistant Secretary, Franklin Resources, Inc.; and officer of 44 of the investment companies in Franklin Templeton.



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Interested Board Members and Officers(continued)



Name, Year of Birth and Address	Position	Length of Time Served	Number of Portfolios in Fund Complex Overseen by Board Member*	Other Directorships Held During at Least the Past 5 Years

Patrick O’Connor (1967) One Franklin Parkway San Mateo, CA 94403-1906	President and Chief Executive Officer– Investment Management	Since 2016	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
President and Chief Investment Officer, Franklin Advisory Services, LLC; Senior Vice President, Franklin Advisers, Inc.; officer of two of the investment companies in Franklin Templeton; andformerly, Managing Director, Head of iShares Product Canada, BlackRock (1998-2014).

Robert C. Rosselot (1960) 300 S.E. 2nd Street Fort Lauderdale, FL 33301-1923	Chief Compliance Officer	Since 2016	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Director, Global Compliance, Franklin Templeton; Vice President, Franklin Templeton Companies, LLC; officer of 44 of the investment companies in Franklin Templeton; andformerly, Senior Associate General Counsel, Franklin Templeton (2007-2013); and Secretary and Vice President, Templeton Group of Funds (2004-2013).

Navid J. Tofigh (1972) One Franklin Parkway San Mateo, CA 94403-1906	Vice President and Secretary	Since 2015	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Associate General Counsel and officer of 44 of the investment companies in Franklin Templeton.

Craig S. Tyle (1960) One Franklin Parkway San Mateo, CA 94403-1906	Vice President	Since 2016	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
General Counsel, Executive Vice President and Secretary, Franklin Resources, Inc.; and officer of some of the other subsidiaries of Franklin Resources, Inc. and of 44 of the investment companies in Franklin Templeton.

Lori A. Weber (1964) 300 S.E. 2nd Street Fort Lauderdale, FL 33301-1923	Vice President	Since 2016	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Senior Associate General Counsel, Franklin Templeton; Assistant Secretary, Franklin Resources, Inc.; Vice President and Secretary, Templeton Investment Counsel, LLC; and officer of 44 of the investment companies in Franklin Templeton.

Note 1: Effective May 1, 2018, Susan R. Thompson ceased to be a trustee of the Trust.

Note 2: Officer information is current as of the date of this report. It is possible that after this date, information about officers may change.



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Shareholder Information

Proxy Voting Policies and Procedures

Quarterly Statement of Investments

The Trust files a complete statement of investments with the U.S. Securities and Exchange Commission for the first and third quarters for each fiscal year as an exhibit to its report on Form N-PORT. Shareholders may view the filedForm N-PORT by visiting the Commission’s website at sec.gov. The filed form may also be viewed and copied at the Commission’s Public Reference Room in Washington, DC. Information regarding the operations of the Public Reference Room may be obtained by calling(800) SEC-0330.

Premium/Discount Information



62	Annual Report	franklintempleton.com

To help ensure we provide you with quality service, all calls to and from our service areas are monitored and/or recorded.

ANNUAL REPORT

FRANKLIN TEMPLETON

ETF TRUST

March 31, 2019

LOGO

Franklin Liberty Intermediate Municipal Opportunities ETF

Franklin Liberty Municipal Bond ETF

Franklin Templeton



Contents

Annual Report

Municipal Bond Market Overview			2
Franklin Liberty Intermediate Municipal Opportunities ETF			3
Franklin Liberty Municipal Bond ETF			9
Financial Highlights and Statements of Investments			15
Financial Statements			23
Notes to Financial Statements			26
Report of Independent Registered Public Accounting Firm			33
Tax Information			34
Board Members and Officers			35
Shareholder Information			38

Visitfranklintempleton.com/investor/products/etf/ for fund updates and documents.


Not FDIC Insured		\|		May Lose Value		\|		No Bank Guarantee



franklintempleton.com	Not part of the annual report	1

ANNUAL REPORT

Municipal Bond Market Overview

The financial markets experienced volatility during the12-month reporting period due to trade concerns and geopolitical stress. Equity markets sold off sharply during the fourth quarter of 2018, spurring a flight to perceived quality that benefited high-quality fixed income assets such as municipal bonds and U.S. Treasuries. Stocks quickly reversed course and rallied sharply to start 2019, and municipal bonds performed well in the first quarter of 2019. Overall, the municipal bond market outperformed the corporate bond and U.S. Treasury markets but underperformed the equity markets during the period.

Investment-grade municipal bonds, as measured by the Bloomberg Barclays Municipal Bond Index, posted a +5.38% total return for the period, while U.S. Treasuries, as measured by the Bloomberg Barclays U.S. Treasury Index, posted a +4.22% total return, and investment-grade corporate bonds, as measured by the Bloomberg Barclays U.S. Corporate Bond Index, posted a +4.94% total return.¹ U.S. stocks, as represented by the Standard & Poor’s^® 500 Index, outperformed the fixed income markets with a +9.50% total return.¹

Municipal bonds with intermediate and long maturities generally outperformed bonds with shorter maturities during the12-month period. The best-performing maturity group in the Bloomberg Barclays Municipal Bond Index was the 12–17 year group, which returned +6.50% for the period.¹ High-yield municipal bonds generally outperformed investment-grade municipal bonds, with the Bloomberg Barclays High Yield Municipal Bond Index posting a +8.14% total return, compared with a +5.38% total return for the Bloomberg Barclays Municipal Bond Index.¹

Municipal issuance during the reporting period totaled approximately $349 billion, a 17% decline from total issuance for the preceding12-month period.² Issuance remains diminished as the Tax Cuts and Jobs Act of 2017 eliminated advanced refundings beginning in January 2018. Calendar-year 2018 issuance was approximately $339 billion, which represented a 24% decline from 2017.² The Investment Company Institute reported negative municipal bond fund flows during the fourth quarter of 2018, but flows turned

sharply positive in the first quarter of 2019. Overall, total net municipal bond fund inflows for the12-month period were approximately $20 billion.³In our view, investor demand remains healthy.

The U.S. Federal Reserve (Fed) raised its target range for the federal funds rate by 0.25% at its June, September and December 2018 meetings. The target range stood at 2.25%–2.50% atperiod-end. The Fed also increased the discount rate by 0.25% at all three meetings, to finish the period at 3.00%. The Fed paused at both the January and March 2019 meetings, leaving the discount rate and the target range for the federal funds rate unchanged. Furthermore, the Fed indicated the labor market remains strong, but economic activity has slowed since the fourth quarter of 2018. With market-based inflation measures remaining low in recent months, the market has interpreted the Fed’s recent decisions to mean the Fed will remain on the sidelines and foster economic growth while attempting to achieve its inflation objective.

Atperiod-end, we maintained our positive view of the municipal bond market. We believe municipal bonds continue to be an attractive asset class among fixed income securities, and we intend to follow our disciplined approach of investing to maximize income, while seeking value in the municipal bond market.

The foregoing information reflects our analysis, opinions and portfolio holdings as of March 31, 2019, the end of the reporting period. The way we implement our main investment strategies and the resulting portfolio holdings may change depending on factors such as market and economic conditions. These opinions may not be relied upon as investment advice or an offer for a particular security. The information is not a complete analysis of every aspect of any market, state, industry, security or fund. Statements of fact are from sources considered reliable, but the investment manager makes no representation or warranty as to their completeness or accuracy. Although historical performance is no guarantee of future results, these insights may help you understand our investment management philosophy.

1. Source: Morningstar. Treasuries, if held to maturity, offer a fixed rate of return and a fixed principal value; their interest payments and principal are guaranteed.

2. Source: The Bond Buyer, Thomson Reuters.

3. Source: Investment Company Institute.

See www.franklintempletondatasources.com for additional data provider information.



2	Annual Report	franklintempleton.com

Franklin Liberty Intermediate Municipal Opportunities ETF

This annual report for Franklin Liberty Intermediate Municipal Opportunities ETF covers the fiscal year ended March 31, 2019.

Your Fund’s Goal and Main Investments


Credit Quality Composition*

3/31/2019

Ratings	% of Total Investments
AAA		8.05%
AA		36.75%
A		11.02%
BBB		20.43%
Below Investment Grade		6.63%
Not Rated		17.12%

*Securities, except for those labeled Not Rated, are assigned ratings by one or more Nationally Recognized Statistical Credit Rating Organizations (NRSROs), such as Standard & Poor’s, Moody’s and Fitch, that can be considered by the investment manager as part of its independent securities analysis. When ratings from multiple agencies are available, the highest is used, consistent with the portfolio investment process. Ratings reflect an NRSRO’s opinion of an issuer’s creditworthiness and typically range from AAA (highest) to D (lowest). The Below Investment Grade category consists of bonds rated below BBB-. The Refunded category generally consists of refunded bonds secured by US government or other high-quality securities and not rerated by an NRSRO. The Not Rated category consists of ratable securities that have not been rated by an NRSRO. Cash and equivalents are excluded from this composition.

Performance Overview

For the 12 months under review, the Fund posted cumulative total returns of +4.52% based on market price and +4.99% based on net asset value (NAV). In comparison, the

Bloomberg Barclays Municipal 1-15 Year Index posted a +5.09% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 5.

Investment Strategy

We select securities that we believe will provide the best balance between risk and return within the Fund’s range of allowable investments and we typically use abuy-and-hold strategy. The Fund is an actively managed exchange-traded fund (ETF) that does not seek to replicate the performance of a specified index.


Portfolio Composition

3/31/2019

	% of Total Investments*
General Obligation		26.22%
Hospital & Health Care		18.98%
Tax-Supported		14.88%
Utilities		11.01%
Higher Education		9.26%
Other Revenue		6.24%
Housing		5.12%
Subject to Government Appropriations		3.59%
Transportation		3.28%
Corporate-Backed		1.42%

*Does not include cash and cash equivalents.

1. Dividends are generally subject to state and local taxes, if any. For investors subject to alternative minimum tax, a small portion of Fund dividends may be taxable. Distributions of capital gains are generally taxable. To avoid imposition of 28% backup withholding on all Fund distributions and redemption proceeds, U.S. investors must be properly certified on FormW-9 and non-U.S. investors on FormW-8BEN.

2. Source: Morningstar.

See www.franklintempletondatasources.com for additional data provider information.

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Statement of Investments (SOI). The SOI begins on page 16.



franklintempleton.com	Annual Report	3

FRANKLIN LIBERTY INTERMEDIATE MUNICIPAL OPPORTUNITIES ETF

Manager’s Discussion

During the12-month reporting period, we found value in securities in the seven- to11-year maturity range. Given the Fund’s average maturity cannot exceed 10 years, this represented the longer end of our target universe. The municipal yield curve remains positively sloped and we believe focusing on longer maturities provides us with the best opportunities to achieve our objective of maximizing after tax income for investors. In addition, we were able to find attractive opportunities in the high-yield space; therefore, we selectively added higher-yielding securities to the portfolio, while selling existing positions with lower yields. Similarly, we also improved the earnings potential of the high-grade portion of the portfolio. The Fund will continue to look for opportunities to add high-yielding names with a focus on the seven- to15-year part of the yield curve. The Fund does not use leverage or derivatives. We believe our consistent, disciplined strategy can help our investors achieve high,tax-free income over the long term.

Typically, in declining rate environments, our turnover declines as we maintain exposure to securities that are producing income that exceeds their replacement value in the market. However, when rates rise, our turnover increases as opportunities to purchase securities that have the potential to increase income in the portfolio become available.

Thank you for your participation in Franklin Liberty Intermediate Municipal Opportunities ETF. We look forward to serving your future investment needs.

The foregoing information reflects our analysis, opinions and portfolio holdings as of March 31, 2019, the end of the reporting period. The way we implement our main investment strategies and the resulting portfolio holdings may change depending on factors such as market and economic conditions. These opinions may not be relied upon as investment advice or an offer for a particular security. The information is not a complete analysis of every aspect of any market, state, industry, security or the Fund. Statements of fact are from sources considered reliable, but the investment manager makes no representation or warranty as to their completeness or accuracy. Although historical performance is no guarantee of future results, these insights may help you understand our investment management philosophy.



4	Annual Report	franklintempleton.com

FRANKLIN LIBERTY INTERMEDIATE MUNICIPAL OPPORTUNITIES ETF

Performance Summary as of March 31, 2019

Total return reflects reinvestment of the Fund’s dividends and capital gain distributions, if any, and any unrealized gains or losses. Total returns do not include brokerage commissions that may be payable on secondary market transactions. The performance tables and graph do not reflect any taxes that a shareholder would pay on Fund dividends, capital gain distributions, if any, or any realized gains on the sale of Fund shares.

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (9/5/17), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Performance as of 3/31/19¹

Cumulative Total Return²

Average Annual Total Return²

Based on
NAV³

Based on

market price⁴

Based on
NAV³

Based on

market price⁴

1-Year

+4.99%

+4.52%

+4.99%

+4.52%

Since Inception (8/31/17)

+3.39%

+3.30%

+2.13%

+2.07%



	30-Day Standardized Yield⁶				Taxable Equivalent 30-Day Standardized Yield⁷
Distribution Rate⁵	(with waiver)		(without waiver)		(With Waiver)		(Without Waiver)
2.87%		2.48%		0.65%		4.19%		1.10%

See page 7 for Performance Summary footnotes.



franklintempleton.com	Annual Report	5

FRANKLIN LIBERTY INTERMEDIATE MUNICIPAL OPPORTUNITIES ETF

PERFORMANCE SUMMARY

Total Return Index Comparison for a Hypothetical $10,000 Investment¹

Total return is calculated at net asset value and represents the change in value of an investment over the periods shown. It includes any Fund fees and expenses, and reinvested distributions. The unmanaged index includes reinvestment of any income or distributions. It differs from the Fund in composition and does not pay management fees or expenses. One cannot invest directly in an index.

8/31/17–3/31/19

LOGO

See page 7 for Performance Summary footnotes.



6	Annual Report	franklintempleton.com

FRANKLIN LIBERTY INTERMEDIATE MUNICIPAL OPPORTUNITIES ETF

PERFORMANCE SUMMARY

Distributions(4/1/18–3/31/19)

Net Investment

Income

$0.625196

Total Annual Operating Expenses⁹



With Waiver	Without Waiver
0.30%		1.48%

All investments involve risks, including possible loss of principal. Because municipal bonds are sensitive to interest rate movements, the Fund’s yield and share price will fluctuate with market conditions. Bond prices generally move in the opposite direction of interest rates. Thus, as prices of bonds in the Fund adjust to a rise in interest rates, the Fund’s share price may decline. Changes in the credit rating of a bond, or in the credit rating or financial strength of a bond’s issuer, insurer or guarantor, may affect the bond’s value. The Fund may invest a significant part of its assets in municipal securities that finance similar types of projects, such as utilities, hospitals, higher education and transportation. A change that affects one project would likely affect all similar projects, thereby increasing market risk. The Fund is actively managed but there is no guarantee that the manager’s investment decisions will produce the desired results. The Fund’s prospectus also includes a description of the main investment risks.

ETFs trade like stocks, fluctuate in market value and may trade at prices above or below their net asset value. Brokerage commissions and ETF expenses will reduce returns.

1. The Fund has an expense reduction contractually guaranteed through 7/31/19. Fund investment results reflect the expense reduction; without this reduction, the results would have been lower.

2. Total return calculations represent the cumulative and average annual changes in value of an investment over the periods indicated. Return for less than one year, if any, has not been annualized.

3. Assumes reinvestment of distributions based on net asset value.

4. Assumes reinvestment of distributions based on market price.

5. Distribution rate is based on an annualization of the March dividend and the NAV per share on 3/31/19.

7. Taxable equivalent yield assumes the 2019 maximum federal income tax rate of 37.00% plus 3.8% Medicare tax.

8. Source: Morningstar. Bloomberg Barclays1-15 Year Municipal Bond Index measures the performance of municipal bonds with maturities from one to 17 years. It is a component of the Municipal Bond Index, which is a market value-weighted index engineered for the long-termtax-exempt bond market. To be included in the index, bonds must be fixed rate, have at least one year to final maturity and be rated investment grade(Baa3/BBB- or higher) by at least two of the following agencies: Moody’s, S&P and Fitch.

9. Figures are as stated in the Fund’s current prospectus and may differ from the expense ratios disclosed in the Your Fund’s Expenses and Financial Highlights sections in this report. In periods of market volatility, assets may decline significantly, causing total annual Fund operating expenses to become higher than the figures shown.

See www.franklintempletondatasources.com for additional data provider information.



franklintempleton.com	Annual Report	7

FRANKLIN LIBERTY INTERMEDIATE MUNICIPAL OPPORTUNITIES ETF

Your Fund’s Expenses

Actual Fund Expenses

The table below provides information about actual account values and actual expenses in the columns under the heading “Actual.” In these columns the Fund’s actual return, which includes the effect of Fund expenses, is used to calculate the “Ending Account Value.” You can estimate the expenses you paid during the period by following these steps (of course, your account value and expenses will differ from those in this illustration): Divide your account value by $1,000 (if your account had an $8,600 value, then $8,600÷ $1,000 = 8.6). Then multiply the result by the number in the row under the headings “Actual” and “Expenses Paid During Period” (if Actual Expenses Paid During Period were $7.50, then 8.6× $7.50 = $64.50). In this illustration, the actual expenses paid this period are $64.50.

Hypothetical Example for Comparison with Other Funds

Under the heading “Hypothetical” in the table, information is provided about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. This information may not be used to estimate the actual ending account balance or expenses you paid for the period, but it can help you compare ongoing costs of investing in the Fund with those of other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.


		Actual (actual return after expenses)				Hypothetical (5% annual return before expenses)

Beginning Account Value 10/1/18		Ending Account Value 3/31/19		Expenses Paid During Period 10/1/18–3/31/19^1,2		Ending Account Value 3/31/19		Expenses Paid During Period 10/1/18–3/31/19^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	1,042.90	$	1.53	$	1,023.44	$	1.51		0.30	%

1. Expenses are equal to the annualized expense ratio for the six-month period as indicated above—in the far right column—multiplied by the simple average account value over the period indicated, and then multiplied by 182/365 to reflect the one-half year period.

2. Reflects expenses after fee waivers and expense reimbursements.



8	Annual Report	franklintempleton.com

Franklin Liberty Municipal Bond ETF

This annual report for Franklin Liberty Municipal Bond ETF covers the fiscal year ended March 31, 2019.

Your Fund’s Goal and Main Investments

The Fund seeks to provide a high level of current income that is exempt from federal income taxes by investing at least 80% of its net assets in municipal securities that pay interest free from such taxes.¹ The Fund seeks to maintain a dollar-weighted average portfolio maturity (the time in which the debt must be repaid) of five to 15 years, and only buys securities rated, at the time of purchase, in one of the top four ratings categories by one or more U.S. nationally recognized rating services (or comparable unrated or short-term rated securities).


Credit Quality Composition*

3/31/2019

Ratings	% of Total Investments
AAA		18.03%
AA		71.14%
A		9.53%
Not Rated		1.30%

Performance Overview

For the 12 months under review, the Fund posted cumulative total returns of +6.07% based on market price and +6.38%

based on net asset value (NAV). In comparison, the Bloomberg Barclays Municipal Bond Index posted a +5.38% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 11.

Investment Strategy


Portfolio Composition

3/31/2019

	% of Total Investments*
General Obligation		37.27%
Utilities		25.49%
Higher Education		12.83%
Tax-Supported		9.57%
Subject to Government Appropriations		4.56%
Transportation		4.19%
Hospital & Health Care		3.52%
Other Revenue		1.43%
Housing		1.14%

*Does not include cash and cash equivalents.

2. Source: Morningstar.

See www.franklintempletondatasources.com for additional data provider information

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Statement of Investments (SOI). The SOI begins on page 20.



franklintempleton.com	Annual Report	9

FRANKLIN LIBERTY MUNICIPAL BOND ETF

Manager’s Discussion

During the12-month reporting period, the Fund maintained its average maturity close to 13 years, on the longer end of the targetfive-15 year range. The municipal yield curve remains positively sloped and we believe focusing on longer maturities provides us with the best opportunities to achieve our objective of maximizingafter-tax income for investors. We selectively added higher-yielding investment-grade securities to the portfolio, while selling existing positions with lower yields, improving the earnings potential of the portfolio. At the end of the period, we invested capital in essential service sectors with a focus on the12- to17-year part of the yield curve. We will continue to look for opportunities to improve the income profile of the Fund as opportunities arise. The Fund does not use leverage or derivatives. We believe our consistent, disciplined strategy can help our investors achieve high,tax-free income over the long term.

Thank you for your participation in Franklin Liberty Municipal Bond ETF. We look forward to serving your future investment needs.

The foregoing information reflects our analysis, opinions and portfolio holdings as of March 31, 2019, the end of the reporting period. The way we implement our main investment strategies and the resulting portfolio holdings may change depending on factors such as market and economic conditions. These opinions may not be relied upon as investment advice or an offer for a particular security. The information is not a complete analysis of every aspect of any market, state, industry, security or the Fund. Statements of fact are from sources considered reliable, but the investment manager makes no representation or warranty as to their completeness or accuracy. Although historical performance is no guarantee of future results, these insights may help you understand our investment management philosophy.



10	Annual Report	franklintempleton.com

FRANKLIN LIBERTY MUNICIPAL BOND ETF

Performance Summary as of March 31, 2019

Total return reflects reinvestment of the Fund’s dividends and capital gain distributions, if any, and any unrealized gains or losses. Total returns do not include brokerage commissions that may be payable on secondary market transactions. The performance tables and graph do not reflect any taxes that a shareholder would pay on Fund dividends, capital gain distributions, if any, or any realized gains on the sale of Fund shares.

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (9/5/17), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Performance as of 3/31/19¹

Cumulative Total Return²

Average Annual Total Return²

Based on
NAV³

Based on

market price⁴

Based on
NAV³

Based on

market price⁴

1-Year

+6.38%

+6.07%

+6.38%

+6.07%

Since Inception (8/31/17)

+4.83%

+4.87%

+3.03%

+3.05%



	30-Day Standardized Yield⁶				Taxable Equivalent30-Day Standardized Yield⁷
Distribution Rate⁵	(with waiver)		(without waiver)		(With Waiver)		(Without Waiver)
2.47%		2.11%		0.41%		3.56%		0.69%

See page 13 for Performance Summary footnotes.



franklintempleton.com	Annual Report	11

FRANKLIN LIBERTY MUNICIPAL BOND ETF

PERFORMANCE SUMMARY

Total Return Index Comparison for a Hypothetical $10,000 Investment¹

Total return is calculated at net asset value and represents the change in value of an investment over the periods shown. It includes any Fund fees and expenses, and reinvested distributions. The unmanaged index includes reinvestment of any income or distributions. It differs from the Fund in composition and does not pay management fees or expenses. One cannot invest directly in an index.

8/31/17–3/31/19

LOGO

See page 13 for Performance Summary footnotes.



12	Annual Report	franklintempleton.com

FRANKLIN LIBERTY MUNICIPAL BOND ETF

PERFORMANCE SUMMARY

Distributions(4/1/18–3/31/19)

Net Investment
Income

$0.660417

Total Annual Operating Expenses⁹



With Waiver	Without Waiver
0.30%		1.48%

ETFs trade like stocks, fluctuate in market value and may trade at prices above or below their net asset value. Brokerage commissions and ETF expenses will reduce returns.

1. The Fund has an expense reduction contractually guaranteed through 7/31/19. Fund investment results reflect the expense reduction; without this reduction, the results would have been lower.

2. Total return calculations represent the cumulative and average annual changes in value of an investment over the periods indicated. Return for less than one year, if any, has not been annualized.

3. Assumes reinvestment of distributions based on net asset value.

4. Assumes reinvestment of distributions based on market price.

5. Distribution rate is based on an annualization of the March dividend and the NAV per share on 3/31/19.

7. Taxable equivalent yield assumes the 2019 maximum federal income tax rate of 37.00% plus 3.8% Medicare tax.

8. Source: Morningstar. The Bloomberg Barclays Municipal Bond Index is a market value-weighted index engineered for the long-termtax-exempt bond market. To be included in the index, bonds must be fixed rate, have at least one year to final maturity and be rated investment grade(Baa3/BBB- or higher) by at least two of the following agencies: Moody’s, S&P and Fitch.

See www.franklintempletondatasources.com for additional data provider information.



franklintempleton.com	Annual Report	13

FRANKLIN LIBERTY MUNICIPAL BOND ETF

Your Fund’s Expenses

Actual Fund Expenses

The table below provides information about actual account values and actual expenses in the columns under the heading “Actual.” In these columns the Fund’s actual return, which includes the effect of Fund expenses, is used to calculate the “Ending Account Value.” You can estimate the expenses you paid during the period by following these steps (of course, your account value and expenses will differ from those in this illustration):Divide your account value by $1,000 (if your account had an $8,600 value, then $8,600÷ $1,000 = 8.6).Then multiply the result by the number in the row under the headings “Actual” and “Expenses Paid During Period” (if Actual Expenses Paid During Period were $7.50, then 8.6 x $7.50 = $64.50).In this illustration, the actual expenses paid this period are $64.50.

Hypothetical Example for Comparison with Other Funds

Under the heading “Hypothetical” in the table, information is provided about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. This information may not be used to estimate the actual ending account balance or expenses you paid for the period, but it can help you compare ongoing costs of investing in the Fund with those of other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.


		Actual (actual return after expenses)				Hypothetical (5% annual return before expenses)

Beginning Account Value 10/1/18		Ending Account Value 3/31/19		Expenses Paid During Period 10/1/18–3/31/19^1,2		Ending Account Value 3/31/19		Expenses Paid During Period 10/1/18–3/31/19^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	1,064.00	$	1.54	$	1,023.44	$	1.51		0.30	%

1. Expenses are equal to the annualized expense ratio for the six-month period as indicated above—in the far right column—multiplied by the simple average account value over the period indicated, and then multiplied by 182/365 to reflect the one-half year period.

2. Reflects expenses after fee waivers and expense reimbursements.



14	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin Liberty Intermediate Municipal Opportunities ETF



	Year Ended March 31,

	2019			2018^a

Per share operating performance (for a share outstanding throughout the year)

Net asset value, beginning of year	$	24.40		$	25.00


Income from investment operations:^b

Net investment income^c		0.63			0.22

Net realized and unrealized gains (losses)		0.57			(0.60	)


Total from investment operations		1.20			(0.38	)


Less distributions from net investment income		(0.63	)		(0.22	)


Net asset value, end of year	$	24.97		$	24.40


Total return^d		4.99%			(1.53)%

Ratios to average net assets^e

Expenses before waiver and payments by affiliates		2.15%			1.71%

Expenses net of waiver and payments by affiliates		0.30%			0.30%

Net investment income		2.57%			1.55%

Supplemental data

Net assets, end of year (000’s)		$7,490			$7,319

Portfolio turnover rate^f		35.63%			17.49%

^aFor the period August 31, 2017 (commencement of operations) to March 31, 2018.

^cBased on average daily shares outstanding.

^eRatios are annualized for periods less than one year.

^fPortfolio turnover rate excludes the value of portfolio securities received or delivered as a result of processing capital share transactions in Creation Units, if any.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	15

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2019

Franklin Liberty Intermediate Municipal Opportunities ETF



	Principal Amount			Value
Municipal Bonds 98.0%
Alaska 2.2%
Matanuska-Susitna Borough Lease Revenue, Goose Creek Correctional Center Project, Refunding, 4.00%, 9/01/30	$	150,000		$	161,619

Arizona 3.1%
La Paz County IDA Education Facility Lease Revenue, Charter School Solutions-Harmony Public Schools Project, Series A, 5.00%, 2/15/28		100,000			113,508
Phoenix Civic Improvement Corp. Wastewater System Revenue, junior lien, Series A, 5.00%, 7/01/25		100,000	��		119,401

					232,909

California 7.4%
California School Finance Authority Charter School Revenue, Summit Public Schools-Obligated Group, 5.00%, 6/01/27		100,000			115,165
California Statewide CDA Revenue, California Baptist University, Refunding, Series A, 3.00%, 11/01/22		100,000			101,045
California Statewide CDA Special Tax Revenue, CFD No. 2015-01, Improvement Area No. 2, University District, 5.00%, 9/01/27		100,000			110,465
Orange County CFD No. 2017-1 Special Tax, Esencia Village Improvement Area No. 1, Series A, 5.00%, 8/15/28		100,000			115,432
Perris Joint Powers Authority Local Agency Revenue, CFD No. 2001-1, Improvement Area Nos. 4 and 5, CFD No. 2005-1, Improvement Area 4, Refunding, Series B, 5.00%, 9/01/25		100,000			112,208

					554,315

Colorado 4.4%
Regional Transportation District Sales Tax Revenue, Fastracks Project, Refunding, Series A, 5.00%, 11/01/27		100,000			124,304
Southglenn Metropolitan District Special Revenue, In the City of Centennial Colorado, Refunding, 5.00%, 12/01/30		100,000			104,966
Southlands Metropolitan District No. 1 GO, Aurora, Arapahoe County, Refunding, Series A-1, 3.50%, 12/01/27		100,000			100,177

					329,447

Delaware 1.5%
Kent County Student Housing and Dining Facility Revenue, CHF-Dover LLC- Delaware State University Project, Series A, 5.00%, 7/01/29		100,000			113,730

Florida 3.9%
Jacksonville Health Care Facilities Revenue, Brooks Rehabilitation, Genesis Health Inc. Obligated Group, Refunding, 5.00%, 11/01/27		100,000			119,241
Miami Health Facilities Authority Revenue, Miami Jewish Health Systems Inc. Project, Refunding, 5.00%, 7/01/28		150,000			169,896

					289,137

Georgia 1.6%
Main Street Natural Gas Inc. Gas Supply Revenue, Series A, 5.00%, 5/15/29		100,000			118,529

Illinois 7.8%
Hillside Tax Increment Revenue, Cook County, Refunding, 5.00%, 1/01/24		100,000			103,183
Illinois State Finance Authority MFHR,
Better Housing Foundation Blue Station Project, Series A-1, 4.25%, 12/01/28		100,000			100,068
Better Housing Foundation ERNST Portfolio Project, Series A-1, 4.375%, 12/01/28		100,000			56,135
Railsplitter Tobacco Settlement Authority Revenue, 5.00%, 6/01/27		100,000			117,942
Southwestern Illinois Development Authority Revenue, Capital Appreciation, Local Government Program, AGMC Insured, zero cpn, 12/01/24		245,000			209,046

					586,374

Kentucky 1.4%
Louisville/Jefferson County Metro Government Revenue, College, Bellarmine University Project, Refunding and Improvement, Series A, 4.00%, 5/01/29		100,000			102,006



16	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin Liberty Intermediate Municipal Opportunities ETF(continued)



	Principal Amount		Value
Municipal Bonds (continued)
Maryland 3.1%
Maryland EDC Revenue, Economic Development, Transportation Facilities Project, Refunding, Series A, 5.00%, 6/01/27	$	100,000	$	118,181
Montgomery County GO, Consolidated Public Improvement, Refunding, Series A, 5.00%, 11/01/24		100,000		117,923

				236,104

Massachusetts 1.5%
Massachusetts State Development Finance Agency Revenue, Foxborough Regional Charter, Series B, 5.00%, 7/01/27		100,000		111,570

Michigan 1.4%
Grand Rapids EDC, EDR, Beacon Hill Eastgate Project, Refunding, Series A, 4.00%, 11/01/27		100,000		102,556

Minnesota 6.5%
Eagan GO, Series A, 4.00%, 2/01/26		100,000		113,538
Mille Lacs County GO, Capital Improvement Plan, Series A, 3.00%, 2/01/24		135,000		142,798
Northern Municipal Power Agency Electric System Revenue, Refunding, 5.00%, 1/01/36		100,000		115,182
St. Louis Park Public Schools ISD No. 283 GO, School Building, Minnesota School District Credit Enhancement Program, Series A, 5.00%, 2/01/25		100,000		118,053

				489,571

Missouri 1.5%
St. Louis County IDA Senior Living Facilities Revenue, Friendship Village, St. Louis Obligated Group, Refunding, 5.00%, 9/01/27		100,000		112,476

Montana 1.6%
Cascade County High School District No. 1 Great Falls GO, School Building, 5.00%, 7/01/25		100,000		118,489

Nevada 4.6%
Carson City Hospital Revenue, Carson Tahoe Regional Healthcare Project, Refunding, Series A, 5.00%, 9/01/28		100,000		117,583
Las Vegas Special ID No. 812 Special Assessment, Local Improvement, Summerlin Village 24, 4.00%, 12/01/22		100,000		103,021
Washoe County School District GO, School Improvement, Series C, 5.00%, 10/01/26		100,000		120,719

				341,323

New Hampshire 1.6%
New Hampshire State Health and Education Facilities Authority Revenue, University System of New Hampshire Issue, Refunding, Series A, 5.00%, 7/01/27		100,000		123,076

New Jersey 1.4%
Pinelands Regional School District GO, Refunding, AGMC Insured, 3.00%, 8/01/27		100,000		105,116

New York 1.6%
MTA Revenue, Transportation, Green Bonds, Climate Bond Certified, Refunding, Series B, 5.00%, 11/15/28		100,000		122,868

North Carolina 1.5%
North Carolina State Medical Care Commission Retirement Facilities Revenue, The United Methodist Retirement Homes, first mortgage, Refunding, Series A, 5.00%, 10/01/27		100,000		110,620

Ohio 4.6%
Franklin County Hospital Facilities Revenue, Nationwide Children’s Hospital Project, Refunding, Series A, 5.00%, 11/01/28		100,000		123,115
Ohio State Air Quality Development Authority Exempt Facilities Revenue, Pratt Paper LLC Project, 3.75%, 1/15/28		100,000		104,336
Ohio State Water Development Authority Revenue, Community Assistance, Refunding, 4.00%, 12/01/25		100,000		114,289

				341,740

Oregon 1.6%
Portland Community College District GO, Multnomah Washington Yamhill Clackamas and Columbia Counties, Refunding, 5.00%, 6/15/25		100,000		119,412



franklintempleton.com	Annual Report	17

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS



	Principal Amount		Value
Municipal Bonds (continued)
Pennsylvania 8.5%
Allegheny County Higher Education Building Authority University Revenue, Robert Morris University, UPMC Events Center Project, 5.00%, 10/15/26	$	100,000	$	111,253
Allentown Neighborhood Improvement Zone Development Authority Tax Revenue, City Center Project, 5.00%, 5/01/28		100,000		112,741
Franklin County IDAR, Menno Haven Inc. Project, Refunding, 5.00%, 12/01/28		100,000		110,515
Pennsylvania State Economic Development Financing Authority Revenue, UPMC, Refunding, Series A, 3.375%, 11/15/33		125,000		126,455
Pennsylvania State GO, First Series, Refunding, 5.00%, 1/01/26		150,000		179,367

				640,331

Tennessee 2.9%
Lawrenceburg GO, Refunding, 2.50%, 6/01/27		100,000		101,900
Metropolitan Government of Nashville and Davidson County GO, Improvement, Refunding, 4.00%, 7/01/29		100,000		114,330

				216,230

Texas 4.6%
Cedar Park GO, Williamson and Travis Counties, Refunding and Improvement, 5.00%, 2/15/24		100,000		114,957
Garland GO, Dallas Collin and Rockwall Counties, Refunding, 5.00%, 2/15/27		100,000		122,278
New Hope Cultural Education Facilities Finance Corp. Student Housing Revenue, CHF-Collegiate Housing Island Campus LLC, Series A, 5.00%, 4/01/29		100,000		105,595

				342,830

Utah 2.8%
Provo GO, Refunding, 4.00%, 1/01/23		100,000		108,926
Utah State Building Ownership Authority Lease Revenue, State Facilities Master Lease Program, 2.50%, 5/15/27		100,000		101,713

				210,639

Vermont 1.6%
Vermont State Public Power Supply Authority Revenue, Swanton Peaking Facility Project, Refunding, Series A, 5.00%, 7/01/28		100,000		116,337

Virginia 1.4%
Peninsula Town Center CDA Special Obligation Revenue, Refunding, 4.50%, 9/01/28		100,000		105,623

Washington 6.3%
Seattle Drainage and Wastewater System Revenue, Improvement and Refunding, 4.00%, 7/01/28		100,000		115,300
Skagit County Public Hospital District No. 1 Revenue, Improvement, Skagit Regional Health, Refunding, 5.00%, 12/01/29		100,000		114,126
Spokane County School District No. 356 Central Valley GO, 5.00%, 12/01/26		100,000		122,808
University of Washington Revenue, General, Refunding, Series A, 5.00%, 12/01/26		100,000		122,888

				475,122

Wisconsin 4.1%
Brookfield GO, Waukesha County, Refunding, 3.00%, 12/01/25		115,000		123,024
PFA Retirement Facilities Revenue, Whitestone Retirement Facilities, first mortgage, Refunding, 4.00%, 3/01/27		80,000		82,798
Wisconsin Health and Educational Facilities Authority Revenue, St. Johns Communities Inc. Project, Series A, 4.00%, 9/15/27		100,000		103,294

				309,116

Total Investments (Cost $7,228,859) 98.0%				7,339,215
Other Assets, less Liabilities 2.0%				150,589

Net Assets 100.0%			$	7,489,804

See Abbreviations on page 32.



18	Annual Report \| The accompanying notes are an integral part of these financial statements.	franklintempleton.com

Franklin Liberty Intermediate Municipal Opportunities ETF(continued)

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin Liberty Municipal Bond ETF



	Year Ended March 31,

	2019			2018^a

Per share operating performance (for a share outstanding throughout the year)

Net asset value, beginning of year	$	24.34		$	25.00


Income from investment operations:^b

Net investment income^c		0.67			0.30

Net realized and unrealized gains (losses)		0.85			(0.66	)


Total from investment operations		1.52			(0.36	)


Less distributions from net investment income		(0.66	)		(0.30	)


Net asset value, end of year	$	25.20		$	24.34


Total return^d		6.38%			(1.45)%

Ratios to average net assets^e

Expenses before waiver and payments by affiliates		2.05%			1.71%

Expenses net of waiver and payments by affiliates		0.30%			0.30%

Net investment income		2.74%			2.11%

Supplemental data

Net assets, end of year (000’s)		$8,820			$7,302

Portfolio turnover rate^f		21.21%			5.00%

^aFor the period August 31, 2017 (commencement of operations) to March 31, 2018.

^cBased on average daily shares outstanding.

^eRatios are annualized for periods less than one year.

^fPortfolio turnover rate excludes the value of portfolio securities received or delivered as a result of processing capital share transactions in Creation Units, if any.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	19

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2019

Franklin Liberty Municipal Bond ETF



		Principal Amount		Value
	Municipal Bonds 98.8%
	Alaska 1.8%
	Matanuska-Susitna Borough Lease Revenue, Goose Creek Correctional Center Project, Refunding, 4.00%, 9/01/30	$	150,000	$	161,619

	Arizona 2.8%
	Phoenix Civic Improvement Corp. Wastewater System Revenue, junior lien, Series A, 5.00%, 7/01/25		100,000		119,401
	Scottsdale Municipal Property Corp. Excise Tax Revenue, Refunding, 5.00%, 7/01/34		100,000		129,208

					248,609

	California 7.7%
	Burbank RDA Successor Agency Tax Allocation Revenue, Los Angeles County, Refunding, 3.00%, 12/01/32		100,000		101,579
	Clovis USD, GO, Capital Appreciation, Refunding, zero cpn., 8/01/35		200,000		112,578
	Konocti USD, GO, Capital Appreciation, Election of 2004, Series C, AGMC Insured, zero cpn., 8/01/28		150,000		113,761
	Perris Joint Powers Authority Local Agency Revenue, CFD No. 2001-1, Improvement Area Nos. 4 and 5, CFD No. 2005-1, Improvement Area 4, Refunding, Series B, 5.00%, 9/01/37		100,000		110,541
	South Tahoe Joint Powers Financing Authority Lease Revenue, Redevelopment Project Area No. 1, Series A, BAM Insured, 5.00%, 10/01/30		100,000		119,245
	University of California Revenue, Limited Project, Series M, 5.00%, 5/15/34		100,000		120,199

					677,903

	Colorado 6.5%
	Adams and Weld Counties School District No. 27J Brighton GO, The City and County of Broomfield, 5.00%, 12/01/42		100,000		117,799
	Cherry Creek School District No. 5 GO, Arapahoe County, Refunding, Series C, 5.00%, 12/15/35		100,000		120,715
	Colorado Springs Utilities System Revenue, Refunding, Series A, 4.00%, 11/15/33		100,000		110,267
	Colorado State Board of Governors University Enterprise System Revenue, Refunding, Series A, 4.00%, 3/01/35		100,000		108,344
	Greeley Water Revenue, Water Enterprise, 4.00%, 8/01/31		100,000		113,330

					570,455

	Connecticut 1.3%
	Connecticut State Special Tax Obligation Revenue, Series A, 5.00%, 8/01/31		100,000		112,450

	Florida 4.0%
	Gainesville Utilities System Revenue, Series A, 5.00%, 10/01/36		100,000		119,335
a	Miami-Dade County Florida Transit Sales Surtax Revenue, Refunding, 4.00%, 7/01/36		100,000		109,449
a	Sarasota County Utility System Revenue, Refunding, Series A, 5.00%, 10/01/34		100,000		122,388

					351,172

	Georgia 2.5%
a	Coweta County Water and Sewage Authority Revenue, Refunding, 4.00%, 6/01/35		100,000		109,959
	Main Street Natural Gas Inc. Gas Project Revenue, Series A, 4.00%, 4/01/48		100,000		107,680

					217,639

	Kansas 1.2%
	Douglas County USD No. 497 GO, Series A, 3.50%, 9/01/32		100,000		105,276

	Louisiana 1.2%
	Louisiana GO, Series B, 4.00%, 10/01/34		100,000		109,110

	Maine 1.4%
	Maine Municipal Bond Bank Revenue, Series C, 5.00%, 11/01/31		100,000		121,607

	Maryland 2.6%
a	Maryland State GO, State and Local Facilities Loan, First Series, 5.00%, 3/15/32		100,000		124,958
	Prince George’s County GO, Consolidated Public Improvement, Series A, 3.00%, 9/15/32		100,000		102,073

					227,031

	Massachusetts 2.8%
	Massachusetts Bay Transportation Authority Sales Tax Revenue, Sustainability Bonds, Subordinate, Series A, Subseries A-1, 5.00%, 7/01/33		100,000		119,835
a	University of Massachusetts Building Authority Revenue, Refunding, Senior Series A-1, 5.00%, 5/01/31		100,000		125,283

					245,118



20	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin Liberty Municipal Bond ETF(continued)



		Principal Amount			Value
	Municipal Bonds (continued)
	Minnesota 5.7%
	Minnesota State Higher Education Facilities Authority Revenue, Macalester College, Refunding, 3.00%, 3/01/35	$	150,000		$	150,354
	Northern Municipal Power Agency Electric System Revenue, Refunding, 5.00%, 1/01/36		100,000			115,182
	Southern Minnesota Municipal Power Agency Power Supply System Revenue, Series A, 5.00%, 1/01/31		100,000			121,484
	University of Minnesota GO, Series A, 5.00%, 9/01/42		100,000			117,474

						504,494

	Missouri 1.1%
	Platte County School District Park Hill GO, Direct Deposit Program, 3.00%, 3/01/33		100,000			100,653

	Montana 1.4%
	Cascade County High School District No. 1 Great Falls GO, School Building, 5.00%, 7/01/25		100,000			118,489

	Nevada 1.4%
	Clark County School District GO, Building, Refunding, Series A, 5.00%, 6/15/26		100,000			119,288
				��
	New Hampshire 1.4%
	New Hampshire State Health and Education Facilities Authority Revenue, University System of New Hampshire Issue, Refunding, Series A, 5.00%, 7/01/27		100,000			123,076

	New Jersey 1.2%
	Pinelands Regional School District GO, Refunding, AGMC Insured, 3.00%, 8/01/27		100,000			105,116

	New Mexico 1.2%
	Santa Fe Net Wastewater Utility System/ Environmental Services Gross Receipts Tax Improvement Revenue, Climate Bond Certified, Green Bonds, BAM Insured, 4.00%, 6/01/35		100,000			109,657

	New York 6.5%
	MTA Revenue, Transportation, Green Bonds, Climate Bond Certified, Refunding, Series B, 5.00%, 11/15/28		100,000			122,868
	New York City GO, Fiscal 2018, Series B, Subseries B-1, 4.00%, 10/01/36		100,000			109,065
	New York City Transitional Finance Authority Revenue, Future Tax Secured, Subordinate, Fiscal 2018, Series B, Subseries B-1, 5.00%, 8/01/34		100,000			119,428
	New York State Dormitory Authority Revenues, Non-State Supported Debt, School Districts, Financing Program, Refunding, Series G, BAM Insured, 3.00%, 10/01/33		100,000			100,426
	New York State Dormitory Authority Sales Tax Revenue, Series A, 5.00%, 3/15/33		100,000			121,672

						573,459

	North Carolina 2.5%
	University of North Carolina at Charlotte Revenue, General, Board of Governors, Refunding, 4.00%, 10/01/34		100,000			109,665
	Winston-Salem City Water and Sewer System Revenue, 4.00%, 6/01/33		100,000			110,493

						220,158

	Ohio 8.2%
	Columbus GO, Series A, 3.00%, 4/01/28		100,000			106,152
	Franklin County Hospital Facilities Revenue, Nationwide Children’s Hospital Project, Refunding, Series A, 3.125%, 11/01/33		50,000			50,329
	Hudson City School District GO, School Improvement, 4.00%, 12/01/31		100,000			109,610
	Licking Heights Local School District GO, School Facilities Construction and Improvement, Series B, 5.00%, 10/01/30		100,000			119,161
	Northeast Regional Sewer District Revenue, Wastewater Improvement, Refunding, 4.00%, 11/15/34		100,000			110,412
	Ohio State GO, Highway Capital Improvements, Full Faith and Credit/Highway User Receipts, Series S, 5.00%, 5/01/23		100,000			113,516
	Ohio State Water Development Authority Revenue, Community Assistance, Refunding, 4.00%, 12/01/30		100,000			117,308

						726,488

	Oklahoma 1.4%
a	Tulsa Metropolitan Utility Authority Revenue, Refunding, Series A, 5.00%, 4/01/26		100,000			120,880

	Oregon 6.2%
	Oregon State Housing and Community Services Department Mortgage Revenue, Series D, 3.15%, 7/01/32		95,000			96,476



franklintempleton.com	Annual Report	21

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin Liberty Municipal Bond ETF(continued)



		Principal Amount		Value
	Municipal Bonds (continued)
	Oregon (continued)
	Portland Community College District GO, Multnomah Washington Yamhill Clackamas and Columbia Counties, Refunding, 5.00%, 6/15/25		$ 100,000	$	119,412
	Salem-Keizer School District No. 24J GO, Marion and Polk Counties, 5.00%, 6/15/36		150,000		181,359
	Washington County GO, Full Faith and Credit Obligations, Series B, 5.00%, 3/01/25		125,000		148,456

					545,703

	Pennsylvania 1.4%
	Pennsylvania State Economic Development Financing Authority Revenue, UPMC, Refunding, Series A, 3.375%, 11/15/33		125,000		126,455

	Tennessee 6.6%
	Kingsport GO, Series B, 3.00%, 3/01/35		130,000		128,760
	Lawrenceburg GO, Refunding, 2.50%, 6/01/27		100,000		101,900
	Metropolitan Government of Nashville and Davidson County GO, Improvement, Refunding, 4.00%, 7/01/29		100,000		114,330
	Metropolitan Government of Nashville and Davidson County Water and Sewer Revenue, Green Bonds, Subordinate, Refunding, Series A, 5.00%, 7/01/36		100,000		118,846
	Tennessee State School Bond Authority Revenue, Higher Educational Facilities Second Program, Series A, 5.00%, 11/01/37		100,000		119,669

					583,505

	Texas 6.4%
	El Paso Water and Sewer Revenue, Refunding and Improvement, 4.00%, 3/01/33		100,000		110,369
a	Pflugerville ISD GO, Series A, PSF Guarantee, 5.00%, 2/15/29		100,000		124,234
	Round Rock Utility Revenue, Refunding, 2.75%, 8/01/29		100,000		102,160
	Texas A&M University System Board of Regents Revenue, Financing System, Refunding, Series C, 5.00%, 5/15/33		100,000		119,281
	Texas State Water Development Board Revenue, State Water Implementation Fund, Master Trust, Series A, 4.00%, 10/15/33		100,000		111,344

					567,388

	Utah 2.4%
	Provo GO, Refunding, 4.00%, 1/01/23		100,000		108,926
	Utah State Building Ownership Authority Lease Revenue, State Facilities Master Lease Program, 2.50%, 5/15/27		100,000		101,713

					210,639

	Virginia 1.4%
	Virginia College Building Authority Educational Facilities Revenue, Public Higher Education Financing Program, Series A, 5.00%, 9/01/32		100,000		123,290

	Washington 5.4%
	King and Snohomish Counties School District No 417 Northshore GO, 5.00%, 12/01/31		100,000		122,611
	Seattle Municipal Light and Power Revenue, Improvement and Refunding, Series C, 4.00%, 9/01/35		100,000		109,099
	Spokane County School District No. 356 Central Valley GO, 5.00%, 12/01/26		100,000		122,808
	Washington Health Care Facilities Authority Revenue, MultiCare Health System, Refunding, Series B, 5.00%, 8/15/29		100,000		121,905

					476,423

	Wisconsin 1.2%
	Brookfield GO, Waukesha County, Refunding, 3.00%, 12/01/25		100,000		106,977

	Total Investments (Cost $8,557,099) 98.8%				8,710,127
	Other Assets, less Liabilities 1.2%				109,509

	Net Assets 100.0%			$	8,819,636

See Abbreviations on page 32.

^aSecurity purchased on a when-issued basis. See Note 1(b)



22	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

March 31, 2019



	Franklin Liberty Intermediate Municipal Opportunities ETF			Franklin Liberty Municipal Bond ETF
Assets:
Investments in securities:
Cost – Unaffiliated issuers	$	7,228,859		$	8,557,099

Value – Unaffiliated issuers	$	7,339,215		$	8,710,127
Cash		132,645			1,038,599
Receivables:
Interest		83,014			78,986
Affiliates		7,602			7,996

Total assets		7,562,476			9,835,708

Liabilities:
Payables:
Investment securities purchased		—			943,150
Transfer agent fees		13,000			13,000
Trustees’ fees and expenses		101			104
Distributions to shareholders		17,939			18,120
Custodian fees		1,030			1,031
Professional fees		22,561			22,605
Registration and filing fees		8,385			8,407
Pricing fees		4,000			4,000
Accrued expenses and other liabilities		5,656			5,655

Total liabilities		72,672			1,016,072

Net assets, at value	$	7,489,804		$	8,819,636

Net assets consist of:
Paid-in capital	$	7,500,000		$	8,746,717
Total distributable earnings (loss)		(10,196	)		72,919

Net assets, at value	$	7,489,804		$	8,819,636

Shares outstanding		300,000			350,000

Net asset value per share	$	24.97		$	25.20



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	23

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Operations

for the year ended March 31, 2019



	Franklin Liberty Intermediate Municipal Opportunities ETF			Franklin Liberty Municipal Bond ETF
Investment income:
Interest:
Unaffiliated issuers	$	209,901		$	222,903

Total investment income		209,901			222,903

Expenses:
Management fees (Note 3a)		45,759			45,883
Transfer agent fees		15,427			15,427
Custodian fees		1,213			1,112
Reports to shareholders		4,993			5,008
Registration and filing fees		9,563			9,434
Professional fees		49,183			42,519
Trustees’ fees and expenses		984			955
Pricing fees		18,000			18,000
Other		12,254			12,356

Total expenses		157,376			150,694
Expenses waived/paid by affiliates (Note 3c)		(135,411	)		(128,670	)

Net expenses		21,965			22,024

Net investment income		187,936			200,879

Realized and unrealized gains (losses):
Net realized gain (loss) from:
Investments:
Unaffiliated issuers		(95,411	)		(68,214	)

Net realized gain (loss)		(95,411	)		(68,214	)

Net change in unrealized appreciation (depreciation) on:
Investments:
Unaffiliated issuers		266,104			339,144

Net change in unrealized appreciation (depreciation)		266,104			339,144

Net realized and unrealized gain (loss)		170,693			270,930

Net increase (decrease) in net assets resulting from operations	$	358,629		$	471,809



24	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 Liberty Intermediate Municipal Opportunities ETF						Franklin Liberty Municipal Bond ETF

	Year Ended March 31, 2019			Year Ended March 31, 2018^a			Year Ended March 31, 2019			Year Ended March 31, 2018^a
Increase (decrease) in net assets:
Operations:
Net investment income	$	187,936		$	66,889		$	200,879		$	90,991
Net realized gain (loss)		(95,411	)		(26,590	)		(68,214	)		(13,465	)
Net change in unrealized appreciation (depreciation)		266,104			(155,748	)		339,144			(186,116	)

Net increase (decrease) in net assets resulting from operations		358,629			(115,449	)		471,809			(108,590	)

Distributions to shareholders (Note 1d)		(187,559	)		(65,817	)		(200,714	)		(89,586	)

Capital share transactions: (Note 2)		—			7,500,000			1,246,717			7,500,000

Net increase (decrease) in net assets		171,070			7,318,734			1,517,812			7,301,824

Net assets:
Beginning of year		7,318,734			—			7,301,824			—

End of year (Note 1d)	$	7,489,804		$	7,318,734		$	8,819,636		$	7,301,824

^aFor the period August 31, 2017 (commencement of operations) to March 31, 2018.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	25

FRANKLIN TEMPLETON ETF TRUST

Notes to Financial Statements

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 thirty-eight separate funds, two of which are included in this report (Funds) and applies the specialized accounting and reporting guidance in U.S. Generally Accepted Accounting Principles (U.S. GAAP). Each of the Funds are an exchange traded fund (ETF) and are actively managed, thus they are not designed to track an index.

The following summarizes the Funds’ significant accounting policies.

a. Financial Instrument Valuation

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 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.

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.

b. Securities Purchased on a When-Issued Basis

Certain or all Funds purchase securities on a when-issued 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. Sufficient assets have been segregated for these securities.

c. Income Taxes

d. Security Transactions, Investment Income, Expenses and Distributions

Security transactions are accounted for on trade date. Realized gains and losses on security transactions are



26	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS

determined on a specific identification basis. Interest income and estimated expenses are accrued daily. Amortization of premium and accretion of discount on debt securities are included in interest income. 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.

Effective during the current reporting period, it is no longer required to present certain line items on the Statements of Changes in Net Assets. The below period amounts affected by this change are shown as they were in the prior year Statements of Changes in Net Assets.

For the year ended March 31, 2018, distributions to shareholders were as follows:


	Franklin Liberty Intermediate Municipal Opportunities ETF			Franklin Liberty Municipal Bond ETF
Distributions from net investment income:	$	(65,817	)	$	(89,586	)

For the year ended March 31, 2018, undistributed net investment income included in net assets were as follows:



Funds	Undistributed net investment income
Franklin Liberty Intermediate Municipal Opportunities ETF	$	1,072
Franklin Liberty Municipal Bond ETF		1,405

e. 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.

f. Accounting Estimates



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FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS

1. Organization and Significant Accounting Policies(continued)

g. Guarantees and Indemnifications

2. Shares of Beneficial Interest

At March 31, 2019, there were an unlimited number of shares authorized (without par value). Transactions in the Funds’ shares were as follows:



	Franklin Liberty Intermediate Municipal Opportunities ETF

	Year Ended March 31, 2019						Year Ended March 31, 2018^a

	Shares			Amount			Shares		Amount
Shares sold		200,000		$	4,872,980			300,000	$	7,500,000
Shares redeemed		(200,000	)		(4,872,980	)		—		—

Net increase (decrease)		—		$	—			300,000	$	7,500,000


	Franklin Liberty Municipal Bond ETF

	Year Ended March 31, 2019						Year Ended March 31, 2018^a

	Shares			Amount			Shares		Amount
Shares sold		50,000		$	1,246,717			300,000	$	7,500,000

^aFor the period August 31, 2017 (commencement of operations) to March 31, 2018.



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NOTES TO FINANCIAL STATEMENTS

3. Transactions with Affiliates



Subsidiary		Affiliation
Franklin Advisers, Inc. (Advisers)		Investment manager
Franklin Templeton Services, LLC (FT Services)		Administrative manager
Franklin Templeton Distributors, Inc. (Distributors)		Principal underwriter

a. Management Fees

The Funds pay an investment management fee to Advisers based on the daily net assets of each of the Funds as follows:



Annualized Fee Rate		Net Assets
0.625%		Up to and including $100 million
0.500%		Over $100 million, up to and including $250 million
0.450%		Over $250 million, up to and including $7.5 billion
0.440%		Over $7.5 billion, up to and including $10 billion
0.430%		Over $10 billion, up to and including $12.5 billion
0.420%		Over $12.5 billion, up to and including $15 billion
0.400%		Over $15 billion, up to and including $17.5 billion
0.380%		Over $17.5 billion, up to and including $20 billion
0.360%		In excess of $20 billion

For the year ended March 31, 2019, each Fund’s gross effective investment management fee rate based on average daily net assets was as follows:



		Annualized Fee Rate
Franklin Liberty Intermediate Municipal Opportunities ETF		0.625%
Franklin Liberty Municipal Bond ETF		0.625%

b. Administrative Fees

c. Waiver and Expense Reimbursements

Advisers has contractually agreed in advance to waive or limit its fees and to assume as its own expense certain expenses otherwise payable by the Funds so that the expenses (including acquired fund fees and expenses) for each of the Funds does not exceed 0.30%, based on the average net assets (other than certain non-routine expenses or costs, including those relating to litigation, indemnification, reorganizations, and liquidations) until July 31, 2019. 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

3. Transactions with Affiliates(continued)

d. Other Affiliated Transactions

At March 31, 2019, the shares of the Funds were owned by the following entities:



Fund	Shares		Percentage of Outstanding Shares^a
Franklin Liberty Intermediate Municipal Opportunities ETF
Franklin Resources Inc.		105,000		35.0%

Franklin Liberty Municipal Bond ETF
Franklin Federal Limited-Term Tax-Free Income Fund		135,000		38.6%

^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, 2019, the capital loss carryforwards were as follows:



	Franklin Liberty Intermediate Municipal Opportunities ETF		Franklin Liberty Municipal Bond ETF
Capital loss carryforwards not subject to expiration:
Short term	$	64,623	$	26,801
Long term		57,378		54,878

Total capital loss carryforwards	$	122,001	$	81,679

The tax character of distributions paid during the years ended March 31, 2019 and 2018, were as follows:



	Franklin Liberty Intermediate Municipal Opportunities ETF				Franklin Liberty Municipal Bond ETF

	2019		2018		2019		2018
Distributions paid from:
Tax exempt income	$	187,559	$	65,724	$	200,714	$	89,586
Ordinary income		—		93		—		—

Distributions paid from ordinary income	$	187,559	$	65,817	$	200,714	$	89,586

At March 31, 2019, the cost of investments, net unrealized appreciation (depreciation) and undistributed ordinary income for income tax purposes were as follows:



	Franklin Liberty Intermediate Municipal Opportunities ETF			Franklin Liberty Municipal Bond ETF
Cost of investments	$	7,228,859		$	8,557,099

Unrealized appreciation	$	170,422		$	161,100
Unrealized depreciation		(60,066	)		(8,072	)

Net unrealized appreciation (depreciation)	$	110,356		$	153,028

Distributions earnings – undistributed tax exempt income	$	19,388		$	19,690



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NOTES TO FINANCIAL STATEMENTS

5. Investment Transactions

Purchases and sales of investments (excluding short term securities and in-kind transactions, if any) for the year ended March 31, 2019, were as follows:



	Franklin Liberty Intermediate Municipal Opportunities ETF		Franklin Liberty Municipal Bond ETF
Purchases	$	2,586,099	$	2,833,465
Sales	$	2,723,374	$	1,557,473

6. Credit Risk

At March 31, 2019, Franklin Liberty Intermediate Municipal Opportunities ETF had 20.8% of its portfolio invested in high yield securities, 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.

7. Fair Value Measurements

•

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.

At March 31, 2019, all of the Fund’s investments in financial instruments carried at fair value were valued using Level 2 inputs.

8. New Accounting Pronouncements

In March 2017, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2017-08, Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities. The amendments in the ASU shorten the amortization period for certain callable debt securities, held at a premium, to be amortized to the earliest call date. The ASU does not require an accounting change for securities held at a discount; which continues to be amortized to maturity. The ASU is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2018. Management has reviewed the requirements and believes the adoption of this ASU will not have a material impact on the financial statements.



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FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS

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
AGMC		Assured Guaranty Municipal Corp.
BAM		Build America Mutual Assurance Co.
CDA		Community Development Authority/Agency
CFD		Community Facilities District
EDC		Economic Development Corp.
EDR		Economic Development Revenue
GO		General Obligation
ID		Improvement District
IDA		Industrial Development Authority/Agency
IDAR		Industrial Development Authority Revenue
ISD		Independent School District
MFHR		Multi-Family Housing Revenue
MTA		Metropolitan Transit Authority
PFA		Public Financing Authority
PSF		Permanent School Fund
RDA		Redevelopment Agency/Authority
USD		Unified/Union School District



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FRANKLIN TEMPLETON ETF TRUST

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of Franklin Templeton ETF Trust and Shareholders of Franklin Liberty Intermediate Municipal Opportunities ETF and Franklin Liberty Municipal Bond ETF

Opinions on the Financial Statements

We have audited the accompanying statements of assets and liabilities, including the statements of investments, of Franklin Liberty Intermediate Municipal Opportunities ETF and Franklin Liberty Municipal Bond ETF (the “Funds”) as of March 31, 2019, the related statements of operations for the year ended March 31, 2019, the statements of changes in net assets for the year ended March 31, 2019 and the period August 31, 2017 (commencement of operations) through March 31, 2018, including the related notes, and the financial highlights for each of the periods indicated therein (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of March 31, 2019, and the results of each of their operations for the year ended March 31, 2019, the changes in each of their net assets for the year ended March 31, 2019 and the period August 31, 2017 (commencement of operations) through March 31, 2018, and each of the financial highlights for each of the periods indicated therein in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinions

We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of March 31, 2019 by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinions.

PricewaterhouseCoopers LLP

San Francisco, California

May 20, 2019

We have served as the auditor of one or more investment companies in the Franklin Templeton funds since 1948.



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FRANKLIN TEMPLETON ETF TRUST

Tax information (unaudited)

Under Section 852(b)(5)(A) of the Internal Revenue Code, the Funds hereby report 100% of the distributions paid from net investment income as exempt-interest dividends for the fiscal year ended March 31, 2019. A portion of the Funds’ exempt-interest dividends may be subject to the federal alternative minimum tax. By mid-February 2020, shareholders will be notified of amounts for use in preparing their 2019 income tax returns.



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Board Members and Officers

Independent Board Members



Name, Year of Birth and Address	Position	Length of Time Served	Number of Portfolios in Fund Complex Overseen by Board Member*	Other Directorships Held During at Least the Past 5 Years

Rohit Bhagat (1964) One Franklin Parkway San Mateo, CA 94403-1906	Lead Independent Trustee	Since 2016	39	Zentific Investment Management (hedge fund) (2015-present), Axis Bank (2013-present), AssetMark Financial Holdings, Inc. (investment solutions) (2018-present) and CapFloat Financial Services Pvt., Ltd.(non-banking finance company) (2018-present).

Principal Occupation During at Least the Past 5 Years:
Managing Member, Mukt Capital, LLC (private investment firm) (2014-present); Advisor, Optimal Asset Management (investment technology and advisory services company) (2015-present); andformerly, Chairman, Asia Pacific, BlackRock (2009-2012); Global Chief Operating Officer, Barclays Global Investors (investment management) (2005-2009); and Senior Partner, The Boston Consulting Group (management consulting) (1992-2005).

Anantha Pradeep (1963) One Franklin Parkway San Mateo, CA 94403-1906	Trustee	Since 2016	39	None

Principal Occupation During at Least the Past 5 Years:
Chief Executive Officer, Smilable, Inc. (technology company) (2014-present); Chief Executive Officer, MachineVantage (technology company) (2018-present); Founder and Managing Partner, Consult Meridian, LLC (consulting company) (2009-present); andformerly, Founder, BoardVantage (board portal solutions provider delivering paperless process for boards and leadership) (2000-2002).

Interested Board Members and Officers



Name, Year of Birth and Address	Position	Length of Time Served	Number of Portfolios in Fund Complex Overseen by Board Member*	Other Directorships Held During at Least the Past 5 Years

**Jennifer M. Johnson (1964) One Franklin Parkway San Mateo, CA 94403-1906	Chairperson of the Board and Trustee	Since 2016	46	None

Principal Occupation During at Least the Past 5 Years:
President and Chief Operating Officer, Franklin Resources, Inc.; officer and/or director or trustee, as the case may be, of some of the other subsidiaries of Franklin Resources, Inc. and of four of the investment companies in Franklin Templeton; andformerly, Chief Operating Officer and Executive Vice President, Franklin Resources, Inc. (1994-2015); Executive Vice President of Operations and Technology, Franklin Resources, Inc. (2005-2010); and Senior Vice President, Franklin Resources, Inc. (2003-2005).

Alison E. Baur (1964) One Franklin Parkway San Mateo, CA 94403-1906	Vice President	Since 2016	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Deputy General Counsel, Franklin Templeton; and officer of some of the other subsidiaries of Franklin Resources, Inc. and of 44 of the investment companies in Franklin Templeton.



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FRANKLIN TEMPLETON ETF TRUST

Interested Board Members and Officers(continued)



Name, Year of Birth and Address	Position	Length of Time Served	Number of Portfolios in Fund Complex Overseen by Board Member*	Other Directorships Held During at Least the Past 5 Years

Gaston Gardey (1967) One Franklin Parkway San Mateo, CA 94403-1906	Treasurer, Chief Financial Officer and Chief Accounting Officer	Since 2015	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Treasurer, U.S. Fund Administration & Reporting and officer of 28 of the investment companies in Franklin Templeton.

Aliya S. Gordon (1973) One Franklin Parkway San Mateo, CA 94403-1906	Vice President	Since 2016	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Senior Associate General Counsel and officer of 44 of the investment companies in Franklin Templeton.

Steven J. Gray (1955) One Franklin Parkway San Mateo, CA 94403-1906	Vice President	Since 2016	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Senior Associate General Counsel, Franklin Templeton; Vice President, Franklin Templeton Distributors, Inc. and FASA, LLC; and officer of 44 of the investment companies in Franklin Templeton.

Matthew T. Hinkle (1971) One Franklin Parkway San Mateo, CA 94403-1906	Chief Executive Officer – Finance and Administration	Since 2017	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Senior Vice President, Franklin Templeton Services, LLC; officer of 44 of the investment companies in Franklin Templeton; andformerly, Vice President, Global Tax (2012-April 2017) and Treasurer/Assistant Treasurer, Franklin Templeton (2009-2017).

Robert Lim (1948) One Franklin Parkway San Mateo, CA 94403-1906	VicePresident-AML Compliance	Since 2016	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Vice President, Franklin Templeton Companies, LLC; Chief Compliance Officer, Franklin Templeton Distributors, Inc. and Franklin Templeton Investor Services, LLC; and officer of 44 of the investment companies in Franklin Templeton.

Kimberly H. Novotny (1972) 300 S.E. 2nd Street Fort Lauderdale, FL 33301-1923	Vice President	Since 2016	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Associate General Counsel, Franklin Templeton; Vice President and Corporate Secretary, Fiduciary Trust International of the South; Vice President, Templeton Investment Counsel, LLC; Assistant Secretary, Franklin Resources, Inc.; and officer of 44 of the investment companies in Franklin Templeton.



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Interested Board Members and Officers(continued)



Name, Year of Birth and Address	Position	Length of Time Served	Number of Portfolios in Fund Complex Overseen by Board Member*	Other Directorships Held During at Least the Past 5 Years

Patrick O’Connor (1967) One Franklin Parkway San Mateo, CA 94403-1906	President and Chief Executive Officer– Investment Management	Since 2016	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
President and Chief Investment Officer, Franklin Advisory Services, LLC; Senior Vice President, Franklin Advisers, Inc.; officer of two of the investment companies in Franklin Templeton; andformerly, Managing Director, Head of iShares Product Canada, BlackRock (1998-2014).

Robert C. Rosselot (1960) 300 S.E. 2nd Street Fort Lauderdale, FL 33301-1923	Chief Compliance Officer	Since 2016	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Director, Global Compliance, Franklin Templeton; Vice President, Franklin Templeton Companies, LLC; officer of 44 of the investment companies in Franklin Templeton; andformerly, Senior Associate General Counsel, Franklin Templeton (2007-2013); and Secretary and Vice President, Templeton Group of Funds (2004-2013).

Navid J. Tofigh (1972) One Franklin Parkway San Mateo, CA 94403-1906	Vice President and Secretary	Since 2015	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Associate General Counsel and officer of 44 of the investment companies in Franklin Templeton.

Craig S. Tyle (1960) One Franklin Parkway San Mateo, CA 94403-1906	Vice President	Since 2016	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
General Counsel, Executive Vice President and Secretary, Franklin Resources, Inc.; and officer of some of the other subsidiaries of Franklin Resources, Inc. and of 44 of the investment companies in Franklin Templeton.

Lori A. Weber (1964) 300 S.E. 2nd Street Fort Lauderdale, FL 33301-1923	Vice President	Since 2016	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Senior Associate General Counsel, Franklin Templeton; Assistant Secretary, Franklin Resources, Inc.; Vice President and Secretary, Templeton Investment Counsel, LLC; and officer of 44 of the investment companies in Franklin Templeton.

Note 1: Effective May 1, 2018, Susan R. Thompson ceased to be a trustee of the Trust.

Note 2: Officer information is current as of the date of this report. It is possible that after this date, information about officers may change.



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FRANKLIN TEMPLETON ETF TRUST

Shareholder Information

Proxy Voting Policies and Procedures

Quarterly Statement of Investments

The Trust files a complete statement of investments with the U.S. Securities and Exchange Commission for the first and third quarters for each fiscal year as an exhibit to its report on Form N-PORT. Shareholders may view the filedForm N-PORT by visiting the Commission’s website at sec.gov. The filed form may also be viewed and copied at the Commission’s Public Reference Room in Washington, DC. Information regarding the operations of the Public Reference Room may be obtained by calling(800) SEC-0330.

Premium/Discount Information



38	Annual Report	franklintempleton.com

To help ensure we provide you with quality service, all calls to and from our service areas are monitored and/or recorded.

ANNUAL REPORT

FRANKLIN TEMPLETON

ETF TRUST

March 31, 2019

LOGO


Franklin FTSE Asia ex Japan ETF		Franklin FTSE Japan ETF
Franklin FTSE Australia ETF		Franklin FTSE Japan Hedged ETF
Franklin FTSE Brazil ETF		Franklin FTSE Latin America ETF
Franklin FTSE Canada ETF		Franklin FTSE Mexico ETF
Franklin FTSE China ETF		Franklin FTSE Russia ETF
Franklin FTSE Europe ETF		Franklin FTSE Saudi Arabia ETF
Franklin FTSE Europe Hedged ETF		Franklin FTSE South Africa ETF
Franklin FTSE France ETF		Franklin FTSE South Korea ETF
Franklin FTSE Germany ETF		Franklin FTSE Switzerland ETF
Franklin FTSE Hong Kong ETF		Franklin FTSE Taiwan ETF
Franklin FTSE India ETF		Franklin FTSE United Kingdom ETF
Franklin FTSE Italy ETF

Franklin Templeton



Contents

Annual Report

Economic and Market Overview			2
Franklin FTSE Asia ex Japan ETF			3
Franklin FTSE Australia ETF			9
Franklin FTSE Brazil ETF			15
Franklin FTSE Canada ETF			21
Franklin FTSE China ETF			27
Franklin FTSE Europe ETF			33
Franklin FTSE Europe Hedged ETF			39
Franklin FTSE France ETF			46
Franklin FTSE Germany ETF			52
Franklin FTSE Hong Kong ETF			58
Franklin FTSE India ETF			64
Franklin FTSE Italy ETF			70
Franklin FTSE Japan ETF			76
Franklin FTSE Japan Hedged ETF			82
Franklin FTSE Latin America ETF			88


Franklin FTSE Mexico ETF			93
Franklin FTSE Russia ETF			99
Franklin FTSE Saudi Arabia ETF			105
Franklin FTSE South Africa ETF			110
Franklin FTSE South Korea ETF			115
Franklin FTSE Switzerland ETF			121
Franklin FTSE Taiwan ETF			127
Franklin FTSE United Kingdom ETF			133
Financial Highlights and Statements of Investments			139
Financial Statements			271
Notes to Financial Statements			295
Report of Independent Registered Public Accounting Firm			323
Tax Information			325
Board Members and Officers			327
Shareholder Information			330


Not FDIC Insured		\|		May Lose Value		\|		No Bank Guarantee

Visitfranklintempleton.com/investor/products/etf/ for fund updates and documents.



franklintempleton.com	Not part of the annual report	1

ANNUAL REPORT

Economic and Market Overview

The global economy expanded during the 12 months under review, despite weakness in certain regions. Global developed and emerging market stocks were aided by upbeat economic data in some regions, encouraging corporate earnings reports, the U.S. Federal Reserve’s (Fed’s) indications of a patient approach to its monetary policy decisions and optimism about a potential U.S.-China trade deal. In this environment, global stocks, as measured by the FTSEAll-World Index, posted a positive total return for the 12 months ended March 31, 2019.

The U.S. economy grew during the12-month period. The economy expanded at a faster rate in 2019’s first quarter after moderating in the previous two quarters. Growth in consumer spending, business investment, exports, government spending and inventory investment was partly offset by a decrease in housing investment. The unemployment rate decreased from 4.0% in March 2018 to 3.8% atperiod-end.¹The annual inflation rate, as measured by the Consumer Price Index, decreased from 2.4% in March 2018 to 1.9%at period-end.¹

In Europe, the U.K.’s quarterly gross domestic product (GDP) growth accelerated in 2018’s second and third quarters, but it

moderated in the fourth quarter. The Bank of England raised its key policy rate once during the review period. The eurozone’s quarterly GDP growth moderated in 2018’s third quarter but accelerated in the following two quarters. The bloc’s annual inflation varied throughout the 12 months under review but ended the period unchanged from the March 2018 level. The ECB kept its benchmark interest rate unchanged during the period and concluded its bond purchase program at the end of 2018. In March 2019, the ECB mentioned it expected key interest rates to remain unchanged at least through the end of 2019 and announced the launch of a new stimulus measure beginning in September 2019.

In emerging markets, Brazil’s quarterly GDP growth slowed in 2018’s second quarter, but it accelerated in the third quarter before easing in the fourth quarter. After accelerating in 2018’s second quarter, Russia’s annual GDP growth held steady in 2018’s third quarter and accelerated in the fourth quarter. The Bank of Russia increased its key rate twice during the period. China’s annual GDP growth stabilized in 2019’s first quarter after moderating in the previous three quarters. The People’s Bank of China left its benchmark interest rate unchanged, but it took measures to improve financial liquidity to mitigate the effects of the U.S.-China trade dispute and support economic growth. Overall, emerging market stocks, as measured by the FTSE Emerging Index, posted a negative total return during the12-month period.

1. Source: U.S. Bureau of Labor Statistics.



2	Annual Report	franklintempleton.com

Franklin FTSE Asia ex Japan ETF

This annual report for Franklin FTSE Asia ex Japan ETF covers the fiscal year ended March 31, 2019.

Your Fund’s Goal and Main Investments

The Fund seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the FTSE Asia ex Japan RIC Capped Index (the FTSE Asia ex Japan Capped Index or the Underlying Index).¹ Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE Asia ex Japan Capped Index and in depositary receipts representing such securities.

Performance Overview

During the12-month period, the Fund posted cumulative total returns of-6.89% based on market price and-5.19% based on net asset value. In comparison, the FTSE Asia ex Japan Capped Index posted a-5.15% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 5.

Investment Strategy

The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE Asia ex Japan Capped Index. We seek to achieve, over time, a correlation between the Fund’s performance, before fees and expenses, and that of the Underlying Index of 0.95 or better. A figure of 1.00 would indicate perfect correlation. Our


Top 10 Sectors/Industries

3/31/19

	% of Total Net Assets
Banks		13.7%
Interactive Media & Services		7.4%
Insurance		5.9%
Semiconductors & Semiconductor Equipment		5.8%
Internet & Direct Marketing Retail		5.7%
Technology Hardware, Storage & Peripherals		5.6%
Real Estate Management & Development		5.6%
Oil, Gas & Consumable Fuels		4.8%
Industrial Conglomerates		2.7%
Electronic Equipment, Instruments & Components		2.4%

intention is to replicate the component securities of the Underlying Index as closely as possible (i.e., invest in all of the component securities in their respective weightings in the Underlying Index). However, under various circumstances, it may not be possible or practicable to replicate the Underlying Index. In these circumstances, we may use a “representative sampling” strategy whereby we would invest in what we believe to be a representative sample of the component securities of the Underlying Index, but may not track the Underlying Index with the same degree of accuracy as would an investment vehicle replicating the entire Underlying Index. Under the representative sampling technique, we will select securities that collectively have an investment profile similar to that of the Underlying Index, including securities that resemble those included in the Underlying Index in terms of risk factors, performance attributes and other characteristics, such as market capitalization and industry weightings. The Fund will concentrate its investments (i.e., hold 25% or more of its net assets) in a particular industry or group of industries to approximately the same extent that the Underlying Index is concentrated.

1. The FTSE Asia ex Japan Capped Index is a free float-adjusted market capitalization-weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE Asia ex Japan Capped Index is based on the FTSE Asia ex Japan Index and is designed to measure the performance of large- andmid-capitalization stocks from developed and emerging Asian countries, excluding Japan. The Chinese constituents in the FTSE Asia ex Japan Capped Index are represented byH-shares,B-shares,N-shares, Red Chips,P-Chips andS-Chips.

2. Source: FactSet.

The index is unmanaged and includes reinvestment of any income or distributions (after the deduction of certain withholding taxes). It does not reflect any fees, expenses or sales charges. One cannot invest directly in an index.

See www.franklintempletondatasources.com for additional data provider information.

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Statement of Investments (SOI). The SOI begins on page 140.



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FRANKLIN FTSE ASIA EX JAPAN ETF

Manager’s Discussion

During the12-month period, the sectors that contributed most to the Fund’s absolute performance were real estate, energy and communication services. Individual holdings that lifted the Fund’s absolute return included AIA Group, Reliance Industries and Infosys.

For the same period, the sectors that detracted most from the Fund’s absolute performance were information technology, consumer discretionary and health care. Individual holdings that hindered the Fund’s absolute return included Samsung Electronics, Tencent Holdings and Baidu.

Thank you for your participation in Franklin FTSE Asia ex Japan ETF. We look forward to serving your future investment needs.

LOGO

Dina Ting, CFA


		Louis Hsu, CFA

		Portfolio Management Team


Top 10 Holdings

3/31/19

Company *Sector/Industry, Country*	% of Total Net Assets
Tencent Holdings Ltd. Interactive Media & Services, China		5.5%
Alibaba Group Holding Ltd., ADR Internet & Direct Marketing Retail, China		4.6%
Samsung Electronics Co. Ltd. Technology Hardware, Storage & Peripherals, South Korea		4.4%
Taiwan Semiconductor Manufacturing Co. Ltd. Semiconductors & Semiconductor Equipment, Taiwan		4.0%
AIA Group Ltd. Insurance, Hong Kong		2.5%
China Construction Bank Corp., H Banks, China		1.6%
Reliance Industries Ltd. Oil, Gas & Consumable Fuels, India		1.3%
Industrial and Commercial Bank of China Ltd., H Banks, China		1.2%
Ping An Insurance (Group) Co. of China Ltd., H Insurance, China		1.2%
China Mobile Ltd. Wireless Telecommunication Services, China		1.1%


Top 10 Countries

3/31/19

	% of Total Net Assets
China		34.4%
South Korea		14.3%
Taiwan		12.5%
India		11.6%
Hong Kong		11.5%
Singapore		4.1%
Thailand		3.6%
Malaysia		3.0%
Indonesia		2.3%
Philippines		1.4%

CFA^® is a trademark owned by CFA Institute.



4	Annual Report	franklintempleton.com

FRANKLIN FTSE ASIA EX JAPAN ETF

Performance Summary as of March 31, 2019

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (2/9/18), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Performance as of 3/31/19



	Cumulative Total Return¹					Average Annual Total Return¹
	Based on NAV²			Based on market price³		Based on NAV²			Based on market price³
1-Year		-5.19%	⁴		-6.89%		-5.19%	⁴		-6.89%
Since Inception (2/6/18)		-5.39%			-5.00%		-4.73%			-4.38%

See page 7 for Performance Summary footnotes.



franklintempleton.com	Annual Report	5

FRANKLIN FTSE ASIA EX JAPAN ETF

PERFORMANCE SUMMARY

Total Return Index Comparison for a Hypothetical $10,000 Investment

Total return represents the change in value of an investment over the period shown. It includes any applicable maximum sales charge, Fund expenses, account fees and reinvested distributions. The unmanaged index includes reinvestment of any income or distributions. It differs from the Fund in composition and does not pay management fees or expenses. One cannot invest directly in an index.

2/6/18–3/31/19

LOGO

See page 7 for Performance Summary footnotes.



6	Annual Report	franklintempleton.com

FRANKLIN FTSE ASIA EX JAPAN ETF

PERFORMANCE SUMMARY

Distributions(4/1/18–3/31/19)

Net Investment
Income

$0.463691

Total Annual Operating Expenses⁶

0.19%

All investments involve risks, including possible loss of principal. Special risks are associated with foreign investing, including currency fluctuations, economic instability and political developments. Investments in developing markets involve heightened risks related to the same factors, in addition to those associated with these markets’ smaller size, lesser liquidity and lack of established legal, political, business and social frameworks to support securities markets. Investments in securities of Asian issuers involve risks that are specific to Asia, including certain legal, regulatory, political and economic risks. Because the Fund invests its assets primarily in companies in a specific country or region, the Fund may also experience greater volatility than a fund that is more broadly diversified geographically. The Fund’s prospectus also includes a description of the main investment risks.

ETFs trade like stocks, fluctuate in market value and may trade at prices above or below their net asset value. Brokerage commissions and ETF expenses will reduce returns.

1. Total return calculations represent the cumulative and average annual changes in value of an investment over the periods indicated. Return for less than one year, if any, has not been annualized.

2. Assumes reinvestment of distributions based on net asset value.

3. Assumes reinvestment of distributions based on market price.

4. Total return information is based on net asset value calculated for shareholder transactions. Certain adjustments were made to net assets of the Fund at 3/31/18 for financial reporting purposes, and as a result, the total returns based on those net asset values differ from the adjusted total returns reported in the Financial Highlights.

5. Source: FactSet. The FTSE Asia ex Japan Capped Index is a free float-adjusted market capitalization-weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE Asia ex Japan Capped Index is based on the FTSE Asia ex Japan Index and is designed to measure the performance of large- andmid-capitalization stocks from developed and emerging Asian countries, excluding Japan. The Chinese constituents in the FTSE Asia ex Japan Capped Index are represented byH-shares,B-shares,N-shares, Red Chips,P-Chips andS-Chips.

See www.franklintempletondatasources.com for additional data provider information.



franklintempleton.com	Annual Report	7

FRANKLIN FTSE ASIA EX JAPAN ETF

Your Fund’s Expenses

Actual Fund Expenses

The table below provides information about actual account values and actual expenses in the columns under the heading “Actual.” In these columns the Fund’s actual return, which includes the effect of Fund expenses, is used to calculate the “Ending Account Value.” You can estimate the expenses you paid during the period by following these steps (of course, your account value and expenses will differ from those in this illustration):Divide your account value by $1,000 (if your account had an $8,600 value, then $8,600÷ $1,000 = 8.6).Then multiply the result by the number in the row under the headings “Actual” and “Expenses Paid During Period” (if Actual Expenses Paid During Period were $7.50, then 8.6 x $7.50 = $64.50).In this illustration, the actual expenses paid this period are $64.50.

Hypothetical Example for Comparison with Other Funds

Under the heading “Hypothetical” in the table, information is provided about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. This information may not be used to estimate the actual ending account balance or expenses you paid for the period, but it can help you compare ongoing costs of investing in the Fund with those of other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.


		Actual (actual return after expenses)				Hypothetical (5% annual return before expenses)

Beginning Account Value 10/1/18		Ending Account Value 3/31/19		Expenses Paid During Period 10/1/18–3/31/19^1,2		Ending Account Value 3/31/19		Expenses Paid During Period 10/1/18–3/31/19^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	1,014.90	$	0.95	$	1,023.98	$	0.96		0.19	%

2. Reflects expenses after fee waivers and expense reimbursements.



8	Annual Report	franklintempleton.com

Franklin FTSE Australia ETF

This annual report for Franklin FTSE Australia ETF covers the fiscal year ended March 31, 2019.

Your Fund’s Goal and Main Investments

The Fund seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the FTSE Australia RIC Capped Index (the FTSE Australia Capped Index or the Underlying Index).¹ Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE Australia Capped Index and in depositary receipts representing such securities.

Performance Overview

During the12-month period, the Fund posted cumulative total returns of +3.41% based on market price and +4.00% based on net asset value. In comparison, the FTSE Australia Capped Index posted a +3.94% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 11.

Investment Strategy

The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE Australia Capped Index. We seek to achieve, over time, a correlation between the Fund’s performance, before fees and expenses, and that of the Underlying Index of 0.95 or better. A figure of 1.00 would indicate perfect correlation. Our intention is to replicate the component securities of the Underlying


Top 10 Sectors/Industries

3/31/19

	% of Total Net Assets
Banks		25.6%
Metals & Mining		16.2%
Equity Real Estate Investment Trusts (REITs)		6.9%
Biotechnology		6.2%
Oil, Gas & Consumable Fuels		5.6%
Capital Markets		4.4%
Insurance		4.2%
Food & Staples Retailing		3.9%
Transportation Infrastructure		3.6%
Multiline Retail		2.9%

Index as closely as possible (i.e., invest in all of the component securities in their respective weightings in the Underlying Index). However, under various circumstances, it may not be possible or practicable to replicate the Underlying Index. In these circumstances, we may use a “representative sampling” strategy whereby we would invest in what we believe to be a representative sample of the component securities of the Underlying Index, but may not track the Underlying Index with the same degree of accuracy as would an investment vehicle replicating the entire Underlying Index. Under the representative sampling technique, we will select securities that collectively have an investment profile similar to that of the Underlying Index, including securities that resemble those included in the Underlying Index in terms of risk factors, performance attributes and other characteristics, such as market capitalization and industry weightings. The Fund will concentrate its investments (i.e., hold 25% or more of its net assets) in a particular industry or group of industries to approximately the same extent that the Underlying Index is concentrated.

1. The FTSE Australia Capped Index is a free float-adjusted market capitalization-weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE Australia Capped Index is based on the FTSE Australia Index and is designed to measure the performance of Australian large- andmid-capitalization stocks.

2. Source: FactSet.

See www.franklintempletondatasources.com for additional data provider information.

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Statement of Investments (SOI). The SOI begins on page 161.



franklintempleton.com	Annual Report	9

FRANKLIN FTSE AUSTRALIA ETF


Top 10 Holdings

3/31/19

Company *Sector/Industry, Country*	% of Total Net Assets
Commonwealth Bank of Australia Banks, Australia		8.7%
BHP Group Ltd. Metals & Mining, Australia		7.9%
Westpac Banking Corp. Banks, Australia		6.2%
CSL Ltd. Biotechnology, Australia		6.2%
Australia & New Zealand Banking Group Ltd. Banks, Australia		5.2%
National Australia Bank Ltd. Banks, Australia		4.9%
Woolworths Group Ltd. Food & Staples Retailing, Australia		2.8%
Macquarie Group Ltd. Capital Markets, Australia		2.8%
Wesfarmers Ltd. Multiline Retail, Australia		2.8%
Rio Tinto Ltd. Metals & Mining, Australia		2.5%

Manager’s Discussion

During the12-month period, the sectors that contributed most to the Fund’s absolute performance were materials, real estate and health care. Individual holdings that lifted the Fund’s absolute return included BHP Group, CSL and Rio Tinto.

For the same period, the sectors that detracted most from the Fund’s absolute performance were financials and consumer discretionary. Individual holdings that hindered the Fund’s absolute return included Westpac Banking, AMP and National Australia Bank.

Thank you for your participation in Franklin FTSE Australia ETF. We look forward to serving your future investment needs.

LOGO

Dina Ting, CFA


		Louis Hsu, CFA

		Portfolio Management Team



10	Annual Report	franklintempleton.com

FRANKLIN FTSE AUSTRALIA ETF

Performance Summary as of March 31, 2019

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (11/6/17), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Performance as of 3/31/19

Cumulative Total Return¹

Average Annual Total Return¹

Based on
NAV²

Based on

market price³

Based on
NAV²

Based on

market price³

1-Year

+4.00%

+3.41%

+4.00%

+3.41%

Since Inception (11/2/17)

+1.87%

+2.32%

+1.32%

+1.64%

See page 13 for Performance Summary footnotes.



franklintempleton.com	Annual Report	11

FRANKLIN FTSE AUSTRALIA ETF

PERFORMANCE SUMMARY

Total Return Index Comparison for a Hypothetical $10,000 Investment

11/2/17–3/31/19

LOGO

See page 13 for Performance Summary footnotes.



12	Annual Report	franklintempleton.com

FRANKLIN FTSE AUSTRALIA ETF

PERFORMANCE SUMMARY

Distributions(4/1/18–3/31/19)

Net Investment
Income

$0.958745

Total Annual Operating Expenses⁵

0.09%

ETFs trade like stocks, fluctuate in market value and may trade at prices above or below their net asset value. Brokerage commissions and ETF expenses will reduce returns.

1. Total return calculations represent the cumulative and average annual changes in value of an investment over the periods indicated. Return for less than one year, if any, has not been annualized.

2. Assumes reinvestment of distributions based on net asset value.

3. Assumes reinvestment of distributions based on market price.

4. Source: FactSet. The FTSE Australia Capped Index is a free float-adjusted market capitalization-weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE Australia Capped Index is based on the FTSE Australia Index and is designed to measure the performance of Australian large- andmid-capitalization stocks

5. Figures are as stated in the Fund’s current prospectus and may differ from the expense ratios disclosed in the Your Fund’s Expenses and Financial Highlights sections in this report. In periods of market volatility, assets may decline significantly, causing total annual Fund operating expenses to become higher than the figures shown.

See www.franklintempletondatasources.com for additional data provider information.



franklintempleton.com	Annual Report	13

FRANKLIN FTSE AUSTRALIA ETF

Your Fund’s Expenses

Actual Fund Expenses

The table below provides information about actual account values and actual expenses in the columns under the heading “Actual.” In these columns the Fund’s actual return, which includes the effect of Fund expenses, is used to calculate the “Ending Account Value.” You can estimate the expenses you paid during the period by following these steps (of course, your account value and expenses will differ from those in this illustration):Divide your account value by $1,000 (if your account had an $8,600 value, then $8,600÷ $1,000 = 8.6).Then multiply the result by the number in the row under the headings “Actual” and “Expenses Paid During Period” (if Actual Expenses Paid During Period were $7.50, then 8.6 x $7.50 = $64.50).In this illustration, the actual expenses paid this period are $64.50.

Hypothetical Example for Comparison with Other Funds

Under the heading “Hypothetical” in the table, information is provided about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. This information may not be used to estimate the actual ending account balance or expenses you paid for the period, but it can help you compare ongoing costs of investing in the Fund with those of other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.


		Actual (actual return after expenses)				Hypothetical (5% annual return before expenses)

Beginning Account Value 10/1/18		Ending Account Value 3/31/19		Expenses Paid During Period 10/1/18–3/31/19^1,2		Ending Account Value 3/31/19		Expenses Paid During Period 10/1/18–3/31/19^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	999.30	$	0.45	$	1,024.48	$	0.45		0.09	%

2. Reflects expenses after fee waivers and expense reimbursements.



14	Annual Report	franklintempleton.com

Franklin FTSE Brazil ETF

This annual report for Franklin FTSE Brazil ETF covers the fiscal year ended March 31, 2019.

Your Fund’s Goal and Main Investments

The Fund seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the FTSE Brazil RIC Capped Index (the FTSE Brazil Capped Index or the Underlying Index).¹ Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE Brazil Capped Index and in depositary receipts representing such securities.

Performance Overview

During the12-month period, the Fund posted cumulative total returns of-5.99% based on market price and-3.98% based on net asset value. In comparison, the FTSE Brazil Capped Index posted a-3.79% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 17.

Investment Strategy

The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE Brazil Capped Index. We seek to achieve, over time, a correlation between the Fund’s performance, before fees and expenses, and that of the Underlying Index of 0.95 or better. A figure of 1.00 would indicate perfect correlation. Our intention is to replicate the component securities of the Underlying


Top 10 Sectors/Industries

3/31/19

	% of Total Net Assets
Banks		28.5%
Oil, Gas & Consumable Fuels		14.2%
Metals & Mining		13.2%
Electric Utilities		4.6%
Beverages		4.5%
Capital Markets		4.3%
Multiline Retail		3.7%
Insurance		2.9%
Road & Rail		2.4%
Food & Staples Retailing		2.2%

1. The FTSE Brazil Capped Index is a free float-adjusted market capitalization-weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE Brazil Capped Index is based on the FTSE Brazil Index and is designed to measure the performance of Brazilian large- andmid-capitalization stocks.

2. Source: FactSet.

See www.franklintempletondatasources.com for additional data provider information.

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Statement of Investments (SOI). The SOI begins on page 164.



franklintempleton.com	Annual Report	15

FRANKLIN FTSE BRAZIL ETF


Top 10 Holdings

3/31/19

Company *Sector/Industry, Country*	% of Total Net Assets
Petroleo Brasileiro SA Oil, Gas & Consumable Fuels, Brazil		12.5%
Vale SA Metals & Mining, Brazil		10.9%
Banco Bradesco SA Banks, Brazil		10.8%
Itau Unibanco Holding SA Banks, Brazil		9.9%
Ambev SA Beverages, Brazil		4.5%
B3 SA - Brasil Bolsa Balcao Capital Markets, Brazil		3.9%
Itausa-Investimentos Itau SA Banks, Brazil		3.2%
Banco do Brasil SA Banks, Brazil		3.1%
Lojas Renner SA Multiline Retail, Brazil		1.9%
Suzano Papel e Celulose SA Paper & Forest Products, Brazil		1.7%

Manager’s Discussion

During the12-month period, the sectors that contributed most to the Fund’s absolute performance were financials, utilities and energy. Individual holdings that lifted the Fund’s absolute return included Petroleo Brasileiro, B3 - Brasil Bolsa Balcao and Vale.

For the same period, the sectors that detracted most from the Fund’s absolute performance were consumer staples, information technology and communication services. Individual holdings that hindered the Fund’s absolute return included Ambev, Cielo and Ultrapar Participacoes.

Thank you for your participation in Franklin FTSE Brazil ETF. We look forward to serving your future investment needs.

LOGO

Dina Ting, CFA


		Louis Hsu, CFA

		Portfolio Management Team



16	Annual Report	franklintempleton.com

FRANKLIN FTSE BRAZIL ETF

Performance Summary as of March 31, 2019

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (11/7/17), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Performance as of 3/31/19

Cumulative Total Return¹

Average Annual Total Return¹

Based on
NAV²

Based on

market price³

Based on
NAV²

Based on

market price³

1-Year

-3.98%

-5.99%

-3.98%

-5.99%

Since Inception (11/3/17)

+10.28%

+9.06%

+7.21%

+6.37%

See page 19 for Performance Summary footnotes.



franklintempleton.com	Annual Report	17

FRANKLIN FTSE BRAZIL ETF

PERFORMANCE SUMMARY

Total Return Index Comparison for a Hypothetical $10,000 Investment

11/3/17–3/31/19

LOGO

See page 19 for Performance Summary footnotes.



18	Annual Report	franklintempleton.com

FRANKLIN FTSE BRAZIL ETF

PERFORMANCE SUMMARY

Distributions(4/1/18–3/31/19)

Net Investment
Income

$0.881580

Total Annual Operating Expenses⁵

0.19%

All investments involve risks, including possible loss of principal. Special risks are associated with foreign investing, including currency fluctuations, economic instability and political developments. Investments in developing markets involve heightened risks related to the same factors, in addition to those associated with these markets’ smaller size, lesser liquidity and lack of established legal, political, business and social frameworks to support securities markets. Investments in securities of Brazilian issuers involve risks that are specific to Brazil, including certain legal, regulatory, political and economic risks. The Brazilian economy has experienced in the past, and may continue to experience, periods of high inflation rates and political unrest. Because the Fund invests its assets primarily in companies in a specific country or region, the Fund may also experience greater volatility than a fund that is more broadly diversified geographically. As anon-diversified fund, the Fund may invest in a relatively small number of issuers and, as a result, be subject to a greater risk of loss with respect to its portfolio securities. The Fund’s prospectus also includes a description of the main investment risks.

ETFs trade like stocks, fluctuate in market value and may trade at prices above or below their net asset value. Brokerage commissions and ETF expenses will reduce returns.

1. Total return calculations represent the cumulative and average annual changes in value of an investment over the periods indicated. Return for less than one year, if any, has not been annualized.

2. Assumes reinvestment of distributions based on net asset value.

3. Assumes reinvestment of distributions based on market price.

4. Source: FactSet. The FTSE Brazil Capped Index is a free float-adjusted market capitalization-weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE Brazil Capped Index is based on the FTSE Brazil Index and is designed to measure the performance of Brazilian large- andmid-capitalization stocks.

See www.franklintempletondatasources.com for additional data provider information.



franklintempleton.com	Annual Report	19

FRANKLIN FTSE BRAZIL ETF

Your Fund’s Expenses

Actual Fund Expenses

The table below provides information about actual account values and actual expenses in the columns under the heading “Actual.” In these columns the Fund’s actual return, which includes the effect of Fund expenses, is used to calculate the “Ending Account Value.” You can estimate the expenses you paid during the period by following these steps (of course, your account value and expenses will differ from those in this illustration):Divide your account value by $1,000 (if your account had an $8,600 value, then $8,600÷ $1,000 = 8.6).Then multiply the result by the number in the row under the headings “Actual” and “Expenses Paid During Period” (if Actual Expenses Paid During Period were $7.50, then 8.6 x $7.50 = $64.50).In this illustration, the actual expenses paid this period are $64.50.

Hypothetical Example for Comparison with Other Funds

Under the heading “Hypothetical” in the table, information is provided about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. This information may not be used to estimate the actual ending account balance or expenses you paid for the period, but it can help you compare ongoing costs of investing in the Fund with those of other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.


		Actual (actual return after expenses)				Hypothetical (5% annual return before expenses)

Beginning Account Value 10/1/18		Ending Account Value 3/31/19		Expenses Paid During Period 10/1/18–3/31/19^1,2		Ending Account Value 3/31/19		Expenses Paid During Period 10/1/18–3/31/19^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	1,233.90	$	1.06	$	1,023.98	$	0.96		0.19	%

2. Reflects expenses after fee waivers and expense reimbursements.



20	Annual Report	franklintempleton.com

Franklin FTSE Canada ETF

This annual report for Franklin FTSE Canada ETF covers the fiscal year ended March 31, 2019.

Your Fund’s Goal and Main Investments

The Fund seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the FTSE Canada RIC Capped Index (the FTSE Canada Capped Index or the Underlying Index).¹ Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE Canada Capped Index and in depositary receipts representing such securities.

Performance Overview

During the12-month period, the Fund posted cumulative total returns of +4.42% based on market price and +4.48% based on net asset value. In comparison, the FTSE Canada Capped Index posted a +4.27% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 23.

Investment Strategy

The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE Canada Capped Index. We seek to achieve, over time, a correlation between the Fund’s performance, before fees and expenses, and that of the Underlying Index of 0.95 or better. A figure of 1.00 would indicate perfect correlation. Our intention is to replicate the component securities of the Underlying


Top 10 Sectors/Industries

3/31/19

	% of Total Net Assets
Banks		29.6%
Oil, Gas & Consumable Fuels		20.0%
Insurance		8.1%
Road & Rail		7.5%
Metals & Mining		6.3%
Food & Staples Retailing		3.8%
Capital Markets		3.3%
IT Services		2.9%
Chemicals		2.6%
Commercial Services & Supplies		1.8%

Index as closely as possible (i.e., invest in all of the component securities in their respective weightings in the Underlying Index). However, under various circumstances, it may not be possible or practicable to replicate the Underlying Index. In these circumstances, we may use a “representative sampling” strategy whereby we would invest in what we believe to be a representative sample of the component securities of the Underlying Index, but may not track the Underlying Index with the same degree of accuracy as would an investment vehicle replicating the entire Underlying index. Under the representative sampling technique, we will select securities that collectively have an investment profile similar to that of the Underlying Index, including securities that resemble those included in the Underlying Index in terms of risk factors, performance attributes and other characteristics, such as market capitalization and industry weightings. The Fund will concentrate its investments (i.e., hold 25% or more of its net assets) in a particular industry or group of industries to approximately the same extent that the Underlying Index is concentrated.

1. The FTSE Canada Capped Index is a free float-adjusted market capitalization-weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE Canada Capped Index is based on the FTSE Canada Index and is designed to measure the performance of Canadian large- andmid-capitalization stocks.

2. Source: FactSet.

See www.franklintempletondatasources.com for additional data provider information.

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Statement of Investments (SOI). The SOI begins on page 167.



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FRANKLIN FTSE CANADA ETF


Top 10 Holdings

3/31/19

Company *Sector/Industry, Country*	% of Total Net Assets
Royal Bank of Canada Banks, Canada		8.6%
The Toronto-Dominion Bank Banks, Canada		7.9%
Enbridge Inc. Oil, Gas & Consumable Fuels, Canada		5.7%
Bank of Nova Scotia Banks, Canada		5.2%
Canadian National Railway Co. Road & Rail, Canada		5.2%
Suncor Energy Inc. Oil, Gas & Consumable Fuels, Canada		4.1%
Bank of Montreal Banks, Canada		3.8%
TransCanada Corp. Oil, Gas & Consumable Fuels, Canada		3.3%
Brookfield Asset Management Inc., A Capital Markets, Canada		3.1%
Canadian Imperial Bank of Commerce Banks, Canada		2.8%

Manager’s Discussion

During the12-month period, the sectors that contributed most to the Fund’s absolute performance were industrials, energy and consumer staples. Individual holdings that lifted the Fund’s absolute return included Enbridge, Canadian National Railway and Alimentation Couche-Tard.

For the same period, the sectors that detracted most from the Fund’s absolute performance were consumer discretionary and financials. Individual holdings that hindered the Fund’s absolute return included Bank of Nova Scotia, Dollarama and Encana.

Thank you for your participation in Franklin FTSE Canada ETF. We look forward to serving your future investment needs.

LOGO

Dina Ting, CFA


		Louis Hsu, CFA

		Portfolio Management Team



22	Annual Report	franklintempleton.com

FRANKLIN FTSE CANADA ETF

Performance Summary as of March 31, 2019

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (11/6/17), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Performance as of 3/31/19

Cumulative Total Return¹

Average Annual Total Return¹

Based on
NAV²

Based on

market price³

Based on
NAV²

Based on

market price³

1-Year

+4.48%

+4.42%

+4.48%

+4.42%

Since Inception (11/2/17)

+0.24%

+0.39%

+0.17%

+0.27%

See page 25 for Performance Summary footnotes.



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FRANKLIN FTSE CANADA ETF

PERFORMANCE SUMMARY

Total Return Index Comparison for a Hypothetical $10,000 Investment

11/2/17–3/31/19

LOGO

See page 25 for Performance Summary footnotes.



24	Annual Report	franklintempleton.com

FRANKLIN FTSE CANADA ETF

PERFORMANCE SUMMARY

Distributions(4/1/18–3/31/19)

Net Investment
Income

$0.637760

Total Annual Operating Expenses⁵

0.09%

ETFs trade like stocks, fluctuate in market value and may trade at prices above or below their net asset value. Brokerage commissions and ETF expenses will reduce returns.

1. Total return calculations represent the cumulative and average annual changes in value of an investment over the periods indicated. Return for less than one year, if any, has not been annualized.

2. Assumes reinvestment of distributions based on net asset value.

3. Assumes reinvestment of distributions based on market price.

4. Source: FactSet. The FTSE Canada Capped Index is a free float-adjusted market capitalization-weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE Canada Capped Index is based on the FTSE Canada Index and is designed to measure the performance of Canadian large- andmid-capitalization stocks.

See www.franklintempletondatasources.com for additional data provider information.



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FRANKLIN FTSE CANADA ETF

Your Fund’s Expenses

Actual Fund Expenses

The table below provides information about actual account values and actual expenses in the columns under the heading “Actual.” In these columns the Fund’s actual return, which includes the effect of Fund expenses, is used to calculate the “Ending Account Value.” You can estimate the expenses you paid during the period by following these steps (of course, your account value and expenses will differ from those in this illustration):Divide your account value by $1,000 (if your account had an $8,600 value, then $8,600÷ $1,000 = 8.6).Then multiply the result by the number in the row under the headings “Actual” and “Expenses Paid During Period” (if Actual Expenses Paid During Period were $7.50, then 8.6 x $7.50 = $64.50).In this illustration, the actual expenses paid this period are $64.50.

Hypothetical Example for Comparison with Other Funds

Under the heading “Hypothetical” in the table, information is provided about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. This information may not be used to estimate the actual ending account balance or expenses you paid for the period, but it can help you compare ongoing costs of investing in the Fund with those of other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.


		Actual (actual return after expenses)				Hypothetical (5% annual return before expenses)

Beginning Account Value 10/1/18		Ending Account Value 3/31/19		Expenses Paid During Period 10/1/18–3/31/19^1,2		Ending Account Value 3/31/19		Expenses Paid During Period 10/1/18–3/31/19^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	986.50	$	0.45	$	1,024.48	$	0.45		0.09	%

2. Reflects expenses after fee waivers and expense reimbursements.



26	Annual Report	franklintempleton.com

Franklin FTSE China ETF

This annual report for Franklin FTSE China ETF covers the fiscal year ended March 31, 2019.

Your Fund’s Goal and Main Investments

The Fund seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the FTSE China RIC Capped Index (the FTSE China Capped Index or the Underlying Index).¹ Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE China Capped Index and in depositary receipts representing such securities.

Performance Overview

During the12-month period, the Fund posted cumulative total returns of-6.91% based on market price and-5.94% based on net asset value. In comparison, the FTSE China Capped Index posted a-5.78% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 29.

Investment Strategy

The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE China Capped Index. We seek to achieve, over time, a correlation between the Fund’s performance, before fees and expenses, and that of the Underlying Index of 0.95 or better. A figure of 1.00 would indicate perfect correlation. Our intention is to replicate the component securities of the Underlying


Top 10 Sectors/Industries

3/31/19

	% of Total Net Assets
Interactive Media & Services		20.5%
Internet & Direct Marketing Retail		16.6%
Banks		13.9%
Insurance		6.7%
Real Estate Management & Development		6.1%
Oil, Gas & Consumable Fuels		4.8%
Wireless Telecommunication Services		3.3%
Capital Markets		1.9%
Automobiles		1.7%
Diversified Telecommunication Services		1.6%

1. The FTSE China Capped Index is a free float-adjusted market capitalization-weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE China Capped Index is based on the FTSE China Index and is designed to measure the performance of Chinese large- andmid-capitalization stocks, as represented byH-shares,B-shares,N-shares, Red Chips,P-Chips andS-Chips.

2. Source: FactSet.

See www.franklintempletondatasources.com for additional data provider information.

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Statement of Investments (SOI). The SOI begins on page 170.



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FRANKLIN FTSE CHINA ETF


Top 10 Holdings

3/31/19

Company *Sector/Industry, Country*	% of Total Net Assets
Tencent Holdings Ltd. Interactive Media & Services, China		16.1%
Alibaba Group Holding Ltd., ADR Internet & Direct Marketing Retail, China		13.5%
China Construction Bank Corp., H Banks, China		4.7%
Industrial and Commercial Bank of China Ltd., H Banks, China		3.5%
Ping An Insurance (Group) Co. of China Ltd., H Insurance, China		3.5%
China Mobile Ltd. Wireless Telecommunication Services, China		3.3%
Baidu Inc., ADR Interactive Media & Services, China		2.8%
Bank of China Ltd., H Banks, China		2.1%
CNOOC Ltd. Oil, Gas & Consumable Fuels, China		1.8%
JD.com Inc., ADR Internet & Direct Marketing Retail, China		1.5%

Manager’s Discussion

During the12-month period, the sectors that contributed most to the Fund’s absolute performance were communication services, industrials and energy. Individual holdings that lifted the Fund’s absolute return included China Mobile, Alibaba Group Holding and CNOOC.

Thank you for your participation in Franklin FTSE China ETF. We look forward to serving your future investment needs.

LOGO

Dina Ting, CFA


		Louis Hsu, CFA

		Portfolio Management Team



28	Annual Report	franklintempleton.com

FRANKLIN FTSE CHINA ETF

Performance Summary as of March 31, 2019

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (11/6/17), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Performance as of 3/31/19



	Cumulative Total Return¹				Average Annual Total Return¹
	Based on NAV²		Based on market price³		Based on NAV²		Based on market price³
1-Year		-5.94%		-6.91%		-5.94%		-6.91%
Since Inception (11/2/17)		-2.02%		-1.24%		-1.44%		-0.88%

See page 31 for Performance Summary footnotes.



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FRANKLIN FTSE CHINA ETF

PERFORMANCE SUMMARY

Total Return Index Comparison for a Hypothetical $10,000 Investment

11/2/17–3/31/19

LOGO

See page 31 for Performance Summary footnotes.



30	Annual Report	franklintempleton.com

FRANKLIN FTSE CHINA ETF

PERFORMANCE SUMMARY

Distributions(4/1/18–3/31/19)

Net Investment
Income

$0.390406

Total Annual Operating Expenses⁵

0.19%

All investments involve risks, including possible loss of principal. Special risks are associated with foreign investing, including currency fluctuations, economic instability and political developments. Investments in developing markets involve heightened risks related to the same factors, in addition to those associated with these markets’ smaller size, lesser liquidity and lack of established legal, political, business and social frameworks to support securities markets. Investments in securities of Chinese issuers involve risks that are specific to China, including certain legal, regulatory, political and economic risks. China may be subject to considerable degrees of economic, political and social instability. Because the Fund invests its assets primarily in companies in a specific country or region, the Fund may also experience greater volatility than a fund that is more broadly diversified geographically. As anon-diversified fund, the Fund may invest in a relatively small number of issuers and, as a result, be subject to a greater risk of loss with respect to its portfolio securities. The Fund’s prospectus also includes a description of the main investment risks.

ETFs trade like stocks, fluctuate in market value and may trade at prices above or below their net asset value. Brokerage commissions and ETF expenses will reduce returns.

1. Total return calculations represent the cumulative and average annual changes in value of an investment over the periods indicated. Return for less than one year, if any, has not been annualized.

2. Assumes reinvestment of distributions based on net asset value.

3. Assumes reinvestment of distributions based on market price.

4. Source: FactSet. The FTSE China Capped Index is a free float-adjusted market capitalization-weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE China Capped Index is based on the FTSE China Index and is designed to measure the performance of Chinese large- andmid-capitalization stocks, as represented byH-shares,B-shares,N-shares, Red Chips,P-Chips andS-Chips.

See www.franklintempletondatasources.com for additional data provider information.



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FRANKLIN FTSE CHINA ETF

Your Fund’s Expenses

Actual Fund Expenses

The table below provides information about actual account values and actual expenses in the columns under the heading “Actual.” In these columns the Fund’s actual return, which includes the effect of Fund expenses, is used to calculate the “Ending Account Value.” You can estimate the expenses you paid during the period by following these steps (of course, your account value and expenses will differ from those in this illustration):Divide your account value by $1,000 (if your account had an $8,600 value, then $8,600÷ $1,000 = 8.6).Then multiply the result by the number in the row under the headings “Actual” and “Expenses Paid During Period” (if Actual Expenses Paid During Period were $7.50, then 8.6 x $7.50 = $64.50).In this illustration, the actual expenses paid this period are $64.50.

Hypothetical Example for Comparison with Other Funds

Under the heading “Hypothetical” in the table, information is provided about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. This information may not be used to estimate the actual ending account balance or expenses you paid for the period, but it can help you compare ongoing costs of investing in the Fund with those of other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.


		Actual (actual return after expenses)				Hypothetical (5% annual return before expenses)

Beginning Account Value 10/1/18		Ending Account Value 3/31/19		Expenses Paid During Period 10/1/18–3/31/19^1,2		Ending Account Value 3/31/19		Expenses Paid During Period 10/1/18–3/31/19^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	1,050.10	$	0.97	$	1,023.98	$	0.96		0.19	%

2. Reflects expenses after fee waivers and expense reimbursements.



32	Annual Report	franklintempleton.com

Franklin FTSE Europe ETF

This annual report for Franklin FTSE Europe ETF covers the fiscal year ended March 31, 2019.

Your Fund’s Goal and Main Investments

The Fund seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the FTSE Developed Europe RIC Capped Index (the FTSE Developed Europe Capped Index or the Underlying Index).¹ Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE Developed Europe Capped Index and in depositary receipts representing such securities.

Performance Overview

During the12-month period, the Fund posted cumulative total returns of-4.14% based on market price and-3.69% based on net asset value. In comparison, the FTSE Developed Europe Capped Index posted a-3.83% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 35.

Investment Strategy

The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE Developed Europe Capped Index. We seek to achieve, over time, a correlation between the Fund’s performance, before fees and expenses, and that of the Underlying Index of 0.95 or better. A figure of 1.00 would indicate perfect correlation.


Top 10 Sectors/Industries

3/31/19

	% of Total Net Assets
Pharmaceuticals		10.1%
Banks		9.3%
Oil, Gas & Consumable Fuels		7.9%
Insurance		6.0%
Food Products		4.6%
Chemicals		3.6%
Textiles, Apparel & Luxury Goods		3.5%
Beverages		3.0%
Metals & Mining		2.7%
Diversified Telecommunication Services		2.6%

Our intention is to replicate the component securities of the Underlying Index as closely as possible (i.e., invest in all of the component securities in their respective weightings in the Underlying Index). However, under various circumstances, it may not be possible or practicable to replicate the Underlying Index. In these circumstances, we may use a “representative sampling” strategy whereby we would invest in what we believe to be a representative sample of the component securities of the Underlying Index, but may not track the Underlying Index with the same degree of accuracy as would an investment vehicle replicating the entire Underlying Index. Under the representative sampling technique, we will select securities that collectively have an investment profile similar to that of the Underlying Index, including securities that resemble those included in the Underlying Index in terms of risk factors, performance attributes and other characteristics, such as market capitalization and industry weightings. The Fund will concentrate its investments (i.e., hold 25% or more of its net assets) in a particular industry or group of industries to approximately the same extent that the Underlying Index is concentrated.

1. The FTSE Developed Europe Capped Index is a free float-adjusted market capitalization-weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE Developed Europe Capped Index is based on the FTSE Developed Europe Index and is designed to measure the performance of large- andmid-capitalization stocks from developed European countries.

2. Source: FactSet.

See www.franklintempletondatasources.com for additional data provider information.

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Statement of Investments (SOI). The SOI begins on page 178.



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FRANKLIN FTSE EUROPE ETF


Top 10 Holdings

3/31/19

Company *Sector/Industry, Country*	% of Total Net Assets
Nestle SA Food Products, Switzerland		3.2%
Royal Dutch Shell PLC, A, B Oil, Gas & Consumable Fuels, United Kingdom		2.9%
Novartis AG Pharmaceuticals, Switzerland		2.3%
Roche Holding AG Pharmaceuticals, Switzerland		2.2%
HSBC Holdings PLC Banks, United Kingdom		1.8%
BP PLC Oil, Gas & Consumable Fuels, United Kingdom		1.6%
Total SA Oil, Gas & Consumable Fuels, France		1.6%
SAP SE Software, Germany		1.2%
GlaxoSmithKline PLC Pharmaceuticals, United Kingdom		1.1%
AstraZeneca PLC Pharmaceuticals, United Kingdom		1.1%

Manager’s Discussion

For the same period, the sectors that detracted most from the Fund’s absolute performance were financials, consumer discretionary and industrials. Individual holdings that hindered the Fund’s absolute return included Bayer, British American Tobacco and BNP Paribas.

Thank you for your participation in Franklin FTSE Europe ETF. We look forward to serving your future investment needs.


Top 10 Countries

3/31/19

	% of Total Net Assets
United Kingdom		27.8%
France		16.7%
Switzerland		14.6%
Germany		13.4%
Spain		4.8%
Netherlands		4.2%
Sweden		4.2%
Italy		3.6%
Denmark		2.8%
Finland		2.0%

LOGO

Dina Ting, CFA


		Louis Hsu, CFA

		Portfolio Management Team



34	Annual Report	franklintempleton.com

FRANKLIN FTSE EUROPE ETF

Performance Summary as of March 31, 2019

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (11/6/17), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Performance as of 3/31/19



	Cumulative Total Return¹				Average Annual Total Return¹
	Based on NAV²		Based on market price³		Based on NAV²		Based on market price³
1-Year		-3.69%		-4.14%		-3.69%		-4.14%
Since Inception (11/2/17)		-3.93%		-3.85%		-2.81%		-2.75%

See page 37 for Performance Summary footnotes.



franklintempleton.com	Annual Report	35

FRANKLIN FTSE EUROPE ETF

PERFORMANCE SUMMARY

Total Return Index Comparison for a Hypothetical $10,000 Investment

11/2/17–3/31/19

LOGO

See page 37 for Performance Summary footnotes.



36	Annual Report	franklintempleton.com

FRANKLIN FTSE EUROPE ETF

PERFORMANCE SUMMARY

Distributions(4/1/18–3/31/19)

Net Investment
Income

$0.806717

Total Annual Operating Expenses⁵

0.09%

ETFs trade like stocks, fluctuate in market value and may trade at prices above or below their net asset value. Brokerage commissions and ETF expenses will reduce returns.

1. Total return calculations represent the cumulative and average annual changes in value of an investment over the periods indicated. Return for less than one year, if any, has not been annualized.

2. Assumes reinvestment of distributions based on net asset value.

3. Assumes reinvestment of distributions based on market price.

4. Source: FactSet. The FTSE Developed Europe Capped Index is a free float-adjusted market capitalization-weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE Developed Europe Capped Index is based on the FTSE Developed Europe Index and is designed to measure the performance of large- andmid-capitalization stocks from developed European countries.

See www.franklintempletondatasources.com for additional data provider information.



franklintempleton.com	Annual Report	37

FRANKLIN FTSE EUROPE ETF

Your Fund’s Expenses

Actual Fund Expenses

The table below provides information about actual account values and actual expenses in the columns under the heading “Actual.” In these columns the Fund’s actual return, which includes the effect of Fund expenses, is used to calculate the “Ending Account Value.” You can estimate the expenses you paid during the period by following these steps (of course, your account value and expenses will differ from those in this illustration):Divide your account value by $1,000 (if your account had an $8,600 value, then $8,600÷ $1,000 = 8.6).Then multiply the result by the number in the row under the headings “Actual” and “Expenses Paid During Period” (if Actual Expenses Paid During Period were $7.50, then 8.6 x $7.50 = $64.50).In this illustration, the actual expenses paid this period are $64.50.

Hypothetical Example for Comparison with Other Funds

Under the heading “Hypothetical” in the table, information is provided about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. This information may not be used to estimate the actual ending account balance or expenses you paid for the period, but it can help you compare ongoing costs of investing in the Fund with those of other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.


		Actual (actual return after expenses)				Hypothetical (5% annual return before expenses)

Beginning Account Value 10/1/18		Ending Account Value 3/31/19		Expenses Paid During Period 10/1/18–3/31/19^1,2		Ending Account Value 3/31/19		Expenses Paid During Period 10/1/18–3/31/19^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	966.50	$	0.44	$	1,024.48	$	0.45		0.09	%

2. Reflects expenses after fee waivers and expense reimbursements.



38	Annual Report	franklintempleton.com

Franklin FTSE Europe Hedged ETF

This annual report for Franklin FTSE Europe Hedged ETF covers the fiscal year ended March 31, 2019.

Your Fund’s Goal and Main Investments

The Fund seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the FTSE Developed Europe RIC Capped Hedged to USD Index (the FTSE Developed Europe Capped Hedged Index or the Underlying Index).¹ Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE Developed Europe Capped Hedged Index and in depositary receipts representing such securities, including indirectly through Franklin FTSE Europe ETF (Underlying Fund).

Performance Overview

During the12-month period, the Fund posted cumulative total returns of +5.04% based on market price and +6.98% based on net asset value. In comparison, the FTSE Developed Europe Capped Hedged Index posted a +7.00% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 42.

Investment Strategy

The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE Developed Europe Capped Hedged Index. We seek to achieve, over time, a correlation between the Fund’s performance, before fees and expenses, and that of the


Top 10 Sectors/Industries

3/31/19

	% of Total Net Assets
Pharmaceuticals		9.9%
Banks		9.1%
Oil, Gas & Consumable Fuels		7.7%
Insurance		5.9%
Food Products		4.4%
Chemicals		3.5%
Textiles, Apparel & Luxury Goods		3.4%
Beverages		2.9%
Metals & Mining		2.7%
Diversified Telecommunication Services		2.6%

Underlying Index of 0.95 or better. A figure of 1.00 would indicate perfect correlation. Our intention is to replicate the component securities of the Underlying Index as closely as possible (i.e., invest in all of the component securities in their respective weightings in the Underlying Index). However, under various circumstances, it may not be possible or practicable to replicate the Underlying Index. In these circumstances, we may use a “representative sampling” strategy whereby we would invest in what we believe to be a representative sample of the component securities of the Underlying Index, but may not track the Underlying Index with the same degree of accuracy as would an investment vehicle replicating the entire Underlying Index. Under the representative sampling technique, we will select securities that collectively have an investment profile similar to that of the Underlying Index, including securities that resemble those included in the Underlying Index in terms of risk factors, performance attributes and other characteristics, such as market capitalization and industry weightings. We intend to enter into monthly foreign currency forward contracts and/or currency futures contracts designed to offset the Fund’s exposure to the component currencies, in order to replicate the hedge impact incorporated in the calculation of the Underlying

1. The FTSE Developed Europe Capped Hedged Index is a free float-adjusted market capitalization-weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE Developed Europe Capped Hedged Index is based on the FTSE Developed Europe Hedged to USD Index and is designed to measure the performance of large- andmid-capitalization stocks from developed European countries. The FTSE Developed Europe Capped Hedged Index incorporates a hedge againstnon-U.S. currency fluctuations by reflecting the impact of rolling monthly currency forward contracts on the currencies represented in the FTSE Developed Europe Capped Hedged Index.

2. Source: FactSet.

See www.franklintempletondatasources.com for additional data provider information.

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Statement of Investments (SOI). The SOI begins on page 192.



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FRANKLIN FTSE EUROPE HEDGED ETF


Top 10 Holdings

3/31/19

Company *Sector/Industry, Country*	% of Total Net Assets
Nestle SA Food Products, Switzerland		3.1%
Royal Dutch Shell PLC, A, B Oil, Gas & Consumable Fuels, United Kingdom		2.8%
Novartis AG Pharmaceuticals, Switzerland		2.3%
Roche Holding AG Pharmaceuticals, Switzerland		2.2%
HSBC Holdings PLC Banks, United Kingdom		1.8%
BP PLC Oil, Gas & Consumable Fuels, United Kingdom		1.6%
Total SA Oil, Gas & Consumable Fuels, France		1.5%
SAP SE Software, Germany		1.2%
GlaxoSmithKline PLC Pharmaceuticals, United Kingdom		1.1%
AstraZeneca PLC Pharmaceuticals, United Kingdom		1.1%

Index. The Fund’s exposure to foreign currency forward contracts and currency futures contracts is based on the aggregate exposure of the Fund to the component currencies. The Fund will concentrate its investments (i.e., hold 25% or more of its net assets) in a particular industry or group of industries to approximately the same extent that the Underlying Index is concentrated.

What is a currency forward contract?

What is a futures contract?

A futures contract is an agreement between the Fund and a counterparty made through a U.S. or foreign futures exchange to buy or sell an underlying instrument or asset at a specific price on a future date.


Top 10 Countries

3/31/19

	% of Total Net Assets
United Kingdom		27.2%
France		16.3%
Switzerland		14.4%
Germany		13.1%
Spain		4.7%
Netherlands		4.0%
Sweden		4.0%
Italy		3.6%
Denmark		2.7%
Finland		1.9%

Manager’s Discussion

During the12-month period, the sectors that contributed most to the Fund’s absolute performance were health care, consumer staples and energy. Individual holdings that lifted the Fund’s absolute return included Nestle, Roche Holding and Novartis. The Fund’s use of currency forward contracts—designed to offset the Fund’s exposure to the component currencies and to replicate the hedge impact incorporated in the calculation of the Underlying Index—also contributed to the Fund’s absolute performance. However, one cannot expect the same result in future periods.

Thank you for your participation in Franklin FTSE Europe Hedged ETF. We look forward to serving your future investment needs.



40	Annual Report	franklintempleton.com

FRANKLIN FTSE EUROPE HEDGED ETF

LOGO

Dina Ting, CFA


		Louis Hsu, CFA

		Portfolio Management Team



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FRANKLIN FTSE EUROPE HEDGED ETF

Performance Summary as of March 31, 2019

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (11/6/17), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Performance as of 3/31/19

Cumulative Total Return¹

Average Annual Total Return¹

Based on
NAV²

Based on
market price³

Based on
NAV²

Based on
market price³

1-Year

+6.98%

+5.04%

+6.98%

+5.04%

Since Inception (11/2/17)

+2.05%

+1.92%

+1.45%

+1.36%

See page 44 for Performance Summary footnotes.



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FRANKLIN FTSE EUROPE HEDGED ETF

PERFORMANCE SUMMARY

Total Return Index Comparison for a Hypothetical $10,000 Investment

11/2/17–3/31/19

LOGO

See page 44 for Performance Summary footnotes.



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FRANKLIN FTSE EUROPE HEDGED ETF

PERFORMANCE SUMMARY

Distributions(4/1/18–3/31/19)

Total Annual Operating Expenses⁵

0.09%

All investments involve risks, including possible loss of principal. Special risks are associated with foreign investing, including currency fluctuations, economic instability and political developments. Investments in securities of European issuers involve risks that are specific to Europe, including certain legal, regulatory, political and economic risks. Because the Fund invests its assets primarily in companies in a specific country or region, the Fund may also experience greater volatility than a fund that is more broadly diversified geographically. Derivatives, including currency management strategies, involve costs and can create economic leverage in the portfolio which may result in significant volatility and cause the Fund to participate in losses on an amount that exceeds the Fund’s initial investment. The Fund may not achieve the anticipated benefits, and may realize losses when a counterparty fails to perform as promised. While the Fund’s use of foreign currency forward contracts and/or currency futures contracts is designed to minimize the impact of currency fluctuations on Fund returns, it does not necessarily eliminate the Fund’s exposure to the component currencies. The return of these currency hedging instruments will not perfectly offset the actual fluctuations between the component currencies and the U.S. dollar. Currency hedges are sometimes subject to imperfect matching between the derivative instruments and the currencies that the derivative instruments intend to hedge, and there can be no assurance that the Fund’s hedging transactions will be effective. The Fund’s exposure to the component currencies may not be fully hedged at all times. Because the Fund’s currency hedge is generally reset on a monthly basis, currency risk can develop or increase intra-month. The Fund’s prospectus also includes a description of the main investment risks.

ETFs trade like stocks, fluctuate in market value and may trade at prices above or below their net asset value. Brokerage commissions and ETF expenses will reduce returns.

1. Total return calculations represent the cumulative and average annual changes in value of an investment over the periods indicated. Return for less than one year, if any, has not been annualized.

2. Assumes reinvestment of distributions based on net asset value.

3. Assumes reinvestment of distributions based on market price.

4. Source: FactSet. The FTSE Developed Europe Capped Hedged Index is a free float-adjusted market capitalization-weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE Developed Europe Capped Hedged Index is based on the FTSE Developed Europe Hedged to USD Index and is designed to measure the performance of large- andmid-capitalization stocks from developed European countries. The FTSE Developed Europe Capped Hedged Index incorporates a hedge againstnon-U.S. currency fluctuations by reflecting the impact of rolling monthly currency forward contracts on the currencies represented in the FTSE Developed Europe Capped Hedged Index.

See www.franklintempletondatasources.com for additional data provider information.



44	Annual Report	franklintempleton.com

FRANKLIN FTSE EUROPE HEDGED ETF

Your Fund’s Expenses

Actual Fund Expenses

The table below provides information about actual account values and actual expenses in the columns under the heading “Actual.” In these columns the Fund’s actual return, which includes the effect of Fund expenses, is used to calculate the “Ending Account Value.” You can estimate the expenses you paid during the period by following these steps (of course, your account value and expenses will differ from those in this illustration):Divide your account value by $1,000 (if your account had an $8,600 value, then $8,600÷ $1,000 = 8.6).Then multiply the result by the number in the row under the headings “Actual” and “Expenses Paid During Period” (if Actual Expenses Paid During Period were $7.50, then 8.6 x $7.50 = $64.50).In this illustration, the actual expenses paid this period are $64.50.

Hypothetical Example for Comparison with Other Funds

Under the heading “Hypothetical” in the table, information is provided about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. This information may not be used to estimate the actual ending account balance or expenses you paid for the period, but it can help you compare ongoing costs of investing in the Fund with those of other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.


		Actual (actual return after expenses)				Hypothetical (5% annual return before expenses)

Beginning Account Value 10/1/18		Ending Account Value 3/31/19		Expenses Paid During Period 10/1/18–3/31/19^1,2		Ending Account Value 3/31/19		Expenses Paid During Period 10/1/18–3/31/19^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	1,004.10	$	0.45	$	1,024.48	$	0.45		0.09	%

2. Reflects expenses after fee waivers and expense reimbursements.



franklintempleton.com	Annual Report	45

Franklin FTSE France ETF

This annual report for Franklin FTSE France ETF covers the fiscal year ended March 31, 2019.

Your Fund’s Goal and Main Investments

The Fund seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the FTSE France RIC Capped Index (the FTSE France Capped Index or the Underlying Index).¹ Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE France Capped Index and in depositary receipts representing such securities.

Performance Overview

During the12-month period, the Fund posted cumulative total returns of-4.03% based on market price and-3.07% based on net asset value. In comparison, the FTSE France Capped Index posted a-3.39% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 48.

Investment Strategy

The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE France Capped Index. We seek to achieve, over time, a correlation between the Fund’s performance, before fees and expenses, and that of the Underlying Index of 0.95 or better. A figure of 1.00 would indicate perfect correlation. Our intention is to replicate the component securities of the Underlying


Top 10 Sectors/Industries

3/31/19

	% of Total Net Assets
Textiles, Apparel & Luxury Goods		12.5%
Oil, Gas & Consumable Fuels		9.3%
Aerospace & Defense		8.9%
Pharmaceuticals		6.8%
Banks		5.8%
Personal Products		4.4%
Chemicals		4.1%
Construction & Engineering		4.0%
Insurance		3.9%
Electrical Equipment		3.9%

1. The FTSE France Capped Index is a free float-adjusted market capitalization-weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE France Capped Index is based on the FTSE France Index and is designed to measure the performance of French large- andmid-capitalization stocks.

2. Source: FactSet.

See www.franklintempletondatasources.com for additional data provider information.

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Statement of Investments (SOI). The SOI begins on page 206.



46	Annual Report	franklintempleton.com

FRANKLIN FTSE FRANCE ETF


Top 10 Holdings

3/31/19

Company *Sector/Industry, Country*	% of Total Net Assets
Total SA Oil, Gas & Consumable Fuels, France		9.3%
Sanofi Pharmaceuticals, France		6.5%
LVMH Moet Hennessy Louis Vuitton SE Textiles, Apparel & Luxury Goods, France		6.1%
Airbus SE Aerospace & Defense, France		4.9%
L’Oreal SA Personal Products, France		4.4%
Air Liquide SA Chemicals, France		3.6%
BNP Paribas SA Banks, France		3.5%
AXA SA Insurance, France		3.3%
Danone SA Food Products, France		3.1%
Vinci SA Construction & Engineering, France		3.1%

Manager’s Discussion

During the12-month period, the sectors that contributed most to the Fund’s absolute performance were consumer staples, industrials and consumer discretionary. Individual holdings that lifted the Fund’s absolute return included LVMH Moet Hennessy Louis Vuitton, L’Oreal and Kering.

For the same period, the sectors that detracted most from the Fund’s absolute performance were financials, information technology and utilities. Individual holdings that hindered the Fund’s absolute return included BNP Paribas, Societe Generale and Renault.

Thank you for your participation in Franklin FTSE France ETF. We look forward to serving your future investment needs.

LOGO

Dina Ting, CFA


		Louis Hsu, CFA

		Portfolio Management Team



franklintempleton.com	Annual Report	47

FRANKLIN FTSE FRANCE ETF

Performance Summary as of March 31, 2019

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (11/6/17), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Performance as of 3/31/19



	Cumulative Total Return¹				Average Annual Total Return¹
	Based on NAV²		Based on market price³		Based on NAV²		Based on market price³
1-Year		-3.07%		-4.03%		-3.07%		-4.03%
Since Inception (11/2/17)		-2.81%		-2.38%		-2.01%		-1.69%

See page 50 for Performance Summary footnotes.



48	Annual Report	franklintempleton.com

FRANKLIN FTSE FRANCE ETF

PERFORMANCE SUMMARY

Total Return Index Comparison for a Hypothetical $10,000 Investment

11/2/17–3/31/19

LOGO

See page 50 for Performance Summary footnotes.



franklintempleton.com	Annual Report	49

FRANKLIN FTSE FRANCE ETF

PERFORMANCE SUMMARY

Distributions(4/1/18–3/31/19)

Net Investment
Income

$0.687663

Total Annual Operating Expenses⁵

0.09%

ETFs trade like stocks, fluctuate in market value and may trade at prices above or below their net asset value. Brokerage commissions and ETF expenses will reduce returns.

1. Total return calculations represent the cumulative and average annual changes in value of an investment over the periods indicated. Return for less than one year, if any, has not been annualized.

2. Assumes reinvestment of distributions based on net asset value.

3. Assumes reinvestment of distributions based on market price.

4. Source: FactSet. The FTSE France Capped Index is a free float-adjusted market capitalization-weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE France Capped Index is based on the FTSE France Index and is designed to measure the performance of French large- andmid-capitalization stocks.

See www.franklintempletondatasources.com for additional data provider information.



50	Annual Report	franklintempleton.com

FRANKLIN FTSE FRANCE ETF

Your Fund’s Expenses

Actual Fund Expenses

The table below provides information about actual account values and actual expenses in the columns under the heading “Actual.” In these columns the Fund’s actual return, which includes the effect of Fund expenses, is used to calculate the “Ending Account Value.” You can estimate the expenses you paid during the period by following these steps (of course, your account value and expenses will differ from those in this illustration):Divide your account value by $1,000 (if your account had an $8,600 value, then $8,600÷ $1,000 = 8.6).Then multiply the result by the number in the row under the headings “Actual” and “Expenses Paid During Period” (if Actual Expenses Paid During Period were $7.50, then 8.6 x $7.50 = $64.50).In this illustration, the actual expenses paid this period are $64.50.

Hypothetical Example for Comparison with Other Funds

Under the heading “Hypothetical” in the table, information is provided about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. This information may not be used to estimate the actual ending account balance or expenses you paid for the period, but it can help you compare ongoing costs of investing in the Fund with those of other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.


		Actual (actual return after expenses)				Hypothetical (5% annual return before expenses)

Beginning Account Value 10/1/18		Ending Account Value 3/31/19		Expenses Paid During Period 10/1/18–3/31/19^1,2		Ending Account Value 3/31/19		Expenses Paid During Period 10/1/18–3/31/19^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	941.50	$	0.44	$	1,024.48	$	0.45		0.09	%

2. Reflects expenses after fee waivers and expense reimbursements.



franklintempleton.com	Annual Report	51

Franklin FTSE Germany ETF

This annual report for Franklin FTSE Germany ETF covers the fiscal year ended March 31, 2019.

Your Fund’s Goal and Main Investments

The Fund seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the FTSE Germany RIC Capped Index (the FTSE Germany Capped Index or the Underlying Index).¹ Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE Germany Capped Index and in depositary receipts representing such securities.

Performance Overview

During the12-month period, the Fund posted cumulative total returns of-13.89% based on market price and-13.72% based on net asset value. In comparison, the FTSE Germany Capped Index posted a-13.66% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 54.

Investment Strategy

The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE Germany Capped Index. We seek to achieve, over time, a correlation between the Fund’s performance, before fees and expenses, and that of the Underlying Index of 0.95 or better. A figure of 1.00 would indicate perfect correlation. Our intention is to replicate the component securities of the Underlying


Top 10 Sectors/Industries

3/31/19

	% of Total Net Assets
Insurance		11.6%
Automobiles		10.1%
Software		9.3%
Chemicals		8.8%
Industrial Conglomerates		7.2%
Pharmaceuticals		6.2%
Diversified Telecommunication Services		5.0%
Real Estate Management & Development		4.8%
Textiles, Apparel & Luxury Goods		4.6%
Multi-Utilities		3.8%

1. The FTSE Germany Capped Index is a free float-adjusted market capitalization-weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE Germany Capped Index is based on the FTSE Germany Index and is designed to measure the performance of German large- andmid-capitalization stocks.

2. Source: FactSet.

See www.franklintempletondatasources.com for additional data provider information.

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Statement of Investments (SOI). The SOI begins on page 209.



52	Annual Report	franklintempleton.com

FRANKLIN FTSE GERMANY ETF


Top 10 Holdings

3/31/19

Company *Sector/Industry, Country*	% of Total Net Assets
SAP SE Software, Germany		9.3%
Allianz SE Insurance, Germany		7.8%
Siemens AG Industrial Conglomerates, Germany		6.8%
BASF SE Chemicals, Germany		5.6%
Bayer AG Pharmaceuticals, Germany		5.0%
Deutsche Telekom AG Diversified Telecommunication Services, Germany		4.4%
Daimler AG Automobiles, Germany		4.2%
Adidas AG Textiles, Apparel & Luxury Goods, Germany		3.8%
Muenchener Rueckversicherungs-Gesellschaft Aktiengesellschaft in Muenchen Insurance, Germany		2.9%
Volkswagen AG Automobiles, Germany		2.8%

Manager’s Discussion

During the12-month period, the sectors that contributed most to the Fund’s absolute performance were utilities and real estate. Individual holdings that lifted the Fund’s absolute return included SAP, Deutsche Telekom and Allianz.

For the same period, the sectors that detracted most from the Fund’s absolute performance were consumer discretionary, health care and materials. Individual holdings that hindered the Fund’s absolute return included Bayer, BASF and Daimler.

Thank you for your participation in Franklin FTSE Germany ETF. We look forward to serving your future investment needs.

LOGO

Dina Ting, CFA


		Louis Hsu, CFA

		Portfolio Management Team



franklintempleton.com	Annual Report	53

FRANKLIN FTSE GERMANY ETF

Performance Summary as of March 31, 2019

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (11/6/17), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Performance as of 3/31/19



	Cumulative Total Return¹				Average Annual Total Return¹
	Based on NAV²		Based on market price³		Based on NAV²		Based on market price³
1-Year		-13.72%		-13.89%		-13.72%		-13.89%
Since Inception (11/2/17)		-16.93%		-16.86%		-12.34%		-12.29%

See page 56 for Performance Summary footnotes.



54	Annual Report	franklintempleton.com

FRANKLIN FTSE GERMANY ETF

PERFORMANCE SUMMARY

Total Return Index Comparison for a Hypothetical $10,000 Investment

11/2/17–3/31/19

LOGO

See page 56 for Performance Summary footnotes.



franklintempleton.com	Annual Report	55

FRANKLIN FTSE GERMANY ETF

PERFORMANCE SUMMARY

Distributions(4/1/18–3/31/19)

Net Investment
Income

$0.596692

Total Annual Operating Expenses⁵

0.09%

ETFs trade like stocks, fluctuate in market value and may trade at prices above or below their net asset value. Brokerage commissions and ETF expenses will reduce returns.

1. Total return calculations represent the cumulative and average annual changes in value of an investment over the periods indicated. Return for less than one year, if any, has not been annualized.

2. Assumes reinvestment of distributions based on net asset value.

3. Assumes reinvestment of distributions based on market price.

4. Source: FactSet. The FTSE Germany Capped Index is a free float-adjusted market capitalization-weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE Germany Capped Index is based on the FTSE Germany Index and is designed to measure the performance of German large- andmid-capitalization stocks.

See www.franklintempletondatasources.com for additional data provider information.



56	Annual Report	franklintempleton.com

FRANKLIN FTSE GERMANY ETF

Your Fund’s Expenses

Actual Fund Expenses

The table below provides information about actual account values and actual expenses in the columns under the heading “Actual.” In these columns the Fund’s actual return, which includes the effect of Fund expenses, is used to calculate the “Ending Account Value.” You can estimate the expenses you paid during the period by following these steps (of course, your account value and expenses will differ from those in this illustration):Divide your account value by $1,000 (if your account had an $8,600 value, then $8,600÷ $1,000 = 8.6).Then multiply the result by the number in the row under the headings “Actual” and “Expenses Paid During Period” (if Actual Expenses Paid During Period were $7.50, then 8.6 x $7.50 = $64.50).In this illustration, the actual expenses paid this period are $64.50.

Hypothetical Example for Comparison with Other Funds

Under the heading “Hypothetical” in the table, information is provided about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. This information may not be used to estimate the actual ending account balance or expenses you paid for the period, but it can help you compare ongoing costs of investing in the Fund with those of other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.


		Actual (actual return after expenses)				Hypothetical (5% annual return before expenses)

Beginning Account Value 10/1/18		Ending Account Value 3/31/19		Expenses Paid During Period 10/1/18–3/31/19^1,2		Ending Account Value 3/31/19		Expenses Paid During Period 10/1/18–3/31/19^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	906.30	$	0.43	$	1,024.48	$	0.45		0.09	%

2. Reflects expenses after fee waivers and expense reimbursements.



franklintempleton.com	Annual Report	57

Franklin FTSE Hong Kong ETF

This annual report for Franklin FTSE Hong Kong ETF covers the fiscal year ended March 31, 2019.

Your Fund’s Goal and Main Investments

The Fund seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the FTSE Hong Kong RIC Capped Index (the FTSE Hong Kong Capped Index or the Underlying Index).¹ Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE Hong Kong Capped Index and in depositary receipts representing such securities.

Performance Overview

During the12-month period, the Fund posted cumulative total returns of +3.50% based on market price and +4.97% based on net asset value. In comparison, the FTSE Hong Kong Capped Index posted a 4.97% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 60.

Investment Strategy

The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE Hong Kong Capped Index. We seek to achieve, over time, a correlation between the Fund’s performance, before fees and expenses, and that of the Underlying Index of 0.95 or better. A figure of 1.00 would indicate perfect correlation. Our intention is to replicate the component securities of the Underlying


Top 10 Sectors/Industries

3/31/19

	% of Total Net Assets
Real Estate Management & Development		20.7%
Insurance		19.5%
Industrial Conglomerates		9.0%
Capital Markets		7.3%
Hotels, Restaurants & Leisure		6.7%
Banks		6.2%
Electric Utilities		5.3%
Food Products		5.1%
Equity Real Estate Investment Trusts (REITs)		4.2%
Gas Utilities		3.7%

1. The FTSE Hong Kong Capped Index is a free float-adjusted market capitalization-weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE Hong Kong Capped Index is based on the FTSE Hong Kong Index and is designed to measure the performance of Hong Kong large- andmid-capitalization stocks.

2. Source: FactSet.

See www.franklintempletondatasources.com for additional data provider information.

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Statement of Investments (SOI). The SOI begins on page 212.



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Top 10 Holdings

3/31/19

Company *Sector/Industry, Country*	% of Total Net Assets
AIA Group Ltd. Insurance, Hong Kong		19.5%
Hong Kong Exchanges and Clearing Ltd. Capital Markets, Hong Kong		7.0%
CK Hutchison Holdings Ltd. Industrial Conglomerates, Hong Kong		4.6%
Sun Hung Kai Properties Ltd. Real Estate Management & Development, Hong Kong		4.0%
Link REIT Equity Real Estate Investment Trusts (REITs), Hong Kong		4.0%
CK Asset Holdings Ltd. Real Estate Management & Development, Hong Kong		3.9%
Hong Kong and China Gas Co. Ltd. Gas Utilities, Hong Kong		3.5%
CLP Holdings Ltd. Electric Utilities, Hong Kong		3.1%
Hang Seng Bank Ltd. Banks, Hong Kong		2.9%
BOC Hong Kong (Holdings) Ltd. Banks, Hong Kong		2.4%

Manager’s Discussion

During the12-month period, the sectors that contributed most to the Fund’s absolute performance were real estate, financials and utilities. Individual holdings that lifted the Fund’s absolute return included AIA Group, Link REIT and Hong Kong & China Gas.

For the same period, the sectors that detracted most from the Fund’s absolute performance were consumer discretionary, information technology and materials. Individual holdings that hindered the Fund’s absolute return included AAC Technologies Holdings, Galaxy Entertainment Group and CK Hutchison Holdings.

Thank you for your participation in Franklin FTSE Hong Kong ETF. We look forward to serving your future investment needs.

LOGO

Dina Ting, CFA


		Louis Hsu, CFA

		Portfolio Management Team



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FRANKLIN FTSE HONG KONG ETF

Performance Summary as of March 31, 2019

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (11/6/17), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Performance as of 3/31/19

Cumulative Total Return¹

Average Annual Total Return¹

Based on
NAV²

Based on

market price³

Based on
NAV²

Based on

market price³

1-Year

+4.97%

+3.50%

+4.97%

+3.50%

Since Inception (11/2/17)

+8.86%

+9.42%

+6.21%

+6.60%

See page 62 for Performance Summary footnotes.



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FRANKLIN FTSE HONG KONG ETF

PERFORMANCE SUMMARY

Total Return Index Comparison for a Hypothetical $10,000 Investment

11/2/17–3/31/19

LOGO

See page 62 for Performance Summary footnotes.



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FRANKLIN FTSE HONG KONG ETF

PERFORMANCE SUMMARY

Distributions(4/1/18–3/31/19)

Net Investment
Income

$0.602370

Total Annual Operating Expenses⁵

0.09%

ETFs trade like stocks, fluctuate in market value and may trade at prices above or below their net asset value. Brokerage commissions and ETF expenses will reduce returns.

1. Total return calculations represent the cumulative and average annual changes in value of an investment over the periods indicated. Return for less than one year, if any, has not been annualized.

2. Assumes reinvestment of distributions based on net asset value.

3. Assumes reinvestment of distributions based on market price.

4. Source: FactSet. The FTSE Hong Kong Capped Index is a free float-adjusted market capitalization-weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE Hong Kong Capped Index is based on the FTSE Hong Kong Index and is designed to measure the performance of Hong Kong large- andmid-capitalization stocks.

See www.franklintempletondatasources.com for additional data provider information.



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FRANKLIN FTSE HONG KONG ETF

Your Fund’s Expenses

Actual Fund Expenses

The table below provides information about actual account values and actual expenses in the columns under the heading “Actual.” In these columns the Fund’s actual return, which includes the effect of Fund expenses, is used to calculate the “Ending Account Value.” You can estimate the expenses you paid during the period by following these steps (of course, your account value and expenses will differ from those in this illustration):Divide your account value by $1,000 (if your account had an $8,600 value, then $8,600÷ $1,000 = 8.6).Then multiply the result by the number in the row under the headings “Actual” and “Expenses Paid During Period” (if Actual Expenses Paid During Period were $7.50, then 8.6 x $7.50 = $64.50).In this illustration, the actual expenses paid this period are $64.50.

Hypothetical Example for Comparison with Other Funds

Under the heading “Hypothetical” in the table, information is provided about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. This information may not be used to estimate the actual ending account balance or expenses you paid for the period, but it can help you compare ongoing costs of investing in the Fund with those of other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.


		Actual (actual return after expenses)				Hypothetical (5% annual return before expenses)

Beginning Account Value 10/1/18		Ending Account Value 3/31/19		Expenses Paid During Period 10/1/18–3/31/19^1,2		Ending Account Value 3/31/19		Expenses Paid During Period 10/1/18–3/31/19^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	1,084.50	$	0.47	$	1,024.48	$	0.45		0.09	%

2. Reflects expenses after fee waivers and expense reimbursements.



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Franklin FTSE India ETF

This annual report for Franklin FTSE India ETF covers the fiscal year ended March 31, 2019.

Your Fund’s Goal and Main Investments

The Fund seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the FTSE India RIC Capped Index (the FTSE India Capped Index or the Underlying Index).¹ Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE India Capped Index and in depositary receipts representing such securities.

Performance Overview

During the12-month period, the Fund posted cumulative total returns of +2.13% based on market price and +3.66% based on net asset value. In comparison, the FTSE India Capped Index posted a +4.63% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 66.

Investment Strategy

The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE India Capped Index. We seek to achieve, over time, a correlation between the Fund’s performance, before fees and expenses, and that of the Underlying Index of 0.95 or better. A figure of 1.00 would indicate perfect correlation. Our intention is to replicate the component securities of the Underlying


Top 10 Sectors/Industries

3/31/19

	% of Total Net Assets
Oil, Gas & Consumable Fuels		16.2%
IT Services		15.8%
Thrifts & Mortgage Finance		10.0%
Banks		8.4%
Automobiles		5.8%
Pharmaceuticals		4.9%
Metals & Mining		3.3%
Household Products		3.2%
Construction Materials		3.0%
Chemicals		3.0%

1. The FTSE India Capped Index is a free float-adjusted market capitalization-weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE India Capped Index is based on the FTSE India Index and is designed to measure the performance of Indian large- andmid-capitalization stocks.

2. Source: FactSet.

See www.franklintempletondatasources.com for additional data provider information.

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Statement of Investments (SOI). The SOI begins on page 216.



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Top 10 Holdings

3/31/19

Company *Sector/Industry, Country*	% of Total Net Assets
Reliance Industries Ltd. Oil, Gas & Consumable Fuels, India		11.0%
Housing Development Finance Corp. Ltd. Thrifts & Mortgage Finance, India		8.8%
Infosys Ltd. IT Services, India		7.4%
Tata Consultancy Services Ltd. IT Services, India		4.7%
Axis Bank Ltd. Banks, India		3.6%
Hindustan Unilever Ltd. Household Products, India		3.2%
ITC Ltd. Tobacco, India		2.3%
Maruti Suzuki India Ltd. Automobiles, India		2.1%
HCL Technologies Ltd. IT Services, India		1.5%
State Bank of India Banks, India		1.5%

Manager’s Discussion

During the12-month period, the sectors that contributed most to the Fund’s absolute performance were information technology, energy and financials. Individual holdings that lifted the Fund’s absolute return included Reliance Industries, Infosys and Axis Bank.

For the same period, the sectors that detracted most from the Fund’s absolute performance were consumer discretionary, communication services and materials. Individual holdings that hindered the Fund’s absolute return included Maruti Suzuki India, Tata Motors and Vedanta.

Thank you for your participation in Franklin FTSE India ETF. We look forward to serving your future investment needs.

LOGO

Dina Ting, CFA


		Louis Hsu, CFA

		Portfolio Management Team



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FRANKLIN FTSE INDIA ETF

Performance Summary as of March 31, 2019

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (2/9/18), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Performance as of 3/31/19

Cumulative Total Return¹

Average Annual Total Return¹

Based on
NAV²

Based on

market price³

Based on
NAV²

Based on

market price³

1-Year

+3.66%

+2.13%

+3.66%

+2.13%

Since Inception (2/6/18)

-0.62%

-0.32%

-0.54%

-0.28%

See page 68 for Performance Summary footnotes.



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FRANKLIN FTSE INDIA ETF

PERFORMANCE SUMMARY

Total Return Index Comparison for a Hypothetical $10,000 Investment

2/6/18–3/31/19

LOGO

See page 68 for Performance Summary footnotes.



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FRANKLIN FTSE INDIA ETF

PERFORMANCE SUMMARY

Distributions(4/1/18–3/31/19)

Net Investment
Income

$0.203077

Total Annual Operating Expenses⁵

0.19%

All investments involve risks, including possible loss of principal. Special risks are associated with foreign investing, including currency fluctuations, economic instability and political developments. Investments in developing markets involve heightened risks related to the same factors, in addition to those associated with these markets’ smaller size, lesser liquidity and lack of established legal, political, business and social frameworks to support securities markets. Investments in securities of Indian issuers involve risks that are specific to India, including certain legal, regulatory, political and economic risks. There are special risks associated with investments in India, including exposure to currency fluctuations, less liquidity, expropriation, confiscatory taxation, and exchange control regulations (including currency blockage). Because the Fund invests its assets primarily in companies in a specific country or region, the Fund may also experience greater volatility than a fund that is more broadly diversified geographically. As anon-diversified fund, the Fund may invest in a relatively small number of issuers and, as a result, be subject to a greater risk of loss with respect to its portfolio securities. The Fund’s prospectus also includes a description of the main investment risks.

ETFs trade like stocks, fluctuate in market value and may trade at prices above or below their net asset value. Brokerage commissions and ETF expenses will reduce returns.

1. Total return calculations represent the cumulative and average annual changes in value of an investment over the periods indicated. Return for less than one year, if any, has not been annualized.

2. Assumes reinvestment of distributions based on net asset value.

3. Assumes reinvestment of distributions based on market price.

4. Source: FactSet. The FTSE India Capped Index is a free float-adjusted market capitalization-weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE India Capped Index is based on the FTSE India Index and is designed to measure the performance of Indian large- andmid-capitalization stocks.

See www.franklintempletondatasources.com for additional data provider information.



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FRANKLIN FTSE INDIA ETF

Your Fund’s Expenses

Actual Fund Expenses

The table below provides information about actual account values and actual expenses in the columns under the heading “Actual.” In these columns the Fund’s actual return, which includes the effect of Fund expenses, is used to calculate the “Ending Account Value.” You can estimate the expenses you paid during the period by following these steps (of course, your account value and expenses will differ from those in this illustration):Divide your account value by $1,000 (if your account had an $8,600 value, then $8,600÷ $1,000 = 8.6).Then multiply the result by the number in the row under the headings “Actual” and “Expenses Paid During Period” (if Actual Expenses Paid During Period were $7.50, then 8.6 x $7.50 = $64.50).In this illustration, the actual expenses paid this period are $64.50.

Hypothetical Example for Comparison with Other Funds

Under the heading “Hypothetical” in the table, information is provided about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. This information may not be used to estimate the actual ending account balance or expenses you paid for the period, but it can help you compare ongoing costs of investing in the Fund with those of other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.


		Actual (actual return after expenses)				Hypothetical (5% annual return before expenses)

Beginning Account Value 10/1/18		Ending Account Value 3/31/19		Expenses Paid During Period 10/1/18–3/31/19^1,2		Ending Account Value 3/31/19		Expenses Paid During Period 10/1/18–3/31/19^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	1,086.10	$	0.99	$	1,023.98	$	0.96		0.19	%

2. Reflects expenses after fee waivers and expense reimbursements.



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Franklin FTSE Italy ETF

This annual report for Franklin FTSE Italy ETF covers the fiscal year ended March 31, 2019.

Your Fund’s Goal and Main Investments

The Fund seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the FTSE Italy RIC Capped Index (the FTSE Italy Capped Index or the Underlying Index).¹ Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE Italy Capped Index and in depositary receipts representing such securities.

Performance Overview

During the12-month period, the Fund posted cumulative total returns of-7.82% based on market price and-9.67% based on net asset value. In comparison, the FTSE Italy Capped Index posted a-9.91% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 72.

Investment Strategy

The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE Italy Capped Index. We seek to achieve, over time, a correlation between the Fund’s performance, before fees and expenses, and that of the Underlying Index of 0.95 or better. A figure of 1.00 would indicate perfect correlation. Our intention is to replicate the component securities of the Underlying


Top 10 Sectors/Industries

3/31/19

	% of Total Net Assets
Banks		22.9%
Electric Utilities		15.5%
Oil, Gas & Consumable Fuels		14.8%
Automobiles		8.9%
Insurance		8.3%
Transportation Infrastructure		3.8%
Diversified Telecommunication Services		3.0%
Machinery		3.0%
Energy Equipment & Services		3.0%
Diversified Financial Services		2.8%

1. The FTSE Italy Capped Index is a free float-adjusted market capitalization-weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE Italy Capped Index is based on the FTSE Italy Index and is designed to measure the performance of Italian large- andmid-capitalization stocks.

2. Source: FactSet.

See www.franklintempletondatasources.com for additional data provider information.

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Statement of Investments (SOI). The SOI begins on page 221.



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Top 10 Holdings

3/31/19

Company *Sector/Industry, Country*	% of Total Net Assets
Enel SpA Electric Utilities, Italy		12.8%
Eni SpA Oil, Gas & Consumable Fuels, Italy		11.4%
Intesa Sanpaolo SpA Banks, Italy		9.6%
UniCredit SpA Banks, Italy		7.6%
Assicurazioni Generali SpA Insurance, Italy		6.4%
Ferrari NV Automobiles, Italy		4.5%
Fiat Chrysler Automobiles NV Automobiles, United Kingdom		4.4%
Atlantia SpA Transportation Infrastructure, Italy		3.8%
Snam SpA Oil, Gas & Consumable Fuels, Italy		3.4%
Telecom Italia SpA, di Risp Diversified Telecommunication Services, Italy		3.0%

Manager’s Discussion

During the12-month period, the sectors that contributed most to the Fund’s absolute performance were utilities, energy and consumer staples. Individual holdings that lifted the Fund’s absolute return included Enel, Eni and Davide Campari-Milano.

For the same period, the sectors that detracted most from the Fund’s absolute performance were financials, industrials and consumer discretionary. Individual holdings that hindered the Fund’s absolute return included UniCredit, Intesa Sanpaolo and Fiat Chrysler Automobiles.

Thank you for your participation in Franklin FTSE Italy ETF. We look forward to serving your future investment needs.

LOGO

Dina Ting, CFA


		Louis Hsu, CFA

		Portfolio Management Team



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FRANKLIN FTSE ITALY ETF

Performance Summary as of March 31, 2019

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (11/6/17), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Performance as of 3/31/19



	Cumulative Total Return¹				Average Annual Total Return¹
	Based on NAV²		Based on market price³		Based on NAV²		Based on market price³
1-Year		-9.67%		-7.82%		-9.67%		-7.82%
Since Inception (11/2/17)		-6.79%		-6.55%		-4.87%		-4.70%

See page 74 for Performance Summary footnotes.



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FRANKLIN FTSE ITALY ETF

PERFORMANCE SUMMARY

Total Return Index Comparison for a Hypothetical $10,000 Investment

11/2/17–3/31/19

LOGO

See page 74 for Performance Summary footnotes.



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FRANKLIN FTSE ITALY ETF

PERFORMANCE SUMMARY

Distributions(4/1/18–3/31/19)

Net Investment
Income

$0.612131

Total Annual Operating Expenses⁵

0.09%

ETFs trade like stocks, fluctuate in market value and may trade at prices above or below their net asset value. Brokerage commissions and ETF expenses will reduce returns.

1. Total return calculations represent the cumulative and average annual changes in value of an investment over the periods indicated. Return for less than one year, if any, has not been annualized.

2. Assumes reinvestment of distributions based on net asset value.

3. Assumes reinvestment of distributions based on market price.

4. Source: FactSet. The FTSE Italy Capped Index is a free float-adjusted market capitalization-weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE Italy Capped Index is based on the FTSE Italy Index and is designed to measure the performance of Italian large- andmid-capitalization stocks.

See www.franklintempletondatasources.com for additional data provider information.



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FRANKLIN FTSE ITALY ETF

Your Fund’s Expenses

Actual Fund Expenses

The table below provides information about actual account values and actual expenses in the columns under the heading “Actual.” In these columns the Fund’s actual return, which includes the effect of Fund expenses, is used to calculate the “Ending Account Value.” You can estimate the expenses you paid during the period by following these steps (of course, your account value and expenses will differ from those in this illustration):Divide your account value by $1,000 (if your account had an $8,600 value, then $8,600÷ $1,000 = 8.6).Then multiply the result by the number in the row under the headings “Actual” and “Expenses Paid During Period” (if Actual Expenses Paid During Period were $7.50, then 8.6 x $7.50 = $64.50).In this illustration, the actual expenses paid this period are $64.50.

Hypothetical Example for Comparison with Other Funds

Under the heading “Hypothetical” in the table, information is provided about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. This information may not be used to estimate the actual ending account balance or expenses you paid for the period, but it can help you compare ongoing costs of investing in the Fund with those of other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.


		Actual (actual return after expenses)				Hypothetical (5% annual return before expenses)

Beginning Account Value 10/1/18		Ending Account Value 3/31/19		Expenses Paid During Period 10/1/18–3/31/19^1,2		Ending Account Value 3/31/19		Expenses Paid During Period 10/1/18–3/31/19^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	1,005.50	$	0.45	$	1,024.48	$	0.45		0.09	%

2. Reflects expenses after fee waivers and expense reimbursements.



franklintempleton.com	Annual Report	75

Franklin FTSE Japan ETF

This annual report for Franklin FTSE Japan ETF covers the fiscal year ended March 31, 2019.

Your Fund’s Goal and Main Investments

The Fund seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the FTSE Japan RIC Capped Index (the FTSE Japan Capped Index or the Underlying Index).¹ Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE Japan Capped Index and in depositary receipts representing such securities.

Performance Overview

During the12-month period, the Fund posted cumulative total returns of-8.50% based on market price and-7.41% based on net asset value. In comparison, the FTSE Japan Capped Index posted a-8.23% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 78.

Investment Strategy

The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE Japan Capped Index. We seek to achieve, over time, a correlation between the Fund’s performance, before fees and expenses, and that of the Underlying Index of 0.95 or better. A figure of 1.00 would indicate perfect correlation. Our intention is to replicate the component securities of the Underlying


Top 10 Sectors/Industries

3/31/19

	% of Total Net Assets
Automobiles		7.2%
Pharmaceuticals		6.4%
Banks		6.1%
Electronic Equipment, Instruments & Components		5.6%
Machinery		5.1%
Road & Rail		4.9%
Wireless Telecommunication Services		4.5%
Chemicals		4.3%
Trading Companies & Distributors		3.5%
Real Estate Management & Development		3.0%

1. The FTSE Japan Capped Index is a free float-adjusted market capitalization-weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE Japan Capped Index is based on the FTSE Japan Index and is designed to measure the performance of Japanese large- andmid-capitalization stocks.

2. Source: FactSet.

See www.franklintempletondatasources.com for additional data provider information.

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Statement of Investments (SOI). The SOI begins on page 223.



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Top 10 Holdings

3/31/19

Company *Sector/Industry, Country*	% of Total Net Assets
Toyota Motor Corp. Automobiles, Japan		4.0%
SoftBank Group Corp. Wireless Telecommunication Services, Japan		2.3%
Mitsubishi UFJ Financial Group Inc. Banks, Japan		1.7%
Takeda Pharmaceutical Co. Ltd. Pharmaceuticals, Japan		1.7%
Keyence Corp. Electronic Equipment, Instruments & Components, Japan		1.5%
Sony Corp. Household Durables, Japan		1.4%
Honda Motor Co. Ltd. Automobiles, Japan		1.3%
Sumitomo Mitsui Financial Group Inc. Banks, Japan		1.3%
Central Japan Railway Co. Road & Rail, Japan		1.1%
Mizuho Financial Group Inc. Banks, Japan		1.1%

Manager’s Discussion

During the12-month period, the sectors that contributed most to the Fund’s absolute performance were health care and utilities. Individual holdings that lifted the Fund’s absolute return included Softbank Group, Daiichi Sankyo and Central Japan Railway.

For the same period, the sectors that detracted most from the Fund’s absolute performance were consumer discretionary, financials and industrials. Individual holdings that hindered the Fund’s absolute return included Mitsubishi UFJ Financial Group, Nintendo and FANUC.

Thank you for your participation in Franklin FTSE Japan ETF. We look forward to serving your future investment needs.

LOGO

Dina Ting, CFA


		Louis Hsu, CFA

		Portfolio Management Team



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FRANKLIN FTSE JAPAN ETF

Performance Summary as of March 31, 2019

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (11/6/17), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Performance as of 3/31/19



	Cumulative Total Return¹					Average Annual Total Return¹
	Based on NAV²			Based on market price³		Based on NAV²			Based on market price³
1-Year		-7.41%	⁴		-8.50%		-7.41%	⁴		-8.50%
Since Inception (11/2/17)		-5.25%			-5.01%		-3.76%			-3.59%

See page 80 for Performance Summary footnotes.



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FRANKLIN FTSE JAPAN ETF

PERFORMANCE SUMMARY

Total Return Index Comparison for a Hypothetical $10,000 Investment

11/2/17–3/31/19

LOGO

See page 80 for Performance Summary footnotes.



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FRANKLIN FTSE JAPAN ETF

PERFORMANCE SUMMARY

Distributions(4/1/18–3/31/19)

Net Investment
Income

$0.337036

Total Annual Operating Expenses⁶

0.09%

ETFs trade like stocks, fluctuate in market value and may trade at prices above or below their net asset value. Brokerage commissions and ETF expenses will reduce returns.

1. Total return calculations represent the cumulative and average annual changes in value of an investment over the periods indicated. Return for less than one year, if any, has not been annualized.

2. Assumes reinvestment of distributions based on net asset value.

3. Assumes reinvestment of distributions based on market price.

4. Total return information is based on net asset values calculated for shareholder transactions. Certain adjustments were made to net assets of the Fund at 3/31/18 for financial reporting purposes, and as a result, the total returns based on those net asset values differ from the adjusted total returns reported in the Financial Highlights.

5. Source: FactSet. The FTSE Japan Capped Index is a free float-adjusted market capitalization-weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE Japan Capped Index is based on the FTSE Japan Index and is designed to measure the performance of Japanese large- andmid-capitalization stocks.

See www.franklintempletondatasources.com for additional data provider information.



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FRANKLIN FTSE JAPAN ETF

Your Fund’s Expenses

Actual Fund Expenses

The table below provides information about actual account values and actual expenses in the columns under the heading “Actual.” In these columns the Fund’s actual return, which includes the effect of Fund expenses, is used to calculate the “Ending Account Value.” You can estimate the expenses you paid during the period by following these steps (of course, your account value and expenses will differ from those in this illustration):Divide your account value by $1,000 (if your account had an $8,600 value, then $8,600÷ $1,000 = 8.6).Then multiply the result by the number in the row under the headings “Actual” and “Expenses Paid During Period” (if Actual Expenses Paid During Period were $7.50, then 8.6 x $7.50 = $64.50).In this illustration, the actual expenses paid this period are $64.50.

Hypothetical Example for Comparison with Other Funds

Under the heading “Hypothetical” in the table, information is provided about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. This information may not be used to estimate the actual ending account balance or expenses you paid for the period, but it can help you compare ongoing costs of investing in the Fund with those of other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.


		Actual (actual return after expenses)				Hypothetical (5% annual return before expenses)

Beginning Account Value 10/1/18		Ending Account Value 3/31/19		Expenses Paid During Period 10/1/18–3/31/19^1,2		Ending Account Value 3/31/19		Expenses Paid During Period 10/1/18–3/31/19^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	912.70	$	0.43	$	1,024.48	$	0.45		0.09	%

2. Reflects expenses after fee waivers and expense reimbursements.



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Franklin FTSE Japan Hedged ETF

This annual report for Franklin FTSE Japan Hedged ETF covers the fiscal year ended on March 31, 2019.

Your Fund’s Goal and Main Investments

The Fund seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the FTSE Japan RIC Capped Hedged to USD Index (the FTSE Japan Capped Hedged Index or the Underlying Index).¹ Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE Japan Capped Hedged Index and in depositary receipts representing such securities, including indirectly through Franklin FTSE Japan ETF (Underlying Fund).

Performance Overview

During the12-month, the Fund posted cumulative total returns of-1.46% based on market price and-1.85% based on net asset value. In comparison, the FTSE Japan Capped Hedged Index posted a-2.56% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 84.

Investment Strategy

The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE Japan Capped Hedged Index. We seek to achieve, over time, a correlation between the Fund’s performance, before fees and expenses, and that of the Underlying Index of 0.95 or better. A figure of 1.00 would indicate perfect correlation. Our intention is to replicate the component securities of the


Top 10 Sectors/Industries

3/31/19

	% of Total Net Assets
Automobiles		7.2%
Pharmaceuticals		6.3%
Banks		6.1%
Electronic Equipment, Instruments & Components		5.5%
Machinery		5.0%
Road & Rail		4.8%
Wireless Telecommunication Services		4.5%
Chemicals		4.3%
Trading Companies & Distributors		3.5%
Real Estate Management & Development		3.0%

Underlying Index as closely as possible (i.e., invest in all of the component securities in their respective weightings in the Underlying Index). However, under various circumstances, it may not be possible or practicable to replicate the Underlying Index. In these circumstances, we may use a “representative sampling” strategy whereby we would invest in what we believe to be a representative sample of the component securities of the Underlying Index, but may not track the Underlying Index with the same degree of accuracy as would an investment vehicle replicating the entire Underlying Index. Under the representative sampling technique, we will select securities that collectively have an investment profile similar to that of the Underlying Index, including securities that resemble those included in the Underlying Index in terms of risk factors, performance attributes and other characteristics, such as market capitalization and industry weightings. We intend to enter into monthly foreign currency forward contracts and/or currency futures contracts designed to offset the Fund’s exposure to the Japanese yen, in order to replicate the hedge impact incorporated in the calculation of the Underlying Index. The Fund’s exposure to foreign currency forward contracts and currency futures contracts is based on the aggregate exposure of the Fund to the Japanese yen.

1. The FTSE Japan Capped Hedged Index is a free float-adjusted market capitalization-weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE Japan Capped Hedged Index is based on the FTSE Japan Hedged to USD Index and is designed to measure the performance of Japanese large- andmid-capitalization stocks. The FTSE Japan Capped Hedged Index incorporates a hedge against fluctuations of the Japanese yen by reflecting the impact of rolling monthly currency forward contracts on the Japanese yen.

2. Source: FactSet.

See www.franklintempletondatasources.com for additional data provider information.

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Statement of Investments (SOI). The SOI begins on page 234.



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FRANKLIN FTSE JAPAN HEDGED ETF


Top 10 Holdings

3/31/19

Company *Sector/Industry, Country*	% of Total Net Assets
Toyota Motor Corp. Automobiles, Japan		4.0%
SoftBank Group Corp. Wireless Telecommunication Services, Japan		2.2%
Mitsubishi UFJ Financial Group Inc. Banks, Japan		1.7%
Takeda Pharmaceutical Co. Ltd. Pharmaceuticals, Japan		1.7%
Keyence Corp. Electronic Equipment, Instruments & Components, Japan		1.5%
Sony Corp. Household Durables, Japan		1.5%
Honda Motor Co. Ltd. Automobiles, Japan		1.3%
Sumitomo Mitsui Financial Group Inc. Banks, Japan		1.2%
Central Japan Railway Co. Road & Rail, Japan		1.2%
Mizuho Financial Group Inc. Banks, Japan		1.1%

The Fund will concentrate its investments (i.e., hold 25% or more of its net assets) in a particular industry or group of industries to approximately the same extent that the Underlying Index is concentrated.

What is a currency forward contract?

What is a futures contract?

Manager’s Discussion

During the12-month period, the sectors that contributed most to the Fund’s absolute performance were utilities and

health care. Individual holdings that lifted the Fund’s absolute return included Softbank Group, Central Japan Railway and Daiichi Sankyo. The Fund’s use of currency forward contracts—designed to offset the Fund’s exposure to the Japanese yen and to replicate the hedge impact incorporated in the calculation of the Underlying Index—also contributed to the Fund’s absolute performance. However, one cannot expect the same result in future periods.

Thank you for your participation in Franklin FTSE Japan Hedged ETF. We look forward to serving your future investment needs.

LOGO

Dina Ting, CFA


		Louis Hsu, CFA

		Portfolio Management Team



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FRANKLIN FTSE JAPAN HEDGED ETF

Performance Summary as of March 31, 2019

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (11/6/17), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Performance as of 3/31/19



	Cumulative Total Return¹					Average Annual Total Return¹
	Based on NAV²			Based on market price³		Based on NAV²			Based on market price³
1-Year		-1.85%	⁴		-1.46%		-1.85%	⁴		-1.46%
Since Inception (11/2/17)		-5.55%			-5.45%		-3.98%			-3.90%

See page 86 for Performance Summary footnotes.



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FRANKLIN FTSE JAPAN HEDGED ETF

PERFORMANCE SUMMARY

Total Return Index Comparison for a Hypothetical $10,000 Investment

11/2/17–3/31/19

LOGO

See page 86 for Performance Summary footnotes.



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FRANKLIN FTSE JAPAN HEDGED ETF

PERFORMANCE SUMMARY

Distributions(4/1/18–3/31/19)



Net Investment Income	Long-Term Capital Gain		Total
$0.011378		$1.246100		$1.257478

Total Annual Operating Expenses⁶

0.09%

All investments involve risks, including possible loss of principal. Special risks are associated with foreign investing, including currency fluctuations, economic instability and political developments. Investments in securities of Japanese issuers involve risks that are specific to Japan, including certain legal, regulatory, political and economic risks. Because the Fund invests its assets primarily in companies in a specific country or region, the Fund may also experience greater volatility than a fund that is more broadly diversified geographically. Derivatives, including currency management strategies, involve costs and can create economic leverage in the portfolio, which may result in significant volatility and cause the Fund to participate in losses on an amount that exceeds the Fund’s initial investment. The Fund may not achieve the anticipated benefits, and may realize losses when a counterparty fails to perform as promised. While the Fund’s use of foreign currency forward contracts and/or currency futures contracts is designed to minimize the impact of currency fluctuations on Fund returns, it does not necessarily eliminate the Fund’s exposure to the Japanese yen. The return of these currency hedging instruments will not perfectly offset the actual fluctuations between the Japanese yen and the U.S. dollar. Currency hedges are sometimes subject to imperfect matching between the derivative instruments and the currencies that the derivative instruments intend to hedge, and there can be no assurance that the Fund’s hedging transactions will be effective. The Fund’s exposure to the Japanese yen may not be fully hedged at all times. Because the Fund’s currency hedge is generally reset on a monthly basis, currency risk can develop or increase intra-month. The Fund’s prospectus also includes a description of the main investment risks.

ETFs trade like stocks, fluctuate in market value and may trade at prices above or below their net asset value. Brokerage commissions and ETF expenses will reduce returns.

1. Total return calculations represent the cumulative and average annual changes in value of an investment over the periods indicated. Return for less than one year, if any, has not been annualized.

2. Assumes reinvestment of distributions based on net asset value.

3. Assumes reinvestment of distributions based on market price.

5. Source: FactSet. The FTSE Japan Capped Hedged Index is a free float-adjusted market capitalization-weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE Japan Capped Hedged Index is based on the FTSE Japan Hedged to USD Index and is designed to measure the performance of Japanese large- andmid-capitalization stocks. The FTSE Japan Capped Hedged Index incorporates a hedge against fluctuations of the Japanese yen by reflecting the impact of rolling monthly currency forward contracts on the Japanese yen.

See www.franklintempletondatasources.com for additional data provider information.



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FRANKLIN FTSE JAPAN HEDGED ETF

Your Fund’s Expenses

Actual Fund Expenses

The table below provides information about actual account values and actual expenses in the columns under the heading “Actual.” In these columns the Fund’s actual return, which includes the effect of Fund expenses, is used to calculate the “Ending Account Value.” You can estimate the expenses you paid during the period by following these steps (of course, your account value and expenses will differ from those in this illustration):Divide your account value by $1,000 (if your account had an $8,600 value, then $8,600÷ $1,000 = 8.6).Then multiply the result by the number in the row under the headings “Actual” and “Expenses Paid During Period” (if Actual Expenses Paid During Period were $7.50, then 8.6 x $7.50 = $64.50).In this illustration, the actual expenses paid this period are $64.50.

Hypothetical Example for Comparison with Other Funds

Under the heading “Hypothetical” in the table, information is provided about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. This information may not be used to estimate the actual ending account balance or expenses you paid for the period, but it can help you compare ongoing costs of investing in the Fund with those of other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.


		Actual (actual return after expenses)				Hypothetical (5% annual return before expenses)

Beginning Account Value 10/1/18		Ending Account Value 3/31/19		Expenses Paid During Period 10/1/18–3/31/19^1,2		Ending Account Value 3/31/19		Expenses Paid During Period 10/1/18–3/31/19^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	899.20	$	0.43	$	1,024.48	$	0.45		0.09	%

2. Reflects expenses after fee waivers and expense reimbursements.



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Franklin FTSE Latin America ETF

This annual report for Franklin FTSE Latin America ETF covers the period since the Fund’s inception on October 9, 2018, through March 31, 2019.

Your Fund’s Goal and Main Investments

The Fund seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the FTSE Latin America RIC Capped Index (the FTSE Latin America Capped Index or the Underlying Index).¹ Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE Latin America Capped Index and in depositary receipts representing such securities.

Performance Overview

For the period since inception on October 9, 2018, through March 31, 2019, the Fund posted cumulative total returns of +1.18% based on market price and +1.42% based on net asset value.² In comparison, the FTSE Latin America Capped Index posted a +1.47% total return for the same period.³ You can find more of the Fund’s performance data in the Performance Summary beginning on page 90.

Investment Strategy

The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE Latin America Capped Index. We seek to achieve, over time, a correlation between the Fund’s performance, before fees and expenses, and that of the Underlying Index of 0.95 or


Top 10 Sectors/Industries

3/31/19

	% of Total Net Assets
Banks		27.7%
Oil, Gas & Consumable Fuels		10.5%
Metals & Mining		10.5%
Beverages		7.1%
Electric Utilities		4.5%
Food & Staples Retailing		4.0%
Wireless Telecommunication Services		3.5%
Multiline Retail		3.3%
Capital Markets		2.7%
Food Products		2.6%

better. A figure of 1.00 would indicate perfect correlation. Our intention is to replicate the component securities of the Underlying Index as closely as possible (i.e., invest in all of the component securities in their respective weightings in the Underlying Index). However, under various circumstances, it may not be possible or practicable to replicate the Underlying Index. In these circumstances, we may use a “representative sampling” strategy whereby we would invest in what we believe to be a representative sample of the component securities of the Underlying Index, but may not track the Underlying Index with the same degree of accuracy as would an investment vehicle replicating the entire Underlying Index. Under the representative sampling technique, we will select securities that collectively have an investment profile similar to that of the Underlying Index, including securities that resemble those included in the Underlying Index in terms of risk factors, performance attributes and other characteristics, such as market capitalization and industry weightings. The Fund will concentrate its investments (i.e., hold 25% or more of its net assets) in a particular industry or group of industries to approximately the same extent that the Underlying Index is concentrated.

1. The FTSE Latin America Capped Index is a free float-adjusted market capitalization-weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE Latin America Capped Index is based on the FTSE Latin America Index and is designed to measure the performance of Latin American large- andmid-capitalization stocks.

2. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (10/11/18), the NAV of the Fund is used as a proxy for the market price to calculate market returns.

3. Source: FactSet.

See www.franklintempletondatasources.com for additional data provider information.

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Statement of Investments (SOI). The SOI begins on page 245.



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Top 10 Holdings

3/31/19

Company *Sector/Industry, Country*	% of Total Net Assets
Petroleo Brasileiro SA Oil, Gas & Consumable Fuels, Brazil		7.8%
Vale SA Metals & Mining, Brazil		6.8%
Banco Bradesco SA Banks, Brazil		6.8%
Itau Unibanco Holding SA Banks, Brazil		6.2%
America Movil SAB de CV, L Wireless Telecommunication Services, Mexico		2.9%
Fomento Economico Mexicano SAB de CV Beverages, Mexico		2.9%
Ambev SA Beverages, Brazil		2.8%
B3 SA - Brasil Bolsa Balcao Capital Markets, Brazil		2.4%
Credicorp Ltd. Banks, Peru		2.4%
Grupo Financiero Banorte SAB de CV Banks, Mexico		2.3%

Manager’s Discussion

For the period since the Fund’s inception on October 9, 2018, through March 31, 2019, the sectors that contributed most to the Fund’s absolute performance were financials, utilities and industrials. Individual holdings that lifted the Fund’s absolute return included Banco Bradesco, Itau Unibanco Holding and B3 - Brasil Bolsa Balcao.

For the same period, the sectors that detracted most from the Fund’s absolute performance were materials, communication services and consumer staples. Individual holdings that hindered the Fund’s absolute return included Vale, Grupo Financiero Banorte and Grupo Televisa.

Thank you for your participation in Franklin FTSE Latin America ETF. We look forward to serving your future investment needs.


Country Composition

3/31/19

	% of Total Net Assets
Brazil		61.9%
Mexico		22.7%
Chile		8.5%
Colombia		3.5%
Peru		2.9%
Other Assets less Liabilities		0.5%

LOGO

Dina Ting, CFA


		Louis Hsu, CFA

		Portfolio Management Team



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FRANKLIN FTSE LATIN AMERICA ETF

Performance Summary as of March 31, 2019

Total return reflects reinvestment of the Fund’s dividends and capital gain distributions, if any, and any unrealized gains or losses. Total returns do not include brokerage commissions that may be payable on secondary market transactions. The performance table does not reflect any taxes that a shareholder would pay on Fund dividends, capital gain distributions, if any, or any realized gains on the sale or redemption of Fund shares.

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (10/11/18), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Performance as of 3/31/19

Cumulative Total Return¹

Average Annual Total Return¹

Based on
NAV²

Based on

market price³

Based on
NAV²

Based on

market price³

Since Inception (10/9/18)

+1.42%

+1.18%

+1.42%

1.18%

See page 91 for Performance Summary footnotes.



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FRANKLIN FTSE LATIN AMERICA ETF

PERFORMANCE SUMMARY

Distributions(10/9/18–3/31/19)

Net Investment
Income

$0.119147

Total Annual Operating Expenses⁴

0.19%

All investments involve risks, including possible loss of principal. Special risks are associated with foreign investing, including currency fluctuations, economic instability and political developments. Investments in developing markets involve heightened risks related to the same factors, in addition to those associated with these markets’ smaller size, lesser liquidity and lack of established legal, political, business and social frameworks to support securities markets. Investments in securities of Latin American issuers involve risks that are specific to Latin America, including certain legal, regulatory, political and economic risks. Because the Fund invests its assets primarily in companies in a specific country or region, the Fund may also experience greater volatility than a fund that is more broadly diversified geographically. The Fund’s prospectus also includes a description of the main investment risks.

ETFs trade like stocks, fluctuate in market value and may trade at prices above or below their net asset value. Brokerage commissions and ETF expenses will reduce returns.

1. Total return calculations represent the cumulative and average annual changes in value of an investment over the period indicated. Return for less than one year, if any, has not been annualized.

2. Assumes reinvestment of distributions based on net asset value.

3. Assumes reinvestment of distributions based on market price.

4. Figures are as stated in the Fund’s current prospectus and may differ from the expense ratios disclosed in the Your Fund’s Expenses and Financial Highlights sections in this report. In periods of market volatility, assets may decline significantly, causing total annual Fund operating expenses to become higher than the figures shown.



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FRANKLIN FTSE LATIN AMERICA ETF

Your Fund’s Expenses

Actual Fund Expenses

The table below provides information about actual account values and actual expenses in the columns under the heading “Actual.” In these columns the Fund’s actual return, which includes the effect of Fund expenses, is used to calculate the “Ending Account Value.” You can estimate the expenses you paid during the period by following these steps (of course, your account value and expenses will differ from those in this illustration):Divide your account value by $1,000 (if your account had an $8,600 value, then $8,600÷ $1,000 = 8.6).Then multiply the result by the number in the row under the headings “Actual” and “Expenses Paid During Period” (if Actual Expenses Paid During Period were $7.50, then 8.6 x $7.50 = $64.50).In this illustration, the actual expenses paid this period are $64.50.

Hypothetical Example for Comparison with Other Funds

Under the heading “Hypothetical” in the table, information is provided about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. This information may not be used to estimate the actual ending account balance or expenses you paid for the period, but it can help you compare ongoing costs of investing in the Fund with those of other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.


		Actual (actual return after expenses)				Hypothetical (5% annual return before expenses)

Beginning Account Value¹		Ending Account Value 3/31/19		Expenses Paid During Period 10/9/18–3/31/19^2,3		Ending Account Value 3/31/19		Expenses Paid During Period 10/1/18–3/31/19^2,3		Net Annualized Expense Ratio³
	$1,000.00	$	1,014.20	$	0.91	$	1,022.80	$	0.91		0.19	%

1. 10/9/18 for Actual; 10/1/18 for Hypothetical.

2. Expenses are equal to the annualized expense ratio for thesix-month period as indicated above—in the far right column—multiplied by the simple average account value over the period indicated, and then multiplied by 182/365 to reflect theone-half year period. For Actual expenses, the multiplier is 173/365 to reflect the number of days since commencement of operations.

3. Reflects expenses after fee waivers and expense reimbursements.



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Franklin FTSE Mexico ETF

This annual report for Franklin FTSE Mexico ETF covers the fiscal year ended March 31, 2019.

Your Fund’s Goal and Main Investments

The Fund seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the FTSE Mexico RIC Capped Index (the FTSE Mexico Capped Index or the Underlying Index).¹ Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE Mexico Capped Index and in depositary receipts representing such securities.

Performance Overview

During the12-month period, the Fund posted cumulative total returns of-11.46% based on market price and-9.28% based on net asset value. In comparison, the FTSE Mexico Capped Index posted a-9.26% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 95.

Investment Strategy

The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE Mexico Capped Index. We seek to achieve, over time, a correlation between the Fund’s performance, before fees and expenses, and that of the Underlying Index of 0.95 or better. A figure of 1.00 would indicate perfect correlation. Our intention is to replicate the component securities of the Underlying


Top 10 Sectors/Industries

3/31/19

	% of Total Net Assets
Banks		17.8%
Beverages		16.6%
Wireless Telecommunication Services		12.1%
Food & Staples Retailing		9.0%
Transportation Infrastructure		7.5%
Metals & Mining		7.5%
Food Products		5.9%
Media		4.7%
Construction Materials		4.3%
Industrial Conglomerates		3.7%

1. The FTSE Mexico Capped Index is a free float-adjusted market capitalization-weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE Mexico Capped Index is based on the FTSE Mexico Index and is designed to measure the performance of Mexican large- andmid-capitalization stocks.

2. Source: FactSet.

See www.franklintempletondatasources.com for additional data provider information.

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Statement of Investments (SOI). The SOI begins on page 250.



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Top 10 Holdings

3/31/19

Company *Sector/Industry, Country*	% of Total Net Assets
America Movil SAB de CV, L Wireless Telecommunication Services, Mexico		12.1%
Fomento Economico Mexicano SAB de CV Beverages, Mexico		11.9%
Grupo Financiero Banorte SAB de CV Banks, Mexico		9.5%
Wal-Mart de Mexico SAB de CV, V Food & Staples Retailing, Mexico		8.6%
Grupo Mexico SAB de CV, B Metals & Mining, Mexico		6.3%
Cemex SAB de CV Construction Materials, Mexico		4.4%
Grupo Televisa SA Media, Mexico		3.7%
Grupo Bimbo SAB de CV, A Food Products, Mexico		3.4%
Fibra Uno Administracion SA de CV Equity Real Estate Investment Trusts (REITs), Mexico		2.9%
Grupo Elektra SAB de CV Banks, Mexico		2.5%

Manager’s Discussion

During the12-month period, there were no sectors that materially contributed to the Fund’s absolute performance. Individual holdings that lifted the Fund’s absolute return included Grupo Elektra,Wal-Mart de Mexico and Grupo Carso.

For the same period, the sectors that detracted most from the Fund’s absolute performance were communication services, materials and consumer discretionary. Individual holdings that hindered the Fund’s absolute return included America Movil, Cemex and Grupo Televisa.

Thank you for your participation in Franklin FTSE Mexico ETF. We look forward to serving your future investment needs.

LOGO

Dina Ting, CFA


		Louis Hsu, CFA

		Portfolio Management Team



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FRANKLIN FTSE MEXICO ETF

Performance Summary as of March 31, 2019

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (11/7/17), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Performance as of 3/31/19



	Cumulative Total Return¹				Average Annual Total Return¹
	Based on NAV²		Based on market price³		Based on NAV²		Based on market price³
1-Year		-9.28%		-11.46%		-9.28%		-11.46%
Since Inception (11/3/17)		-8.71%		-9.29%		-6.28%		-6.70%

See page 97 for Performance Summary footnotes.



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FRANKLIN FTSE MEXICO ETF

PERFORMANCE SUMMARY

Total Return Index Comparison for a Hypothetical $10,000 Investment

11/3/17–3/31/19

LOGO

See page 97 for Performance Summary footnotes.



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FRANKLIN FTSE MEXICO ETF

PERFORMANCE SUMMARY

Distributions(4/1/18–3/31/19)

Net Investment
Income

$0.524212

Total Annual Operating Expenses⁵

0.19%

All investments involve risks, including possible loss of principal. Special risks are associated with foreign investing, including currency fluctuations, economic instability and political developments. Investments in developing markets involve heightened risk related to the same factors, in addition to those associated with these markets’ smaller size, lesser liquidity and lack of established legal, political, business and social frameworks to support securities markets. Investments in securities of Mexican issuers involve risks that are specific to Mexico, including certain legal, regulatory, political and economic risks. Because the Fund invests its assets primarily in companies in a specific country or region, the Fund may also experience greater volatility than a fund that is more broadly diversified geographically. As anon-diversified fund, the Fund may invest in a relatively small number of issuers and, as a result, be subject to a greater risk of loss with respect to its portfolio securities. The Fund’s prospectus also includes a description of the main investment risks.

ETFs trade like stocks, fluctuate in market value and may trade at prices above or below their net asset value. Brokerage commissions and ETF expenses will reduce returns.

1. Total return calculations represent the cumulative and average annual changes in value of an investment over the periods indicated. Return for less than one year, if any, has not been annualized.

2. Assumes reinvestment of distributions based on net asset value.

3. Assumes reinvestment of distributions based on market price.

4. Source: FactSet. The FTSE Mexico Capped Index is a free float-adjusted market capitalization-weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE Mexico Capped Index is based on the FTSE Mexico Index and is designed to measure the performance of Mexican large- andmid-capitalization stocks.

See www.franklintempletondatasources.com for additional data provider information.



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FRANKLIN FTSE MEXICO ETF

Your Fund’s Expenses

Actual Fund Expenses

The table below provides information about actual account values and actual expenses in the columns under the heading “Actual.” In these columns the Fund’s actual return, which includes the effect of Fund expenses, is used to calculate the “Ending Account Value.” You can estimate the expenses you paid during the period by following these steps (of course, your account value and expenses will differ from those in this illustration):Divide your account value by $1,000 (if your account had an $8,600 value, then $8,600÷ $1,000 = 8.6).Then multiply the result by the number in the row under the headings “Actual” and “Expenses Paid During Period” (if Actual Expenses Paid During Period were $7.50, then 8.6 x $7.50 = $64.50).In this illustration, the actual expenses paid this period are $64.50.

Hypothetical Example for Comparison with Other Funds

Under the heading “Hypothetical” in the table, information is provided about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. This information may not be used to estimate the actual ending account balance or expenses you paid for the period, but it can help you compare ongoing costs of investing in the Fund with those of other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.


		Actual (actual return after expenses)				Hypothetical (5% annual return before expenses)

Beginning Account Value 10/1/18		Ending Account Value 3/31/19		Expenses Paid During Period 10/1/18–3/31/19^1,2		Ending Account Value 3/31/19		Expenses Paid During Period 10/1/18–3/31/19^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	864.10	$	0.88	$	1,023.98	$	0.96		0.19	%

2. Reflects expenses after fee waivers and expense reimbursements.



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Franklin FTSE Russia ETF

This annual report for Franklin FTSE Russia ETF covers the fiscal year ended March 31, 2019.

Your Fund’s Goal and Main Investments

The Fund seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the FTSE Russia RIC Capped Index (the FTSE Russia Capped Index or the Underlying Index).¹ Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE Russia Capped Index and in depositary receipts representing such securities.

Performance Overview

During the12-month period, the Fund posted cumulative total returns of-1.11% based on market price and-0.63% based on net asset value. In comparison, the FTSE Russia Capped Index posted a-0.63% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 101.

Investment Strategy

The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE Russia Capped Index. We seek to achieve, over time, a correlation between the Fund’s performance, before fees and expenses, and that of the Underlying Index of 0.95 or better. A figure of 1.00 would indicate perfect correlation. Our intention is to replicate the component securities of the Underlying


Top 10 Sectors/Industries

3/31/19

	% of Total Net Assets
Oil, Gas & Consumable Fuels		50.8%
Banks		18.8%
Metals & Mining		13.9%
Electric Utilities		4.8%
Wireless Telecommunication Services		2.9%
Food & Staples Retailing		2.4%
Capital Markets		2.2%
Chemicals		1.5%
Diversified Telecommunication Services		1.1%
Airlines		0.9%

1. The FTSE Russia Capped Index is a free float-adjusted market capitalization-weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE Russia Capped Index is based on the FTSE Russia Index and is designed to measure the performance of Russian large- andmid-capitalization stocks.

2. Source: FactSet.

See www.franklintempletondatasources.com for additional data provider information.

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Statement of Investments (SOI). The SOI begins on page 252.



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Top 10 Holdings

3/31/19

Company *Sector/Industry, Country*	% of Total Net Assets
LUKOIL PJSC Oil, Gas & Consumable Fuels, Russia		20.5%
Sberbank of Russia PJSC Banks, Russia		16.4%
Gazprom PJSC Oil, Gas & Consumable Fuels, Russia		11.8%
NovaTek PJSC Oil, Gas & Consumable Fuels, Russia		4.3%
Tatneft PAO Oil, Gas & Consumable Fuels, Russia		4.1%
MMC Norilsk Nickel PJSC Metals & Mining, Russia		3.2%
Rosneft PJSC Oil, Gas & Consumable Fuels, Russia		3.0%
Surgutneftegas PJSC Oil, Gas & Consumable Fuels, Russia		3.0%
Transneft PJSC Oil, Gas & Consumable Fuels, Russia		2.7%
Mobile TeleSystems PJSC Wireless Telecommunication Services, Russia		2.5%

Manager’s Discussion

During the12-month period, the sectors that contributed most to the Fund’s absolute performance were energy and materials. Individual holdings that lifted the Fund’s absolute return included LUKOIL, NovaTek and Tatneft.

For the same period, the sectors that detracted most from the Fund’s absolute performance were financials, utilities and communication services. Individual holdings that hindered the Fund’s absolute return included Sberbank of Russia, VTB Bank and Magnit.

Thank you for your participation in Franklin FTSE Russia ETF. We look forward to serving your future investment needs.

LOGO

Dina Ting, CFA


		Louis Hsu, CFA

		Portfolio Management Team



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FRANKLIN FTSE RUSSIA ETF

Performance Summary as of March 31, 2019

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (2/9/18), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Performance as of 3/31/19

Cumulative Total Return¹

Average Annual Total Return¹

Based on
NAV²

Based on

market price³

Based on
NAV²

Based on

market price³

1-Year

-0.63%

-1.11%

-0.63%

-1.11%

Since Inception (2/6/18)

+0.79%

+1.08%

+0.69%

+0.94%

See page 103 for Performance Summary footnotes.



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FRANKLIN FTSE RUSSIA ETF

PERFORMANCE SUMMARY

Total Return Index Comparison for a Hypothetical $10,000 Investment

2/6/18–3/31/19

LOGO

See page 103 for Performance Summary footnotes.



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FRANKLIN FTSE RUSSIA ETF

PERFORMANCE SUMMARY

Distributions(4/1/18–3/31/19)

Net Investment
Income

$0.643300

Total Annual Operating Expenses⁵

0.19%

All investments involve risks, including possible loss of principal. Special risks are associated with foreign investing, including currency fluctuations, economic instability and political developments. Investments in developing markets involve heightened risks related to the same factors, in addition to those associated with these markets’ smaller size, lesser liquidity and lack of established legal, political, business and social frameworks to support securities markets. Investments in securities of Russian issuers involve significant risks that are specific to Russia, including certain legal, regulatory, political and economic risks. Because the Fund invests its assets primarily in companies in a specific country or region, the Fund may also experience greater volatility than a fund that is more broadly diversified geographically. As anon-diversified fund, the Fund may invest in a relatively small number of issuers and, as a result, be subject to a greater risk of loss with respect to its portfolio securities. The Fund’s prospectus also includes a description of the main investment risks.

ETFs trade like stocks, fluctuate in market value and may trade at prices above or below their net asset value. Brokerage commissions and ETF expenses will reduce returns.

1. Total return calculations represent the cumulative and average annual changes in value of an investment over the periods indicated. Return for less than one year, if any, has not been annualized.

2. Assumes reinvestment of distributions based on net asset value.

3. Assumes reinvestment of distributions based on market price.

4. Source: FactSet: The FTSE Russia Capped Index is a free float-adjusted market capitalization-weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE Russia Capped Index is based on the FTSE Russia Index and is designed to measure the performance of Russian large- andmid-capitalization stocks.

See www.franklintempletondatasources.com for additional data provider information.



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FRANKLIN FTSE RUSSIA ETF

Your Fund’s Expenses

Actual Fund Expenses

The table below provides information about actual account values and actual expenses in the columns under the heading “Actual.” In these columns the Fund’s actual return, which includes the effect of Fund expenses, is used to calculate the “Ending Account Value.” You can estimate the expenses you paid during the period by following these steps (of course, your account value and expenses will differ from those in this illustration):Divide your account value by $1,000 (if your account had an $8,600 value, then $8,600÷ $1,000 = 8.6).Then multiply the result by the number in the row under the headings “Actual” and “Expenses Paid During Period” (if Actual Expenses Paid During Period were $7.50, then 8.6 x $7.50 = $64.50).In this illustration, the actual expenses paid this period are $64.50.

Hypothetical Example for Comparison with Other Funds

Under the heading “Hypothetical” in the table, information is provided about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. This information may not be used to estimate the actual ending account balance or expenses you paid for the period, but it can help you compare ongoing costs of investing in the Fund with those of other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.


		Actual (actual return after expenses)				Hypothetical (5% annual return before expenses)

Beginning Account Value 10/1/18		Ending Account Value 3/31/19		Expenses Paid During Period 10/1/18–3/31/19^1,2		Ending Account Value 3/31/19		Expenses Paid During Period 10/1/18–3/31/19^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	1,014.30	$	0.95	$	1,023.98	$	0.96		0.19	%

2. Reflects expenses after fee waivers and expense reimbursements.



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Franklin FTSE Saudi Arabia ETF

This annual report for Franklin FTSE Saudi Arabia ETF covers the period since the Fund’s inception on October 9, 2018, through March 31, 2019.

Your Fund’s Goal and Main Investments

The Fund seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the FTSE Saudi Arabia RIC Capped Index (the FTSE Saudi Arabia Capped Index or the Underlying Index).¹ Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE Saudi Arabia Capped Index and in depositary receipts representing such securities.

Performance Overview

For the period since inception on October 9, 2018, through March 31, 2019, the Fund posted cumulative total returns of +14.69% based on market price and +12.87% based on net asset value.² In comparison, the FTSE Saudi Arabia Capped Index posted a +13.06% total return for the same period.³ You can find more of the Fund’s performance data in the Performance Summary beginning on page 107.

Investment Strategy

The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE Saudi Arabia Capped Index. We seek to achieve, over time, a correlation between the Fund’s performance, before fees and expenses, and that of the Underlying Index of 0.95 or


Top 10 Sectors/Industries

3/31/19

	% of Total Net Assets
Banks		39.6%
Chemicals		27.1%
Diversified Telecommunication Services		6.0%
Food Products		5.7%
Metals & Mining		3.6%
Electric Utilities		2.6%
Wireless Telecommunication Services		2.3%
Specialty Retail		2.2%
Real Estate Management & Development		2.0%
Insurance		1.8%

1. The FTSE Saudi Arabia Capped Index is a free float-adjusted market capitalization-weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE Saudi Arabia Capped Index is based on the FTSE Saudi Arabia Index and is designed to measure the performance of Saudi Arabian large- andmid-capitalization stocks.

3. Source: FactSet.

See www.franklintempletondatasources.com for additional data provider information.

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Statement of Investments (SOI). The SOI begins on page 254.



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Top 10 Holdings

3/31/19

Company *Sector/Industry, Country*	% of Total Net Assets
Saudi Basic Industries Corp. Chemicals, Saudi Arabia		14.3%
Al Rajhi Bank Banks, Saudi Arabia		13.2%
National Commercial Bank Banks, Saudi Arabia		9.4%
Samba Financial Group Banks, Saudi Arabia		6.2%
Saudi Telecom Co. Diversified Telecommunication Services, Saudi Arabia		6.0%
Riyad Bank Banks, Saudi Arabia		4.6%
Almarai Co. JSC Food Products, Saudi Arabia		4.0%
Saudi Arabian Mining Co. Metals & Mining, Saudi Arabia		3.6%
Alinma Bank Banks, Saudi Arabia		3.2%
Yanbu National Petrochemical Co. Chemicals, Saudi Arabia		3.0%

Manager’s Discussion

For the period since the Fund’s inception on October 9, 2018, through March 31, 2019, the sectors that contributed most to the Fund’s absolute performance were financials, communication services and consumer staples. Individual holdings that lifted the Fund’s absolute return included Al Rajhi Bank, Riyad Bank and National Commercial Bank.

For the same period, the sectors that detracted most from the Fund’s absolute performance were energy, industrials and health care. Individual holdings that hindered the Fund’s absolute return included Saudi Kayan Petrochemical, Rabigh Refining and Petrochemical, and Saudi Basic Industries.

Thank you for your participation in Franklin FTSE Saudi Arabia ETF. We look forward to serving your future investment needs.

LOGO

Dina Ting, CFA


		Louis Hsu, CFA

		Portfolio Management Team



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FRANKLIN FTSE SAUDI ARABIA ETF

Performance Summary as of March 31, 2019

Total return reflects reinvestment of the Fund’s dividends and capital gain distributions, if any, and any unrealized gains or losses. Total returns do not include brokerage commissions that may be payable on secondary market transactions. The performance table does not reflect any taxes that a shareholder would pay on Fund dividends, capital gain distributions, if any, or any realized gains on the sale or redemption of Fund shares.

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (10/11/18), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Performance as of 3/31/19

Cumulative Total Return¹

Average Annual Total Return¹

Based on
NAV²

Based on

market price³

Based on
NAV²

Based on

market price³

Since Inception (10/9/18)

+12.87%

+14.69%

+12.87%

+14.69%

See page 108 for Performance Summary footnotes.



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FRANKLIN FTSE SAUDI ARABIA ETF

PERFORMANCE SUMMARY

Total Annual Operating Expenses⁴

0.39%

All investments involve risks, including possible loss of principal. Special risks are associated with foreign investing, including currency fluctuations, economic instability and political developments. Investments in developing markets involve heightened risks related to the same factors, in addition to those associated with these markets’ smaller size, lesser liquidity and lack of established legal, political, business and social frameworks to support securities markets. Investments in securities of Saudi Arabian issuers involve risks that are specific to Saudi Arabia, including certain legal, regulatory, political and economic risks. Because the Fund invests its assets primarily in companies in a specific country or region, the Fund may also experience greater volatility than a fund that is more broadly diversified geographically. As anon-diversified fund, the Fund may invest in a relatively small number of issuers and, as a result, be subject to a greater risk of loss with respect to its portfolio securities. The Fund’s prospectus also includes a description of the main investment risks.

ETFs trade like stocks, fluctuate in market value and may trade at prices above or below their net asset value. Brokerage commissions and ETF expenses will reduce returns.

1. Total return calculations represent the cumulative and average annual changes in value of an investment over the period indicated. Return for less than one year, if any, has not been annualized.

2. Assumes reinvestment of distributions based on net asset value.

3. Assumes reinvestment of distributions based on market price.



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FRANKLIN FTSE SAUDI ARABIA ETF

Your Fund’s Expenses

Actual Fund Expenses

The table below provides information about actual account values and actual expenses in the columns under the heading “Actual.” In these columns the Fund’s actual return, which includes the effect of Fund expenses, is used to calculate the “Ending Account Value.” You can estimate the expenses you paid during the period by following these steps (of course, your account value and expenses will differ from those in this illustration):Divide your account value by $1,000 (if your account had an $8,600 value, then $8,600÷ $1,000 = 8.6).Then multiply the result by the number in the row under the headings “Actual” and “Expenses Paid During Period” (if Actual Expenses Paid During Period were $7.50, then 8.6 x $7.50 = $64.50).In this illustration, the actual expenses paid this period are $64.50.

Hypothetical Example for Comparison with Other Funds

Under the heading “Hypothetical” in the table, information is provided about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. This information may not be used to estimate the actual ending account balance or expenses you paid for the period, but it can help you compare ongoing costs of investing in the Fund with those of other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.


		Actual (actual return after expenses)				Hypothetical (5% annual return before expenses)

Beginning Account Value¹		Ending Account Value 3/31/19		Expenses Paid During Period 10/9/18–3/31/19^2,3		Ending Account Value 3/31/19		Expenses Paid During Period 10/1/18–3/31/19^2,3		Net Annualized Expense Ratio³
	$1,000.00	$	1,128.70	$	2.02	$	1,021.80	$	1.92		0.39	%

1. 10/9/18 for Actual; 10/1/18 for Hypothetical.

3. Reflects expenses after fee waivers and expense reimbursements.



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Franklin FTSE South Africa ETF

This annual report for Franklin FTSE South Africa ETF covers the period since the Fund’s inception on October 10, 2018, through March 31, 2019.

Your Fund’s Goal and Main Investments

The Fund seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the FTSE/JSE South Africa RIC Capped Index (the FTSE/JSE South Africa Capped Index or the Underlying Index).¹ Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE/JSE South Africa Capped Index and in depositary receipts representing such securities.

Performance Overview

For the period since inception on October 10, 2018, through March 31, 2019, the Fund posted cumulative total returns of +9.68% based on market price and +9.26% based on net asset value.² In comparison, the FTSE/JSE South Africa Capped Index posted a +9.33% total return for the same period.³ You can find more of the Fund’s performance data in the Performance Summary beginning on page 112.

Investment Strategy

The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE/JSE South Africa Capped Index. We seek to achieve, over time, a correlation between the Fund’s performance, before fees and expenses, and that of the Underlying Index of 0.95 or better.


Top 10 Sectors/Industries

3/31/19

	% of Total Net Assets
Internet & Direct Marketing Retail		21.5%
Banks		11.8%
Diversified Financial Services		9.1%
Insurance		8.0%
Metals & Mining		7.4%
Food & Staples Retailing		6.8%
Chemicals		5.7%
Wireless Telecommunication Services		5.3%
Equity Real Estate Investment Trusts (REITs)		4.9%
Specialty Retail		3.2%

A figure of 1.00 would indicate perfect correlation. Our intention is to replicate the component securities of the Underlying Index as closely as possible (i.e., invest in all of the component securities in their respective weightings in the Underlying Index). However, under various circumstances, it may not be possible or practicable to replicate the Underlying Index. In these circumstances, we may use a “representative sampling” strategy whereby we would invest in what we believe to be a representative sample of the component securities of the Underlying Index, but may not track the Underlying Index with the same degree of accuracy as would an investment vehicle replicating the entire Underlying Index. Under the representative sampling technique, we will select securities that collectively have an investment profile similar to that of the Underlying Index, including securities that resemble those included in the Underlying Index in terms of risk factors, performance attributes and other characteristics, such as market capitalization and industry weightings. The Fund will concentrate its investments (i.e., hold 25% or more of its net assets) in a particular industry or group of industries to approximately the same extent that the Underlying Index is concentrated.

1. The FTSE/JSE South Africa Capped Index is a free float-adjusted market capitalization-weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE/JSE South Africa Capped Index is based on the FTSE South Africa Index and is designed to measure the performance of South African large- andmid-capitalization stocks.

3. Source: FactSet.

See www.franklintempletondatasources.com for additional data provider information.

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Statement of Investments (SOI). The SOI begins on page 256.



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Top 10 Holdings

3/31/19

Company *Sector/Industry, Country*	% of Total Net Assets
Naspers Ltd., N Internet & Direct Marketing Retail, South Africa		21.5%
Sasol Ltd. Chemicals, South Africa		5.7%
Standard Bank Group Ltd. Banks, South Africa		5.4%
FirstRand Ltd. Diversified Financial Services, South Africa		4.6%
MTN Group Ltd. Wireless Telecommunication Services, South Africa		3.7%
Sanlam Ltd. Insurance, South Africa		2.9%
Absa Group Ltd. Banks, South Africa		2.5%
Old Mutual Ltd. Insurance, South Africa		2.4%
Nedbank Group Ltd. Banks, South Africa		2.3%
Bid Corp. Ltd. Food & Staples Retailing, South Africa		2.3%

Manager’s Discussion

For the period since the Fund’s inception on October 10, 2018, through March 31, 2019, the sectors that contributed most to the Fund’s absolute performance were communication services, financials and materials. Individual holdings that lifted the Fund’s absolute return included Naspers, Standard Bank Group and AngloGold Ashanti.

For the same period, the sectors that detracted most from the Fund’s absolute performance were health care and consumer discretionary. Individual holdings that hindered the Fund’s absolute return included Sasol, Aspen Pharmacare Holdings and Shoprite Holdings.

Thank you for your participation in Franklin FTSE South Africa ETF. We look forward to serving your future investment needs.

LOGO

Dina Ting, CFA


		Louis Hsu, CFA

		Portfolio Management Team



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FRANKLIN FTSE SOUTH AFRICA ETF

Performance Summary as of March 31, 2019

Total return reflects reinvestment of the Fund’s dividends and capital gain distributions, if any, and any unrealized gains or losses. Total returns do not include brokerage commissions that may be payable on secondary market transactions. The performance table does not reflect any taxes that a shareholder would pay on Fund dividends, capital gain distributions, if any, or any realized gains on the sale or redemption of Fund shares.

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (10/11/18), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Performance as of 3/31/19

Cumulative Total Return¹

Average Annual Total Return¹

Based on
NAV²

Based on

market price³

Based on
NAV²

Based on

market price³

Since Inception (10/10/18)

+9.26%

+9.68%

+9.26%

+9.68%

See page 113 for Performance Summary footnotes.



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FRANKLIN FTSE SOUTH AFRICA ETF

PERFORMANCE SUMMARY

Distributions(10/10/18–3/31/19)

Net Investment
Income

$0.059499

Total Annual Operating Expenses⁴

0.19%

All investments involve risks, including possible loss of principal. Special risks are associated with foreign investing, including currency fluctuations, economic instability and political developments. Investments in developing markets involve heightened risks related to the same factors, in addition to those associated with these markets’ smaller size, lesser liquidity and lack of established legal, political, business and social frameworks to support securities markets. Investments in securities of South African issuers involve risks that are specific to South Africa, including certain legal, regulatory, political and economic risks. Because the Fund invests its assets primarily in companies in a specific country or region, the Fund may also experience greater volatility than a fund that is more broadly diversified geographically. As anon-diversified fund, the Fund may invest in a relatively small number of issuers and, as a result, be subject to a greater risk of loss with respect to its portfolio securities. The Fund’s prospectus also includes a description of the main investment risks.

ETFs trade like stocks, fluctuate in market value and may trade at prices above or below their net asset value. Brokerage commissions and ETF expenses will reduce returns.

1. Total return calculations represent the cumulative and average annual changes in value of an investment over the period indicated. Return for less than one year, if any, has not been annualized.

2. Assumes reinvestment of distributions based on net asset value.

3. Assumes reinvestment of distributions based on market price.



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FRANKLIN FTSE SOUTH AFRICA ETF

Your Fund’s Expenses

Actual Fund Expenses

The table below provides information about actual account values and actual expenses in the columns under the heading “Actual.” In these columns the Fund’s actual return, which includes the effect of Fund expenses, is used to calculate the “Ending Account Value.” You can estimate the expenses you paid during the period by following these steps (of course, your account value and expenses will differ from those in this illustration):Divide your account value by $1,000 (if your account had an $8,600 value, then $8,600÷ $1,000 = 8.6).Then multiply the result by the number in the row under the headings “Actual” and “Expenses Paid During Period” (if Actual Expenses Paid During Period were $7.50, then 8.6 x $7.50 = $64.50).In this illustration, the actual expenses paid this period are $64.50.

Hypothetical Example for Comparison with Other Funds

Under the heading “Hypothetical” in the table, information is provided about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. This information may not be used to estimate the actual ending account balance or expenses you paid for the period, but it can help you compare ongoing costs of investing in the Fund with those of other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.


		Actual (actual return after expenses)				Hypothetical (5% annual return before expenses)

Beginning Account Value¹		Ending Account Value 3/31/19		Expenses Paid During Period 10/10/18–3/31/19^2,3		Ending Account Value 3/31/19		Expenses Paid During Period 10/1/18–3/31/19^2,3		Net Annualized Expense Ratio³
	$1,000.00	$	1,092.60	$	0.94	$	1,022.67	$	0.91		0.19	%

1. 10/10/18 for Actual; 10/1/18 for Hypothetical.

2. Expenses are equal to the annualized expense ratio for thesix-month period as indicated above—in the far right column—multiplied by the simple average account value over the period indicated, and then multiplied by 182/365 to reflect theone-half year period. For Actual expenses, the multiplier is 172/365 to reflect the number of days since commencement of operations.

3. Reflects expenses after fee waivers and expense reimbursements.



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Franklin FTSE South Korea ETF

This annual report for Franklin FTSE South Korea ETF covers the fiscal year ended March 31, 2019.

Your Fund’s Goal and Main Investments

The Fund seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the FTSE South Korea RIC Capped Index (the FTSE South Korea Capped Index or the Underlying Index).¹ Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE South Korea Capped Index and in depositary receipts representing such securities.

Performance Overview

During the12-month period, the Fund posted cumulative total returns of-18.93% based on market price and-16.82% based on net asset value. In comparison, the FTSE South Korea Capped Index posted a-16.98% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 117.

Investment Strategy

The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE South Korea Capped Index. We seek to achieve, over time, a correlation between the Fund’s performance, before fees and expenses, and that of the Underlying Index of 0.95 or better. A figure of 1.00 would indicate perfect correlation. Our intention is to replicate the component securities of the Underlying


Top 10 Sectors/Industries

3/31/19

	% of Total Net Assets
Technology Hardware, Storage & Peripherals		19.9%
Banks		8.9%
Semiconductors & Semiconductor Equipment		5.6%
Automobiles		4.4%
Industrial Conglomerates		4.4%
Chemicals		4.2%
Metals & Mining		3.7%
Biotechnology		3.5%
Personal Products		3.4%
Insurance		3.2%

1. The FTSE South Korea Capped Index is a free float-adjusted market capitalization-weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE South Korea Capped Index is based on the FTSE South Korea Index and is designed to measure the performance of South Korean large- andmid-capitalization stocks.

2.Source: FactSet.

See www.franklintempletondatasources.com for additional data provider information.

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Statement of Investments (SOI). The SOI begins on page 259.



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FRANKLIN FTSE SOUTH KOREA ETF


Top 10 Holdings

3/31/19

Company *Sector/Industry, Country*	% of Total Net Assets
Samsung Electronics Co. Ltd. Technology Hardware, Storage & Peripherals, South Korea		20.0%
SK Hynix Inc. Semiconductors & Semiconductor Equipment, South Korea		5.6%
Hyundai Motor Co. Automobiles, South Korea		3.1%
Shinhan Financial Group Co. Ltd. Banks, South Korea		2.8%
LG Chem Ltd. Chemicals, South Korea		2.6%
POSCO Metals & Mining, South Korea		2.5%
Naver Corp. Interactive Media & Services, South Korea		2.4%
KB Financial Group Inc. Banks, South Korea		2.4%
Celltrion Inc. Biotechnology, South Korea		2.1%
LG Household & Health Care Ltd. Personal Products, South Korea		2.0%

Manager’s Discussion

During the12-month period, the only sector that contributed materially to the Fund’s absolute performance was communication services. Individual holdings that lifted the Fund’s absolute return included HDC Hyundai DevelopmentCo-Engineering & Construction, NCsoft and Kia Motors.

For the same period, the sectors that detracted most from the Fund’s absolute performance were information technology, financials and health care. Individual holdings that hindered the Fund’s absolute return included Samsung Electronics, Celltrion and KB Financial Group.

Thank you for your participation in Franklin FTSE South Korea ETF. We look forward to serving your future investment needs.

LOGO

Dina Ting, CFA


		Louis Hsu, CFA

		Portfolio Management Team



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FRANKLIN FTSE SOUTH KOREA ETF

Performance Summary as of March 31, 2019

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (11/6/17), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Performance as of 3/31/19



	Cumulative Total Return¹					Average Annual Total Return¹
	Based on NAV²			Based on market price³		Based on NAV²			Based on market price³
1-Year		-16.82%	⁴		-18.93%		-16.82%	⁴		-18.93%
Since Inception (11/2/17)		-15.30%			-15.89%		-11.12%			-11.56%

See page 119 for Performance Summary footnotes.



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FRANKLIN FTSE SOUTH KOREA ETF

PERFORMANCE SUMMARY

Total Return Index Comparison for a Hypothetical $10,000 Investment

11/2/17–3/31/19

LOGO

See page 119 for Performance Summary footnotes.



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FRANKLIN FTSE SOUTH KOREA ETF

PERFORMANCE SUMMARY

Distributions(4/1/18–3/31/19)

Net Investment
Income

$0.378022

Total Annual Operating Expenses⁶

0.09%

ETFs trade like stocks, fluctuate in market value and may trade at prices above or below their net asset value. Brokerage commissions and ETF expenses will reduce returns.

1. Total return calculations represent the cumulative and average annual changes in value of an investment over the periods indicated. Return for less than one year, if any, has not been annualized.

2. Assumes reinvestment of distributions based on net asset value.

3. Assumes reinvestment of distributions based on market price.

5. Source: FactSet. The FTSE South Korea Capped Index is a free float-adjusted market capitalization-weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE South Korea Capped Index is based on the FTSE South Korea Index and is designed to measure the performance of South Korean large- andmid-capitalization stocks.

See www.franklintempletondatasources.com for additional data provider information.



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FRANKLIN FTSE SOUTH KOREA ETF

Your Fund’s Expenses

Actual Fund Expenses

The table below provides information about actual account values and actual expenses in the columns under the heading “Actual.” In these columns the Fund’s actual return, which includes the effect of Fund expenses, is used to calculate the “Ending Account Value.” You can estimate the expenses you paid during the period by following these steps (of course, your account value and expenses will differ from those in this illustration):Divide your account value by $1,000 (if your account had an $8,600 value, then $8,600÷ $1,000 = 8.6).Then multiply the result by the number in the row under the headings “Actual” and “Expenses Paid During Period” (if Actual Expenses Paid During Period were $7.50, then 8.6 x $7.50 = $64.50).In this illustration, the actual expenses paid this period are $64.50.

Hypothetical Example for Comparison with Other Funds

Under the heading “Hypothetical” in the table, information is provided about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. This information may not be used to estimate the actual ending account balance or expenses you paid for the period, but it can help you compare ongoing costs of investing in the Fund with those of other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.


		Actual (actual return after expenses)				Hypothetical (5% annual return before expenses)

Beginning Account Value 10/1/18		Ending Account Value 3/31/19		Expenses Paid During Period 10/1/18–3/31/19^1,2		Ending Account Value 3/31/19		Expenses Paid During Period 10/1/18–3/31/19^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	908.90	$	0.43	$	1,024.48	$	0.45		0.09	%

2. Reflects expenses after fee waivers and expense reimbursements.



120	Annual Report	franklintempleton.com

Franklin FTSE Switzerland ETF

This annual report for Franklin FTSE Switzerland ETF covers the fiscal year ended March 31, 2019.

Your Fund’s Goal and Main Investments

The Fund seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the FTSE Switzerland RIC Capped Index (the FTSE Switzerland Capped Index or the Underlying Index).¹ Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE Switzerland Capped Index and in depositary receipts representing such securities.

Performance Overview

During the12-month period, the Fund posted cumulative total returns of +6.49% based on market price and +6.13% based on net asset value. In comparison, the FTSE Switzerland Capped Index posted a +5.80% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 123.

Investment Strategy

The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE Switzerland Capped Index. We seek to achieve, over time, a correlation between the Fund’s performance, before fees and expenses, and that of the Underlying Index of 0.95 or better. A figure of 1.00 would indicate perfect correlation. Our


Top 10 Sectors/Industries

3/31/19

	% of Total Net Assets
Pharmaceuticals		29.2%
Food Products		21.6%
Insurance		9.9%
Capital Markets		8.6%
Chemicals		5.1%
Textiles, Apparel & Luxury Goods		4.5%
Electrical Equipment		3.1%
Construction Materials		2.3%
Life Sciences Tools & Services		2.3%
Professional Services		2.2%

1. The FTSE Switzerland Capped Index is a free float-adjusted market-capitalization weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE Switzerland Capped Index is based on the FTSE Switzerland Index and is designed to measure the performance of Swiss large- andmid-capitalization stocks.

2. Source: FactSet.

See www.franklintempletondatasources.com for additional data provider information.

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Statement of Investments (SOI). The SOI begins on page 263.



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FRANKLIN FTSE SWITZERLAND ETF


Top 10 Holdings

3/31/19

Company *Sector/Industry, Country*	% of Total Net Assets
Nestle SA Food Products, Switzerland		19.8%
Novartis AG Pharmaceuticals, Switzerland		14.7%
Roche Holding AG Pharmaceuticals, Switzerland		13.9%
Zurich Insurance Group AG Insurance, Switzerland		4.5%
UBS Group AG Capital Markets, Switzerland		3.8%
Compagnie Financiere Richemont SA Textiles, Apparel & Luxury Goods, Switzerland		3.4%
ABB Ltd. Electrical Equipment, Switzerland		3.1%
Swiss Re AG Insurance, Switzerland		2.8%
Credit Suisse Group AG Capital Markets, Switzerland		2.8%
Givaudan AG Chemicals, Switzerland		2.4%

Manager’s Discussion

During the12-month period, the sectors that contributed most to the Fund’s absolute performance were health care, consumer staples and materials. Individual holdings that lifted the Fund’s absolute return included Nestle, Roche Holding and Novartis.

Thank you for your participation in Franklin FTSE Switzerland ETF. We look forward to serving your future investment needs.

LOGO

Dina Ting, CFA


		Louis Hsu, CFA

		Portfolio Management Team



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FRANKLIN FTSE SWITZERLAND ETF

Performance Summary as of March 31, 2019

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (2/9/18), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Performance as of 3/31/19

Cumulative Total Return¹

Average Annual Total Return¹

Based on
NAV²

Based on

market price³

Based on
NAV²

Based on

market price³

1-Year

+6.13%

+6.49%

+6.13%

+6.49%

Since Inception (2/6/18)

+4.11%

+4.28%

+3.58%

+3.73%

See page 125 for Performance Summary footnotes.



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FRANKLIN FTSE SWITZERLAND ETF

PERFORMANCE SUMMARY

Total Return Index Comparison for a Hypothetical $10,000 Investment

2/6/18–3/31/19

LOGO

See page 125 for Performance Summary footnotes.



124	Annual Report	franklintempleton.com

FRANKLIN FTSE SWITZERLAND ETF

Distributions(4/1/18–3/31/19)

Net Investment
Income

$0.609373

Total Annual Operating Expenses⁵

0.09%

ETFs trade like stocks, fluctuate in market value and may trade at prices above or below their net asset value. Brokerage commissions and ETF expenses will reduce returns.

1. Total return calculations represent the cumulative and average annual changes in value of an investment over the periods indicated. Return for less than one year, if any, has not been annualized.

2. Assumes reinvestment of distributions based on net asset value.

3. Assumes reinvestment of distributions based on market price.

4. Source: FactSet. The FTSE Switzerland Capped Index is a free float-adjusted market-capitalization weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE Switzerland Capped Index is based on the FTSE Switzerland Index and is designed to measure the performance of Swiss large- andmid-capitalization stocks.

See www.franklintempletondatasources.com for additional data provider information.



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FRANKLIN FTSE SWITZERLAND ETF

Your Fund’s Expenses

Actual Fund Expenses

The table below provides information about actual account values and actual expenses in the columns under the heading “Actual.” In these columns the Fund’s actual return, which includes the effect of Fund expenses, is used to calculate the “Ending Account Value.” You can estimate the expenses you paid during the period by following these steps (of course, your account value and expenses will differ from those in this illustration):Divide your account value by $1,000 (if your account had an $8,600 value, then $8,600÷ $1,000 = 8.6).Then multiply the result by the number in the row under the headings “Actual” and “Expenses Paid During Period” (if Actual Expenses Paid During Period were $7.50, then 8.6 x $7.50 = $64.50).In this illustration, the actual expenses paid this period are $64.50.

Hypothetical Example for Comparison with Other Funds

Under the heading “Hypothetical” in the table, information is provided about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. This information may not be used to estimate the actual ending account balance or expenses you paid for the period, but it can help you compare ongoing costs of investing in the Fund with those of other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.


		Actual (actual return after expenses)				Hypothetical (5% annual return before expenses)

Beginning Account Value 10/1/18		Ending Account Value 3/31/19		Expenses Paid During Period 10/1/18–3/31/19^1,2		Ending Account Value 3/31/19		Expenses Paid During Period 10/1/18–3/31/19^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	1,020.50	$	0.45	$	1,024.48	$	0.45		0.09	%

2. Reflects expenses after fee waivers and expense reimbursements.



126	Annual Report	franklintempleton.com

Franklin FTSE Taiwan ETF

This annual report for Franklin FTSE Taiwan ETF covers the fiscal year ended March 31, 2019.

Your Fund’s Goal and Main Investments

The Fund seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the FTSE Taiwan RIC Capped Index (the FTSE Taiwan Capped Index or the Underlying Index).¹ Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE Taiwan Capped Index and in depositary receipts representing such securities.

Performance Overview

During the12-month period, the Fund posted cumulative total returns of-5.51% based on market price and-4.53% based on net asset value. In comparison, the FTSE Taiwan Capped Index posted a-4.95% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 129.

Investment Strategy

The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE Taiwan Capped Index. We seek to achieve, over time, a correlation between the Fund’s performance, before fees and expenses, and that of the Underlying Index of 0.95 or better. A figure of 1.00 would indicate perfect correlation. Our intention is to replicate the component securities of the Underlying Index as closely as possible (i.e., invest in all of the component securities in their respective weightings in the


Top 10 Sectors/Industries

3/31/19

	% of Total Net Assets
Semiconductors & Semiconductor Equipment		28.1%
Electronic Equipment, Instruments & Components		14.6%
Banks		13.2%
Chemicals		9.3%
Technology Hardware, Storage & Peripherals		7.3%
Insurance		5.5%
Diversified Telecommunication Services		2.7%
Food Products		2.3%
Metals & Mining		2.2%
Wireless Telecommunication Services		1.9%

Underlying Index). However, under various circumstances, it may not be possible or practicable to replicate the Underlying Index. In these circumstances, we may use a “representative sampling” strategy whereby we would invest in what we believe to be a representative sample of the component securities of the Underlying Index, but may not track the Underlying Index with the same degree of accuracy as would an investment vehicle replicating the entire Underlying Index. Under the representative sampling technique, we will select securities that collectively have an investment profile similar to that of the Underlying Index, including securities that resemble those included in the Underlying Index in terms of risk factors, performance attributes and other characteristics, such as market capitalization and industry weightings. The Fund will concentrate its investments (i.e., hold 25% or more of its net assets) in a particular industry or group of industries to approximately the same extent that the Underlying Index is concentrated.

1. The FTSE Taiwan Capped Index is a free float-adjusted market capitalization-weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE Taiwan Capped Index is based on the FTSE Taiwan Index and is designed to measure the performance of Taiwanese large- andmid-capitalization stocks.

2. Source: FactSet.

See www.franklintempletondatasources.com for additional data provider information.

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Statement of Investments (SOI). The SOI begins on page 265.



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FRANKLIN FTSE TAIWAN ETF


Top 10 Holdings

3/31/19

Company *Sector/Industry, Country*	% of Total Net Assets
Taiwan Semiconductor Manufacturing Co. Ltd. Semiconductors & Semiconductor Equipment, Taiwan		20.5%
Hon Hai Precision Industry Co. Ltd. Electronic Equipment, Instruments & Components, Taiwan		5.6%
Formosa Plastics Corp. Chemicals, Taiwan		3.4%
Largan Precision Co. Ltd. Electronic Equipment, Instruments & Components, Taiwan		3.0%
Nan Ya Plastics Corp. Chemicals, Taiwan		2.9%
MediaTek Inc. Semiconductors & Semiconductor Equipment, Taiwan		2.7%
Chunghwa Telecom Co. Ltd. Diversified Telecommunication Services, Taiwan		2.7%
Formosa Chemicals & Fibre Corp. Chemicals, Taiwan		2.5%
CTBC Financial Holding Co. Ltd. Banks, Taiwan		2.4%
Uni-President Enterprises Corp. Food Products, Taiwan		2.3%

Manager’s Discussion

During the12-month period, the sectors that contributed most to the Fund’s absolute performance were materials, financials and consumer discretionary. Individual holdings that lifted the Fund’s absolute return included Largan Precision, Delta Electronics and E.Sun Financial Holding.

For the same period, the sectors that detracted most from the Fund’s absolute performance were information technology, communication services and energy. Individual holdings that hindered the Fund’s absolute return included Hon Hai Precision Industry, Catcher Technology and MediaTek.

Thank you for your participation in Franklin FTSE Taiwan ETF. We look forward to serving your future investment needs.

LOGO

Dina Ting, CFA


		Louis Hsu, CFA

		Portfolio Management Team



128	Annual Report	franklintempleton.com

FRANKLIN FTSE TAIWAN ETF

Performance Summary as of March 31, 2019

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (11/6/17), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Performance as of 3/31/19



	Cumulative Total Return¹					Average Annual Total Return¹
	Based on NAV²			Based on market price³		Based on NAV²			Based on market price³
1-Year		-4.53%	⁴		-5.51%		-4.53%	⁴		-5.51%
Since Inception (11/2/17)		-2.37%			-2.33%		-1.69%			-1.66%

See page 131 for Performance Summary footnotes.



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FRANKLIN FTSE TAIWAN ETF

PERFORMANCE SUMMARY

Total Return Index Comparison for a Hypothetical $10,000 Investment

11/2/17–3/31/19

LOGO

See page 131 for Performance Summary footnotes.



130	Annual Report	franklintempleton.com

FRANKLIN FTSE TAIWAN ETF

PERFORMANCE SUMMARY

Distributions(4/1/18–3/31/19)

Net Investment
Income

$0.241208

Total Annual Operating Expenses⁶

0.19%

All investments involve risks, including possible loss of principal. Special risks are associated with foreign investing, including currency fluctuations, economic instability and political developments. Investments in developing markets involve heightened risks related to the same factors, in addition to those associated with these markets’ smaller size, lesser liquidity and lack of established legal, political, business and social frameworks to support securities markets. Investments in securities of Taiwanese issuers involve risks that are specific to Taiwan, including certain legal, regulatory, political and economic risks. Because the Fund invests its assets primarily in companies in a specific country or region, the Fund may also experience greater volatility than a Fund that is more broadly diversified geographically. As anon-diversified Fund, the Fund may invest in a relatively small number of issuers and, as a result, be subject to a greater risk of loss with respect to its portfolio securities. The Fund’s prospectus also includes a description of the main investment risks.

ETFs trade like stocks, fluctuate in market value and may trade at prices above or below their net asset value. Brokerage commissions and ETF expenses will reduce returns.

1. Total return calculations represent the cumulative and average annual changes in value of an investment over the periods indicated. Return for less than one year, if any, has not been annualized.

2. Assumes reinvestment of distributions based on net asset value.

3. Assumes reinvestment of distributions based on market price.

5. Source: FactSet. The FTSE Taiwan Capped Index is a free float-adjusted market capitalization-weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE Taiwan Capped Index is based on the FTSE Taiwan Index and is designed to measure the performance of Taiwanese large- andmid-capitalization stocks.

See www.franklintempletondatasources.com for additional data provider information.



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FRANKLIN FTSE TAIWAN ETF

Your Fund’s Expenses

Actual Fund Expenses

The table below provides information about actual account values and actual expenses in the columns under the heading “Actual.” In these columns the Fund’s actual return, which includes the effect of Fund expenses, is used to calculate the “Ending Account Value.” You can estimate the expenses you paid during the period by following these steps (of course, your account value and expenses will differ from those in this illustration):Divide your account value by $1,000 (if your account had an $8,600 value, then $8,600÷ $1,000 = 8.6).Then multiply the result by the number in the row under the headings “Actual” and “Expenses Paid During Period” (if Actual Expenses Paid During Period were $7.50, then 8.6 x $7.50 = $64.50).In this illustration, the actual expenses paid this period are $64.50.

Hypothetical Example for Comparison with Other Funds

Under the heading “Hypothetical” in the table, information is provided about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. This information may not be used to estimate the actual ending account balance or expenses you paid for the period, but it can help you compare ongoing costs of investing in the Fund with those of other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.


		Actual (actual return after expenses)				Hypothetical (5% annual return before expenses)

Beginning Account Value 10/1/18		Ending Account Value 3/31/19		Expenses Paid During Period 10/1/18–3/31/19^1,2		Ending Account Value 3/31/19		Expenses Paid During Period 10/1/18–3/31/19^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	938.90	$	0.92	$	1,023.98	$	0.96		0.19	%

2. Reflects expenses after fee waivers and expense reimbursements.



132	Annual Report	franklintempleton.com

Franklin FTSE United Kingdom ETF

This annual report for Franklin FTSE United Kingdom ETF covers the fiscal year ended March 31, 2019.

Your Fund’s Goal and Main Investments

The Fund seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the FTSE UK RIC Capped Index (the FTSE UK Capped Index or the Underlying Index).¹ Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE UK Capped Index and in depositary receipts representing such securities.

Performance Overview

For the12-month period, the Fund posted cumulative total returns of-0.82% based on market price and-0.51% based on net asset value. In comparison, the FTSE UK Capped Index posted a-0.33% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 135.

Investment Strategy

The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE UK Capped Index. We seek to achieve, over time, a correlation between the Fund’s performance, before fees and expenses, and that of the Underlying Index of 0.95 or better. A figure of 1.00 would indicate perfect correlation. Our intention is to replicate the component securities of the Underlying Index as closely as possible (i.e., invest in all of the component securities in their respective weightings in the Underlying Index). However, under various circumstances, it


Top 10 Sectors/Industries

3/31/19

	% of Total Net Assets
Oil, Gas & Consumable Fuels		16.0%
Banks		11.7%
Pharmaceuticals		8.2%
Metals & Mining		8.1%
Tobacco		5.1%
Insurance		5.0%
Beverages		4.1%
Hotels, Restaurants & Leisure		3.4%
Professional Services		3.0%
Personal Products		2.5%

may not be possible or practicable to replicate the Underlying Index. In these circumstances, we may use a “representative sampling” strategy whereby we would invest in what we believe to be a representative sample of the component securities of the Underlying Index, but may not track the Underlying Index with the same degree of accuracy as would an investment vehicle replicating the entire Underlying Index. Under the representative sampling technique, we will select securities that collectively have an investment profile similar to that of the Underlying Index, including securities that resemble those included in the Underlying Index in terms of risk factors, performance attributes and other characteristics, such as market capitalization and industry weightings. The Fund will concentrate its investments (i.e., hold 25% or more of its net assets) in a particular industry or group of industries to approximately the same extent that the Underlying Index is concentrated.

1. The FTSE UK Capped Index is a free float-adjusted market capitalization-weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE UK Capped Index is based on the FTSE UK Index and is designed to measure the performance of U.K. large- andmid-capitalization stocks.

2. Source: FactSet.

See www.franklintempletondatasources.com for additional data provider information.

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Statement of Investments (SOI). The SOI begins on page 268.



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FRANKLIN FTSE UNITED KINGDOM ETF


Top 10 Holdings

3/31/19

Company *Sector/Industry, Country*	% of Total Net Assets
Royal Dutch Shell PLC, A, B Oil, Gas & Consumable Fuels, United Kingdom		10.3%
HSBC Holdings PLC Banks, United Kingdom		6.5%
BP PLC Oil, Gas & Consumable Fuels, United Kingdom		5.7%
GlaxoSmithKline PLC Pharmaceuticals, United Kingdom		4.0%
AstraZeneca PLC Pharmaceuticals, United Kingdom		4.0%
Diageo PLC Beverages, United Kingdom		3.9%
British American Tobacco PLC Tobacco, United Kingdom		3.8%
Rio Tinto PLC Metals & Mining, United Kingdom		2.6%
Unilever PLC Personal Products, United Kingdom		2.5%
Lloyds Banking Group PLC Banks, United Kingdom		2.3%

Manager’s Discussion

During the12-month period, the sectors that contributed most to the Fund’s absolute performance were health care, energy and materials. Individual holdings that lifted the Fund’s absolute return included Diageo, BP and Rio Tinto.

For the same period, the sectors that detracted most from the Fund’s absolute performance were financials, communication services and industrials. Individual holdings that hindered the Fund’s absolute return included British American Tobacco, Vodafone Group and HSBC Holdings.

Thank you for your participation in Franklin FTSE United Kingdom ETF. We look forward to serving your future investment needs.

LOGO

Dina Ting, CFA


		Louis Hsu, CFA

		Portfolio Management Team



134	Annual Report	franklintempleton.com

FRANKLIN FTSE UNITED KINGDOM ETF

Performance Summary as of March 31, 2019

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (11/6/17), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Performance as of 3/31/19

Cumulative Total Return¹

Average Annual Total Return¹

Based on
NAV²

Based on

market price³

Based on
NAV²

Based on

market price³

1-Year

-0.51%

-0.82%

-0.51%

-0.82%

Since Inception (11/2/17)

+1.28%

+1.45%

+0.91%

+1.03%

See page 137 for Performance Summary footnotes.



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FRANKLIN FTSE UNITED KINGDOM ETF

PERFORMANCE SUMMARY

Total Return Index Comparison for a Hypothetical $10,000 Investment

11/2/17–3/31/19

LOGO

See page 137 for Performance Summary footnotes.



136	Annual Report	franklintempleton.com

FRANKLIN FTSE UNITED KINGDOM ETF

PERFORMANCE SUMMARY

Distributions(4/1/18–3/31/19)

Net Investment
Income

$0.844227

Total Annual Operating Expenses⁵

0.09%

ETFs trade like stocks, fluctuate in market value and may trade at prices above or below their net asset value. Brokerage commissions and ETF expenses will reduce returns.

1. Total return calculations represent the cumulative and average annual changes in value of an investment over the periods indicated. Return for less than one year, if any, has not been annualized.

2. Assumes reinvestment of distributions based on net asset value.

3. Assumes reinvestment of distributions based on market price.

4. Source: FactSet. The FTSE UK Capped Index is a free float-adjusted market capitalization-weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE UK Capped Index is based on the FTSE UK Index and is designed to measure the performance of U.K. large- andmid-capitalization stocks.

See www.franklintempletondatasources.com for additional data provider information.



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FRANKLIN FTSE UNITED KINGDOM ETF

Your Fund’s Expenses

Actual Fund Expenses

The table below provides information about actual account values and actual expenses in the columns under the heading “Actual.” In these columns the Fund’s actual return, which includes the effect of Fund expenses, is used to calculate the “Ending Account Value.” You can estimate the expenses you paid during the period by following these steps (of course, your account value and expenses will differ from those in this illustration):Divide your account value by $1,000 (if your account had an $8,600 value, then $8,600÷ $1,000 = 8.6).Then multiply the result by the number in the row under the headings “Actual” and “Expenses Paid During Period” (if Actual Expenses Paid During Period were $7.50, then 8.6 x $7.50 = $64.50).In this illustration, the actual expenses paid this period are $64.50.

Hypothetical Example for Comparison with Other Funds

Under the heading “Hypothetical” in the table, information is provided about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. This information may not be used to estimate the actual ending account balance or expenses you paid for the period, but it can help you compare ongoing costs of investing in the Fund with those of other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.


		Actual (actual return after expenses)				Hypothetical (5% annual return before expenses)

Beginning Account Value 10/1/18		Ending Account Value 3/31/19		Expenses Paid During Period 10/1/18–3/31/19^1,2		Ending Account Value 3/31/19		Expenses Paid During Period 10/1/18–3/31/19^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	985.70	$	0.45	$	1,024.48	$	0.45		0.09	%

2. Reflects expenses after fee waivers and expense reimbursements.



138	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin FTSE Asia ex Japan ETF



	Year Ended March 31,

	2019			2018^a

Per share operating performance (for a share outstanding throughout the year)

Net asset value, beginning of year	$	23.63		$	23.64


Income from investment operations^b:

Net investment income^c		0.51			0.04

Net realized and unrealized gains (losses)		(1.82	)		(0.05	)


Total from investment operations		(1.31	)		(0.01	)


Less distributions from net investment income		(0.46	)		—


Net asset value, end of year	$	21.86		$	23.63


Total return^d		(5.34)%			(0.04)%

Ratios to average net assets^e

Total expenses		0.19%			0.19%

Net investment income		2.34%			1.06%

Supplemental data

Net assets, end of year (000’s)		$17,488			$9,451

Portfolio turnover rate^f		7.11%			0.96%

^aFor the period February 6, 2018 (commencement of operations) to March 31, 2018.

^cBased on average daily shares outstanding.

^eRatios are annualized for periods less than one year.

^fPortfolio turnover rate excludes the value of portfolio securities received or delivered as a result of processing capital share transactions in Creation Units, if any.



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FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2019

Franklin FTSE Asia ex Japan ETF



		Industry		Shares		Value
	Common Stocks and Other Equity Interests 98.9%
	Cambodia 0.0%^†
	NagaCorp Ltd.		Hotels, Restaurants & Leisure		4,000	$	5,595

	China 34.4%
	3SBio Inc.		Biotechnology		5,000		9,834
a	51job Inc., ADR		Professional Services		84		6,542
a	58.com Inc., ADR		Interactive Media & Services		352		23,119
	AAC Technologies Holdings Inc.		Electronic Equipment, Instruments & Components		2,000		11,834
	Agile Group Holdings Ltd.		Real Estate Management & Development		4,000		6,471
	Agricultural Bank of China Ltd., H		Banks		112,000		51,649
	Air China Ltd., H		Airlines		8,000		9,845
a	Alibaba Group Holding Ltd., ADR		Internet & Direct Marketing Retail		4,404		803,510
a	Alibaba Health Information Technology Ltd.		Health Care Technology		12,000		13,865
a	Aluminum Corp. of China Ltd., H		Metals & Mining		16,000		5,890
	Angang Steel Co. Ltd., H		Metals & Mining		4,000		2,925
	Anhui Conch Cement Co. Ltd., H		Construction Materials		4,000		24,433
	Anhui Expressway Co. Ltd., H		Transportation Infrastructure		4,000		2,634
	Anhui Gujing Distillery Co. Ltd., B		Beverages		400		3,090
	Anta Sports Products Ltd.		Textiles, Apparel & Luxury Goods		4,000		27,210
a	Autohome Inc., ADR		Interactive Media & Services		202		21,234
	AviChina Industry & Technology Co. Ltd., H		Aerospace & Defense		10,000		6,382
	BAIC Motor Corp. Ltd., H		Automobiles		5,000		3,268
a	Baidu Inc., ADR		Interactive Media & Services		1,014		167,158
	Bank of China Ltd., H		Banks		278,000		126,075
	Bank of Communications Co. Ltd., H		Banks		30,000		24,573
	BBMG Corp., H		Construction Materials		10,000		3,669
a	BeiGene Ltd., ADR		Biotechnology		118		15,576
	Beijing Capital International Airport Co. Ltd.		Transportation Infrastructure		4,000		3,796
	Beijing Enterprises Holdings Ltd.		Gas Utilities		2,000		11,338
a	Beijing Enterprises Water Group Ltd.		Water Utilities		20,000		12,357
	Beijing Jingneng Clean Energy Co. Ltd., H		Independent Power and Renewable Electricity Producers		8,000		1,712
	Beijing North Star Co. Ltd., H		Real Estate Management & Development		4,000		1,355
	Bengang Steel Plates Co. Ltd., B		Metals & Mining		1,600		489
	BOE Technology Group Co. Ltd.		Electronic Equipment, Instruments & Components		3,600		1,385
	Brilliance China Automotive Holdings Ltd.		Automobiles		8,000		7,929
	BYD Co. Ltd., H		Automobiles		2,000		12,051
	BYD Electronic International Co. Ltd.		Communications Equipment		3,000		3,868
a	CAR Inc.		Road & Rail		4,000		3,450
	Central China Securities Co. Ltd., H		Capital Markets		4,000		1,223
	CGN Power Co. Ltd., H		Independent Power and Renewable Electricity Producers		44,000		12,275
	China Agri-Industries Holdings Ltd.		Food Products		8,000		2,741
	China Bluechemical Ltd.		Chemicals		8,000		2,599
	China Cinda Asset Management Co. Ltd., H		Capital Markets		36,000		9,998
	China CITIC Bank Corp. Ltd., H		Banks		30,000		19,108
	China Coal Energy Co. Ltd., H		Oil, Gas & Consumable Fuels		8,000		3,312
	China Communications Construction Co. Ltd., H		Construction & Engineering		16,000		16,550
	China Communications Services Corp. Ltd.		Diversified Telecommunication Services		8,000		7,134
	China Conch Venture Holdings Ltd.		Machinery		5,000		17,898
	China Construction Bank Corp., H		Banks		326,000		279,490
	China Dongxiang Group Co. Ltd.		Textiles, Apparel & Luxury Goods		12,000		1,743
	China Eastern Airlines Corp. Ltd., H		Airlines		8,000		5,676
	China Everbright Bank Co. Ltd., H		Banks		12,000		5,671



140	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Asia ex Japan ETF(continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	China (continued)
	China Everbright International Ltd.		Commercial Services & Supplies		11,703	$	11,897
	China Everbright Ltd.		Capital Markets		4,000		7,929
	China Evergrande Group		Real Estate Management & Development		8,000		26,599
	China Foods Ltd.		Food Products		4,000		1,580
	China Galaxy Securities Co. Ltd., H		Capital Markets		14,000		9,203
	China Hongqiao Group Ltd.		Metals & Mining		9,000		6,776
	China Huarong Asset Management Co. Ltd., H		Capital Markets		38,000		8,084
	China International Capital Corp. Ltd., H		Capital Markets		4,000		9,264
	China International Marine Containers (Group) Co. Ltd.		Machinery		1,800		2,302
	China Jinmao Holdings Group Ltd.		Real Estate Management & Development		24,000		15,654
	China Life Insurance Co. Ltd., H		Insurance		26,000		69,886
a	China Literature Ltd.		Media		800		3,745
	China Lodging Group Ltd., ADR		Hotels, Restaurants & Leisure		376		15,845
	China Longyuan Power Group Corp.		Independent Power and Renewable Electricity Producers		12,000		8,347
	China Machinery Engineering Corp., H		Construction & Engineering		4,000		2,038
	China Medical System Holdings Ltd.		Pharmaceuticals		6,000		5,817
a	China Mengniu Dairy Co. Ltd.		Food Products		10,000		37,198
	China Merchants Bank Co. Ltd., H		Banks		13,000		63,179
	China Merchants Port Holdings Co. Ltd.		Transportation Infrastructure		4,000		8,520
	China Merchants Securities Co. Ltd.		Capital Markets		3,600		5,100
	China Minsheng Banking Corp. Ltd., H		Banks		24,000		17,427
	China Mobile Ltd.		Wireless Telecommunication Services		19,000		193,632
	China Molybdenum Co. Ltd., H		Metals & Mining		18,000		7,521
	China National Building Material Co. Ltd., H		Construction Materials		13,700		10,803
	China Oilfield Services Ltd., H		Energy Equipment & Services		8,000		8,642
	China Overseas Land & Investment Ltd.		Real Estate Management & Development		12,000		45,554
	China Pacific Insurance Group Co. Ltd., H		Insurance		9,200		36,097
	China Petroleum & Chemical Corp., H		Oil, Gas & Consumable Fuels		92,000		72,546
	China Power International Development Ltd.		Independent Power and Renewable Electricity Producers		18,000		4,609
	China Railway Construction Corp. Ltd., H		Construction & Engineering		7,000		9,167
	China Railway Group Ltd., H		Construction & Engineering		14,000		12,770
b	China Railway Signal & Communication Corp. Ltd., H, Reg S		Electronic Equipment, Instruments & Components		6,000		4,747
	China Reinsurance Group Corp., H		Insurance		26,000		5,498
	China Resources Beer Holdings Co. Ltd.		Beverages		6,000		25,261
	China Resources Cement Holdings Ltd.		Construction Materials		8,000		8,255
	China Resources Gas Group Ltd.		Gas Utilities		3,000		14,140
	China Resources Land Ltd.		Real Estate Management & Development		8,000		35,873
	China Resources Pharmaceutical Group Ltd.		Pharmaceuticals		6,000		8,484
	China Resources Power Holdings Co. Ltd.		Independent Power and Renewable Electricity Producers		4,000		6,013
	China Shenhua Energy Co. Ltd., H		Oil, Gas & Consumable Fuels		12,000		27,363
	China South City Holdings Ltd.		Real Estate Management & Development		12,000		1,926
	China Southern Airlines Co. Ltd., H		Airlines		8,000		7,154
	China State Construction International Holdings Ltd.		Construction & Engineering		8,000		7,490
	China Taiping Insurance Holdings Co. Ltd.		Insurance		5,200		15,501
	China Telecom Corp. Ltd., H		Diversified Telecommunication Services		48,000		26,660
a	China Tower Corp. Ltd., H		Diversified Telecommunication Services		128,000		29,677
	China Traditional Chinese Medicine Co. Ltd.		Pharmaceuticals		8,000		4,759



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FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Asia ex Japan ETF(continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	China (continued)
	China Travel International Investment Hong Kong Ltd.		Hotels, Restaurants & Leisure		8,000	$	2,038
	China Unicom (Hong Kong) Ltd.		Diversified Telecommunication Services		20,000		25,350
	China Vanke Co. Ltd., H		Real Estate Management & Development		5,000		21,019
	China Zhongwang Holdings Ltd.		Metals & Mining		5,600		3,053
	Chongqing Changan Automobile Co. Ltd., B		Automobiles		3,200		1,700
	Chongqing Rural Commercial Bank Co. Ltd., H		Banks		10,000		5,771
	CIFI Holdings Group Co. Ltd.		Real Estate Management & Development		12,000		9,096
	CIMC Enric Holdings Ltd.		Machinery		4,000		4,102
	Citic Pacific Ltd.		Industrial Conglomerates		16,000		23,888
	CITIC Securities Co. Ltd., H		Capital Markets		8,000		18,629
	CNOOC Ltd.		Oil, Gas & Consumable Fuels		58,000		108,612
a	COSCO SHIPPING Development Co. Ltd., H		Marine		16,000		2,099
	COSCO Shipping Energy Transportation Co. Ltd., H		Marine		8,000		4,586
a	COSCO Shipping Holdings Co. Ltd.		Marine		10,000		4,153
	COSCO Shipping Ports Ltd.		Transportation Infrastructure		8,183		8,840
	Country Garden Holdings Co. Ltd.		Real Estate Management & Development		26,000		40,607
a	Country Garden Services Holdings Co. Ltd.		Commercial Services & Supplies		4,000		7,450
	CRRC Corp. Ltd., H		Machinery		14,000		13,198
	CSC Financial Co. Ltd., H		Capital Markets		4,000		3,557
	CSG Holding Co. Ltd.		Construction Materials		3,910		1,519
	CSPC Pharmaceutical Group Ltd.		Pharmaceuticals		16,000		29,758
a	CSSC Offshore and Marine Engineering Group Co. Ltd.		Machinery		4,000		4,377
a	Ctrip.com International Ltd., ADR		Internet & Direct Marketing Retail		1,390		60,729
	Dali Foods Group Co. Ltd.		Food Products		8,000		5,982
	Datang International Power Generation Co. Ltd., H		Independent Power and Renewable Electricity Producers		12,000		3,210
	Dazhong Transportation (Group) Co. Ltd., B		Road & Rail		3,000		1,614
a	Dongfang Electric Corp. Ltd., H		Electrical Equipment		1,600		1,298
	Dongfeng Motor Group Co. Ltd., H		Automobiles		12,000		12,015
	ENN Energy Holdings Ltd.		Gas Utilities		2,600		25,139
	Everbright Securities Co. Ltd., H		Capital Markets		800		796
	Far East Horizon Ltd.		Diversified Financial Services		8,000		8,479
a	FIH Mobile Ltd.		Electronic Equipment, Instruments & Components		12,000		1,330
	Fosun International Ltd.		Industrial Conglomerates		9,000		15,248
	Future Land Development Holdings Ltd.		Real Estate Management & Development		8,000		9,906
	Fuyao Group Glass Industries Co. Ltd., H		Auto Components		1,600		5,371
a	GCL-Poly Energy Holdings Ltd.		Semiconductors & Semiconductor Equipment		48,000		3,363
a	GDS Holdings Ltd., ADR		IT Services		168		5,996
	Geely Automobile Holdings Ltd.		Automobiles		16,000		30,573
a	Genscript Biotech Corp.		Life Sciences Tools & Services		4,000		7,552
	GF Securities Co. Ltd., H		Capital Markets		5,600		8,047
a	GOME Electrical Appliances Holding Ltd.		Specialty Retail		42,000		3,906
	Great Wall Motor Co. Ltd., H		Automobiles		12,000		9,004
	Greentown China Holdings Ltd.		Real Estate Management & Development		4,000		3,995
	Guangdong Electric Power Development Co. Ltd., B		Independent Power and Renewable Electricity Producers		3,000		1,093
	Guangdong Investment Ltd.		Water Utilities		8,000		15,450
	Guangshen Railway Co. Ltd., H		Road & Rail		8,000		3,118
	Guangzhou Automobile Group Co. Ltd., H		Automobiles		8,000		9,447



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STATEMENT OF INVESTMENTS

Franklin FTSE Asia ex Japan ETF(continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	China (continued)
	Guangzhou Baiyunshan Pharmaceutical Holdings Co. Ltd.		Pharmaceuticals		600	$	2,645
	Guangzhou R&F Properties Co. Ltd., H		Real Estate Management & Development		4,000		8,652
	Guotai Junan International holdings Ltd.		Capital Markets		8,000		1,620
	Guotai Junan Securities Co. Ltd.		Capital Markets		3,200		7,134
a,b,c	Haidilao International Holding Ltd., 144A, Reg S		Hotels, Restaurants & Leisure		2,000		6,395
a	Haier Electronics Group Co. Ltd.		Household Durables		4,000		11,618
	Haitian International Holdings Ltd.		Machinery		2,000		4,545
	Haitong Securities Co. Ltd., H		Capital Markets		12,000		15,531
a	Health & Happiness H&H International Holdings Ltd.		Food Products		1,000		6,261
	Hengan International Group Co. Ltd.		Personal Products		2,000		17,529
a	HengTen Networks Group Ltd.		Textiles, Apparel & Luxury Goods		72,000		2,183
	Hopson Development Holdings Ltd.		Real Estate Management & Development		4,000		3,898
	Huadian Fuxin Energy Corp. Ltd., H		Independent Power and Renewable Electricity Producers		8,000		1,773
	Huadian Power International Corp. Ltd., H		Independent Power and Renewable Electricity Producers		8,000		3,292
	Huaneng Power International Inc., H		Independent Power and Renewable Electricity Producers		16,000		9,294
	Huaneng Renewables Corp. Ltd., H		Independent Power and Renewable Electricity Producers		20,000		5,554
	Huatai Securities Co. Ltd., H		Capital Markets		6,400		12,800
	Huaxin Cement Co. Ltd., B		Construction Materials		1,000		2,027
	Industrial and Commercial Bank of China Ltd., H		Banks		286,000		209,492
	Inner Mongolia Yitai Coal Co. Ltd., B		Oil, Gas & Consumable Fuels		4,000		4,924
a	Iqiyi Inc., ADR		Entertainment		456		10,908
a	JD.com Inc., ADR		Internet & Direct Marketing Retail		2,912		87,797
	Jiangsu Expressway Co. Ltd., H		Transportation Infrastructure		4,000		5,656
a	Jiangxi Bank Co. Ltd., H		Banks		4,000		3,292
	Jiangxi Copper Co. Ltd., H		Metals & Mining		4,000		5,310
	Jiayuan International Group Ltd.		Real Estate Management & Development		8,000		4,229
	Kerry Logistics Network Ltd.		Air Freight & Logistics		2,000		3,618
	Kingboard Holdings Ltd.		Electronic Equipment, Instruments & Components		3,000		10,643
	Kingsoft Corp. Ltd.		Software		4,000		10,171
	Kunlun Energy Co. Ltd.		Oil, Gas & Consumable Fuels		8,000		8,357
	KWG Group Holdings Ltd.		Real Estate Management & Development		5,000		6,032
	Lao Feng Xiang Co., Ltd., B		Textiles, Apparel & Luxury Goods		800		2,798
	Legend Holdings Corp., H		Technology Hardware, Storage & Peripherals		1,600		4,250
	Lenovo Group Ltd.		Technology Hardware, Storage & Peripherals		24,000		21,585
a	Li Ning Co. Ltd.		Textiles, Apparel & Luxury Goods		6,000		9,417
	Livzon Pharmaceutical Group Inc., H		Pharmaceuticals		520		1,808
	Logan Property Holdings Co. Ltd.		Real Estate Management & Development		4,000		6,624
	Longfor Group Holdings Ltd.		Real Estate Management & Development		6,000		21,134
	Luye Pharma Group Ltd.		Pharmaceuticals		6,000		5,243
	Maanshan Iron & Steel Co. Ltd., H		Metals & Mining		8,000		3,913
a,b	Meitu Inc., Reg S		Technology Hardware, Storage & Peripherals		7,000		3,290
a,b	Meituan Dianping, B, Reg S		Internet & Direct Marketing Retail		1,600		10,782
	Metallurgical Corp. of China Ltd.		Construction & Engineering		12,000		3,547
	Minth Group Ltd.		Auto Components		2,000		6,293
a	MMG Ltd.		Metals & Mining		8,000		3,251
a	Momo Inc., ADR		Interactive Media & Services		364		13,919
	NetEase Inc., ADR		Entertainment		260		62,777
	New China Life Insurance Co. Ltd., H		Insurance		3,000		15,287
a	New Oriental Education & Technology Group Inc., ADR		Diversified Consumer Services		500		45,045
	Nexteer Automotive Group Ltd.		Auto Components		4,000		4,943



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STATEMENT OF INVESTMENTS

Franklin FTSE Asia ex Japan ETF(continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	China (continued)
	Nine Dragons Paper Holdings Ltd.		Paper & Forest Products		6,000	$	5,717
a	NIO Inc., ADR		Automobiles		576		2,938
	Orient Securities Co. Ltd. of China, H		Capital Markets		3,200		2,568
	People’s Insurance Co. Group of China Ltd., H		Insurance		30,000		12,841
	PetroChina Co. Ltd., H		Oil, Gas & Consumable Fuels		76,000		49,279
	PICC Property and Casualty Co. Ltd., H		Insurance		24,000		27,272
a	Pinduoduo Inc., ADR		Internet & Direct Marketing Retail		388		9,622
a,b	Ping An Healthcare and Technology Co. Ltd., Reg S		Health Care Technology		400		2,257
	Ping An Insurance (Group) Co. of China Ltd., H		Insurance		18,000		201,555
	Poly Property Group Co. Ltd.		Real Estate Management & Development		10,000		3,898
	Postal Savings Bank of China Co. Ltd., H		Banks		34,000		19,447
a,b	Qingdao Port International Co. Ltd., H, Reg S		Transportation Infrastructure		2,000		1,404
	Red Star Macalline Group Corp. Ltd.		Real Estate Management & Development		1,480		1,431
a	Semiconductor Manufacturing International Corp.		Semiconductors & Semiconductor Equipment		11,000		11,126
	Shandong Chenming Paper Holdings Ltd., B		Paper & Forest Products		2,800		1,766
	Shandong Chenming Paper Holdings Ltd., H		Paper & Forest Products		3,000		1,930
	Shandong Weigao Group Medical Polymer Co. Ltd., H		Health Care Equipment & Supplies		8,000		7,643
	Shanghai Bailian Group Co. Ltd., B		Food & Staples Retailing		1,000		1,053
	Shanghai Baosight Software Co. Ltd., B		Software		1,000		2,220
	Shanghai Chlor-Alkali Chemical Co. Ltd., B		Chemicals		1,600		1,130
	Shanghai Electric Group Co. Ltd., H		Electrical Equipment		12,000		4,555
	Shanghai Fosun Pharmaceutical Group Co. Ltd., H		Pharmaceuticals		2,000		7,223
	Shanghai Haixin Group Co., B		Pharmaceuticals		1,600		806
	Shanghai Huayi Group Co. Ltd., B		Chemicals		600		566
	Shanghai Industrial Holdings Ltd.		Industrial Conglomerates		2,000		4,708
	Shanghai Jinjiang International Hotels Development Co. Ltd.		Hotels, Restaurants & Leisure		600		1,327
	Shanghai Jinjiang International Industrial Investment Co. Ltd.		Road & Rail		1,000		1,078
	Shanghai Jinqiao Export Processing Zone Development, B		Real Estate Management & Development		1,200		1,526
	Shanghai Lujiazui Finance & Trade Zone Develop Co. Ltd., B		Real Estate Management & Development		3,400		4,991
	Shanghai Mechanical and Electrical Industry Co. Ltd., B		Machinery		1,000		1,873
	Shanghai Pharmaceuticals Holding Co. Ltd., H		Health Care Providers & Services		3,200		6,971
	Shanghai ShibeiHi-Tech Co. Ltd., B		Real Estate Management & Development		1,800		956
	Shanghai Waigaoqiao Free Trade Zone Group Co. Ltd.		Trading Companies & Distributors		1,000		1,376
	Shanghai Zhenhua Port Machinery Co. Ltd., B		Machinery		4,080		1,632
	Shenzhen Accord Pharmaceutical Co. Ltd., B		Health Care Providers & Services		200		777
	Shenzhen Expressway Co. Ltd., H		Transportation Infrastructure		4,000		4,688
	Shenzhen International Holdings Ltd.		Transportation Infrastructure		4,000		8,489
	Shenzhen Investment Ltd.		Real Estate Management & Development		16,000		6,115
	Shenzhou International Group Holdings Ltd.		Textiles, Apparel & Luxury Goods		2,600		34,844
	Shimao Property Holdings Ltd.		Real Estate Management & Development		5,000		15,637
	Shougang Fushan Resources Group Ltd.		Metals & Mining		12,000		2,752
	Shui On Land Ltd.		Real Estate Management & Development		13,000		3,213
	Sichuan Expressway Co. Ltd., H		Transportation Infrastructure		4,000		1,315
	Sihuan Pharmaceutical Holdings Group Ltd.		Pharmaceuticals		16,000		3,873
a	SINA Corp.		Interactive Media & Services		236		13,981
	Sino-Ocean Land Holdings Ltd.		Real Estate Management & Development		11,000		4,820
a	Sinofert Holdings Ltd.		Chemicals		12,000		1,498
	Sinopec Engineering Group Co. Ltd.		Construction & Engineering		6,000		5,855
a	Sinopec Oilfield Service Corp.		Energy Equipment & Services		12,000		1,376
	Sinopec Shanghai Petrochemical Co. Ltd., H		Chemicals		16,000		7,623
	Sinopharm Group Co. Ltd., H		Health Care Providers & Services		4,000		16,663



144	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Asia ex Japan ETF(continued)



		Industry			Shares		Value
	Common Stocks and Other Equity Interests (continued)
	China (continued)
	Sinotrans Ltd., H		Air Freight & Logistics			8,000	$	3,434
	Sinotruk Hong Kong Ltd.		Machinery			3,000		6,382
a	Soho China Ltd.		Real Estate Management & Development			7,000		2,943
	Sunac China Holdings Ltd.		Real Estate Management & Development			8,000		39,847
	Sunny Optical Technology Group Co. Ltd.		Electronic Equipment, Instruments & Components			2,200		26,274
a	TAL Education Group, ADR		Diversified Consumer Services			1,164		41,997
	Tencent Holdings Ltd.		Interactive Media & Services			20,800		956,541
a	Tianjin Capital Environmental Protection Group Co. Ltd.		Commercial Services & Supplies			4,000		1,702
	Tingyi Cayman Islands Holding Corp.		Food Products			4,000		6,594
a	Towngas China Co. Ltd.		Gas Utilities			4,000		3,144
	TravelSky Technology Ltd., H		IT Services			4,000		10,573
	Tsingtao Brewery Co. Ltd., H		Beverages			1,800		8,484
	Uni-President China Holdings Ltd.		Food Products			6,000		5,885
a	Vipshop Holdings Ltd., ADR		Internet & Direct Marketing Retail			1,544		12,398
	Want Want China Holdings Ltd.		Food Products			20,000		16,612
a	Weibo Corp., ADR		Interactive Media & Services			188		11,654
	Weichai Power Co. Ltd., H		Machinery			8,000		12,780
	Weifu High-Technology Co. Ltd., B		Auto Components			800		1,709
a,b	Wuxi Biologics Cayman Inc., Reg S		Life Sciences Tools & Services			2,000		19,452
d	Wuxi Little Swan Co. Ltd., B		Household Durables			400		2,700
a	Xiaomi Corp., B		Technology Hardware, Storage & Peripherals			32,800		47,550
	Xinhua Winshare Publishing and Media Co. Ltd., H		Distributors			2,000		1,557
	Xinjiang Goldwind Science & Technology Co. Ltd., H		Electrical Equipment			2,000		2,879
a	Xinjiang Goldwind Science & Technology Co. Ltd., rts., 4/23/19		Electrical Equipment			380		150
	Xinyi Solar Holdings Ltd.		Semiconductors & Semiconductor Equipment			12,000		5,778
b	Yangtze Optical Fibre and Cable Joint Stock Ltd. Co., H, Reg S		Communications Equipment			1,000		2,682
	Yantai Changyu Pioneer Wine Co. Ltd., B		Beverages			800		1,789
	Yanzhou Coal Mining Co. Ltd., H		Oil, Gas & Consumable Fuels			8,000		7,857
	Yuexiu Property Co. Ltd.		Real Estate Management & Development			24,000		5,778
a	YY Inc., ADR		Interactive Media & Services			150		12,601
	Zhaojin Mining Industry Co. Ltd., H		Metals & Mining			4,000		4,005
	Zhejiang Expressway Co. Ltd., H		Transportation Infrastructure			4,000		4,586
a,b	ZhongAn Online P&C Insurance Co. Ltd., Reg S		Insurance			1,200		4,311
	Zhongsheng Group Holdings Ltd.		Specialty Retail			3,000		7,445
	Zhuzhou CRRC Times Electric Co. Ltd., H		Electrical Equipment			2,000		11,822
	Zijin Mining Group Co. Ltd., H		Metals & Mining			24,000		9,936
	Zoomlion Heavy Industry Science and Technology Development Co. Ltd., H		Machinery			5,200		2,577
a	ZTE Corp., H		Communications Equipment			2,400		7,215
	ZTO Express Cayman Inc., ADR		Air Freight & Logistics			1,190		21,753


								6,011,195

	Hong Kong 11.5%
	AIA Group Ltd.		Insurance			44,000		438,041
a	Alibaba Pictures Group Ltd.		Entertainment			40,000		7,083
	ASM Pacific Technology Ltd.		Semiconductors & Semiconductor Equipment			1,200		13,383
	BOC Hong Kong (Holdings) Ltd.		Banks			13,000		53,822
	Bosideng International Holdings Ltd.		Textiles, Apparel & Luxury Goods			12,000		2,935
	Cathay Pacific Airways Ltd.		Airlines			2,000		3,501
	Champion REIT		Equity Real Estate Investment Trusts (REITs	)		8,000		6,930
	China Gas Holdings Ltd.		Gas Utilities			5,600		19,689



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STATEMENT OF INVESTMENTS

Franklin FTSE Asia ex Japan ETF(continued)



		Industry			Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Hong Kong (continued)
	Chow Tai Fook Jewellery Co. Ltd.		Specialty Retail			4,000	$	4,046
	CK Asset Holdings Ltd.		Real Estate Management & Development			10,000		88,918
	CK Hutchison Holdings Ltd.		Industrial Conglomerates			10,000		105,032
	CK Infrastructure Holdings Ltd.		Electric Utilities			3,000		24,631
	CLP Holdings Ltd.		Electric Utilities			6,000		69,555
	Dah Sing Banking Group Ltd.		Banks			1,600		3,004
	Dah Sing Financial Group		Banks			800		4,194
	Dairy Farm International Holdings Ltd.		Food & Staples Retailing			1,200		10,068
	First Pacific Co. Ltd.		Diversified Financial Services			12,000		4,372
a	Fullshare Holdings Ltd.		Electrical Equipment			25,000		3,344
	Great Eagle Holdings Ltd.		Real Estate Management & Development			2,000		10,191
	Haitong International Securities Group Ltd.		Capital Markets			8,000		3,149
	Hang Lung Group Ltd.		Real Estate Management & Development			4,000		12,841
	Hang Lung Properties Ltd.		Real Estate Management & Development			8,000		19,526
	Hang Seng Bank Ltd.		Banks			2,600		64,156
	Henderson Land Development Co. Ltd.		Real Estate Management & Development			4,400		27,970
	Hong Kong and China Gas Co. Ltd.		Gas Utilities			31,200		74,801
	Hong Kong Exchanges and Clearing Ltd.		Capital Markets			4,400		153,356
	Hongkong Land Holdings Ltd.		Real Estate Management & Development			4,200		29,862
	Hopewell Holdings Ltd.		Industrial Conglomerates			2,000		9,834
	Huabao International Holdings Ltd.		Chemicals			4,000		2,028
	Hutchison Telecommunications Hong Kong Holdings Ltd.		Wireless Telecommunication Services			8,000		3,404
	Hysan Development Co. Ltd.		Real Estate Management & Development			2,000		10,713
	Jardine Matheson Holdings Ltd.		Industrial Conglomerates			800		49,888
	Jardine Strategic Holdings Ltd.		Industrial Conglomerates			600		22,458
	Johnson Electric Holdings Ltd.		Electrical Equipment			2,000		4,632
	Kerry Properties Ltd.		Real Estate Management & Development			2,000		8,930
	Kingboard Laminates Holdings Ltd.		Chemicals			4,000		4,204
a	Landing International Development Ltd.		Real Estate Management & Development			4,800		1,370
	Lee & Man Paper Manufacturing Ltd.		Paper & Forest Products			6,000		5,113
	Li & Fung Ltd.		Textiles, Apparel & Luxury Goods			20,000		3,592
	Lifestyle International Holdings Ltd.		Multiline Retail			2,000		3,465
	Link REIT		Equity Real Estate Investment Trusts (REITs	)		8,000		93,555
	Melco International Development Ltd.		Hotels, Restaurants & Leisure			4,000		9,376
	MGM China Holdings Ltd.		Hotels, Restaurants & Leisure			3,200		6,693
	MTR Corp. Ltd.		Road & Rail			5,000		30,956
	New World Development Co. Ltd.		Real Estate Management & Development			22,000		36,489
	NWS Holdings Ltd.		Industrial Conglomerates			4,000		8,744
	PCCW Ltd.		Diversified Telecommunication Services			16,000		9,947
	Power Assets Holdings Ltd.		Electric Utilities			4,000		27,745
	Sa Sa International Holdings Ltd.		Specialty Retail			4,153		1,418
a	Samsonite International SA		Textiles, Apparel & Luxury Goods			4,200		13,456
	Shangri-La Asia Ltd.		Hotels, Restaurants & Leisure			4,000		5,687
	Shun Tak Holdings Ltd.		Industrial Conglomerates			8,000		3,180
	Sino Biopharmaceutical Ltd.		Pharmaceuticals			22,000		20,066
	Sino Land Co. Ltd.		Real Estate Management & Development			12,000		23,205
	Sun Art Retail Group Ltd.		Food & Staples Retailing			8,000		7,796
	Sun Hung Kai Properties Ltd.		Real Estate Management & Development			5,000		85,797
	Swire Pacific Ltd., A		Real Estate Management & Development			2,000		25,733
	Swire Pacific Ltd., B		Real Estate Management & Development			5,000		10,000
	Swire Properties Ltd.		Real Estate Management & Development			4,000		17,198
	Techtronic Industries Co. Ltd.		Household Durables			4,000		26,879
	Television Broadcasts Ltd.		Media			1,200		2,327
	The Bank of East Asia Ltd.		Banks			4,800		15,592
	The Wharf Holdings Ltd.		Real Estate Management & Development			4,000		12,076



146	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Asia ex Japan ETF(continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Hong Kong (continued)
	United Energy Group Ltd.		Oil, Gas & Consumable Fuels		24,000	$	4,647
	Vitasoy International Holdings Ltd.		Food Products		4,000		19,363
	VTech Holdings Ltd.		Communications Equipment		600		6,134
b	WH Group Ltd., Reg S		Food Products		30,000		32,102
	Wharf Real Estate Investment Co. Ltd.		Real Estate Management & Development		4,000		29,784
	Wheelock and Co. Ltd.		Real Estate Management & Development		3,000		21,975
	Xinyi Glass Holdings Ltd.		Auto Components		8,000		9,172
	Yue Yuen Industrial Holdings Ltd.		Textiles, Apparel & Luxury Goods		2,000		6,879


							2,012,002

	India 11.6%
a	3M India Ltd.		Industrial Conglomerates		8		2,802
	ABB India Ltd.		Electrical Equipment		196		3,723
	ACC Ltd.		Construction Materials		174		4,185
	Adani Enterprises Ltd.		Trading Companies & Distributors		1,018		2,156
	Adani Ports And Special Economic Zone Ltd.		Transportation Infrastructure		2,600		14,193
a	Adani Power Ltd.		Independent Power and Renewable Electricity Producers		3,568		2,483
a	Adani Transmissions Ltd.		Electric Utilities		1,000		3,138
a	Aditya Birla Capital Ltd.		Diversified Financial Services		1,764		2,475
	Alkem Laboratories Ltd.		Pharmaceuticals		148		3,741
	Ambuja Cements Ltd.		Construction Materials		2,804		9,524
	Ashok Leyland Ltd.		Machinery		4,512		5,947
	Asian Paints Ltd.		Chemicals		1,050		22,625
	Aurobindo Pharma Ltd.		Pharmaceuticals		926		10,483
a	Avenue Supermarts Ltd.		Food & Staples Retailing		428		9,089
a	Axis Bank Ltd.		Banks		6,564		73,647
	Bajaj Auto Ltd.		Automobiles		318		13,363
	Bajaj Finance Ltd.		Consumer Finance		638		27,859
	Bajaj Finserv Ltd.		Insurance		138		14,018
	Bajaj Holdings & Investment Ltd.		Diversified Financial Services		102		5,030
	Bandhan Bank Ltd.		Banks		482		3,662
a	Bank of Baroda		Banks		1,776		3,298
a	Bank of India		Banks		800		1,204
	Berger Paints India Ltd.		Chemicals		898		4,197
	Bharat Electronics Ltd.		Aerospace & Defense		2,272		3,058
	Bharat Forge Ltd.		Auto Components		718		5,311
	Bharat Heavy Electricals Ltd.		Electrical Equipment		2,868		3,103
	Bharat Petroleum Corp. Ltd.		Oil, Gas & Consumable Fuels		3,650		20,946
	Bharti Airtel Ltd.		Wireless Telecommunication Services		4,700		22,599
	Bharti Infratel Ltd.		Diversified Telecommunication Services		3,284		14,857
	Biocon Ltd.		Biotechnology		492		4,336
	Bosch Ltd.		Auto Components		24		6,300
	Britannia Industries Ltd.		Food Products		210		9,353
	Cadila Healthcare Ltd.		Pharmaceuticals		948		4,749
a	Canara Bank Ltd.		Banks		460		1,934
	Castrol India Ltd.		Chemicals		1,746		4,194
	Cipla Ltd.		Pharmaceuticals		1,240		9,467
	Coal India Ltd.		Oil, Gas & Consumable Fuels		5,416		18,545
	Colgate-Palmolive India Ltd.		Personal Products		242		4,395
	Container Corp. of India Ltd.		Road & Rail		800		6,066
	Cummins India Ltd.		Machinery		256		2,757
	Dabur India Ltd.		Personal Products		1,880		11,094
	Divi’s Laboratories Ltd.		Life Sciences Tools & Services		306		7,523
	DLF Ltd.		Real Estate Management & Development		1,624		4,746
	Dr Reddy’s Laboratories Ltd.		Pharmaceuticals		312		12,522



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STATEMENT OF INVESTMENTS

Franklin FTSE Asia ex Japan ETF(continued)



		Industry		Shares			Value
	Common Stocks and Other Equity Interests (continued)
	India (continued)
	Eicher Motors Ltd.		Automobiles		48		$	14,237
	Emami Ltd.		Personal Products		420			2,425
	Exide Industries Ltd.		Auto Components		786			2,481
	Federal Bank Ltd.		Banks		5,306			7,387
a	Future Retail Ltd.		Multiline Retail		780			5,110
	GAIL India Ltd.		Gas Utilities		2,084			10,458
	Gillette India Ltd.		Personal Products		28			2,666
	GlaxoSmithKline Consumer Healthcare Ltd.		Food Products		40			4,184
	Glenmark Pharmaceuticals Ltd.		Pharmaceuticals		532			4,970
a	GMR Infrastructure Ltd.		Construction & Engineering		4,872			1,393
	Godrej Consumer Products Ltd.		Personal Products		1,350			13,368
	Godrej Industries Ltd.		Industrial Conglomerates		270			2,091
	Grasim Industries Ltd.		Construction Materials		1,172			14,515
	Gruh Finance Ltd.		Thrifts & Mortgage Finance		620			2,468
	Havell’s India Ltd.		Electrical Equipment		924			10,304
	HCL Technologies Ltd.		IT Services		2,022			31,741
	HDFC Asset Management Co. Ltd.		Capital Markets		104			2,303
c	HDFC Life Insurance Co. Ltd., 144A		Insurance		1,218			6,655
	Hero Motocorp Ltd.		Automobiles		356			13,120
	Hindalco Industries Ltd.		Metals & Mining		3,430			10,175
	Hindustan Petroleum Corp. Ltd.		Oil, Gas & Consumable Fuels		2,326			9,531
	Hindustan Unilever Ltd.		Household Products		2,614			64,404
	Hindustan Zinc Ltd.		Metals & Mining		902			3,605
	Housing Development Finance Corp. Ltd.		Thrifts & Mortgage Finance		6,234			177,121
b	ICICI Lombard General Insurance Co. Ltd., Reg S		Insurance		580			8,651
b	ICICI Prudential Life Insurance Co. Ltd., Reg S		Insurance		994			5,026
	IDFC First Bank Ltd.		Banks		8,362			6,699
	IDFC Ltd.		Diversified Financial Services		400			269
	Indiabulls Housing Finance Ltd.		Thrifts & Mortgage Finance		1,242			15,387
	Indian Oil Corp. Ltd.		Oil, Gas & Consumable Fuels		8,034			18,886
	Infosys Ltd.		IT Services		13,950			149,790
b	InterGlobe Aviation Ltd., Reg S		Airlines		362			7,463
	ITC Ltd.		Tobacco		10,782			46,264
a	Jindal Steel & Power Ltd.		Metals & Mining		1,410			3,658
a	JSW Energy Ltd.		Independent Power and Renewable Electricity Producers		1,472			1,543
	JSW Steel Ltd.		Metals & Mining		4,314			18,249
	Kansai Nerolac Paints Ltd.		Chemicals		498			3,296
	L&T Finance Holdings Ltd.		Diversified Financial Services		1,686			3,713
b	Larsen & Toubro Infotech Ltd., Reg S		IT Services		114			2,802
	Larsen & Toubro Ltd.		Construction & Engineering		1,204			24,077
	LIC Housing Finance Ltd.		Thrifts & Mortgage Finance		954			7,329
	Lupin Ltd.		Pharmaceuticals		852			9,096
	Mahindra & Mahindra Financial Services Ltd.		Consumer Finance		1,052			6,396
	Mahindra & Mahindra Ltd.		Automobiles		2,186			21,265
	Marico Ltd.		Personal Products		1,740			8,707
	Maruti Suzuki India Ltd.		Automobiles		442			42,573
	Motherson Sumi Systems Ltd.		Auto Components		3,615			7,812
	Mphasis Ltd.		IT Services		283			4,049
	MRF Ltd.		Auto Components		4			3,348
a	Muthoot Finance Ltd.		Consumer Finance		354			3,146
	Nestle India Ltd.		Food Products		84			13,291
	NHPC Ltd.		Independent Power and Renewable Electricity Producers		9,042	��		3,224



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FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Asia ex Japan ETF(continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	India (continued)
	NMDC Ltd.		Metals & Mining		2,821	$	4,253
	NTPC Ltd.		Independent Power and Renewable Electricity Producers		9,072		17,640
	Odisha Cement Ltd.		Construction Materials		176		2,514
	Oil & Natural Gas Corp. Ltd.		Oil, Gas & Consumable Fuels		11,382		26,247
	Oil India Ltd.		Oil, Gas & Consumable Fuels		1,050		2,811
	Oracle Financial Services Software Ltd.		Software		88		4,304
	Page Industries Ltd.		Textiles, Apparel & Luxury Goods		18		6,489
	Petronet LNG Ltd.		Oil, Gas & Consumable Fuels		1,926		6,994
	Pidilite Industries Ltd.		Chemicals		474		8,527
	Piramal Enterprises Ltd.		Pharmaceuticals		324		12,924
	Power Finance Corp., Ltd.		Diversified Financial Services		2,200		3,909
	Power Grid Corp. of India Ltd.		Electric Utilities		2,960		8,456
a	Punjab National Bank Ltd.		Banks		1,800		2,481
	Rajesh Exports Ltd.		Textiles, Apparel & Luxury Goods		534		5,133
b	RBL Bank Ltd., Reg S		Banks		1,142		11,216
	REC Ltd.		Diversified Financial Services		2,528		5,580
	Reliance Capital Ltd.		Diversified Financial Services		476		1,405
	Reliance Industries Ltd.		Oil, Gas & Consumable Fuels		11,366		223,669
	Reliance Infrastructure Ltd.		Electric Utilities		496		981
a	Reliance Power Ltd.		Independent Power and Renewable Electricity Producers		2,116		347
	SBI Life Insurance Co. Ltd.		Insurance		420		3,537
	Shree Cement Ltd.		Construction Materials		32		8,623
	Shriram Transport Finance Co. Ltd.		Consumer Finance		614		11,322
	Siemens Ltd.		Industrial Conglomerates		330		5,377
a	State Bank of India		Banks		6,482		30,012
a	Steel Authority of India Ltd.		Metals & Mining		3,820		2,964
	Sun Pharmaceutical Industries Ltd.		Pharmaceuticals		4,014		27,746
	Sun TV Network Ltd.		Media		324		2,938
	Tata Communications Ltd.		Diversified Telecommunication Services		262		2,317
	Tata Consultancy Services Ltd.		IT Services		3,304		95,467
a	Tata Motors Ltd.		Automobiles		3,862		9,714
a	Tata Motors Ltd., A		Automobiles		1,030		1,272
	Tata Power Co. Ltd.		Electric Utilities		3,648		3,886
	Tata Steel Ltd.		Metals & Mining		1,042		7,837
	Tech Mahindra Ltd.		IT Services		1,736		19,444
	Titan Co. Ltd.		Textiles, Apparel & Luxury Goods		1,138		18,757
	Torrent Pharmaceuticals Ltd.		Pharmaceuticals		156		4,391
	Torrent Power Ltd.		Electric Utilities		444		1,650
	TVS Motor Co. Ltd.		Automobiles		390		2,651
	UltraTech Cement Ltd.		Construction Materials		382		22,048
a	Union Bank of India Ltd.		Banks		560		773
	United Breweries Ltd.		Beverages		256		5,154
a	United Spirits Ltd.		Beverages		1,140		9,115
	UPL Ltd.		Chemicals		1,308		18,104
	Vedanta Ltd.		Metals & Mining		5,998		15,970
a	Vodafone Idea Ltd, rts. 4/24/19		Wireless Telecommunication Services		18,673		1,550
a	Vodafone Idea Ltd.		Wireless Telecommunication Services		8,156		2,149
	Voltas Ltd.		Construction & Engineering		364		3,307
	Wipro Ltd.		IT Services		5,154		18,957
a	Wockhardt Ltd.		Pharmaceuticals		112		716
	Yes Bank Ltd.		Banks		6,210		24,661
	Zee Entertainment Enterprises Ltd.		Media		1,936		12,450


							2,034,157

	Indonesia 2.3%
	Adaro Energy Tbk PT		Oil, Gas & Consumable Fuels		48,000		4,534
	Astra Agro Lestari Tbk PT		Food Products		1,800		1,419



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STATEMENT OF INVESTMENTS

Franklin FTSE Asia ex Japan ETF(continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Indonesia (continued)
	Astra International Tbk PT		Automobiles		74,800	$	38,477
	Bank Central Asia Tbk PT		Banks		35,000		68,206
d	Bank Danamon Indonesia Tbk PT		Banks		12,000		7,837
	Bank Mandiri Persero Tbk PT		Banks		67,600		35,366
	Bank Negara Indonesia Persero Tbk PT		Banks		27,000		17,823
	Bank Rakyat Indonesia Persero Tbk PT		Banks		193,800		56,071
	Bukit Asam Tbk PT		Oil, Gas & Consumable Fuels		15,600		4,601
a	Bumi Serpong Damai Tbk PT		Real Estate Management & Development		29,200		2,881
	Charoen Pokphand Indonesia Tbk PT		Food Products		27,000		12,135
	Gudang Garam Tbk PT		Tobacco		1,600		9,348
	Hanjaya Mandala Sampoerna Tbk PT		Tobacco		33,600		8,848
	Indah Kiat Pulp & Paper Corp Tbk PT		Paper & Forest Products		9,600		5,798
	Indocement Tunggal Prakarsa Tbk PT		Construction Materials		5,200		7,997
	Indofood CBP Sukses Makmur Tbk PT		Food Products		8,800		5,763
	Indofood Sukses Makmur Tbk PT		Food Products		14,600		6,536
	Jasa Marga Persero Tbk PT		Transportation Infrastructure		8,400		3,525
	Kalbe Farma Tbk PT		Pharmaceuticals		72,400		7,728
	Matahari Department Store Tbk PT		Multiline Retail		9,000		2,585
	Media Nusantara Citra Tbk PT		Media		19,000		1,001
	Perusahaan Gas Negara (Persero) Tbk PT		Gas Utilities		38,800		6,403
	PT Barito Pacific Tbk		Chemicals		13,800		3,479
	Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk, B		Diversified Telecommunication Services		169,800		47,100
a	PT XL Axiata Tbk		Wireless Telecommunication Services		13,800		2,617
	Semen Indonesia (Persero) Tbk PT		Construction Materials		10,400		10,188
	Surya Citra Media Tbk PT		Media		22,000		2,557
	Tower Bersama Infrastructure Tbk PT		Diversified Telecommunication Services		7,600		2,103
	Unilever Indonesia Tbk PT		Household Products		4,000		13,827
	United Tractors Tbk PT		Oil, Gas & Consumable Fuels		5,600		10,638
a	Vale Indonesia Tbk PT		Metals & Mining		7,800		1,857


							409,248

	Italy 0.0%^†
	Prada SpA		Textiles, Apparel & Luxury Goods		1,800		5,354

	Luxembourg 0.0%^†
	L’Occitane International SA		Specialty Retail		2,000		3,710

	Macau 0.7%
	Galaxy Entertainment Group Ltd.		Hotels, Restaurants & Leisure		8,000		54,472
	Macau Legend Development Ltd.		Hotels, Restaurants & Leisure		8,000		1,355
	Sands China Ltd.		Hotels, Restaurants & Leisure		8,800		44,224
	SJM Holdings Ltd.		Hotels, Restaurants & Leisure		8,000		9,131
	Wynn Macau Ltd.		Hotels, Restaurants & Leisure		5,600		13,198


							122,380

	Malaysia 3.0%
	AirAsia Group Bhd.		Airlines		5,400		3,518
	Alliance Bank Malaysia Bhd.		Banks		4,200		4,208
	AMMB Holdings Bhd.		Banks		7,200		8,042
	Astro Malaysia Holdings Bhd.		Media		5,400		2,024
	Axiata Group Bhd.		Wireless Telecommunication Services		16,200		16,468
	British American Tobacco Malaysia Bhd.		Tobacco		400		3,541
	CIMB Group Holdings Bhd.		Banks		24,600		31,032
	Dialog Group Bhd.		Energy Equipment & Services		16,400		12,734
	Digi.com Bhd.		Wireless Telecommunication Services		12,800		14,266
a	FGV Holdings Bhd.		Food Products		7,200		2,081
	Fraser & Neave Holdings Bhd.		Beverages		400		3,414



150	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Asia ex Japan ETF(continued)



		Industry			Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Malaysia (continued)
	Gamuda Bhd.		Construction & Engineering			8,400	$	5,926
	Genting Bhd.		Hotels, Restaurants & Leisure			8,200		13,337
	Genting Malaysia Bhd.		Hotels, Restaurants & Leisure			10,800		8,465
	HAP Seng Consolidated Bhd.		Industrial Conglomerates			2,400		5,820
	Hartalega Holdings Bhd.		Health Care Equipment & Supplies			5,400		6,124
	Hong Leong Bank Bhd.		Banks			2,400		11,934
	Hong Leong Financial Group Bhd.		Banks			1,000		4,698
	IHH Healthcare Bhd.		Health Care Providers & Services			10,800		15,264
	IJM Corp. Bhd.		Construction & Engineering			12,200		6,634
	IOI Corp. Bhd.		Food Products			11,800		12,891
	IOI Properties Group Bhd.		Real Estate Management & Development			7,200		2,328
	KLCCP Stapled Group		Equity Real Estate Investment Trusts (REITs	)		1,800		3,421
	Kuala Lumpur Kepong Bhd.		Food Products			1,800		10,935
	Malayan Banking Bhd.		Banks			21,238		48,224
	Malaysia Airports Holdings Bhd.		Transportation Infrastructure			3,400		6,030
	Maxis Bhd.		Wireless Telecommunication Services			10,000		13,129
	MISC Bhd.		Marine			5,400		8,849
	Nestle (Malaysia) Bhd.		Food Products			200		7,192
	Petronas Chemicals Group Bhd.		Chemicals			10,200		22,886
	Petronas Dagangan Bhd.		Oil, Gas & Consumable Fuels			1,200		7,348
	Petronas Gas Bhd.		Gas Utilities			3,000		12,948
	PPB Group Bhd.		Food Products			2,640		11,847
	Press Metal Aluminium Holdings Bhd.		Metals & Mining			6,600		7,291
	Public Bank Bhd.		Banks			11,200		63,538
	QL Resources Bhd.		Food Products			2,600		4,382
	RHB Bank Bhd.		Banks			4,400		6,143
	Sime Darby Bhd.		Industrial Conglomerates			13,600		7,429
	Sime Darby Plantation Bhd.		Food Products			13,000		15,985
	Sime Darby Property Bhd.		Real Estate Management & Development			13,600		3,698
	Telekom Malaysia Bhd.		Diversified Telecommunication Services			4,600		3,606
	Tenaga Nasional Bhd.		Electric Utilities			14,400		44,655
	Top Glove Corp. Bhd.		Health Care Equipment & Supplies			6,200		7,016
	UEM Sunrise Bhd.		Real Estate Management & Development			4,800		964
	Westports Holdings Bhd.		Transportation Infrastructure			3,800		3,500
	YTL Corp. Bhd.		Multi-Utilities			17,800		4,622
	YTL Power International Bhd.		Multi-Utilities			8,000		1,685


								522,072

	Pakistan 0.1%
	Fauji Fertilizer Co. Ltd.		Chemicals			3,000		2,227
	Habib Bank Ltd.		Banks			2,600		2,447
a	National Bank of Pakistan		Banks			2,000		569
	Oil & Gas Development Co. Ltd.		Oil, Gas & Consumable Fuels			1,000		1,048
	Pakistan Petroleum Ltd.		Oil, Gas & Consumable Fuels			2,070		2,721


								9,012

	Philippines 1.4%
	Aboitiz Power Corp.		Independent Power and Renewable Electricity Producers			6,000		4,045
	Alliance Global Group Inc.		Industrial Conglomerates			15,000		4,616
	Ayala Corp.		Diversified Financial Services			925		16,559
	Ayala Land Inc.		Real Estate Management & Development			25,600		21,890
	Bank of the Philippine Islands		Banks			6,484		10,397
	BDO Unibank Inc.		Banks			6,960		17,735
	Bloomberry Resorts Corp.		Hotels, Restaurants & Leisure			13,200		3,017
	DMCI Holdings Inc.		Industrial Conglomerates			14,200		3,245
	Globe Telecom Inc.		Wireless Telecommunication Services			110		4,060



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STATEMENT OF INVESTMENTS

Franklin FTSE Asia ex Japan ETF(continued)



		Industry			Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Philippines (continued)
	GT Capital Holdings Inc.		Diversified Financial Services			351	$	6,227
	International Container Terminal Services Inc.		Transportation Infrastructure			4,200		10,454
	JG Summit Holdings Inc.		Industrial Conglomerates			10,500		12,698
	Jollibee Foods Corp.		Hotels, Restaurants & Leisure			1,560		9,418
	LT Group Inc.		Industrial Conglomerates			10,600		3,250
	Manila Electric Co.		Electric Utilities			1,020		7,381
	Megaworld Corp.		Real Estate Management & Development			44,000		4,860
	Metro Pacific Investments Corp.		Diversified Financial Services			54,600		5,043
	Metropolitan Bank & Trust Co.		Banks			6,126		9,321
	PLDT Inc.		Wireless Telecommunication Services			420		9,198
	San Miguel Corp.		Industrial Conglomerates			1,320		4,374
	San Miguel Pure Foods Co. Inc.		Food Products			2,420		4,977
	Semirara Mining and Power Corp.		Oil, Gas & Consumable Fuels			4,600		1,923
	SM Investments Corp.		Industrial Conglomerates			1,760		31,305
	SM Prime Holdings Inc.		Real Estate Management & Development			33,000		25,075
	Universal Robina Corp.		Food Products			3,400		9,842


								240,910

	Singapore 4.1%
	Ascendas REIT		Equity Real Estate Investment Trusts (REITs	)		9,200		19,765
	BOC Aviation Ltd.		Trading Companies & Distributors			800		6,527
	CapitaLand Commercial Trust		Equity Real Estate Investment Trusts (REITs	)		9,000		12,890
	CapitaLand Ltd.		Real Estate Management & Development			9,200		24,791
	CapitaLand Mall Trust		Equity Real Estate Investment Trusts (REITs	)		8,800		15,463
	City Developments Ltd.		Real Estate Management & Development			1,800		12,027
	ComfortDelGro Corp. Ltd.		Road & Rail			7,400		14,041
	DBS Group Holdings Ltd.		Banks			6,600		122,937
	Frasers Property Ltd.		Real Estate Management & Development			1,600		2,138
	Genting Singapore Ltd.		Hotels, Restaurants & Leisure			21,400		16,431
	Golden Agri-Resources Ltd.		Food Products			24,600		5,085
	Hutchison Port Holdings Trust		Transportation Infrastructure			18,800		4,418
	Jardine Cycle & Carriage Ltd.		Distributors			400		9,595
	Keppel Corp. Ltd.		Industrial Conglomerates			5,400		24,797
	Keppel REIT		Equity Real Estate Investment Trusts (REITs	)		7,200		6,857
	Mapletree Commercial Trust		Equity Real Estate Investment Trusts (REITs	)		6,600		9,209
b	Mapletree Greater China Commercial Trust, Reg S		Equity Real Estate Investment Trusts (REITs	)		7,800		7,601
	Mapletree Industrial Trust		Equity Real Estate Investment Trusts (REITs	)		4,800		7,442
	Mapletree Logistics Trust		Equity Real Estate Investment Trusts (REITs	)		8,600		9,270
	Olam International Ltd.		Food & Staples Retailing			2,200		3,216
	Oversea-Chinese Banking Corp. Ltd.		Banks			12,000		97,896
	SATS Ltd.		Transportation Infrastructure			2,400		9,054
	SembCorp Industries Ltd.		Industrial Conglomerates			3,200		6,024
	SembCorp Marine Ltd.		Machinery			3,000		3,566
	SIA Engineering Co. Ltd.		Transportation Infrastructure			400		727
	Singapore Airlines Ltd.		Airlines			2,000		14,264
	Singapore Exchange Ltd.		Capital Markets			3,000		16,191
	Singapore Post Ltd.		Air Freight & Logistics			5,800		4,282
	Singapore Press Holdings Ltd.		Media			6,200		11,031
	Singapore Technologies Engineering Ltd.		Aerospace & Defense			5,800		16,015
	Singapore Telecommunications Ltd.		Diversified Telecommunication Services			27,200		60,645
	StarHub Ltd.		Wireless Telecommunication Services			2,200		2,420
	Suntec REIT		Equity Real Estate Investment Trusts (REITs	)		6,800		9,790
	United Overseas Bank Ltd.		Banks			4,600		85,547
	UOL Group Ltd.		Real Estate Management & Development			1,800		9,236
	Venture Corp. Ltd.		Electronic Equipment, Instruments & Components			800		10,596



152	Annual Report	franklintempleton.com

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STATEMENT OF INVESTMENTS

Franklin FTSE Asia ex Japan ETF(continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Singapore (continued)
	Wilmar International Ltd.		Food Products		7,400	$	18,083
	Wing Tai Holdings Ltd.		Real Estate Management & Development		1,600		2,398
	Yangzijiang Shipbuilding Holdings Ltd.		Machinery		8,200		9,081
	Yanlord Land Group Ltd.		Real Estate Management & Development		2,600		2,611


							723,957

	South Korea 13.6%
	Amorepacific Corp.		Personal Products		114		18,931
	AmorePacific Group		Personal Products		110		6,745
	BGF Co. Ltd.		Industrial Conglomerates		48		346
	BGF Retail Co. Ltd.		Food & Staples Retailing		22		4,235
	BNK Financial Group Inc.		Banks		1,118		6,579
a	Celltrion Healthcare Co. Ltd.		Health Care Providers & Services		179		10,534
a	Celltrion Inc.		Biotechnology		289		46,083
	Cheil Worldwide Inc.		Media		266		5,671
	CJ CheilJedang Corp.		Food Products		28		7,968
	CJ Corp.		Industrial Conglomerates		48		5,265
	CJ ENM Co. Ltd.		Internet & Direct Marketing Retail		34		6,979
a	CJ Logistics Corp.		Road & Rail		28		4,082
	Coway Co. Ltd.		Household Durables		202		16,817
	Daelim Industrial Co. Ltd.		Construction & Engineering		100		8,493
a	Daewoo Engineering & Construction Co. Ltd.		Construction & Engineering		680		3,043
a	Daewoo Shipbuilding & Marine Engineering Co. Ltd.		Machinery		166		4,087
	DB Insurance Co. Ltd.		Insurance		170		10,289
	DGB Financial Group Inc.		Banks		588		4,232
	Dongsuh Cos. Inc.		Food & Staples Retailing		118		2,048
	Doosan Bobcat Inc.		Machinery		86		2,341
	Doosan Corp.		Industrial Conglomerates		22		1,795
a	Doosan Heavy Industries & Construction Co. Ltd., rts., 5/9/19		Electrical Equipment		139		140
a	Doosan Heavy Industries and Construction Co. Ltd.		Electrical Equipment		240		1,415
a	Doosan Infracore Co. Ltd.		Machinery		478		2,969
	E-MART Inc.		Food & Staples Retailing		72		10,910
	Fila Korea Ltd.		Textiles, Apparel & Luxury Goods		188		12,919
	GS Engineering & Construction Corp.		Construction & Engineering		212		7,956
	GS Holdings Corp.		Oil, Gas & Consumable Fuels		196		9,117
	GS Retail Co. Ltd.		Food & Staples Retailing		102		3,518
	Hana Financial Group Inc.		Banks		1,082		34,697
	Hankook Tire Co. Ltd.		Auto Components		280		9,238
	Hanmi Pharm Co. Ltd.		Pharmaceuticals		26		10,445
	Hanmi Science Co. Ltd.		Pharmaceuticals		51		3,478
	Hanon Systems		Auto Components		618		6,179
	Hanssem Co. Ltd.		Household Durables		38		3,073
a	Hanwha Aerospace Co. Ltd.		Aerospace & Defense		134		4,061
	Hanwha Chemical Corp.		Chemicals		314		5,782
	Hanwha Corp.		Industrial Conglomerates		170		4,553
	Hanwha Life Insurance Co. Ltd.		Insurance		940		3,312
	HDC Holdings Co. Ltd.		Construction & Engineering		98		1,636
	HDC Hyundai DevelopmentCo-Engineering & Construction		Construction & Engineering		116		5,181
	Hite Jinro Co. Ltd.		Beverages		116		1,891
a	HLB Inc.		Leisure Products		126		8,880
	Hotel Shilla Co. Ltd.		Specialty Retail		118		9,917
	Hyosung TNC Co. Ltd.		Textiles, Apparel & Luxury Goods		10		1,524
	Hyundai Construction Equipment Co. Ltd.		Machinery		44		1,847
	Hyundai Department Store Co. Ltd.		Multiline Retail		58		5,161



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STATEMENT OF INVESTMENTS

Franklin FTSE Asia ex Japan ETF(continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	South Korea (continued)
	Hyundai Engineering & Construction Co. Ltd.		Construction & Engineering		270	$	12,702
	Hyundai Glovis Co. Ltd.		Air Freight & Logistics		70		7,924
a	Hyundai Heavy Industries Co. Ltd.		Machinery		156		16,355
	Hyundai Heavy Industries Holdings Co. Ltd.		Machinery		36		10,561
	Hyundai Marine & Fire Insurance Co. Ltd.		Insurance		232		7,746
	Hyundai Mipo Dockyard Co. Ltd.		Machinery		76		3,937
	Hyundai Mobis Co. Ltd.		Auto Components		238		43,717
	Hyundai Motor Co.		Automobiles		518		54,534
	Hyundai Steel Co.		Metals & Mining		278		10,997
	Hyundai Wia Corp.		Auto Components		54		1,927
	Industrial Bank of Korea		Banks		1,014		12,551
	Kakao Corp.		Interactive Media & Services		180		16,413
	Kangwon Land Inc.		Hotels, Restaurants & Leisure		408		11,502
	KB Financial Group Inc.		Banks		1,440		53,091
	KCC Corp.		Building Products		22		6,173
	KEPCO Plant Service and Engineering Co. Ltd.		Commercial Services & Supplies		82		2,514
	Kia Motors Corp.		Automobiles		956		29,772
	Korea Aerospace Industries Ltd.		Aerospace & Defense		248		7,723
a	Korea Electric Power Corp.		Electric Utilities		942		24,813
	Korea Gas Corp.		Gas Utilities		102		4,053
	Korea Investment Holdings Co. Ltd.		Capital Markets		146		7,987
	Korea Zinc Co. Ltd.		Metals & Mining		34		13,928
	Korean Air Lines Co. Ltd.		Airlines		174		4,882
	KT&G Corp.		Tobacco		402		36,655
	Kumho Petrochemical Co. Ltd.		Chemicals		68		5,703
	LG Chem Ltd.		Chemicals		166		53,525
	LG Corp.		Industrial Conglomerates		340		23,214
a	LG Display Co. Ltd.		Electronic Equipment, Instruments & Components		812		13,949
	LG Electronics Inc.		Household Durables		398		26,332
	LG Household & Health Care Ltd.		Personal Products		32		39,947
	LG Uplus Corp.		Diversified Telecommunication Services		740		10,072
	Lotte Chemical Corp.		Chemicals		54		13,820
	Lotte Chilsung Beverage Co. Ltd.		Beverages		2		3,120
	Lotte Corp.		Industrial Conglomerates		98		4,265
	LOTTE Fine Chemical Co. Ltd.		Chemicals		68		2,642
	Lotte Shopping Co. Ltd.		Multiline Retail		36		5,645
	LS Corp.		Electrical Equipment		66		3,041
	Mando Corp.		Auto Components		102		2,570
	Medy-tox Inc.		Biotechnology		14		7,200
	Mirae Asset Daewood Co. Ltd.		Capital Markets		1,600		10,332
	Naver Corp.		Interactive Media & Services		488		53,310
	NCsoft Corp.		Entertainment		62		27,092
a	Netmarble Corp		Entertainment		68		7,488
	NH Investment & Securities Co. Ltd.		Capital Markets		492		5,830
a	NHN Entertainment Corp.		Entertainment		38		2,963
	Nongshim Co. Ltd.		Food Products		12		3,267
	OCI Co. Ltd.		Chemicals		66		5,402
	Orion Corp.		Food Products		82		7,224
	Ottogi Corp.		Food Products		4		2,717
	Paradise Co. Ltd.		Hotels, Restaurants & Leisure		174		2,744
	POSCO		Metals & Mining		250		55,722
	POSCO Chemical Co. Ltd.		Construction Materials		76		4,031
	Posco Daewoo Corp.		Trading Companies & Distributors		188		2,940
	S-1 Corp.		Commercial Services & Supplies		72		6,375
	S-Oil Corp.		Oil, Gas & Consumable Fuels		148		11,682
a	Samsung Biologics Co. Ltd.		Life Sciences Tools & Services		48		13,511



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STATEMENT OF INVESTMENTS

Franklin FTSE Asia ex Japan ETF(continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	South Korea (continued)
	Samsung C&T Corp.		Industrial Conglomerates		304	$	28,657
	Samsung Card Co. Ltd.		Consumer Finance		118		3,576
	Samsung Electro-Mechanics Co. Ltd.		Electronic Equipment, Instruments & Components		204		18,781
	Samsung Electronics Co. Ltd.		Technology Hardware, Storage & Peripherals		17,190		676,181
a	Samsung Engineering Co. Ltd.		Construction & Engineering		586		8,312
	Samsung Fire & Marine Insurance Co. Ltd.		Insurance		120		31,821
a	Samsung Heavy Industries Co. Ltd.		Machinery		1,620		11,789
	Samsung Life Insurance Co. Ltd.		Insurance		232		17,189
	Samsung SDI Co. Ltd.		Electronic Equipment, Instruments & Components		194		36,660
	Samsung SDS Co. Ltd.		IT Services		116		24,016
	Samsung Securities Co. Ltd.		Capital Markets		242		7,099
	Shinhan Financial Group Co. Ltd.		Banks		1,664		61,570
	Shinsegae Co. Ltd.		Multiline Retail		26		7,731
a	SillaJen Inc.		Biotechnology		196		11,103
	SK Holdings Co. Ltd.		Industrial Conglomerates		120		28,597
	SK Hynix Inc.		Semiconductors & Semiconductor Equipment		1,888		123,416
	SK Innovation Co. Ltd.		Oil, Gas & Consumable Fuels		208		32,892
	SK Networks Co. Ltd.		Trading Companies & Distributors		538		2,868
	SK Telecom Co. Ltd.		Wireless Telecommunication Services		86		19,055
	SKC Co. Ltd.		Chemicals		72		2,293
	Ssangyong Cement Industrial Co. Ltd.		Construction Materials		372		2,097
a	ViroMed Co. Ltd.		Biotechnology		48		11,832
	Woori Financial Group Inc.		Banks		2,034		24,639
	Yuhan Corp.		Pharmaceuticals		33		6,977


							2,385,645

	Taiwan 12.6%
a	Acer Inc.		Technology Hardware, Storage & Peripherals		12,000		7,690
	Advantech Co. Ltd.		Technology Hardware, Storage & Peripherals		2,000		16,612
a	ASE Industrial Holding Co. Ltd.		Semiconductors & Semiconductor Equipment		10,500		22,996
	Asia Cement Corp.		Construction Materials		10,000		13,011
	Asustek Computer Inc.		Technology Hardware, Storage & Peripherals		2,000		14,471
	AU Optronics Corp.		Electronic Equipment, Instruments & Components		34,000		12,521
	Capital Securities Corp.		Capital Markets		6,840		2,131
	Catcher Technology Co. Ltd.		Technology Hardware, Storage & Peripherals		2,780		21,377
	Cathay Financial Holding Co. Ltd.		Insurance		28,000		40,836
	Chailease Holding Co. Ltd.		Diversified Financial Services		4,000		16,353
	Chang Hwa Commercial Bank Ltd.		Banks		22,880		13,697
	Cheng Shin Rubber Industry Co. Ltd.		Auto Components		8,000		10,889
	Chicony Electronics Co. Ltd.		Technology Hardware, Storage & Peripherals		2,010		4,676
	China Airlines Ltd.		Airlines		10,000		3,199
	China Development Financial Holding Corp.		Banks		52,000		17,378
	China Life Insurance Co. Ltd.		Insurance		10,600		8,994
	China Motor Corp.		Automobiles		2,000		1,849
	China Steel Corp.		Metals & Mining		46,000		37,761
	Chunghwa Telecom Co. Ltd.		Diversified Telecommunication Services		14,000		49,740
	Compal Electronics Inc.		Technology Hardware, Storage & Peripherals		16,000		9,941
	CTBC Financial Holding Co. Ltd.		Banks		66,000		43,792
	Delta Electronics Inc.		Electronic Equipment, Instruments & Components		8,000		41,271
	E.Sun Financial Holding Co. Ltd.		Banks		38,327		29,534
	Eclat Textile Co. Ltd.		Textiles, Apparel & Luxury Goods		1,000		13,465
	Epistar Corp.		Semiconductors & Semiconductor Equipment		4,000		3,219
	Eternal Materials Co. Ltd.		Chemicals		4,000		3,180
	EVA Airways Corp.		Airlines		8,860		4,341
	Evergreen Marine Corp. Taiwan Ltd.		Marine		8,878		3,442
	Far Eastern International Bank		Banks		8,000		2,907



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STATEMENT OF INVESTMENTS

Franklin FTSE Asia ex Japan ETF(continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Taiwan (continued)
	Far Eastern New Century Corp.		Industrial Conglomerates		14,000	$	13,832
	Far EasTone Telecommunications Co. Ltd.		Wireless Telecommunication Services		6,000		14,464
	Feng Hsin Steel Co. Ltd.		Metals & Mining		2,000		3,919
	Feng Tay Enterprise Co. Ltd.		Textiles, Apparel & Luxury Goods		2,000		14,146
	First Financial Holding Co. Ltd.		Banks		36,380		24,906
	FIT Hon Teng Ltd.		Electronic Equipment, Instruments & Components		4,000		1,936
	Formosa Chemicals & Fibre Corp.		Chemicals		12,000		43,607
	Formosa Petrochemical Corp.		Oil, Gas & Consumable Fuels		4,000		14,990
	Formosa Plastics Corp.		Chemicals		16,000		56,845
	Formosa Taffeta Co. Ltd.		Textiles, Apparel & Luxury Goods		4,000		4,776
	Foxconn Technology Co. Ltd.		Electronic Equipment, Instruments & Components		4,000		7,982
	Fubon Financial Holding Co. Ltd.		Insurance		26,000		38,805
	Giant Manufacturing Co. Ltd.		Leisure Products		2,000		14,276
	Globalwafers Co. Ltd.		Semiconductors & Semiconductor Equipment		1,000		9,831
	Hon Hai Precision Industry Co. Ltd.		Electronic Equipment, Instruments & Components		42,800		102,068
	Hotai Motor Co. Ltd.		Specialty Retail		1,000		12,248
a	HTC Corp.		Technology Hardware, Storage & Peripherals		4,000		5,185
	Hua Nan Financial Holdings Co. Ltd.		Banks		31,440		19,790
	Innolux Corp.		Electronic Equipment, Instruments & Components		32,000		10,383
	Inventec Corp.		Technology Hardware, Storage & Peripherals		12,000		9,130
	Largan Precision Co. Ltd.		Electronic Equipment, Instruments & Components		380		56,716
	Lite-On Technology Corp.		Technology Hardware, Storage & Peripherals		8,000		11,642
	MediaTek Inc.		Semiconductors & Semiconductor Equipment		6,000		54,996
	Mega Financial Holding Co. Ltd.		Banks		40,000		36,404
	Nan Ya Plastics Corp.		Chemicals		20,000		51,200
	Nanya Technology Corp.		Semiconductors & Semiconductor Equipment		4,000		7,969
	Novatek Microelectronics Corp. Ltd.		Semiconductors & Semiconductor Equipment		2,000		12,849
	Oriental Union Chemical Corp.		Chemicals		2,000		1,694
	Pegatron Corp.		Technology Hardware, Storage & Peripherals		8,000		13,835
	Pou Chen Corp.		Textiles, Apparel & Luxury Goods		10,000		12,183
	President Chain Store Corp.		Food & Staples Retailing		2,000		19,695
	Quanta Computer Inc.		Technology Hardware, Storage & Peripherals		10,000		18,754
	Realtek Semiconductor Corp.		Semiconductors & Semiconductor Equipment		2,000		11,810
	Shin Kong Financial Holding Co. Ltd.		Insurance		40,432		11,912
	SinoPac Financial Holdings Co. Ltd.		Banks		38,800		14,351
	Synnex Technology International Corp.		Electronic Equipment, Instruments & Components		6,000		7,203
	Taishin Financial Holding Co. Ltd.		Banks		37,596		17,139
	Taiwan Business Bank		Banks		16,640		6,479
	Taiwan Cement Corp.		Construction Materials		15,400		20,611
	Taiwan Cooperative Financial Holding Co. Ltd.		Banks		33,020		20,892
	Taiwan Fertilizer Co. Ltd.		Chemicals		2,000		2,992
	Taiwan Glass Industry Corp.		Building Products		6,000		2,677
	Taiwan High Speed Rail Corp.		Transportation Infrastructure		8,000		9,344
	Taiwan Mobile Co. Ltd.		Wireless Telecommunication Services		6,000		21,706
	Taiwan Secom Co. Ltd.		Commercial Services & Supplies		2,000		5,620
	Taiwan Semiconductor Manufacturing Co. Ltd.		Semiconductors & Semiconductor Equipment		88,000		700,962
	Teco Electric & Machinery Co. Ltd.		Electrical Equipment		6,000		4,088
	TPK Holding Co. Ltd.		Electronic Equipment, Instruments & Components		2,000		3,777
	Transcend Information Inc.		Technology Hardware, Storage & Peripherals		2,000		4,542
	U-Ming Marine Transport Corp.		Marine		2,000		2,015
	Uni-President Enterprises Corp.		Food Products		16,000		38,831
	Unimicron Technology Corp.		Electronic Equipment, Instruments & Components		4,000		3,842
	United Microelectronics Corp.		Semiconductors & Semiconductor Equipment		42,000		15,876
	Vanguard International Semiconductor Corp.		Semiconductors & Semiconductor Equipment		4,000		8,631
	Walsin Lihwa Corp.		Electrical Equipment		12,000		6,872
	Walsin Technology Corp.		Electronic Equipment, Instruments & Components		2,000		12,978



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FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Asia ex Japan ETF(continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Taiwan (continued)
	Wan Hai Lines Ltd.		Marine		4,000	$	2,083
	Wistron Corp.		Technology Hardware, Storage & Peripherals		10,293		7,915
	Yageo Corp.		Electronic Equipment, Instruments & Components		1,000		10,480
	Yuanta Financial Holding Co. Ltd.		Capital Markets		42,000		23,916
	Yulon Motor Co. Ltd.		Automobiles		4,000		2,524


							2,194,397

	Thailand 3.6%
	Advanced Info Service PCL		Wireless Telecommunication Services		4,000		23,192
	Airports of Thailand Public Co. Ltd., NVDR		Transportation Infrastructure		15,600		33,427
	Bangkok Bank PCL, fgn.		Banks		1,800		12,251
	Bangkok Dusit Medical Services PCL		Health Care Providers & Services		32,400		25,320
	Bangkok Expressway and Metro PCL, NVDR		Transportation Infrastructure		30,600		9,739
	Bangkok Life Assurance PCL, NVDR		Insurance		2,000		1,733
	Banpu PCL, NVDR		Oil, Gas & Consumable Fuels		16,000		8,168
	Berli Jucker PCL, NVDR		Food & Staples Retailing		3,600		5,615
	BTS Group Holdings PCL, NVDR		Road & Rail		29,200		10,121
	Bumrungrad Hospital PCL		Health Care Providers & Services		1,200		6,787
	Central Pattana PCL		Real Estate Management & Development		9,200		21,235
	Charoen Pokphand Foods PCL, NVDR		Food Products		12,800		10,285
	CP ALL PCL		Food & Staples Retailing		19,200		45,225
	Delta Electronics Thailand PCL		Electronic Equipment, Instruments & Components		1,800		4,027
	Digital Telecommunications Infrastructure Fund, fgn.		Diversified Financial Services		16,000		7,865
	Electricity Generating PCL		Independent Power and Renewable Electricity Producers		1,200		11,041
	Energy Absolute PCL, NVDR		Oil, Gas & Consumable Fuels		6,000		9,075
	Global Power Synergy PCL, NVDR		Independent Power and Renewable Electricity Producers		1,400		2,504
	Glow Energy PCL		Independent Power and Renewable Electricity Producers		1,800		5,162
	Gulf Energy Development PCL, NVDR		Independent Power and Renewable Electricity Producers		2,800		8,426
	Home Product Center PCL, NVDR		Specialty Retail		21,600		10,414
	Indorama Ventures PCL, NVDR		Chemicals		6,400		10,033
	Intouch Holdings PCL		Wireless Telecommunication Services		7,200		13,046
	IRPC PCL		Oil, Gas & Consumable Fuels		39,200		7,103
	Kasikornbank PCL, fgn.		Banks		4,200		24,881
	Kasikornbank PCL, NVDR		Banks		3,000		17,725
	Krung Thai Bank PCL		Banks		23,800		14,399
	Land and Houses PCL, NVDR		Real Estate Management & Development		24,200		8,159
	Minor International PCL		Hotels, Restaurants & Leisure		13,400		16,468
	Muangthai Capital PCL, NVDR		Consumer Finance		2,400		3,328
	PTT Exploration and Production PCL, NVDR		Oil, Gas & Consumable Fuels		5,000		19,773
	PTT Global Chemical PCL, NVDR		Chemicals		7,800		16,529
	PTT PCL		Oil, Gas & Consumable Fuels		52,400		79,256
	Ratchaburi Electricity Generating Holding PCL, NVDR		Independent Power and Renewable Electricity Producers		3,200		5,899
	Siam City Cement PCL, NVDR		Construction Materials		200		1,418
	Siam Commercial Bank PCL		Banks		8,800		36,603
	Siam Makro Public Company Ltd., NVDR		Food & Staples Retailing		1,200		1,333
a	Thai Airways International PCL, NVDR		Airlines		3,600		1,395
	Thai Oil PCL		Oil, Gas & Consumable Fuels		4,000		8,760
	Thai Union Frozen Products PCL		Food Products		10,800		6,568
	The Siam Cement PCL		Construction Materials		3,000		45,565
	TMB Bank PCL		Banks		82,200		5,284
	Total Access Communication PCL		Wireless Telecommunication Services		2,600		4,342



franklintempleton.com	Annual Report	157

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Asia ex Japan ETF(continued)

Industry

Shares

Value

Common Stocks and Other
Equity Interests (continued)

Thailand (continued)

True Corporation PCL, NVDR

Diversified Telecommunication Services

40,800

6,120

625,599

Total Common Stocks and Other Equity Interests (Cost $18,469,331)

17,305,233

Preferred Stocks 0.7%

South Korea 0.7%

Amorepacific Corp., 1.107%, pfd.

Personal Products

3,771

CJ CheilJedang Corp., 2.620%, pfd.

Food Products

955

a,d

CJ Corp., pfd.

Industrial Conglomerates

226

Hyundai Motor Co., 5.374%, pfd., 2

Automobiles

128

8,604

Hyundai Motor Co., 5.853%, pfd.

Automobiles

4,511

LG Chem Ltd., 2.909%, pfd.

Chemicals

5,497

LG Electronics Inc., 2.707%, pfd.

Household Durables

1,718

LG Household & Health Care Ltd., 1.112%, pfd.

Personal Products

5,892

Mirae Asset Daewoo Co. Ltd., 5.946%, pfd.

Capital Markets

202

658

Samsung Electronics Co. Ltd., 3.909%, pfd.

Technology Hardware, Storage & Peripherals

2,722

86,929

Samsung Fire & Marine Insurance Co. Ltd., 5.640%, pfd.

Insurance

1,438

Total Preferred Stocks (Cost $142,167)

120,199

Warrants (Cost $—) 0.0%

Thailand 0.0%

BTS Group Holdings PCL, NVDR

Road & Rail

—

Total Investments (Cost $18,611,498) 99.6%

17,425,432

Other Assets, less Liabilities 0.4%

62,639

Net Assets 100.0%

17,488,071

^†Rounds to less than 0.1% of net assets.

^aNon-income producing.

^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. These securities have been deemed liquid under guidelines approved by the Fund’s Board of Trustees. At March 31, 2019, the aggregate value of these securities was $13,050, representing 0.1% of net assets.

^dFair valued using significant unobservable inputs. See Note 8 regarding fair value measurements.

^eVariable rate security. The rate shown represents the yield at period end.



158	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Asia ex Japan ETF(continued)

At March 31, 2019, 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 Emerging Markets Index

Long

52,870

6/21/19

519

*As of period end.

See Abbreviations on page 322.

See Note 7 regarding other derivative information.



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FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin FTSE Australia ETF



	Year Ended March 31,

	2019			2018^a

Per share operating performance (for a share outstanding throughout the year)

Net asset value, beginning of year	$	24.67		$	25.23


Income from investment operations^b:

Net investment income^c		1.29			0.52

Net realized and unrealized gains (losses)		(0.37	)		(1.03	)


Total from investment operations		0.92			(0.51	)


Less distributions from net investment income		(0.96	)		(0.05	)


Net asset value, end of year	$	24.63		$	24.67


Total return^d		4.00%			(2.05)%

Ratios to average net assets^e

Total expenses		0.09%			0.09%

Net investment income		5.30%			4.96%

Supplemental data

Net assets, end of year (000’s)		$7,389			$2,467

Portfolio turnover rate^f		4.56%			1.63%

^aFor the period November 2, 2017 (commencement of operations) to March 31, 2018.

^cBased on average daily shares outstanding.

^eRatios are annualized for periods less than one year.

^fPortfolio turnover rate excludes the value of portfolio securities received or delivered as a result of processing capital share transactions in Creation Units, if any.



160	Annual Report \| The accompanying notes are an integral part of these financial statements.	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2019

Franklin FTSE Australia ETF



		Industry			Shares		Value
	Common Stocks 99.5%
	Australia 99.0%
	Adelaide Brighton Ltd.		Construction Materials			3,342	$	10,683
	AGL Energy Ltd.		Multi-Utilities			4,764		73,672
	ALS Ltd.		Professional Services			3,552		19,151
	Alumina Ltd.		Metals & Mining			18,222		31,325
	Amcor Ltd.		Containers & Packaging			8,412		91,962
	AMP Ltd.		Diversified Financial Services			21,216		31,649
	Ansell Ltd.		Health Care Equipment & Supplies			978		17,660
	Apa Group		Gas Utilities			8,574		60,784
	Aristocrat Leisure Ltd.		Hotels, Restaurants & Leisure			4,638		80,751
	Atlas Arteria Ltd.		Transportation Infrastructure			4,968		25,480
	Aurizon Holdings Ltd.		Road & Rail			13,896		44,913
	AusNet Services		Electric Utilities			13,086		16,500
	Australia & New Zealand Banking Group Ltd.		Banks			20,832		385,192
	Australian Stock Exchange Ltd.		Capital Markets			1,410		69,951
	Bank of Queensland Ltd.		Banks			2,922		18,888
	Bendigo and Adelaide Bank Ltd.		Banks			3,516		24,177
	BHP Group Ltd.		Metals & Mining			21,462		586,800
	Bluescope Steel Ltd.		Metals & Mining			3,900		38,647
	Boral Ltd.		Construction Materials			8,508		27,740
	Brambles Ltd.		Commercial Services & Supplies			11,574		96,686
	Caltex Australia Ltd.		Oil, Gas & Consumable Fuels			1,902		35,412
	Challenger Ltd.		Diversified Financial Services			4,152		24,421
	Cimic Group Ltd.		Construction & Engineering			708		24,271
	Coca-Cola Amatil Ltd.		Beverages			3,726		22,895
	Cochlear Ltd.		Health Care Equipment & Supplies			408		50,221
a	Coles Group Ltd.		Food & Staples Retailing			8,232		69,294
	Commonwealth Bank of Australia		Banks			12,822		643,397
	Computershare Ltd.		IT Services			3,516		42,659
	Crown Resorts Ltd.		Hotels, Restaurants & Leisure			2,556		20,898
	CSL Ltd.		Biotechnology			3,288		455,308
	CSR Ltd.		Construction Materials			3,702		8,731
	Dexus		Equity Real Estate Investment Trusts (REITs	)		7,404		67,005
	Domain Holdings Australia Ltd.		Interactive Media & Services			1,680		3,043
	Domino’s Pizza Enterprises Ltd.		Hotels, Restaurants & Leisure			438		13,509
	Downer EDI Ltd.		Commercial Services & Supplies			4,326		23,600
	DuluxGroup Ltd.		Chemicals			2,850		14,981
	Evolution Mining Ltd.		Metals & Mining			7,644		19,874
	Flight Centre Travel Group Ltd.		Hotels, Restaurants & Leisure			408		12,187
	Fortescue Metals Group Ltd.		Metals & Mining			11,580		58,486
	Goodman Group		Equity Real Estate Investment Trusts (REITs	)		12,840		121,764
	GPT Group		Equity Real Estate Investment Trusts (REITs	)		13,140		57,964
	Harvey Norman Holdings Ltd.		Multiline Retail			4,100		11,708
	Healthscope Ltd.		Health Care Providers & Services			12,630		21,801
	Iluka Resources Ltd.		Metals & Mining			3,042		19,448
	Incitec Pivot Ltd.		Chemicals			11,844		26,250
	Insurance Australia Group Ltd.		Insurance			16,806		91,685
	IOOF Holdings Ltd.		Capital Markets			2,508		10,903
	James Hardie Industries PLC, CDI		Construction Materials			3,210		41,363
	LendLease Group		Real Estate Management & Development			4,128		36,302
	Macquarie Group Ltd.		Capital Markets			2,250		206,850
	Magellan Financial Group Ltd.		Capital Markets			966		24,998
	Medibank Private Ltd.		Insurance			20,100		39,407
	Metcash Ltd.		Food & Staples Retailing			6,624		12,469
	Mirvac Group		Equity Real Estate Investment Trusts (REITs	)		26,982		52,708
	National Australia Bank Ltd.		Banks			20,220		362,960
	Newcrest Mining Ltd.		Metals & Mining			5,586		101,224
	Northern Star Resources Ltd.		Metals & Mining			4,500		28,609



franklintempleton.com	Annual Report	161

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Australia ETF(continued)



		Industry			Shares		Value
	Common Stocks (continued)
	Australia (continued)
	Nufarm Ltd.		Chemicals			2,142	$	7,167
	Oil Search Ltd.		Oil, Gas & Consumable Fuels			9,642		53,766
	Orica Ltd.		Chemicals			2,742		34,339
	Origin Energy Ltd.		Oil, Gas & Consumable Fuels			12,756		65,241
	Orora Ltd.		Containers & Packaging			8,808		18,708
	OZ Minerals Ltd.		Metals & Mining			2,292		17,258
	Perpetual Ltd.		Capital Markets			318		8,737
	Platinum Asset Management Ltd.		Capital Markets			1,716		5,595
	Qantas Airways Ltd.		Airlines			4,668		18,768
	QBE Insurance Group Ltd.		Insurance			9,648		84,366
	Qube Logistics Holdings Ltd.		Transportation Infrastructure			9,000		17,901
	Ramsay Health Care Ltd.		Health Care Providers & Services			930		42,511
	REA Group Ltd.		Interactive Media & Services			366		19,421
	Rio Tinto Ltd.		Metals & Mining			2,700		187,786
	Santos Ltd.		Oil, Gas & Consumable Fuels			12,858		62,383
	Scentre Group		Equity Real Estate Investment Trusts (REITs	)		37,176		108,537
	Seek Ltd.		Professional Services			2,520		31,398
	Seven Group Holdings Ltd.		Trading Companies & Distributors			960		12,002
	Shopping Centres Australasia Property Group		Equity Real Estate Investment Trusts (REITs	)		6,828		12,805
	Sonic Healthcare Ltd.		Health Care Providers & Services			3,312		57,782
	South32 Ltd.		Metals & Mining			37,020		98,088
	Stockland		Equity Real Estate Investment Trusts (REITs	)		17,712		48,440
	Suncorp-Metway Ltd.		Insurance			9,432		92,326
	Sydney Airport		Transportation Infrastructure			8,040		42,434
	Tabcorp Holdings Ltd.		Hotels, Restaurants & Leisure			13,710		44,994
	Telstra Corp. Ltd.		Diversified Telecommunication Services			30,312		71,487
	The Star Entertainment Group Ltd.		Hotels, Restaurants & Leisure			6,036		17,922
	TPG Telecom Ltd.		Diversified Telecommunication Services			2,628		12,974
	Transurban Group		Transportation Infrastructure			19,458		182,450
	Treasury Wine Estates Ltd.		Beverages			5,232		55,488
	Vicinity Centres		Equity Real Estate Investment Trusts (REITs	)		23,340		43,107
a	Vocus Group Ltd.		Diversified Telecommunication Services			4,344		11,386
	Washington H. Soul Pattinson & Co. Ltd.		Oil, Gas & Consumable Fuels			690		12,896
	Wesfarmers Ltd.		Multiline Retail			8,268		203,505
	Westpac Banking Corp.		Banks			24,942		459,239
	Whitehaven Coal Ltd.		Oil, Gas & Consumable Fuels			4,980		14,327
	Wisetech Global Ltd.		Software			564		9,263
	Woodside Petroleum Ltd.		Oil, Gas & Consumable Fuels			6,792		167,031
	Woolworths Group Ltd.		Food & Staples Retailing			9,582		206,920
	WorleyParsons Ltd.		Energy Equipment & Services			2,490		25,046


								7,317,010

	New Zealand 0.3%
a	Xero Ltd.		Software			672		23,223

	United States 0.2%
	Sims Metal Management Ltd.		Metals & Mining			1,212		9,221

	Total Investments (Cost $7,800,688) 99.5%							7,349,454
	Other Assets, less Liabilities 0.5%							39,661

	Net Assets 100.0%						$	7,389,115

See Abbreviations on page 322.

^aNon-income producing.



162	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



	Year Ended March 31,

	2019			2018^a

Per share operating performance (for a share outstanding throughout the year)

Net asset value, beginning of year	$	27.87		$	24.37


Income from investment operations^b:

Net investment income^c		0.80			0.50

Net realized and unrealized gains (losses)		(2.07	)		3.11


Total from investment operations		(1.27	)		3.61


Less distributions from net investment income		(0.88	)		(0.11	)


Net asset value, end of year	$	25.72		$	27.87


Total return^d		(3.98)%			14.86%

Ratios to average net assets^e

Total expenses		0.19%			0.19%

Net investment income		3.37%			4.53%

Supplemental data

Net assets, end of year (000’s)		$20,579			$44,593

Portfolio turnover rate^f		39.76%			4.79%

^aFor the period November 3, 2017 (commencement of operations) to March 31, 2018.

^cBased on average daily shares outstanding.

^eRatios are annualized for periods less than one year, except fornon-recurring expenses, if any.

^fPortfolio turnover rate excludes the value of portfolio securities received or delivered as a result of processing capital share transactions in Creation Units, if any.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	163

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2019

Franklin FTSE Brazil ETF



		Industry		Shares		Value
	Common Stocks 62.6%
	Brazil 62.6%
	Ambev SA		Beverages		215,200	$	930,651
	Atacadao Distribuicao Comercio e Industria Ltd.		Food & Staples Retailing		16,000		82,596
a	B2W Cia Digital		Internet & Direct Marketing Retail		8,000		86,790
	B3 SA – Brasil Bolsa Balcao		Capital Markets		97,600		805,538
	Banco Bradesco SA		Banks		42,400		412,375
	Banco BTG Pactual SA		Capital Markets		9,600		89,298
	Banco do Brasil SA		Banks		51,200		640,970
	Banco Santander Brasil SA		Banks		19,200		216,929
	BB Seguridade Participacoes SA		Insurance		33,600		228,967
	BR Malls Paricipacoes SA		Real Estate Management & Development		38,400		124,030
a	BRF SA		Food Products		28,000		162,962
	CCR SA		Transportation Infrastructure		55,200		166,521
a	Centrais Eletricas Brasileiras SA		Electric Utilities		16,000		150,844
a	Cia Siderurgica Nacional SA		Metals & Mining		29,600		123,596
	Cielo SA		IT Services		55,200		134,607
	Companhia de Saneamento Basico do Estado de Sao Paulo		Water Utilities		16,800		181,309
	Companhia Energetica de Minas Gerais		Electric Utilities		4,800		20,598
	Companhia Paranaense de Energia-Copel		Electric Utilities		800		6,599
	Cosan SA		Oil, Gas & Consumable Fuels		8,000		87,674
	CVC Brasil Operadora e Agencia de Viagens SA		Hotels, Restaurants & Leisure		5,600		78,783
	EDP-Energias do Brasil SA		Electric Utilities		14,400		62,829
	Embraer SA		Aerospace & Defense		36,000		170,671
	Energisa SA		Electric Utilities		9,600		100,028
	Engie Brasil SA		Independent Power and Renewable Electricity Producers		9,000		98,772
	Equatorial Energia SA		Electric Utilities		8,400		172,675
	Estacio Participacoes SA		Diversified Consumer Services		12,800		87,489
	Fleury SA		Health Care Providers & Services		10,400		54,516
	Grendene SA		Textiles, Apparel & Luxury Goods		13,600		29,285
	Guararapes Confeccoes SA		Textiles, Apparel & Luxury Goods		376		13,913
b	Hapvida Participacoes e Investimentos SA, Reg S		Health Care Providers & Services		6,400		50,586
	Hypera SA		Pharmaceuticals		20,000		133,104
	IRB Brasil Resseguros SA		Insurance		9,600		225,094
	JBS SA		Food Products		48,800		199,629
	Klabin SA		Containers & Packaging		32,000		140,031
	Kroton Educacional SA		Diversified Consumer Services		73,600		200,468
	Localiza Rent a Car SA		Road & Rail		27,200		231,064
	Lojas Americanas SA		Multiline Retail		12,000		40,764
	Lojas Renner SA		Multiline Retail		35,200		396,166
	M. Dias Branco SA		Food Products		4,000		44,659
	Magazine Luiza SA		Multiline Retail		3,720		165,224
	Multiplan Empreendimentos Imobiliarios SA		Real Estate Management & Development		13,600		81,739
	Natura Cosmeticos SA		Personal Products		8,800		102,637
	Notre Dame Intermedica Participacoes SA		Health Care Providers & Services		16,000		134,851
	Odontoprev SA		Health Care Providers & Services		12,800		53,940
	Petrobras Distribuidora SA		Specialty Retail		16,800		99,936
	Petroleo Brasileiro SA		Oil, Gas & Consumable Fuels		146,400		1,171,817
	Porto Seguro SA		Insurance		4,800		66,394
	Raia Drogasil SA		Food & Staples Retailing		11,256		188,868
a	Rumo SA		Road & Rail		55,200		271,624
	Sao Martinho SA		Food Products		8,000		37,701



164	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Brazil ETF(continued)



		Industry		Shares		Value
	Common Stocks (continued)
	Brazil (continued)
	Sul America SA		Insurance		11,200	$	85,762
	Suzano Papel e Celulose SA		Paper & Forest Products		28,852		345,111
	Tim Participacoes SA		Wireless Telecommunication Services		40,800		123,605
	Transmissora Alianca de Energia Eletrica SA		Electric Utilities		11,200		71,372
	Ultrapar Participacoes SA		Oil, Gas & Consumable Fuels		21,152		255,452
	Vale SA		Metals & Mining		172,000		2,250,934
	Via Varejo SA		Specialty Retail		18,400		19,952
	Weg SA		Machinery		36,800		170,208

	Total Common Stocks (Cost $12,475,878)						12,880,507

	Preferred Stocks 36.8%
	Brazil 36.8%
c	Alpargatas SA, 0.858%, pfd.		Textiles, Apparel & Luxury Goods		9,000		35,568
a	Azul SA, pfd.		Airlines		9,600		94,404
c	Banco Bradesco SA, 2.673%, pfd.		Banks		164,800		1,818,360
c	Banco do Estado do Rio Grande do Sul SA, 8.317%, pfd., B		Banks		10,400		64,644
c	Bradespar SA, 6.047%, pfd.		Metals & Mining		11,200		91,806
c	Braskem SA, 3.705%, pfd., A		Chemicals		9,600		125,560
a	Centrais Eletricas Brasileiras SA, pfd., B		Electric Utilities		11,200		108,958
c	Cia de Transmissao de Energia Eletrica Paulista, 16.291%, pfd.		Electric Utilities		2,400		47,572
c	Companhia Brasileira de Distribuicao, 2.314%, pfd., A		Food & Staples Retailing		7,764		182,464
c	Companhia de Gas de Sao Paulo, 5.957%, pfd., A		Gas Utilities		800		16,836
c	Companhia Energetica de Minas Gerais, 4.633%, pfd.		Electric Utilities		45,600		162,870
c	Companhia Paranaense de Energia, 3.195%, pfd., B		Electric Utilities		4,800		44,896
c	Gerdau SA, 2.972%, pfd.		Metals & Mining		51,200		199,185
c	Itau Unibanco Holding SA, 4.179%, pfd.		Banks		231,200		2,045,434
c	Itausa-Investimentos Itau SA, 3.414%, pfd.		Banks		216,800		667,385
c	Lojas Americanas SA, 0.447%, pfd.		Multiline Retail		36,800		158,577
c	Petroleo Brasileiro SA, 3.207%, pfd.		Oil, Gas & Consumable Fuels		195,200		1,407,434
c	Telefonica Brasil SA, 9.571%, pfd.		Diversified Telecommunication Services		20,800		253,874
c	Usinas Siderurgicas de Minas Gerais SA, 1.265%, pfd., A		Metals & Mining		20,000		51,597

	Total Preferred Stocks (Cost $6,955,065)						7,577,424

	Total Investments (Cost $19,430,943) 99.4%						20,457,931
	Other Assets, less Liabilities 0.6%						120,894

	Net Assets 100.0%					$	20,578,825

^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. This security has been deemed liquid under guidelines approved by the Fund’s Board of Trustees. At March 31, 2019, the value of this security was $50,586, representing 0.2% of net assets.

^cVariable rate security. The rate shown represents the yield at period end.

At March 31, 2019, 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 Bovespa Index

Long

��

107,943

4/17/19

(2,315

)

*As of period end.

See Note 7 regarding other derivative information.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	165

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin FTSE Canada ETF



	Year Ended March 31,

	2019			2018^a

Per share operating performance (for a share outstanding throughout the year)

Net asset value, beginning of year	$	23.77		$	24.80


Income from investment operations^b:

Net investment income^c		0.67			0.24

Net realized and unrealized gains (losses)		0.33			(1.25	)


Total from investment operations		1.00			(1.01	)


Less distributions from net investment income		(0.64	)		(0.02	)


Net asset value, end of year	$	24.13		$	23.77


Total return^d		4.48%			(4.06)%

Ratios to average net assets^e

Total expenses		0.09%			0.09%

Net investment income		2.79%			2.39%

Supplemental data

Net assets, end of year (000’s)		$4,827			$2,377

Portfolio turnover rate^f		6.95%			1.26%

^aFor the period November 2, 2017 (commencement of operations) to March 31, 2018.

^cBased on average daily shares outstanding.

^eRatios are annualized for periods less than one year.

^fPortfolio turnover rate excludes the value of portfolio securities received or delivered as a result of processing capital share transactions in Creation Units, if any.



166	Annual Report \| The accompanying notes are an integral part of these financial statements.	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2019

Franklin FTSE Canada ETF



		Industry			Shares		Value
	Common Stocks 99.7%
	Canada 97.2%
	Agnico Eagle Mines Ltd.		Metals & Mining			892	$	38,793
	Alimentation Couche-Tard Inc., B		Food & Staples Retailing			1,632		96,165
	Bank of Montreal		Banks			2,444		182,923
	Bank of Nova Scotia		Banks			4,720		251,342
	Barrick Gold Corp.		Metals & Mining			6,656		91,274
	BCE Incs.		Diversified Telecommunication Services			1,148		50,992
	Brookfield Asset Management Inc., A		Capital Markets			3,236		150,809
	Canadian Imperial Bank of Commerce		Banks			1,700		134,376
	Canadian National Railway Co.		Road & Rail			2,776		248,582
	Canadian Natural Resources Ltd.		Oil, Gas & Consumable Fuels			4,560		125,234
	Canadian Pacific Railway Ltd.		Road & Rail			540		111,294
	Canadian Tire Corp. Ltd., A		Multiline Retail			224		24,143
	Canadian Utilities Ltd., A		Multi-Utilities			460		12,561
	Cenovus Energy Inc.		Oil, Gas & Consumable Fuels			3,916		34,003
a	CGI Inc., A		IT Services			932		64,091
	Constellation Software Inc.		Software			76		64,426
	Dollarama Inc.		Multiline Retail			1,208		32,236
	Enbridge Inc.		Oil, Gas & Consumable Fuels			7,640		276,789
	Encana Corp.		Oil, Gas & Consumable Fuels			5,660		41,011
	Fairfax Financial Holdings Ltd.		Insurance			104		48,187
	Fortis Inc.		Electric Utilities			1,620		59,891
	Franco-Nevada Corp.		Metals & Mining			700		52,497
	George Weston Ltd.		Food & Staples Retailing			272		19,564
	Goldcorp Inc.		Metals & Mining			3,300		37,769
	Great-West Lifeco Inc.		Insurance			1,060		25,676
	Husky Energy Inc.		Oil, Gas & Consumable Fuels			1,176		11,664
	Hydro One Ltd.		Electric Utilities			1,200		18,647
	IGM Financial Inc.		Capital Markets			316		8,132
	Imperial Oil Ltd.		Oil, Gas & Consumable Fuels			908		24,794
	Intact Financial Corp.		Insurance			532		45,031
	Inter Pipeline Ltd.		Oil, Gas & Consumable Fuels			1,516		25,090
	Loblaw Cos. Ltd.		Food & Staples Retailing			716		35,330
	Magna International Inc.		Auto Components			1,176		57,279
	Manulife Financial Corp.		Insurance			7,596		128,500
	Metro Inc., A		Food & Staples Retailing			916		33,734
	National Bank of Canada		Banks			1,288		58,145
	Nutrien Ltd.		Chemicals			2,344		123,661
	Pembina Pipeline Corp.		Oil, Gas & Consumable Fuels			1,920		70,551
	Power Corp. of Canada		Insurance			1,472		34,333
	Power Financial Corp.		Insurance			944		22,061
	Restaurant Brands International Inc.		Hotels, Restaurants & Leisure			908		59,090
	RioCan REIT		Equity Real Estate Investment Trusts (REITs	)		1,172		23,222
	Rogers Communications Inc., B		Wireless Telecommunication Services			1,372		73,809
	Royal Bank of Canada		Banks			5,528		417,181
	Saputo Inc.		Food Products			836		28,504
	Shaw Communications Inc.		Media			1,688		35,139
a	Shopify Inc., A		IT Services			372		76,814
	SNC-Lavalin Group Inc., A		Construction & Engineering			672		17,057
	Sun Life Financial Inc.		Insurance			2,324		89,310
	Suncor Energy Inc.		Oil, Gas & Consumable Fuels			6,144		199,182
	Teck Resources Ltd., B		Metals & Mining			1,928		44,623
	TELUS Corp.		Diversified Telecommunication Services			760		28,137
	The Toronto-Dominion Bank		Banks			7,064		383,458
	Thomson Reuters Corp.		Professional Services			764		45,218
	TransCanada Corp.		Oil, Gas & Consumable Fuels			3,512		157,783
	Wheaton Precious Metals Corp.		Metals & Mining			1,696		40,383


								4,690,490



franklintempleton.com	Annual Report	167

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Canada ETF(continued)



		Industry		Shares		Value
	Common Stocks (continued)
	United States 2.5%
a	Bausch Health Cos. Inc.		Pharmaceuticals		1,312	$	32,379
	IESI-BFC Ltd.		Commercial Services & Supplies		1,004		88,958


							121,337

	Total Investments (Cost $4,886,423) 99.7%						4,811,827
	Other Assets, less Liabilities 0.3%						15,069

	Net Assets 100.0%					$	4,826,896

See Abbreviations on page 322.

^aNon-income producing.



168	Annual Report \| The accompanying notes are an integral part of these financial statements.	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin FTSE China ETF



	Year Ended March 31,

	2019			2018^a

Per share operating performance (for a share outstanding throughout the year)

Net asset value, beginning of year	$	25.99		$	24.95


Income from investment operations^b:

Net investment income (loss)^c		0.40			(0.01	)

Net realized and unrealized gains (losses)		(1.99	)		1.05


Total from investment operations		(1.59	)		1.04


Less distributions from net investment income		(0.39	)		(—	)^d


Net asset value, end of year	$	24.01		$	25.99


Total return^e		(5.94)%			4.17%

Ratios to average net assets^f

Total expenses		0.19%			0.19%

Net investment income (loss)		1.70%			(0.12)%

Supplemental data

Net assets, end of year (000’s)		$43,220			$31,191

Portfolio turnover rate^g		7.21%			2.71%

^aFor the period November 2, 2017 (commencement of operations) to March 31, 2018.

^cBased on average daily shares outstanding.

^dAmount rounds to less than $0.01 per share.

^eTotal return is not annualized for periods of 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 excludes the value of portfolio securities received or delivered as a result of processing capital share transactions in Creation Units, if any.



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FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2019

Franklin FTSE China ETF



		Industry		Shares		Value
	Common Stocks and Other Equity Interests 99.9%
	China 98.5%
	3SBio Inc.		Biotechnology		31,500	$	61,957
a	51job Inc., ADR		Professional Services		612		47,663
a	58.com Inc., ADR		Interactive Media & Services		2,592		170,243
	Agile Group Holdings Ltd.		Real Estate Management & Development		36,000		58,242
	Agricultural Bank of China Ltd., H		Banks		828,000		381,832
	Air China Ltd., H		Airlines		54,000		66,451
a	Alibaba Group Holding Ltd., ADR		Internet & Direct Marketing Retail		32,013		5,840,772
a	Alibaba Health Information Technology Ltd.		Health Care Technology		90,000		103,988
a	Aluminum Corp. of China Ltd., H		Metals & Mining		108,000		39,761
	Angang Steel Co. Ltd., H		Metals & Mining		36,000		26,324
	Anhui Conch Cement Co. Ltd., H		Construction Materials		31,500		192,412
	Anhui Expressway Co. Ltd., H		Transportation Infrastructure		18,000		11,855
	Anhui Gujing Distillery Co. Ltd., B		Beverages		3,600		27,810
	Anta Sports Products Ltd.		Textiles, Apparel & Luxury Goods		31,000		210,880
a	Autohome Inc., ADR		Interactive Media & Services		1,485		156,103
	AviChina Industry & Technology Co. Ltd., H		Aerospace & Defense		63,000		40,208
	BAIC Motor Corp. Ltd., H		Automobiles		40,500		26,467
a	Baidu Inc., ADR		Interactive Media & Services		7,353		1,212,142
	Bank of China Ltd., H		Banks		2,043,000		926,513
	Bank of Communications Co. Ltd., H		Banks		207,000		169,556
	BBMG Corp., H		Construction Materials		63,000		23,114
a	BeiGene Ltd., ADR		Biotechnology		882		116,424
	Beijing Capital International Airport Co. Ltd.		Transportation Infrastructure		44,000		41,758
	Beijing Enterprises Holdings Ltd.		Gas Utilities		13,500		76,529
a	Beijing Enterprises Water Group Ltd.		Water Utilities		108,000		66,727
	Beijing Jingneng Clean Energy Co. Ltd., H		Independent Power and Renewable Electricity Producers		36,000		7,705
	Beijing North Star Co. Ltd., H		Real Estate Management & Development		18,000		6,099
	Bengang Steel Plates Co. Ltd., B		Metals & Mining		10,800		3,302
	BOE Technology Group Co. Ltd.		Electronic Equipment, Instruments & Components		25,200		9,695
	Brilliance China Automotive Holdings Ltd.		Automobiles		72,000		71,358
	BYD Co. Ltd., H		Automobiles		18,000		108,459
	BYD Electronic International Co. Ltd.		Communications Equipment		22,500		29,007
a	CAR Inc.		Road & Rail		18,000		15,524
	Central China Securities Co. Ltd., H		Capital Markets		27,000		8,255
	CGN Power Co. Ltd., H		Independent Power and Renewable Electricity Producers		297,000		82,858
	China Agri-Industries Holdings Ltd.		Food Products		54,000		18,505
	China Bluechemical Ltd.		Chemicals		54,000		17,542
	China Cinda Asset Management Co. Ltd., H		Capital Markets		252,000		69,983
	China CITIC Bank Corp. Ltd., H		Banks		225,000		143,313
	China Coal Energy Co. Ltd., H		Oil, Gas & Consumable Fuels		54,000		22,357
	China Communications Construction Co. Ltd., H		Construction & Engineering		117,000		121,025
	China Communications Services Corp. Ltd.		Diversified Telecommunication Services		72,000		64,204
	China Conch Venture Holdings Ltd.		Machinery		45,000		161,084
	China Construction Bank Corp., H		Banks		2,376,000		2,037,017
	China Dongxiang Group Co. Ltd.		Textiles, Apparel & Luxury Goods		90,000		13,070
	China Eastern Airlines Corp. Ltd., H		Airlines		36,000		25,544
	China Everbright Bank Co. Ltd., H		Banks		81,000		38,282
	China Everbright International Ltd.		Commercial Services & Supplies		99,000		100,640
	China Everbright Ltd.		Capital Markets		18,000		35,679



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STATEMENT OF INVESTMENTS

Franklin FTSE China ETF(continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests(continued)
	China (continued)
	China Evergrande Group		Real Estate Management & Development		54,000	$	179,543
	China Foods Ltd.		Food Products		18,000		7,108
	China Galaxy Securities Co. Ltd., H		Capital Markets		99,000		65,076
	China Hongqiao Group Ltd.		Metals & Mining		58,500		44,043
	China Huarong Asset Management Co. Ltd., H		Capital Markets		261,000		55,525
	China International Capital Corp. Ltd., H		Capital Markets		25,200		58,362
	China International Marine Containers (Group) Co. Ltd.		Machinery		11,700		14,964
	China Jinmao Holdings Group Ltd.		Real Estate Management & Development		144,000		93,922
	China Life Insurance Co. Ltd., H		Insurance		198,000		532,207
a	China Literature Ltd.		Media		5,400		25,280
	China Lodging Group Ltd., ADR		Hotels, Restaurants & Leisure		2,763		116,433
	China Longyuan Power Group Corp.		Independent Power and Renewable Electricity Producers		90,000		62,599
	China Machinery Engineering Corp., H		Construction & Engineering		27,000		13,758
	China Medical System Holdings Ltd.		Pharmaceuticals		27,000		26,175
	China Merchants Bank Co. Ltd., H		Banks		99,000		481,130
	China Merchants Port Holdings Co. Ltd.		Transportation Infrastructure		36,000		76,678
	China Merchants Securities Co. Ltd.		Capital Markets		25,200		35,698
	China Minsheng Banking Corp. Ltd., H		Banks		171,000		124,166
	China Mobile Ltd.		Wireless Telecommunication Services		139,500		1,421,665
	China Molybdenum Co. Ltd., H		Metals & Mining		108,000		45,126
	China National Building Material Co. Ltd., H		Construction Materials		108,000		85,162
	China Oilfield Services Ltd., H		Energy Equipment & Services		54,000		58,334
	China Overseas Land & Investment Ltd.		Real Estate Management & Development		108,000		409,990
	China Pacific Insurance Group Co. Ltd., H		Insurance		68,400		268,374
	China Petroleum & Chemical Corp., H		Oil, Gas & Consumable Fuels		666,000		525,168
	China Power International Development Ltd.		Independent Power and Renewable Electricity Producers		117,000		29,958
	China Railway Construction Corp. Ltd., H		Construction & Engineering		45,000		58,930
	China Railway Group Ltd., H		Construction & Engineering		99,000		90,299
b	China Railway Signal & Communication Corp. Ltd., H, Reg S		Electronic Equipment, Instruments & Components		45,000		35,599
	China Reinsurance Group Corp., H		Insurance		180,000		38,064
	China Resources Beer Holdings Co. Ltd.		Beverages		42,300		178,092
	China Resources Cement Holdings Ltd.		Construction Materials		54,000		55,720
	China Resources Gas Group Ltd.		Gas Utilities		21,600		101,810
	China Resources Land Ltd.		Real Estate Management & Development		72,000		322,856
	China Resources Pharmaceutical Group Ltd.		Pharmaceuticals		45,000		63,631
	China Resources Power Holdings Co. Ltd.		Independent Power and Renewable Electricity Producers		54,000		81,172
	China Shenhua Energy Co. Ltd., H		Oil, Gas & Consumable Fuels		90,000		205,224
	China South City Holdings Ltd.		Real Estate Management & Development		90,000		14,446
	China Southern Airlines Co. Ltd., H		Airlines		36,000		32,194
	China State Construction International Holdings Ltd.		Construction & Engineering		54,000		50,561
	China Taiping Insurance Holdings Co. Ltd.		Insurance		39,600		118,044
	China Telecom Corp. Ltd., H		Diversified Telecommunication Services		378,000		209,948
a	China Tower Corp. Ltd., H		Diversified Telecommunication Services		918,000		212,837
	China Traditional Chinese Medicine Co. Ltd.		Pharmaceuticals		54,000		32,125
	China Unicom (Hong Kong) Ltd.		Diversified Telecommunication Services		162,000		205,339
	China Vanke Co. Ltd., H		Real Estate Management & Development		35,100		147,555
	China Zhongwang Holdings Ltd.		Metals & Mining		36,000		19,628
	Chongqing Changan Automobile Co. Ltd., B		Automobiles		22,500		11,952



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STATEMENT OF INVESTMENTS

Franklin FTSE China ETF(continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests(continued)
	China (continued)
	Chongqing Rural Commercial Bank Co. Ltd., H		Banks		72,000	$	41,549
	CIFI Holdings Group Co. Ltd.		Real Estate Management & Development		90,000		68,217
	CIMC Enric Holdings Ltd.		Machinery		18,000		18,459
	Citic Pacific Ltd.		Industrial Conglomerates		135,000		201,555
	CITIC Securities Co. Ltd., H		Capital Markets		63,000		146,707
	CNOOC Ltd.		Oil, Gas & Consumable Fuels		423,000		792,120
a	COSCO SHIPPING Development Co. Ltd., H		Marine		99,000		12,990
	COSCO Shipping Energy Transportation Co. Ltd., H		Marine		36,000		20,637
a	COSCO Shipping Holdings Co. Ltd.		Marine		63,000		26,163
	COSCO Shipping Ports Ltd.		Transportation Infrastructure		54,000		58,334
	Country Garden Holdings Co. Ltd.		Real Estate Management & Development		189,000		295,179
a	Country Garden Services Holdings Co. Ltd.		Commercial Services & Supplies		27,000		50,286
	CRRC Corp. Ltd., H		Machinery		108,000		101,810
	CSC Financial Co. Ltd., H		Capital Markets		22,500		20,007
	CSG Holding Co. Ltd.		Construction Materials		27,000		10,491
	CSPC Pharmaceutical Group Ltd.		Pharmaceuticals		126,000		234,345
a	Ctrip.com International Ltd., ADR		Internet & Direct Marketing Retail		10,134		442,754
	Dali Foods Group Co. Ltd.		Food Products		54,000		40,380
	Datang International Power Generation Co. Ltd., H		Independent Power and Renewable Electricity Producers		72,000		19,261
	Dazhong Transportation (Group) Co. Ltd., B		Road & Rail		20,700		11,137
a	Dongfang Electric Corp. Ltd., H		Electrical Equipment		9,000		7,303
	Dongfeng Motor Group Co. Ltd., H		Automobiles		72,000		72,092
	ENN Energy Holdings Ltd.		Gas Utilities		19,800		191,443
	Everbright Securities Co. Ltd., H		Capital Markets		5,400		5,373
	Far East Horizon Ltd.		Diversified Financial Services		54,000		57,233
	Fosun International Ltd.		Industrial Conglomerates		58,500		99,115
	Future Land Development Holdings Ltd.		Real Estate Management & Development		36,000		44,576
	Fuyao Group Glass Industries Co. Ltd., H		Auto Components		14,400		48,337
a	GCL-Poly Energy Holdings Ltd.		Semiconductors & Semiconductor Equipment		333,000		23,331
a	GDS Holdings Ltd., ADR		IT Services		1,152		41,115
	Geely Automobile Holdings Ltd.		Automobiles		126,000		240,766
a	Genscript Biotech Corp.		Life Sciences Tools & Services		18,000		33,982
	GF Securities Co. Ltd., H		Capital Markets		41,400		59,490
a	GOME Electrical Appliances Holding Ltd.		Specialty Retail		297,000		27,619
	Great Wall Motor Co. Ltd., H		Automobiles		81,000		60,776
	Greentown China Holdings Ltd.		Real Estate Management & Development		22,500		22,471
	Guangdong Electric Power Development Co. Ltd., B		Independent Power and Renewable Electricity Producers		21,600		7,870
	Guangdong Investment Ltd.		Water Utilities		72,000		139,048
	Guangshen Railway Co. Ltd., H		Road & Rail		36,000		14,033
	Guangzhou Automobile Group Co. Ltd., H		Automobiles		90,000		106,281
	Guangzhou Baiyunshan Pharmaceutical Holdings Co. Ltd.		Pharmaceuticals		6,300		27,768
	Guangzhou R&F Properties Co. Ltd., H		Real Estate Management & Development		28,800		62,296
	Guotai Junan Securities Co. Ltd.		Capital Markets		21,600		48,153
a,b,c	Haidilao International Holding Ltd., 144A, Reg S		Hotels, Restaurants & Leisure		9,000		28,777
	Haier Electronics Group Co. Ltd.		Household Durables		36,000		104,561
	Haitian International Holdings Ltd.		Machinery		18,000		40,907
	Haitong Securities Co. Ltd., H		Capital Markets		90,000		116,485



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STATEMENT OF INVESTMENTS

Franklin FTSE China ETF(continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests(continued)
	China (continued)
a	Health & Happiness H&H International Holdings Ltd.		Food Products		4,500	$	28,175
	Hengan International Group Co. Ltd.		Personal Products		18,000		157,759
a	HengTen Networks Group Ltd.		Textiles, Apparel & Luxury Goods		468,000		14,189
	Hopson Development Holdings Ltd.		Real Estate Management & Development		18,000		17,542
	Huadian Fuxin Energy Corp. Ltd., H		Independent Power and Renewable Electricity Producers		72,000		15,959
	Huadian Power International Corp. Ltd., H		Independent Power and Renewable Electricity Producers		36,000		14,813
	Huaneng Power International Inc., H		Independent Power and Renewable Electricity Producers		108,000		62,737
	Huaneng Renewables Corp. Ltd., H		Independent Power and Renewable Electricity Producers		144,000		39,990
	Huatai Securities Co. Ltd., H		Capital Markets		46,800		93,601
	Huaxin Cement Co. Ltd., B		Construction Materials		1,800		3,649
	Industrial and Commercial Bank of China Ltd., H		Banks		2,079,000		1,522,844
	Inner Mongolia Yitai Coal Co. Ltd., B		Oil, Gas & Consumable Fuels		27,900		34,345
a	Iqiyi Inc., ADR		Entertainment		3,420		81,806
a	JD.com Inc., ADR		Internet & Direct Marketing Retail		21,267		641,200
	Jiangsu Expressway Co. Ltd., H		Transportation Infrastructure		36,000		50,905
a	Jiangxi Bank Co. Ltd., H		Banks		31,500		25,922
	Jiangxi Copper Co. Ltd., H		Metals & Mining		36,000		47,786
	Jiayuan International Group Ltd.		Real Estate Management & Development		36,000		19,032
	Kingboard Holdings Ltd.		Electronic Equipment, Instruments & Components		18,000		63,860
	Kingsoft Corp. Ltd.		Software		27,000		68,653
	Kunlun Energy Co. Ltd.		Oil, Gas & Consumable Fuels		72,000		75,211
	KWG Group Holdings Ltd.		Real Estate Management & Development		27,000		32,572
	Lao Feng Xiang Co., Ltd., B		Textiles, Apparel & Luxury Goods		4,500		15,737
	Legend Holdings Corp., H		Technology Hardware, Storage & Peripherals		10,800		28,686
a	Li Ning Co. Ltd.		Textiles, Apparel & Luxury Goods		40,500		63,562
	Livzon Pharmaceutical Group Inc., H		Pharmaceuticals		3,600		12,520
	Logan Property Holdings Co. Ltd.		Real Estate Management & Development		18,000		29,809
	Longfor Group Holdings Ltd.		Real Estate Management & Development		40,500		142,654
	Luye Pharma Group Ltd.		Pharmaceuticals		45,000		39,325
	Maanshan Iron & Steel Co. Ltd., H		Metals & Mining		36,000		17,610
a,b	Meitu Inc., Reg S		Technology Hardware, Storage & Peripherals		49,500		23,268
a,b	Meituan Dianping, B, Reg S		Internet & Direct Marketing Retail		13,500		90,975
	Metallurgical Corp. of China Ltd.		Construction & Engineering		81,000		23,939
a	Momo Inc., ADR		Interactive Media & Services		2,619		100,151
	NetEase Inc., ADR		Entertainment		1,908		460,687
	New China Life Insurance Co. Ltd., H		Insurance		23,400		119,236
a	New Oriental Education & Technology Group Inc., ADR		Diversified Consumer Services		3,663		330,000
	Nine Dragons Paper Holdings Ltd.		Paper & Forest Products		45,000		42,879
a	NIO Inc., ADR		Automobiles		4,149		21,160
	Orient Securities Co. Ltd. of China, H		Capital Markets		21,600		17,335
	People’s Insurance Co. Group of China Ltd., H		Insurance		216,000		92,454
	PetroChina Co. Ltd., H		Oil, Gas & Consumable Fuels		558,000		361,814
	PICC Property and Casualty Co. Ltd., H		Insurance		180,000		204,536
a	Pinduoduo Inc., ADR		Internet & Direct Marketing Retail		2,880		71,424
a,b	Ping An Healthcare and Technology Co. Ltd., RegS		Health Care Technology		4,500		25,395
	Ping An Insurance (Group) Co. of China Ltd., H		Insurance		135,000		1,511,666
	Poly Property Group Co. Ltd.		Real Estate Management & Development		63,000		24,558
	Postal Savings Bank of China Co. Ltd., H		Banks		234,000		133,843
a,b	Qingdao Port International Co. Ltd., H, Reg S		Transportation Infrastructure		27,000		18,952



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STATEMENT OF INVESTMENTS

Franklin FTSE China ETF(continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests(continued)
	China (continued)
	Red Star Macalline Group Corp. Ltd.		Real Estate Management & Development		14,400	$	13,923
	Shandong Chenming Paper Holdings Ltd., B		Paper & Forest Products		18,900		11,918
	Shandong Chenming Paper Holdings Ltd., H		Paper & Forest Products		13,500		8,685
	Shandong Weigao Group Medical Polymer Co. Ltd., H		Health Care Equipment & Supplies		36,000		34,395
	Shanghai Bailian Group Co. Ltd., B		Food & Staples Retailing		4,500		4,739
	Shanghai Baosight Software Co. Ltd., B		Software		6,300		13,986
	Shanghai Chlor-Alkali Chemical Co. Ltd., B		Chemicals		10,800		7,625
	Shanghai Electric Group Co. Ltd., H		Electrical Equipment		72,000		27,333
	Shanghai Fosun Pharmaceutical Group Co. Ltd., H		Pharmaceuticals		13,500		48,755
	Shanghai Haixin Group Co., B		Pharmaceuticals		10,800		5,443
	Shanghai Huayi Group Co. Ltd., B		Chemicals		6,300		5,941
	Shanghai Industrial Holdings Ltd.		Industrial Conglomerates		9,000		21,187
	Shanghai Jinjiang International Hotels Development Co. Ltd.		Hotels, Restaurants & Leisure		4,500		9,954
	Shanghai Jinjiang International Industrial Investment Co. Ltd.		Road & Rail		4,500		4,851
	Shanghai Jinqiao Export Processing Zone Development, B		Real Estate Management & Development		7,200		9,158
	Shanghai Lujiazui Finance & Trade Zone Develop Co. Ltd., B		Real Estate Management & Development		24,300		35,672
	Shanghai Mechanical and Electrical Industry Co. Ltd., B		Machinery		5,400		10,114
	Shanghai Pharmaceuticals Holding Co. Ltd., H		Health Care Providers & Services		22,500		49,013
	Shanghai ShibeiHi-Tech Co. Ltd., B		Real Estate Management & Development		12,600		6,691
	Shanghai Waigaoqiao Free Trade Zone Group Co. Ltd.		Trading Companies & Distributors		5,400		7,430
	Shanghai Zhenhua Port Machinery Co. Ltd., B		Machinery		19,640		7,856
	Shenzhen Accord Pharmaceutical Co. Ltd., B		Health Care Providers & Services		900		3,497
	Shenzhen Expressway Co. Ltd., H		Transportation Infrastructure		18,000		21,096
	Shenzhen International Holdings Ltd.		Transportation Infrastructure		22,500		47,752
	Shenzhen Investment Ltd.		Real Estate Management & Development		90,000		34,395
	Shenzhou International Group Holdings Ltd.		Textiles, Apparel & Luxury Goods		18,900		253,286
	Shimao Property Holdings Ltd.		Real Estate Management & Development		31,500		98,513
	Sichuan Expressway Co. Ltd., H		Transportation Infrastructure		18,000		5,916
	Sihuan Pharmaceutical Holdings Group Ltd.		Pharmaceuticals		108,000		26,140
a	SINA Corp.		Interactive Media & Services		1,656		98,101
	Sino-Ocean Land Holdings Ltd.		Real Estate Management & Development		81,000		35,496
a	Sinofert Holdings Ltd.		Chemicals		54,000		6,741
	Sinopec Engineering Group Co. Ltd.		Construction & Engineering		40,500		39,520
a	Sinopec Oilfield Service Corp.		Energy Equipment & Services		54,000		6,191
	Sinopec Shanghai Petrochemical Co. Ltd., H		Chemicals		90,000		42,879
	Sinopharm Group Co. Ltd., H		Health Care Providers & Services		28,800		119,970
	Sinotrans Ltd., H		Air Freight & Logistics		54,000		23,182
	Sinotruk Hong Kong Ltd.		Machinery		18,000		38,293
a	Soho China Ltd.		Real Estate Management & Development		49,500		20,809
	Sunac China Holdings Ltd.		Real Estate Management & Development		63,000		313,798
	Sunny Optical Technology Group Co. Ltd.		Electronic Equipment, Instruments & Components		17,100		204,221
a	TAL Education Group, ADR		Diversified Consumer Services		8,541		308,159
	Tencent Holdings Ltd.		Interactive Media & Services		151,200		6,953,318
a	Tianjin Capital Environmental Protection Group Co. Ltd.		Commercial Services & Supplies		18,000		7,659
	TravelSky Technology Ltd., H		IT Services		27,000		71,370
	Tsingtao Brewery Co. Ltd., H		Beverages		9,900		46,663
a	Vipshop Holdings Ltd., ADR		Internet & Direct Marketing Retail		11,367		91,277
a	Weibo Corp., ADR		Interactive Media & Services		1,314		81,455



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STATEMENT OF INVESTMENTS

Franklin FTSE China ETF(continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	China (continued)
	Weichai Power Co. Ltd., H		Machinery		54,000	$	86,263
	Weifu High-Technology Co. Ltd., B		Auto Components		3,600		7,691
a,b	Wuxi Biologics Cayman Inc., Reg S		Life Sciences Tools & Services		13,500		131,303
	Wuxi Little Swan Co. Ltd., B		Household Durables		2,700		18,223
a	Xiaomi Corp., B		Technology Hardware, Storage & Peripherals		239,400		347,056
	Xinhua Winshare Publishing and Media Co. Ltd., H		Distributors		9,000		7,005
	Xinjiang Goldwind Science & Technology Co. Ltd., H		Electrical Equipment		14,400		20,729
a	Xinjiang Goldwind Science & Technology Co. Ltd., rts., 4/23/19		Electrical Equipment		2,432		957
b	Yangtze Optical Fibre and Cable Joint Stock Ltd. Co., H, Reg S		Communications Equipment		4,500		12,067
	Yantai Changyu Pioneer Wine Co. Ltd., B		Beverages		5,400		12,073
	Yanzhou Coal Mining Co. Ltd., H		Oil, Gas & Consumable Fuels		54,000		53,037
	Yuexiu Property Co. Ltd.		Real Estate Management & Development		162,000		39,004
a	YY Inc., ADR		Interactive Media & Services		1,098		92,243
	Zhaojin Mining Industry Co. Ltd., H		Metals & Mining		27,000		27,035
	Zhejiang Expressway Co. Ltd., H		Transportation Infrastructure		36,000		41,274
a,b	ZhongAn Online P&C Insurance Co. Ltd., Reg S		Insurance		8,100		29,098
	Zhongsheng Group Holdings Ltd.		Specialty Retail		18,000		44,668
	Zhuzhou CRRC Times Electric Co. Ltd., H		Electrical Equipment		13,500		79,797
	Zijin Mining Group Co. Ltd., H		Metals & Mining		162,000		67,070
	Zoomlion Heavy Industry Science and Technology Development Co. Ltd., H		Machinery		36,000		17,840
a	ZTE Corp., H		Communications Equipment		19,800		59,526
	ZTO Express Cayman Inc., ADR		Air Freight & Logistics		8,793		160,736


							42,628,076

	Hong Kong 1.2%
a	Alibaba Pictures Group Ltd.		Entertainment		360,000		63,746
	Bosideng International Holdings Ltd.		Textiles, Apparel & Luxury Goods		72,000		17,610
	China Gas Holdings Ltd.		Gas Utilities		43,200		151,889
a	Fullshare Holdings Ltd.		Electrical Equipment		202,500		27,086
	Kingboard Laminates Holdings Ltd.		Chemicals		27,000		28,376
a	Landing International Development Ltd.		Real Estate Management & Development		43,200		12,327
	Lee & Man Paper Manufacturing Ltd.		Paper & Forest Products		36,000		30,681
	Sino Biopharmaceutical Ltd.		Pharmaceuticals		171,000		155,970


							487,685

	Singapore 0.2%
	Yangzijiang Shipbuilding Holdings Ltd.		Machinery		56,700		62,791
	Yanlord Land Group Ltd.		Real Estate Management & Development		17,100		17,169


							79,960

	Total Investments (Cost $46,234,082) 99.9%						43,195,721
	Other Assets, less Liabilities 0.1%						24,701

	Net Assets 100.0%					$	43,220,422



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STATEMENT OF INVESTMENTS

Franklin FTSE China ETF(continued)

^aNon-income producing.

^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. This security has been deemed liquid under guidelines approved by the Fund’s Board of Trustees. At March 31, 2019, the value of this security was $28,777, representing 0.1% of net assets.

See Abbreviations on page 322.



176	Annual Report \| The accompanying notes are an integral part of these financial statements.	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin FTSE Europe ETF



	Year Ended March 31,

	2019			2018^a

Per share operating performance (for a share outstanding throughout the year)

Net asset value, beginning of year	$	24.98		$	25.05


Income from investment operations^b:

Net investment income^c		0.86			0.24

Net realized and unrealized gains (losses)		(1.79	)		(0.30	)


Total from investment operations		(0.93	)		(0.06	)


Less distributions from net investment income		(0.81	)		(0.01	)


Net asset value, end of year	$	23.24		$	24.98


Total return^d		(3.69)%			(0.26)%

Ratios to average net assets^e

Total expenses		0.09%			0.09%

Net investment income		3.61%			2.35%

Supplemental data

Net assets, end of year (000’s)		$74,359			$104,911

Portfolio turnover rate^f		5.81%			0.96%

^aFor the period November 2, 2017 (commencement of operations) to March 31, 2018.

^cBased on average daily shares outstanding.

^eRatios are annualized for periods less than one year.

^fPortfolio turnover rate excludes the value of portfolio securities received or delivered as a result of processing capital share transactions in Creation Units, if any.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	177

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2019

Franklin FTSE Europe ETF



		Industry		Shares		Value
	Common Stocks and Other Equity Interests 98.3%
	Austria 0.4%
	Andritz AG		Machinery		592	$	25,419
	Erste Group Bank AG		Banks		2,400		88,283
	OMV AG		Oil, Gas & Consumable Fuels		1,184		64,306
	Raiffeisen Bank International AG		Banks		1,088		24,445
a	Telekom Austria AG		Diversified Telecommunication Services		1,152		8,382
	Verbund AG		Electric Utilities		528		25,363
	Vienna Insurance Group AG Wiener Versicherung Gruppe		Insurance		336		8,640
	Voestalpine AG		Metals & Mining		944		28,693


							273,531

	Belgium 1.7%
	Ackermans & van Haaren NV		Diversified Financial Services		192		28,997
	Ageas		Insurance		1,616		78,025
	Anheuser-Busch InBev SA		Beverages		6,352		533,214
	Colruyt SA		Food & Staples Retailing		416		30,782
a	Galapagos NV		Biotechnology		400		46,666
	Groupe Bruxelles Lambert SA		Diversified Financial Services		624		60,691
	KBC Groep NV		Banks		2,272		158,883
	Proximus SADP		Diversified Telecommunication Services		1,168		33,718
	Sofina SA		Diversified Financial Services		144		28,037
	Solvay SA		Chemicals		576		62,335
	Telenet Group Holding NV		Media		400		19,259
	UCB SA		Pharmaceuticals		1,008		86,653
	Umicore SA		Chemicals		1,744		77,527


							1,244,787

	Denmark 2.8%
	A.P. Moeller-Maersk AS, A		Marine		32		38,745
	A.P. Moeller-Maersk AS, B		Marine		48		60,947
	Ambu AS, B		Health Care Equipment & Supplies		1,440		38,141
	Carlsberg AS, B		Beverages		880		110,016
	Chr. Hansen Holding AS		Chemicals		816		82,795
	Coloplast AS, B		Health Care Equipment & Supplies		1,136		124,763
	Danske Bank AS		Banks		5,424		95,286
	DSV AS		Road & Rail		1,520		125,831
a	Genmab AS		Biotechnology		464		80,606
	GN Store Nord A/S		Health Care Equipment & Supplies		1,088		50,565
	H. Lundbeck AS		Pharmaceuticals		496		21,485
	ISS AS		Commercial Services & Supplies		1,584		48,244
	Jyske Bank AS		Banks		592		22,892
	Novo Nordisk AS, B		Pharmaceuticals		14,192		743,684
	Novozymes AS		Chemicals		1,680		77,321
	Orsted AS		Electric Utilities		1,248		94,680
	Pandora AS		Textiles, Apparel & Luxury Goods		784		36,744
	Rockwool International AS, B		Building Products		64		15,007
	Tryg AS		Insurance		1,136		31,199
	Vestas Wind Systems AS		Electrical Equipment		1,632		137,460
	William Demant Holding A/S		Health Care Equipment & Supplies		864		25,574


							2,061,985

	Finland 2.0%
	Elisa OYJ		Diversified Telecommunication Services		1,200		54,193
b	Fortum OYJ, Reg S		Electric Utilities		3,616		74,018
	Huhtamaki OYJ		Containers & Packaging		688		25,624
	Kesko OYJ		Food & Staples Retailing		560		34,106
	Kone OYJ, B		Machinery		3,184		160,739
	Metso OYJ		Machinery		880		30,295



178	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Europe ETF(continued)



		Industry			Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Finland (continued)
	Neste Oil OYJ		Oil, Gas & Consumable Fuels			1,152	$	122,885
	Nokia OYJ, A		Communications Equipment			46,320		263,901
	Nokian Renkaat OYJ		Auto Components			1,120		37,527
	Nordea Bank Abp		Banks			26,464		202,271
	Orion OYJ		Pharmaceuticals			848		31,822
	Sampo OYJ, A		Insurance			4,064		184,401
	Stora Enso OYJ, R		Paper & Forest Products			4,784		58,525
	UPM-Kymmene OYJ		Paper & Forest Products			4,464		130,322
	Wartsila OYJ ABP		Machinery			3,888		62,800


								1,473,429

	France 16.6%
	Accor SA		Hotels, Restaurants & Leisure			1,712		69,415
	Aeroports de Paris SA		Transportation Infrastructure			240		46,459
a	AirFrance-KLM		Airlines			1,808		20,352
	Air Liquide SA		Chemicals			3,488		443,935
	Airbus SE		Aerospace & Defense			4,560		603,671
c	ALD SA, 144A		Road & Rail			720		10,065
	Alstom SA		Machinery			1,280		55,506
	Amundi SA		Capital Markets			544		34,268
	ArcelorMittal		Metals & Mining			5,040		102,193
	Arkema SA		Chemicals			592		56,409
	Atos SE		IT Services			784		75,707
	AXA SA		Insurance			15,888		400,148
	Biomerieux		Health Care Equipment & Supplies			352		29,129
	BNP Paribas SA		Banks			8,976		429,453
	Bollore		Air Freight & Logistics			8,861		40,077
	Bouygues SA		Construction & Engineering			1,664		59,509
	Bureau Veritas SA		Professional Services			2,352		55,196
	Capgemini SE		IT Services			1,296		157,309
	Carrefour SA		Food & Staples Retailing			4,592		85,849
	Casino Guichard-Perrachon SA		Food & Staples Retailing			480		20,831
	Cie Generale des Etablissements Michelin SCA		Auto Components			1,472		174,209
	CNP Assurances		Insurance			1,344		29,609
	Compagnie de Saint-Gobain		Building Products			4,000		145,117
	Covivio		Equity Real Estate Investment Trusts (REITs	)		400		42,489
	Credit Agricole SA		Banks			9,536		115,320
	Danone SA		Food Products			4,960		382,558
	Dassault Aviation SA		Aerospace & Defense			16		23,625
	Dassault Systemes		Software			1,095		163,219
	Edenred		Commercial Services & Supplies			2,002		91,199
	EDF SA		Electric Utilities			4,124		56,447
	Eiffage SA		Construction & Engineering			640		61,557
	Elis SA		Commercial Services & Supplies			1,616		26,002
	Engie SA		Multi-Utilities			13,664		203,750
	EssilorLuxottica SA		Textiles, Apparel & Luxury Goods			2,416		264,173
	Eurazeo SE		Diversified Financial Services			387		29,114
	Eutelsat Communications SA		Media			1,440		25,216
	Faurecia SA		Auto Components			624		26,261
	Gecina SA		Equity Real Estate Investment Trusts (REITs	)		432		63,932
	Getlink SE		Transportation Infrastructure			3,920		59,487
	Hermes International		Textiles, Apparel & Luxury Goods			256		169,078
	ICADE		Equity Real Estate Investment Trusts (REITs	)		304		25,738
	Iliad SA		Diversified Telecommunication Services			208		20,903
	Imerys SA		Construction Materials			320		15,968
	Ingenico Group SA		Electronic Equipment, Instruments & Components			479		34,218



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STATEMENT OF INVESTMENTS

Franklin FTSE Europe ETF(continued)



		Industry			Shares		Value
	Common Stocks and Other Equity Interests (continued)
	France (continued)
	Ipsen SA		Pharmaceuticals			288	$	39,517
	JCDecaux SA		Media			608		18,515
	Kering SA		Textiles, Apparel & Luxury Goods			608		348,993
	Klepierre SA		Equity Real Estate Investment Trusts (REITs	)		1,728		60,498
	L’Oreal SA		Personal Products			2,000		538,519
	Lagardere SCA		Media			960		24,706
	Legrand SA		Electrical Equipment			2,224		148,984
	LVMH Moet Hennessy Louis Vuitton SE		Textiles, Apparel & Luxury Goods			2,064		759,929
	Natixis SA		Capital Markets			6,992		37,457
	Orange SA		Diversified Telecommunication Services			16,032		261,022
	Orpea		Health Care Providers & Services			352		42,291
	Pernod Ricard SA		Beverages			1,760		316,195
	Peugeot SA		Automobiles			4,560		111,313
	Plastic Omnium SA		Auto Components			528		14,069
	Publicis Groupe		Media			1,712		91,752
	Remy Cointreau SA		Beverages			212		28,303
	Renault SA		Automobiles			1,536		101,602
	Rexel SA		Trading Companies & Distributors			2,528		28,542
	Rubis SCA		Gas Utilities			736		40,180
	Safran SA		Aerospace & Defense			2,688		368,977
	Sanofi		Pharmaceuticals			9,024		797,841
	Sartorius Stedim Biotech		Life Sciences Tools & Services			208		26,368
	Schneider Electric SE		Electrical Equipment			4,256		334,233
	SCOR SE		Insurance			1,296		55,240
	SEB SA		Household Durables			224		37,728
	Societe BIC SA		Commercial Services & Supplies			224		19,983
	Societe Generale SA		Banks			5,888		170,407
	Sodexo SA		Hotels, Restaurants & Leisure			720		79,358
	Suez		Multi-Utilities			3,040		40,313
	Teleperformance		Professional Services			480		86,343
	Thales SA		Aerospace & Defense			832		99,727
	Total SA		Oil, Gas & Consumable Fuels			20,720		1,152,105
a	UbiSoft Entertainment SA		Entertainment			736		65,584
	Unibail-Rodamco-Westfield		Equity Real Estate Investment Trusts (REITs	)		1,120		183,784
	Valeo SA		Auto Components			2,000		58,051
	Veolia Environnement SA		Multi-Utilities			4,096		91,662
	Vinci SA		Construction & Engineering			3,856		375,472
	Vivendi SA		Media			7,968		231,098
	Wendel SA		Diversified Financial Services			240		30,263
a,b	Worldline SA, Reg S		IT Services			336		19,920


								12,381,514

	Germany 12.6%
	1&1 Drillisch AG		Wireless Telecommunication Services			400		14,256
	Adidas AG		Textiles, Apparel & Luxury Goods			1,568		381,352
	Allianz SE		Insurance			3,504		780,126
	Aroundtown SA		Real Estate Management & Development			5,664		46,745
	Axel Springer SE		Media			368		19,024
	BASF SE		Chemicals			7,600		559,211
	Bayer AG		Pharmaceuticals			7,792		503,957
	Bayerische Motoren Werke AG		Automobiles			2,672		206,268
	Beiersdorf AG		Personal Products			832		86,639
	Brenntag AG		Trading Companies & Distributors			1,296		66,794
	Carl Zeiss Meditec AG		Health Care Equipment & Supplies			288		24,076
a	Commerzbank AG		Banks			8,736		67,684
	Continental AG		Auto Components			912		137,426



180	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Europe ETF(continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Germany (continued)
	Covestro AG		Chemicals		1,312	$	72,215
	Daimler AG		Automobiles		7,136		418,661
a	Delivery Hero SE		Internet & Direct Marketing Retail		896		32,396
	Deutsche Bank AG		Capital Markets		16,992		138,517
	Deutsche Boerse AG		Capital Markets		1,504		193,026
	Deutsche Lufthansa AG		Airlines		2,016		44,289
	Deutsche Post AG		Air Freight & Logistics		8,032		261,543
	Deutsche Telekom AG		Diversified Telecommunication Services		26,576		441,496
	Deutsche Wohnen SE		Real Estate Management & Development		2,976		144,457
a,c	DWS Group GmbH & Co. KGaA, 144A		Capital Markets		288		10,025
	E.ON SE		Multi-Utilities		17,888		199,088
	Evonik Industries AG		Chemicals		1,440		39,258
	Fielmann AG		Specialty Retail		224		15,468
	Fraport AG Frankfurt Airport Services Worldwide		Transportation Infrastructure		304		23,293
	Fresenius Medical Care AG & Co. KGaA		Health Care Providers & Services		1,776		143,382
	Fresenius SE and Co. KGaA		Health Care Providers & Services		3,376		188,627
	Fuchs Petrolub SE		Chemicals		304		11,981
	GEA Group AG		Machinery		1,296		33,979
	Grenkeleasing AG		Consumer Finance		192		18,681
	Hannover Rueck SE		Insurance		496		71,287
	Hapag-Lloyd AG		Marine		320		10,133
	HeidelbergCement AG		Construction Materials		1,248		89,908
	Hella GmbH & Co. KGaA		Auto Components		368		16,198
	Henkel AG & Co. KGaA		Household Products		848		80,697
	Hochtief AG		Construction & Engineering		160		23,176
	Hugo Boss AG		Textiles, Apparel & Luxury Goods		544		37,187
	Infineon Technologies AG		Semiconductors & Semiconductor Equipment		9,520		189,044
a	Innogy SE		Multi-Utilities		1,072		45,921
	K+S AG		Chemicals		1,600		29,356
	KION Group AG		Machinery		592		30,970
a	Knorr-Bremse AG		Machinery		400		39,762
	Lanxess AG		Chemicals		768		40,996
	LEG Immobilien AG		Real Estate Management & Development		528		64,889
	Merck KGaA		Pharmaceuticals		1,088		124,182
	METRO AG		Food & Staples Retailing		1,424		23,648
	MTU Aero Engines AG		Aerospace & Defense		432		97,887
	Muenchener Rueckversicherungs-Gesellschaft Aktiengesellschaft in Muenchen		Insurance		1,232		291,887
	Osram Licht AG		Electrical Equipment		800		27,559
	ProSiebenSat.1 Media SE		Media		1,920		27,423
	Puma SE		Textiles, Apparel & Luxury Goods		64		37,153
	Rational AG		Machinery		32		19,762
	Rheinmetall AG		Industrial Conglomerates		368		38,379
a,c	Rocket Internet SE, 144A		Internet & Direct Marketing Retail		496		12,587
	RWE AG		Multi-Utilities		4,368		117,220
	SAP SE		Software		8,016		927,079
b	Scout24 AG, Reg S		Interactive Media & Services		928		48,099
	Siemens AG		Industrial Conglomerates		6,368		686,001
	Siemens Healthineers AG		Health Care Equipment & Supplies		1,152		48,054
	Suedzucker AG		Food Products		656		8,375
	Symrise AG		Chemicals		1,072		96,681
a	Talanx AG		Insurance		336		12,963
	Telefonica Deutschland Holding AG		Diversified Telecommunication Services		5,616		17,650
	thyssenkrupp AG		Metals & Mining		3,904		53,677



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STATEMENT OF INVESTMENTS

Franklin FTSE Europe ETF(continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Germany (continued)
	TUI AG		Hotels, Restaurants & Leisure		3,648	$	34,967
	Uniper SE		Independent Power and Renewable Electricity Producers		1,648		49,759
	United Internet AG		Diversified Telecommunication Services		976		35,650
	Volkswagen AG		Automobiles		272		44,316
	Vonovia SE		Real Estate Management & Development		4,288		222,539
	Wacker Chemie AG		Chemicals		128		11,038
	Wirecard AG		IT Services		960		120,405
a,c	Zalando SE, 144A		Internet & Direct Marketing Retail		1,072		41,828


							9,370,232

	Ireland 0.8%
	AIB Group PLC		Banks		5,696		25,596
	Bank of Ireland Group PLC		Banks		7,776		46,363
	CRH PLC		Construction Materials		6,768		209,452
	Glanbia PLC		Food Products		1,776		34,519
	Kerry Group PLC		Food Products		1,232		137,644
	Kingspan Group PLC		Building Products		1,296		60,042
	Paddy Power Betfair PLC		Hotels, Restaurants & Leisure		688		53,297
	Smurfit Kappa Group PLC		Containers & Packaging		1,984		55,686


							622,599

	Italy 3.6%
	A2A SpA		Multi-Utilities		12,928		23,611
	Assicurazioni Generali SpA		Insurance		10,592		196,238
	Atlantia SpA		Transportation Infrastructure		4,448		115,322
	Banca Mediolanum SpA		Diversified Financial Services		2,096		14,862
a	Banco BPM SpA		Banks		12,704		26,273
	Buzzi Unicem SpA		Construction Materials		592		12,121
	Buzzi Unicem SpA, di Risp		Construction Materials		352		4,585
	Davide Campari-Milano SpA		Beverages		4,752		46,688
	DiaSorin SpA		Health Care Equipment & Supplies		176		17,727
	Enel SpA		Electric Utilities		64,976		416,154
	Eni SpA		Oil, Gas & Consumable Fuels		20,608		364,543
	Ferrari NV		Automobiles		1,056		141,695
	FinecoBank Banca Fineco SpA		Banks		3,280		43,183
	Hera SpA		Multi-Utilities		7,040		25,485
	Intesa Sanpaolo SpA		Banks		125,296		305,435
	Italgas Reti SpA		Gas Utilities		4,096		25,314
	Leonardo SpA		Aerospace & Defense		3,248		37,783
a	Mediaset SpA		Media		2,880		8,802
	Mediobanca Banca di Credito Finanziario SpA		Banks		6,224		64,729
	Moncler SpA		Textiles, Apparel & Luxury Goods		1,376		55,498
a	Pirelli & C SpA		Auto Components		3,216		20,720
b	Poste Italiane SpA, Reg S		Insurance		3,872		37,703
	Prysmian SpA		Electrical Equipment		2,320		43,933
	Recordati SpA		Pharmaceuticals		832		32,426
a	Saipem SpA		Energy Equipment & Services		4,784		25,328
	Salvatore Ferragamo SpA		Textiles, Apparel & Luxury Goods		624		13,397
	Snam SpA		Oil, Gas & Consumable Fuels		19,808		101,843
a	Telecom Italia SpA		Diversified Telecommunication Services		87,600		54,532
	Telecom Italia SpA, di Risp		Diversified Telecommunication Services		50,528		28,731
	Tenaris SA		Energy Equipment & Services		3,920		55,086
	Terna Rete Elettrica Nazionale SpA		Electric Utilities		11,824		74,986
	UniCredit SpA		Banks		18,384		235,902
	Unione di Banche Italiane SpA		Banks		8,224		21,774



182	Annual Report	franklintempleton.com

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STATEMENT OF INVESTMENTS

Franklin FTSE Europe ETF(continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Italy (continued)
	UnipolSai Assicurazioni SpA		Insurance		4,944	$	13,345


							2,705,754

	Luxembourg 0.1%
	Eurofins Scientific SE		Life Sciences Tools & Services		96		39,776
	RTL Group SA		Media		336		18,373
	SES SA, IDR		Media		2,944		45,833


							103,982

	Netherlands 4.2%
	Aalberts Industries NV		Machinery		800		27,694
	ABN AMRO Group NV, GDR		Banks		3,472		78,361
a	Adyen NV		IT Services		64		50,160
	Aegon NV		Insurance		15,460		74,367
	Akzo Nobel NV		Chemicals		1,888		167,454
	ASML Holding NV		Semiconductors & Semiconductor Equipment		3,328		624,800
	ASR Nederland NV		Insurance		1,040		43,324
	Boskalis Westminster		Construction & Engineering		704		18,221
	EXOR NV		Diversified Financial Services		896		58,252
	Grandvision NV		Specialty Retail		416		9,015
	Heineken Holding NV		Beverages		880		88,238
	Heineken NV		Beverages		1,968		207,895
	ING Groep NV		Banks		32,480		393,294
	Koninklijke Ahold Delhaize NV		Food & Staples Retailing		9,216		245,511
	Koninklijke DSM NV		Chemicals		1,424		155,353
	Koninklijke KPN NV		Diversified Telecommunication Services		27,616		87,630
	Koninklijke Philips NV		Health Care Equipment & Supplies		7,616		310,552
	Koninklijke Vopak NV		Oil, Gas & Consumable Fuels		560		26,824
	NN Group NV		Insurance		2,794		116,172
a	OCI NV		Chemicals		800		22,008
a	QIAGEN NV		Life Sciences Tools & Services		1,856		75,316
	Randstad NV		Professional Services		928		45,296
	Signify NV		Electrical Equipment		784		20,996
	Wolters Kluwer NV		Professional Services		2,240		152,672


							3,099,405

	Norway 1.2%
	Aker ASA		Diversified Financial Services		240		18,338
	Aker BP ASA		Oil, Gas & Consumable Fuels		848		30,231
	DNB ASA		Banks		8,912		164,339
	Equinor ASA		Oil, Gas & Consumable Fuels		8,208		179,999
	Gjensidige Forsikring ASA		Insurance		1,392		24,085
	Leroy Seafood Group ASA		Food Products		2,112		15,343
a	Mowi ASA		Food Products		3,600		80,473
	Norsk Hydro ASA		Metals & Mining		11,168		45,325
	Orkla ASA		Food Products		6,496		49,937
	Salmar ASA		Food Products		432		20,758
	Schibsted ASA, A		Media		672		26,422
	Schibsted ASA, B		Media		880		31,576
	Telenor ASA		Diversified Telecommunication Services		5,696		114,230
	Yara International ASA		Chemicals		1,456		59,649


							860,705

	Poland 0.6%
	Bank Pekao SA		Banks		1,312		37,644
a	CD Projekt SA		Entertainment		512		26,709
a	Cyfrowy Polsat SA		Media		2,128		14,254



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FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Europe ETF(continued)



		Industry			Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Poland (continued)
a	Dino Polska SA		Food & Staples Retailing			400	$	12,624
	Grupa Lotos SA		Oil, Gas & Consumable Fuels			832		18,099
a	KGHM Polska Miedz SA		Metals & Mining			1,152		32,152
	LPP SA		Textiles, Apparel & Luxury Goods			7		15,200
	mBank SA		Banks			128		14,196
a	PGE Polska Grupa Energetyczna SA		Electric Utilities			6,096		15,805
	Polski Koncern Naftowy Orlen SA		Oil, Gas & Consumable Fuels			2,544		64,790
	Polskie Gornictwo Naftowe i Gazownictwo SA		Oil, Gas & Consumable Fuels			14,160		23,102
	Powszechna Kasa Oszczednosci Bank Polski SA		Banks			7,136		71,810
	Powszechny Zalkad Ubezpieczen SA		Insurance			4,720		49,861
	Santander Bank Polska SA		Banks			256		25,441


								421,687

	Portugal 0.2%
	EDP- Energias de Portugal SA		Electric Utilities			18,976		74,682
	Galp Energia SGPS SA, B		Oil, Gas & Consumable Fuels			4,304		69,011
	Jeronimo Martins SGPS SA		Food & Staples Retailing			2,048		30,240

							173,933

	Russia 0.1%
	Veon Ltd.		Wireless Telecommunication Services			5,440		11,789
	Evraz PLC		Metals & Mining			4,096		33,113
	Polymetal International PLC		Metals & Mining			2,160		24,329


								69,231

	South Africa 0.0%^†
	Investec PLC		Capital Markets			5,328		30,707

	Spain 4.7%
	Acciona SA		Electric Utilities			144		16,056
	Acerinox SA		Metals & Mining			1,696		16,823
	ACS Actividades de Construccion y Servicios SA		Construction & Engineering			2,096		92,163
	Aena SME SA		Transportation Infrastructure			544		98,038
	Amadeus IT Group SA, A		IT Services			3,440		275,790
	Banco Bilbao Vizcaya Argentaria SA		Banks			55,168		315,488
	Banco de Sabadell SA		Banks			46,944		46,797
	Banco Santander SA		Banks			133,152		619,643
	Bankia SA		Banks			9,424		24,444
	Bankinter SA		Banks			5,744		43,793
	CaixaBank SA		Banks			30,160		94,281
a	Cellnex Telecom SA		Diversified Telecommunication Services			1,643		48,261
	Corporacion Financiera Alba SA		Diversified Financial Services			192		9,529
	Corporacion Mapfre SA		Insurance			8,272		22,812
	EDP Renovaveis SA		Independent Power and Renewable Electricity Producers			1,280		12,217
	Enagas SA		Oil, Gas & Consumable Fuels			1,904		55,457
	Endesa SA		Electric Utilities			2,656		67,817
	Ferrovial SA		Construction & Engineering			3,978		93,265
a	Fomento de Construcciones y Contratas SA		Construction & Engineering			496		6,483
	Grifols SA		Biotechnology			2,768		77,577
	Iberdrola SA		Electric Utilities			51,104		449,072
	Industria de Diseno Textil SA		Specialty Retail			8,752		257,472
	Inmobiliaria Colonial SA		Equity Real Estate Investment Trusts (REITs	)		2,672		27,497
	Merlin Properties Socimi SA		Equity Real Estate Investment Trusts (REITs	)		2,800		36,674



184	Annual Report	franklintempleton.com

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STATEMENT OF INVESTMENTS

Franklin FTSE Europe ETF(continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Spain (continued)
	Naturgy Energy Group SA		Gas Utilities		2,592	$	72,557
	Red Electrica Corp. SA		Electric Utilities		3,616		77,144
	Repsol SA		Oil, Gas & Consumable Fuels		11,280		193,279
a	Siemens Gamesa Renewable Energy SA		Electrical Equipment		1,872		29,838
	Telefonica SA		Diversified Telecommunication Services		37,760		316,677
	Zardoya Otis SA		Machinery		1,488		12,330


							3,509,274

	Sweden 4.2%
	Alfa Laval AB		Machinery		2,624		60,371
	Assa Abloy AB, B		Building Products		7,520		162,719
	Atlas Copco AB		Machinery		3,168		78,591
	Atlas Copco AB, A		Machinery		5,216		140,392
	Boliden AB		Metals & Mining		2,288		65,271
	Castellum AB		Real Estate Management & Development		2,224		43,244
	Electrolux AB, B		Household Durables		2,064		53,161
	Elekta AB, B		Health Care Equipment & Supplies		2,800		34,897
a	Epiroc AB, A		Machinery		5,264		53,268
a	Epiroc AB, B		Machinery		3,168		30,398
	Ericsson, B		Communications Equipment		24,736		227,804
	Essity AB, B		Household Products		5,152		148,917
a	Fastighets AB Balder, B		Real Estate Management & Development		832		26,731
	Hennes & Mauritz AB, B		Specialty Retail		7,424		124,063
	Hexagon AB, B		Electronic Equipment, Instruments & Components		2,096		109,599
	Husqvarna AB, B		Household Durables		3,120		25,544
	ICA Gruppen AB		Food & Staples Retailing		656		26,381
	Industrivarden AB, A		Diversified Financial Services		1,744		37,549
	Industrivarden AB, C		Diversified Financial Services		1,424		29,899
	Investment AB Latour, B		Industrial Conglomerates		1,008		13,530
	Investor AB, A		Diversified Financial Services		1,152		52,015
	Investor AB, B		Diversified Financial Services		3,840		173,343
	Kinnevik AB, B		Diversified Financial Services		1,968		51,092
	L E Lundbergforetagen AB, B		Diversified Financial Services		640		20,286
	Lundin Petroleum AB		Oil, Gas & Consumable Fuels		1,520		51,588
	Nibe Industrier AB		Building Products		2,528		32,447
	Saab AB, B		Aerospace & Defense		840		26,979
	Sandvik AB		Machinery		8,992		146,388
	Securitas AB, B		Commercial Services & Supplies		2,688		43,543
	Skandinaviska Enskilda Banken AB, A		Banks		11,968		103,844
	Skandinaviska Enskilda Banken AB, C		Banks		176		1,630
	Skanska AB, B		Construction & Engineering		2,976		54,192
	SKF AB, B		Machinery		3,184		53,002
	Svenska Cellulosa AB, A		Paper & Forest Products		240		2,342
	Svenska Cellulosa AB, B		Paper & Forest Products		4,960		43,101
	Svenska Handelsbanken AB, A		Banks		12,288		129,964
	Svenska Handelsbanken AB, B		Banks		304		3,284
	Swedbank AB, A		Banks		8,192		116,009
	Swedish Match AB		Tobacco		1,456		74,391
a	Swedish Orphan Biovitrum AB		Biotechnology		1,520		35,741
	Tele2 AB, B		Wireless Telecommunication Services		4,512		60,247
	Telefonaktiebolaget LM Ericsson, A		Communications Equipment		304		2,838
	Telia Co. AB		Diversified Telecommunication Services		21,600		97,692
	Trelleborg AB, B		Machinery		2,032		31,536
	Volvo AB, B		Machinery		12,464		193,505


							3,093,328



franklintempleton.com	Annual Report	185

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STATEMENT OF INVESTMENTS

Franklin FTSE Europe ETF(continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Switzerland 14.6%
	ABB Ltd.		Electrical Equipment		14,848	$	278,950
	Adecco Group AG		Professional Services		1,280		68,274
	Baloise Holding AG		Insurance		384		63,428
	Banque Cantonale Vaudoise		Banks		32		25,641
	Barry Callebaut AG		Food Products		16		28,886
	Chocoladefabriken Lindt & Spruengli AG		Food Products		16		108,766
a	Clariant AG		Chemicals		1,712		35,980
a	Coca-Cola HBC AG		Beverages		1,632		55,610
	Compagnie Financiere Richemont SA		Textiles, Apparel & Luxury Goods		4,272		311,167
a	Credit Suisse Group AG		Capital Markets		20,976		244,429
	DKSH Holding AG		Professional Services		224		12,911
a	Dufry AG		Specialty Retail		272		28,568
	EMS-Chemie Holding AG		Chemicals		64		34,702
	Ferguson PLC		Trading Companies & Distributors		1,904		121,172
	Flughafen Zurich AG		Transportation Infrastructure		160		29,192
	Geberit AG		Building Products		288		117,699
	Georg Fischer AG		Machinery		32		29,143
	Givaudan AG		Chemicals		80		204,358
a	Glencore PLC		Metals & Mining		95,024		393,689
	Helvetia Holding AG		Insurance		48		29,304
a	Julius Baer Group Ltd.		Capital Markets		1,808		73,035
	Kuehne + Nagel International AG		Marine		416		57,060
a	LafargeHolcim Ltd., B		Construction Materials		3,952		195,199
	Logitech International SA		Technology Hardware, Storage & Peripherals		1,200		47,029
a	Lonza Group AG		Life Sciences Tools & Services		592		183,562
	Nestle SA		Food Products		25,056		2,387,604
	Novartis AG		Pharmaceuticals		18,096		1,740,370
a	OC Oerlikon Corp. AG		Machinery		1,680		21,491
	Pargesa Holding SA, B		Diversified Financial Services		352		27,569
	Partners Group Holding AG		Capital Markets		128		93,053
	PSP Swiss Property AG		Real Estate Management & Development		352		38,243
	Roche Holding AG		Pharmaceuticals		224		61,044
	Roche Holding AG		Pharmaceuticals		5,776		1,591,169
	Schindler Holding AG		Machinery		144		29,786
	Schindler Holding AG, PC		Machinery		352		72,952
	SGS SA		Professional Services		48		119,434
	Sika AG		Chemicals		1,152		160,903
	Sonova Holding AG		Health Care Equipment & Supplies		432		85,454
	STMicroelectronics NV		Semiconductors & Semiconductor Equipment		5,248		77,578
	Straumann Holding AG		Health Care Equipment & Supplies		80		65,268
	Sulzer AG		Machinery		176		17,160
	Swatch Group AG		Textiles, Apparel & Luxury Goods		240		68,682
	Swatch Group AG		Textiles, Apparel & Luxury Goods		384		21,245
a	Swiss Life Holding AG		Insurance		288		126,808
a	Swiss Prime Site AG		Real Estate Management & Development		640		56,070
	Swiss Re AG		Insurance		2,560		250,062
	Swisscom AG		Diversified Telecommunication Services		208		101,713
a	Temenos AG		Software		496		73,113
a	UBS Group AG		Capital Markets		29,104		352,731
	Vifor Pharma AG		Pharmaceuticals		384		51,918
	Zurich Insurance Group AG		Insurance		1,264		418,330


							10,887,504

	United Arab Emirates 0.0%^†
	NMC Health PLC		Health Care Providers & Services		672		20,000



186	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Europe ETF(continued)



		Industry			Shares		Value
	Common Stocks and Other Equity Interests (continued)
	United Kingdom 27.8%
	3i Group PLC		Capital Markets			7,968	$	102,249
	Admiral Group PLC		Insurance			1,680		47,504
	Anglo American PLC		Metals & Mining			8,112		217,062
	Antofagasta PLC		Metals & Mining			2,896		36,453
	Ashmore Group PLC		Capital Markets			3,216		17,902
	Ashtead Group PLC		Trading Companies & Distributors			3,904		94,239
	Associated British Foods PLC		Food Products			2,912		92,547
	AstraZeneca PLC		Pharmaceuticals			10,544		842,910
	Auto Trader Group PLC		Interactive Media & Services			7,888		53,612
	Aveva Group PLC		Software			480		20,177
	Aviva PLC		Insurance			32,528		174,798
	B&M European Value Retail SA		Multiline Retail			7,024		34,194
	Babcock International Group PLC		Commercial Services & Supplies			2,112		13,581
	BAE Systems PLC		Aerospace & Defense			25,856		162,529
	Barclays PLC		Banks			140,672		283,533
	Barratt Developments PLC		Household Durables			8,384		65,461
	Bellway PLC		Household Durables			1,024		40,630
	BHP Group PLC		Metals & Mining			17,152		413,161
	BP PLC		Oil, Gas & Consumable Fuels			165,248		1,202,598
	British American Tobacco PLC		Tobacco			18,912		787,107
	British Land Co. PLC		Equity Real Estate Investment Trusts (REITs	)		7,792		59,803
	BT Group PLC		Diversified Telecommunication Services			69,200		201,036
	Bunzl PLC		Trading Companies & Distributors			2,816		92,909
	Burberry Group PLC		Textiles, Apparel & Luxury Goods			3,360		85,573
	Capital & Counties Properties PLC		Real Estate Management & Development			6,128		19,212
	Centrica PLC		Multi-Utilities			46,832		69,690
	Cineworld Group PLC		Entertainment			7,760		29,587
	CNH Industrial NV		Machinery			8,544		86,957
a	Cobham PLC		Aerospace & Defense			20,032		28,791
	Compass Group PLC		Hotels, Restaurants & Leisure			13,184		310,003
	ConvaTec Group PLC		Health Care Equipment & Supplies			10,992		20,274
	Croda International PLC		Chemicals			1,056		69,324
	CYBG PLC		Banks			10,080		26,072
	DCC PLC		Industrial Conglomerates			816		70,549
	Derwent London PLC		Equity Real Estate Investment Trusts (REITs	)		832		34,942
	Diageo PLC		Beverages			19,904		813,869
	Direct Line Insurance Group PLC		Insurance			11,520		52,989
	DS Smith PLC		Containers & Packaging			10,407		45,551
	easyJet PLC		Airlines			1,920		27,958
	Experian PLC		Professional Services			7,728		209,355
a	Fiat Chrysler Automobiles NV		Automobiles			9,136		136,149
	Fresnillo PLC		Metals & Mining			1,552		17,611
	G4S PLC		Commercial Services & Supplies			12,960		30,989
	GlaxoSmithKline PLC		Pharmaceuticals			40,592		844,602
	GVC Holdings PLC		Hotels, Restaurants & Leisure			4,544		33,099
	Halma PLC		Electronic Equipment, Instruments & Components			3,168		69,021
	Hammerson PLC		Equity Real Estate Investment Trusts (REITs	)		6,640		29,054
	Hargreaves Lansdown PLC		Capital Markets			2,192		53,227
	Hikma Pharmaceuticals PLC		Pharmaceuticals			1,168		27,266
	Hiscox Ltd.		Insurance			2,272		46,184
	Howden Joinery Group PLC		Trading Companies & Distributors			5,040		31,871
	HSBC Holdings PLC		Banks			167,424		1,359,803
	IMI PLC		Machinery			2,240		27,962
	Imperial Brands PLC		Tobacco			7,856		268,664
	Inchcape PLC		Distributors			3,488		25,952
	Informa PLC		Media			10,384		100,697



franklintempleton.com	Annual Report	187

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Europe ETF(continued)



		Industry			Shares		Value
	Common Stocks and Other Equity Interests (continued)
	United Kingdom (continued)
	InterContinental Hotels Group PLC		Hotels, Restaurants & Leisure			1,504	$	90,444
	International Consolidated Airlines Group SA		Airlines			6,960		46,434
	Intertek Group PLC		Professional Services			1,344		85,061
	ITV PLC		Media			31,200		51,673
	J Sainsbury PLC		Food & Staples Retailing			13,488		41,426
	Jardine Lloyd Thompson Group PLC		Insurance			1,008		25,140
	JD Sports Fashion PLC		Specialty Retail			2,704		17,709
	John Wood Group PLC		Energy Equipment & Services			5,600		37,025
	Johnson Matthey PLC		Chemicals			1,584		64,852
a	Just Eat PLC		Internet & Direct Marketing Retail			4,800		46,972
	KAZ Minerals PLC		Metals & Mining			1,968		16,756
	Kingfisher PLC		Specialty Retail			18,352		56,149
	Land Securities Group PLC		Equity Real Estate Investment Trusts (REITs	)		5,968		71,032
	Legal & General Group PLC		Insurance			49,536		177,700
	Lloyds Banking Group PLC		Banks			592,864		480,051
	London Stock Exchange Group PLC		Capital Markets			2,624		162,446
	Marks & Spencer Group PLC		Multiline Retail			13,616		49,483
	Mediclinic International PLC		Health Care Providers & Services			3,280		13,027
	Meggitt PLC		Aerospace & Defense			6,480		42,455
	Melrose Industries PLC		Electrical Equipment			38,512		91,910
	Merlin Entertainments PLC		Hotels, Restaurants & Leisure			5,872		26,268
	Micro Focus International PLC		Software			3,632		94,488
	Mondi PLC		Paper & Forest Products			3,072		67,970
	National Grid PLC		Multi-Utilities			28,016		310,595
	Next PLC		Multiline Retail			1,088		79,109
a	Ocado Group PLC		Internet & Direct Marketing Retail			3,520		62,861
	Pearson PLC		Media			6,336		69,038
	Pennon Group PLC		Water Utilities			3,488		33,797
	Persimmon PLC		Household Durables			2,576		72,840
	Phoenix Group Holdings PLC		Insurance			4,448		39,268
	Prudential PLC		Insurance			21,440		429,538
	Quilter PLC		Capital Markets			13,264		25,379
	Reckitt Benckiser Group PLC		Household Products			5,200		432,436
	RELX PLC		Professional Services			15,728		336,415
	Renishaw PLC		Electronic Equipment, Instruments & Components			240		11,590
	Rentokil Initial PLC		Commercial Services & Supplies			15,408		70,933
	Rightmove PLC		Interactive Media & Services			7,680		51,038
	Rio Tinto PLC		Metals & Mining			9,280		539,438
a	Rolls-Royce Holdings PLC		Aerospace & Defense			13,760		161,944
	Royal Bank of Scotland Group PLC		Banks			37,152		119,575
	Royal Dutch Shell PLC, A		Oil, Gas & Consumable Fuels			37,296		1,172,926
	Royal Dutch Shell PLC, B		Oil, Gas & Consumable Fuels			31,248		988,626
	Royal Mail PLC		Air Freight & Logistics			7,840		24,345
	RPC Group PLC		Containers & Packaging			3,424		35,247
	RSA Insurance Group PLC		Insurance			8,528		56,429
	Schroders PLC		Capital Markets			928		32,673
	Segro PLC		Equity Real Estate Investment Trusts (REITs	)		8,992		78,903
	Severn Trent PLC		Water Utilities			1,984		51,085
	Smith & Nephew PLC		Health Care Equipment & Supplies			7,328		145,428
	Smiths Group PLC		Industrial Conglomerates			3,312		61,930
	Spirax-Sarco Engineering PLC		Machinery			608		56,963
	SSE PLC		Electric Utilities			8,496		131,409
	St. James’s Place Capital PLC		Capital Markets			4,368		58,511
	Standard Chartered PLC		Banks			22,688		174,810
	Standard Life Aberdeen PLC		Diversified Financial Services			19,852		68,279
	Subsea 7 SA		Energy Equipment & Services			1,904		23,591



188	Annual Report	franklintempleton.com

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STATEMENT OF INVESTMENTS

Franklin FTSE Europe ETF(continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	United Kingdom (continued)
	Tate & Lyle PLC		Food Products		3,888	$	36,771
	Taylor Wimpey PLC		Household Durables		27,200		62,185
	TechnipFMC PLC		Energy Equipment & Services		3,632		84,990
	Tesco PLC		Food & Staples Retailing		80,528		243,547
	The Berkeley Group Holdings PLC		Household Durables		1,072		51,531
	The Sage Group PLC		Software		9,056		82,745
	Travis Perkins PLC		Trading Companies & Distributors		2,112		37,731
	Unilever NV, IDR		Personal Products		12,592		732,114
	Unilever PLC		Personal Products		9,152		524,127
	United Utilities Group PLC		Water Utilities		5,712		60,616
	Vodafone Group PLC		Wireless Telecommunication Services		223,840		407,761
	Weir Group PLC		Machinery		2,192		44,501
	Whitbread PLC		Hotels, Restaurants & Leisure		1,536		101,635
	William Morrison Supermarkets PLC		Food & Staples Retailing		18,048		53,514
	WPP PLC		Media		10,448		110,385


							20,656,415

	United States 0.1%
	Carnival PLC		Hotels, Restaurants & Leisure		1,360		66,721

	Total Common Stocks and Other Equity Interests (Cost $79,497,969)						73,126,723

	Preferred Stocks 0.9%
	Germany 0.8%
d	Bayerische Motoren Werke AG, 6.860%, pfd.		Automobiles		464		30,531
d	Fuchs Petrolub SE, 2.480%, pfd.		Chemicals		592		24,395
d	Henkel AG & Co. KGaA, 1.967%, pfd.		Household Products		1,472		150,408
d	Porsche Automobil Holding SE, 3.146%, pfd.		Automobiles		1,296		81,405
d	RWE AG, 6.316%, pfd.		Multi-Utilities		288		7,680
d	Sartorius AG, 0.739%, pfd.		Health Care Equipment & Supplies		288		49,445
d	Volkswagen AG, 2.822%, pfd.		Automobiles		1,536		242,009


							585,873

	Spain 0.1%
d	Grifols SA, 2.342%, pfd., B		Biotechnology		2,144		42,563

	Total Preferred Stocks (Cost $767,849)						628,436

	Total Investments (Cost $80,265,818) 99.2%						73,755,159
	Other Assets, less Liabilities 0.8%						604,161

	Net Assets 100.0%					$	74,359,320

^†Rounds to less than 0.1% of net assets.

^aNon-income producing.

^dVariable rate security. The rate shown represents the yield at period end.



franklintempleton.com	Annual Report	189

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Europe ETF(continued)

At March 31, 2019, 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
EURO STOXX 50 Index		Long		11	$	404,136		6/21/19	$	4,029
FTSE 100 Index		Long		1		93,970		6/21/19		1,927

Total Futures Contracts									$	5,956

*As of period end.

See Abbreviations on page 322.

See Note 7 regarding other derivative information.



190	Annual Report \| The accompanying notes are an integral part of these financial statements.	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin FTSE Europe Hedged ETF



	Year Ended March 31,

	2019			2018^a

Per share operating performance (for a share outstanding throughout the year)

Net asset value, beginning of year	$	23.88		$	25.05


Income from investment operations^b:

Net investment income^c		0.79			0.25

Net realized and unrealized gains (losses)		0.62			(1.40	)


Total from investment operations		1.41			(1.15	)


Less distributions from:

Net investment income		(0.38	)		(0.02	)

Net realized gains		(2.10	)		(—	)^d


Net asset value, end of year	$	22.81		$	23.88


Total return^e		6.98%			(4.61)%

Ratios to average net assets^f

Total expenses		0.09%			0.09%

Net investment income		3.28%			2.47%

Supplemental data

Net assets, end of year (000’s)		$4,563			$33,428

Portfolio turnover rate^g		26.81%			5.33%

^aFor the period November 2, 2017 (commencement of operations) to March 31, 2018.

^cBased on average daily shares outstanding.

^dAmount rounds to less than $0.001 per share.

^fRatios are annualized for periods less than one year.

^gPortfolio turnover rate excludes the value of portfolio securities received or delivered as a result of processing capital share transactions in Creation Units, if any.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	191

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2019

Franklin FTSE Europe Hedged ETF



		Industry		Shares		Value
	Common Stocks and Other Equity Interests 96.2%
	Austria 0.4%
	Andritz AG		Machinery		37	$	1,589
	Erste Group Bank AG		Banks		142		5,223
	OMV AG		Oil, Gas & Consumable Fuels		70		3,802
	Raiffeisen Bank International AG		Banks		65		1,460
a	Telekom Austria AG		Diversified Telecommunication Services		53		386
	Verbund AG		Electric Utilities		35		1,681
	Vienna Insurance Group AG Wiener Versicherung Gruppe		Insurance		22		566
	Voestalpine AG		Metals & Mining		56		1,702


							16,409

	Belgium 1.6%
	Ackermans & van Haaren NV		Diversified Financial Services		12		1,812
	Ageas		Insurance		92		4,442
	Anheuser-Busch InBev SA/NV		Beverages		383		32,151
	Colruyt SA		Food & Staples Retailing		25		1,850
a	Galapagos NV		Biotechnology		23		2,683
	Groupe Bruxelles Lambert SA		Diversified Financial Services		38		3,696
	KBC Groep NV		Banks		136		9,511
	Proximus SADP		Diversified Telecommunication Services		67		1,934
	Sofina SA		Diversified Financial Services		9		1,752
	Solvay SA		Chemicals		36		3,896
	Telenet Group Holding NV		Media		23		1,107
	UCB SA		Pharmaceuticals		59		5,072
	Umicore SA		Chemicals		101		4,490


							74,396

	Denmark 2.7%
	A.P. Moeller-Maersk AS, A		Marine		2		2,422
	A.P. Moeller-Maersk AS, B		Marine		3		3,809
	Ambu AS, B		Health Care Equipment & Supplies		86		2,278
	Carlsberg AS, B		Beverages		54		6,751
	Chr. Hansen Holding AS		Chemicals		48		4,870
	Coloplast AS, B		Health Care Equipment & Supplies		66		7,249
	Danske Bank AS		Banks		329		5,780
	DSV AS		Road & Rail		91		7,533
a	Genmab AS		Biotechnology		27		4,690
	GN Store Nord AS		Health Care Equipment & Supplies		65		3,021
	H. Lundbeck AS		Pharmaceuticals		30		1,299
	ISS AS		Commercial Services & Supplies		93		2,833
	Jyske Bank AS		Banks		36		1,392
	Novo Nordisk AS, B		Pharmaceuticals		848		44,437
	Novozymes AS		Chemicals		103		4,740
	Orsted AS		Electric Utilities		76		5,766
	Pandora AS		Textiles, Apparel & Luxury Goods		51		2,390
	Rockwool International AS, B		Building Products		4		938
	Tryg AS		Insurance		59		1,620
	Vestas Wind Systems AS		Electrical Equipment		101		8,507
a	William Demant Holding AS		Health Care Equipment & Supplies		53		1,569


							123,894

	Finland 1.9%
	Elisa OYJ		Diversified Telecommunication Services		70		3,161
b	Fortum OYJ, Reg S		Electric Utilities		217		4,442
	Huhtamaki OYJ		Containers & Packaging		48		1,788
	Kesko OYJ		Food & Staples Retailing		32		1,949
	Kone OYJ, B		Machinery		193		9,743
	Metso OYJ		Machinery		51		1,756



192	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Europe Hedged ETF(continued)



		Industry			Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Finland (continued)
	Neste Oil OYJ		Oil, Gas & Consumable Fuels			68	$	7,254
	Nokia OYJ, A		Communications Equipment			2,795		15,924
	Nokian Renkaat OYJ		Auto Components			66		2,211
	Nordea Bank Abp		Banks			1,585		12,114
	Orion OYJ		Pharmaceuticals			53		1,989
	Sampo OYJ, A		Insurance			246		11,162
	Stora Enso OYJ, R		Paper & Forest Products			277		3,389
	UPM-Kymmene OYJ		Paper & Forest Products			266		7,766
	Wartsila OYJ ABP		Machinery			225		3,634


								88,282

	France 16.3%
	Accor SA		Hotels, Restaurants & Leisure			101		4,095
	Aeroports de Paris SA		Transportation Infrastructure			14		2,710
a	AirFrance-KLM		Airlines			109		1,227
	Air Liquide SA		Chemicals			210		26,728
	Airbus SE		Aerospace & Defense			274		36,273
c	ALD SA, 144A		Road & Rail			46		643
	Alstom SA		Machinery			76		3,296
	Amundi SA		Capital Markets			28		1,764
	ArcelorMittal		Metals & Mining			307		6,225
	Arkema SA		Chemicals			37		3,526
	Atos SE		IT Services			46		4,442
	AXA SA		Insurance			956		24,077
	Biomerieux		Health Care Equipment & Supplies			19		1,572
	BNP Paribas SA		Banks			542		25,932
	Bollore		Air Freight & Logistics			514		2,325
	Bouygues SA		Construction & Engineering			102		3,648
	Bureau Veritas SA		Professional Services			131		3,074
	Capgemini SE		IT Services			77		9,346
	Carrefour SA		Food & Staples Retailing			285		5,328
	Casino Guichard-Perrachon SA		Food & Staples Retailing			30		1,302
	Cie Generale des Etablissements Michelin SCA		Auto Components			88		10,415
	CNP Assurances		Insurance			74		1,630
	Compagnie de Saint-Gobain		Building Products			243		8,816
	Covivio		Equity Real Estate Investment Trusts (REITs	)		21		2,231
	Credit Agricole SA		Banks			568		6,869
	Danone SA		Food Products			296		22,830
	Dassault Aviation SA		Aerospace & Defense			1		1,477
	Dassault Systemes		Software			67		9,987
	Edenred		Commercial Services & Supplies			118		5,375
	EDF SA		Electric Utilities			251		3,436
	Eiffage SA		Construction & Engineering			36		3,463
	Elis SA		Commercial Services & Supplies			94		1,512
	Engie SA		Multi-Utilities			819		12,212
	EssilorLuxottica SA		Textiles, Apparel & Luxury Goods			147		16,073
	Eurazeo SE		Diversified Financial Services			24		1,805
	Eutelsat Communications SA		Media			86		1,506
	Faurecia SA		Auto Components			35		1,473
	Gecina SA		Equity Real Estate Investment Trusts (REITs	)		28		4,144
	Getlink SE		Transportation Infrastructure			217		3,293
	Hermes International		Textiles, Apparel & Luxury Goods			15		9,907
	ICADE		Equity Real Estate Investment Trusts (REITs	)		16		1,355
	Iliad SA		Diversified Telecommunication Services			11		1,105
	Imerys SA		Construction Materials			19		948
	Ingenico Group SA		Electronic Equipment, Instruments & Components			33		2,357



franklintempleton.com	Annual Report	193

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Europe Hedged ETF(continued)



		Industry			Shares		Value
	Common Stocks and Other Equity Interests (continued)
	France (continued)
	Ipsen SA		Pharmaceuticals			17	$	2,333
	JCDecaux SA		Media			40		1,218
	Kering SA		Textiles, Apparel & Luxury Goods			37		21,238
	Klepierre SA		Equity Real Estate Investment Trusts (REITs	)		102		3,571
	L’Oreal SA		Personal Products			120		32,311
	Lagardere SCA		Media			61		1,570
	Legrand SA		Electrical Equipment			138		9,244
	LVMH Moet Hennessy Louis Vuitton SE		Textiles, Apparel & Luxury Goods			124		45,655
	Natixis SA		Capital Markets			408		2,186
	Orange SA		Diversified Telecommunication Services			970		15,793
	Orpea		Health Care Providers & Services			22		2,643
	Pernod Ricard SA		Beverages			106		19,043
	Peugeot SA		Automobiles			270		6,591
	Plastic Omnium SA		Auto Components			29		773
	Publicis Groupe		Media			105		5,627
	Remy Cointreau SA		Beverages			12		1,602
	Renault SA		Automobiles			93		6,152
	Rexel SA		Trading Companies & Distributors			144		1,626
	Rubis SCA		Gas Utilities			43		2,347
	Safran SA		Aerospace & Defense			164		22,512
	Sanofi		Pharmaceuticals			539		47,655
	Sartorius Stedim Biotech		Life Sciences Tools & Services			12		1,521
	Schneider Electric SE		Electrical Equipment			254		19,947
	SCOR SE		Insurance			77		3,282
	SEB SA		Household Durables			13		2,190
	Societe BIC SA		Commercial Services & Supplies			13		1,160
	Societe Generale SA		Banks			359		10,390
	Sodexo SA		Hotels, Restaurants & Leisure			43		4,739
	Suez		Multi-Utilities			179		2,374
	Teleperformance		Professional Services			28		5,037
	Thales SA		Aerospace & Defense			50		5,993
	Total SA		Oil, Gas & Consumable Fuels			1,252		69,616
a	UbiSoft Entertainment SA		Entertainment			43		3,832
	Unibail-Rodamco-Westfield		Equity Real Estate Investment Trusts (REITs	)		67		10,994
	Valeo SA		Auto Components			116		3,367
	Veolia Environnement SA		Multi-Utilities			245		5,483
	Vinci SA		Construction & Engineering			230		22,396
	Vivendi SA		Media			476		13,805
	Wendel SA		Diversified Financial Services			14		1,765
a,b	Worldline SA, Reg S		IT Services			20		1,186


								742,519

	Germany 12.3%
	1&1 Drillisch AG		Wireless Telecommunication Services			23		820
	Adidas AG		Textiles, Apparel & Luxury Goods			95		23,105
	Allianz SE		Insurance			212		47,199
	Aroundtown SA		Real Estate Management & Development			330		2,723
	Axel Springer SE		Media			24		1,241
	BASF SE		Chemicals			454		33,405
	Bayer AG		Pharmaceuticals			467		30,204
	Bayerische Motoren Werke AG		Automobiles			158		12,197
	Beiersdorf AG		Personal Products			49		5,102
	Brenntag AG		Trading Companies & Distributors			76		3,917
	Carl Zeiss Meditec AG		Health Care Equipment & Supplies			20		1,672
a	Commerzbank AG		Banks			512		3,967
	Continental AG		Auto Components			55		8,288



194	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Europe Hedged ETF(continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Germany (continued)
c	Covestro AG, 144A		Chemicals		80	$	4,403
	Daimler AG		Automobiles		429		25,169
a,c	Delivery Hero SE, 144A		Internet & Direct Marketing Retail		55		1,989
	Deutsche Bank AG		Capital Markets		1,031		8,405
	Deutsche Boerse AG		Capital Markets		92		11,807
	Deutsche Lufthansa AG		Airlines		115		2,526
	Deutsche Post AG		Air Freight & Logistics		486		15,825
	Deutsche Telekom AG		Diversified Telecommunication Services		1,603		26,630
	Deutsche Wohnen SE		Real Estate Management & Development		176		8,543
a,c	DWS Group GmbH & Co. KGaA, 144A		Capital Markets		21		731
	E.ON SE		Multi-Utilities		1,082		12,042
	Evonik Industries AG		Chemicals		83		2,263
	Fielmann AG		Specialty Retail		14		967
	Fraport AG Frankfurt Airport Services Worldwide		Transportation Infrastructure		17		1,303
	Fresenius Medical Care AG & Co. KGaA		Health Care Providers & Services		105		8,477
	Fresenius SE and Co. KGaA		Health Care Providers & Services		201		11,230
	Fuchs Petrolub SE		Chemicals		17		670
	GEA Group AG		Machinery		82		2,150
	Grenkeleasing AG		Consumer Finance		14		1,362
	Hannover Rueck SE		Insurance		29		4,168
c	Hapag-Lloyd AG, 144A		Marine		12		380
	HeidelbergCement AG		Construction Materials		74		5,331
	Hella GmbH & Co. KGaA		Auto Components		24		1,056
	Henkel AG & Co. KGaA		Household Products		51		4,853
	Hochtief AG		Construction & Engineering		9		1,304
	Hugo Boss AG		Textiles, Apparel & Luxury Goods		31		2,119
	Infineon Technologies AG		Semiconductors & Semiconductor Equipment		561		11,140
a	Innogy SE		Multi-Utilities		66		2,827
	K+S AG		Chemicals		98		1,798
	KION Group AG		Machinery		35		1,831
a	Knorr-Bremse AG		Machinery		22		2,187
	Lanxess AG		Chemicals		45		2,402
	LEG Immobilien AG		Real Estate Management & Development		32		3,933
	Merck KGaA		Pharmaceuticals		64		7,305
	METRO AG		Food & Staples Retailing		86		1,428
	MTU Aero Engines AG		Aerospace & Defense		25		5,665
	Muenchener Rueckversicherungs-Gesellschaft Aktiengesellschaft in Muenchen		Insurance		74		17,532
	Osram Licht AG		Electrical Equipment		46		1,585
	ProSiebenSat.1 Media SE		Media		112		1,600
	Puma SE		Textiles, Apparel & Luxury Goods		4		2,322
	Rational AG		Machinery		2		1,235
	Rheinmetall AG		Industrial Conglomerates		21		2,190
a,c	Rocket Internet SE, 144A		Internet & Direct Marketing Retail		34		863
	RWE AG		Multi-Utilities		266		7,138
	SAP SE		Software		483		55,861
b,c	Scout24 AG, Reg S, 144A		Interactive Media & Services		56		2,903
	Siemens AG		Industrial Conglomerates		381		41,044
c	Siemens Healthineers AG, 144A		Health Care Equipment & Supplies		67		2,795
	Suedzucker AG		Food Products		42		536
	Symrise AG		Chemicals		60		5,411
a	Talanx AG		Insurance		17		656
	Telefonica Deutschland Holding AG		Diversified Telecommunication Services		351		1,103
	thyssenkrupp AG		Metals & Mining		227		3,121
	TUI AG		Hotels, Restaurants & Leisure		219		2,099



franklintempleton.com	Annual Report	195

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Europe Hedged ETF(continued)



			Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Germany (continued)
	Uniper SE			Independent Power and Renewable Electricity Producers		98	$	2,959
	United Internet AG			Diversified Telecommunication Services		59		2,155
	Volkswagen AG			Automobiles		16		2,607
	Vonovia SE			Real Estate Management & Development		259		13,442
	Wacker Chemie AG			Chemicals		8		690
	Wirecard AG			IT Services		56		7,024
a,c	Zalando SE, 144A			Internet & Direct Marketing Retail		72		2,809


								561,739

	Ireland 0.8%
	AIB Group PLC			Banks		402		1,807
	Bank of Ireland Group PLC			Banks		456		2,719
	CRH PLC			Construction Materials		413		12,781
	Glanbia PLC			Food Products		99		1,924
	Kerry Group PLC			Food Products		72		8,044
	Kingspan Group PLC			Building Products		74		3,428
	Paddy Power Betfair PLC			Hotels, Restaurants & Leisure		40		3,099
	Smurfit Kappa Group PLC			Containers & Packaging		116		3,256


								37,058

	Italy 3.6%
	A2A SpA			Multi-Utilities		819		1,496
	Assicurazioni Generali SpA			Insurance		649		12,024
	Atlantia SpA			Transportation Infrastructure		264		6,845
	Banca Mediolanum SpA			Diversified Financial Services		130		922
a	Banco BPM SpA			Banks		762		1,576
	Buzzi Unicem SpA			Construction Materials		31		635
	Buzzi Unicem SpA, di Risp			Construction Materials		23		300
	Davide Campari-Milano SpA			Beverages		280		2,751
	DiaSorin SpA			Health Care Equipment & Supplies		12		1,209
	Enel SpA			Electric Utilities		3,868		24,773
	Eni SpA			Oil, Gas & Consumable Fuels		1,244		22,006
	Ferrari NV			Automobiles		63		8,453
	FinecoBank Banca Fineco SpA			Banks		195		2,567
	Hera SpA			Multi-Utilities		400		1,448
	Intesa Sanpaolo SpA			Banks		7,607		18,544
	Italgas Reti SpA			Gas Utilities		251		1,551
	Leonardo SpA			Aerospace & Defense		198		2,303
a	Mediaset SpA	��		Media		178		544
	Mediobanca Banca di Credito Finanziario SpA			Banks		362		3,765
	Moncler SpA			Textiles, Apparel & Luxury Goods		83		3,348
a	Pirelli & C SpA			Auto Components		231		1,488
b	Poste Italiane SpA, Reg S			Insurance		235		2,288
	Prysmian SpA			Electrical Equipment		131		2,481
	Recordati SpA			Pharmaceuticals		46		1,793
a	Saipem SpA			Energy Equipment & Services		299		1,583
	Salvatore Ferragamo SpA			Textiles, Apparel & Luxury Goods		39		837
	Snam SpA			Oil, Gas & Consumable Fuels		1,133		5,825
a	Telecom Italia SpA			Diversified Telecommunication Services		5,173		3,220
	Telecom Italia SpA, di Risp			Diversified Telecommunication Services		3,158		1,796
	Tenaris SA			Energy Equipment & Services		233		3,274
	Terna Rete Elettrica Nazionale SpA			Electric Utilities		679		4,306
	UniCredit SpA			Banks		1,111		14,256
	Unione di Banche Italiane SpA			Banks		540		1,430
	UnipolSai Assicurazioni SpA			Insurance		385		1,039


								162,676



196	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Europe Hedged ETF(continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Luxembourg 0.1%
	Eurofins Scientific SE		Life Sciences Tools & Services		6	$	2,486
	RTL Group SA		Media		21		1,148
	SES SA, IDR		Media		174		2,709


							6,343

	Netherlands 4.1%
	Aalberts Industries NV		Machinery		45		1,558
	ABN AMRO Group NV, GDR		Banks		209		4,717
a	Adyen NV		IT Services		3		2,351
	Aegon NV		Insurance		864		4,156
	Akzo Nobel NV		Chemicals		112		9,934
	ASML Holding NV		Semiconductors & Semiconductor Equipment		200		37,548
	ASR Nederland NV		Insurance		71		2,958
	Boskalis Westminster		Construction & Engineering		45		1,165
	EXOR NV		Diversified Financial Services		52		3,381
	Grandvision NV		Specialty Retail		27		585
	Heineken Holding NV		Beverages		51		5,114
	Heineken NV		Beverages		116		12,254
	ING Groep NV		Banks		1,932		23,394
	Koninklijke Ahold Delhaize NV		Food & Staples Retailing		542		14,439
	Koninklijke DSM NV		Chemicals		90		9,819
	Koninklijke KPN NV		Diversified Telecommunication Services		1,625		5,156
	Koninklijke Philips NV		Health Care Equipment & Supplies		460		18,757
	Koninklijke Vopak NV		Oil, Gas & Consumable Fuels		30		1,437
	NN Group NV		Insurance		170		7,068
a	OCI NV		Chemicals		50		1,375
a	QIAGEN NV		Life Sciences Tools & Services		108		4,382
	Randstad NV		Professional Services		54		2,636
	Signify NV		Electrical Equipment		51		1,366
	Wolters Kluwer NV		Professional Services		134		9,133


							184,683

	Norway 1.1%
	Aker ASA		Diversified Financial Services		13		993
	Aker BP ASA		Oil, Gas & Consumable Fuels		55		1,961
	DNB ASA		Banks		526		9,700
	Equinor ASA		Oil, Gas & Consumable Fuels		483		10,592
	Gjensidige Forsikring ASA		Insurance		84		1,453
	Leroy Seafood Group ASA		Food Products		120		872
a	Mowi ASA		Food Products		202		4,516
	Norsk Hydro ASA		Metals & Mining		663		2,691
	Orkla ASA		Food Products		383		2,944
	Salmar ASA		Food Products		26		1,249
	Schibsted ASA, A		Media		38		1,494
	Schibsted ASA, B		Media		49		1,758
	Telenor ASA		Diversified Telecommunication Services		325		6,518
	Yara International ASA		Chemicals		87		3,564


							50,305

	Poland 0.6%
	Bank Pekao SA		Banks		82		2,353
a	CD Projekt SA		Entertainment		33		1,722
a	Cyfrowy Polsat SA		Media		158		1,058
a	Dino Polska SA		Food & Staples Retailing		22		694
	Grupa Lotos SA		Oil, Gas & Consumable Fuels		52		1,131
a	KGHM Polska Miedz SA		Metals & Mining		71		1,982
	mBank SA		Banks		7		776



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STATEMENT OF INVESTMENTS

Franklin FTSE Europe Hedged ETF(continued)



		Industry			Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Poland (continued)
a	PGE Polska Grupa Energetyczna SA		Electric Utilities			353	$	915
	Polski Koncern Naftowy Orlen SA		Oil, Gas & Consumable Fuels			159		4,049
	Polskie Gornictwo Naftowe i Gazownictwo SA		Oil, Gas & Consumable Fuels			897		1,464
	Powszechna Kasa Oszczednosci Bank Polski SA		Banks			427		4,297
	Powszechny Zalkad Ubezpieczen SA		Insurance			288		3,042
	Santander Bank Polska SA		Banks			15		1,491


								24,974

	Portugal 0.2%
	EDP- Energias de Portugal SA		Electric Utilities			1,147		4,514
	Galp Energia SGPS SA, B		Oil, Gas & Consumable Fuels			252		4,041
	Jeronimo Martins SGPS SA		Food & Staples Retailing			113		1,668


								10,223

	Russia 0.1%
	Evraz PLC		Metals & Mining			232		1,875
	Polymetal International PLC		Metals & Mining			144		1,622
	Veon Ltd.		Wireless Telecommunication Services			340		737


								4,234

	South Africa 0.0%^†
	Investec PLC		Capital Markets			325		1,873

	Spain 4.7%
	Acciona SA		Electric Utilities			11		1,226
	Acerinox SA		Metals & Mining			75		744
	ACS Actividades de Construccion y Servicios SA		Construction & Engineering			123		5,408
	Aena SME SA		Transportation Infrastructure			31		5,587
	Amadeus IT Group SA, A		IT Services			208		16,676
	Banco Bilbao Vizcaya Argentaria SA		Banks			3,335		19,072
	Banco de Sabadell SA		Banks			2,802		2,793
	Banco Santander SA		Banks			8,031		37,373
	Bankia SA		Banks			580		1,504
	Bankinter SA		Banks			321		2,447
	CaixaBank SA		Banks			1,774		5,546
a	Cellnex Telecom SA		Diversified Telecommunication Services			162		4,759
	Corporacion Financiera Alba SA		Diversified Financial Services			12		596
	Corporacion Mapfre SA		Insurance			505		1,393
	EDP Renovaveis SA		Independent Power and Renewable Electricity Producers			80		764
	Enagas SA		Oil, Gas & Consumable Fuels			114		3,320
	Endesa SA		Electric Utilities			158		4,034
	Ferrovial SA		Construction & Engineering			239		5,603
a	Fomento de Construcciones y Contratas SA		Construction & Engineering			33		431
	Grifols SA		Biotechnology			164		4,596
	Iberdrola SA		Electric Utilities			3,059		26,881
	Industria de Diseno Textil SA		Specialty Retail			521		15,327
	Inmobiliaria Colonial SA		Equity Real Estate Investment Trusts (REITs	)		153		1,575
	Merlin Properties Socimi SA		Equity Real Estate Investment Trusts (REITs	)		169		2,214
	Naturgy Energy Group SA		Gas Utilities			158		4,423
	Red Electrica Corp. SA		Electric Utilities			210		4,480
	Repsol SA		Oil, Gas & Consumable Fuels			676		11,583
a	Siemens Gamesa Renewable Energy SA		Electrical Equipment			113		1,801
	Telefonica SA		Diversified Telecommunication Services			2,265		18,996
	Zardoya Otis SA		Machinery			77		638


								211,790



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STATEMENT OF INVESTMENTS

Franklin FTSE Europe Hedged ETF(continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Sweden 4.0%
	Alfa Laval AB		Machinery		154	$	3,543
	Assa Abloy AB, B		Building Products		453		9,802
	Atlas Copco AB		Machinery		190		4,713
	Atlas Copco AB, A		Machinery		318		8,559
	Boliden AB		Metals & Mining		132		3,766
	Castellum AB		Real Estate Management & Development		130		2,528
	Electrolux AB, B		Household Durables		116		2,988
	Elekta AB, B		Health Care Equipment & Supplies		178		2,218
a	Epiroc AB, A		Machinery		317		3,208
a	Epiroc AB, B		Machinery		175		1,679
	Ericsson, B		Communications Equipment		1,469		13,529
	Essity AB, B		Household Products		300		8,671
a	Fastighets AB Balder, B		Real Estate Management & Development		46		1,478
	Hennes & Mauritz AB, B		Specialty Retail		432		7,219
	Hexagon AB, B		Electronic Equipment, Instruments & Components		123		6,432
	Husqvarna AB, B		Household Durables		192		1,572
	ICA Gruppen AB		Food & Staples Retailing		40		1,609
	Industrivarden AB, A		Diversified Financial Services		121		2,605
	Industrivarden AB, C		Diversified Financial Services		83		1,743
	Investment AB Latour, B		Industrial Conglomerates		63		846
	Investor AB, A		Diversified Financial Services		65		2,935
	Investor AB, B		Diversified Financial Services		232		10,473
	Kinnevik AB, B		Diversified Financial Services		123		3,193
	L E Lundbergforetagen AB, B		Diversified Financial Services		40		1,268
	Lundin Petroleum AB		Oil, Gas & Consumable Fuels		84		2,851
	Nibe Industrier AB		Building Products		150		1,925
	Saab AB, B		Aerospace & Defense		57		1,831
	Sandvik AB		Machinery		536		8,726
	Securitas AB, B		Commercial Services & Supplies		145		2,349
	Skandinaviska Enskilda Banken AB, A		Banks		706		6,126
	Skandinaviska Enskilda Banken AB, C		Banks		12		111
	Skanska AB, B		Construction & Engineering		182		3,314
	SKF AB, B		Machinery		189		3,146
	Svenska Cellulosa AB, A		Paper & Forest Products		12		117
	Svenska Cellulosa AB, B		Paper & Forest Products		293		2,546
	Svenska Handelsbanken AB, A		Banks		716		7,573
	Svenska Handelsbanken AB, B		Banks		18		194
	Swedbank AB, A		Banks		495		7,010
	Swedish Match AB		Tobacco		83		4,241
a	Swedish Orphan Biovitrum AB		Biotechnology		78		1,834
	Tele2 AB, B		Wireless Telecommunication Services		263		3,512
	Telefonaktiebolaget LM Ericsson, A		Communications Equipment		19		177
	Telia Co. AB		Diversified Telecommunication Services		1,365		6,173
	Trelleborg AB, B		Machinery		121		1,878
	Volvo AB, B		Machinery		738		11,457


							183,668

	Switzerland 14.4%
	ABB Ltd.		Electrical Equipment		887		16,664
	Adecco Group AG		Professional Services		75		4,000
	Baloise Holding AG		Insurance		24		3,964
	Banque Cantonale Vaudoise		Banks		2		1,603
	Barry Callebaut AG		Food Products		1		1,805
	Chocoladefabriken Lindt & Spruengli AG		Food Products		1		6,798
a	Clariant AG		Chemicals		98		2,060
a	Coca-Cola HBC AG		Beverages		96		3,271



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Franklin FTSE Europe Hedged ETF(continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Switzerland (continued)
	Compagnie Financiere Richemont SA		Textiles, Apparel & Luxury Goods		253	$	18,428
a	Credit Suisse Group AG		Capital Markets		1,260		14,682
	DKSH Holding AG		Professional Services		12		692
a	Dufry AG		Specialty Retail		16		1,680
	EMS-Chemie Holding AG		Chemicals		4		2,169
	Ferguson PLC		Trading Companies & Distributors		120		7,637
	Flughafen Zurich AG		Transportation Infrastructure		10		1,824
	Geberit AG		Building Products		18		7,356
	Georg Fischer AG		Machinery		2		1,821
	Givaudan AG		Chemicals		5		12,772
a	Glencore PLC		Metals & Mining		5,728		23,731
	Helvetia Holding AG		Insurance		3		1,832
a	Julius Baer Group Ltd.		Capital Markets		106		4,282
	Kuehne + Nagel International AG		Marine		25		3,429
a	LafargeHolcim Ltd., B		Construction Materials		238		11,755
	Logitech International SA		Technology Hardware, Storage & Peripherals		71		2,783
a	Lonza Group AG		Life Sciences Tools & Services		37		11,473
	Nestle SA		Food Products		1,506		143,508
	Novartis AG		Pharmaceuticals		1,093		105,119
a	OC Oerlikon Corp. AG		Machinery		103		1,318
	Pargesa Holding SA, B		Diversified Financial Services		20		1,566
	Partners Group Holding AG		Capital Markets		9		6,543
	PSP Swiss Property AG		Real Estate Management & Development		22		2,390
	Roche Holding AG		Pharmaceuticals		14		3,815
	Roche Holding AG		Pharmaceuticals		347		95,591
	Schindler Holding AG		Machinery		11		2,275
	Schindler Holding AG, PC		Machinery		20		4,145
	SGS SA		Professional Services		3		7,465
	Sika AG		Chemicals		68		9,498
	Sonova Holding AG		Health Care Equipment & Supplies		27		5,341
	STMicroelectronics NV		Semiconductors & Semiconductor Equipment		313		4,627
	Straumann Holding AG		Health Care Equipment & Supplies		5		4,079
	Sulzer AG		Machinery		8		780
	Swatch Group AG		Textiles, Apparel & Luxury Goods		15		4,293
	Swatch Group AG		Textiles, Apparel & Luxury Goods		24		1,328
a	Swiss Life Holding AG		Insurance		17		7,485
a	Swiss Prime Site AG		Real Estate Management & Development		37		3,242
	Swiss Re AG		Insurance		151		14,750
	Swisscom AG		Diversified Telecommunication Services		13		6,357
a	Temenos AG		Software		28		4,127
a	UBS Group AG		Capital Markets		1,752		21,234
	Vifor Pharma AG		Pharmaceuticals		22		2,975
	Zurich Insurance Group AG		Insurance		75		24,822


							657,184

	United Arab Emirates 0.0%^†
	NMC Health PLC		Health Care Providers & Services		40		1,190

	United Kingdom 27.2%
	3i Group PLC		Capital Markets		476		6,108
	Admiral Group PLC		Insurance		97		2,743
	Anglo American PLC		Metals & Mining		486		13,004
	Antofagasta PLC		Metals & Mining		179		2,253
	Ashmore Group PLC		Capital Markets		192		1,069
	Ashtead Group PLC		Trading Companies & Distributors		240		5,793
	Associated British Foods PLC		Food Products		172		5,466
	AstraZeneca PLC		Pharmaceuticals		633		50,603



200	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Europe Hedged ETF(continued)



		Industry			Shares		Value
	Common Stocks and Other Equity Interests (continued)
	United Kingdom (continued)
	Auto Trader Group PLC		Interactive Media & Services			442	$	3,004
	Aveva Group PLC		Software			38		1,597
	Aviva PLC		Insurance			1,974		10,608
	B&M European Value Retail SA		Multiline Retail			414		2,015
	Babcock International Group PLC		Commercial Services & Supplies			132		849
	BAE Systems PLC		Aerospace & Defense			1,572		9,881
	Barclays PLC		Banks			8,476		17,084
	Barratt Developments PLC		Household Durables			515		4,021
	Bellway PLC		Household Durables			64		2,539
	BHP Group PLC		Metals & Mining			1,036		24,955
	BP PLC		Oil, Gas & Consumable Fuels			9,905		72,084
	British American Tobacco PLC		Tobacco			1,141		47,488
	British Land Co. PLC		Equity Real Estate Investment Trusts (REITs	)		492		3,776
	BT Group PLC		Diversified Telecommunication Services			4,148		12,051
	Bunzl PLC		Trading Companies & Distributors			165		5,444
	Burberry Group PLC		Textiles, Apparel & Luxury Goods			200		5,094
	Capital & Counties Properties PLC		Real Estate Management & Development			359		1,126
	Centrica PLC		Multi-Utilities			2,787		4,147
	Cineworld Group PLC		Entertainment			531		2,025
	CNH Industrial NV		Machinery			487		4,956
a	Cobham PLC		Aerospace & Defense			1,261		1,812
	Compass Group PLC		Hotels, Restaurants & Leisure			798		18,764
	ConvaTec Group PLC		Health Care Equipment & Supplies			758		1,398
	Croda International PLC		Chemicals			63		4,136
	CYBG PLC		Banks			641		1,658
	DCC PLC		Industrial Conglomerates			48		4,150
	Derwent London PLC		Equity Real Estate Investment Trusts (REITs	)		52		2,184
	Diageo PLC		Beverages			1,209		49,436
	Direct Line Insurance Group PLC		Insurance			655		3,013
	DS Smith PLC		Containers & Packaging			624		2,731
	easyJet PLC		Airlines			105		1,529
	Experian PLC		Professional Services			468		12,678
a	Fiat Chrysler Automobiles NV		Automobiles			547		8,152
	Fresnillo PLC		Metals & Mining			93		1,055
	G4S PLC		Commercial Services & Supplies			745		1,781
	GlaxoSmithKline PLC		Pharmaceuticals			2,434		50,645
	GVC Holdings PLC		Hotels, Restaurants & Leisure			290		2,112
	Halma PLC		Electronic Equipment, Instruments & Components			184		4,009
	Hammerson PLC		Equity Real Estate Investment Trusts (REITs	)		399		1,746
	Hargreaves Lansdown PLC		Capital Markets			142		3,448
	Hikma Pharmaceuticals PLC		Pharmaceuticals			73		1,704
	Hiscox Ltd.		Insurance			135		2,744
	Howden Joinery Group PLC		Trading Companies & Distributors			318		2,011
	HSBC Holdings PLC		Banks			10,030		81,463
	IMI PLC		Machinery			136		1,698
	Imperial Brands PLC		Tobacco			471		16,108
	Inchcape PLC		Distributors			212		1,577
	Informa PLC		Media			625		6,061
	InterContinental Hotels Group PLC		Hotels, Restaurants & Leisure			87		5,232
	International Consolidated Airlines Group SA		Airlines			449		2,996
	Intertek Group PLC		Professional Services			85		5,380
	ITV PLC		Media			1,838		3,044
	J Sainsbury PLC		Food & Staples Retailing			810		2,488
	Jardine Lloyd Thompson Group PLC		Insurance			60		1,496
	JD Sports Fashion PLC		Specialty Retail			190		1,244
	John Wood Group PLC		Energy Equipment & Services			328		2,169



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STATEMENT OF INVESTMENTS

Franklin FTSE Europe Hedged ETF(continued)



		Industry			Shares		Value
	Common Stocks and Other Equity Interests (continued)
	United Kingdom (continued)
	Johnson Matthey PLC		Chemicals			93	$	3,808
a	Just Eat PLC		Internet & Direct Marketing Retail			280		2,740
	KAZ Minerals PLC		Metals & Mining			118		1,005
	Kingfisher PLC		Specialty Retail			1,076		3,292
	Land Securities Group PLC		Equity Real Estate Investment Trusts (REITs	)		364		4,332
	Legal & General Group PLC		Insurance			2,966		10,640
	Lloyds Banking Group PLC		Banks			35,631		28,851
	London Stock Exchange Group PLC		Capital Markets			158		9,781
	Marks & Spencer Group PLC		Multiline Retail			792		2,878
	Mediclinic International PLC		Health Care Providers & Services			201		798
	Meggitt PLC		Aerospace & Defense			396		2,595
	Melrose Industries PLC		Electrical Equipment			2,415		5,764
	Merlin Entertainments PLC		Hotels, Restaurants & Leisure			351		1,570
	Micro Focus International PLC		Software			214		5,567
	Mondi PLC		Paper & Forest Products			181		4,005
	National Grid PLC		Multi-Utilities			1,687		18,703
	Next PLC		Multiline Retail			65		4,726
a	Ocado Group PLC		Internet & Direct Marketing Retail			213		3,804
	Pearson PLC		Media			381		4,151
	Pennon Group PLC		Water Utilities			193		1,870
	Persimmon PLC		Household Durables			156		4,411
	Phoenix Group Holdings PLC		Insurance			291		2,569
	Prudential PLC		Insurance			1,292		25,884
	Quilter PLC		Capital Markets			868		1,661
	Reckitt Benckiser Group PLC		Household Products			314		26,112
	RELX PLC		Professional Services			952		20,363
	Renishaw PLC		Electronic Equipment, Instruments & Components			16		773
	Rentokil Initial PLC		Commercial Services & Supplies			893		4,111
	Rightmove PLC		Interactive Media & Services			502		3,336
	Rio Tinto PLC		Metals & Mining			570		33,134
a	Rolls-Royce Holdings PLC		Aerospace & Defense			847		9,969
	Royal Bank of Scotland Group PLC		Banks			2,232		7,184
	Royal Dutch Shell PLC, A		Oil, Gas & Consumable Fuels			2,230		70,132
	Royal Dutch Shell PLC, B		Oil, Gas & Consumable Fuels			1,869		59,132
	Royal Mail PLC		Air Freight & Logistics			446		1,385
	RPC Group PLC		Containers & Packaging			201		2,069
	RSA Insurance Group PLC		Insurance			487		3,222
	Schroders PLC		Capital Markets			53		1,866
	Segro PLC		Equity Real Estate Investment Trusts (REITs	)		534		4,686
	Severn Trent PLC		Water Utilities			114		2,935
	Smith & Nephew PLC		Health Care Equipment & Supplies			446		8,851
	Smiths Group PLC		Industrial Conglomerates			196		3,665
	Spirax-Sarco Engineering PLC		Machinery			36		3,373
	SSE PLC		Electric Utilities			504		7,795
	St. James’s Place Capital PLC		Capital Markets			257		3,443
	Standard Chartered PLC		Banks			1,349		10,394
	Standard Life Aberdeen PLC		Diversified Financial Services			1,281		4,406
	Subsea 7 SA		Energy Equipment & Services			125		1,549
	Tate & Lyle PLC		Food Products			227		2,147
	Taylor Wimpey PLC		Household Durables			1,669		3,816
	TechnipFMC PLC		Energy Equipment & Services			225		5,265
	Tesco PLC		Food & Staples Retailing			4,788		14,481
	The Berkeley Group Holdings PLC		Household Durables			62		2,980
	The Sage Group PLC		Software			529		4,833
	Travis Perkins PLC		Trading Companies & Distributors			125		2,233
	Unilever NV, IDR		Personal Products			754		43,838



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STATEMENT OF INVESTMENTS

Franklin FTSE Europe Hedged ETF(continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	United Kingdom (continued)
	Unilever PLC		Personal Products		552	$	31,613
	United Utilities Group PLC		Water Utilities		334		3,544
	Vodafone Group PLC		Wireless Telecommunication Services		13,302		24,232
	Weir Group PLC		Machinery		125		2,538
	Whitbread PLC		Hotels, Restaurants & Leisure		90		5,955
	William Morrison Supermarkets PLC		Food & Staples Retailing		1,059		3,140
	WPP PLC		Media		611		6,455


							1,241,995

	United States 0.1%
	Carnival PLC		Hotels, Restaurants & Leisure		85		4,170

	Total Common Stocks and Other Equity Interests (Cost $5,087,105)						4,389,605

	Preferred Stocks 0.8%
	Germany 0.7%
d	Bayerische Motoren Werke AG, 6.860%, pfd.		Automobiles		29		1,908
d	Fuchs Petrolub SE, 2.480%, pfd.		Chemicals		34		1,401
d	Henkel AG & Co. KGaA, 1.967%, pfd.		Household Products		87		8,890
d	Porsche Automobil Holding SE, 3.146%, pfd.		Automobiles		77		4,836
d	RWE AG, 6.316%, pfd.		Multi-Utilities		19		507
d	Sartorius AG, 0.739%, pfd.		Health Care Equipment & Supplies		17		2,919
d	Volkswagen AG, 2.822%, pfd.		Automobiles		91		14,338


							34,799

	Spain 0.1%
d	Grifols SA, 2.342%, pfd., B		Biotechnology		128		2,541

	Total Preferred Stocks (Cost $49,694)						37,340

	Short Term Investments (Cost $38) 0.0%^†
	United States 0.0%^†
e,f	Institutional Fiduciary Trust Portfolio, 2.10%				38		38

	Total Investments (Cost $5,136,837) 97.0%						4,426,983
	Other Assets, less Liabilities 3.0%						135,824

	Net Assets 100.0%					$	4,562,807

^†Rounds to less than 0.1% of net assets.

^aNon-income producing.

^dVariable rate security. The rate shown represents the yield at period end.

^eSee Note 3(c) regarding investments in affiliated management investment companies.

^fThe rate shown is the annualizedseven-day effective yield at period end.



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STATEMENT OF INVESTMENTS

Franklin FTSE Europe Hedged ETF(continued)

At March 31, 2019, the Fund had the following forward exchange contracts outstanding. See Note 1(c).


Forward Exchange Contracts

Currency	Counterparty^a		Type		Quantity		Contract Amount		Settlement Date		Unrealized Appreciation		Unrealized Depreciation
OTC Forward Exchange Contracts
Danish Krone		BOFA		BUY		3,211,020	$	483,909		4/2/2019	$	6	$	(957	)
Danish Krone		BOFA		SELL		3,211,020		491,321		4/2/2019		8,363		—
Euro		BOFA		BUY		2,574,548		2,896,026		4/2/2019		21		(5,216	)
Euro		BOFA		SELL		2,574,548		2,938,702		4/2/2019		47,872		—
Euro		HSBK		BUY		2,574,548		2,895,731		4/2/2019		365		(5,265	)
Euro		HSBK		SELL		2,574,548		2,938,674		4/2/2019		47,843		—
Euro		UBSW		BUY		2,574,548		2,896,025		4/2/2019		14		(5,208	)
Euro		UBSW		SELL		2,574,548		2,938,556		4/2/2019		47,725		—
Great British Pound		BOFA		BUY		3,798,160		4,990,093		4/2/2019		37		(40,936	)
Great British Pound		BOFA		SELL		3,798,160		5,059,369		4/2/2019		110,175		—
Norwegian Krone		BOFA		BUY		1,772,680		204,845		4/2/2019		1,003		—
Norwegian Krone		BOFA		SELL		1,772,680		207,680		4/2/2019		1,832		—
Polish Zloty		BOFA		BUY		394,770		103,224		4/2/2019		2		(256	)
Polish Zloty		BOFA		SELL		394,770		104,577		4/2/2019		1,607		—
Swedish Krona		BOFA		BUY		6,763,785		726,841		4/2/2019		2,410		(26	)
Swedish Krona		BOFA		SELL		6,763,785		734,401		4/2/2019		5,175		—
Swiss Franc		MSCO		BUY		2,434,590		2,440,633		4/2/2019		6,233		(2,253	)
Swiss Franc		MSCO		SELL		2,434,590		2,450,470		4/2/2019		5,857		—
Danish Krone		BOFA		SELL		846,081		127,596		5/2/2019		—		(6	)
Great British Pound		BOFA		SELL		981,937		1,281,399		5/2/2019		—		(49	)
Euro		BOFA		SELL		663,960		747,454		5/3/2019		—		(21	)
Euro		HSBK		SELL		663,960		747,090		5/3/2019		—		(385	)
Euro		UBSW		SELL		663,960		747,438		5/3/2019		—		(37	)
Norwegian Krone		BOFA		SELL		470,473		54,696		5/3/2019		—		(3	)
Swedish Krona		BOFA		SELL		1,754,942		189,634		5/3/2019		—		(11	)
Swiss Franc		MSCO		SELL		626,199		630,518		5/3/2019		—		(109	)
Polish Zloty		BOFA		SELL		99,594		26,003		5/6/2019		—		(2	)

Total Forward Exchange Contracts											$	286,540	$	(60,740	)

Net unrealized appreciation (depreciation)													$	225,800

^aMay be comprised of multiple contracts with the same counterparty, currency and settlement date.

At March 31, 2019, 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

EURO STOXX 50 Index

Long

110,219

6/21/19

907

*As of period end.

See Abbreviations on page 322.

See Note 7 regarding other derivative information.



204	Annual Report \| The accompanying notes are an integral part of these financial statements.	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin FTSE France ETF



	Year Ended March 31,

	2019			2018^a

Per share operating performance (for a share outstanding throughout the year)

Net asset value, beginning of year	$	25.33		$	25.32


Income from investment operations^b:

Net investment income^c		0.70			0.08

Net realized and unrealized gains (losses)		(1.48	)		(0.01	)


Total from investment operations		(0.78	)		0.07


Less distributions from net investment income		(0.69	)		(0.06	)


Net asset value, end of year	$	23.86		$	25.33


Total return^d		(3.07)%			0.26%

Ratios to average net assets^e

Total expenses		0.09%			0.09%

Net investment income		2.90%			0.78%

Supplemental data

Net assets, end of year (000’s)		$2,386			$2,533

Portfolio turnover rate^f		5.80%			1.90%

^aFor the period November 2, 2017 (commencement of operations) to March 31, 2018.

^cBased on average daily shares outstanding.

^eRatios are annualized for periods less than one year.

^fPortfolio turnover rate excludes the value of portfolio securities received or delivered as a result of processing capital share transactions in Creation Units, if any.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	205

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2019

Franklin FTSE France ETF



		Industry			Shares		Value
	Common Stocks 99.8%
	France 97.8%
	Accor SA		Hotels, Restaurants & Leisure			324	$	13,137
	Aeroports de Paris SA		Transportation Infrastructure			46		8,905
a	AirFrance-KLM		Airlines			344		3,872
	Air Liquide SA		Chemicals			674		85,783
	Airbus SE		Aerospace & Defense			882		116,763
b	ALD SA, 144A		Road & Rail			124		1,733
	Alstom SA		Machinery			248		10,754
	Amundi SA		Capital Markets			92		5,795
	Arkema SA		Chemicals			116		11,053
	Atos SE		IT Services			148		14,292
	AXA SA		Insurance			3,092		77,874
	Biomerieux		Health Care Equipment & Supplies			68		5,627
	BNP Paribas SA		Banks			1,738		83,154
	Bollore		Air Freight & Logistics			1,574		7,119
	Bouygues SA		Construction & Engineering			336		12,016
	Bureau Veritas SA		Professional Services			438		10,279
	Capgemini SE		IT Services			250		30,345
	Carrefour SA		Food & Staples Retailing			892		16,676
	Casino Guichard-Perrachon SA		Food & Staples Retailing			88		3,819
	Cie Generale des Etablissements Michelin SCA		Auto Components			282		33,374
	CNP Assurances		Insurance			252		5,552
	Compagnie de Saint-Gobain		Building Products			790		28,661
	Covivio		Equity Real Estate Investment Trusts (REITs	)		70		7,436
	Credit Agricole SA		Banks			1,826		22,082
	Danone SA		Food Products			958		73,889
	Dassault Aviation SA		Aerospace & Defense			4		5,906
	Dassault Systemes		Software			212		31,600
	Edenred		Commercial Services & Supplies			380		17,311
	EDF SA		Electric Utilities			794		10,868
	Eiffage SA		Construction & Engineering			120		11,542
	Elis SA		Commercial Services & Supplies			300		4,827
	Engie SA		Multi-Utilities			2,626		39,158
	EssilorLuxottica SA		Textiles, Apparel & Luxury Goods			464		50,735
	Eurazeo SE		Diversified Financial Services			76		5,718
	Eutelsat Communications SA		Media			300		5,253
	Faurecia SA		Auto Components			118		4,966
	Gecina SA		Equity Real Estate Investment Trusts (REITs	)		84		12,431
	Getlink SE		Transportation Infrastructure			720		10,926
	Hermes International		Textiles, Apparel & Luxury Goods			50		33,023
	ICADE		Equity Real Estate Investment Trusts (REITs	)		52		4,403
	Iliad SA		Diversified Telecommunication Services			38		3,819
	Imerys SA		Construction Materials			58		2,894
	Ingenico Group SA		Electronic Equipment, Instruments & Components			100		7,144
	Ipsen SA		Pharmaceuticals			54		7,410
	JCDecaux SA		Media			118		3,593
	Kering SA		Textiles, Apparel & Luxury Goods			119		68,306
	Klepierre SA		Equity Real Estate Investment Trusts (REITs	)		318		11,133
	L’Oreal SA		Personal Products			388		104,473	��
	Lagardere SCA		Media			186		4,787
	Legrand SA		Electrical Equipment			426		28,537
	LVMH Moet Hennessy Louis Vuitton SE		Textiles, Apparel & Luxury Goods			398		146,537
	Natixis SA		Capital Markets			1,332		7,136
	Orange SA		Diversified Telecommunication Services			3,072		50,016
	Orpea		Health Care Providers & Services			72		8,650
	Pernod Ricard SA		Beverages			340		61,083
	Peugeot SA		Automobiles			870		21,237
	Plastic Omnium SA		Auto Components			88		2,345
	Publicis Groupe		Media			338		18,115



206	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE France ETF(continued)



		Industry		Shares		Value
	Common Stocks (continued)
	France (continued)
	Remy Cointreau SA		Beverages		40	$	5,340
	Renault SA		Automobiles		296		19,580
	Rexel SA		Trading Companies & Distributors		482		5,442
	Rubis SCA		Gas Utilities		136		7,425
	Safran SA		Aerospace & Defense		522		71,654
	Sanofi		Pharmaceuticals		1,742		154,016
	Sartorius Stedim Biotech		Life Sciences Tools & Services		38		4,817
	Schneider Electric SE		Electrical Equipment		822		64,553
	SCOR SE		Insurance		250		10,656
	SEB SA		Household Durables		44		7,411
	Societe BIC SA		Commercial Services & Supplies		40		3,568
	Societe Generale SA		Banks		1,158		33,514
	Sodexo SA		Hotels, Restaurants & Leisure		138		15,210
	Suez		Multi-Utilities		584		7,744
	Teleperformance		Professional Services		92		16,549
	Thales SA		Aerospace & Defense		160		19,178
	Total SA		Oil, Gas & Consumable Fuels		4,004		222,637
a	UbiSoft Entertainment SA		Entertainment		136		12,119
	Valeo SA		Auto Components		380		11,030
	Veolia Environnement SA		Multi-Utilities		798		17,858
	Vinci SA		Construction & Engineering		748		72,835
	Vivendi SA		Media		1,536		44,549
	Wendel SA		Diversified Financial Services		46		5,800
a,c	Worldline SA, Reg S		IT Services		64		3,794


							2,333,151

	Luxembourg 0.7%
	Eurofins Scientific SE		Life Sciences Tools & Services		18		7,458
	SES SA, IDR		Media		560		8,718


							16,176

	Switzerland 0.6%
	STMicroelectronics NV		Semiconductors & Semiconductor Equipment		1,016		15,019

	United Kingdom 0.7%
	TechnipFMC PLC		Energy Equipment & Services		734		17,176

	Total Investments (Cost $2,516,930) 99.8%						2,381,522
	Other Assets, less Liabilities 0.2%						4,900

	Net Assets 100.0%					$	2,386,422

See Abbreviations on page 322.

^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. This security has been deemed liquid under guidelines approved by the Trust’s Board of Trustees. At March 31, 2019, the value of this security was $1,733, representing 0.1% 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. This security has been deemed liquid under guidelines approved by the Fund’s Board of Trustees. At March 31, 2019, the value of this security was $3,794, representing 0.2% of net assets.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	207

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin FTSE Germany ETF



	Year Ended March 31,

	2019			2018^a

Per share operating performance (for a share outstanding throughout the year)

Net asset value, beginning of year	$	24.60		$	25.55


Income from investment operations^b:

Net investment income^c		0.53			0.05

Net realized and unrealized gains (losses)		(3.83	)		(1.00	)


Total from investment operations		(3.30	)		(0.95	)


Less distributions from net investment income		(0.60	)		—


Net asset value, end of year	$	20.70		$	24.60


Total return^d		(13.72)%			(3.72)%

Ratios to average net assets^e

Total expenses		0.09%			0.09%

Net investment income		2.44%			0.52%

Supplemental data

Net assets, end of year (000’s)		$4,140			$2,460

Portfolio turnover rate^f		10.75%			1.75%

^aFor the period November 2, 2017 (commencement of operations) to March 31, 2018.

^cBased on average daily shares outstanding.

^eRatios are annualized for periods less than one year.

^fPortfolio turnover rate excludes the value of portfolio securities received or delivered as a result of processing capital share transactions in Creation Units, if any.



208	Annual Report \| The accompanying notes are an integral part of these financial statements.	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2019

Franklin FTSE Germany ETF



		Industry		Shares		Value
	Common Stocks 93.9%
	Germany 93.0%
	1&1 Drillisch AG		Wireless Telecommunication Services		160	$	5,702
	Adidas AG		Textiles, Apparel & Luxury Goods		648		157,600
	Allianz SE		Insurance		1,448		322,381
	Aroundtown SA		Real Estate Management & Development		2,308		19,048
	Axel Springer SE		Media		152		7,858
	BASF SE		Chemicals		3,140		231,042
	Bayer AG		Pharmaceuticals		3,204		207,222
	Bayerische Motoren Werke AG		Automobiles		1,100		84,915
	Beiersdorf AG		Personal Products		344		35,822
	Brenntag AG		Trading Companies & Distributors		528		27,212
	Carl Zeiss Meditec AG		Health Care Equipment & Supplies		124		10,366
a	Commerzbank AG		Banks		3,556		27,551
	Continental AG		Auto Components		372		56,055
b	Covestro AG, 144A		Chemicals		548		30,163
	Daimler AG		Automobiles		2,952		173,191
a,b	Delivery Hero SE, 144A		Internet & Direct Marketing Retail		372		13,450
	Deutsche Bank AG		Capital Markets		7,012		57,161
	Deutsche Boerse AG		Capital Markets		628		80,599
	Deutsche Lufthansa AG		Airlines		804		17,663
	Deutsche Post AG		Air Freight & Logistics		3,332		108,499
	Deutsche Telekom AG		Diversified Telecommunication Services		11,076		184,001
	Deutsche Wohnen SE		Real Estate Management & Development		1,216		59,026
a,b	DWS Group GmbH & Co. KGaA, 144A		Capital Markets		120		4,177
	E.ON SE		Multi-Utilities		7,436		82,760
	Evonik Industries AG		Chemicals		572		15,594
	Fielmann AG		Specialty Retail		84		5,801
	Fraport AG Frankfurt Airport Services Worldwide		Transportation Infrastructure		124		9,501
	Fresenius Medical Care AG & Co. KGaA		Health Care Providers & Services		728		58,774
	Fresenius SE and Co. KGaA		Health Care Providers & Services		1,392		77,775
	Fuchs Petrolub SE		Chemicals		116		4,572
	GEA Group AG		Machinery		564		14,787
	Grenkeleasing AG		Consumer Finance		92		8,951
	Hannover Rueck SE		Insurance		208		29,895
b	Hapag-Lloyd AG, 144A		Marine		96		3,040
	HeidelbergCement AG		Construction Materials		512		36,886
	Hella GmbH & Co. KGaA		Auto Components		152		6,690
	Henkel AG & Co. KGaA		Household Products		348		33,116
	Hochtief AG		Construction & Engineering		68		9,850
	Hugo Boss AG		Textiles, Apparel & Luxury Goods		220		15,039
	Infineon Technologies AG		Semiconductors & Semiconductor Equipment		3,880		77,047
a	Innogy SE		Multi-Utilities		476		20,390
	K+S AG		Chemicals		656		12,036
	KION Group AG		Machinery		240		12,555
a	Knorr-Bremse AG		Machinery		164		16,303
	Lanxess AG		Chemicals		312		16,655
	LEG Immobilien AG		Real Estate Management & Development		216		26,545
	Merck KGaA		Pharmaceuticals		444		50,677
	METRO AG		Food & Staples Retailing		572		9,499
	MTU Aero Engines AG		Aerospace & Defense		176		39,880
	Muenchener Rueckversicherungs-Gesellschaft Aktiengesellschaft in Muenchen		Insurance		512		121,304
	Osram Licht AG		Electrical Equipment		300		10,335
	ProSiebenSat.1 Media SE		Media		780		11,140
	Puma SE		Textiles, Apparel & Luxury Goods		28		16,254
	Rational AG		Machinery		12		7,411
	Rheinmetall AG		Industrial Conglomerates		148		15,435
a,b	Rocket Internet SE, 144A		Internet & Direct Marketing Retail		228		5,786
	RWE AG		Multi-Utilities		1,832		49,164



franklintempleton.com	Annual Report	209

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Germany ETF(continued)



		Industry		Shares		Value
	Common Stocks (continued)
	Germany (continued)
	SAP SE		Software		3,324	$	384,432
b,c	Scout24 AG, Reg S, 144A		Interactive Media & Services		368		19,074
	Siemens AG		Industrial Conglomerates		2,632		283,535
b	Siemens Healthineers AG, 144A		Health Care Equipment & Supplies		448		18,688
	Suedzucker AG		Food Products		268		3,421
	Symrise AG		Chemicals		432		38,961
a	Talanx AG		Insurance		128		4,938
	Telefonica Deutschland Holding AG		Diversified Telecommunication Services		2,256		7,090
	thyssenkrupp AG		Metals & Mining		1,592		21,889
	Uniper SE		Independent Power and Renewable Electricity Producers		668		20,169
	United Internet AG		Diversified Telecommunication Services		396		14,464
	Volkswagen AG		Automobiles		108		17,596
	Vonovia SE		Real Estate Management & Development		1,780		92,379
	Wacker Chemie AG		Chemicals		52		4,484
	Wirecard AG		IT Services		392		49,166
a,b	Zalando SE, 144A		Internet & Direct Marketing Retail		472		18,417


							3,850,854

	Luxembourg 0.2%
	RTL Group SA		Media		132		7,218

	Netherlands 0.7%
a	QIAGEN NV		Life Sciences Tools & Services		748		30,354

	Total Common Stocks (Cost $4,373,082)						3,888,426

	Preferred Stocks 5.8%
	Germany 5.8%
d	Bayerische Motoren Werke AG, 6.860%, pfd.		Automobiles		192		12,633
d	Fuchs Petrolub SE, 2.480%, pfd.		Chemicals		236		9,725
d	Henkel AG & Co. KGaA, 1.967%, pfd.		Household Products		600		61,308
d	Porsche Automobil Holding SE, 3.146%, pfd.		Automobiles		524		32,914
d	RWE AG, 6.316%, pfd.		Multi-Utilities		132		3,520
d	Sartorius AG, 0.739%, pfd.		Health Care Equipment & Supplies		116		19,915
d	Volkswagen AG, 2.822%, pfd.		Automobiles		628		98,947

	Total Preferred Stocks (Cost $272,890)						238,962

	Total Investments (Cost $4,645,972) 99.7%						4,127,388
	Other Assets, less Liabilities 0.3%						12,777

	Net Assets 100.0%					$	4,140,165

^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. These securities have been deemed liquid under guidelines approved by the Fund’s Board of Trustees. At March 31, 2019, the aggregate value of these securities was $112,795, representing 2.7% of net assets.

^dVariable rate security. The rate shown represents the yield at period end.



210	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



	Year Ended March 31,

	2019			2018^a

Per share operating performance (for a share outstanding throughout the year)

Net asset value, beginning of year	$	26.17		$	25.30


Income from investment operations^b:

Net investment income^c		0.66			0.16

Net realized and unrealized gains (losses)		0.59			0.78


Total from investment operations		1.25			0.94


Less distributions from net investment income		(0.60	)		(0.07	)


Net asset value, end of year	$	26.82		$	26.17


Total return^d		4.97%			3.70%

Ratios to average net assets^e

Total expenses		0.09%			0.09%

Net investment income		2.67%			1.49%

Supplemental data

Net assets, end of year (000’s)		$20,118			$7,852

Portfolio turnover rate^f		5.33%			0.93%

^aFor the period November 2, 2017 (commencement of operations) to March 31, 2018.

^cBased on average daily shares outstanding.

^eRatios are annualized for periods less than one year.

^fPortfolio turnover rate excludes the value of portfolio securities received or delivered as a result of processing capital share transactions in Creation Units, if any.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	211

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2019

Franklin FTSE Hong Kong ETF



		Industry			Shares		Value
	Common Stocks 99.5%
	Cambodia 0.4%
	NagaCorp Ltd.		Hotels, Restaurants & Leisure			50,000	$	69,937

	China 7.0%
	AAC Technologies Holdings Inc.		Electronic Equipment, Instruments & Components			22,500		133,138
a	China Mengniu Dairy Co. Ltd.		Food Products			85,000		316,180
	China Travel International Investment Hong Kong Ltd.		Hotels, Restaurants & Leisure			80,000		20,382
a	FIH Mobile Ltd.		Electronic Equipment, Instruments & Components			105,000		11,637
	Guotai Junan International holdings Ltd.		Capital Markets			100,000		20,255
	Kerry Logistics Network Ltd.		Air Freight & Logistics			17,500		31,656
	Lenovo Group Ltd.		Technology Hardware, Storage & Peripherals			240,000		215,849
	Minth Group Ltd.		Auto Components			23,050		72,527
a	MMG Ltd.		Metals & Mining			80,000		32,510
	Nexteer Automotive Group Ltd.		Auto Components			25,000		30,892
a	Semiconductor Manufacturing International Corp.		Semiconductors & Semiconductor Equipment			97,500		98,619
	Shougang Fushan Resources Group Ltd.		Metals & Mining			120,000		27,516
	Shui On Land Ltd.		Real Estate Management & Development			112,500		27,803
	Tingyi Cayman Islands Holding Corp.		Food Products			60,000		98,905
a	Towngas China Co. Ltd.		Gas Utilities			35,000		27,510
	Uni-President China Holdings Ltd.		Food Products			35,000		34,331
	Want Want China Holdings Ltd.		Food Products			180,000		149,504
	Xinyi Solar Holdings Ltd.		Semiconductors & Semiconductor Equipment			100,000		48,153


								1,397,367

	Hong Kong 90.5%
	AIA Group Ltd.		Insurance			395,000		3,932,414
	ASM Pacific Technology Ltd.		Semiconductors & Semiconductor Equipment			10,000		111,529
	BOC Hong Kong (Holdings) Ltd.		Banks			117,500		486,468
	Cafe de Coral Holdings Ltd.		Hotels, Restaurants & Leisure			10,000		25,452
	Cathay Pacific Airways Ltd.		Airlines			20,000		35,007
	Champion REIT		Equity Real Estate Investment Trusts (REITs	)		65,000		56,306
	Chow Tai Fook Jewellery Co. Ltd.		Specialty Retail			37,000		37,425
	CK Asset Holdings Ltd.		Real Estate Management & Development			87,500		778,030
	CK Hutchison Holdings Ltd.		Industrial Conglomerates			87,500		919,035
	CK Infrastructure Holdings Ltd.		Electric Utilities			20,000		164,205
	CLP Holdings Ltd.		Electric Utilities			53,500		620,195
	Dah Sing Banking Group Ltd.		Banks			12,000		22,533
	Dah Sing Financial Group		Banks			4,000		20,968
	Dairy Farm International Holdings Ltd.		Food & Staples Retailing			10,000		83,900
	First Pacific Co. Ltd.		Diversified Financial Services			70,000		25,503
	Galaxy Entertainment Group Ltd.		Hotels, Restaurants & Leisure			70,000		476,627
	Great Eagle Holdings Ltd.		Real Estate Management & Development			10,000		50,956
	Haitong International Securities Group Ltd.		Capital Markets			80,000		31,491
	Hang Lung Group Ltd.		Real Estate Management & Development			30,000		96,306
	Hang Lung Properties Ltd.		Real Estate Management & Development			65,000		158,651
	Hang Seng Bank Ltd.		Banks			23,500		579,870
	Henderson Land Development Co. Ltd.		Real Estate Management & Development			40,000		254,269
	Hong Kong and China Gas Co. Ltd.		Gas Utilities			295,000		707,253
	Hong Kong Exchanges and Clearing Ltd.		Capital Markets			40,500		1,411,576
	Hongkong Land Holdings Ltd.		Real Estate Management & Development			38,000		270,180
	Hopewell Holdings Ltd.		Industrial Conglomerates			20,000		98,345
	Huabao International Holdings Ltd.		Chemicals			25,000		12,675
	Hutchison Telecommunications Hong Kong Holdings Ltd.		Wireless Telecommunication Services			40,000		17,019
	Hysan Development Co. Ltd.		Real Estate Management & Development			20,000		107,135
	Jardine Matheson Holdings Ltd.		Industrial Conglomerates			7,000		436,520
	Jardine Strategic Holdings Ltd.		Industrial Conglomerates			6,000		224,580
	Johnson Electric Holdings Ltd.		Electrical Equipment			10,000		23,159



212	Annual Report	franklintempleton.com

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STATEMENT OF INVESTMENTS

Franklin FTSE Hong Kong ETF(continued)



		Industry			Shares		Value
	Common Stocks (continued)
	Hong Kong (continued)
	Kerry Properties Ltd.		Real Estate Management & Development			20,000	$	89,300
	Li & Fung Ltd.		Textiles, Apparel & Luxury Goods			180,000		32,331
	Lifestyle International Holdings Ltd.		Multiline Retail			15,000		25,987
	Link REIT		Equity Real Estate Investment Trusts (REITs	)		68,000		795,215
	Melco International Development Ltd.		Hotels, Restaurants & Leisure			25,000		58,599
	MGM China Holdings Ltd.		Hotels, Restaurants & Leisure			24,000		50,202
	MTR Corp. Ltd.		Road & Rail			47,500		294,078
	New World Development Co. Ltd.		Real Estate Management & Development			185,000		306,843
	NWS Holdings Ltd.		Industrial Conglomerates			45,000		98,370
	PCCW Ltd.		Diversified Telecommunication Services			135,000		83,924
	Power Assets Holdings Ltd.		Electric Utilities			42,000		291,327
	Sa Sa International Holdings Ltd.		Specialty Retail			40,000		13,656
a	Samsonite International SA		Textiles, Apparel & Luxury Goods			42,000		134,561
	Sands China Ltd.		Hotels, Restaurants & Leisure			78,000		391,990
	Shangri-La Asia Ltd.		Hotels, Restaurants & Leisure			40,000		56,867
	Shun Tak Holdings Ltd.		Industrial Conglomerates			60,000		23,847
	Sino Land Co. Ltd.		Real Estate Management & Development			100,000		193,377
	Sun Art Retail Group Ltd.		Food & Staples Retailing			72,500		70,653
	Sun Hung Kai Properties Ltd.		Real Estate Management & Development			46,500		797,910
	Swire Pacific Ltd., A		Real Estate Management & Development			17,500		225,161
	Swire Pacific Ltd., B		Real Estate Management & Development			25,000		50,000
	Swire Properties Ltd.		Real Estate Management & Development			34,000		146,179
	Techtronic Industries Co. Ltd.		Household Durables			40,000		268,792
	Television Broadcasts Ltd.		Media			10,000		19,389
	The Bank of East Asia Ltd.		Banks			40,000		129,937
	The Wharf Holdings Ltd.		Real Estate Management & Development			40,000		120,765
	United Energy Group Ltd.		Oil, Gas & Consumable Fuels			240,000		46,472
	Vitasoy International Holdings Ltd.		Food Products			26,000		125,861
	VTech Holdings Ltd.		Communications Equipment			5,000		51,115
b	WH Group Ltd., Reg S		Food Products			272,500		291,594
	Wharf Real Estate Investment Co. Ltd.		Real Estate Management & Development			40,000		297,836
	Wheelock and Co. Ltd.		Real Estate Management & Development			27,300		199,969
	Xinyi Glass Holdings Ltd.		Auto Components			70,000		80,255
	Yue Yuen Industrial Holdings Ltd.		Textiles, Apparel & Luxury Goods			22,500		77,389


								18,215,333

	Italy 0.2%
	Prada SpA		Textiles, Apparel & Luxury Goods			16,500		49,080

	Luxembourg 0.1%
	L’Occitane International SA		Specialty Retail			15,000		27,822

	Macau 0.9%
	Macau Legend Development Ltd.		Hotels, Restaurants & Leisure			45,000		7,624
	SJM Holdings Ltd.		Hotels, Restaurants & Leisure			60,000		68,484
	Wynn Macau Ltd.		Hotels, Restaurants & Leisure			48,000		113,122


								189,230

	Singapore 0.3%
	BOC Aviation Ltd.		Trading Companies & Distributors			7,000		57,115

	Taiwan 0.1%
	FIT Hon Teng Ltd.		Electronic Equipment, Instruments & Components			35,000		16,943

	Total Investments (Cost $18,270,341) 99.5%							20,022,827
	Other Assets, less Liabilities 0.5%							94,870

	Net Assets 100.0%						$	20,117,697



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STATEMENT OF INVESTMENTS

Franklin FTSE Hong Kong ETF(continued)

^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. This security has been deemed liquid under guidelines approved by the Fund’s Board of Trustees. At March 31, 2019, the value of this security was $291,594, representing 1.4% of net assets.

At March 31, 2019, 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

HKG Mini Hang Seng Index

Long

74,082

4/29/19

—

*As of period end.

See Abbreviations on page 322.

See Note 7 regarding other derivative information.



214	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



	Year Ended March 31,

	2019			2018^a

Per share operating performance (for a share outstanding throughout the year)

Net asset value, beginning of year	$	22.74		$	23.72


Income from investment operations^b:

Net investment income^c		0.29			0.09

Net realized and unrealized gains (losses)		0.53			(1.07	)


Total from investment operations		0.82			(0.98	)


Less distributions from net investment income		(0.20	)		—


Net asset value, end of year	$	23.36		$	22.74


Total return^d		3.66%			(4.13)%

Ratios to average net assets^e

Total expenses		0.19%			0.19%

Net investment income		1.33%			2.78%

Supplemental data

Net assets, end of year (000’s)		$7,007			$2,274

Portfolio turnover rate^f		8.03%			1.59%

^aFor the period February 6, 2018 (commencement of operations) to March 31, 2018.

^cBased on average daily shares outstanding.

^eRatios are annualized for periods less than one year.

^fPortfolio turnover rate excludes the value of portfolio securities received or delivered as a result of processing capital share transactions in Creation Units, if any.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	215

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2019

Franklin FTSE India ETF



		Industry		Shares		Value
	Common Stocks and Other Equity Interests 100.1%
	India 100.1%
a	3M India Ltd.		Industrial Conglomerates		24	$	8,405
	ABB India Ltd.		Electrical Equipment		642		12,196
	ACC Ltd.		Construction Materials		576		13,855
	Adani Enterprises Ltd.		Trading Companies & Distributors		3,366		7,130
	Adani Ports And Special Economic Zone Ltd.		Transportation Infrastructure		8,838		48,244
a	Adani Power Ltd.		Independent Power and Renewable Electricity Producers		11,694		8,136
a	Adani Transmissions Ltd.		Electric Utilities		3,462		10,865
a	Aditya Birla Capital Ltd.		Diversified Financial Services		6,600		9,260
	Alkem Laboratories Ltd.		Pharmaceuticals		504		12,738
	Ambuja Cements Ltd.		Construction Materials		9,798		33,280
	Ashok Leyland Ltd.		Machinery		14,796		19,500
	Asian Paints Ltd.		Chemicals		3,648		78,605
	Aurobindo Pharma Ltd.		Pharmaceuticals		3,354		37,970
a	Avenue Supermarts Ltd.		Food & Staples Retailing		1,482		31,471
a	Axis Bank Ltd.		Banks		22,698		254,667
	Bajaj Auto Ltd.		Automobiles		1,104		46,393
	Bajaj Finance Ltd.		Consumer Finance		2,190		95,630
	Bajaj Finserv Ltd.		Insurance		480		48,759
	Bajaj Holdings & Investment Ltd.		Diversified Financial Services		336		16,571
	Bandhan Bank Ltd.		Banks		1,500		11,395
a	Bank of Baroda		Banks		8,676		16,112
a	Bank of India		Banks		3,738		5,625
	Berger Paints India Ltd.		Chemicals		2,946		13,768
	Bharat Electronics Ltd.		Aerospace & Defense		7,398		9,958
	Bharat Forge Ltd.		Auto Components		2,352		17,397
	Bharat Heavy Electricals Ltd.		Electrical Equipment		10,584		11,451
	Bharat Petroleum Corp. Ltd.		Oil, Gas & Consumable Fuels		12,630		72,480
	Bharti Airtel Ltd.		Wireless Telecommunication Services		16,158		77,694
	Bharti Infratel Ltd.		Diversified Telecommunication Services		10,902		49,321
	Biocon Ltd.		Biotechnology		1,794		15,811
	Bosch Ltd.		Auto Components		93		24,413
	Britannia Industries Ltd.		Food Products		732		32,603
	Cadila Healthcare Ltd.		Pharmaceuticals		3,102		15,540
a	Canara Bank Ltd.		Banks		1,926		8,099
	Castrol India Ltd.		Chemicals		6,156		14,787
	Cipla Ltd.		Pharmaceuticals		4,074		31,104
	Coal India Ltd.		Oil, Gas & Consumable Fuels		18,522		63,420
	Colgate-Palmolive India Ltd.		Personal Products		828		15,038
	Container Corp. of India Ltd.		Road & Rail		2,628		19,928
	Cummins India Ltd.		Machinery		846		9,110
	Dabur India Ltd.		Personal Products		6,690		39,478
	Divi’s Laboratories Ltd.		Life Sciences Tools & Services		1,008		24,781
	DLF Ltd.		Real Estate Management & Development		5,340		15,606
	Dr Reddy’s Laboratories Ltd.		Pharmaceuticals		1,032		41,418
	Eicher Motors Ltd.		Automobiles		168		49,831
	Emami Ltd.		Personal Products		1,386		8,003
	Exide Industries Ltd.		Auto Components		2,568		8,107
	Federal Bank Ltd.		Banks		18,426		25,654
a	Future Retail Ltd.		Multiline Retail		2,604		17,060
	GAIL India Ltd.		Gas Utilities		6,876		34,507
	Gillette India Ltd.		Personal Products		96		9,139
	GlaxoSmithKline Consumer Healthcare Ltd.		Food Products		126		13,181
	Glenmark Pharmaceuticals Ltd.		Pharmaceuticals		1,752		16,368
a	GMR Infrastructure Ltd.		Construction & Engineering		18,210		5,205
	Godrej Consumer Products Ltd.		Personal Products		4,662		46,166
	Godrej Industries Ltd.		Industrial Conglomerates		888		6,876



216	Annual Report	franklintempleton.com

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STATEMENT OF INVESTMENTS

Franklin FTSE India ETF(continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	India (continued)
	Grasim Industries Ltd.		Construction Materials		4,056	$	50,232
	Gruh Finance Ltd.		Thrifts & Mortgage Finance		2,202		8,767
	Havell’s India Ltd.		Electrical Equipment		3,042		33,922
	HCL Technologies Ltd.		IT Services		6,834		107,277
	HDFC Asset Management Co. Ltd.		Capital Markets		360		7,971
b	HDFC Life Insurance Co. Ltd., 144A		Insurance		4,824		26,357
	Hero Motocorp Ltd.		Automobiles		1,242		45,774
	Hindalco Industries Ltd.		Metals & Mining		11,328		33,604
	Hindustan Petroleum Corp. Ltd.		Oil, Gas & Consumable Fuels		7,734		31,690
	Hindustan Unilever Ltd.		Household Products		8,964		220,855
	Hindustan Zinc Ltd.		Metals & Mining		3,000		11,989
	Housing Development Finance Corp. Ltd.		Thrifts & Mortgage Finance		21,726		617,282
c	ICICI Lombard General Insurance Co. Ltd., Reg S		Insurance		2,016		30,070
c	ICICI Prudential Life Insurance Co. Ltd., Reg S		Insurance		3,858		19,506
	IDFC First Bank Ltd.		Banks		29,274		23,453
	IDFC Ltd.		Diversified Financial Services		3,246		2,181
	Indiabulls Housing Finance Ltd.		Thrifts & Mortgage Finance		4,128		51,142
	Indian Oil Corp. Ltd.		Oil, Gas & Consumable Fuels		27,756		65,248
	Infosys Ltd.		IT Services		48,090		516,373
c	InterGlobe Aviation Ltd., Reg S		Airlines		1,218		25,110
	ITC Ltd.		Tobacco		37,110		159,234
a	Jindal Steel & Power Ltd.		Metals & Mining		4,890		12,685
a	JSW Energy Ltd.		Independent Power and Renewable Electricity Producers		4,794		5,024
	JSW Steel Ltd.		Metals & Mining		14,964		63,301
	Kansai Nerolac Paints Ltd.		Chemicals		1,632		10,801
	L&T Finance Holdings Ltd.		Diversified Financial Services		6,024		13,265
c	Larsen & Toubro Infotech Ltd., Reg S		IT Services		354		8,700
	Larsen & Toubro Ltd.		Construction & Engineering		4,254		85,068
	LIC Housing Finance Ltd.		Thrifts & Mortgage Finance		3,120		23,969
	Lupin Ltd.		Pharmaceuticals		2,808		29,979
	Mahindra & Mahindra Financial Services Ltd.		Consumer Finance		3,738		22,727
	Mahindra & Mahindra Ltd.		Automobiles		7,356		71,558
	Mangalore Refinery and Petrochemicals Ltd.		Oil, Gas & Consumable Fuels		2,622		2,812
	Marico Ltd.		Personal Products		5,712		28,583
	Maruti Suzuki India Ltd.		Automobiles		1,530		147,369
	Motherson Sumi Systems Ltd.		Auto Components		11,970		25,867
	Mphasis Ltd.		IT Services		930		13,305
	MRF Ltd.		Auto Components		12		10,045
a	Muthoot Finance Ltd.		Consumer Finance		1,212		10,770
	Nestle India Ltd.		Food Products		294		46,518
	NHPC Ltd.		Independent Power and Renewable Electricity Producers		30,702		10,947
	NMDC Ltd.		Metals & Mining		9,723		14,660
	NTPC Ltd.		Independent Power and Renewable Electricity Producers		30,067		58,463
	Odisha Cement Ltd.		Construction Materials		582		8,313
	Oil & Natural Gas Corp. Ltd.		Oil, Gas & Consumable Fuels		39,030		90,004
	Oil India Ltd.		Oil, Gas & Consumable Fuels		3,462		9,268
	Oracle Financial Services Software Ltd.		Software		270		13,204
	Page Industries Ltd.		Textiles, Apparel & Luxury Goods		60		21,629
	Petronet LNG Ltd.		Oil, Gas & Consumable Fuels		6,666		24,205
	Pidilite Industries Ltd.		Chemicals		1,548		27,848
	Piramal Enterprises Ltd.		Pharmaceuticals		1,074		42,840
	Power Finance Corp., Ltd.		Diversified Financial Services		8,028		14,266
	Power Grid Corp. of India Ltd.		Electric Utilities		9,702		27,716
a	Punjab National Bank Ltd.		Banks		9,600		13,234



franklintempleton.com	Annual Report	217

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE India ETF(continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	India (continued)
	Rajesh Exports Ltd.		Textiles, Apparel & Luxury Goods		1,734	$	16,669
c	RBL Bank Ltd., Reg S		Banks		3,948		38,773
	REC Ltd.		Diversified Financial Services		8,316		18,355
	Reliance Capital Ltd.		Diversified Financial Services		1,566		4,623
	Reliance Industries Ltd.		Oil, Gas & Consumable Fuels		39,264		772,669
	Reliance Infrastructure Ltd.		Electric Utilities		1,698		3,358
a	Reliance Power Ltd.		Independent Power and Renewable Electricity Producers		7,140		1,170
	SBI Life Insurance Co. Ltd.		Insurance		1,998		16,826
	Shree Cement Ltd.		Construction Materials		108		29,103
	Shriram Transport Finance Co. Ltd.		Consumer Finance		2,118		39,055
	Siemens Ltd.		Industrial Conglomerates		1,080		17,598
a	State Bank of India		Banks		22,578		104,538
a	Steel Authority of India Ltd.		Metals & Mining		12,480		9,683
	Sun Pharmaceutical Industries Ltd.		Pharmaceuticals		13,848		95,722
	Sun TV Network Ltd.		Media		1,074		9,738
	Tata Communications Ltd.		Diversified Telecommunication Services		858		7,589
	Tata Consultancy Services Ltd.		IT Services		11,394		329,221
a	Tata Motors Ltd.		Automobiles		12,756		32,086
a	Tata Motors Ltd., A		Automobiles		4,890		6,039
	Tata Power Co. Ltd.		Electric Utilities		11,874		12,650
	Tata Steel Ltd.		Metals & Mining		3,648		27,436
	Tech Mahindra Ltd.		IT Services		5,958		66,731
	Titan Co. Ltd.		Textiles, Apparel & Luxury Goods		3,930		64,778
	Torrent Pharmaceuticals Ltd.		Pharmaceuticals		504		14,185
	Torrent Power Ltd.		Electric Utilities		1,458		5,420
	TVS Motor Co. Ltd.		Automobiles		1,416		9,625
	UltraTech Cement Ltd.		Construction Materials		1,320		76,187
a	Union Bank of India Ltd.		Banks		2,934		4,049
	United Breweries Ltd.		Beverages		846		17,034
a	United Spirits Ltd.		Beverages		3,762		30,080
	UPL Ltd.		Chemicals		4,524		62,618
	Vedanta Ltd.		Metals & Mining		21,180		56,393
a	Vodafone Idea Ltd, rts. 4/24/19		Wireless Telecommunication Services		72,421		6,011
a	Vodafone Idea Ltd.		Wireless Telecommunication Services		31,632		8,333
	Voltas Ltd.		Construction & Engineering		1,254		11,394
	Wipro Ltd.		IT Services		18,192		66,912
a	Wockhardt Ltd.		Pharmaceuticals		384		2,456
	Yes Bank Ltd.		Banks		21,564		85,633
	Zee Entertainment Enterprises Ltd.		Media		6,708		43,138

	Total Investments (Cost $6,905,747) 100.1%						7,010,967
	Other Assets, less Liabilities (0.1)%						(3,793	)

	Net Assets 100.0%					$	7,007,174

^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. This security has been deemed liquid under guidelines approved by the Fund’s Board of Trustees. At March 31, 2019, the value of this security was $26,357, representing 0.4% 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. These securities have been deemed liquid under guidelines approved by the Fund’s Board of Trustees. At March 31, 2019, the aggregate value of these securities was $122,159, representing 1.7% of net assets.



218	Annual Report	franklintempleton.com

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STATEMENT OF INVESTMENTS

Franklin FTSE India ETF(continued)

At March 31, 2019, 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

SGX Nifty 50

Long

23,351

4/25/19

420

*As of period end.

See Note 7 regarding other derivative information.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	219

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin FTSE Italy ETF



	Year Ended March 31,

	2019			2018^a

Per share operating performance (for a share outstanding throughout the year)

Net asset value, beginning of year	$	26.27		$	25.51


Income from investment operations^b:

Net investment income^c		0.46			0.11

Net realized and unrealized gains (losses)		(2.99	)		0.70


Total from investment operations		(2.53	)		0.81


Less distributions from net investment income		(0.61	)		(0.05	)


Net asset value, end of year	$	23.13		$	26.27


Total return^d		(9.67)%			3.19%

Ratios to average net assets^e

Total expenses		0.09%			0.09%

Net investment income		2.05%			1.01%

Supplemental data

Net assets, end of year (000’s)		$10,410			$2,627

Portfolio turnover rate^f		16.67%			3.09%

^aFor the period November 2, 2017 (commencement of operations) to March 31, 2018.

^cBased on average daily shares outstanding.

^eRatios are annualized for periods less than one year.

^fPortfolio turnover rate excludes the value of portfolio securities received or delivered as a result of processing capital share transactions in Creation Units, if any.



220	Annual Report \| The accompanying notes are an integral part of these financial statements.	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2019

Franklin FTSE Italy ETF



		Industry		Shares		Value
	Common Stocks 99.9%
	Italy 90.3%
	A2A SpA		Multi-Utilities		50,058	$	91,422
	Assicurazioni Generali SpA		Insurance		36,189		670,474
	Atlantia SpA		Transportation Infrastructure		15,435		400,177
	Banca Mediolanum SpA		Diversified Financial Services		9,342		66,242
a	Banco BPM SpA		Banks		49,158		101,662
	Buzzi Unicem SpA		Construction Materials		2,214		45,332
	Buzzi Unicem SpA, di Risp		Construction Materials		1,296		16,881
	Davide Campari-Milano SpA		Beverages		18,369		180,474
	DiaSorin SpA		Health Care Equipment & Supplies		738		74,331
	Enel SpA		Electric Utilities		207,819		1,331,026
	Eni SpA		Oil, Gas & Consumable Fuels		67,257		1,189,734
	Ferrari NV		Automobiles		3,510		470,974
	FinecoBank Banca Fineco SpA		Banks		12,735		167,662
	Hera SpA		Multi-Utilities		25,947		93,930
	Intesa Sanpaolo SpA		Banks		409,050		997,144
	Italgas Reti SpA		Gas Utilities		15,867		98,061
	Leonardo SpA		Aerospace & Defense		12,546		145,944
a	Mediaset SpA		Media		10,008		30,588
	Mediobanca Banca di Credito Finanziario SpA		Banks		23,589		245,322
	Moncler SpA		Textiles, Apparel & Luxury Goods		5,949		239,940
a	Pirelli & C SpA		Auto Components		13,995		90,169
b	Poste Italiane SpA, Reg S		Insurance		14,958		145,651
	Prysmian SpA		Electrical Equipment		8,487		160,717
	Recordati SpA		Pharmaceuticals		3,096		120,664
a	Saipem SpA		Energy Equipment & Services		18,234		96,535
	Salvatore Ferragamo SpA		Textiles, Apparel & Luxury Goods		2,178		46,759
	Snam SpA		Oil, Gas & Consumable Fuels		68,058		349,922
a	Telecom Italia SpA		Diversified Telecommunication Services		329,832		205,323
	Telecom Italia SpA, di Risp		Diversified Telecommunication Services		184,923		105,149
	Tenaris SA		Energy Equipment & Services		15,147		212,853
	Terna Rete Elettrica Nazionale SpA		Electric Utilities		44,892		284,699
	UniCredit SpA		Banks		61,362		787,393
	Unione di Banche Italiane SpA		Banks		32,958		87,262
	UnipolSai Assicurazioni SpA		Insurance		18,774		50,677


							9,401,093

	Netherlands 2.2%
	EXOR NV		Diversified Financial Services		3,456		224,685

	United Kingdom 7.4%
	CNH Industrial NV		Machinery		30,429		309,691
a	Fiat Chrysler Automobiles NV		Automobiles		30,870		460,039


							769,730

	Total Investments (Cost $9,890,424) 99.9%						10,395,508
	Other Assets, less Liabilities 0.1%						14,875

	Net Assets 100.0%					$	10,410,383

^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. This security has been deemed liquid under guidelines approved by the Fund’s Board of Trustees. At March 31, 2019, the value of this security was $145,651, representing 1.4% of net assets.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	221

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin FTSE Japan ETF



	Year Ended March 31,

	2019			2018^a

Per share operating performance (for a share outstanding throughout the year)

Net asset value, beginning of year	$	26.69		$	25.91


Income from investment operations^b:

Net investment income^c		0.59			0.44

Net realized and unrealized gains (losses)		(2.76	)		0.37


Total from investment operations		(2.17	)		0.81


Less distributions from net investment income		(0.34	)		(0.03	)


Net asset value, end of year	$	24.18		$	26.69


Total return^d		(8.10)%			3.11%

Ratios to average net assets^e

Total expenses		0.09%			0.09%

Net investment income		2.39%			4.07%

Supplemental data

Net assets, end of year (000’s)		$290,205			$96,082

Portfolio turnover rate^f		4.35%			0.93%

^aFor the period November 2, 2017 (commencement of operations) to March 31, 2018.

^cBased on average daily shares outstanding.

^eRatios are annualized for periods less than one year.

^fPortfolio turnover rate excludes the value of portfolio securities received or delivered as a result of processing capital share transactions in Creation Units, if any.



222	Annual Report \| The accompanying notes are an integral part of these financial statements.	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2019

Franklin FTSE Japan ETF



		Industry		Shares		Value
	Common Stocks 98.7%
	Japan 98.7%
	ABC-Mart Inc.		Specialty Retail		2,000	$	119,077
	Acom Co. Ltd.		Consumer Finance		30,000		107,061
	Advantest Corp.		Semiconductors & Semiconductor Equipment		16,000		371,938
	AEON Co. Ltd.		Food & Staples Retailing		56,000		1,172,011
	AEON Financial Service Co. Ltd.		Consumer Finance		10,000		203,551
	AEON Mall Co. Ltd.		Real Estate Management & Development		10,000		164,431
	AGC Inc.		Building Products		14,000		490,762
	Aica Kogyo Co. Ltd.		Building Products		4,000		133,351
a	Aiful Corp.		Consumer Finance		24,000		60,279
	AIN Holdings Inc.		Food & Staples Retailing		2,000		150,337
	Air Water Inc.		Chemicals		12,000		173,899
	Aisin Seiki Co. Ltd.		Auto Components		14,000		500,248
	Ajinomoto Co. Inc.		Food Products		38,000		607,327
	Alfresa Holdings Corp.		Health Care Providers & Services		14,000		398,428
	Alps Alpine Co. Ltd.		Electronic Equipment, Instruments & Components		16,000		333,921
	Amada Holdings Co. Ltd.		Machinery		26,000		257,216
	ANA Holdings Inc.		Airlines		8,000		293,373
	Aoyama Trading Co. Ltd.		Specialty Retail		4,000		90,925
	Aozora Bank Ltd.		Banks		8,000		197,750
a	Aplus Financial Co. Ltd.		Consumer Finance		8,000		6,216
	Ariake Japan Co. Ltd.		Food Products		2,000		106,970
	Asahi Group Holdings Ltd.		Beverages		30,000		1,336,224
	Asahi Intecc Co. Ltd.		Health Care Equipment & Supplies		8,000		375,841
	Asahi Kasei Corp.		Chemicals		100,000		1,031,757
	Asics Corp.		Textiles, Apparel & Luxury Goods		14,000		187,830
	ASKUL Corp.		Internet & Direct Marketing Retail		2,000		49,907
	Astellas Pharma Inc.		Pharmaceuticals		152,000		2,277,562
	Autobacs Seven Co. Ltd.		Specialty Retail		4,000		66,495
	Awa Bank Ltd.		Banks		4,000		101,694
	Azbil Corp.		Electronic Equipment, Instruments & Components		12,000		280,688
	Bandai Namco Holdings Inc.		Leisure Products		16,000		750,237
	Benefit One Inc.		Professional Services		4,000		78,493
	Benesse Holdings Inc.		Diversified Consumer Services		6,000		155,848
	BIC CAMERA Inc.		Specialty Retail		12,000		126,088
	Bridgestone Corp.		Auto Components		48,000		1,850,007
	Brother Industries Ltd.		Technology Hardware, Storage & Peripherals		18,000		333,053
	Calbee Inc.		Food Products		6,000		161,648
	CANON Inc.		Technology Hardware, Storage & Peripherals		82,000		2,380,323
	Canon Marketing Japan Inc.		Distributors		4,000		78,674
	Capcom Co. Ltd.		Entertainment		8,000		179,247
	Casio Computer Co. Ltd.		Household Durables		18,000		234,991
	Central Japan Railway Co.		Road & Rail		14,000		3,251,931
	Chubu Electric Power Co. Inc.		Electric Utilities		56,000		874,518
	Chugai Pharmaceutical Co. Ltd.		Pharmaceuticals		18,000		1,237,566
	Chuo Mitsui Trust Holdings Inc.		Banks		30,000		1,077,653
	Citizen Watch Co. Ltd.		Electronic Equipment, Instruments & Components		22,000		122,636
	Coca-Cola Bottlers Japan Holdings Inc.		Beverages		12,000		304,757
	COMSYS Holdings Corp.		Construction & Engineering		8,000		218,277
	Concordia Financial Group Ltd.		Banks		96,000		370,348
	Cosmo Energy Holdings Co. Ltd.		Oil, Gas & Consumable Fuels		6,000		120,558
	Cosmos Pharmaceutical Corp.		Food & Staples Retailing		500		86,462
	Credit Saison Co. Ltd.		Consumer Finance		12,000		158,504
	CyberAgent Inc.		Media		8,000		326,332
	Dai Nippon Printing Co. Ltd.		Commercial Services & Supplies		24,000		573,953
	Daicel Corp.		Chemicals		22,000		238,912
	Daido Steel Co. Ltd.		Metals & Mining		2,000		78,872
	Daifuku Co. Ltd.		Machinery		8,000		416,317
	Daiichi Sankyo Co. Ltd.		Pharmaceuticals		50,000		2,303,835



franklintempleton.com	Annual Report	223

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Japan ETF(continued)



	Industry		Shares		Value
Common Stocks (continued)
Japan (continued)
Daiichikosho Co. Ltd.		Entertainment		4,000	$	204,544
Daikin Industries Ltd.		Building Products		20,000		2,343,588
Daishi Hokuetsu Financial Group Inc.		Banks		2,000		56,467
Daito Trust Construction Co. Ltd.		Real Estate Management & Development		6,000		836,428
Daiwa House Industry Co. Ltd.		Real Estate Management & Development		52,000		1,653,232
Daiwa Securities Group Inc.		Capital Markets		120,000		584,361
DeNA Co. Ltd.		Entertainment		8,000		120,486
Denka Co. Ltd.		Chemicals		8,000		230,564
Denso Corp.		Auto Components		36,000		1,404,093
Dentsu Inc.		Media		18,000		760,266
DIC Corp.		Chemicals		6,000		175,363
Disco Corp.		Semiconductors & Semiconductor Equipment		2,000		284,953
DMG Mori Co. Ltd.		Machinery		8,000		98,947
Dowa Holdings Co. Ltd.		Metals & Mining		4,000		131,544
East Japan Railway Co.		Road & Rail		30,000		2,894,701
EBARA Corp.		Machinery		8,000		225,505
Eisai Co. Ltd.		Pharmaceuticals		20,000		1,122,645
Electric Power Development Co. Ltd.		Independent Power and Renewable Electricity Producers		14,000		341,004
Exedy Corp.		Auto Components		2,000		43,330
Ezaki Glico Co. Ltd.		Food Products		4,000		210,327
FamilyMart UNY Holdings Co. Ltd.		Food & Staples Retailing		18,000		458,761
Fancl Corp.		Personal Products		6,000		155,035
FANUC Corp.		Machinery		16,000		2,729,186
Fast Retailing Co. Ltd.		Specialty Retail		4,000		1,880,291
FP Corp.		Containers & Packaging		2,000		118,173
Fuji Electric Co. Ltd.		Electrical Equipment		10,000		283,688
Fuji Media Holdings Inc.		Media		4,000		55,220
Fuji Oil Holdings Inc.		Food Products		4,000		136,965
Fuji Seal International Inc.		Containers & Packaging		4,000		144,554
FUJIFILM Holdings Corp.		Technology Hardware, Storage & Peripherals		30,000		1,364,413
Fujikura Ltd.		Electrical Equipment		24,000		90,419
Fujitsu General Ltd.		Household Durables		4,000		56,593
Fujitsu Ltd.		IT Services		14,000		1,010,110
Fukuoka Financial Group Inc.		Banks		12,000		266,269
Fukuyama Transporting Co. Ltd.		Road & Rail		2,000		76,975
Furukawa Electric Co. Ltd.		Electrical Equipment		4,000		100,863
Fuyo General Lease Co. Ltd.		Diversified Financial Services		2,000		99,020
Glory Ltd.		Machinery		4,000		95,984
GMO Internet Inc.		IT Services		4,000		65,194
GMO Payment Gateway Inc.		IT Services		4,000		284,049
Goldwin Inc.		Textiles, Apparel & Luxury Goods		2,000		291,277
GS Yuasa Corp.		Electrical Equipment		6,000		117,685
GungHo Online Entertainment Inc.		Entertainment		30,000		109,229
Gunma Bank Ltd.		Banks		34,000		128,708
H2O Retailing Corp.		Multiline Retail		6,000		83,589
Hachijuni Bank Ltd.		Banks		34,000		140,995
Hakuhodo DY Holdings Inc.		Media		20,000		321,272
Hamamatsu Photonics K.K.		Electronic Equipment, Instruments & Components		10,000		386,683
Hankyu Hanshin Holdings Inc.		Road & Rail		18,000		674,888
Haseko Corp.		Household Durables		22,000		276,677
Heiwa Corp.		Leisure Products		4,000		79,939
Hikari Tsushin Inc.		Specialty Retail		2,000		378,913
Hino Motors Ltd.		Machinery		22,000		185,246
Hirose Electric Co. Ltd.		Electronic Equipment, Instruments & Components		2,000		210,146
HIS Co. Ltd.		Hotels, Restaurants & Leisure		2,000		73,542
Hisamitsu Pharmaceutical Co. Inc.		Pharmaceuticals		6,000		275,918
Hitachi Capital Corp.		Consumer Finance		4,000		92,732
Hitachi Chemical Co. Ltd.		Chemicals		8,000		177,224



224	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Japan ETF(continued)



		Industry		Shares		Value
	Common Stocks (continued)
	Japan (continued)
	Hitachi Construction Machinery Co. Ltd.		Machinery		8,000	$	212,278
	Hitachi High-Technologies Corp.		Electronic Equipment, Instruments & Components		6,000		245,833
	Hitachi Ltd.		Electronic Equipment, Instruments & Components		74,000		2,396,802
	Hitachi Metals Ltd.		Metals & Mining		16,000		185,897
	Hitachi Transport System Ltd.		Road & Rail		4,000		118,715
	Hokkaido Electric Power Co. Inc.		Electric Utilities		14,000		80,445
	Hokugin Financial Group Inc.		Banks		10,000		104,170
a	Hokuriku Electric Power Co.		Electric Utilities		14,000		109,789
	Honda Motor Co. Ltd.		Automobiles		138,000		3,734,110
	HORIBA Ltd.		Electronic Equipment, Instruments & Components		2,000		111,126
	Hoshizaki Corp.		Machinery		4,000		247,911
	House Foods Group Inc.		Food Products		6,000		241,225
	Hoya Corp.		Health Care Equipment & Supplies		30,000		1,981,027
	Ibiden Co. Ltd.		Electronic Equipment, Instruments & Components		8,000		121,570
	Ichigo Inc.		Real Estate Management & Development		14,000		47,938
	Idemitsu Kosan Co. Ltd.		Oil, Gas & Consumable Fuels		12,000		401,680
	IHI Corp.		Machinery		10,000		240,231
	Iida Group Holdings Co. Ltd.		Household Durables		12,000		217,374
	INPEX Corp.		Oil, Gas & Consumable Fuels		74,000		705,669
	Isetan Mitsukoshi Holdings Ltd.		Multiline Retail		28,000		283,074
	Isuzu Motors Ltd.		Automobiles		44,000		578,001
	Ito En Ltd.		Beverages		4,000		207,797
	ITOCHU Corp.		Trading Companies & Distributors		112,000		2,026,291
	ITOCHU Techno-Solutions Corp.		IT Services		8,000		186,692
	Itoham Yonekyu Holdings Inc.		Food Products		12,000		74,698
	Izumi Co. Ltd.		Multiline Retail		4,000		186,475
	J Front Retailing Co. Ltd.		Multiline Retail		20,000		237,973
	Japan Airlines Co. Ltd.		Airlines		10,000		352,261
	Japan Airport Terminal Co. Ltd.		Transportation Infrastructure		4,000		168,948
	Japan Aviatn Elect		Electronic Equipment, Instruments & Components		2,000		27,845
	Japan Exchange Group Inc.		Capital Markets		44,000		784,316
	Japan Petroleum Exploration Co. Ltd.		Oil, Gas & Consumable Fuels		2,000		43,294
	Japan Post Bank Co. Ltd.		Banks		32,000		349,532
	Japan Post Holdings Co. Ltd.		Insurance		104,000		1,217,726
	Japan Post Insurance Co. Ltd.		Insurance		6,000		129,828
	Japan Tobacco Inc.		Tobacco		94,000		2,331,210
	JFE Holdings Inc.		Metals & Mining		40,000		678,863
	JGC Corp.		Construction & Engineering		18,000		239,219
	JSR Corp.		Chemicals		16,000		248,055
	JTEKT Corp.		Machinery		18,000		221,493
	JXTG Holdings Inc.		Oil, Gas & Consumable Fuels		252,000		1,153,164
	K’s Holdings Corp.		Specialty Retail		12,000		106,464
	Kagome Co. Ltd.		Food Products		6,000		168,587
	Kajima Corp.		Construction & Engineering		36,000		531,454
	Kakaku.com Inc.		Interactive Media & Services		10,000		192,167
	Kaken Pharmaceutical Co. Ltd.		Pharmaceuticals		2,000		90,889
	Kamigumi Co. Ltd.		Transportation Infrastructure		10,000		231,648
	Kandenko Co. Ltd.		Construction & Engineering		8,000		68,374
	Kaneka Corp.		Chemicals		4,000		149,794
	Kansai Electric Power Co. Inc.		Electric Utilities		58,000		855,184
	Kansai Mirai Financial Group Inc		Banks		12,000		85,323
	Kansai Paint Co. Ltd.		Chemicals		16,000		305,154
	KAO Corp.		Personal Products		38,000		2,993,034
	Kawasaki Heavy Industries Ltd.		Machinery		12,000		295,975
a	Kawasaki Kisen Kaisha Ltd.		Marine		6,000		64,507
	KDDI Corp.		Wireless Telecommunication Services		140,000		3,016,669
	Keihan Holdings Co. Ltd.		Industrial Conglomerates		8,000		336,450



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FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Japan ETF(continued)



		Industry		Shares		Value
	Common Stocks (continued)
	Japan (continued)
	Keikyu Corp.		Road & Rail		22,000	$	373,276
	Keio Corp.		Road & Rail		10,000		645,977
	Keisei Electric Railway Co. Ltd.		Road & Rail		12,000		435,831
	Kewpie Corp.		Food Products		8,000		191,896
	Keyence Corp.		Electronic Equipment, Instruments & Components		7,000		4,361,838
	Kikkoman Corp.		Food Products		14,000		686,814
	Kinden Corp.		Construction & Engineering		10,000		165,695
	Kintetsu Group Holdings Co. Ltd.		Road & Rail		14,000		652,663
	Kirin Holdings Co. Ltd.		Beverages		64,000		1,527,940
	Kissei Pharmaceutical Co. Ltd.		Pharmaceuticals		2,000		52,365
	Kobayashi Pharmaceutical Co. Ltd.		Personal Products		4,000		337,534
	Kobe Steel Ltd.		Metals & Mining		24,000		180,187
	Koei Tecmo Holdings Co. Ltd.		Entertainment		4,000		77,120
	Koito Manufacturing Co. Ltd.		Auto Components		10,000		566,472
	Kokuyo Co. Ltd.		Commercial Services & Supplies		6,000		88,034
	Komatsu Ltd.		Machinery		74,000		1,718,544
	Komeri Co. Ltd.		Specialty Retail		2,000		48,986
	Konami Holdings Corp.		Entertainment		8,000		347,292
	Konica Minolta Inc.		Technology Hardware, Storage & Peripherals		36,000		354,194
	KOSE Corp.		Personal Products		2,000		367,349
	Kubota Corp.		Machinery		88,000		1,271,681
	Kuraray Co. Ltd.		Chemicals		28,000		356,182
	Kurita Water Industries Ltd.		Machinery		8,000		204,328
	Kusuri No Aoki Holdings Co. Ltd.		Food & Staples Retailing		2,000		143,109
	Kyocera Corp.		Electronic Equipment, Instruments & Components		24,000		1,409,405
	Kyorin Holdings Inc.		Pharmaceuticals		4,000		78,096
	Kyoritsu Maintenance Co. Ltd.		Hotels, Restaurants & Leisure		2,000		99,200
	Kyowa Exeo Corp.		Construction & Engineering		8,000		220,807
	Kyowa Hakko Kirin Co. Ltd.		Pharmaceuticals		20,000		435,470
	Kyudenko Corp.		Construction & Engineering		4,000		125,401
	Kyushu Electric Power Co. Inc.		Electric Utilities		38,000		448,715
	Kyushu Financial Group Inc.		Banks		32,000		130,099
	Kyushu Railway Co.		Road & Rail		12,000		394,633
	Lawson Inc.		Food & Staples Retailing		4,000		221,891
a	Line Corp.		Interactive Media & Services		4,000		141,121
	LINTEC Corp.		Chemicals		4,000		86,516
	Lion Corp.		Household Products		20,000		421,015
	LIXIL Group Corp.		Building Products		20,000		267,064
	M3 Inc.		Health Care Technology		32,000		536,875
	Mabuchi Motor Co. Ltd.		Electrical Equipment		4,000		139,134
	Maeda Corp.		Construction & Engineering		10,000		99,200
	Maeda Road Construction Co. Ltd.		Construction & Engineering		4,000		77,662
	Makita Corp.		Machinery		20,000		696,571
	Marubeni Corp.		Trading Companies & Distributors		122,000		843,204
	Maruha Nichiro Corp.		Food Products		2,000		71,554
	Marui Group Co. Ltd.		Multiline Retail		16,000		323,079
	Maruichi Steel Tube Ltd.		Metals & Mining		4,000		116,547
	Matsui Securities Co. Ltd.		Capital Markets		10,000		94,141
	Matsumotokiyoshi Holdings Co. Ltd.		Food & Staples Retailing		6,000		199,756
	Mazda Motor Corp.		Automobiles		46,000		514,713
	Mebuki Financial Group Inc.		Banks		82,000		209,658
	Medipal Holdings Corp.		Health Care Providers & Services		12,000		285,134
	Megmilk Snow Brand Co. Ltd.		Food Products		4,000		97,357
	Meiji Holdings Co. Ltd.		Food Products		10,000		812,215
	Minebea Mitsumi Inc.		Machinery		34,000		510,837
	Miraca Holdings Inc.		Health Care Providers & Services		4,000		99,237
	MISUMI Group Inc.		Machinery		22,000		546,994



226	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Japan ETF(continued)



		Industry		Shares		Value
	Common Stocks (continued)
	Japan (continued)
	Mitsubishi Chemical Holdings Corp.		Chemicals		104,000	$	732,327
	Mitsubishi Corp.		Trading Companies & Distributors		100,000		2,777,251
	Mitsubishi Electric Corp.		Electrical Equipment		158,000		2,030,582
	Mitsubishi Estate Co. Ltd.		Real Estate Management & Development		94,000		1,703,185
	Mitsubishi Gas Chemical Co. Inc.		Chemicals		14,000		199,720
	Mitsubishi Heavy Industries Ltd.		Machinery		22,000		913,909
	Mitsubishi Logistics Corp.		Transportation Infrastructure		6,000		167,502
	Mitsubishi Materials Corp.		Metals & Mining		10,000		263,992
	Mitsubishi Motors Corp.		Automobiles		50,000		265,619
	Mitsubishi Shokuhin Co. Ltd.		Food & Staples Retailing		2,000		52,329
	Mitsubishi Tanabe Pharma Corp.		Pharmaceuticals		18,000		240,520
	Mitsubishi UFJ Financial Group Inc.		Banks		992,000		4,929,304
	Mitsubishi UFJ Lease & Finance Co. Ltd.		Diversified Financial Services		36,000		183,440
	Mitsui & Co. Ltd.		Trading Companies & Distributors		134,000		2,080,490
	Mitsui Chemicals Inc.		Chemicals		14,000		337,842
	Mitsui Fudosan Co. Ltd.		Real Estate Management & Development		76,000		1,910,557
	Mitsui Mining and Smelting Co. Ltd.		Metals & Mining		4,000		102,597
	Mitsui O.S.K. Lines Ltd.		Marine		8,000		172,092
	Miura Co. Ltd.		Machinery		8,000		184,379
	Mizuho Financial Group Inc.		Banks		2,014,000		3,116,937
	Mochida Pharmaceutical Co. Ltd.		Pharmaceuticals		4,000		205,267
	Monotaro Co. Ltd.		Trading Companies & Distributors		8,000		177,874
	Morinaga & Co. Ltd.		Food Products		4,000		173,646
	Morinaga Milk Industry Co. Ltd.		Food Products		4,000		135,700
	MS&AD Insurance Group Holdings Inc.		Insurance		38,000		1,156,977
	Murata Manufacturing Co. Ltd.		Electronic Equipment, Instruments & Components		48,000		2,390,351
	Nabtesco Corp.		Machinery		10,000		291,367
	Nagase & Co. Ltd.		Trading Companies & Distributors		8,000		114,848
	Nagoya Railroad Co. Ltd.		Road & Rail		14,000		387,677
	Nankai Electric Railway Co. Ltd.		Road & Rail		8,000		220,807
	NEC Corp.		Technology Hardware, Storage & Peripherals		20,000		676,695
a	Nexon Co. Ltd.		Entertainment		32,000		501,315
	NGK Insulators Ltd.		Machinery		22,000		319,610
	NGK Spark Plug Co. Ltd.		Auto Components		16,000		296,915
	NH Foods Ltd.		Food Products		8,000		288,025
	NHK Spring Co. Ltd.		Auto Components		12,000		107,765
	Nichirei Corp.		Food Products		8,000		197,172
	Nidec Corp.		Electrical Equipment		18,000		2,280,797
	Nifco Inc.		Auto Components		6,000		152,866
	Nihon Kohden Corp.		Health Care Equipment & Supplies		6,000		178,344
	Nihon M&A Center Inc.		Professional Services		10,000		273,750
	Nihon Unisys Ltd.		IT Services		6,000		158,938
	Nikon Corp.		Household Durables		28,000		394,886
	Nintendo Co. Ltd.		Entertainment		8,000		2,281,068
	Nippo Corp.		Construction & Engineering		4,000		74,590
	Nippon Electric Glass Co. Ltd.		Electronic Equipment, Instruments & Components		6,000		159,100
	Nippon Express Co. Ltd.		Road & Rail		6,000		333,921
	Nippon Gas Co. Ltd.		Gas Utilities		4,000		110,584
	Nippon Kayaku Co. Ltd.		Chemicals		14,000		165,442
	Nippon Paint Holdings Co. Ltd.		Chemicals		12,000		471,609
	Nippon Paper Industries Co. Ltd.		Paper & Forest Products		8,000		165,226
	Nippon Shinyaku Co. Ltd.		Pharmaceuticals		4,000		291,277
	Nippon Shobukai Co. Ltd.		Chemicals		2,000		130,460
	Nippon Steel Corp.		Metals & Mining		66,000		1,165,144
	Nippon Telegraph & Telephone Corp.		Diversified Telecommunication Services		52,000		2,209,477
	Nippon Television Holdings Inc.		Media		4,000		59,990
	Nippon Yusen KK		Marine		14,000		205,159



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FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Japan ETF(continued)



		Industry		Shares		Value
	Common Stocks (continued)
	Japan (continued)
	Nipro Corp.		Health Care Equipment & Supplies		10,000	$	129,105
	Nishi-Nippon Financial Holdings Inc.		Banks		12,000		101,911
	Nishi-Nippon Railroad Co. Ltd.		Road & Rail		6,000		145,169
	Nissan Chemical Corp.		Chemicals		10,000		458,057
	Nissan Motor Co. Ltd.		Automobiles		152,000		1,247,201
	Nissan Shatai Co. Ltd.		Automobiles		4,000		34,657
	Nisshin Seifun Group Inc.		Food Products		20,000		458,960
	Nisshinbo Holdings Inc.		Industrial Conglomerates		12,000		104,838
	Nissin Foods Holdings Co. Ltd.		Food Products		6,000		411,980
	Nitori Co. Ltd.		Specialty Retail		6,000		775,173
	Nitto Denko Corp.		Chemicals		12,000		630,438
	Noevir Holdings Co. Ltd.		Personal Products		2,000		97,032
	NOF Corp.		Chemicals		4,000		136,243
	NOK Corp.		Auto Components		10,000		155,667
	Nomura Holdings Inc.		Capital Markets		262,000		947,305
	Nomura Real Estate Holdings Inc.		Real Estate Management & Development		10,000		191,986
	Nomura Research Institute Ltd.		IT Services		8,000		363,554
	North Pacific Bank Ltd.		Banks		22,000		55,057
	NS Solutions Corp.		IT Services		2,000		53,991
	NSK Ltd.		Machinery		36,000		337,281
	NTN Corp.		Machinery		34,000		100,754
	NTT Data Corp.		IT Services		50,000		551,565
	NTT DoCoMo Inc.		Wireless Telecommunication Services		96,000		2,126,250
	Obayashi Corp.		Construction & Engineering		54,000		543,488
	OBIC Business Consultants Co. Ltd.		Software		2,000		82,125
	OBIC Co. Ltd.		IT Services		6,000		604,960
	Odakyu Electric Railway Co. Ltd.		Road & Rail		24,000		581,759
	Oji Holdings Corp.		Paper & Forest Products		74,000		459,303
	Okuma Corp.		Machinery		2,000		108,235
	Olympus Corp.		Health Care Equipment & Supplies		88,000		955,649
	Omron Corp.		Electronic Equipment, Instruments & Components		16,000		748,792
	Ono Pharmaceutical Co. Ltd.		Pharmaceuticals		34,000		666,269
	Open House Co. Ltd.		Real Estate Management & Development		2,000		68,573
	Oracle Corp. Japan		Software		2,000		134,255
	Orient Corp.		Consumer Finance		46,000		46,962
	Oriental Land Co. Ltd.		Hotels, Restaurants & Leisure		14,000		1,589,917
	ORIX Corp.		Diversified Financial Services		102,000		1,464,778
	Osaka Gas Co. Ltd.		Gas Utilities		32,000		631,413
	OSG Corp.		Machinery		6,000		115,734
	Otsuka Corp.		IT Services		8,000		298,866
	Otsuka Holdings Co. Ltd.		Pharmaceuticals		34,000		1,335,917
	Paltac Corp.		Distributors		2,000		108,777
	Pan Pacific International Holdings Corp.		Multiline Retail		10,000		662,240
	Panasonic Corp.		Household Durables		172,000		1,482,788
	Park24 Co. Ltd.		Commercial Services & Supplies		8,000		173,682
	Penta-Ocean Construction Co. Ltd.		Construction & Engineering		22,000		101,965
a	PeptiDream Inc.		Biotechnology		6,000		294,349
	Persol Holdings Co. Ltd.		Professional Services		14,000		226,661
	Pigeon Corp.		Household Products		8,000		327,054
	Pilot Corp.		Commercial Services & Supplies		2,000		81,041
	Pola Orbis Holdings Inc.		Personal Products		6,000		191,354
	Rakuten Inc.		Internet & Direct Marketing Retail		64,000		605,972
	Recruit Holdings Co. Ltd.		Professional Services		96,000		2,741,618
	Relo Group Inc.		Real Estate Management & Development		8,000		224,782
a	Renesas Electronics Corp.		Semiconductors & Semiconductor Equipment		52,000		240,538
	Rengo Co. Ltd.		Containers & Packaging		16,000		150,047
	Resona Holdings Inc.		Banks		174,000		754,102
	Resorttrust Inc.		Hotels, Restaurants & Leisure		6,000		81,312



228	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Japan ETF(continued)



		Industry		Shares		Value
	Common Stocks (continued)
	Japan (continued)
	Ricoh Co. Ltd.		Technology Hardware, Storage & Peripherals		54,000	$	564,467
	Rinnai Corp.		Household Durables		2,000		141,483
	Rohm Co. Ltd.		Semiconductors & Semiconductor Equipment		6,000		374,034
	Rohto Pharmaceutical Co. Ltd.		Pharmaceuticals		8,000		205,412
	Ryohin Keikaku Co. Ltd.		Multiline Retail		2,000		506,663
	Sankyo Co. Ltd.		Leisure Products		4,000		152,505
	Sankyu Inc.		Road & Rail		4,000		195,148
	Sanrio Co. Ltd.		Specialty Retail		4,000		95,442
	Santen Pharmaceutical Co. Ltd.		Pharmaceuticals		30,000		446,944
	Sanwa Holdings Corp.		Building Products		16,000		190,378
	Sapporo Holdings Ltd.		Beverages		6,000		131,020
	Sawai Pharmaceutical Co. Ltd.		Pharmaceuticals		2,000		115,824
	SBI Holdings Inc.		Capital Markets		18,000		401,030
	SCREEN Holdings Co. Ltd.		Semiconductors & Semiconductor Equipment		4,000		161,178
	SCSK Corp.		IT Services		4,000		178,344
	Secom Co. Ltd.		Commercial Services & Supplies		16,000		1,370,665
	Sega Sammy Holdings Inc.		Leisure Products		16,000		188,788
	Seibu Holdings Inc.		Road & Rail		18,000		315,002
	Seiko Epson Corp.		Technology Hardware, Storage & Peripherals		22,000		336,902
	Seino Holdings Co. Ltd.		Road & Rail		12,000		159,913
	Sekisui Chemical Co. Ltd.		Household Durables		28,000		450,034
	Sekisui House Ltd.		Household Durables		46,000		761,368
	Seven & i Holdings Co. Ltd.		Food & Staples Retailing		62,000		2,339,179
	Seven Bank Ltd.		Banks		52,000		153,625
	SG Holdings Co. Ltd.		Air Freight & Logistics		16,000		466,188
	Sharp Corp.		Household Durables		12,000		132,050
	Shikoku Electric Power Co. Inc.		Electric Utilities		12,000		146,144
	Shima Seiki Manufacturing Ltd.		Machinery		2,000		61,436
	Shimachu Co. Ltd.		Specialty Retail		4,000		104,224
	Shimadzu Corp.		Electronic Equipment, Instruments & Components		22,000		636,039
	Shimamura Co. Ltd.		Specialty Retail		2,000		169,309
	SHIMANO Inc.		Leisure Products		6,000		975,742
	Shimizu Corp.		Construction & Engineering		46,000		399,801
	Shin-Etsu Chemical Co. Ltd.		Chemicals		32,000		2,682,929
a	Shinsei Bank Ltd.		Banks		14,000		199,214
	Shionogi & Co. Ltd.		Pharmaceuticals		22,000		1,361,919
	Shiseido Co. Ltd.		Personal Products		30,000		2,164,792
	SHO-BOND Holdings Co. Ltd.		Construction & Engineering		2,000		133,532
	Shoei Co. Ltd.		Real Estate Management & Development		26,000		255,102
	Showa Denko K.K.		Chemicals		12,000		421,737
	Showa Shell Sekiyu K.K.		Oil, Gas & Consumable Fuels		16,000		219,585
	Sky Perfect JSAT Holdings Inc.		Media		10,000		41,559
	Skylark Holdings Co. Ltd.		Hotels, Restaurants & Leisure		16,000		265,257
	SMC Corp.		Machinery		4,000		1,500,836
	Softbank Corp.		Wireless Telecommunication Services		126,000		1,419,542
	SoftBank Group Corp.		Wireless Telecommunication Services		68,000		6,601,256
	Sohgo Security Services Co. Ltd.		Commercial Services & Supplies		6,000		261,282
	Sojitz Corp.		Trading Companies & Distributors		100,000		352,351
	Sompo Holdings Inc.		Insurance		28,000		1,036,672
	Sony Corp.		Household Durables		100,000		4,196,594
	Sony Financial Holdings Inc.		Insurance		14,000		264,101
	Sotetsu Holdings Inc.		Road & Rail		6,000		184,578
	Square Enix Holdings Co. Ltd.		Entertainment		6,000		210,327
	Stanley Electric Co. Ltd.		Auto Components		12,000		322,537
	Subaru Corp.		Automobiles		48,000		1,093,915
	Sugi Pharmacy Co. Ltd.		Food & Staples Retailing		2,000		88,088
	Sumco Corp.		Semiconductors & Semiconductor Equipment		18,000		200,190
	Sumitomo Bakelite Co. Ltd.		Chemicals		2,000		71,645



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FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Japan ETF(continued)



		Industry		Shares		Value
	Common Stocks (continued)
	Japan (continued)
	Sumitomo Chemical Co. Ltd.		Chemicals		120,000	$	558,341
	Sumitomo Corp.		Trading Companies & Distributors		90,000		1,244,884
	Sumitomo Dainippon Pharma Co. Ltd.		Pharmaceuticals		14,000		346,190
	Sumitomo Electric Industries Ltd.		Auto Components		60,000		796,043
	Sumitomo Forestry Co. Ltd.		Household Durables		10,000		138,863
	Sumitomo Heavy Industries Ltd.		Machinery		10,000		323,892
	Sumitomo Metal Mining Co. Ltd.		Metals & Mining		18,000		531,779
	Sumitomo Mitsui Financial Group Inc.		Banks		104,000		3,641,903
	Sumitomo Osaka Cement Co. Ltd.		Construction Materials		2,000		78,782
	Sumitomo Realty & Development Co. Ltd.		Real Estate Management & Development		32,000		1,325,853
	Sumitomo Rubber Industries Ltd.		Auto Components		16,000		191,968
	Sundrug Co. Ltd.		Food & Staples Retailing		6,000		165,334
	Suntory Beverage & Food Ltd.		Beverages		10,000		469,802
	Suzuken Co. Ltd.		Health Care Providers & Services		6,000		347,473
	Suzuki Motor Corp.		Automobiles		34,000		1,504,558
	Sysmex Corp.		Health Care Equipment & Supplies		14,000		846,185
	T&D Holdings Inc.		Insurance		44,000		462,719
	Tadano Ltd.		Machinery		10,000		94,954
	Taiheiyo Cement Corp.		Construction Materials		10,000		333,379
	Taisei Corp.		Construction & Engineering		16,000		743,009
	Taisho Pharmaceutical Holdings Co. Ltd.		Pharmaceuticals		4,000		381,262
	Taiyo Nippon Sanso Corp.		Chemicals		10,000		152,324
	Taiyo Yuden Co. Ltd.		Electronic Equipment, Instruments & Components		10,000		196,684
	Takara Bio Inc.		Biotechnology		4,000		92,768
	Takara Holdings Inc.		Beverages		16,000		189,222
	Takashimaya Co. Ltd.		Multiline Retail		10,000		133,171
	Takeda Pharmaceutical Co. Ltd.		Pharmaceuticals		120,000		4,901,477
	TDK Corp.		Electronic Equipment, Instruments & Components		10,000		783,304
	TechnoPro Holdings Inc.		Professional Services		2,000		119,257
	Teijin Ltd.		Chemicals		14,000		230,962
	Terumo Corp.		Health Care Equipment & Supplies		48,000		1,465,781
	The 77 Bank Ltd.		Banks		6,000		83,860
	The Bank of Kyoto Ltd.		Banks		6,000		250,983
	The Chiba Bank Ltd.		Banks		52,000		282,351
	The Chugoku Bank Ltd.		Banks		14,000		131,418
	The Chugoku Electric Power Co. Inc.		Electric Utilities		24,000		299,444
	TheDai-ichi Life Holdings Inc.		Insurance		88,000		1,222,785
	The Hiroshima Bank Ltd.		Banks		24,000		122,293
	The Iyo Bank Ltd.		Banks		22,000		116,475
	The Japan Steel Works Ltd.		Machinery		6,000		110,530
	TheSan-In Godo Bank Ltd.		Banks		12,000		86,082
	The Shiga Bank Ltd.		Banks		2,000		47,667
	The Shizuoka Bank Ltd.		Banks		40,000		304,648
	THK Co. Ltd.		Machinery		10,000		247,007
	TIS Inc.		IT Services		6,000		284,049
	Tobu Railway Co. Ltd.		Road & Rail		16,000		461,851
	Toda Corp.		Construction & Engineering		20,000		122,871
	Toho Co. Ltd.		Entertainment		8,000		321,272
	Toho Gas Co. Ltd.		Gas Utilities		6,000		269,413
	Tohoku Electric Power Co. Inc.		Electric Utilities		38,000		484,763
b	Tokai Carbon Co. Ltd.		Chemicals		16,000		199,774
	Tokai Rika Co. Ltd.		Auto Components		4,000		68,194
	Tokai Tokyo Financial Holdings Inc.		Capital Markets		18,000		65,212
	Tokio Marine Holdings Inc.		Insurance		52,000		2,519,077
	Tokuyama Corp.		Chemicals		6,000		141,591
	Tokyo Broadcasting System Holdings Inc.		Media		2,000		36,608
	Tokyo Century Corp.		Diversified Financial Services		4,000		174,007



230	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Japan ETF(continued)



		Industry		Shares		Value
	Common Stocks (continued)
	Japan (continued)
a	Tokyo Electric Power Co. Holdings Inc.		Electric Utilities		122,000	$	771,559
	Tokyo Electron Ltd.		Semiconductors & Semiconductor Equipment		12,000		1,734,652
	Tokyo Gas Co. Ltd.		Gas Utilities		34,000		919,537
	Tokyo Tatemono Co. Ltd.		Real Estate Management & Development		16,000		196,160
	TOKYU Corp.		Road & Rail		40,000		698,559
	Tokyu Fudosan Holdings Corp.		Real Estate Management & Development		40,000		239,237
	Topcon Corp.		Electronic Equipment, Instruments & Components		8,000		94,394
	Toppan Printing Co. Ltd.		Commercial Services & Supplies		20,000		301,938
	Toray Industries Inc.		Chemicals		122,000		779,164
	Toshiba Corp.		Industrial Conglomerates		44,000		1,401,274
	Toshiba Plant Systems & Services Corp.		Construction & Engineering		4,000		70,940
	Tosoh Corp.		Chemicals		22,000		342,070
	TOTO Ltd.		Building Products		12,000		509,012
	Toyo Seikan Group Holdings Ltd.		Containers & Packaging		12,000		245,779
	Toyo Suisan Kaisha Ltd.		Food Products		6,000		228,486
	Toyo Tire Corp.		Auto Components		10,000		113,385
	Toyobo Co. Ltd.		Chemicals		8,000		102,272
	Toyoda Gosei Co. Ltd.		Auto Components		6,000		127,063
	Toyota Boshoku Corp.		Auto Components		6,000		90,798
	Toyota Industries Corp.		Auto Components		12,000		601,708
	Toyota Motor Corp.		Automobiles		198,000		11,604,337
	Toyota Tsusho Corp.		Trading Companies & Distributors		18,000		586,258
	Trend Micro Inc.		Software		10,000		486,968
	TS TECH Co. Ltd.		Auto Components		4,000		115,101
	Tsumura & Co.		Pharmaceuticals		6,000		182,410
	Tsuruha Holdings Inc.		Food & Staples Retailing		2,000		162,624
	TV Asahi Holdings Corp.		Media		2,000		35,091
	Ube Industries Ltd.		Chemicals		8,000		164,431
	Ulvac Inc.		Semiconductors & Semiconductor Equipment		4,000		115,644
	Unicharm Corp.		Household Products		30,000		992,817
	Ushio Inc.		Electrical Equipment		10,000		116,728
	USS Co. Ltd.		Specialty Retail		18,000		334,029
	Wacoal Corp.		Textiles, Apparel & Luxury Goods		4,000		99,453
	Welcia Holdings Co. Ltd.		Food & Staples Retailing		4,000		135,700
	West Japan Railway Co.		Road & Rail		14,000		1,054,759
	Yahoo Japan Corp.		Interactive Media & Services		190,000		465,194
	Yakult Honsha Co. Ltd.		Food Products		10,000		699,282
	Yamada Denki Co. Ltd.		Specialty Retail		58,000		286,109
	Yamaguchi Financial Group Inc.		Banks		18,000		152,541
	Yamaha Corp.		Leisure Products		12,000		599,539
	Yamaha Motor Co. Ltd.		Automobiles		22,000		431,513
	Yamato Holdings Co. Ltd.		Air Freight & Logistics		28,000		723,242
	Yamato Kogyo Co. Ltd.		Metals & Mining		4,000		109,139
	Yamazaki Baking Co. Ltd.		Food Products		10,000		162,262
	Yaoko Co. Ltd.		Food & Staples Retailing		2,000		98,297
	YASKAWA Electric Corp.		Electronic Equipment, Instruments & Components		22,000		690,699
	Yokogawa Electric Corp.		Electronic Equipment, Instruments & Components		20,000		413,968
	Yokohama Rubber Co. Ltd.		Auto Components		8,000		148,602
	Zenkoku Hosho Co. Ltd.		Diversified Financial Services		4,000		139,856
	Zensho Holdings Co. Ltd.		Hotels, Restaurants & Leisure		8,000		185,319
	Zeon Corp.		Chemicals		12,000		121,426
	Zozo Inc.		Internet & Direct Marketing Retail		14,000		263,848

	Total Investments before Short Term Investments (Cost $319,292,554)						286,602,714



franklintempleton.com	Annual Report	231

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Japan ETF(continued)



		Shares		Value
	Short Term Investments (Cost $231,376) 0.1%
	United States 0.0%
c,d	Institutional Fiduciary Trust Portfolio, 2.10%		114,341	$	114,341
	Investments from Cash Collateral Received for Loaned Securities 0.1%
	United States 0.1%
c,d	Institutional Fiduciary Trust Portfolio, 2.10%		117,035		117,035

	Total Short Term Investments (Cost $231,376)				231,376

	Total Investments (Cost $319,523,930) 98.8%				286,834,090
	Other Assets, less Liabilities 1.2%				3,371,314

	Net Assets 100.0%			$	290,205,404

^aNon-income producing.

^bA portion or all of the security is on loan at March 31, 2019.

^cSee Note 3(c) regarding investments in affiliated management investment companies.

^dThe rate shown is the annualizedseven-day effective yield at period end.

At March 31, 2019, 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

Nikkei 225 Mini

Long

183

3,506,735

6/13/19

(5,783

)

*As of period end.

See Note 7 regarding other derivative information.



232	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



	Year Ended March 31,

	2019			2018^a

Per share operating performance (for a share outstanding throughout the year)

Net asset value, beginning of year	$	25.11		$	25.91


Income from investment operations^b:

Net investment income^c		0.38			0.32

Net realized and unrealized gains (losses)		(1.11	)		(1.11	)


Total from investment operations		(0.73	)		(0.79	)


Less distributions from:

Net investment income		(0.01	)		(0.01	)

Net realized gains		(1.25	)		(—	)^d


Total distributions		(1.26	)		(0.01	)


Net asset value, end of year	$	23.12		$	25.11


Total return^e		(2.59)%			(3.04)%

Ratios to average net assets^f

Total expenses		0.09%			0.09%

Net investment income		1.51%			3.10%

Supplemental data

Net assets, end of year (000’s)		$13,870			$45,197

Portfolio turnover rate^g		19.78%			1.92%

^aFor the period November 2, 2017 (commencement of operations) to March 31, 2018.

^cBased on average daily shares outstanding.

^dAmount rounds to less than $0.01 per share.

^fRatios are annualized for periods less than one year, except fornon-recurring expenses, if any.

^gPortfolio turnover rate excludes the value of portfolio securities received or delivered as a result of processing capital share transactions in Creation Units, if any.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	233

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2019

Franklin FTSE Japan Hedged ETF



		Industry		Shares		Value
	Common Stocks 98.0%
	Japan 98.0%
	ABC-Mart Inc.		Specialty Retail		100	$	5,954
	Acom Co. Ltd.		Consumer Finance		1,400		4,996
	Advantest Corp.		Semiconductors & Semiconductor Equipment		700		16,272
	AEON Co. Ltd.		Food & Staples Retailing		2,600		54,415
	AEON Financial Service Co. Ltd.		Consumer Finance		400		8,142
	AEON Mall Co. Ltd.		Real Estate Management & Development		500		8,222
	AGC Inc.		Building Products		700		24,538
	Aica Kogyo Co. Ltd.		Building Products		200		6,668
a	Aiful Corp.		Consumer Finance		1,100		2,763
	AIN Holdings Inc.		Food & Staples Retailing		100		7,517
	Air Water Inc.		Chemicals		600		8,695
	Aisin Seiki Co. Ltd.		Auto Components		700		25,012
	Ajinomoto Co. Inc.		Food Products		1,800		28,768
	Alfresa Holdings Corp.		Health Care Providers & Services		600		17,075
	Alps Alpine Co. Ltd.		Electronic Equipment, Instruments & Components		700		14,609
	Amada Holdings Co. Ltd.		Machinery		1,300		12,861
	ANA Holdings Inc.		Airlines		500		18,336
	Aoyama Trading Co. Ltd.		Specialty Retail		100		2,273
	Aozora Bank Ltd.		Banks		500		12,359
a	Aplus Financial Co. Ltd.		Consumer Finance		300		233
	Ariake Japan Co. Ltd.		Food Products		100		5,349
	Asahi Group Holdings Ltd.		Beverages		1,400		62,357
	Asahi Intecc Co. Ltd.		Health Care Equipment & Supplies		400		18,792
	Asahi Kasei Corp.		Chemicals		4,600		47,461
	Asics Corp.		Textiles, Apparel & Luxury Goods		600		8,050
	ASKUL Corp.		Internet & Direct Marketing Retail		100		2,495
	Astellas Pharma Inc.		Pharmaceuticals		7,100		106,386
	Autobacs Seven Co. Ltd.		Specialty Retail		200		3,325
	Awa Bank Ltd.		Banks		100		2,542
	Azbil Corp.		Electronic Equipment, Instruments & Components		500		11,695
	Bandai Namco Holdings Inc.		Leisure Products		700		32,823
	Benefit One Inc.		Professional Services		300		5,887
	Benesse Holdings Inc.		Diversified Consumer Services		300		7,792
	BIC CAMERA Inc.		Specialty Retail		500		5,254
	Bridgestone Corp.		Auto Components		2,300		88,646
	Brother Industries Ltd.		Technology Hardware, Storage & Peripherals		900		16,653
	Calbee Inc.		Food Products		300		8,082
	CANON Inc.		Technology Hardware, Storage & Peripherals		3,900		113,210
	Canon Marketing Japan Inc.		Distributors		200		3,934
	Capcom Co. Ltd.		Entertainment		400		8,962
	Casio Computer Co. Ltd.		Household Durables		900		11,750
	Central Japan Railway Co.		Road & Rail		700		162,597
	Chubu Electric Power Co. Inc.		Electric Utilities		2,600		40,603
	Chugai Pharmaceutical Co. Ltd.		Pharmaceuticals		800		55,003
	Chuo Mitsui Trust Holdings Inc.		Banks		1,400		50,290
	Citizen Watch Co. Ltd.		Electronic Equipment, Instruments & Components		1,000		5,574
	Coca-Cola Bottlers Japan Holdings Inc.		Beverages		500		12,698
	COMSYS Holdings Corp.		Construction & Engineering		400		10,914
	Concordia Financial Group Ltd.		Banks		4,400		16,974
	Cosmo Energy Holdings Co. Ltd.		Oil, Gas & Consumable Fuels		200		4,019
	Cosmos Pharmaceutical Corp.		Food & Staples Retailing		50		8,646
	Credit Saison Co. Ltd.		Consumer Finance		600		7,925
	CyberAgent Inc.		Media		400		16,317
	Dai Nippon Printing Co. Ltd.		Commercial Services & Supplies		1,200		28,698
	Daicel Corp.		Chemicals		1,100		11,946
	Daido Steel Co. Ltd.		Metals & Mining		100		3,944
	Daifuku Co. Ltd.		Machinery		400		20,816



234	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Japan Hedged ETF(continued)



	Industry		Shares		Value
Common Stocks (continued)
Japan (continued)
Daiichi Sankyo Co. Ltd.		Pharmaceuticals		2,400	$	110,584
Daiichikosho Co. Ltd.		Entertainment		100		5,114
Daikin Industries Ltd.		Building Products		1,000		117,179
Daishi Hokuetsu Financial Group Inc.		Banks		100		2,823
Daito Trust Construction Co. Ltd.		Real Estate Management & Development		250		34,851
Daiwa House Industry Co. Ltd.		Real Estate Management & Development		2,400		76,303
Daiwa Securities Group Inc.		Capital Markets		5,900		28,731
DeNA Co. Ltd.		Entertainment		400		6,024
Denka Co. Ltd.		Chemicals		300		8,646
Denso Corp.		Auto Components		1,700		66,304
Dentsu Inc.		Media		800		33,790
DIC Corp.		Chemicals		300		8,768
Disco Corp.		Semiconductors & Semiconductor Equipment		100		14,248
DMG Mori Co. Ltd.		Machinery		400		4,947
Dowa Holdings Co. Ltd.		Metals & Mining		200		6,577
East Japan Railway Co.		Road & Rail		1,400		135,086
EBARA Corp.		Machinery		400		11,275
Eisai Co. Ltd.		Pharmaceuticals		1,000		56,132
Electric Power Development Co. Ltd.		Independent Power and Renewable Electricity Producers		600		14,614
Exedy Corp.		Auto Components		100		2,167
Ezaki Glico Co. Ltd.		Food Products		200		10,516
FamilyMart UNY Holdings Co. Ltd.		Food & Staples Retailing		800		20,389
Fancl Corp.		Personal Products		300		7,752
FANUC Corp.		Machinery		700		119,402
Fast Retailing Co. Ltd.		Specialty Retail		200		94,015
FP Corp.		Containers & Packaging		100		5,909
Fuji Electric Co. Ltd.		Electrical Equipment		500		14,184
Fuji Media Holdings Inc.		Media		300		4,141
Fuji Oil Holdings Inc.		Food Products		200		6,848
Fuji Seal International Inc.		Containers & Packaging		100		3,614
FUJIFILM Holdings Corp.		Technology Hardware, Storage & Peripherals		1,400		63,673
Fujikura Ltd.		Electrical Equipment		1,000		3,767
Fujitsu General Ltd.		Household Durables		300		4,244
Fujitsu Ltd.		IT Services		700		50,506
Fukuoka Financial Group Inc.		Banks		600		13,313
Fukuyama Transporting Co. Ltd.		Road & Rail		100		3,849
Furukawa Electric Co. Ltd.		Electrical Equipment		200		5,043
Fuyo General Lease Co. Ltd.		Diversified Financial Services		100		4,951
Glory Ltd.		Machinery		200		4,799
GMO Internet Inc.		IT Services		300		4,890
GMO Payment Gateway Inc.		IT Services		200		14,202
Goldwin Inc.		Textiles, Apparel & Luxury Goods		100		14,564
GS Yuasa Corp.		Electrical Equipment		300		5,884
GungHo Online Entertainment Inc.		Entertainment		1,600		5,826
Gunma Bank Ltd.		Banks		1,600		6,057
H2O Retailing Corp.		Multiline Retail		300		4,179
Hachijuni Bank Ltd.		Banks		1,700		7,050
Hakuhodo DY Holdings Inc.		Media		900		14,457
Hamamatsu Photonics K.K.		Electronic Equipment, Instruments & Components		500		19,334
Hankyu Hanshin Holdings Inc.		Road & Rail		800		29,995
Haseko Corp.		Household Durables		1,100		13,834
Heiwa Corp.		Leisure Products		200		3,997
Hikari Tsushin Inc.		Specialty Retail		100		18,946
Hino Motors Ltd.		Machinery		1,100		9,262
Hirose Electric Co. Ltd.		Electronic Equipment, Instruments & Components		115		12,083
HIS Co. Ltd.		Hotels, Restaurants & Leisure		100		3,677
Hisamitsu Pharmaceutical Co. Inc.		Pharmaceuticals		300		13,796



franklintempleton.com	Annual Report	235

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Japan Hedged ETF(continued)



		Industry		Shares		Value
	Common Stocks (continued)
	Japan (continued)
	Hitachi Capital Corp.		Consumer Finance		200	$	4,637
	Hitachi Chemical Co. Ltd.		Chemicals		400		8,861
	Hitachi Construction Machinery Co. Ltd.		Machinery		400		10,614
	Hitachi High-Technologies Corp.		Electronic Equipment, Instruments & Components		300		12,292
	Hitachi Ltd.		Electronic Equipment, Instruments & Components		3,400		110,123
	Hitachi Metals Ltd.		Metals & Mining		800		9,295
	Hitachi Transport System Ltd.		Road & Rail		100		2,968
	Hokkaido Electric Power Co. Inc.		Electric Utilities		700		4,022
	Hokugin Financial Group Inc.		Banks		400		4,167
a	Hokuriku Electric Power Co.		Electric Utilities		600		4,705
	Honda Motor Co. Ltd.		Automobiles		6,500		175,882
	HORIBA Ltd.		Electronic Equipment, Instruments & Components		100		5,556
	Hoshizaki Corp.		Machinery		200		12,396
	House Foods Group Inc.		Food Products		300		12,061
	Hoya Corp.		Health Care Equipment & Supplies		1,400		92,448
	Ibiden Co. Ltd.		Electronic Equipment, Instruments & Components		400		6,079
	Ichigo Inc.		Real Estate Management & Development		1,000		3,424
	Idemitsu Kosan Co. Ltd.		Oil, Gas & Consumable Fuels		500		16,737
	IHI Corp.		Machinery		500		12,012
	Iida Group Holdings Co. Ltd.		Household Durables		600		10,869
	INPEX Corp.		Oil, Gas & Consumable Fuels		3,400		32,423
	Isetan Mitsukoshi Holdings Ltd.		Multiline Retail		1,300		13,143
	Isuzu Motors Ltd.		Automobiles		1,900		24,959
	Ito En Ltd.		Beverages		200		10,390
	ITOCHU Corp.		Trading Companies & Distributors		5,200		94,078
	ITOCHU Techno-Solutions Corp.		IT Services		400		9,335
	Itoham Yonekyu Holdings Inc.		Food Products		500		3,112
	Izumi Co. Ltd.		Multiline Retail		100		4,662
	J Front Retailing Co. Ltd.		Multiline Retail		900		10,709
	Japan Airlines Co. Ltd.		Airlines		400		14,090
	Japan Airport Terminal Co. Ltd.		Transportation Infrastructure		200		8,447
	Japan Aviatn Elect		Electronic Equipment, Instruments & Components		200		2,784
	Japan Exchange Group Inc.		Capital Markets		2,000		35,651
	Japan Petroleum Exploration Co. Ltd.		Oil, Gas & Consumable Fuels		100		2,165
	Japan Post Bank Co. Ltd.		Banks		1,600		17,477
	Japan Post Holdings Co. Ltd.		Insurance		5,100		59,715
	Japan Post Insurance Co. Ltd.		Insurance		300		6,491
	Japan Tobacco Inc.		Tobacco		4,400		109,121
	JFE Holdings Inc.		Metals & Mining		1,900		32,246
	JGC Corp.		Construction & Engineering		800		10,632
	JSR Corp.		Chemicals		700		10,852
	JTEKT Corp.		Machinery		900		11,075
	JXTG Holdings Inc.		Oil, Gas & Consumable Fuels		11,800		53,997
	K’s Holdings Corp.		Specialty Retail		700		6,210
	Kagome Co. Ltd.		Food Products		300		8,429
	Kajima Corp.		Construction & Engineering		1,800		26,573
	Kakaku.com Inc.		Interactive Media & Services		500		9,608
	Kaken Pharmaceutical Co. Ltd.		Pharmaceuticals		100		4,544
	Kamigumi Co. Ltd.		Transportation Infrastructure		400		9,266
	Kandenko Co. Ltd.		Construction & Engineering		400		3,419
	Kaneka Corp.		Chemicals		200		7,490
	Kansai Electric Power Co. Inc.		Electric Utilities		2,700		39,810
	Kansai Mirai Financial Group Inc		Banks		600		4,266
	Kansai Paint Co. Ltd.		Chemicals		700		13,351
	KAO Corp.		Personal Products		1,800		141,775
	Kawasaki Heavy Industries Ltd.		Machinery		500		12,332
a	Kawasaki Kisen Kaisha Ltd.		Marine		300		3,225
	KDDI Corp.		Wireless Telecommunication Services		6,600		142,214



236	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Japan Hedged ETF(continued)



		Industry		Shares		Value
	Common Stocks (continued)
	Japan (continued)
	Keihan Holdings Co. Ltd.		Industrial Conglomerates		400	$	16,823
	Keikyu Corp.		Road & Rail		900		15,270
	Keio Corp.		Road & Rail		400		25,839
	Keisei Electric Railway Co. Ltd.		Road & Rail		500		18,160
	Kewpie Corp.		Food Products		400		9,595
	Keyence Corp.		Electronic Equipment, Instruments & Components		344		214,353
	Kikkoman Corp.		Food Products		700		34,341
	Kinden Corp.		Construction & Engineering		500		8,285
	Kintetsu Group Holdings Co. Ltd.		Road & Rail		600		27,971
	Kirin Holdings Co. Ltd.		Beverages		3,000		71,622
	Kissei Pharmaceutical Co. Ltd.		Pharmaceuticals		100		2,618
	Kobayashi Pharmaceutical Co. Ltd.		Personal Products		200		16,877
	Kobe Steel Ltd.		Metals & Mining		1,100		8,259
	Koei Tecmo Holdings Co. Ltd.		Entertainment		300		5,784
	Koito Manufacturing Co. Ltd.		Auto Components		400		22,659
	Kokuyo Co. Ltd.		Commercial Services & Supplies		300		4,402
	Komatsu Ltd.		Machinery		3,400		78,960
	Komeri Co. Ltd.		Specialty Retail		100		2,449
	Konami Holdings Corp.		Entertainment		400		17,365
	Konica Minolta Inc.		Technology Hardware, Storage & Peripherals		1,700		16,726
	KOSE Corp.		Personal Products		100		18,367
	Kubota Corp.		Machinery		4,100		59,249
	Kuraray Co. Ltd.		Chemicals		1,300		16,537
	Kurita Water Industries Ltd.		Machinery		400		10,216
	Kusuri No Aoki Holdings Co. Ltd.		Food & Staples Retailing		100		7,155
	Kyocera Corp.		Electronic Equipment, Instruments & Components		1,100		64,598
	Kyorin Holdings Inc.		Pharmaceuticals		100		1,952
	Kyoritsu Maintenance Co. Ltd.		Hotels, Restaurants & Leisure		100		4,960
	Kyowa Exeo Corp.		Construction & Engineering		400		11,040
	Kyowa Hakko Kirin Co. Ltd.		Pharmaceuticals		1,000		21,774
	Kyudenko Corp.		Construction & Engineering		100		3,135
	Kyushu Electric Power Co. Inc.		Electric Utilities		1,700		20,074
	Kyushu Financial Group Inc.		Banks		1,400		5,692
	Kyushu Railway Co.		Road & Rail		600		19,732
	Lawson Inc.		Food & Staples Retailing		200		11,095
a	Line Corp.		Interactive Media & Services		200		7,056
	LINTEC Corp.		Chemicals		200		4,326
	Lion Corp.		Household Products		900		18,946
	LIXIL Group Corp.		Building Products		1,000		13,353
	M3 Inc.		Health Care Technology		1,500		25,166
	Mabuchi Motor Co. Ltd.		Electrical Equipment		200		6,957
	Maeda Corp.		Construction & Engineering		500		4,960
	Maeda Road Construction Co. Ltd.		Construction & Engineering		200		3,883
	Makita Corp.		Machinery		900		31,346
	Marubeni Corp.		Trading Companies & Distributors		5,900		40,778
	Maruha Nichiro Corp.		Food Products		100		3,578
	Marui Group Co. Ltd.		Multiline Retail		800		16,154
	Maruichi Steel Tube Ltd.		Metals & Mining		200		5,827
	Matsui Securities Co. Ltd.		Capital Markets		500		4,707
	Matsumotokiyoshi Holdings Co. Ltd.		Food & Staples Retailing		300		9,988
	Mazda Motor Corp.		Automobiles		2,200		24,617
	Mebuki Financial Group Inc.		Banks		3,800		9,716
	Medipal Holdings Corp.		Health Care Providers & Services		600		14,257
	Megmilk Snow Brand Co. Ltd.		Food Products		100		2,434
	Meiji Holdings Co. Ltd.		Food Products		500		40,611
	Minebea Mitsumi Inc.		Machinery		1,600		24,039
	Miraca Holdings Inc.		Health Care Providers & Services		200		4,962



franklintempleton.com	Annual Report	237

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Japan Hedged ETF(continued)



		Industry		Shares		Value
	Common Stocks (continued)
	Japan (continued)
	MISUMI Group Inc.		Machinery		1,000	$	24,863
	Mitsubishi Chemical Holdings Corp.		Chemicals		4,700		33,096
	Mitsubishi Corp.		Trading Companies & Distributors		4,800		133,308
	Mitsubishi Electric Corp.		Electrical Equipment		7,300		93,818
	Mitsubishi Estate Co. Ltd.		Real Estate Management & Development		4,400		79,724
	Mitsubishi Gas Chemical Co. Inc.		Chemicals		700		9,986
	Mitsubishi Heavy Industries Ltd.		Machinery		1,100		45,695
	Mitsubishi Logistics Corp.		Transportation Infrastructure		200		5,583
	Mitsubishi Materials Corp.		Metals & Mining		500		13,200
	Mitsubishi Motors Corp.		Automobiles		2,400		12,750
	Mitsubishi Shokuhin Co. Ltd.		Food & Staples Retailing		100		2,616
	Mitsubishi Tanabe Pharma Corp.		Pharmaceuticals		900		12,026
	Mitsubishi UFJ Financial Group Inc.		Banks		46,900		233,049
	Mitsubishi UFJ Lease & Finance Co. Ltd.		Diversified Financial Services		1,600		8,153
	Mitsui & Co. Ltd.		Trading Companies & Distributors		6,300		97,814
	Mitsui Chemicals Inc.		Chemicals		700		16,892
	Mitsui Fudosan Co. Ltd.		Real Estate Management & Development		3,500		87,986
	Mitsui Mining and Smelting Co. Ltd.		Metals & Mining		200		5,130
	Mitsui O.S.K. Lines Ltd.		Marine		400		8,605
	Miura Co. Ltd.		Machinery		400		9,219
	Mizuho Financial Group Inc.		Banks		94,600		146,406
	Monotaro Co. Ltd.		Trading Companies & Distributors		400		8,894
	Morinaga & Co. Ltd.		Food Products		100		4,341
	Morinaga Milk Industry Co. Ltd.		Food Products		200		6,785
	MS&AD Insurance Group Holdings Inc.		Insurance		1,800		54,804
	Murata Manufacturing Co. Ltd.		Electronic Equipment, Instruments & Components		2,100		104,578
	Nabtesco Corp.		Machinery		400		11,655
	Nagase & Co. Ltd.		Trading Companies & Distributors		400		5,742
	Nagoya Railroad Co. Ltd.		Road & Rail		700		19,384
	Nankai Electric Railway Co. Ltd.		Road & Rail		400		11,040
	NEC Corp.		Technology Hardware, Storage & Peripherals		900		30,451
a	Nexon Co. Ltd.		Entertainment		1,500		23,499
	NGK Insulators Ltd.		Machinery		1,000		14,528
	NGK Spark Plug Co. Ltd.		Auto Components		700		12,990
	NH Foods Ltd.		Food Products		400		14,401
	NHK Spring Co. Ltd.		Auto Components		600		5,388
	Nichirei Corp.		Food Products		400		9,859
	Nidec Corp.		Electrical Equipment		900		114,040
	Nifco Inc.		Auto Components		300		7,643
	Nihon Kohden Corp.		Health Care Equipment & Supplies		300		8,917
	Nihon M&A Center Inc.		Professional Services		500		13,688
	Nihon Unisys Ltd.		IT Services		200		5,298
	Nikon Corp.		Household Durables		1,300		18,334
	Nintendo Co. Ltd.		Entertainment		400		114,053
	Nippo Corp.		Construction & Engineering		200		3,730
	Nippon Electric Glass Co. Ltd.		Electronic Equipment, Instruments & Components		300		7,955
	Nippon Express Co. Ltd.		Road & Rail		300		16,696
	Nippon Gas Co. Ltd.		Gas Utilities		100		2,765
	Nippon Kayaku Co. Ltd.		Chemicals		600		7,090
	Nippon Paint Holdings Co. Ltd.		Chemicals		600		23,580
	Nippon Paper Industries Co. Ltd.		Paper & Forest Products		300		6,196
	Nippon Shinyaku Co. Ltd.		Pharmaceuticals		200		14,564
	Nippon Shobukai Co. Ltd.		Chemicals		100		6,523
	Nippon Steel Corp.		Metals & Mining		3,100		54,726
	Nippon Telegraph & Telephone Corp.		Diversified Telecommunication Services		2,400		101,976
	Nippon Television Holdings Inc.		Media		300		4,499
	Nippon Yusen KK		Marine		600		8,793



238	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Japan Hedged ETF(continued)



		Industry		Shares		Value
	Common Stocks (continued)
	Japan (continued)
	Nipro Corp.		Health Care Equipment & Supplies		400	$	5,164
	Nishi-Nippon Financial Holdings Inc.		Banks		600		5,096
	Nishi-Nippon Railroad Co. Ltd.		Road & Rail		300		7,258
	Nissan Chemical Corp.		Chemicals		500		22,903
	Nissan Motor Co. Ltd.		Automobiles		7,200		59,078
	Nissan Shatai Co. Ltd.		Automobiles		200		1,733
	Nisshin Seifun Group Inc.		Food Products		900		20,653
	Nisshinbo Holdings Inc.		Industrial Conglomerates		500		4,368
	Nissin Foods Holdings Co. Ltd.		Food Products		300		20,599
	Nitori Co. Ltd.		Specialty Retail		300		38,759
	Nitto Denko Corp.		Chemicals		600		31,522
	Noevir Holdings Co. Ltd.		Personal Products		100		4,852
	NOF Corp.		Chemicals		300		10,218
	NOK Corp.		Auto Components		500		7,783
	Nomura Holdings Inc.		Capital Markets		12,300		44,473
	Nomura Real Estate Holdings Inc.		Real Estate Management & Development		500		9,599
	Nomura Research Institute Ltd.		IT Services		400		18,178
	North Pacific Bank Ltd.		Banks		1,000		2,503
	NS Solutions Corp.		IT Services		100		2,700
	NSK Ltd.		Machinery		1,700		15,927
	NTN Corp.		Machinery		1,600		4,741
	NTT Data Corp.		IT Services		2,400		26,475
	NTT DoCoMo Inc.		Wireless Telecommunication Services		4,400		97,453
	Obayashi Corp.		Construction & Engineering		2,600		26,168
	OBIC Business Consultants Co. Ltd.		Software		100		4,106
	OBIC Co. Ltd.		IT Services		200		20,165
	Odakyu Electric Railway Co. Ltd.		Road & Rail		1,100		26,664
	Oji Holdings Corp.		Paper & Forest Products		3,300		20,482
	Okuma Corp.		Machinery		100		5,412
	Olympus Corp.		Health Care Equipment & Supplies		4,000		43,439
	Omron Corp.		Electronic Equipment, Instruments & Components		700		32,760
	Ono Pharmaceutical Co. Ltd.		Pharmaceuticals		1,600		31,354
	Open House Co. Ltd.		Real Estate Management & Development		100		3,429
	Oracle Corp. Japan		Software		100		6,713
	Orient Corp.		Consumer Finance		2,100		2,144
	Oriental Land Co. Ltd.		Hotels, Restaurants & Leisure		700		79,496
	ORIX Corp.		Diversified Financial Services		4,700		67,495
	Osaka Gas Co. Ltd.		Gas Utilities		1,500		29,598
	OSG Corp.		Machinery		400		7,716
	Otsuka Corp.		IT Services		400		14,943
	Otsuka Holdings Co. Ltd.		Pharmaceuticals		1,600		62,867
	Paltac Corp.		Distributors		100		5,439
	Pan Pacific International Holdings Corp.		Multiline Retail		500		33,112
	Panasonic Corp.		Household Durables		7,900		68,105
	Park24 Co. Ltd.		Commercial Services & Supplies		500		10,855
	Penta-Ocean Construction Co. Ltd.		Construction & Engineering		1,000		4,635
a	PeptiDream Inc.		Biotechnology		300		14,717
	Persol Holdings Co. Ltd.		Professional Services		600		9,714
	Pigeon Corp.		Household Products		400		16,353
	Pilot Corp.		Commercial Services & Supplies		100		4,052
	Pola Orbis Holdings Inc.		Personal Products		300		9,568
	Rakuten Inc.		Internet & Direct Marketing Retail		2,900		27,458
	Recruit Holdings Co. Ltd.		Professional Services		4,500		128,513
	Relo Group Inc.		Real Estate Management & Development		400		11,239
a	Renesas Electronics Corp.		Semiconductors & Semiconductor Equipment		2,700		12,490
	Rengo Co. Ltd.		Containers & Packaging		800		7,502
	Resona Holdings Inc.		Banks		8,200		35,538



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STATEMENT OF INVESTMENTS

Franklin FTSE Japan Hedged ETF(continued)



		Industry		Shares		Value
	Common Stocks (continued)
	Japan (continued)
	Resorttrust Inc.		Hotels, Restaurants & Leisure		200	$	2,710
	Ricoh Co. Ltd.		Technology Hardware, Storage & Peripherals		2,500		26,133
	Rinnai Corp.		Household Durables		100		7,074
	Rohm Co. Ltd.		Semiconductors & Semiconductor Equipment		300		18,702
	Rohto Pharmaceutical Co. Ltd.		Pharmaceuticals		400		10,271
	Ryohin Keikaku Co. Ltd.		Multiline Retail		100		25,333
	Sankyo Co. Ltd.		Leisure Products		200		7,625
	Sankyu Inc.		Road & Rail		200		9,757
	Sanrio Co. Ltd.		Specialty Retail		200		4,772
	Santen Pharmaceutical Co. Ltd.		Pharmaceuticals		1,300		19,368
	Sanwa Holdings Corp.		Building Products		700		8,329
	Sapporo Holdings Ltd.		Beverages		200		4,367
	Sawai Pharmaceutical Co. Ltd.		Pharmaceuticals		100		5,791
	SBI Holdings Inc.		Capital Markets		800		17,824
	SCREEN Holdings Co. Ltd.		Semiconductors & Semiconductor Equipment		100		4,029
	SCSK Corp.		IT Services		200		8,917
	Secom Co. Ltd.		Commercial Services & Supplies		700		59,967
	Sega Sammy Holdings Inc.		Leisure Products		700		8,259
	Seibu Holdings Inc.		Road & Rail		800		14,000
	Seiko Epson Corp.		Technology Hardware, Storage & Peripherals		1,000		15,314
	Seino Holdings Co. Ltd.		Road & Rail		600		7,996
	Sekisui Chemical Co. Ltd.		Household Durables		1,400		22,502
	Sekisui House Ltd.		Household Durables		2,200		36,413
	Seven & i Holdings Co. Ltd.		Food & Staples Retailing		2,900		109,413
	Seven Bank Ltd.		Banks		2,600		7,681
	SG Holdings Co. Ltd.		Air Freight & Logistics		800		23,309
	Sharp Corp.		Household Durables		600		6,603
	Shikoku Electric Power Co. Inc.		Electric Utilities		600		7,307
	Shima Seiki Manufacturing Ltd.		Machinery		100		3,072
	Shimachu Co. Ltd.		Specialty Retail		200		5,211
	Shimadzu Corp.		Electronic Equipment, Instruments & Components		1,000		28,911
	Shimamura Co. Ltd.		Specialty Retail		100		8,465
	SHIMANO Inc.		Leisure Products		300		48,787
	Shimizu Corp.		Construction & Engineering		2,200		19,121
	Shin-Etsu Chemical Co. Ltd.		Chemicals		1,500		125,762
a	Shinsei Bank Ltd.		Banks		700		9,961
	Shionogi & Co. Ltd.		Pharmaceuticals		1,100		68,096
	Shiseido Co. Ltd.		Personal Products		1,500		108,240
	SHO-BOND Holdings Co. Ltd.		Construction & Engineering		100		6,677
	Shochiku Co. Ltd.		Entertainment		100		11,203
	Shoei Co. Ltd.		Real Estate Management & Development		1,300		12,755
	Showa Denko K.K.		Chemicals		500		17,572
	Showa Shell Sekiyu K.K.		Oil, Gas & Consumable Fuels		800		10,979
	Sky Perfect JSAT Holdings Inc.		Media		500		2,078
	Skylark Holdings Co. Ltd.		Hotels, Restaurants & Leisure		900		14,921
	SMC Corp.		Machinery		200		75,042
	Softbank Corp.		Wireless Telecommunication Services		6,000		67,597
	SoftBank Group Corp.		Wireless Telecommunication Services		3,200		310,647
	Sohgo Security Services Co. Ltd.		Commercial Services & Supplies		200		8,709
	Sojitz Corp.		Trading Companies & Distributors		4,700		16,561
	Sompo Holdings Inc.		Insurance		1,300		48,131
	Sony Corp.		Household Durables		4,800		201,437
	Sony Financial Holdings Inc.		Insurance		700		13,205
	Sotetsu Holdings Inc.		Road & Rail		300		9,229
	Square Enix Holdings Co. Ltd.		Entertainment		300		10,516
	Stanley Electric Co. Ltd.		Auto Components		500		13,439
	Subaru Corp.		Automobiles		2,300		52,417



240	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Japan Hedged ETF(continued)



	Industry		Shares		Value
Common Stocks (continued)
Japan (continued)
Sugi Pharmacy Co. Ltd.		Food & Staples Retailing		100	$	4,404
Sumco Corp.		Semiconductors & Semiconductor Equipment		900		10,010
Sumitomo Bakelite Co. Ltd.		Chemicals		100		3,582
Sumitomo Chemical Co. Ltd.		Chemicals		5,700		26,521
Sumitomo Corp.		Trading Companies & Distributors		4,200		58,095
Sumitomo Dainippon Pharma Co. Ltd.		Pharmaceuticals		600		14,837
Sumitomo Electric Industries Ltd.		Auto Components		2,900		38,475
Sumitomo Forestry Co. Ltd.		Household Durables		500		6,943
Sumitomo Heavy Industries Ltd.		Machinery		400		12,956
Sumitomo Metal Mining Co. Ltd.		Metals & Mining		900		26,589
Sumitomo Mitsui Financial Group Inc.		Banks		4,900		171,590
Sumitomo Osaka Cement Co. Ltd.		Construction Materials		200		7,878
Sumitomo Realty & Development Co. Ltd.		Real Estate Management & Development		1,500		62,149
Sumitomo Rubber Industries Ltd.		Auto Components		800		9,598
Sundrug Co. Ltd.		Food & Staples Retailing		200		5,511
Suntory Beverage & Food Ltd.		Beverages		500		23,490
Suzuken Co. Ltd.		Health Care Providers & Services		300		17,374
Suzuki Motor Corp.		Automobiles		1,600		70,803
Sysmex Corp.		Health Care Equipment & Supplies		700		42,309
T&D Holdings Inc.		Insurance		2,100		22,084
Tadano Ltd.		Machinery		400		3,798
Taiheiyo Cement Corp.		Construction Materials		400		13,335
Taisei Corp.		Construction & Engineering		800		37,150
Taisho Pharmaceutical Holdings Co. Ltd.		Pharmaceuticals		200		19,063
Taiyo Nippon Sanso Corp.		Chemicals		500		7,616
Taiyo Yuden Co. Ltd.		Electronic Equipment, Instruments & Components		500		9,834
Takara Bio Inc.		Biotechnology		200		4,638
Takara Holdings Inc.		Beverages		600		7,096
Takashimaya Co. Ltd.		Multiline Retail		500		6,659
Takeda Pharmaceutical Co. Ltd.		Pharmaceuticals		5,700		232,820
TDK Corp.		Electronic Equipment, Instruments & Components		500		39,165
TechnoPro Holdings Inc.		Professional Services		100		5,963
Teijin Ltd.		Chemicals		800		13,198
Terumo Corp.		Health Care Equipment & Supplies		2,400		73,289
The 77 Bank Ltd.		Banks		200		2,795
The Bank of Kyoto Ltd.		Banks		300		12,549
The Chiba Bank Ltd.		Banks		2,400		13,032
The Chugoku Bank Ltd.		Banks		600		5,632
The Chugoku Electric Power Co. Inc.		Electric Utilities		1,300		16,220
TheDai-ichi Life Holdings Inc.		Insurance		4,100		56,971
The Hiroshima Bank Ltd.		Banks		1,100		5,605
The Iyo Bank Ltd.		Banks		1,000		5,294
The Japan Steel Works Ltd.		Machinery		200		3,684
TheSan-In Godo Bank Ltd.		Banks		600		4,304
The Shiga Bank Ltd.		Banks		200		4,767
The Shizuoka Bank Ltd.		Banks		2,000		15,232
THK Co. Ltd.		Machinery		500		12,350
TIS Inc.		IT Services		300		14,202
Tobu Railway Co. Ltd.		Road & Rail		800		23,093
Toda Corp.		Construction & Engineering		900		5,529
Toho Co. Ltd.		Entertainment		400		16,064
Toho Gas Co. Ltd.		Gas Utilities		400		17,961
Tohoku Electric Power Co. Inc.		Electric Utilities		1,700		21,687
Tokai Carbon Co. Ltd.		Chemicals		800		9,989
Tokai Rika Co. Ltd.		Auto Components		200		3,410
Tokai Tokyo Financial Holdings Inc.		Capital Markets		800		2,898
Tokio Marine Holdings Inc.		Insurance		2,500		121,109



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STATEMENT OF INVESTMENTS

Franklin FTSE Japan Hedged ETF(continued)



		Industry			Shares		Value
	Common Stocks (continued)
	Japan (continued)
	Tokuyama Corp.		Chemicals			300	$	7,080
	Tokyo Broadcasting System Holdings Inc.		Media			200		3,661
	Tokyo Century Corp.		Diversified Financial Services			200		8,700
a	Tokyo Electric Power Co. Holdings Inc.		Electric Utilities			5,800		36,681
	Tokyo Electron Ltd.		Semiconductors & Semiconductor Equipment			600		86,733
	Tokyo Gas Co. Ltd.		Gas Utilities			1,600		43,272
	Tokyo Tatemono Co. Ltd.		Real Estate Management & Development			900		11,034
	TOKYU Corp.		Road & Rail			1,800		31,435
	Tokyu Fudosan Holdings Corp.		Real Estate Management & Development			2,300		13,756
	Topcon Corp.		Electronic Equipment, Instruments & Components			400		4,720
	Toppan Printing Co. Ltd.		Commercial Services & Supplies			1,000		15,097
	Toray Industries Inc.		Chemicals			5,600		35,765
	Toshiba Corp.		Industrial Conglomerates	��		2,100		66,879
	Toshiba Plant Systems & Services Corp.		Construction & Engineering			100		1,774
	Tosoh Corp.		Chemicals			1,100		17,104
	TOTO Ltd.		Building Products			500		21,209
	Toyo Seikan Group Holdings Ltd.		Containers & Packaging			600		12,289
	Toyo Suisan Kaisha Ltd.		Food Products			300		11,424
	Toyo Tire Corp.		Auto Components			400		4,535
	Toyobo Co. Ltd.		Chemicals			300		3,835
	Toyoda Gosei Co. Ltd.		Auto Components			300		6,353
	Toyota Boshoku Corp.		Auto Components			200		3,027
	Toyota Industries Corp.		Auto Components			600		30,085
	Toyota Motor Corp.		Automobiles			9,400		550,913
	Toyota Tsusho Corp.		Trading Companies & Distributors			900		29,313
	Trend Micro Inc.		Software			400		19,479
	TS TECH Co. Ltd.		Auto Components			200		5,755
	Tsumura & Co.		Pharmaceuticals			300		9,120
	Tsuruha Holdings Inc.		Food & Staples Retailing			100		8,131
	TV Asahi Holdings Corp.		Media			100		1,755
	Ube Industries Ltd.		Chemicals			400		8,222
	Ulvac Inc.		Semiconductors & Semiconductor Equipment			200		5,782
	Unicharm Corp.		Household Products			1,400		46,331
	Ushio Inc.		Electrical Equipment			400		4,669
	USS Co. Ltd.		Specialty Retail			800		14,846
	Wacoal Corp.		Textiles, Apparel & Luxury Goods			200		4,973
	Welcia Holdings Co. Ltd.		Food & Staples Retailing			200		6,785
	West Japan Railway Co.		Road & Rail			700		52,738
	Yahoo Japan Corp.		Interactive Media & Services			8,700		21,301
	Yakult Honsha Co. Ltd.		Food Products			500		34,964
	Yamada Denki Co. Ltd.		Specialty Retail			2,700		13,319
	Yamaguchi Financial Group Inc.		Banks			800		6,780
	Yamaha Corp.		Leisure Products			600		29,977
	Yamaha Motor Co. Ltd.		Automobiles			1,000		19,614
	Yamato Holdings Co. Ltd.		Air Freight & Logistics			1,300		33,579
	Yamato Kogyo Co. Ltd.		Metals & Mining			200		5,457
	Yamazaki Baking Co. Ltd.		Food Products			500		8,113
	Yaoko Co. Ltd.		Food & Staples Retailing			100		4,915
	YASKAWA Electric Corp.		Electronic Equipment, Instruments & Components			1,000		31,395
	Yokogawa Electric Corp.		Electronic Equipment, Instruments & Components			900		18,629
	Yokohama Rubber Co. Ltd.		Auto Components			400		7,430
	Zenkoku Hosho Co. Ltd.		Diversified Financial Services			200		6,993
	Zensho Holdings Co. Ltd.		Hotels, Restaurants & Leisure			300		6,949
	Zeon Corp.		Chemicals			500		5,059
	Zozo Inc.		Internet & Direct Marketing Retail			700		13,192

	Total Investments before Short Term Investments (Cost $15,777,530)							13,586,269



242	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Japan Hedged ETF(continued)



		Shares		Value
	Short Term Investments (Cost $28,014) 0.2%
	United States 0.2%
b,c	Institutional Fiduciary Trust Portfolio, 2.10%		28,014	$	28,014

	Total Investments (Cost $15,805,544) 98.2%				13,614,283
	Other Assets, less Liabilities 1.8%				255,352

	Net Assets 100.0%			$	13,869,635

^aNon-income producing.

^bSee Note 3(c) regarding investments in affiliated management investment companies.

^cThe rate shown is the annualizedseven-day effective yield at period end.

At March 31, 2019 the Fund had the following forward exchange contracts outstanding. See Note 1(c).


Forward Exchange Contracts

Currency	Counterparty^a		Type		Quantity		Contract Amount		Settlement Date		Unrealized Appreciation		Unrealized Depreciation
OTC Forward Exchange Contracts
Japanese Yen		BOFA		BUY		907,402,000	$	8,162,872		04/02/19	$	35,308	$	(122	)
Japanese Yen		BOFA		SELL		907,402,000		8,170,045		04/02/19		—		(28,012	)
Japanese Yen		HSBK		BUY		907,402,000		8,162,861		04/02/19		35,258		(62	)
Japanese Yen		HSBK		SELL		907,402,000		8,169,812		04/02/19		—		(28,245	)
Japanese Yen		MSCO		BUY		371,210,000		3,339,546		04/02/19		14,291		(85	)
Japanese Yen		MSCO		SELL		371,210,000		3,342,170		04/02/19		—		(11,582	)
Japanese Yen		UBSW		BUY		907,402,000		8,162,824		04/02/19		35,316		(82	)
Japanese Yen		UBSW		SELL		907,402,000		8,169,700		04/02/19		—		(28,358	)
Japanese Yen		BOFA		SELL		452,366,000		4,098,480		05/08/19		—		(1,178	)
Japanese Yen		HSBK		SELL		452,366,000		4,098,248		05/08/19		—		(1,409	)
Japanese Yen		MSCO		SELL		185,059,000		1,676,526		05/08/19		—		(608	)
Japanese Yen		UBSW		SELL		452,366,000		4,098,268		05/08/19		—		(1,389	)

Total Forward Exchange Contracts											$	120,173	$	(101,132	)

Net unrealized appreciation (depreciation)													$	19,041

^aMay be comprised of multiple contracts with the same counterparty, currency and settlement date.

At March 31, 2019, 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

Nikkei 225 Mini

Long

268,275

6/13/19

(1,640

)

*As of period end.

See Note 7 regarding other derivative information.



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FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin FTSE Latin America ETF



	Year Ended March 31, 2019^a

Per share operating performance (for a share outstanding throughout the year)

Net asset value, beginning of year	$	26.17


Income from investment operations^b:

Net investment income^c		0.38

Net realized and unrealized gains (losses)		(0.02	)


Total from investment operations		0.36


Less distributions from net investment income		(0.12	)


Net asset value, end of year	$	26.41


Total return^d		1.42%

Ratios to average net assets^e

Total expenses		0.19%

Net investment income		3.08%

Supplemental data

Net assets, end of year (000’s)		$2,641

Portfolio turnover rate^f		4.08%

^aFor the period October 9, 2018 (commencement of operations) to March 31, 2019.

^cBased on average daily shares outstanding.

^eRatios are annualized for periods less than one year.

^fPortfolio turnover rate excludes the value of portfolio securities received or delivered as a result of processing capital share transactions in Creation Units, if any.



244	Annual Report \| The accompanying notes are an integral part of these financial statements.	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2019

Franklin FTSE Latin America ETF



		Industry		Shares		Value
	Common Stocks 74.7%
	Brazil 39.0%
	Ambev SA		Beverages		17,200	$	74,383
	Atacadao Distribuicao Comercio e Industria Ltd.		Food & Staples Retailing		1,300		6,711
a	B2W Cia Digital		Internet & Direct Marketing Retail		700		7,594
	B3 SA – Brasil Bolsa Balcao		Capital Markets		7,800		64,377
	Banco Bradesco SA		Banks		3,500		34,040
	Banco BTG Pactual SA		Capital Markets		800		7,441
	Banco do Brasil SA		Banks		4,100		51,328
	Banco Santander Brasil SA		Banks		1,500		16,948
	BB Seguridade Participacoes SA		Insurance		2,700		18,399
	BR Malls Paricipacoes SA		Real Estate Management & Development		3,100		10,013
a	BRF SA		Food Products		2,200		12,804
	CCR SA		Transportation Infrastructure		4,400		13,273
a	Centrais Eletricas Brasileiras SA		Electric Utilities		1,200		11,313
a	Cia Siderurgica Nacional SA		Metals & Mining		2,400		10,021
	Cielo SA		IT Services		4,400		10,730
	Companhia de Saneamento Basico do Estado de Sao Paulo		Water Utilities		1,300		14,030
	Companhia Energetica de Minas Gerais		Electric Utilities		300		1,287
	Companhia Paranaense de Energia-Copel		Electric Utilities		200		1,650
	Cosan SA		Oil, Gas & Consumable Fuels		700		7,671
	CVC Brasil Operadora e Agencia de Viagens SA		Hotels, Restaurants & Leisure		500		7,034
	EDP-Energias do Brasil SA		Electric Utilities		1,200		5,236
	Embraer SA		Aerospace & Defense		2,900		13,749
	Energisa SA		Electric Utilities		735		7,658
	Engie Brasil SA		Independent Power and Renewable Electricity Producers		625		6,859
	Equatorial Energia SA		Electric Utilities		700		14,390
	Estacio Participacoes SA		Diversified Consumer Services		1,000		6,835
	Fleury SA		Health Care Providers & Services		900		4,718
	Grendene SA		Textiles, Apparel & Luxury Goods		1,000		2,153
	Guararapes Confeccoes SA		Textiles, Apparel & Luxury Goods		30		1,110
b	Hapvida Participacoes e Investimentos SA, Reg S		Health Care Providers & Services		500		3,952
	Hypera SA		Pharmaceuticals		1,600		10,648
	IRB Brasil Resseguros SA		Insurance		756		17,726
	JBS SA		Food Products		3,900		15,954
	Klabin SA		Containers & Packaging		2,600		11,378
	Kroton Educacional SA		Diversified Consumer Services		5,900		16,070
	Localiza Rent a Car SA		Road & Rail		2,200		18,689
	Lojas Americanas SA		Multiline Retail		1,000		3,397
	Lojas Renner SA		Multiline Retail		2,800		31,513
	M. Dias Branco SA		Food Products		300		3,349
	Magazine Luiza SA		Multiline Retail		291		12,925
	Multiplan Empreendimentos Imobiliarios SA		Real Estate Management & Development		1,200		7,212
	Natura Cosmeticos SA		Personal Products		700		8,164
	Notre Dame Intermedica Participacoes SA		Health Care Providers & Services		1,200		10,114
	Odontoprev SA		Health Care Providers & Services		1,000		4,214
	Petrobras Distribuidora SA		Specialty Retail		1,300		7,733
	Petroleo Brasileiro SA		Oil, Gas & Consumable Fuels		11,600		92,849
	Porto Seguro SA		Insurance		400		5,533
	Raia Drogasil SA		Food & Staples Retailing		899		15,085
a	Rumo SA		Road & Rail		4,400		21,651
	Sao Martinho SA		Food Products		600		2,828
	Sul America SA		Insurance		900		6,892
	Suzano Papel e Celulose SA		Paper & Forest Products		2,320		27,748
	Tim Participacoes SA		Wireless Telecommunication Services		3,200		9,694



franklintempleton.com	Annual Report	245

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Latin America ETF(continued)



		Industry			Shares		Value
	Common Stocks (continued)
	Brazil (continued)
	Transmissora Alianca de Energia Eletrica SA		Electric Utilities			900	$	5,735
	Ultrapar Participacoes SA		Oil, Gas & Consumable Fuels			1,682		20,314
	Vale SA		Metals & Mining			13,700		179,290
	Via Varejo SA		Specialty Retail			1,500		1,627
	Weg SA		Machinery			2,900		13,413


								1,029,452

	Chile 7.8%
	AES Gener SA		Independent Power and Renewable Electricity Producers			11,082		2,979
	Aguas Andinas SA, A		Water Utilities			10,875		6,183
	Banco de Chile		Banks			109,627		16,141
	Banco de Credito e Inversiones SA		Banks			169		10,804
	Banco Santander Chile SA		Banks			245,047		18,434
	Cencosud SA		Food & Staples Retailing			5,256		9,100
	Colbun SA		Independent Power and Renewable Electricity Producers			27,691		6,259
	Compania Cervecerias Unidas SA		Beverages			580		8,304
	ECL SA		Electric Utilities			1,905		3,666
	Empresa Nacional de Telecomunicaciones SA		Wireless Telecommunication Services			540		5,623
	Empresas CMPC SA		Paper & Forest Products			4,383		15,459
	Empresas COPEC SA		Oil, Gas & Consumable Fuels			1,926		24,454
	Enel Americas SA		Electric Utilities			108,556		19,300
	Enel Chile SA		Electric Utilities			107,676		11,282
	Itau CorpBanca		Banks			660,636		5,825
	Latam Airlines Group SA		Airlines			1,216		12,929
	Parque Arauco SA		Real Estate Management & Development			2,354		6,296
	Plaza SA		Real Estate Management & Development			912		2,171
	SACI Falabella		Multiline Retail			2,852		21,207


								206,416

	Colombia 2.3%
	Almacenes Exito SA		Food & Staples Retailing			791		3,606
	Bancolombia SA		Banks			1,088		13,525
a	Corporacion Financiera Colombiana SA		Diversified Financial Services			394		3,278
	Ecopetrol SA		Oil, Gas & Consumable Fuels			18,890		20,251
	Grupo de Inversiones Suramericana SA		Diversified Financial Services			998		11,479
	Interconexion Electrica SA ESP		Electric Utilities			1,669		8,362


								60,501

	Mexico 22.7%
	Alfa SAB de CV		Industrial Conglomerates			11,994		12,756
	Alpek SAB de CV		Chemicals			1,499		2,005
	Alsea de Mexico SAB de CV		Hotels, Restaurants & Leisure			2,070		4,340
	America Movil SAB de CV, L		Wireless Telecommunication Services			108,693		77,776
	Arca Continental SAB de CV		Beverages			1,538		8,573
	Banco del Bajio SA		Banks			2,732		5,431
	Banco Santander (Mexico), SA, Institucion de Banca Multiple, Grupo Financiero Santander, B		Banks			6,727		9,200
	Becle SA de CV		Beverages			2,171		3,344
a	Cemex SAB de CV		Construction Materials			59,773		27,949
	Coca-Cola FEMSA SA de CV, L		Beverages			2,065		13,659
	Concentradora Fibra Danhos SA de CV		Equity Real Estate Investment Trusts (REITs	)		900		1,285
	El Puerto de Liverpool SAB de CV		Multiline Retail			782		4,963
	Fibra Uno Administracion SA de CV		Equity Real Estate Investment Trusts (REITs	)		11,930		16,495
	Fomento Economico Mexicano SAB de CV		Beverages			8,344		77,063
c	GMexico Transportes SAB de CV, 144A		Road & Rail			1,706		2,272



246	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Latin America ETF(continued)



		Industry		Shares		Value
	Common Stocks (continued)
	Mexico (continued)
	Gruma SAB de CV		Food Products		801	$	8,184
	Grupo Aeroportuario del Centro Norte SAB de CV		Transportation Infrastructure		1,271		7,187
	Grupo Aeroportuario del Pacifico SAB de CV		Transportation Infrastructure		1,394		12,384
	Grupo Aeroportuario del Sureste SAB de CV, B		Transportation Infrastructure		800		12,935
	Grupo Bimbo SAB de CV, A		Food Products		9,440		19,749
	Grupo Carso SAB de CV		Industrial Conglomerates		1,898		7,465
	Grupo Comercial Chedraui SA de CV		Food & Staples Retailing		1,193		2,315
	Grupo Elektra SAB de CV		Banks		258		13,958
	Grupo Financiero Banorte SAB de CV		Banks		11,167		60,759
	Grupo Financiero Inbursa SAB de CV		Banks		8,897		12,334
	Grupo Lala SAB de CV		Food Products		2,287		2,973
	Grupo Mexico SAB de CV, B		Metals & Mining		14,260		39,227
	Grupo Televisa SA		Media		9,835		21,797
	Industrias Bachoco SAB de CV, B		Food Products		636		2,446
	Industrias Penoles SA		Metals & Mining		508		6,353
	Infraestructura Energetica Nova SAB de CV		Gas Utilities		2,026		8,148
	Kimberly-Clark de Mexico SAB de CV, A		Household Products		3,301		5,606
	Megacable Holdings SAB de CV		Media		1,169		5,428
	Mexichem SAB de CV		Chemicals		4,073		9,745
	Nemak SAB de CV		Auto Components		2,356		1,364
	Promotora y Operadora de Infraestructura SAB de CV		Transportation Infrastructure		847		8,419
	Regional SAB de CV		Banks		899		4,538
a	Telesites SAB de CV		Diversified Telecommunication Services		5,098		3,306
	Wal-Mart de Mexico SAB de CV, V		Food & Staples Retailing		20,361		54,499


							598,230

	Peru 2.9%
	Compania de Minas Buenaventura SA, ADR		Metals & Mining		834		14,411
	Credicorp Ltd.		Banks		263		63,107


							77,518

	Total Common Stocks (Cost $2,011,612)						1,972,117

	Preferred Stocks 24.8%
	Brazil 22.9%
d	Alpargatas SA, 0.858%, pfd.		Textiles, Apparel & Luxury Goods		750		2,964
a	Azul SA, pfd.		Airlines		800		7,867
d	Banco Bradesco SA, 2.673%, pfd.		Banks		13,100		144,542
d	Banco do Estado do Rio Grande do Sul SA, 8.317%, pfd., B		Banks		800		4,973
d	Bradespar SA, 6.047%, pfd.		Metals & Mining		900		7,377
d	Braskem SA, 3.705%, pfd., A		Chemicals		800		10,463
a	Centrais Eletricas Brasileiras SA, pfd., B		Electric Utilities		900		8,756
d	Cia de Transmissao de Energia Eletrica Paulista, 16.291%, pfd.		Electric Utilities		200		3,964
d	Companhia Brasileira de Distribuicao, 2.314%, pfd., A		Food & Staples Retailing		619		14,547
d	Companhia de Gas de Sao Paulo, 5.957%, pfd., A		Gas Utilities		100		2,105
d	Companhia Energetica de Minas Gerais, 4.633%, pfd.		Electric Utilities		3,700		13,215
d	Companhia Paranaense de Energia, 3.195%, pfd., B		Electric Utilities		400		3,741
d	Gerdau SA, 2.972%, pfd.		Metals & Mining		4,200		16,339
d	Itau Unibanco Holding SA, 4.179%, pfd.		Banks		18,500		163,670
d	Itausa-Investimentos Itau SA, 3.414%, pfd.		Banks		17,200		52,948
d	Lojas Americanas SA, 0.447%, pfd.		Multiline Retail		2,900		12,497
d	Petroleo Brasileiro SA, 3.207%, pfd.		Oil, Gas & Consumable Fuels		15,600		112,479
d	Telefonica Brasil SA, 9.571%, pfd.		Diversified Telecommunication Services		1,600		19,529
d	Usinas Siderurgicas de Minas Gerais SA, 1.265%, pfd., A		Metals & Mining		1,600		4,128


							606,104



franklintempleton.com	Annual Report	247

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Latin America ETF(continued)



		Industry		Shares		Value
	Preferred Stocks (continued)
	Chile 0.7%
d	Embotelladora Andina SA, 3.807%, pfd., B		Beverages		778	$	2,841
d	Sociedad Quimica y Minera de Chile SA, 5.025%, pfd., B		Chemicals		375		14,411


							17,252

	Colombia 1.2%
d	Bancolombia SA, 2.569%, pfd.		Banks		1,777		22,537
d	Grupo Aval Acciones y Valores SA, 3.968%, pfd.		Banks		16,084		6,236
d	Grupo de Inversiones Suramericana SA, 1.506%, pfd.		Diversified Financial Services		306		3,304


							32,077

	Total Preferred Stocks (Cost $614,459)						655,433

	Total Investments (Cost $2,626,071) 99.5%						2,627,550
	Other Assets, less Liabilities 0.5%						13,160

	Net Assets 100.0%					$	2,640,710

^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. This security has been deemed liquid under guidelines approved by the Fund’s Board of Trustees. At March 31, 2019, the value of this security was $3,952, representing 0.1% of net assets.

^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. This security has been deemed liquid under guidelines approved by the Fund’s Board of Trustees. At March 31, 2019, the value of this security was $2,272, representing 0.1% of net assets.

^dVariable rate security. The rate shown represents the yield at period end.

At March 31, 2019, 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 Bovespa Index

Long

14,695

4/17/19

(245

)

*As of period end.

See Abbreviations on page 322.

See Note 7 regarding other derivative information.



248	Annual Report \| The accompanying notes are an integral part of these financial statements.	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin FTSE Mexico ETF



	Year Ended March 31,

	2019			2018^a

Per share operating performance (for a share outstanding throughout the year)

Net asset value, beginning of year	$	24.98		$	24.90


Income from investment operations^b:

Net investment income^c		0.51			0.12

Net realized and unrealized gains (losses)		(2.86	)		0.04


Total from investment operations		(2.35	)		0.16


Less distributions from net investment income		(0.52	)		(0.08	)


Net asset value, end of year	$	22.11		$	24.98


Total return^d		(9.28)%			0.63%

Ratios to average net assets^e

Total expenses		0.19%			0.19%

Net investment income		2.21%			1.18%

Supplemental data

Net assets, end of year (000’s)		$4,422			$2,498

Portfolio turnover rate^f		10.31%			9.64%

^aFor the period November 3, 2017 (commencement of operations) to March 31, 2018.

^cBased on average daily shares outstanding.

^eRatios are annualized for periods less than one year.

^fPortfolio turnover rate excludes the value of portfolio securities received or delivered as a result of processing capital share transactions in Creation Units, if any.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	249

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2019

Franklin FTSE Mexico ETF



		Industry			Shares		Value
	Common Stocks 99.9%
	Mexico 99.9%
	Alfa SAB de CV		Industrial Conglomerates			97,108	$	103,278
	Alpek SAB de CV		Chemicals			12,172		16,277
	Alsea de Mexico SAB de CV		Hotels, Restaurants & Leisure			16,720		35,056
	America Movil SAB de CV, L		Wireless Telecommunication Services			744,664		532,849
	Arca Continental SAB de CV		Beverages			12,432		69,301
a	Banco del Bajio SA, 144A		Banks			22,084		43,900
	Banco Santander (Mexico), SA, Institucion de Banca Multiple, Grupo Financiero Santander, B		Banks			54,344		74,326
	Becle SA de CV		Beverages			17,564		27,056
b	Cemex SAB de CV		Construction Materials			411,332		192,333
	Coca-Cola FEMSA SA de CV, L		Beverages			16,456		108,853
	Concentradora Fibra Danhos SA de CV		Equity Real Estate Investment Trusts (REITs	)		7,312		10,442
	El Puerto de Liverpool SAB de CV		Multiline Retail			6,324		40,133
	Fibra Uno Administracion SA de CV		Equity Real Estate Investment Trusts (REITs	)		93,028		128,625
	Fomento Economico Mexicano SAB de CV		Beverages			57,176		528,062
a	GMexico Transportes SAB de CV, 144A		Road & Rail			13,768		18,334
	Gruma SAB de CV		Food Products			6,492		66,334
	Grupo Aeroportuario del Centro Norte SAB de CV		Transportation Infrastructure			10,276		58,104
	Grupo Aeroportuario del Pacifico SAB de CV		Transportation Infrastructure			11,284		100,243
	Grupo Aeroportuario del Sureste SAB de CV, B		Transportation Infrastructure			6,484		104,840
	Grupo Bimbo SAB de CV, A		Food Products			71,820		150,249
	Grupo Carso SAB de CV		Industrial Conglomerates			15,352		60,379
	Grupo Comercial Chedraui SA de CV		Food & Staples Retailing			9,656		18,737
	Grupo Elektra SAB de CV		Banks			2,068		111,880
	Grupo Financiero Banorte SAB de CV		Banks			77,464		421,475
	Grupo Financiero Inbursa SAB de CV		Banks			71,956		99,750
	Grupo Lala SAB de CV		Food Products			18,416		23,944
	Grupo Mexico SAB de CV, B		Metals & Mining			101,940		280,424
	Grupo Televisa SA		Media			72,812		161,371
	Industrias Bachoco SAB de CV, B		Food Products			5,144		19,780
	Industrias Penoles SA		Metals & Mining			3,972		49,673
	Infraestructura Energetica Nova SAB de CV		Gas Utilities			16,496		66,341
b	Kimberly-Clark de Mexico SAB de CV, A		Household Products			26,688		45,320
	Megacable Holdings SAB de CV		Media			9,588		44,521
	Mexichem SAB de CV		Chemicals			33,016		78,993
a	Nemak SAB de CV, 144A		Auto Components			19,056		11,032
	Promotora y Operadora de Infraestructura SAB de CV		Transportation Infrastructure			6,852		68,109
	Regional SAB de CV		Banks			7,264		36,666
b	Telesites SAB de CV		Diversified Telecommunication Services			41,000		26,590
	Wal-Mart de Mexico SAB de CV, V		Food & Staples Retailing			142,496		381,410

	Total Investments (Cost $4,748,473) 99.9%							4,414,990
	Other Assets, less Liabilities 0.1%							6,628

	Net Assets 100.0%						$	4,421,618

See Abbreviations on page 322.

^bNon-income producing.



250	Annual Report \| The accompanying notes are an integral part of these financial statements.	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin FTSE Russia ETF



	Year Ended March 31,

	2019			2018^a

Per share operating performance (for a share outstanding throughout the year)

Net asset value, beginning of year	$	24.24		$	23.90


Income from investment operations^b:

Net investment income^c		1.03			(—	)^d

Net realized and unrealized gains (losses)		(1.26	)		0.34


Total from investment operations		(0.23	)		0.34


Less distributions from net investment income		(0.64	)		—


Net asset value, end of year	$	23.37		$	24.24


Total return^e		(0.63)%			1.42%

Ratios to average net assets^f

Total expenses		0.19%			0.19%

Net investment income (loss)		4.57%			(0.13)%

Supplemental data

Net assets, end of year (000’s)		$11,683			$2,424

Portfolio turnover rate^g		31.57%			7.58%

^aFor the period February 6, 2018 (commencement of operations) to March 31, 2018.

^cBased on average daily shares outstanding.

^dAmount rounds to less than $0.01 per share.

^fRatios are annualized for periods less than one year.

^gPortfolio turnover rate excludes the value of portfolio securities received or delivered as a result of processing capital share transactions in Creation Units, if any.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	251

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2019

Franklin FTSE Russia ETF



		Industry		Shares		Value
	Common Stocks 94.3%
	Russia 94.3%
	Aeroflot – Russian Airlines PJSC		Airlines		71,380	$	104,629
	Alrosa PJSC		Metals & Mining		202,860		285,373
	Federal Grid Co. Unified Energy System PJSC		Electric Utilities		35,381,300		88,376
	Federal Hydrogenerating Co.		Electric Utilities		15,641,410		119,232
	Gazprom PJSC		Oil, Gas & Consumable Fuels		604,220		1,375,963
	Inter RAO UES PJSC		Electric Utilities		4,513,900		256,759
	LUKOIL PJSC		Oil, Gas & Consumable Fuels		26,640		2,389,987
	Magnit PJSC		Food & Staples Retailing		5,090		282,014
	Magnitogorsk Iron & Steel Works		Metals & Mining		241,990		169,068
	MMC Norilsk Nickel PJSC		Metals & Mining		1,770		369,640
	Mobile TeleSystems PJSC		Wireless Telecommunication Services		74,850		287,619
a	Moscow Exchange MICEX		Capital Markets		184,950		257,026
	Mosenergo PAO		Electric Utilities		1,091,020		34,841
	NLMK PJSC		Metals & Mining		105,900		274,835
	NovaTek PJSC		Oil, Gas & Consumable Fuels		30,800		505,477
	PhosAgro PJSC		Chemicals		4,830		175,930
	Polyus Gold OJSC		Metals & Mining		3,010		249,102
	Rosneft PJSC		Oil, Gas & Consumable Fuels		56,190		352,377
	Rosseti PJSC		Electric Utilities		3,986,850		58,864
	Rostelecom PJSC		Diversified Telecommunication Services		115,520		127,499
a	RussNeft PJSC		Oil, Gas & Consumable Fuels		6,070		53,052
	Sberbank of Russia PJSC		Banks		588,090		1,919,377
	Severstal PJSC		Metals & Mining		17,880		279,777
	Sistema PJSFC		Wireless Telecommunication Services		384,660		55,869
	Surgutneftegas PJSC		Oil, Gas & Consumable Fuels		332,600		125,932
	Tatneft PAO		Oil, Gas & Consumable Fuels		42,040		483,126
	Unipro PJSC		Independent Power and Renewable Electricity Producers		1,407,410		55,377
	VTB Bank PJSC		Banks		512,845,630		278,251

	Total Common Stocks (Cost $10,523,511)						11,015,372

	Preferred Stocks 5.5%
	Russia 5.5%
b	Bashneft PJSC, 8.767%, pfd.		Oil, Gas & Consumable Fuels		2,620		72,302
b	Surgutneftegas PJSC, 3.367%, pfd.		Oil, Gas & Consumable Fuels		359,830		224,450
b	Tatneft PJSC, 11.597%, pfd., 3		Oil, Gas & Consumable Fuels		4,150		35,235
b	Transneft PJSC, 4.294%, pfd.		Oil, Gas & Consumable Fuels		118		317,014

	Total Preferred Stocks (Cost $604,813)						649,001

	Total Investments (Cost $11,128,324) 99.8%						11,664,373
	Other Assets, less Liabilities 0.2%						18,642

	Net Assets 100.0%					$	11,683,015

^aNon-income producing.

^bVariable rate security. The rate shown represents the yield at period end.



252	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



	Year Ended March 31, 2019^a

Per share operating performance (for a share outstanding throughout the year)

Net asset value, beginning of year	$	24.71


Income from investment operations^b:

Net investment income^c		0.11

Net realized and unrealized gains (losses)		3.07


Total from investment operations		3.18


Net asset value, end of year	$	27.89


Total return^d		12.87%

Ratios to average net assets^e

Total expenses		0.39%

Net investment income		0.93%

Supplemental data

Net assets, end of year (000’s)		$2,789

Portfolio turnover rate^f		12.41%

^aFor the period October 9, 2018 (commencement of operations) to March 31, 2019.

^cBased on average daily shares outstanding.

^eRatios are annualized for periods less than one year.

^fPortfolio turnover rate excludes the value of portfolio securities received or delivered as a result of processing capital share transactions in Creation Units, if any.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	253

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2019

Franklin FTSE Saudi Arabia ETF



		Industry		Shares		Value
	Common Stocks 100.0%
	Saudi Arabia 100.0%
	Abdullah Al Othaim Markets Co.		Food & Staples Retailing		930	$	17,780
	Advanced Petrochemical Co.		Chemicals		2,100		31,189
a	Al Hammadi Co. for Development and Investment		Health Care Providers & Services		1,364		9,063
	Al Rajhi Bank		Banks		12,946		367,977
	Al Tayyar Travel Group Holding Co.		Hotels, Restaurants & Leisure		2,280		17,205
	Alinma Bank		Banks		13,586		87,739
	Almarai Co. JSC		Food Products		7,628		112,070
	BankAl-Jazira		Banks		8,724		38,847
	Bank Albilad		Banks		6,280		49,398
	Bupa Arabia for Cooperative Insurance Co.		Insurance		1,308		28,983
	Dallah Healthcare Co.		Health Care Providers & Services		670		8,620
	Dar Al Arkan Real Estate Development Co.		Real Estate Management & Development		11,368		32,616
a	Emaar Economic City		Real Estate Management & Development		9,010		23,496
a	Etihad Etisalat Co.		Wireless Telecommunication Services		8,018		46,564
a	Fawaz Abdulaziz Al Hokair & Co.		Specialty Retail		1,438		9,570
	Jarir Marketing Co.		Specialty Retail		1,246		52,493
	Middle East Healthcare Co.		Health Care Providers & Services		846		7,196
a	Mobile Telecommunications Co.		Wireless Telecommunication Services		6,162		18,139
	Mouwasat Medical Services Co.		Health Care Providers & Services		1,028		21,929
	National Commercial Bank		Banks		17,804		260,626
a	National Industrialization Co.		Chemicals		7,336		35,327
	National Petrochemical Co.		Chemicals		1,822		13,020
	Rabigh Refining and Petrochemical Co.		Oil, Gas & Consumable Fuels		4,852		25,901
	Riyad Bank		Banks		20,020		128,543
	Sahara Petrochemical Co.		Chemicals		4,908		21,567
	Samba Financial Group		Banks		16,840		172,426
	Saudi Airlines Catering Co.		Hotels, Restaurants & Leisure		830		17,926
	Saudi Arabian Fertilizer Co.		Chemicals		3,436		75,402
a	Saudi Arabian Mining Co.		Metals & Mining		6,858		100,209
	Saudi Basic Industries Corp.		Chemicals		12,096		399,292
	Saudi Cement Co.		Construction Materials		1,602		25,203
	Saudi Electricity Co.		Electric Utilities		16,750		73,693
	Saudi Ground Services Co.		Transportation Infrastructure		1,492		11,696
	Saudi Industrial Investment Group		Chemicals		4,890		32,075
	Saudi International Petrochemical Co.		Chemicals		4,006		21,727
a	Saudi Kayan Petrochemical Co.		Chemicals		10,644		39,961
	Saudi Pharmaceutical Industries & Medical Appliances Corp.		Pharmaceuticals		1,262		9,288
	Saudi Telecom Co.		Diversified Telecommunication Services		5,882		168,131
	SavolaAl-Azizia United Co.		Food Products		5,572		46,652
a	The Company for Cooperative Insurance		Insurance		1,350		20,914
	The Qassim Cement		Construction Materials		930		9,770
	Yanbu Cement		Construction Materials		1,638		12,360
	Yanbu National Petrochemical Co.		Chemicals		4,258		84,925

	Total Investments (Cost $2,490,530) 100.0%						2,787,508
	Other Assets, less Liabilities 0.0%^†						1,371

	Net Assets 100.0%					$	2,788,879

^†Rounds to less than 0.1% of net assets.

^aNon-income producing.



254	Annual Report \| The accompanying notes are an integral part of these financial statements.	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin FTSE South Africa ETF



	Year Ended March 31, 2019^a

Per share operating performance (for a share outstanding throughout the year)

Net asset value, beginning of year	$	24.42


Income from investment operations^b:

Net investment income^c		0.22

Net realized and unrealized gains (losses)		2.04


Total from investment operations		2.26


Less distributions from net investment income		(0.06	)


Net asset value, end of year	$	26.62


Total return^d		9.26%

Ratios to average net assets^e

Total expenses		0.19%

Net investment income		1.75%

Supplemental data

Net assets, end of year (000’s)		$2,662

Portfolio turnover rate^f		7.12%

^aFor the period October 10, 2018 (commencement of operations) to March 31, 2019.

^cBased on average daily shares outstanding.

^eRatios are annualized for periods less than one year.

^fPortfolio turnover rate excludes the value of portfolio securities received or delivered as a result of processing capital share transactions in Creation Units, if any.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	255

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2019

Franklin FTSE South Africa ETF



		Industry			Shares		Value
	Common Stocks 99.7%
	Isle Of Man 0.2%
	MAS Real Estate Inc.		Real Estate Management & Development			3,850	$	5,847

	Romania 1.0%
	NEPI Rockcastle PLC		Real Estate Management & Development			2,996		25,229

	South Africa 97.6%
	Absa Group Ltd.		Banks			6,238		65,792
	African Rainbow Minerals Ltd.		Metals & Mining			910		10,708
	Anglo American Platinum Ltd.		Metals & Mining			532		27,157
	AngloGold Ashanti Ltd.		Metals & Mining			3,570		47,428
	Aspen Pharmacare Holdings Ltd.		Pharmaceuticals			3,272		21,096
	Assore Ltd.		Metals & Mining			294		7,625
	Attacq Ltd.	��	Equity Real Estate Investment Trusts (REITs	)		6,174		6,143
	AVI Ltd.		Food Products			2,936		18,382
	Barloworld Ltd.		Trading Companies & Distributors			1,866		16,433
	Bid Corp. Ltd.		Food & Staples Retailing			2,926		60,463
	Bidvest Group Ltd.		Industrial Conglomerates			2,964		39,770
a	Brait SE		Capital Markets			2,892		4,813
	Capitec Bank Holdings Ltd.		Banks			468		43,810
	Clicks Group Ltd.		Food & Staples Retailing			2,214		28,281
	Coronation Fund Managers Ltd.		Capital Markets			2,306		7,346
b	Dis-Chem Pharmacies Ltd., Reg S		Food & Staples Retailing			3,552		5,970
	Discovery Ltd.		Insurance			3,018		28,629
	Distell Group Holdings Ltd		Beverages			706		6,307
	Exxaro Resources Ltd.		Oil, Gas & Consumable Fuels			2,208		25,163
	FirstRand Ltd.		Diversified Financial Services			28,026		122,355
	Fortress REIT Ltd., A		Equity Real Estate Investment Trusts (REITs	)		10,246		13,044
	Fortress REIT Ltd., B		Equity Real Estate Investment Trusts (REITs	)		7,422		5,548
	Gold Fields Ltd.		Metals & Mining			7,084		26,172
	Growthpoint Properties Ltd.		Equity Real Estate Investment Trusts (REITs	)		25,532		43,234
a	Harmony Gold Mining Co. Ltd.		Metals & Mining			4,046		7,586
	Hyprop Investments Ltd.		Equity Real Estate Investment Trusts (REITs	)		2,212		10,811
a	Impala Platinum Holdings Ltd.		Metals & Mining			5,916		25,024
	Imperial Logistics Ltd.		Air Freight & Logistics			1,498		6,219
	Investec Ltd.		Capital Markets			2,648		15,486
	JSE Ltd.		Capital Markets			750		6,872
	KAP Industrial Holdings Ltd.		Industrial Conglomerates			16,790		8,185
	Kumba Iron Ore Ltd.		Metals & Mining			462		13,785
	Liberty Holdings Ltd.		Insurance			1,036		7,258
	Life Healthcare Group Holdings Ltd.		Health Care Providers & Services			12,164		22,639
	Massmart Holdings Ltd.		Food & Staples Retailing			888		4,895
	MMI Holdings Ltd.		Insurance			8,960		10,307
	Motus Holdings Ltd.		Specialty Retail			1,566		8,885
	Mr. Price Group Ltd.		Specialty Retail			2,196		28,859
	MTN Group Ltd.		Wireless Telecommunication Services			15,860		97,461
a	MultiChoice Group Ltd.		Media			3,752		31,403
	Naspers Ltd., N		Internet & Direct Marketing Retail			2,480		573,023
	Nedbank Group Ltd.		Banks			3,478		60,592
	Netcare Ltd.		Health Care Providers & Services			12,844		20,796
a	Northam Platinum Ltd.		Metals & Mining			3,158		13,905
	Old Mutual Ltd.		Insurance			42,584		64,579
b	PepKor Holdings Ltd., Reg S		Household Durables			6,144		7,498
	Pick ‘N Pay Stores Ltd.		Food & Staples Retailing			3,034		13,972
	Pioneer Foods Group Ltd.		Food Products			1,286		7,145
	PSG Group Ltd.		Diversified Financial Services			1,432		25,966
	Rand Merchant Investment Holdings Ltd.		Insurance			6,586		15,313
	Redefine Properties Ltd.		Equity Real Estate Investment Trusts (REITs	)		49,192		33,087
	Remgro Ltd.		Diversified Financial Services			4,544		58,374
	Resilient REIT Ltd.		Equity Real Estate Investment Trusts (REITs	)		2,508		9,513



256	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE South Africa ETF(continued)



		Industry			Shares		Value
	Common Stocks (continued)
	South Africa (continued)
	Reunert Ltd.		Industrial Conglomerates			1,420	$	6,991
	RMB Holdings Ltd.		Diversified Financial Services			6,636		34,963
	Sanlam Ltd.		Insurance			15,340		78,459
	Santam Ltd.		Insurance			364		7,603
	Sappi Ltd.		Paper & Forest Products			4,890		22,600
	Sasol Ltd.		Chemicals			4,904		153,024
	Shoprite Holdings Ltd.		Food & Staples Retailing			4,154		45,687
a	Sibanye Gold Ltd.		Metals & Mining			15,860		17,299
	Standard Bank Group Ltd.		Banks			11,242		144,395
a	Super Group Ltd.		Specialty Retail			3,240		7,477
	Telkom SA SOC Ltd.		Diversified Telecommunication Services			2,582		13,056
	The Foschini Group Ltd.		Specialty Retail			2,020		22,832
	The Spar Group Ltd.		Food & Staples Retailing			1,694		22,539
	Tiger Brands Ltd.		Food Products			1,416		26,020
	Truworths International Ltd.		Specialty Retail			3,764		18,111
	Tsogo Sun Holdings Ltd.		Hotels, Restaurants & Leisure			4,770		6,387
	Vodacom Group Ltd.		Wireless Telecommunication Services			5,602		43,285
	Vukile Property Fund Ltd.		Equity Real Estate Investment Trusts (REITs	)		6,904		9,575
	Woolworths Holdings Ltd.		Multiline Retail			8,406		27,093


								2,598,503

	United Kingdom 0.9%
	Mondi Ltd.		Paper & Forest Products			1,038		22,945

	Total Investments (Cost $2,443,812) 99.7%							2,652,524
	Other Assets, less Liabilities 0.3%							9,273

	Net Assets 100.0%						$	2,661,797

See Abbreviations on page 322.

^aNon-income producing.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	257

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin FTSE South Korea ETF



	Year Ended March 31,

	2019			2018^a

Per share operating performance (for a share outstanding throughout the year)

Net asset value, beginning of year	$	25.98		$	25.75


Income from investment operations^b:

Net investment income^c		0.40			0.10

Net realized and unrealized gains (losses)		(4.81	)		0.40


Total from investment operations		(4.41	)		0.50


Less distributions from net investment income		(0.38	)		(0.27	)


Net asset value, end of year	$	21.19		$	25.98


Total return^d		(16.92)%			1.95%

Ratios to average net assets^e

Total expenses		0.09%			0.09%

Net investment income		1.74%			0.94%

Supplemental data

Net assets, end of year (000’s)		$16,948			$25,981

Portfolio turnover rate^f		5.21%			3.85%

^aFor the period November 2, 2017 (commencement of operations) to March 31, 2018.

^cBased on average daily shares outstanding.

^eRatios are annualized for periods less than one year.

^fPortfolio turnover rate excludes the value of portfolio securities received or delivered as a result of processing capital share transactions in Creation Units, if any.



258	Annual Report \| The accompanying notes are an integral part of these financial statements.	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2019

Franklin FTSE South Korea ETF



		Industry		Shares		Value
	Common Stocks and Other Equity Interests 94.4%
	South Korea 94.4%
	Amorepacific Corp.		Personal Products		880	$	146,137
	AmorePacific Group		Personal Products		808		49,543
	BGF Co. Ltd.		Industrial Conglomerates		768		5,535
	BGF Retail Co. Ltd.		Food & Staples Retailing		176		33,879
	BNK Financial Group Inc.		Banks		8,064		47,456
a	Celltrion Healthcare Co. Ltd.		Health Care Providers & Services		1,440		84,743
a	Celltrion Inc.		Biotechnology		2,224		354,633
	Cheil Worldwide Inc.		Media		1,944		41,446
	CJ CheilJedang Corp.,		Food Products		216		61,464
	CJ Corp.		Industrial Conglomerates		344		37,731
	CJ ENM Co. Ltd.		Internet & Direct Marketing Retail		272		55,833
a	CJ Logistics Corp.		Road & Rail		208		30,327
	Coway Co. Ltd.		Household Durables		1,568		130,540
	Daelim Industrial Co. Ltd.		Construction & Engineering		752		63,865
a	Daewoo Engineering & Construction Co. Ltd.		Construction & Engineering		4,904		21,947
a	Daewoo Shipbuilding & Marine Engineering Co. Ltd.		Machinery		1,320		32,503
	DB Insurance Co. Ltd.		Insurance		1,312		79,407
	DGB Financial Group Inc.		Banks		4,280		30,806
	Dongsuh Cos. Inc.		Food & Staples Retailing		864		14,995
	Doosan Bobcat Inc.		Machinery		672		18,293
	Doosan Corp.		Industrial Conglomerates		144		11,747
a	Doosan Heavy Industries & Construction Co. Ltd., rts., 5/9/19		Electrical Equipment		1,119		1,124
a	Doosan Heavy Industries and Construction Co. Ltd.		Electrical Equipment		1,928		11,363
a	Doosan Infracore Co. Ltd.		Machinery		3,664		22,757
	E-MART Inc.		Food & Staples Retailing		560		84,856
	Fila Korea Ltd.		Textiles, Apparel & Luxury Goods		1,448		99,501
	GS Engineering & Construction Corp.		Construction & Engineering		1,616		60,648
	GS Holdings Corp.		Oil, Gas & Consumable Fuels		1,416		65,866
	GS Retail Co. Ltd.		Food & Staples Retailing		736		25,385
	Hana Financial Group Inc.		Banks		8,280		265,520
	Hankook Tire Co. Ltd.		Auto Components		2,088		68,889
	Hanmi Pharm Co. Ltd.		Pharmaceuticals		196		78,738
	Hanmi Science Co. Ltd.		Pharmaceuticals		368		25,093
	Hanon Systems		Auto Components		4,504		45,036
	Hanssem Co. Ltd.		Household Durables		272		21,998
a	Hanwha Aerospace Co. Ltd.		Aerospace & Defense		984		29,821
	Hanwha Chemical Corp.		Chemicals		2,288		42,128
	Hanwha Corp.		Industrial Conglomerates		1,184		31,710
	Hanwha Life Insurance Co. Ltd.		Insurance		7,720		27,205
	HDC Holdings Co. Ltd.		Construction & Engineering		1,016		16,962
	HDC Hyundai DevelopmentCo-Engineering & Construction		Construction & Engineering		856		38,234
	Hite Jinro Co. Ltd.		Beverages		856		13,951
a	HLB Inc.		Leisure Products		984		69,351
	Hotel Shilla Co. Ltd.		Specialty Retail		864		72,615
	Hyosung TNC Co. Ltd.		Textiles, Apparel & Luxury Goods		80		12,193
	Hyundai Construction Equipment Co. Ltd.		Machinery		352		14,776
	Hyundai Department Store Co. Ltd.		Multiline Retail		424		37,727
	Hyundai Engineering & Construction Co. Ltd.		Construction & Engineering		2,032		95,594
	Hyundai Glovis Co. Ltd.		Air Freight & Logistics		512		57,961
a	Hyundai Heavy Industries Co. Ltd.		Machinery		1,200		125,804
	Hyundai Heavy Industries Holdings Co. Ltd.		Machinery		288		84,489
	Hyundai Marine & Fire Insurance Co. Ltd.		Insurance		1,680		56,094
	Hyundai Mipo Dockyard Co. Ltd.		Machinery		560		29,009
	Hyundai Mobis Co. Ltd.		Auto Components		1,824		335,040
	Hyundai Motor Co.		Automobiles		3,960		416,897
	Hyundai Steel Co.		Metals & Mining		2,096		82,909
	Hyundai Wia Corp.		Auto Components		440		15,699



franklintempleton.com	Annual Report	259

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE South Korea ETF(continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	South Korea (continued)
	Industrial Bank of Korea		Banks		7,392	$	91,496
	Kakao Corp.		Interactive Media & Services		1,392		126,924
	Kangwon Land Inc.		Hotels, Restaurants & Leisure		2,976		83,897
	KB Financial Group Inc.		Banks		11,016		406,149
	KCC Corp.		Building Products		152		42,650
	KEPCO Plant Service and Engineering Co. Ltd.		Commercial Services & Supplies		592		18,150
	Kia Motors Corp.		Automobiles		7,192		223,978
	Korea Aerospace Industries Ltd.		Aerospace & Defense		1,800		56,057
a	Korea Electric Power Corp.		Electric Utilities		7,128		187,761
	Korea Gas Corp.		Gas Utilities		744		29,561
	Korea Investment Holdings Co. Ltd.		Capital Markets		1,064		58,210
	Korea Zinc Co. Ltd.		Metals & Mining		280		114,704
	Korean Air Lines Co. Ltd.		Airlines		1,312		36,814
	KT&G Corp.		Tobacco		3,088		281,568
	Kumho Petrochemical Co. Ltd.		Chemicals		488		40,928
	LG Chem Ltd.		Chemicals		1,272		410,142
	LG Corp.		Industrial Conglomerates		2,512		171,509
a	LG Display Co. Ltd.		Electronic Equipment, Instruments & Components		6,248		107,335
	LG Electronics Inc.		Household Durables		2,992		197,955
	LG Household & Health Care Ltd.		Personal Products		248		309,590
	LG Uplus Corp.		Diversified Telecommunication Services		5,392		73,391
	Lotte Chemical Corp.		Chemicals		408		104,417
	Lotte Chilsung Beverage Co. Ltd.		Beverages		8		12,482
	Lotte Corp.		Industrial Conglomerates		792		34,468
	LOTTE Fine Chemical Co. Ltd.		Chemicals		488		18,959
	Lotte Shopping Co. Ltd.		Multiline Retail		312		48,926
	LS Corp.		Electrical Equipment		488		22,485
	Mando Corp.		Auto Components		920		23,180
	Medy-tox Inc.		Biotechnology		112		57,603
	Mirae Asset Daewood Co. Ltd.		Capital Markets		10,640		68,709
	Naver Corp.		Interactive Media & Services		3,744		409,000
	NCsoft Corp.		Entertainment		480		209,744
a	Netmarble Corp		Entertainment		488		53,740
	NH Investment & Securities Co. Ltd.		Capital Markets		3,576		42,373
a	NHN Entertainment Corp.		Entertainment		272		21,207
	Nongshim Co. Ltd.		Food Products		88		23,956
	OCI Co. Ltd.		Chemicals		504		41,249
	Orion Corp.		Food Products		608		53,564
	Ottogi Corp.		Food Products		37		25,132
	Paradise Co. Ltd.		Hotels, Restaurants & Leisure		1,256		19,807
	POSCO		Metals & Mining		1,904		424,378
	POSCO Chemical Co. Ltd.		Construction Materials		576		30,548
	Posco Daewoo Corp.		Trading Companies & Distributors		1,384		21,642
	S-1 Corp.		Commercial Services & Supplies		536		47,457
	S-Oil Corp.		Oil, Gas & Consumable Fuels		1,136		89,671
a	Samsung Biologics Co. Ltd.		Life Sciences Tools & Services		376		105,834
	Samsung C&T Corp.		Industrial Conglomerates		2,328		219,448
	Samsung Card Co. Ltd.		Consumer Finance		856		25,942
	Samsung Electro-Mechanics Co. Ltd.		Electronic Equipment, Instruments & Components		1,552		142,881
	Samsung Electronics Co. Ltd.		Technology Hardware, Storage & Peripherals		76,124		2,994,394
a	Samsung Engineering Co. Ltd.		Construction & Engineering		4,352		61,728
	Samsung Fire & Marine Insurance Co. Ltd.		Insurance		912		241,839
a	Samsung Heavy Industries Co. Ltd.		Machinery		12,160		88,487
	Samsung Life Insurance Co. Ltd.		Insurance		1,776		131,585
	Samsung SDI Co. Ltd.		Electronic Equipment, Instruments & Components		1,464		276,652
	Samsung SDS Co. Ltd.		IT Services		888		183,843
	Samsung Securities Co. Ltd.		Capital Markets		1,760		51,632



260	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE South Korea ETF(continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	South Korea (continued)
	Shinhan Financial Group Co. Ltd.		Banks		12,736	$	471,247
	Shinsegae Co. Ltd.		Multiline Retail		192		57,087
a	SillaJen Inc.		Biotechnology		1,464		82,931
	SK Holdings Co. Ltd.		Industrial Conglomerates		920		219,241
	SK Hynix Inc.		Semiconductors & Semiconductor Equipment		14,448		944,447
	SK Innovation Co. Ltd.		Oil, Gas & Consumable Fuels		1,600		253,017
	SK Networks Co. Ltd.		Trading Companies & Distributors		4,152		22,130
	SK Telecom Co. Ltd.		Wireless Telecommunication Services		632		140,030
	SKC Co. Ltd.		Chemicals		536		17,070
	Ssangyong Cement Industrial Co. Ltd.		Construction Materials		2,904		16,374
a	ViroMed Co. Ltd.		Biotechnology		384		94,655
	Woori Financial Group Inc.		Banks		15,584		188,776
	Yuhan Corp.		Pharmaceuticals		244		51,590

	Total Common Stocks (Cost $19,981,872)						15,992,099

	Preferred Stocks 3.8%
	South Korea 3.8%
b	Amorepacific Corp., 1.107%, pfd.		Personal Products		296		27,902
b	CJ CheilJedang Corp., 2.620%, pfd.		Food Products		40		4,775
a,c	CJ Corp., pfd.		Industrial Conglomerates		59		1,906
b	Hanwha Corp., 4.007%, pfd.		Industrial Conglomerates		592		7,745
b	Hyundai Motor Co., 5.374%, pfd., 2		Automobiles		1,008		67,756
b	Hyundai Motor Co., 5.853%, pfd.		Automobiles		640		39,017
b	LG Chem Ltd., 2.909%, pfd.		Chemicals		216		39,581
b	LG Electronics Inc., 2.707%, pfd.		Household Durables		496		12,912
b	LG Household & Health Care Ltd., 1.112%, pfd.		Personal Products		56		41,244
b	Mirae Asset Daewoo Co. Ltd., 5.946%, pfd.		Capital Markets		3,472		11,317
b	Samsung Electronics Co. Ltd., 3.909%, pfd.		Technology Hardware, Storage & Peripherals		12,048		384,759
b	Samsung Fire & Marine Insurance Co. Ltd., 5.640%, pfd.		Insurance		72		12,940

	Total Preferred Stocks (Cost $796,276)						651,854

	Total Investments (Cost $20,778,148) 98.2%						16,643,953
	Other Assets, less Liabilities 1.8%						304,513

	Net Assets 100.0%					$	16,948,466

^aNon-income producing.

^bVariable rate security. The rate shown represents the yield at period end.

^cFair valued using significant unobservable inputs. See Note 8 regarding fair value measurements.

At March 31, 2019, 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

Kospi 200 Mini

Long

267,776

4/11/19

(1,299

)

*As of period end.

See Note 7 regarding other derivative information.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	261

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin FTSE Switzerland ETF



	Year Ended March 31,

	2019			2018^a

Per share operating performance (for a share outstanding throughout the year)

Net asset value, beginning of year	$	23.11		$	23.56


Income from investment operations^b:

Net investment income^c		0.53			0.22

Net realized and unrealized gains (losses)		0.83			(0.67	)


Total from investment operations		1.36			(0.45	)


Less distributions from net investment income		(0.61	)		—


Net asset value, end of year	$	23.86		$	23.11


Total return^d		6.13%			(1.91)%

Ratios to average net assets^e

Total expenses		0.09%			0.09%

Net investment income		2.35%			6.54%

Supplemental data

Net assets, end of year (000’s)		$2,386			$2,311

Portfolio turnover rate^f		14.06%			2.72%

^aFor the period February 6, 2018 (commencement of operations) to March 31, 2018.

^cBased on average daily shares outstanding.

^eRatios are annualized for periods less than one year.

^fPortfolio turnover rate excludes the value of portfolio securities received or delivered as a result of processing capital share transactions in Creation Units, if any.



262	Annual Report \| The accompanying notes are an integral part of these financial statements.	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2019

Franklin FTSE Switzerland ETF



		Industry		Shares		Value
	Common Stocks 99.6%
	Switzerland 99.6%
	ABB Ltd.		Electrical Equipment		3,952	$	74,246
	Adecco Group AG		Professional Services		360		19,202
	Baloise Holding AG		Insurance		110		18,170
	Banque Cantonale Vaudoise		Banks		7		5,609
	Barry Callebaut AG		Food Products		5		9,027
	Chocoladefabriken Lindt & Spruengli AG		Food Products		5		33,989
a	Clariant AG		Chemicals		470		9,878
	Compagnie Financiere Richemont SA		Textiles, Apparel & Luxury Goods		1,121		81,652
a	Credit Suisse Group AG		Capital Markets		5,723		66,689
	DKSH Holding AG		Professional Services		62		3,574
a	Dufry AG		Specialty Retail		69		7,247
	EMS-Chemie Holding AG		Chemicals		17		9,218
	Flughafen Zurich AG		Transportation Infrastructure		45		8,210
	Geberit AG		Building Products		85		34,737
	Georg Fischer AG		Machinery		10		9,107
	Givaudan AG		Chemicals		22		56,198
	Helvetia Holding AG		Insurance		15		9,158
a	Julius Baer Group Ltd.		Capital Markets		507		20,481
	Kuehne + Nagel International AG		Marine		118		16,185
a	LafargeHolcim Ltd., B		Construction Materials		1,115		55,073
	Logitech International SA		Technology Hardware, Storage & Peripherals		338		13,247
a	Lonza Group AG		Life Sciences Tools & Services		175		54,263
	Nestle SA		Food Products		4,948		471,498
	Novartis AG		Pharmaceuticals		3,641		350,171
a	OC Oerlikon Corp. AG		Machinery		454		5,808
	Pargesa Holding SA, B		Diversified Financial Services		88		6,892
	Partners Group Holding AG		Capital Markets		39		28,352
	PSP Swiss Property AG		Real Estate Management & Development		92		9,995
	Roche Holding AG		Pharmaceuticals		46		12,536
	Roche Holding AG		Pharmaceuticals		1,162		320,107
	Schindler Holding AG		Machinery		44		9,101
	Schindler Holding AG, PC		Machinery		96		19,896
	SGS SA		Professional Services		12		29,858
	Sika AG		Chemicals		327		45,673
	Sonova Holding AG		Health Care Equipment & Supplies		119		23,540
	Straumann Holding AG		Health Care Equipment & Supplies		24		19,580
	Sulzer AG		Machinery		42		4,095
	Swatch Group AG		Textiles, Apparel & Luxury Goods		69		19,746
	Swatch Group AG		Textiles, Apparel & Luxury Goods		107		5,920
a	Swiss Life Holding AG		Insurance		80		35,225
a	Swiss Prime Site AG		Real Estate Management & Development		176		15,419
	Swiss Re AG		Insurance		688		67,204
	Swisscom AG		Diversified Telecommunication Services		60		29,340
a	Temenos AG		Software		137		20,194
a	UBS Group AG		Capital Markets		7,494		90,825
	Vifor Pharma AG		Pharmaceuticals		104		14,061
	Zurich Insurance Group AG		Insurance		321		106,237

	Total Investments (Cost $2,424,116) 99.6%						2,376,433
	Other Assets, less Liabilities 0.4%						9,581

	Net Assets 100.0%					$	2,386,014

^aNon-income producing.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	263

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin FTSE Taiwan ETF



	Year Ended March 31,

	2019			2018^a

Per share operating performance (for a share outstanding throughout the year)

Net asset value, beginning of year	$	26.34		$	25.59


Income from investment operations^b:

Net investment income (loss)^c		0.47			(0.02	)

Net realized and unrealized gains (losses)		(1.85	)		0.77


Total from investment operations		(1.38	)		0.75


Less distributions from net investment income		(0.24	)		(—	)^d


Net asset value, end of year	$	24.72		$	26.34


Total return^e		(5.15)%			2.93%

Ratios to average net assets^f

Total expenses		0.19%			0.19%

Net investment income (loss)		1.96%			(0.19)%

Supplemental data

Net assets, end of year (000’s)		$14,834			$5,268

Portfolio turnover rate^g		8.71%			3.63%

^aFor the period November 2, 2017 (commencement of operations) to March 31, 2018.

^cBased on average daily shares outstanding.

^dAmount rounds to less than $0.01 per share.

^fRatios are annualized for periods less than one year.

^gPortfolio turnover rate excludes the value of portfolio securities received or delivered as a result of processing capital share transactions in Creation Units, if any.



264	Annual Report \| The accompanying notes are an integral part of these financial statements.	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2019

Franklin FTSE Taiwan ETF



		Industry		Shares		Value
	Common Stocks 100.0%
	Taiwan 100.0%
a	Acer Inc.		Technology Hardware, Storage & Peripherals		81,000	$	51,905
	Advantech Co. Ltd.		Technology Hardware, Storage & Peripherals		12,000		99,674
a	ASE Industrial Holding Co. Ltd.		Semiconductors & Semiconductor Equipment		99,000		216,820
	Asia Cement Corp.		Construction Materials		66,000		85,871
	Asustek Computer Inc.		Technology Hardware, Storage & Peripherals		21,000		151,944
	AU Optronics Corp.		Electronic Equipment, Instruments & Components		252,000		92,802
	Capital Securities Corp.		Capital Markets		63,470		19,770
	Catcher Technology Co. Ltd.		Technology Hardware, Storage & Peripherals		21,000		161,483
	Cathay Financial Holding Co. Ltd.		Insurance		231,000		336,901
	Chailease Holding Co. Ltd.		Diversified Financial Services		36,000		147,175
	Chang Hwa Commercial Bank Ltd.		Banks		177,360		106,173
	Cheng Shin Rubber Industry Co. Ltd.		Auto Components		54,000		73,500
	Chicony Electronics Co. Ltd.		Technology Hardware, Storage & Peripherals		18,030		41,945
	China Airlines Ltd.		Airlines		78,000		24,954
	China Development Financial Holding Corp.		Banks		405,000		135,348
	China Life Insurance Co. Ltd.		Insurance		75,000		63,635
	China Motor Corp.		Automobiles		15,000		13,871
	China Steel Corp.		Metals & Mining		363,000		297,980
	Chunghwa Telecom Co. Ltd.		Diversified Telecommunication Services		111,000		394,364
	Compal Electronics Inc.		Technology Hardware, Storage & Peripherals		117,000		72,697
	CTBC Financial Holding Co. Ltd.		Banks		534,000		354,319
	Delta Electronics Inc.		Electronic Equipment, Instruments & Components		63,000		325,011
	E.Sun Financial Holding Co. Ltd.		Banks		300,000		231,177
	Eclat Textile Co. Ltd.		Textiles, Apparel & Luxury Goods		6,000		80,790
	Epistar Corp.		Semiconductors & Semiconductor Equipment		27,000		21,726
	Eternal Materials Co. Ltd.		Chemicals		30,630		24,349
	EVA Airways Corp.		Airlines		66,450		32,556
	Evergreen Marine Corp. Taiwan Ltd.		Marine		67,196		26,054
	Far Eastern International Bank		Banks		54,542		19,820
	Far Eastern New Century Corp.		Industrial Conglomerates		117,000		115,594
	Far EasTone Telecommunications Co. Ltd.		Wireless Telecommunication Services		45,000		108,483
	Feng Hsin Steel Co. Ltd.		Metals & Mining		12,000		23,517
	Feng Tay Enterprise Co. Ltd.		Textiles, Apparel & Luxury Goods		10,000		70,732
	First Financial Holding Co. Ltd.		Banks		285,950		195,764
	Formosa Chemicals & Fibre Corp.		Chemicals		102,000		370,662
	Formosa Petrochemical Corp.		Oil, Gas & Consumable Fuels		39,000		146,153
	Formosa Plastics Corp.		Chemicals		144,000		511,608
	Formosa Taffeta Co. Ltd.		Textiles, Apparel & Luxury Goods		27,000		32,238
	Foxconn Technology Co. Ltd.		Electronic Equipment, Instruments & Components		33,000		65,849
	Fubon Financial Holding Co. Ltd.		Insurance		216,000		322,383
	Giant Manufacturing Co. Ltd.		Leisure Products		9,000		64,243
	Globalwafers Co. Ltd.		Semiconductors & Semiconductor Equipment		6,100		59,970
	Hon Hai Precision Industry Co. Ltd.		Electronic Equipment, Instruments & Components		348,000		829,902
	Hotai Motor Co. Ltd.		Specialty Retail		9,000		110,235
a	HTC Corp.		Technology Hardware, Storage & Peripherals		18,000		23,332
	Hua Nan Financial Holdings Co. Ltd.		Banks		252,000		158,622
	Innolux Corp.		Electronic Equipment, Instruments & Components		246,000		79,817
	Inventec Corp.		Technology Hardware, Storage & Peripherals		87,000		66,195
	Largan Precision Co. Ltd.		Electronic Equipment, Instruments & Components		3,000		447,754
	Lite-On Technology Corp.		Technology Hardware, Storage & Peripherals		60,000		87,312
	MediaTek Inc.		Semiconductors & Semiconductor Equipment		44,000		403,303
	Mega Financial Holding Co. Ltd.		Banks		321,000		292,145
	Nan Ya Plastics Corp.		Chemicals		168,000		430,077
	Nanya Technology Corp.		Semiconductors & Semiconductor Equipment		24,000		47,812
	Novatek Microelectronics Corp. Ltd.		Semiconductors & Semiconductor Equipment		18,000		115,637
a	OBI Pharma Inc.		Biotechnology		3,000		16,450
	Oriental Union Chemical Corp.		Chemicals		18,000		15,243



franklintempleton.com	Annual Report	265

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Taiwan ETF(continued)



	Industry		Shares		Value
Common Stocks (continued)
Taiwan (continued)
Pegatron Corp.		Technology Hardware, Storage & Peripherals		57,000	$	98,574
Pou Chen Corp.		Textiles, Apparel & Luxury Goods		78,000		95,031
President Chain Store Corp.		Food & Staples Retailing		16,620		163,663
Quanta Computer Inc.		Technology Hardware, Storage & Peripherals		78,000		146,279
Realtek Semiconductor Corp.		Semiconductors & Semiconductor Equipment		15,000		88,577
Shin Kong Financial Holding Co. Ltd.		Insurance		318,000		93,686
SinoPac Financial Holdings Co. Ltd.		Banks		306,040		113,199
Synnex Technology International Corp.		Electronic Equipment, Instruments & Components		39,000		46,820
Taishin Financial Holding Co. Ltd.		Banks		288,000		131,289
Taiwan Business Bank		Banks		120,640		46,971
Taiwan Cement Corp.		Construction Materials		132,000		176,668
Taiwan Cooperative Financial Holding Co. Ltd.		Banks		264,610		167,418
Taiwan Fertilizer Co. Ltd.		Chemicals		21,000		31,411
Taiwan Glass Industry Corp.		Building Products		48,000		21,414
Taiwan High Speed Rail Corp.		Transportation Infrastructure		63,000		73,587
Taiwan Mobile Co. Ltd.		Wireless Telecommunication Services		48,000		173,651
Taiwan Secom Co. Ltd.		Commercial Services & Supplies		9,000		25,288
Taiwan Semiconductor Manufacturing Co. Ltd.		Semiconductors & Semiconductor Equipment		381,000		3,034,847
Teco Electric & Machinery Co. Ltd.		Electrical Equipment		54,000		36,794
TPK Holding Co. Ltd.		Electronic Equipment, Instruments & Components		9,000		16,995
Transcend Information Inc.		Technology Hardware, Storage & Peripherals		9,000		20,441
U-Ming Marine Transport Corp.		Marine		12,000		12,089
Uni-President Enterprises Corp.		Food Products		141,000		342,201
Unimicron Technology Corp.		Electronic Equipment, Instruments & Components		36,000		34,574
United Microelectronics Corp.		Semiconductors & Semiconductor Equipment		336,000		127,006
Vanguard International Semiconductor Corp.		Semiconductors & Semiconductor Equipment		27,000		58,257
Walsin Lihwa Corp.		Electrical Equipment		87,000		49,822
Walsin Technology Corp.		Electronic Equipment, Instruments & Components		15,000		97,338
Wan Hai Lines Ltd.		Marine		21,000		10,936
Wistron Corp.		Technology Hardware, Storage & Peripherals		78,000		59,980
Yageo Corp.		Electronic Equipment, Instruments & Components		12,000		125,760
Yuanta Financial Holding Co. Ltd.		Capital Markets		327,000		186,202
Yulon Motor Co. Ltd.		Automobiles		21,000		13,253

Total Investments (Cost $14,286,961) 100.0%						14,835,667
Other Assets, less Liabilities (0.0)%^†						(2,051	)

Net Assets 100.0%					$	14,833,616

^†Rounds to less than 0.1% of net assets.

^aNon-income producing.



266	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



	Year Ended March 31,

	2019			2018^a

Per share operating performance (for a share outstanding throughout the year)

Net asset value, beginning of year	$	25.23		$	24.89


Income from investment operations^b:

Net investment income^c		1.05			0.38

Net realized and unrealized gains (losses)		(1.21	)		0.07


Total from investment operations		(0.16	)		0.45


Less distributions from net investment income		(0.84	)		(0.11	)


Net asset value, end of year	$	24.23		$	25.23


Total return^d		(0.51)%			1.80%

Ratios to average net assets^e

Total expenses		0.09%			0.09%

Net investment income		4.46%			3.68%

Supplemental data

Net assets, end of year (000’s)		$29,076			$2,523

Portfolio turnover rate^f		10.10%			1.61%

^aFor the period November 2, 2017 (commencement of operations) to March 31, 2018.

^cBased on average daily shares outstanding.

^eRatios are annualized for periods less than one year, except fornon-recurring expenses, if any.

^fPortfolio turnover rate excludes the value of portfolio securities received or delivered as a result of processing capital share transactions in Creation Units, if any.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	267

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2019

Franklin FTSE United Kingdom ETF



		Industry			Shares		Value
	Common Stocks 98.8%
	Germany 0.2%
	TUI AG		Hotels, Restaurants & Leisure			4,992	$	47,850

	Ireland 1.5%
	CRH PLC		Construction Materials			9,480		293,382
	Paddy Power Betfair PLC		Hotels, Restaurants & Leisure			888		68,790
	Smurfit Kappa Group PLC		Containers & Packaging			2,736		76,793


								438,965

	Russia 0.3%
	Evraz PLC		Metals & Mining			5,736		46,371
	Polymetal International PLC		Metals & Mining			3,408		38,386


								84,757

	South Africa 0.2%
	Investec PLC		Capital Markets			7,560		43,571

	Switzerland 2.7%
a	Coca-Cola HBC AG		Beverages			2,256		76,873
	Ferguson PLC		Trading Companies & Distributors			2,688		171,067
a	Glencore PLC		Metals & Mining			130,608		541,115


								789,055

	United Arab Emirates 0.1%
	NMC Health PLC		Health Care Providers & Services			960		28,571

	United Kingdom 93.5%
	3i Group PLC		Capital Markets			11,088		142,286
	Admiral Group PLC		Insurance			2,352		66,506
	Anglo American PLC		Metals & Mining			11,376		304,401
	Antofagasta PLC		Metals & Mining			4,080		51,357
	Ashmore Group PLC		Capital Markets			4,272		23,781
	Ashtead Group PLC		Trading Companies & Distributors			5,448		131,509
	Associated British Foods PLC		Food Products			3,960		125,854
	AstraZeneca PLC		Pharmaceuticals			14,640		1,170,353
	Auto Trader Group PLC		Interactive Media & Services			10,560		71,773
	Aveva Group PLC		Software			768		32,284
	Aviva PLC		Insurance			45,456		244,270
	B&M European Value Retail SA		Multiline Retail			10,008		48,721
	Babcock International Group PLC		Commercial Services & Supplies			2,808		18,057
	BAE Systems PLC		Aerospace & Defense			37,080		233,082
	Barclays PLC		Banks			196,560		396,178
	Barratt Developments PLC		Household Durables			11,544		90,134
	Bellway PLC		Household Durables			1,440		57,136
	BHP Group PLC		Metals & Mining			24,024		578,695
	BP PLC		Oil, Gas & Consumable Fuels			229,080		1,667,138
	British American Tobacco PLC		Tobacco			26,352		1,096,755
	British Land Co. PLC		Equity Real Estate Investment Trusts (REITs	)		11,016		84,547
	BT Group PLC		Diversified Telecommunication Services			96,552		280,498
	Bunzl PLC		Trading Companies & Distributors			3,912		129,069
	Burberry Group PLC		Textiles, Apparel & Luxury Goods			4,776		121,636
	Capital & Counties Properties PLC		Real Estate Management & Development			8,136		25,507
	Centrica PLC		Multi-Utilities			66,048		98,285
	Cineworld Group PLC		Entertainment			11,784		44,929
a	Cobham PLC		Aerospace & Defense			28,152		40,462
	Compass Group PLC		Hotels, Restaurants & Leisure			18,240		428,887
	ConvaTec Group PLC		Health Care Equipment & Supplies			16,440		30,323
	Croda International PLC		Chemicals			1,464		96,108
	CYBG PLC		Banks			14,376		37,184
	DCC PLC		Industrial Conglomerates			1,128		97,524
	Derwent London PLC		Equity Real Estate Investment Trusts (REITs	)		1,176		49,389



268	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE United Kingdom ETF(continued)



		Industry			Shares		Value
	Common Stocks (continued)
	United Kingdom (continued)
	Diageo PLC		Beverages			27,432	$	1,121,687
	Direct Line Insurance Group PLC		Insurance			15,840		72,860
	DS Smith PLC		Containers & Packaging			14,712		64,394
	easyJet PLC		Airlines			2,568		37,394
	Experian PLC		Professional Services			10,608		287,375
	Fresnillo PLC		Metals & Mining			2,064		23,420
	G4S PLC		Commercial Services & Supplies			18,048		43,154
	GlaxoSmithKline PLC		Pharmaceuticals			56,256		1,170,525
	GVC Holdings PLC		Hotels, Restaurants & Leisure			6,624		48,249
	Halma PLC		Electronic Equipment, Instruments & Components			4,368		95,166
	Hammerson PLC		Equity Real Estate Investment Trusts (REITs	)		8,808		38,541
	Hargreaves Lansdown PLC		Capital Markets			3,024		73,430
	Hikma Pharmaceuticals PLC		Pharmaceuticals			1,656		38,658
	Hiscox Ltd.		Insurance			3,216		65,373
	Howden Joinery Group PLC		Trading Companies & Distributors			6,816		43,102
	HSBC Holdings PLC		Banks			232,032		1,884,544
	IMI PLC		Machinery			3,000		37,450
	Imperial Brands PLC		Tobacco			10,968		375,090
	Inchcape PLC		Distributors			4,848		36,071
	Informa PLC		Media			14,520		140,805
	InterContinental Hotels Group PLC		Hotels, Restaurants & Leisure			2,112		127,007
	International Consolidated Airlines Group SA		Airlines			9,888		65,969
	Intertek Group PLC		Professional Services			1,848		116,958
	ITV PLC		Media			42,600		70,553
	J Sainsbury PLC		Food & Staples Retailing			18,552		56,978
	Jardine Lloyd Thompson Group PLC		Insurance			1,416		35,316
	JD Sports Fashion PLC		Specialty Retail			4,248		27,821
	John Wood Group PLC		Energy Equipment & Services			7,656		50,619
	Johnson Matthey PLC		Chemicals			2,208		90,400
a	Just Eat PLC		Internet & Direct Marketing Retail			6,648		65,057
	KAZ Minerals PLC		Metals & Mining			2,640		22,477
	Kingfisher PLC		Specialty Retail			24,648		75,412
	Land Securities Group PLC		Equity Real Estate Investment Trusts (REITs	)		8,304		98,835
	Legal & General Group PLC		Insurance			68,592		246,060
	Lloyds Banking Group PLC		Banks			820,584		664,440
	London Stock Exchange Group PLC		Capital Markets			3,600		222,868
	Marks & Spencer Group PLC		Multiline Retail			18,744		68,120
	Mediclinic International PLC		Health Care Providers & Services			4,800		19,064
	Meggitt PLC		Aerospace & Defense			8,976		58,808
	Melrose Industries PLC		Electrical Equipment			56,160		134,028
	Merlin Entertainments PLC		Hotels, Restaurants & Leisure			8,328		37,254
	Micro Focus International PLC		Software			4,752		123,625
	Mondi PLC		Paper & Forest Products			4,272		94,521
	National Grid PLC		Multi-Utilities			39,168		434,230
	Next PLC		Multiline Retail			1,536		111,683
a	Ocado Group PLC		Internet & Direct Marketing Retail			5,112		91,292
	Pearson PLC		Media			9,048		98,588
	Pennon Group PLC		Water Utilities			4,872		47,207
	Persimmon PLC		Household Durables			3,576		101,116
	Phoenix Group Holdings PLC		Insurance			6,024		53,181
	Prudential PLC		Insurance			29,904		599,109
	Quilter PLC		Capital Markets			21,816		41,743
	Reckitt Benckiser Group PLC		Household Products			7,248		602,749
	RELX PLC		Professional Services			21,816		466,635
	Renishaw PLC		Electronic Equipment, Instruments & Components			408		19,703
	Rentokil Initial PLC		Commercial Services & Supplies			21,480		98,887
	Rightmove PLC		Interactive Media & Services			10,272		68,263
	Rio Tinto PLC		Metals & Mining			12,840		746,377



franklintempleton.com	Annual Report	269

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE United Kingdom ETF(continued)



		Industry			Shares		Value
	Common Stocks (continued)
	United Kingdom (continued)
a	Rolls-Royce Holdings PLC		Aerospace & Defense			19,440	$	228,792
	Royal Bank of Scotland Group PLC		Banks			52,344		168,471
	Royal Dutch Shell PLC, A		Oil, Gas & Consumable Fuels			51,504		1,619,756
	Royal Dutch Shell PLC, B		Oil, Gas & Consumable Fuels			43,248		1,368,283
	Royal Mail PLC		Air Freight & Logistics			10,200		31,673
	RPC Group PLC		Containers & Packaging			4,536		46,694
	RSA Insurance Group PLC		Insurance			11,760		77,815
	Schroders PLC		Capital Markets			1,320		46,475
	Segro PLC		Equity Real Estate Investment Trusts (REITs	)		12,360		108,456
	Severn Trent PLC		Water Utilities			2,736		70,447
	Smith & Nephew PLC		Health Care Equipment & Supplies			10,104		200,518
	Smiths Group PLC		Industrial Conglomerates			4,536		84,818
	Spirax-Sarco Engineering PLC		Machinery			840		78,699
	SSE PLC		Electric Utilities			11,928		184,493
	St. James’s Place Capital PLC		Capital Markets			5,976		80,051
	Standard Chartered PLC		Banks			31,416		242,058
	Standard Life Aberdeen PLC		Diversified Financial Services			28,776		98,972
	Tate & Lyle PLC		Food Products			5,376		50,844
	Taylor Wimpey PLC		Household Durables			37,224		85,102
	Tesco PLC		Food & Staples Retailing			111,432		337,013
	The Berkeley Group Holdings PLC		Household Durables			1,368		65,759
	The Sage Group PLC		Software			12,600		115,126
	Travis Perkins PLC		Trading Companies & Distributors			2,928		52,308
	Unilever PLC		Personal Products			12,624		722,965
	United Utilities Group PLC		Water Utilities			7,776		82,519
	Vodafone Group PLC		Wireless Telecommunication Services			309,144		563,157
	Weir Group PLC		Machinery			3,000		60,905
	Whitbread PLC		Hotels, Restaurants & Leisure			2,088		138,161
	William Morrison Supermarkets PLC		Food & Staples Retailing			24,888		73,795
	WPP PLC		Media			14,208		150,109


								27,199,093

	United States 0.3%
	Carnival PLC		Hotels, Restaurants & Leisure			1,872		91,840

	Total Investments (Cost $28,900,708) 98.8%							28,723,702
	Other Assets, less Liabilities 1.2%							352,519

	Net Assets 100.0%						$	29,076,221

^aNon-income producing.

At March 31, 2019, 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

FTSE 100 Index

Long

375,878

6/21/19

6,803

*As of period end.

See Note 7 regarding other derivative information.



270	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

March 31, 2019



	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	$	18,611,498		$	7,800,688		$	19,430,943		$	4,886,423

Value – Unaffiliated issuers	$	17,425,432		$	7,349,454		$	20,457,931		$	4,811,827
Cash		—			—			822			557
Foreign currency, at value (cost $27,274, $-, $23,309 and $4,525, respectively)		27,218			—			22,628			4,546
Receivables:
Dividends		51,735			51,125			80,710			10,335
Variation margin on futures contracts		519			—			—			—
Deposits with brokers for:
Futures contracts		2,600			—			22,428			—

Total assets		17,507,504			7,400,579			20,584,519			4,827,265

Liabilities:
Payables:
Management fees		2,792			593			3,379			369
Variation margin on futures contracts		—			—			2,315			—
Funds advanced by custodian		—			10,871			—			—
Deferred tax		16,641			—			—			—

Total liabilities		19,433			11,464			5,694			369

Net assets, at value	$	17,488,071		$	7,389,115		$	20,578,825		$	4,826,896

Net assets consist of:
Paid-in capital	$	18,898,409		$	7,706,084		$	29,338,903		$	4,915,900
Total distributable earnings (loss)		(1,410,338	)		(316,969	)		(8,760,078	)		(89,004	)

Net assets, at value	$	17,488,071		$	7,389,115		$	20,578,825		$	4,826,896

Shares outstanding		800,000			300,000			800,000			200,000

Net asset value per share	$	21.86		$	24.63		$	25.72		$	24.13



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FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Assets and Liabilities(continued)

March 31, 2019



	Franklin FTSE China ETF			Franklin FTSE Europe ETF			Franklin FTSE Europe Hedged ETF			Franklin FTSE France ETF
Assets:
Investments in securities:
Cost – Unaffiliated issuers	$	46,234,082		$	80,265,818		$	5,136,799		$	2,516,930
Cost – Non-controlled affiliates (Note 3c)		—			—			38			—

Value – Unaffiliated issuers	$	43,195,721		$	73,755,159		$	4,426,945		$	2,381,522
Value – Non-controlled affiliates (Note 3c)		—			—			38			—
Cash		6,385			5,535			—			212
Foreign currency, at value (cost $20,217, $183,694, $49,272 and $1,535, respectively)		20,217			181,779			48,920			1,519
Receivables:
Investment securities sold		—			39,399			7,044			—
Capital shares sold		4,802,811			—			—			—
Dividends		1,876			346,236			71,991			3,351
Variation margin on futures contracts		—			4,209			—			—
Deposits with brokers for:
Futures contracts		—			32,674			7,769			—
Unrealized appreciation on OTC forward exchange contracts		—			—			286,540			—

Total assets		48,027,010			74,364,991			4,849,247			2,386,604

Liabilities:
Cash deposit due to brokers		37			—			—			—
Payables:
Investment securities purchased		4,800,407			—			38			—
Management fees		6,144			5,671			1,056			182
Variation margin on futures contracts		—			—			2,022			—
Funds advanced by custodian		—			—			222,584			—
Unrealized depreciation on OTC forward exchange contracts		—			—			60,740	��		—

Total liabilities		4,806,588			5,671			286,440			182

Net assets, at value	$	43,220,422		$	74,359,320		$	4,562,807		$	2,386,422

Net assets consist of:
Paid-in capital	$	46,915,747		$	80,576,315		$	5,849,092		$	2,532,072
Total distributable earnings (loss)		(3,695,325	)		(6,216,995	)		(1,286,285	)		(145,650	)

Net assets, at value	$	43,220,422		$	74,359,320		$	4,562,807		$	2,386,422

Shares outstanding		1,800,000			3,200,000			200,000			100,000

Net asset value per share	$	24.01		$	23.24		$	22.81		$	23.86



272	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)

March 31, 2019



	Franklin FTSE Germany ETF			Franklin FTSE Hong Kong ETF		Franklin FTSE India ETF		Franklin FTSE Italy ETF
Assets:
Investments in securities:
Cost – Unaffiliated issuers	$	4,645,972		$	18,270,341	$	6,905,747	$	9,890,424

Value – Unaffiliated issuers	$	4,127,388		$	20,022,827	$	7,010,967	$	10,395,508
Cash		875			8,197		—		1,811
Foreign currency, at value (cost $3,484, $32,941, $35,858 and $13,544, respectively)		3,448			32,938		35,726		13,408
Receivables:
Dividends		8,774			48,492		1,631		430
Variation margin on futures contracts		—			925		30		—
Deposits with brokers for:
Futures contracts		—			5,828		935		10

Total assets		4,140,485			20,119,207		7,049,289		10,411,167

Liabilities:
Payables:
Management fees		320			1,510		1,098		784
Funds advanced by custodian		—			—		2,626		—
Deferred tax		—			—		38,391		—

Total liabilities		320			1,510		42,115		784

Net assets, at value	$	4,140,165		$	20,117,697	$	7,007,174	$	10,410,383

Net assets consist of:
Paid-in capital	$	4,666,843		$	18,380,357	$	6,996,328	$	10,017,194
Total distributable earnings (loss)		(526,678	)		1,737,340		10,846		393,189

Net assets, at value	$	4,140,165		$	20,117,697	$	7,007,174	$	10,410,383

Shares outstanding		200,000			750,000		300,000		450,000

Net asset value per share	$	20.70		$	26.82	$	23.36	$	23.13



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	273

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Assets and Liabilities(continued)

March 31, 2019



	Franklin FTSE Japan ETF			Franklin FTSE Japan Hedged ETF			Franklin FTSE Latin America ETF		Franklin FTSE Mexico ETF
Assets:
Investments in securities:
Cost – Unaffiliated issuers	$	319,292,554		$	15,777,530		$	2,626,071	$	4,748,473
Cost –Non-controlled affiliates (Note 3c)		231,376			28,014			—		—

Value – Unaffiliated issuers+	$	286,602,714		$	13,586,269		$	2,627,550	$	4,414,990
Value –Non-controlled affiliates (Note 3c)		231,376			28,014			—		—
Cash		—			—			2,531		3,277
Foreign currency, at value (cost $540,529, $88,797, $12,450 and $3,988, respectively)		541,357			88,954			12,199		3,881
Receivables:
Dividends		2,878,225			140,382			6,527		174
Deposits with brokers for:
Futures contracts		113,931			8,727			2,645		—
Unrealized appreciation on OTC forward exchange contracts		—			120,173			—		—

Total assets		290,367,603			13,972,519			2,651,452		4,422,322

Liabilities:
Payables:
Investment securities purchased		222			150			10,067		—
Management fees		21,993			1,173			430		704
Variation margin on futures contracts		22,949			429			245		—
Payable upon return of securities loaned		117,035			—			—		—
Unrealized depreciation on OTC forward exchange contracts		—			101,132			—		—

Total liabilities		162,199			102,884			10,742		704

Net assets, at value	$	290,205,404		$	13,869,635		$	2,640,710	$	4,421,618

Net assets consist of:
Paid-in capital	$	321,985,892		$	17,526,559		$	2,619,441	$	4,836,326
Total distributable earnings (loss)		(31,780,488	)		(3,656,924	)		21,269		(414,708	)

Net assets, at value	$	290,205,404		$	13,869,635		$	2,640,710	$	4,421,618

Shares outstanding		12,000,000			600,000			100,000		200,000

Net asset value per share	$	24.18		$	23.12		$	26.41	$	22.11


+Includes securities loaned		$111,255			$—			$—		$—



274	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)

March 31, 2019



	Franklin FTSE Russia ETF		Franklin FTSE Saudi Arabia ETF		Franklin FTSE South Africa ETF		Franklin FTSE South Korea ETF
Assets:
Investments in securities:
Cost – Unaffiliated issuers	$	11,128,324	$	2,490,530	$	2,443,812	$	20,778,148

Value – Unaffiliated issuers	$	11,664,373	$	2,787,508	$	2,652,524	$	16,643,953
Cash		1,570		—		181		—
Foreign currency, at value (cost $—, $14,320, $3,274 and $25,059, respectively)		—		14,380		3,281		25,043
Receivables:
Dividends		18,953		10,325		6,240		282,254
Variation margin on futures contracts		—		—		—		1,888
Deposits with brokers for:
Futures contracts		—		—		—		18,889

Total assets		11,684,896		2,812,213		2,662,226		16,972,027

Liabilities:
Payables:
Investment securities purchased		—		13,231		—		—
Management fees		1,881		901		429		1,370
Funds advanced by custodian		—		9,202		—		22,191

Total liabilities		1,881		23,334		429		23,561

Net assets, at value	$	11,683,015	$	2,788,879	$	2,661,797	$	16,948,466

Net assets consist of:
Paid-in capital	$	11,260,647	$	2,482,525	$	2,441,624	$	22,679,163
Total distributable earnings (loss)		422,368		306,354		220,173		(5,730,697	)

Net assets, at value	$	11,683,015	$	2,788,879	$	2,661,797	$	16,948,466

Shares outstanding		500,000		100,000		100,000		800,000

Net asset value per share	$	23.37	$	27.89	$	26.62	$	21.19



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	275

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Assets and Liabilities(continued)

March 31, 2019



	Franklin FTSE Switzerland ETF			Franklin FTSE Taiwan ETF		Franklin FTSE United Kingdom ETF
Assets:
Investments in securities:
Cost – Unaffiliated issuers	$	2,424,116		$	14,286,961	$	28,900,708

Value – Unaffiliated issuers	$	2,376,433		$	14,835,667	$	28,723,702
Cash		—			155		3,498
Foreign currency, at value (cost $-, $136 and $168,059, respectively)		—			136		166,140
Receivables:
Dividends		15,709			—		170,319
Deposits with brokers for:
Futures contracts		—			2		16,750

Total assets		2,392,142			14,835,960		29,080,409

Liabilities:
Payables:
Management fees		180			2,344		1,925
Variation margin on futures contracts		—			—		2,263
Funds advanced by custodian		32			—		—
Foreign currency advanced by custodian, at value (cost $5,889, $- and $-, respectively)		5,916			—		—

Total liabilities		6,128			2,344		4,188

Net assets, at value	$	2,386,014		$	14,833,616	$	29,076,221

Net assets consist of:
Paid-in capital	$	2,445,330		$	14,383,078	$	28,957,922
Total distributable earnings (loss)		(59,316	)		450,538		118,299

Net assets, at value	$	2,386,014		$	14,833,616	$	29,076,221

Shares outstanding		100,000			600,000		1,200,000

Net asset value per share	$	23.86		$	24.72	$	24.23



276	Annual Report \| The accompanying notes are an integral part of these financial statements.	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Operations

for the year ended March 31, 2019



	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	$	414,248		$	380,414		$	878,634		$	113,736

Total investment income		414,248			380,414			878,634			113,736

Expenses:
Management fees (Note 3a)		31,035			6,352			46,902			3,559
Other		221			—			136			—

Total expenses		31,256			6,352			47,038			3,559

Net investment income		382,992			374,062			831,596			110,177

Realized and unrealized gains (losses):
Net realized gain (loss) from:
Investments:
Unaffiliated issuers		(207,544	)		(46,199	)		(9,892,971	)		(43,975	)
In-kind redemptions		—			441,240			—			(98,993	)
Foreign currency transactions		(1,535	)		(2,240	)		(56,196	)		(40	)
Futures contracts		(6,078	)		—			28,211			—
Forward exchange contracts		(569	)		—			—			—

Net realized gain (loss)		(215,726	)		392,801			(9,920,956	)		(143,008	)

Net change in unrealized appreciation (depreciation) on:
Investments:
Unaffiliated issuers		(1,170,528	)		(276,566	)		952,065			91,259
Translation of other assets and liabilities denominated in foreign currencies		(505	)		223			927			—
Futures contracts		519			—			(2,315	)		—
Change in deferred taxes on unrealized appreciation		(16,601	)		—			—			—

Net change in unrealized appreciation (depreciation)		(1,187,115	)		(276,343	)		950,677			91,259

Net realized and unrealized gain (loss)		(1,402,841	)		116,458			(8,970,279	)		(51,749	)

Net increase (decrease) in net assets resulting from operations	$	(1,019,849	)	$	490,520		$	(8,138,683	)	$	58,428


^aForeign taxes withheld on dividends		$44,888			$5,158			$76,726			$19,446



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	277

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Operations(continued)

for the year ended March 31, 2019



	Franklin FTSE China ETF			Franklin FTSE Europe ETF			Franklin FTSE Europe Hedged ETF			Franklin FTSE France ETF
Investment income:
Dividends: (net of foreign taxes)^a
Unaffiliated issuers	$	640,704		$	3,193,732		$	1,033,575		$	72,406
Non-Controlled affiliates (Note 3c)		—			—			1,386			—

Total investment income		640,704			3,193,732			1,034,961			72,406

Expenses:
Management fees (Note 3a)		64,511			77,614			27,657			2,181
Other		—			—			213			—

Total expenses		64,511			77,614			27,870			2,181
Expenses waived/paid by affiliates (Note 3a)		—			—			(248	)		—

Net investment income		576,193			3,116,118			1,007,339			70,225

Realized and unrealized gains (losses):
Net realized gain (loss) from:
Investments:
Unaffiliated issuers		(589,922	)		(291,938	)		(919,288	)		(13,042	)
In-kind redemptions		—			(683,726	)		(2,544,474	)		—
Foreign currency transactions		331			(92,556	)		(23,436	)		(549	)
Futures contracts		(13,448	)		12,388			(27,735	)		—
Forward exchange contracts		—			—			2,895,665			—

Net realized gain (loss)		(603,039	)		(1,055,832	)		(619,268	)		(13,591	)

Net change in unrealized appreciation (depreciation) on:
Investments:
Unaffiliated issuers		(1,780,671	)		(5,312,797	)		169,264			(134,385	)
Translation of other assets and liabilities denominated in foreign currencies		(73	)		(4,506	)		(1,109	)		(110	)
Futures contracts		—			10,419			2,820			—
Forward exchange contracts		—			—			410,769			—

Net change in unrealized appreciation (depreciation)		(1,780,744	)		(5,306,884	)		581,744			(134,495	)

Net realized and unrealized gain (loss)		(2,383,783	)		(6,362,716	)		(37,524	)		(148,086	)

Net increase (decrease) in net assets resulting from operations	$	(1,807,590	)	$	(3,246,598	)	$	969,815		$	(77,861	)


^aForeign taxes withheld on dividends		$51,281			$333,435			$110,705			$13,000



278	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 year ended March 31, 2019



	Franklin FTSE Germany ETF			Franklin FTSE Hong Kong ETF			Franklin FTSE India ETF			Franklin FTSE Italy ETF
Investment income:
Dividends: (net of foreign taxes)^a
Unaffiliated issuers	$	76,884		$	340,872		$	80,334		$	122,854

Total investment income		76,884			340,872			80,334			122,854

Expenses:
Management fees (Note 3a)		2,731			11,101			10,032			5,167
Other		—			—			—			155

Total expenses		2,731			11,101			10,032			5,322

Net investment income		74,153			329,771			70,302			117,532

Realized and unrealized gains (losses):
Net realized gain (loss) from:
Investments:
Unaffiliated issuers		(24,965	)		(76,837	)		(72,784	)		(145,217	)
In-kind redemptions		—			—			—			(81,519	)
Foreign currency transactions		(1,099	)		209			(6,041	)		(914	)
Futures contracts		—			(5,824	)		638			808

Net realized gain (loss)		(26,064	)		(82,452	)		(78,187	)		(226,842	)

Net change in unrealized appreciation (depreciation) on:
Investments:
Unaffiliated issuers		(420,230	)		1,512,009			213,281			433,696
Translation of other assets and liabilities denominated in foreign currencies		(11	)		—			(132	)		(189	)
Futures contracts		—			—			420			—
Change in deferred taxes on unrealized appreciation		—			—			(38,391	)		—

Net change in unrealized appreciation (depreciation)		(420,241	)		1,512,009			175,178			433,507

Net realized and unrealized gain (loss)		(446,305	)		1,429,557			96,991			206,665

Net increase (decrease) in net assets resulting from operations	$	(372,152	)	$	1,759,328		$	167,293		$	324,197


^aForeign taxes withheld on dividends		$10,487			$205			$—			$21,462



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	279

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Operations(continued)

for the year ended March 31, 2019^a



	Franklin FTSE Japan ETF			Franklin FTSE Japan Hedged ETF			Franklin FTSE Latin America ETF^a			Franklin FTSE Mexico ETF
Investment income:
Dividends: (net of foreign taxes)^b
Unaffiliated issuers	$	5,596,291		$	655,413		$	40,286		$	85,984
Non-Controlled affiliates (Note 3c)		1,865			605			—			—
Income from securities loaned: (Note 1d)
Unaffiliated issuers (net of fees and rebates)		4,821			—			—			—
Non-Controlled affiliates (Note 3c)		5,200			—			—			—

Total investment income		5,608,177			656,018			40,286			85,984

Expenses:
Management fees (Note 3a)		203,763			36,926			2,340			6,813
Other		1,691			274		��	—			—

Total expenses		205,454			37,200			2,340			6,813
Expenses waived/paid by affiliates (Note 3a)		(1,171	)		(133	)		—			—

Net investment income		5,403,894			618,951			37,946			79,171

Realized and unrealized gains (losses):
Net realized gain (loss) from:
Investments:
Unaffiliated issuers		(1,678,941	)		(1,194,835	)		(4,873	)		(72,689	)
In-kind redemptions		3,284,710			(1,813,235	)		—			—
Foreign currency transactions		(52,801	)		(5,371	)		(572	)		605
Futures contracts		(191,574	)		(45,583	)		(151	)		—
Forward exchange contracts		—			2,679,079			—			—

Net realized gain (loss)		1,361,394			(379,945	)		(5,596	)		(72,084	)

Net change in unrealized appreciation (depreciation) on:
Investments:
Unaffiliated issuers		(27,173,961	)		(1,973,871	)		1,479			(350,408	)
Translation of other assets and liabilities denominated in foreign currencies		(6,474	)		353			(400	)		(160	)
Futures contracts		(13,514	)		(6,158	)		(245	)		—
Forward exchange contracts		—			73,751			—			—

Net change in unrealized appreciation (depreciation)		(27,193,949	)		(1,905,925	)		834			(350,568	)

Net realized and unrealized gain (loss)		(25,832,555	)		(2,285,870	)		(4,762	)		(422,652	)

Net increase (decrease) in net assets resulting from operations	$	(20,428,661	)	$	(1,666,919	)	$	33,184		$	(343,481	)

^aFor the period October 9, 2018 (commencement of operations) to March 31, 2019 for Franklin FTSE Latin America ETF.


^bForeign taxes withheld on dividends	$	622,826	$	74,408	$	4,250	$	4,522



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FINANCIAL STATEMENTS

Statements of Operations(continued)

for the year ended March 31, 2019^a,b



	Franklin FTSE Russia ETF			Franklin FTSE Saudi Arabia ETF			Franklin FTSE South Africa ETF^a			Franklin FTSE South Korea ETF^b
Investment income:
Dividends: (net of foreign taxes)^c
Unaffiliated issuers	$	332,776		$	16,071		$	24,052		$	393,180
Income from securities loaned: (Note 1d)
Unaffiliated issuers (net of fees and rebates)		—			—			—			2,830
Non-controlled affiliates (Note 3c)		—			—			—			1,351

Total investment income		332,776			16,071			24,052			397,361

Expenses:
Management fees (Note 3a)		13,281			4,712			2,361			19,526
Other		—			90			—			56

Total expenses		13,281			4,802			2,361			19,582
Expenses waived/paid by affiliates (Note 3a)		—			—			—			(237	)

Net investment income		319,495			11,269			21,691			378,016

Realized and unrealized gains (losses):
Net realized gain (loss) from:
Investments:
Unaffiliated issuers		(131,477	)		(170	)		(4,187	)		(1,604,753	)
In-kind redemptions		57,922			—			—			—
Foreign currency transactions		(2,885	)		(1,723	)		(184	)		3,949
Futures contracts		—			—			—			14,084
Forward exchange contracts		—			—			—			(3,228	)

Net realized gain (loss)		(76,440	)		(1,893	)		(4,371	)		(1,589,948	)

Net change in unrealized appreciation (depreciation) on:
Investments:
Unaffiliated issuers		500,277			296,978			208,712			(3,246,700	)
Translation of other assets and liabilities denominated in foreign currencies		(786	)		—			91			(4,252	)
Futures contracts		—			—			—			(1,359	)

Net change in unrealized appreciation (depreciation)		499,491			296,978			208,803			(3,252,311	)

Net realized and unrealized gain (loss)		423,051			295,085			204,432			(4,842,259	)

Net increase (decrease) in net assets resulting from operations	$	742,546		$	306,354		$	226,123		$	(4,464,243	)

^aFor the period October 9, 2018 (commencement of operations) to March 31, 2019 for Franklin FTSE Saudi Arabia ETF.

^bFor the period October 10, 2018 (commencement of operations) to March 31, 2019 for Franklin FTSE South Africa ETF.


^cForeign taxes withheld on dividends	$	58,207	$	783	$	4,347	$	72,025



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FINANCIAL STATEMENTS

Statements of Operations(continued)

for the year ended March 31, 2019



	Franklin FTSE Switzerland ETF			Franklin FTSE Taiwan ETF			Franklin FTSE United Kingdom ETF
Investment income:
Dividends: (net of foreign taxes)^a
Unaffiliated issuers	$	59,514		$	174,231		$	645,863

Total investment income		59,514			174,231			645,863

Expenses:
Management fees (Note 3a)		2,198			15,383			12,788
Other		—			44			—

Total expenses		2,198			15,427			12,788

Net investment income		57,316			158,804			633,075

Realized and unrealized gains (losses):
Net realized gain (loss) from:
Investments:
Unaffiliated issuers		(31,228	)		(97,058	)		(60,931	)
In-kind redemptions		(87,901	)		—			733,820
Foreign currency transactions		(334	)		(10,742	)		3,898
Futures contracts		—			4,266			4,035

Net realized gain (loss)		(119,463	)		(103,534	)		680,822

Net change in unrealized appreciation (depreciation) on:
Investments:
Unaffiliated issuers		19,311			400,486			(185,481	)
Translation of other assets and liabilities denominated in foreign currencies		(354	)		—			(3,030	)
Futures contracts		—			—			6,803

Net change in unrealized appreciation (depreciation)		18,957			400,486			(181,708	)

Net realized and unrealized gain (loss)		(100,506	)		296,952			499,114

Net increase (decrease) in net assets resulting from operations	$	(43,190	)	$	455,756		$	1,132,189


^aForeign taxes withheld on dividends		$9,910			$44,616			$10,140



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FINANCIAL STATEMENTS

Statements of Changes in Net Assets



	Franklin FTSE Asia ex Japan ETF						Franklin FTSE Australia ETF

	Year Ended March 31, 2019			Year Ended March 31, 2018^a			Year Ended March 31, 2019			Year Ended March 31, 2018^b
Increase (decrease) in net assets:
Operations:
Net investment income	$	382,992		$	14,772		$	374,062		$	55,028
Net realized gain (loss)		(215,726	)		(18,736	)		392,801			104,836
Net change in unrealized appreciation (depreciation)		(1,187,115	)		(15,572	)		(276,343	)		(174,893	)

Net increase (decrease) in net assets resulting from operations		(1,019,849	)		(19,536	)		490,520			(15,029	)

Distributions to shareholders: (Note 1f)		(370,953	)		—			(242,641	)		(22,846	)

Capital share transactions: (Note 2)		9,428,138			9,470,271			4,674,690			2,504,421

Net increase (decrease) in net assets		8,037,336			9,450,735			4,922,569			2,466,546
Net assets:
Beginning of year		9,450,735			—			2,466,546			—

End of year (Note 1f)	$	17,488,071		$	9,450,735		$	7,389,115		$	2,466,546

^aFor the period February 6, 2018 (commencement of operations) to March 31, 2018.

^bFor the period November 2, 2017 (commencement of operations) to March 31, 2018.



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FINANCIAL STATEMENTS

Statements of Changes in Net Assets(continued)



	Franklin FTSE Brazil ETF						Franklin FTSE Canada ETF

	Year Ended March 31, 2019			Year Ended March 31, 2018^a			Year Ended March 31, 2019			Year Ended March 31, 2018^b
Increase (decrease) in net assets:
Operations:
Net investment income	$	831,596		$	369,484		$	110,177		$	25,263
Net realized gain (loss)		(9,920,956	)		(120,390	)		(143,008	)		152,154
Net change in unrealized appreciation (depreciation)		950,677			73,350			91,259			(165,809	)

Net increase (decrease) in net assets resulting from operations		(8,138,683	)		322,444			58,428			11,608

Distributions to shareholders: (Note 1f)		(923,263	)		(21,049	)		(95,664	)		(10,464	)

Capital share transactions: (Note 2)		(14,952,279	)		44,291,655			2,487,064			2,375,924

Net increase (decrease) in net assets		(24,014,225	)		44,593,050			2,449,828			2,377,068
Net assets:
Beginning of year		44,593,050			—			2,377,068			—

End of year (Note 1f)	$	20,578,825		$	44,593,050		$	4,826,896		$	2,377,068

^aFor the period November 3, 2017 (commencement of operations) to March 31, 2018.

^bFor the period November 2, 2017 (commencement of operations) to March 31, 2018.



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FINANCIAL STATEMENTS

Statements of Changes in Net Assets(continued)



	Franklin FTSE China ETF						Franklin FTSE Europe ETF

	Year Ended March 31, 2019			Year Ended March 31, 2018^a			Year Ended March 31, 2019			Year Ended March 31, 2018^a
Increase (decrease) in net assets:
Operations:
Net investment income	$	576,193		$	(9,724	)	$	3,116,118		$	716,594
Net realized gain (loss)		(603,039	)		(35,622	)		(1,055,832	)		(9,244	)
Net change in unrealized appreciation (depreciation)		(1,780,744	)		(1,257,688	)		(5,306,884	)		(1,204,509	)

Net increase (decrease) in net assets resulting from operations		(1,807,590	)		(1,303,034	)		(3,246,598	)		(497,159	)

Distributions to shareholders: (Note 1f)		(584,365	)		(336	)		(3,141,008	)		(23,965	)

Capital share transactions: (Note 2)		14,421,020			32,494,727			(24,163,732	)		105,431,782

Net increase (decrease) in net assets		12,029,065			31,191,357			(30,551,338	)		104,910,658
Net assets:
Beginning of year		31,191,357			—			104,910,658			—

End of year (Note 1f)	$	43,220,422		$	31,191,357		$	74,359,320		$	104,910,658

^aFor the period November 2, 2017 (commencement of operations) to March 31, 2018.



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FINANCIAL STATEMENTS

Statements of Changes in Net Assets(continued)



	Franklin FTSE Europe Hedged ETF						Franklin FTSE France ETF

	Year Ended March 31, 2019			Year Ended March 31, 2018^a			Year Ended March 31, 2019			Year Ended March 31, 2018^a
Increase (decrease) in net assets:
Operations:
Net investment income	$	1,007,339		$	231,036		$	70,225		$	8,162
Net realized gain (loss)		(619,268	)		(647,897	)		(13,591	)		(630	)
Net change in unrealized appreciation (depreciation)		581,744			(1,066,507	)		(134,495	)		(986	)

Net increase (decrease) in net assets resulting from operations		969,815			(1,483,368	)		(77,861	)		6,546

Distributions to shareholders: (Note 1f)		(3,462,145	)		(16,503	)		(68,766	)		(5,569	)

Capital share transactions: (Note 2)		(26,372,741	)		34,927,749			—			2,532,072

Net increase (decrease) in net assets		(28,865,071	)		33,427,878			(146,627	)		2,533,049
Net assets:
Beginning of year		33,427,878			—			2,533,049			—

End of year (Note 1f)	$	4,562,807		$	33,427,878		$	2,386,422		$	2,533,049

^aFor the period November 2, 2017 (commencement of operations) to March 31, 2018.



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FINANCIAL STATEMENTS

Statements of Changes in Net Assets(continued)



	Franklin FTSE Germany ETF						Franklin FTSE Hong Kong ETF

	Year Ended March 31, 2019			Year Ended March 31, 2018^a			Year Ended March 31, 2019			Year Ended March 31, 2018^a
Increase (decrease) in net assets:
Operations:
Net investment income	$	74,153		$	5,409		$	329,771		$	48,141
Net realized gain (loss)		(26,064	)		(1,887	)		(82,452	)		(17,552	)
Net change in unrealized appreciation (depreciation)		(420,241	)		(98,379	)		1,512,009			240,471

Net increase (decrease) in net assets resulting from operations		(372,152	)		(94,857	)		1,759,328			271,060

Distributions to shareholders: (Note 1f)		(59,669	)		—			(273,434	)		(19,614	)

Capital share transactions: (Note 2)		2,111,997			2,554,846			10,779,669			7,600,688

Net increase (decrease) in net assets		1,680,176			2,459,989			12,265,563			7,852,134
Net assets:
Beginning of year		2,459,989			—			7,852,134			—

End of year (Note 1f)	$	4,140,165		$	2,459,989		$	20,117,697		$	7,852,134

^aFor the period November 2, 2017 (commencement of operations) to March 31, 2018.



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FINANCIAL STATEMENTS

Statements of Changes in Net Assets(continued)



	Franklin FTSE India ETF						Franklin FTSE Italy ETF

	Year Ended March 31, 2019			Year Ended March 31, 2018^a			Year Ended March 31, 2019			Year Ended March 31, 2018^b
Increase (decrease) in net assets:
Operations:
Net investment income	$	70,302		$	9,414		$	117,532		$	10,697
Net realized gain (loss)		(78,187	)		(10,175	)		(226,842	)		(966	)
Net change in unrealized appreciation (depreciation)		175,178			(108,062	)		433,507			71,421

Net increase (decrease) in net assets resulting from operations		167,293			(108,823	)		324,197			81,152

Distributions to shareholders: (Note 1f)		(47,624	)		—			(91,568	)		(5,007	)

Capital share transactions: (Note 2)		4,613,517			2,382,811			7,550,898			2,550,711

Net increase (decrease) in net assets		4,733,186			2,273,988			7,783,527			2,626,856
Net assets:
Beginning of year		2,273,988			—			2,626,856			—

End of year (Note 1f)	$	7,007,174		$	2,273,988		$	10,410,383		$	2,626,856

^aFor the period February 6, 2018 (commencement of operations) to March 31, 2018.

^bFor the period November 2, 2017 (commencement of operations) to March 31, 2018.



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FINANCIAL STATEMENTS

Statements of Changes in Net Assets(continued)



	Franklin FTSE Japan ETF						Franklin FTSE Japan Hedged ETF

	Year Ended March 31, 2019			Year Ended March 31, 2018^a			Year Ended March 31, 2019			Year Ended March 31, 2018^a
Increase (decrease) in net assets:
Operations:
Net investment income	$	5,403,894		$	811,796		$	618,951		$	406,721
Net realized gain (loss)		1,361,394			(58,588	)		(379,945	)		(2,348,792	)
Net change in unrealized appreciation (depreciation)		(27,193,949	)		(5,509,189	)		(1,905,925	)		(268,166	)

Net increase (decrease) in net assets resulting from operations		(20,428,661	)		(4,755,981	)		(1,666,919	)		(2,210,237	)

Distributions to shareholders: (Note 1f)		(3,317,982	)		(15,507	)		(2,263,375	)		(15,372	)

Capital share transactions: (Note 2)		217,869,864			100,853,671			(27,397,137	)		47,422,675

Net increase (decrease) in net assets		194,123,221			96,082,183			(31,327,431	)		45,197,066
Net assets:
Beginning of year		96,082,183			—			45,197,066			—

End of year (Note 1f)	$	290,205,404		$	96,082,183		$	13,869,635		$	45,197,066

^aFor the period November 2, 2017 (commencement of operations) to March 31, 2018.



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FINANCIAL STATEMENTS

Statements of Changes in Net Assets(continued)



	Franklin FTSE Latin America ETF			Franklin FTSE Mexico ETF

	Year Ended March 31, 2019^a			Year Ended March 31, 2019			Year Ended March 31, 2018^b
Increase (decrease) in net assets:
Operations:
Net investment income	$	37,946		$	79,171		$	12,150
Net realized gain (loss)		(5,596	)		(72,084	)		(14,040	)
Net change in unrealized appreciation (depreciation)		834			(350,568	)		16,978

Net increase (decrease) in net assets resulting from operations		33,184			(343,481	)		15,088

Distributions to shareholders: (Note 1f)		(11,915	)		(78,632	)		(7,683	)

Capital share transactions: (Note 2)		2,619,441			2,346,009			2,490,317

Net increase (decrease) in net assets		2,640,710			1,923,896			2,497,722
Net assets:
Beginning of year		—			2,497,722			—

End of year (Note 1f)	$	2,640,710		$	4,421,618		$	2,497,722

^aFor the period October 9, 2018 (commencement of operations) to March 31, 2019.

^bFor the period November 3, 2017 (commencement of operations) to March 31, 2018.



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FINANCIAL STATEMENTS

Statements of Changes in Net Assets(continued)



	Franklin FTSE Russia ETF						Franklin FTSE Saudi Arabia ETF

	Year Ended March 31, 2019			Year Ended March 31, 2018^a			Year Ended March 31, 2019^b
Increase (decrease) in net assets:
Operations:
Net investment income	$	319,495		$	(446	)	$	11,269
Net realized gain (loss)		(76,440	)		(1,922	)		(1,893	)
Net change in unrealized appreciation (depreciation)		499,491			35,772			296,978

Net increase (decrease) in net assets resulting from operations		742,546			33,404			306,354

Distributions to shareholders: (Note 1f)		(307,541	)		—			—

Capital share transactions: (Note 2)		8,824,329			2,390,277			2,482,525

Net increase (decrease) in net assets		9,259,334			2,423,681			2,788,879
Net assets:
Beginning of year		2,423,681			—			—

End of year (Note 1f)	$	11,683,015		$	2,423,681		$	2,788,879

^aFor the period February 6, 2018 (commencement of operations) to March 31, 2018.

^bFor the period October 9, 2018 (commencement of operations) to March 31, 2019.



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FINANCIAL STATEMENTS

Statements of Changes in Net Assets(continued)



	Franklin FTSE South Africa ETF			Franklin FTSE South Korea ETF

	Year Ended March 31, 2019^a			Year Ended March 31, 2019			Year Ended March 31, 2018^b
Increase (decrease) in net assets:
Operations:
Net investment income	$	21,691		$	378,016		$	58,440
Net realized gain (loss)		(4,371	)		(1,589,948	)		(70,934	)
Net change in unrealized appreciation (depreciation)		208,803			(3,252,311	)		(886,880	)

Net increase (decrease) in net assets resulting from operations		226,123			(4,464,243	)		(899,374	)

Distributions to shareholders: (Note 1f)		(5,950	)		(340,269	)		(26,811	)

Capital share transactions: (Note 2)		2,441,624			(4,227,746	)		26,906,909

Net increase (decrease) in net assets		2,661,797			(9,032,258	)		25,980,724
Net assets:
Beginning of year		—			25,980,724			—

End of year (Note 1f)	$	2,661,797		$	16,948,466		$	25,980,724

^aFor the period October 10, 2018 (commencement of operations) to March 31, 2019.

^bFor the period November 2, 2017 (commencement of operations) to March 31, 2018.



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FINANCIAL STATEMENTS

Statements of Changes in Net Assets(continued)



	Franklin FTSE Switzerland ETF						Franklin FTSE Taiwan ETF

	Year Ended March 31, 2019			Year Ended March 31, 2018^a			Year Ended March 31, 2019			Year Ended March 31, 2018^b
Increase (decrease) in net assets:
Operations:
Net investment income	$	57,316		$	22,339		$	158,804		$	(3,997	)
Net realized gain (loss)		(119,463	)		(437	)		(103,534	)		(8,531	)
Net change in unrealized appreciation (depreciation)		18,957			(67,085	)		400,486			148,220

Net increase (decrease) in net assets resulting from operations		(43,190	)		(45,183	)		455,756			135,692

Distributions to shareholders: (Note 1f)		(60,937	)		—			(144,725	)		—

Capital share transactions: (Note 2)		179,347			2,355,977			9,254,307			5,132,586

Net increase (decrease) in net assets		75,220			2,310,794			9,565,338			5,268,278
Net assets:
Beginning of year		2,310,794			—			5,268,278			—

End of year (Note 1f)	$	2,386,014		$	2,310,794		$	14,833,616		$	5,268,278

^aFor the period February 6, 2018 (commencement of operations) to March 31, 2018.

^bFor the period November 2, 2017 (commencement of operations) to March 31, 2018.



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FINANCIAL STATEMENTS

Statements of Changes in Net Assets(continued)



	Franklin FTSE United Kingdom ETF

	Year Ended March 31, 2019			Year Ended March 31, 2018^a
Increase (decrease) in net assets:
Operations:
Net investment income	$	633,075		$	38,381
Net realized gain (loss)		680,822			(2,200	)
Net change in unrealized appreciation (depreciation)		(181,708	)		8,468

Net increase (decrease) in net assets resulting from operations		1,132,189			44,649

Distributions to shareholders: (Note 1f)		(324,863	)		(10,964	)

Capital share transactions: (Note 2)		25,746,068			2,489,142

Net increase (decrease) in net assets		26,553,394			2,522,827
Net assets:
Beginning of year		2,522,827			—

End of year (Note 1f)	$	29,076,221		$	2,522,827

^aFor the period November 2, 2017 (commencement of operations) to March 31, 2018.



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Notes to Financial Statements

1. Organization and Significant Accounting Policies

Franklin Templeton ETF Trust (Trust) is registered under the Investment Company Act of 1940 (1940 Act) as anopen-end management investment company, consisting of thirty-eight separate funds, twenty-three of which are included in this report (Funds) and applies the specialized accounting and reporting guidance in U.S. Generally Accepted Accounting Principles (U.S. GAAP). 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

Equity securities and derivative financial instruments (derivatives) 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 trade in the OTC market. The Funds’ pricing services use various techniques



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1. Organization and Significant Accounting Policies(continued)

a. Financial Instrument Valuation(continued)

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

c. Derivative Financial Instruments

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. 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 thenon-defaulting party the right to net andclose-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.



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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 for OTC derivatives, 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 counterpartynon-performance.

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 fund managed by Franklin Advisers, Inc., an affiliate of the Funds. 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

f. Security Transactions, Investment Income, Expenses and Distributions



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1. Organization and Significant Accounting Policies(continued)

f. Security Transactions, Investment Income, Expenses and Distributions(continued)

recorded on theex-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.

For the year ended March 31, 2018, distributions to shareholders were as follows:



	Franklin FTSE Asia ex Japan ETF			Franklin FTSE Australia ETF			Franklin FTSE Brazil ETF			Franklin FTSE Canada ETF
Distributions from net investment income:	$	—		$	(22,846	)	$	(21,049	)	$	(10,464	)

	Franklin FTSE China ETF			Franklin FTSE Europe ETF			Franklin FTSE Europe Hedged ETF			Franklin FTSE France ETF
Distributions from net investment income:	$	(336	)	$	(23,965	)	$	(16,503	)	$	(5,569	)

	Franklin FTSE Germany ETF			Franklin FTSE Hong Kong ETF			Franklin FTSE India ETF			Franklin FTSE Italy ETF
Distributions from net investment income:	$	—		$	(19,614	)	$	—		$	(5,007	)

	Franklin FTSE Japan ETF			Franklin FTSE Japan Hedged ETF			Franklin FTSE Mexico ETF			Franklin FTSE Russia ETF
Distributions from net investment income:	$	(15,507	)	$	(15,372	)	$	(7,683	)	$	—

	Franklin FTSE South Korea ETF			Franklin FTSE Switzerland ETF			Franklin FTSE Taiwan ETF			Franklin FTSE United Kingdom ETF
Distributions from net investment income:	$	(26,811	)	$	—		$	—		$	(10,964	)

For the year ended March 31, 2018, undistributed net investment income, distributions in excess of net investment income, and accumulated net investment loss included in net assets were as follows:



Fund	Undistributed net investment income		Distribution in excess of net investment income		Accumulated net investment loss
Franklin FTSE Asia ex Japan ETF	$	6,112	$	—	$	—
Franklin FTSE Australia ETF		43,205		—		—
Franklin FTSE Brazil ETF		348,056		—		—
Franklin FTSE Canada ETF		14,773		—		—



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Fund	Undistributed net investment income		Distribution in excess of net investment income			Accumulated net investment loss
Franklin FTSE China ETF	$	—	$	—		$	(11,229	)
Franklin FTSE Europe ETF		702,383		—			—
Franklin FTSE Europe Hedged ETF		—		(402,369	)		—
Franklin FTSE France ETF		2,625		—			—
Franklin FTSE Germany ETF		5,376		—			—
Franklin FTSE Hong Kong ETF		27,702		—			—
Franklin FTSE India ETF		2,164		—			—
Franklin FTSE Italy ETF		5,919		—			—
Franklin FTSE Japan ETF		798,554		—			—
Franklin FTSE Japan Hedged ETF		—		(1,934,972	)		—
Franklin FTSE Mexico ETF		4,480		—			—
Franklin FTSE Russia ETF		—		—			(2	)
Franklin FTSE South Korea ETF		—		(1,809	)		—
Franklin FTSE Switzerland ETF		22,210		—			—
Franklin FTSE Taiwan ETF		—		—			(3,621	)
Franklin FTSE United Kingdom ETF		28,168		—			—

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 Funds or by the Investment Manager as applicable, according to the terms of the unified management agreement.

g. Accounting Estimates

h. Guarantees and Indemnifications

2. Shares of Beneficial Interest



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2. Shares of Beneficial Interest(continued)

At March 31, 2019, 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

	Year Ended March 31, 2019						Year Ended March 31, 2018^a

	Shares			Amount			Shares			Amount
Shares sold		400,000		$	9,428,138			400,000		$	9,470,271

Net increase (decrease)		400,000		$	9,428,138			400,000		$	9,470,271


	Franklin FTSE Australia ETF

	Year Ended March 31, 2019						Year Ended March 31, 2018^b

	Shares			Amount			Shares			Amount
Shares sold		500,000		$	12,241,732			550,000		$	14,079,999
Shares redeemed		(300,000	)		(7,567,042	)		(450,000	)		(11,575,578	)

Net increase (decrease)		200,000		$	4,674,690			100,000		$	2,504,421


	Franklin FTSE Brazil ETF

	Year Ended March 31, 2019						Year Ended March 31, 2018^c

	Shares			Amount			Shares			Amount
Shares sold		300,000		$	7,431,063			1,600,000		$	44,291,655
Shares redeemed		(1,100,000	)		(22,383,342	)		—			—

Net increase (decrease)		(800,000	)	$	(14,952,279	)		1,600,000		$	44,291,655


	Franklin FTSE Canada ETF

	Year Ended March 31, 2019						Year Ended March 31, 2018^b

	Shares			Amount			Shares			Amount
Shares sold		200,000		$	4,802,307			500,000		$	12,447,175
Shares redeemed		(100,000	)		(2,315,243	)		(400,000	)		(10,071,251	)

Net increase (decrease)		100,000		$	2,487,064			100,000		$	2,375,924



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	Franklin FTSE China ETF

	Year Ended March 31, 2019						Year Ended March 31, 2018^b

	Shares			Amount			Shares		Amount
Shares sold		600,000		$	14,421,020			1,200,000	$	32,494,727

Net increase (decrease)		600,000		$	14,421,020			1,200,000	$	32,494,727


	Franklin FTSE Europe ETF

	Year Ended March 31, 2019						Year Ended March 31, 2018^b

	Shares			Amount			Shares		Amount
Shares sold		—		$	—			4,200,000	$	105,431,782
Shares redeemed		(1,000,000	)		(24,164,732	)		—		—

Net increase (decrease)		(1,000,000	)	$	(24,163,732	)		4,200,000	$	105,431,782


	Franklin FTSE Europe Hedged ETF

	Year Ended March 31, 2019						Year Ended March 31, 2018^b

	Shares			Amount			Shares		Amount
Shares sold		—		$	—			1,400,000	$	34,927,749
Shares redeemed		(1,200,000	)		(26,372,741	)		—		—

Net increase (decrease)		(1,200,000	)	$	(26,372,741	)		1,400,000	$	34,927,749


	Franklin FTSE France ETF

	Year Ended March 31, 2019						Year Ended March 31, 2018^b

	Shares			Amount			Shares		Amount
Shares sold		—		$	—			100,000	$	2,532,072

Net increase (decrease)		—		$	—			100,000	$	2,532,072


	Franklin FTSE Germany ETF

	Year Ended March 31, 2019						Year Ended March 31, 2018^b

	Shares			Amount			Shares		Amount
Shares sold		100,000		$	2,111,997			100,000	$	2,554,846

Net increase (decrease)		100,000		$	2,111,997			100,000	$	2,554,846


	Franklin FTSE Hong Kong ETF

	Year Ended March 31, 2019						Year Ended March 31, 2018^b

	Shares			Amount			Shares		Amount
Shares sold		450,000		$	10,779,669			300,000	$	7,600,688

Net increase (decrease)		450,000		$	10,779,669			300,000	$	7,600,688



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2. Shares of Beneficial Interest(continued)


	Franklin FTSE India ETF

	Year Ended March 31, 2019						Year Ended March 31, 2018^a

	Shares			Amount			Shares		Amount
Shares sold		200,000		$	4,613,517			100,000	$	2,382,811

Net increase (decrease)		200,000		$	4,613,517			100,000	$	2,382,811


	Franklin FTSE Italy ETF

	Year Ended March 31, 2019						Year Ended March 31, 2018^b

	Shares			Amount			Shares		Amount
Shares sold		650,000		$	14,664,447			100,000	$	2,550,711
Shares redeemed		(300,000	)		(7,113,549	)		—		—

Net increase (decrease)		350,000		$	7,550,898			100,000	$	2,550,711


	Franklin FTSE Japan ETF

	Year Ended March 31, 2019						Year Ended March 31, 2018^b

	Shares			Amount			Shares		Amount
Shares sold		9,600,000		$	246,910,441			3,600,000	$	100,853,671
Shares redeemed		(1,200,000	)		(29,040,577	)		—		—

Net increase (decrease)		8,400,000		$	217,869,864			3,600,000	$	100,853,671


	Franklin FTSE Japan Hedged ETF

	Year Ended March 31, 2019						Year Ended March 31, 2018^b

	Shares			Amount			Shares		Amount
Shares sold		—		$	—			1,800,000	$	47,422,675
Shares redeemed		(1,200,000	)		(27,397,137	)		—		—

Net increase (decrease)		(1,200,000	)	$	(27,397,137	)		1,800,000	$	47,422,675


	Franklin FTSE Latin America ETF

	Year Ended March 31, 2019^d

	Shares			Amount
Shares sold		100,000		$	2,619,441

Net increase (decrease)		100,000		$	2,619,441


	Franklin FTSE Mexico ETF

	Year Ended March 31, 2019						Year Ended March 31, 2018^c

	Shares			Amount			Shares		Amount
Shares sold		100,000		$	2,346,009			100,000	$	2,490,317

Net increase (decrease)		100,000		$	2,346,009			100,000	$	2,490,317



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	Franklin FTSE Russia ETF

	Year Ended March 31, 2019						Year Ended March 31, 2018^a

	Shares			Amount			Shares		Amount
Shares sold		500,000		$	11,087,284			100,000	$	2,390,277
Shares redeemed		(100,000	)		(2,262,955	)		—		—

Net increase (decrease)		400,000		$	8,824,329			100,000	$	2,390,277


	Franklin FTSE Saudi Arabia ETF

	Year Ended March 31, 2019^d

	Shares			Amount
Shares sold		100,000		$	2,482,525

Net increase (decrease)		100,000		$	2,482,525


	Franklin FTSE South Africa ETF

	Year Ended March 31, 2019^e

	Shares			Amount
Shares sold		100,000		$	2,441,624

Net increase (decrease)		100,000		$	2,441,624


	Franklin FTSE South Korea ETF

	Year Ended March 31, 2019						Year Ended March 31, 2018^b

	Shares			Amount			Shares		Amount
Shares sold		—		$	13,712			1,000,000	$	26,906,909
Shares redeemed		(200,000	)		(4,241,458	)		—		—

Net increase (decrease)		(200,000	)	$	(4,227,746	)		1,000,000	$	26,906,909


	Franklin FTSE Switzerland ETF

	Year Ended March 31, 2019						Year Ended March 31, 2018^a

	Shares			Amount			Shares		Amount
Shares sold		100,000		$	2,352,537			100,000	$	2,355,977
Shares redeemed		(100,000	)		(2,173,190	)		—		—

Net increase (decrease)		—		$	179,347			100,000	$	2,355,977


	Franklin FTSE Taiwan ETF

	Year Ended March 31, 2019						Year Ended March 31, 2018^b

	Shares			Amount			Shares		Amount
Shares sold		400,000		$	9,254,307			200,000	$	5,132,586

Net increase (decrease)		400,000		$	9,254,307			200,000	$	5,132,586



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2. Shares of Beneficial Interest(continued)


	Franklin FTSE United Kingdom ETF

	Year Ended March 31, 2019						Year Ended March 31, 2018^b

	Shares			Amount			Shares		Amount
Shares sold		1,450,000		$	34,027,374			100,000	$	2,489,142
Shares redeemed		(350,000	)		(8,281,306	)		—		—

Net increase (decrease)		1,100,000		$	25,746,068			100,000	$	2,489,142

^aFor the period February 6, 2018 (commencement of operations) to March 31, 2019.

^bFor the period November 2, 2017 (commencement of operations) to March 31, 2019.

^cFor the period November 3, 2017 (commencement of operations) to March 31, 2019.

^dFor the period October 9, 2018 (commencement of operations) to March 31, 2019.

^eFor the period October 10, 2018 (commencement of operations) to March 31, 2019.

3. Transactions with Affiliates



Subsidiary		Affiliation
Franklin Advisory Services, LLC (FASL)		Investment manager
Franklin Advisers, Inc. (Advisers)		Investment manager
Franklin Templeton Services, LLC (FT Services)		Administrative manager
Franklin Templeton Distributors, Inc. (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 fee 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’ Rule12b-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 nonroutine or extraordinary expenses. The fees are based on the daily net assets of each of the Funds as follows:



		Annualized 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 Europe Hedged ETF		0.09%
Franklin FTSE France ETF		0.09%
Franklin FTSE Germany ETF		0.09%
Franklin FTSE Hong Kong ETF		0.09%
Franklin FTSE India ETF		0.19%
Franklin FTSE Italy ETF		0.09%



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		Annualized Fee Rate
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 Russia ETF		0.19%
Franklin FTSE Saudi Arabia ETF		0.39%
Franklin FTSE South Africa ETF		0.19%
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%

Prior to February 1, 2019, the Funds paid a unified management fee to Advisers.

b. Administrative Fees

c. Investments in Affiliated Management Investment Companies



	Number of Shares Held at Beginning of Year		Gross Additions		Gross Reductions			Number of Shares Held at End of Year		Value at End of Year		Investment Income		Realized Gain (Loss)		Net Change in Unrealized Appreciation (Depreciation)

Franklin FTSE Europe Hedged ETF
Non-Controlled Affiliates													Dividends

Institutional Fiduciary Trust Money Market Portfolio 2.10%		—		3,187,844		(3,187,806	)		38	$	38	$	1,386	$	—	$	—


Franklin FTSE Japan ETF
Non-Controlled Affiliates													Dividends

Institutional Fiduciary Trust Money Market Portfolio 2.10%		—		2,849,545		(2,735,204	)		114,341		114,341		1,865	$	—	$	—
Non-Controlled Affiliates													Income from securities loaned

Institutional Fiduciary Trust Money Market Portfolio 2.10%		—		5,225,100		(5,108,065	)		117,035	$	117,035	$	5,200		—		—

Total Affiliated Securities										$	231,376	$	7,065	$	—	$	—



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3. Transactions with Affiliates(continued)



	Number of Shares Held at Beginning of Year		Gross Additions		Gross Reductions			Number of Shares Held at End of Year		Value at End of Year		Investment Income		Realized Gain (Loss)		Net Change in Unrealized Appreciation (Depreciation)

Franklin FTSE Japan Hedged ETF
Non-Controlled Affiliates													Dividends

Institutional Fiduciary Trust Money Market Portfolio 2.10%		—		2,802,425		(2,774,411	)		28,014	$	28,014	$	605	$	—	$	—


Franklin FTSE South Korea ETF
Non-Controlled Affiliates													Income from securities loaned

Institutional Fiduciary Trust Money Market Portfolio 2.10%		—		895,890		(895,890	)		—	$	—	$	1,351	$	—	$	—

d. Other Affiliated Transactions

At March 31, 2019, the shares of the Funds were owned by the following entities:



Funds	Shares		Percentage of Outstanding Shares^a

Franklin FTSE Europe ETF
Franklin Conservative Allocation Fund		453,355		14.2%
Franklin Growth Allocation Fund		962,350		30.1%
Franklin LifeSmart^™ 2020 – 2055 Retirement Target Funds		412,455		12.9%
Franklin Moderate Allocation Fund		1,104,412		34.5%

Total		2,932,572		91.7%


Franklin FTSE Japan ETF
Franklin FTSE Japan ETF (Canada)		2,096,965		17.5%
Franklin Growth Allocation Fund		600,000		5.7%
Franklin Moderate Allocation Fund		688,827		5.0%

Total		1,288,827		28.2%


Franklin FTSE Latin America ETF
Franklin Resources Inc.		46,000		46.0%


Franklin FTSE Mexico ETF
Franklin Resources Inc.		10,000		5.0%


Franklin FTSE Switzerland ETF
Franklin Resources Inc.		35,000		35.0%


Franklin FTSE Saudi Arabia ETF
Franklin Resources Inc.		46,000		46.0%


Franklin FTSE South Africa ETF
Franklin Resources Inc.		46,000		46.0%

^aInvestment activities of significant shareholders could have a material impact on the Funds.



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4. Income Taxes

For tax purposes, capital losses may be carried over to offset future capital gains, if any. At March 31, 2019, 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:
Short term	$	167,800	$	18,758	$	9,461,679	$	24,527
Long term		39,257		8,557		55,524		13,525

Total capital loss carryforwards	$	207,057	$	27,315	$	9,517,203	$	38,052


	Franklin FTSE China ETF		Franklin FTSE Europe ETF		Franklin FTSE Europe Hedged ETF		Franklin FTSE France ETF
Capital loss carryforwards:
Short term	$	471,553	$	117,199	$	—	$	6,306
Long term		10,748		165,782		—		4,724

Total capital loss carryforwards	$	482,301	$	282,981	$	—	$	11,030


	Franklin FTSE Germany ETF		Franklin FTSE Hong Kong ETF		Franklin FTSE India ETF		Franklin FTSE Italy ETF
Capital loss carryforwards:
Short term	$	16,006	$	47,969	$	43,692	$	17,074
Long term		6,197		46,860		14,398		62,987

Total capital loss carryforwards	$	22,203	$	94,829	$	58,090	$	80,061


	Franklin FTSE Japan ETF		Franklin FTSE Japan Hedged ETF		Franklin FTSE Latin America ETF		Franklin FTSE Mexico ETF
Capital loss carryforwards:
Short term	$	1,690,921	$	—	$	2,923	$	50,983
Long term		240,746		—		—		24,533

Total capital loss carryforwards	$	1,931,667	$	—	$	2,923	$	75,516


	Franklin FTSE Russia ETF		Franklin FTSE Saudi Arabia ETF		Franklin FTSE South Africa ETF		Franklin FTSE South Korea ETF
Capital loss carryforwards:
Short term	$	79,193	$	33	$	4,187	$	870,257
Long term		5,575		—		—		679,368

Total capital loss carryforwards	$	84,768	$	33	$	4,187	$	1,549,625



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4.(continued)


	Franklin FTSE Switzerland ETF		Franklin FTSE Taiwan ETF		Franklin FTSE United Kingdom ETF
Capital loss carryforwards:
Short term	$	18,741	$	8,374	$	—
Long term		8,968		36,114		—

Total capital loss carryforwards	$	27,709	$	44,488	$	—

For tax purposes, the Funds may elect to defer any portion of a post-October capital loss or late-year ordinary loss to the first day of the following fiscal year. At March 31, 2019, the deferred losses were as follows:



	Franklin FTSE Europe Hedged ETF			Franklin FTSE Japan Hedged ETF
Late-year ordinary losses	$	—		$	(255,715	)

Post-October capital losses	$	(580,305	)	$	(1,183,142	)

During the year ended March 31, 2019, the Funds utilized following capital loss carryforwards as follows:


Franklin FTSE Japan Hedged ETF		Franklin FTSE Europe Hedged ETF		Franklin FTSE United Kingdom ETF
	$40,321		$166,803		$2,601

The tax character of distributions paid during the years ended March 31, 2019 and 2018, were as follows:



	Franklin FTSE Asia ex Japan ETF				Franklin FTSE Australia ETF

	2019		2018		2019		2018
Distributions paid from ordinary income	$	370,953	$	—	$	242,641	$	22,846


	Franklin FTSE Brazil ETF				Franklin FTSE Canada ETF

	2019		2018		2019		2018
Distributions paid from ordinary income	$	923,263	$	21,049	$	95,664	$	10,464


	Franklin FTSE China ETF				Franklin FTSE Europe ETF

	2019		2018		2019		2018
Distributions paid from ordinary income	$	584,365	$	336	$	3,141,008	$	23,965



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4. Income Taxes(continued)


	Franklin FTSE Europe Hedged ETF				Franklin FTSE France ETF

	2019		2018		2019		2018
Distributions paid from ordinary income	$	1,270,015	$	16,503	$	68,766	$	5,569
Distributions paid from long term gain		2,192,130		—		—		—

Total	$	3,462,145	$	16,503	$	68,766	$	5,569


	Franklin FTSE Germany ETF				Franklin FTSE Hong Kong ETF

	2019		2018		2019		2018
Distributions paid from ordinary income	$	59,669	$	—	$	273,434	$	19,614


	Franklin FTSE India ETF				Franklin FTSE Italy ETF

	2019		2018		2019		2018
Distributions paid from ordinary income	$	47,624	$	—	$	91,568	$	5,007


	Franklin FTSE Japan ETF				Franklin FTSE Japan Hedged ETF

	2019		2018		2019		2018
Distributions paid from ordinary income	$	3,317,982	$	15,507	$	16,486	$	15,372
Distributions paid from long term gain		—		—		2,246,889		—

Total	$	3,317,982	$	15,507	$	2,263,375	$	15,372


	Franklin FTSE Latin America ETF				Franklin FTSE Mexico ETF

	2019				2019		2018
Distributions paid from ordinary income	$	11,915			$	78,632	$	7,683


	Franklin FTSE Russia ETF				Franklin FTSE Saudi Arabia ETF

	2019		2018		2019
Distributions paid from ordinary income	$	307,541	$	—	$	—


	Franklin FTSE South Africa ETF				Franklin FTSE South Korea ETF

	2019				2019		2018
Distributions paid from ordinary income	$	5,950			$	340,269	$	26,811


	Franklin FTSE Switzerland ETF				Franklin FTSE Taiwan ETF

	2019		2018		2019		2018
Distributions paid from ordinary income	$	60,937	$	—	$	144,725	$	—


	Franklin FTSE United Kingdom ETF

	2019		2018
Distributions paid from ordinary income	$	324,863	$	10,964



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4. Income Taxes(continued)

The Franklin FTSE United Kingdom ETF utilized a tax accounting practice to treat a portion of the proceeds from capital shares redeemed as a distribution from realized capital gains.

At March 31, 2019, the cost of investments, net unrealized appreciation (depreciation) and undistributed ordinary income 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	$	18,663,282		$	7,860,087		$	19,934,759		$	4,892,070

Unrealized appreciation	$	803,762		$	237,662		$	1,696,163		$	114,871
Unrealized depreciation		(2,041,612	)		(748,295	)		(1,172,991	)		(195,114	)

Net unrealized appreciation (depreciation)	$	(1,237,850	)	$	(510,633	)	$	523,172		$	(80,243	)

Distributable earnings – undistributed ordinary income	$	51,708		$	220,981		$	236,914		$	29,245


	Franklin FTSE China ETF			Franklin FTSE Europe ETF			Franklin FTSE Europe Hedged ETF			Franklin FTSE France ETF
Cost of investments	$	46,415,520		$	80,284,186		$	5,131,347		$	2,519,604

Unrealized appreciation	$	1,389,086		$	3,920,622		$	372,310		$	156,540
Unrealized depreciation		(4,608,885	)		(10,449,649	)		(1,076,674	)		(294,622	)

Net unrealized appreciation (depreciation)	$	(3,219,799	)	$	(6,529,027	)	$	(704,364	)	$	(138,082	)

Distributable earnings – undistributed ordinary income	$	6,846		$	601,703		$	—		$	3,535


	Franklin FTSE Germany ETF			Franklin FTSE Hong Kong ETF			Franklin FTSE India ETF			Franklin FTSE Italy ETF
Cost of investments	$	4,650,999		$	18,287,047		$	6,967,964		$	9,953,071

Unrealized appreciation	$	105,575		$	2,292,158		$	522,419		$	696,979
Unrealized depreciation		(629,186	)		(556,378	)		(479,416	)		(254,542	)

Net unrealized appreciation (depreciation)	$	(523,611	)	$	1,735,780		$	43,003		$	442,437

Distributable earnings – undistributed ordinary income	$	19,172		$	96,395		$	64,037		$	30,969


	Franklin FTSE Japan ETF			Franklin FTSE Japan Hedged ETF			Franklin FTSE Latin America ETF			Franklin FTSE Mexico ETF
Cost of investments	$	319,559,015		$	15,832,055		$	2,634,138		$	4,786,623

Unrealized appreciation	$	7,232,047		$	512,992		$	160,750		$	96,960
Unrealized depreciation		(39,956,972	)		(2,730,764	)		(167,338	)		(468,593	)

Net unrealized appreciation (depreciation)	$	(32,724,925	)	$	(2,217,772	)	$	(6,588	)	$	(371,633	)

Distributable earnings – undistributed ordinary income	$	2,883,619		$	—		$	31,180		$	32,548



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4. Income Taxes(continued)


	Franklin FTSE Russia ETF			Franklin FTSE Saudi Arabia ETF			Franklin FTSE South Africa ETF			Franklin FTSE South Korea ETF
Cost of investments	$	11,194,879		$	2,490,667		$	2,444,971		$	20,868,855

Unrealized appreciation	$	717,271		$	316,302		$	298,695		$	203,236
Unrealized depreciation		(247,777	)		(19,461	)		(91,142	)		(4,428,138	)

Net unrealized appreciation (depreciation)	$	469,494		$	296,841		$	207,553		$	(4,224,902	)

Distributable earnings – undistributed ordinary income	$	38,428		$	9,546		$	16,716		$	47,527


	Franklin FTSE Switzerland ETF			Franklin FTSE Taiwan ETF			Franklin FTSE United Kingdom ETF
Cost of investments	$	2,425,898		$	14,350,221		$	28,958,385

Unrealized appreciation	$	150,259		$	939,229		$	858,697
Unrealized depreciation		(199,724	)		(453,783	)		(1,093,380	)

Net unrealized appreciation (depreciation)	$	(49,465	)	$	485,446		$	(234,683	)

Distributable earnings – undistributed ordinary income	$	18,303		$	9,580		$	356,019

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, financial futures transactions, passive foreign investment company shares and wash sales.

5. Investment Transactions

Purchases and sales of investments (excluding short term securities andin-kind transactions, if any) for the year ended March 31, 2019, were as follows:



	Franklin FTSE Asia ex Japan ETF		Franklin FTSE Australia ETF		Franklin FTSE Brazil ETF		Franklin FTSE Canada ETF
Purchases	$	5,136,937	$	512,002	$	10,071,252	$	285,007
Sales	$	1,133,591	$	328,785	$	25,153,467	$	270,722

	Franklin FTSE China ETF		Franklin FTSE Europe ETF		Franklin FTSE Europe Hedged ETF		Franklin FTSE France ETF
Purchases	$	16,874,922	$	4,923,827	$	8,147,444	$	142,669
Sales	$	2,470,683	$	5,319,577	$	7,708,139	$	140,776

	Franklin FTSE Germany ETF		Franklin FTSE Hong Kong ETF		Franklin FTSE India ETF		Franklin FTSE Italy ETF
Purchases	$	342,659	$	1,196,090	$	5,013,778	$	1,115,532
Sales	$	323,064	$	675,844	$	410,452	$	1,061,836



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5. Investment Transactions(continued)


	Franklin FTSE Japan ETF		Franklin FTSE Japan Hedged ETF		Franklin FTSE Latin America ETF		Franklin FTSE Mexico ETF
Purchases	$	11,577,198	$	8,610,824	$	1,932,018	$	373,815
Sales	$	9,923,660	$	7,829,519	$	52,882	$	367,445

	Franklin FTSE Russia ETF		Franklin FTSE Saudi Arabia ETF		Franklin FTSE South Africa ETF		Franklin FTSE South Korea ETF
Purchases	$	2,359,340	$	2,650,507	$	105,639	$	1,131,534
Sales	$	2,304,592	$	159,808	$	94,265	$	5,520,054

	Franklin FTSE Switzerland ETF		Franklin FTSE Taiwan ETF		Franklin FTSE United Kingdom ETF
Purchases	$	347,380	$	10,013,487	$	1,746,148
Sales	$	343,684	$	747,819	$	1,461,725

In-kind transactions associated with creation and redemptions for the year ended March 31, 2019, 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	$	5,369,893	$	12,168,327	$	—	$	4,787,033
Value of Securities Delivered^a	$	—	$	7,538,962	$	—	$	2,305,532

	Franklin FTSE China ETF		Franklin FTSE Europe ETF		Franklin FTSE Europe Hedged ETF		Franklin FTSE France ETF
Cost of Securities Received	$	—	$	—	$	—	$	—
Value of Securities Delivered^a	$	—	$	23,942,923	$	25,820,997	$	—

	Franklin FTSE Germany ETF		Franklin FTSE Hong Kong ETF		Franklin FTSE India ETF		Franklin FTSE Italy ETF
Cost of Securities Received	$	2,099,180	$	10,238,581	$	—	$	14,617,562
Value of Securities Delivered^a	$	—	$	—	$	—	$	7,108,197

	Franklin FTSE Japan ETF		Franklin FTSE Japan Hedged ETF		Franklin FTSE Latin America ETF		Franklin FTSE Mexico ETF
Cost of Securities Received	$	244,348,309	$	—	$	751,807	$	2,339,037
Value of Securities Delivered^a	$	28,897,424	$	26,909,044	$	—	$	—



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5. Investment Transactions (continued)


	Franklin FTSE Russia ETF		Franklin FTSE Saudi Arabia ETF		Franklin FTSE South Africa ETF		Franklin FTSE South Korea ETF
Cost of Securities Received	$	11,002,552	$	—	$	2,436,624	$	—
Value of Securities Delivered^a	$	2,239,283	$	—	$	—	$	—

	Franklin FTSE Switzerland ETF		Franklin FTSE Taiwan ETF		Franklin FTSE United Kingdom ETF
Cost of Securities Received	$	2,336,555	$	—	$	33,624,783
Value of Securities Delivered^a	$	2,165,511	$	—	$	8,170,288

^aRealized gains and losses from in-kind redemptions, as shown on the Statements of Operations, are not recognized by the Funds for tax purposes.

At March 31, 2019, in connection with securities lending transactions, certain or all Funds loaned investments and received cash collateral as follows:



	Franklin FTSE Japan ETF
Securities lending transactions^a:
Equity investments^b	$	117,035

^a The agreements can be terminated at any time.

^b The 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

The United States and other nations have imposed and could impose additional sanctions on certain issuers in Russia due to regional conflicts. These sanctions could result in the devaluation of Russia’s currency, a downgrade in Russian issuers’ credit ratings, or a decline in the value and liquidity of Russian stocks or other securities. Such sanctions could also adversely affect Russia’s economy. Certain or all Funds may be prohibited from investing in securities issued by companies subject to such sanctions. In addition, if the Fund holds the securities of an issuer that is subject to such sanctions, an immediate freeze of that issuer’s securities could result, impairing the ability of the Fund to buy, sell, receive or deliver those securities. There is also the risk that countermeasures could be taken by Russia’s government, which could involve the seizure of the Fund’s assets. These risks could affect the value of the Funds’ portfolio. While the Funds hold securities of certain issuers recently impacted by the sanctions, existing investments do not presently violate the applicable terms and conditions of the sanctions. The sanctions currently do not affect the Fund’s ability to sell these securities. At March 31, 2019, Franklin FTSE Russia ETF had 99.8% of its net assets invested in Russia. The remaining Funds in the Trust did not have significant investment in Russia.



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7. Other Derivative Information

At March 31, 2019, the Funds’ investments in derivative contracts are reflected in the Statements of Assets 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 Asia ex Japan ETF

Equity contracts	Variation margin on futures contracts	$	519	^a	Variation margin on futures contracts	$	—

Franklin FTSE Brazil ETF

Equity contracts	Variation margin on futures contracts	$	—		Variation margin on futures contracts	$	2,315	^a

Franklin FTSE Europe ETF

Equity contracts	Variation margin on futures contracts	$	5,956	^a	Variation margin on futures contracts	$	—

Franklin FTSE Europe Hedged ETF

Foreign exchange contracts	Unrealized appreciation on OTC forward exchange contracts	$	286,540		Unrealized depreciation on OTC forward exchange contracts	$	60,740

Equity contracts	Variation margin on futures contracts		907	^a	Variation margin on futures contracts		—


Totals		$	287,447			$	60,740

Franklin FTSE Hong Kong ETF

Equity contracts	Variation margin on futures contracts	$	—	^a	Variation margin on futures contracts	$	—

Franklin FTSE India ETF

Equity contracts	Variation margin on futures contracts	$	420	^a	Variation margin on futures contracts	$	—

Franklin FTSE Japan ETF

Equity contracts	Variation margin on futures contracts	$	—		Variation margin on futures contracts	$	5,783	^a

Franklin FTSE Japan Hedged ETF

Forward exchange contracts	Unrealized appreciation on OTC forward exchange contracts	$	120,173		Unrealized depreciation on OTC forward exchange contracts	$	101,132

Equity contracts	Variation margin on futures contracts		—		Variation margin on futures contracts		1,640	^a


Totals		$	120,173			$	102,772

Franklin FTSE Latin America ETF

Equity contracts	Variation margin on futures contracts	$	—		Variation margin on futures contracts	$	245	^a

Franklin FTSE South Korea ETF

Equity contracts	Variation margin on futures contracts	$	—		Variation margin on futures contracts	$	1,299	^a

Franklin FTSE United Kingdom ETF

Equity contracts	Variation margin on futures contracts	$	6,803	^a	Variation margin on futures contracts	$	—



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For the year ended March 31, 2019, 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 year			Statements of Operations Locations	Net Change in Unrealized Appreciation (Depreciation) for the year
Franklin FTSE Asia ex Japan ETF
	Net realized gain (loss) from:				Net change in unrealized appreciation (depreciation) on:

Equity contracts	Futures contracts	$	(6,078	)	Futures contracts	$	519

Foreign exchange contracts	Forward exchange contracts		(569	)	Forward exchange contracts		—

		$	(6,647	)		$	519


Franklin FTSE Brazil ETF
	Net realized gain (loss) from:				Net change in unrealized appreciation (depreciation) on:

Equity contracts	Futures contracts	$	28,211		Futures contracts	$	(2,315	)


Franklin FTSE China ETF
	Net realized gain (loss) from:				Net change in unrealized appreciation (depreciation) on:

Equity contracts	Futures contracts	$	(13,448	)	Futures contracts	$	—


Franklin FTSE Europe ETF
	Net realized gain (loss) from:				Net change in unrealized appreciation (depreciation) on:

Equity contracts	Futures contracts	$	12,388		Futures contracts	$	10,419


Franklin FTSE Europe Hedged ETF
	Net realized gain (loss) from:				Net change in unrealized appreciation (depreciation) on:

Foreign exchange contracts	Forward exchange contracts	$	2,895,665		Forward exchange contracts	$	410,769

Equity contracts	Futures contracts		(27,735	)	Futures contracts		2,820

Totals		$	2,867,930			$	413,589

Franklin FTSE Hong Kong ETF
	Net realized gain (loss) from:				Net change in unrealized appreciation (depreciation) on:

Equity contracts	Futures contracts	$	(5,824	)	Futures contracts	$	—


Franklin FTSE India ETF
	Net realized gain (loss) from:				Net change in unrealized appreciation (depreciation) on:

Equity contracts	Futures contracts	$	638		Futures contracts	$	420


Franklin FTSE Italy ETF
	Net realized gain (loss) from:				Net change in unrealized appreciation (depreciation) on:

Equity contracts	Futures contracts	$	808		Futures contracts	$	—



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7. Other Derivative Information(continued)



Derivative Contracts Not Accounted for as Hedging Instruments	Statements of Operations Locations	Net Realized Gain (Loss) for the year			Statements of Operations Locations	Net Change in Unrealized Appreciation (Depreciation) for the year
Franklin FTSE Japan ETF
	Net realized gain (loss) from:				Net change in unrealized appreciation (depreciation) on:

Equity contracts	Futures contracts	$	(191,574	)	Futures contracts	$	(13,514	)


Franklin FTSE Japan Hedged ETF
	Net realized gain (loss) from:				Net change in unrealized appreciation (depreciation) on:

Foreign exchange contracts	Forward exchange contracts	$	2,679,079		Forward exchange contracts	$	73,751

Equity contracts	Futures contracts		(45,583	)	Futures contracts		(6,158	)

Totals		$	2,633,496			$	67,593


Franklin FTSE Latin America ETF
	Net realized gain (loss) from:				Net change in unrealized appreciation (depreciation) on:

Equity contracts	Futures contracts	$	(151	)	Futures contracts	$	(245	)


Franklin FTSE South Korea ETF
	Net realized gain (loss) from:				Net change in unrealized appreciation (depreciation) on:

Foreign exchange contracts	Forward exchange contracts	$	(3,228	)	Forward exchange contracts	$	—

Equity contracts	Futures contracts		14,084		Futures contracts		(1,359	)

Totals		$	10,856			$	(1,359	)


Franklin FTSE Taiwan ETF
	Net realized gain (loss) from:				Net change in unrealized appreciation (depreciation) on:

Equity contracts	Futures contracts	$	4,266		Futures contracts	$	—


Franklin FTSE United Kingdom ETF
	Net realized gain (loss) from:				Net change in unrealized appreciation (depreciation) on:

Equity contracts	Futures contracts	$	4,035		Futures contracts	$	6,803

For the year ended March 31, 2019, 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 Brazil ETF		Franklin FTSE China ETF		Franklin FTSE Europe ETF
Equity contracts	$	56,508	$	111,343	$	61,450	$	653,646
Forward exchange contracts	$	26,537	$	—	$	—	$	—



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	Franklin FTSE Europe Hedged ETF		Franklin FTSE Hong Kong ETF		Franklin FTSE India ETF		Franklin FTSE Italy ETF
Equity contracts	$	282,709	$	22,095	$	15,336	$	5,503
Forward exchange contracts	$	88,623,531	$	—	$	—	$	—

	Franklin FTSE Japan ETF		Franklin FTSE Japan Hedged ETF		Franklin FTSE Latin America		Franklin FTSE South Korea ETF
Equity contracts	$	1,284,658	$	459,681	$	5,868	$	107,339
Forward exchange contracts	$	—	$	121,531,407	$	—	$	25,508

	Franklin FTSE Taiwan ETF		Franklin FTSE United Kingdom ETF
Equity contracts	$	13,813	$	133,747

At March 31, 2019, 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

	Assets^a		Liabilities^a
Franklin FTSE Europe Hedged ETF
Forward exchange contracts	$	286,540	$	60,740


Franklin FTSE Japan Hedged ETF
Forward exchange contracts	$	120,173	$	101,132

^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 March 31, 2019, 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 Received		Cash Collateral Received		Net Amount (Not less than zero)
Franklin FTSE Europe Hedged ETF
Counterparty
BOFA	$	178,504	$	(47,483	)	$	—	$	—	$	131,021
HSBK		48,208		(5,650	)		—		—		42,558
MSCO		12,089		(2,362	)		—		—		9,727
UBSW		47,739		(5,245	)		—		—		42,494

Total	$	286,540	$	(60,740	)	$	—	$	—	$	225,800



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7. Other Derivative Information(continued)



			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 Received		Cash Collateral Received		Net Amount (Not less than zero)
Franklin FTSE Japan Hedged ETF
Counterparty
BOFA	$	35,308	$	(29,312	)	$	—	$	—	$	5,996
HSBK		35,258		(29,716	)		—		—		5,542
MSCO		14,291		(12,275	)		—		—		2,016
UBSW		35,316		(29,829	)		—		—		5,487

Total	$	120,173	$	(101,132	)	$	—	$	—	$	19,041

At March 31, 2019, 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 Pledged		Cash Collateral Pledged		Net Amount (Not less than zero)
Franklin FTSE Europe Hedged ETF
Counterparty
BOFA	$	47,483	$	(47,483	)	$	—	$	—	$	—
HSBK		5,650		(5,650	)		—		—		—
MSCO		2,362		(2,362	)		—		—		—
UBSW		5,245		(5,245	)		—		—		—

Total	$	60,740	$	(60,740	)	$	—	$	—	$	—


			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 Pledged		Cash Collateral Pledged		Net Amount (Not less than zero)
Franklin FTSE Japan Hedged ETF
Counterparty
BOFA	$	29,312	$	(29,312	)	$	—	$	—	$	—
HSBK		29,716		(29,716	)		—		—		—
MSCO		12,275		(12,275	)		—		—		—
UBSW		29,829		(29,829	)		—		—		—

Total	$	101,132	$	(101,132	)	$	—	$	—	$	—

See Note 1(c) regarding derivative financial instruments.



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NOTES TO FINANCIAL STATEMENTS

8. Fair Value Measurements

•

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 March 31, 2019, 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 Investments:^b
China	$	6,011,045	$	150	$	—	$	6,011,195
India		2,032,607		1,550		—		2,034,157
Indonesia		401,411		—		7,837		409,248
South Korea		2,505,478		140		226		2,505,844
Other Equity Investments		6,464,988		—^c		—		6,464,988

Total Investments in Securities	$	17,415,529	$	1,840	$	8,063	$	17,425,432

Other Financial Instruments:
Futures Contracts	$	519	$	—	$	—	$	519


Franklin FTSE Australia ETF

Assets:
Investments in Securities:^a
Equity Investments^b	$	7,349,454	$	—	$	—	$	7,349,454


Franklin FTSE Brazil ETF

Assets:
Investments in Securities:^a
Equity Investments^b	$	20,457,931	$	—	$	—	$	20,457,931


Liabilities:
Other Financial Instruments:
Futures Contracts	$	2,315	$	—	$	—	$	2,315


Franklin FTSE Canada ETF

Assets:
Investments in Securities:^a
Equity Investments^b	$	4,811,827	$	—	$	—	$	4,811,827



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NOTES TO FINANCIAL STATEMENTS

8. Fair Value Measurements(continued)



	Level 1		Level 2		Level 3		Total

Franklin FTSE China ETF

Assets:
Investments in Securities:^a
Equity Investments:^b
China	$	42,627,119	$	957	$	—	$	42,628,076
Other Equity Investments		567,645		—		—		567,645

Total Investments in Securities	$	43,194,764	$	957	$	—	$	43,195,721


Franklin FTSE Europe ETF

Assets:
Investments in Securities:^a
Equity Investments^b	$	73,755,159	$	—	$	—	$	73,755,159

Other Financial Instruments:
Futures Contracts	$	5,956	$	—	$	—	$	5,956


Franklin FTSE Europe Hedged ETF

Assets:
Investments in Securities:^a
Equity Investments^b	$	4,426,945	$	—	$	—	$	4,426,945
Short-Term Investments		38		—		—		38

Total Investments in Securities	$	4,426,983	$	—	$	—	$	4,426,983

Other Financial Instruments:
Forward Exchange Contracts	$	—	$	286,540	$	—	$	286,540


Liabilities:
Other Financial Instruments:
Futures Contracts	$	907	$	—	$	—	$	907
Forward Exchange Contracts		—		60,740		—		60,740

Total Other Financial Instruments	$	907	$	60,740	$	—	$	61,647


Franklin FTSE France ETF

Assets:
Investments in Securities:^a
Equity Investments^b	$	2,381,522	$	—	$	—	$	2,381,522


Franklin FTSE Germany ETF

Assets:
Investments in Securities:^a
Equity Investments^b	$	4,127,388	$	—	$	—	$	4,127,388


Franklin FTSE Hong Kong ETF

Assets:
Investments in Securities:^a
Equity Investments^b	$	20,022,827	$	—	$	—	$	20,022,827

Other Financial Instruments:
Futures Contracts	$	—	$	—	$	—	$	—


Franklin FTSE India ETF

Assets:
Investments in Securities:^a
Equity Investments:^b
India	$	7,004,956	$	6,011	$	—	$	7,010,967

Other Financial Instruments:
Futures Contracts	$	420	$	—	$	—	$	420



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NOTES TO FINANCIAL STATEMENTS

8. Fair Value Measurements(continued)



	Level 1		Level 2		Level 3		Total

Franklin FTSE Italy ETF

Assets:
Investments in Securities:^a
Equity Investments^b	$	10,395,508	$	—	$	—	$	10,395,508


Franklin FTSE Japan ETF

Assets:
Investments in Securities:^a
Equity Investments^b	$	286,602,714	$	—	$	—	$	286,602,714
Short-Term Investments		231,376		—		—		231,376

Total Investments in Securities	$	286,834,090	$	—	$	—	$	286,834,090


Liabilities:
Other Financial Instruments:
Futures Contracts	$	5,783	$	—	$	—	$	5,783


Franklin FTSE Japan Hedged ETF

Assets:
Investments in Securities:^a
Equity Investments^b	$	13,586,269	$	—	$	—	$	13,586,269
Short-Term Investments		28,014		—		—		28,014

Total Investments in Securities	$	13,614,283	$	—	$	—	$	13,614,283

Other Financial Instruments:
Forward Exchange Contracts	$	—	$	120,173	$	—	$	120,173


Liabilities:
Other Financial Instruments:
Forward Exchange Contracts	$	—	$	101,132	$	—	$	101,132
Futures Contracts		1,640		—		—		1,640

Total Other Financial Instruments	$	1,640	$	101,132	$	—	$	102,772


Franklin FTSE Latin America ETF

Assets:
Investments in Securities:^a
Equity Investments^b	$	2,627,550	$	—	$	—	$	2,627,550


Liabilities:
Other Financial Instruments:
Futures Contracts	$	245	$	—	$	—	$	245


Franklin FTSE Mexico ETF

Assets:
Investments in Securities:^a
Equity Investments^b	$	4,414,990	$	—	$	—	$	4,414,990


Franklin FTSE Russia ETF

Assets:
Investments in Securities:^a
Equity Investments^b	$	11,664,373	$	—	$	—	$	11,664,373


Franklin FTSE Saudi Arabia ETF

Assets:
Investments in Securities:^a
Equity Investments^b	$	2,787,508	$	—	$	—	$	2,787,508



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NOTES TO FINANCIAL STATEMENTS



	Level 1		Level 2		Level 3		Total

Franklin FTSE South Africa ETF

Assets:
Investments in Securities:^a
Equity Investments^b	$	2,652,524	$	—	$	—	$	2,652,524


Franklin FTSE South Korea ETF

Assets:
Investments in Securities:^a
Equity Investments:^b
South Korea	$	16,640,923	$	1,124	$	1,906	$	16,643,953


Liabilities:
Other Financial Instruments:
Futures Contracts	$	1,299	$	—	$	—	$	1,299


Franklin FTSE Switzerland ETF

Assets:
Investments in Securities:^a
Equity Investments^b	$	2,376,433	$	—	$	—	$	2,376,433


Franklin FTSE Taiwan ETF

Assets:
Investments in Securities:^a
Equity Investments^b	$	14,835,667	$	—	$	—	$	14,835,667


Franklin FTSE United Kingdom ETF

Assets:
Investments in Securities:^a
Equity Investments^b	$	28,723,702	$	—	$	—	$	28,723,702

Other Financial Instruments:
Futures Contracts	$	6,803	$	—	$	—	$	6,803

^aFor detailed categories, see the accompanying Statement of Investments.

^bIncludes common and convertible preferred stocks, warrants, as well as other equity investments.

^cIncludes securities determined to have no value at March 31, 2019.

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
GDR		Global Depositary Receipt
IDR		International Depositary Receipt
NVDR		Non-Voting Depositary Receipt
REIT		Real Estate Investment Trust

Counterparty
BOFA		Bank of America Corp.
HSBK		HSBC Bank PLC
MSCO		Morgan Stanley
UBSW		UBS AG



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Report of Independent Registered Public Accounting Firm

To the Board of Trustees of Franklin Templeton ETF Trust and Shareholders of 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 Europe Hedged ETF, Franklin FTSE France ETF, Franklin FTSE Germany ETF, Franklin FTSE Hong Kong ETF, Franklin FTSE India ETF, Franklin FTSE Italy ETF, Franklin FTSE Japan ETF, Franklin FTSE Japan Hedged ETF, Franklin FTSE Latin America ETF, Franklin FTSE Mexico ETF, Franklin FTSE Russia ETF, Franklin FTSE Saudi Arabia ETF, Franklin FTSE South Africa ETF, Franklin FTSE South Korea ETF, Franklin FTSE Switzerland ETF, Franklin FTSE Taiwan ETF, and Franklin FTSE United Kingdom ETF

Opinions on the Financial Statements

We have audited the accompanying statements of assets and liabilities, including the statements of investments, of 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 Europe Hedged ETF, Franklin FTSE France ETF, Franklin FTSE Germany ETF, Franklin FTSE Hong Kong ETF, Franklin FTSE India ETF, Franklin FTSE Italy ETF, Franklin FTSE Japan ETF, Franklin FTSE Japan Hedged ETF, Franklin FTSE Latin America ETF, Franklin FTSE Mexico ETF, Franklin FTSE Russia ETF, Franklin FTSE Saudi Arabia ETF, Franklin FTSE South Africa ETF, Franklin FTSE South Korea ETF, Franklin FTSE Switzerland ETF, Franklin FTSE Taiwan ETF, and Franklin FTSE United Kingdom ETF(the “Funds”) as ofMarch 31, 2019, the related statementsof operations, the statements of changes in net assets, including the related notes, and each of the financial highlights for each of the periods listed in the table below (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of March 31, 2019, and the results of each of their operations, changes in each of their net assets, and each of the financial highlights for each of the periods listed in the table below in conformity with accounting principles generally accepted in the United States of America.



Franklin Templeton ETF Trust	Statements of Operations	Statement of changes in net assets, and financial highlights
Franklin FTSE Australia ETF Franklin FTSE Canada ETF Franklin FTSE China ETF Franklin FTSE Europe ETF Franklin FTSE Europe Hedged ETF Franklin FTSE France ETF Franklin FTSE Germany ETF Franklin FTSE Hong Kong ETF Franklin FTSE Italy ETF Franklin FTSE Japan ETF Franklin FTSE Japan Hedged ETF Franklin FTSE South Korea ETF Franklin FTSE Taiwan ETF Franklin FTSE United Kingdom ETF	For the year ended March 31, 2019	For the year ended March 31, 2019 and for the period November 2, 2017 (commencement of operations) through March 31, 2018
Franklin FTSE Brazil ETF Franklin FTSE Mexico ETF	For the year ended March 31, 2019	For the year ended March 31, 2019 and for the period November 3, 2017 (commencement of operations) through March 31, 2018
Franklin FTSE Asia ex Japan ETF Franklin FTSE India ETF Franklin FTSE Russia ETF Franklin FTSE Switzerland ETF	For the year ended March 31, 2019	For the year ended March 31, 2019 and for the period February 6, 2018 (commencement of operations) through March 31, 2018
Franklin FTSE Latin America ETF Franklin FTSE Saudi Arabia ETF	For the period October 9, 2018 (commencement of operations) through March 31, 2019	For the period October 9, 2018 (commencement of operations) through March 31, 2019
Franklin FTSE South Africa ETF	For the period October 10, 2018 (commencement of operations) through March 31, 2019	For the period October 10, 2018 (commencement of operations) through March 31, 2019



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Basis for Opinions

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of March 31, 2019 by correspondence with the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinions.

PricewaterhouseCoopers LLP

San Francisco, California

May 20, 2019

We have served as the auditor of one or more investment companies in the Franklin Templeton funds since 1948.



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Tax information (unaudited)



Franklin FTSE Europe Hedged ETF		Franklin FTSE Japan Hedged ETF		Franklin FTSE United Kingdom ETF
	$2,301,898		$2,246,889		$3,882

Franklin
FTSE
Europe
Hedged
ETF

$1,160,247



Franklin FTSE Asia ex Japan ETF		Franklin FTSE Australia ETF		Franklin FTSE Brazil ETF		Franklin FTSE Canada ETF
	$214,615		$352,943		$—		$126,115


Franklin FTSE China ETF		Franklin FTSE Europe ETF		Franklin FTSE Europe Hedged ETF		Franklin FTSE France ETF
	$511,138		$3,484,267		$1,128,636		$85,246


Franklin FTSE Germany ETF		Franklin FTSE Hong Kong ETF		Franklin FTSE India ETF		Franklin FTSE Italy ETF
	$87,229		$2,234		$69,772		$122,385


Franklin FTSE Japan ETF		Franklin FTSE Japan Hedged ETF		Franklin FTSE Latin America ETF		Franklin FTSE Mexico ETF
	$5,478,443		$698,719		$6,381		$90,283


Franklin FTSE Russia ETF		Franklin FTSE Saudi Arabia ETF		Franklin FTSE South Africa ETF		Franklin FTSE South Korea ETF
	$381,802		$—		$27,229		$448,117



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Franklin FTSE Switzerland ETF		Franklin FTSE Taiwan ETF		Franklin FTSE United Kingdom ETF
	$69,042		$—		$598,311

At March 31, 2019, more than 50% of the Funds’ total assets were invested in securities of foreign issuers. In most instances, foreign taxes were withheld from income paid to the Funds on these investments. The following Funds elect to treat foreign taxes paid as allowed under Section 853 of the Code. This election will allow shareholders of record as of the June 2019 distribution, to treat their proportionate share of foreign taxes paid by the Funds as having been paid directly by them. The shareholder shall consider these amounts as foreign taxes paid in the tax year in which they received the Fund distribution.

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 Europe Hedged ETF

Franklin FTSE France ETF

Franklin FTSE Germany ETF

Franklin FTSE Italy ETF

Franklin FTSE Japan ETF

Franklin FTSE Japan Hedged ETF

Franklin FTSE Latin America ETF

Franklin FTSE Mexico ETF

Franklin FTSE Russia ETF

Franklin FTSE Saudi Arabia ETF

Franklin FTSE South Africa ETF

Franklin FTSE South Korea ETF

Franklin FTSE Switzerland ETF

Franklin FTSE Taiwan ETF

Franklin FTSE United Kingdom ETF



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Board Members and Officers

Independent Board Members



Name, Year of Birth and Address	Position	Length of Time Served	Number of Portfolios in Fund Complex Overseen by Board Member*	Other Directorships Held During at Least the Past 5 Years

Rohit Bhagat (1964) One Franklin Parkway San Mateo, CA 94403-1906	Lead Independent Trustee	Since 2016	39	Zentific Investment Management (hedge fund) (2015-present), Axis Bank (2013-present), AssetMark Financial Holdings, Inc. (investment solutions) (2018-present) and CapFloat Financial Services Pvt., Ltd.(non-banking finance company) (2018-present).

Principal Occupation During at Least the Past 5 Years:
Managing Member, Mukt Capital, LLC (private investment firm) (2014-present); Advisor, Optimal Asset Management (investment technology and advisory services company) (2015-present); andformerly, Chairman, Asia Pacific, BlackRock (2009-2012); Global Chief Operating Officer, Barclays Global Investors (investment management) (2005-2009); and Senior Partner, The Boston Consulting Group (management consulting) (1992-2005).

Anantha Pradeep (1963) One Franklin Parkway San Mateo, CA 94403-1906	Trustee	Since 2016	39	None

Principal Occupation During at Least the Past 5 Years:
Chief Executive Officer, Smilable, Inc. (technology company) (2014-present); Chief Executive Officer, MachineVantage (technology company) (2018-present); Founder and Managing Partner, Consult Meridian, LLC (consulting company) (2009-present); andformerly, Founder, BoardVantage (board portal solutions provider delivering paperless process for boards and leadership) (2000-2002).

Interested Board Members and Officers



Name, Year of Birth and Address	Position	Length of Time Served	Number of Portfolios in Fund Complex Overseen by Board Member*	Other Directorships Held During at Least the Past 5 Years

**Jennifer M. Johnson (1964) One Franklin Parkway San Mateo, CA 94403-1906	Chairperson of the Board and Trustee	Since 2016	46	None

Principal Occupation During at Least the Past 5 Years:
President and Chief Operating Officer, Franklin Resources, Inc.; officer and/or director or trustee, as the case may be, of some of the other subsidiaries of Franklin Resources, Inc. and of four of the investment companies in Franklin Templeton; andformerly, Chief Operating Officer and Executive Vice President, Franklin Resources, Inc. (1994-2015); Executive Vice President of Operations and Technology, Franklin Resources, Inc. (2005-2010); and Senior Vice President, Franklin Resources, Inc. (2003-2005).

Alison E. Baur (1964) One Franklin Parkway San Mateo, CA 94403-1906	Vice President	Since 2016	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Deputy General Counsel, Franklin Templeton; and officer of some of the other subsidiaries of Franklin Resources, Inc. and of 44 of the investment companies in Franklin Templeton.



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Interested Board Members and Officers(continued)



Name, Year of Birth and Address	Position	Length of Time Served	Number of Portfolios in Fund Complex Overseen by Board Member*	Other Directorships Held During at Least the Past 5 Years

Gaston Gardey (1967) One Franklin Parkway San Mateo, CA 94403-1906	Treasurer, Chief Financial Officer and Chief Accounting Officer	Since 2015	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Treasurer, U.S. Fund Administration & Reporting and officer of 28 of the investment companies in Franklin Templeton.

Aliya S. Gordon (1973) One Franklin Parkway San Mateo, CA 94403-1906	Vice President	Since 2016	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Senior Associate General Counsel and officer of 44 of the investment companies in Franklin Templeton.

Steven J. Gray (1955) One Franklin Parkway San Mateo, CA 94403-1906	Vice President	Since 2016	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Senior Associate General Counsel, Franklin Templeton; Vice President, Franklin Templeton Distributors, Inc. and FASA, LLC; and officer of 44 of the investment companies in Franklin Templeton.

Matthew T. Hinkle (1971) One Franklin Parkway San Mateo, CA 94403-1906	Chief Executive Officer – Finance and Administration	Since 2017	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Senior Vice President, Franklin Templeton Services, LLC; officer of 44 of the investment companies in Franklin Templeton; andformerly, Vice President, Global Tax (2012-April 2017) and Treasurer/Assistant Treasurer, Franklin Templeton (2009-2017).

Robert Lim (1948) One Franklin Parkway San Mateo, CA 94403-1906	VicePresident-AML Compliance	Since 2016	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Vice President, Franklin Templeton Companies, LLC; Chief Compliance Officer, Franklin Templeton Distributors, Inc. and Franklin Templeton Investor Services, LLC; and officer of 44 of the investment companies in Franklin Templeton.

Kimberly H. Novotny (1972) 300 S.E. 2nd Street Fort Lauderdale, FL 33301-1923	Vice President	Since 2016	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Associate General Counsel, Franklin Templeton; Vice President and Corporate Secretary, Fiduciary Trust International of the South; Vice President, Templeton Investment Counsel, LLC; Assistant Secretary, Franklin Resources, Inc.; and officer of 44 of the investment companies in Franklin Templeton.



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Interested Board Members and Officers(continued)



Name, Year of Birth and Address	Position	Length of Time Served	Number of Portfolios in Fund Complex Overseen by Board Member*	Other Directorships Held During at Least the Past 5 Years

Patrick O’Connor (1967) One Franklin Parkway San Mateo, CA 94403-1906	President and Chief Executive Officer– Investment Management	Since 2016	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
President and Chief Investment Officer, Franklin Advisory Services, LLC; Senior Vice President, Franklin Advisers, Inc.; officer of two of the investment companies in Franklin Templeton; andformerly, Managing Director, Head of iShares Product Canada, BlackRock (1998-2014).

Robert C. Rosselot (1960) 300 S.E. 2nd Street Fort Lauderdale, FL 33301-1923	Chief Compliance Officer	Since 2016	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Director, Global Compliance, Franklin Templeton; Vice President, Franklin Templeton Companies, LLC; officer of 44 of the investment companies in Franklin Templeton; andformerly, Senior Associate General Counsel, Franklin Templeton (2007-2013); and Secretary and Vice President, Templeton Group of Funds (2004-2013).

Navid J. Tofigh (1972) One Franklin Parkway San Mateo, CA 94403-1906	Vice President and Secretary	Since 2015	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Associate General Counsel and officer of 44 of the investment companies in Franklin Templeton.

Craig S. Tyle (1960) One Franklin Parkway San Mateo, CA 94403-1906	Vice President	Since 2016	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
General Counsel, Executive Vice President and Secretary, Franklin Resources, Inc.; and officer of some of the other subsidiaries of Franklin Resources, Inc. and of 44 of the investment companies in Franklin Templeton.

Lori A. Weber (1964) 300 S.E. 2nd Street Fort Lauderdale, FL 33301-1923	Vice President	Since 2016	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Senior Associate General Counsel, Franklin Templeton; Assistant Secretary, Franklin Resources, Inc.; Vice President and Secretary, Templeton Investment Counsel, LLC; and officer of 44 of the investment companies in Franklin Templeton.

Note 1: Effective May 1, 2018, Susan R. Thompson ceased to be a trustee of the Trust.

Note 2: Officer information is current as of the date of this report. It is possible that after this date, information about officers may change.



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Shareholder Information

Board Approval of Investment Management Agreements

FRANKLIN TEMPLETON ETF TRUST

Franklin FTSE Saudi Arabia ETF

Franklin FTSE South Africa ETF

Franklin FTSE Latin America ETF

(each a Fund)

At anin-person meeting held on July 20, 2018 (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 each Fund (each a Management Agreement) for an initialtwo-year period. The Independent Trustees received advice from and met separately with Independent Trustee counsel in considering whether to approve 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.

In considering the approval 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 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 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 each Fund grows. The Board also reviewed and considered the form of Management Agreement and the terms of each Management Agreement which were explained at the Meeting, noting that, with the exception of a unified fee structure, the form of Management Agreement was substantially the same as the standard forms of investment management agreement (that include administration services) for the other funds in the Franklin Templeton family of funds, including the other series of the Trust.

In approving each 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 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 to be provided by the Manager and its affiliates to each Fund and its shareholders. This information included, among other things, the Funds’ proposed investment goals and the Manager’s proposed investment strategies and ability to implement such investment strategies; the qualifications, background and experience of the investment personnel that will be responsible for theday-to-day portfolio management of each Fund; the Manager’s experience as the manager of other funds and accounts, including other series of the Trust and other funds in the Franklin Templeton 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 designed to prevent violations of the Federal Securities Laws (as defined in Rule38a-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 each Fund and its shareholders.

FUND PERFORMANCE.The Board noted that, as the Funds had not yet commenced investment operations, there was no investment performance for the Funds. The Board considered the proposed performance benchmarks for the Funds and how such benchmarks would be utilized to measure performance of the Manager.

COMPARATIVE FEES AND EXPENSES.The Board reviewed and considered information regarding the proposed investment management fee to be charged to each Fund by the Manager. In particular, the Board considered information relating to proposed fees and expenses for the Funds, including comparative data provided by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent organization, which compared the Funds’ proposed fees and expenses with those of other funds deemed comparable to the Funds as selected by Broadridge (“Comparable Funds”). The Board noted that for each Fund the contractual management fee and net expenses would be below the median of the fee and expenses of the Comparable Funds. In doing so, the Board noted the small size of the Expense Group for each Fund. The Board further considered that pursuant to each Fund’s



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FRANKLIN TEMPLETON ETF TRUST

SHAREHOLDER INFORMATION

Management Agreement, the Manager will pay all of the ordinary operating expenses of the Fund, except for (i) the Fund’s investment management fee, (ii) payments under the Fund’s Rule12b-1 plan (if any), (iii) brokerage expenses, (iv) taxes, (v) interest, (vi) litigation expenses, and (vii) othernon-routine or extraordinary expenses (such arrangement, the Unified Fee). The Board concluded that the proposed investment management fee for each Fund is reasonable.

The Board then noted that the Manager (and its affiliates) could not report any financial results from their relationship with the Funds because the Funds had not yet commenced investment operations, and thus, the Board could not evaluate the Manager’s (or its affiliates’) profitability with respect to the Funds.

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 the Fund’s investment 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 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 Franklin Templeton family of funds as a whole.

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 each Fund for an initialtwo-year period.

Proxy Voting Policies and Procedures

Group. Copies of the Trust’s proxy voting records are also made available online at franklintempleton.com and posted on the U.S. Securities and Exchange Commission’s website at sec.gov and reflect the most recent12-month period ended June 30.

Quarterly Statement of Investments

The Trust files a complete statement of investments with the U.S. Securities and Exchange Commission for the first and third quarters for each fiscal year as an exhibit to its report onForm N-PORT. Shareholders may view the filed FormN-PORT by visiting the Commission’s website at sec.gov. The filed form may also be viewed and copied at the Commission’s Public Reference Room in Washington, DC. Information regarding the operations of the Public Reference Room may be obtained by calling(800) SEC-0330.

Premium/Discount Information



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To help ensure we provide you with quality service, all calls to and from our service areas are monitored and/or recorded.

ANNUAL REPORT

FRANKLIN TEMPLETON

ETF TRUST

March 31, 2019

LOGO


Franklin Liberty High Yield Corporate ETF		Franklin Liberty Senior Loan ETF
Franklin Liberty International Aggregate Bond ETF

Franklin Templeton



Contents

Annual Report

Economic and Market Overview			2
Franklin Liberty High Yield Corporate ETF			3
Franklin Liberty International Aggregate Bond ETF			10
Franklin Liberty Senior Loan ETF			16
Financial Highlights and Statements of Investments			23
Financial Statements			35
Notes to Financial Statements			38
Report of Independent Registered Public Accounting Firm			46
Tax Information			47
Board Members and Officers			48
Shareholder Information			51

Visitwww.franklintempleton.com/investor/products/etf/ for fund

updates and documents.


Not FDIC Insured		\|		May Lose Value		\|		No Bank Guarantee



franklintempleton.com	Not part of the annual report	1

ANNUAL REPORT

Economic and Market Overview

The U.S. economy grew during the period since the Funds’ inception on May 30, 2018, through March 31, 2019. The economy expanded at a faster rate in 2019’s first quarter after moderating in the previous two quarters. Growth in consumer spending, business investment, exports, government spending and inventory investment was partly offset by a decrease in housing investment. The manufacturing and services sectors expanded during the period. Although the unemployment rate varied, it began and ended the period at 3.8%.¹ The annual inflation rate, as measured by the Consumer Price Index, decreased from 2.8% in May 2018 to 1.9% at period-end.¹

The U.S. Federal Reserve (Fed) raised its target range for the federal funds rate by 0.25% three times during the period, to 2.25%–2.50%, and continued reducing its balance sheet as a part of its plan to normalize monetary policy. The Fed also lowered its forecasts for economic growth in 2019 and 2020. Furthermore, the Fed mentioned it would end its balance sheet normalization by the end of September 2019.

The 10-year Treasury yield, which moves inversely to its price, decreased during the period. The yield rose to multi-year highs several times in 2018 amid investor concerns about higher inflation and the Fed’s interest-rate path. Expectations that other central banks might scale back monetary stimulus, several better-than-expected U.S. economic reports and optimism surrounding trade talks between the U.S. and China also pushed the yield higher. However, some factors weighed on the Treasury yield at certain points during the period, including concerns about political turmoil in Italy, political uncertainties in the U.S., tensions between the U.S. and North Korea, U.S. trade disputes with China and other trading partners, slower domestic and global economic growth, and the Fed’s indications of a cautious approach to its

monetary policy decisions. Overall, the 10-year Treasury yield declined from 2.83% at the beginning of the period to 2.41% at period-end.

International bonds outside of the U.S. generally registered losses during the first part of the review period, before recovering in the first quarter of 2019. The initial weakness in bond markets was mainly driven by the robust performance of the U.S. economy, which led the Fed to raise interest rates four times in 2018 and market participants to anticipate further policy tightening in 2019. In contrast, the rest of the global economy faced headwinds, including investor concerns about U.S.-China trade tensions and slowing growth in the eurozone.

In the first quarter of calendar 2019, the Fed reacted to weaker global growth and moved to a more dovish stance, while in the eurozone, the European Central Bank cut its growth assumptions—both central banks effectively ruled out interest rate rises in 2019. U.S.-China trade talks continued, but the two nations made only slow progress and failure could result in further U.S. tariffs on Chinese goods.

The Fed’s weaker economic outlook led to the flattening of yield curves, raising the appeal of government bonds. However, with investors still expecting growth in 2019, fixed income assets perceived as risky generally outperformed sovereign debt.

1. Source: Bureau of Labor Statistics



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Franklin Liberty High Yield Corporate ETF

This annual report for Franklin Liberty High Yield Corporate ETF covers the period since the Fund’s inception on May 30, 2018, through March 31, 2019.

Your Fund’s Goal and Main Investments

The Fund seeks a high level of current income with a secondary goal of seeking capital appreciation to the extent it is possible and consistent with the Fund’s principal goal. The Fund invests at least 80% of its net assets in high yield corporate debt securities and investments that provide exposure to high yield corporate debt securities, including fixed or floating rate corporate loans and corporate debt securities.

Performance Overview

For the period since inception on May 30, 2018, through March 31, 2019, the Fund posted cumulative total returns of +7.40% based on market price and +7.07% based on net asset value (NAV).¹ In comparison, the ICE BofAML U.S. High Yield Constrained Index posted a +5.34% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 6.

Investment Strategy

The Fund may invest up to 100% of its total assets in high yield debt securities. The Fund may buy both rated and unrated debt securities, including securities rated below B by Moody’s or Standard & Poor’s^® (or deemed comparable by the Fund’s investment manager). The Fund may invest in fixed or floating rate corporate loans and corporate debt securities. The Fund may also invest in defaulted debt securities. The Fund may invest in debt securities of any maturity or duration.

The Fund may invest in debt securities of U.S. and foreign issuers, including those in developing or emerging markets.


Top 10 Sectors/Industries

3/31/19

	% of Total Net Assets
Materials		16.8%
Energy		12.7%
Media & Entertainment		9.9%
Capital Goods		9.8%
Health Care Equipment & Services		8.9%
Consumer Services		8.0%
Pharmaceuticals, Biotechnology & Life Sciences		5.0%
Real Estate		3.0%
Technology Hardware & Equipment		3.0%
Telecommunication Services		3.0%

The Fund may enter into certain derivative transactions, principally currency and cross currency forwards; and swap agreements, including interest rate and credit default swaps (including credit default index swaps). The use of these derivative transactions may allow the Fund to obtain net long or short exposures to select currencies, interest rates, countries, durations or credit risks.

We are research driven, fundamental investors who rely on our team of analysts to providein-depth industry expertise and use qualitative and quantitative analysis to evaluate companies. Asbottom-up investors, we focus primarily on individual securities but consider sectors when choosing investments. In selecting securities, we do not rely principally on the ratings assigned by rating agencies, but perform our own independent investment analysis to evaluate the creditworthiness of the issuer. We consider a variety of factors, including the issuer’s experience and managerial strength, its sensitivity to economic conditions, and its current and prospective financial condition.

What is a currency forward contract?

A currency forward contract, or a currency forward, is an agreement between the Fund and a counterparty to buy or sell a foreign currency in exchange for another currency at a specific exchange rate on a future date.

1. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (6/1/18), the NAV of the Fund is used as a proxy for the market price to calculate market returns.

2. Source: FactSet.

See www.franklintempletondatasources.com for additional data provider information.

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Statement of Investments (SOI). The SOI begins on page 24.



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FRANKLIN LIBERTY HIGH YIELD CORPORATE ETF


Portfolio Composition

Based on Total Net Assets as of 3/31/19

LOGO

What is a credit default swap?

A credit default swap, or CDS, is an agreement between two parties whereby the buyer receives credit protection from the seller. The buyer makes periodic payments over the term of the agreement in return for a payment by the seller in the event of a default or other credit event.

Manager’s Discussion

High-yield corporate bonds experienced increased volatility during the period under review, highlighted by a sharp downturn in the fourth quarter of 2018 as global growth worries, simmering trade tensions and slumping commodity prices overwhelmed financial markets and left few areas immune to the sell-off. During the final months of 2018, the Fed’s move away from accommodative monetary policies created uncertainty over how aggressive it might be in hiking interest rates, representing a tipping point for investors as little progress in U.S.-China trade talks also muddied the market outlook. By December, concerns of a U.S. government shutdown amid partisan political rancor, as well as growing disarray surrounding plans for Britain to exit the European Union, reinforced a risk-off mood. In the fourth quarter alone, high-yield bonds returned -4.67%, as spreads widened from 328 bps to 534 bps over the three-month period based on the ICE BofAML U.S. High Yield Constrained Index.

Following the difficult close to 2018, the new year brought a quick and meaningful recovery for the high-yield market, which benefited from reversals for a number of these trends. For example, more dovish comments from the Fed, a thawing of tensions for U.S.-China trade talks, and higher oil prices all combined to provide a much more favorable backdrop for high-yield corporate bonds in the first quarter of 2019. Benefiting from an especially strong January, high-yield corporate bonds returned +7.40% during the calendar quarter, as spreads narrowed significantly and ended the period at 405 bps.


Top 10 Holdings

3/31/19

Company *Sector/Industry*	% of Total Net Assets
HCA Inc., senior bond, 5.875%, 5/01/23 - 2/01/29 Health Care Equipment & Services		2.1%
CSC Holdings LLC, senior bond, 144A, 6.625%, 10/15/25 Media & Entertainment		2.1%
Horizon Pharma USA Inc., senior note, 6.625%, 5/01/23 Pharmaceuticals, Biotechnology & Life Sciences		2.0%
Cemex Finance LLC, senior secured note, first lien, 144A, 6.00%, 4/01/24 Materials		2.0%
Altice Luxembourg SA, senior secured note, 144A, 7.75%, 5/15/22 Media & Entertainment		2.0%
Ardagh Packaging Finance PLC / Ardagh MP Holdings USA Inc., senior note, 144A, 6.00%, 2/15/25 Materials		2.0%
Energy Transfer Operating LP, senior note, 5.875%, 1/15/24 Energy		1.1%
Cheniere Corpus Christi Holdings LLC, senior secured note, first lien, 5.875%, 3/31/25 Energy		1.1%
Netflix Inc., senior bond, 5.875%, 2/15/25 Retailing		1.1%
Tenet Healthcare Corp., senior note, 8.125%, 4/01/22 Health Care Equipment & Services		1.1%

The Fund outperformed its benchmark both in market price and NAV terms. It is also worth noting that the Fund outperformed the benchmark index in both the fourth quarter of 2018 and the first quarter of 2019, providing valuable support for the Fund’s overall results.

Security selection was the most meaningful contributor to the Fund’s relative performance during the period under review, driven especially by the Fund’s holdings in the energy, finance and metals and mining industries. When compared to the benchmark, the Fund also benefited from its industry allocations, thanks to particularly notable contributions from its overweight to the health care industry and its underweight to the energy and automotive industries. The Fund also benefited from its ratings quality exposures, led by positioning in the BB and CCC rated credit segments. To a lesser extent, the Fund’s yield-curve positioning also contributed to its relative performance. Conversely, the Fund’s limited cash position, which ended the period at just over 1.0% percent of assets, detracted slightly from relative results.



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FRANKLIN LIBERTY HIGH YIELD CORPORATE ETF

The Fund held only cash bonds during the period and had no exposure to derivatives.

Thank you for your participation in Franklin Liberty High Yield Corporate ETF. We look forward to serving your future investment needs.

LOGO

Glenn I. Voyles, CFA


		Patricia O’Connor, CFA

		Portfolio Management Team



franklintempleton.com	Annual Report	5

CFA^® is a trademark owned by CFA Institute.

FRANKLIN LIBERTY HIGH YIELD CORPORATE ETF

Performance Summary as of March 31, 2019

Total return reflects reinvestment of the Fund’s dividends and capital gain distributions, if any, and any unrealized gains or losses. Total returns do not include brokerage commissions that may be payable on secondary market transactions. The performance tables and graph do not reflect any taxes that a shareholder would pay on Fund dividends, capital gain distributions, if any, or any realized gains on the sale of Fund shares.

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (6/1/18), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Performance as of 3/31/19¹

Cumulative Total Return²

Average Annual Total Return²

Based on
NAV³

Based on

market price⁴

Based on
NAV³

Based on

market price⁴

Since Inception (5/30/18)

+7.07%

+7.40%

+7.07%

+7.40%



	30-Day Standardized Yield⁶
Distribution Rate⁵	(with waiver)		(without waiver)
6.06%		5.57%		4.30%

See page 8 for Performance Summary footnotes.



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FRANKLIN LIBERTY HIGH YIELD CORPORATE ETF

PERFORMANCE SUMMARY

Total Return Index Comparison for a Hypothetical $10,000 Investment¹

Total return is calculated at net asset value and represents the change in value of an investment over the periods shown. It includes any Fund fees and expenses, and reinvested distributions. The unmanaged index includes reinvestment of any income or distributions. It differs from the Fund in composition and does not pay management fees or expenses. One cannot invest directly in an index.

5/30/18–3/31/19

LOGO

See page 8 for Performance Summary footnotes.



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FRANKLIN LIBERTY HIGH YIELD CORPORATE ETF

PERFORMANCE SUMMARY

Distributions(5/30/18–3/31/19)



Net Investment Income	Short-Term Capital Gain		Total
$1.230384		$0.024075		$1.254459

Total Annual Operating Expenses⁸



With Waiver	Without Waiver
0.40%		0.84%

All investments involve risks, including possible loss of principal. Bond prices generally move in the opposite direction of interest rates. Thus, as the prices of bonds in the Fund adjust to a rise in interest rates, the Fund’s share price may decline. Distributions to shareholders may decline when prevailing interest rates fall or when the Fund experiences defaults on debt securities it holds. The high-yield corporate debt securities and instruments in which the Fund invests tend be rated below investment grade. Investing in higher-yielding, lower-rated corporate debt securities and instruments involves greater risk of default, which could result in loss of principal—a risk that may be heightened in a slowing economy. Changes in the financial strength of a bond issuer or in a bond’s credit rating may affect its value. The markets for particular securities or types of securities are or may become relatively illiquid. Reduced liquidity will have an adverse impact on the security’s value and on the Fund’s ability to sell such securities when necessary to meet the Fund’s liquidity needs or in response to a specific market event. Investing in derivative securities and the use of foreign currency techniques involve special risks as such may not achieve the anticipated benefits and/or may result in losses to the Fund. The Fund is actively managed but there is no guarantee that the manager’s investment decisions will produce the desired results. The Fund’s prospectus also includes a description of the main investment risks.

ETFs trade like stocks, fluctuate in market value and may trade at prices above or below their net asset value. Brokerage commissions and ETF expenses will reduce returns.

1. The Fund has an expense reduction contractually guaranteed through 7/31/19. Fund investment results reflect the expense reduction; without this reduction, the results would have been lower.

2. Total return calculations represent the cumulative and average annual changes in value of an investment over the period indicated. Return for less than one year, if any, has not been annualized.

3. Assumes reinvestment of distributions based on net asset value.

4. Assumes reinvestment of distributions based on market price.

5. Distribution rate is based on an annualization of the March dividend and the NAV per share on 3/31/19.

7. Source: FactSet. The ICE BofAML U.S. High Yield Constrained Index tracks the performance of U.S. dollar denominated below investment-grade corporate debt publicly issued in the U.S. domestic market.

See www.franklintempletondatasources.com for additional data provider information.



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FRANKLIN LIBERTY HIGH YIELD CORPORATE ETF

Your Fund’s Expenses

Actual Fund Expenses

The table below provides information about actual account values and actual expenses in the columns under the heading “Actual.” In these columns the Fund’s actual return, which includes the effect of Fund expenses, is used to calculate the “Ending Account Value.” You can estimate the expenses you paid during the period by following these steps (of course, your account value and expenses will differ from those in this illustration): Divide your account value by $1,000 (if your account had an $8,600 value, then $8,600÷ $1,000 = 8.6). Then multiply the result by the number in the row under the headings “Actual” and “Expenses Paid During Period” (if Actual Expenses Paid During Period were $7.50, then 8.6× $7.50 = $64.50). In this illustration, the actual expenses paid this period are $64.50.

Hypothetical Example for Comparison with Other Funds

Under the heading “Hypothetical” in the table, information is provided about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. This information may not be used to estimate the actual ending account balance or expenses you paid for the period, but it can help you compare ongoing costs of investing in the Fund with those of other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

Please note that expenses shown in the table are meant to highlight ongoing costs and do not reflect any transactional costs.Therefore, information under the heading “Hypothetical” is useful in comparing ongoing costs only, and will not help you compare total costs of owning different ETFs. In addition, if transactional costs were included, your total costs would have been higher.


		Actual (actual return after expenses)				Hypothetical (5% annual return before expenses)

Beginning Account Value 10/1/18		Ending Account Value 3/31/19		Expenses Paid During Period 10/1/18–3/31/19^1,2		Ending Account Value 3/31/19		Expenses Paid During Period 10/1/18–3/31/19^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	1,036.90	$	2.03	$	1,022.94	$	2.02		0.40	%

2. Reflects expenses after fee waivers and expense reimbursements.



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Franklin Liberty International Aggregate Bond ETF

This annual report for Franklin Liberty International Aggregate Bond ETF covers the period since the Fund’s inception on May 30, 2018, through March 31, 2019.

Your Fund’s Goal and Main Investments

The Fund seeks total investment return, consisting of a combination of interest income and capital appreciation. Under normal market conditions, the Fund invests at least 80% of its net assets in bonds and investments that provide exposure to bonds.

Performance Overview

For the period since inception on May 30, 2018, through March 31, 2019, the Fund posted cumulative total returns of +0.12% based on market price and +0.00% based on net asset value (NAV).¹ In comparison, the Bloomberg Barclays Global Aggregateex-USD Index posted a +0.43% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 12.

Investment Strategy

The Fund invests predominantly in fixed and floating-rate bonds issued by governments, government agencies and governmental-related or corporate issuers located outside the U.S. The Fund may also invest in securities or structured products that are linked to or derive their value from another security, asset or currency of any nation. In addition, the Fund’s assets are invested in issuers located in at least three countries (excluding the U.S.).

The Fund may invest in debt securities of any maturity or duration, and the average maturity or duration of debt securities in the Fund’s portfolio will fluctuate depending on

Geographic Composition

Based on Total Net Assets as of 3/31/19

the investment manager’s outlook on changing market, economic and political conditions.

The Fund is a“non-diversified” fund, which means it generally invests a greater portion of its assets in the securities of one or more issuers and invests overall in a smaller number of issuers than a diversified fund.

What is duration?

Duration is a measure of a bond’s price sensitivity to interest rate changes. In general, a portfolio of securities with a lower duration can be expected to be less sensitive to interest rate changes than a portfolio with a higher duration.

When choosing investments for the Fund, we allocate the Fund’s assets based upon our assessment of changing market, political and economic conditions. We consider various factors, including evaluation of interest rates, currency exchange rate changes and credit risks. We may consider selling a security when we believe the security has become fully valued due to either its price appreciation or

2. Source: FactSet.

See www.franklintempletondatasources.com for additional data provider information.

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Statement of Investments (SOI). The SOI begins on page 29.



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FRANKLIN LIBERTY INTERNATIONAL AGGREGATE BOND ETF

Portfolio Composition

Based on Total Net Assets as of 3/31/19

changes in the issuer’s fundamentals, or when we believe another security is a more attractive investment opportunity.

Manager’s Discussion

The Fund’s local market allocation detracted from relative performance. Overweight allocations to Mexico, Indonesia and South Africa hurt relative returns, as did an underweight exposure to the eurozone. Conversely, an underweight allocation in the U.K. and Japan as well as an overweight allocation in Australia contributed to relative returns.

The Fund’s duration and yield-curve positioning also hampered relative results, due to an underweight duration allocation in U.K. issues, although this was modestly offset by the positive impact of an overweight position in Poland.

In contrast, the Fund’s currency positioning was the main contributor to relative returns, boosted by underweight exposure to the Japanese yen and euro as well as an overweight allocation to the Mexican peso. However, this was partially offset by the negative impact of the Fund’s overweight exposure to the Australian dollar, South African rand and Polish zloty.

The Fund’s sector allocation also helped relative results, although this was reduced by the negative impact of security selection.Off-benchmark allocations to high-yield corporate industrial and utility bonds added to relative returns, while selection among industrials detracted.

Thank you for your participation in Franklin Liberty International Aggregate Bond ETF. We look forward to serving your future investment needs.


		John Beck

		Co-Lead Portfolio Manager


		Sonal Desai, Ph.D.

		Co-Lead Portfolio Manager



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FRANKLIN LIBERTY INTERNATIONAL AGGREGATE BOND ETF

Performance Summary as of March 31, 2019

Total return reflects reinvestment of the Fund’s dividends and capital gain distributions, if any, and any unrealized gains or losses. Total returns do not include brokerage commissions that may be payable on secondary market transactions. The performance tables and graph do not reflect any taxes that a shareholder would pay on Fund dividends, capital gain distributions, if any, or any realized gains on the sale of Fund shares.

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (6/1/18), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Performance as of 3/31/19¹

Cumulative Total Return²

Average Annual Total Return²

Based on
NAV³

Based on
market price⁴

Based on
NAV³

Based on
market price⁴

Since Inception (5/30/18)

0.00%

+0.12%

0.00%

+0.12%



	30-Day Standardized Yield⁶
Distribution Rate⁵	(with waiver)		(without waiver)
2.57%		1.82%		-0.29%

See page 14 for Performance Summary footnotes.



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FRANKLIN LIBERTY INTERNATIONAL AGGREGATE BOND ETF

PERFORMANCE SUMMARY

Total Return Index Comparison for a Hypothetical $10,000 Investment¹

Total return is calculated at net asset value and represents the change in value of an investment over the periods shown. It includes any Fund fees and expenses, and reinvested distributions. The unmanaged index includes reinvestment of any income or distributions. It differs from the Fund in composition and does not pay management fees or expenses. One cannot invest directly in an index.

5/30/18–3/31/19

LOGO

See page 14 for Performance Summary footnotes.



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FRANKLIN LIBERTY INTERNATIONAL AGGREGATE BOND ETF

PERFORMANCE SUMMARY

Distributions(5/30/18–3/31/19)

Net Investment

Income

$0.433500

Total Annual Operating Expenses⁸



With Waiver	Without Waiver
0.35%		0.69%

All investments involve risks, including possible loss of principal. Bond prices generally move in the opposite direction of interest rates. As the prices of bonds in the Fund adjust to a rise in interest rates, the Fund’s share price may decline. Changes in the financial strength of a bond issuer or in a bond’s credit rating may affect its value. The Fund’s investments in foreign securities involve certain risks including currency fluctuations, and economic and political uncertainties. Investments in developing markets involve heightened risks related to the same factors, in addition to those associated with their relatively small size and lesser liquidity. Investing in derivative securities and the use of foreign currency techniques involve special risks as such may not achieve the anticipated benefits and/or may result in losses to the Fund. The Fund may not achieve the anticipated benefits, and may realize losses when a counterparty fails to perform as promised. Sovereign debt securities are subject to various risks in addition to those relating to debt securities and foreign securities generally, including, but not limited to, the risk that a governmental entity may be unwilling or unable to pay interest and repay principal on its sovereign debt, or otherwise meet its obligations when due because of cash flow problems, insufficient foreign reserves, the relative size of the debt service burden to the economy as a whole, the government’s policy toward principal international lenders such as the International Monetary Fund, or the political considerations to which the government may be subject. The Fund is actively managed but there is no guarantee that the manager’s investment decisions will produce the desired results. The Fund’s prospectus also includes a description of the main investment risks.

ETFs trade like stocks, fluctuate in market value and may trade at prices above or below their net asset value. Brokerage commissions and ETF expenses will reduce returns.

1. The Fund has an expense reduction contractually guaranteed through at least 7/31/19. Fund investment results reflect the expense reduction; without this reduction, the results would have been lower.

2. Total return calculations represent the cumulative and average annual changes in value of an investment over the period indicated. Return for less than one year, if any, has not been annualized.

3. Assumes reinvestment of distributions based on net asset value.

4. Assumes reinvestment of distributions based on market price.

5. Distribution rate is based on an annualization of the March dividend and the NAV per share on 3/31/19.

7. Source: FactSet. The Bloomberg Barclays Global Aggregateex-USD Index is a measure of global investment grade-debt from 24 local currency markets. This multi-currency benchmark includes treasury, government-related, corporate and securitized fixed-rate bonds from both developed and emerging markets issuers.

See www.franklintempletondatasources.com for additional data provider information.



14	Annual Report	franklintempleton.com

FRANKLIN LIBERTY INTERNATIONAL AGGREGATE BOND ETF

Your Fund’s Expenses

Actual Fund Expenses

The table below provides information about actual account values and actual expenses in the columns under the heading “Actual.” In these columns the Fund’s actual return, which includes the effect of Fund expenses, is used to calculate the “Ending Account Value.” You can estimate the expenses you paid during the period by following these steps (of course, your account value and expenses will differ from those in this illustration):Divide your account value by $1,000 (if your account had an $8,600 value, then $8,600÷ $1,000 = 8.6).Then multiply the result by the number in the row under the headings “Actual” and “Expenses Paid During Period” (if Actual Expenses Paid During Period were $7.50, then 8.6 x $7.50 = $64.50).In this illustration, the actual expenses paid this period are $64.50.

Hypothetical Example for Comparison with Other Funds

Under the heading “Hypothetical” in the table, information is provided about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. This information may not be used to estimate the actual ending account balance or expenses you paid for the period, but it can help you compare ongoing costs of investing in the Fund with those of other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.


		Actual (actual return after expenses)				Hypothetical (5% annual return before expenses)

Beginning Account Value 10/1/18		Ending Account Value 3/31/19		Expenses Paid During Period 10/1/18–3/31/19^1,2		Ending Account Value 3/31/19		Expenses Paid During Period 10/1/18–3/31/19^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	1,019.60	$	1.76	$	1,023.19	$	1.77		0.35	%

2. Reflects expenses after fee waivers and expense reimbursements.



franklintempleton.com	Annual Report	15

Franklin Liberty Senior Loan ETF

This annual report for Franklin Liberty Senior loan ETF covers the period since the Fund’s inception on May 30, 2018, through March 31, 2019.

Your Fund’s Goal and Main Investments

The Fund seeks to provide a high level of current income with a secondary goal of preservation of capital. The Fund invests at least 80% of its net assets in senior loans and investments that provide exposure to senior loans.

Performance Overview

For the period since inception on May 30, 2018, through March 31, 2019, the Fund posted cumulative total returns of +2.59% based on market price and +2.44% based on net asset value (NAV).¹ In comparison, the Fund’s primary benchmark, the S&P/LSTA U.S. Leveraged Loan 100 Index, posted a +2.64% total return for the same period.² The Fund’s additional benchmark, the Subset Index of Top 50 Obligors in Credit Suisse Leveraged Loan Index, posted a +2.84% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 19.

Investment Strategy

The Fund invests predominantly in income-producing senior floating interest rate corporate loans made to or issued by U.S. companies,non-U.S. entities and U.S. subsidiaries ofnon-U.S. entities. Floating interest rates vary with and are periodically adjusted to a generally recognized base interest rate such as the London Interbank Offered Rate (LIBOR) or the Prime Rate. The Fund may invest in companies whose financial condition is troubled or uncertain and that may be


Top 10 Sectors/Industries

3/31/19

	% of Total Net Assets
Pharmaceuticals		7.2%
Casinos & Gaming		5.9%
Packaged Foods & Meats		5.0%
Specialty Stores		4.7%
Cable & Satellite		4.5%
Food Distributors		3.6%
Data Processing & Outsourced Services		3.3%
Auto Parts & Equipment		2.8%
Health Care Services		2.6%
Interactive Media & Services		2.6%

involved in bankruptcy proceedings, reorganizations or financial restructurings.

Senior loans generally have credit ratings below investment grade and may be subject to restrictions on resale. Under normal market conditions, the Fund invests at least 75% of its net assets in senior loans that are ratedB- or higher at the time of purchase by a nationally recognized statistical rating organization (NRSRO) or, if unrated, are determined to be of comparable quality by the Fund’s investment manager. Under normal market conditions, the Fund may invest up to 25% of its net assets in senior loans that are rated belowB- by an NRSRO or, if unrated, are determined to be of comparable quality by the investment manager.

Manager’s Discussion

While flows into loan mutual funds had provided steady demand at the beginning of the period under review, outflows accelerated toward the end of 2018, with record monthly outflows in December. Technical conditions in the loan market significantly weakened as the asset class was negatively impacted by broader volatility in the equity and credit markets, as well as investor concerns about U.S. growth and the

2. Source: FactSet. The Subset Index of Top 50 Obligors in Credit Suisse Leveraged Loan Index includes only the top 50 obligors of the Credit Suisse Leveraged Loan Index. Credit Suisse is not responsible for or involved in the calculation or management of the Subset Index of Top 50 Obligors in Credit Suisse Leveraged Loan Index.

The indexes are unmanaged and includes reinvestment of any income or distributions. It does not reflect any fees, expenses or sales charges. One cannot invest directly in an index, and an index is not representative of the Fund’s portfolio.

See www.franklintempletondatasources.com for additional data provider information

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Statement of Investments (SOI). The SOI begins on page 32.



16	Annual Report	franklintempleton.com

FRANKLIN LIBERTY SENIOR LOAN ETF

Portfolio Composition

Based on Total Net Assets as of 3/31/19

prospect of future rate hikes. However, improved investor sentiment in early January led to a sharp rebound and the technical environment was balanced by slower new issuance.

Since the Fund’s inception, the Fund has invested in loans that were among the largest obligors, while maintaining an overweight in the upper tier and an underweight in the middle tier segments of the loan market. As many loan managers received elevated redemptions toward the end of 2018, they opted to sell their largest and most liquid names first, which included many of the Fund’s holdings. While these loans and our benchmark experienced heightened volatility, they had greater returns compared to the broader loan market during the rally at the beginning of 2019. As of 3/31/19, the Fund had approximately 83% of its loan portfolio in the upper tier and 17% in the middle tier, compared to the custom index, which had 49% in the upper tier and 49% in the middle tier. During the period, upper-tier and middle-tier loans in the custom index returned +3.13%, while lower-tier loans returned-4.57%.

In addition to credit tier positioning, Fund performance was negatively impacted by loan selection during the period. The term loan of Endo International, a specialty pharmaceutical company, was a major contributor to performance as the company reported continued growth in its top products. Additionally, the higher income generation of the term loan was able to offset investor credit concerns around the threat of litigation and weakness in the company’s generic segment. Meanwhile, the top detractors from Fund performance included A rated collateralized loan obligation (CLO) tranches that had declined toward the end of 2018 as CLO spreads widened but did not rebound as much as loans in the portfolio. The CLO investments allowed the Fund to have further exposure to credit, while providing a potential source of liquidity in the event of elevated redemption activity.

Thank you for your participation in Franklin Liberty Senior Loan ETF. We look forward to serving your future investment needs.


Top 10 Holdings

3/31/19

Company *Sector/Industry*	% of Total Net Assets
FHLB, 4/01/19 U.S. Government & Agency Securities		8.0%
Panther BF Aggregator 2 LP, Term Loan B, TBD, 3/18/26 Auto Parts & Equipment		2.8%
Endo Luxembourg Finance Co. I S.A.R.L. and Endo LLC, Initial Term Loans, 6.749%, 4/29/24 Pharmaceuticals		2.7%
Asurion LLC, Replacement B-6 Term Loans, 5.499%, 11/03/23 Other Diversified Financial Services		2.7%
JBS USA LUX SA, New Initial Term Loans, 4.982%, 10/30/22 Packaged Foods & Meats		2.7%
Air Medical Group Holdings Inc., 2018 New Term Loans, 6.736%, 3/14/25 Health Care Services		2.6%
Go Daddy Operating Company LLC, Tranche B-1 Term Loans, 4.749%, 2/15/24 Interactive Media & Services		2.6%
Michaels Stores Inc., 2018 New Replacement Term B Loan, 4.991%, 1/30/23 Speciality Stores		2.5%
CSC Holdings LLC, March 2017 Incremental Term Loans, 4.734%, 7/17/25 Media		2.5%
Caesars Resort Collection LLC, Term B Loans, 5.249%, 12/22/24 Casinos & Gaming		2.4%



franklintempleton.com	Annual Report	17

FRANKLIN LIBERTY SENIOR LOAN ETF

LOGO

Reema Agarwal, CFA


		Justin Ma, CFA
		Margaret Chiu, CFA, FRM

		Portfolio Management Team



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FRANKLIN LIBERTY SENIOR LOAN ETF

Performance Summary as of March 31, 2019

Total return reflects reinvestment of the Fund’s dividends and capital gain distributions, if any, and any unrealized gains or losses. Total returns do not include brokerage commissions that may be payable on secondary market transactions. The performance tables and graph do not reflect any taxes that a shareholder would pay on Fund dividends, capital gain distributions, if any, or any realized gains on the sale of Fund shares.

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (6/1/18), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Performance as of 3/31/19¹

Cumulative Total Return²

Average Annual Total Return²

Based on
NAV³

Based on
market price⁴

Based on

NAV³

Based on
market price⁴

Since Inception (5/30/18)

+2.44%

+2.59%

+2.44%

+2.59%



	30-Day Standardized Yield⁶
Distribution Rate⁵	(with waiver)		(without waiver)
4.09%		4.32%		3.63%

See page 21 for Performance Summary footnotes.



franklintempleton.com	Annual Report	19

FRANKLIN LIBERTY SENIOR LOAN ETF

PERFORMANCE SUMMARY

Total Return Index Comparison for a Hypothetical $10,000 Investment¹

Total return is calculated at net asset value and represents the change in value of an investment over the periods shown. It includes any Fund fees and expenses, and reinvested distributions. The unmanaged index includes reinvestment of any income or distributions. It differs from the Fund in composition and does not pay management fees or expenses. One cannot invest directly in an index.

5/30/18–3/31/19

LOGO

See page 21 for Performance Summary footnotes.



20	Annual Report	franklintempleton.com

FRANKLIN LIBERTY SENIOR LOAN ETF

PERFORMANCE SUMMARY

Distributions(5/30/18–3/31/19)

Net Investment

Income

$0.749753

Total Annual Operating Expenses⁸



With Waiver	Without Waiver
0.45%		0.81%

All investments involve risks, including possible loss of principal. Investors should be aware that the Fund’s share price and yield will fluctuate with market conditions. The Fund should not be considered an alternative to money market funds or certificates of deposit (CDs). The senior loans and debt securities in which the Fund invests tend to be rated below investment grade. Investing in higher-yielding, lower-rated, senior loans and debt securities involves greater risk of default, which could result in loss of principal—a risk that may be heightened in a slowing economy. Interest earned on senior loans varies with changes in prevailing interest rates. Therefore, while senior loans offer higher interest income when interest rates rise, they will also generate less income when interest rates decline. Changes in the financial strength of a bond issuer or in a bond’s credit rating may affect its value. The markets for particular securities or types of securities are or may become relatively illiquid. Reduced liquidity will have an adverse impact on the security’s value and on the Fund’s ability to sell such securities when necessary to meet the Fund’s liquidity needs or in response to a specific market event. The Fund is actively managed but there is no guarantee that the manager’s investment decisions will produce the desired results. The Fund’s prospectus also includes a description of the main investment risks.

ETFs trade like stocks, fluctuate in market value and may trade at prices above or below their net asset value. Brokerage commissions and ETF expenses will reduce returns.

2. Total return calculations represent the cumulative and average annual changes in value of an investment over the period indicated. Return for less than one year, if any, has not been annualized.

3. Assumes reinvestment of distributions based on net asset value.

4. Assumes reinvestment of distributions based on market price.

5. Distribution rate is based on an annualization of the March dividend and the NAV per share on 3/31/19.

7. Source: FactSet. The S&P/LSTA U.S. Leveraged Loan 100 Index reflects the performance of the largest facilities in the leveraged loan market. This rules-based index consists of the 100 largest loan facilities in the benchmark S&P/LSTA Leveraged Loan Index. The Subset Index of Top 50 Obligors in Credit Suisse Leveraged Loan Index includes only the top 50 obligors of the Credit Suisse Leveraged Loan Index. Credit Suisse is not responsible for or involved in the calculation or management of the Subset Index of Top 50 Obligors in Credit Suisse Leveraged Loan Index.

See www.franklintempletondatasources.com for additional data provider information.



franklintempleton.com	Annual Report	21

FRANKLIN LIBERTY SENIOR LOAN ETF

Your Fund’s Expenses

Actual Fund Expenses

The table below provides information about actual account values and actual expenses in the columns under the heading “Actual.” In these columns the Fund’s actual return, which includes the effect of Fund expenses, is used to calculate the “Ending Account Value.” You can estimate the expenses you paid during the period by following these steps (of course, your account value and expenses will differ from those in this illustration):Divide your account value by $1,000 (if your account had an $8,600 value, then $8,600÷ $1,000 = 8.6).Then multiply the result by the number in the row under the headings “Actual” and “Expenses Paid During Period” (if Actual Expenses Paid During Period were $7.50, then 8.6 x $7.50 = $64.50).In this illustration, the actual expenses paid this period are $64.50.

Hypothetical Example for Comparison with Other Funds

Under the heading “Hypothetical” in the table, information is provided about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. This information may not be used to estimate the actual ending account balance or expenses you paid for the period, but it can help you compare ongoing costs of investing in the Fund with those of other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.


		Actual (actual return after expenses)				Hypothetical (5% annual return before expenses)

Beginning Account Value 10/1/18		Ending Account Value 3/31/19		Expenses Paid During Period 10/1/18–3/31/19^1,2		Ending Account Value 3/31/19		Expenses Paid During Period 10/1/18–3/31/19^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	1,005.60	$	2.25	$	1,022.69	$	2.27		0.45	%

2. Reflects expenses after fee waivers and expense reimbursements.



22	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin Liberty High Yield Corporate ETF



	Year Ended March 31, 2019^a

Per share operating performance (for a share outstanding throughout the year)

Net asset value, beginning of year	$	25.00


Income from investment operations^b:

Net investment income^c		1.21

Net realized and unrealized gains (losses)		0.49


Total from investment operations		1.70


Less distributions from:

Net investment income		(1.23	)

Net realized gains		(0.02	)


Total distributions		(1.25	)


Net asset value, end of year	$	25.45


Total return^d		7.07%

Ratios to average net assets^e

Expenses before waiver and payments by affiliates		1.54%

Expenses net of waiver and payments by affiliates		0.40%

Net investment income		5.80%

Supplemental data

Net assets, end of year (000’s)		$10,181

Portfolio turnover rate^f		23.57%

^aFor the period May 30, 2018 (commencement of operations) to March 31, 2019.

^cBased on average daily shares outstanding.

^eRatios are annualized for periods less than one year.

^fPortfolio turnover rate excludes the value of portfolio securities received or delivered as a result of processing capital share transactions in Creation Units, if any.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	23

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2019

Franklin Liberty High Yield Corporate ETF



		Country		Principal Amount*		Value
	Corporate Bonds & Notes 97.7%
	Banks 2.1%
	CIT Group Inc., senior note, 5.25%, 3/07/25		United States		100,000	$	106,655
	Royal Bank of Scotland Group PLC, sub. note, 5.125%, 5/28/24		United Kingdom		100,000		102,702


							209,357

	Capital Goods 9.8%
a	BBA US Holdings Inc., senior note, 144A, 5.375%, 5/01/26		United States		100,000		103,250
a	Beacon Roofing Supply Inc., senior note, 144A, 4.875%, 11/01/25		United States		100,000		94,875
a	Cloud Crane LLC, secured note, second lien, 144A, 10.125%, 8/01/24		United States		100,000		107,750
	H&E Equipment Services Inc., senior note, 5.625%, 9/01/25		United States		100,000		100,125
a	Jeld-Wen Inc., senior note, 144A, 4.625%, 12/15/25		United States		100,000		95,250
a	NCI Building Systems Inc., senior secured note, 144A, 8.00%, 4/15/26		United States		100,000		90,177
a	Stevens Holding Co. Inc., senior note, 144A, 6.125%, 10/01/26		United States		100,000		103,500
a	Terex Corp., senior note, 144A, 5.625%, 2/01/25		United States		100,000		99,625
a	The Manitowoc Co. Inc., secured note, second lien, 144A, 9.00%, 4/01/26		United States		100,000		101,500
a	TransDigm Inc., senior secured note, 144A, 6.25%, 3/15/26		United States		100,000		104,400

							1,000,452

	Commercial & Professional Services 1.9%
	United Rentals North America Inc., senior bond, 5.875%, 9/15/26		United States		100,000		103,750
a	West Corp., senior note, 144A, 8.50%, 10/15/25		United States		100,000		86,500


							190,250

	Consumer Durables & Apparel 1.9%
a	Ashton Woods USA LLC/Finance Co., senior note, 144A, 9.875%, 4/01/27		United States		100,000		102,500
	Weekley Homes LLC / Weekley Finance Corp., senior note, 6.625%, 8/15/25		United States		100,000		96,000


							198,500

	Consumer Services 8.0%
a	1011778 BC ULC / New Red Finance Inc., secured note, second lien, 144A, 5.00%, 10/15/25		Canada		100,000		99,030
a	24 Hour Holdings III LLC, senior note, 144A, 8.00%, 6/01/22		United States		100,000		100,500
a	Ascend Learning LLC, senior note, 144A, 6.875%, 8/01/25		United States		100,000		99,750
a	Downstream Development Authority of the Quapaw Tribe of Oklahoma, secured note, 144A, 10.50%, 2/15/23		United States		100,000		103,875
a	Golden Nugget Inc., senior note, 144A, 6.75%, 10/15/24		United States		100,000		100,750
a	Stars Group Holdings BV / Stars Group USCo-Borrower LLC, senior note, 144A, 7.00%, 7/15/26		Netherlands		100,000		104,500
a	Studio City Finance Ltd., senior note, 144A, 7.25%, 2/11/24		Macau		100,000		104,950
a	Wynn Las Vegas LLC / Wynn Las Vegas Capital Corp., senior bond, 144A, 5.50%, 3/01/25		United States		100,000		99,000


							812,355

	Energy 12.7%
a	Archrock Partners LP / Archrock Partners Finance Corp., senior note, 144A, 6.875%, 4/01/27		United States		100,000		102,220
a	California Resources Corp., secured note, second lien, 144A, 8.00%, 12/15/22		United States		100,000		78,780
	Callon Petroleum Co., senior note, 6.375%, 7/01/26		United States		100,000		100,750
	Cheniere Corpus Christi Holdings LLC, senior secured note, first lien, 5.875%, 3/31/25		United States		100,000		109,000
	Cheniere Energy Partners LP, senior secured note, first lien, 5.25%, 10/01/25		United States		100,000		102,625
	Chesapeake Energy Corp., senior note, 7.50%, 10/01/26		United States		100,000		98,730
	Crestwood Midstream Partners LP / Crestwood Midstream Finance Corp., senior note, 5.75%, 4/01/25		United States		100,000		103,000
a	Diamondback Energy Inc., senior note, 144A, 4.75%, 11/01/24		United States		100,000		102,605



24	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin Liberty High Yield Corporate ETF(continued)



		Country		Principal Amount*		Value
	Corporate Bonds & Notes (continued)
	Energy (continued)
	Energy Transfer Operating LP, senior note, 5.875%, 1/15/24		United States		100,000	$	109,309
	Martin Midstream Partners LP / Martin Midstream Finance Corp., senior note, 7.25%, 2/15/21		United States		100,000		97,500
	Nabors Industries Inc., senior note, 5.50%, 1/15/23		United States		100,000		95,950
	QEP Resources Inc., senior note, 5.625%, 3/01/26		United States		100,000		91,000
	Sunoco LP / Sunoco Finance Corp., senior note, 5.50%, 2/15/26		United States		100,000		99,250


							1,290,719

	Food, Beverage & Tobacco 1.9%
	B&G Foods Inc., senior note, 5.25%, 4/01/25		United States		100,000		96,250
a	Lamb Weston Holdings Inc., senior note, 144A, 4.625%, 11/01/24		United States		100,000		101,375


							197,625

	Health Care Equipment & Services 8.9%
a	Avantor Inc., senior secured note, first lien, 144A, 6.00%, 10/01/24		United States		100,000		104,000
	Centene Corp., senior note, 4.75%, 1/15/25		United States		100,000		102,250
a	CHS / Community Health Systems Inc., senior note , 144A, 8.125%, 6/30/24		United States		100,000		75,030
	DaVita Inc., senior bond, 5.125%, 7/15/24		United States		100,000		99,000
	HCA Inc., senior bond, 5.875%, 2/01/29				100,000		107,870
	senior bond, 5.875%, 5/01/23				100,000		106,875
a	MEDNAX Inc., senior note, 144A, 6.25%, 1/15/27		United States		100,000		101,250
a,b	Polaris Intermediate Corp., senior note, 144A, PIK, 8.50%, 12/01/22		United States		100,000		99,025
	Tenet Healthcare Corp., senior note, 8.125%, 4/01/22		United States		100,000		107,960


							903,260

	Household & Personal Products 1.0%
a	Prestige Brands Inc., senior note, 144A, 6.375%, 3/01/24		United States		100,000		102,250

	Materials 16.8%
a	Ardagh Packaging Finance PLC / Ardagh MP Holdings USA Inc., senior note, 144A, 6.00%, 2/15/25		Ireland		200,000		200,500
a	BWAY Holding Co., senior note, 144A, 7.25%, 4/15/25		United States		100,000		96,812
a	Cemex Finance LLC, senior secured note, first lien, 144A, 6.00%, 4/01/24		United States		200,000		206,500
a	Eldorado Gold Corp., senior note, 144A, 6.125%, 12/15/20		Canada		100,000		98,120
a	Element Solutions Inc., senior note, 144A, 5.875%, 12/01/25		United States		100,000		100,735
a	Neon Holdings Inc., senior note, 144A, 10.125%, 4/01/26		United States		100,000		102,250
a	Novelis Corp., senior bond, 144A, 5.875%, 9/30/26		United States		100,000		99,875
a	Owens-Brockway Glass Container Inc., senior note, 144A, 5.875%, 8/15/23		United States		100,000		105,115
a	Plastipak Holdings Inc., senior note, 144A, 6.25%, 10/15/25		United States		100,000		94,000
a	Rain CII Carbon LLC / CII Carbon Corp., senior note, 144A, 7.25%, 4/01/25		United States		100,000		89,000
a	Reynolds Group Issuer Inc. / Reynolds Group Issuer LLC / Reynolds Group Issuer Luxembourg SA, senior secured note, first lien, 144A, 5.125%, 7/15/23		United States		100,000		101,750
a	Sealed Air Corp., senior bond, 144A, 5.25%, 4/01/23		United States		100,000		104,250
	Steel Dynamics Inc., senior bond, 5.00%, 12/15/26		United States		100,000		102,375
a	SunCoke Energy Partners LP / SunCoke Energy Partners Finance Corp., senior note, 144A, 7.50%, 6/15/25		United States		100,000		101,500
	The Chemours Co., senior bond, 7.00%, 5/15/25		United States		100,000		105,500


							1,708,282

	Media & Entertainment 9.9%
a	Altice Luxembourg SA, senior secured note, 144A, 7.75%, 5/15/22		Luxembourg		200,000		200,750
	AMC Entertainment Holdings Inc., senior sub. note, 5.875%, 11/15/26		United States		100,000		90,500
	CCO Holdings LLC / CCO Holdings Capital Corp., senior bond, 5.125%, 2/15/23		United States		100,000		102,000



franklintempleton.com	Annual Report	25

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin Liberty High Yield Corporate ETF(continued)



		Country		Principal Amount*		Value
	Corporate Bonds & Notes (continued)
	Media & Entertainment (continued)
	Clear Channel Worldwide Holdings Inc., senior note, 6.50%, 11/15/22		United States		100,000	$	102,625
a	CSC Holdings LLC, senior bond, 144A, 6.625%, 10/15/25		United States		200,000		212,500
	DISH DBS Corp., senior bond, 5.875%, 7/15/22		United States		100,000		97,155
a	Univision Communications Inc., senior secured note, first lien, 144A, 5.125%, 5/15/23		United States		100,000		95,187
a	WMG Acquisition Corp., secured note, first lien, 144A, 5.00%, 8/01/23		United States		100,000		102,125


							1,002,842

	Pharmaceuticals, Biotechnology & Life Sciences 5.0%
a	Bausch Health Companies Inc., senior bond, 144A, 6.125%, 4/15/25		Canada		100,000		99,250
a,b	Eagle Holding Co. II LLC, senior note, 144A, PIK, 7.625%, 5/15/22		United States		100,000		101,125
	Horizon Pharma USA Inc., senior note, 6.625%, 5/01/23		United States		200,000		206,582
a	Par Pharmaceutical Inc., senior secured note, 144A, 7.50%, 4/01/27		United States		100,000		101,650


							508,607

	Real Estate 3.0%
	CyrusOne LP / CyrusOne Finance Corp., senior note, 5.00%, 3/15/24		United States		100,000		102,375
	Equinix Inc., senior bond, 5.75%, 1/01/25		United States		100,000		104,062
	MPT Operating Partnership LP / MPT Finance Corp., senior bond, 5.25%, 8/01/26		United States		100,000		103,375


							309,812

	Retailing 2.0%
	Netflix Inc., senior bond, 5.875%, 2/15/25		United States		100,000		108,315
a	Party City Holdings Inc., senior note, 144A, 6.625%, 8/01/26		United States		100,000		99,750


							208,065

	Semiconductors & Semiconductor Equipment 2.0%
a	Amkor Technology Inc., senior note, 144A, 6.625%, 9/15/27		United States		100,000		101,688
a	Qorvo Inc., senior note, 144A, 5.50%, 7/15/26		United States		100,000		103,510


							205,198

	Software & Services 1.0%
a	Symantec Corp., senior note, 144A, 5.00%, 4/15/25		United States		100,000		100,244

	Technology Hardware & Equipment 3.0%
a	CommScope Technologies LLC, senior bond, 144A, 6.00%, 6/15/25		United States		100,000		97,595
a	Dell International LLC / EMC Corp., senior note, 144A, 7.125%, 6/15/24		United States		100,000		106,038
a	Tempo Acquisition LLC / Tempo Acquisition Finance Corp., senior note, 144A, 6.75%, 6/01/25		United States		100,000		101,250


							304,883

	Telecommunication Services 3.0%
a	Block Communications Inc., senior note, 144A, 6.875%, 2/15/25		United States		100,000		104,125
	Sprint Corp., senior note, 7.625%, 2/15/25		United States		100,000		102,250
	T-Mobile USA Inc., senior note, 5.125%, 4/15/25		United States		100,000		102,750


							309,125

	Transportation 1.0%
a	DAE Funding LLC, senior note, 144A, 5.75%, 11/15/23		United States		100,000		103,000

	Utilities 2.8%
	Calpine Corp., senior note, 5.375%, 1/15/23		United States		100,000		100,375
	Clearway Energy Operating LLC, senior bond, 5.00%, 9/15/26		United States		100,000		95,750
	Talen Energy Supply LLC, senior note, 6.50%, 6/01/25		United States		100,000		88,500


							284,625

	Total Investments before Short Term Investments (Cost $9,815,431)						9,949,451



26	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin Liberty High Yield Corporate ETF(continued)

Country

Principal Amount*

Value

Short Term Investments 1.0%

U.S. Government & Agency Securities (Cost $100,000) 1.0%

FHLB, 4/01/19

United States

100,000

Total Investments (Cost $9,915,431) 98.7%

10,049,451

Other Assets, less Liabilities 1.3%

131,290

Net Assets 100.0%

10,180,741

See abbreviations on page 45.

*The principal amount is stated in U.S. dollars unless otherwise indicated.

^bIncome may be received in additional securities and/or cash.

^cThe security was issued on a discount basis with no stated coupon rate.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	27

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin Liberty International Aggregate Bond ETF



	Year Ended March 31, 2019^a

Per share operating performance (for a share outstanding throughout the year)

Net asset value, beginning of year	$	25.00


Income from investment operations^b:

Net investment income^c		0.39

Net realized and unrealized gains (losses)		(0.40	)


Total from investment operations		(0.01	)


Less distributions from net investment income		(0.43	)


Net asset value, end of year	$	24.56


Total return^d		0.00%

Ratios to average net assets^e

Expenses before waiver and payments by affiliates		2.32%

Expenses net of waiver and payments by affiliates		0.35%

Net investment income		1.91%

Supplemental data

Net assets, end of year (000’s)		$4,912

Portfolio turnover rate^f		50.32%

^aFor the period May 30, 2018 (commencement of operations) to March 31, 2019.

^cBased on average daily shares outstanding.

^eRatios are annualized for periods less than one year.

^fPortfolio turnover rate excludes the value of portfolio securities received or delivered as a result of processing capital share transactions in Creation Units, if any.



28	Annual Report \| The accompanying notes are an integral part of these financial statements.	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2019

Franklin Liberty International Aggregate Bond ETF



		Principal Amount*				Value
	Foreign Government and Agency Securities 73.3%
	Australia 8.7%
a	New South Wales Treasury Corp., senior bond, Reg S, 3.00%, 5/20/27		140,000		AUD	$	106,096
	Queensland Treasury Corp., ^b senior bond, 144A, 3.25%, 8/21/29		140,000		AUD		107,558
	^a senior bond, Reg S, 3.25%, 7/21/26		140,000		AUD		107,302
	Western Australian Treasury Corp., senior note, 26, 3.00%, 10/21/26		140,000		AUD		105,464

							426,420

	Canada 5.0%
	Government of Canada, 2.75%, 6/01/22		320,000		CAD		248,368

	France 5.1%
	Government of France, ^a,b 144A, Reg S, 2.00%, 5/25/48		100,000		EUR		131,474
	^a Reg S, 1.00%, 11/25/25		100,000		EUR		120,460

							251,934

	Germany 2.9%
a	Government of Germany, Reg S, 1.50%, 2/15/23		30,000		EUR		36,366
	KFW, senior note, 2.05%, 2/16/26		10,000,000		JPY		104,904

							141,270

	Indonesia 3.5%
	Indonesia Treasury Bond, senior bond, 8.25%, 5/15/36		2,400,000,000		IDR		172,020

	Italy 5.7%
	Italy Treasury Bond, senior bond, 1.25%, 12/01/26		150,000		EUR		158,792
	senior bond, 4.25%, 9/01/19		55,000		EUR		62,796
	senior bond, 5.50%, 9/01/22		45,000		EUR		57,823

							279,411

	Japan 12.3%
	Development Bank of Japan, senior bond, 2.30%, 3/19/26		20,000,000		JPY		209,688
	Government of Japan, senior bond, 1.00%, 12/20/35		30,000,000		JPY		305,751
	senior note, 121, .10%, 9/20/19		10,000,000		JPY		90,345

							605,784

	Mexico 3.3%
	Government of Mexico, M, 7.50%, 6/03/27		21,000	^c	MXN		104,865
	M, 10.00%, 12/05/24		10,000	^c	MXN		56,608

							161,473

	Poland 4.8%
	Government of Poland, 2.50%, 7/25/27		400,000		PLN		102,949
	5.75%, 4/25/29		400,000		PLN		131,814

							234,763

	South Africa 2.4%
	Government of South Africa, senior bond, 7.00%, 2/28/31		2,000,000		ZAR		116,233

	Spain 12.5%
	Government of Spain, ^a Reg S, 2.35%, 7/30/33		296,000		EUR		366,352
	^a senior bond, Reg S, 5.15%, 10/31/28		160,000		EUR		247,522

							613,874



franklintempleton.com	Annual Report	29

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin Liberty International Aggregate Bond ETF(continued)

Principal Amount*

Value

Foreign Government and Agency Securities (continued)

Supranational 7.1%

Asian Development Bank, senior bond,339-00-1, 2.35%, 6/21/27

10,000,000

JPY

108,880

European Investment Bank, senior bond, Reg S, 1.90%, 1/26/26

10,000,000

JPY

103,641

International Finance Corp., senior note, 8.00%, 7/27/27

2,000,000

ZAR

136,286

348,807

Total Foreign Government and Agency Securities (Cost $3,619,335)

3,600,357

Corporate Bonds & Notes 9.7%

Belgium 1.4%

Anheuser-Busch InBev SA/NV, senior note, Reg S, 1.50%, 3/17/25

60,000

EUR

70,962

Czech Republic 2.3%

Energo-Pro AS, senior note, Reg S, 4.00%, 12/07/22

100,000

EUR

110,422

Guernsey 2.4%

Globalworth Real Estate Investments Ltd., senior note, Reg S, 3.00%, 3/29/25

100,000

EUR

115,792

Luxembourg 2.2%

Aroundtown SA, senior note, Reg S, 1.625%, 1/31/28

100,000

EUR

107,849

Netherlands 1.4%

BMW Finance NV, senior note, Reg S, 0.75%, 4/15/24

60,000

EUR

68,388

Total Corporate Bonds & Notes (Cost $485,018)

473,413

Total Investments before Short Term Investments (Cost $4,104,353)

4,073,770

Short Term Investments 6.3%

U.S. Government & Agency Securities (Cost $310,000) 6.3%

FHLB, 4/01/19

310,000

Total Investments (Cost $4,414,353) 89.3%

4,383,770

Other Assets, less Liabilities 10.7%

527,978

Net Assets 100.0%

4,911,748

See abbreviations on page 45.

*The principal amount is stated in U.S. dollars unless otherwise indicated.

^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. These securities have been deemed liquid under guidelines approved by the Fund’s Board of Trustees. At March 31, 2019, the aggregate value of these securities was $239,032, representing 4.9% of net assets.

^cPrincipal amount is stated in 100 Mexican Peso Units.

^dA supranational organization is an entity formed by two or more central governments through international treaties.

^eThe security was issued on a discount basis with no stated coupon rate.



30	Annual Report \| The accompanying notes are an integral part of these financial statements.	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin Liberty Senior Loan ETF



	Year Ended March 31, 2019^a

Per share operating performance (for a share outstanding throughout the year)

Net asset value, beginning of year	$	25.00


Income from investment operations^b:

Net investment income^c		0.81

Net realized and unrealized gains (losses)		(0.21	)


Total from investment operations		0.60


Less distributions from net investment income		(0.75	)


Net asset value, end of year	$	24.85


Total return^d		2.44%

Ratios to average net assets^e

Expenses before waiver and payments by affiliates		1.00%

Expenses net of waiver and payments by affiliates		0.45%

Net investment income		3.90%

Supplemental data

Net assets, end of year (000’s)		$57,165

Portfolio turnover rate^f		10.62%

^aFor the period May 30, 2018 (commencement of operations) to March 31, 2019.

^cBased on average daily shares outstanding.

^eRatios are annualized for periods less than one year.

^fPortfolio turnover rate excludes the value of portfolio securities received or delivered as a result of processing capital share transactions in Creation Units, if any.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	31

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2019

Franklin Liberty Senior Loan ETF



		Country		Principal Amount*		Value
a,b	Senior Floating Rate Interests 75.6%
	Airlines 1.7%
	American Airlines, Inc., 2018 Replacement Term Loans, 4.240%,(1-month USD LIBOR + 1.75%), 6/27/25		United States		980,000	$	952,234

	Application Software 1.5%
c	SS&C Technologies Holdings Europe S.A.R.L., TermB-4 Loans, 4.749%,(1-month USD LIBOR + 2.25%), 4/16/25		Luxembourg		236,013		234,366
c	SS&C Technologies Inc., TermB-3 Loans, 4.749%,(1-month USD LIBOR + 2.25%), 4/16/25		United States		328,253		325,962
c	SS&C Technologies Inc., Term B-5 Loans, 4.749%, (1-month USD LIBOR + 2.25%), 4/16/25		United States		298,476		296,143

							856,471

	Auto Parts & Equipment 2.8%
c,d	Panther BF Aggregator 2 LP, Term Loan B, TBD, 3/18/26		United States		1,600,000		1,583,960

	Broadcasting 2.0%
	Gray Television Inc., Term C Loan, 4.982%,(1-month USD LIBOR + 2.50%), 1/02/26		United States		299,250		296,538
	Sinclair Television Group Inc., Tranche B Term Loans, 4.740%,(1-month USD LIBOR + 2.25%), 1/03/24		United States		831,494		825,258

							1,121,796

	Cable & Satellite 4.5%
	Charter Communications Operating LLC, Term B Loan, 4.500%,(1-month USD LIBOR + 2.00%), 4/30/25		United States		1,140,965		1,134,751
	CSC Holdings LLC, March 2017 Incremental Term Loans, 4.734%,(1-month USD LIBOR + 2.25%), 7/17/25		United States		1,482,490		1,443,946

							2,578,697

	Casinos & Gaming 5.9%
	Aristocrat Technologies Inc., TermB-3 Loans, 4.526%,(3-month USD LIBOR + 1.75%), 10/19/24		United States		1,219,362		1,198,288
	Caesars Resort Collection LLC, Term B Loans, 5.249%,(1-month USD LIBOR + 2.75%), 12/22/24		United States		1,398,707		1,384,971
	Las Vegas Sands LLC, Term B Loans, 4.249%,(1-month USD LIBOR + 1.75%), 3/27/25		United States		823,242		809,864

							3,393,123

	Communications Equipment 1.8%
c,d	CommScope Inc., Initial Term Loans, TBD, 2/06/26		United States		1,000,000		1,002,120

	Data Processing & Outsourced Services 3.3%
c	First Data Corp., 2022D New Dollar Term Loan, 4.486%,(1-month USD LIBOR + 2.00%), 7/08/22		United States		734,285		733,252
c	Global Payments Inc., TermB-4 Loan, 4.249%,(1-month USD LIBOR + 1.75%), 10/17/25		United States		1,187,025		1,176,639

							1,909,891

	Diversified Chemicals 2.2%
	Univar USA Inc., Term B-3 Loans, 4.749%, (1-month USD LIBOR + 2.25%), 7/01/24		United States		1,275,108		1,262,955

	Food Distributors 3.6%
	Aramark Services Inc., US TermB-3 Loan, 4.249%,(1-month USD LIBOR + 1.75%), 3/11/25		United States		997,750		991,508
	US Foods Inc., Initial Term Loans, 4.499%,(1-month USD LIBOR + 2.00%), 6/27/23		United States		1,107,144		1,094,135

							2,085,643



32	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin Liberty Senior Loan ETF(continued)



		Country		Principal Amount*		Value
a,b	Senior Floating Rate Interests (continued)
	Health Care Distributors 0.6%
	Mallinckrodt International Finance SA/CB LLC, 2017 Term B Loans, 5.351%,(3-month USD LIBOR + 2.75%), 9/24/24		Luxembourg		376,979	$	352,476

	Health Care Facilities 1.7%
	HCA Inc., Term Loan B11, 4.249%,(1-month USD LIBOR + 1.75%), 3/17/23		United States		952,589		952,440

	Health Care Services 2.6%
	Air Medical Group Holdings Inc., 2018 New Term Loans, 6.736%,(1-month USD LIBOR + 4.25%), 3/14/25		United States		1,596,353		1,506,060

	Hotels, Resorts & Cruise Lines 1.9%
	Hilton Worldwide Finance LLC, SeriesB-2 Term Loans, 4.236%,(1-month USD LIBOR + 1.75%), 10/25/23		United States		1,085,592		1,083,362

	Independent Power Producers & Energy Traders 1.3%
	NRG Energy Inc., Term Loan B, 4.249%,(3-month USD LIBOR + 1.75%), 6/30/23		United States		772,061		764,642

	Interactive Media & Services 2.6%
	Go Daddy Operating Company LLC, TrancheB-1 Term Loans, 4.749%,(1-month USD LIBOR + 2.00%), 2/15/24		United States		1,468,885		1,461,541

	Metal & Glass Containers 2.1%
	Berry Global Inc., Term Q Loan, 4.610%,(1-month USD LIBOR + 2.00%), 10/01/22		United States		1,227,840		1,222,237

	Other Diversified Financial Services 2.7%
	Asurion LLC, Replacement B-6 Term Loans, 5.499%, (1-month USD LIBOR + 3.00%), 11/03/23		United States		1,546,870		1,539,862

	Packaged Foods & Meats 5.0%
	JBS USA LUX SA, New Initial Term Loans, 4.982%,(3-month USD LIBOR + 2.50%), 10/30/22		United States		1,527,761		1,518,594
	Post Holdings Inc., Series A Incremental Term Loans, 4.490%,(1-month USD LIBOR + 2.00%), 5/24/24		United States		1,345,777		1,337,367

							2,855,961

	Paper Packaging 2.2%
	Reynolds Group Holdings Inc., US Term Loans, 5.249%,(1-month USD LIBOR + 2.75%), 2/05/23		United States		1,271,971		1,258,684

	Pharmaceuticals 7.2%
	Bausch Health Companies Inc., Initial Term Loans, 5.481%,(1-month USD LIBOR + 3.00%), 6/02/25		United States		1,374,455		1,366,115
	Endo Luxembourg Finance Co. I S.A.R.L. and Endo LLC, Initial Term Loans, 6.749%,(1-month USD LIBOR + 4.25%), 4/29/24		United States		1,566,487		1,543,478
	Grifols Worldwide Operations USA Inc., Tranche B Term Loan, 4.660%,(1-week USD LIBOR + 2.25%), 1/31/25		United States		1,220,138		1,213,493

							4,123,086

	Research & Consulting Services 1.3%
	Nielsen Finance LLC,Class B-4 Term Loans, 4.493%,(1-month USD LIBOR + 2.00%), 10/04/23		United States		774,091		762,480

	Restaurants 2.2%
	1011778 BC ULC, TermB-3 Loan, 4.749%,(1-month USD LIBOR + 2.25%), 2/16/24		Canada		1,276,369		1,256,425

	Security & Alarm Services 2.2%
	Prime Security Services Borrower LLC, TermB-1 Loans, 5.249%,(1-month USD LIBOR + 2.75%), 5/02/22		United States		1,250,062		1,239,347

	Specialized Consumer Services 0.5%
	Sabre GLBL Inc., 2018 Other Term B Loans, 4.499%,(1-month USD LIBOR + 2.00%), 2/22/24		United States		267,293		265,823



franklintempleton.com	Annual Report	33

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin Liberty Senior Loan ETF(continued)



		Country		Principal Amount*		Value
a,b	Senior Floating Rate Interests (continued)
	Specialized Finance 1.6%
	Trans Union LLC, 2017 Replacement TermA-2 Loan, 4.249%,(1-month USD LIBOR + 1.75%), 8/09/22		United States		928,149	$	920,898

	Specialty Chemicals 1.9%
	Axalta Coating Systems US Holdings Inc., TermB-3 Dollar Loan, 4.351%,(3-month USD LIBOR + 1.75%), 6/01/24		United States		1,121,088		1,098,736

	Specialty Stores 4.7%
	Harbor Freight Tools USA Inc., Refinancing Loans, 4.999%,(1-month USD LIBOR + 2.50%), 8/18/23		United States		1,260,770		1,234,505
	Michaels Stores Inc., 2018 New Replacement Term B Loan, 4.991%,(1-month USD LIBOR + 2.50%), 1/30/23		United States		1,480,390		1,451,708


							2,686,213

	Technology Hardware, Storage & Peripherals 2.0%
	Western Digital Corp., US TermB-4 Loan, 4.249%,(1-month USD LIBOR + 1.75%), 4/29/23		United States		1,180,289		1,150,776

	Total Floating Rate Loans (Cost $43,775,596)						43,247,939

	Asset-Backed Securities 17.2%
e,f	AMMC CLO 15 Ltd.,2014-15A, CRR, 144A, 4.67%, 1/15/32		United States		1,000,000		985,971
e,f	Atrium XV, 15A, C, 144A, 4.975%, 1/23/31		United States		1,000,000		980,058
	BlueMountain CLO Ltd., ^e,f 2012-2A, CR2, 144A, 4.644%, 11/20/28		United States		1,000,000		981,177
	^e,f 2018-3A, C, 144A, 4.971%, 10/25/30		United States		1,000,000		980,515
e,f	Dryden 45 Senior Loan Fund,2016-45A, CR, 144A, 4.987%, 10/15/30		United States		1,000,000		984,002
e,f	Harbor Park CLO Ltd., 1A, C, 144A, 4.938%, 1/20/31		United States		1,000,000		973,958
e,f	LCM XVIII LP, 2018A, CR, 144A, 4.611%, 4/20/31		United States		1,000,000		959,729
e,f	Octagon Investment Partners 38,2018-1A, A3A, 144A, 4.431%, 7/20/30		United States		1,016,000		1,011,106
e,f	Octagon Loan Funding Ltd.,2014-1A, CRR, 144A, 4.882%, 11/18/31		United States		1,000,000		977,354
e,f	Voya CLO Ltd.,2016-3A, BR, 144A, 4.98%, 10/18/31		United States		1,000,000		981,079

	Total Asset-Backed Securities (Cost $10,015,923)						9,814,949

	Total Investments before Short Term Investments (Cost $53,791,519)						53,062,888

	Short Term Investments 8.0%
	U.S. Government & Agency Securities (Cost $4,575,000) 8.0%
g	FHLB, 4/01/19		United States		4,575,000		4,575,000

	Total Investments (Cost $58,366,519) 100.8%						57,637,888
	Other Assets, less Liabilities (0.8)%						(472,815	)

	Net Assets 100.0%					$	57,165,073

See abbreviations on page 45.

*The principal amount is stated in U.S. dollars unless otherwise indicated.

^aThe coupon rate shown represents the rate at period end.

^bSee Note 1(d) regarding senior floating rate interests.

^cA portion or all of the security purchased on a delayed delivery basis. See Note 1(c).

^dA portion or all of the security represents an unsettled loan commitment. The coupon rate isto-be determined (TBD) at the time of settlement and will be based upon a reference index/floor plus a spread.

^eSecurity 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. These securities have been deemed liquid under guidelines approved by the Fund’s Board of Trustees. At March 31, 2019, the aggregate value of these securities was $9,814,949, representing 17.2% of net assets.

^fThe coupon rate shown represents the rate inclusive of any caps or floors, if applicable, in effect at period end.

^gThe security was issued on a discount basis with no stated coupon rate.



34	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

March 31, 2019



	Franklin Liberty High Yield Corporate ETF		Franklin Liberty International Aggregate Bond ETF			Franklin Liberty Senior Loan ETF
Assets:
Investments in securities:
Cost – Unaffiliated issuers	$	9,915,431	$	4,414,353		$	58,366,519

Value – Unaffiliated issuers	$	10,049,451	$	4,383,770		$	57,637,888
Cash		54,257		81,813			1,216,099
Foreign currency, at value (cost $–, $449,921 and $–, respectively)		—		446,144			—
Receivables:
Investment securities sold		—		—			912,168
Interest		169,568		47,504			250,791
Affiliates		9,762		13,788			1,427

Total assets		10,283,038		4,973,019			60,018,373

Liabilities:
Payables:
Investment securities purchased		—		—			2,574,000
Transfer agent fees		11,700		11,700			10,400
Trustees’ fees and expenses		14		17			151
Distributions to shareholders		51,440		10,508			194,746
Custodian fees		4,087		4,487			37,205
Professional fees		27,010		27,010			27,013
Accrued expenses and other liabilities		8,046		7,549			9,785

Total liabilities		102,297		61,271			2,853,300

Net assets, at value	$	10,180,741	$	4,911,748		$	57,165,073

Net assets consist of:
Paid-in capital	$	10,035,000	$	5,005,000		$	57,928,461
Total distributable earnings (loss)		145,741		(93,252	)		(763,388	)

Net assets, at value	$	10,180,741	$	4,911,748		$	57,165,073

Shares outstanding		400,000		200,000			2,300,000

Net asset value per share	$	25.45	$	24.56		$	24.85



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FINANCIAL STATEMENTS

Statements of Operations

for the year ended March 31, 2019^a



	Franklin Liberty High Yield Corporate ETF			Franklin Liberty International Aggregate Bond ETF			Franklin Liberty Senior Loan ETF
Investment income:
Interest: (net of foreign taxes)^b
Unaffiliated issuers	$	518,053		$	92,257		$	1,470,935

Total investment income		518,053			92,257			1,470,935

Expenses:
Management fees (Note 3a)		52,233			18,361			219,882
Transfer agent fees		11,742			11,742			11,742
Custodian fees		4,100			4,500			41,500
Reports to shareholders		6,400			6,400			6,400
Registration and filing fees		5,000			4,661			6,750
Professional fees		34,872			34,872			34,878
Trustees’ fees and expenses		1,000			500			3,000
Other		13,276			13,712			13,398

Total expenses		128,623			94,748			337,550
Expenses waived/paid by affiliates (Note 3c)		(95,194	)		(80,467	)		(185,324	)

Net expenses		33,429			14,281			152,226

Net investment income		484,624			77,976			1,318,709

Realized and unrealized gains (losses):
Net realized gain (loss) from:
Investments:
Unaffiliated issuers		28,881			2,626			(52,149	)
Foreign currency transactions		—			(52,201	)		—

Net realized gain (loss)		28,881			(49,575	)		(52,149	)

Net change in unrealized appreciation (depreciation) on:
Investments:
Unaffiliated issuers		134,020			(30,583	)		(728,631	)
Translation of other assets and liabilities denominated in foreign currencies		—			(4,370	)		—

Net change in unrealized appreciation (depreciation)		134,020			(34,953	)		(728,631	)

Net realized and unrealized gain (loss)		162,901			(84,528	)		(780,780	)

Net increase (decrease) in net assets resulting from operations	$	647,525		$	(6,552	)	$	537,929

^aFor the period May 30, 2018 (commencement of operations) to March 31, 2019.


^bForeign taxes withheld on interest	$	—	$	1,713	$	—



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FINANCIAL STATEMENTS

Statements of Changes in Net Assets



	Franklin Liberty High Yield Corporate ETF			Franklin Liberty International Aggregate Bond ETF			Franklin Liberty Senior Loan ETF

	Year Ended March 31, 2019^a
Increase (decrease) in net assets:
Operations:
Net investment income	$	484,624		$	77,976		$	1,318,709
Net realized gain (loss)		28,881			(49,575	)		(52,149	)
Net change in unrealized appreciation (depreciation)		134,020			(34,953	)		(728,631	)

Net increase (decrease) in net assets resulting from operations		647,525			(6,552	)		537,929

Distributions to shareholders		(501,784	)		(86,700	)		(1,301,317	)

Capital share transactions: (Note 2)		10,035,000			5,005,000			57,928,461

Net increase (decrease) in net assets		10,180,741			4,911,748			57,165,073
Net assets:
Beginning of year		—			—			—

End of year	$	10,180,741		$	4,911,748		$	57,165,073

^aFor the period May 30, 2018 (commencement of operations) to March 31, 2019.



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Notes to Financial Statements

1. Organization and Significant Accounting Policies

Franklin Templeton ETF Trust (Trust) is registered under the Investment Company Act of 1940 (1940 Act) as anopen-end management investment company, consisting of thirty-eight separate funds, three of which are included in this report (Funds) and applies the specialized accounting and reporting guidance in U.S. Generally Accepted Accounting Principles (U.S. GAAP). Each of the Funds are an exchange traded fund (ETF) and are actively managed, thus they are not designed to track an index. Effective May 30, 2018, the Trust began offering shares of Franklin Liberty High Yield Corporate ETF, Franklin Liberty International Aggregate Bond ETF and Franklin Liberty Senior Loan ETF.

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 as of 4 p.m. Eastern time each day the New York Stock Exchange (NYSE) open for trading. Under compliance policies and procedures approved by the Trust’s Board of Trustees (the Board), the Funds’ administrator has responsibility for oversight of valuation, 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.

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.

b. Foreign Currency Translation



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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. Securities Purchased on a Delayed Delivery Basis

Certain or all Funds purchase securities on a 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. Sufficient assets have been segregated for these securities.

d. 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 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.

e. Income and Deferred Taxes

record an estimated deferred tax liability in an amount that would be payable if the securities were disposed of on the valuation date.

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 and estimated expenses are accrued daily. Amortization of premium and accretion of discount on debt securities are included in interest income. Distributions to shareholders are recorded on theex-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.

g. Accounting 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.



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NOTES TO FINANCIAL STATEMENTS

1. Organization and Significant Accounting Policies(continued)

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

At March 31, 2019, there were an unlimited number of shares authorized (without par value). Transactions in the Funds’ shares were as follows:



	Franklin Liberty High Yield Corporate ETF				Franklin Liberty International Aggregate Bond ETF				Franklin Liberty Senior Loan ETF

	Shares		Amount		Shares		Amount		Shares		Amount

Year ended March 31, 2019^a
Shares sold		400,000	$	10,035,000		200,000	$	5,005,000		2,300,000	$	57,928,461

Net increase (decrease)		400,000	$	10,035,000		200,000	$	5,005,000		2,300,000	$	57,928,461

^aFor the period May 30, 2018 (commencement of operations) to March 31, 2019.

3. Transactions with Affiliates



Subsidiary		Affiliation
Franklin Advisers, Inc. (Advisers)		Investment manager
Franklin Templeton Investment Management Limited (FTIML)		Investment manager
Franklin Templeton Services, LLC (FT Services)		Administrative manager
Franklin Templeton Distributors, Inc. (Distributors)		Principal underwriter



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NOTES TO FINANCIAL STATEMENTS

a. Management Fees

Franklin Liberty High Yield Corporate ETF pays an investment management fee to Advisers based on the average daily net assets of the fund as follows:



Annualized Fee Rate		Net Assets
0.625%		Up to and including $100 million
0.500%		Over $100 million, up to and including $250 million
0.450%		Over $250 million, up to and including $7.5 billion
0.440%		Over $7.5 billion, up to and including $10 billion
0.430%		Over $10 billion, up to and including $12.5 billion
0.420%		Over $12.5 billion, up to and including $15 billion
0.400%		Over $15 billion, up to and including $17.5 billion
0.380%		Over $17.5 billion, up to and including $20 billion
0.360%		Over $20 billion, up to and including $35 billion
0.355%		Over $35 billion, up to and including $50 billion
0.350%		In excess of $50 billion

Franklin Liberty International Aggregate Bond ETF pays an investment management fee to FTIML based on the average daily net assets of the fund as follows:



Annualized Fee Rate		Net Assets
0.450%		Up to and including $1 billion
0.400%		Over $1 billion, up to and including $5 billion
0.350%		Over $5 billion, up to and including $10 billion
0.345%		Over $10 billion, up to and including $15 billion
0.340%		Over $15 billion, up to and including $20 billion
0.335%		In excess of $20 billion

Franklin Liberty Senior Loan ETF pays an investment management fee to Advisers based on the average daily net assets of the fund as follows:



Annualized Fee Rate		Net Assets
0.650%		Up to and including $500 million
0.550%		Over $500 million, up to and including $1 billion
0.500%		Over $1 billion, up to and including $1.5 billion
0.450%		Over $1.5 billion, up to and including $6.5 billion
0.425%		Over $6.5 billion, up to and including $11.5 billion
0.400%		Over $11.5 billion, up to and including $16.5 billion
0.390%		Over $16.5 billion, up to and including $19 billion
0.380%		Over $19 billion, up to and including $21.5 billion
0.370%		In excess of $21.5 billion



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NOTES TO FINANCIAL STATEMENTS

3. Transactions with Affiliates(continued)

a. Management Fees(continued)

For the period ended March 31, 2019, each Fund’s annualized gross effective investment management fee rate based on average daily net assets was as follows:



Franklin Liberty High Yield Corporate ETF		Franklin Liberty International Aggregate Bond ETF		Franklin Liberty Senior Loan ETF
	0.625%		0.450%		0.650%

Effective March 1, 2019, under a subadvisory agreement, Advisers, an affiliate of FTIML, provides subadvisory services to Franklin Liberty International Aggregate Bond ETF. 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 and FTIML, FT Services provides administrative services to the Funds. The fee is paid by Advisers and FTIML, based on each of the Funds’ average daily net assets, and is not an additional expense of the Funds.

c. Waiver and Expense Reimbursements

Advisers has contractually agreed in advance to waive or limit its fees and to assume as its own expense certain expenses otherwise payable by Franklin Liberty High Yield Corporate ETF and Franklin Liberty Senior Loan ETF so that the expenses (including acquired fund fees and expenses) for each of the Funds do not exceed 0.40% and 0.45%, respectively, based on the average net assets (other than certainnon-routine expenses or costs, including those relating to litigation, indemnification, reorganizations, and liquidations) until July 31, 2019. FTIML has contractually agreed in advance to waive or limit its fees and to assume as its own expense certain expenses otherwise payable by Franklin Liberty International Aggregate Bond ETF so that the expenses (including acquired fund fees and expenses) of the Fund do not exceed 0.35% based on the average net assets (other than certainnon-routine expenses or costs, including those relating to litigation, indemnification, reorganizations, and liquidations) until July 31, 2019. Total expenses waived or paid are not subject to recapture subsequent to the Funds’ fiscal year end.

d. Other Affiliated Transactions

At March 31, 2019, the shares of the Funds were owned by the following entities:



Fund	Shares		Percentage of Outstanding Shares^a

Franklin Liberty High Yield Corporate ETF
Franklin Resources Inc.		115,000		28.8%


Franklin Liberty International Aggregate Bond ETF
Franklin Resources Inc.		110,000		55.0%


Franklin Liberty Senior Loan ETF
Franklin Floating Rate Master Series		1,093,000		47.5%
Franklin Total Return Fund		914,900		39.8%

Total		2,007,900		87.3%

^aInvestment activities of significant shareholders could have a material impact on the Funds.



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NOTES TO FINANCIAL STATEMENTS

4. Income Taxes

For tax purposes, capital losses may be carried over to offset future capital gains, if any. At March 31, 2019, the capital loss carryforwards were as follows:



	Franklin Liberty Senior Loan ETF
Capital loss carryforwards not subject to expiration:
Short term	$	52,758
Long term		—

Total capital loss carryforwards	$	52,758

The tax character of distributions paid during the year ended March 31, 2019 were as follows:



	Franklin Liberty High Yield Corporate ETF		Franklin Liberty International Aggregate Bond ETF		Franklin Liberty Senior Loan ETF
Distributions paid from ordinary income	$	501,784	$	86,700	$	1,301,317

For tax purposes, the Funds may elect to defer any portion of a late-year ordinary loss to the first day of the following fiscal year. At March 31, 2019, Franklin Liberty International Aggregate Bond ETF deferred late-year ordinary losses of $23,917.

At March 31, 2019, the cost of investments, net unrealized appreciation (depreciation) and undistributed ordinary income for income tax purposes were as follows:



	Franklin Liberty High Yield Corporate ETF			Franklin Liberty International Aggregate Bond ETF			Franklin Liberty Senior Loan ETF
Cost of investments	$	9,924,669		$	4,438,227		$	58,375,597

Unrealized appreciation	$	205,735		$	24,331		$	21,606
Unrealized depreciation		(80,953	)		(78,788	)		(759,315	)

Net unrealized appreciation (depreciation)	$	124,782		$	(54,457	)	$	(737,709	)

Distributable earnings – undistributed ordinary income	$	72,399		$	—		$	221,825

Differences between income and/or capital gains as determined on a book basis and a tax basis are primarily due to differing treatments of bond discounts and premiums.

5. Investment Transactions

Purchases and sales of investments (excluding short term securities andin-kind transactions, if any) for the year ended March 31, 2019, were as follows:



	Franklin Liberty High Yield Corporate ETF		Franklin Liberty International Aggregate Bond ETF		Franklin Liberty Senior Loan ETF
Purchases	$	11,879,617	$	5,859,858	$	57,322,452
Sales	$	2,100,298	$	1,708,733	$	3,474,866



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NOTES TO FINANCIAL STATEMENTS

6. Credit Risk

At March 31, 2019, Franklin Liberty High Yield Corporate ETF, Franklin Liberty International Aggregate Bond ETF, and Franklin Liberty Senior Loan ETF had 96.9%, 7.8%, and 68.2%, 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.

7. Global Credit Facility

The Funds, except for Franklin Liberty International Aggregate Bond Fund 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 billion (Global Credit Facility) which the Funds entered into on February 8, 2019 and matures on February 7, 2020. 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 shall, in addition to interest charged on any borrowings made by the Funds and other costs incurred by the Funds, pay 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. These fees are reflected in other expenses in the Statement of Operations. During the year ended March 31, 2019, the Fund did not use the Global Credit Facility.

8. Concentration of Risk

9. Fair Value Measurements

•

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.

At March 31, 2019, all of the Fund’s investments in financial instruments carried at fair value were valued using Level 2 inputs.

10. New Accounting Pronouncements



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NOTES TO FINANCIAL STATEMENTS

which continues to be amortized to maturity. The ASU is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2018. Management has reviewed the requirements and believes the adoption of this ASU will not have a material impact on the financial statements.

11. 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		Currency
CLO	Collateralized Loan Obligation	AUD	Australian Dollar
FHLB	Federal Home Loan Bank Rate	CAD	Canadian Dollar
LIBOR	London InterBank Offered	EUR	Euro
PIK	Payment-In-Kind	JPY	Japanese Yen
TBD	To be determined	IDR	Indonesian Rupiah
		MXN	Mexican Peso
		PLN	Polish Zloty
		USD	United States Dollar
		ZAR	South African Rand



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FRANKLIN TEMPLETON ETF TRUST

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of Franklin Templeton ETF Trust and Shareholders of Franklin Liberty High Yield Corporate ETF, Franklin Liberty International Aggregate Bond ETF and Franklin Liberty Senior Loan ETF

Opinions on the Financial Statements

We have audited the accompanying statements of assets and liabilities, including the statements of investments, of Franklin Liberty High Yield Corporate ETF, Franklin Liberty International Aggregate Bond ETF and Franklin Liberty Senior Loan ETF(the “Funds”) as ofMarch 31, 2019, the related statementsof operationsand changes in net assets, including the related notes, and the financial highlights for the period May 30, 2018 (commencement of operations) through March 31, 2019. In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of March 31, 2019, and the results of each of their operations, changes in each of their net assets, and each of the financial highlights for the period May 30, 2018 (commencement of operations) through March 31, 2019 in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinions

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of March 31, 2019 by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinions.

PricewaterhouseCoopers LLP

San Francisco, California

May 20, 2019

We have served as the auditor of one or more investment companies in the Franklin Templeton funds since 1948.



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Tax information (unaudited)



Franklin Liberty High Yield Corporate ETF	Franklin Liberty International Aggregate Bond ETF
$9,630		$24,991

Under Section 871(k)(1)(C) of the Internal Revenue Code, the Funds hereby report the maximum amount allowable but no less than the following amounts as interest related dividends for purposes of the tax imposed under Section 871(a)(1)(A) of the Internal Revenue Code for the fiscal year ended March 31, 2019:



Franklin Liberty High Yield Corporate ETF	Franklin Liberty International Aggregate Bond ETF		Franklin Liberty Senior Loan ETF
$441,807		$16,785		$1,100,087

At March 31, 2019, more than 50% of the Franklin Liberty International Aggregate Bond ETF’s total assets were invested in securities of foreign issuers. In most instances, foreign taxes were withheld from income paid to the Fund on these investments. The Fund elects to treat foreign taxes paid as allowed under Section 853 of the Internal Revenue Code. This election will allow shareholders of record as of the April 2019 distribution to treat their proportionate share of foreign taxes paid by the Fund as having been paid directly by them. The shareholder shall consider these amounts as foreign taxes paid in the tax year in which they receive the Fund distribution.



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FRANKLIN TEMPLETON ETF TRUST

Board Members and Officers

Independent Board Members



Name, Year of Birth and Address	Position	Length of Time Served	Number of Portfolios in Fund Complex Overseen by Board Member*	Other Directorships Held During at Least the Past 5 Years

Rohit Bhagat (1964) One Franklin Parkway San Mateo, CA 94403-1906	Lead Independent Trustee	Since 2016	39	Zentific Investment Management (hedge fund) (2015-present), Axis Bank (2013-present), AssetMark Financial Holdings, Inc. (investment solutions) (2018-present) and CapFloat Financial Services Pvt., Ltd.(non-banking finance company) (2018-present).

Principal Occupation During at Least the Past 5 Years:
Managing Member, Mukt Capital, LLC (private investment firm) (2014-present); Advisor, Optimal Asset Management (investment technology and advisory services company) (2015-present); andformerly, Chairman, Asia Pacific, BlackRock (2009-2012); Global Chief Operating Officer, Barclays Global Investors (investment management) (2005-2009); and Senior Partner, The Boston Consulting Group (management consulting) (1992-2005).

Anantha Pradeep (1963) One Franklin Parkway San Mateo, CA 94403-1906	Trustee	Since 2016	39	None

Principal Occupation During at Least the Past 5 Years:
Chief Executive Officer, Smilable, Inc. (technology company) (2014-present); Chief Executive Officer, MachineVantage (technology company) (2018-present); Founder and Managing Partner, Consult Meridian, LLC (consulting company) (2009-present); andformerly, Founder, BoardVantage (board portal solutions provider delivering paperless process for boards and leadership) (2000-2002).

Interested Board Members and Officers



Name, Year of Birth and Address	Position	Length of Time Served	Number of Portfolios in Fund Complex Overseen by Board Member*	Other Directorships Held During at Least the Past 5 Years

**Jennifer M. Johnson (1964) One Franklin Parkway San Mateo, CA 94403-1906	Chairperson of the Board and Trustee	Since 2016	46	None

Principal Occupation During at Least the Past 5 Years:
President and Chief Operating Officer, Franklin Resources, Inc.; officer and/or director or trustee, as the case may be, of some of the other subsidiaries of Franklin Resources, Inc. and of four of the investment companies in Franklin Templeton; andformerly, Chief Operating Officer and Executive Vice President, Franklin Resources, Inc. (1994-2015); Executive Vice President of Operations and Technology, Franklin Resources, Inc. (2005-2010); and Senior Vice President, Franklin Resources, Inc. (2003-2005).

Alison E. Baur (1964) One Franklin Parkway San Mateo, CA 94403-1906	Vice President	Since 2016	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Deputy General Counsel, Franklin Templeton; and officer of some of the other subsidiaries of Franklin Resources, Inc. and of 44 of the investment companies in Franklin Templeton.



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Interested Board Members and Officers(continued)



Name, Year of Birth and Address	Position	Length of Time Served	Number of Portfolios in Fund Complex Overseen by Board Member*	Other Directorships Held During at Least the Past 5 Years

Gaston Gardey (1967) One Franklin Parkway San Mateo, CA 94403-1906	Treasurer, Chief Financial Officer and Chief Accounting Officer	Since 2015	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Treasurer, U.S. Fund Administration & Reporting and officer of 28 of the investment companies in Franklin Templeton.

Aliya S. Gordon (1973) One Franklin Parkway San Mateo, CA 94403-1906	Vice President	Since 2016	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Senior Associate General Counsel and officer of 44 of the investment companies in Franklin Templeton.

Steven J. Gray (1955) One Franklin Parkway San Mateo, CA 94403-1906	Vice President	Since 2016	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Senior Associate General Counsel, Franklin Templeton; Vice President, Franklin Templeton Distributors, Inc. and FASA, LLC; and officer of 44 of the investment companies in Franklin Templeton.

Matthew T. Hinkle (1971) One Franklin Parkway San Mateo, CA 94403-1906	Chief Executive Officer – Finance and Administration	Since 2017	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Senior Vice President, Franklin Templeton Services, LLC; officer of 44 of the investment companies in Franklin Templeton; andformerly, Vice President, Global Tax (2012-April 2017) and Treasurer/Assistant Treasurer, Franklin Templeton (2009-2017).

Robert Lim (1948) One Franklin Parkway San Mateo, CA 94403-1906	VicePresident-AML Compliance	Since 2016	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Vice President, Franklin Templeton Companies, LLC; Chief Compliance Officer, Franklin Templeton Distributors, Inc. and Franklin Templeton Investor Services, LLC; and officer of 44 of the investment companies in Franklin Templeton.

Kimberly H. Novotny (1972) 300 S.E. 2nd Street Fort Lauderdale, FL 33301-1923	Vice President	Since 2016	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Associate General Counsel, Franklin Templeton; Vice President and Corporate Secretary, Fiduciary Trust International of the South; Vice President, Templeton Investment Counsel, LLC; Assistant Secretary, Franklin Resources, Inc.; and officer of 44 of the investment companies in Franklin Templeton.



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FRANKLIN TEMPLETON ETF TRUST

Interested Board Members and Officers(continued)



Name, Year of Birth and Address	Position	Length of Time Served	Number of Portfolios in Fund Complex Overseen by Board Member*	Other Directorships Held During at Least the Past 5 Years

Patrick O’Connor (1967) One Franklin Parkway San Mateo, CA 94403-1906	President and Chief Executive Officer– Investment Management	Since 2016	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
President and Chief Investment Officer, Franklin Advisory Services, LLC; Senior Vice President, Franklin Advisers, Inc.; officer of two of the investment companies in Franklin Templeton; andformerly, Managing Director, Head of iShares Product Canada, BlackRock (1998-2014).

Robert C. Rosselot (1960) 300 S.E. 2nd Street Fort Lauderdale, FL 33301-1923	Chief Compliance Officer	Since 2016	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Director, Global Compliance, Franklin Templeton; Vice President, Franklin Templeton Companies, LLC; officer of 44 of the investment companies in Franklin Templeton; andformerly, Senior Associate General Counsel, Franklin Templeton (2007-2013); and Secretary and Vice President, Templeton Group of Funds (2004-2013).

Navid J. Tofigh (1972) One Franklin Parkway San Mateo, CA 94403-1906	Vice President and Secretary	Since 2015	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Associate General Counsel and officer of 44 of the investment companies in Franklin Templeton.

Craig S. Tyle (1960) One Franklin Parkway San Mateo, CA 94403-1906	Vice President	Since 2016	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
General Counsel, Executive Vice President and Secretary, Franklin Resources, Inc.; and officer of some of the other subsidiaries of Franklin Resources, Inc. and of 44 of the investment companies in Franklin Templeton.

Lori A. Weber (1964) 300 S.E. 2nd Street Fort Lauderdale, FL 33301-1923	Vice President	Since 2016	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Senior Associate General Counsel, Franklin Templeton; Assistant Secretary, Franklin Resources, Inc.; Vice President and Secretary, Templeton Investment Counsel, LLC; and officer of 44 of the investment companies in Franklin Templeton.

Note 1: Effective May 1, 2018, Susan R. Thompson ceased to be a trustee of the Trust.

Note 2: Officer information is current as of the date of this report. It is possible that after this date, information about officers may change.



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FRANKLIN TEMPLETON ETF TRUST

Shareholder Information

Proxy Voting Policies and Procedures

Quarterly Statement of Investments

The Trust files a complete statement of investments with the U.S. Securities and Exchange Commission for the first and third quarters for each fiscal year as an exhibit to its report on FormN-PORT. Shareholders may view the filedForm N-PORT by visiting the Commission’s website at sec.gov. The filed form may also be viewed and copied at the Commission’s Public Reference Room in Washington, DC. Information regarding the operations of the Public Reference Room may be obtained by calling(800) SEC-0330.

Premium/Discount Information



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To help ensure we provide you with quality service, all calls to and from our service areas are monitored and/or recorded.

Item 2. Code of Ethics.

(a) The Registrant has adopted a code of ethics that applies to its principal executive officers and principal financial and accounting officer.

(d) N/A

(f) Pursuant to Item 12(a)(1), the Registrant is attaching as an exhibit a copy of its code of ethics that applies to its principal executive officers and principal financial and accounting officer.

Item 3. Audit Committee Financial Expert.

(a)(1) The Registrant has an audit committee financial expert serving on its audit committee.

(2) The audit committee financial expert is Rohit Bhagat and he is “independent” as defined under the relevant Securities and Exchange Commission Rules and Releases.

Item 4. Principal Accountant Fees and Services.

(a) Audit Fees

The aggregate fees paid to the principal accountant for professional services rendered by the principal accountant for the audit of the registrant’s annual financial statements or for services that are normally provided by the principal accountant in connection with statutory and regulatory filings or engagements were $827,925 for the fiscal year ended March 31, 2019 and $703,891 for the fiscal year ended March 31, 2018.

(b) Audit-Related Fees

There were no fees paid to the principal accountant for assurance and related services rendered by the principal accountant to the registrant that are reasonably related to the performance of the audit of the registrant’s financial statements and are not reported under paragraph (a) of Item 4.

There were no fees paid to the principal accountant for assurance and related services rendered by the principal accountant to the registrant’s investment adviser and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant that are reasonably related to the performance of the audit of their financial statements.

There were no fees paid to the principal accountant for professional services rendered by the principal accountant to the registrant for tax compliance, tax advice and tax planning.

The aggregate fees paid to the principal accountant for professional services rendered by the principal accountant to the registrant’s investment adviser and any entity controlling, controlled by or under

common control with the investment adviser that provides ongoing services to the registrant for tax compliance, tax advice and tax planning were $204,500 for the fiscal year ended March 31, 2019 and $32,500 for the fiscal year ended March 31, 2018. The services for which these fees were paid included tax compliance services related toyear-end, professional fees in connection with an Indonesia withholding tax refund claim and tax consulting services related to the operating agreement and term sheet for the launch of a new fund.

(d) All Other Fees

There were no fees paid to the principal accountant for products and services rendered by the principal accountant to the registrant not reported in paragraphs (a)-(c) of Item 4.

The aggregate fees paid to the principal accountant for products and services rendered by the principal accountant to the registrant’s investment adviser and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant not reported in paragraphs (a)-(c) of Item 4 were $66,500 for the fiscal year ended March 31, 2019 and $62,225 for the fiscal year ended March 31, 2018. The services for which these fees were paid included the issuance of an Auditor’s Certificate for South Korean regulatory shareholders disclosures, assets under management certification, compliance examination for Investment Advisor Act rule204-2 and206-4(2), account maintenance project and training on partnership tax accounting and capital account maintenance.

(e) (1) The registrant’s audit committee is directly responsible for approving the services to be provided by the auditors, including:

(i)pre-approval of all audit and audit related services;

(ii)pre-approval of allnon-audit related services to be provided to the Fund by the auditors;

(iii)pre-approval of allnon-audit related services to be provided to the registrant by the auditors to the registrant’s investment adviser or to any entity that controls, is controlled by or is under common control with the registrant’s investment adviser and that provides ongoing services to the registrant where thenon-audit services relate directly to the operations or financial reporting of the registrant; and

(iv) establishment by the audit committee, if deemed necessary or appropriate, as an alternative to committeepre-approval of services to be provided by the auditors, as required by paragraphs (ii) and (iii) above, of policies and procedures to permit such services to bepre-approved by other means, such as through establishment of guidelines or by action of a designated member or members of the committee; provided the policies and procedures are detailed as to the particular service and the committee is informed of each service and such policies and procedures do not include delegation of audit committee responsibilities, as contemplated under the Securities Exchange Act of 1934, to management; subject, in the case of (ii) through (iv), to any waivers, exceptions or exemptions that may be available under applicable law or rules.

(e) (2) None of the services provided to the registrant described in paragraphs (b)-(d) of Item 4 were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule2-01 of regulationS-X.

(f) No disclosures are required by this Item 4(f).

(g) The aggregatenon-audit fees paid to the principal accountant for services rendered by the principal accountant to the registrant and the registrant’s investment adviser and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant were $271,000 for the fiscal year ended March 31, 2019 and $94,725 for the fiscal year ended March 31, 2018.

(h) The registrant’s audit committee of the board has considered whether the provision ofnon-audit services that were rendered to the registrant’s investment adviser (not including anysub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were notpre-approved pursuant to paragraph (c)(7)(ii) of Rule2-01 of RegulationS-X is compatible with maintaining the principal accountant’s independence.

Item 5. Audit Committee of Listed Registrants. N/A

Item 6. Schedule of Investments. N/A

Item 7. Disclosure of Proxy Voting Policies and Procedures forClosed-End Management Investment Companies. N/A

Item 8. Portfolio Managers ofClosed-End Management Investment Companies. N/A

Item 9. Purchases of Equity Securities byClosed-End Management Investment Company and Affiliated Purchasers. N/A

Item 10. 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 11. 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 onForm N-CSR, 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 12. Disclosure of Securities Lending Activities forClosed-End Management Investment Company. N/A

Item 13. Exhibits.

(a) (1) Code of Ethics

(a)(2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 of Matthew T. Hinkle, Chief Executive Officer—Finance and Administration, and Gaston Gardey, Chief Financial Officer and Chief Accounting Officer

(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 of Matthew T. Hinkle, Chief Executive Officer—Finance and Administration, and Gaston Gardey, Chief Financial Officer and Chief Accounting Officer

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, thereunto duly authorized.


FRANKLIN TEMPLETON ETF TRUST

By		/s/ MATTHEW T. HINKLE
		Matthew T. Hinkle
		Chief Executive Officer – Finance and Administration

Date May 24, 2019

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/ MATTHEW T. HINKLE
		Matthew T. Hinkle
		Chief Executive Officer – Finance and Administration

Date May 24, 2019


By		/s/ GASTON GARDEY
		Gaston Gardey
		Chief Financial Officer and Chief Accounting Officer

Date May 24, 2019

Annual Report
Franklin Templeton ETF Trust

Investment Manager

Distributor

Investor Services

Franklin Advisory Services, LLC

Franklin Templeton Distributors, Inc.
(800) DIAL BEN^®/342-5236
franklintempleton.com

Transfer Agent
State Street Bank and
Trust Company
1 Heritage Drive
Mail Stop OHD0100
North Quincy, MA 02171

© 2019 Franklin Templeton Investments. All rights reserved.

ETF A 05/19