Franklin High Yield Corporate ETF NCSRS Certified semi-annual shareholder report (management investment company)

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

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORMN-CSRS

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: 09/30/19

Item 1.

Reports to Stockholders.

SEMIANNUAL REPORT

FRANKLIN TEMPLETON

ETF TRUST

September 30, 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

Semiannual Report

Economic and Market Overview			2
Franklin LibertyQ Emerging Markets ETF			3
Franklin LibertyQ Global Dividend ETF			9
Franklin LibertyQ Global Equity ETF			15
Franklin LibertyQ International Equity Hedged ETF			21
Financial Highlights and Statements of Investments			27
Financial Statements			65
Notes to Financial Statements			69
Tax Information			82
Shareholder Information			83

Visitfranklintempleton.com/ investor/investments-and-solutions/investment-options/etfs/ for fund updates and documents.


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



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SEMIANNUAL REPORT

Economic and Market Overview

The global economy expanded during the six months ended September 30, 2019, despite weakness in certain regions. Global stocks were aided by upbeat economic data in some regions, encouraging corporate earnings reports, periods of optimism about a potential U.S.-China trade deal and monetary policy easing by major central banks. The U.S. Federal Reserve’s (Fed’s) patient approach to its monetary policy early in the period, rate cuts in July and September, and indications it will act appropriately to sustain U.S. economic expansion and achieve its inflation objective aided market sentiment.

However, markets also reflected concerns about political uncertainties in the U.S. (including the impeachment inquiry into U.S. President Donald Trump), geopolitical tensions in the eurozone and other regions, and the impact of U.S. trade disputes with China and other trading partners on global growth and corporate earnings. In this environment, global developed and emerging market stocks, as measured by the MSCI All Country World Index, posted a +3.91% total return for the six months under review.¹

The U.S. economy grew during thesix-month period. However, the economy moderated in 2019’s second and third quarters, due partly to weakness in inventory investment and business investment. The manufacturing sector expanded during the period’s first four months, but contracted in August and September 2019. The services sector continued to expand throughout the period, although the rate of expansion slowed in September. The unemployment rate decreased from 3.8% in March 2019 to 3.5% atperiod-end.² The annual inflation rate, as measured by the Consumer Price Index, decreased from 1.9% in March 2019 to 1.7% atperiod-end.²

At its July 2019 meeting, the Fed lowered its target range for the federal funds rate for the first time since December 2008, to 2.00%–2.25%, citing muted inflation pressures and the potential effects of global trade tensions on economic growth. Furthermore, the Fed ended its balance sheet normalization program earlier than previously indicated. In September, the Fed further lowered the federal funds target rate range to 1.75%–2.00%, reiterating the rationale cited at the July 2019 meeting.

In Europe, the U.K.’s quarterly gross domestic product (GDP) growth contracted in 2019’s second quarter, as Brexit uncertainties weighed on business sentiment. The Bank of England kept its key policy rate unchanged during thesix-month period and lowered its GDP forecasts for 2019 and 2020. The eurozone’s quarterly GDP growth moderated in 2019’s second quarter and stabilized in the third quarter. The bloc’s annual inflation rate ended the period lower. The European Central Bank (ECB) kept its benchmark interest rate unchanged during the period. In September, the ECB announced it will start a new bond-buying program in November in an effort to boost the economy and increase inflation.

In Asia, Japan’s quarterly GDP growth moderated in 2019’s second quarter. The Bank of Japan (BOJ) left its benchmark interest rate unchanged and continued its stimulus measures during thesix-month period. At its July and September meetings, the BOJ expressed its openness to increase stimulus in an effort to sustain economic growth and achieve its inflation goal.

In larger emerging markets, Brazil’s quarterly GDP growth accelerated in 2019’s second quarter. The Central Bank of Brazil lowered its benchmark interest rate twice during thesix-month period. Russia’s annual GDP growth accelerated in 2019’s second quarter. The Bank of Russia cut its key interest rate three times during the period. China’s annual GDP growth moderated in 2019’s second and third quarters. The People’s Bank of China implemented an interest-rate reform in August, designating the loan prime rate as the new benchmark for household and business loans, effectively lowering interest rates in August and September. Overall, global emerging market stocks, as measured by the MSCI Emerging Markets Index, posted a-3.40% total return during the six months under review.¹

The foregoing information reflects our analysis and opinions as of September 30, 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 semiannual report for Franklin LibertyQ Emerging Markets ETF covers the period ended September 30, 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 the six-month period, the Fund posted cumulative total returns of -1.47% based on market price and -1.40% based on net asset value (NAV). In comparison, the LibertyQ EM Index posted a -1.19% total return for the same period, while the MSCI EM Index (Net Returns) posted a -3.66% 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 9/30/19

*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 28.



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FRANKLIN LIBERTYQ EMERGING MARKETS ETF


Top 10 Sectors/Industries

9/30/19

	% of Total Net Assets
Banks		16.5%
Oil, Gas & Consumable Fuels		15.3%
Wireless Telecommunication Services		6.6%
Chemicals		5.5%
Diversified Telecommunication Services		4.9%
Metals & Mining		4.6%
IT Services		4.0%
Semiconductors & Semiconductor Equipment		3.8%
Food & Staples Retailing		3.0%
Textiles, Apparel & Luxury Goods		2.8%


Top 10 Countries

9/30/19

	% of Total Net Assets
China		18.2%
Taiwan		12.6%
Russia		11.5%
India		11.4%
South Korea		11.0%
Brazil		7.1%
Thailand		4.5%
South Africa		3.3%
Indonesia		3.2%
Qatar		3.1%


Top 10 Holdings

9/30/19

Company *Sector/Industry, Country*	% of Total Net Assets
MMC Norilsk Nickel PJSC Metals & Mining, Russia		1.2%
Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk, B Diversified Telecommunication Services, Indonesia		1.2%
Advanced Info Service PCL Wireless Telecommunication Services, Thailand		1.2%
Itau Unibanco Holding SA Banks, Brazil		1.2%
Samsung Electronics Co. Ltd. Technology Hardware, Storage & Peripherals,South Korea		1.2%
Hindustan Unilever Ltd. Household Products, India		1.2%
Itausa-Investimentos Itau SA Banks, Brazil		1.2%
Surgutneftegas PJSC Oil, Gas & Consumable Fuels, Russia		1.1%
SK Hynix Inc. Semiconductors & Semiconductor Equipment, South Korea		1.1%
Anta Sports Products Ltd. Textiles, Apparel & Luxury Goods, China		1.1%



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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.

LOGO

Dina Ting, CFA


		Louis Hsu, CFA

		Portfolio Management Team

The foregoing information reflects our analysis, opinions and portfolio holdings as of September 30, 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.

CFA^® is a trademark owned by CFA Institute.



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FRANKLIN LIBERTYQ EMERGING MARKETS ETF

Performance Summary as of September 30, 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 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 9/30/19¹

Cumulative Total Return²

Average Annual Total Return²

Based on

NAV³

Based on

market price⁴

Based on

NAV³

Based on

market price⁴

6-Months

-1.40%

-1.47%

-1.40%

-1.47%

1-Year

-1.99%

-1.55%

-1.99%

-1.55%

3-Year

+12.01%

+10.74%

+3.85%

+3.46%

Since Inception (6/1/16)

+22.18%

+21.96%

+6.20%

+6.14%

See page 7 for Performance Summary footnotes.



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FRANKLIN LIBERTYQ EMERGING MARKETS ETF

PERFORMANCE SUMMARY

Distributions(4/1/19–9/30/19)

Net Investment
Income

$0.2875

Total Annual Operating Expenses⁵

0.45%

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. 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 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 4/1/19		Ending Account Value 9/30/19		Expenses Paid During Period 4/1/19–9/30/19^1,2		Ending Account Value 9/30/19		Expenses Paid During Period 4/1/19–9/30/19^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	986.00	$	2.58	$	1,022.40	$	2.63		0.52	%³

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 183/366 to reflect theone-half year period.

2. Reflects expenses after fee waivers and expense reimbursements.

3. Effective 08/01/19, the unified management fee changed to 0.45%. Had such unified management fee been in effect for the full period, the expenses paid would have been $2.23 based upon the Fund’s actual performance and $2.28 based upon a hypothetical 5% return.



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Franklin LibertyQ Global Dividend ETF

This semiannual report for Franklin LibertyQ Global Dividend ETF covers the period ended September 30, 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 the six-month period, the Fund posted cumulative total returns of +5.39% based on market price and +5.35% based on net asset value (NAV). In comparison, the LibertyQ Global Dividend Index posted a +5.32% total return for the same period, while the MSCI ACWI ex REITs Index (Net Returns) posted a +3.47% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 12.

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 9/30/19

*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 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 37.



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FRANKLIN LIBERTYQ GLOBAL DIVIDEND ETF


Top 10 Sectors/Industries

9/30/19

	% of Total Net Assets
Banks		16.9%
Pharmaceuticals		10.2%
Insurance		6.8%
Hotels, Restaurants & Leisure		5.8%
Semiconductors & Semiconductor Equipment		5.8%
Diversified Telecommunication Services		5.0%
Capital Markets		4.8%
Household Products		4.5%
IT Services		3.9%
Personal Products		3.8%


Top 10 Countries

9/30/19

	% of Total Net Assets
United States		37.0%
Australia		10.1%
United Kingdom		9.8%
Switzerland		7.2%
Canada		6.9%
Japan		3.3%
Finland		2.8%
Germany		2.8%
Taiwan		2.7%
South Africa		2.6%


Top 10 Holdings

9/30/19

Company *Sector/Industry, Country*	% of Total Net Assets
National Australia Bank Ltd. Banks, Australia		2.3%
United Parcel Service Inc., B Air Freight & Logistics, United States		2.3%
Zurich Insurance Group AG Insurance, Switzerland		2.3%
Lockheed Martin Corp. Aerospace & Defense, United States		2.2%
The Procter & Gamble Co. Household Products, United States		2.2%
Intel Corp. Semiconductors & Semiconductor Equipment,United States		2.2%
NTT DOCOMO Inc. Wireless Telecommunication Services, Japan		2.2%
Westpac Banking Corp. Banks, Australia		2.2%
Taiwan Semiconductor Manufacturing Co. Ltd.Semiconductors & Semiconductor Equipment, Taiwan		2.1%
LyondellBasell Industries NV, A Chemicals, United States		2.1%



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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.

LOGO

Dina Ting, CFA


		Louis Hsu, CFA

		Portfolio Management Team



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FRANKLIN LIBERTYQ GLOBAL DIVIDEND ETF

Performance Summary as of September 30, 2019

Performance as of 9/30/19¹

Cumulative Total Return²

Average Annual Total Return²

Based on

NAV³

Based on

market price⁴

Based on

NAV³

Based on

market price⁴

6-Months

+5.35%

+5.39%

+5.35%

+5.39%

1-Year

+7.08%

+7.31%

+7.08%

+7.31%

3-Year

+23.86%

+23.29%

+7.39%

+7.23%

Since Inception (6/1/16)

+28.00%

+27.95%

+7.69%

+7.68%

See page 13 for Performance Summary footnotes.



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FRANKLIN LIBERTYQ GLOBAL DIVIDEND ETF

PERFORMANCE SUMMARY

Distributions(4/1/19–9/30/19)

Net Investment
Income

$0.5821

Total Annual Operating Expenses⁵

0.45%

All investments involve risks, including possible loss of principal. Stock prices fluctuate, sometimes rapidly and dramatically, due to factors affecting individual companies, particular industries or sectors, or general market conditions. 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 quality-factor stock selection process and dividend screens of the Underlying Index will enhance performance. Exposure to investment factors and the use of dividend screens 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 transaction 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.



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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 4/1/19		Ending Account Value 9/30/19		Expenses Paid During Period 4/1/19–9/30/19^1,2		Ending Account Value 9/30/19		Expenses Paid During Period 4/1/19–9/30/19^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	1,053.50	$	2.31	$	1,022.75	$	2.28		0.45	%

2. Reflects expenses after fee waivers and expense reimbursements.



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Franklin LibertyQ Global Equity ETF

This semiannual report for Franklin LibertyQ Global Equity ETF covers the period ended September 30, 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 the six-month period, the Fund posted cumulative total returns of +3.89% based on market price and +3.70% based on net asset value (NAV). In comparison, the LibertyQ Global Equity Index posted a +3.73% total return for the same period, while the MSCI ACWI (Net Returns) posted a +3.59% total return.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 18.

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 9/30/19

*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 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 42.



franklintempleton.com	Semiannual Report	15

FRANKLIN LIBERTYQ GLOBAL EQUITY ETF


Top 10 Sectors/Industries

9/30/19

	% of Total Net Assets
Pharmaceuticals		7.9%
Semiconductors & Semiconductor Equipment		6.8%
Specialty Retail		5.1%
Banks		4.9%
Oil, Gas & Consumable Fuels		4.6%
IT Services		4.5%
Diversified Telecommunication Services		4.3%
Biotechnology		3.7%
Metals & Mining		3.3%
Technology Hardware, Storage & Peripherals		2.9%


Top 10 Countries

9/30/19

	% of Total Net Assets
United States		53.2%
United Kingdom		6.9%
Australia		6.5%
Japan		5.0%
China		2.9%
Switzerland		2.7%
South Korea		2.7%
Canada		2.6%
Taiwan		2.3%
Russia		2.1%


Top 10 Holdings

9/30/19

Company *Sector/Industry, Country*	% of Total Net Assets
The Home Depot Inc. Specialty Retail, United States		1.2%
AT&T Inc. Diversified Telecommunication Services,United States		1.1%
Texas Instruments Inc. Semiconductors & Semiconductor Equipment,United States		1.1%
Apple Inc. Technology Hardware, Storage & Peripherals,United States		1.1%
Samsung Electronics Co. Ltd. Technology Hardware, Storage & Peripherals,South Korea		1.1%
The Procter & Gamble Co. Household Products, United States		1.1%
Amgen Inc. Biotechnology, United States		1.1%
Intel Corp. Semiconductors & Semiconductor Equipment, United States		1.1%
Starbucks Corp. Hotels, Restaurants & Leisure, United States		1.1%
Taiwan Semiconductor Manufacturing Co. Ltd.Semiconductors & Semiconductor Equipment, Taiwan		1.1%



16	Semiannual 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.

LOGO

Dina Ting, CFA


		Louis Hsu, CFA

		Portfolio Management Team



franklintempleton.com	Semiannual Report	17

FRANKLIN LIBERTYQ GLOBAL EQUITY ETF

Performance Summary as of September 30, 2019

Performance as of 9/30/19¹

Cumulative Total Return²

Average Annual Total Return²

Based on
NAV³

Based on
market price⁴

Based on
NAV³

Based on
market price⁴

6-Months

+3.70%

+3.89%

+3.70%

+3.89%

1-Year

+4.33%

+4.49%

+4.33%

+4.49%

3-Year

+31.03%

+30.17%

+9.43%

+9.19%

Since Inception (6/1/16)

+36.93%

+37.16%

+9.89%

+9.95%

See page 19 for Performance Summary footnotes.



18	Semiannual Report	franklintempleton.com

FRANKLIN LIBERTYQ GLOBAL EQUITY ETF

PERFORMANCE SUMMARY

Distributions(4/1/19–9/30/19)

Net Investment
Income

$0.4684

Total Annual Operating Expenses⁵

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.



franklintempleton.com	Semiannual Report	19

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 4/1/19		Ending Account Value 9/30/19		Expenses Paid During Period 4/1/19–9/30/19^1,2		Ending Account Value 9/30/19		Expenses Paid During Period 4/1/19–9/30/19^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	1,037.00	$	1.73	$	1,023.30	$	1.72		0.34	%

2. Reflects expenses after fee waivers and expense reimbursements.



20	Semiannual Report	franklintempleton.com

Franklin LibertyQ International Equity Hedged ETF

This semiannual report for Franklin LibertyQ International Equity Hedged ETF covers the period ended September 30, 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 (EAFE) 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 the six-month period, the Fund posted cumulative total returns of +6.20% based on market price and +6.11%

Geographic Composition*

Based on Total Net Assets as of 9/30/19

*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.

based on net asset value (NAV). In comparison, LibertyQ International Equity Hedged Index posted a +6.35% total return for the same period, while the MSCI EAFE 100% Hedged to USD Index (Net Returns) posted a +5.89% total return.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 24.

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

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.



franklintempleton.com	Semiannual Report	21

FRANKLIN LIBERTYQ INTERNATIONAL EQUITY HEDGED ETF


Top 10 Sectors/Industries

9/30/19

	% of Total Net Assets
Pharmaceuticals		9.9%
Banks		9.2%
Metals & Mining		7.3%
Insurance		5.1%
Automobiles		4.9%
Personal Products		4.8%
Diversified Telecommunication Services		4.5%
Electric Utilities		3.4%
Oil, Gas & Consumable Fuels		3.3%
Wireless Telecommunication Services		3.1%


Top 10 Countries

9/30/19

	% of Total Net Assets
United Kingdom		22.2%
Australia		22.0%
Japan		21.6%
Switzerland		5.6%
France		4.4%
Hong Kong		3.8%
Denmark		3.2%
Spain		3.2%
Italy		2.3%
Germany		2.0%


Top 10 Holdings

9/30/19

Company *Sector/Industry, Country*	% of Total Net Assets
Toyota Motor Corp. Automobiles, Japan		2.2%
CSL Ltd. Biotechnology, Australia		2.2%
Roche Holding AG Pharmaceuticals, Switzerland		2.2%
Novo Nordisk AS, B Pharmaceuticals, Denmark		2.2%
GlaxoSmithKline PLC Pharmaceuticals, United Kingdom		2.1%
Commonwealth Bank of Australia Banks, Australia		2.1%
Westpac Banking Corp. Banks, Australia		2.0%
Unilever NV, IDR Personal Products, United Kingdom		1.9%
Unilever PLC Personal Products, United Kingdom		1.9%
Sanofi Pharmaceuticals, France		1.9%

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.



22	Semiannual Report	franklintempleton.com

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.

LOGO

Dina Ting, CFA


		Louis Hsu, CFA

		Portfolio Management Team



franklintempleton.com	Semiannual Report	23

FRANKLIN LIBERTYQ INTERNATIONAL EQUITY HEDGED ETF

Performance Summary as of September 30, 2019

Performance as of 9/30/19¹

Cumulative Total Return²

Average Annual Total Return²

Based on
NAV³

Based on
market price⁴

Based on
NAV³

Based on

market price⁴

6-Months

+6.11%

+6.20%

+6.11%

+6.20%

1-Year

+7.07%

+8.16%

+7.07%

+8.16%

3-Year

+26.10%

+26.14%

+8.04%

+8.05%

Since Inception (6/1/16)

+27.89%

+28.72%

+7.66%

+7.87%

See page 25 for Performance Summary footnotes.



24	Semiannual Report	franklintempleton.com

FRANKLIN LIBERTYQ INTERNATIONAL EQUITY HEDGED ETF

PERFORMANCE SUMMARY

Distributions(4/1/19–9/30/19)

Net Investment
Income

$0.1917

Total Annual Operating Expenses⁵

0.40%

All investments involve risks, including possible loss of principal. Stock prices fluctuate, sometimes rapidly and dramatically, due to factors affecting individual companies, particular industries or sectors, or general market conditions. 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 of non-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 of non-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. Performance of the Fund may vary significantly from the performance of an index, as a result of transaction 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.



franklintempleton.com	Semiannual Report	25

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 4/1/19		Ending Account Value 9/30/19		Expenses Paid During Period 4/1/19–9/30/19^1,2		Ending Account Value 9/30/19		Expenses Paid During Period 4/1/19–9/30/19^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	1,061.10	$	2.06	$	1,023.00	$	2.02		0.40	%

2. Reflects expenses after fee waivers and expense reimbursements.



26	Semiannual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin LibertyQ Emerging Markets ETF


	Six Months Ended September 30, 2019 (unaudited)			Year Ended March 31,
	Six Months Ended September 30, 2019 (unaudited)			2019			2018			2017^a

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

Net asset value, beginning of period	$	29.70		$	33.41		$	29.29		$	25.66


Income from investment operations^b:

Net investment income^c		0.78			1.14			0.83			0.47

Net realized and unrealized gains (losses)		(1.19	)		(3.76	)		4.15			3.25


Total from investment operations		(0.41	)		(2.62	)		4.98			3.72


Less distributions from net investment income		(0.29	)		(1.09	)		(0.86	)		(0.09	)


Net asset value, end of period	$	29.00		$	29.70		$	33.41		$	29.29


Total return^d		(1.40)%			(7.70)%			17.20%			14.55%

Ratios to average net assets^e

Expenses before waiver and payments by affiliates		0.52%			0.55%			0.69%	^f		0.75%

Expenses net of waiver and payments by affiliates		0.52%			0.55%			0.54%	^f		0.55%

Net investment income		5.33%			3.75%			2.61%			2.09%

Supplemental data

Net assets, end of period (000’s)		$336,441			$344,484			$400,908			$328,086

Portfolio turnover rate^g		23.73%			52.42%			32.87%			31.66%

Portfolio turnover rate excluding portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely or in part for cash^g,h		21.90%			—%			—%			—%

^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 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.

^hEffective September 30, 2019.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Semiannual Report	27

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, September 30, 2019 (unaudited)

Franklin LibertyQ Emerging Markets ETF



		Industry		Shares		Value
	Common Stocks 95.6%
	Argentina 0.0%^†
	Transportadora de Gas del Sur SA, B, ADR		Oil, Gas & Consumable Fuels		15,718	$	133,446

	Brazil 4.1%
	Banco Santander Brasil SA		Banks		75,400		820,541
	BB Seguridade Participacoes SA		Insurance		417,600		3,511,914
	Cielo SA		IT Services		551,000		1,058,242
	Companhia de Saneamento Basico do Estado de Sao Paulo		Water Utilities		133,400		1,588,477
	Cosan SA		Oil, Gas & Consumable Fuels		29,000		370,385
	Engie Brasil SA		Independent Power and Renewable Electricity Producers		104,400		1,112,574
	Hypera SA		Pharmaceuticals		63,800		513,567
	IRB Brasil Resseguros SA		Insurance		165,300		1,494,502
	Lojas Renner SA		Multiline Retail		139,200		1,686,615
	M. Dias Branco SA		Food Products		40,600		341,144
	Petrobras Distribuidora SA		Specialty Retail		75,400		498,334
	Porto Seguro SA		Insurance		17,400		245,999
	Tim Participacoes SA		Wireless Telecommunication Services		145,000		414,594


							13,656,888

	Chile 0.7%
	Aguas Andinas SA, A		Water Utilities		1,139,294		623,932
	Colbun SA		Independent Power and Renewable Electricity Producers		1,436,080		259,348
	Compania Cervecerias Unidas SA		Beverages		52,664		589,056
	Enel Chile SA		Electric Utilities		10,992,102		951,425


							2,423,761

	China 18.2%
	Agricultural Bank of China Ltd., A		Banks		261,000		126,458
	Agricultural Bank of China Ltd., H		Banks		7,424,000		2,907,325
	Anhui Conch Cement Co. Ltd., A		Construction Materials		40,600		235,031
	Anhui Conch Cement Co. Ltd., H		Construction Materials		421,000		2,499,879
	Anta Sports Products Ltd.		Textiles, Apparel & Luxury Goods		452,200		3,740,742
a	Anxin Trust Co. Ltd.		Capital Markets		29,000		19,127
	Bank of Beijing Co. Ltd., A		Banks		110,200		82,713
	Bank of China Ltd., A		Banks		104,400		52,337
	Bank of China Ltd., H		Banks		7,308,000		2,871,220
	Bank of Communications Co. Ltd., A		Banks		301,600		230,174
	Bank of Communications Co. Ltd., H		Banks		3,306,000		2,159,186
	Bank of Hangzhou Co. Ltd.		Banks		29,000		34,315
	Baoshan Iron & Steel Co. Ltd., A		Metals & Mining		98,600		81,601
	China Cinda Asset Management Co. Ltd., H		Capital Markets		2,610,000		512,718
	China CITIC Bank Corp. Ltd., A		Banks		52,200		41,227
	China CITIC Bank Corp. Ltd., H		Banks		4,292,000		2,288,512
	China Conch Venture Holdings Ltd.		Machinery		522,000		1,931,015
	China Construction Bank Corp., H		Banks		4,118,000		3,141,266
	China Everbright Bank Co. Ltd., A		Banks		150,800		83,201
	China Everbright Bank Co. Ltd., H		Banks		1,450,000		617,777
	China Medical System Holdings Ltd.		Pharmaceuticals		522,000		620,588
	China Minsheng Banking Corp. Ltd., A		Banks		185,600		156,460
	China Minsheng Banking Corp. Ltd., H		Banks		2,494,000		1,695,668
	China Mobile Ltd.		Wireless Telecommunication Services		364,000		3,011,123
	China Oriental Group Co. Ltd.		Metals & Mining		464,000		160,400
	China Petroleum & Chemical Corp., A		Oil, Gas & Consumable Fuels		104,400		73,389
	China Petroleum & Chemical Corp., H		Oil, Gas & Consumable Fuels		4,408,000		2,620,262
	China Resources Cement Holdings Ltd.		Construction Materials		580,000		581,524



28	Semiannual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin LibertyQ Emerging Markets ETF(continued)



		Industry		Shares		Value
	Common Stocks (continued)
	China (continued)
	China Shenhua Energy Co. Ltd., A		Oil, Gas & Consumable Fuels		29,000	$	76,264
	China Shenhua Energy Co. Ltd., H		Oil, Gas & Consumable Fuels		1,421,000		2,853,093
	China South Publishing & Media Group Co. Ltd., A		Media		17,400		29,482
	China Telecom Corp. Ltd., H		Diversified Telecommunication Services		2,320,000		1,056,509
	China Yangtze Power Co. Ltd., A		Independent Power and Renewable Electricity Producers		110,200		281,318
	China Zhongwang Holdings Ltd.		Metals & Mining		278,400		113,286
	Chinese Universe Publishing and Media Group Co. Ltd., A		Media		5,800		10,607
	Chongqing Rural Commercial Bank Co. Ltd., H		Banks		464,000		246,815
	CNOOC Ltd.		Oil, Gas & Consumable Fuels		1,914,000		2,920,050
	Country Garden Services Holdings Co. Ltd.		Commercial Services & Supplies		204,000		588,106
	Dali Foods Group Co. Ltd.		Food Products		783,000		480,423
	Daqin Railway Co. Ltd., A		Road & Rail		139,200		147,948
	Dongfeng Motor Group Co. Ltd., H		Automobiles		1,508,000		1,433,094
a	Fangda Carbon New Material Co. Ltd.		Electrical Equipment		26,020		42,339
	Focus Media Information Technology Co. Ltd.		Media		133,400		98,072
	Foshan Haitian Flavouring & Food Co. Ltd.		Food Products		17,400		267,803
	Fuyao Glass Industry Group Co. Ltd., A		Auto Components		17,400		52,337
	Guangdong Investment Ltd.		Water Utilities		464,000		907,947
	Guangzhou Automobile Group Co. Ltd., A		Automobiles		23,200		39,862
	Guangzhou Automobile Group Co. Ltd., H		Automobiles		1,452,000		1,389,137
	Hangzhou Robam Appliances Co. Ltd., A		Household Durables		5,800		21,361
	Heilan Home Co. Ltd., A		Textiles, Apparel & Luxury Goods		23,200		26,380
	Henan Shuanghui Investment & Development Co. Ltd.		Food Products		23,200		80,244
	Huayu Automotive Systems Co. Ltd.		Auto Components		23,200		76,346
	Industrial and Commercial Bank of China Ltd., H		Banks		4,698,000		3,146,223
	Industrial Bank Co. Ltd., A		Banks		151,182		371,117
	Jiangsu Expressway Co. Ltd., H		Transportation Infrastructure		580,000		736,893
	Kingboard Holdings Ltd.		Electronic Equipment, Instruments & Components		116,000		307,039
	Kweichow Moutai Co. Ltd., A		Beverages		7,700		1,239,988
b,c	Longfor Group Holdings Ltd., 144A, Reg S		Real Estate Management & Development		725,000		2,709,710
	Luzhou Laojiao Co. Ltd.		Beverages		5,800		69,215
	Maanshan Iron & Steel Co. Ltd., H		Metals & Mining		696,000		261,908
	Nexteer Automotive Group Ltd.		Auto Components		116,000		95,737
	Nine Dragons Paper Holdings Ltd.		Paper & Forest Products		638,000		537,133
	RiseSun Real Estate Development Co. Ltd.		Real Estate Management & Development		29,000		33,625
	SAIC Motor Corp. Ltd.		Automobiles		40,600		135,197
	Shaanxi Coal Industry Co. Ltd.		Oil, Gas & Consumable Fuels		63,800		77,994
	Shanghai International Airport Co. Ltd., A		Transportation Infrastructure		5,800		64,796
	Shenzhen MindrayBio-Medical Electronics Co. Ltd., A		Health Care Equipment & Supplies		2,000		51,661
	Shenzhen Salubris Pharmaceuticals Co. Ltd.		Pharmaceuticals		5,800		15,188
	Shenzhou International Group Holdings Ltd.		Textiles, Apparel & Luxury Goods		261,000		3,409,241



franklintempleton.com	Semiannual Report	29

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin LibertyQ Emerging Markets ETF(continued)



		Industry		Shares		Value
	Common Stocks (continued)
	China (continued)
	Sihuan Pharmaceutical Holdings Group Ltd.		Pharmaceuticals		1,508,000	$	228,910
	Sinopec Shanghai Petrochemical Co. Ltd., A		Chemicals		40,600		23,708
	Sinopec Shanghai Petrochemical Co. Ltd., H		Chemicals		1,856,000		539,796
	Weichai Power Co. Ltd., A		Machinery		34,800		54,677
	Weifu High-Technology Group Co. Ltd., A		Auto Components		11,600		26,607
	Wuhu Sanqi Interactive Entertainment Network Technology Group Co. Ltd.		Entertainment		17,400		43,931
	Yuzhou Properties Co.		Real Estate Management & Development		290,000		115,417
a	YY Inc., ADR		Interactive Media & Services		17,458		981,663
	Zhejiang Semir Garment Co. Ltd.		Textiles, Apparel & Luxury Goods		11,600		20,077


							61,111,512

	Colombia 0.2%
	Ecopetrol SA		Oil, Gas & Consumable Fuels		828,472		702,609

	Czech Republic 0.2%
	Moneta Money Bank AS		Banks		229,100		705,777

	Egypt 0.6%
	Commercial International Bank Egypt SAE		Banks		247,022		1,177,839
	Eastern Co. SAE		Tobacco		467,422		488,794
	ElSewedy Electric Co.		Electrical Equipment		362,442		298,354


							1,964,987

	Greece 0.2%
	JUMBO SA		Specialty Retail		19,836		376,495
	Motor Oil (Hellas) Corinth Refineries SA		Oil, Gas & Consumable Fuels		12,528		292,555


							669,050

	Hong Kong 0.2%
	Kingboard Laminates Holdings Ltd.		Chemicals		435,000		392,307
	Lee & Man Paper Manufacturing Ltd.		Paper & Forest Products		638,000		345,067


							737,374

	Hungary 0.5%
	MOL Hungarian Oil and Gas PLC		Oil, Gas & Consumable Fuels		169,708		1,596,272

	India 11.4%
	Bajaj Auto Ltd.		Automobiles		35,728		1,483,088
	Bharat Petroleum Corp. Ltd.		Oil, Gas & Consumable Fuels		327,178		2,170,298
	Bharti Infratel Ltd.		Diversified Telecommunication Services		64,902		235,637
	Britannia Industries Ltd.		Food Products		17,574		730,088
	Coal India Ltd.		Oil, Gas & Consumable Fuels		480,008		1,353,623
	Dabur India Ltd.		Personal Products		207,814		1,311,505
	Eicher Motors Ltd.		Automobiles		5,974		1,497,546
	GAIL India Ltd.		Gas Utilities		272,078		516,370
	HCL Technologies Ltd.		IT Services		218,892		3,337,642
	Hero Motocorp Ltd.		Automobiles		25,230		962,918
	Hindustan Petroleum Corp. Ltd.		Oil, Gas & Consumable Fuels		332,398		1,415,072
	Hindustan Unilever Ltd.		Household Products		139,142		3,891,310
	Indian Oil Corp. Ltd.		Oil, Gas & Consumable Fuels		773,778		1,609,381
	Infosys Ltd.		IT Services		318,304		3,618,540
	ITC Ltd.		Tobacco		794,310		2,912,445
	Marico Ltd.		Personal Products		179,278		997,341
	Nestle India Ltd.		Food Products		9,628		1,887,002
	Oil & Natural Gas Corp. Ltd.		Oil, Gas & Consumable Fuels		473,396		880,410
	Page Industries Ltd.		Textiles, Apparel & Luxury Goods		1,914		608,154
	Petronet LNG Ltd.		Oil, Gas & Consumable Fuels		114,492		419,881
	Pidilite Industries Ltd.		Chemicals		42,340		862,557
	REC Ltd.		Diversified Financial Services		125,280		217,701



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

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin LibertyQ Emerging Markets ETF(continued)



	Industry			Shares		Value
Common Stocks (continued)
India (continued)
Tata Consultancy Services Ltd.		IT Services			111,418	$	3,300,462
Tech Mahindra Ltd.		IT Services			197,084		1,987,003


							38,205,974

Indonesia 3.2%
Adaro Energy Tbk PT		Oil, Gas & Consumable Fuels			5,399,800		490,718
Bukit Asam Tbk PT		Oil, Gas & Consumable Fuels			1,084,600		172,680
Charoen Pokphand Indonesia Tbk PT		Food Products			1,252,800		472,172
Gudang Garam Tbk PT		Tobacco			87,000		321,002
Hanjaya Mandala Sampoerna Tbk PT		Tobacco			5,179,400		835,564
Indofood CBP Sukses Makmur Tbk PT		Food Products			400,200		339,021
Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk, B		Diversified Telecommunication Services			13,467,600		4,089,141
Surya Citra Media Tbk PT		Media			2,992,800		244,568
Unilever Indonesia Tbk PT		Household Products			812,000		2,659,951
United Tractors Tbk PT		Oil, Gas & Consumable Fuels			719,200		1,042,447


							10,667,264

Malaysia 2.2%
AirAsia Group Bhd		Airlines			626,400		263,307
British American Tobacco Malaysia Bhd.		Tobacco			92,800		419,783
Digi.com Bhd.		Wireless Telecommunication Services			1,571,800		1,783,150
Hartalega Holdings Bhd.		Health Care Equipment & Supplies			545,200		683,616
Nestle (Malaysia) Bhd.		Food Products			34,800		1,210,977
Petronas Chemicals Group Bhd.		Chemicals			1,154,200		2,078,497
Petronas Gas Bhd.		Gas Utilities			110,200		431,114
Westports Holdings Bhd.		Transportation Infrastructure			400,200		394,752


							7,265,196

Mexico 2.3%
Fibra Uno Administracion SA de CV		Equity Real Estate Investment Trusts (REITs	)		595,138		869,316
Grupo Aeroportuario del Pacifico SAB de CV		Transportation Infrastructure			151,148		1,453,758
Kimberly-Clark de Mexico SAB de CV, A		Household Products			647,280		1,299,215
Megacable Holdings SAB de CV		Media			93,264		375,390
Promotora y Operadora de Infraestructura SAB de CV		Transportation Infrastructure			39,092		350,331
Wal-Mart de Mexico SAB de CV, V		Food & Staples Retailing			1,175,138		3,480,656


							7,828,666

Pakistan 0.1%
MCB Bank Ltd.		Banks			174,000		188,742
Oil & Gas Development Co. Ltd.		Oil, Gas & Consumable Fuels			330,600		260,187


							448,929

Philippines 0.4%
DMCI Holdings Inc.		Industrial Conglomerates			1,850,200		296,646
Globe Telecom Inc.		Wireless Telecommunication Services			13,630		481,244
Manila Electric Co.		Electric Utilities			100,920		720,440


							1,498,330

Poland 0.3%

Powszechny Zaklad Ubezpieczen SA		Insurance			102,718		957,709

Qatar 3.1%
Barwa Real Estate Co.		Real Estate Management & Development			612,306		563,369
Industries Qatar QSC		Industrial Conglomerates			805,156		2,412,593
Masraf Al Rayan QSC		Banks			617,178		600,058
Mesaieed Petrochemical Holding Co.		Chemicals			843,436		690,316
Qatar Electricity & Water Co. QSC		Multi-Utilities			204,218		866,566



franklintempleton.com	Semiannual Report	31

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin LibertyQ Emerging Markets ETF(continued)



		Industry		Shares		Value
	Common Stocks (continued)
	Qatar (continued)
	Qatar Fuel QSC		Oil, Gas & Consumable Fuels		102,022	$	659,318
	Qatar Islamic Bank SAQ		Banks		205,900		882,186
	Qatar National Bank SAQ		Banks		692,578		3,669,275


							10,343,681

	Russia 10.8%
	Alrosa PJSC		Metals & Mining		1,718,134		1,972,812
	Gazprom PJSC		Oil, Gas & Consumable Fuels		1,065,402		3,709,387
	Inter RAO UES PJSC		Electric Utilities		19,198,986		1,328,461
	LUKOIL PJSC		Oil, Gas & Consumable Fuels		41,586		3,453,082
	Magnitogorsk Iron & Steel Works		Metals & Mining		1,021,960		616,728
	MMC Norilsk Nickel PJSC		Metals & Mining		15,950		4,101,903
	Mobile TeleSystems PJSC, ADR		Wireless Telecommunication Services		280,894		2,275,241
	Moscow Exchange MICEX		Capital Markets		223,184		325,888
	NLMK PJSC		Metals & Mining		662,534		1,452,250
b	Novatek PJSC, GDR, Reg S		Oil, Gas & Consumable Fuels		17,922		3,634,582
b	PhosAgro PJSC, GDR, Reg S		Chemicals		20,648		263,675
	Polymetal International PLC		Metals & Mining		65,250		916,646
	Polyus Gold OJSC		Metals & Mining		11,136		1,294,973
	Rosneft PJSC		Oil, Gas & Consumable Fuels		476,470		3,079,164
	Severstal PJSC		Metals & Mining		143,260		2,060,498
	Surgutneftegas PJSC		Oil, Gas & Consumable Fuels		3,244,230		1,770,057
	Tatneft PAO		Oil, Gas & Consumable Fuels		319,232		3,382,115
b	X5 Retail Group NV, GDR, Reg S		Food & Staples Retailing		21,286		747,671


							36,385,133

	Saudi Arabia 1.9%
	Advanced Petrochemical Co.		Chemicals		11,166		144,367
	Al-Rajhi Bank		Banks		109,156		1,841,964
	Bupa Arabia for Cooperative Insurance Co.		Insurance		2,494		70,741
a	Dar Al Arkan Real Estate Development Co.		Real Estate Management & Development		45,298		144,183
	Itau Unibanco Holding SA		Specialty Retail		7,250		305,369
	National Commercial Bank		Banks		742		878
	National Commercial Bank		Banks		101,036		1,240,325
	Riyad Bank		Banks		105,096		683,606
	Saudi Airlines Catering Co.		Hotels, Restaurants & Leisure		4,582		107,001
	Saudi Arabian Fertilizer Co.		Chemicals		16,762		358,816
	Saudi Cement Co.		Construction Materials		6,786		128,802
	Saudi Telecom Co.		Diversified Telecommunication Services		41,934		1,216,256
	Yanbu National Petrochemical Co.		Chemicals		21,924		312,682


							6,554,990

	South Africa 3.3%
	Capitec Bank Holdings Ltd.		Banks		9,106		773,186
	Clicks Group Ltd.		Food & Staples Retailing		90,364		1,281,277
	Exxaro Resources Ltd.		Oil, Gas & Consumable Fuels		118,030		1,016,634
	Kumba Iron Ore Ltd.		Metals & Mining		34,568		853,730
	Mr. Price Group Ltd.		Specialty Retail		135,778		1,417,106
d	RMB Holdings Ltd.		Diversified Financial Services		278,748		1,380,641
	Telkom SA SOC Ltd.		Diversified Telecommunication Services		120,988		563,268
	Tiger Brands Ltd.		Food Products		67,454		936,726
	Truworths International Ltd.		Specialty Retail		217,384		759,858
	Vodacom Group Ltd.		Wireless Telecommunication Services		275,906		2,177,042


							11,159,468

	South Korea 10.7%
	BGF Retail Co. Ltd.		Food & Staples Retailing		1,508		248,360
	BNK Financial Group Inc.		Banks		118,610		712,959
	Daelim Industrial Co. Ltd.		Construction & Engineering		5,394		468,985



32	Semiannual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin LibertyQ Emerging Markets ETF(continued)



		Industry		Shares		Value
	Common Stocks (continued)
	South Korea (continued)
	DB Insurance Co. Ltd.		Insurance		8,468	$	365,296
	Hana Financial Group Inc.		Banks		107,996		3,182,593
	Hanwha Life Insurance Co. Ltd.		Insurance		116,348		231,500
	Hyundai Marine & Fire Insurance Co. Ltd.		Insurance		26,274		579,888
	Industrial Bank of Korea		Banks		123,772		1,365,874
	Kangwon Land Inc.		Hotels, Restaurants & Leisure		48,894		1,207,890
	KB Financial Group Inc.		Banks		86,362		3,082,939
	Kia Motors Corp.		Automobiles		45,356		1,729,075
	Korea Zinc Co. Ltd.		Metals & Mining		1,450		543,076
	KT&G Corp.		Tobacco		39,788		3,509,287
	Kumho Petrochemical Co. Ltd.		Chemicals		3,248		194,421
	Lotte Chemical Corp.		Chemicals		8,062		1,590,630
	NCsoft Corp.		Entertainment		4,930		2,147,331
b	Orange Life Insurance Ltd., Reg S		Insurance		5,916		133,786
a	PearlAbyss Corp.		Entertainment		1,160		192,016
	S-1 Corp.		Commercial Services & Supplies		7,134		585,082
	Samsung Card Co. Ltd.		Consumer Finance		5,220		153,395
	Samsung Electronics Co. Ltd.		Technology Hardware, Storage & Peripherals		82,302		3,374,922
	Shinhan Financial Group Co. Ltd.		Banks		77,836		2,720,014
	SK Hynix Inc.		Semiconductors & Semiconductor Equipment		55,042		3,782,512
	SK Telecom Co. Ltd.		Wireless Telecommunication Services		9,860		1,990,712
	Woongjin Coway Co. Ltd.		Household Durables		26,158		1,850,075


							35,942,618

	Taiwan 12.5%
	Advantech Co. Ltd.		Technology Hardware, Storage & Peripherals		58,000		510,371
	Catcher Technology Co. Ltd.		Technology Hardware, Storage & Peripherals		290,000		2,196,651
	Chicony Electronics Co. Ltd.		Technology Hardware, Storage & Peripherals		232,000		683,486
	Chunghwa Telecom Co. Ltd.		Diversified Telecommunication Services		928,000		3,320,215
	Eclat Textile Co. Ltd.		Textiles, Apparel & Luxury Goods		33,410		447,987
	Far EasTone Telecommunications Co. Ltd.		Wireless Telecommunication Services		696,000		1,626,456
	Feng Tay Enterprise Co. Ltd.		Textiles, Apparel & Luxury Goods		163,285		1,171,039
	Formosa Chemicals & Fibre Corp.		Chemicals		986,000		2,755,442
	Formosa Petrochemical Corp.		Oil, Gas & Consumable Fuels		522,000		1,652,255
	Formosa Plastics Corp.		Chemicals		958,000		2,918,049
	Globalwafers Co. Ltd.		Semiconductors & Semiconductor Equipment		37,360		378,122
	Highwealth Construction Corp.		Real Estate Management & Development		116,000		186,575
	Largan Precision Co. Ltd.		Electronic Equipment, Instruments & Components		17,300		2,481,426
	Lite-On Technology Corp.		Technology Hardware, Storage & Peripherals		406,000		645,161
	Nan Ya Plastics Corp.		Chemicals		1,364,000		3,064,378
	Nanya Technology Corp.		Semiconductors & Semiconductor Equipment		580,000		1,504,940
	Nien Made Enterprise Co. Ltd.		Household Durables		74,000		648,778
	Novatek Microelectronics Corp. Ltd.		Semiconductors & Semiconductor Equipment		269,000		1,543,361
	Phison Electronics Corp.		Semiconductors & Semiconductor Equipment		69,000		614,949
	Powertech Technology Inc.		Semiconductors & Semiconductor Equipment		116,000		326,039
	President Chain Store Corp.		Food & Staples Retailing		273,910		2,560,360
	Ruentex Industries Ltd.		Textiles, Apparel & Luxury Goods		58,000		125,069
	Standard Foods Corp.		Food Products		58,000		116,095
	Taiwan Business Bank		Banks		732,000		300,827
	Taiwan Mobile Co. Ltd.		Wireless Telecommunication Services		696,000		2,512,595
	Taiwan Semiconductor Manufacturing Co. Ltd.		Semiconductors & Semiconductor Equipment		424,000		3,717,320
	The Shanghai Commercial & Savings Bank Ltd.		Banks		522,000		876,604
	Vanguard International Semiconductor Corp.		Semiconductors & Semiconductor Equipment		378,000		763,932
	Walsin Technology Corp.		Electronic Equipment, Instruments & Components		74,000		416,219
	Yageo Corp.		Electronic Equipment, Instruments & Components		109,000		866,041
	Yuanta Financial Holding Co. Ltd.		Capital Markets		1,682,000		1,002,982



franklintempleton.com	Semiannual Report	33

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin LibertyQ Emerging Markets ETF(continued)



		Industry		Shares		Value
	Common Stocks (continued)
	Taiwan (continued)
	Zhen Ding Technology Holding Ltd.		Electronic Equipment, Instruments & Components		83,000	$	296,959


							42,230,683

	Thailand 4.5%
	Advanced Info Service PCL		Wireless Telecommunication Services		545,200		3,921,661
	Bumrungrad Hospital PCL		Health Care Providers & Services		162,400		679,654
	Electricity Generating PCL		Independent Power and Renewable Electricity Producers		52,200		612,712
	Intouch Holdings PCL		Wireless Telecommunication Services		522,000		1,117,901
	Land and Houses PCL, NVDR		Real Estate Management & Development		1,264,400		396,869
	PTT Global Chemical PCL, NVDR		Chemicals		922,200		1,620,672
	PTT PCL		Oil, Gas & Consumable Fuels		2,279,400		3,446,861
	Ratch Group PCL, NVDR		Independent Power and Renewable Electricity Producers		139,200		325,414
	The Siam Cement PCL		Construction Materials		214,600		2,862,737


							14,984,481

	Turkey 2.0%
	BIM Birlesik Magazalar AS		Food & Staples Retailing		199,172		1,732,636
	Eregli Demir ve Celik Fabrikalari AS		Metals & Mining		761,308		923,574
	Ford Otomotiv Sanayi AS		Automobiles		38,338		403,308
	TAV Havalimanlari Holding AS		Transportation Infrastructure		85,666		358,048
	Tupras-Turkiye Petrol Rafinerileri AS		Oil, Gas & Consumable Fuels		66,874		1,699,534
	Turkcell Iletisim Hizmetleri AS		Wireless Telecommunication Services		393,878		907,527
a	Turkiye Is Bankasi AS, C		Banks		672,510		746,770
	Turkiye Sise Ve Cam Fabrikalari AS		Industrial Conglomerates		116,522		96,371


							6,867,768

	United Arab Emirates 2.0%
	Abu Dhabi Commercial Bank PJSC		Banks		507,906		1,086,844
	Aldar Properties PJSC		Real Estate Management & Development		1,589,838		904,608
	Dubai Islamic Bank PJSC		Banks		705,570		1,008,465
	Emaar Development PJSC		Real Estate Management & Development		299,802		336,274
	Emirates Telecommunications Group Co. PJSC		Diversified Telecommunication Services		765,890		3,440,422


							6,776,613

	Total Common Stocks (Cost $311,523,412)						321,819,179

	Preferred Stocks 4.1%
	Brazil 3.1%
a	Braskem SA, pfd., A		Chemicals		34,800		271,690
e	Itau Unibanco Holding SA, 4.930%, pfd.		Banks		429,200		3,609,468
e	Itausa-Investimentos Itau SA, 5.463, pfd.		Banks		1,223,800		3,872,301
e	Telefonica Brasil SA, 6.735%, pfd.		Diversified Telecommunication Services		191,400		2,524,491


							10,277,950

	Russia 0.7%
e	Surgutneftegas PJSC, 20.342%, pfd.		Oil, Gas & Consumable Fuels		3,573,960		2,063,431
e	Transneft PJSC, 7.147%, pfd.		Oil, Gas & Consumable Fuels		174		401,729


							2,465,160

	South Korea 0.3%
e	LG Chem Ltd., 3.612%, pfd.		Chemicals		2,958		414,216



34	Semiannual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin LibertyQ Emerging Markets ETF(continued)



		Industry		Shares		Value
	Preferred Stocks (continued)
	South Korea (continued)
e	Samsung Electronics Co. Ltd., 3.587%, pfd.		Technology Hardware, Storage & Peripherals		15,776	$	520,965


							935,181

	Total Preferred Stocks (Cost $12,978,940)						13,678,291

	Corporate Bonds & Notes 0.0%^†
	India 0.0%^†
	Britannia Industries Ltd., senior secured note, first lien, 8.00%		Food Products		538,200		7,751

	Total Corporate Bonds & Notes (Cost $7,684)						7,751

	Total Investments before Short Term Investments (Cost $324,510,036)						335,505,221

	Short Term Investments 0.4%
	Investments from Cash Collateral Received for Loaned Securities 0.4%
	United States 0.4%
f,g	Institutional Fiduciary Trust Portfolio, 1.71%		Money Market Funds		1,150,250		1,150,250

	Total Short-Term Investments (Cost $1,150,250)						1,150,250

	Total Investments (Cost $325,660,286) 100.1%						336,655,471
	Other Assets, less Liabilities (0.1)%						(214,745	)

	Net Assets 100.0%					$	336,440,726

See Abbreviations on page 81.

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

^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 September 30, 2019, the aggregate value of these securities was $7,489,424, representing 2.2% 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 September 30, 2019, the value of this security was $2,709,710, representing 0.8% of net assets.

^dA portion or all of the security is on loan at September 30, 2019. See Note 1(d).

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

^fSee Note 3(c) regarding investments in affiliated management investment companies.

^gThe rate shown is the annualizedseven-day effective yield at period end.

At September 30, 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

851,615

12/20/19

(20,860

)

*As of period end.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Semiannual Report	35

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin LibertyQ Global Dividend ETF


	Six Months Ended September 30, 2019 (unaudited)			Year Ended March 31,
	Six Months Ended September 30, 2019 (unaudited)			2019			2018			2017^a

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

Net asset value, beginning of period	$	28.20		$	28.22		$	27.31		$	25.43


Income from investment operations^b:

Net investment income^c		0.61			0.95			0.86			0.67

Net realized and unrealized gains (losses)		0.89			(0.02	)		1.03			1.79


Total from investment operations		1.50			0.93			1.89			2.46


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


Net asset value, end of period	$	29.12		$	28.20		$	28.22		$	27.31


Total return^d		5.35%			3.51%			6.91%			9.79%

Ratios to average net assets^e

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

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

Net investment income		4.21%			3.43%			3.05%			3.11%

Supplemental data

Net assets, end of period (000’s)		$17,470			$16,920			$16,933			$27,306

Portfolio turnover rate^g		9.83%			25.75%			43.32%			13.38%

Portfolio turnover rate excluding portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely or in part for cash^g,h		9.52%			—%			—%			—%

^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.

^hEffective September 30, 2019.



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

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, September 30, 2019 (unaudited)

Franklin LibertyQ Global Dividend ETF



		Industry		Shares		Value
	Common Stocks 97.4%
	Australia 10.1%
	Australian Stock Exchange Ltd.		Capital Markets		2,061	$	112,691
	Brambles Ltd.		Commercial Services & Supplies		20,844		160,264
	Challenger Ltd.		Diversified Financial Services		5,388		26,782
	Commonwealth Bank of Australia		Banks		6,651		362,584
	Flight Centre Travel Group Ltd.		Hotels, Restaurants & Leisure		606		19,455
	Macquarie Group Ltd.		Capital Markets		3,333		294,660
	National Australia Bank Ltd.		Banks		20,265		405,932
	Westpac Banking Corp.		Banks		19,110		382,022


							1,764,390

	Belgium 0.3%
	Proximus SADP		Diversified Telecommunication Services		1,824		54,187

	Canada 6.9%
	Bank of Nova Scotia		Banks		6,282		357,040
	Canadian Imperial Bank of Commerce		Banks		4,029		332,636
	CI Financial Corp.		Capital Markets		5,088		74,283
	IGM Financial Inc.		Capital Markets		1,059		30,091
	Royal Bank of Canada		Banks		4,266		346,274
	TELUS Corp.		Diversified Telecommunication Services		1,671		59,507


							1,199,831

	China 2.3%
	Anta Sports Products Ltd.		Textiles, Apparel & Luxury Goods		12,000		99,268
	China Vanke Co. Ltd., A		Real Estate Management & Development		2,700		9,792
	China Vanke Co. Ltd., H		Real Estate Management & Development		14,700		51,191
a,b	Longfor Group Holdings Ltd., 144A, Reg S		Real Estate Management & Development		19,500		72,882
	Sands China Ltd.		Hotels, Restaurants & Leisure		37,200		168,457


							401,590

	Denmark 0.3%
	Tryg AS		Insurance		1,935		55,463

	Finland 2.8%
	Elisa OYJ		Diversified Telecommunication Services		1,638		84,466
	Kone OYJ, B		Machinery		3,666		208,786
	Nokian Renkaat OYJ		Auto Components		1,665		46,977
	Nordea Bank Abp		Banks		330		2,343
	Nordea Bank Abp		Banks		103		730
	Orion OYJ		Pharmaceuticals		741		27,644
	Sampo OYJ, A		Insurance		3,147		125,158


							496,104

	France 0.1%
	Societe BIC SA		Commercial Services & Supplies		156		10,476

	Germany 2.8%
	Deutsche Boerse AG		Capital Markets		2,085		325,958
	Hannover Rueck SE		Insurance		696		117,686
	Hugo Boss AG		Textiles, Apparel & Luxury Goods		975		52,244


							495,888

	Indonesia 0.9%
	Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk, B		Diversified Telecommunication Services		523,800		159,040

	Japan 3.3%
	Daito Trust Construction Co. Ltd.		Real Estate Management & Development		1,400		178,894
	Lawson Inc.		Food & Staples Retailing		430		22,002



franklintempleton.com	Semiannual Report	37

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin LibertyQ Global Dividend ETF(continued)



	Industry		Shares		Value
Common Stocks (continued)
Japan (continued)
NTT DOCOMO Inc.		Wireless Telecommunication Services		15,000	$	382,096


						582,992

Malaysia 0.2%
Nestle (Malaysia) Bhd.		Food Products		1,100		38,278

Mexico 0.2%
Kimberly-Clark de Mexico SAB de CV, A		Household Products		16,884		33,889

New Zealand 0.2%
Spark New Zealand Ltd.		Diversified Telecommunication Services		12,663		35,017

Norway 0.7%
Telenor ASA		Diversified Telecommunication Services		6,321		126,998

Qatar 1.9%
Qatar Islamic Bank SAQ		Banks		7,230		30,977
Qatar National Bank SAQ		Banks		58,620		310,569


						341,546

Russia 0.7%
NLMK PJSC		Metals & Mining		7,854		17,216
Tatneft PAO		Oil, Gas & Consumable Fuels		9,222		97,703


						114,919

Singapore 1.7%
ComfortDelGro Corp. Ltd.		Road & Rail		24,900		43,214
SATS Ltd.		Transportation Infrastructure		8,400		29,399
Singapore Telecommunications Ltd.		Diversified Telecommunication Services		85,500		191,662
Venture Corp. Ltd.		Electronic Equipment, Instruments & Components		2,700		29,892


						294,167

South Africa 2.6%
Absa Group Ltd.		Banks		5,658		57,044
FirstRand Ltd.		Diversified Financial Services		43,299		177,594
Mr. Price Group Ltd.		Specialty Retail		3,813		39,796
Rand Merchant Investment Holdings Ltd.		Insurance		9,993		19,732
RMB Holdings Ltd.		Diversified Financial Services		12,489		61,858
Sanlam Ltd.		Insurance		18,777		92,359


						448,383

Spain 0.4%
Red Electrica Corp. SA		Electric Utilities		3,681		74,783

Sweden 2.3%
Atlas Copco AB		Machinery		5,535		150,195
Hennes & Mauritz AB, B		Specialty Retail		12,801		248,465


						398,660

Switzerland 7.2%
Novartis AG		Pharmaceuticals		4,020		348,885
Roche Holding AG		Pharmaceuticals		1,266		368,761
SGS SA		Professional Services		58		143,902
Zurich Insurance Group AG		Insurance		1,038		397,649


						1,259,197

Taiwan 2.7%
Chailease Holding Co. Ltd.		Diversified Financial Services		7,210		29,050
Feng Tay Enterprise Co. Ltd.		Textiles, Apparel & Luxury Goods		4,400		31,556
Phison Electronics Corp.		Semiconductors & Semiconductor Equipment		1,000		8,912



38	Semiannual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin LibertyQ Global Dividend ETF(continued)



	Industry		Shares		Value
Common Stocks (continued)
Taiwan (continued)
Taiwan Semiconductor Manufacturing Co. Ltd.		Semiconductors & Semiconductor Equipment		43,000	$	376,992
Vanguard International Semiconductor Corp.		Semiconductors & Semiconductor Equipment		9,000		18,189


						464,699

United Kingdom 9.8%
BT Group PLC		Diversified Telecommunication Services		74,655		164,289
Direct Line Insurance Group PLC		Insurance		19,770		73,137
GlaxoSmithKline PLC		Pharmaceuticals		16,836		361,952
Legal & General Group PLC		Insurance		55,824		170,879
Marks & Spencer Group PLC		Multiline Retail		14,431		32,801
Next PLC		Multiline Retail		1,812		138,129
Smiths Group PLC		Industrial Conglomerates		3,492		67,560
Taylor Wimpey PLC		Household Durables		20,742		41,280
Unilever NV, IDR		Personal Products		5,496		330,444
Unilever PLC		Personal Products		5,457		328,836


						1,709,307

United States 37.0%
Altria Group Inc.		Tobacco		6,369		260,492
Amcor PLC		Containers & Packaging		12,528		122,148
Arthur J. Gallagher & Co.		Insurance		1,587		142,148
Darden Restaurants Inc.		Hotels, Restaurants & Leisure		1,662		196,482
Emerson Electric Co.		Electrical Equipment		5,166		345,399
Garmin Ltd.		Household Durables		1,713		145,074
H&R Block Inc.		Diversified Consumer Services		2,718		64,199
Intel Corp.		Semiconductors & Semiconductor Equipment		7,473		385,084
International Business Machines Corp.		IT Services		2,490		362,096
Johnson & Johnson		Pharmaceuticals		2,409		311,677
Kimberly-Clark Corp.		Household Products		2,586		367,341
Las Vegas Sands Corp.		Hotels, Restaurants & Leisure		4,812		277,941
Leggett & Platt Inc.		Household Durables		1,392		56,989
Lockheed Martin Corp.		Aerospace & Defense		990		386,159
LyondellBasell Industries NV, A		Chemicals		4,173		373,358
Maxim Integrated Products Inc.		Semiconductors & Semiconductor Equipment		3,987		230,887
McDonald’s Corp.		Hotels, Restaurants & Leisure		1,674		359,425
Merck & Co. Inc.		Pharmaceuticals		4,233		356,334
Paychex Inc.		IT Services		3,861		319,575
Philip Morris International Inc.		Tobacco		3,840		291,571
Seagate Technology PLC		Technology Hardware, Storage & Peripherals		3,684		198,162
Tapestry Inc.		Textiles, Apparel & Luxury Goods		3,327		86,668
The Gap Inc.		Specialty Retail		2,226		38,643
The Procter & Gamble Co.		Household Products		3,102		385,827
United Parcel Service Inc., B		Air Freight & Logistics		3,360		402,595


						6,466,274

Total Common Stocks (Cost $16,207,089)						17,026,078



franklintempleton.com	Semiannual Report	39

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin LibertyQ Global Dividend ETF(continued)

Industry

Shares

Value

Preferred Stocks (Cost $243,202) 2.1%

Brazil 2.1%

Itau Unibanco Holding SA, 4.930%, pfd.

Banks

43,200

363,301

Total Investments (Cost $16,450,291) 99.5%

17,389,379

Other Assets, less Liabilities 0.5%

80,916

Net Assets 100.0%

17,470,295

See Abbreviations on page 81.

^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. This security has been deemed liquid under guidelines approved by the Fund’s Board of Trustees. At September 30, 2019, the value of this security was $72,882, representing 0.4% of net assets.

^bSecurity was purchased pursuant to Regulation S under the Securities Act of 1933, which exempts from registration securities offered and sold outside of the United States. Such a security cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration. This security has been deemed liquid under guidelines approved by the Fund’s Board of Trustees. At September 30, 2019, the value of this security was $72,882, representing 0.4% of net assets.

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

At September 30, 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 All Country World Index

Long

52,100

12/20/19

(813

)

*As of period end.



40	Semiannual 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


	Six Months Ended September 30, 2019 (unaudited)			Year Ended March 31,
	Six Months Ended September 30, 2019 (unaudited)			2019			2018			2017^a

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

Net asset value, beginning of period	$	30.90		$	30.14		$	27.18		$	25.32


Income from investment operations^b:

Net investment income^c		0.50			0.89			0.74			0.56

Net realized and unrealized gains (losses)		0.63			0.67			3.01			1.92


Total from investment operations		1.13			1.56			3.75			2.48


Less distributions from net investment income		(0.47	)		(0.80	)		(0.79	)		(0.62	)


Net asset value, end of period	$	31.56		$	30.90		$	30.14		$	27.18


Total return^d		3.70%			5.44%			13.91%			9.95%

Ratios to average net assets^e

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

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

Net investment income		3.22%			2.99%			2.53%			2.60%

Supplemental data

Net assets, end of period (000’s)		$18,938			$24,721			$18,082			$21,744

Portfolio turnover rate^g		18.73%			34.99%			35.01%			13.84%

Portfolio turnover rate excluding portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely or in part for cash^g,h		18.46%			—%			—%			—%

^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.

^hEffective September 30, 2019.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Semiannual Report	41

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, September 30, 2019 (unaudited)

Franklin LibertyQ Global Equity ETF



		Industry			Shares		Value
	Common Stocks and Other Equity Interests 97.7%
	Argentina 0.0%^†
	Transportadora de Gas del Sur SA, B, ADR		Oil, Gas & Consumable Fuels			165	$	1,401

	Australia 6.5%
	AGL Energy Ltd.		Multi-Utilities			1,134		14,654
	Alumina Ltd.		Metals & Mining			5,352		8,555
	Aurizon Holdings Ltd.		Road & Rail			3,531		14,051
	Australia & New Zealand Banking Group Ltd.		Banks			2,289		44,030
	Australian Stock Exchange Ltd.		Capital Markets			144		7,874
	Bank of Queensland Ltd.		Banks			261		1,746
	Bendigo and Adelaide Bank Ltd.		Banks			606		4,696
	BHP Group Ltd.		Metals & Mining			5,478		135,667
	Bluescope Steel Ltd.		Metals & Mining			906		7,339
a	Brambles Ltd.		Commercial Services & Supplies			2,835		21,797
	Cimic Group Ltd.		Construction & Engineering			159		3,373
	Coca-Cola Amatil Ltd.		Beverages			1,260		9,050
	Cochlear Ltd.		Health Care Equipment & Supplies			129		18,110
	Commonwealth Bank of Australia		Banks			1,434		78,176
	Crown Resorts Ltd.		Hotels, Restaurants & Leisure			777		6,315
	CSL Ltd.		Biotechnology			858		135,231
	Dexus		Equity Real Estate Investment Trusts (REITs	)		2,214		17,814
	Flight Centre Travel Group Ltd.		Hotels, Restaurants & Leisure			126		4,045
	Fortescue Metals Group Ltd.		Metals & Mining			3,249		19,283
	Goodman Group		Equity Real Estate Investment Trusts (REITs	)		2,367		22,637
	GPT Group		Equity Real Estate Investment Trusts (REITs	)		3,810		15,829
	Harvey Norman Holdings Ltd.		Multiline Retail			1,713		5,234
a	Harvey Norman Holdings Ltd., rts., 10/11/19		Multiline Retail			100		121
	Macquarie Group Ltd.		Capital Markets			408		36,070
	Medibank Private Ltd.		Insurance			6,549		15,018
	Mirvac Group		Equity Real Estate Investment Trusts (REITs	)		5,412		11,169
	National Australia Bank Ltd.		Banks			4,743		95,008
	REA Group Ltd.		Interactive Media & Services			81		5,912
	Rio Tinto Ltd.		Metals & Mining			834		52,126
	Rio Tinto PLC		Metals & Mining			2,256		117,013
	Scentre Group		Equity Real Estate Investment Trusts (REITs	)		7,011		18,583
	Sonic Healthcare Ltd.		Health Care Providers & Services			825		15,608
	South32 Ltd.		Metals & Mining			9,393		16,598
	Telstra Corp. Ltd.		Diversified Telecommunication Services			9,639		22,819
	Vicinity Centres		Equity Real Estate Investment Trusts (REITs	)		5,427		9,407
	Washington H. Soul Pattinson & Co. Ltd.		Oil, Gas & Consumable Fuels			180		2,553
	Wesfarmers Ltd.		Multiline Retail			2,412		64,745
	Westpac Banking Corp.		Banks			2,934		58,653
	Woodside Petroleum Ltd.		Oil, Gas & Consumable Fuels			1,380		30,137
	Woolworths Group Ltd.		Food & Staples Retailing			2,589		65,096


								1,232,142

	Austria 0.1%
	OMV AG		Oil, Gas & Consumable Fuels			225		12,078

	Belgium 0.1%
	Colruyt SA		Food & Staples Retailing			165		9,045
	Proximus SADP		Diversified Telecommunication Services			315		9,358


								18,403

	Brazil 0.3%
	Banco Santander Brasil SA		Banks			600		6,529
	BB Seguridade Participacoes SA		Insurance			1,800		15,137
	Cielo SA		IT Services			2,700		5,186
	Companhia de Saneamento Basico do Estado de Sao Paulo		Water Utilities			600		7,145



42	Semiannual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin LibertyQ Global Equity ETF(continued)



		Industry			Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Brazil (continued)
	Cosan SA		Oil, Gas & Consumable Fuels			100	$	1,277
	Engie Brasil SA		Independent Power and Renewable Electricity Producers			600		6,394
	Hypera SA		Pharmaceuticals			600		4,830
	IRB Brasil Resseguros SA		Insurance			630		5,696
	Lojas Renner SA		Multiline Retail			600		7,270
	M. Dias Branco SA		Food Products			300		2,521
	Petrobras Distribuidora SA		Specialty Retail			300		1,983
	Tim Participacoes SA		Wireless Telecommunication Services			900		2,573


								66,541

	Canada 2.6%
	BCE Inc.		Diversified Telecommunication Services			297		14,374
	Canadian Imperial Bank of Commerce		Banks			744		61,425
	Canadian National Railway Co.		Road & Rail			1,299		116,714
a	CGI Inc., A		IT Services			225		17,803
	CI Financial Corp.		Capital Markets			438		6,395
	Constellation Software Inc.		Software			39		38,975
	Empire Co. Ltd., A		Food & Staples Retailing			156		4,226
	First Capital Realty Inc.		Real Estate Management & Development			255		4,251
	Gildan Activewear Inc.		Textiles, Apparel & Luxury Goods			435		15,448
	Great-West Lifeco Inc.		Insurance			231		5,550
	H&R Real Estate Investment Trust		Equity Real Estate Investment Trusts (REITs	)		294		5,136
	Hydro One Ltd.		Electric Utilities			138		2,553
	IGM Financial Inc.		Capital Markets			48		1,364
	Inter Pipeline Ltd.		Oil, Gas & Consumable Fuels			630		11,063
	Magna International Inc.		Auto Components			741		39,524
	Methanex Corp.		Chemicals			54		1,917
	Metro Inc., A		Food & Staples Retailing			504		22,204
	Newmarket Gold Inc.		Metals & Mining			237		10,624
	Power Corp. of Canada		Insurance			408		9,405
	Power Financial Corp.		Insurance			234		5,429
	Quebecor Inc., B		Media			132		2,999
	RioCan REIT		Equity Real Estate Investment Trusts (REITs	)		288		5,738
	Rogers Communications Inc., B		Wireless Telecommunication Services			618		30,121
	Saputo Inc.		Food Products			432		13,286
	SmartCentres REIT		Equity Real Estate Investment Trusts (REITs	)		141		3,461
	Teck Resources Ltd., B		Metals & Mining			750		12,168
	TELUS Corp.		Diversified Telecommunication Services			327		11,645
	Thomson Reuters Corp.		Professional Services			165		11,035
	West Fraser Timber Co. Ltd.		Paper & Forest Products			108		4,323


								489,156

	Chile 0.1%
	Aguas Andinas SA, A		Water Utilities			3,456		1,893
	Colbun SA		Independent Power and Renewable Electricity Producers			7,131		1,288
	Compania Cervecerias Unidas SA		Beverages			267		2,986
	Enel Chile SA		Electric Utilities			45,534		3,941


								10,108

	China 2.9%
	Agricultural Bank of China Ltd., A		Banks			4,200		2,035
	Agricultural Bank of China Ltd., H		Banks			48,000		18,797
	Anhui Conch Cement Co. Ltd., A		Construction Materials			300		1,737
	Anhui Conch Cement Co. Ltd., H		Construction Materials			2,000		11,876
	Anta Sports Products Ltd.		Textiles, Apparel & Luxury Goods			3,000		24,817
	Bank of China Ltd., A		Banks			3,000		1,504
	Bank of China Ltd., H		Banks			153,000		60,112
	Bank of Communications Co. Ltd., A		Banks			2,200		1,679



franklintempleton.com	Semiannual Report	43

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin LibertyQ Global Equity ETF(continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	China (continued)
	Bank of Communications Co. Ltd., H		Banks		15,000	$	9,797
	China Cinda Asset Management Co. Ltd., H		Capital Markets		15,000		2,947
	China CITIC Bank Corp. Ltd., H		Banks		18,000		9,598
	China Conch Venture Holdings Ltd.		Machinery		3,000		11,098
	China Construction Bank Corp., H		Banks		78,000		59,499
	China Everbright Bank Co. Ltd., H		Banks		6,000		2,556
	China Minsheng Banking Corp. Ltd., A		Banks		1,200		1,012
	China Minsheng Banking Corp. Ltd., H		Banks		10,500		7,139
	China Mobile Ltd.		Wireless Telecommunication Services		12,500		103,404
	China Petroleum & Chemical Corp., H		Oil, Gas & Consumable Fuels		36,000		21,400
	China Resources Cement Holdings Ltd.		Construction Materials		4,000		4,010
	China Shenhua Energy Co. Ltd., A		Oil, Gas & Consumable Fuels		900		2,367
	China Shenhua Energy Co. Ltd., H		Oil, Gas & Consumable Fuels		6,000		12,047
	China Telecom Corp. Ltd., H		Diversified Telecommunication Services		12,000		5,465
	China Yangtze Power Co. Ltd., A		Independent Power and Renewable Electricity Producers		300		766
	China Zhongwang Holdings Ltd.		Metals & Mining		2,400		977
	Chongqing Rural Commercial Bank Co. Ltd., H		Banks		6,000		3,191
	CNOOC Ltd.		Oil, Gas & Consumable Fuels		15,000		22,884
	Dali Foods Group Co. Ltd.		Food Products		6,000		3,681
	Daqin Railway Co. Ltd., A		Road & Rail		1,500		1,594
	Dongfeng Motor Group Co. Ltd., H		Automobiles		6,000		5,702
	Focus Media Information Technology Co. Ltd.		Media		360		265
	Foshan Haitian Flavouring & Food Co. Ltd.		Food Products		300		4,617
	Guangdong Investment Ltd.		Water Utilities		6,000		11,741
	Guangzhou Automobile Group Co. Ltd., H		Automobiles		7,600		7,271
	Heilan Home Co. Ltd.,A-SHSC		Textiles, Apparel & Luxury Goods		600		682
	Henan Shuanghui Investment & Development Co. Ltd.		Food Products		300		1,038
	Industrial and Commercial Bank of China Ltd., H		Banks		51,000		34,154
	Jiangsu Expressway Co. Ltd., H		Transportation Infrastructure		2,000		2,541
	Kingboard Holdings Ltd.		Electronic Equipment, Instruments & Components		1,500		3,970
b,c	Longfor Group Holdings Ltd., 144A, Reg S		Real Estate Management & Development		3,000		11,212
	Maanshan Iron & Steel Co. Ltd., H		Metals & Mining		6,000		2,258
	Nexteer Automotive Group Ltd.		Auto Components		1,000		825
	Nine Dragons Paper Holdings Ltd.		Paper & Forest Products		3,000		2,526
	SAIC Motor Corp. Ltd.		Automobiles		600		1,998
	Sands China Ltd.		Hotels, Restaurants & Leisure		5,200		23,548
	Shaanxi Coal Industry Co. Ltd.		Oil, Gas & Consumable Fuels		600		733
	Shanxi Lu’an Environmental Energy Development Co. Ltd., A		Oil, Gas & Consumable Fuels		600		608
	Shenzhou International Group Holdings Ltd.		Textiles, Apparel & Luxury Goods		1,200		15,675
	Sihuan Pharmaceutical Holdings Group Ltd.		Pharmaceuticals		12,000		1,821
	Sino-Ocean Land Holdings Ltd.		Real Estate Management & Development		6,000		2,036
	Sinopec Shanghai Petrochemical Co. Ltd., H		Chemicals		12,000		3,490
	Yuzhou Properties Co.		Real Estate Management & Development		6,000		2,388
a	YY Inc., ADR		Interactive Media & Services		87		4,892


							553,980

	Colombia 0.0%^†
	Ecopetrol SA		Oil, Gas & Consumable Fuels		8,049		6,826



44	Semiannual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin LibertyQ Global Equity ETF(continued)



		Industry			Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Czech Republic 0.0%^†
	Moneta Money Bank AS		Banks			798	$	2,458

	Denmark 1.3%
	Coloplast AS, B		Health Care Equipment & Supplies			285		34,332
	Novo Nordisk AS, B		Pharmaceuticals			3,867		198,840
	Pandora AS		Household Durables			297		11,921
	Tryg AS		Insurance			84		2,408


								247,501

	Egypt 0.1%
	Commercial International Bank Egypt SAE		Banks			1,272		6,065
	Eastern Co. SAE		Tobacco			3,336		3,489
	ElSewedy Electric Co.		Electrical Equipment			1,380		1,136


								10,690

	Finland 0.1%
	Elisa OYJ		Diversified Telecommunication Services			264		13,614
	Nokian Renkaat OYJ		Auto Components			258		7,279
	Orion OYJ		Pharmaceuticals			198		7,387


								28,280

	France 0.8%
	Cie Generale des Etablissements Michelin SCA		Auto Components			294		32,821
	Covivio		Equity Real Estate Investment Trusts (REITs	)		57		6,034
	Hermes International		Textiles, Apparel & Luxury Goods			63		43,545
	Peugeot SA		Automobiles			1,101		27,463
	Renault SA		Automobiles			156		8,956
	Societe BIC SA		Commercial Services & Supplies			51		3,425
	Societe Generale SA		Banks			1,002		27,462


								149,706

	Germany 0.4%
	Aroundtown SA		Real Estate Management & Development			1,239		10,136
	Covestro AG		Chemicals			390		19,303
	Deutsche Lufthansa AG		Airlines			432		6,867
	E.ON SE		Multi-Utilities			1,908		18,552
	Hugo Boss AG		Textiles, Apparel & Luxury Goods			135		7,234
	Knorr-Bremse AG		Machinery			33		3,103
	TUI AG		Hotels, Restaurants & Leisure			747		8,706


								73,901

	Greece 0.0%^†
	JUMBO SA		Specialty Retail			195		3,701
	Motor Oil (Hellas) Corinth Refineries SA		Oil, Gas & Consumable Fuels			60		1,401


								5,102

	Hong Kong 0.6%
	CLP Holdings Ltd.		Electric Utilities			3,000		31,514
	HKT Trust and HKT Ltd.		Diversified Telecommunication Services			6,000		9,521
	Hongkong Land Holdings Ltd.		Real Estate Management & Development			2,100		11,802
	Jardine Matheson Holdings Ltd.		Industrial Conglomerates			400		21,400
	Kerry Properties Ltd.		Real Estate Management & Development			1,500		4,621
	Kingboard Laminates Holdings Ltd.		Chemicals			3,000		2,706
	Lee & Man Paper Manufacturing Ltd.		Paper & Forest Products			3,000		1,623
	NWS Holdings Ltd.		Industrial Conglomerates			3,000		4,646
	Power Assets Holdings Ltd.		Electric Utilities			1,500		10,074
	Swire Properties Ltd.		Real Estate Management & Development			1,800		5,648
	Vitasoy International Holdings Ltd.		Food Products			800		3,240
c	WH Group Ltd., Reg S		Food Products			13,500		12,089



franklintempleton.com	Semiannual Report	45

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin LibertyQ Global Equity ETF(continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Hong Kong (continued)
	Yue Yuen Industrial Holdings Ltd.		Textiles, Apparel & Luxury Goods		1,500	$	4,104


							122,988

	Hungary 0.0%^†
	MOL Hungarian Oil and Gas PLC		Oil, Gas & Consumable Fuels		789		7,421

	India 0.5%
	Infosys Ltd., ADR		IT Services		7,570		86,071

	Indonesia 0.3%
	Adaro Energy Tbk PT		Oil, Gas & Consumable Fuels		29,700		2,699
	Bukit Asam Tbk PT		Oil, Gas & Consumable Fuels		6,600		1,051
	Charoen Pokphand Indonesia Tbk PT		Food Products		5,700		2,148
	Gudang Garam Tbk PT		Tobacco		600		2,214
	Hanjaya Mandala Sampoerna Tbk PT		Tobacco		24,900		4,017
	Indah Kiat Pulp & Paper Corp Tbk PT		Paper & Forest Products		1,200		547
	Indofood CBP Sukses Makmur Tbk PT		Food Products		4,800		4,066
	Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk, B		Diversified Telecommunication Services		96,000		29,148
	Surya Citra Media Tbk PT		Media		13,800		1,128
	Unilever Indonesia Tbk PT		Household Products		3,900		12,776
	United Tractors Tbk PT		Oil, Gas & Consumable Fuels		3,300		4,783


							64,577

	Israel 0.3%
	Azrieli Group Ltd.		Real Estate Management & Development		21		1,650
	Bank LeumiLe-Israel BM		Banks		2,241		15,951
a	Check Point Software Technologies Ltd.		Software		240		26,280
	Israel Chemicals Ltd.		Chemicals		753		3,739


							47,620

	Italy 0.8%
	Assicurazioni Generali SpA		Insurance		927		17,969
	Enel SpA		Electric Utilities		6,750		50,415
	Intesa Sanpaolo SpA		Banks		23,820		56,495
	Moncler SpA		Textiles, Apparel & Luxury Goods		342		12,192
c	Poste Italiane SpA, Reg S		Insurance		954		10,848
	Recordati SpA		Pharmaceuticals		99		4,248
	Snam SpA		Gas Utilities		1,650		8,336


							160,503

	Japan 5.0%
	ABC-Mart Inc.		Specialty Retail		75		4,768
	Advantest Corp.		Semiconductors & Semiconductor Equipment		300		13,255
	Astellas Pharma Inc.		Pharmaceuticals		3,600		51,248
	Bandai Namco Holdings Inc.		Leisure Products		300		18,682
	Bridgestone Corp.		Auto Components		1,100		42,585
	CANON Inc.		Technology Hardware, Storage & Peripherals		1,600		42,674
	Daito Trust Construction Co. Ltd.		Real Estate Management & Development		150		19,167
	Daiwa House Industry Co. Ltd.		Real Estate Management & Development		600		19,464
	Hoya Corp.		Health Care Equipment & Supplies		700		57,121
	Iida Group Holdings Co. Ltd.		Household Durables		300		4,880
	ITOCHU Corp.		Trading Companies & Distributors		2,400		49,543
	Japan Airlines Co. Ltd.		Airlines		300		8,916
	Japan Post Bank Co. Ltd.		Banks		900		8,719
	Japan Tobacco Inc.		Tobacco		2,100		45,974
	JFE Holdings Inc.		Metals & Mining		600		7,217
	JXTG Holdings Inc.		Oil, Gas & Consumable Fuels		4,800		21,869
	Kakaku.com Inc.		Interactive Media & Services		300		7,378



46	Semiannual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin LibertyQ Global Equity ETF(continued)



		Industry			Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Japan (continued)
	KAO Corp.		Personal Products			730	$	53,929
	KDDI Corp.		Wireless Telecommunication Services			3,900		101,943
	Marubeni Corp.		Trading Companies & Distributors			2,400		15,938
	Mitsubishi Chemical Holdings Corp.		Chemicals			1,500		10,688
	Mitsubishi Gas Chemical Co. Inc.		Chemicals			600		8,006
a	Nexon Co. Ltd.		Entertainment			300		3,639
	Nippon Telegraph & Telephone Corp.		Diversified Telecommunication Services			1,400		66,791
	Nissan Motor Co. Ltd.		Automobiles			3,900		24,326
	NTT DOCOMO Inc.		Wireless Telecommunication Services			3,000		76,419
	Oracle Corp. Japan		Software			75		6,502
	Sekisui House Ltd.		Household Durables			300		5,899
	Shionogi & Co. Ltd.		Pharmaceuticals			300		16,652
	Showa Denko K.K.		Chemicals			100		2,614
	Subaru Corp.		Automobiles			1,200		33,754
	Suzuki Motor Corp.		Automobiles			300		12,733
	Taisei Corp.		Construction & Engineering			400		15,489
	Tokyo Electron Ltd.		Semiconductors & Semiconductor Equipment			300		57,085
	Tosoh Corp.		Chemicals			600		7,928
	Zozo Inc.		Internet & Direct Marketing Retail			300		6,917


								950,712

	Luxembourg 0.0%^†
	RTL Group SA		Media			78		3,752

	Macau 0.2%
	Galaxy Entertainment Group Ltd.		Hotels, Restaurants & Leisure			4,000		24,874
	Wynn Macau Ltd.		Hotels, Restaurants & Leisure			2,400		4,684


								29,558

	Malaysia 0.2%
	AirAsia Group Bhd		Airlines			3,300		1,387
	British American Tobacco Malaysia Bhd.		Tobacco			300		1,357
	Digi.com Bhd.		Wireless Telecommunication Services			7,800		8,849
	Fraser & Neave Holdings Bhd.		Beverages			300		2,501
	Hartalega Holdings Bhd.		Health Care Equipment & Supplies			2,700		3,385
	Nestle (Malaysia) Bhd.		Food Products			200		6,960
	Petronas Chemicals Group Bhd.		Chemicals			5,100		9,184
	Petronas Gas Bhd.		Gas Utilities			600		2,347
	Westports Holdings Bhd.		Transportation Infrastructure			2,700		2,663


								38,633

	Mexico 0.3%
	Fibra Uno Administracion SA de CV		Equity Real Estate Investment Trusts (REITs	)		4,905		7,165
	Grupo Aeroportuario del Pacifico SAB de CV		Transportation Infrastructure			540		5,194
	Kimberly-Clark de Mexico SAB de CV, A		Household Products			3,720		7,467
	Megacable Holdings SAB de CV		Media			354		1,425
	Promotora y Operadora de Infraestructura SAB de CV		Transportation Infrastructure			90		806
	Wal-Mart de Mexico SAB de CV, V		Food & Staples Retailing			10,152		30,069


								52,126

	Netherlands 0.4%
	Akzo Nobel NV		Chemicals			180		16,050
	Koninklijke Ahold Delhaize NV		Food & Staples Retailing			2,100		52,554


								68,604



franklintempleton.com	Semiannual Report	47

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin LibertyQ Global Equity ETF(continued)



		Industry		Shares			Value
	Common Stocks and Other Equity Interests (continued)
	New Zealand 0.2%
	Fisher & Paykel Healthcare Corp. Ltd.		Health Care Equipment & Supplies		1,286		$	13,951
	Meridian Energy Ltd.		Independent Power and Renewable Electricity Producers		1,083			3,531
	Spark New Zealand Ltd.		Diversified Telecommunication Services		4,698			12,991


								30,473

	Norway 0.3%
	Mowi ASA		Food Products		900			20,791
	Telenor ASA		Diversified Telecommunication Services		1,344			27,003


								47,794

	Pakistan 0.0%^†
	MCB Bank Ltd.		Banks		900	��		976
	Oil & Gas Development Co. Ltd.		Oil, Gas & Consumable Fuels		2,100			1,653


								2,629

	Philippines 0.0%^†
	DMCI Holdings Inc.		Industrial Conglomerates		6,900			1,106
	Globe Telecom Inc.		Wireless Telecommunication Services		75			2,648
	Manila Electric Co.		Electric Utilities		630			4,498


								8,252

	Poland 0.0%^†
	Powszechny Zaklad Ubezpieczen SA		Insurance		630			5,874

	Portugal 0.0%^†
	Jeronimo Martins SGPS SA		Food & Staples Retailing		465			7,848

	Qatar 0.3%
	Barwa Real Estate Co.		Real Estate Management & Development		1,140			1,049
	Industries Qatar QSC		Industrial Conglomerates		4,050			12,136
	Masraf Al Rayan QSC		Banks		2,460			2,392
	Mesaieed Petrochemical Holding Co.		Chemicals		4,260			3,487
	Qatar Electricity & Water Co. QSC		Multi-Utilities		690			2,928
	Qatar Fuel QSC		Oil, Gas & Consumable Fuels		519			3,354
	Qatar Islamic Bank SAQ		Banks		1,590			6,812
	Qatar National Bank SAQ		Banks		5,820			30,834


								62,992

	Russia 2.0%
	Alrosa PJSC		Metals & Mining		7,797			8,953
	Evraz PLC		Metals & Mining		681			3,924
	Gazprom PJSC		Oil, Gas & Consumable Fuels		24,345			84,761
	Inter RAO UES PJSC		Electric Utilities		63,657			4,405
	LUKOIL PJSC		Oil, Gas & Consumable Fuels		1,101			91,421
	Magnitogorsk Iron & Steel Works		Metals & Mining		4,797			2,895
	MMC Norilsk Nickel PJSC		Metals & Mining		162			41,662
	Mobile TeleSystems PJSC, ADR		Wireless Telecommunication Services		1,086			8,797
	NLMK PJSC		Metals & Mining		3,216			7,049
c	Novatek PJSC, GDR, Reg S		Oil, Gas & Consumable Fuels		180			36,504
	Polymetal International PLC		Metals & Mining		321			4,509
	Polyus Gold OJSC		Metals & Mining		54			6,280
	Rosneft PJSC		Oil, Gas & Consumable Fuels		2,310			14,928
	Severstal PJSC		Metals & Mining		612			8,802
	Surgutneftegas PJSC		Oil, Gas & Consumable Fuels		14,640			7,988
	Tatneft PAO		Oil, Gas & Consumable Fuels		3,927			41,605
c	X5 Retail Group NV, GDR, Reg S		Food & Staples Retailing		99			3,477


								377,960



48	Semiannual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin LibertyQ Global Equity ETF(continued)



		Industry			Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Saudi Arabia 0.2%
	Al-Rajhi Bank		Banks			567	$	9,568
	Itau Unibanco Holding SA		Specialty Retail			69		2,906
	National Commercial Bank		Banks			2		3
	National Commercial Bank		Banks			495		6,077
	Riyad Bank		Banks			552		3,591
	Saudi Arabian Fertilizer Co.		Chemicals			114		2,440
	Saudi Telecom Co.		Diversified Telecommunication Services			213		6,178
	Yanbu National Petrochemical Co.		Chemicals			177		2,524


								33,287

	Singapore 0.4%
	CapitaLand Mall Trust		Equity Real Estate Investment Trusts (REITs	)		4,500		8,558
	ComfortDelGro Corp. Ltd.		Road & Rail			4,500		7,810
	SATS Ltd.		Transportation Infrastructure			1,500		5,250
	Singapore Exchange Ltd.		Capital Markets			2,100		12,862
	Singapore Technologies Engineering Ltd.		Aerospace & Defense			3,000		8,330
	Singapore Telecommunications Ltd.		Diversified Telecommunication Services			15,900		35,642
	Venture Corp. Ltd.		Electronic Equipment, Instruments & Components			300		3,321
	Yangzijiang Shipbuilding Holdings Ltd.		Machinery			4,200		2,916


								84,689

	South Africa 0.3%
	Capitec Bank Holdings Ltd.		Banks			48		4,076
	Clicks Group Ltd.		Food & Staples Retailing			417		5,913
	Exxaro Resources Ltd.		Oil, Gas & Consumable Fuels			552		4,754
	Kumba Iron Ore Ltd.		Metals & Mining			141		3,482
	Mr. Price Group Ltd.		Specialty Retail			591		6,168
	RMB Holdings Ltd.		Diversified Financial Services			858		4,250
	Telkom SA SOC Ltd.		Diversified Telecommunication Services			534		2,486
	Tiger Brands Ltd.		Food Products			336		4,666
	Truworths International Ltd.		Specialty Retail			978		3,418
	Vodacom Group Ltd.		Wireless Telecommunication Services			1,173		9,256


								48,469

	South Korea 2.5%
	BGF Retail Co. Ltd.		Food & Staples Retailing			9		1,482
	BNK Financial Group Inc.		Banks			360		2,164
	Daelim Industrial Co. Ltd.		Construction & Engineering			30		2,608
	DB Insurance Co. Ltd.		Insurance			78		3,365
	Hana Financial Group Inc.		Banks			588		17,328
	Hankook Tire & Technology Co. Ltd.		Auto Components			99		2,669
	Hanwha Life Insurance Co. Ltd.		Insurance			810		1,612
	Hyundai Marine & Fire Insurance Co. Ltd.		Insurance			141		3,112
	Industrial Bank of Korea		Banks			630		6,952
	Kangwon Land Inc.		Hotels, Restaurants & Leisure			255		6,300
	KB Financial Group Inc.		Banks			708		25,274
	Kia Motors Corp.		Automobiles			246		9,378
	Korea Zinc Co. Ltd.		Metals & Mining			15		5,618
	KT&G Corp.		Tobacco			267		23,549
	Kumho Petrochemical Co. Ltd.		Chemicals			30		1,796
	LG Corp.		Industrial Conglomerates			159		9,305
	LG Uplus Corp.		Diversified Telecommunication Services			153		1,746
	Lotte Chemical Corp.		Chemicals			36		7,103
	NCsoft Corp.		Entertainment			21		9,147
c	Orange Life Insurance Ltd., Reg S		Insurance			60		1,357
	S-1 Corp.		Commercial Services & Supplies			39		3,199
	Samsung Electronics Co. Ltd.		Technology Hardware, Storage & Peripherals			4,542		186,252
	Samsung Fire & Marine Insurance Co. Ltd.		Insurance			42		7,830



franklintempleton.com	Semiannual Report	49

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin LibertyQ Global Equity ETF(continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	South Korea (continued)
	Shinhan Financial Group Co. Ltd.		Banks		381	$	13,314
	SK Hynix Inc.		Semiconductors & Semiconductor Equipment		1,491		102,462
	SK Telecom Co. Ltd.		Wireless Telecommunication Services		45		9,085
	Woongjin Coway Co. Ltd.		Household Durables		111		7,851


							471,858

	Spain 1.1%
	Aena SME SA		Transportation Infrastructure		51		9,341
	Banco de Sabadell SA		Banks		8,055		7,817
	Enagas SA		Gas Utilities		366		8,483
	Endesa SA		Electric Utilities		684		18,001
	Iberdrola SA		Electric Utilities		4,923		51,180
	Industria de Diseno Textil SA		Specialty Retail		2,112		65,391
	Red Electrica Corp. SA		Electric Utilities		567		11,519
	Repsol SA		Oil, Gas & Consumable Fuels		2,094		32,737


							204,469

	Sweden 0.3%
	Boliden AB		Metals & Mining		450		10,355
	Hennes & Mauritz AB, B		Specialty Retail		1,785		34,647
	Telia Co. AB		Diversified Telecommunication Services		3,915		17,548


							62,550

	Switzerland 2.7%
	EMS-Chemie Holding AG		Chemicals		15		9,349
	Geberit AG		Building Products		27		12,905
	Nestle SA		Food Products		1,845		200,348
	Partners Group Holding AG		Capital Markets		42		32,256
	Roche Holding AG		Pharmaceuticals		690		200,983
	Swiss Life Holding AG		Insurance		57		27,272
	Swisscom AG		Diversified Telecommunication Services		45		22,217


							505,330

	Taiwan 2.3%
	Advantech Co. Ltd.		Technology Hardware, Storage & Peripherals		1,000		8,800
	Catcher Technology Co. Ltd.		Technology Hardware, Storage & Peripherals		1,000		7,575
	Chicony Electronics Co. Ltd.		Technology Hardware, Storage & Peripherals		2,015		5,936
	China Development Financial Holding Corp.		Insurance		12,000		3,574
a	China Life Insurance Co. Ltd.		Insurance		3,717		2,947
	Chunghwa Telecom Co. Ltd.		Diversified Telecommunication Services		6,000		21,467
	Far EasTone Telecommunications Co. Ltd.		Wireless Telecommunication Services		3,000		7,011
	Feng Tay Enterprise Co. Ltd.		Textiles, Apparel & Luxury Goods		825		5,917
	Formosa Chemicals & Fibre Corp.		Chemicals		6,000		16,767
	Formosa Petrochemical Corp.		Oil, Gas & Consumable Fuels		3,000		9,496
	Formosa Plastics Corp.		Chemicals		7,000		21,322
	Largan Precision Co. Ltd.		Electronic Equipment, Instruments & Components		200		28,687
	Lite-On Technology Corp.		Technology Hardware, Storage & Peripherals		4,000		6,356
	Nan Ya Plastics Corp.		Chemicals		9,000		20,220
	Nanya Technology Corp.		Semiconductors & Semiconductor Equipment		3,000		7,784
	Novatek Microelectronics Corp. Ltd.		Semiconductors & Semiconductor Equipment		1,000		5,737
	Powertech Technology Inc.		Semiconductors & Semiconductor Equipment		2,000		5,621
	President Chain Store Corp.		Food & Staples Retailing		1,500		14,021
	Taiwan Business Bank		Banks		6,300		2,589
	Taiwan Mobile Co. Ltd.		Wireless Telecommunication Services		3,000		10,830
	Taiwan Semiconductor Manufacturing Co. Ltd.		Semiconductors & Semiconductor Equipment		23,000		201,647
	The Shanghai Commercial & Savings Bank Ltd.		Banks		3,000		5,038
	Vanguard International Semiconductor Corp.		Semiconductors & Semiconductor Equipment		2,000		4,042
	WPG Holdings Ltd.		Electronic Equipment, Instruments & Components		3,000		3,694



50	Semiannual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin LibertyQ Global Equity ETF(continued)



		Industry			Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Taiwan (continued)
	Yageo Corp.		Electronic Equipment, Instruments & Components			600	$	4,767
	Yuanta Financial Holding Co. Ltd.		Capital Markets			6,000		3,578


								435,423

	Thailand 0.6%
	Advanced Info Service PCL		Wireless Telecommunication Services			2,100		15,105
	Airports of Thailand Public Co. Ltd., NVDR		Transportation Infrastructure			6,900		16,864
	Bumrungrad Hospital PCL		Health Care Providers & Services			900		3,767
	Home Product Center PCL, NVDR		Specialty Retail			12,300		6,877
	Intouch Holdings PCL		Wireless Telecommunication Services			3,000		6,425
	Land and Houses PCL, NVDR		Real Estate Management & Development			2,700		847
	PTT Exploration and Production PCL, NVDR		Oil, Gas & Consumable Fuels			1,800		7,121
	PTT Global Chemical PCL, NVDR		Chemicals			4,200		7,381
	PTT PCL		Oil, Gas & Consumable Fuels			19,200		29,034
	The Siam Cement PCL		Construction Materials			900		12,006


								105,427

	Turkey 0.2%
	BIM Birlesik Magazalar AS		Food & Staples Retailing			1,032		8,977
	Eregli Demir ve Celik Fabrikalari AS		Metals & Mining			3,552		4,309
	Ford Otomotiv Sanayi AS		Automobiles			255		2,682
	Haci Omer Sabanci Holding AS		Diversified Financial Services			540		915
	TAV Havalimanlari Holding AS		Transportation Infrastructure			423		1,768
	Tupras-Turkiye Petrol Rafinerileri AS		Oil, Gas & Consumable Fuels			330		8,387
	Turkcell Iletisim Hizmetleri AS		Wireless Telecommunication Services			1,935		4,458
a	Turkiye Garanti Bankasi AS		Banks			2,196		3,971
a	Turkiye Is Bankasi AS, C		Banks			2,433		2,702
	Turkiye Sise Ve Cam Fabrikalari AS		Industrial Conglomerates			1,182		978


								39,147

	United Arab Emirates 0.3%
	Abu Dhabi Commercial Bank PJSC		Banks			3,690		7,896
	Aldar Properties PJSC		Real Estate Management & Development			5,970		3,397
	Dubai Islamic Bank PJSC		Banks			2,499		3,572
	Emaar Development PJSC		Real Estate Management & Development			1,050		1,178
	Emirates Telecommunications Group Co. PJSC		Diversified Telecommunication Services			3,642		16,360
	First Abu Dhabi Bank PJSC		Banks			4,068		16,656


								49,059

	United Kingdom 6.9%
	Admiral Group PLC		Insurance			495		12,920
	Anglo American PLC		Metals & Mining			1,671		38,531
	Auto Trader Group PLC		Interactive Media & Services			1,395		8,767
	Barratt Developments PLC		Household Durables			2,427		19,380
	BHP Group PLC		Metals & Mining			3,009		64,237
	British Land Co. PLC		Equity Real Estate Investment Trusts (REITs	)		1,368		9,858
	BT Group PLC		Diversified Telecommunication Services			18,162		39,968
	Burberry Group PLC		Textiles, Apparel & Luxury Goods			897		24,031
	Centrica PLC		Multi-Utilities			4,272		3,882
	Compass Group PLC		Hotels, Restaurants & Leisure			2,751		70,954
	Direct Line Insurance Group PLC		Insurance			3,024		11,187
	easyJet PLC		Airlines			99		1,403
	GlaxoSmithKline PLC		Pharmaceuticals			9,180		197,358
	Hargreaves Lansdown PLC		Capital Markets			630		16,140
	Imperial Brands PLC		Tobacco			2,043		46,027
	Intertek Group PLC		Professional Services			258		17,416
	ITV PLC		Media			8,439		13,093
	Kingfisher PLC		Specialty Retail			3,435		8,754



franklintempleton.com	Semiannual Report	51

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin LibertyQ Global Equity ETF(continued)



		Industry			Shares		Value
	Common Stocks and Other Equity Interests (continued)
	United Kingdom (continued)
	Land Securities Group PLC		Equity Real Estate Investment Trusts (REITs	)		1,080	$	11,398
	Marks & Spencer Group PLC		Multiline Retail			3,248		7,383
	Mondi PLC		Paper & Forest Products			624		11,980
	Mondi PLC		Paper & Forest Products			144		2,758
	Next PLC		Multiline Retail			351		26,757
	Persimmon PLC		Household Durables			873		23,345
	RELX PLC		Professional Services			3,768		89,732
	Royal Dutch Shell PLC, A		Oil, Gas & Consumable Fuels			3,147		92,453
	Royal Dutch Shell PLC, B		Oil, Gas & Consumable Fuels			2,526		74,582
	SSE PLC		Electric Utilities			1,818		27,903
	Taylor Wimpey PLC		Household Durables			8,184		16,288
	The Berkeley Group Holdings PLC		Household Durables			267		13,750
	Unilever NV, IDR		Personal Products			2,757		165,763
	Unilever PLC		Personal Products			2,112		127,268
	Whitbread PLC		Hotels, Restaurants & Leisure			303		16,033


								1,311,299

	United States 53.2%
	AbbVie Inc.		Biotechnology			1,236		93,590
	Accenture PLC, A		IT Services			1,029		197,928
	AGNC Investment Corp.		Mortgage Real Estate Investment Trusts (REITs	)		1,032		16,605
	Air Products and Chemicals Inc.		Chemicals			177		39,269
	Altria Group Inc.		Tobacco			3,531		144,418
	Amcor PLC		Containers & Packaging			2,577		25,126
	American Electric Power Co. Inc.		Electric Utilities			834		78,137
	American Tower Corp.		Equity Real Estate Investment Trusts (REITs	)		396		87,567
	Amgen Inc.		Biotechnology			1,068		206,669
	Annaly Capital Management Inc.		Mortgage Real Estate Investment Trusts (REITs	)		2,787		24,526
	Apple Inc.		Technology Hardware, Storage & Peripherals			960		215,011
	Applied Materials Inc.		Semiconductors & Semiconductor Equipment			1,794		89,521
	AT&T Inc.		Diversified Telecommunication Services			5,739		217,164
a	AutoZone Inc.		Specialty Retail			21		22,777
	Best Buy Co. Inc.		Specialty Retail			486		33,529
a	Biogen Inc.		Biotechnology			390		90,800
	BorgWarner Inc.		Auto Components			138		5,062
	Bristol-Myers Squibb Co.		Pharmaceuticals			2,670		135,396
	Broadcom Inc.		Semiconductors & Semiconductor Equipment			354		97,729
	Broadridge Financial Solutions Inc.		IT Services			222		27,623
a	Burlington Stores Inc.		Specialty Retail			90		17,984
	C.H. Robinson Worldwide Inc.		Air Freight & Logistics			234		19,838
	Cabot Oil & Gas Corp., A		Oil, Gas & Consumable Fuels			348		6,114
a	Cadence Design Systems Inc.		Software			294		19,428
	Campbell Soup Co.		Food Products			333		15,624
a	Capri Holdings Ltd.		Textiles, Apparel & Luxury Goods			327		10,843
	Carnival Corp.		Hotels, Restaurants & Leisure			696		30,422
	CBS Corp., B		Media			270		10,900
	Celanese Corp., A		Chemicals			105		12,840
	Church & Dwight Co. Inc.		Household Products			222		16,703
	Cimarex Energy Co.		Oil, Gas & Consumable Fuels			90		4,315
	Cisco Systems Inc.		Communications Equipment			3,285		162,312
	Citrix Systems Inc.		Software			129		12,451
	Clorox Co.		Household Products			309		46,928
	Cognizant Technology Solutions Corp., A		IT Services			882		53,154
a	Copart Inc.		Commercial Services & Supplies			333		26,750
	Cummins Inc.		Machinery			276		44,897
	D.R. Horton Inc.		Household Durables			285		15,022
	Darden Restaurants Inc.		Hotels, Restaurants & Leisure			249		29,437
	Delta Air Lines Inc.		Airlines			303		17,453



52	Semiannual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin LibertyQ Global Equity ETF(continued)



		Industry			Shares		Value
	Common Stocks and Other Equity Interests (continued)
	United States (continued)
	Dollar General Corp.		Multiline Retail			480	$	76,291
	Dominion Energy Inc.		Multi-Utilities			636		51,541
	Dow Inc.		Chemicals			624		29,734
	Eli Lilly & Co.		Pharmaceuticals			1,557		174,119
	Equity Lifestyle Properties Inc.		Equity Real Estate Investment Trusts (REITs	)		72		9,619
	Erie Indemnity Co., A		Insurance			24		4,456
	Estee Lauder Cos. Inc., A		Personal Products			399		79,381
	Expeditors International of Washington Inc.		Air Freight & Logistics			312		23,178
	Extra Space Storage Inc.		Equity Real Estate Investment Trusts (REITs	)		180		21,028
a	F5 Networks Inc.		Communications Equipment			150		21,063
a	Facebook Inc., A		Interactive Media & Services			972		173,094
	FactSet Research Systems Inc.		Capital Markets			33		8,018
	Fastenal Co.		Trading Companies & Distributors			1,119		36,558
	Ford Motor Co.		Automobiles			5,652		51,772
	Fox Corp., A		Media			285		8,987
	Fox Corp., B		Media			150		4,731
	Garmin Ltd.		Household Durables			264		22,358
	General Mills Inc.		Food Products			1,032		56,884
	General Motors Co.		Automobiles			2,466		92,426
	Gilead Sciences Inc.		Biotechnology			2,514		159,337
	H&R Block Inc.		Diversified Consumer Services			459		10,842
	Hanesbrands Inc.		Textiles, Apparel & Luxury Goods			546		8,365
	HCP Inc.		Equity Real Estate Investment Trusts (REITs	)		444		15,820
	HollyFrontier Corp.		Oil, Gas & Consumable Fuels			258		13,839
	Hormel Foods Corp.		Food Products			615		26,894
	Illinois Tool Works Inc.		Machinery			285		44,600
	Ingredion Inc.		Food Products			132		10,790
	Intel Corp.		Semiconductors & Semiconductor Equipment			4,002		206,223
	International Business Machines Corp.		IT Services			1,353		196,753
	Intuit Inc.		Software			549		146,001
	J.B. Hunt Transport Services Inc.		Road & Rail			141		15,602
	Jack Henry & Associates Inc.		IT Services			162		23,647
	Johnson & Johnson		Pharmaceuticals			1,311		169,617
	Kellogg Co.		Food Products			357		22,973
	Kimberly-Clark Corp.		Household Products			657		93,327
	Kimco Realty Corp.		Equity Real Estate Investment Trusts (REITs	)		543		11,338
	KLA Corp.		Semiconductors & Semiconductor Equipment			342		54,532
	Kohl’s Corp.		Multiline Retail			345		17,133
	L Brands Inc.		Specialty Retail			360		7,052
	Lam Research Corp.		Semiconductors & Semiconductor Equipment			231		53,386
	Las Vegas Sands Corp.		Hotels, Restaurants & Leisure			666		38,468
	Lear Corp.		Auto Components			132		15,563
	Leggett & Platt Inc.		Household Durables			219		8,966
	Lockheed Martin Corp.		Aerospace & Defense			471		183,718
	Lowe’s Cos. Inc.		Specialty Retail			1,410		155,044
a	Lululemon Athletica Inc.		Textiles, Apparel & Luxury Goods			192		36,966
	LyondellBasell Industries NV, A		Chemicals			786		70,323
	Macy’s Inc.		Multiline Retail			615		9,557
	MarketAxess Holdings Inc.		Capital Markets			36		11,790
	Mastercard Inc., A		IT Services			720		195,530
	Maxim Integrated Products Inc.		Semiconductors & Semiconductor Equipment			534		30,924
	Merck & Co. Inc.		Pharmaceuticals			2,037		171,475
a	Mettler-Toledo International Inc.		Life Sciences Tools & Services			18		12,679
a	Micron Technology Inc.		Semiconductors & Semiconductor Equipment			2,076		88,957
	Microsoft Corp.		Software			1,422		197,701
a	Monster Beverage Corp.		Beverages			330		19,160
	Moody’s Corp.		Capital Markets			147		30,110



franklintempleton.com	Semiannual Report	53

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin LibertyQ Global Equity ETF(continued)



		Industry			Shares		Value
	Common Stocks and Other Equity Interests (continued)
	United States (continued)
	MSCI Inc.		Capital Markets			159	$	34,622
	National Retail Properties Inc.		Equity Real Estate Investment Trusts (REITs	)		198		11,167
	NetApp Inc.		Technology Hardware, Storage & Peripherals			225		11,815
	NIKE Inc., B		Textiles, Apparel & Luxury Goods			2,085		195,823
d	Nordstrom Inc.		Multiline Retail			228		7,677
	Nucor Corp.		Metals & Mining			276		14,051
a	NVR Inc.		Household Durables			7		26,021
a	O’Reilly Automotive Inc.		Specialty Retail			162		64,559
	Occidental Petroleum Corp.		Oil, Gas & Consumable Fuels			591		26,282
	OGE Energy Corp.		Electric Utilities			135		6,126
	Old Dominion Freight Line Inc.		Road & Rail			99		16,827
	Omnicom Group Inc.		Media			384		30,067
	PACCAR Inc.		Machinery			297		20,793
	Packaging Corp. of America		Containers & Packaging			78		8,276
	Paychex Inc.		IT Services			642		53,138
	PepsiCo Inc.		Beverages			1,416		194,134
	Pfizer Inc.		Pharmaceuticals			4,359		156,619
	Philip Morris International Inc.		Tobacco			2,136		162,186
	Phillips 66		Oil, Gas & Consumable Fuels			402		41,165
	PPL Corp.		Electric Utilities			591		18,611
	Public Service Enterprise Group Inc.		Multi-Utilities			834		51,775
	Public Storage		Equity Real Estate Investment Trusts (REITs	)		369		90,505
	PulteGroup Inc.		Household Durables			390		14,254
	Ralph Lauren Corp.		Textiles, Apparel & Luxury Goods			84		8,019
a	Regeneron Pharmaceuticals Inc.		Biotechnology			72		19,973
	Robert Half International Inc.		Professional Services			243		13,525
	Rockwell Automation Inc.		Electrical Equipment			93		15,326
	Rollins Inc.		Commercial Services & Supplies			249		8,483
	Ross Stores Inc.		Specialty Retail			867		95,240
	S&P Global Inc.		Capital Markets			417		102,157
	Seagate Technology PLC		Technology Hardware, Storage & Peripherals			678		36,470
	Simon Property Group Inc.		Equity Real Estate Investment Trusts (REITs	)		714		111,134
	Skyworks Solutions Inc.		Semiconductors & Semiconductor Equipment			402		31,858
	Snap-on Inc.		Machinery			75		11,740
	Southwest Airlines Co.		Airlines			252		13,611
	Starbucks Corp.		Hotels, Restaurants & Leisure			2,295		202,924
	Steel Dynamics Inc.		Metals & Mining			198		5,900
	Sysco Corp.		Food & Staples Retailing			852		67,649
	Tapestry Inc.		Textiles, Apparel & Luxury Goods			528		13,754
	Target Corp.		Multiline Retail			969		103,596
	TE Connectivity Ltd.		Electronic Equipment, Instruments & Components			321		29,911
	Texas Instruments Inc.		Semiconductors & Semiconductor Equipment			1,674		216,348
	The Gap Inc.		Specialty Retail			540		9,374
	The Hershey Co.		Food Products			339		52,542
	The Home Depot Inc.		Specialty Retail			945		219,259
	The Kroger Co.		Food & Staples Retailing			1,398		36,040
	The Procter & Gamble Co.		Household Products			1,707		212,317
	The TJX Cos. Inc.		Specialty Retail			2,802		156,183
	The Walt Disney Co.		Entertainment			1,341		174,759
	Tractor Supply Co.		Specialty Retail			237		21,434
	Tyson Foods Inc.		Food Products			522		44,965
a	Ulta Beauty Inc.		Specialty Retail			111		27,822
	Union Pacific Corp.		Road & Rail			1,050		170,079
	United Parcel Service Inc., B		Air Freight & Logistics			666		79,800
	Valero Energy Corp.		Oil, Gas & Consumable Fuels			732		62,396
	Ventas Inc.		Equity Real Estate Investment Trusts (REITs	)		429		31,330
	Verizon Communications Inc.		Diversified Telecommunication Services			3,174		191,583



54	Semiannual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin LibertyQ Global Equity ETF(continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	United States (continued)
	VF Corp.		Textiles, Apparel & Luxury Goods		573	$	50,991
	Viacom Inc., B		Entertainment		561		13,481
	VMware Inc., A		Software		78		11,705
	W.W. Grainger Inc.		Trading Companies & Distributors		81		24,069
	Walgreens Boots Alliance Inc.		Food & Staples Retailing		1,077		59,569
	Waste Management Inc.		Commercial Services & Supplies		330		37,950
	WEC Energy Group Inc.		Multi-Utilities		510		48,501
	Xilinx Inc.		Semiconductors & Semiconductor Equipment		201		19,276


							10,071,638

	Total Common Stocks and Other Equity Interests (Cost $17,054,758)						18,507,305


	Management Investment Companies (Cost $186,027) 1.1%
	India 1.1%
	iShares MSCI India ETF		Diversified Financial Services		5,902		198,130

	Preferred Stocks 0.7%
	Brazil 0.4%
e	Itau Unibanco Holding SA, 4.930%, pfd.		Banks		3,900		32,798
e	Itausa-Investimentos Itau SA, 5.463%, pfd.		Banks		9,600		30,376
e	Telefonica Brasil SA, 6.735%, pfd.		Diversified Telecommunication Services		900		11,871


							75,045

	Germany 0.1%
e	Bayerische Motoren Werke AG, 6.909%, pfd.		Automobiles		108		5,999
e	Porsche Automobil Holding SE, 3.702%, pfd.		Automobiles		240		15,620


							21,619

	Russia 0.1%
e	Surgutneftegas PJSC, 20.342%, pfd.		Oil, Gas & Consumable Fuels		18,615		10,747
e	Transneft PJSC, 7.147%, pfd.		Oil, Gas & Consumable Fuels		1		2,309

						13,056

	South Korea 0.1%
e	LG Chem Ltd., 3.612%, pfd.		Chemicals		9		1,260
e	LG Household & Health Care Ltd., 1.206%, pfd.		Personal Products		3		1,934
e	Samsung Electronics Co. Ltd., 3.587%, pfd.		Technology Hardware, Storage & Peripherals		849		28,036


							31,230

	Total Preferred Stocks (Cost $125,451)						140,950

	Total Investments before Short Term Investments (Cost $17,366,236)						18,846,385


	Short Term Investments (Cost $3,375) 0.0%^†
	Investments from Cash Collateral Received for Loaned Securities 0.0%^†
	United States 0.0%^†
f,g	Institutional Fiduciary Trust Portfolio, 1.71%						3,375

	Total Investments (Cost $17,369,611) 99.5%						18,849,760
	Other Assets, less Liabilities 0.5%						88,710

	Net Assets 100.0%					$	18,938,470



franklintempleton.com	Semiannual Report	55

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin LibertyQ Global Equity ETF(continued)

See Abbreviations on page 81.

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

^aNon-income producing.

^bSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. This security has been deemed liquid under guidelines approved by the Fund’s Board of Trustees. At September 30, 2019, the value of this security was $11,212, 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. These securities have been deemed liquid under guidelines approved by the Fund’s Board of Trustees. At September 30, 2019, the aggregate value of these securities was $75,487, representing 0.3% of net assets.

^dA portion or all of the security is on loan at September 30, 2019. See Note 1(d).

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

^fSee Note 3(c) regarding investments in affiliated management investment companies.

^gThe rate shown is the annualizedseven-day effective yield at period end.

At September 30, 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

52,100

12/20/19

(813

)

*As of period end.



56	Semiannual 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


	Six Months Ended September 30, 2019 (unaudited)			Year Ended March 31,
	Six Months Ended September 30, 2019 (unaudited)			2019			2018			2017^a

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

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


Income from investment operations^b:

Net investment income^c		0.52			0.93			0.77			0.52

Net realized and unrealized gains (losses)		0.98			0.79			0.10			1.45


Total from investment operations		1.50			1.72			0.87			1.97


Less distributions from:

Net investment income and net foreign currency gains		(0.19	)		(0.30	)		(1.32	)		(2.72	)

Net realized gains		—			(0.97	)		—			—


Total distributions		(0.19	)		(1.27	)		(1.32	)		(2.72	)


Net asset value, end of period	$	26.01		$	24.70		$	24.25		$	24.70


Total return^d		6.11%			7.53%			3.47%			8.30%

Ratios to average net assets^e

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

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

Net investment income		4.17%			3.75%			3.07%			2.47%

Supplemental data

Net assets, end of period (000’s)		$10,406			$7,410			$9,702			$9,880

Portfolio turnover rate^g		10.00%			39.24%			32.55%			19.09%

Portfolio turnover rate excluding portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely or in part for cash^g,h		10.00%			—%			—%			—%

^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.

^hEffective September 30, 2019.



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

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, September 30, 2019 (unaudited)

Franklin LibertyQ International Equity Hedged ETF



		Industry			Shares			Value
	Common Stocks and Other Equity Interests 98.7%
	Australia 22.0%
	AGL Energy Ltd.		Multi-Utilities			2,300		$	29,722
	Alumina Ltd.		Metals & Mining			9,004			14,392
	Aristocrat Leisure Ltd.		Hotels, Restaurants & Leisure			1,768			36,488
	Aurizon Holdings Ltd.		Road & Rail			6,312			25,117
	Australia & New Zealand Banking Group Ltd.		Banks			3,868			74,402
	Australian Stock Exchange Ltd.		Capital Markets			556			30,401
	Bank of Queensland Ltd.		Banks			824			5,513
	Bendigo and Adelaide Bank Ltd.		Banks			1,188			9,206
	BHP Group Ltd.		Metals & Mining			7,848			194,362
	Bluescope Steel Ltd.		Metals & Mining			1,588			12,863
	Brambles Ltd.		Commercial Services & Supplies			5,548			42,657
	Cimic Group Ltd.		Construction & Engineering			308			6,533
	Coca-Cola Amatil Ltd.		Beverages			1,624			11,665
	Cochlear Ltd.		Health Care Equipment & Supplies			220			30,885
	Commonwealth Bank of Australia		Banks			4,016			218,935
	Computershare Ltd.		IT Services			1,248			13,594
	Crown Resorts Ltd.		Hotels, Restaurants & Leisure			1,184			9,623
	CSL Ltd.		Biotechnology			1,452			228,853
	Dexus		Equity Real Estate Investment Trusts (REITs	)		3,772			30,350
	Flight Centre Travel Group Ltd.		Hotels, Restaurants & Leisure			176			5,650
	Fortescue Metals Group Ltd.		Metals & Mining			5,448			32,335
	Goodman Group		Equity Real Estate Investment Trusts (REITs	)		3,928			37,566
	GPT Group		Equity Real Estate Investment Trusts (REITs	)		6,168			25,626
	Harvey Norman Holdings Ltd.		Multiline Retail			2,200			6,722
a	Harvey Norman Holdings Ltd., rts., 10/11/19		Multiline Retail			129			156
	Macquarie Group Ltd.		Capital Markets			652			57,641
	Medibank Private Ltd.		Insurance			10,700			24,536
	Mirvac Group		Equity Real Estate Investment Trusts (REITs	)		11,652			24,048
	National Australia Bank Ltd.		Banks			7,800	��		156,243
	REA Group Ltd.		Interactive Media & Services			168			12,262
	Rio Tinto Ltd.		Metals & Mining			1,448			90,502
	Rio Tinto PLC		Metals & Mining			3,448			178,839
	Scentre Group		Equity Real Estate Investment Trusts (REITs	)		13,128			34,797
	Sonic Healthcare Ltd.		Health Care Providers & Services			1,208			22,853
	South32 Ltd.		Metals & Mining			15,536			27,453
	Telstra Corp. Ltd.		Diversified Telecommunication Services			16,296			38,578
	Vicinity Centres		Equity Real Estate Investment Trusts (REITs	)		9,696			16,806
	Washington H. Soul Pattinson & Co. Ltd.		Oil, Gas & Consumable Fuels			264			3,745
	Wesfarmers Ltd.		Multiline Retail			3,976			106,728
	Westpac Banking Corp.		Banks			10,220			204,305
	Woodside Petroleum Ltd.		Oil, Gas & Consumable Fuels			2,148			46,910
	Woolworths Group Ltd.		Food & Staples Retailing			4,236			106,508


									2,286,370

	Austria 0.2%
	OMV AG		Oil, Gas & Consumable Fuels			404			21,687

	Belgium 0.3%
	Colruyt SA		Food & Staples Retailing			208			11,402
	Proximus SADP		Diversified Telecommunication Services			536			15,923


									27,325

	China 0.4%
	Sands China Ltd.		Hotels, Restaurants & Leisure			8,800			39,850

	Denmark 3.2%
	Coloplast AS, B		Health Care Equipment & Supplies			464			55,895
	Novo Nordisk AS, B		Pharmaceuticals			4,340			223,161
	Novozymes AS		Chemicals			528			22,204



58	Semiannual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin LibertyQ International Equity Hedged ETF(continued)



		Industry			Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Denmark (continued)
	Pandora AS		Household Durables			488	$	19,588
	Tryg AS		Insurance			352		10,090


								330,938

	Finland 1.3%
	Elisa OYJ		Diversified Telecommunication Services			476		24,546
	Kone OYJ, B		Machinery			912		51,940
	Nokian Renkaat OYJ		Auto Components			384		10,834
	Orion OYJ		Pharmaceuticals			348		12,983
	UPM-Kymmene OYJ		Paper & Forest Products			1,240		36,662


								136,965

	France 4.4%
	Cie Generale des Etablissements Michelin SCA		Auto Components			496		55,372
	Covivio		Equity Real Estate Investment Trusts (REITs	)		116		12,279
	Eutelsat Communications SA		Media			360		6,701
	Hermes International		Textiles, Apparel & Luxury Goods			101		69,810
	Peugeot SA		Automobiles			1,908		47,593
	Renault SA		Automobiles			392		22,505
	Sanofi		Pharmaceuticals			2,120		196,593
	Societe BIC SA		Commercial Services & Supplies			92		6,178
	Societe Generale SA		Banks			1,664		45,606


								462,637

	Germany 1.6%
	Aroundtown SA		Real Estate Management & Development			1,960		16,035
	Continental AG		Auto Components			296		37,982
	Covestro AG		Chemicals			660		32,667
	Deutsche Lufthansa AG		Airlines			720		11,444
	E.ON SE		Multi-Utilities			3,216		31,271
	Hugo Boss AG		Textiles, Apparel & Luxury Goods			212		11,360
	Knorr-Bremse AG		Machinery			72		6,769
	TUI AG		Hotels, Restaurants & Leisure			1,240		14,452


								161,980

	Hong Kong 3.8%
	AIA Group Ltd.		Insurance			20,800		196,474
	CK Infrastructure Holdings Ltd.		Electric Utilities			2,000		13,458
	CLP Holdings Ltd.		Electric Utilities			4,600		48,321
	HKT Trust and HKT Ltd.		Diversified Telecommunication Services			12,000		19,042
	Hongkong Land Holdings Ltd.		Real Estate Management & Development			3,400		19,108
	Jardine Matheson Holdings Ltd.		Industrial Conglomerates			580		31,030
	Kerry Properties Ltd.		Real Estate Management & Development			2,500		7,702
	NWS Holdings Ltd.		Industrial Conglomerates			5,000		7,743
	Power Assets Holdings Ltd.		Electric Utilities			2,000		13,432
	Swire Properties Ltd.		Real Estate Management & Development			3,200		10,042
	Vitasoy International Holdings Ltd.		Food Products			1,200		4,860
b	WH Group Ltd., Reg S		Food Products			24,500		21,939
	Yue Yuen Industrial Holdings Ltd.		Textiles, Apparel & Luxury Goods			2,500		6,840


								399,991

	Ireland 0.0%^†
	AIB Group PLC		Banks			1,096		3,255

	Israel 0.7%
	Bank LeumiLe-Israel BM		Banks			3,780		26,905
a	Check Point Software Technologies Ltd.		Software			372		40,734
	Israel Chemicals Ltd.		Chemicals			1,348		6,694


								74,333



franklintempleton.com	Semiannual Report	59

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin LibertyQ International Equity Hedged ETF(continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Italy 2.3%
	Enel SpA		Electric Utilities		11,660	$	87,088
	Intesa Sanpaolo SpA		Banks		38,744		91,890
	Moncler SpA		Textiles, Apparel & Luxury Goods		496		17,682
b	Poste Italiane SpA, Reg S		Insurance		1,620		18,421
	Recordati SpA		Pharmaceuticals		172		7,381
	Snam SpA		Gas Utilities		2,784		14,065


							236,527

	Japan 21.6%
	ABC-Mart Inc.		Specialty Retail		92		5,848
	Advantest Corp.		Semiconductors & Semiconductor Equipment		260		11,487
	Aisin Seiki Co. Ltd.		Auto Components		400		12,565
	Asahi Kasei Corp.		Chemicals		3,200		31,504
	Astellas Pharma Inc.		Pharmaceuticals		6,100		86,836
	Bandai Namco Holdings Inc.		Leisure Products		600		37,363
	Bridgestone Corp.		Auto Components		1,800		69,685
	CANON Inc.		Technology Hardware, Storage & Peripherals		2,800		74,680
	Daicel Corp.		Chemicals		800		6,758
	Daito Trust Construction Co. Ltd.		Real Estate Management & Development		240		30,668
	Daiwa House Industry Co. Ltd.		Real Estate Management & Development		1,200		38,929
	Hoya Corp.		Health Care Equipment & Supplies		1,200		97,921
	Iida Group Holdings Co. Ltd.		Household Durables		400		6,507
	Isuzu Motors Ltd.		Automobiles		1,500		16,523
	ITOCHU Corp.		Trading Companies & Distributors		4,000		82,572
	Japan Airlines Co. Ltd.		Airlines		400		11,888
	Japan Post Bank Co. Ltd.		Banks		1,200		11,625
	Japan Tobacco Inc.		Tobacco		3,500		76,623
	JFE Holdings Inc.		Metals & Mining		1,000		12,029
	JXTG Holdings Inc.		Oil, Gas & Consumable Fuels		8,400		38,271
	Kajima Corp.		Construction & Engineering		1,273		16,691
	Kakaku.com Inc.		Interactive Media & Services		500		12,297
	KAO Corp.		Personal Products		1,364		100,765
	KDDI Corp.		Wireless Telecommunication Services		6,400		167,291
	Koito Manufacturing Co. Ltd.		Auto Components		260		12,702
	Marubeni Corp.		Trading Companies & Distributors		4,000		26,563
	Mitsubishi Chemical Holdings Corp.		Chemicals		3,700		26,365
	Mitsubishi Gas Chemical Co. Inc.		Chemicals		500		6,671
	Mizuho Financial Group Inc.		Banks		47,600		72,936
	MS&AD Insurance Group Holdings Inc.		Insurance		1,200		38,862
a	Nexon Co. Ltd.		Entertainment		800		9,704
	Nippon Telegraph & Telephone Corp.		Diversified Telecommunication Services		2,200		104,957
	Nissan Motor Co. Ltd.		Automobiles		7,200		44,909
	NTT DOCOMO Inc.		Wireless Telecommunication Services		5,000		127,365
	Obayashi Corp.		Construction & Engineering		2,000		19,912
	Oracle Corp. Japan		Software		133		11,531
	ORIX Corp.		Diversified Financial Services		2,800		41,738
	Pigeon Corp.		Household Products		200		8,244
	Sekisui House Ltd.		Household Durables		1,800		35,392
	Shionogi & Co. Ltd.		Pharmaceuticals		930		51,622
	Showa Denko K.K.		Chemicals		200		5,228
	Softbank Corp.		Wireless Telecommunication Services		2,300		31,156
	Subaru Corp.		Automobiles		2,100		59,070
	Sumco Corp.		Semiconductors & Semiconductor Equipment		400		5,367
	Sumitomo Chemical Co. Ltd.		Chemicals		3,200		14,360
	Suzuki Motor Corp.		Automobiles		900		38,198
	Taisei Corp.		Construction & Engineering		600		23,234
	Teijin Ltd.		Chemicals		400		7,684
	Tokyo Electron Ltd.		Semiconductors & Semiconductor Equipment		450		85,628



60	Semiannual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin LibertyQ International Equity Hedged ETF(continued)



		Industry			Shares		Value
Common Stocks and Other Equity Interests (continued)
Japan (continued)
Tosoh Corp.			Chemicals			900	$	11,892
Toyota Motor Corp.			Automobiles			3,469		231,620
USS Co. Ltd.	��		Specialty Retail			600		11,642
Yamaha Motor Co. Ltd.			Automobiles			600		10,870
Zozo Inc.			Internet & Direct Marketing Retail			700		16,141


								2,248,889

Luxembourg 0.1%
RTL Group SA			Media			132		6,349

Macau 0.4%
Galaxy Entertainment Group Ltd.			Hotels, Restaurants & Leisure			5,970		37,125
Wynn Macau Ltd.			Hotels, Restaurants & Leisure			3,600		7,026


								44,151

Netherlands 0.8%
Koninklijke Ahold Delhaize NV			Food & Staples Retailing			3,352		83,886

New Zealand 0.4%
Fisher & Paykel Healthcare Corp. Ltd.			Health Care Equipment & Supplies			1,888		20,481
Spark New Zealand Ltd.			Diversified Telecommunication Services			7,772		21,492


								41,973

Norway 0.9%
Mowi ASA			Food Products			1,460		33,728
Orkla ASA			Food Products			1,476		13,444
Telenor ASA			Diversified Telecommunication Services			2,337		46,954


								94,126

Portugal 0.1%
Jeronimo Martins SGPS SA			Food & Staples Retailing			732		12,354

Russia 0.1%
Evraz PLC			Metals & Mining			1,168		6,730

Singapore 1.4%
CapitaLand Mall Trust			Equity Real Estate Investment Trusts (REITs	)		7,200		13,693
ComfortDelGro Corp. Ltd.			Road & Rail			7,200		12,495
Jardine Cycle & Carriage Ltd.			Distributors			300		6,508
SATS Ltd.			Transportation Infrastructure			2,000		7,000
Singapore Exchange Ltd.			Capital Markets			3,600		22,049
Singapore Technologies Engineering Ltd.			Aerospace & Defense			4,800		13,328
Singapore Telecommunications Ltd.			Diversified Telecommunication Services			25,600		57,387
Venture Corp. Ltd.			Electronic Equipment, Instruments & Components			800		8,857
Yangzijiang Shipbuilding Holdings Ltd.			Machinery			7,600		5,276


								146,593

Spain 3.2%
Banco de Sabadell SA			Banks			14,468		14,041
Enagas SA			Gas Utilities			548		12,701
Endesa SA			Electric Utilities			1,064		28,002
Iberdrola SA			Electric Utilities			8,244		85,706
Industria de Diseno Textil SA			Specialty Retail			3,532		109,357
Red Electrica Corp. SA			Electric Utilities			1,336		27,142
Repsol SA			Oil, Gas & Consumable Fuels			3,292		51,465


								328,414

Sweden 1.7%
Atlas Copco AB			Machinery			1,084		29,415
Boliden AB			Metals & Mining			816		18,777



franklintempleton.com	Semiannual Report	61

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin LibertyQ International Equity Hedged ETF(continued)



	Industry			Shares		Value
Common Stocks and Other Equity Interests (continued)
Sweden (continued)
Hennes & Mauritz AB, B		Specialty Retail			2,948	$	57,220
ICA Gruppen AB		Food & Staples Retailing			244		11,286
Swedbank AB, A		Banks			1,764		25,423
Telia Co. AB		Diversified Telecommunication Services			7,228		32,398


							174,519

Switzerland 5.6%
EMS-Chemie Holding AG		Chemicals			28		17,452
Geberit AG		Building Products			104		49,708
Partners Group Holding AG		Capital Markets			65		49,919
Roche Holding AG		Pharmaceuticals			776		226,033
Swiss Life Holding AG		Insurance			92		44,019
Swisscom AG		Diversified Telecommunication Services			80		39,497
Zurich Insurance Group AG		Insurance			420		160,898


							587,526

United Kingdom 22.2%
3i Group PLC		Capital Markets			2,572		36,972
Admiral Group PLC		Insurance			820		21,402
Anglo American PLC		Metals & Mining			2,848		65,671
Auto Trader Group PLC		Interactive Media & Services			2,404		15,109
BAE Systems PLC		Aerospace & Defense			8,520		59,845
Barratt Developments PLC		Household Durables			4,084		32,612
BHP Group PLC		Metals & Mining			5,076		108,364
British Land Co. PLC		Equity Real Estate Investment Trusts (REITs	)		2,556		18,420
BT Group PLC		Diversified Telecommunication Services			30,520		67,164
Burberry Group PLC		Textiles, Apparel & Luxury Goods			1,440		38,578
Centrica PLC		Multi-Utilities			15,204		13,816
Compass Group PLC		Hotels, Restaurants & Leisure			4,744		122,357
Diageo PLC		Beverages			4,740		194,684
Direct Line Insurance Group PLC		Insurance			4,572		16,914
easyJet PLC		Airlines			484		6,859
Experian PLC		Professional Services			2,532		81,094
GlaxoSmithKline PLC		Pharmaceuticals			10,261		220,598
Hargreaves Lansdown PLC		Capital Markets			1,008		25,824
Imperial Brands PLC		Tobacco			3,432		77,319
Intertek Group PLC		Professional Services			460		31,052
ITV PLC		Media			14,540		22,558
Kingfisher PLC		Specialty Retail			5,964		15,199
Land Securities Group PLC		Equity Real Estate Investment Trusts (REITs	)		2,252		23,766
Marks & Spencer Group PLC		Multiline Retail			5,200		11,819
Mondi PLC		Paper & Forest Products			1,084		20,812
Next PLC		Multiline Retail			584		44,518
Pearson PLC		Media			1,756		15,970
Persimmon PLC		Household Durables			1,452		38,828
RELX PLC		Professional Services			6,336		150,887
Royal Dutch Shell PLC, A		Oil, Gas & Consumable Fuels			4,060		119,275
Royal Dutch Shell PLC, B		Oil, Gas & Consumable Fuels			2,228		65,784
SSE PLC		Electric Utilities			3,128		48,009
Taylor Wimpey PLC		Household Durables			13,968		27,799
The Berkeley Group Holdings PLC		Household Durables			476		24,513
Unilever NV, IDR		Personal Products			3,364		202,259
Unilever PLC		Personal Products			3,324		200,302
Whitbread PLC		Hotels, Restaurants & Leisure			504		26,669


							2,313,621

Total Common Stocks and Other Equity Interests (Cost $10,051,746)							10,270,989



62	Semiannual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin LibertyQ International Equity Hedged ETF(continued)



		Industry		Shares		Value
	Preferred Stocks 0.4%
	Germany 0.4%
c	Bayerische Motoren Werke AG, 6.909%, pfd.		Automobiles		152	$	8,443
c	Fuchs Petrolub SE, 2.757%, pfd.		Chemicals		180		6,762
c	Porsche Automobil Holding SE, 3.702%, pfd.		Automobiles		396		25,774

	Total Preferred Stocks (Cost $44,673)						40,979

	Total Investments (Cost $10,096,419) 99.1%						10,311,968
	Other Assets, less Liabilities 0.9%						93,858

	Net Assets 100.0%					$	10,405,826

See abbreviations on page 81.

^†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 September 30, 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		3,026,267		2,041,005		10/2/2019	$	60	$	—
Australian Dollar		BOFA		Sell		3,026,267		2,049,661		10/2/2019		8,746		(149	)
Danish Krone		BOFA		Buy		2,280,800		333,017		10/2/2019		17		—
Danish Krone		BOFA		Sell		2,280,800		337,712		10/2/2019		4,677		—
Euro		BOFA		Buy		1,491,067		1,625,513		10/2/2019		48		—
Euro		BOFA		Sell		1,491,067		1,646,643		10/2/2019		21,082		—
Great British Pound		HSBK		Buy		615,267		758,181		10/2/2019		12		—
Great British Pound		UBSW		Buy		615,267		758,178		10/2/2019		15		—
Great British Pound		BOFA		Buy		615,267		758,171		10/2/2019		22		—
Great British Pound		BOFA		Sell		615,267		754,860		10/2/2019		2,586		(5,919	)
Great British Pound		HSBK		Sell		461,450		562,722		10/2/2019		2,589		(5,922	)
Great British Pound		UBSW		Sell		1,538,167		1,880,285		10/2/2019		2,590		(5,941	)
Israeli Shekel		BOFA		Buy		113,600		32,681		10/2/2019		2		—
Israeli Shekel		BOFA		Sell		113,600		32,178		10/2/2019		—		(505	)
Japanese Yen		BOFA		Buy		229,385,733		2,122,405		10/2/2019		63		—
Japanese Yen		BOFA		Sell		57,346,433		530,582		10/2/2019		—		(35	)
Japanese Yen		BOFA		Sell		172,039,300		1,624,356		10/2/2019		32,505		—
New Zealand Dollar		BOFA		Buy		64,533		40,464		10/2/2019		1		—
New Zealand Dollar		BOFA		Sell		64,533		40,791		10/2/2019		326		—
Norwegian Krone		BOFA		Buy		888,667		97,811		10/2/2019		—		(5	)
Norwegian Krone		BOFA		Sell		222,167		24,810		10/2/2019		358		—
Norwegian Krone		BOFA		Sell		666,500		73,243		10/2/2019		—		(112	)
Singapore Dollar		BOFA		Buy		200,400		144,906		10/2/2019		7		—
Singapore Dollar		BOFA		Sell		200,400		144,822		10/2/2019		208		(299	)
Swedish Krona		BOFA		Buy		1,652,000		168,012		10/2/2019		8		—
Swedish Krona		BOFA		Sell		1,652,000		169,241		10/2/2019		1,221		—
Swiss Franc		MSCO		Buy		553,200		554,767		10/2/2019		14		—
Swiss Franc		MSCO		Sell		553,200		559,687		10/2/2019		4,907		—
Hong Kong Dollar		MSCO		Buy		3,477,333		443,594		10/3/2019		—		(23	)
Hong Kong Dollar		MSCO		Sell		3,477,333		443,969		10/3/2019		397		—
Australian Dollar		BOFA		Sell		3,168,500		2,139,400		11/4/2019		—		(98	)
Danish Krone		BOFA		Sell		2,315,500		338,976		11/4/2019		—		(28	)



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FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

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)
Euro		BOFA		Sell		1,578,200		1,724,777		11/4/2019	$	—	$	(22	)
Great British Pound		HSBK		Sell		630,208		777,601		11/4/2019		—		(38	)
Great British Pound		UBSW		Sell		630,208		777,604		11/4/2019		—		(34	)
Great British Pound		BOFA		Sell		630,208		777,625		11/4/2019		—		(14	)
Hong Kong Dollar		MSCO		Sell		3,432,500		438,104		11/4/2019		6		—
Israeli Shekel		BOFA		Sell		119,100		34,319		11/4/2019		—		(4	)
New Zealand Dollar		BOFA		Sell		66,500		41,730		11/4/2019		—		(1	)
Norwegian Krone		BOFA		Sell		864,900		95,252		11/4/2019		6		—
Singapore Dollar		BOFA		Sell		202,400		146,401		11/4/2019		—		(13	)
Swedish Krona		BOFA		Sell		1,738,800		177,218		11/4/2019		—		(12	)
Swiss Franc		MSCO		Sell		589,700		593,022		11/4/2019		25		—
Japanese Yen		BOFA		Sell		247,132,200		2,291,688		11/5/2019		—		(42	)

Total Forward Exchange Contracts											$	82,498	$	(19,216	)

Net unrealized appreciation (depreciation)													$	63,282

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

At September 30, 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 All Country World Index

Long

52,100

12/20/19

$(823)

*As of period end.



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FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Assets and Liabilities

September 30, 2019 (unaudited)



	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	$	324,510,036		$	16,450,291	$	17,366,236	$	10,096,419
Cost –Non-controlled affiliates (Note 3c)		1,150,250			—		3,375		—

Value – Unaffiliated issuers+	$	335,505,221		$	17,389,379	$	18,846,385	$	10,311,968
Value –Non-controlled affiliates (Note 3c)		1,150,250			—		3,375		—
Cash		—			11,467		9,952		792
Foreign currency, at value (cost $308,805, $30,189, $36,158 and $42,103)		308,628			30,025		35,925		41,743
Receivables:
Dividends and interest		900,947			84,567		48,888		51,886
Variation margin on futures contracts		4,165			—		—		—
Deposits with brokers for:
Futures contracts		44,200			2,701		2,701		2,701
Unrealized appreciation on OTC forward exchange contracts		—			—		—		82,498

Total assets		337,913,411			17,518,139		18,947,226		10,491,588

Liabilities:
Payables:
Investment securities purchased		—			41,349		—		63,580
Management fees		127,185			6,425		5,313		2,879
Variation margin on futures contracts		—			70		68		87
Funds advanced by custodian		1,282			—		—		—
Deferred tax		193,968			—		—		—
Payable upon return of securities loaned		1,150,250			—		3,375		—
Unrealized depreciation on OTC forward exchange contracts		—			—		—		19,216

Total liabilities		1,472,685			47,844		8,756		85,762

Net assets, at value	$	336,440,726		$	17,470,295	$	18,938,470	$	10,405,826

Net assets consist of:
Paid-in capital	$	346,638,711		$	15,911,698	$	16,546,298	$	9,786,556
Total distributable earnings (loss)		(10,197,985	)		1,558,597		2,392,172		619,270

Net assets, at value	$	336,440,726		$	17,470,295	$	18,938,470	$	10,405,826

Shares outstanding		11,600,000			600,000		600,000		400,000

Net asset value per share	$	29.00		$	29.12	$	31.56	$	26.01


+Includes securities loaned		1,088,413			—		3,289		—



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FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Operations

for the six months ended September 30, 2019 (unaudited)



	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	$	10,093,231		$	400,510		$	370,180		$	176,668
Interest from securities loaned:
Non-Controlled affiliates (Note 3c)		2,490			2,676			1,954			—

Total investment income		10,095,721			403,186			372,134			176,668

Expenses:
Management fees (Note 3a)		892,850			38,892			36,589			15,456
Other		1,631			36			28			14

Total expenses		894,481			38,928			36,617			15,470
Expenses waived/paid by affiliates (Note 3c)		(491	)		(24	)		(938	)		—

Net expenses		893,990			38,904			35,679			15,470

Net investment income		9,201,731			364,282			336,455			161,198

Realized and unrealized gains (losses):
Net realized gain (loss) from:
Investments:
Unaffiliated issuers		(14,680,050	)		(252,256	)		(166,684	)		(37,604	)
In-kind redemptions		773,257			894,361			897,882			—
Foreign currency transactions		(279,969	)		(514	)		(3,530	)		(1,069	)
Foreign exchange contracts		—			—			(98	)		303,358
Futures contracts		(154,313	)		1,749			1,885			3,052

Net realized gain (loss)		(14,341,075	)		643,340			729,455			267,737

Net change in unrealized appreciation (depreciation) on:
Investments:
Unaffiliated issuers		(144,310	)		(147,812	)		(463,982	)		28,325
Translation of other assets and liabilities denominated in foreign currencies		(1,171	)		152			236			(26	)
Futures contracts		(37,070	)		(1,210	)		(2,506	)		(1,694	)
Forward exchange contracts		—			—			—			1,604
Change in deferred taxes on unrealized appreciation		458,850			—			—			—

Net change in unrealized appreciation (depreciation)		276,299			(148,870	)		(466,252	)		28,209

Net realized and unrealized gain (loss)		(14,064,776	)		494,470			263,203			295,946

Net increase (decrease) in net assets resulting from operations	$	(4,863,045	)	$	858,752		$	599,658		$	457,144


^aForeign taxes withheld on dividends	$	1,263,620		$	28,152		$	23,091		$	14,313



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FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Changes in Net Assets



	Franklin LibertyQ Emerging Markets ETF						Franklin LibertyQ Global Dividend ETF

	Six Months Ended September 30, 2019 (unaudited)			Year Ended March 31, 2019			Six Months Ended September 30, 2019 (unaudited)			Year Ended March 31, 2019
Increase (decrease) in net assets:
Operations:
Net investment income	$	9,201,731		$	12,098,074		$	364,282		$	567,843
Net realized gain (loss)		(14,341,075	)		3,121,528			643,340			(35,818	)
Net change in unrealized appreciation (depreciation)		276,299			(48,192,220	)		(148,870	)		24,564

Net increase (decrease) in net assets resulting from operations		(4,863,045	)		(32,972,618	)		858,752			556,589

Distributions to shareholders		(3,392,712	)		(11,215,046	)		(349,243	)		(569,521	)

Capital share transactions: (Note 2)		212,159			(12,217,518	)		40,665			—

Net increase (decrease) in net assets		(8,043,598	)		(56,405,182	)		550,174			(12,932	)
Net assets:
Beginning of period		344,484,324			400,889,506			16,920,121			16,933,053

End of period	$	336,440,726		$	344,484,324		$	17,470,295		$	16,920,121



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FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Changes in Net Assets(continued)



	Franklin LibertyQ Global Equity ETF						Franklin LibertyQ International Equity Hedged ETF

	Six Months Ended September 30, 2019 (unaudited)			Year Ended March 31, 2019			Six Months Ended September 30, 2019 (unaudited)			Year Ended March 31, 2019
Increase (decrease) in net assets:
Operations:
Net investment income	$	336,455		$	556,124		$	161,198		$	263,448
Net realized gain (loss)		729,455			1,079,731			267,737			968,490
Net change in unrealized appreciation (depreciation)		(466,252	)		(576,560	)		28,209			(494,713	)

Net increase (decrease) in net assets resulting from operations		599,658			1,059,295			457,144			737,225

Distributions to shareholders		(281,027	)		(478,140	)		(57,514	)		(380,919	)

Capital share transactions: (Note 2)		(6,101,460	)		6,058,346			2,596,506			(2,648,534	)

Net increase (decrease) in net assets		(5,782,829	)		6,639,501			2,996,136			(2,292,228	)
Net assets:
Beginning of period		24,721,299			18,081,798			7,409,690			9,701,918

End of period	$	18,938,470		$	24,721,299		$	10,405,826		$	7,409,690



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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-nine 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 are centrally cleared or trade in the OTC market. The Funds’ pricing services use various techniques including industry standard option pricing models and proprietary discounted cash flow models to determine the fair value of those instruments. The Funds’ net benefit or obligation under the derivative contract, as measured by the fair value of the contract, is included in net assets.

The Funds have procedures to determine the fair value of financial instruments for which market prices are not reliable or readily available. Under these procedures, the Funds primarily employ a market-based approach which may use related or comparable assets or liabilities, recent transactions, market multiples, book values, and other relevant information for the investment to determine the fair value of the investment. An income-based valuation approach may also be used in which the anticipated future cash flows of the investment are discounted to calculate fair value. Discounts may also be applied due to the nature or duration of any restrictions on the disposition of the investments. Due to the inherent uncertainty of valuations of such investments, the fair values may differ significantly from the values that would have been used had an active market existed.

Trading in securities on foreign securities stock exchanges and OTC markets may be completed before 4 p.m. Eastern time. In addition, trading in certain foreign markets may not take place on every Funds’ business day. Occasionally, events occur between the time at which trading in a foreign security is completed and 4 p.m. Eastern time that might call into question the reliability of the value of a portfolio security held by the Fund. As a result, differences may arise between the value of the Funds’ portfolio securities as determined at the foreign market close and the latest indications of value at 4 p.m. Eastern time. The VC monitors price movements for significant events following the close of trading in foreign stock markets through a series of country specific market proxies (such as baskets of American Depositary Receipts, futures contracts and exchange traded funds). These price movements are measured against established trigger thresholds for each specific market proxy to assist in determining if an event has occurred that may call into question the reliability of the values of the foreign securities held by the Funds. If such an event occurs, the securities may be valued using fair value procedures, which may include the use of independent pricing services.



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FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

1. Organization and Significant Accounting Policies(continued)

a. Financial Instrument Valuation(continued)

When the last day of the reporting period is 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 terms are contract specific for OTC derivatives. For OTC derivatives traded under an ISDA master agreement, posting of collateral is required by either the Fund or the applicable counterparty if the total net exposure of all OTC derivatives with the applicable counterparty exceeds the minimum transfer amount, which typically ranges from $100,000 to $250,000, and can vary depending on the counterparty and the type of 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, 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.

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.



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FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

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. The Fund may receive income from the investment of cash collateral, in addition to lending fees and rebates paid by the borrower. Income from securities loaned, net of fees paid to the securities lending agent and/or third-party vendor, is reported separately in the Statements of Operations. The Fund bears the market risk with respect to the collateral investment, securities loaned, and the risk that the agent may default on its obligations to the Fund. If the borrower defaults on its obligation to return the securities loaned, the Fund has the right to repurchase the securities in the open market using the collateral received. The securities lending agent has agreed to indemnify the Fund in the event of default by a third party borrower.

e. Income and Deferred Taxes

It is 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 September 30, 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.

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.



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FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

2. Shares of Beneficial Interest

Shares of the Funds are issued and redeemed at their respective NAV only in aggregations of a specified number of shares or multiples thereof (Creation Units). Only certain large institutional investors (Authorized Participants) may engage in creation or redemption transactions directly with the Funds. Once created, shares of the Funds generally trade in the secondary market in amounts less than one Creation Unit. The market price of the Funds’ shares will be based on the price in the secondary market which may be at, above or below the most recent NAV. Creation Units may be issued and redeemed in exchange for a designated portfolio of securities and/or cash (which may include cash in lieu of certain securities).

Authorized Participants pay a standard transaction fee to the shareholder servicing agent when purchasing or redeeming Creation Units of the Funds regardless of the number of Creation Units that are being created or redeemed on the same day by the Authorized Participant. The standard transaction fee is imposed to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units and is not charged to or paid by the Funds.

In addition, for cash Creation Unit transactions, a variable fee for creation transactions and redemption transactions may be charged to the Authorized Participant to cover certain brokerage, tax, foreign exchange, execution, market impact and other costs and expenses related to the execution of trades. Variable fees, if any, are included in capital share transactions in the Statements of Changes in Net Assets.

At September 30, 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

	Six Months Ended September 30, 2019						Year Ended March 31, 2019

	Shares			Amount			Shares			Amount
Shares sold		400,000		$	11,928,508			4,000,000		$	121,573,734
Shares redeemed		(400,000	)		(11,716,349	)		(4,400,000	)		(133,791,252	)

Net increase (decrease)		—		$	212,159			(400,000	)	$	(12,217,518	)


	Franklin LibertyQ Global Dividend ETF

	Six Months Ended September 30, 2019						Year Ended March 31, 2019

	Shares			Amount			Shares			Amount
Shares sold		200,000		$	5,641,207			—		$	—
Shares redeemed		(200,000	)		(5,600,542	)		—			—

Net increase (decrease)		—		$	40,665			—		$	—


	Franklin LibertyQ Global Equity ETF

	Six Months Ended September 30, 2019						Year Ended March 31, 2019

	Shares			Amount			Shares			Amount
Shares sold		—		$	—			400,000		$	12,112,015
Shares redeemed		(200,000	)		(6,101,460	)		(200,000	)		(6,053,669	)

Net increase (decrease)		(200,000	)	$	(6,101,460	)		200,000		$	6,058,346



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FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)



	Franklin LibertyQ International Equity Hedged ETF

	Six Months Ended September 30, 2019				Year Ended March 31, 2019

	Shares		Amount		Shares			Amount
Shares sold		100,000	$	2,596,506		100,000		$	2,422,854
Shares redeemed		—		—		(200,000	)		(5,071,388	)

Net increase (decrease)		100,000	$	2,596,506		(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

a. Management Fees

The Funds pay a unified management fee to Advisors whereby Advisors 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 net assets of each of the Funds as follows:



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

Prior to August 1, 2019, the Franklin LibertyQ Emerging Markets ETF paid fees to Franklin Advisers, Inc. of 0.55% per year based on the average daily net assets of the Fund.

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. Investments in Affiliated Management Investment Companies



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NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

3. Transactions with Affiliates(continued)

c. Investments in Affiliated Management Investment Companies(continued)

management and administrative fees paid directly or indirectly by each affiliate. During the period ended September 30, 2019, investments in affiliated management investment companies were as follows:



	Value at Beginning of Period		Purchases		Sales			Realized Gain (Loss)		Net Change in Unrealized Appreciation (Depreciation)		Value at End of Period		Number of Shares Held at End of Period		Investment Income

Franklin LibertyQ Emerging Markets ETF
Non-Controlled Affiliates																	Income from securities loaned

Institutional Fiduciary Trust Money Market Portfolio 1.71%	$	—	$	9,207,490	$	(8,057,240	)	$	—	$	—	$	1,150,250		1,150,250	$	2,490


Franklin LibertyQ Global Equity ETF
Non-Controlled Affiliates
Institutional Fiduciary Trust Money Market Portfolio 1.71%	$	—	$	150,335	$	(146,960	)	$	—	$	—	$	3,375		3,375	$	1,954


Franklin LibertyQ Global Dividend ETF
Non-Controlled Affiliates
Institutional Fiduciary Trust Money Market Portfolio 1.71%	$	—	$	—	$	—		$	—	$	—	$	—		—	$	2,676

d. Other Affiliated Transactions

At September 30, 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 Conservative Allocation Fund		1,416,249		12.2%
Franklin Moderate Allocation Fund		3,458,865		29.8%
Franklin Growth Allocation Fund		3,019,830		26.0%
Franklin LifeSmart^™ 2020 – 2055 Retirement Target Funds		1,023,723		8.8%
Franklin 529 Portfolios		1,075,802		9.3%

		9,994,469		86.1%

Franklin LibertyQ International Equity Hedged ETF
Franklin Resources Inc.		75,000		18.8%

^aInvestment activities of significant shareholders could have a material impact on the Funds.



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NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

4. Income Taxes

For tax purposes, capital losses may be carried over to offset future capital gains, if any. At March 31, 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:
Short term Long 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 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, Franklin LibertyQ International Equity Hedged ETF deferred losses of $11,086.

At September 30, 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	$	325,660,286		$	16,450,291		$	17,369,611		$	10,096,419

Unrealized appreciation	$	37,005,033		$	1,779,176		$	2,364,247		$	711,791
Unrealized depreciation		(26,009,848	)		(840,088	)		(884,098	)		(496,242	)

Net unrealized appreciation (depreciation)	$	10,995,185		$	939,088		$	1,480,149		$	215,549

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.



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NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

5. Investment Transactions

Purchases and sales of investments (excluding short term securities andin-kind transactions, if any) for the period ended September 30, 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	$	87,821,539	$	1,893,212	$	3,955,338	$	1,279,726
Sales	$	81,418,220	$	1,683,507	$	4,304,588	$	786,041

In-kind transactions associated with creation and redemptions for the period ended September 30, 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	$	5,569,479	$	5,394,156	$	—	$	2,562,962
Value of Securities Delivered	$	5,344,522	$	5,554,520	$	5,608,433	$	—

At September 30, 2019, in connection with securities lending transactions, certain or all Funds loaned investments and received cash collateral as follows:



	Franklin LibertyQ Emerging Markets ETF		Franklin LibertyQ Global Equity ETF
Securities lending transactions^a:
Equity investments^b		1,150,250		3,375

^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

Investing in foreign securities may include certain risks and considerations not typically associated with investing in U.S. securities, such as fluctuating currency values and changing local, regional and global economic, political and social conditions, which may result in greater market volatility. Current political and financial uncertainty surrounding the European Union may increase market volatility and the economic risk of investing in securities 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. 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 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 September 30, 2019, Franklin LibertyQ Emerging Markets ETF had 10.8% of its net assets invested in Russia. The remaining Funds in the Trust did not have significant investment in Russia.



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NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

7. Other Derivative Information

At September 30, 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	$	—	Variation margin on futures contracts	$	20,860	^a
Franklin LibertyQ Global Dividend ETF

Equity contracts	Variation margin on futures contracts	$	—	Variation margin on futures contracts	$	813	^a
Franklin LibertyQ Global Equity ETF

Equity contracts	Variation margin on futures contracts	$	—	Variation margin on futures contracts	$	813	^a
Franklin LibertyQ International Equity Hedged ETF

Equity contracts	Variation margin on futures contracts	$	—	Variation margin on futures contracts	$	823	^a

Foreign exchange contracts	Unrealized appreciation on OTC forward exchange contracts		82,498	Unrealized depreciation on OTC forward exchange contracts		19,216

Totals		$	82,498		$	20,039

^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.

For the period ended September 30, 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	$	(154,313	)	Futures contracts	$	(37,070	)

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

Equity contracts	Futures contracts	$	1,749		Futures contracts	$	(1,210	)

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

Equity contracts	Futures contracts	$	1,885		Futures contracts	$	(2,506	)

Foreign exchange contracts	Forward exchange contracts		(98	)	Forward exchange contracts		—

Totals		$	1,787			$	(2,506	)



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NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

7. Other Derivative Information(continued)



Derivative Contracts Not Accounted for as Hedging Instruments	Statements of Operations Locations	Net Realized Gain (Loss) for the Period		Statements of Operations Locations	Net Change in Unrealized Appreciation (Depreciation) for the Period
Franklin LibertyQ International Equity Hedged ETF
	Net realized gain (loss) from:			Net change in unrealized appreciation (depreciation) on:

Equity contracts	Futures contracts	$	3,052	Futures contracts	$	(1,694	)

Foreign exchange contracts	Forward exchange contracts		303,358	Forward exchange contracts		1,604

Totals		$	306,410		$	(90	)

For the period ended September 30, 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	$	1,962,518	$	51,140	$	90,909	$	47,361
Forward exchange contracts	$	—	$	—	$	—	$	(7,878,523	)

At September 30, 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 LibertyQ International Equity Hedged ETF
Foreign exchange contracts	$	82,498	$	19,216

^aAbsent an event of default or early termination, OTC derivative assets and liabilities are presented gross and not offset in the Statements of Assets and Liabilities.

At September 30, 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	$	71,943	$	(7,258	)	$	—	$	—	$	64,685
HSBK		2,601		(2,601	)		—		—		—
MSCO		5,349		(23	)		—		—		5,326
UBSW		2,605		(2,605	)		—		—		—

Total	$	82,498	$	(12,487	)	$	—	$	—	$	70,011



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NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

At September 30, 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 LibertyQ International Equity Hedged ETF
Counterparty
BOFA	$	7,258	$	(7,258	)	$	—	$	—	$	—
HSBK		5,960		(2,601	)		—		—		3,359
MSCO		23		(23	)		—		—		—
UBSW		5,975		(2,605	)		—		—		3,370

Total	$	19,216	$	(12,487	)	$	—	$	—	$	6,729

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.)

•

Level 3 – significant unobservable inputs (including the Funds’ own assumptions in determining the fair value of financial instruments)

The input levels are not necessarily an indication of the risk or liquidity associated with financial instruments at that level.

A summary of inputs used as of September 30, 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	$	335,497,470	$	—	$	—	$	335,497,470
Corporate Bonds & Notes		—		7,751		—		7,751
Short-Term Investments		1,150,250		—		—		1,150,250

Total Investments in Securities	$	336,647,720	$	7,751	$	—	$	336,655,471


Liabilities:
Other Financial Instruments:
Futures Contracts	$	20,860	$	—	$	—	$	20,860



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NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

8. Fair Value Measurements(continued)



	Level 1		Level 2		Level 3		Total
Franklin LibertyQ Global Dividend ETF

Assets:
Investments in Securities:^a
Equity Investments^b	$	17,389,379	$	—	$	—	$	17,389,379


Liabilities:
Other Financial Instruments:
Futures Contracts	$	813	$	—	$	—	$	813


Franklin LibertyQ Global Equity ETF

Assets:
Investments in Securities:^a
Equity Investments^b	$	18,846,385	$	—	$	—	$	18,846,385
Short-Term Investments		3,375		—		—		3,375

Total Investments in Securities	$	18,849,760	$	—	$	—	$	18,849,760


Liabilities:
Other Financial Instruments:
Futures Contracts	$	813	$	—	$	—	$	813


Franklin LibertyQ International Equity Hedged ETF

Assets:
Investments in Securities:^a
Equity Investments^b	$	10,311,968	$	—	$	—	$	10,311,968

Other Financial Instruments:
Forward Exchange Contracts	$	—	$	82,498	$	—	$	82,498


Liabilities:
Other Financial Instruments:
Forward Exchange Contracts	$	—	$	19,216	$	—	$	19,216
Futures Contracts		823		—		—		823

Total Other Financial Instruments	$	823	$	19,216	$	—	$	20,039

^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
ADR		American Depositary Receipt
ETF		Exchange Traded Fund
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
IDR		International Depository Receipt
MSCO		Morgan Stanley
UBSW		UBS AG



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Tax Information (unaudited)

At March 31, 2019, more than 50% of the Fund’s 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. As shown in the table below, the Funds hereby reports to shareholders the foreign source income and foreign taxes paid, pursuant to Section 853 of the Internal Revenue Code. This written statement will allow shareholders of record on June 12, 2019, 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.

The following tables provides a detailed analysis of foreign tax paid, foreign source income, and foreign source qualified dividends as reported by the Funds to shareholders of record.



Fund	Foreign Tax Paid Per Share		Foreign Source Income Per Share		Foreign Source Qualified Dividends Per Share
Franklin LibertyQ Emerging Markets ETF	$	0.1304	$	1.1480	$	0.6459
Franklin LibertyQ Global Dividend ETF	$	0.0550	$	0.7031	$	0.6089
Franklin LibertyQ International Equity Hedged ETF	$	0.0606	$	0.9806	$	0.8693

Foreign Tax Paid Per Share is the amount per share available to you, as a tax credit (assuming you held your shares in the Fund for a minimum of 16 days during the31-day period beginning 15 days before theex-dividend date of the Fund’s distribution to which the foreign taxes relate), or, as a tax deduction.

Foreign Source Income Per Share is the amount per share of income dividends attributable to foreign securities held by the Fund, plus any foreign taxes withheld on these dividends. The amounts reported include foreign source qualified dividends that have not been adjusted for the rate differential applicable to such dividend income.¹

Foreign Source Qualified Dividends Per Share is the amount per share of foreign source qualified dividends plus any foreign taxes withheld on these dividends. These amounts represent the portion of the Foreign Source Income Per Share that were derived from qualified foreign securities held by the Fund.¹

Bymid-February 2020, shareholders will receive Form 1099-DIV which will include their share of taxes paid and foreign source income distributed during the calendar year 2019. The Foreign Source Income reported on Form1099-DIV has not been adjusted for the rate differential on foreign source qualified dividend income. Shareholders are advised to check with their tax advisors for information on the treatment of these amounts on their individual income tax returns.

1. Qualified dividends are taxed at reduced long term capital gains tax rates. In determining the amount of foreign tax credit that may be applied against the U.S. tax liability of individuals receiving foreign source qualified dividends, adjustments may be required to the foreign tax credit limitation calculation to reflect the rate differential applicable to such dividend income. The rules however permit certain individuals to elect not to apply the rate differential adjustments for capital gains and/or dividends for any taxable year. Please consult your tax advisor and the instructions to Form 1116 for more information.



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Shareholder Information

Board Approval of Investment Management Agreements

FRANKLIN TEMPLETON ETF TRUST

Franklin LibertyQ Emerging Markets ETF

Franklin LibertyQ Global Dividend ETF

Franklin LibertyQ Global Equity ETF

Franklin LibertyQ International Equity Hedged ETF

(each a Fund)

In considering the continuation of each Management Agreement, the Board reviewed and considered information provided by the Manager at the Meeting and throughout the year at meetings of the Board and its committees. The Board also reviewed and considered information provided in response to a detailed set of requests for information submitted to the Manager by Independent Trustee counsel on behalf of the Independent Trustees in connection with the annual contract renewal process. In addition, prior to the Meeting, the Independent Trustees held a telephonic contract renewal meeting at which the Independent Trustees conferred amongst themselves and Independent Trustee counsel about contract renewal matters. The Board reviewed and considered all of the factors it deemed relevant in approving the continuance of each Management Agreement, including, but not limited to: (i) the nature, extent and quality of the services provided by the Manager; (ii) the investment performance of each Fund, as well as each Fund’s tracking error against a specified benchmark index as of a recent period; (iii) the costs of the services provided and profits realized by the Manager and its affiliates from the relationship with each Fund; (iv) the extent to which economies of scale are realized as each Fund grows; and (v) whether fee levels reflect these economies of scale for the benefit of Fund investors.

In approving the continuance of each Management Agreement, the Board, including a majority of the Independent Trustees, determined that the terms of each Management Agreement are fair and reasonable and that the continuance of such Management Agreement is in the best interests of the applicable Fund and its shareholders. While attention was given to all information furnished, the following discusses some primary factors relevant to the Board’s determination.

NATURE, EXTENT AND QUALITY OF SERVICES. The Board reviewed and considered information regarding the nature, extent and quality of investment management services provided by the Manager and its affiliates to the Funds and their shareholders. This information included, among other things, the qualifications, background and experience of the senior management and investment personnel of the Manager; the structure of investment personnel compensation; oversight of third-party service providers; investment performance reports and related financial information for each Fund; reports on expenses; legal and compliance matters; risk controls; pricing and other services provided by the Manager and its affiliates; and management fees charged by the Manager and its affiliates to US funds and other accounts, including management’s explanation of differences among accounts where relevant. The Board noted management’s continuing efforts and expenditures in establishing effective business continuity plans and developing strategies to address areas of heightened concern in the registered fund industry, such as cybersecurity and liquidity risk management. The Board also recognized management’s commitment to facilitating Board oversight of liquidity through the designation of a liquidity/risk administrator and the development of reports that highlight the amount of illiquid investments for each Fund.

The Board also reviewed and considered the benefits provided to Fund shareholders of investing in a fund that is part of the Franklin Templeton family of funds. The Board noted the financial position of Franklin Resources, Inc. (FRI), the Manager’s parent, and its commitment to the registered fund business as evidenced by its continued introduction of new funds, reassessment of the fund offerings in response to the market environment and project initiatives and capital investments relating to the services provided to the Funds by the Franklin Templeton (FT) organization.

Following consideration of such information, the Board was satisfied with the nature, extent and quality of services provided by the Manager and its affiliates to the Funds and their shareholders.



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SHAREHOLDER INFORMATION

FUND PERFORMANCE. The Board reviewed and considered the performance results of each Fund for theone-year period ended February 28, 2019. The Board considered the performance returns for each Fund in comparison to the performance returns of registered funds deemed comparable to the Fund included in a universe (Performance Universe) selected by Broadridge Financial Solutions, Inc. (Broadridge), an independent provider of investment company data. The Board received a description of the methodology used by Broadridge to select the registered funds included in a Performance Universe. The Board also reviewed and considered Fund performance reports provided and discussions that occurred with portfolio managers at Board meetings throughout the year. The Board noted its ongoing discussions with the Manager about the performance of the Funds to date and the importance of performance to asset growth. Specifically, the Board referenced earlier discussions with management on matters related to, among other things, the strategy behind the overall productline-up, the design and construction of the Manager’s proprietary indices, the comparability of peer data, the nature of the Manager’s research, the potential use of innovative data and technology, and investments in marketing and distribution. A summary of each Fund’s performance results is below.

The Performance Universe for the Franklin LibertyQ Emerging Markets ETF included the Fund and all retail and institutional emerging markets funds. The Performance Universe for the Franklin LibertyQ Global Dividend ETF included the Fund and all retail and institutional global equity income funds. The Performance Universe for the Franklin LibertyQ Global Equity ETF included the Fund and all retail and institutional globalmulti-cap growth funds. The Performance Universe for the Franklin LibertyQ International Equity Hedged ETF included the Fund and all retail and institutional internationalmulti-cap growth funds. The Funds commenced operations on June 1, 2016, and thus have been in operation for less than three years. The Board noted that the Funds’ annualized total returns for theone-year period ended February 28, 2019 were above the medians and in the first (best) and second quintiles of their respective Performance Universes. The Board further noted that, in light of the Funds’ use of a “passive” or indexing investment approach, management evaluates the Funds based on their tracking error against a specified benchmark. The Board noted that for theone-year period ended February 28, 2019, each Fund’s tracking error was within the tolerance anticipated for such Fund. The Board concluded that the Funds’ performance was satisfactory.

COMPARATIVE FEES AND EXPENSES. The Board reviewed and considered information regarding each Fund’s actual total expense ratio and its various components, including, as applicable, management fees; transfer agent expenses; underlying fund expenses; Rule12b-1 andnon-Rule12b-1 service fees; and othernon-management fees. The Board considered the actual total expense ratio and, separately, the contractual management fee rate, without the effect of fee waivers, if any (Management Rate) of each Fund in comparison to the median expense ratio and median Management Rate, respectively, of other exchange-traded funds deemed comparable to and with a similar expense structure to the Fund selected by Broadridge (Expense Group). Broadridge fee and expense data is based upon information taken from each fund’s most recent annual report, which reflects historical asset levels that may be quite different from those currently existing, particularly in a period of market volatility. While recognizing such inherent limitation and the fact that expense ratios and Management Rates generally increase as assets decline and decrease as assets grow, the Board believed the independent analysis conducted by Broadridge to be an appropriate measure of comparative fees and expenses. The Broadridge Management Rate includes administrative charges. The Board received a description of the methodology used by Broadridge to select the exchange-traded funds included in an Expense Group.

Franklin LibertyQ Emerging Markets ETF – The Expense Group for the Fund was comprised of pure-index exchange-traded funds, which included the Fund and six other emerging markets funds. The Board noted that the Management Rate and actual total expense ratio for the Fund were equal the medians of its Expense Group. The Board also noted that effective December 1, 2017, each Fund implemented a unified management fee (Unified Fee). The Board further noted that pursuant to the Unified Fee arrangement the Manager reimburses each Fund for all of its acquired fund fees and expenses (if any) and pays all of the ordinary operating expenses of 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 (including borrowing costs and dividend expenses on securities sold short and overdraft charges), (vi) 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 (vii) othernon-routine or extraordinary expenses (Unified Fee Arrangement). The Board concluded that the Management Rate charged to the Fund is reasonable.



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FRANKLIN TEMPLETON ETF TRUST

SHAREHOLDER INFORMATION

Franklin LibertyQ Global Dividend ETF – The Expense Group for the Fund was comprised of pure-index exchange-traded funds, which included the Fund and seven other global equity income funds. The Board noted that the Management Rate and actual total expense ratio for the Fund were below the medians of its Expense Group. The Board also noted that effective December 1, 2017, the Fund implemented a Unified Fee. The Board further noted the terms of the Unified Fee Arrangement. The Board concluded that the Management Rate charged to the Fund is reasonable.

Franklin LibertyQ Global Equity ETF – The Expense Group for the Fund was comprised of pure-index exchange-traded funds, which included the Fund and three other globalmulti-cap core funds. The Board noted that the Management Rate for the Fund was equal to the median of its Expense Group and that the actual total expense ratio for the Fund was below the median of its Expense Group. The Board further noted the small size of the Expense Group. The Board also noted that effective December 1, 2017, the Fund implemented a Unified Fee. The Board further noted the terms of the Unified Fee Arrangement. The Board concluded that the Management Rate charged to the Fund is reasonable.

Franklin LibertyQ International Equity Hedged ETF – The Expense Group for the Fund was comprised of pure-index exchange-traded funds, which included the Fund and seven other internationalmulti-cap growth funds. The Board noted that the Management Rate for the Fund was slightly above and the actual total expense ratio for the Fund was above the medians of its Expense Group. The Board also noted that effective December 1, 2017, the Fund implemented a Unified Fee. The Board further noted the terms of the Unified Fee Arrangement. The Board also noted the first quintile (best) performance of the Fund for theone-year period ended February 28, 2019 and the fact that such performance resulted in the Fund ranking number 5 out of its 500 peers included in the Performance Universe. The Board concluded that the Management Rate charged to the Fund is reasonable.

noted that although management continually makes refinements to its methodologies used in calculating profitability in response to organizational and product-related changes, the overall methodology has remained consistent with that used in the Funds’ profitability report presentations from prior years. Additionally, PricewaterhouseCoopers LLP, auditor to FRI and certain Franklin Templeton funds, has been engaged to periodically review and assess the allocation methodologies to be used solely by the Funds’ Board with respect to the profitability analysis.

The Board noted management’s belief that costs incurred in establishing the infrastructure necessary for the type of fund operations conducted by the Manager and its affiliates may not be fully reflected in the expenses allocated to each Fund in determining its profitability, as well as the fact that the level of profits, to a certain extent, reflected operational cost savings and efficiencies initiated by management. The Board also noted management’s expenditures in improving shareholder services provided to the Funds, as well as the need to implement systems and meet additional regulatory and compliance requirements resulting from recent SEC and other regulatory requirements.

The Board also considered the extent to which the Manager and its affiliates might derive ancillary benefits from fund operations, including revenues generated from transfer agent services, potential benefits resulting from personnel and systems enhancements necessitated by fund growth, as well as increased leverage with service providers and counterparties. Based upon its consideration of all these factors, the Board concluded that the level of profits realized by the Manager and its affiliates from providing services to each Fund was not excessive in view of the nature, extent and quality of services provided to each Fund.



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FRANKLIN TEMPLETON ETF TRUST

SHAREHOLDER INFORMATION

light of the joint and common costs and investments the Manager incurs across the Franklin Templeton family of funds as a whole. The Board also noted that the Funds commenced operations on June 1, 2016 and that, as of December 31, 2018, each Fund’s net assets were below $20 million, except for those of the Franklin LibertyQ Emerging Markets ETF which were approximately $270 million. The Board recognized that there would not likely be any economies of scale for these Funds until each Fund’s assets grow.

CONCLUSION. Based on its review, consideration and evaluation of all factors it believed relevant, including the above-described factors and conclusions, the Board unanimously approved the continuation of each Management Agreement for an additionalone-year period.

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 Form 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

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.

SEMIANNUAL REPORT

FRANKLIN TEMPLETON

ETF TRUST

September 30, 2019

LOGO


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

Franklin Templeton Investments

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

Semiannual Report

Franklin Liberty International Opportunities ETF			2
Franklin Liberty Investment Grade Corporate ETF			9
Franklin Liberty U.S. Core Bond ETF			15
Franklin Liberty U.S. Low Volatility ETF			21
Financial Highlights and Statements of Investments			27
Financial Statements			50
Notes to Financial Statements			54
Tax Information			64
Shareholder Information			65

Visit franklintempleton.com/investor/investments-and-solutions/investment-options/etfs/for fund updates and documents.


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



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SEMIANNUAL REPORT

Franklin Liberty International Opportunities ETF

This semiannual report for Franklin Liberty International Opportunities ETF covers the period ended September 30, 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 thesix-month period, the Fund posted cumulative total returns of-0.36% based on market price and-0.36% 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 +1.47% total return for the same period.¹ You can find more of the Fund’s performance data in the Performance Summary beginning on page 6.

Economic and Market Overview

However, markets also reflected concerns about political uncertainties in the U.S. (including the impeachment inquiry into U.S. President Donald Trump), geopolitical tensions in

Geographic Composition

Based on Total Net Assets as of 9/30/19

the eurozone and other regions, and the impact of U.S. trade disputes with China and other trading partners on global growth and corporate earnings. In this environment, global developed and emerging market stocks, as measured by the MSCI All Country World Index, posted a +3.91% total return for the six months under review.¹

The U.S. economy grew during thesix-month period. However, the economy moderated in 2019’s second and third quarters, due partly to weakness in inventory and business investment. The manufacturing sector expanded during the period’s first four months, but contracted in August and September 2019. The services sector continued to expand throughout the period, although the rate of expansion slowed in September. The unemployment rate decreased from 3.8% in March 2019 to 3.5% atperiod-end.² The annual inflation rate, as measured by the Consumer Price Index, decreased from 1.9% in March 2019 to 1.7% atperiod-end.²

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 28.



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FRANKLIN LIBERTY INTERNATIONAL OPPORTUNITIES ETF

program earlier than previously indicated. In September, the Fed further lowered the federal funds target rate range to 1.75%–2.00%, reiterating the rationale cited at the July 2019 meeting.

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


Top 10 Countries

9/30/19

	% of Total Net Assets
Japan		13.7%
China		12.7%
United Kingdom		12.5%
Canada		6.6%
Spain		5.2%
Switzerland		4.7%
Italy		4.5%
India		4.3%
Germany		3.1%
Australia		2.8%

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 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 stock selection in the consumer staples and consumer discretionary sectors detracted from relative results. Security selection in the energy and financials sectors contributed.

In the consumer staples sector, Ireland-based nutritional supplement manufacturer Glanbia was weak, after reporting disappointing first-half earnings, largely in itsnon-U.S. performance nutrition business. The company also cut its full-year guidance following the results. The U.S. business remains strong, however, and its SlimFast product continues to show strong momentum.

Several China-based internet stocks detracted from relative performance during the period. Detractors included travel service provider CTrip.com International, which has seen slower use of its travel services, given the greater economic uncertainty.



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FRANKLIN LIBERTY INTERNATIONAL OPPORTUNITIES ETF


Top 10 Sectors/Industries

9/30/19

	% of Total Net Assets
Banks		12.4%
Pharmaceuticals		6.1%
Internet & Direct Marketing Retail		5.5%
Insurance		5.0%
Auto Components		4.0%
Interactive Media & Services		3.9%
Semiconductors & Semiconductor Equipment		3.7%
Trading Companies & Distributors		2.9%
Oil, Gas & Consumable Fuels		2.8%
Capital Markets		2.6%


Top 10 Holdings

9/30/19

Company *Sector/Industry, Country*	% of Total Net Assets
Alibaba Group Holding Ltd., ADR Internet & Direct Marketing Retail, China		2.9%
Roche Holding AG Pharmaceuticals, Switzerland		2.4%
Taiwan Semiconductor Manufacturing Co. Ltd. Semiconductors & Semiconductor Equipment, Taiwan		2.4%
Tencent Holdings Ltd. Interactive Media & Services, China		2.2%
Novartis AG Pharmaceuticals, Switzerland		2.0%
AIA Group Ltd. Insurance, Hong Kong		1.5%
Ping An Insurance (Group) Co. of China Ltd., H Insurance, China		1.5%
Vinci SA Construction & Engineering, France		1.5%
Silergy Corp. Semiconductors & Semiconductor Equipment, China		1.3%
Brookfield Asset Management Inc., A Capital Markets, Canada		1.3%

Italian multi-channel lender FinecoBank detracted, as political concerns in Italy and general worries about the regional economy weighed on the bank. Additionally, Italian bank Unicredit (not a Fund holding) sold a large stake in FinecoBank and took additional steps to make FinecoBank fully independent. Elsewhere in the sector, Norwegian online bank Sbanken hurt relative performance due to a selloff in European bank stocks amid concerns about the impact the low or negative interest-rate environment will have on the industry. Concerns about a slowdown in Sbanken’s loan growth also weighed on the stock following weaker mortgage lending in recent quarters.

In contrast, in the information technology sector, Taiwan-listed integrated circuit manufacturer Silergy and chip foundry Taiwan Semiconductor Manufacturing contributed to relative returns. Silergy has reported robust results recently, based on improving demand from its industrial and consumer end markets. Taiwan Semiconductor has also seen improving demand in recent quarters, which we believe could feed through to faster earnings growth.

Italy-based wealth manager Banca Generali contributed to relative returns as political uncertainties in Italy eased during the third calendar quarter and as it continues to take business away from structurally challenged Italian banks. The company has reported solid inflows in recent quarters, as more Italians look to generate higher investment returns in a low or negative interest-rate environment.

In the industrials sector, Italy-based electric cable manufacturer Prysmian bolstered relative returns after winning a large contract and as earnings growth has been robust in recent quarters. 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.

The ETF did not use derivatives during the period.



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FRANKLIN LIBERTY INTERNATIONAL OPPORTUNITIES ETF

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

LOGO

Purav A. Jhaveri, CFA,^® FRM

Portfolio Manager

The foregoing information reflects our analysis, opinions and portfolio holdings as of September 30, 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.

CFA^® is a trademark owned by CFA Institute.



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FRANKLIN LIBERTY INTERNATIONAL OPPORTUNITIES ETF

Performance Summary as of September 30, 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 9/30/19¹

Cumulative Total Return²

Average Annual Total Return²

Based on
NAV³

Based on

market price⁴

Based on
NAV³

Based on
market price⁴

6-Month

-0.36%

1-Year

-3.14%

-3.26%

-3.14%

-3.26%

Since Inception (1/25/17)

+16.50%

+16.23%

+5.87%

+5.77%

See page 7 for Performance Summary footnotes.



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FRANKLIN LIBERTY INTERNATIONAL OPPORTUNITIES ETF

PERFORMANCE SUMMARY

Distributions(4/1/19–9/30/19)

Net Investment

Income

$0.425161

Total Annual Operating Expenses⁵



With Waiver	Without Waiver
0.60%		2.34%

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 a fee waiver and/or expense reimbursement contractually guaranteed through 7/31/20. 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.



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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, 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 4/1/19		Ending Account Value 9/30/19		Expenses Paid During Period 4/1/19–9/30/19^1,2		Ending Account Value 9/30/19		Expenses Paid During Period 4/1/19–9/30/19^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	996.40	$	2.99	$	1,022.00	$	3.03		0.60	%

2. Reflects expenses after fee waivers and expense reimbursements.



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Franklin Liberty Investment Grade Corporate ETF

This semiannual report for Franklin Liberty Investment Grade Corporate ETF covers the period ended September 30, 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 thesix-month period, the Fund posted cumulative total returns of +7.92% based on market price and +7.88% based on net asset value (NAV).¹ In comparison, the Bloomberg Barclays U.S. Corporate Investment Grade Index posted a +7.66% 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 expanded during the six months ended September 30, 2019. However, the economy moderated in 2019’s second and third quarters, due partly to weakness in inventory and business investment. The manufacturing sector expanded during the period’s first four months, but contracted in August and September 2019. The services sector continued to expand throughout the period, although the rate of expansion slowed in September. The unemployment rate decreased from 3.8% in March 2019 to 3.5% atperiod-end.² The annual inflation rate, as measured by the Consumer Price Index, decreased from 1.9% in March 2019 to 1.7% atperiod-end.²


Top 10 Sectors/Industries

9/30/19

	% of Total Net Assets
Banks		25.0%
Electric Utilities		7.0%
Oil, Gas & Consumable Fuels		5.9%
Insurance		5.3%
Health Care Providers & Services		4.9%
Pharmaceuticals		2.8%
Beverages		2.6%
Media		2.4%
Food Products		2.3%
Biotechnology		2.2%

At its July 2019 meeting, the U.S. Federal Reserve (Fed) lowered its target range for the federal funds rate for the first time since December 2008, to 2.00%–2.25%, citing muted inflation pressures and the potential effects of global trade tensions on economic growth. Furthermore, the Fed ended its balance sheet normalization program earlier than previously indicated. In September, the Fed further lowered the federal funds target rate range to 1.75%–2.00%, reiterating the rationale cited at the July 2019 meeting.

The10-year Treasury yield, which moves inversely to its price, decreased during the period. The yield rose briefly at the start of the period, but fell to multi-year lows in 2019’s third quarter. Political uncertainties in the U.S. (including the impeachment inquiry into U.S. President Donald Trump), geopolitical tensions in certain regions, slower domestic and global economic growth, the Fed’s more accommodative monetary policy stance and expectations of more stimulus from global central banks weighed on the Treasury yield at certain points during the period. However, several better-than-expected U.S. economic reports and periods of optimism about a potential U.S.-China trade deal supported the yield. The10-year yield persistently fell below certain short-term yields due to weaker economic data, escalating U.S. trade tensions with China and other trading partners, and the Fed’s recent monetary policy easing. Overall, the10-year Treasury yield declined from 2.41% at the beginning of the period to 1.68% 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 34.



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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. We may utilize quantitative models to identify investment opportunities in order to construct a portfolio of investments for the Fund. Quantitative trading models are proprietary systems that rely on mathematical computations to identify trading opportunities.

Manager’s Discussion

The investment-grade corporate bond market performed well during the period, driven mostly by lower U.S. Treasury yields. Corporate bond spreads ended slightly tighter than their ending levels in March, but there was significant volatility within the period.

Slowing economic data, increasingly accommodative central banks and headlines about global trade disputes drove the market. S&P 500 corporate earnings were weaker compared to the previous year, but corporate credit metrics remained broadly stable. Government bond yields fell during the period, with the10-year U.S. Treasury yield decreasing from 2.41% to 1.68%.


Top 10 Holdings

9/30/19

	% of Total Net Assets
U.S. Treasury 30 Yr. Bond, 12/19/2019 Government Bonds		7.1%
Bank of America Corp., sub. bond, 4.183%, 11/25/2027 Banks		3.0%
Citigroup Inc., senior note, FRN, sub. note, 4.05%, 7/30/2022 Banks		2.7%
Morgan Stanley, senior bond, FRN thereafter, 3.591%, 7/22/2028 Capital Markets		2.7%
Credit Suisse Group Funding Guernsey Ltd., senior note, 3.80%, 9/15/2022 Banks		2.6%
HSBC Holdings PLC, senior note, 4.30%, 3/08/2026Banks		2.5%
Marsh & McLennan Cos. Inc., senior bond, senior note, 3.875%, 3/15/2024 Insurance		2.5%
BB&T Corp., sub. bond, 3.875%, 3/19/2029 Banks		2.5%
JPMorgan Chase & Co., senior bond, FRN thereafter, sub. note, 3.375%, 5/01/2023 Banks		2.1%
Standard Chartered PLC, senior note, 144A, FRN thereafter, 3.885%, 3/15/2024 Banks		2.0%

Lower government bond yields globally increased demand for investment-grade corporate bonds, a higher yielding alternative. Corporate issuance remained below last year’s level, despite some companies taking advantage of low overall financing costs.

The Fund outperformed its benchmark on a net basis for the period. The Fund’s security selection was a major contributor to positive Fund performance, with quality and industry allocations also boosting results. In contrast, yield curve positioning was a slight detractor.

The Fund’s industry outperformance was driven by our holdings of government-related bonds. Major contributors on an individual company basis included AB Inbev, Enel and Verizon Communications. Detractors included Caterpillar, Duke Energy and British American Tobacco.

News stories continued to create volatility for the bond prices of some individual issuers held in the Fund. For example, news about fundamental developments and the reduction of debt by selling assets at companies including General



10	Semiannual Report	franklintempleton.com

FRANKLIN LIBERTY INVESTMENT GRADE CORPORATE ETF

Electric, Kraft Heinz Foods and AB Inbev caused significant spread movements during the period.

The Fund’s overweight position inBBB-rated bonds helped performance. This position was based on our view that these bonds offered what we considered attractive yields based on current valuations and economic conditions. We kept the Fund’s duration positioning close to neutral relative to the benchmark for most of the period.

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 and30-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 primarily cash bonds during the period, but used credit index derivatives to gain market exposure on a temporary, tactical basis. The Fund also used interest rate futures contracts to manage duration exposure.

Effective October 15, 2019, after period-end, Thomas Runkel, CFA, and Pururav Thoutireddy, Ph.D., were added asco-lead portfolio managers, joining currentco-lead portfolio managers Marc Kremer, CFA, and Shawn Lyons, CFA.

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

Co-Lead Portfolio Manager

LOGO

Shawn Lyons, CFA

Co-Lead Portfolio Manager



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FRANKLIN LIBERTY INVESTMENT GRADE CORPORATE ETF

Performance Summary as of September 30, 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 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 9/30/19¹

Cumulative Total Return²

Average Annual Total Return²

Based on
NAV³

Based on
market price⁴

Based on
NAV³

Based on
market price⁴

6-Month

+7.88%

+7.92%

+7.88%

+7.92%

1-Year

+12.54%

+12.77%

+12.54%

+12.77%

Since Inception (10/3/16)

+13.26%

+13.43%

+4.25%

+4.30%



	30 Day Standardized Yield⁶
Distribution Rate⁵	(with fee waiver)		(without fee waiver)
3.17%		2.70%		2.44%

See page 13 for Performance Summary footnotes.



12	Semiannual Report	franklintempleton.com

FRANKLIN LIBERTY INVESTMENT GRADE CORPORATE ETF

PERFORMANCE SUMMARY

Distributions(4/1/19–9/30/19)

Net Investment
Income

$0.407158

Total Annual Operating Expenses⁷



With Fee Waiver	Without Fee Waiver
0.35%		1.07%

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’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. Distribution rate is based on an annualization of the September dividend and the NAV per share on 9/30/19.

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.



franklintempleton.com	Semiannual Report	13

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 4/1/19		Ending Account Value 9/30/19		Expenses Paid During Period 4/1/19–9/30/19^1,2		Ending Account Value 9/30/19		Expenses Paid During Period 4/1/19–9/30/19^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	1,078.80	$	1.82	$	1,023.25	$	1.77		0.35	%

2. Reflects expenses after fee waivers and expense reimbursements.



14	Semiannual Report	franklintempleton.com

Franklin Liberty U.S. Core Bond ETF

This semiannual report for Franklin Liberty U.S. Core Bond ETF covers the period since the Fund’s inception on September 17, 2019, through September 30, 2019.

Your Fund’s Goal and Main Investments

The Fund seeks total return. Under normal market conditions, the Fund invests at least 80% of its net assets in bonds of U.S. issuers.

Performance Overview

For the period since inception on September 17, 2019, through September 30, 2019, the Fund posted cumulative total returns of +0.86% based on market price and +0.74% based on net asset value (NAV). In comparison, the Bloomberg Barclays U.S. Aggregate Bond Index, which tracks the U.S. investment-grade, taxable bond market, posted a +0.97% total return.¹ You can find more of the Fund’s performance data in the Performance Summary beginning on page 18.

Economic and Market Overview

The U.S. economy expanded at a moderate pace during the period since the Fund’s inception. The unemployment rate and the annual inflation rate, as measured by the Consumer Price Index, were 3.5% and 1.7% at period-end, respectively.² At its September 2019 meeting, the U.S. Federal Reserve lowered its target range from 2.00%–2.25% to 1.75%–2.00%, citing muted inflation pressures and the potential effects of global trade tensions on economic growth. The 10-year Treasury yield, which moves inversely to its price, decreased during the period from 1.81% to 1.68%.


Portfolio Composition

Based on Total Net Assets as of 9/30/19

U.S. Government & Agency Securities			31.3%
Corporate Bonds & Notes			29.0%
Mortgage-Backed Securities			25.0%
Municipal Bonds			4.4%
Long Futures			2.3%
Foreign Government and Agency Securities			0.9%

Investment Strategy

The Fund invests predominantly in investment-grade bonds of U.S. issuers, including government, corporate-debt, mortgage-backed and asset-backed securities. The Fund’s investments in mortgage-backed securities include securities that are issued or guaranteed by the U.S. government, its agencies or instrumentalities, and private issuers, including commercial mortgage-backed securities. Under normal market conditions, the Fund is generally expected to have sector, credit and duration exposures comparable to its benchmark index. However, we make investment decisions based upon our own fundamental analysis, which affects the Fund’s sector, credit and duration exposures so that they may vary from the benchmark index.

In addition, the Fund may purchase or sell mortgage-backed securities on a delayed delivery or forward commitment basis through theto-be-announced (TBA) market. With TBA transactions, the particular securities to be delivered must meet specified terms and conditions.

For purposes of pursuing its investment goal, the Fund may enter into various interest-rate and credit-related derivatives, principally U.S. Treasury futures, interest-rate swaps and credit default swaps. The use of these derivative transactions may allow the Fund to obtain net long or short exposures to select interest rates, durations or credit risks. 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.

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 45.



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FRANKLIN LIBERTY U.S. CORE BOND ETF

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. We may consider selling a security when we believe the security has become fully valued due to either its price appreciation or changes in the issuer’s fundamentals, or when we believe another security is a more attractive investment opportunity.

Manager’s Discussion

During the short period since the Fund’s inception on September 17, 2019, through September 30, 2019, the portfolio slightly underperformed the benchmark Bloomberg Barclays U.S. Aggregate Bond Index. We invested the portfolio during a period of inflows, and the major detractor was our slightly underweighted duration positioning in a declining rate environment. In contrast, security selection within our investment-grade corporate credit exposure contributed to performance, although this effect was slightly offset by negative security selection within our fixed-rate agency mortgage-backed securities bucket.

In terms of derivatives, we utilized Treasury futures for duration management of the portfolio.


Top 10 Fund Holdings

9/30/19

	% of Total Net Assets
U.S. Treasury Note , 2.75%, 9/15/2021		25.4%
Federal National Mortgage Association , 4.50%, 10/01/2049		24.5%
U.S. Treasury Bond , 2.75%, 11/15/2042		5.9%
U.S. Treasury 5 Yr. Note , 12/31/2019		2.3%
Contra Costa Community College District GO, Refunding, 2.926%, 8/01/2038		1.8%
S E Alabama State Gas Supply District Gas Supply, Revenue, Libor-Project #2, Series B, 2.25%, 6/01/2049		0.9%
California State GO, Various Purpose, 3.00%, 10/01/2037		0.9%
Texas State Water Development Board Revenue, State Water Implementation Fund, Master Trust, Series A, 4.00%, 10/15/2044		0.8%
Capital One Financial Corp., senior bond, senior note, 3.75%, 3/09/2027		0.7%
Bank of America Corp., senior note, senior sub. bond, 4.25%, 10/22/2026		0.6%



16	Semiannual Report	franklintempleton.com

FRANKLIN LIBERTY U.S. CORE BOND ETF

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

LOGO

David Yuen, CFA, FRM

Co-Lead Portfolio Manager

LOGO

Amy Cooper, CFA

Co-Lead Portfolio Manager

Patrick Klein, Ph.D.

Co-Lead Portfolio Manager

Tina Chou

Co-Lead Portfolio Manager



franklintempleton.com	Semiannual Report	17

FRANKLIN LIBERTY U.S. CORE BOND ETF

Performance Summary as of September 30, 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 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 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 (9/19/19), 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 9/30/19¹

Cumulative Total Return²

Average Annual Total Return²

Based on
NAV³

Based on

market price⁴

Based on
NAV³

Based on
market price⁴

Since Inception (9/17/19)

+0.74%

+0.86%

+0.74%

+0.86%



	30 Day Standardized Yield⁶
Distribution Rate⁵	(with fee waiver)		(without fee waiver)
0.00%⁷		—		—

See page 19 for Performance Summary footnotes.



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FRANKLIN LIBERTY U.S. CORE BOND ETF

PERFORMANCE SUMMARY

Distributions(9/17/19–9/30/19)

Net Investment

Income

$0.003862

Total Annual Operating Expenses⁸



With Fee Waiver	Without Fee Waiver
0.15%		0.19%

All investments involve risks, including possible loss of principal. Interest rate movements, unscheduled mortgage prepayments and other risk factors will affect the Fund’s share price and yield. Bond prices, and thus a Fund’s share price, generally move in the opposite direction of interest rates. Therefore, 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 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 a fee waiver and/or expense reimbursement contractually guaranteed through 7/31/21. 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 September dividend and the NAV per share on 9/30/19.

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. The Fund launched on 9/17/19 and yields cannot be produced until the Fund has been in existence for 30 days. This value will not be calculated until 10/31/19.

7. Amount rounds to less than 0.01% per share.

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.



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FRANKLIN LIBERTY U.S. CORE 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 Value¹		Ending Account Value 9/30/19		Expenses Paid During Period 9/17/19–9/30/19^2,3		Ending Account Value 9/30/19		Expenses Paid During Period 4/1/19–9/30/19^2,3		Net Annualized Expense Ratio³
	$1,000.00	$	1,007.40	$	0.05	$	1,024.25	$	0.76		0.15	%

1. 9/17/19 for Actual; 4/1/19 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 183/366 to reflect theone-half year period. For Actual expenses, the mutliplier is 13/366 to reflect the number of days since commencement of operations.

3. Reflects expenses after fee waivers and expense reimbursements.



20	Semiannual Report	franklintempleton.com

Franklin Liberty U.S. Low Volatility ETF

This semiannual report for Franklin Liberty U.S. Low Volatility ETF covers the period ended September 30, 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 thesix-month period, the Fund posted cumulative total returns of +9.42% based on market price and +9.52% based on net asset value (NAV). In comparison, the Russell 1000^® Index posted a +5.73% total return for the same period.¹ You can find more of the Fund’s performance data in the Performance Summary beginning on page 24.

Economic and Market Overview

The U.S. economy expanded during the six months ended September 30, 2019. However, the economy moderated in 2019’s second and third quarters, due partly to weakness in inventory investment and business investment. The manufacturing sector expanded during the period’s first four months, but contracted in August and September 2019. The services sector continued to expand throughout the period, although the rate of expansion slowed in September. The unemployment rate decreased from 3.8% in March 2019 to 3.5% atperiod-end.² The annual inflation rate, as measured by the Consumer Price Index, decreased from 1.9% in March 2019 to 1.7% atperiod-end.²


Top 10 Sectors/Industries

9/30/19

	% of Total Net Assets
Information Technology		21.8%
Health Care		13.2%
Financials		13.0%
Consumer Discretionary		10.7%
Communication Services		9.9%
Industrials		9.6%
Consumer Staples		7.1%
Energy		4.1%
Real Estate		4.0%
Utilities		3.3%

tensions on economic growth. Furthermore, the Fed ended its balance sheet normalization program earlier than previously indicated. In September, the Fed further lowered the federal funds target rate range to 1.75%–2.00%, reiterating the rationale cited at the July 2019 meeting.

U.S. equity markets overall rose during the period, benefiting from upbeat economic data and U.S. corporate earnings, the Fed’s rate cuts and investor optimism about further monetary easing. However, markets reflected concerns about political uncertainties in the U.S. (including the impeachment inquiry into U.S. President Donald Trump), geopolitical tensions in certain regions, and the impact of U.S. trade disputes with China and other trading partners on global growth and corporate earnings. These concerns were partly alleviated at certain points during the period by easing trade tensions and optimism about a potential U.S.-China trade deal. The broad U.S. stock market, as measured by the Standard & Poor’s^® 500 Index (S&P 500^®), generally trended higher in the period’s first four months, reaching a newall-time high in July. Stocks retreated in August, due to escalating trade tensions and heightened concerns about U.S. and global economic growth, but recovered in September amid easing trade tensions and investor optimism about the upcoming U.S.-China trade negotiations in October 2019. Overall, the S&P 500 posted a +6.08% total return for thesix-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 41.



franklintempleton.com	Semiannual Report	21

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

During the period, the Fund outperformed the Russell 1000^® Index benchmark. Most sectors contributed to relative performance with key contributors in the information technology (IT), health care and financials sectors. Conversely, the energy sector was a detractor during the period.

In the IT sector, electronic payment processor Total System Services was a major contributor. Shares of the company appreciated following its acquisition by a global payments provider. Strong sales growth and raised guidance was a boost for the shares of Synopsys, a software provider to the semiconductor industry. We believe the company is uniquely positioned to address the growing need and demand for complex chip designs. Semiconductor manufacturer Texas Instruments reported financial results over the period that were solidly ahead of consensus estimates. We believe analog is the most attractive product segment in the semiconductor industry, and Texas Instruments is a leading market share analog semiconductor company. In contrast, underweightings in strong performing shares of Microsoft and Apple dampened relative returns.


Top 10 Holdings

9/30/19

Company *Sector/Industry*	% of Total Net Assets
Oracle Corp. Information Technology		1.5%
Amphenol Corp., A Information Technology		1.5%
International Business Machines Corp. Information Technology		1.5%
Automatic Data Processing Inc. Information Technology		1.5%
Apple Inc. Information Technology		1.5%
Cisco Systems Inc. Information Technology		1.5%
AT&T Inc. Communication Services		1.4%
Texas Instruments Inc. Information Technology		1.5%
Synopsys Inc. Information Technology		1.5%
Verizon Communications Inc. Communication Services		1.4%

Higher revenue from strong volume growth lifted the shares of diagnostic testing company Quest Diagnostics and boosted results in the health care sector. In the financials sector, insurance company W.R. Berkley contributed to returns. A major contributor in the industrials sector was Lockheed Martin. The defense contractor has been a beneficiary of strong defense spending. In contrast, diversified industrial conglomerate Fortive struggled with slower sales and lowered its guidance. The company announced its intention to separate into two companies, which could help increase its strategic focus. Despite stock weakness, we continue to view Fortive as a high-quality business. Elsewhere, concerns about slowing global growth and its impact on energy demands pressured the energy sector and our positions in Occidental Petroleum, Schlumberger and EOG Resources.

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.



22	Semiannual Report	franklintempleton.com

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.

LOGO

Todd Brighton, CFA

Portfolio Manager



franklintempleton.com	Semiannual Report	23

FRANKLIN LIBERTY U.S. LOW VOLATILITY ETF

Performance Summary as of September 30, 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 9/30/19¹

Cumulative Total Return²

Average Annual Total Return²

Based on
NAV³

Based on

market price⁴

Based on
NAV³

Based on
market price⁴

6-Month

+9.52%

+9.42%

+9.52%

+9.42%

1-Year

+13.55%

+13.69%

+13.55%

+13.69%

3-Year

+52.71%

+53.65%

+15.16%

+15.39%

Since Inception (9/20/16)

+54.36%

+54.45%

+15.42%

+15.44%

See page 25 for Performance Summary footnotes.



24	Semiannual Report	franklintempleton.com

FRANKLIN LIBERTY U.S. LOW VOLATILITY ETF

PERFORMANCE SUMMARY

Distributions(4/1/19–9/30/19)

Net Investment
Income

$0.217401

Total Annual Operating Expenses⁵



With Waiver	Without Waiver
0.50%		1.12%

All investments involve risks, including possible loss of principal. Stock prices fluctuate, sometimes rapidly and dramatically, due to factors affecting individual companies, particular industries or sectors, or general market conditions. 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’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.



franklintempleton.com	Semiannual Report	25

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 4/1/19		Ending Account Value 9/30/19		Expenses Paid During Period 4/1/19–9/30/19^1,2		Ending Account Value 9/30/19		Expenses Paid During Period 4/1/19–9/30/19^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	1,095.20	$	2.62	$	1,022.50	$	2.53		0.50	%

2. Reflects expenses after fee waivers and expense reimbursements.



26	Semiannual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin Liberty International Opportunities ETF


	Six Months Ended September 30, 2019 (unaudited)			Year Ended March 31,
	Six Months Ended September 30, 2019 (unaudited)			2019			2018			2017^a

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

Net asset value, beginning of period	$	27.09		$	28.89		$	25.58		$	24.50


Income from investment operations^b:

Net investment income^c		0.47			0.51			0.45			0.09

Net realized and unrealized gains (losses)		(0.56	)		(1.89	)		4.00			0.99


Total from investment operations		(0.09	)		(1.38	)		4.45			1.08


Less distributions from:

Net investment income		(0.43	)		(0.24	)		(0.74	)		—

Net realized gains		—			(0.18	)		(0.40	)		—


Total distributions		(0.43	)		(0.42	)		(1.14	)		—


Net asset value, end of period	$	26.57		$	27.09		$	28.89		$	25.58


Total return^d		(0.36)%			(4.70)%			17.50%			4.41%

Ratios to average net assets^e

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

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

Net investment income		3.52%			1.89%			1.60%			1.98%

Supplemental data

Net assets, end of period (000’s)		$9,299			$9,480			$5,778			$5,116

Portfolio turnover rate^f		19.90%			20.83%			34.08%			2.32%

Portfolio turnover rate excluding portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely or in part for cash^f,g		19.90%			—%			—%			—%

^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.

^gEffective September 30, 2019.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Semiannual Report	27

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, September 30, 2019 (unaudited)

Franklin Liberty International Opportunities ETF



		Industry		Shares		Value

	Common Stocks 98.5%
	Australia 2.8%
	BHP Group Ltd.		Metals & Mining		798	$	19,763
	Commonwealth Bank of Australia		Banks		425		23,169
	CSL Ltd.		Biotechnology		753		118,682
	Ramsay Health Care Ltd.		Health Care Providers & Services		684		29,926
	Rio Tinto Ltd.		Metals & Mining		1,171		73,189


							264,729

	Austria 0.5%
	Lenzing AG		Chemicals		443		42,669

	Brazil 1.4%
	Ambev SA		Beverages		2,500		11,554
a	Azul SA		Airlines		1,000		11,934
a	B2W Cia Digital		Internet & Direct Marketing Retail		800		9,286
a	B2W Cia Digital, SCR		Internet & Direct Marketing Retail		112		1,288
	B3 SA-Brasil Bolsa Balcao		Capital Markets		2,500		26,186
	CCR SA		Transportation Infrastructure		4,900		20,292
	Companhia Energetica de Minas Gerais		Electric Utilities		4,600		17,559
	Energisa SA		Electric Utilities		900		10,792
a	Vale SA		Metals & Mining		2,100		24,073


							132,964

	Canada 6.6%
	Alimentation Couche-Tard Inc., B		Food & Staples Retailing		2,150		65,929
	Brookfield Asset Management Inc., A		Capital Markets		2,282		121,253
	Canadian National Railway Co.		Road & Rail		1,025		92,095
	Dollarama Inc.		Multiline Retail		963		34,498
	Enbridge Inc.		Oil, Gas & Consumable Fuels		1,575		55,315
	Nutrien Ltd.		Chemicals		700		34,894
	Peyto Exploration & Development Corp.		Oil, Gas & Consumable Fuels		2,975		7,505
	Royal Bank of Canada		Banks		1,105		89,694
	TELUS Corp.		Diversified Telecommunication Services		1,338		47,660
	The Toronto-Dominion Bank		Banks		1,192		69,548


							618,391

	China 12.7%
a	Alibaba Group Holding Ltd., ADR		Internet & Direct Marketing Retail		1,593		266,398
	Bank of Ningbo Co. Ltd., A		Banks		17,500		61,779
	Brilliance China Automotive Holdings Ltd.		Automobiles		48,000		51,555
	China Merchants Bank Co. Ltd., A		Banks		6,700		32,603
	China Merchants Bank Co. Ltd., H		Banks		15,500		73,749
a	Ctrip.com International Ltd., ADR		Internet & Direct Marketing Retail		2,870		84,062
	Kweichow Moutai Co. Ltd., A		Beverages		100		16,104
a	New Oriental Education & Technology Group Inc., ADR		Diversified Consumer Services		175		19,383
	Ping An Insurance (Group) Co. of China Ltd., H		Insurance		12,000		137,842
a	Prosus NV		Internet & Direct Marketing Retail		560		41,118
	Silergy Corp.		Semiconductors & Semiconductor Equipment		5,000		123,934
	Sunny Optical Technology Group Co. Ltd.		Electronic Equipment, Instruments & Components		1,800		26,451
	Tencent Holdings Ltd.		Interactive Media & Services		4,800		202,179
	Yum China Holdings Inc.		Hotels, Restaurants & Leisure		900		40,887


							1,178,044

	Denmark 0.7%
	ISS AS		Commercial Services & Supplies		2,756		68,210

	Egypt 0.2%
a	Ezz Steel Co. SAE		Metals & Mining		37,815		21,946



28	Semiannual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin Liberty International Opportunities ETF(continued)



		Industry		Shares		Value

	Common Stocks (continued)
	Finland 0.7%
	Tieto OYJ		IT Services		2,703	$	69,250

	France 2.6%
	Maisons du Monde SA		Specialty Retail		3,406		53,842
	Schneider Electric SE		Electrical Equipment		584		51,252
	Vinci SA		Construction & Engineering		1,258		135,529


							240,623

	Germany 3.1%
	1&1 Drillisch AG		Wireless Telecommunication Services		2,414		75,268
	GEA Group AG		Machinery		3,600		97,215
	Hella GmbH & Co. KGaA		Auto Components		2,052		91,765
	Rational AG		Machinery		39		27,977


							292,225

	Hong Kong 2.4%
	AIA Group Ltd.		Insurance		15,200		143,577
	IMAX China Holding Inc.		Entertainment		14,000		33,038
	Samsonite International SA		Textiles, Apparel & Luxury Goods		23,100		48,915


							225,530

	India 4.3%
	Bharti Airtel Ltd.		Wireless Telecommunication Services		8,965		46,432
	HDFC Bank Ltd.		Banks		6,954		120,443
	ICICI Bank Ltd.		Banks		7,364		45,066
	Infosys Ltd.		IT Services		4,055		46,098
	Kotak Mahindra Bank Ltd.		Banks		3,418		79,312
a	MakeMyTrip Ltd.		Internet & Direct Marketing Retail		1,225		27,795
	UltraTech Cement Ltd.		Construction Materials		554		33,937


							399,083

	Indonesia 0.7%
	ACE Hardware Indonesia Tbk PT		Specialty Retail		87,800		10,948
	Bank Central Asia Tbk PT		Banks		24,800		53,024


							63,972

	Ireland 0.8%
	Glanbia PLC		Food Products		6,036		75,017

	Italy 4.5%
	Banca Generali SpA		Capital Markets		3,111		95,982
	FinecoBank Banca Fineco SpA		Banks		8,380		88,728
	Freni Brembo SpA		Auto Components		8,325		81,139
	Prysmian SpA		Electrical Equipment		3,883		83,395
	Technogym SpA		Leisure Equipment & Products		6,147		68,355


							417,599

	Japan 13.7%
	Aica Kogyo Co. Ltd.		Building Products		900		26,482
	Central Japan Railway Co.		Road & Rail		200		41,120
	COMSYS Holdings Corp.		Construction & Engineering		1,900		53,796
	Daikin Industries Ltd.		Building Products		600		78,723
	Denso Corp.		Auto Components		1,900		83,489
	Fast Retailing Co. Ltd.		Specialty Retail		100		59,412
	Hoya Corp.		Health Care Equipment & Supplies		700		57,121
	Idemitsu Kosan Co. Ltd.		Oil, Gas & Consumable Fuels		1,200		33,921
	Japan Airlines Co. Ltd.		Airlines		800		23,776
	Keyence Corp.		Electronic Equipment, Instruments & Components		100		61,901
	Mitsubishi Corp.		Trading Companies & Distributors		1,700		41,700



franklintempleton.com	Semiannual Report	29

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin Liberty International Opportunities ETF(continued)



		Industry			Shares		Value

	Common Stocks (continued)
	Japan (continued)
	Mitsubishi UFJ Financial Group Inc.		Banks			10,100	$	51,250
	Mitsui Fudosan Co. Ltd.		Real Estate Management & Development			1,300		32,225
	Murata Manufacturing Co. Ltd.		Electronic Equipment, Instruments & Components			1,200		57,571
	Nidec Corp.		Electrical Equipment			600		80,611
	Nintendo Co. Ltd.		Entertainment			100		37,030
	Nippon Telegraph & Telephone Corp.		Diversified Telecommunication Services			1,600		76,332
	Pola Orbis Holdings Inc.		Personal Products			2,600		58,195
	Shimadzu Corp.		Electronic Equipment, Instruments & Components			1,300		32,814
	Sony Corp.		Household Durables			1,100		64,600
	Taiyo Nippon Sanso Corp.		Chemicals			2,200		44,438
	Takeda Pharmaceutical Co. Ltd.		Pharmaceuticals			2,200		75,114
	TheDai-ichi Life Holdings Inc.		Insurance			700		10,551
	Toyota Motor Corp.		Automobiles			800		53,415
	Z Holdings Corp.		Interactive Media & Services			12,200		34,317


								1,269,904

	Mexico 1.2%
	America Movil SAB de CV, L		Wireless Telecommunication Services			70,000		51,904
	Fomento Economico Mexicano SAB de CV		Beverages			6,650		60,980


								112,884

	Netherlands 0.9%
	ASR Nederland NV		Insurance			2,392		88,325

	Norway 1.9%
	Atea ASA		IT Services			6,216		80,043
	Sbanken ASA		Banks			13,020		94,147


								174,190

	Philippines 0.7%
	BDO Unibank Inc.		Banks			11,730		32,363
	Security Bank Corp.		Banks			8,680		32,992


								65,355

	Portugal 0.9%
	Corticeira Amorim SGPS SA		Containers & Packaging			7,654		83,194

	Russia 1.3%
	Gazprom PJSC		Oil, Gas & Consumable Fuels			20,720		72,140
a	Yandex NV, A		Interactive Media & Services			1,400		49,014


								121,154

	Singapore 0.5%
	DBS Group Holdings Ltd.		Banks			2,500		45,195

	South Africa 1.1%
a	MultiChoice Group Ltd.		Media			560		4,357
	Naspers Ltd., N		Internet & Direct Marketing Retail			560		84,764
	Redefine Properties Ltd.		Equity Real Estate Investment Trusts (REITs	)		21,308		11,003


								100,124

	South Korea 2.7%
	Lotte Chemical Corp.		Chemicals			298		58,795
	Naver Corp.		Interactive Media & Services			578		75,865
	Samsung Electronics Co. Ltd.		Technology Hardware, Storage & Peripherals			2,800		114,819


								249,479

	Spain 5.2%
	Applus Services SA		Professional Services			8,866		115,022
	Cia de Distribucion Integral Logista Holdings SA		Air Freight & Logistics			4,961		96,704



30	Semiannual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin Liberty International Opportunities ETF(continued)



		Industry			Shares		Value
	Common Stocks (continued)
	Spain (continued)
	Ebro Foods SA		Food Products			4,691	$	93,793
	Merlin Properties Socimi SA		Equity Real Estate Investment Trusts (REITs	)		7,339		102,492
a	Tecnicas Reunidas SA		Energy Equipment & Services			2,472		60,745
	Viscofan SA		Food Products			257		12,048


								480,804

	Sweden 1.0%
	Dometic Group AB		Auto Components			11,438		89,832

	Switzerland 4.7%
a	Alcon Inc.		Health Care Equipment & Supplies			440		25,681
	Novartis AG		Pharmaceuticals			2,202		191,106
	Roche Holding AG		Pharmaceuticals			754		219,625


								436,412

	Taiwan 2.7%
	Ennoconn Corp.		Technology Hardware, Storage & Peripherals			4,000		28,300
	Taiwan Semiconductor Manufacturing Co. Ltd.		Semiconductors & Semiconductor Equipment			25,000		219,182


								247,482

	Thailand 1.3%
	Kasikornbank PCL, fgn.		Banks			5,000		25,666
	Minor International PCL, fgn.		Hotels, Restaurants & Leisure			38,500		47,204
	The Siam Cement PCL, fgn.		Construction Materials			3,300		44,022


								116,892

	United Arab Emirates 1.0%
	Emirates NBD PJSC		Banks			27,076		95,459

	United Kingdom 12.5%
	Associated British Foods PLC		Food Products			2,013		57,129
	AstraZeneca PLC		Pharmaceuticals			910		81,424
	Bodycote PLC		Machinery			9,157		80,851
	BP PLC		Oil, Gas & Consumable Fuels			11,103		70,573
	British American Tobacco PLC		Tobacco			2,704		100,214
	Bunzl PLC		Trading Companies & Distributors			3,519		92,150
	Derwent London PLC		Equity Real Estate Investment Trusts (REITs	)		1,628		67,608
	DS Smith PLC		Containers & Packaging			13,231		58,762
	Ferguson PLC		Trading Companies & Distributors			802		58,745
	Howden Joinery Group PLC		Trading Companies & Distributors			11,593		80,059
b	Ibstock PLC, Reg S		Construction Materials			18,347		53,403
	Imperial Brands PLC		Tobacco			31		698
	National Grid PLC		Multi-Utilities			9,087		98,754
	Prudential PLC		Insurance			4,448		80,849
	Reckitt Benckiser Group PLC		Household Products			578		45,186
	RELX PLC		Professional Services			2,779		66,180
	Restore PLC		Commercial Services & Supplies			73		367
	Smith & Nephew PLC		Health Care Equipment & Supplies			3,042		73,436


								1,166,388

	United States 1.2%
	Amcor PLC, IDR		Containers & Packaging			8,567		82,337
	Autoliv Inc., SDR		Auto Components			355		27,693


								110,030

	Total Common Stocks (Cost $9,371,858)							9,163,355



franklintempleton.com	Semiannual Report	31

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin Liberty International Opportunities ETF(continued)

Industry

Shares

Value

Preferred Stocks 0.7%

Brazil 0.7%

Banco Bradesco SA, 2.969%, pfd.

Banks

3,180

25,896

Itau Unibanco Holding SA, 4.930%, pfd.

Banks

2,000

16,819

Petroleo Brasileiro SA, 4.123%, pfd.

Oil, Gas & Consumable Fuels

2,900

19,181

Total Preferred Stocks (Cost $53,847)

61,896

Warrants (Cost $—) 0.0%^†

Thailand 0.0%^†

Minor International PCL, wts., 9/30/21

Hotels, Restaurants & Leisure

1,925

251

Total Investments (Cost $9,425,705) 99.2%

9,225,502

Other Assets, less Liabilities 0.8%

73,843

Net Assets 100.0%

9,299,345

See Abbreviations on page 63.

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

^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 September 30, 2019, the value of this security was $53,403, representing 0.6% of net assets.

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



32	Semiannual 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


	Six Months Ended September 30, 2019 (unaudited)			Year Ended March 31,
	Six Months Ended September 30, 2019 (unaudited)			2019			2018			2017^a

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

Net asset value, beginning of period	$	24.09		$	23.97		$	24.21		$	25.00


Income from investment operations^b:

Net investment income^c		0.38			0.82			0.80			0.32

Net realized and unrealized gains (losses)		1.51			0.21			(0.22	)		(0.78	)


Total from investment operations		1.89			1.03			0.58			(0.46	)


Less distributions from net investment income		(0.41	)		(0.91	)		(0.82	)		(0.33	)


Net asset value, end of period	$	25.57		$	24.09		$	23.97		$	24.21


Total return^d		7.88%			4.46%			2.38%			(1.83)%

Ratios to average net assets^e

Expenses before waiver and payments by affiliates		0.65%			1.07%			1.04%			1.06%

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

Net investment income		3.08%			3.49%			3.27%			2.76%

Supplemental data

Net assets, end of period (000’s)		$232,717			$18,065			$39,554			$53,268

Portfolio turnover rate^f		13.70%			22.02%			63.14%			17.85%

Portfolio turnover rate excluding portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely or in part for cash^f,g		13.70%			—%			—%			—%

^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.

^gEffective September 30, 2019.



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

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, September 30, 2019 (unaudited)

Franklin Liberty Investment Grade Corporate ETF



		Country		Principal Amount*		Value

	Corporate Bonds & Notes 97.2%
	Aerospace & Defense 1.8%
a	L3Harris Technologies Inc., senior note, 144A, 3.85%, 6/15/23		United States		500,000	$	527,118
	Lockheed Martin Corp., senior bond, 3.55%, 1/15/26		United States		2,300,000		2,467,772
	United Technologies Corp., senior bond, 4.50%, 6/01/42		United States		1,000,000		1,199,700


							4,194,590

	Air Freight & Logistics 0.6%
	FedEx Corp., senior bond, 4.75%, 11/15/45		United States		800,000		862,097
	senior bond, 5.10%, 1/15/44		United States		500,000		560,812


							1,422,909

	Banks 25.0%
a	ANZ New Zealand International Ltd. of London, senior note, 144A, 2.875%, 1/25/22		New Zealand		200,000		203,216
	Bank of America Corp., sub. bond, 4.183%, 11/25/27		United States		6,350,000		6,860,244
	Barclays PLC, senior note, 4.375%, 1/12/26		United Kingdom		1,400,000		1,480,410
	BB&T Corp., sub. bond, 3.875%, 3/19/29		United States		5,300,000		5,748,846
a	BPCE SA, sub note, 144A, 5.15%, 7/21/24		France		1,800,000		1,972,276
	Citigroup Inc., senior note, FRN, 3.352%, 4/24/25		United States		5,700,000		5,909,818
	sub. note, 4.05%, 7/30/22		United States		345,000		361,437
a	Commonwealth Bank of Australia, sub. note, 144A, 4.50%, 12/09/25		Australia		390,000		421,439
	Credit Suisse Group Funding Guernsey Ltd., senior note, 3.80%, 9/15/22		Switzerland		5,900,000		6,137,430
	Danske Bank A/S, senior note, FRN, 3.244%, 12/20/24		Denmark		2,600,000		2,622,768
	HSBC Holdings PLC, senior note, 4.30%, 3/08/26		United Kingdom		5,400,000		5,836,962

	JPMorgan Chase & Co.,
	senior bond, 3.54% to 5/01/27, FRN thereafter, 5/01/28, 3.54%, 5/01/28		United States		4,150,000		4,379,518
	sub. note, 3.375%, 5/01/23		United States		425,000		439,828
	Regions Financial Corp., senior note, 3.80%, 8/14/23		United States		2,900,000		3,058,584
	Santander UK Group Holdings PLC, senior note, 2.875%, 8/05/21		United Kingdom		230,000		231,066
a	Standard Chartered PLC, senior note, 144A, 3.885% to 3/15/23, FRN thereafter, 3/15/24		United Kingdom		4,425,000		4,570,271
	Sumitomo Mitsui Banking Corp., senior note, 2.514%, 1/17/20		Japan		450,000		450,493
	SunTrust Bank, sub. note, 3.30%, 5/15/26		United States		1,500,000		1,557,712
	The Toronto-Dominion Bank, Sr. Unsecured, GMTN, 3.25%, 3/11/24		Canada		3,200,000		3,346,481
	Wells Fargo & Co., sub. bond, 4.75%, 12/07/46		United States		185,000		218,722
	Wells Fargo Bank NA, senior note, FRN, 2.082%, 9/09/22		United States		2,300,000		2,295,353


							58,102,874

	Beverages 2.6%
	Anheuser-Busch Cos. LLC/Anheuser-Busch InBev Worldwide Inc., senior bond, 4.70%, 2/01/36		Belgium		340,000		393,344
	Anheuser-Busch InBev Worldwide Inc., senior bond, 5.80%, 1/23/59		Belgium		2,000,000		2,704,565
	Coca-Cola Femsa SAB de CV, senior note, 3.875%, 11/26/23		Mexico		2,700,000		2,857,480


							5,955,389

	Biotechnology 2.3%
	Biogen Inc., senior bond, 5.20%, 9/15/45		United States		1,685,000		2,000,516
	Celgene Corp., senior bond, 5.00%, 8/15/45		United States		1,000,000		1,255,668
	Gilead Sciences Inc., senior bond, 4.80%, 4/01/44		United States		1,700,000		2,036,052


							5,292,236

	Building Products 0.5%
a	CRH America Finance Inc., senior note, 144A, 3.95%, 4/04/28		United States		1,000,000		1,070,151



34	Semiannual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin Liberty Investment Grade Corporate ETF(continued)



		Country		Principal Amount*		Value

	Corporate Bonds & Notes (continued)
	Capital Markets 4.9%
	Morgan Stanley, senior bond, 3.591% to 7/22/27, FRN thereafter, 3.591%, 7/22/28		United States		5,880,000	$	6,203,404
	The Goldman Sachs Group Inc., senior note, 3.50%, 1/23/25		United States		2,500,000		2,607,830
	sub. note, 4.25%, 10/21/25		United States		1,475,000		1,579,668
a	UBS Group Funding Switzerland AG, senior note, 144A, 4.125%, 9/24/25		Switzerland		1,000,000		1,081,201


							11,472,103

	Chemicals 1.3%
	LYB International Finance BV, senior note, 4.00%, 7/15/23		United States		2,900,000		3,068,355

	Communications Equipment 0.8%
	Juniper Networks Inc., senior bond, 4.50%, 3/15/24		United States		1,800,000		1,934,091

	Consumer Finance 1.3%
	Capital One Financial Corp., senior bond, 3.80%, 1/31/28		United States		1,400,000		1,478,290
	senior note, 3.30%, 10/30/24		United States		1,450,000		1,501,765


							2,980,055

	Containers & Packaging 1.1%
	International Paper Co., senior bond, 3.80%, 1/15/26		United States		1,400,000		1,488,310
	WRKCo. Inc., senior note, 3.90%, 6/01/28		United States		1,000,000		1,056,034


							2,544,344

	Diversified Financial Services 1.1%
a	Ashtead Capital Inc., second lien, 144A, 4.125%, 8/15/25		United Kingdom		1,770,000		1,809,825
	GE Capital International Funding Co., senior bond, 4.418%, 11/15/35		United States		825,000		864,829


							2,674,654

	Diversified Telecommunication Services 1.7%
	AT&T Inc., senior note, 3.60%, 7/15/25		United States		225,000		237,149
	Koninklijke KPN NV, 8.375%, 10/01/30		Netherlands		700,000		957,766
	Telefonica Emisiones SA, senior bond, 5.52%, 3/01/49		Spain		1,650,000		2,011,734
	senior bond, 7.045%, 6/20/36		Spain		185,000		255,747
	Verizon Communications Inc., senior bond, 5.50%, 3/16/47		United States		355,000		469,168


							3,931,564

	Electric Utilities 7.0%
	Duke Energy Corp., senior bond, 4.80%, 12/15/45		United States		2,565,000		3,079,359
a	Electricite de France SA, senior note, 144A, 4.50%, 9/21/28		France		2,200,000		2,458,385
a	Enel Finance International NV, senior note, 144A, 4.25%, 9/14/23		Italy		3,300,000		3,506,954
	Georgia Power Co., senior bond, 4.30%, 3/15/42		United States		245,000		269,832
	senior bond, 4.75%, 9/01/40		United States		1,950,000		2,264,876
	PSEG Power LLC, senior note, 3.85%, 6/01/23		United States		4,100,000		4,333,566
a	Saudi Electricity Global Sukuk Co. 2, senior bond, 144A, 5.06%, 4/08/43		Saudi Arabia		300,000		341,164


							16,254,136

	Electronic Equipment, Instruments & Components 0.8%
	Tech Data Corp., senior bond, 4.95%, 2/15/27		United States		1,700,000		1,826,005

	Energy Equipment & Services 2.2%
	Baker Hughes a GE Co. LLC/Baker HughesCo-obligator Inc., senior bond, 4.08%, 12/15/47		United States		2,485,000		2,505,342
a	Schlumberger Holdings Corp., senior note, 144A, 3.75%, 5/01/24		United States		2,400,000		2,529,155


							5,034,497



franklintempleton.com	Semiannual Report	35

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin Liberty Investment Grade Corporate ETF(continued)



		Country		Principal Amount*		Value
	Corporate Bonds & Notes (continued)
	Entertainment 2.4%
a	Tencent Holdings Ltd., senior note, 144A, 3.595%, 1/19/28		China		3,200,000	$	3,343,590
a	TWDC Holdco 613 Corp., senior bond, 144A, 6.40%, 12/15/35		United States		1,603,000		2,312,291


							5,655,881

	Equity Real Estate Investment Trusts (REITs) 1.6%
	American Tower Corp., senior bond, 3.55%, 7/15/27		United States		3,300,000		3,477,924
	Realty Income Corp., senior bond, 3.00%, 1/15/27		United States		250,000		257,818


							3,735,742

	Food & Staples Retailing 2.1%
a	CK Hutchison International 19 Ltd., senior note, 144A, 3.25%, 4/11/24		Hong Kong		1,725,000		1,779,265
	The Kroger Co., senior bond, 3.50%, 2/01/26		United States		2,100,000		2,189,862
	senior bond, 5.40%, 1/15/49		United States		700,000		829,823


							4,798,950

	Food Products 2.3%
	Bunge Ltd. Finance Corp., senior note, 4.35%, 3/15/24		United States		1,700,000		1,791,835
	Kraft Heinz Foods Co., senior bond, 5.20%, 7/15/45		United States		185,000		194,790
	senior bond, 6.50%, 2/09/40		United States		1,100,000		1,304,161
	Tyson Foods Inc., senior bond, 5.10%, 9/28/48		United States		1,680,000		2,044,197


							5,334,983

	Health Care Equipment & Supplies 0.7%
	Abbott Laboratories, senior bond, 3.75%, 11/30/26		United States		1,500,000		1,635,466

	Health Care Providers & Services 2.8%
	Anthem Inc., senior bond, 5.10%, 1/15/44		United States		570,000		664,865
	senior note, 4.101%, 3/01/28		United States		1,085,000		1,172,849
	Cigna Corp., senior bond, 4.90%, 12/15/48		United States		1,750,000		2,010,281
	CVS Health Corp., senior bond, 5.30%, 12/05/43		United States		2,300,000		2,682,288


							6,530,283

	Hotels, Restaurants & Leisure 0.6%
	Marriott International Inc., senior note, 3.60%, 4/15/24		United States		1,400,000		1,469,973

	Household Products 0.1%
	Kimberly-Clark Corp., senior bond, 3.95%, 11/01/28		United States		290,000		329,387

	Industrial Conglomerates 0.8%
	General Electric Capital Corp., senior note, A, 6.15%, 8/07/37		United States		1,500,000		1,849,349

	Insurance 5.3%
	Aflac Inc., senior bond, 4.75%, 1/15/49		United States		1,250,000		1,528,722
	AXA SA, 8.60%, 12/15/30		France		1,000,000		1,445,900
	Marsh & McLennan Cos. Inc., senior bond, 3.50%, 3/10/25		United States		3,100,000		3,279,306
	senior note, 3.875%, 3/15/24		United States		2,400,000		2,557,390
	MetLife Inc., junior sub. bond, 6.40%, 12/15/66		United States		1,710,000		2,030,625
	Prudential Financial Inc., junior sub. bond, 5.20% to 3/15/24, FRN thereafter, 3/15/44		United States		230,000		240,527
	The Allstate Corp., senior bond, 4.20%, 12/15/46		United States		1,000,000		1,163,008


							12,245,478

	Internet & Direct Marketing Retail 1.3%
	Alibaba Group Holding Ltd., senior note, 2.50%, 11/28/19		China		615,000		615,111
	senior note, 3.125%, 11/28/21		China		2,300,000		2,336,699


							2,951,810



36	Semiannual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin Liberty Investment Grade Corporate ETF(continued)



	Country		Principal Amount*		Value

Corporate Bonds & Notes (continued)
Machinery 0.5%
Caterpillar Inc., senior bond, 4.75%, 5/15/64		United States		1,000,000	$	1,260,099

Media 2.3%
Charter Communications Operating LLC / Charter Communications Operating Capital, senior bond, first lien, 4.50%, 2/01/24		United States		1,500,000		1,612,516
Charter Communications Operating LLC/Charter Communications Operating Capital Corp., senior secured note, first lien, 4.464%, 7/23/22		United States		170,000		179,038
Comcast Corp., senior bond, 4.95%, 10/15/58		United States		2,900,000		3,691,148


						5,482,702

Metals & Mining 1.7%
Glencore Funding LLC,
^a senior note, 144A, 4.125%, 5/30/23		United States		1,925,000		2,015,847
^a senior note, 144A, 4.625%, 4/29/24		United States		1,800,000		1,927,365


						3,943,212

Multi-Utilities 0.9%
Dominion Energy Inc., senior note, 4.25%, 6/01/28		United States		1,800,000		1,994,553

Multiline Retail 1.0%
Dollar General Corp., senior bond, 3.875%, 4/15/27		United States		900,000		965,409
Dollar Tree Inc., senior note, 3.70%, 5/15/23		United States		150,000		155,663
senior note, 4.00%, 5/15/25		United States		1,100,000		1,166,445


						2,287,517

Oil, Gas & Consumable Fuels 5.9%
Canadian Natural Resources Ltd., senior bond, 3.90%, 2/01/25		Canada		1,450,000		1,529,215
Chevron Corp., senior note, 2.954%, 5/16/26		United States		545,000		570,366
Ecopetrol SA, senior bond, 5.875%, 5/28/45		Colombia		135,000		157,951
Energy Transfer Operating LP, senior bond, 6.05%, 6/01/41		United States		1,100,000		1,259,842
senior bond, 6.50%, 2/01/42		United States		150,000		180,227
Enterprise Products Operating LLC, senior bond, 5.10%, 2/15/45		United States		1,270,000		1,497,324
senior bond, 6.125%, 10/15/39		United States		700,000		910,460
Kinder Morgan Inc., senior bond, 5.55%, 6/01/45		United States		2,100,000		2,478,874
MPLX LP, senior bond, 5.50%, 2/15/49		United States		1,175,000		1,364,666
Occidental Petroleum Corp., senior note, 2.60%, 8/13/21		United States		1,700,000		1,711,693
Shell International Finance BV, senior note, 2.125%, 5/11/20		Netherlands		500,000		501,284
TC PipeLines LP, senior note, 3.90%, 5/25/27		United States		400,000		417,388
Valero Energy Corp., senior note, 4.35%, 6/01/28		United States		1,100,000		1,195,035


						13,774,325

Pharmaceuticals 2.7%
AstraZeneca PLC, senior bond, 4.375%, 11/16/45		United Kingdom		2,900,000		3,412,260
Shire Acquisitions Investments Ireland Designated Activity Co., senior note, 3.20%, 9/23/26		Ireland		2,900,000		2,994,650


						6,406,910

Professional Services 0.2%
IHS Markit Ltd., senior bond, 4.125%, 8/01/23		Bermuda		500,000		526,775

Real Estate Management & Development 0.6%
Healthcare Trust of America Holdings LP, senior bond, 3.75%, 7/01/27		United States		1,300,000		1,362,129

Road & Rail 0.9%
Burlington Northern Santa Fe LLC, senior bond, 3.25%, 6/15/27		United States		235,000		250,820



franklintempleton.com	Semiannual Report	37

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin Liberty Investment Grade Corporate ETF(continued)



			Country		Principal Amount*		Value

	Corporate Bonds & Notes (continued)
	Road & Rail (continued)
	CSX Corp., senior bond, 4.25%, 11/01/66			United States		1,800,000	$	1,912,706


		��						2,163,526

	Semiconductors & Semiconductor Equipment 1.3%
	Maxim Integrated Products Inc., senior note, 3.375%, 3/15/23			United States		2,900,000		2,987,065

	Software 1.1%
	Microsoft Corp., senior note, 2.65%, 11/03/22			United States		2,500,000		2,564,230

	Specialty Retail 0.7%
	AutoZone Inc., senior note, 3.75%, 4/18/29			United States		1,300,000		1,395,117
a	Michael Kors USA Inc., senior note, 144A, 4.00%, 11/01/24			United States		190,000		194,475


								1,589,592

	Textiles, Apparel & Luxury Goods 0.1%
	NIKE Inc., senior bond, 3.875%, 11/01/45			United States		225,000		257,534

	Tobacco 1.1%
a	Imperial Brands Finance PLC, senior note, 144A, 4.25%, 7/21/25			United Kingdom		1,065,000		1,116,440
	Reynolds American Inc., senior bond, 5.85%, 8/15/45			United Kingdom		1,305,000		1,446,269


								2,562,709

	Trading Companies & Distributors 0.7%
	Aircastle Ltd., senior note, 4.25%, 6/15/26			Bermuda		1,500,000		1,538,737

	Wireless Telecommunication Services 0.5%
a	Sprint Spectrum Co. LLC/Sprint Spectrum Co. II LLC, first lien,144A, 3.36%, 3/20/23			United States		1,250,000		1,257,813

	Total Corporate Bonds & Notes (Cost $215,792,979)							226,254,683

	U.S. Government & Agency Securities 1.0%
	U.S. Treasury Bond, 3.75%, 8/15/41			United States		1,800,000		2,346,258

	Total U.S. Government & Agency Securities (Cost $2,387,538)							2,346,258

	Total Investments before Short Term Investments (Cost $218,180,517)							228,600,941

	Short Term Investments 1.0%
	U.S. Government & Agency Securities (Cost $2,340,000) 1.0%
b	FHLB, 1.602%, 10/01/19			United States		2,340,000		2,340,000

	Total Short-Term Investment (Cost $2,340,000)							2,340,000

	Total Investments (Cost $220,520,517) 99.2%							230,940,941
	Other Assets, less Liabilities 0.8%							1,776,216

	Net Assets 100.0%						$	232,717,157

See Abbreviations on page 63.

*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 September 30, 2019, the aggregate value of these securities was $34,438,241, representing 14.8% of net assets.

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



38	Semiannual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin Liberty Investment Grade Corporate ETF(continued)

At September 30, 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
U.S. Treasury 30 Yr. Bond		Long		102		$	16,555,875			12/19/19	$	(278,254	)
U.S. Treasury 5 Yr. Note		Short		(22	)		(2,621,266	)		12/31/19		24,206
CME Ultra Long Term U.S. Treasury Bond		Short		(15	)		(2,878,594	)		12/19/19		95,603
Ultra 10 Yr. U.S. Treasury Note		Short		(38	)		(5,411,438	)		12/19/19		94,770
U.S. Treasury 10 Yr. Note		Short		(124	)		(16,158,750	)		12/19/19		230,393

Total Futures Contracts											$	166,718

*As of period end.

See Abbreviations on page 63.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Semiannual Report	39

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin Liberty U.S. Low Volatility ETF


	Six Months Ended September 30, 2019 (unaudited)			Year Ended March 31,
	Six Months Ended September 30, 2019 (unaudited)			2019			2018			2017^a

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

Net asset value, beginning of period	$	33.61		$	30.03		$	26.97		$	25.05


Income from investment operations^b:

Net investment income^c		0.28			0.52			0.45			0.23

Net realized and unrealized gains (losses)		2.92			3.88			3.06			1.87


Total from investment operations		3.20			4.40			3.51			2.10


Less distributions from:

Net investment income		(0.22	)		(0.47	)		(0.45	)		(0.18	)

Net realized gains		—			(0.35	)		—			—


Total distributions		(0.22	)		(0.82	)		(0.45	)		(0.18	)


Net asset value, end of period	$	36.59		$	33.61		$	30.03		$	26.97


Total return^d		9.52%			14.98%			13.08%			8.40%

Ratios to average net assets^e

Expenses before waiver and payments by affiliates		0.99%			1.12%			2.11%			2.96%

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

Net investment income		1.61%			1.64%			1.56%			1.69%

Supplemental data

Net assets, end of period (000’s)		$56,716			$13,443			$6,005			$5,393

Portfolio turnover rate^f		9.67%			46.90%			65.68%			12.55%

Portfolio turnover rate excluding portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely or in part for cash^f,g		9.67%			—%			—%			—%

^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.

^gEffective September 30, 2019.



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

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, September 30, 2019 (unaudited)

Franklin Liberty U.S. Low Volatility ETF



		Shares		Value

	Common Stocks 99.4%
	Communication Services 9.8%
a	Alphabet Inc., A		653	$	797,405
	AT&T Inc.		21,895		828,507
a	Charter Communications Inc., A		1,895		780,967
	Comcast Corp., A		17,428		785,654
	TELUS Corp.		22,140		788,627
	The Walt Disney Co.		6,107		795,864
	Verizon Communications Inc.		13,555		818,180

					5,595,204

	Consumer Discretionary 10.7%
	Lowe’s Cos. Inc.		6,703		737,062
	Marriott International Inc., A		5,798		721,097
	McDonald’s Corp.		3,566		765,656
	NIKE Inc., B		8,558		803,767
a	O’Reilly Automotive Inc.		1,923		766,335
	Ross Stores Inc.		6,915		759,613
	The Home Depot Inc.		3,288		762,882
	Tractor Supply Co.		8,155		737,538

					6,053,950

	Consumer Staples 7.1%
	Mondelez International Inc., A		14,478		800,923
	PepsiCo Inc.		5,866		804,229
	The Coca-Cola Co.		14,635		796,729
	The Procter & Gamble Co.		6,519		810,833
	Walmart Inc.		6,822		809,635

					4,022,349

	Energy 4.1%
	Chevron Corp.		3,944		467,759
	Exxon Mobil Corp.		6,761		477,394
	Kinder Morgan Inc.		23,657		487,571
	Occidental Petroleum Corp.		10,673		474,628
	Schlumberger Ltd.		12,961		442,877

					2,350,229

	Financials 13.0%
	Aflac Inc.		12,775		668,388
	Arthur J. Gallagher & Co.		7,504		672,133
	BB&T Corp.		12,715		678,600
	Chubb Ltd.		4,223		681,761
	Intercontinental Exchange Inc.		7,168		661,391
	JPMorgan Chase & Co.		5,616		660,947
	S&P Global Inc.		2,608		638,908
	The Progressive Corp.		8,844		683,199
	The Travelers Cos. Inc.		4,561		678,175
	U.S. Bancorp		12,031		665,796
	W.R. Berkley Corp.		9,309		672,389

					7,361,687

	Health Care 13.2%
	Abbott Laboratories		8,280		692,788
	Baxter International Inc.		7,874		688,739
	Becton Dickinson and Co.		2,672		675,909
	Danaher Corp.		4,716		681,132
	Johnson & Johnson		5,278		682,868
	Medtronic PLC		6,201		673,553
	Merck & Co. Inc.		8,190		689,434



franklintempleton.com	Semiannual Report	41

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

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



		Shares		Value

	Common Stocks (continued)
	Health Care (continued)
	Pfizer Inc.		18,854	$	677,424
	Quest Diagnostics Inc.		6,512		696,979
	Stryker Corp.		3,105		671,611
	UnitedHealth Group Inc.		2,949		640,877

					7,471,314

	Industrials 9.6%
	General Dynamics Corp.		3,228		589,852
	Honeywell International Inc.		3,635		615,042
	Ingersoll-Rand PLC		4,903		604,099
	Lockheed Martin Corp.		1,528		596,012
	Raytheon Co.		3,043		597,006
	Republic Services Inc.		7,072		612,081
	Roper Technologies Inc.		1,706		608,360
	United Technologies Corp.		4,410		602,053
	Verisk Analytics Inc.		3,821		604,253

					5,428,758

	Information Technology 21.8%
	Accenture PLC, A		4,224		812,486
	Amphenol Corp., A		8,747		844,086
	Apple Inc.		3,725		834,288
	Automatic Data Processing Inc.		5,178		835,833
	Cisco Systems Inc.		16,774		828,803
a	Fiserv Inc.		7,851		813,285
	Global Payments Inc.		5,060		804,540
	International Business Machines Corp.		5,768		838,783
	Intuit Inc.		3,044		809,521
	Mastercard Inc., A		2,981		809,550
	Microsoft Corp.		5,835		811,240
	Oracle Corp.		15,447		850,049
a	Synopsys Inc.		6,016		825,696
	Texas Instruments Inc.		6,393		826,231
	Visa Inc., A		4,684		805,695

					12,350,086

	Materials 2.8%
	Air Products and Chemicals Inc.		2,364		524,477
	Ecolab Inc.		2,675		529,757
	Linde PLC		2,706		524,206

					1,578,440

	Real Estate 4.0%
	Alexandria Real Estate Equities Inc.		3,691		568,562
	American Tower Corp.		2,488		550,171
	Equity Residential		6,641		572,853
	UDR Inc.		11,788		571,482

					2,263,068

	Utilities 3.3%
	Dominion Energy Inc.		5,767		467,358
	DTE Energy Co.		3,536		470,146
	Duke Energy Corp.		4,960		475,465
	Xcel Energy Inc.		7,257		470,907

					1,883,876

	Total Investments before Short Term Investments (Cost $53,052,223)				56,358,961



42	Semiannual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

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



		Shares		Value

	Short Term Investments 0.5%
	U.S. Government & Agency Securities 0.5%
b	FHLB, 1.602%, 10/01/19		295,000	$	295,000

	Total Short-Term Investment (Cost $295,000)				295,000

	Total Investments (Cost $53,347,223) 99.9%				56,653,961
	Other Assets, less Liabilities 0.1%				62,092

	Net Assets 100.0%			$	56,716,053

See Abbreviations on page 63.

^aNon-income producing.

^bThe 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. \| Semiannual Report	43

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin Liberty U.S. Core Bond ETF



	Period ending September 30, 2019 (unaudited)^a

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

Net asset value, beginning of period	$	25.00


Income from investment operations^b:

Net investment income^c		0.02

Net realized and unrealized gains (losses)		0.16


Total from investment operations		0.18


Less distributions from net investment income		0.00^d


Net asset value, end of period	$	25.18


Total return^e		0.74%

Ratios to average net assets^f

Expenses before waiver and payments by affiliates		0.20%

Expenses net of waiver and payments by affiliates		0.15%

Net investment income		1.70%

Supplemental data

Net assets, end of period (000’s)		$538,905

Portfolio turnover rate^g		7.99%

Portfolio turnover rate excluding portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely or in part for cash^g,h		7.99%

^aFor the period September 17, 2019 (commencement of operations) to September 30, 2019.

^cBased on average daily shares outstanding.

^dAmount rounds to less than $0.01 per share.

^eTotal return is not annualized for periods less than one year. Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period.

^fRatios are annualized for periods less than one year.

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

^hEffective September 30, 2019.



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

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, September 30, 2019 (unaudited)

Franklin Liberty U.S. Core Bond ETF



		Country		Principal Amount*		Value

	Corporate Bonds & Notes 29.0%
	Aerospace & Defense 0.5%
	Lockheed Martin Corp., senior bond, 4.09%, 9/15/52		United States		1,100,000	$	1,295,715
	United Technologies Corp., senior bond, 3.75%, 11/01/46		United States		1,300,000		1,432,835


							2,728,550

	Air Freight & Logistics 0.3%
	FedEx Corp., senior bond, 4.05%, 2/15/48		United States		1,400,000		1,375,425

	Banks 4.2%
	Bank of America Corp.,
	senior note, 2.881%, 4/24/23		United States		1,000,000		1,015,120
	senior sub. bond, 4.25%, 10/22/26		United States		2,250,000		2,431,417
	BB&T Corp., sub. bond, 3.875%, 3/19/29		United States		2,250,000		2,440,548
a	BNP Paribas SA, senior note, FRN thereafter, 144A, 4.705%, 1/10/25		France		3,050,000		3,298,708
	BPCE SA,
	^a 144A, 4.875%, 4/01/26		France		1,800,000		1,960,767
	^a senior note, 144A, 5.70%, 10/22/23		France		1,100,000		1,213,594
	Branch Banking & Trust Co., sub. note, 3.625%, 9/16/25		France		800,000		850,973

	Citigroup Inc.,
	senior note, 2.876%, 7/24/23		United States		3,100,000		3,141,058
	Subordinated, 3.875%, 3/26/25		United States		100,000		105,299
	JPMorgan Chase & Co., sub. note, 3.375%, 5/01/23		United States		3,100,000		3,208,156
	SunTrust Bank Atlanta GA, senior note, 2.75%, 5/01/23		United States		3,100,000		3,156,866


							22,822,506

	Biotechnology 0.9%
	Biogen Inc.,
	senior note, 3.625%, 9/15/22		United States		2,650,000		2,756,229
	senior note, 4.05%, 9/15/25		United States		500,000		542,075
	Gilead Sciences Inc., senior bond, 4.15%, 3/01/47		United States		1,400,000		1,559,986


							4,858,290

	Building Products 0.4%
	CRH America Finance Inc., senior note, 3.40%, 5/09/27		Ireland		1,850,000		1,912,454

	Capital Markets 1.8%
a	Credit Suisse Group AG, senior note, FRN thereafter, 144A, 2.997%, 12/14/23		Switzerland		3,350,000		3,385,557
	Morgan Stanley,
	senior note, 2.625%, 11/17/21		United States		200,000		201,971
	senior note, 3.70%, 10/23/24		United States		800,000		847,644
	sub. bond, 3.95%, 4/23/27		United States		2,000,000		2,117,281

	The Goldman Sachs Group Inc.,
	senior bond, 4.411%, 4/23/39		United States		1,400,000		1,583,957
	senior note, 2.908%, 6/05/23		United States		1,400,000		1,418,795


							9,555,205

	Chemicals 0.6%
	LYB International Finance II BV, senior note, 3.50%, 3/02/27		United States		3,300,000		3,402,305

	Commercial Services & Supplies 0.3%
	Boardwalk Pipelines LP, senior note, 4.80%, 5/03/29		United States		1,450,000		1,541,273

	Construction Materials 0.1%
a	CRH America Inc., senior note, 144A, 3.875%, 5/18/25		Ireland		500,000		528,932

	Consumer Finance 0.7%
	Capital One Financial Corp.,
	senior bond, 3.50%, 6/15/23		United States		1,450,000		1,511,096
	senior note, 3.75%, 3/09/27		United States		2,050,000		2,153,744


							3,664,840



franklintempleton.com	Semiannual Report	45

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin Liberty U.S. Core Bond ETF(continued)



		Country		Principal Amount*		Value

	Corporate Bonds & Notes (continued)
	Containers & Packaging 0.2%
	WRKCo Inc., Sr. Unsecured, 4.00%, 3/15/28		United States		1,100,000	$	1,172,517

	Diversified Telecommunication Services 0.9%
	AT&T Inc.,
	senior note, 3.875%, 1/15/26		United States		2,050,000		2,176,545
	Sr. Unsecured, 3.80%, 2/15/27		United States		1,000,000		1,059,986
	Telefonica Emisiones SA, senior bond, 4.895%, 3/06/48		Spain		900,000		1,006,341
	Time Warner Entertainment Co. LP, senior bond, 8.375%, 3/15/23		United States		700,000		829,234


							5,072,106

	Electric Utilities 2.0%
	Alabama Power Co., senior note, 2.45%, 3/30/22		United States		300,000		303,190
	Baltimore Gas & Electric Co., senior bond, 3.50%, 8/15/46		United States		1,400,000		1,456,006
	Duke Energy Carolinas LLC, secured bond, 3.70%, 12/01/47		United States		1,400,000		1,522,290
	Georgia Power Co., senior bond, 4.75%, 9/01/40		United States		1,400,000		1,626,065
	MidAmerican Energy Co., secured bond, 3.65%, 8/01/48		United States		1,100,000		1,200,773
	PSEG Power LLC, senior note, 3.85%, 6/01/23		United States		300,000		317,090
	Public Service Electric & Gas Co., secured bond, 3.80%, 3/01/46		United States		1,100,000		1,228,715
a	State Grid Overseas Investment 2016 Ltd., senior note, 144A, 3.50%, 5/04/27		China		1,700,000		1,796,442
	Virginia Electric & Power Co., Sr. Unsecured, B, 3.80%, 9/15/47		United States		1,100,000		1,192,754


							10,643,325

	Electronic Equipment, Instruments & Components 0.8%
	Keysight Technologies Inc., senior note, 4.60%, 4/06/27		United States		1,100,000		1,211,445
	Tech Data Corp., senior note, 3.70%, 2/15/22		United States		3,100,000		3,170,553


							4,381,998

	Energy Equipment & Services 0.8%
	Baker Hughes a GE Co. LLC/Baker HughesCo-obligator Inc., senior bond, 4.08%, 12/15/47		United States		1,100,000		1,109,005
a	Schlumberger Holdings Corp., Sr. Unsecured, 144A, 3.90%, 5/17/28		United States		2,750,000		2,913,318
	Total Capital International SA, Sr. Unsecured, 3.461%, 7/12/49		France		400,000		422,823


							4,445,146

	Equity Real Estate Investment Trusts (REITs) 1.0%
	Essex Portfolio LP, Sr. Unsecured, 4.00%, 3/01/29		United States		2,250,000		2,459,079
	Kimco Realty Corp.,
	senior note, 3.30%, 2/01/25		United States		2,250,000		2,322,035
	Sr. Unsecured, 4.25%, 4/01/45		United States		750,000		809,171


							5,590,285

	Food & Staples Retailing 0.4%
	The Kroger Co., senior bond, 4.45%, 2/01/47		United States		950,000		981,622
	Walgreens Boots Alliance Inc., senior note, 3.45%, 6/01/26		United States		800,000		826,816
	Walgreens Boots Alliance, Inc., senior bond, 4.80%, 11/18/44		United States		400,000		423,109


							2,231,547

	Food Products 0.6%
	BAT Capital Corp., senior bond, 4.54%, 8/15/47		United Kingdom		750,000		720,223
	Bunge Ltd. Finance Corp., senior note, 3.75%, 9/25/27		United States		1,450,000		1,488,193
	Kraft Heinz Foods Co., senior bond, 4.375%, 6/01/46		United States		950,000		908,607


							3,117,023

	Health Care Providers & Services 1.3%
	Anthem Inc.,
	senior bond, 3.65%, 12/01/27		United States		2,250,000		2,366,305
	senior note, 4.101%, 3/01/28		United States		800,000		864,774



46	Semiannual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin Liberty U.S. Core Bond ETF(continued)



		Country		Principal Amount*		Value

	Corporate Bonds & Notes (continued)
	Health Care Providers & Services (continued)
	Cigna Corp., senior bond, 3.875%, 10/15/47		United States		1,400,000	$	1,387,121
	CVS Health Corp., senior bond, 4.875%, 7/20/35		United States		1,400,000		1,561,970
	HCA Inc., senior secured bond, first lien, 5.50%, 6/15/47		United States		900,000		1,013,353


							7,193,523

	Industrial Conglomerates 0.6%
	General Electric Co.,
	senior bond, 3.10%, 1/09/23		United States		3,000,000		3,041,632
	senior bond, 4.125%, 10/09/42		United States		200,000		200,555


							3,242,187

	Insurance 2.1%
	Aflac Inc., senior bond, 4.75%, 1/15/49		United States		400,000		489,191
	MetLife Inc., senior bond, 5.875%, 2/06/41		United States		1,100,000		1,501,202
a	Metropolitan Life Global Funding I, secured note, 144A, 2.40%, 6/17/22		United States		1,100,000		1,109,688
	Reinsurance Group of America Inc., Sr. Unsecured, 3.90%, 5/15/29		United States		2,250,000		2,396,090
a	Swiss Re Treasury US Corp., senior bond, 144A, 4.25%, 12/06/42		Switzerland		750,000		862,731
	The Allstate Corp., senior bond, 5.55%, 5/09/35		United States		1,800,000		2,335,599
	Willis North America Inc., Sr. Unsecured, 3.60%, 5/15/24		United States		2,250,000		2,339,587


							11,034,088

	Internet & Direct Marketing Retail 0.6%
	Alibaba Group Holding Ltd.,
	senior note, 3.125%, 11/28/21		China		2,050,000		2,082,710
	senior note, 3.40%, 12/06/27		China		1,100,000		1,145,881


							3,228,591

	Interactive Media & Services 0.2%
b	Tencent Holdings Ltd., senior note, Reg S, 3.28%, 4/11/24		China		1,250,000		1,285,342

	IT Services 0.3%
	Fiserv Inc., senior bond, 4.40%, 7/01/49		United States		1,400,000		1,568,844

	Media 0.5%
	Charter Communications Operating LLC / Charter Communications Operating Capital, senior bond, first lien, 4.50%, 2/01/24		United States		800,000		860,009
	Comcast Corp., senior bond, 3.30%, 2/01/27		United States		300,000		317,192
	NBCUniversal Media LLC, senior bond, 4.45%, 1/15/43		United States		1,100,000		1,277,573


							2,454,774

	Metals & Mining 1.3%
	ArcelorMittal, senior note, 4.55%, 3/11/26		France		2,500,000		2,617,873
	Reliance Steel & Aluminum Co., senior note, 4.50%, 4/15/23		United States		3,000,000		3,171,114
	Southern Copper Corp., senior bond, 5.25%, 11/08/42		Mexico		1,000,000		1,130,552


							6,919,539

	Oil, Gas & Consumable Fuels 2.2%
	Enable Midstream Partners LP, senior note, 3.90%, 5/15/24		United States		2,650,000		2,702,957
	Energy Transfer Operating LP, senior bond, 5.15%, 3/15/45		United States		850,000		893,558
	Enterprise Products Operating LLC, senior bond, 4.25%, 2/15/48		United States		650,000		703,581
	Kinder Morgan Inc., Sr. Unsecured, 4.30%, 3/01/28		United States		3,000,000		3,256,239
	MPLX LP, senior bond, 4.70%, 4/15/48		United States		950,000		993,174
	Sabine Pass Liquefaction LLC, senior secured bond, first lien, 4.20%, 3/15/28		United States		400,000		423,588
	TC PipeLines LP, senior note, 3.90%, 5/25/27		United States		2,550,000		2,660,848


							11,633,945

	Pharmaceuticals 1.2%
	Activas Funding SCS, senior bond, 4.75%, 3/15/45		United States		1,400,000		1,485,697



franklintempleton.com	Semiannual Report	47

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin Liberty U.S. Core Bond ETF(continued)



		Country		Principal Amount*		Value

	Corporate Bonds & Notes (continued)
	Pharmaceuticals (continued)
	Bristol-Myers Squibb Co.,
	senior bond, 3.25%, 8/01/42		United States		1,400,000	$	1,419,220
	^a sr. Unsecured, 144A, 3.20%, 6/15/26		United States		100,000		104,995
	Shire Acquisitions Investments Ireland Designated Activity Co., senior note, 3.20%, 9/23/26		Ireland		200,000		206,528
a	Takeda Pharmaceutical Co. Ltd., senior note, 144A, 2.45%, 1/18/22		Japan		3,100,000		3,108,634


							6,325,074

	Real Estate Management & Development 0.1%
	Healthcare Trust of America Holdings LP, senior bond, 3.75%, 7/01/27		United States		650,000		681,065

	Road & Rail 0.2%
	CSX Corp., senior bond, 4.25%, 11/01/66		United States		750,000		796,961

	Semiconductors & Semiconductor Equipment 0.9%

	Maxim Integrated Products Inc.,
	senior note, 3.375%, 3/15/23		United States		800,000		824,018
	senior note, 3.45%, 6/15/27		United States		2,450,000		2,533,628
	Xilinx Inc., senior note, 2.95%, 6/01/24		United States		1,400,000		1,438,800


							4,796,446

	Software 0.6%

	VMware Inc.,
	senior note, 2.95%, 8/21/22		United States		3,100,000		3,144,514
	Sr. Unsecured, 3.90%, 8/21/27		United States		100,000		102,936


							3,247,450

	Tobacco 0.0%^c^†
a	BAT International Finance PLC, Sr. Unsecured, 144A, 3.95%, 6/15/25		United Kingdom		200,000		208,374

	Trading Companies & Distributors 0.4%
	Aircastle Ltd., senior note, 4.25%, 6/15/26		United States		2,250,000		2,308,105

	Total Corporate Bonds & Notes (Cost $155,579,161)						155,968,035

	U.S. Government & Agency Securities 31.3%
	U.S. Treasury Bond,
	2.25%, 8/15/46		United States		14,500,000		14,872,979
	2.25%, 8/15/49		United States		500,000		514,346
	2.50%, 2/15/45		United States		3,800,000		4,089,973
	2.75%, 11/15/42		United States		10,650,000		11,954,625
	U.S. Treasury Note,
	1.375%, 8/31/23		United States		92,500,000		91,831,583
	1.50%, 3/31/23		United States		22,000,000		21,953,164
	1.625%, 8/15/29		United States		9,800,000		9,755,976
	1.875%, 6/30/26		United States		5,200,000		5,286,328
	2.75%, 9/15/21		United States		8,100,000		8,274,498

	Total U.S. Government & Agency Securities (Cost $167,791,690)						168,533,472

	Municipal Bonds 4.4%
	Alabama 0.9%
	S E Alabama State Gas Supply District Gas Supply, Revenue, Libor-Project #2, Series, 2.25%, 6/01/49				5,000,000		4,970,250

	California 2.7%
	California State GO, Various Purpose, 3.00%, 10/01/37				4,500,000		4,720,050
	Contra Costa Community College District GO, Refunding, 2.926%, 8/01/38				10,000,000		9,899,400


							14,619,450



48	Semiannual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin Liberty U.S. Core Bond ETF(continued)



		Country		Principal Amount*		Value

	Municipal Bonds (continued)
	Texas 0.8%
c	Texas State Water Development Board Revenue, State Water Implementation Fund, Master Trust, Series A, 4.00%, 10/15/44				3,750,000	$	4,250,062

	Total Municipal Bonds (Cost $23,732,135)						23,839,762

	Mortgage-Backed Securities 25.0%
	Freddie Mac 20.9%

	Federal National Mortgage Association,
	2.50%, 09/01/49		United States		4,200,000		4,180,805
	3.00%, 09/01/49		United States		44,100,000		44,764,945
	3.50%, 10/01/48		United States		45,230,000		46,396,086
	4.00%, 10/01/48		United States		16,920,000		17,557,805


							112,899,641

	Ginnie Mae 4.1%
	FNMA, 4.50%, 9/01/48				18,180,000		19,145,556
	GNMA, II, SF, 3.50%, 10/01/48				2,600,000		2,693,692


							21,839,248

	Total Mortgage-Backed Securities (Cost $134,481,569)						134,738,889

	Foreign Government and Agency Securities 0.9%
	Colombia 0.3%
	Government of Colombia, senior bond, 5.00%, 6/15/45				1,350,000		1,584,563

	Indonesia 0.2%
a	Government of Indonesia, senior bond, 144A, 4.35%, 1/08/27				1,250,000		1,358,872

	Mexico 0.4%
	Government of Mexico, senior note, 4.15%, 3/28/27				2,000,000		2,122,020

	Total Foreign Government and Agency Securities (Cost $5,082,620)						5,065,455

	Total Investments (Cost $486,667,175) 90.6%						488,145,613
	Other Assets, less Liabilities 9.4%						50,759,516

	Net Assets 100.0%					$	538,905,129

See Abbreviations on page 63.

*The principal amount is stated in U.S. dollars unless otherwise indicated.

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

^aSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. These securities have been deemed liquid under guidelines approved by the Fund’s Board of Trustees. At September 30, 2019, the aggregate value of these securities was $21,850,612, representing 4.1% of net assets.

^bSecurity was purchased pursuant to Regulation S under the Securities Act of 1933, which exempts from registration securities offered and sold outside of the United States. Such a security cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration. This security has been deemed liquid under guidelines approved by the Fund’s Board of Trustees. At September 30, 2019, the value of this security was $1,285,342, representing 0.2% of net assets.

^cSecurity purchased on a when-issued basis. See Note 1(b)

At September 30, 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)

Interest Rate Contracts

U.S. Treasury 5 Yr. Note

Long

105

12,510,586

12/31/19

690

*As of period end.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Semiannual Report	49

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Assets and Liabilities

September 30, 2019 (unaudited)



	Franklin Liberty International Opportunities ETF			Franklin Liberty Investment Grade Corporate ETF		Franklin Liberty U.S. Low Volatility ETF		Franklin Liberty U.S. Core Bond ETF
Assets:
Investments in securities:
Cost – Unaffiliated issuers	$	9,425,705		$	220,520,517	$	53,347,223	$	486,667,175

Value – Unaffiliated issuers	$	9,225,502		$	230,940,941	$	56,653,961	$	488,145,613
Cash		102,914			447,921		61,124		185,962,179
Foreign currency, at value (cost $1,382, $–, $– and $– respectively)		1,370			—		—		—
Receivables:
Dividends and interest		34,733			1,970,257		46,133		1,959,852
Affiliates		5,136			—		—		—
Closed swap contracts		—			—		—		1,688,568
Variation margin on futures contracts		—			7,781		—		—
Deposits with brokers for:
Futures contracts		—			93,861		—		84,000
Swap contracts		—			—		—		91,163

Total assets		9,369,655			233,460,761		56,761,218		677,931,375

Liabilities:
Payables:
Investment securities purchased		—			—		—		138,844,836
Management fees		—			57,101		3,695		10,541
Transfer agent fees		7,800			7,800		7,800		557
Trustees’ fees and expenses		167			—		—		710
Distributions to shareholders		—			615,497		—		82,647
Custodian fees		8,955			10,345		514		298
Professional fees		26,253			26,176		18,425		1,919
Reports to shareholders		620			411		353		—
Variation margin on futures contracts		—			—		—		83,310
Registration and filing fees		4,218			3,764		3,961		498
Pricing fees		5,574			—		—		—
Deferred tax		2,870			—		—		—
Deposits from brokers for futures contracts		—			6,220		—		—
Accrued expenses and other liabilities		13,853			16,290		10,417		930

Total liabilities		70,310			743,604		45,165		139,026,246

Net assets, at value	$	9,299,345		$	232,717,157	$	56,716,053	$	538,905,129

Net assets consist of:
Paid-in capital	$	9,530,691		$	223,044,612	$	53,279,476	$	537,281,299
Total distributable earnings (loss)		(231,346	)		9,672,545		3,436,577		1,623,830

Net assets, at value	$	9,299,345		$	232,717,157	$	56,716,053	$	538,905,129

Shares outstanding		350,000			9,100,000		1,550,000		21,400,000

Net asset value per share	$	26.57		$	25.57	$	36.59	$	25.18



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FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Operations

for the six months ended September 30, 2019 (unaudited)



	Franklin Liberty International Opportunities ETF			Franklin Liberty Investment Grade Corporate ETF			Franklin Liberty U.S. Low Volatility ETF			Franklin Liberty U.S. Core Bond ETF
Investment income:
Dividends: (net of foreign taxes)^a
Unaffiliated issuers	$	193,554		$	—		$	180,868		$	—
Interest:
Unaffiliated issuers		—			2,836,365			765			190,636

Total investment income		193,554			2,836,365			181,633			190,636

Expenses:
Management fees (Note 3a)		28,204			475,437			43,139			15,452
Transfer agent fees		7,799			7,799			7,799			557
Custodian fees		11,867			10,267			644			298
Reports to shareholders		3,784			3,800			3,736			398
Registration and filing fees		4,024			3,830			3,849			498
Professional fees		43,958			23,030			20,267			1,920
Trustees’ fees and expenses		650			3,673			853			710
Pricing fees		4,297			—			—			—
Other		5,526			6,446			4,986			531

Total expenses		110,109			534,282			85,273			20,364
Expenses waived/paid by affiliates (Note 3c)		(81,905	)		(244,638	)		(42,134	)		(4,911	)

Net expenses		28,204			289,644			43,139			15,453

Net investment income		165,350			2,546,721			138,494			175,183

Realized and unrealized gains (losses):
Net realized gain (loss) from:
Investments:
Unaffiliated issuers		(95,303	)		572,152			139,702			39,944
Foreign currency transactions		(839	)		130			41			—
Foreign exchange contracts		(24	)		—			—			—
Futures contracts		—			(224,746	)		—			—
Swap contracts		—			8,526			—			12,222

Net realized gain (loss)		(96,166	)		356,062			139,743			52,166

Net change in unrealized appreciation (depreciation) on:
Investments:
Unaffiliated issuers		(98,204	)		10,258,983			1,177,733			1,478,438
Translation of other assets and liabilities denominated in foreign currencies		(31	)		—			(24	)		—
Futures contracts		—			166,718			—			690
Change in deferred taxes on unrealized appreciation		(2,870	)		—			—			—

Net change in unrealized appreciation (depreciation)		(101,105	)		10,425,701			1,177,709			1,479,128

Net realized and unrealized gain (loss)		(197,271	)		10,781,763			1,317,452			1,531,294

Net increase (decrease) in net assets resulting from operations	$	(31,921	)	$	13,328,484		$	1,455,946		$	1,706,477


^aForeign taxes withheld on dividends	$	15,762	$	—	$	812	$	—



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FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Changes in Net Assets



	Franklin Liberty International Opportunities ETF						Franklin Liberty Investment Grade Corporate ETF

	Six Months Ended September 30, 2019 (unaudited)			Year Ended March 31, 2019			Six Months Ended September 30, 2019 (unaudited)			Year Ended March 31, 2019
Increase (decrease) in net assets:
Operations:
Net investment income	$	165,350		$	191,982		$	2,546,721		$	941,221
Net realized gain (loss)		(96,166	)		99,816			356,062			(722,823	)
Net change in unrealized appreciation (depreciation)		(101,105	)		(924,454	)		10,425,701			370,103

Net increase (decrease) in net assets resulting from operations		(31,921	)		(632,656	)		13,328,484			588,501

Distributions to shareholders		(148,806	)		(168,938	)		(2,846,393	)		(1,010,692	)

Capital share transactions: (Note 2)		—			4,503,793			204,170,113			(21,066,405	)

Net increase (decrease) in net assets		(180,727	)		3,702,199			214,652,204			(21,488,596	)
Net assets:
Beginning of period		9,480,072			5,777,873			18,064,953			39,553,549

End of period	$	9,299,345		$	9,480,072		$	232,717,157		$	18,064,953



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FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Changes in Net Assets(continued)



	Franklin Liberty U.S. Low Volatility ETF						Franklin Liberty U.S. Core Bond ETF

	Six Months Ended September 30, 2019 (unaudited)			Year Ended March 31, 2019			Six Months Ended September 30, 2019 (unaudited)^a
Increase (decrease) in net assets:
Operations:
Net investment income	$	138,494		$	188,665		$	175,183
Net realized gain (loss)		139,743			251,076			52,166
Net change in unrealized appreciation (depreciation)		1,177,709			1,276,600			1,479,128

Net increase (decrease) in net assets resulting from operations		1,455,946			1,716,341			1,706,477

Distributions to shareholders		(106,216	)		(321,023	)		(82,647	)

Capital share transactions: (Note 2)		41,923,228			6,042,757			537,281,299

Net increase (decrease) in net assets		43,272,958			7,438,075			538,905,129
Net assets:
Beginning of period		13,443,095			6,005,020			—

End of period	$	56,716,053		$	13,443,095		$	538,905,129

^aFor the period September 17, 2019 (commencement of operations) to September 30, 2019.



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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-nine 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 are actively managed, thus they are not designed to track an index. The Trust began offering shares of Franklin Liberty U.S. Core Bond ETF.

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 period. 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.



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NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

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.

b. Foreign Currency Translation

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.

Termination events applicable to the counterparty include certain deteriorations in the credit quality of the counterparty. Termination events applicable to the Funds include failure of the Funds to maintain certain net asset levels and/or limit the decline in net assets over various periods of time. In the event of default or early termination, the ISDA master agreement gives the nondefaulting party the right to net and close-out all transactions traded, whether or not arising under the ISDA agreement, to one net amount payable by one counterparty to the other. Early termination by the counterparty may result in an immediate payment by the Funds of any net liability owed to that counterparty under the ISDA agreement.

The Funds entered into credit default swap contracts primarily to manage and/or gain exposure to credit risk. A credit default swap is an agreement between the Fund and a counterparty whereby the buyer of the contract receives credit protection and the seller of the contract guarantees the credit worthiness of a referenced debt obligation. These agreements may be privately negotiated in the over-the-counter market (OTC credit default swaps) or may be executed in a multilateral trade facility platform, such as a registered



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NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

1. Organization and Significant Accounting Policies(continued)

exchange (centrally cleared credit default swaps). The underlying referenced debt obligation may be a single issuer of corporate or sovereign debt, a credit index, a basket of issuers or indices, or a tranche of a credit index or basket of issuers or indices. In the event of a default of the underlying referenced debt obligation, the buyer is entitled to receive the notional amount of the credit default swap contract from the seller in exchange for the referenced debt obligation, a net settlement amount equal to the notional amount of the credit default swap less the recovery value of the referenced debt obligation, or other agreed upon amount. For centrally cleared credit default swaps, required initial margins are pledged by the Fund, and the daily change in fair value is accounted for as a variation margin payable or receivable. Over the term of the contract, the buyer pays the seller a periodic stream of payments, provided that no event of default has occurred. Such periodic payments are accrued daily as an unrealized appreciation or depreciation until the payments are made, at which time they are realized. Upfront payments and receipts are reflected in the Statements of Assets and Liabilities and represent compensating factors between stated terms of the credit default swap agreement and prevailing market conditions (credit spreads and other relevant factors). These upfront payments and receipts are amortized over the term of the contract as a realized gain or loss in the Statements of Operations.

See Note 7 regarding other derivative information.

d. Income and Deferred Taxes

e. Security Transactions, Investment Income, Expenses and Distributions



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NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

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.

f. Accounting Estimates

g. Guarantees and Indemnifications

2. Shares of Beneficial Interest

At September 30, 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

	Six Months Ended September 30, 2019^a				Year Ended March 31, 2019

	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



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NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

2. Shares of Beneficial Interest(continued)


	Franklin Liberty Investment Grade Corporate ETF

	Six Months Ended September 30, 2019				Year Ended March 31, 2019

	Shares		Amount		Shares			Amount
Shares sold		8,350,000	$	204,170,113		50,000		$	1,200,485
Shares redeemed		—		—		(950,000	)		(22,266,890	)

Net increase (decrease)		8,350,000	$	204,170,113		(900,000	)	$	(21,066,405	)


	Franklin Liberty U.S. Low Volatility ETF

	Six Months Ended September 30, 2019				Year Ended March 31, 2019

	Shares		Amount		Shares			Amount
Shares sold		1,150,000	$	41,923,228		250,000		$	7,630,864
Shares redeemed		—		—		(50,000	)		(1,588,107	)

Net increase (decrease)		1,150,000	$	41,923,228		200,000		$	6,042,757


	Franklin Liberty U.S. Core Bond ETF

	Six Months Ended September 30, 2019^b				Year Ended March 31, 2019

	Shares		Amount		Shares			Amount
Shares sold		21,400,000	$	537,281,299		—		$	—
Shares redeemed		—		—		—			—

Net increase (decrease)		21,400,000	$	537,281,299		—		$	—

^aDuring the period ended September 30, 2019, there were no transactions of the Fund’s shares.

^bFor the period September 17, 2019 (commencement of operations) to September 30, 2019.

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, Franklin Liberty U.S. Low Volatility ETF and Franklin Liberty U.S. Core Bond ETF pay an investment management fee to Advisers of 0.600%, 0.500% and 0.150%, respectively, per year of the average daily net assets of each of the Funds.



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NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

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.

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 Franklin Liberty International Opportunities ETF, Franklin Liberty Investment Grade Corporate ETF, Franklin Liberty U.S. Low Volatility ETF, and Franklin Liberty U.S. Core Bond ETF so that the expenses (including acquired fund fees and expenses) of the Funds do not exceed 0.60%, 0.35%, 0.50%, and 0.15%, 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, 2020. Total expenses waived or paid are not subject to recapture subsequent to the Funds’ fiscal year end.

d. Other Affiliated Transactions

At September 30, 2019, shares of the Funds were owned by the investment companies:



Funds	Shares		Percentage of Outstanding Shares^a
Franklin Liberty Investment Grade Corporate ETF
Franklin Total Return Fund		8,555,000		94.0%


Franklin Liberty U.S. Low Volatility ETF
Franklin Managed Income Fund		1,000,000		64.5%



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FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

3. Transactions with Affiliates(continued)



Funds	Shares		Percentage of Outstanding Shares^a
Franklin Liberty U.S Core Bond ETF
Franklin Conservative Allocation Fund		10,910,302		51.0%
Franklin Moderate Allocation Fund		6,337,507		29.6%
Franklin Growth Allocation Fund		2,664,750		12.4%
Franklin LifeSmart^™ 2020 – 2055 Retirement Target Funds		1,386,830		6.5%

		21,299,389		99.5%

^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, if any. 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:
Short term	$	44,687	$	378,345	$	44,747
Long term		—		531,347		—

Total capital loss carryforwards	$	44,687	$	909,692	$	44,747

At September 30, 2019, the cost of investments and net unrealized appreciation (depreciation) 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			Franklin Liberty U.S. Core Bond ETF
Cost of investments	$	9,425,705		$	220,520,517		$	53,347,223		$	486,667,175

Unrealized appreciation	$	800,253		$	10,470,189		$	3,529,168		$	1,559,394
Unrealized depreciation		(1,000,456	)		(49,765	)		(222,430	)		(80,956	)

Net unrealized appreciation (depreciation)	$	(200,203	)	$	10,420,424		$	3,306,738		$	1,478,438

5. Investment Transactions

Purchases and sales of investments (excluding short term securities andin-kind transactions, if any) for the period ended September 30, 2019, were as follows:



	Franklin Liberty International Opportunities ETF		Franklin Liberty Investment Grade Corporate ETF		Franklin Liberty U.S. Low Volatility ETF		Franklin Liberty U.S. Core Bond ETF
Purchases	$	1,855,601	$	221,382,553	$	2,078,841	$	391,110,179
Sales	$	1,937,948	$	20,807,942	$	2,057,370	$	38,994,646



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NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

In-kind transactions associated with creation and redemptions for the period ended September 30, 2019, were as follows:



	Franklin Liberty International Opportunities ETF		Franklin Liberty Investment Grade Corporate ETF		Franklin Liberty U.S. Low Volatility ETF		Franklin Liberty U.S. Core Bond ETF
Cost of Securities Received	$	—	$	—	$	41,630,661	$	—
Value of Securities Delivered^a	$	—	$	—	$	—	$	—

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

6. Concentration of Risk

7. Other Derivative Information

At September 30, 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 Liberty Investment Grade Corporate ETF

Interest Rate Contracts	Variation margin on future contracts	$	444,972	^a	Variation margin on future contracts	$	278,254	^a

Totals		$	444,972			$	278,254

Franklin Liberty U.S. Core Bond ETF

Interest Rate contracts	Variation margin on future contracts	$	690	^a	Variation margin on future contracts	$	—

Totals		$	690			$	—

^aThis amount reflects the cumulative appreciation (depreciation) of future contracts as reported in the Statements of Investments. Only the variation margin receivable/payable at period end is separately reported within the Statements of Assets and Liabilities. Prior variation margin movements were recorded to cash upon receipt or payment.

For the period ended September 30, 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 Liberty Investment Grade Corporate ETF
	Net realized gain (loss) from:				Net change in unrealized appreciation (depreciation) on:

Interest Rate Contracts	Futures Contracts	$	(224,746	)	Future Contracts	$	166,718

Credit Default Contracts	Swap Contracts		8,526		Swap Contracts		—

		$	(216,220	)		$	166,718



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NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

7. Other Derivative Information(continued)



Derivative Contracts Not Accounted for as Hedging Instruments	Statements of Operations Locations	Net Realized Gain (Loss) for the Period		Statements of Operations Locations	Net Change in Unrealized Appreciation (Depreciation) for the Period
Franklin Liberty U.S. Core Bond ETF
	Net realized gain (loss) from:			Net change in unrealized appreciation (depreciation) on:

Interest Rate Contracts	Futures Contracts	$	—	Futures Contracts	$	690

Credit Default Contracts	Swap Contracts	$	12,222	Swap Contracts	$	—

		$	12,222		$	690

For the period ended September 30, 2019, the average month end notional amount of futures contracts were as follows:



	Franklin Liberty International Opportunities ETF		Franklin Liberty Investment Grade Corporate ETF		Franklin Liberty U.S. Low Volatility ETF		Franklin Liberty U.S. Core Bond ETF
Futures contracts	$	—	$	9,759,536	$	—	$	12,510,586

Credit Default Contracts	$	—	$	1,028,571	$	—	$	—

See Note 1(c) regarding derivative financial instruments.

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 September 30, 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	$	9,225,502	$	—	$	—	$	9,225,502


Franklin Liberty Investment Grade Corporate ETF

Assets:
Investments in Securities:^a
Corporate Bonds & Notes	$	—	$	226,254,683	$	—	$	226,254,683
U.S. Government & Agency Securities		—		2,346,258		—		2,346,258
Short-Term Investments		—		2,340,000		—		2,340,000

Total Investments in Securities	$	—	$	230,940,941	$	—	$	230,940,941

Other Financial Instruments:
Futures Contracts	$	444,972	$	—	$	—	$	444,972



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NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

8. Fair Value Measurements(continued)



	Level 1		Level 2		Level 3		Total

Liabilities:
Other Financial Instruments:
Futures Contracts	$	278,254	$	—	$	—	$	278,254

Franklin Liberty U.S. Low Volatility ETF

Assets:
Investments in Securities:^a
Equity Investments^b	$	56,358,961	$	—	$	—	$	56,358,961
Short-Term Investments		—		295,000		—		295,000

Total Investments in Securities	$	56,358,961	$	295,000	$	—	$	56,653,961


Franklin Liberty U.S. Core Bond ETF

Assets:
Investments in Securities:^a
Corporate Bonds & Notes	$	—	$	155,968,035	$	—	$	155,968,035
U.S. Government & Agency Securities		—		168,533,472		—		168,533,472
Mortgage-Backed Securities		—		134,738,889		—		134,738,889
Foreign Government & Agency Securities		—		5,065,455		—		5,065,455
Municipal Bonds		—		23,839,762		—		23,839,762

Total Investments in Securities	$	—	$	488,145,613	$	—	$	488,145,613

Other Financial Instruments:
Futures Contracts	$	690	$	—	$	—	$	690

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

^bIncludes common and convertible preferred stocks, warrants, as well as other equity investments.

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 Depository Receipt
IDR		International Depositary Receipt
FHLB		Federal Home Loan Bank
FRN		Floating Rate Note
GO		General Obligation
REIT		Real Estate Investment Trust
SDR		Swedish Depositary Receipt



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Tax Information (unaudited)

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. As shown in the table below, the Funds hereby report to shareholders the foreign source income and foreign taxes paid, pursuant to Section 853 of the Internal Revenue Code. This written statement will allow shareholders of record on June 12, 2019, 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.

The following table provides a detailed analysis of foreign tax paid, foreign source income, and foreign source qualified dividends as reported by the Funds to shareholders of record.



Fund	Foreign Tax Paid Per Share		Foreign source Income Per share		Foreign Source Qualified Dividend Per Share
Franklin Liberty International Opportunities ETF	$	0.0732	$	0.6078	$	0.4934

Foreign Tax Paid Per Share is the amount per share available to you, as a tax credit (assuming you held your shares in the Fund for a minimum of 16 days during the 31-day period beginning 15 days before the ex-dividend date of the Fund’s distribution to which the foreign taxes relate), or, as a tax deduction.

Foreign Source Qualified Dividends Per Share is the amount per share of foreign source qualified dividends, plus any foreign taxes withheld on these dividends. These amounts represent the portion of the Foreign Source Income reported to you in column 2 that were derived from qualified foreign securities held by the Fund.¹

By mid-February 2020, shareholders will receive Form 1099-DIV which will include their share of taxes paid and foreign source income distributed during the calendar year 2019. The Foreign Source Income reported on Form 1099-DIV has not been adjusted for the rate differential on foreign source qualified dividend income. 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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Shareholder Information

Board Approval of Investment Management Agreements

FRANKLIN TEMPLETON ETF TRUST

Franklin Liberty International Opportunities ETF

Franklin Liberty Investment Grade Corporate ETF

Franklin Liberty U.S. Low Volatility ETF

(each a Fund)

At anin-person meeting held on May 29, 2019 (Meeting), the Board of Trustees (Board) of Franklin Templeton ETF Trust (Trust), including a majority of the trustees who are not “interested persons” as defined in the Investment Company Act of 1940 (Independent Trustees), reviewed and approved the continuance of the investment management agreement between Franklin Advisers, Inc. (FAI) and the Trust, on behalf of each Fund, the investmentsub-advisory agreements between FAI and each of Templeton Asset Management Ltd. (TAML), Franklin Templeton Investment Management Limited (FTIML), Franklin Templeton Investimentos (Brasil) Ltda. (FTI Brasil), Franklin Templeton Investments Corp. (FTIC) and Franklin Templeton Investments (ME) Limited (FTIME), affiliates of FAI, on behalf of the Franklin Liberty International Opportunities ETF and the investmentsub-advisory agreement between FAI and Franklin Templeton Institutional, LLC (FTIL), an affiliate of FAI, on behalf of the Franklin Liberty Investment Grade Corporate ETF (each a Management Agreement) for an additionalone-year period. TAML, FTIML, FTI Brasil, FTIC, FTIME and FTIL are referred to herein individually, as aSub-Adviser and collectively, as theSub-Advisers. The Independent Trustees received advice from and met separately with Independent Trustee counsel in considering whether to approve the continuation of each Management Agreement. Although the Management Agreements for the Funds were considered at the same Board meeting, the Board considered the information provided to it about the Funds together and with respect to each Fund separately as the Board deemed appropriate. FAI and theSub-Advisers are each referred to herein as a Manager.

In considering the continuation of each Management Agreement, the Board reviewed and considered information provided by each Manager at the Meeting and throughout the year at meetings of the Board and its committees. The Board also reviewed and considered information provided in response to a detailed set of requests for information submitted to FAI by Independent Trustee counsel on behalf of the Independent Trustees in connection with the annual contract renewal process. In addition, prior to the Meeting, the Independent

Trustees held a telephonic contract renewal meeting at which the Independent Trustees conferred amongst themselves and Independent Trustee counsel about contract renewal matters. The Board reviewed and considered all of the factors it deemed relevant in approving the continuance of each Management Agreement, including, but not limited to: (i) the nature, extent and quality of the services provided by each Manager; (ii) the investment performance of each Fund; (iii) the costs of the services provided and profits realized by each Manager and its affiliates from the relationship with each Fund; (iv) the extent to which economies of scale are realized as each Fund grows; and (v) whether fee levels reflect these economies of scale for the benefit of Fund investors.

NATURE, EXTENT AND QUALITY OF SERVICES. The Board reviewed and considered information regarding the nature, extent and quality of investment management services provided by each Manager and its affiliates to the Funds and their shareholders. This information included, among other things, the qualifications, background and experience of the senior management and investment personnel of each Manager; the structure of investment personnel compensation; oversight of third-party service providers; investment performance reports and related financial information for each Fund; reports on expenses; legal and compliance matters; risk controls; pricing and other services provided by each Manager and its affiliates; and management fees charged by each Manager and its affiliates to US funds and other accounts, including management’s explanation of differences among accounts where relevant. The Board noted management’s continuing efforts and expenditures in establishing effective business continuity plans and developing strategies to address areas of heightened concern in the registered fund industry, such as cybersecurity and liquidity risk management. The Board also recognized management’s commitment to facilitating Board oversight of liquidity through the designation of a liquidity/risk administrator and the development of reports that highlight the amount of illiquid investments for each Fund.



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SHAREHOLDER INFORMATION

The Board also reviewed and considered the benefits provided to Fund shareholders of investing in a fund that is part of the Franklin Templeton family of funds. The Board noted the financial position of Franklin Resources, Inc. (FRI), the Managers’ parent, and its commitment to the registered fund business as evidenced by its continued introduction of new funds, reassessment of the fund offerings in response to the market environment and project initiatives and capital investments relating to the services provided to the Funds by the Franklin Templeton (FT) organization.

Following consideration of such information, the Board was satisfied with the nature, extent and quality of services provided by each Manager and its affiliates to the Funds and their shareholders.

Franklin Liberty International Opportunities ETF – The Performance Universe for the Fund included the Fund and all retail and institutional internationalmulti-cap growth funds. The Fund commenced operations on January 25, 2017, and thus has been in operation for less than three years. The Board noted that the Fund’s annualized total return for theone-year period was 0.08% below the median of its Performance Universe. The Board concluded that the Fund’s performance was acceptable given its short period of operation.

Franklin Liberty Investment Grade Corporate ETF – The Performance Universe for the Fund included the Fund and all retail and institutionalBBB-rated corporate debt funds. The Fund commenced operations on October 3, 2016, and thus has been in operation for less than three years. The Board noted that the Fund’s annualized total return for theone-year period was 0.01% below the median of its Performance Universe. The Board concluded that the Fund’s performance was satisfactory.

Franklin Liberty U.S. Low Volatility ETF – The Performance Universe for the Fund included the Fund and all retail and institutionallarge-cap core funds. The Fund commenced operations on September 20, 2016, and thus has been in operation for less than three years. The Board noted that the Fund’s annualized total return for theone-year period was above the median and in the first quintile of its Performance Universe. The Board concluded that the Fund’s performance was satisfactory.



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Franklin Liberty International Opportunities ETF–The Expense Group for the Franklin Liberty International Opportunities ETF was comprised of actively managed exchange-traded funds, which included the Fund, one other internationalmulti-cap growth fund and two internationalmulti-cap core funds. The Board noted that the Management Rate and actual total expense ratio for the Fund were below the medians of its Expense Group. The Board also noted the small size of each Fund’s Expense Group and that the Fund’s actual total expense ratio reflected a fee waiver from management. The Board further noted that theSub-Advisers to the Fund are paid by FAI out of the management fee FAI receives from the Fund. The Board concluded that the Management Rate charged to the Fund is reasonable.

Franklin Liberty Investment Grade Corporate ETF – The Expense Group for the Fund was comprised of actively managed exchange-traded funds, which included the Fund, two otherBBB-rated corporate debt funds, three short investment-grade debt funds, and one core bond fund. The Board noted that the Management Rate for the Fund was above the median and in the fifth quintile (most expensive) of its Expense Group, but its actual total expense ratio was below the median and in the first quintile (least expensive) of its Expense Group. The Board also noted the small size of the Expense Group and that the Fund’s actual total expense ratio reflected a fee waiver from management. The Board further noted that theSub-Adviser to the Fund is paid by FAI out of the management fee FAI receives from the Fund. The Board concluded that the Management Rate charged to the Fund is reasonable.

Franklin Liberty U.S. Low Volatility ETF –The Expense Group for the Fund was comprised of actively managed exchange-traded funds, which included the Fund and twomulti-cap core funds. The Board noted that the Management Rate and actual total expense ratio for the Fund were below the medians of its Expense Group. The Board also noted the small size of the Fund’s Expense Group and that the Fund’s actual total expense ratio reflected a fee waiver from management. The Board concluded that the Management Rate charged to the Fund is reasonable.

PROFITABILITY. The Board reviewed and considered information regarding the profits realized by each Manager and its affiliates in connection with the operation of each Fund. In this respect, the Board considered the Fund profitability analysis that addresses the overall profitability of FT’s US fund business, as well as its profits in providing investment management and other services to each of the individual funds during the12-month period ended September 30, 2018,

being the most recent fiscalyear-end for FRI. The Board noted that although management continually makes refinements to its methodologies used in calculating profitability in response to organizational and product-related changes, the overall methodology has remained consistent with that used in the Funds’ profitability report presentations from prior years. Additionally, PricewaterhouseCoopers LLP, auditor to FRI and certain Franklin Templeton funds, has been engaged to periodically review and assess the allocation methodologies to be used solely by the Funds’ Board with respect to the profitability analysis.

The Board noted management’s belief that costs incurred in establishing the infrastructure necessary for the type of fund operations conducted by each Manager and its affiliates may not be fully reflected in the expenses allocated to each Fund in determining its profitability, as well as the fact that the level of profits, to a certain extent, reflected operational cost savings and efficiencies initiated by management. The Board also noted management’s expenditures in improving shareholder services provided to the Funds, as well as the need to implement systems and meet additional regulatory and compliance requirements resulting from recent SEC and other regulatory requirements.

The Board also considered the extent to which each Manager and its affiliates might derive ancillary benefits from fund operations, including revenues generated from transfer agent services, potential benefits resulting from personnel and systems enhancements necessitated by fund growth, as well as increased leverage with service providers and counterparties. Based upon its consideration of all these factors, the Board concluded that the level of profits realized by each Manager and its affiliates from providing services to each Fund was not excessive in view of the nature, extent and quality of services provided to each Fund.

ECONOMIES OF SCALE. The Board reviewed and considered the extent to which each Manager may realize economies of scale, if any, as each Fund grows larger and whether each Fund’s management fee structure reflects any economies of scale for the benefit of shareholders. With respect to possible economies of scale, the Board noted the existence of management fee breakpoints for the Franklin Liberty Investment Grade Corporate ETF, which operates generally to share any economies of scale with the Fund’s shareholders by reducing the Fund’s effective management fees as the Fund grows in size. The Board considered the management’s view that any analyses of potential economies of scale in managing a particular fund are inherently limited in light of the joint and common costs and investments the



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Managers incur across the Franklin Templeton family of funds as a whole. The Board concluded that to the extent economies of scale may be realized by a Manager and its affiliates, the Franklin Liberty Investment Grade Corporate ETF’s management fee structure provided a sharing of benefits with the Fund and its shareholders as the Fund grows. The Board noted that at the end of 2018, the net assets of each Fund were less than $20 million. The Board recognized that there would not likely be any economies of scale until these Funds’ assets grow.

Board Approval of Investment Management Agreements

FRANKLIN TEMPLETON ETF TRUST

Franklin Liberty Investment Grade Corporate ETF

(Fund)

At anin-person meeting held on September 6, 2019 (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 investmentsub-advisory agreement between Franklin Advisers, Inc. (FAV) and Franklin Templeton Portfolio Advisors, Inc. (FT Portfolio Advisors), on behalf of the Fund(Sub-Advisory Agreement) for an initialtwo-year period. The Independent Trustees received advice from and met separately with Independent Trustee counsel in considering whether to approve theSub-Advisory Agreement. FT Portfolio Advisors and FAV are each referred to herein as a Manager.

In considering the approval of theSub-Advisory Agreement, the Board reviewed and considered information provided by each Manager at the Meeting and throughout the year at meetings of the Board and its committees. The Board reviewed and considered all of the factors it deemed relevant in approving theSub-Advisory Agreement, including, but not limited to: (i) the nature, extent and quality of the services to be provided by FT Portfolio Advisors as asub-adviser to the Fund; (ii) the investment performance of the Fund; (ii) the costs of the services to be provided by FT Portfolio Advisors and the profits realized/expected to be realized by the Managers and their affiliates from the relationship with the Fund;

and (iii) the extent to which economies of scale may be realized as the Fund grows. The Board also reviewed and considered the form ofSub-Advisory Agreement and the terms of theSub-Advisory Agreement which were explained at the Meeting, noting that the terms and conditions of theSub-Advisory Agreement were substantially identical to the terms and conditions of thesub-advisory agreement previously approved by the Board for the Fund between FAV and Franklin Templeton Institutional, LLC (FT Institutional), the current, sole investmentsub-adviser of the Fund.

In approving theSub-Advisory Agreement, the Board, including a majority of the Independent Trustees, determined that the terms of theSub-Advisory Agreement are fair and reasonable and that suchSub-Advisory Agreement is in the best interests of the Fund and its shareholders. While attention was given to all information furnished, the following discusses some primary factors relevant to the Board’s determination.

NATURE, EXTENT AND QUALITY OF SERVICES. The Board reviewed and considered information regarding the nature, extent and quality of investmentsub-advisory services to be provided by FT Portfolio Advisors to the Fund and its shareholders. This information included, among other things, management’s representation that it was proposing FT Portfolio Advisors to serve as an additionalsub-adviser to the Fund to support FAV in providing investment advice to the Fund, with Thomas Runkel being added as a portfolio manager to the Fund. Following consideration of such information, the Board was satisfied with the nature, extent and quality of services to be provided by FT Portfolio Advisors to the Fund and its shareholders under theSub-Advisory Agreement.

FUND PERFORMANCE. The Board noted that the Fund commenced investment operations on October 3, 2016. The Board further noted that it reviewed detailed performance information about the Fund at its prior Board meeting in connection with the May 2019 annual contract renewal. In light of the Fund’s shorter operating history and the recent annual contract renewal, the Board determined that the conclusions reached regarding the Fund’s performance in connection with the annual contract renewal had not changed.

COMPARATIVE FEES AND EXPENSES. The Board reviewed and considered information regarding the proposed investmentsub-advisory fee. In particular, the Board considered the fact that FAV would compensate FT Portfolio Advisors out of the fee paid to FAV under the investment management agreement between FAV and the Trust, on behalf of the Fund, and that the investmentsub-advisory fee would not be an additional fee borne by the Fund. The Board



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noted that, in connection with the appointment of FT Portfolio Advisors as an investmentsub-adviser to the Fund, management was also proposing that FT Institutional’s current investmentsub-advisory fee be reduced correspondingly. The Board further noted management’s representation that, in light of the above, the addition of FT Portfolio Advisors as asub-adviser to the Fund will have no impact on the investment management fees paid by the Fund. The Board concluded that the proposed investmentsub-advisory fee for the Fund is reasonable.

MANAGEMENT PROFITABILITY AND ECONOMIES OF SCALE. The Board reviewed profitability information for FAV and determined that its conclusions regarding profitability and economies of scale reached in connection with the May 2019 annual contract renewal had not changed as a result of the addition of FT Portfolio Advisors to serve as an investmentsub-adviser of the Fund because FAV’s retained portion of the management fee will not change, and, therefore, the addition of FT Portfolio Advisors as a newsub-adviser is not expected to have an impact on FAV’s profitability.

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 theSub-Advisory Agreement for the Fund for an initialtwo-year period.

Board Approval of Investment Management Agreements

FRANKLIN TEMPLETON ETF TRUST

Franklin Liberty U.S. Core Bond ETF

(Fund)

At an in-person meeting held on September 6, 2019 (Meeting), the Board of Trustees (Board) of Franklin Templeton ETF Trust (Trust), including a majority of the trustees who are not “interested persons” as defined in the Investment Company Act of 1940 (Independent Trustees), reviewed and approved an investment management agreement between Franklin Advisers, Inc. (Manager) and the Trust, on behalf of the Fund (Management Agreement) for an initial two-year period. The Independent Trustees received advice from and met separately with Independent Trustee counsel in considering whether to approve the Management Agreement.

In considering the approval of the Management Agreement, the Board reviewed and considered information provided by the Manager at the Meeting and throughout the year at meetings of the Board and its committees. The Board reviewed

and considered all of the factors it deemed relevant in approving the Management Agreement, including, but not limited to: (i) the nature, extent and quality of the services to be provided by the Manager; (ii) the costs of the services to be provided by the Manager; and (iii) the extent to which economies of scale may be realized as the Fund grows. The Board also reviewed and considered the form of Management Agreement and the terms of the Management Agreement which were explained at the Meeting, noting that 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 other series of the Trust.

In approving the Management Agreement, the Board, including a majority of the Independent Trustees, determined that the terms of the proposed Management Agreement are fair and reasonable and that such Management Agreement is in the best interests of the Fund and its shareholders. While attention was given to all information furnished, the following discusses some primary factors relevant to the Board’s determination.

NATURE, EXTENT AND QUALITY OF SERVICES. The Board reviewed and considered information regarding the nature, extent and quality of investment management services to be provided by the Manager and its affiliates to the Fund and its shareholders. This information included, among other things, the Fund’s proposed investment strategies and the ability of the Manager to implement such investment strategies; the qualifications, background and experience of the investment personnel that will be responsible for the day-to-day portfolio management of the Fund; the Manager’s experience as the manager of other funds and accounts, including other series of the Trust and other funds in the 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 reasonably designed to prevent violations of the Federal Securities Laws (as defined in Rule 38a-1 of the Investment Company Act of 1940). Following consideration of such information, the Board was satisfied with the nature, extent and quality of services to be provided by the Manager and its affiliates to the Fund and its shareholders.

FUND PERFORMANCE. The Board noted that, as the Fund had not yet commenced investment operations, there was no investment performance for the Fund. The Board also



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SHAREHOLDER INFORMATION

considered the proposed performance benchmark for the Fund and how such benchmark would be utilized to measure performance of the Manager.

COMPARATIVE FEES AND EXPENSES. The Board reviewed and considered information regarding the Fund’s proposed total expense ratio and its various components, including, as applicable, management fees; transfer agent expenses; underlying fund expenses; Rule 12b-1 and non-Rule 12b-1 service fees; and other non-management fees. The Board considered the proposed total expense ratio and, separately, the proposed contractual management fee rate, without the effect of fee waivers, if any (Management Rate) of the Fund in comparison to the median expense ratio and median Management Rate, respectively, of other exchange-traded funds deemed comparable to and with a similar expense structure as the Fund (Expense Group) as selected by Broadridge Financial Solutions, Inc. (Broadridge), an independent organization. Broadridge fee and expense data is based upon information taken from each fund’s most recent annual report (excluding the Fund), which reflects historical asset levels that may be quite different from those currently existing, particularly in a period of market volatility. While recognizing such inherent limitation and the fact that expense ratios and Management Rates generally increase as assets decline and decrease as assets grow, the Board believed the independent analysis conducted by Broadridge to be an appropriate measure of comparative fees and expenses. The Broadridge Management Rate includes administrative charges. The Board received a description of the methodology used by Broadridge to select the exchange-traded funds included in an Expense Group.

The Expense Group for the Fund was comprised of actively managed exchange-traded funds, which included the Fund and three other core bond funds. The Board noted that the proposed Management Rate and proposed total expense ratio for the Fund were below the medians of its respective Expense Group. The Board concluded that the Management Rate to be charged to the Fund is reasonable. In doing so, the Board noted the small size of the Expense Group and that the Fund’s proposed total expense ratio reflected a fee waiver from management.

PROFITABILITY. The Board then noted that the Manager (and its affiliates) could not report any financial results from their relationships with the Fund because the Fund has not yet commenced investment operations, and thus, the Board could not evaluate the Manager’s (or its affiliates’) profitability with respect to the Fund.

ECONOMIES OF SCALE. The Board reviewed and considered the extent to which the Manager may realize economies of scale, if any, as the Fund grows larger and whether the Fund’s management fee structure reflects any economies of scale for the benefit of shareholders. With respect to possible economies of scale in the future, the Board noted that it is not anticipated that the Fund will generate significant, if any, profit for the Manager and/or its affiliates for some time.

CONCLUSION. Based on its review, consideration and evaluation of all factors it believed relevant, including the above-described factors and conclusions, the Board unanimously approved the Management Agreement for the Fund for an initial two-year period.

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 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 Fund and the Fund’s net asset value may be found on the Fund’s website at franklintempleton.com.



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SEMIANNUAL REPORT

FRANKLIN TEMPLETON

ETF TRUST

September 30, 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

Semiannual Report

Economic and Market Overview			2
Franklin LibertyQ U.S. Equity ETF			3
Franklin LibertyQ U.S. Mid Cap Equity ETF			8
Franklin LibertyQ U.S. Small Cap Equity ETF			13
Financial Highlights and Statements of Investments			18
Financial Statements			42
Notes to Financial Statements			46
Shareholder Information			54

Visitfranklintempleton.com/investor/

investments-and-solutions/

investment-options/etfs/ for fund

updates and documents.


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SEMIANNUAL REPORT

Economic and Market Overview

The U.S. economy expanded during the six months ended September 30, 2019. However, the economy moderated in 2019’s second and third quarters, due partly to weakness in inventory and business investment. The manufacturing sector expanded during the period’s first four months, but contracted in August and September 2019. The services sector continued to expand throughout the period, although the rate of expansion slowed in September. The unemployment rate decreased from 3.8% in March 2019 to 3.5% atperiod-end.¹ The annual inflation rate, as measured by the Consumer Price Index, decreased from 1.9% in March 2019 to 1.7% atperiod-end.¹

U.S. equity markets overall rose during the period, benefiting from upbeat economic data and U.S. corporate earnings, the Fed’s rate cuts and investor optimism about further monetary easing. However, markets reflected concerns about political uncertainties in the U.S. (including the impeachment inquiry into President Donald Trump), geopolitical tensions in certain regions, and the impact of U.S. trade disputes with China and other trading partners on global growth and corporate earnings. These concerns were partly alleviated at certain points during the period by easing trade tensions and optimism about a potentialU.S.-China trade deal. The broad U.S. stock market, as measured by the Standard & Poor’s^® 500 Index (S&P 500^®), generally trended higher in the period’s first four months, reaching a newall-time high in July. Stocks retreated in August, due to escalating trade tensions and heightened concerns about U.S. and global economic growth, but recovered in September amid easing trade tensions and investor optimism about the upcomingU.S.-China trade negotiations in October 2019. Overall, the S&P 500 posted a +6.08% total return for thesix-month period.²

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 semiannual report for Franklin LibertyQ U.S. Equity ETF covers the period ended September 30, 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 six months under review, the Fund posted cumulative total returns of +6.16% based on market price and +6.03% based on net asset value (NAV). In comparison, the LibertyQ U.S. Large Cap Equity Index posted a +6.16% total return for the same period, while the Russell 1000^® Index posted a +5.73% total return.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 5.


Top 10 Sectors/Industries

9/30/19

	% of Total Net Assets
Information Technology		18.9%
Consumer Discretionary		16.7%
Consumer Staples		15.7%
Industrials		12.7%
Health Care		9.9%
Utilities		7.6%
Communication Services		5.9%
Real Estate		4.7%
Energy		3.0%
Financials		2.8%

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. 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 19.



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FRANKLIN LIBERTYQ U.S. EQUITY ETF


Top 10 Holdings

9/30/19

Company *Sector/Industry*	% of Total Net Assets
Apple Inc. Information Technology		1.2%
AT&T Inc. Communication Services		1.1%
Texas Instruments Inc. Information Technology		1.1%
Target Corp. Consumer Discretionary		1.1%
The Home Depot Inc. Consumer Discretionary		1.1%
NIKE Inc., B Consumer Discretionary		1.1%
The Procter & Gamble Co. Consumer Staples		1.1%
Costco Wholesale Corp. Consumer Staples		1.1%
Ross Stores Inc. Consumer Discretionary		1.1%
Intel Corp. Information Technology		1.1%

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.



4	Semiannual Report	franklintempleton.com

FRANKLIN LIBERTYQ U.S. EQUITY ETF

Performance Summary as of September 30, 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 9/30/19¹

Cumulative Total Return²

Average Annual Total Return²

Based on
NAV³

Based on
market price⁴

Based on
NAV³

Based on
market price⁴

6-month

+6.03%

+6.16%

+6.03%

+6.16%

1-Year

+7.28%

+7.31%

+7.28%

+7.31%

Since Inception (4/26/17)

+35.16%

+35.32%

+13.20%

+13.26%

See page 6 for Performance Summary footnotes.



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FRANKLIN LIBERTYQ U.S. EQUITY ETF

PERFORMANCE SUMMARY

Distributions(4/1/19–9/30/19)

Net Investment
Income

$0.311624

Total Annual Operating Expenses⁵

0.15%

All investments involve risks, including possible loss of principal. Stock prices fluctuate, sometimes rapidly and dramatically, due to factors affecting individual companies, particular industries or sectors, or general market conditions. To the extent the Fund concentrates in a specific industry or group of industries, the Fund will carry much greater risks of adverse developments and price movements in such industries than a fund that invests in a wider variety of industries; there is also the risk that the Fund will perform poorly during a slump in demand for securities of companies in such industries. 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.



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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 4/1/19		Ending Account Value 9/30/19		Expenses Paid During Period 4/1/19–9/30/19^1,2		Ending Account Value 9/30/19		Expenses Paid During Period 4/1/19–9/30/19^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	1,060.30	$	1.13	$	1,023.90	$	1.11		0.22	%³

2. Reflects expenses after fee waivers and expense reimbursements.

3. Effective 08/01/19, the unified management fee changed to 0.15%. Had such unified management fee been in effect for the full period, the expenses paid would have been $0.77 based upon the Fund’s actual performance and $0.76 based upon a hypothetical 5% return.



franklintempleton.com	Semiannual Report	7

Franklin LibertyQ U.S. Mid Cap Equity ETF

This semiannual report for Franklin LibertyQ U.S. Mid Cap Equity ETF covers the period ended September 30, 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 six months under review, the Fund posted cumulative total returns of +4.46% based on market price and +4.43% based on net asset value (NAV). In comparison, the LibertyQ U.S. Mid Cap Equity Index posted a +4.57% total return for the same period, while the Russell Midcap^® 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 10.


Top 10 Sectors/Industries

9/30/19

	% of Total Net Assets
Consumer Discretionary		20.5%
Industrials		17.7%
Information Technology		14.3%
Financials		13.0%
Real Estate		9.4%
Consumer Staples		8.4%
Health Care		7.6%
Utilities		3.9%
Communication Services		3.2%
Materials		1.5%

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 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 26.



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FRANKLIN LIBERTYQ U.S. MID CAP EQUITY ETF


Top 10 Holdings

9/30/19

Company *Sector/Industry*	% of Total Net Assets
KLA Corp. Information Technology		1.5%
Lam Research Corp. Information Technology		1.2%
Dollar General Corp. Consumer Discretionary		1.2%
Cintas Corp. Industrials		1.1%
CDW Corp. Information Technology		1.1%
Entergy Corp. Utilities		1.2%
Synopsys Inc. Information Technology		1.1%
The Hershey Co. Consumer Staples		1.1%
The Kroger Co. Consumer Staples		1.1%
Essex Property Trust Inc. Real Estate		1.0%

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



franklintempleton.com	Semiannual Report	9

FRANKLIN LIBERTYQ U.S. MID CAP EQUITY ETF

Performance Summary as of September 30, 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 9/30/19¹

Cumulative Total Return²

Average Annual Total Return²

Based on

NAV³

Based on

market price⁴

Based on

NAV³

Based on

market price⁴

6-month

+4.43%

+4.46%

+4.43%

+4.46%

1-Year

+5.07%

+5.13%

+5.07%

+5.13%

Since Inception (4/26/17)

+27.51%

+27.66%

+10.52%

+10.57%

See page 11 for Performance Summary footnotes.



10	Semiannual Report	franklintempleton.com

FRANKLIN LIBERTYQ U.S. MID CAP EQUITY ETF

PERFORMANCE SUMMARY

Distributions(4/1/19–9/30/19)

Net Investment

Income

$0.211465

Total Annual Operating Expenses⁵

0.30%

All investments involve risks, including possible loss of principal. 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.



franklintempleton.com	Semiannual Report	11

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 Value 4/1/19		Ending Account Value 9/30/19		Expenses Paid During Period 4/1/19–9/30/19^1,2		Ending Account Value 9/30/19		Expenses Paid During Period 4/1/19–9/30/19^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	1,044.30	$	1.53	$	1,023.50	$	1.52		0.30	%

2. Reflects expenses after fee waivers and expense reimbursements.



12	Semiannual Report	franklintempleton.com

Franklin LibertyQ U.S. Small Cap Equity ETF

This semiannual report for Franklin LibertyQ U.S. Small Cap Equity ETF covers the period ended September 30, 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 thesix-month period, the Fund posted cumulative total returns of +1.11% based on market price and +1.07% based on net asset value (NAV).² In comparison, the LibertyQ U.S. Small Cap Equity Index posted a +1.24% total return for the same period, while the Russell 2000^® Index posted a-0.36% total return.³ You can find more of the Fund’s performance data in the Performance Summary beginning on page 15.


Top 10 Sectors/Industries

9/30/19

	% of Total Net Assets
Consumer Discretionary		23.5%
Industrials		20.4%
Information Technology		11.0%
Health Care		10.4%
Financial		9.3%
Utilities		7.1%
Consumer Staples		6.8%
Real Estate		6.0%
Communication Services		3.2%
Materials		1.7%

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 32.



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FRANKLIN LIBERTYQ U.S. SMALL CAP EQUITY ETF


Top 10 Holdings

9/30/19

Company *Sector/Industry*	% of Total Net Assets
Haemonetics Corp. Health Care		1.0%
Essent Group Ltd. Financials		1.0%
Trex Co, Inc, Industrials		0.9%
Deckers Outdoor Corp. Consumer Discretionary		0.9%
Performance Food Group Co. Consumer Staples		0.9%
J2 Global Inc. Information Technology		0.9%
Southwest Gas Holdings Inc. Utilities		0.9%
Silicon Laboratories Inc. Information Technology		0.8%
Amedisys Inc. Health Care		0.8%
Texas Roadhouse Inc., A Consumer Discretionary		0.8%

Thank you for your participation in Franklin LibertyQ U.S. Small Cap Equity ETF. We look forward to serving your future investment needs.


		Dina Ting, CFA
		Louis Hsu, CFA

		Portfolio Management Team



14	Semiannual Report	franklintempleton.com

FRANKLIN LIBERTYQ U.S. SMALL CAP EQUITY ETF

Performance Summary as of September 30, 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 9/30/19¹

Cumulative Total Return²

Average Annual Total Return²

Based on

NAV³

Based on

market price⁴

Based on

NAV³

Based on

market price⁴

6-month

+1.07%

+1.11%

+1.07%

+1.11%

1-Year

-6.22%

-5.81%

-6.22%

-5.81%

Since Inception (4/26/17)

+12.90%

+13.03%

+5.12%

+5.17%

See page 16 for Performance Summary footnotes.



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FRANKLIN LIBERTYQ U.S. SMALL CAP EQUITY ETF

PERFORMANCE SUMMARY

Distributions(4/1/19–9/30/19)

Net Investment
Income

$0.207995

Total Annual Operating Expenses⁵

0.35%

All investments involve risks, including possible loss of principal. 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 relatively 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.



16	Semiannual Report	franklintempleton.com

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 4/1/19		Ending Account Value 9/30/19		Expenses Paid During Period 4/1/19–9/30/19^1,2		Ending Account Value 9/30/19		Expenses Paid During Period 4/1/19–9/30/19^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	1,010.70	$	1.76	$	1,023.25	$	1.77		0.35	%

2. Reflects expenses after fee waivers and expense reimbursements.



franklintempleton.com	Semiannual Report	17

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin LibertyQ U.S. Equity ETF


	Six Months Ended September 30, 2019 (unaudited)			Year Ended March 31,
	Six Months Ended September 30, 2019 (unaudited)			2019			2018^a

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

Net asset value, beginning of period	$	31.41		$	28.51		$	25.44


Income from investment operations^b:

Net investment income^c		0.36			0.66			0.53

Net realized and unrealized gains (losses)		1.53			2.71			2.98


Total from investment operations		1.89			3.37			3.51


Less distributions from net investment income		(0.31	)		(0.47	)		(0.44	)


Net asset value, end of period	$	32.99		$	31.41		$	28.51


Total return^d		6.03%			11.97%			13.84%

Ratios to average net assets^e

Expenses before waiver and payments by affiliates		0.22%			0.25%			0.32%	^f

Expenses net of waiver and payments by affiliates		0.22%			0.25%			0.25%	^f

Net investment income		2.24%			2.20%			2.10%

Supplemental data

Net assets, end of period (000’s)		$1,219,100			$1,008,255			$108,326

Portfolio turnover rate^g		11.16%			18.04%			20.80%

Portfolio turnover rate excluding portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely or in part for cash^g,h		11.16%			—%			—%

^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.

^hEffective September 30, 2019.



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

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, September 30, 2019 (unaudited)

Franklin LibertyQ U.S. Equity ETF



		Shares		Value
	Common Stocks 99.8%
	Communication Services 5.9%
a	AMC Networks Inc., A		9,607	$	472,280
	AT&T Inc.		366,544		13,870,025
	Cable One Inc.		525		658,718
	CBS Corp., B		26,604		1,074,004
	Cinemark Holdings Inc.		13,302		513,989
	Comcast Corp., A		271,952		12,259,596
a	Facebook Inc., A		62,815		11,186,095
b	Match Group Inc.		11,085		791,913
	Omnicom Group Inc.		56,164		4,397,641
	The Interpublic Group of Cos. Inc.		63,554		1,370,224
	The Walt Disney Co.		84,985		11,075,245
	Verizon Communications Inc.		205,442		12,400,479
	Viacom Inc., B		62,076		1,491,686

					71,561,895

	Consumer Discretionary 16.7%
a	AutoZone Inc.		4,618		5,008,775
	Best Buy Co. Inc.		69,466		4,792,459
a	Capri Holdings Ltd.		43,601		1,445,809
	Carnival Corp.		93,114		4,070,013
	Carter’s Inc.		11,824		1,078,467
	Choice Hotels International Inc.		9,607		854,639
	Darden Restaurants Inc.		37,689		4,455,594
	Dick’s Sporting Goods Inc.		22,909		934,916
	Dollar General Corp.		54,686		8,691,793
	Domino’s Pizza Inc.		11,824		2,892,032
a	Five Below Inc.		3,695		465,940
	Foot Locker Inc.		39,167		1,690,448
a	frontdoor Inc.		6,651		323,039
	Garmin Ltd.		36,950		3,129,296
	General Motors Co.		99,026		3,711,495
	Gentex Corp.		72,422		1,994,140
	Genuine Parts Co.		39,167		3,900,642
a	Grand Canyon Education Inc.		8,129		798,268
	H&R Block Inc.		65,771		1,553,511
	Hanesbrands Inc.		26,604		407,573
	Hasbro Inc.		31,038		3,683,900
	Kohl’s Corp.		50,991		2,532,213
	Kontoor Brands Inc.		1		35
	L Brands Inc.		70,205		1,375,316
	Las Vegas Sands Corp.		70,944		4,097,725
	Lear Corp.		16,258		1,916,818
	Leggett & Platt Inc.		33,994		1,391,714
a	Lululemon Athletica Inc.		28,821		5,548,907
	Macy’s Inc.		84,246		1,309,183
	McDonald’s Corp.		56,164		12,058,972
	NIKE Inc., B		144,844		13,603,749
b	Nordstrom Inc.		32,516		1,094,814
a	NVR Inc.		739		2,747,122
a	O’Reilly Automotive Inc.		22,909		9,129,466
	Penske Automotive Group Inc.		6,651		314,459
	Pool Corp.		9,607		1,937,732
	PulteGroup Inc.		20,692		756,293
	Ralph Lauren Corp.		8,129		776,076
	Ross Stores Inc.		120,457		13,232,201
	Six Flags Entertainment Corp.		12,563		638,075
	Tapestry Inc.		84,246		2,194,608
	Target Corp.		129,325		13,826,136



franklintempleton.com	Semiannual Report	19

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin LibertyQ U.S. Equity ETF(continued)



		Shares		Value
	Common Stocks (continued)
	Consumer Discretionary (continued)
	The Gap Inc.		74,639	$	1,295,733
	The Home Depot Inc.		59,120		13,717,022
	The TJX Cos. Inc.		222,439		12,398,750
	Thor Industries Inc.		13,302		753,425
	Tractor Supply Co.		33,994		3,074,417
a	Ulta Beauty Inc.		16,258		4,075,068
a	Urban Outfitters Inc.		21,431		601,997
	VF Corp.		86,463		7,694,342
	Williams-Sonoma Inc.		25,126		1,708,065
	Wyndham Destinations Inc.		15,519		714,184
	Yum! Brands Inc.		101,982		11,567,818

					203,965,184

	Consumer Staples 15.7%
	Altria Group Inc.		227,612		9,309,331
	Brown-Forman Corp., A		15,519		927,260
	Casey’s General Stores Inc.		8,129		1,310,070
	Church & Dwight Co. Inc.		66,510		5,004,212
	Clorox Co.		41,384		6,284,988
	Colgate-Palmolive Co.		160,363		11,788,284
	Costco Wholesale Corp.		46,557		13,413,537
	Estee Lauder Cos. Inc., A		62,076		12,350,020
	Flowers Foods Inc.		47,296		1,093,956
	General Mills Inc.		160,363		8,839,209
	Hormel Foods Corp.		79,073		3,457,862
	Ingredion Inc.		16,258		1,328,929
	Kellogg Co.		31,038		1,997,295
	Kimberly-Clark Corp.		50,252		7,138,297
	Lamb Weston Holdings Inc.		33,994		2,472,044
a	Monster Beverage Corp.		78,334		4,548,072
	Nu Skin Enterprises Inc., A		14,041		597,164
	PepsiCo Inc.		87,202		11,955,394
	Philip Morris International Inc.		144,844		10,998,005
a	Sprouts Farmers Market Inc.		20,692		400,183
	Sysco Corp.		130,064		10,327,082
	The Coca-Cola Co.		227,612		12,391,197
	The Hershey Co.		46,557		7,215,869
	The J. M. Smucker Co.		18,475		2,032,620
	The Kroger Co.		108,633		2,800,559
	The Procter & Gamble Co.		108,633		13,511,773
	Tyson Foods Inc.		73,900		6,365,746
	Walgreens Boots Alliance Inc.		144,105		7,970,448
	Walmart Inc.		110,111		13,067,973

					190,897,379

	Energy 3.0%
	Cabot Oil & Gas Corp., A		32,516		571,306
	Cimarex Energy Co.		12,563		602,270
	ConocoPhillips		82,768		4,716,121
	Exxon Mobil Corp.		158,146		11,166,689
	HollyFrontier Corp.		12,563		673,879
	Occidental Petroleum Corp.		56,164		2,497,613
	Phillips 66		74,639		7,643,034
	Valero Energy Corp.		101,243		8,629,953

					36,500,865

	Financials 2.8%
	American National Insurance Co.		2,217		274,309



20	Semiannual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin LibertyQ U.S. Equity ETF(continued)



		Shares			Value
	Common Stocks (continued)
	Financials (continued)
	Assured Guaranty Ltd.		14,041		$	624,263
	Erie Indemnity Co., A		5,912			1,097,563
	Evercore Inc.		6,651			532,745
	Everest Re Group Ltd.		6,651			1,769,765
	FactSet Research Systems Inc.		9,607			2,334,213
	Invesco Ltd.		49,513			838,750
	Lazard Ltd., A		32,516			1,138,060
	MarketAxess Holdings Inc.		9,607			3,146,292
	Mercury General Corp.		7,390			412,953
	Moody’s Corp.		13,302			2,724,649
	Morningstar Inc.		5,173			755,982
	MSCI Inc.		19,953			4,344,766
	Navient Corp.		28,082			359,450
	People’s United Financial Inc.		87,941			1,374,957
	RenaissanceRe Holdings Ltd.		2,959			572,419
	Santander Consumer USA Holdings Inc.		27,343			697,520
	SEI Investments Co.		24,387			1,445,052
	The Progressive Corp.		123,413			9,533,654

						33,977,362

	Health Care 9.9%
	AbbVie Inc.		145,583			11,023,545
	Amgen Inc.		67,249			13,013,354
a	Biogen Inc.		40,645			9,462,969
	Bristol-Myers Squibb Co.		246,087			12,479,072
a	Celgene Corp.		51,730			5,136,789
	Cerner Corp.		64,293			4,382,854
	Chemed Corp.		2,956			1,234,337
a	Exelixis Inc.		59,859			1,058,607
	Gilead Sciences Inc.		179,577			11,381,590
	HCA Holdings Inc.		42,862			5,161,442
	Johnson & Johnson		84,985			10,995,359
	Merck & Co. Inc.		141,149			11,881,923
a	Mettler-Toledo International Inc.		6,651			4,684,964
	Pfizer Inc.		268,996			9,665,026
	ResMed Inc.		36,211			4,892,468
	Universal Health Services Inc., B		9,607			1,429,041
a	Varian Medical Systems Inc.		23,648			2,816,240

						120,699,580

	Industrials 12.7%
	3M Co.		70,205			11,541,702
	Alaska Air Group Inc.		33,994			2,206,551
	Allison Transmission Holdings Inc.		15,519	��		730,169
	C.H. Robinson Worldwide Inc.		40,645			3,445,883
	Cintas Corp.		21,431			5,745,651
a	Copart Inc.		51,730			4,155,471
	Cummins Inc.		39,906			6,491,509
	Delta Air Lines Inc.		149,278			8,598,413
	Emerson Electric Co.		158,146			10,573,642
	Expeditors International of Washington Inc.		45,818			3,403,819
	Fastenal Co.		167,753			5,480,491
	Graco Inc.		42,123			1,939,343
	GrafTech International Ltd.		4,434			56,755
	Honeywell International Inc.		53,208			9,002,794
	Huntington Ingalls Industries Inc.		10,346			2,191,179
	Illinois Tool Works Inc.		24,387			3,816,322
	J.B. Hunt Transport Services Inc.		24,387			2,698,422



franklintempleton.com	Semiannual Report	21

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin LibertyQ U.S. Equity ETF(continued)



		Shares		Value
	Common Stocks (continued)
	Industrials (continued)
	Landstar System Inc.		9,607	$	1,081,556
	Lennox International Inc.		2,956		718,219
	Lockheed Martin Corp.		33,255		12,971,445
	MSC Industrial Direct Co. Inc., A		10,346		750,395
	PACCAR Inc.		27,343		1,914,283
	Raytheon Co.		62,076		12,178,690
	Robert Half International Inc.		37,689		2,097,770
	Rockwell Automation Inc.		33,255		5,480,424
	Rollins Inc.		42,862		1,460,308
	Schneider National Inc., B		8,868		192,613
	Snap-on Inc.		7,390		1,156,831
	Southwest Airlines Co.		130,803		7,064,670
	Toro Co.		31,777		2,329,254
	Union Pacific Corp.		67,249		10,892,993
	United Parcel Service Inc., B		52,469		6,286,836
	W.W. Grainger Inc.		14,041		4,172,283
a	WABCO Holdings Inc.		5,912		790,730
	Watsco Inc.		6,651		1,125,216

					154,742,632

	Information Technology 18.9%
	Accenture PLC, A		62,815		12,082,465
	Amdocs Ltd.		39,167		2,589,330
	Apple Inc.		64,293		14,399,703
	Applied Materials Inc.		240,914		12,021,609
a	Aspen Technology Inc.		8,868		1,091,473
	Automatic Data Processing Inc.		69,466		11,213,202
	Booz Allen Hamilton Holding Corp.		11,085		787,257
	Broadridge Financial Solutions Inc.		33,994		4,229,873
a	Cadence Design Systems Inc.		22,909		1,513,827
	Cisco Systems Inc.		215,049		10,625,571
	Citrix Systems Inc.		10,346		998,596
	Cognizant Technology Solutions Corp., A		91,636		5,522,444
a	F5 Networks Inc.		18,475		2,594,260
	HP Inc.		461,136		8,724,693
	Intel Corp.		254,216		13,099,750
	International Business Machines Corp.		87,941		12,788,380
	Intuit Inc.		45,818		12,184,839
	Jack Henry & Associates Inc.		21,431		3,128,283
	KLA Corp.		38,428		6,127,345
	Lam Research Corp.		33,994		7,856,353
a	Manhattan Associates Inc.		5,912		476,921
	Mastercard Inc., A		44,340		12,041,414
	Maxim Integrated Products Inc.		70,944		4,108,367
a	Micron Technology Inc.		235,002		10,069,836
	Microsoft Corp.		90,158		12,534,667
	Motorola Solutions Inc.		39,167		6,674,448
	NetApp Inc.		58,381		3,065,586
	Paychex Inc.		98,287		8,135,215
	Skyworks Solutions Inc.		53,947		4,275,300
	Texas Instruments Inc.		107,155		13,848,712
	Ubiquiti Inc.		2,956		349,577
a	VeriSign Inc.		27,343		5,157,710
	Xilinx Inc.		69,466		6,661,789

					230,978,795



22	Semiannual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin LibertyQ U.S. Equity ETF(continued)



	Shares		Value
Common Stocks (continued)
Materials 1.9%
Air Products and Chemicals Inc.		16,997	$	3,770,954
Celanese Corp., A		9,607		1,174,840
Domtar Corp.		4,434		158,782
Eastman Chemical Co.		22,909		1,691,371
Huntsman Corp.		26,604		618,809
LyondellBasell Industries NV, A		100,504		8,992,093
NewMarket Corp.		2,217		1,046,624
Nucor Corp.		24,387		1,241,542
Packaging Corp. of America		17,736		1,881,790
Sonoco Products Co.		26,604		1,548,619
Steel Dynamics Inc.		29,560		880,888
Valvoline Inc.		14,041		309,323

				23,315,635

Real Estate 4.7%
American Tower Corp.		34,733		7,680,508
EPR Properties		19,214		1,476,788
Gaming and Leisure Properties Inc.		46,557		1,780,340
Kimco Realty Corp.		87,941		1,836,208
National Retail Properties Inc.		46,557		2,625,815
OMEGA Healthcare Investors Inc.		57,642		2,408,859
Public Storage		47,296		11,600,290
Realty Income Corp.		83,507		6,403,317
Simon Property Group Inc.		62,076		9,662,129
Spirit Realty Capital Inc.		26,604		1,273,267
STORE Capital Corp.		48,774		1,824,635
Ventas Inc.		43,601		3,184,181
VEREIT Inc.		268,996		2,630,781
WP Carey Inc.		31,777		2,844,042

				57,231,160

Utilities 7.6%
Alliant Energy Corp.		54,686		2,949,216
Ameren Corp.		31,777		2,543,749
Atmos Energy Corp.		27,343		3,114,094
Consolidated Edison Inc.		78,334		7,400,213
Dominion Energy Inc.		59,120		4,791,085
DTE Energy Co.		48,774		6,484,991
Evergy Inc.		31,777		2,115,077
Eversource Energy		66,510		5,684,610
Exelon Corp.		232,785		11,245,843
Hawaiian Electric Industries Inc.		26,604		1,213,409
NextEra Energy Inc.		56,164		13,085,650
OGE Energy Corp.		46,557		2,112,757
Pinnacle West Capital Corp.		30,299		2,941,124
PPL Corp.		96,809		3,048,515
Public Service Enterprise Group Inc.		143,366		8,900,161
The Southern Co.		133,759		8,262,293
UGI Corp.		20,692		1,040,187
WEC Energy Group Inc.		62,076		5,903,428

				92,836,402

Total Investments before Short Term Investments (Cost $1,145,588,555)				1,216,706,889



franklintempleton.com	Semiannual Report	23

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin LibertyQ U.S. Equity ETF(continued)



		Shares		Value
	Short Term Investments (Cost $1,434,325) 0.1%
	Investments from Cash Collateral Received for Loaned Securities 0.1%
	Money Market Funds 0.1%
c,d	Institutional Fiduciary Trust Portfolio, 1.71%		1,434,325	$	1,434,325

	Total Investments (Cost $1,147,022,880) 99.9%				1,218,141,214
	Other Assets, less Liabilities 0.1%				958,637

	Net Assets 100.0%			$	1,219,099,851

^aNon-income producing.

^bA portion or all of the security is on loan at September 30, 2019 Note 1(c).

^cSee Note 3(c) regarding investments in affiliated management investment companies.

^dThe rate shown is the annualized seven-day effective yield at period end.

At September 30, 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

S&P 500 E-Mini

Long

1,638,175

12/20/19

(16,683

)

*As of period end.



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

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin LibertyQ U.S. Mid Cap Equity ETF


	Six Months Ended September 30, 2019 (unaudited)			Year Ended March 31,
	Six Months Ended September 30, 2019 (unaudited)			2019			2018^a

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

Net asset value, beginning of period	$	30.32		$	27.70		$	25.51


Income from investment operations^b:

Net investment income^c		0.26			0.47			0.38

Net realized and unrealized gains (losses)		1.08			2.53			2.18


Total from investment operations		1.34			3.00			2.56


Less distributions from net investment income		(0.21	)		(0.38	)		(0.37	)


Net asset value, end of period	$	31.45		$	30.32		$	27.70


Total return^d		4.43%			10.92%			10.09%

Ratios to average net assets^e

Expenses before waiver and payments by affiliates		0.30%			0.30%			0.99%	^f

Expenses net of waiver and payments by affiliates		0.30%			0.30%			0.30%	^f

Net investment income		1.65%			1.65%			1.58%

Supplemental data

Net assets, end of period (000’s)		$14,151			$10,612			$2,770

Portfolio turnover rate^g		12.25%			23.49%			36.21%

Portfolio turnover rate excluding portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely or in part for cash^g,h		12.25%			—%			—%

^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.

^hEffective September 30, 2019.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Semiannual Report	25

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, September 30, 2019 (unaudited)

Franklin LibertyQ U.S. Mid Cap Equity ETF



		Shares		Value

	Common Stocks 99.8%
	Communication Services 3.2%
a	AMC Networks Inc., A		387	$	19,025
	CBS Corp., B		2,457		99,189
	Cinemark Holdings Inc.		828		31,994
	John Wiley & Sons Inc., A		414		18,191
b	Match Group Inc.		468		33,434
	Omnicom Group Inc.		1,575		123,323
	The Interpublic Group of Cos. Inc.		3,474		74,899
	Viacom Inc., B		2,304		55,365

					455,420

	Consumer Discretionary 20.5%
a	AutoNation Inc.		207		10,495
a	AutoZone Inc.		130		141,001
	Best Buy Co. Inc.		2,124		146,535
	BorgWarner Inc.		1,539		56,450
a	Burlington Stores Inc.		621		124,088
a	Capri Holdings Ltd.		1,314		43,572
	Carter’s Inc.		405		36,940
	Dick’s Sporting Goods Inc.		711		29,016
	Dollar General Corp.		1,044		165,933
	Expedia Group Inc.		477		64,113
a	Five Below Inc.		198		24,968
	Foot Locker Inc.		1,134		48,943
a	frontdoor Inc.		558		27,102
	Garmin Ltd.		1,008		85,367
	Gentex Corp.		891		24,534
	Genuine Parts Co.		1,242		123,691
	H&R Block Inc.		1,827		43,154
	Hanesbrands Inc.		2,952		45,225
	Hasbro Inc.		981		116,435
a	Hilton Grand Vacations Inc.		666		21,312
	Kohl’s Corp.		1,647		81,790
	L Brands Inc.		2,151		42,138
a	Lululemon Athletica Inc.		756		145,553
	Macy’s Inc.		3,240		50,350
	Nordstrom Inc.		1,206		40,606
a	NVR Inc.		25		92,934
a	O’Reilly Automotive Inc.		360		143,463
a	Ollie’s Bargain Outlet Holdings Inc.		189		11,083
	Penske Automotive Group Inc.		270		12,766
	Pool Corp.		441		88,950
	Ralph Lauren Corp.		432		41,243
	Six Flags Entertainment Corp.		621		31,540
a	Skechers USA Inc., A		1,035		38,657
	Tapestry Inc.		2,583		67,287
a	Tempur Sealy International Inc.		324		25,013
	The Gap Inc.		2,358		40,935
	The Wendy’s Co., A		657		13,127
	Tiffany & Co.		927		85,868
	Tractor Supply Co.		1,323		119,652
a	Ulta Beauty Inc.		396		99,257
a	Urban Outfitters Inc.		621		17,444
	Williams-Sonoma Inc.		801		54,452
	Wyndham Destinations Inc.		936		43,075
	Yum China Holdings Inc.		3,042		138,198

					2,904,255



26	Semiannual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin LibertyQ U.S. Mid Cap Equity ETF(continued)



		Shares		Value

	Common Stocks (continued)
	Consumer Staples 8.5%
	Brown-Forman Corp., A		414	$	24,736
	Brown-Forman Corp., B		1,782		111,874
	Campbell Soup Co.		1,404		65,876
	Church & Dwight Co. Inc.		1,791		134,755
	Clorox Co.		891		135,316
	Coty Inc., A		2,367		24,877
	Flowers Foods Inc.		2,025		46,838
a	Herbalife Ltd.		909		34,415
	Kellogg Co.		2,052		132,046
	McCormick & Co. Inc.		855		133,636
	Nu Skin Enterprises Inc., A		513		21,818
a	Sprouts Farmers Market Inc.		1,143		22,106
	The Hershey Co.		1,008		156,230
	The Kroger Co.		5,841		150,581

					1,195,104

	Energy 0.2%
a	Chesapeake Energy Corp.		4,608		6,497
	PBF Energy Inc.		819		22,269

					28,766

	Financials 13.0%
	Ally Financial Inc.		2,745		91,024
	American National Insurance Co.		72		8,909
a	Arch Capital Group Ltd.		3,150		132,237
	Arthur J. Gallagher & Co.		918		82,225
a	Brighthouse Financial Inc.		774		31,324
	Brown & Brown Inc.		1,053		37,971
	Cincinnati Financial Corp.		1,224		142,804
	CNA Financial Corp.		252		12,411
a	Credit Acceptance Corp.		99		45,670
	Discover Financial Services		1,782		144,502
	Evercore Inc.		252		20,185
	Everest Re Group Ltd.		342		91,003
	FactSet Research Systems Inc.		306		74,349
	First American Financial Corp.		846		49,922
	First Republic Bank		612		59,180
	Globe Life Inc.		774		74,118
	Janus Henderson Group PLC		594		13,341
	Lazard Ltd., A		891		31,185
	Legg Mason Inc.		720		27,497
	MarketAxess Holdings Inc.		279		91,372
	Mercury General Corp.		225		12,573
	MSCI Inc.		306		66,632
	Nasdaq Inc.		1,017		101,039
	Navient Corp.		1,611		20,621
	Prosperity Bancshares Inc.		531		37,505
	Santander Consumer USA Holdings Inc.		1,008		25,714
	SEI Investments Co.		1,341		79,461
	Synchrony Financial		2,583		88,054
	Umpqua Holdings Corp.		873		14,370
	Unum Group		1,836		54,566
	W.R. Berkley Corp.		1,116		80,609

					1,842,373

	Health Care 7.6%
a	Acadia Healthcare Co. Inc.		648		20,140
a	Align Technology Inc.		468		84,670



franklintempleton.com	Semiannual Report	27

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin LibertyQ U.S. Mid Cap Equity ETF(continued)



		Shares		Value

	Common Stocks (continued)
	Health Care (continued)
	Cerner Corp.		1,899	$	129,455
	Encompass Health Corp.		792		50,118
a	Exelixis Inc.		1,044		18,463
a	Henry Schein Inc.		1,242		78,867
a	IDEXX Laboratories Inc.		531		144,395
a	Masimo Corp.		324		48,208
a	MEDNAX Inc.		792		17,915
a	Mettler-Toledo International Inc.		180		126,792
a	Molina Healthcare Inc.		351		38,512
	Universal Health Services Inc., B		756		112,455
a	Varian Medical Systems Inc.		666		79,314
a	Waters Corp.		585		130,589

					1,079,893

	Industrials 17.7%
	Allegion PLC		783		81,158
	Allison Transmission Holdings Inc.		846		39,804
	American Airlines Group Inc.		3,078		83,014
	BWX Technologies Inc.		684		39,132
	C.H. Robinson Worldwide Inc.		1,179		99,956
	Cintas Corp.		603		161,664
	Copa Holdings SA		234		23,107
	Cummins Inc.		882		143,475
	Donaldson Co. Inc.		1,017		52,965
	Expeditors International of Washington Inc.		1,404		104,303
	Fastenal Co.		4,356		142,311
	Graco Inc.		1,539		70,856
	GrafTech International Ltd.		288		3,686
	Hubbell Inc., B		405		53,217
a	IAA Inc.		909		37,933
	IDEX Corp.		279		45,723
	Ingersoll-Rand PLC		846		104,236
	KAR Auction Services Inc.		909		22,316
	Landstar System Inc.		261		29,383
	Lennox International Inc.		279		67,789
	Lincoln Electric Holdings Inc.		216		18,740
	ManpowerGroup Inc.		531		44,731
	MSC Industrial Direct Co. Inc., A		387		28,069
	Nordson Corp.		216		31,592
	Old Dominion Freight Line Inc.		558		94,843
	Robert Half International Inc.		1,269		70,633
	Rockwell Automation Inc.		891		146,837
	Rollins Inc.		1,449		49,367
	Schneider National Inc., B		405		8,797
	Snap-on Inc.		198		30,995
a	Teledyne Technologies Inc.		126		40,571
	Toro Co.		945		69,268
a	United Airlines Holdings Inc.		1,332		117,762
a	United Rentals Inc.		297		37,018
	W.W. Grainger Inc.		405		120,346
a	WABCO Holdings Inc.		297		39,724
	Watsco Inc.		297		50,246
	Xylem Inc.		1,323		105,337

					2,510,904

	Information Technology 14.3%
a	Aspen Technology Inc.		405		49,847
	Booz Allen Hamilton Holding Corp.		1,431		101,630



28	Semiannual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin LibertyQ U.S. Mid Cap Equity ETF(continued)



		Shares		Value

	Common Stocks (continued)
	Information Technology (continued)
a	Cadence Design Systems Inc.		2,097	$	138,570
	CDW Corp.		1,305		160,828
	Citrix Systems Inc.		486		46,909
a	F5 Networks Inc.		630		88,465
a	Fair Isaac Corp.		198		60,097
	Genpact Ltd.		1,080		41,850
	Jack Henry & Associates Inc.		675		98,530
	Juniper Networks Inc.		2,493		61,702
	KLA Corp.		1,296		206,647
	Lam Research Corp.		765		176,799
a	Manhattan Associates Inc.		621		50,096
	National Instruments Corp.		1,071		44,971
	NetApp Inc.		2,124		111,531
	Paychex Inc.		1,557		128,873
	Pegasystems Inc.		234		15,924
a	Synopsys Inc.		1,143		156,877
	Ubiquiti Inc.		117		13,836
a	VeriSign Inc.		369		69,604
	Western Union Co.		3,357		77,782
	Xilinx Inc.		1,305		125,149

					2,026,517

	Materials 1.5%
	Ardagh Group SA		117		1,834
	Avery Dennison Corp.		675		76,660
	RPM International Inc.		1,017		69,980
	Sonoco Products Co.		351		20,432
	Steel Dynamics Inc.		756		22,529
	The Chemours Co. LLC		1,080		16,135

					207,570

	Real Estate 9.4%
	Alexandria Real Estate Equities Inc.		846		130,318
	Apple Hospitality REIT Inc.		1,764		29,247
	Camden Property Trust		369		40,963
	Coresite Realty Corp.		261		31,803
	EPR Properties		648		49,805
	Equity Lifestyle Properties Inc.		585		78,156
	Essex Property Trust Inc.		450		146,993
	Federal Realty Investment Trust		540		73,516
	Highwoods Properties Inc.		792		35,592
	Hospitality Properties Trust		1,476		38,066
	Host Hotels & Resorts Inc.		5,013		86,675
	Lamar Advertising Co., A		765		62,676
	Liberty Property Trust		540		27,718
	National Retail Properties Inc.		1,530		86,292
	Realty Income Corp.		1,908		146,305
	Retail Properties of America Inc., A		1,386		17,076
	Ventas Inc.		1,539		112,393
	Welltower Inc.		1,467		132,984

					1,326,578

	Utilities 3.9%
	Ameren Corp.		1,458		116,713
	Consolidated Edison Inc.		1,548		146,240
	Entergy Corp.		1,368		160,548



franklintempleton.com	Semiannual Report	29

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin LibertyQ U.S. Mid Cap Equity ETF(continued)



		Shares		Value

	Common Stocks (continued)
	Utilities (continued)
	PPL Corp.		3,888	$	122,433

					545,934

	Total Investments before Short Term Investments (Cost $12,992,971)				14,123,314

	Short Term Investments (Cost $22,200) 0.2%
	Investments from Cash Collateral Received for Loaned Securities 0.2%
	Money Market Funds 0.2%
c,d	Institutional Fiduciary Trust Portfolio, 1.71%		22,200		22,200

	Total Investments (Cost $13,015,171) 100.0%				14,145,514
	Other Assets, less Liabilities 0.0%^†				5,090

	Net Assets 100.0%			$	14,150,604

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

^aNon-income producing.

^bA portion or all of the security is on loan at September 30, 2019. See Note 1(c).

^cSee Note 3(c) regarding investments in affiliated management investment companies.

^dThe rate shown is the annualized seven-day effective yield at period end.



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

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin LibertyQ U.S. Small Cap Equity ETF


	Six Months Ended September 30, 2019 (unaudited)			Year Ended March 31,
	Six Months Ended September 30, 2019 (unaudited)			2019			2018^a

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

Net asset value, beginning of period	$	27.66		$	26.66		$	25.36


Income from investment operations^b:

Net investment income^c		0.23			0.47			0.33

Net realized and unrealized gains (losses)		0.07			0.87			1.27


Total from investment operations		0.30			1.34			1.60


Less distributions from net investment income		(0.21	)		(0.34	)		(0.30	)


Net asset value, end of period	$	27.75		$	27.66		$	26.66


Total return^d		1.07%			5.05%			6.34%

Ratios to average net assets^e

Expenses before waiver and payments by affiliates		0.35%			0.35%			1.15%	^f

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

Net investment income		1.65%			1.69%			1.40%

Supplemental data

Net assets, end of period (000’s)		$20,816			$17,979			$2,666

Portfolio turnover rate^g		13.28%			22.17%			23.99%

Portfolio turnover rate excluding portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely or in part for cash^g,h		13.28%			—%			—%

^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.

^hEffective September 30, 2019.



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

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, September 30, 2019 (unaudited)

Franklin LibertyQ U.S. Small Cap Equity ETF



		Shares		Value

	Common Stocks 99.9%
	Communication Services 3.2%
	AMC Entertainment Holdings Inc., A		1,740	$	18,618
a	Cardlytics Inc.		330		11,062
a	Care.com Inc.		690		7,210
	Cogent Communications Holdings Inc.		1,620		89,262
a	Cumulus Media Inc., A		255		3,708
	Gannett Co. Inc.		4,830		51,874
a	IDT Corp., B		360		3,791
a	Lee Enterprises Inc.		1,230		2,509
a	Liberty Latin America Ltd.		3,630		62,055
a	Liberty Latin America Ltd., A		1,425		24,325
	Marcus Corp.		795		29,423
	Meredith Corp.		1,530		56,090
	National CineMedia Inc.		2,685		22,017
b	New Media Investment Group Inc.		2,685		23,655
a	Rosetta Stone Inc.		765		13,311
	Scholastic Corp.		1,245		47,011
	Spok Holdings Inc.		660		7,880
	TEGNA Inc.		3,900		60,567
a	The Meet Group Inc.		1,320		4,323
a	Travelzoo		165		1,764
a	TrueCar Inc.		2,955		10,047
a	WideOpenWest Inc.		945		5,821
a	Yelp Inc.		3,060		106,335

					662,658

	Consumer Discretionary 23.5%
	Dine Brands Global Inc.		645		48,930
a	1-800-FLOWERS.Com Inc.		1,140		16,866
	Aaron’s Inc.		1,980		127,235
	Abercrombie & Fitch Co., A		3,375		52,650
	Acushnet Holdings Corp.		1,365		36,036
a	Adtalem Global Education Inc.		1,995		75,990
a	America’s Car-Mart Inc.		270		24,759
	American Eagle Outfitters Inc.		7,275		118,000
a	American Public Education Inc.		555		12,399
a	Asbury Automotive Group Inc.		930		95,167
a,b	Ascena Retail Group Inc.		7,050		1,862
a,b	At Home Group Inc.		1,425		13,709
a	Barnes & Noble Education Inc.		1,125		3,510
	Bassett Furniture Industries Inc.		435		6,656
	Bed Bath & Beyond Inc.		5,070		53,945
	Big Lots Inc.		2,145		52,552
	BJ’s Restaurants Inc.		840		32,626
	Bloomin’ Brands Inc.		4,665		88,308
	Brinker International Inc.		1,245		53,124
b	Buckle Inc.		1,425		29,355
	Caleres Inc.		1,830		42,840
	Callaway Golf Co.		2,865		55,610
b	Camping World Holdings Inc., A		1,335		11,882
a	Career Education Corp.		2,880		45,763
a	Carrols Restaurant Group Inc.		990		8,207	��
	Chico’s FAS Inc.		5,535		22,306
a	Chuy’s Holdings Inc.		825		20,427
	Citi Trends Inc.		555		10,157
	Collectors Universe Inc.		195		5,554
	Cooper Tire & Rubber Co.		1,725		45,057
	Core-Mark Holding Co. Inc.		915		29,385
	Cracker Barrel Old Country Store Inc.		1,005		163,463



32	Semiannual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin LibertyQ U.S. Small Cap Equity ETF(continued)



		Shares		Value

	Common Stocks (continued)
	Consumer Discretionary (continued)
a	Crocs Inc.		2,580	$	71,621
	Dana Inc.		5,160		74,510
	Dave & Buster’s Entertainment Inc.		1,740		67,773
a	Deckers Outdoor Corp.		1,297		191,126
a	Del Taco Restaurants Inc.		645		6,595
a	Denny’s Corp.		2,730		62,148
	Designer Brands Inc., A		2,910		49,819
b	Dillard’s Inc., A		435		28,758
a	Dorman Products Inc.		1,140		90,676
a,b	Duluth Holdings Inc.		450		3,816
	Escalade Inc.		390		4,247
	Ethan Allen Interiors Inc.		1,230		23,493
a	Fiesta Restaurant Group Inc.		1,125		11,723
	Flexsteel Industries Inc.		285		4,224
a	Fossil Group Inc.		900		11,259
a	Genesco Inc.		900		36,018
	Group 1 Automotive Inc.		810		74,771
	Guess? Inc.		2,565		47,529
	Hamilton Beach Brands Holding Co., A		270		4,366
	Haverty Furniture Cos. Inc.		975		19,763
a	Helen of Troy Ltd.		908		143,155
a	Hibbett Sports Inc.		765		17,519
	Hooker Furniture Corp.		390		8,362
	International Speedway Corp., A		765		34,433
a	iRobot Corp.		1,020		62,903
b	J. Jill Inc.		765		1,454
	Jack in the Box Inc.		1,095		99,776
	Johnson Outdoors Inc., A		210		12,298
a	K12 Inc.		1,155		30,492
	Kontoor Brands Inc.		915		32,116
	La-Z-Boy Inc.		1,905		63,989
	LCI Industries		915		84,043
a	LGI Homes Inc.		660		54,991
	Lifetime Brands Inc.		525		4,646
a	Lindblad Expeditions Holdings Inc.		420		7,039
	Lithia Motors Inc.		859		113,714
	M.D.C Holdings Inc.		900		38,790
	Marine Products Corp.		315		4,460
a	MasterCraft Boat Holdings Inc.		330		4,925
a	Modine Manufacturing Co.		975		11,086
a	Monarch Casino & Resort Inc.		345		14,383
	Monro Inc.		1,320		104,293
	Movado Group Inc.		735		18,272
	Office Depot Inc.		22,125		38,829
	Oxford Industries Inc.		825		59,152
	Papa John’s International Inc.		825		43,189
b	PetMed Express Inc.		945		17,029
a	Potbelly Corp.		750		3,270
a	Regis Corp.		1,035		20,928
	Rent-A-Center Inc.		2,130		54,933
	Rocky Brands Inc.		240		7,975
a	RTW RetailWinds Inc.		1,095		1,500
	Ruth’s Hospitality Group Inc.		1,185		24,192
a	Sally Beauty Holdings Inc.		4,725		70,355
b	Shoe Carnival Inc.		495		16,043
a	Shutterstock Inc.		660		23,839
	Signet Jewelers Ltd.		1,800		30,168



franklintempleton.com	Semiannual Report	33

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin LibertyQ U.S. Small Cap Equity ETF(continued)



		Shares		Value

	Common Stocks (continued)
	Consumer Discretionary (continued)
a	Sleep Number Corp.		1,335	$	55,162
	Sonic Automotive Inc.		1,065		33,452
a	Sonos Inc.		1,515		20,316
a	Sportsman’s Warehouse Holdings Inc.		1,860		9,635
a	Stamps.com Inc.		720		53,604
	Standard Motor Products Inc.		855		41,510
	Steven Madden Ltd.		3,585		128,307
a,b	Stitch Fix Inc., A		975		18,769
	Strategic Education Inc.		900		122,292
	Sturm Ruger & Co. Inc.		675		28,188
	Superior Group of Cos. Inc.		405		6,529
b	Tailored Brands Inc.		2,370		10,428
	Tenneco Inc., A		1,950		24,414
	Texas Roadhouse Inc., A		3,315		174,104
	The Cato Corp., A		960		16,906
	The Cheesecake Factory Inc.		2,220		92,530
b	The Children’s Place Inc.		720		55,433
a	The Container Store Group Inc.		720		3,182
a	The Habit Restaurants Inc., A		960		8,390
a	The Lovesac Co.		105		1,960
a,b	The Michaels Cos. Inc.		1,860		18,209
	Tile Shop Holdings Inc.		1,995		6,364
	Tilly’s Inc., A		945		8,921
	Tupperware Brands Corp.		2,160		34,279
	Twin River Worldwide Holdings Inc.		480		10,958
a	Vera Bradley Inc.		885		8,939
	Weyco Group Inc.		270		6,105
	Wingstop Inc.		855		74,624
	Winmark Corp.		90		15,875
	Wolverine World Wide Inc.		3,870		109,366
a	Zumiez Inc.		780		24,707

					4,890,564

	Consumer Staples 6.8%
b	B&G Foods Inc., A		2,340		44,249
a	Boston Beer Inc., A		408		148,545
a	Bridgford Foods Corp.		30		905
a	Central Garden & Pet Co.		375		10,961
a	Central Garden & Pet Co., A		1,350		37,429
	Coca-Cola Consolidated Inc.		180		54,697
a	Freshpet Inc.		585		29,115
	Ingles Markets Inc., A		615		23,899
	Inter Parfums Inc.		690		48,279
	J & J Snack Foods Corp.		660		126,720
	John B. Sanfilippo & Son Inc.		360		34,776
	Lancaster Colony Corp.		735		101,908
a	Lifevantage Corp.		315		4,316
	Medifast Inc.		510		52,851
b	National Beverage Corp.		495		21,958
a	Natural Grocers by Vitamin Cottage Inc.		345		3,447
a	Natures Sunshine Products Inc.		405		3,357
a	Performance Food Group Co.		4,035		185,650
	PriceSmart Inc.		1,020		72,522
	Sanderson Farms Inc.		705		106,688
	SpartanNash Co.		735		8,695
a	The Chefs’ Warehouse Inc.		900		36,288
	Tootsie Roll Industries Inc.		495		18,384
b	Turning Point Brands Inc.		285		6,572



34	Semiannual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin LibertyQ U.S. Small Cap Equity ETF(continued)



		Shares		Value

	Common Stocks (continued)
	Consumer Staples (continued)
	Universal Corp.		990	$	54,262
	Vector Group Ltd.		3,856		45,922
	Village Super Market Inc., A		435		11,506
	WD-40 Co.		615		112,877
	Weis Markets Inc.		450		17,163

					1,423,941

	Energy 0.5%
	Arch Coal Inc.		315		23,373
a	CONSOL Mining Corp.		1,020		15,943
a	Contura Energy Inc.		345		9,646
	CVR Energy Inc.		525		23,116
a	FTS International Inc		960		2,150
	Liberty Oilfield Services Inc., A		1,275		13,808
a	Penn Virginia Corp.		240		6,977
a	SilverBow Resources Inc.		240		2,326

					97,339

	Financials 9.3%
	1st Source Corp.		540		24,694
	AMERISAFE Inc.		360		23,800
	Ames National Corp.		360		10,300
	Apollo Commercial Finance Inc.		4,575		87,703
	Arrow Financial Corp.		263		8,770
	Banco Latinoamericano de Comercio Exterior SA		900		17,946
	Bank7 Corp.		75		1,410
	Bankwell Financial Group Inc.		120		3,300
	Bar Harbor Bankshares.		270		6,731
	Cadence BanCorp.		2,400		42,096
	Capitol Federal Financial Inc.		4,470		61,597
	Capstead Mortgage Corp.		3,255		23,924
	Central Pacific Financial Corp.		510		14,484
	Citizens & Northern Corp.		465		12,220
a,b	Citizens Inc., A		1,815		12,469
	Codorus Valley Bancorp Inc.		165		3,838
	Cohen & Steers Inc.		885		48,613
	Colony Bankcorp Inc.		150		2,302
	Colony Credit Real Estate Inc., A		2,760		39,910
	Crawford & Co., A		375		4,080
	DNB Financial Corp.		60		2,671
	Donegal Group Inc.		405		5,937
	Dynex Capital Inc.		825		12,193
	ESSA Bancorp Inc.		165		2,709
	Essent Group Ltd.		4,215		200,929
a	EZCORP Inc., A		1,635		10,554
	Federated Investors Inc., B		3,750		121,537
	Financial Institutions Inc.		615		18,561
	First Bancorp Inc.		360		9,896
	First Bancorp Puerto Rico		3,945		39,371
	First Citizens Bancorp		495		10,756
	Franklin Financial Services Corp.		75		2,666
a	Genworth Financial Inc., A		14,115		62,106
	Greene County Bancorp Inc.		120		3,288
	Hawthorn Bancshares Inc.		135		3,217
	Heritage Financial Corp.		1,245		33,565
	Horace Mann Educators Corp.		1,770		82,004
	International Bancshares Corp.		1,095		42,289
	Invesco Mortgage Capital		4,275		65,450



franklintempleton.com	Semiannual Report	35

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin LibertyQ U.S. Small Cap Equity ETF(continued)



		Shares			Value

	Common Stocks (continued)
	Financials (continued)
	James River Group Holdings Ltd.		1,020		$	52,265
	LCNB Corp.		435			7,717
	Midwestone Financial Group Inc.		465			14,192
a	Mr Cooper Group Inc.		1,530			16,249
	National Western Life Group Inc., A		105			28,179
	Nelnet Inc., A		720			45,792
	Northfield Bancorp Inc.		1,710			27,463
	Northwest Bancshares Inc.		3,735			61,217
	Norwood Financial Corp.		180			5,690
a	On Deck Capital Inc.		1,905			6,401
a	Palomar Holdings Inc.		105			4,139
	Penns Woods Bancorp Inc.		180			8,325
	Peoples Financial Services Corp.		135			6,114
	Piper Jaffray Cos.		240			18,115
	Premier Financial Bancorp Inc.		510			8,757
	Protective Insurance Corp., B		375			6,544
	Provident Financial Services Inc.		2,520			61,816
	Pzena Investment Management Inc., A		675			6,021
a	Regional Management Corp.		465			13,094
	Silvercrest Asset Management Group Inc., A		360			4,428
	Southern Missouri Bancorp Inc.		210			7,650
	Stewart Information Services Corp.		750			29,092
	Territorial Bancorp Inc.		360			10,289
	Tiptree Inc.,A		420			3,058
	Tompkins Financial Corp.		555			45,027
	TrustCo Bank Corp. NY		3,555			28,973
	United Bankshares Inc.		1,785			67,598
	United Fire Group Inc.		825			38,758
	United Security Bancshares		255			2,683
	Universal Insurance Holdings Inc.		1,155			34,638
	Value Line Inc.		45			1,024
	Waddell & Reed Financial Inc., A		1,515			26,028
a,b	Watford Holdings Ltd.		375			10,106
	West Bancorp		555			12,066
	Westwood Holdings Group Inc.		360			9,961
a	World Acceptance Corp.		240	��		30,602

						1,939,957

	Health Care 10.4%
a	Addus Homecare Corp.		375			29,730
a	Amedisys Inc.		1,350			176,863
a	AMN Healthcare Services Inc.		1,725			99,291
a	AngioDynamics Inc.		1,095			20,170
a	AtriCure Inc.		1,350			33,669
	Atrion Corp.		64			49,867
a	Biospecifics Technologies Corp.		225			12,042
a	Cardiovascular Systems Inc.		1,380			65,577
a	Community Health Systems Inc.		3,210			11,556
	CONMED Corp.		1,020			98,073
a	Corcept Therapeutics Inc.		4,110			58,095
a	CorVel Corp.		330			24,981
a	Cross Country Healthcare Inc.		1,080			11,124
a	Eagle Pharmaceuticals Inc.		315			17,819
a	Enanta Pharmaceuticals Inc.		660			39,653
a	Genomic Health Inc.		1,065			72,228
a	Glaukos Corp.		960			60,010
a	Globus Medical Inc., A		3,225			164,862
a	Haemonetics Corp.		1,605			202,455



36	Semiannual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin LibertyQ U.S. Small Cap Equity ETF(continued)



			Shares		Value

	Common Stocks (continued)
	Health Care (continued)
a	Hanger Inc.			705	$	14,368
a	Inogen Inc.			615		29,465
a	iRadimed Corp.			135		2,838
a	Lantheus Holdings Inc.			720		18,047
	LeMaitre Vascular Inc.			660		22,559
a	LHC Group Inc.			1,095		124,348
	Meridian Bioscience Inc.			1,965		18,648
a	Merit Medical Systems Inc.			2,010		61,225
	Mesa Laboratories Inc.			60		14,266
a	Misonix Inc.			150		3,015
a	Myriad Genetics Inc.			2,415		69,141
	National Healthcare Corp.			525		42,971
	National Research Corp., A			525		30,319
a	NextGen Healthcare Inc.			2,205		34,552
a	NuVasive Inc.			1,785		113,133
a	Orthofix International NV			765		40,560
a	OrthoPediatrics Corp.			165		5,818
	Patterson Cos. Inc.			2,835		50,520
	Phibro Animal Health Corp.			825		17,597
a	Prestige Consumer Healthcare Inc.	��		1,785		61,922
	Simulations Plus Inc.			435		15,094
a	Supernus Pharmaceuticals Inc.			2,085		57,296
a	Tactile Systems Technology Inc.			690		29,201
a	The Joint Corp.			270		5,025
	Utah Medical Products Inc.			135		12,938
a	Vocera Communications Inc.			1,155		28,471

						2,171,402

	Industrials 20.4%
	ABM Industries Inc.			2,715		98,609
	ACCO Brands Corp.			1,860		18,358
a	Advanced Disposal Services Inc.			2,190		71,328
	Aircastle Ltd.			2,055		46,094
	Alamo Group Inc.			345		40,613
	Allegiant Travel Co.			495		74,082
	Allied Motion Technologies Inc.			255		9,004
	Altra Industrial Motion Corp.			1,845		51,097
	Applied Industrial Technologies Inc.			1,770		100,536
a	Axon Enterprise Inc.			1,755		99,649
	BG Staffing Inc.			360		6,880
a	BMC Stock Holdings Inc.			1,275		33,380
	Brady Corp., A			2,100		111,405
a	Builders FirstSource Inc.			2,160		44,442
a	Casella Waste Systems Inc., A			795		34,137
a	Cimpress NV			870		114,701
	CompX International Inc.			45		645
a	Covenant Transportation Group Inc., A			480		7,891
	CSW Industrials Inc.			270		18,638
	Deluxe Corp.			2,100		103,236
	Douglas Dynamics Inc.			765		34,096
	Ennis Inc.			1,020		20,614
	EnPro Industries Inc.			720		49,428
	Exponent Inc.			2,295		160,420
	Forrester Research Inc.			480		15,427
	Forward Air Corp.			1,290		82,199
a	Foundation Building Materials Inc.			555		8,597
a	Franklin Covey Co.			375		13,125
a	FTI Consulting Inc.			735		77,903



franklintempleton.com	Semiannual Report	37

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin LibertyQ U.S. Small Cap Equity ETF(continued)



		Shares		Value

	Common Stocks (continued)
	Industrials(continued)
a	Generac Holdings Inc.		1,185	$	92,833
	H&E Equipment Services Inc.		585		16,883
	Hawaiian Holdings Inc.		1,800		47,268
	Healthcare Services Group Inc.		2,595		63,033
	Heartland Express Inc.		1,380		29,684
	Heidrick & Struggles International Inc.		840		22,932
a	Heritage-Crystal Clean Inc.		690		18,285
	Herman Miller Inc.		2,445		112,690
	Hillenbrand Inc.		2,430		75,038
	HNI Corp.		1,860		66,030
	Hurco Cos. Inc.		120		3,860
	Hyster-Yale Materials Handling Inc.		360		19,703
	ICF International Inc.		795		67,154
	Insperity Inc.		1,665		164,202
	Interface Inc.		2,040		29,458
	John Bean Technologies Corp.		585		58,167
	Kadant Inc.		450		39,505
	Kaman Corp., A		1,035		61,541
	Kelly Services Inc., A		1,320		31,970
	Kforce Inc.		1,125		42,564
	Kimball International Inc., B		1,440		27,792
	Knoll Inc.		1,965		49,813
	Korn Ferry		2,175		84,042
a	Lawson Products Inc.		255		9,876
	Lindsay Corp.		390		36,211
	McGrath RentCorp		915		63,675
a	Meritor Inc.		1,545		28,583
	Miller Industries Inc.		390		12,987
	Mobile Mini Inc.		1,905		70,218
	Moog Inc., A		1,230		99,778
	MSA Safety Inc.		1,485		162,028
	National Presto Industries Inc.		180		16,036
	Omega Flex Inc.		135		13,804
a	P.A.M. Transportation Services Inc.		75		4,433
	Preformed Line Products Co.		105		5,732
a	Radiant Logistics Inc.		735		3,800
	Resources Connection Inc.		1,425		24,211
	Rush Enterprises Inc., B		165		6,588
a	SAIA Inc.		1,125		105,412
	Simpson Manufacturing Co. Inc.		1,710		118,623
	Standex International Corp.		450		32,823
	Steelcase Inc., A		3,795		69,828
	Systemax Inc.		405		8,914
	Tennant Co.		660		46,662
a	Transcat Inc.		150		3,842
a	Trex Co. Inc.		2,130		193,681
a	TriNet Group Inc.		795		49,441
	UniFirst Corp.		555		108,292
	Universal Logistics Holdings Inc.		315		7,333
a	US Xpress Enterprises Inc., A		720		3,470
a	Vicor Corp.		525		15,498
	Watts Water Technologies Inc., A		960		89,981
	Werner Enterprises Inc.		1,980		69,894
a	Willis Lease Fin Corp.		60		3,323

					4,255,958

	Information Technology 11.0%
a	A10 Networks Inc.		1,635		11,347



38	Semiannual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin LibertyQ U.S. Small Cap Equity ETF(continued)



		Shares		Value

	Common Stocks (continued)
	Information Technology (continued)
a	ACI Worldwide Inc.		1,935	$	60,614
	ADTRAN Inc.		1,530		17,358
a	Alarm.com Holdings Inc.		1,140		53,170
a	Altair Engineering Inc.		1,110		38,428
	American Software Inc., A		1,095		16,447
	Astro-Med Inc.		150		2,425
a	Avid Technology Inc.		1,155		7,149
	Badger Meter Inc.		1,050		56,385
	Cabot Microelectronics Corp.		960		135,562
a	Casa Systems Inc.		885		6,952
a	CEVA Inc.		780		23,291
a	ChannelAdvisor Corp.		840		7,837
a	Cirrus Logic Inc.		2,250		120,555
a	Coda Octopus Group Inc.		105		862
a	CommVault Systems Inc.		1,590		71,089
	CSG Systems International Inc.		1,440		74,419
	Daktronics Inc.		1,365		10,081
a	eGain Corp.		660		5,283
a	ePlus Inc.		465		35,382
	EVERTEC Inc.		2,235		69,777
	Hackett Group Inc.		1,020		16,789
a	Immersion Corp.		1,200		9,180
a	Information Services Group Inc.		1,080		2,684
a	Insight Enterprises Inc.		1,500		83,535
a	Iteris Inc.		930		5,343
	J2 Global Inc.		1,995		181,186
a	Majesco		180		1,519
	ManTech International Corp., A		960		68,554
	MAXIMUS Inc.		1,155		89,235
a	MicroStrategy Inc.		315		46,737
a	Mitek Systems Inc.		1,335		12,883
a	MobileIron Inc.		1,815		11,879
	Monotype Imaging Holdings Inc.		1,830		36,252
a	Napco Security Technologies Inc.		405		10,336
	NIC Inc.		2,805		57,923
a	Novanta Inc.		1,095		89,483
	NVE Corp.		180		11,943
a	OSI Systems Inc.		300		30,468
	PC Connection Inc.		435		16,921
a	Priority Technology Holdings Inc.		135		651
	Progress Software Corp.		810		30,829
	QAD Inc., A		375		17,317
a	Qualys Inc.		1,350		102,019
a	ScanSource Inc.		945		28,870
a	Semtech Corp.		1,185		57,603
a	Silicon Laboratories Inc.		1,590		177,046
a	SMART Global Holdings Inc.		390		9,937
a	Sonim Technologies Inc.		75		220
a	SPS Commerce Inc.		1,245		58,602
a	Tenable Holdings Inc.		720		16,114
	Tessco Technologies Inc.		135		1,940
	Vishay Intertechnology Inc.		4,470		75,677
a	Vishay Precision Group Inc.		345		11,295
a	Workiva Inc		1,215		53,253
	Xperi Corp.		870		17,992
a	Zix Corp.		2,415		17,485

					2,284,113



franklintempleton.com	Semiannual Report	39

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin LibertyQ U.S. Small Cap Equity ETF(continued)



		Shares		Value

	Common Stocks (continued)
	Materials 1.7%
	Advanced Emissions Solutions Inc.		585	$	8,681
	Greif Inc., A		975		36,943
	Greif Inc., B		225		10,251
	Innophos Holdings Inc.		675		21,910
	Myers Industries Inc.		1,215		21,445
	Quaker Chemical Corp.		345		54,558
	Schweitzer-Mauduit International Inc.		1,170		43,805
	Sensient Technologies Corp.		1,635		112,243
	Valhi Inc.		930		1,767
	Warrior Met Coal Inc.		1,635		31,915

					343,518

	Real Estate 6.0%
	Agree Realty Corp.		1,230		89,974
	American Assets Trust Inc.		900		42,066
	Cedar Realty Trust Inc.		3,045		9,135
	CoreCivic Inc.		3,915		67,651
	DiamondRock Hospitality Co.		3,810		39,052
	First Industrial Realty Trust Inc.		4,110		162,592
	Franklin Street Properties Corp.		4,035		34,136
	Lexington Realty Trust		9,000		92,250
	LTC Properties Inc.		1,425		72,988
	Monmouth Real Estate Investment Corp., A		2,955		42,582
	National Health Investors Inc.		1,530		126,057
	One Liberty Properties Inc.		570		15,692
	Preferred Apartment Communities Inc., A		1,890		27,311
	PS Business Parks Inc.		885		161,026
	QTS Realty Trust Inc., A		1,020		52,438
	RE/MAX Holdings Inc., A		810		26,050
	Realogy Holdings Corp.		2,505		16,733
	RPT Realty		3,240		43,902
	Summit Hotel Properties Inc.		1,905		22,098
b	Tanger Factory Outlet Centers Inc.		1,845		28,561
	Universal Health Realty Income Trust		360		37,008
	Urstadt Biddle Properties, A		1,095		25,952
	Whitestone REIT		1,215		16,718

					1,251,972

	Utilities 7.1%
	American States Water Co.		1,545		138,834
	Artesian Resources Corp., A		270		9,990
	Avista Corp.		2,385		115,529
	Black Hills Corp.		1,995		153,076
	California Water Service Group		1,965		104,008
	Clearway Energy Inc., A		1,335		23,149
	Clearway Energy Inc., C		2,520		45,990
	El Paso Electric Co.		1,530		102,632
	Genie Energy Ltd., B		300		2,238
	Global Water Resources Inc.		375		4,440
	MGE Energy Inc.		1,275		101,834
	New Jersey Resources Corp.		3,015		136,338
	NorthWestern Corp.		1,590		119,330
	PNM Resources Inc.		2,670		139,054
	SJW Group		765		52,242
	Southwest Gas Holdings Inc.		1,980		180,259
b	Spark Energy Inc., A		465		4,906
	Unitil Corp.		555		35,209



40	Semiannual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin LibertyQ U.S. Small Cap Equity ETF(continued)



		Shares		Value

	Common Stocks (continued)
	Utilities (continued)
	York Water Co.		270	$	11,788

					1,480,846

	Total Investments before Short Term Investments (Cost $20,461,561)				20,802,268

	Short Term Investments (Cost $236,610) 1.2%
	Investments from Cash Collateral Received for Loaned Securities 1.2%
	Money Market Funds 1.2%
c,d	Institutional Fiduciary Trust Portfolio, 1.71%		236,610		236,610

	Total Investments (Cost $20,698,171) 101.1%				21,038,878
	Other Assets, less Liabilities (1.1)%				(223,284	)

	Net Assets 100.0%			$	20,815,594

^aNon-income producing.

^bA portion or all of the security is on loan at September 30, 2019. See Note 1(c).

^cSee Note 3(c) regarding investments in affiliated management investment companies.

^dThe rate shown is the annualized seven-day effective yield at period end.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Semiannual Report	41

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Assets and Liabilities

September 30, 2019 (unaudited)



	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	$	1,145,588,555	$	12,992,971	$	20,461,561
Cost – Non-controlled affiliates (Note 3c)		1,434,325		22,200		236,610

Value – Unaffiliated issuers+	$	1,216,706,889	$	14,123,314	$	20,802,268
Value – Non-controlled affiliates (Note 3c)		1,434,325		22,200		236,610
Cash		1,013,030		12,688		—
Receivables:
Capital shares sold		1,649,660		—		—
Dividends		1,446,779		17,700		27,158
Variation margin on futures contracts		8,091		—		—
Deposits with brokers for:
Futures contracts		69,300		—		—

Total assets		1,222,328,074		14,175,902		21,066,036

Liabilities:
Payables:
Investment securities purchased		1,645,261		—		452
Management fees		148,637		3,098		5,865
Funds advanced by custodian		—		—		7,515
Payable upon return of securities loaned		1,434,325		22,200		236,610

Total liabilities		3,228,223		25,298		250,442

Net assets, at value	$	1,219,099,851	$	14,150,604	$	20,815,594

Net assets consist of:
Paid-in capital	$	1,123,600,139	$	12,922,925	$	20,619,947
Total distributable earnings (loss)		95,499,712		1,227,679		195,647

Net assets, at value	$	1,219,099,851	$	14,150,604	$	20,815,594

Shares outstanding		36,950,000		450,000		750,000

Net asset value per share	$	32.99	$	31.45	$	27.75


+Includes securities loaned			1,400,230				21,723				226,451



42	Semiannual 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 period ended September 30, 2019 (unaudited)



	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	$	14,365,007		$	108,156		$	196,071
Interest:
Unaffiliated issuers		—			41			57
Interest from securities loaned:
Unaffiliated issuers (net of fees and rebates)		—			173			—
Non-Controlled affiliates (Note 3c)		86,660			176			2,143

Total investment income		14,451,667			108,546			198,271

Expenses:
Management fees (Note 3a)		1,273,582			16,700			34,749

Total expenses		1,273,582			16,700			34,749
Expenses waived/paid by affiliates (Note 3c)		(893	)		(24	)		(375	)

Net expenses		1,272,689			16,676			34,374

Net investment income		13,178,978			91,870			163,897

Realized and unrealized gains (losses):
Net realized gain (loss) from:
Investments:
Unaffiliated issuers		(6,413,011	)		(157,708	)		(502,725	)
In-kind redemptions		32,545,997			334,228			655,683
Futures contracts		320,997			—			—

Net realized gain (loss)		26,453,983			176,520			152,958

Net change in unrealized appreciation (depreciation) on:
Investments:
Unaffiliated issuers		30,789,773			215,689			(87,238	)
Futures contracts		(122,143	)		—			—

Net change in unrealized appreciation (depreciation)		30,667,630			215,689			(87,238	)

Net realized and unrealized gain (loss)		57,121,613			392,209			65,720

Net increase (decrease) in net assets resulting from operations	$	70,300,591		$	484,079		$	229,617



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

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

	Six Months Ended September 30, 2019 (unaudited)			Year Ended March 31, 2019			Six Months Ended September 30, 2019 (unaudited)			Year Ended March 31, 2019
Increase (decrease) in net assets:
Operations:
Net investment income	$	13,178,978		$	7,322,781		$	91,870		$	121,894
Net realized gain (loss)		26,453,983			9,804,269			176,520			106,914
Net change in unrealized appreciation (depreciation)		30,667,630			31,328,794			215,689			734,943

Net increase (decrease) in net assets resulting from operations		70,300,591			48,455,844			484,079			963,751

Distributions to shareholders		(11,519,158	)		(6,162,655	)		(82,732	)		(106,377	)

Capital share transactions: (Note 2)		152,063,869			857,635,782			3,137,250			6,984,672

Net increase (decrease) in net assets		210,845,302			899,928,971			3,538,597			7,842,046
Net assets:
Beginning of period		1,008,254,549			108,325,578			10,612,007			2,769,961

End of period	$	1,219,099,851		$	1,008,254,549		$	14,150,604		$	10,612,007



44	Semiannual 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 LibertyQ U.S. Small Cap Equity ETF

	Six Months Ended September 30, 2019 (unaudited)			Year Ended March 31, 2019
Increase (decrease) in net assets:
Operations:
Net investment income	$	163,897		$	158,146
Net realized gain (loss)		152,958			(169,234	)
Net change in unrealized appreciation (depreciation)		(87,238	)		302,305

Net increase (decrease) in net assets resulting from operations		229,617			291,217

Distributions to shareholders		(153,888	)		(121,259	)

Capital share transactions: (Note 2)		2,760,728			15,142,986

Net increase (decrease) in net assets		2,836,457			15,312,944
Net assets:
Beginning of period		17,979,137			2,666,193

End of period	$	20,815,594		$	17,979,137



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FRANKLIN TEMPLETON ETF TRUST

Notes to Financial Statements (unaudited)

1. Organization and Significant Accounting Policies

Franklin Templeton ETF Trust (Trust) is registered under the Investment Company Act of 1940 (1940 Act) as an open-end management investment company, consisting of thirty-nine 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

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 in open-end mutual funds are valued at the closing NAV.

Certain derivative financial instruments are centrally cleared or trade in the OTC market. The Funds’ pricing services use various techniques including industry standard option pricing

models and proprietary discounted cash flow models to determine the fair value of those instruments. The Funds’ net benefit or obligation under the derivative contract, as measured by the fair value of the contract, is included in net assets.

b. Derivative Financial Instruments

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 of cash and/or securities.



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NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

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

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.

d. Income Taxes

years (or expected to be taken in future tax years). Open tax years are those that remain subject to examination and are based on the statute of limitations in each jurisdiction in which the Fund invests.

e. Security Transactions, Investment Income, Expenses and Distributions

Security transactions are accounted for on trade date. Realized gains and losses on security transactions are determined on a specific identification basis. Estimated expenses are accrued daily. Dividend income is recorded on the ex-dividend date. 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.

f. Accounting Estimates

g. Guarantees and Indemnifications



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FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

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.

At September 30, 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

	Six Months Ended September 30, 2019						Year Ended March 31, 2019

	Shares			Amount			Shares			Amount
Shares sold		10,200,000		$	324,704,399			31,000,000		$	938,802,146
Shares redeemed		(5,350,000	)		(172,640,530	)		(2,700,000	)		(81,166,364	)

Net increase (decrease)		4,850,000		$	152,063,869			28,300,000		$	857,635,782


	Franklin LibertyQ U.S. Mid Cap Equity ETF

	Six Months Ended September 30, 2019						Year Ended March 31, 2019

	Shares			Amount			Shares			Amount
Shares sold		150,000		$	4,696,992			300,000		$	8,425,958
Shares redeemed		(50,000	)		(1,559,742	)		(50,000	)		(1,441,286	)

Net increase (decrease)		100,000		$	3,137,250			250,000		$	6,984,672


	Franklin LibertyQ U.S. Small Cap Equity ETF

	Six Months Ended September 30, 2019						Year Ended March 31, 2019

	Shares			Amount			Shares			Amount
Shares sold		200,000		$	5,531,473			600,000		$	16,620,824
Shares redeemed		(100,000	)		(2,770,745	)		(50,000	)		(1,477,838	)

Net increase (decrease)		100,000		$	2,760,728			550,000		$	15,142,986



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NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

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

The Funds pay a unified management fee to Advisers whereby Advisers 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’ Rule 12b-1 plan (if any), brokerage expenses (including any costs incidental to transactions in portfolio securities or instruments), taxes, interest (including borrowing costs and dividend expenses on securities sold short and overdraft charges), litigation expenses (including litigation to which the Trust or a Fund may be a party and indemnification of the Trustees and officers with respect thereto), and other nonroutine or extraordinary expenses. The fees are based on the average daily net assets of each of the Funds as follows:



		Annualized Fee Rate
Franklin LibertyQ U.S. Equity ETF		0.15%
Franklin LibertyQ U.S. Mid Cap Equity ETF		0.30%
Franklin LibertyQ U.S. Small Cap Equity ETF		0.35%

Prior to August 1, 2019, Franklin LibertyQ U.S. Equity ETF paid fees to Franklin Advisers, Inc. of 0.25% per year based on the average daily net assets of the Fund.

b. Administrative Fees

c. Investments in Affiliated Management Investment Companies



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NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

3. Transactions with Affiliates(continued)

c. Investments in Affiliated Management Investment Companies(continued)



	Value at Beginning of Period		Purchases		Sales			Realized Gain (Loss)		Net Change in Unrealized Appreciation (Depreciation)		Value at End of Period		Number of Shares Held at End of Period		Investment Income

Franklin LibertyQ U.S. Equity ETF
Non-Controlled Affiliates																Income from securities loaned

Institutional Fiduciary Trust Money Market Portfolio 1.71%	$	—	$	8,696,235	$	(7,261,910	)	$	—	$	—	$	1,434,325		1,434,325	$	86,660


Franklin LibertyQ U.S. Mid Cap Equity ETF
Non-Controlled Affiliates
Institutional Fiduciary Trust Money Market Portfolio 1.71%	$	27,777	$	238,896	$	(244,473	)	$	—	$	—	$	22,200		22,200	$	176


Franklin LibertyQ U.S. Small Cap Equity ETF
Non-Controlled Affiliates
Institutional Fiduciary Trust Money Market Portfolio 1.71%	$	102,580	$	3,739,408	$	(3,605,378	)	$	—	$	—	$	236,610		236,610	$	2,143

d. Other Affiliated Transactions

At September 30, 2019, the shares of the Funds were owned by the following entities:



Funds	Shares		Percentage of Outstanding Shares^a
Franklin Conservative Allocation Fund		2,670,638		7.2%
Franklin Moderate Allocation Fund		6,596,229		17.9%
Franklin Growth Allocation Fund		5,782,006		15.7%
Franklin LifeSmart™ 2020 – 2055 Retirement Target Funds		2,561,565		6.9%
Franklin 529 Portfolios		11,399,544		30.9%

		29,009,982		78.6%

^aInvestment activities of significant shareholders could have a material impact on the Funds.



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NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

4. Income Taxes

For tax purposes, capital losses may be carried over to offset future capital gains, if any. At September 30, 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:
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

At September 30, 2019, the cost of investments and net unrealized appreciation (depreciation) 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	$	1,147,022,880		$	13,015,171		$	20,698,171

Unrealized appreciation	$	108,886,880		$	1,552,700		$	1,877,310
Unrealized depreciation		(37,768,546	)		(422,357	)		(1,536,603	)

Net unrealized appreciation (depreciation)	$	71,118,334		$	1,130,343		$	340,707

5. Investment Transactions

Purchases and sales of investments (excluding short term securities and in-kind transactions, if any) for the period ended September 30, 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	$	134,879,063	$	1,387,565	$	2,872,492
Sales	$	128,931,125	$	1,376,561	$	2,640,037

In-kind transactions associated with creation and redemptions for the period ended September 30, 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	$	319,536,400	$	4,668,702	$	5,520,224
Value of Securities Delivered	$	169,659,867	$	1,541,416	$	2,757,008



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NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

5. Investment Transactions(continued)

At September 30, 2019, in connection with securities lending transactions, certain or all Funds loaned investments and received cash collateral as follows:



	Franklin LibertyQ U.S. Equity ETF		Franklin LibertyQ U.S. Mid Cap Equity ETF		Franklin LibertyQ U.S. Small Cap Equity ETF
Securities lending transactions^a:
Equity investments^b	$	1,434,325	$	22,200	$	236,610

^aThe agreements can be terminated at any time.

^bThe gross amount of recognized liability for such transactions is included in payable upon return of securities loaned in the Statements of Assets and Liabilities.

6. Other Derivative Information

At September 30, 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 futures contracts

—

Variation margin on futures contracts

(16,683

)^a

^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.

For the period ended September 30, 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

Futures Contracts

320,997

Futures Contracts

(122,143

)

For the period ended September 30, 2019, the average month end notional amount of futures contracts was $1,840,436.

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)



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NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

The input levels are not necessarily an indication of the risk or liquidity associated with financial instruments at that level.

At September 30, 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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FRANKLIN TEMPLETON ETF TRUST

Shareholder Information

Board Approval of Investment Management Agreements

FRANKLIN TEMPLETON ETF TRUST

Franklin LibertyQ U.S. Equity ETF

Franklin LibertyQ U.S. Mid Cap Equity ETF

Franklin LibertyQ U.S. Small Cap Equity ETF

(each a Fund)

In considering the continuation of each Management Agreement, the Board reviewed and considered information provided by the Manager at the Meeting and throughout the year at meetings of the Board and its committees. The Board also reviewed and considered information provided in response to a detailed set of requests for information submitted to the Manager by Independent Trustee counsel on behalf of the Independent Trustees in connection with the annual contract renewal process. In addition, prior to the Meeting, the Independent Trustees held a telephonic contract renewal meeting at which the Independent Trustees conferred amongst themselves and Independent Trustee counsel about contract renewal matters. The Board reviewed and considered all of the factors it deemed relevant in approving the continuance of each Management Agreement, including, but not limited to: (i) the nature, extent and quality of the services provided by the Manager; (ii) the investment performance of each Fund and each Fund’s tracking error against a specified benchmark index as of a recent period; (iii) the costs of the services provided and profits realized by the Manager and its affiliates from the relationship with each Fund; (iv) the extent to which economies of scale are realized as each Fund grows; and (v) whether fee levels reflect these economies of scale for the benefit of Fund investors.

Following consideration of such information, the Board was satisfied with the nature, extent and quality of services provided by the Manager and its affiliates to the Funds and their shareholders.



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SHAREHOLDER INFORMATION

FUND PERFORMANCE. The Board reviewed and considered the performance results of each Fund for theone-year period ended February 28, 2019. The Board considered the performance returns for each Fund in comparison to the performance returns of registered funds deemed comparable to the Fund included in a universe (Performance Universe) selected by Broadridge Financial Solutions, Inc. (Broadridge), an independent provider of investment company data. The Board received a description of the methodology used by Broadridge to select the registered funds included in a Performance Universe. The Board also considered the performance returns for the Franklin LibertyQ U.S. Mid Cap Equity ETF in comparison to the performance returns of a customized peer group (Performance Customized Peer Group) selected by the Manager. The Board also reviewed and considered Fund performance reports provided and discussions that occurred with portfolio managers at Board meetings throughout the year. The Board noted its ongoing discussions with the Manager about the performance of the Funds to date and the importance of performance to asset growth. Specifically, the Board referenced earlier discussions with management on matters related to, among other things, the strategy behind the overall productline-up, the design and construction of the Manager’s proprietary indices, the comparability of peer data, the nature of the Manager’s research, the potential use of innovative data and technology, and investments in marketing and distribution. A summary of each Fund’s performance results is below.

Franklin LibertyQ U.S. Equity ETF and Franklin LibertyQ U.S. Small Cap Equity ETF – The Performance Universe for the Franklin LibertyQ U.S. Equity ETF included the Fund and all retail and institutionalmulti-cap core funds. The Performance Universe for the Franklin LibertyQ U.S. Small Cap Equity ETF included the Fund and all retail and institutionalsmall-cap core funds. The Funds commenced operations on April 26, 2017, and thus have been in operation for less than three years. The Board noted that the Funds’ annualized total returns for theone-year period were above the medians and in the first quintile of their respective Performance Universes. The Board further noted that, in light of the Funds’ use of a “passive” or indexing investment approach, management evaluates the Funds based on their tracking error against a specified benchmark. The Board noted that for theone-year period ended February 28, 2019, each Fund’s tracking error was within the tolerance anticipated for such Fund. The Board concluded that the Funds’ performance was satisfactory.

Franklin LibertyQ U.S. Mid Cap Equity ETF – The Performance Universe for the Fund included the Fund and all retail and institutionalmid-cap growth funds. The Performance

Customized Peer Group for the Fund consisted of the Fund and all retail and institutionalmid-cap core funds. The Fund commenced operations on April 26, 2017, and thus has been in operation for less than three years. The Board noted that the Fund’s annualized total return for theone-year period was above the medians of its Performance Universe and Performance Customized Peer Group. The Board further noted that, in light of the Fund’s use of a “passive” or indexing investment approach, management evaluates the Fund based on its tracking error against a specified benchmark. The Board noted that for theone-year period ended February 28, 2019, the Fund’s tracking error was within the tolerance anticipated for such Fund. The Board concluded that the Fund’s performance was satisfactory.

Franklin LibertyQ U.S. Equity ETF – The Expense Group for the Fund was comprised of pure-index exchange-traded funds, which included the Fund and eight othermulti-cap core funds. The Board noted that the Management Rate for the Fund was below and the actual total expense ratio for the Fund was equal to the medians of its Expense Group. The also Board noted that effective December 1, 2017, the Fund implemented a unified management fee (Unified Fee). The



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SHAREHOLDER INFORMATION

Board further noted that pursuant to the Unified Fee arrangement the Manager reimburses the Fund for all of its acquired fund fees and expenses (if any) and pays all of the ordinary operating expenses of the Fund, except for (i) the Fund’s investment management fee, (ii) payments under the Fund’s Rule12b-1 plan (if any), (iii) brokerage expenses, (iv) taxes, (v) interest (including borrowing costs and dividend expenses on securities sold short and overdraft charges), (vi) litigation expenses (including litigation to which the Trust or the Fund may be a party and indemnification of the Trustees and officers with respect thereto), and (vii) othernon-routine or extraordinary expenses (Unified Fee Arrangement). The Board concluded that the Management Rate charged to the Fund is reasonable.

Franklin LibertyQ U.S. Mid Cap Equity ETF – The Expense Group for the Fund was comprised of pure-index exchange-traded funds, which included the Fund and five othermid-cap growth funds. The Board noted that the Management Rate and actual total expense ratio for the Fund were below the medians of its Expense Group. The Board also noted that effective December 1, 2017, the Fund implemented a Unified Fee. The Board further noted the terms of the Unified Fee Arrangement. The Board concluded that the Management Rate charged to the Fund is reasonable.

Franklin LibertyQ U.S. Small Cap Equity ETF – The Expense Group for the Fund was comprised of pure-index exchange-traded funds, which included the Fund and nine othersmall-cap core funds. The Board noted that the Management Rate for the Fund was slightly above and the actual total expense ratio for the Fund was above the medians of its Expense Group. The Board also noted that effective December 1, 2017, the Fund implemented a Unified Fee and the terms of the Unified Fee Arrangement. The Board also noted the first quintile (best) performance of the Fund for theone-year period ended February 28, 2019. The Board concluded that the Management Rate charged to the Fund is reasonable.

used in calculating profitability in response to organizational and product-related changes, the overall methodology has remained consistent with that used in the Funds’ profitability report presentations from prior years. Additionally, PricewaterhouseCoopers LLP, auditor to FRI and certain Franklin Templeton funds, has been engaged to periodically review and assess the allocation methodologies to be used solely by the Funds’ Board with respect to the profitability analysis.

ECONOMIES OF SCALE. The Board reviewed and considered the extent to which the Manager may realize economies of scale, if any, as each Fund grows larger and whether each Fund’s management fee structure reflects any economies of scale for the benefit of shareholders. The Board considered that each Fund would likely experience benefits from the Unified Fee at the Fund’s projected asset levels because of the Manager’s contractual requirement to bear most of the Fund’s ordinary operating expenses. The Board noted that, under the Unified Fee, it is not anticipated that any of the Funds will generate significant, if any, profit for the Manager and/or its affiliates for some time. The Board also considered 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



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SHAREHOLDER INFORMATION

a whole. The Board also noted that the Funds commenced operations on April 26, 2017 and that, as of December 31, 2018, the net assets of the Franklin LibertyQ U.S. Mid Cap Equity ETF and the Franklin LibertyQ U.S. Small Cap Equity ETF were approximately$8-9 million, while the net assets of the Franklin LibertyQ U.S. Equity ETF were approximately $384 million. The Board recognized that there would not likely be any economies of scale for these Funds until each Fund’s assets grow.

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 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



franklintempleton.com	Semiannual Report	57

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

SEMIANNUAL REPORT

FRANKLIN TEMPLETON

ETF TRUST

September 30, 2019

LOGO

Franklin Liberty Intermediate Municipal Opportunities ETF

Franklin Liberty Municipal Bond ETF

Franklin Templeton



Contents

Semiannual Report

Municipal Bond Market Overview			2
Franklin Liberty Intermediate Municipal Opportunities ETF			3
Franklin Liberty Municipal Bond ETF			8
Financial Highlights and Statements of Investments			13
Financial Statements			24
Notes to Financial Statements			27
Shareholder Information			33

Visitfranklintempleton.com/investor/investments-and-solutions/investment-options/etfs/ for fund updates and documents.


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



franklintempleton.com	Not part of the semiannual report	1

SEMIANNUAL REPORT

Municipal Bond Market Overview

The financial markets experienced volatility during the six months ended September 30, 2019. Continuing trade concerns, uncertainties about the prospects for global economic growth and speculations on major central banks’ future policy decisions led to volatility in domestic fixed income and equity securities. U.S. equities rose during the period, while fixed income assets such as municipal bonds and U.S. Treasuries also rallied as interest rates moved in a generally downward trajectory. Municipal bonds delivered positive returns as favorable supply and demand dynamics, combined with interest-rate declines, continued to buoy the market.

Investment-grade municipal bonds, as measured by the Bloomberg Barclays Municipal Bond Index, posted a +3.74% total return for the period, while U.S. Treasuries, as measured by the Bloomberg Barclays U.S. Treasury Index, posted a +5.48% total return, and investment-grade corporate bonds, as measured by the Bloomberg Barclays U.S. Corporate Bond Index, posted a +7.66% total return.¹ U.S. stocks, as represented by the Standard & Poor’s^® 500 Index, posted a +6.08% total return, outperforming the municipal bond and U.S. Treasury markets, but underperforming the corporate bond market.¹

Municipal bonds with longer maturities generally outperformed bonds with shorter maturities during thesix-month period. High-yield municipal bonds generally outperformed investment-grade municipal bonds, with the Bloomberg Barclays High Yield Municipal Bond Index posting a +5.64% total return, compared with a +3.74% total return for the Bloomberg Barclays Municipal Bond Index.¹

Municipal bond issuance during thesix-month reporting period totaled approximately $197 billion, which represented a 5% increase from the prior-year’ssix-month period.² Calendar-year 2019 municipal bond issuance through September was approximately $275 billion, which represented a 9% increase from the prior-year period.² In our view, demand for municipal bonds remains robust, and investors have continued to add money to municipal bond mutual funds. The Investment Company Institute reported calendaryear-to-date 2019 net inflows of approximately $67 billion to the asset class through September.

The U.S. Federal Reserve (Fed) lowered its target range for the federal funds rate by 0.25% two times in 2019—first in July and again in September. The target range for the federal funds rate was 1.75%–2.00% atperiod-end. In its press release following the September decision, the Fed cited muted inflation and global economic concerns as the primary catalysts for the decision. The Fed noted, however, that the labor market remained strong and domestic economic activity was healthy, and some members believed no additional rate cuts were warranted.

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 solid discipline 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 September 30, 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 fixed principal value; their interest payments and principal are guaranteed.

2. Source: The Bond Buyer, Thomson Reuters.

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



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Franklin Liberty Intermediate Municipal Opportunities ETF

This semiannual report for Franklin Liberty Intermediate Municipal Opportunities ETF covers the period ended September 30, 2019.

Your Fund’s Goal and Main Investments

Performance Overview

For the six months under review, the Fund posted cumulative total returns of +4.01% based on market price and +3.81% based on net asset value (NAV). In comparison, the Bloomberg Barclays Municipal1-15 Year Index posted a +2.99% 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.


Credit Quality Composition*

9/30/19

Ratings	% of Total Investments
AAA		7.88%
AA		32.32%
A		12.45%
BB		26.87%
Not Rated		20.48%

*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.

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 andnon-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 14.



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FRANKLIN LIBERTY INTERMEDIATE MUNICIPAL OPPORTUNITIES ETF


Portfolio Composition

9/30/19

	% of Total Investments*
General Obligation Bonds		25.33%
Hospital & Health Care		21.54%
Tax Supported Debt		14.65%
Utilities		9.20%
Higher Education		8.95%
Other Revenue Bonds		6.10%
Housing		6.09%
Subject to Government Approp.		3.50%
Transportation		3.23%
Corporate Backed		1.41%

*Does not include cash and cash equivalents.

Manager’s Discussion

During thesix-month reporting period, we found value in securities in the10- to15-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 maximizingafter-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. The Fund is overweight inBBB-rated and noninvestment-grade securities relative to the benchmark; this positioning was the primary driver of the Fund’s outperformance versus its benchmark index. The Fund will continue to look for opportunities to add high yielding names with a focus on the seven- to15-year portion 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 September 30, 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	Semiannual Report	franklintempleton.com

FRANKLIN LIBERTY INTERMEDIATE MUNICIPAL OPPORTUNITIES ETF

Performance Summary as of September 30, 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 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 9/30/19¹

Cumulative Total Return²

Average Annual Total Return²

Based on
NAV³

Based on

market price⁴

Based on
NAV³

Based on

market price⁴

6-month

+3.81%

+4.01%

+3.81%

+4.01%

1-Year

+8.26%

+8.34%

+8.26%

+8.34%

Since Inception (8/31/17)

+7.32%

+7.44%

+3.45%

+3.51%



	30-Day Standardized Yield⁶				Taxable Equivalent 30-Day Standardized Yield⁷
Distribution Rate⁵	(with fee waiver)		(without fee waiver)		(with fee waiver)		(without fee waiver)
2.09%		1.83%		0.38%		3.09%		0.64%

See page 6 for Performance Summary footnotes.



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FRANKLIN LIBERTY INTERMEDIATE MUNICIPAL OPPORTUNITIES ETF

PERFORMANCE SUMMARY

Distributions(4/1/19–9/30/19)

Net Investment

Income

$0.375540

Total Annual Operating Expenses⁸



With Fee Waiver	Without Fee Waiver
0.30%		2.15%

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. The Fund may invest in lower-rated bonds which include higher risk of default and loss of principal. 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’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. Distribution rate is based on an annualization of the September dividend and the NAV per share on 9/30/19.

7. Taxable equivalent yield assumes the 2019 maximum federal income tax rate of 37.00% plus 3.80% Medicare tax.



6	Semiannual Report	franklintempleton.com

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 4/1/19		Ending Account Value 9/30/19		Expenses Paid During Period 4/1/19-9/30/19^1,2		Ending Account Value 9/30/19		Expenses Paid During Period 4/1/19-9/30/19^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	1,038.10	$	1.53	$	1,023.50	$	1.52		0.30	%

2. Reflects expenses after fee waivers and expense reimbursements.



franklintempleton.com	Semiannual Report	7

Franklin Liberty Municipal Bond ETF

This semiannual report for Franklin Liberty Municipal Bond ETF covers the period ended September 30, 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, including the federal alternative minimum tax, 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).

Performance Overview

For the six months under review, the Fund posted cumulative total returns of +4.78% based on market price and net asset value (NAV). In comparison, the Bloomberg Barclays Municipal Bond Index posted a +3.74% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 10.

Investment Strategy


Credit Quality Composition*

9/30/19

Ratings	% of Total Investments
AAA		23.21%
AA		62.75%
A		11.48%
Not Rated		2.56%

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 19.



8	Semiannual Report	franklintempleton.com

FRANKLIN LIBERTY MUNICIPAL BOND ETF


Portfolio Composition

9/30/19

	% of Total Investments*
General Obligation Bonds		32.99%
Utilities		24.72%
Tax Supported Debt		11.16%
Higher Education		10.35%
Hospital & Health Care		5.51%
Transportation		4.85%
Housing		4.54%
Other Revenue Bonds		4.36%
Subject to Government Approp.		1.52%

*Does not include cash and cash equivalents.

Manager’s Discussion

During thesix-month reporting period, the Fund maintained its average maturity near 13.5 years, on the longer end of the target five- to15-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 high-quality names at attractive spreads as the Fund continued to grow over thesix-month period. Security selection was a key contributor to the outperformance versus the benchmark, while being overweight in bonds with maturities between 12 and 17 years also contributed positively to relative performance. We will continue to look for opportunities to add high quality names at attractive prices with a focus on the12- to17-year portion 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.

What is the yield curve?

A yield curve is a line that plots the yield to maturity of bonds having equal credit quality against their maturity dates.

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 September 30, 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.



franklintempleton.com	Semiannual Report	9

FRANKLIN LIBERTY MUNICIPAL BOND ETF

Performance Summary as of September 30, 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 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 9/30/19¹

Cumulative Total Return²

Average Annual Total Return²

Based on

NAV³

Based on

market price⁴

Based on

NAV³

Based on

market price⁴

6-month

+4.78%

1-Year

+11.49%

+11.44%

+11.49%

+11.44%

Since Inception (8/31/17)

+9.85%

+9.88%

+4.61%

+4.63%



	30-Day Standardized Yield⁶				Taxable Equivalent 30-Day Standardized Yield⁷
Distribution Rate⁵	(with fee waiver)		(without fee waiver)		(with fee waiver)		(without fee waiver)
1.98%		1.52%		0.84%		2.57%		1.42%

See page 11 for Performance Summary footnotes.



10	Semiannual Report	franklintempleton.com

FRANKLIN LIBERTY MUNICIPAL BOND ETF

PERFORMANCE SUMMARY

Distributions(4/1/19–9/30/19)

Net Investment

Income

$0.300911

Total Annual Operating Expenses⁸



With Fee Waiver	Without Fee Waiver
0.30%		2.05%

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’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. Distribution rate is based on an annualization of the September dividend and the NAV per share on 9/30/19.

7. Taxable equivalent yield assumes the 2019 maximum federal income tax rate of 37.00% plus 3.80% Medicare tax.



franklintempleton.com	Semiannual Report	11

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 4/1/19		Ending Account Value 9/30/19		Expenses Paid During Period 4/1/19-9/30/19^1,2		Ending Account Value 9/30/19		Expenses Paid During Period 4/1/19-9/30/19^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	1,047.80	$	1.54	$	1,023.50	$	1.52		0.30	%

2. Reflects expenses after fee waivers and expense reimbursements.



12	Semiannual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin Liberty Intermediate Municipal Opportunities ETF


	Six Months Ended September 30, 2019 (unaudited)			Year Ended March 31,
	Six Months Ended September 30, 2019 (unaudited)			2019			2018^a

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

Net asset value, beginning of period	$	24.97		$	24.40		$	25.00


Income from investment operations^b:

Net investment income^c		0.30			0.63			0.22

Net realized and unrealized gains (losses)		0.65			0.57			(0.60	)


Total from investment operations		0.95			1.20			(0.38	)


Less distributions from net investment income		(0.38	)		(0.63	)		(0.22	)


Net asset value, end of period	$	25.54		$	24.97		$	24.40


Total return^d		3.81%			4.99%			(1.53)%

Ratios to average net assets^e

Expenses before waiver and payments by affiliates		1.80%			2.15%			1.71%

Expenses net of waiver and payments by affiliates		0.30%			0.30%			0.30%

Net investment income		2.34%			2.57%			1.55%

Supplemental data

Net assets, end of period (000’s)		$8,940			$7,490			$7,319

Portfolio turnover rate^f		1.50%			35.63%			17.49%

Portfolio turnover rate excluding portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely or in part for cash^f,g		1.50%			—%			—%

^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.

^gEffective September 30, 2019.



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FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, September 30, 2019 (unaudited)

Franklin Liberty Intermediate Municipal Opportunities ETF



		Principal Amount		Value
	Municipal Bonds 102.0%
	Alaska 1.9%
	Matanuska-Susitna Borough Lease Revenue, Goose Creek Correctional Center Project, Refunding, 4.00%, 9/01/30		150,000	$	166,101

	Arizona 3.7%
	Arizona IDA Hospital Revenue, Phoenix Children’s Hospital, Refunding, Series A, Daily VRDN and Put, 1.77%, 2/01/48		100,000		100,000
	La Paz County IDA Education Facility Lease Revenue, Chartere School Solutions-Harmony Public Schools Project, Series A, 5.00%, 2/15/28		100,000		115,412
	Phoenix Civic Improvement Corp. Wastewater System Revenue, junior lien, Series A, 5.00%, 7/01/25		100,000		120,107

					335,519

	California 6.5%
	California School Finance Authority Charter School Revenue, Summit Public Schools-Obligated Group, 5.00%, 6/01/27		100,000		121,478
	California Statewide CDA Revenue, California Baptist University, Refunding, Series A, 3.00%, 11/01/22		100,000		101,472
	California Statewide CDA Special Tax Revenue, CFD No. 2015-01, Improvement Area No. 2, University District, 5.00%, 9/01/27		100,000		113,835
	Orange County CFD No. 2017-1 Special Tax, Esencia Village Improvement Area No. 1, Series A, 5.00%, 8/15/28		100,000		123,902
	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		117,743

					578,430

	Colorado 5.0%
a	Colorado State Health Facilities Authority Hospital Revenue, Christian Living Communities, Refunding and Improvement, 4.00%, 1/01/29		100,000		112,930
	Regional Transportation District Sales Tax Revenue, Fastracks Project, Refunding, Series A, 5.00%, 11/01/27		100,000		127,194
	Southglenn Metropolitan District Special Revenue, In the City of Centennial Colorado, Refunding, 5.00%, 12/01/30		100,000		106,487
	Southlands Metropolitan District No. 1 GO, Aurora, Arapahoe County, Refunding, Series A-1, 3.50%, 12/01/27		100,000		105,143

					451,754

	Connecticut 1.1%
	Connecticut State Health and Educational Facilities Authority Revenue, Yale University Issue,Series V-2, Daily VRDN and Put, 1.45%, 7/01/36		100,000		100,000

	Delaware 1.3%
	Kent County Student Housing and Dining Facility Revenue, CHF-Dover LLC-Delaware State University Project, Series A, 5.00%, 7/01/29		100,000		115,937

	Florida 4.4%
	Jacksonville Health Care Facilities Revenue, Brooks Rehabilitation, Genesis Health Inc. Obligated Group, Refunding, 5.00%, 11/01/27		100,000		121,988
	Miami Health Facilities Authority Revenue, Miami Jewish Health Systems Inc. Project, Refunding, 5.00%, 7/01/28		150,000		176,201
	St. Lucie County PCR, Florida Power and Light Co. Project, Refunding, Daily VRDN and Put, 1.79%, 9/01/28		100,000		100,000

					398,189

	Georgia 1.4%
	Main Street Natural Gas Inc. Gas Supply Revenue, Series A, 5.00%, 5/15/29		100,000		124,107

	Illinois 6.4%
	Hillside Tax Increment Revenue, Cook County, Refunding, 5.00%, 1/01/24		100,000		104,004
	Illinois State Finance Authority MFHR, Better Housing Foundation Blue Station Project, Series A-1, 4.25%, 12/01/28		100,000		98,874
	^bBetter Housing Foundation ERNST Portfolio Project, Series A-1, 4.375%, 12/01/28		100,000		35,000



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FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin Liberty Intermediate Municipal Opportunities ETF(continued)



	Principal Amount		Value
Municipal Bonds (continued)
Illinois (continued)
Railsplitter Tobacco Settlement Authority Revenue, 5.00%, 6/01/27		100,000	$	120,518
Southwestern Illinois Development Authority Revenue, Capital Appreciation, Local Government Program, AGMC Insured, zero cpn., 12/01/24		245,000		218,212

				576,608

Kentucky 3.4%
Berea Educational Facilities Revenue, Berea College Project, Series B, Daily VRDN and Put, 1.46%, 6/01/29		100,000		100,000
Louisville/Jefferson County Metro Government Health System Revenue, Norton Healthcare Inc., Series B, Daily VRDN and Put, 1.75%, 10/01/39		100,000		100,000
Louisville/Jefferson County Metro Government Revenue, College, Bellarmine University Project, Refunding and Improvement, Series A, 4.00%, 5/01/29		100,000		104,572

				304,572

Louisiana 1.3%
Louisiana Local Government Environmental Facilities and CDA Revenue, Student Housing, Provident Group – ULM Properties LLC – University of Louisiana at Monroe Project, Series A, 5.00%, 7/01/29		100,000		114,515

Maryland 2.7%
Maryland EDC Revenue, Economic Development, Transportation Facilities Project, Refunding, Series A, 5.00%, 6/01/27		100,000		121,716
Montgomery County GO, Consolidated Public Improvement, Refunding, Series A, 5.00%, 11/01/24		100,000		118,274

				239,990

Massachusetts 1.3%
Massachusetts State Development Finance Agency Revenue, Foxborough Regional Charter, Series B, 5.00%, 7/01/27		100,000		113,864

Michigan 2.3%
Grand Rapids EDC, EDR, Beacon Hill Eastgate Project, Refunding, Series A, 4.00%, 11/01/27		100,000		106,094
University of Michigan Revenue, Regents, General, Series D-1, Daily VRDN and Put, 1.72%, 12/01/24		100,000		100,000

				206,094

Minnesota 5.6%
Eagan GO, Series A, 4.00%, 2/01/26		100,000		115,425
Mille Lacs County GO, Capital Improvement Plan, Series A, 3.00%, 2/01/24		135,000		144,007
Northern Municipal Power Agency Electric System Revenue, Refunding, 5.00%, 1/01/36		100,000		118,754
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		118,842

				497,028

Missouri 2.4%
Missouri State Health and Educational Facilities Authority Educational Facilities Revenue, The Washington University, Series B, Daily VRDN and Put, 1.45%, 2/15/33		100,000		100,000
St. Louis County IDA Senior Living Facilities Revenue, Friendship Village, St. Louis Obligated Group, Refunding, 5.00%, 9/01/27		100,000		119,512

				219,512

Montana 1.3%
Cascade County High School District No. 1 Great Falls GO, School Building, 5.00%, 7/01/25		100,000		119,191

Nevada 3.9%
Carson City Hospital Revenue, Carson Tahoe Regional Healthcare Project, Refunding, Series A, 5.00%, 9/01/28		100,000		121,529
Las Vegas Special ID No. 812 Special Assessment, Local Improvement, Summerlin Village 24, 4.00%, 12/01/22		100,000		104,272
Washoe County School District GO, School Improvement, Series C, 5.00%, 10/01/26		100,000		122,604

				348,405



franklintempleton.com	Semiannual Report	15

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin Liberty Intermediate Municipal Opportunities ETF(continued)



	Principal Amount		Value
Municipal Bonds (continued)
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	$	125,750

New Jersey 1.2%
Pinelands Regional School District GO, Refunding, AGMC Insured, 3.00%, 8/01/27		100,000		107,931

New York 4.8%
MTA Revenue, Transportation, Green Bonds, Climate Bond Certified, Refunding, Series B, 5.00%, 11/15/28		100,000		128,068
New York City Transitional Finance Authority Revenue, Future Tax Secured, Subordinate,Subseries B-5, Daily VRDN and Put, 1.75%, 8/01/42		100,000		100,000
Syracuse IDA Civic Facility Revenue, Syracuse University Project, Series A-1, Daily VRDN and Put, 1.75%, 7/01/37		100,000		100,000
Triborough Bridge and Tunnel Authority Revenue, General, MTA Bridges and Tunnels, Refunding, Subseries B-2, Daily VRDN and Put, 1.74%, 1/01/32		100,000		100,000

				428,068

North Carolina 2.4%
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		114,021
The Charlotte-Mecklenburg Hospital Authority Revenue, Carolinas HealthCare System, Refunding, Series B, Daily VRDN and Put, 1.77%, 1/15/38		100,000		100,000

				214,021

Ohio 2.6%
Franklin County Hospital Facilities Revenue, Nationwide Children’s Hospital Project, Refunding, Series A, 5.00%, 11/01/28		100,000		126,134
Ohio State Air Quality Development Authority Exempt Facilities Revenue, Pratt Paper LLC Project, 3.75%, 1/15/28		100,000		108,520

				234,654

Oregon 2.5%
Oregon State Facilities Authority Revenue, PeaceHealth, Refunding, Series B, Daily VRDN and Put, 1.72%, 8/01/34		100,000		100,000
Portland Community College District GO, Multnomah Washington Yamhill Clackamas and Columbia Counties, Refunding, 5.00%, 6/15/25		100,000		120,326

				220,326

Pennsylvania 7.4%
Allegheny County Higher Education Building Authority University Revenue, Robert Morris University, UPMC Events Center Project, 5.00%, 10/15/26		100,000		113,540
Allentown Neighborhood Improvement Zone Development Authority Tax Revenue, City Center Project, 5.00%, 5/01/28		100,000		118,199
Franklin County IDAR, Menno Haven Inc. Project, Refunding, 5.00%, 12/01/28		100,000		113,307
Pennsylvania State Economic Development Financing Authority Revenue, UPMC, Refunding, Series A, 3.375%, 11/15/33		125,000		131,921
Pennsylvania State GO, First Series, Refunding, 5.00%, 1/01/26		150,000		180,798

				657,765

Tennessee 3.6%
Lawrenceburg GO, Refunding, 2.50%, 6/01/27		100,000		103,309
Metropolitan Government of Nashville and Davidson County GO, Improvement, Refunding, 4.00%, 7/01/29		100,000		117,409
Shelby County Health Educational and Housing Facility Board Revenue, Methodist Le Bonheur Healthcare, Refunding, Series A, AGMC Insured, Daily VRDN and Put, 1.73%, 6/01/42		100,000		100,000

				320,718

Texas 3.9%
Cedar Park GO, Williamson and Travis Counties, Refunding and Improvement, 5.00%, 2/15/24		100,000		115,037
Garland GO, Dallas Collin and Rockwall Counties, Refunding, 5.00%, 2/15/27		100,000		125,016



16	Semiannual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin Liberty Intermediate Municipal Opportunities ETF(continued)



		Principal Amount		Value
	Municipal Bonds (continued)
	Texas (continued)
	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	$	106,289

					346,342

	Utah 2.4%
	Provo GO, Refunding, 4.00%, 1/01/23		100,000		108,811
	Utah State Building Ownership Authority Lease Revenue, State Facilities Master Lease Program, 2.50%, 5/15/27		100,000		104,133

					212,944

	Vermont 1.3%
	Vermont State Public Power Supply Authority Revenue, Swanton Peaking Facility Project, Refunding, Series A, 5.00%, 7/01/28		100,000		119,959

	Virginia 2.4%
	Peninsula Town Center CDA Special Obligation Revenue, Refunding, 4.50%, 9/01/28		100,000		110,803

	Virginia College Building Authority Educational Facilities Revenue, University of Richmond Project, Daily VRDN and Put, 1.73%, 11/01/36		100,000		100,000

					210,803

	Washington 6.7%
	Seattle Drainage and Wastewater System Revenue, Improvement and Refunding, 4.00%, 7/01/28		100,000		118,500
	Skagit County Public Hospital District No. 1 Revenue, Improvement, Skagit Regional Health, Refunding, 5.00%, 12/01/29		100,000		117,197
	Spokane County School District No. 356 Central Valley GO, 5.00%, 12/01/26		100,000		124,738
	University of Washington Revenue, General, Refunding, Series A, 5.00%, 12/01/26		100,000		125,126
a	Washington State Housing Finance Commission Revenue, Nonprofit Housing, Presbyterian Retirement Communities Northwest Project, Refunding, Series A, 5.00%, 1/01/34		100,000		111,959

					597,520

	Wisconsin 3.5%
	Brookfield GO, Waukesha County, Refunding, 3.00%, 12/01/25		115,000		124,778
	PFA Retirement Facilities Revenue, Whitestone Retirement Facilities, first mortgage, Refunding, 4.00%, 3/01/27		80,000		85,776
	Wisconsin Health and Educational Facilities Authority Revenue, St. Johns Communities Inc. Project, Series A, 4.00%, 9/15/27		100,000		104,880

					315,434

	Total Investments (Cost $8,811,905) 102.0%				9,122,051
	Other Assets, less Liabilities (2.0)%				(181,864	)

	Net Assets 100.0%			$	8,940,187

See Abbreviations on page 32.

^aSecurity purchased on a when-issued basis. See Note 1(b)

^bSee Note 6 regarding defaulted securities.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Semiannual Report	17

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin Liberty Municipal Bond ETF


	Six Months Ended September 30, 2019 (unaudited)			Year Ended March 31,
	Six Months Ended September 30, 2019 (unaudited)			2019			2018^a

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

Net asset value, beginning of period	$	25.20		$	24.34		$	25.00


Income from investment operations^b:

Net investment income^c		0.20			0.67			0.30

Net realized and unrealized gains (losses)		1.00			0.85			(0.66	)


Total from investment operations		1.20			1.52			(0.36	)


Less distributions from net investment income		(0.30	)		(0.66	)		(0.30	)


Net asset value, end of period	$	26.10		$	25.20		$	24.34


Total return^d		4.78%			6.38%			(1.45)%

Ratios to average net assets^e

Expenses before waiver and payments by affiliates		1.21%			2.05%			1.71%

Expenses net of waiver and payments by affiliates		0.30%			0.30%			0.30%

Net investment income		1.53%			2.74%			2.11%

Supplemental data

Net assets, end of period (000’s)		$27,403			$8,820			$7,302

Portfolio turnover rate^f		8.45%			21.21%			5.00%

Portfolio turnover rate excluding portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely or in part for cash^f,g		8.45%			—%			—%

^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.

^gEffective September 30, 2019.



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

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, September 30, 2019 (unaudited)

Franklin Liberty Municipal Bond ETF



	Principal Amount		Value
Municipal Bonds 99.5%
Alabama 1.2%
Huntsville GO, wts., Series A, 5.00%, 5/01/37		250,000	$	317,743

Alaska 0.6%
Matanuska-Susitna Borough Lease Revenue, Goose Creek Correctional Center Project, Refunding, 4.00%, 9/01/30		150,000		166,101

Arizona 1.7%
Phoenix Civic Improvement Corp. Wastewater System Revenue, junior lien, Series A, 5.00%, 7/01/25		100,000		120,107
Salt River Project Agricultural Improvement and Power District Electric System Revenue, Salt River Project, Refunding, Series A, 5.00%, 1/01/39		170,000		210,276
Scottsdale Municipal Property Corp. Excise Tax Revenue, Refunding, 5.00%, 7/01/34		100,000		137,014

				467,397

California 5.3%
Burbank RDA Successor Agency Tax Allocation Revenue, Los Angeles County, Refunding, 3.00%, 12/01/32		100,000		105,682
California State GO, Various Purpose, 3.00%, 10/01/37		700,000		734,230
Clovis USD, GO, Capital Appreciation, Refunding, zero cpn., 8/01/35		200,000		120,422
Konocti USD, GO, Capital Appreciation, Election of 2004, Series C, AGMC Insured, zero cpn., 8/01/28		150,000		121,675
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		118,141
South Tahoe Joint Powers Financing Authority Lease Revenue, Redevelopment Project Area No. 1, Series A, BAM Insured, 5.00%, 10/01/30		100,000		122,835
University of California Revenue, Limited Project, Series M, 5.00%, 5/15/34		100,000		124,828

				1,447,813

Colorado 2.8%
Adams and Weld Counties School District No. 27J Brighton GO, The City and County of Broomfield, 5.00%, 12/01/42		100,000		122,121
Cherry Creek School District No. 5 GO, Arapahoe County, Refunding, Series C, 5.00%, 12/15/35		100,000		124,855
Colorado Springs Utilities System Revenue, Refunding, Series A, 4.00%, 11/15/33		100,000		114,488
Colorado State Board of Governors University Enterprise System Revenue, Refunding, Series A, 4.00%, 3/01/35		100,000		114,206
Colorado Water Resources and Power Development Authority State Revolving Fund Revenue, Series A, 4.00%, 9/01/31		150,000		180,733
Greeley Water Revenue, Water Enterprise, 4.00%, 8/01/31		100,000		117,744

				774,147

Connecticut 1.3%
Connecticut State Health and Educational Facilities Authority Revenue, Yale New Haven Health Issue, Series B, 1.80%, 7/01/49		225,000		227,808
Connecticut State Special Tax Obligation Revenue, Series A, 5.00%, 8/01/31		100,000		117,841

				345,649

Delaware 1.2%
University of Delaware Revenue, 5.00%, 11/01/37		250,000		317,883

Florida 7.7%
Fort Myers Utility System Revenue, Refunding, Series A, 4.00%, 10/01/34		500,000		577,050
Gainesville Utilities System Revenue, Series A, 5.00%, 10/01/36		100,000		123,541
Miami-Dade County Transit System Sales Surtax Revenue, Refunding, 4.00%, 7/01/36		600,000		694,014
Pasco County GO, Fire-Rescue Projects Improvements, Series B, 5.00%, 10/01/36		455,000		581,294
Sarasota County Utility System Revenue, Refunding, Series A, 5.00%, 10/01/34		100,000		127,615

				2,103,514

Georgia 3.2%
Atlanta Airport Revenue, General, Series A, 5.00%, 7/01/34		175,000		224,135
Coweta County Water and Sewage Authority Revenue, Refunding, 4.00%, 6/01/35		100,000		115,348



franklintempleton.com	Semiannual Report	19

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin Liberty Municipal Bond ETF(continued)



	Principal Amount		Value
Municipal Bonds (continued)
Georgia (continued)
Main Street Natural Gas Inc. Gas Supply Revenue,
Sub-series B, Monthly VRDN and Put, 2.15%, 4/01/48		425,000	$	427,686
Series A, 4.00%, 4/01/48		100,000		108,198

				875,367

Illinois 1.1%
Illinois State Finance Authority Revenue, Field Museum of Natural History, Refunding, Mandatory Put 9/01/22, 2.141%, 11/01/34		300,000		300,123

Indiana 1.1%
East Allen Multi School Building Corp. Revenue, Allen County, Ad Valorem Property Tax, first mortgage, 5.00%, 1/15/38		250,000		298,358

Kansas 0.4%
Douglas County USD No. 497 GO, Series A, 3.50%, 9/01/32		100,000		109,043

Louisiana 0.6%
Louisiana GO, Series B, 4.00%, 10/01/34		155,000		175,472

Maine 2.5%
Maine Municipal Bond Bank Revenue, Series C, 5.00%, 11/01/31		100,000		125,509
Maine State Housing Authority Mortgage Purchase Revenue, Series F, 3.85%, 11/15/33		500,000		550,270

				675,779

Maryland 0.9%
Maryland State GO, State and Local Facilities Loan, First Series, 5.00%, 3/15/32		100,000		129,353
Prince George’s County GO, Consolidated Public Improvement, Series A, 3.00%, 9/15/32		100,000		105,523

				234,876

Massachusetts 3.6%
Braintree GO, municipal Purpose Loan of 2019, Refunding, 4.00%, 6/01/32		250,000		294,922
Massachusetts Bay Transportation Authority Sales Tax Revenue, Sustainability Bonds, Subordinate, Series A, Subseries A-1, 5.00%, 7/01/33		100,000		123,685
Massachusetts State Development Finance Agency Revenue, Worcester Polytechnic Institute Issue, 4.00%, 9/01/44		400,000		447,336
University of Massachusetts Building Authority Revenue, Refunding, Senior Series A-1, 5.00%, 5/01/31		100,000		130,176

				996,119

Michigan 1.0%
Lansing Board of Water and Light Utility System Revenue, Series A, 5.00%, 7/01/35		225,000		284,526

Minnesota 3.5%
Center City Health Care Facilities Revenue, Hazelden Betty Ford Foundation Project, Refunding, 4.00%, 11/01/34		125,000		141,436
Minnesota State HFAR, State Appropriation Bonds, Housing Infrastructure, Series C, 4.00%, 8/01/34		250,000		287,115
Minnesota State Higher Education Facilities Authority Revenue, Macalester College, Refunding, 3.00%, 3/01/35		150,000		156,323
Northern Municipal Power Agency Electric System Revenue, Refunding, 5.00%, 1/01/36		100,000		118,754
Southern Minnesota Municipal Power Agency Power Supply System Revenue, Series A, 5.00%, 1/01/31		100,000		125,360
University of Minnesota GO, Series A, 5.00%, 9/01/42		100,000		122,197

				951,185

Missouri 2.5%
Missouri State Health and Educational Facilities Authority Health Facilities Revenue, St. Luke’s Episcopal-Presbyterian Hospitals, 4.00%, 12/01/35		510,000		580,737
Platte County School District Park Hill GO, Direct Deposit Program, 3.00%, 3/01/33		100,000		103,899

				684,636

Montana 0.4%
Cascade County High School District No. 1 Great Falls GO, School Building, 5.00%, 7/01/25		100,000		119,191



20	Semiannual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin Liberty Municipal Bond ETF(continued)



	Principal Amount		Value
Municipal Bonds (continued)
Nevada 2.5%
Clark County School District GO, Building, Refunding, Series A, 5.00%, 6/15/26		100,000	$	121,743
Las Vegas GO, Limited Tax, Various Purpose, Refunding, Series C, 4.00%, 6/01/32		500,000		572,435

				694,178

New Hampshire 0.5%
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		125,750

New Jersey 2.9%
New Jersey State Transportation Trust Fund Authority Revenue, Transportation System, Capital Appreciation, Series C, AGMC Insured, zero cpn., 12/15/29		870,000		675,372
Pinelands Regional School District GO, Refunding, AGMC Insured, 3.00%, 8/01/27		100,000		107,931

				783,303

New Mexico 0.4%
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		114,246

New York 8.6%
Long Island Power Authority Electric System Revenue, General, Series A, 5.00%, 9/01/28		600,000		769,410
MTA Revenue, Transportation, Green Bonds, Climate Bond Certified, Refunding, Series B, 5.00%, 11/15/28		100,000		128,068
New York City GO, Fiscal 2018, Series B, Subseries B-1, 4.00%, 10/01/36		100,000		113,895
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		122,997
New York State Dormitory Authority Revenues,
^a Non-State Supported Debt, Rochester Institute of Technology, Series A, 5.00%, 7/01/39		300,000		374,412
Non-State Supported Debt, School Districts, Financing Program, Refunding, Series G, BAM Insured, 3.00%, 10/01/33		100,000		104,802
New York State Dormitory Authority Sales Tax Revenue, Series A, 5.00%, 3/15/33		600,000		749,778

				2,363,362

North Carolina 0.8%
University of North Carolina at Charlotte Revenue, General, Board of Governors, Refunding, 4.00%, 10/01/34		100,000		113,601
Winston-Salem City Water and Sewer System Revenue, 4.00%, 6/01/33		100,000		114,920

				228,521

Ohio 6.7%
Columbus GO, Series A, 3.00%, 4/01/28		100,000		109,576
Franklin County Hospital Facilities Revenue, Nationwide Children’s Hospital Project, Refunding, Series A, 3.125%, 11/01/33		50,000		52,529
Franklin County Sales Tax Revenue, Various Purpose, 5.00%, 6/01/43		450,000		555,066
Hudson City School District GO, School Improvement, 4.00%, 12/01/31		100,000		112,798
Licking Heights Local School District GO, School Facilities Construction and Improvement, Series B, 5.00%, 10/01/30		100,000		122,752
Northeast Regional Sewer District Revenue,
Wastewater Improvement, Refunding, 3.00%, 11/15/35		500,000		529,910
Wastewater Improvement, Refunding, 4.00%, 11/15/34		100,000		115,373
Ohio State GO, Highway Capital Improvements, Full Faith and Credit/Highway User Receipts, Series S, 5.00%, 5/01/23		100,000		113,173
Ohio State Water Development Authority Revenue, Community Assistance, Refunding, 4.00%, 12/01/30		100,000		123,555

				1,834,732

Oklahoma 2.5%
Oklahoma City GO, 4.00%, 3/01/33		500,000		575,585
Tulsa Metropolitan Utility Authority Revenue, Refunding, Series A, 5.00%, 4/01/26		100,000		122,527

				698,112



franklintempleton.com	Semiannual Report	21

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin Liberty Municipal Bond ETF(continued)



		Principal Amount		Value
	Municipal Bonds (continued)
	Oregon 5.6%
	Deschutes County Administrative School District No. 1 GO, Bend-La Pine, 5.00%, 6/15/30		400,000	$	523,896
	Oregon State Housing and Community Services Department Mortgage Revenue, Series D, 3.15%, 7/01/32		95,000		100,303
	Portland Community College District GO, Multnomah Washington Yamhill Clackamas and Columbia Counties, Refunding, 5.00%, 6/15/25		100,000		120,326
	Salem-Keizer School District No. 24J GO, Marion and Polk Counties, 5.00%, 6/15/36		500,000		628,660
	Washington County GO, Full Faith and Credit Obligations, Series B, 5.00%, 3/01/25		125,000		149,334

					1,522,519

	Pennsylvania 1.6%
	Pennsylvania State Economic Development Financing Authority Revenue, UPMC, Refunding, Series A, 3.375%, 11/15/33		125,000		131,921
	Pennsylvania State University Revenue, Series A, 5.00%, 9/01/38		250,000		316,518

					448,439

	Tennessee 4.6%
	Chattanooga Health Educational and Housing Facility Board Revenue, Commonspirit Health, Refunding, Series A-1, 5.00%, 8/01/25		350,000		411,663
	Kingsport GO, Series B, 3.00%, 3/01/35		130,000		133,561
	Lawrenceburg GO, Refunding, 2.50%, 6/01/27		100,000		103,309
	Metropolitan Government of Nashville and Davidson County GO, Improvement, Refunding, 4.00%, 7/01/29		100,000		117,409
	Metropolitan Government of Nashville and Davidson County Water and Sewer Revenue, Green Bonds, Subordinate, Refunding, Series A, 5.00%, 7/01/36		100,000		122,680
	Tennessee HDA Residential Finance Program Revenue, Issue 2019-2, Refunding, 1.95%, 1/01/26		250,000		252,947
	Tennessee State School Bond Authority Revenue, Higher Educational Facilities Second Program, Series A, 5.00%, 11/01/37		100,000		123,809

					1,265,378

	Texas 6.5%
	El Paso Water and Sewer Revenue, Refunding and Improvement, 4.00%, 3/01/33		100,000		113,852
	Fort Worth Water and Sewer Revenue, System, 5.00%, 2/15/32		250,000		313,168
a	Lamar Consolidated ISD, GO, Fort Bend County, School House, PSF Guarantee, 4.00%, 2/15/30		600,000		719,148
	Pflugerville ISD, GO, Series A, PSF Guarantee, 5.00%, 2/15/29		220,000		280,504
	Round Rock Utility Revenue, Refunding, 2.75%, 8/01/29		100,000		105,448
	Texas A&M University System Board of Regents Revenue, Financing System, Refunding, Series C, 5.00%, 5/15/33		100,000		123,348
	Texas State Water Development Board Revenue, State Water Implementation Fund, Master Trust, Series A, 4.00%, 10/15/33		100,000		115,100

					1,770,568

	Utah 2.8%
	Provo GO, Refunding, 4.00%, 1/01/23		100,000		108,811
	South Jordan Sales Tax Revenue, Refunding, 5.00%, 8/15/38		250,000		317,305
	Utah State Building Ownership Authority Lease Revenue, State Facilities Master Lease Program, 2.50%, 5/15/27		100,000		104,133
	Utah State Water Finance Agency Revenue, Loan Financing Program, Series B, 5.00%, 3/01/38		200,000		251,666

					781,915

	Virginia 3.7%
	Arlington County GO, Public Improvement, 4.00%, 6/15/35		500,000		591,780
	Henrico County Water and Sewer System Revenue, Refunding, 4.00%, 5/01/32		250,000		299,380
	Virginia College Building Authority Educational Facilities Revenue, Public Higher Education Financing Program, Series A, 5.00%, 9/01/32		100,000		127,889

					1,019,049

	Washington 6.8%
	Cascase Schol District No. 228 GO, Chelan County, 5.00%, 12/01/35		455,000		544,953
	King and Snohomish Counties School District No 417 Northshore GO, 5.00%, 12/01/31		100,000		126,728



22	Semiannual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin Liberty Municipal Bond ETF(continued)



	Principal Amount		Value
Municipal Bonds (continued)
Washington (continued)
Seattle Drainage and Wastewater Revenue, Refunding, 4.00%, 4/01/31		125,000	$	142,478
Seattle Municipal Light and Power Revenue, Improvement and Refunding, Series C, 4.00%, 9/01/35		700,000		798,945
Spokane County School District No. 356 Central Valley GO, 5.00%, 12/01/26		100,000		124,738
Washington Health Care Facilities Authority Revenue, MultiCare Health System, Refunding, Series B, 5.00%, 8/15/29		100,000		125,750

				1,863,592

Wisconsin 0.4%
Brookfield GO, Waukesha County, Refunding, 3.00%, 12/01/25		100,000		108,503

Total Investments (Cost $26,612,575) 99.5%				27,267,089
Other Assets, less Liabilities 0.5%				135,928

Net Assets 100.0%			$	27,403,017

See Abbreviations on page 32.

^aSecurity purchased on a when-issued basis. See Note 1(b)



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

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Assets and Liabilities

September 30, 2019 (unaudited)



	Franklin Liberty Intermediate Municipal Opportunities ETF		Franklin Liberty Municipal Bond ETF
Assets:
Investments in securities:
Cost – Unaffiliated issuers	$	8,811,905	$	26,612,575

Value – Unaffiliated issuers	$	9,122,051	$	27,267,089
Cash		17,348		1,103,333
Receivables:
Interest		80,815		203,917
Affiliates		5,114		1,006

Total assets		9,225,328		28,575,345

Liabilities:
Payables:
Investment securities purchased		224,772		1,082,244
Transfer agent fees		7,799		7,799
Trustees’ fees and expenses		72		—
Distributions to shareholders		15,540		45,151
Custodian fees		619		619
Professional fees		18,458		18,613
Registration and filing fees		4,985		5,007
Accrued expenses and other liabilities		12,896		12,895

Total liabilities		285,141		1,172,328

Net assets, at value	$	8,940,187	$	27,403,017

Net assets consist of:
Paid-in capital	$	8,773,821	$	26,909,037
Total distributable earnings (loss)		166,366		493,980

Net assets, at value	$	8,940,187	$	27,403,017

Shares outstanding		350,000		1,050,000

Net asset value per share	$	25.54	$	26.10



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FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Operations

for the period ended September 30, 2019 (unaudited)



	Franklin Liberty Intermediate Municipal Opportunities ETF			Franklin Liberty Municipal Bond ETF
Investment income:
Interest:
Unaffiliated issuers		101,603			142,993

Total investment income		101,603			142,993

Expenses:
Management fees (Note 3a)		24,029			48,734
Transfer agent fees		7,799			7,799
Custodian fees		619			619
Reports to shareholders		3,188			3,301
Registration and filing fees		4,105			4,105
Professional fees		21,088			21,221
Trustees’ fees and expenses		450			552
Other		7,858			7,857

Total expenses		69,136			94,188
Expenses waived/paid by affiliates (Note 3c)		(57,602	)		(70,796	)

Net expenses		11,534			23,392

Net investment income		90,069			119,601

Realized and unrealized gains (losses):
Net realized gain (loss) from:
Investments:
Unaffiliated issuers		1,585			(6,557	)

Net realized gain (loss)		1,585			(6,557	)

Net change in unrealized appreciation (depreciation) on:
Investments:
Unaffiliated issuers		199,790			501,486

Net change in unrealized appreciation (depreciation)		199,790			501,486

Net realized and unrealized gain (loss)		201,375			494,929

Net increase (decrease) in net assets resulting from operations	$	291,444		$	614,530



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Semiannual Report	25

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Changes in Net Assets



	Franklin Liberty Intermediate Municipal Opportunities ETF						Franklin Liberty Municipal Bond ETF

	Six Months Ended September 30, 2019 (unaudited)			Year Ended March 31, 2019			Six Months Ended September 30, 2019 (unaudited)			Year Ended March 31, 2019
Increase (decrease) in net assets:
Operations:
Net investment income	$	90,069		$	187,936		$	119,601		$	200,879
Net realized gain (loss)		1,585			(95,411	)		(6,557	)		(68,214	)
Net change in unrealized appreciation (depreciation)		199,790			266,104			501,486			339,144

Net increase (decrease) in net assets resulting from operations		291,444			358,629			614,530			471,809

Distributions to shareholders		(114,882	)		(187,559	)		(193,469	)		(200,714	)

Capital share transactions: (Note 2)		1,273,821			—			18,162,320			1,246,717

Net increase (decrease) in net assets		1,450,383			171,070			18,583,381			1,517,812
Net assets:
Beginning of period		7,489,804			7,318,734			8,819,636			7,301,824

End of period	$	8,940,187		$	7,489,804		$	27,403,017		$	8,819,636



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FRANKLIN TEMPLETON ETF TRUST

Notes to Financial Statements (unaudited)

1. Organization and Significant Accounting Policies

Franklin Templeton ETF Trust (Trust) is registered under the Investment Company Act of 1940 (1940 Act) as an open-end management investment company, consisting of thirty-nine 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 Fund’s 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



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FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

1. Organization and Significant Accounting Policies(continued)

d. Security Transactions, Investment Income, Expenses and Distributions(continued)

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.

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

g. Guarantees and Indemnifications

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). For the period ended September 30, 2019, all Creation Unit transactions were made in cash.



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FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

At September 30, 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

	Six Months Ended September 30, 2019						Year Ended March 31, 2019

	Shares			Amount			Shares			Amount
Shares sold		50,000		$	1,273,821			200,000		$	4,872,980
Shares redeemed		—			—			(200,000	)		(4,872,980	)

Net increase (decrease)		50,000		$	1,273,821			—		$	—


	Franklin Liberty Municipal Bond ETF

	Six Months Ended September 30, 2019						Year Ended March 31, 2019

	Shares			Amount			Shares			Amount
Shares sold		750,000		$	19,476,759			50,000		$	1,246,717
Shares redeemed		(50,000	)		(1,314,439	)		—			—

Net increase (decrease)		700,000		$	18,162,320			50,000		$	1,246,717

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



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FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

3. Transactions with Affiliates(continued)

a. Management Fees(continued)

For the period ended September 30, 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, 2020. Total expenses waived or paid are not subject to recapture subsequent to the Funds’ fiscal year end.

d. Other Affiliated Transactions

At September 30, 2019, the shares of the Funds were owned by the following entities:



Funds	Shares		Percentage of Outstanding Shares^a

Franklin Liberty Municipal Bond ETF
Franklin Federal Limited-Term Tax-Free Income Fund		715,000		68.1%

^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, if any. 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:
Short term	$	64,623	$	26,801
Long term		57,378		54,878

Total capital loss carryforwards	$	122,001	$	81,679



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NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

At September 30, 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	$	8,819,762		$	26,673,729

Unrealized appreciation	$	370,227		$	617,668
Unrealized depreciation		(67,939	)		(24,307	)

Net unrealized appreciation (depreciation)	$	302,288		$	593,361

5. Investment Transactions

Purchases and sales of investments (excluding short term securities and in-kind transactions, if any) for the period ended September 30, 2019, were as follows:



	Franklin Liberty Intermediate Municipal Opportunities ETF		Franklin Liberty Municipal Bond ETF
Purchases	$	1,736,256	$	19,459,455
Sales	$	114,972	$	1,290,495

6. Credit Risk and Defaulted Securities

At September 30, 2019, Franklin Liberty Intermediate Municipal Opportunities ETF and Franklin Liberty Municipal Bond ETF had 7.88% and 2.56% 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.

The Fund may purchase the pre-default or defaulted debt of distressed companies. Distressed companies are financially troubled and could be or are already involved in financial restructuring or bankruptcy. Risks associated with purchasing these securities include the possibility that the bankruptcy or other restructuring process takes longer than expected, or that distributions in restructuring are less than anticipated, either or both of which may result in unfavorable consequences to the Fund. If it becomes probable that the income on debt securities, including those distressed companies, will not be collected, the Fund discontinues accruing income and recognizes an adjustment for uncollectible interest. At September 30, 2019, the aggregate long value of distressed company securities for which interest recognition has been discontinued representing 0.39% of the Fund’s net assets. For information as to specific securities, see the accompanying Statement of Investments.

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.



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FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

At September 30, 2019, all of the Funds’ investments in financial instruments carried at fair value were valued using Level 2 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
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
HDA		– Housing Development Authority/Agency
HFAR		– Housing Finance Authority Revenue
ID		– Improvement District
ISD		– Independent School District
IDAR		– Industrial Development Authority Revenue
IDA		– Industrial Development Authority/Agency
MTA		– Metropolitan Transit Authority
MFHR		– Multi-Family Housing Revenue
PCR		– Pollution Control Revenue
PFA		– Public Financing Authority
PSF		– Permanent School Fund
RDA		– Redevelopment Agency/Authority
USD		– Unified/Union School District



32	Semiannual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

Shareholder Information

Board Approval of Investment Management Agreements

FRANKLIN TEMPLETON ETF TRUST

Franklin Liberty Intermediate Municipal

Opportunities ETF

Franklin Liberty Municipal Bond ETF

(each a Fund)

At anin-person meeting held on May 29, 2019 (Meeting), the Board of Trustees (Board) of Franklin Templeton ETF Trust (the Trust), including a majority of the trustees who are not “interested persons” as defined in the Investment Company Act of 1940 (Independent Trustees), reviewed and approved the continuance of the investment management agreement between Franklin Advisers, Inc. (Manager) and the Trust, on behalf of each Fund (each a Management Agreement) for an additionalone-year period. The Independent Trustees received advice from and met separately with Independent Trustee counsel in considering whether to approve the continuation of each Management Agreement. Although the Management Agreements for the Funds were considered at the same Board meeting, the Board considered the information provided to it about the Funds together and with respect to each Fund separately as the Board deemed appropriate.

In considering the continuation of each Management Agreement, the Board reviewed and considered information provided by the Manager at the Meeting and throughout the year at meetings of the Board and its committees. The Board also reviewed and considered information provided in response to a detailed set of requests for information submitted to the Manager by Independent Trustee counsel on behalf of the Independent Trustees in connection with the annual contract renewal process. In addition, prior to the Meeting, the Independent Trustees held a telephonic contract renewal meeting at which the Independent Trustees conferred amongst themselves and Independent Trustee counsel about contract renewal matters. The Board reviewed and considered all of the factors it deemed relevant in approving the continuance of each Management Agreement, including, but not limited to: (i) the nature, extent and quality of the services provided by the Manager; (ii) the investment performance of each Fund; (iii) the costs of the services provided and profits realized by the Manager and its affiliates from the relationship with each Fund; (iv) the extent to which economies of scale are realized as each Fund grows; and (v) whether fee levels reflect these economies of scale for the benefit of Fund investors.

Following consideration of such information, the Board was satisfied with the nature, extent and quality of services provided by the Manager and its affiliates to the Funds and their shareholders.



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FRANKLIN TEMPLETON ETF TRUST

SHAREHOLDER INFORMATION

FUND PERFORMANCE. The Board reviewed and considered the performance results of each Fund for various time periods ended February 28, 2019. The Board considered the performance returns for each Fund in comparison to the performance returns of registered funds deemed comparable to the Fund included in a universe (Performance Universe) selected by Broadridge Financial Solutions, Inc. (Broadridge), an independent provider of investment company data. The Board received a description of the methodology used by Broadridge to select the registered funds included in a Performance Universe. The Board also reviewed and considered Fund performance reports provided and discussions that occurred with portfolio managers at Board meetings throughout the year. The Board noted its ongoing discussions with the Manager about the performance of the Funds to date and the importance of performance to asset growth. Specifically, the Board referenced earlier discussions with management on matters related to, among other things, the strategy behind the overall productline-up, the design and construction of the Manager’s proprietary indices, the comparability of peer data, the nature of the Manager’s research, the potential use of innovative data and technology, and investments in marketing and distribution. A summary of each Fund’s performance results is below.

The Performance Universe for the Franklin Liberty Intermediate Municipal Opportunities ETF included the Fund and all retail and institutional intermediate municipal debt funds. The Performance Universe for the Franklin Liberty Municipal Bond ETF included the Fund and all retail and institutional general and insured municipal debt funds. The Funds commenced operations on August 31, 2017, and thus have been in operation for less than three years. The Board noted that the Funds’ annualized total returns for theone-year period were above the medians and in the first (best) and second quintiles of their respective Performance Universes. The Board concluded that the Funds’ performance was satisfactory.

COMPARATIVE FEES AND EXPENSES. The Board reviewed and considered information regarding each Fund��s actual total expense ratio and its various components, including, as applicable, management fees; transfer agent expenses; underlying fund expenses; Rule12b-1 andnon-Rule12b-1 service fees; and othernon-management fees. The Board considered the actual total expense ratio and, separately, the contractual management fee rate, without the effect of fee waivers, if any (Management Rate) of each Fund in comparison to the median expense ratio and median Management Rate, respectively, of other exchange-traded funds deemed comparable to and with a similar expense structure to the Fund selected by Broadridge

(Expense Group). Broadridge fee and expense data is based upon information taken from each fund’s most recent annual report, which reflects historical asset levels that may be quite different from those currently existing, particularly in a period of market volatility. While recognizing such inherent limitation and the fact that expense ratios and Management Rates generally increase as assets decline and decrease as assets grow, the Board believed the independent analysis conducted by Broadridge to be an appropriate measure of comparative fees and expenses. The Broadridge Management Rate includes administrative charges. The Board received a description of the methodology used by Broadridge to select the exchange-traded funds included in an Expense Group.

The Expense Group for the Franklin Liberty Intermediate Municipal Opportunities ETF was comprised of actively managed exchange-traded funds, which included the Fund and four other intermediate municipal debt funds. The Expense Group for the Franklin Liberty Municipal Bond ETF was comprised of actively managed exchange-traded funds, which included the Fund and three other general and insured municipal debt funds. The Board noted that the Management Rates for these Funds were above the medians of their respective Expense Groups, but their actual total expense ratios were below the medians of their respective Expense Groups. The Board also noted the small size of the Expense Groups and that each Fund’s actual total expense ratio reflected a fee waiver from management. The Board concluded that the Management Rates charged to these Funds are reasonable.

PROFITABILITY. The Board reviewed and considered information regarding the profits realized by the Manager and its affiliates in connection with the operation of each Fund. In this respect, the Board considered the Fund profitability analysis that addresses the overall profitability of FT’s US fund business, as well as its profits in providing investment management and other services to each of the individual funds during the12-month period ended September 30, 2018, being the most recent fiscalyear-end for FRI. The Board noted that although management continually makes refinements to its methodologies used in calculating profitability in response to organizational and product-related changes, the overall methodology has remained consistent with that used in the Funds’ profitability report presentations from prior years. Additionally, PricewaterhouseCoopers LLP, auditor to FRI and certain Franklin Templeton funds, has been engaged to periodically review and assess the allocation methodologies to be used solely by the Funds’ Board with respect to the profitability analysis.



34	Semiannual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

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



franklintempleton.com	Semiannual Report	35

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SEMIANNUAL REPORT

FRANKLIN TEMPLETON

ETF TRUST

September 30, 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

Semiannual Report

Economic and Market Overview			2
Franklin FTSE Asia ex Japan ETF			3
Franklin FTSE Australia ETF			8
Franklin FTSE Brazil ETF			13
Franklin FTSE Canada ETF			18
Franklin FTSE China ETF			23
Franklin FTSE Europe ETF			28
Franklin FTSE Europe Hedged ETF			33
Franklin FTSE France ETF			38
Franklin FTSE Germany ETF			43
Franklin FTSE Hong Kong ETF			48
Franklin FTSE India ETF			53
Franklin FTSE Italy ETF			58
Franklin FTSE Japan ETF			63

Visitfranklintempleton.com/investor/investments-and-solutions/investment-options/etfs/ for fund updates and documents.


Franklin FTSE Japan Hedged ETF			68
Franklin FTSE Latin America ETF			73
Franklin FTSE Mexico ETF			78
Franklin FTSE Russia ETF			83
Franklin FTSE Saudi Arabia ETF			88
Franklin FTSE South Africa ETF			93
Franklin FTSE South Korea ETF			98
Franklin FTSE Switzerland ETF			103
Franklin FTSE Taiwan ETF			108
Franklin FTSE United Kingdom ETF			113
Financial Highlights and Statements of Investments			118
Financial Statements			272
Notes to Financial Statements			296
Tax Information			323
Shareholder Information			324


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



franklintempleton.com	Not part of the semiannual report	1

SEMIANNUAL REPORT

Economic and Market Overview

However, markets also reflected concerns about political uncertainties in the U.S. (including the impeachment inquiry into U.S. President Donald Trump), geopolitical tensions in the eurozone and other regions, and the impact of U.S. trade disputes with China and other trading partners on global growth and corporate earnings. In this environment, global developed and emerging market stocks, as measured by the FTSEAll-World Index, posted a positive total return for the six months under review.

The U.S. economy grew during thesix-month period. However, the economy moderated in 2019’s second and third quarters, due partly to weakness in inventory and business investment. The manufacturing sector expanded during the period’s first four months, but contracted in August and September 2019. The services sector continued to expand throughout the period, although the rate of expansion slowed in September. The unemployment rate decreased from 3.8% in March 2019 to 3.5% atperiod-end.¹ The annual inflation rate, as measured by the Consumer Price Index, decreased from 1.9% in March 2019 to 1.7%at period-end.¹

In larger emerging markets, Brazil’s quarterly GDP growth accelerated in 2019’s second quarter. The Central Bank of Brazil lowered its benchmark interest rate twice during thesix-month period. Russia’s annual GDP growth accelerated in 2019’s second quarter. The Bank of Russia cut its key interest rate three times during the period. China’s annual GDP growth moderated in 2019’s second and third quarters. The People’s Bank of China implemented an interest-rate reform in August, designating the loan prime rate as the new benchmark for household and business loans, effectively lowering interest rates in August and September. Overall, global emerging market stocks, as measured by the FTSE Emerging Index, posted a negative total return during the six months under review.

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



2	Semiannual Report	franklintempleton.com

Franklin FTSE Asia ex Japan ETF

This semiannual report for Franklin FTSE Asia ex Japan ETF covers the period ended September 30, 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 thesix-month period, the Fund posted cumulative total returns of -5.73% based on market price and -5.07% based on net asset value. In comparison, the FTSE Asia ex Japan Capped Index posted a -5.08% 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 intention is to


Top 10 Sectors/Industries

9/30/19

	% of Total Net Assets
Banks		13.3%
Internet & Direct Marketing Retail		6.7%
Interactive Media & Services		6.6%
Semiconductors & Semiconductor Equipment		6.4%
Insurance		6.2%
Technology Hardware, Storage & Peripherals		5.8%
Real Estate Management & Development		4.9%
Oil, Gas & Consumable Fuels		4.4%
Electronic Equipment, Instruments & Components		2.4%
Industrial Conglomerates		2.4%

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 119.



franklintempleton.com	Semiannual Report	3

FRANKLIN FTSE ASIA EX JAPAN ETF


Top 10 Holdings

9/30/19

Company *Sector/Industry, Country*	% of Total Net Assets
Tencent Holdings Ltd. Interactive Media & Services, China		5.1%
Alibaba Group Holding Ltd., ADR Internet & Direct Marketing Retail, China		5.0%
Samsung Electronics Co. Ltd. Technology Hardware, Storage & Peripherals, South Korea		4.7%
Taiwan Semiconductor Manufacturing Co. Ltd. Semiconductors & Semiconductor Equipment, Taiwan		4.5%
AIA Group Ltd. Insurance, Hong Kong		2.4%
China Construction Bank Corp., A, H Banks, China		1.5%
Ping An Insurance (Group) Co. of China Ltd., H Insurance, China		1.3%
Reliance Industries Ltd. Oil, Gas & Consumable Fuels, India		1.2%
Industrial and Commercial Bank of China Ltd., H Banks, China		1.2%
Housing Development Finance Corp. Ltd. Thrifts & Mortgage Finance, India		1.0%


Top 10 Countries

9/30/19

	% of Total Net Assets
China		36.8%
South Korea		13.6%
Taiwan		12.9%
India		11.2%
Hong Kong		10.0%
Singapore		4.1%
Thailand		3.7%
Malaysia		2.8%
Indonesia		2.2%
Philippines		1.3%

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

CFA^® is a trademark owned by CFA Institute.



4	Semiannual Report	franklintempleton.com

FRANKLIN FTSE ASIA EX JAPAN ETF

Performance Summary as of September 30, 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 9/30/19



	Cumulative Total Return¹				Average Annual Total Return¹
	Based on NAV²		Based on market price³		Based on NAV²		Based on market price³
6-Month		-5.07%		-5.73%		-5.07%		-5.73%
1-Year		-3.65%		-3.97%		-3.65%		-3.97%
Since Inception (2/6/18)		-10.19%		-10.45%		-6.32%		-6.48%

See page 6 for Performance Summary footnotes.



franklintempleton.com	Semiannual Report	5

FRANKLIN FTSE ASIA EX JAPAN ETF

PERFORMANCE SUMMARY

Distributions(4/1/19–9/30/19)

Net Investment
Income

$0.124210

Total Annual Operating Expenses⁴

0.19%

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. 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.



6	Semiannual Report	franklintempleton.com

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 4/1/19		Ending Account Value 9/30/19		Expenses Paid During Period 4/1/19–9/30/19^1,2		Ending Account Value 9/30/19		Expenses Paid During Period 4/1/19–9/30/19^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	949.30	$	0.93	$	1,024.05	$	0.96		0.19	%

2. Reflects expenses after fee waivers and expense reimbursements.



franklintempleton.com	Semiannual Report	7

Franklin FTSE Australia ETF

This semiannual report for Franklin FTSE Australia ETF covers the period ended September 30, 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 thesix-month period, the Fund posted cumulative total returns of +5.72% based on market price and +5.58% based on net asset value. In comparison, the FTSE Australia Capped Index posted a +5.61% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 10.

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


Top 10 Sectors/Industries

9/30/19

	% of Total Net Assets
Banks		26.8%
Metals & Mining		14.5%
Equity Real Estate Investment Trusts (REITs)		6.9%
Biotechnology		6.7%
Oil, Gas & Consumable Fuels		5.2%
Capital Markets		4.3%
Food & Staples Retailing		4.2%
Insurance		3.9%
Transportation Infrastructure		3.7%
Multiline Retail		3.0%

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 152.



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FRANKLIN FTSE AUSTRALIA ETF


Top 10 Holdings

9/30/19

Company *Sector/Industry, Country*	% of Total Net Assets
Commonwealth Bank of Australia Banks, Australia		9.1%
BHP Group Ltd. Metals & Mining, Australia		6.9%
CSL Ltd. Biotechnology, Australia		6.7%
Westpac Banking Corp. Banks, Australia		6.6%
National Australia Bank Ltd. Banks, Australia		5.4%
Australia & New Zealand Banking Group Ltd. Banks, Australia		5.1%
Woolworths Group Ltd. Food & Staples Retailing, Australia		3.0%
Wesfarmers Ltd. Multiline Retail, Australia		2.9%
Macquarie Group Ltd. Capital Markets, Australia		2.6%
Transurban Group Transportation Infrastructure, Australia		2.5%

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



franklintempleton.com	Semiannual Report	9

FRANKLIN FTSE AUSTRALIA ETF

Performance Summary as of September 30, 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 9/30/19

Cumulative Total Return¹

Average Annual Total Return¹

Based on
NAV²

Based on

market price³

Based on
NAV²

Based on

market price³

6-Month

+5.58%

+5.72%

+5.58%

+5.72%

1-Year

+5.50%

+6.92%

+5.50%

+6.92%

Since Inception (11/2/17)

+7.55%

+8.18%

+3.89%

+4.20%

See page 11 for Performance Summary footnotes.



10	Semiannual Report	franklintempleton.com

FRANKLIN FTSE AUSTRALIA ETF

PERFORMANCE SUMMARY

Distributions(4/1/19–9/30/19)

Net Investment
Income

$0.689329

Total Annual Operating Expenses⁴

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.



franklintempleton.com	Semiannual Report	11

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 4/1/19		Ending Account Value 9/30/19		Expenses Paid During Period 4/1/19–9/30/19^1,2		Ending Account Value 9/30/19		Expenses Paid During Period 4/1/19–9/30/19^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	1,055.80	$	0.46	$	1,024.55	$	0.46		0.09	%

2. Reflects expenses after fee waivers and expense reimbursements.



12	Semiannual Report	franklintempleton.com

Franklin FTSE Brazil ETF

This semiannual report for Franklin FTSE Brazil ETF covers the period ended September 30, 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 thesix-month period, the Fund posted cumulative total returns of +4.17% based on market price and +2.69% based on net asset value. In comparison, the FTSE Brazil Capped Index posted a +2.82% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 15.

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


Top 10 Sectors/Industries

9/30/19

	% of Total Net Assets
Banks		26.5%
Oil, Gas & Consumable Fuels		12.1%
Metals & Mining		10.6%
Capital Markets		5.6%
Electric Utilities		5.3%
Beverages		4.7%
Multiline Retail		4.4%
Insurance		3.9%
Food Products		3.3%
Road & Rail		2.9%

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 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 155.



franklintempleton.com	Semiannual Report	13

FRANKLIN FTSE BRAZIL ETF


Top 10 Holdings

9/30/19

Company *Sector/Industry, Country*	% of Total Net Assets
Petroleo Brasileiro SA Oil, Gas & Consumable Fuels, Brazil		10.7%
Banco Bradesco SA Banks, Brazil		9.2%
Itau Unibanco Holding SA Banks, Brazil		9.0%
Vale SA Metals & Mining, Brazil		8.9%
B3 SA – Brasil Bolsa Balcao Capital Markets, Brazil		4.8%
Ambev SA Beverages, Brazil		4.7%
Itausa – Investimentos Itau SA Banks, Brazil		4.4%
Banco do Brasil SA Banks, Brazil		2.6%
Lojas Renner SA Multiline Retail, Brazil		2.2%
JBS SA Food Products, United States		1.8%

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



14	Semiannual Report	franklintempleton.com

FRANKLIN FTSE BRAZIL ETF

Performance Summary as of September 30, 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 9/30/19

Cumulative Total Return¹

Average Annual Total Return¹

Based on
NAV²

Based on

market price³

Based on
NAV²

Based on

market price³

6-Month

+2.69%

+4.17%

+2.69%

+4.17%

1-Year

+26.71%

+28.71%

+26.71%

+28.71%

Since Inception (11/3/17)

+13.25%

+13.61%

+6.74%

+6.92%

See page 16 for Performance Summary footnotes.



franklintempleton.com	Semiannual Report	15

FRANKLIN FTSE BRAZIL ETF

PERFORMANCE SUMMARY

Distributions(4/1/19–9/30/19)

Net Investment
Income

$0.378461

Total Annual Operating Expenses⁴

0.19%

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.



16	Semiannual Report	franklintempleton.com

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 4/1/19		Ending Account Value 9/30/19		Expenses Paid During Period 4/1/19–9/30/19^1,2		Ending Account Value 9/30/19		Expenses Paid During Period 4/1/19–9/30/19^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	1,026.90	$	0.96	$	1,024.05	$	0.96		0.19	%

2. Reflects expenses after fee waivers and expense reimbursements.



franklintempleton.com	Semiannual Report	17

Franklin FTSE Canada ETF

This semiannual report for Franklin FTSE Canada ETF covers the period ended September 30, 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 thesix-month period, the Fund posted cumulative total returns of +7.24% based on market price and +7.18% based on net asset value. In comparison, the FTSE Canada Capped Index posted a +7.05% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 20.

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


Top 10 Sectors/Industries

9/30/19

	% of Total Net Assets
Banks		30.0%
Oil, Gas & Consumable Fuels		18.9%
Insurance		8.2%
Road & Rail		7.3%
Metals & Mining		6.1%
Food & Staples Retailing		4.0%
IT Services		3.8%
Capital Markets		3.7%
Chemicals		2.2%
Commercial Services & Supplies		1.8%

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 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 159.



18	Semiannual Report	franklintempleton.com

FRANKLIN FTSE CANADA ETF


Top 10 Holdings

9/30/19

Company *Sector/Industry, Country*	% of Total Net Assets
Royal Bank of Canada Banks, Canada		8.9%
The Toronto-Dominion Bank Banks, Canada		8.2%
Bank of Nova Scotia Banks, Canada		5.3%
Enbridge Inc. Oil, Gas & Consumable Fuels, Canada		5.3%
Canadian National Railway Co. Road & Rail, Canada		4.9%
Suncor Energy Inc. Oil, Gas & Consumable Fuels, Canada		3.8%
TC Energy Corp. Oil, Gas & Consumable Fuels, Canada		3.6%
Bank of Montreal Banks, Canada		3.6%
Brookfield Asset Management Inc., A Capital Markets, Canada		3.6%
Canadian Imperial Bank of Commerce Banks, Canada		2.8%

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



franklintempleton.com	Semiannual Report	19

FRANKLIN FTSE CANADA ETF

Performance Summary as of September 30, 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 9/30/19

Cumulative Total Return¹

Average Annual Total Return¹

Based on
NAV²

Based on

market price³

Based on
NAV²

Based on

market price³

6-Month

+7.18%

+7.24%

+7.18%

+7.24%

1-Year

+5.73%

+5.87%

+5.73%

+5.87%

Since Inception (11/2/17)

+7.43%

+7.66%

+3.82%

+3.94%

See page 21 for Performance Summary footnotes.



20	Semiannual Report	franklintempleton.com

FRANKLIN FTSE CANADA ETF

PERFORMANCE SUMMARY

Distributions(4/1/19–9/30/19)

Net Investment
Income

$0.231542

Total Annual Operating Expenses⁴

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.



franklintempleton.com	Semiannual Report	21

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 4/1/19		Ending Account Value 9/30/19		Expenses Paid During Period 4/1/19–9/30/19^1,2		Ending Account Value 9/30/19		Expenses Paid During Period 4/1/19–9/30/19^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	1,071.80	$	0.47	$	1,024.55	$	0.46		0.09	%

2. Reflects expenses after fee waivers and expense reimbursements.



22	Semiannual Report	franklintempleton.com

Franklin FTSE China ETF

This semiannual report for Franklin FTSE China ETF covers the period ended September 30, 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 thesix-month period, the Fund posted cumulative total returns of -9.84% based on market price and -8.58% based on net asset value. In comparison, the FTSE China Capped Index posted a -8.52% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 25.

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


Top 10 Sectors/Industries

9/30/19

	% of Total Net Assets
Internet & Direct Marketing Retail		18.3%
Interactive Media & Services		16.7%
Banks		13.4%
Insurance		6.9%
Real Estate Management & Development		5.4%
Oil, Gas & Consumable Fuels		3.7%
Wireless Telecommunication Services		2.6%
Capital Markets		2.1%
Pharmaceuticals		1.9%
Beverages		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 162.



franklintempleton.com	Semiannual Report	23

FRANKLIN FTSE CHINA ETF


Top 10 Holdings

9/30/19

Company *Sector/Industry, Country*	% of Total Net Assets
Tencent Holdings Ltd. Interactive Media & Services, China		13.9%
Alibaba Group Holding Ltd., ADR Internet & Direct Marketing Retail, China		13.8%
China Construction Bank Corp., A, H Banks, China		4.1%
Ping An Insurance (Group) Co. of China Ltd., H Insurance, China		3.7%
Industrial and Commercial Bank of China Ltd., H Banks, China		3.2%
China Mobile Ltd. Wireless Telecommunication Services, China		2.6%
Meituan Dianping, B, Reg S Internet & Direct Marketing Retail, China		2.0%
Bank of China Ltd., A, H Banks, China		1.8%
Baidu Inc., ADR Interactive Media & Services, China		1.7%
CNOOC Ltd. Oil, Gas & Consumable Fuels, China		1.4%

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



24	Semiannual Report	franklintempleton.com

FRANKLIN FTSE CHINA ETF

Performance Summary as of September 30, 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 9/30/19



	Cumulative Total Return¹				Average Annual Total Return¹
	Based on NAV²		Based on market price³		Based on NAV²		Based on market price³
6-Month		-8.58%		-9.84%		-8.58%		-9.84%
1-Year		-4.00%		-4.19%		-4.00%		-4.19%
Since Inception (11/2/17)		-10.42%		-10.95%		-5.60%		-5.89%

See page 26 for Performance Summary footnotes.



franklintempleton.com	Semiannual Report	25

FRANKLIN FTSE CHINA ETF

PERFORMANCE SUMMARY

Distributions(4/1/19–9/30/19)

Net Investment
Income

$0.030378

Total Annual Operating Expenses⁴

0.19%

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.



26	Semiannual Report	franklintempleton.com

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 4/1/19		Ending Account Value 9/30/19		Expenses Paid During Period 4/1/19–9/30/19^1,2		Ending Account Value 9/30/19		Expenses Paid During Period 4/1/19–9/30/19^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	914.20	$	0.91	$	1,024.05	$	0.96		0.19	%

2. Reflects expenses after fee waivers and expense reimbursements.



franklintempleton.com	Semiannual Report	27

Franklin FTSE Europe ETF

This semiannual report for Franklin FTSE Europe ETF covers the period ended September 30, 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 thesix-month period, the Fund posted cumulative total returns of +2.38% based on market price and +2.64% based on net asset value. In comparison, the FTSE Developed Europe Capped Index posted a +2.45% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 30.

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. Our


Top 10 Sectors/Industries

9/30/19

	% of Total Net Assets
Pharmaceuticals		10.3%
Banks		8.6%
Oil, Gas & Consumable Fuels		6.9%
Insurance		6.0%
Food Products		4.9%
Textiles, Apparel & Luxury Goods		3.8%
Chemicals		3.6%
Beverages		3.1%
Personal Products		2.6%
Diversified Telecommunication Services		2.5%

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 180.



28	Semiannual Report	franklintempleton.com

FRANKLIN FTSE EUROPE ETF


Top 10 Holdings

9/30/19

Company *Sector/Industry, Country*	% of Total Net Assets
Nestle SA Food Products, Switzerland		3.5%
Royal Dutch Shell PLC, A, B Oil, Gas & Consumable Fuels, United Kingdom		2.6%
Roche Holding AG Pharmaceuticals, Switzerland		2.4%
Novartis AG Pharmaceuticals, Switzerland		2.1%
HSBC Holdings PLC Banks, United Kingdom		1.7%
BP PLC Oil, Gas & Consumable Fuels, United Kingdom		1.4%
Total SA Oil, Gas & Consumable Fuels, France		1.4%
AstraZeneca PLC Pharmaceuticals, United Kingdom		1.3%
SAP SE Software, Germany		1.3%
GlaxoSmithKline PLC Pharmaceuticals, United Kingdom		1.2%

Thank you for your participation in Franklin FTSE Europe ETF. We look forward to serving your future investment needs.

LOGO

Dina Ting, CFA


		Louis Hsu, CFA

		Portfolio Management Team


Top 10 Countries

9/30/19

	% of Total Net Assets
United Kingdom		26.2%
France		17.0%
Switzerland		15.1%
Germany		13.6%
Spain		4.5%
Netherlands		4.5%
Sweden		4.1%
Italy		3.7%
Denmark		2.7%
Finland		1.9%



franklintempleton.com	Semiannual Report	29

FRANKLIN FTSE EUROPE ETF

Performance Summary as of September 30, 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 9/30/19

Cumulative Total Return¹

Average Annual Total Return¹

Based on
NAV²

Based on

market price³

Based on
NAV²

Based on

market price³

6-Month

+2.64%

+2.38%

+2.64%

+2.38%

1-Year

-0.80%

Since Inception (11/2/17)

-1.40%

-1.57%

-0.74%

-0.82%

See page 31 for Performance Summary footnotes.



30	Semiannual Report	franklintempleton.com

FRANKLIN FTSE EUROPE ETF

PERFORMANCE SUMMARY

Distributions(4/1/19–9/30/19)

Net Investment
Income

$0.343062

Total Annual Operating Expenses⁴

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.



franklintempleton.com	Semiannual Report	31

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 4/1/19		Ending Account Value 9/30/19		Expenses Paid During Period 4/1/19–9/30/19^1,2		Ending Account Value 9/30/19		Expenses Paid During Period 4/1/19–9/30/19^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	1,026.40	$	0.46	$	1,024.55	$	0.46		0.09	%

2. Reflects expenses after fee waivers and expense reimbursements.



32	Semiannual Report	franklintempleton.com

Franklin FTSE Europe Hedged ETF

This semiannual report for Franklin FTSE Europe Hedged ETF covers the period ended September 30, 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 thesix-month period, the Fund posted cumulative total returns of +7.55% based on market price and +7.76% based on net asset value. In comparison, the FTSE Developed Europe Capped Hedged Index posted a +7.59% 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 Hedged Index. We seek to achieve, over time, a correlation between the Fund’s performance, before


Top 10 Sectors/Industries

9/30/19

	% of Total Net Assets
Pharmaceuticals		10.1%
Banks		8.4%
Oil, Gas & Consumable Fuels		6.8%
Insurance		5.9%
Food Products		4.8%
Textiles, Apparel & Luxury Goods		3.8%
Chemicals		3.5%
Beverages		3.0%
Personal Products		2.6%

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 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

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 193.



franklintempleton.com	Semiannual Report	33

FRANKLIN FTSE EUROPE HEDGED ETF


Top 10 Holdings

9/30/19

Company *Sector/Industry, Country*	% of Total Net Assets
Nestle SA Food Products, Switzerland		3.5%
Royal Dutch Shell PLC, A, B Oil, Gas & Consumable Fuels, United Kingdom		2.6%
Roche Holding AG Pharmaceuticals, Switzerland		2.3%
Novartis AG Pharmaceuticals, Switzerland		2.1%
HSBC Holdings PLC Banks, United Kingdom		1.7%
BP PLC Oil, Gas & Consumable Fuels, United Kingdom		1.4%
Total SA Oil, Gas & Consumable Fuels, France		1.4%
AstraZeneca PLC Pharmaceuticals, United Kingdom		1.3%
SAP SE Software, Germany		1.3%
GlaxoSmithKline PLC Pharmaceuticals, United Kingdom		1.2%


Top 10 Countries

9/30/19

	% of Total Net Assets
United Kingdom		25.8%
France		16.8%
Switzerland		14.9%
Germany		13.4%
Spain		4.5%
Netherlands		4.4%
Sweden		4.0%
Italy		3.7%
Denmark		2.7%
Finland		1.9%

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 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.

Thank you for your participation in Franklin FTSE Europe Hedged ETF. We look forward to serving your future investment needs.

LOGO

Dina Ting, CFA


		Louis Hsu, CFA

		Portfolio Management Team



34	Semiannual Report	franklintempleton.com

FRANKLIN FTSE EUROPE HEDGED ETF

Performance Summary as of September 30, 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 9/30/19

Cumulative Total Return¹

Average Annual Total Return¹

Based on
NAV²

Based on

market price³

Based on
NAV²

Based on

market price³

6-Month

+7.76%

+7.55%

+7.76%

+7.55%

1-Year

+8.21%

+8.17%

+8.21%

+8.17%

Since Inception (11/2/17)

+9.97%

+9.62%

+5.10%

+4.93%

See page 36 for Performance Summary footnotes.



franklintempleton.com	Semiannual Report	35

FRANKLIN FTSE EUROPE HEDGED ETF

PERFORMANCE SUMMARY

Distributions(4/1/19–9/30/19)

Net Investment

Income

$0.308329

Total Annual Operating Expenses⁴

0.09%

All investments involve risks, including possible loss of principal. Stock prices fluctuate, sometimes rapidly and dramatically, due to factors affecting individual companies, particular industries or sectors, or general market conditions. 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.



36	Semiannual 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 4/1/19		Ending Account Value 9/30/19		Expenses Paid During Period 4/1/19–9/30/19^1,2		Ending Account Value 9/30/19		Expenses Paid During Period 4/1/19–9/30/19^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	1,077.60	$	0.47	$	1,024.55	$	0.46		0.09	%

2. Reflects expenses after fee waivers and expense reimbursements.



franklintempleton.com	Semiannual Report	37

Franklin FTSE France ETF

This semiannual report for Franklin FTSE France ETF covers the period ended September 30, 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 thesix-month period, the Fund posted cumulative total returns of +5.24% based on market price and +5.52% based on net asset value. In comparison, the FTSE France Capped Index posted a +5.07% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 40.

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


Top 10 Sectors/Industries

9/30/19

	% of Total Net Assets
Textiles, Apparel & Luxury Goods		13.1%
Aerospace & Defense		9.0%
Oil, Gas & Consumable Fuels		8.2%
Pharmaceuticals		6.8%
Banks		5.7%
Personal Products		4.4%
Chemicals		4.3%
Construction & Engineering		4.3%
Electrical Equipment		4.3%
Insurance		3.8%

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 207.



38	Semiannual Report	franklintempleton.com

FRANKLIN FTSE FRANCE ETF


Top 10 Holdings

9/30/19

Company *Sector/Industry, Country*	% of Total Net Assets
Total SA Oil, Gas & Consumable Fuels, France		8.2%
Sanofi Pharmaceuticals, France		6.6%
LVMH Moet Hennessy Louis Vuitton SE Textiles, Apparel & Luxury Goods, France		6.5%
Airbus SE Aerospace & Defense, France		4.7%
L’Oreal SA Personal Products, France		4.4%
Air Liquide SA Chemicals, France		3.9%
Danone SA Food Products, France		3.5%
BNP Paribas SA Banks, France		3.4%
Safran SA Aerospace & Defense, France		3.4%
Vinci SA Construction & Engineering, France		3.3%

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	Semiannual Report	39

FRANKLIN FTSE FRANCE ETF

Performance Summary as of September 30, 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 9/30/19

Cumulative Total Return¹

Average Annual Total Return¹

Based on
NAV²

Based on

market price³

Based on
NAV²

Based on

market price³

6-Month

+5.52%

+5.24%

+5.52%

+5.24%

1-Year

-0.65%

-0.42%

-0.65%

-0.42%

Since Inception (11/2/17)

+2.55%

+2.74%

+1.33%

+1.43%

See page 41 for Performance Summary footnotes.



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FRANKLIN FTSE FRANCE ETF

PERFORMANCE SUMMARY

Distributions(4/1/19–9/30/19)

Net Investment
Income

$0.282828

Total Annual Operating Expenses⁴

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.



franklintempleton.com	Semiannual Report	41

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.

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 4/1/19		Ending Account Value 9/30/19		Expenses Paid During Period 4/1/19–9/30/19^1,2		Ending Account Value 9/30/19		Expenses Paid During Period 4/1/19–9/30/19^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	1,055.20	$	0.46	$	1,024.55	$	0.46		0.09	%

2. Reflects expenses after fee waivers and expense reimbursements.



42	Semiannual Report	franklintempleton.com

Franklin FTSE Germany ETF

This semiannual report for Franklin FTSE Germany ETF covers the period ended September 30, 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 thesix-month period, the Fund posted cumulative total returns of +3.30% based on market price and +3.35% based on net asset value. In comparison, the FTSE Germany Capped Index posted a +3.11% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 45.

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


Top 10 Sectors/Industries

9/30/19

	% of Total Net Assets
Insurance		12.1%
Software		9.6%
Automobiles		9.4%
Chemicals		8.3%
Industrial Conglomerates		7.1%
Pharmaceuticals		6.6%
Textiles, Apparel & Luxury Goods		5.8%
Diversified Telecommunication Services		4.9%
Real Estate Management & Development		4.5%
Capital Markets		3.7%

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 210.



franklintempleton.com	Semiannual Report	43

FRANKLIN FTSE GERMANY ETF


Top 10 Holdings

9/30/19

Company *Sector/Industry, Country*	% of Total Net Assets
SAP SE Software, Germany		9.4%
Allianz SE Insurance, Germany		8.1%
Siemens AG Industrial Conglomerates, Germany		6.7%
Bayer AG Pharmaceuticals, Germany		5.4%
BASF SE Chemicals, Germany		5.3%
Adidas AG Textiles, Apparel & Luxury Goods, Germany		5.0%
Deutsche Telekom AG Diversified Telecommunication Services, Germany		4.4%
Daimler AG Automobiles, Germany		3.5%
Muenchener Rueckversicherungs-Gesellschaft Aktiengesellschaft in Muenchen Insurance, Germany		3.1%
Volkswagen AG Automobiles, Germany		3.1%

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



44	Semiannual Report	franklintempleton.com

FRANKLIN FTSE GERMANY ETF

Performance Summary as of September 30, 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 9/30/19

Cumulative Total Return¹

Average Annual Total Return¹

Based on
NAV²

Based on

market price³

Based on
NAV²

Based on

market price³

6-Month

+3.35%

+3.30%

+3.35%

+3.30%

1-Year

-6.33%

-6.04%

-6.33%

-6.04%

Since Inception (11/2/17)

-14.15%

-14.11%

-7.68%

-7.66%

See page 46 for Performance Summary footnotes.



franklintempleton.com	Semiannual Report	45

FRANKLIN FTSE GERMANY ETF

PERFORMANCE SUMMARY

Distributions(4/1/19–9/30/19)

Net Investment
Income

$0.480094

Total Annual Operating Expenses⁴

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.



46	Semiannual 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 4/1/19		Ending Account Value 9/30/19		Expenses Paid During Period 4/1/19–9/30/19^1,2		Ending Account Value 9/30/19		Expenses Paid During Period 4/1/19–9/30/19^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	1,033.50	$	0.46	$	1,024.55	$	0.46		0.09	%

2. Reflects expenses after fee waivers and expense reimbursements.



franklintempleton.com	Semiannual Report	47

Franklin FTSE Hong Kong ETF

This semiannual report for Franklin FTSE Hong Kong ETF covers the period ended September 30, 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 thesix-month period, the Fund posted cumulative total returns of -10.98% based on market price and -10.63% based on net asset value. In comparison, the FTSE Hong Kong Capped Index posted a -10.60% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 50.

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


Top 10 Sectors/Industries

9/30/19

	% of Total Net Assets
Insurance		19.4%
Real Estate Management & Development		18.8%
Industrial Conglomerates		8.3%
Capital Markets		7.3%
Hotels, Restaurants & Leisure		7.0%
Banks		6.1%
Electric Utilities		5.8%
Food Products		5.5%
Equity Real Estate Investment Trusts (REITs)		4.7%
Gas Utilities		3.8%

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 213.



48	Semiannual Report	franklintempleton.com

FRANKLIN FTSE HONG KONG ETF


Top 10 Holdings

9/30/19

Company *Sector/Industry, Country*	% of Total Net Assets
AIA Group Ltd. Insurance, Hong Kong		19.4%
Hong Kong Exchanges and Clearing Ltd. Capital Markets, Hong Kong		7.0%
CK Hutchison Holdings Ltd. Industrial Conglomerates, Hong Kong		4.5%
Link REIT Equity Real Estate Investment Trusts (REITs), Hong Kong		4.4%
Sun Hung Kai Properties Ltd. Real Estate Management & Development, Hong Kong		3.9%
Hong Kong and China Gas Co. Ltd. Gas Utilities, Hong Kong		3.7%
CK Asset Holdings Ltd. Real Estate Management & Development, Hong Kong		3.5%
CLP Holdings Ltd. Electric Utilities, Hong Kong		3.3%
Hang Seng Bank Ltd. Banks, Hong Kong		3.0%
Galaxy Entertainment Group Ltd. Hotels, Restaurants & Leisure, Macau		2.5%

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



franklintempleton.com	Semiannual Report	49

FRANKLIN FTSE HONG KONG ETF

Performance Summary as of September 30, 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 9/30/19



	Cumulative Total Return¹				Average Annual Total Return¹
	Based on NAV²		Based on market price³		Based on NAV²		Based on market price³
6-Month		-10.63%		-10.98%		-10.63%		-10.98%
1-Year		-3.07%		-3.15%		-3.07%		-3.15%
Since Inception (11/2/17)		-2.71%		-2.60%		-1.43%		-1.37%

See page 51 for Performance Summary footnotes.



50	Semiannual Report	franklintempleton.com

FRANKLIN FTSE HONG KONG ETF

PERFORMANCE SUMMARY

Distributions(4/1/19–9/30/19)

Net Investment
Income

$0.350381

Total Annual Operating Expenses⁴

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.



franklintempleton.com	Semiannual Report	51

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 4/1/19		Ending Account Value 9/30/19		Expenses Paid During Period 4/1/19–9/30/19^1,2		Ending Account Value 9/30/19		Expenses Paid During Period 4/1/19–9/30/19^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	893.70	$	0.43	$	1,024.55	$	0.46		0.09	%

2. Reflects expenses after fee waivers and expense reimbursements.



52	Semiannual Report	franklintempleton.com

Franklin FTSE India ETF

This semiannual report for Franklin FTSE India ETF covers the period ended September 30, 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 thesix-month period, the Fund posted cumulative total returns of -4.80% based on market price and -5.33% based on net asset value. In comparison, the FTSE India Capped Index posted a -5.21% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 55.

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


Top 10 Sectors/Industries

9/30/19

	% of Total Net Assets
IT Services		16.6%
Oil, Gas & Consumable Fuels		15.9%
Thrifts & Mortgage Finance		9.7%
Banks		7.0%
Automobiles		5.5%
Pharmaceuticals		4.0%
Household Products		3.7%
Chemicals		3.3%
Insurance		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 217.



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FRANKLIN FTSE INDIA ETF


Top 10 Holdings

9/30/19

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		9.0%
Infosys Ltd. IT Services, India		7.9%
Tata Consultancy Services Ltd. IT Services, India		5.0%
Hindustan Unilever Ltd. Household Products, India		3.7%
Axis Bank Ltd. Banks, India		3.3%
Maruti Suzuki India Ltd. Automobiles, India		2.1%
ITC Ltd. Tobacco, India		2.0%
Bajaj Finance Ltd. Consumer Finance, India		1.9%
Bharti Airtel Ltd. Wireless Telecommunication Services, India		1.6%

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



54	Semiannual Report	franklintempleton.com

FRANKLIN FTSE INDIA ETF

Performance Summary as of September 30, 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 9/30/19

Cumulative Total Return¹

Average Annual Total Return¹

Based on
NAV²

Based on

market price³

Based on
NAV²

Based on

market price³

6-Month

-5.33%

-4.80%

-5.33%

-4.80%

1-Year

+2.82%

+3.61%

+2.82%

+3.61%

Since Inception (2/6/18)

-5.92%

-5.11%

-3.64%

-3.13%

See page 56 for Performance Summary footnotes.



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FRANKLIN FTSE INDIA ETF

PERFORMANCE SUMMARY

Distributions(4/1/19–9/30/19)

Net Investment
Income

$0.175375

Total Annual Operating Expenses⁴

0.19%

All investments involve risks, including possible loss of principal. Stock prices fluctuate, sometimes rapidly and dramatically, due to factors affecting individual companies, particular industries or sectors, or general market conditions. 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.



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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 4/1/19		Ending Account Value 9/30/19		Expenses Paid During Period 4/1/19–9/30/19^1,2		Ending Account Value 9/30/19		Expenses Paid During Period 4/1/19–9/30/19^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	946.70	$	0.92	$	1,024.05	$	0.96		0.19	%

2. Reflects expenses after fee waivers and expense reimbursements.



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Franklin FTSE Italy ETF

This semiannual report for Franklin FTSE Italy ETF covers the period ended September 30, 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 thesix-month period, the Fund posted cumulative total returns of +2.74% based on market price and +3.01% based on net asset value. In comparison, the FTSE Italy Capped Index posted a +2.65% 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 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


Top 10 Sectors/Industries

9/30/19

	% of Total Net Assets
Banks		22.6%
Electric Utilities		17.9%
Oil, Gas & Consumable Fuels		10.1%
Insurance		8.7%
Automobiles		8.2%
Gas Utilities		4.0%
Diversified Telecommunication Services		3.6%
Transportation Infrastructure		3.5%
Machinery		2.9%
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 222.



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FRANKLIN FTSE ITALY ETF


Top 10 Holdings

9/30/19

Company *Sector/Industry, Country*	% of Total Net Assets
Enel SpA Electric Utilities, Italy		15.1%
Eni SpA Oil, Gas & Consumable Fuels, Italy		10.1%
Intesa Sanpaolo SpA Banks, Italy		9.4%
UniCredit SpA Banks, Italy		7.0%
Assicurazioni Generali SpA Insurance, Italy		6.7%
Ferrari NV Automobiles, Italy		4.6%
Fiat Chrysler Automobiles NV Automobiles, United Kingdom		3.6%
Atlantia SpA Transportation Infrastructure, Italy		3.5%
Snam SpA Gas Utilities, Italy		3.2%
CNH Industrial NV Machinery, United Kingdom		2.9%

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 September 30, 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 9/30/19

Cumulative Total Return¹

Average Annual Total Return¹

Based on
NAV²

Based on

market price³

Based on
NAV²

Based on

market price³

6-Month

+3.01%

+2.74%

+3.01%

+2.74%

1-Year

+3.58%

+3.81%

+3.58%

+3.81%

Since Inception (11/2/17)

-3.98%

-3.99%

-2.10%

-2.11%

See page 61 for Performance Summary footnotes.



60	Semiannual Report	franklintempleton.com

FRANKLIN FTSE ITALY ETF

PERFORMANCE SUMMARY

Distributions(4/1/19–9/30/19)

Net Investment
Income

$0.671170

Total Annual Operating Expenses⁴

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.



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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 4/1/19		Ending Account Value 9/30/19		Expenses Paid During Period 4/1/19–9/30/19^1,2		Ending Account Value 9/30/19		Expenses Paid During Period 4/1/19–9/30/19^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	1,030.10	$	0.46	$	1,024.55	$	0.46		0.09	%

2. Reflects expenses after fee waivers and expense reimbursements.



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Franklin FTSE Japan ETF

This semiannual report for Franklin FTSE Japan ETF covers the period ended September 30, 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 thesix-month period, the Fund posted cumulative total returns of +4.15% based on market price and +3.61% based on net asset value. In comparison, the FTSE Japan Capped Index posted a +3.53% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 65.

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


Top 10 Sectors/Industries

9/30/19

	% of Total Net Assets
Automobiles		7.4%
Pharmaceuticals		5.9%
Banks		5.8%
Electronic Equipment, Instruments & Components		5.8%
Machinery		5.2%
Road & Rail		4.8%
Chemicals		4.5%
Wireless Telecommunication Services		4.3%
Trading Companies & Distributors		3.5%
Household Durables		3.4%

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 224.



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FRANKLIN FTSE JAPAN ETF


Top 10 Holdings

9/30/19

Company *Sector/Industry, Country*	% of Total Net Assets
Toyota Motor Corp. Automobiles, Japan		4.5%
Sony Corp. Household Durables, Japan		2.0%
SoftBank Group Corp. Wireless Telecommunication Services, Japan		1.7%
Mitsubishi UFJ Financial Group Inc. Banks, Japan		1.7%
Keyence Corp. Electronic Equipment, Instruments & Components, Japan		1.5%
Takeda Pharmaceutical Co. Ltd. Pharmaceuticals, Japan		1.4%
KDDI Corp. Wireless Telecommunication Services, Japan		1.2%
Honda Motor Co. Ltd. Automobiles, Japan		1.2%
Sumitomo Mitsui Financial Group Inc. Banks, Japan		1.2%
Shin-Etsu Chemical Co. Ltd. Chemicals, Japan		1.2%

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



64	Semiannual Report	franklintempleton.com

FRANKLIN FTSE JAPAN ETF

Performance Summary as of September 30, 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 9/30/19

Cumulative Total Return¹

Average Annual Total Return¹

Based on
NAV²

Based on

market price³

Based on
NAV²

Based on

market price³

6-Month

+3.61%

+4.15%

+3.61%

+4.15%

1-Year

-5.43%

-4.70%

-5.43%

-4.70%

Since Inception (11/2/17)

-1.82%

-1.07%

-0.96%

-0.56%

See page 66 for Performance Summary footnotes.



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FRANKLIN FTSE JAPAN ETF

PERFORMANCE SUMMARY

Distributions(4/1/19–9/30/19)

Net Investment
Income

$0.293796

Total Annual Operating Expenses⁴

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.



66	Semiannual Report	franklintempleton.com

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 4/1/19		Ending Account Value 9/30/19		Expenses Paid During Period 4/1/19–9/30/19^1,2		Ending Account Value 9/30/19		Expenses Paid During Period 4/1/19–9/30/19^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	1,036.10	$	0.46	$	1,024.55	$	0.46		0.09	%

2. Reflects expenses after fee waivers and expense reimbursements.



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Franklin FTSE Japan Hedged ETF

This semiannual report for Franklin FTSE Japan Hedged ETF covers the period ended September 30, 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 thesix-month, the Fund posted cumulative total returns of +3.07% based on market price and +2.16% based on net asset value. In comparison, the FTSE Japan Capped Hedged Index posted a +2.22% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 70.

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

9/30/19

	% of Total Net Assets
Automobiles		7.4%
Pharmaceuticals		5.9%
Banks		5.8%
Electronic Equipment, Instruments & Components		5.8%
Machinery		5.2%
Road & Rail		4.7%
Chemicals		4.4%
Wireless Telecommunication Services		4.3%
Trading Companies & Distributors		3.6%
Household Durables		3.4%

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 235.



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FRANKLIN FTSE JAPAN HEDGED ETF


Top 10 Holdings

9/30/19

Company *Sector/Industry, Country*	% of Total Net Assets
Toyota Motor Corp. Automobiles, Japan		4.5%
Sony Corp. Household Durables, Japan		2.0%
SoftBank Group Corp. Wireless Telecommunication Services, Japan		1.7%
Mitsubishi UFJ Financial Group Inc. Banks, Japan		1.7%
Keyence Corp. Electronic Equipment, Instruments & Components, Japan		1.5%
Takeda Pharmaceutical Co. Ltd. Pharmaceuticals, Japan		1.4%
Honda Motor Co. Ltd. Automobiles, Japan		1.2%
KDDI Corp. Wireless Telecommunication Services, Japan		1.2%
Sumitomo Mitsui Financial Group Inc. Banks, Japan		1.2%
Shin-Etsu Chemical Co. Ltd. Chemicals, 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?

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 September 30, 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 9/30/19

Cumulative Total Return¹

Average Annual Total Return¹

Based on
NAV²

Based on

market price³

Based on
NAV²

Based on

market price³

6-Month

+2.16%

+3.07%

+2.16%

+3.07%

1-Year

-8.14%

-7.39%

-8.14%

-7.39%

Since Inception (11/2/17)

-3.51%

-2.55%

-1.85%

-1.34%

See page 71 for Performance Summary footnotes.



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FRANKLIN FTSE JAPAN HEDGED ETF

PERFORMANCE SUMMARY

Total Annual Operating Expenses⁴

0.09%

All investments involve risks, including possible loss of principal. Stock prices fluctuate, sometimes rapidly and dramatically, due to factors affecting individual companies, particular industries or sectors, or general market conditions. 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.



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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 4/1/19		Ending Account Value 9/30/19		Expenses Paid During Period 4/1/19–9/30/19^1,2		Ending Account Value 9/30/19		Expenses Paid During Period 4/1/19–9/30/19^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	1,021.60	$	0.45	$	1,024.55	$	0.46		0.09	%

2. Reflects expenses after fee waivers and expense reimbursements.



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Franklin FTSE Latin America ETF

This semiannual report for Franklin FTSE Latin America ETF covers the period ended September 30, 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

During thesix-month period, the Fund posted cumulative total returns of +0.75% based on market price and +0.10% based on net asset value. In comparison, the FTSE Latin America Capped Index posted a +0.14% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 75.

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 better. A figure of 1.00 would indicate perfect correlation.


Top 10 Sectors/Industries

9/30/19

	% of Total Net Assets
Banks		24.5%
Oil, Gas & Consumable Fuels		9.5%
Metals & Mining		9.2%
Beverages		7.3%
Electric Utilities		5.4%
Food & Staples Retailing		4.4%
Capital Markets		3.7%
Multiline Retail		3.7%
Wireless Telecommunication Services		3.6%
Food Products		3.3%

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. 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 246.



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FRANKLIN FTSE LATIN AMERICA ETF


Top 10 Holdings

9/30/19

Company *Sector/Industry, Country*	% of Total Net Assets
Petroleo Brasileiro SA Oil, Gas & Consumable Fuels, Brazil		7.3%
Banco Bradesco SA Banks, Brazil		6.2%
Itau Unibanco Holding SA Banks, Brazil		6.0%
Vale SA Metals & Mining, Brazil		6.0%
B3 SA – Brasil Bolsa Balcao Capital Markets, Brazil		3.1%
America Movil SAB de CV, L Wireless Telecommunication Services, Mexico		3.1%
Ambev SA Beverages, Brazil		3.1%
Fomento Economico Mexicano SAB de CV Beverages, Mexico		2.9%
Wal-Mart de Mexico SAB de CV, V Food & Staples Retailing, Mexico		2.3%
Grupo Financiero Banorte SAB de CV Banks, Mexico		2.3%


Top 10 Countries

9/30/19

	% of Total Net Assets
Brazil		64.3%
Mexico		22.1%
Chile		8.1%
Colombia		3.7%
United States		1.2%
Peru		0.5%
Other Assets less Liabilities		0.2%

Thank you for your participation in Franklin FTSE Latin America ETF. We look forward to serving your future investment needs.

LOGO

Dina Ting, CFA


		Louis Hsu, CFA

		Portfolio Management Team



74	Semiannual Report	franklintempleton.com

FRANKLIN FTSE LATIN AMERICA ETF

Performance Summary as of September 30, 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 (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 9/30/19

Cumulative Total Return¹

Average Annual Total Return¹

Based on
NAV²

Based on

market price³

Based on
NAV²

Based on

market price³

6-Month

+0.10%

+0.75%

+0.10%

+0.75%

Since Inception (10/9/18)

+1.52%

+1.94%

+1.52%

+1.94%

See page 76 for Performance Summary footnotes.



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FRANKLIN FTSE LATIN AMERICA ETF

PERFORMANCE SUMMARY

Distributions(4/1/19–9/30/19)

Net Investment
Income

$0.459183

Total Annual Operating Expenses⁴

0.19%

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.



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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 Value 4/1/19		Ending Account Value 9/30/19		Expenses Paid During Period 4/1/19–9/30/19^1,2		Ending Account Value 9/30/19		Expenses Paid During Period 4/1/19–9/30/19^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	1,001.00	$	0.95	$	1,024.05	$	0.96		0.19	%

2. Reflects expenses after fee waivers and expense reimbursements.



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Franklin FTSE Mexico ETF

This semiannual report for Franklin FTSE Mexico ETF covers the period ended September 30, 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 thesix-month period, the Fund posted cumulative total returns of +0.50% based on market price and -0.46% based on net asset value. In comparison, the FTSE Mexico Capped Index posted a -0.49% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 80.

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


Top 10 Sectors/Industries

9/30/19

	% of Total Net Assets
Beverages		17.7%
Banks		17.6%
Wireless Telecommunication Services		14.0%
Food & Staples Retailing		10.8%
Transportation Infrastructure		7.6%
Metals & Mining		5.7%
Food Products		5.4%
Media		3.8%
Construction Materials		3.5%
Equity Real Estate Investment Trusts (REITs)		3.2%

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 251.



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FRANKLIN FTSE MEXICO ETF


Top 10 Holdings

9/30/19

Company *Sector/Industry, Country*	% of Total Net Assets
America Movil SAB de CV, L Wireless Telecommunication Services, Mexico		14.0%
Fomento Economico Mexicano SAB de CV Beverages, Mexico		13.2%
Wal-Mart de Mexico SAB de CV, V Food & Staples Retailing, Mexico		10.5%
Grupo Financiero Banorte SAB de CV Banks, Mexico		10.4%
Grupo Mexico SAB de CV, B Metals & Mining, Mexico		4.5%
Cemex SAB de CV Construction Materials, Mexico		3.6%
Grupo Elektra SAB de CV Banks, Mexico		3.0%
Fibra Uno Administracion SA de CV Equity Real Estate Investment Trusts (REITs), Mexico		3.0%
Grupo Televisa SA Media, Mexico		2.9%
Grupo Bimbo SAB de CV, A Food Products, Mexico		2.9%

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 September 30, 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 9/30/19



	Cumulative Total Return¹				Average Annual Total Return¹
	Based on NAV²		Based on market price³		Based on NAV²		Based on market price³
6-Month		-0.46%		+0.50%		-0.46%		+0.50%
1-Year		-13.99%		-13.78%		-13.99%		-13.78%
Since Inception (11/3/17)		-9.13%		-8.84%		-4.90%		-4.74%

See page 81 for Performance Summary footnotes.



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FRANKLIN FTSE MEXICO ETF

PERFORMANCE SUMMARY

Distributions(4/1/19–9/30/19)

Net Investment
Income

$0.309582

Total Annual Operating Expenses⁴

0.19%

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.



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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 4/1/19		Ending Account Value 9/30/19		Expenses Paid During Period 4/1/19–9/30/19^1,2		Ending Account Value 9/30/19		Expenses Paid During Period 4/1/19–9/30/19^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	995.40	$	0.95	$	1,024.05	$	0.96		0.19	%

2. Reflects expenses after fee waivers and expense reimbursements.



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Franklin FTSE Russia ETF

This semiannual report for Franklin FTSE Russia ETF covers the period ended September 30, 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 thesix-month period, the Fund posted cumulative total returns of +14.22% based on market price and +14.61% based on net asset value. In comparison, the FTSE Russia Capped Index posted a +14.53% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 85.

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


Top 10 Sectors/Industries

9/30/19

	% of Total Net Assets
Oil, Gas & Consumable Fuels		50.5%
Banks		18.2%
Metals & Mining		14.4%
Electric Utilities		5.0%
Wireless Telecommunication Services		3.1%
Food & Staples Retailing		2.5%
Capital Markets		2.3%
Chemicals		1.5%
Diversified Telecommunication Services		1.2%
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 253.



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FRANKLIN FTSE RUSSIA ETF


Top 10 Holdings

9/30/19

Company *Sector/Industry, Country*	% of Total Net Assets
LUKOIL PJSC Oil, Gas & Consumable Fuels, Russia		16.2%
Gazprom PJSC Oil, Gas & Consumable Fuels, Russia		16.0%
Sberbank of Russia PJSC Banks, Russia		15.7%
NovaTek PJSC Oil, Gas & Consumable Fuels, Russia		4.7%
MMC Norilsk Nickel PJSC Metals & Mining, Russia		3.8%
Tatneft PAO Oil, Gas & Consumable Fuels, Russia		3.7%
Surgutneftegas PJSC Oil, Gas & Consumable Fuels, Russia		3.0%
Rosneft PJSC Oil, Gas & Consumable Fuels, Russia		3.0%
Magnit PJSC Food & Staples Retailing, Russia		2.5%
Mobile TeleSystems PJSC Wireless Telecommunication Services, Russia		2.5%

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



84	Semiannual Report	franklintempleton.com

FRANKLIN FTSE RUSSIA ETF

Performance Summary as of September 30, 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 9/30/19

Cumulative Total Return¹

Average Annual Total Return¹

Based on
NAV²

Based on

market price³

Based on
NAV²

Based on

market price³

6-Month

+14.61%

+14.22%

+14.61%

+14.22%

1-Year

+16.25%

+16.59%

+16.25%

+16.59%

Since Inception (2/6/18)

+15.51%

+15.46%

+9.15%

+9.12%

See page 86 for Performance Summary footnotes.



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FRANKLIN FTSE RUSSIA ETF

PERFORMANCE SUMMARY

Distributions(4/1/19–9/30/19)

Net Investment
Income

$0.170992

Total Annual Operating Expenses⁴

0.19%

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.



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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 4/1/19		Ending Account Value 9/30/19		Expenses Paid During Period 4/1/19–9/30/19^1,2		Ending Account Value 9/30/19		Expenses Paid During Period 4/1/19–9/30/19^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	1,146.10	$	1.02	$	1,024.05	$	0.96		0.19	%

2. Reflects expenses after fee waivers and expense reimbursements.



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Franklin FTSE Saudi Arabia ETF

This semiannual report for Franklin FTSE Saudi Arabia ETF covers the period ended September 30, 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

During thesix-month period, the Fund posted cumulative total returns of -7.59% based on market price and -6.70% based on net asset value. In comparison, the FTSE Saudi Arabia Capped Index posted a -6.67% total return for the same period.² 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 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 better. A figure of 1.00 would indicate perfect correlation. Our


Top 10 Sectors/Industries

9/30/19

	% of Total Net Assets
Banks		37.4%
Chemicals		24.3%
Diversified Telecommunication Services		10.9%
Food Products		3.9%
Metals & Mining		3.3%
Electric Utilities		3.1%
Construction Materials		2.9%
Wireless Telecommunication Services		2.4%
Specialty Retail		2.1%
Insurance		2.1%

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.

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 255.



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FRANKLIN FTSE SAUDI ARABIA ETF


Top 10 Holdings

9/30/19

Company *Sector/Industry, Country*	% of Total Net Assets
Saudi Basic Industries Corp. Chemicals, Saudi Arabia		14.2%
Al-Rajhi Bank Banks, Saudi Arabia		12.9%
Saudi Telecom Co. Diversified Telecommunication Services, Saudi Arabia		10.9%
National Commercial Bank Banks, Saudi Arabia		10.3%
Riyad Bank Banks, Saudi Arabia		4.4%
Samba Financial Group Banks, Saudi Arabia		4.0%
Saudi Arabian Mining Co. Metals & Mining, Saudi Arabia		3.3%
Saudi Electricity Co. Electric Utilities, Saudi Arabia		3.1%
Saudi Arabian Fertilizer Co. Chemicals, Saudi Arabia		3.1%
Alinma Bank Banks, Saudi Arabia		2.9%

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 September 30, 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 (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 9/30/19

Cumulative Total Return¹

Average Annual Total Return¹

Based on
NAV²

Based on

market price³

Based on
NAV²

Based on

market price³

6-Month

-6.70%

-7.59%

-6.70%

-7.59%

Since Inception (10/9/18)

+5.31%

+5.99%

+5.31%

+5.99%

See page 91 for Performance Summary footnotes.



90	Semiannual Report	franklintempleton.com

FRANKLIN FTSE SAUDI ARABIA ETF

PERFORMANCE SUMMARY

Distributions(4/1/19–9/30/19)

Net Investment
Income

$0.468494

Total Annual Operating Expenses⁴

0.39%

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.



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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 Value 4/1/19		Ending Account Value 9/30/19		Expenses Paid During Period 4/1/19–9/30/19^1,2		Ending Account Value 9/30/19		Expenses Paid During Period 4/1/19–9/30/19^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	933.00	$	1.88	$	1,023.05	$	1.97		0.39	%

2. Reflects expenses after fee waivers and expense reimbursements.



92	Semiannual Report	franklintempleton.com

Franklin FTSE South Africa ETF

This semiannual report for Franklin FTSE South Africa ETF covers the period ended September 30, 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

During thesix-month period, the Fund posted cumulative total returns of -6.82% based on market price and -6.50% based on net asset value. In comparison, the FTSE/JSE South Africa Capped Index posted a -6.44% 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/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. A figure of 1.00 would indicate perfect correlation.


Top 10 Sectors/Industries

9/30/19

	% of Total Net Assets
Internet & Direct Marketing Retail		19.2%
Banks		12.4%
Metals & Mining		11.1%
Diversified Financial Services		9.4%
Insurance		8.3%
Food & Staples Retailing		7.3%
Wireless Telecommunication Services		6.1%
Equity Real Estate Investment Trusts (REITs)		4.9%
Chemicals		3.5%
Specialty Retail		3.4%

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.

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 257.



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FRANKLIN FTSE SOUTH AFRICA ETF


Top 10 Holdings

9/30/19

Company *Sector/Industry, Country*	% of Total Net Assets
Naspers Ltd., N Internet & Direct Marketing Retail, South Africa		19.2%
Standard Bank Group Ltd. Banks, South Africa		5.6%
FirstRand Ltd. Diversified Financial Services, South Africa		5.0%
MTN Group Ltd. Wireless Telecommunication Services, South Africa		4.4%
Sasol Ltd. Chemicals, South Africa		3.5%
Sanlam Ltd. Insurance, South Africa		3.3%
AngloGold Ashanti Ltd. Metals & Mining, South Africa		3.0%
Absa Group Ltd. Banks, South Africa		2.8%
Bid Corp. Ltd. Food & Staples Retailing, South Africa		2.7%
Old Mutual Ltd. Insurance, South Africa		2.3%

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



94	Semiannual Report	franklintempleton.com

FRANKLIN FTSE SOUTH AFRICA ETF

Performance Summary as of September 30, 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 (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 9/30/19

Cumulative Total Return¹

Average Annual Total Return¹

Based on
NAV²

Based on

market price³

Based on
NAV²

Based on

market price³

6-Month

-6.50%

-6.82%

-6.50%

-6.82%

Since Inception (10/10/18)

+2.16%

+2.20%

+2.16%

+2.20%

See page 96 for Performance Summary footnotes.



franklintempleton.com	Semiannual Report	95

FRANKLIN FTSE SOUTH AFRICA ETF

PERFORMANCE SUMMARY

Distributions(4/1/19–9/30/19)

Net Investment
Income

$0.375950

Total Annual Operating Expenses⁴

0.19%

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.



96	Semiannual Report	franklintempleton.com

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 Value 4/1/19		Ending Account Value 9/30/19		Expenses Paid During Period 4/1/19–9/30/19^1,2		Ending Account Value 9/30/19		Expenses Paid During Period 4/1/19–9/30/19^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	935.00	$	0.92	$	1,024.05	$	0.96		0.19	%

2. Reflects expenses after fee waivers and expense reimbursements.



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Franklin FTSE South Korea ETF

This semiannual report for Franklin FTSE South Korea ETF covers the period ended September 30, 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 thesix-month period, the Fund posted cumulative total returns of -6.65% based on market price and -7.12% based on net asset value. In comparison, the FTSE South Korea Capped Index posted a -7.26% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 100.

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


Top 10 Sectors/Industries

9/30/19

	% of Total Net Assets
Technology Hardware, Storage & Peripherals		20.6%
Banks		9.2%
Semiconductors & Semiconductor Equipment		6.6%
Automobiles		5.5%
Interactive Media & Services		4.3%
Industrial Conglomerates		3.8%
Chemicals		3.7%
Auto Components		3.5%
Metals & Mining		3.5%
Electronic Equipment, Instruments & Components		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 260.



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FRANKLIN FTSE SOUTH KOREA ETF


Top 10 Holdings

9/30/19

Company *Sector/Industry, Country*	% of Total Net Assets
Samsung Electronics Co. Ltd. Technology Hardware, Storage & Peripherals, South Korea		20.6%
SK Hynix Inc. Semiconductors & Semiconductor Equipment, South Korea		6.6%
Hyundai Motor Co. Automobiles, South Korea		3.7%
Naver Corp. Interactive Media & Services, South Korea		3.2%
Shinhan Financial Group Co. Ltd. Banks, South Korea		2.9%
KB Financial Group Inc. Banks, South Korea		2.6%
Hyundai Mobis Co. Ltd. Auto Components, South Korea		2.5%
Celltrion Inc. Biotechnology, South Korea		2.5%
POSCO Metals & Mining, South Korea		2.4%
LG Chem Ltd. Chemicals, South Korea		2.3%

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



franklintempleton.com	Semiannual Report	99

FRANKLIN FTSE SOUTH KOREA ETF

Performance Summary as of September 30, 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 9/30/19



	Cumulative Total Return¹				Average Annual Total Return¹
	Based on NAV²		Based on market price³		Based on NAV²		Based on market price³
6-Month		-7.12%		-6.65%		-7.12%		-6.65%
1-Year		-15.58%		-15.28%		-15.58%		-15.28%
Since Inception (11/2/17)		-21.33%		-21.48%		-11.80%		-11.90%

See page 101 for Performance Summary footnotes.



100	Semiannual Report	franklintempleton.com

FRANKLIN FTSE SOUTH KOREA ETF

PERFORMANCE SUMMARY

Distributions(4/1/19–9/30/19)

Net Investment
Income

$0.052138

Total Annual Operating Expenses⁴

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.



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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 4/1/19		Ending Account Value 9/30/19		Expenses Paid During Period 4/1/19–9/30/19^1,2		Ending Account Value 9/30/19		Expenses Paid During Period 4/1/19–9/30/19^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	928.80	$	0.43	$	1,024.55	$	0.46		0.09	%

2. Reflects expenses after fee waivers and expense reimbursements.



102	Semiannual Report	franklintempleton.com

Franklin FTSE Switzerland ETF

This semiannual report for Franklin FTSE Switzerland ETF covers the period ended September 30, 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 thesix-month period, the Fund posted cumulative total returns of +8.79% based on market price and +8.72% based on net asset value. In comparison, the FTSE Switzerland Capped Index posted a +8.41% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 105.

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


Top 10 Sectors/Industries

9/30/19

	% of Total Net Assets
Pharmaceuticals		29.4%
Food Products		22.0%
Insurance		9.6%
Capital Markets		7.9%
Chemicals		4.8%
Health Care Equipment & Supplies		4.2%
Textiles, Apparel & Luxury Goods		4.0%
Electrical Equipment		3.0%
Life Sciences Tools & Services		2.2%
Construction Materials		2.2%

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 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 264.



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FRANKLIN FTSE SWITZERLAND ETF


Top 10 Holdings

9/30/19

Company *Sector/Industry, Country*	% of Total Net Assets
Nestle SA Food Products, Switzerland		20.3%
Roche Holding AG Pharmaceuticals, Switzerland		15.2%
Novartis AG Pharmaceuticals, Switzerland		13.5%
Zurich Insurance Group AG Insurance, Switzerland		4.5%
UBS Group AG Capital Markets, Switzerland		3.3%
Compagnie Financiere Richemont SA Textiles, Apparel & Luxury Goods, Switzerland		3.1%
ABB Ltd. Electrical Equipment, Switzerland		3.0%
Credit Suisse Group AG Capital Markets, Switzerland		2.6%
Swiss Re AG Insurance, Switzerland		2.5%
Alcon Inc. Health Care Equipment & Supplies, Switzerland		2.4%

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



104	Semiannual Report	franklintempleton.com

FRANKLIN FTSE SWITZERLAND ETF

Performance Summary as of September 30, 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 9/30/19

Cumulative Total Return¹

Average Annual Total Return¹

Based on
NAV²

Based on

market price³

Based on
NAV²

Based on

market price³

6-Month

+8.72%

+8.79%

+8.72%

+8.79%

1-Year

+10.95%

+11.64%

+10.95%

+11.64%

Since Inception (2/6/18)

+13.18%

+13.45%

+7.81%

+7.96%

See page 106 for Performance Summary footnotes.



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FRANKLIN FTSE SWITZERLAND ETF

PERFORMANCE SUMMARY

Distributions(4/1/19–9/30/19)

Net Investment
Income

$0.303216

Total Annual Operating Expenses⁴

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.



106	Semiannual Report	franklintempleton.com

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 4/1/19		Ending Account Value 9/30/19		Expenses Paid During Period 4/1/19–9/30/19^1,2		Ending Account Value 9/30/19		Expenses Paid During Period 4/1/19–9/30/19^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	1,087.20	$	0.47	$	1,024.55	$	0.46		0.09	%

2. Reflects expenses after fee waivers and expense reimbursements.



franklintempleton.com	Semiannual Report	107

Franklin FTSE Taiwan ETF

This semiannual report for Franklin FTSE Taiwan ETF covers the period ended September 30, 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 thesix-month period, the Fund posted cumulative total returns of +4.61% based on market price and +4.13% based on net asset value. In comparison, the FTSE Taiwan Capped Index posted a +4.21% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 110.

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


Top 10 Sectors/Industries

9/30/19

	% of Total Net Assets
Semiconductors & Semiconductor Equipment		29.2%
Banks		14.1%
Electronic Equipment, Instruments & Components		13.5%
Chemicals		7.7%
Technology Hardware, Storage & Peripherals		7.2%
Insurance		6.1%
Diversified Telecommunication Services		2.7%
Food Products		2.3%
Textiles, Apparel & Luxury Goods		1.9%
Construction Materials		1.9%

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 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 266.



108	Semiannual Report	franklintempleton.com

FRANKLIN FTSE TAIWAN ETF


Top 10 Holdings

9/30/19

Company *Sector/Industry, Country*	% of Total Net Assets
Taiwan Semiconductor Manufacturing Co. Ltd. Semiconductors & Semiconductor Equipment, Taiwan		20.7%
Hon Hai Precision Industry Co. Ltd. Electronic Equipment, Instruments & Components, Taiwan		5.5%
MediaTek Inc. Semiconductors & Semiconductor Equipment, Taiwan		3.5%
Formosa Plastics Corp. Chemicals, Taiwan		2.9%
Largan Precision Co. Ltd. Electronic Equipment, Instruments & Components, Taiwan		2.9%
Chunghwa Telecom Co. Ltd. Diversified Telecommunication Services, Taiwan		2.7%
Nan Ya Plastics Corp. Chemicals, Taiwan		2.5%
CTBC Financial Holding Co. Ltd. Banks, Taiwan		2.4%
Uni-President Enterprises Corp. Food Products, Taiwan		2.3%
Fubon Financial Holding Co. Ltd. Insurance, Taiwan		2.1%

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



franklintempleton.com	Semiannual Report	109

FRANKLIN FTSE TAIWAN ETF

Performance Summary as of September 30, 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 9/30/19

Cumulative Total Return¹

Average Annual Total Return¹

Based on
NAV²

Based on

market price³

Based on
NAV²

Based on

market price³

6-Month

+4.13%

+4.61%

+4.13%

+4.61%

1-Year

-2.24%

-1.86%

-2.24%

-1.86%

Since Inception (11/2/17)

+1.66%

+2.17%

+0.87%

+1.13%

See page 111 for Performance Summary footnotes.



110	Semiannual Report	franklintempleton.com

FRANKLIN FTSE TAIWAN ETF

PERFORMANCE SUMMARY

Distributions(4/1/19–9/30/19)

Net Investment
Income

$0.009296

Total Annual Operating Expenses⁴

0.19%

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.



franklintempleton.com	Semiannual Report	111

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 4/1/19		Ending Account Value 9/30/19		Expenses Paid During Period 4/1/19–9/30/19^1,2		Ending Account Value 9/30/19		Expenses Paid During Period 4/1/19–9/30/19^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	1,041.30	$	0.97	$	1,024.05	$	0.96		0.19	%

2. Reflects expenses after fee waivers and expense reimbursements.



112	Semiannual Report	franklintempleton.com

Franklin FTSE United Kingdom ETF

This semiannual report for Franklin FTSE United Kingdom ETF covers the period ended September 30, 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 thesix-month period, the Fund posted cumulative total returns of -1.31% based on market price and -1.23% based on net asset value. In comparison, the FTSE UK Capped Index posted a -1.14% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 115.

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


Top 10 Sectors/Industries

9/30/19

	% of Total Net Assets
Oil, Gas & Consumable Fuels		15.2%
Banks		11.3%
Pharmaceuticals		9.4%
Metals & Mining		7.4%
Insurance		4.7%
Tobacco		4.4%
Beverages		4.3%
Hotels, Restaurants & Leisure		3.6%
Professional Services		3.5%
Capital Markets		3.2%

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 269.



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FRANKLIN FTSE UNITED KINGDOM ETF


Top 10 Holdings

9/30/19

Company *Sector/Industry, Country*	% of Total Net Assets
Royal Dutch Shell PLC, A, B Oil, Gas & Consumable Fuels, United Kingdom		9.9%
HSBC Holdings PLC Banks, United Kingdom		6.5%
BP PLC Oil, Gas & Consumable Fuels, United Kingdom		5.3%
AstraZeneca PLC Pharmaceuticals, United Kingdom		4.9%
GlaxoSmithKline PLC Pharmaceuticals, United Kingdom		4.4%
Diageo PLC Beverages, United Kingdom		4.0%
British American Tobacco PLC Tobacco, United Kingdom		3.5%
Unilever PLC Personal Products, United Kingdom		2.7%
Rio Tinto PLC Metals & Mining, United Kingdom		2.4%
Vodafone Group PLC Wireless Telecommunication Services, United Kingdom		2.2%

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



114	Semiannual Report	franklintempleton.com

FRANKLIN FTSE UNITED KINGDOM ETF

Performance Summary as of September 30, 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 9/30/19

Cumulative Total Return¹

Average Annual Total Return¹

Based on
NAV²

Based on

market price³

Based on
NAV²

Based on

market price³

6-Month

-1.23%

-1.31%

-1.23%

-1.31%

1-Year

-2.64%

-2.48%

-2.64%

-2.48%

Since Inception (11/2/17)

+0.04%

+0.12%

+0.02%

+0.06%

See page 116 for Performance Summary footnotes.



franklintempleton.com	Semiannual Report	115

FRANKLIN FTSE UNITED KINGDOM ETF

PERFORMANCE SUMMARY

Distributions(4/1/19–9/30/19)

Net Investment
Income

$0.530362

Total Annual Operating Expenses⁴

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.



116	Semiannual Report	franklintempleton.com

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 4/1/19		Ending Account Value 9/30/19		Expenses Paid During Period 4/1/19–9/30/19^1,2		Ending Account Value 9/30/19		Expenses Paid During Period 4/1/19–9/30/19^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	987.70	$	0.45	$	1,024.55	$	0.46		0.09	%

2. Reflects expenses after fee waivers and expense reimbursements.



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FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin FTSE Asia ex Japan ETF


	Six Months Ended September 30, 2019 (unaudited)			Year Ended March 31,
	Six Months Ended September 30, 2019 (unaudited)			2019			2018^a

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

Net asset value, beginning of period	$	21.86		$	23.63		$	23.64


Income from investment operations^b:

Net investment income^c		0.38			0.51			0.04

Net realized and unrealized gains (losses)		(1.49	)		(1.82	)		(0.05	)


Total from investment operations		(1.11	)		(1.31	)		(0.01	)


Less distributions from net investment income		(0.12	)		(0.46	)		—


Net asset value, end of period	$	20.63		$	21.86		$	23.63


Total return^d		(5.07)%			(5.34)%			(0.04)%

Ratios to average net assets^e

Total expenses		0.19%			0.19%			0.19%

Net investment income		3.61%			2.34%			1.06%

Supplemental data

Net assets, end of period (000’s)		$16,502			$17,488			$9,451

Portfolio turnover rate^f		6.43%			7.11%			0.96%

Portfolio turnover rate excluding portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely or in part for cash^f,g		6.43%			—%			—%

^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.

^gEffective September 30, 2019.



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

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, September 30, 2019 (unaudited)

Franklin FTSE Asia ex Japan ETF



		Industry		Shares		Value
	Common Stocks and Other Equity Interests 98.5%
	Cambodia 0.0%^†
	NagaCorp Ltd.		Hotels, Restaurants & Leisure		4,000	$	6,256

	China 36.8%
	360 Security Technology Inc., A		Software		200		658
a	3SBio Inc.		Biotechnology		4,000		6,633
a	51job Inc., ADR		Professional Services		80		5,920
a	58.com Inc., ADR		Interactive Media & Services		342		16,864
	AAC Technologies Holdings Inc.		Electronic Equipment, Instruments & Components		2,000		10,588
	AECC Aero-Engine Control Co. Ltd.		Aerospace & Defense		200		382
	AECC Aviation Power Co. Ltd., A		Aerospace & Defense		400		1,225
	Agile Group Holdings Ltd.		Real Estate Management & Development		4,000		4,858
	Agricultural Bank of China Ltd., A		Banks		17,800		8,624
	Agricultural Bank of China Ltd., H		Banks		108,000		42,294
	Aier Eye Hospital Group Co. Ltd.		Health Care Providers & Services		400		1,987
	Air China Ltd., A		Airlines		800		896
	Air China Ltd., H		Airlines		4,000		3,521
	Aisino Co. Ltd., A		Software		400		1,173
a	Alibaba Group Holding Ltd., ADR		Internet & Direct Marketing Retail		4,954		828,457
a	Alibaba Health Information Technology Ltd.		Health Care Technology		12,000		10,486
a	Alpha Group		Leisure Equipment & Products		200		171
a	Aluminum Corp. of China Ltd., A		Metals & Mining		1,800		887
a	Aluminum Corp. of China Ltd., H		Metals & Mining		12,000		3,781
	An Hui Wenergy Co. Ltd.		Independent Power and Renewable Electricity Producers		600		366
	Angang Steel Co. Ltd.		Metals & Mining		1,000		433
	Angang Steel Co. Ltd., H		Metals & Mining		5,200		1,897
	Angel Yeast Co. Ltd., A		Food Products		200		758
	Anhui Anke Biotechnology Group Co. Ltd.		Pharmaceuticals		200		422
	Anhui Conch Cement Co. Ltd., A		Construction Materials		600		3,473
	Anhui Conch Cement Co. Ltd., H		Construction Materials		4,000		23,752
	Anhui Expressway Co. Ltd., H		Transportation Infrastructure		4,000		2,235
	Anhui Gujing Distillery Co. Ltd., B		Beverages		400		3,361
a	Anhui Jianghuai Automobile Group Corp. Ltd., A		Automobiles		400		296
	Anhui Xinhua Media Co. Ltd., A		Distributors		200		152
	Anhui Zhongding Sealing Parts Co. Ltd.		Auto Components		200		243
	Anta Sports Products Ltd.		Textiles, Apparel & Luxury Goods		4,000		33,089
a	Anxin Trust Co. Ltd.		Capital Markets		800		528
a	Autohome Inc., ADR		Interactive Media & Services		194		16,127
	Avary Holding Shenzhen Co. Ltd., A		Electronic Equipment, Instruments & Components		200		1,124
	AVIC Aircraft Co. Ltd.		Aerospace & Defense		400		871
	Avic Capital Co. Ltd., A		Diversified Financial Services		1,200		785
	AVIC Electromechanical Systems Co. Ltd.		Aerospace & Defense		600		547
	Avic Heavy Machinery Co. Ltd., A		Machinery		200		289
	AVIC Jonhon Optronic Technology Co. Ltd.		Electronic Equipment, Instruments & Components		200		1,153
a	AVIC Shenyang Aircraft Co. Ltd., A		Aerospace & Defense		200		868
	AviChina Industry & Technology Co. Ltd., H		Aerospace & Defense		8,000		3,929
	BAIC Motor Corp. Ltd., H		Automobiles		8,000		4,939
a	Baidu Inc., ADR		Interactive Media & Services		962		98,855
	Bank of Beijing Co. Ltd., A		Banks		3,200		2,402
	Bank of Changsha Co. Ltd., A		Banks		600		723
	Bank of Chengdu Co. Ltd., A		Banks		200		228
	Bank of China Ltd., A		Banks		9,200		4,612
	Bank of China Ltd., H		Banks		266,000		104,508
	Bank of Communications Co. Ltd., A		Banks		6,000		4,579
	Bank of Communications Co. Ltd., H		Banks		24,000		15,675



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FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin FTSE Asia ex Japan ETF(continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	China (continued)
	Bank of Guiyang Co. Ltd.		Banks		400	$	477
	Bank of Hangzhou Co. Ltd.		Banks		400		473
	Bank of Jiangsu Co. Ltd., A		Banks		600		564
	Bank of Nanjing Co. Ltd., A		Banks		1,400		1,684
	Bank of Ningbo Co. Ltd., A		Banks		800		2,824
	Bank of Qingdao Co. Ltd., A		Banks		200		161
	Bank of Shanghai Co. Ltd., A		Banks		2,180		2,854
	Bank of Zhengzhou Co. Ltd.		Banks		400		262
	Baoshan Iron & Steel Co. Ltd., A		Metals & Mining		2,800		2,317
	BBMG Corp., A		Construction Materials		1,000		465
	BBMG Corp., H		Construction Materials		8,000		2,296
a	BeiGene Ltd., ADR		Biotechnology		116		14,205
	Beijing Capital Development Co. Ltd., A		Real Estate Management & Development		400		455
	Beijing Capital International Airport Co. Ltd.		Transportation Infrastructure		8,000		6,827
	Beijing Dabeinong Technology Group Co. Ltd.		Food Products		600		384
	Beijing Enlight Media Co. Ltd.		Entertainment		400		524
	Beijing Enterprises Holdings Ltd.		Gas Utilities		2,000		9,197
	Beijing Enterprises Water Group Ltd.		Water Utilities		20,000		10,230
	Beijing Jingneng Clean Energy Co. Ltd., H		Independent Power and Renewable Electricity Producers		4,000		663
	Beijing Jingyuntong Technology Co. Ltd., A		Semiconductors & Semiconductor Equipment		400		170
a	Beijing Kunlun Tech Co. Ltd.		Entertainment		200		343
a	Beijing Lanxum Technology Co. Ltd.		IT Services		200		254
	Beijing New Building Materials PLC		Building Products		200		504
	Beijing North Star Co. Ltd., A		Real Estate Management & Development		400		185
	Beijing North Star Co. Ltd., H		Real Estate Management & Development		4,000		1,204
	Beijing Orient National Communication Science & Technology Co. Ltd.		Software		200		359
	Beijing Oriental Yuhong Waterproof Technology Co. Ltd.		Construction Materials		200		589
	Beijing Originwater Technology Co. Ltd.		Commercial Services & Supplies		400		376
a	Beijing Philisense Technology Co. Ltd.		IT Services		400		219
	Beijing Sanju Environmental Protection and New Material Co. Ltd.		Chemicals		200		174
	Beijing Shiji Information Technology Co. Ltd.		Software		200		1,105
	Beijing Shunxin Agriculture Co. Ltd., A		Beverages		200		1,461
	Beijing SL Pharmaceutical Co. Ltd.		Biotechnology		200		350
a	Beijing Teamsun Technology Co. Ltd., A		IT Services		200		309
	Beijing Tiantan Biological Products Corp. Ltd., A		Biotechnology		200		795
	Beijing Tongrentang Co. Ltd., A		Pharmaceuticals		200		753
a	Beijing Ultrapower Software Co. Ltd.		IT Services		400		198
	Beijing Yanjing Brewery Co. Ltd.		Beverages		400		325
	Beijing Zhong Ke San Huan High-Tech Co. Ltd.		Electronic Equipment, Instruments & Components		200		265
	Bengang Steel Plates Co. Ltd., B		Metals & Mining		1,600		414
	Better Life Commercial Chain Share Co. Ltd.		Food & Staples Retailing		200		209
a	Bilibili Inc., ADR		Entertainment		186		2,626
	Bluedon Information Security Technology Co. Ltd.		Software		200		160
	Bluefocus Intelligent Communications Group Co. Ltd.		Media		400		332
	Bluestar Adisseo Co., A		Chemicals		200		290
	BOE Technology Group Co. Ltd.		Electronic Equipment, Instruments & Components		2,800		1,036
	BOE Technology Group Co. Ltd.		Electronic Equipment, Instruments & Components		5,200		2,731



120	Semiannual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin FTSE Asia ex Japan ETF(continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	China (continued)
	Bright Dairy & Food Co. Ltd., A		Food Products		200	$	293
	Brilliance China Automotive Holdings Ltd.		Automobiles		8,000		8,593
	BTG Hotels Group Co. Ltd., A		Hotels, Restaurants & Leisure		200		470
	BYD Co. Ltd.		Automobiles		200		1,366
	BYD Co. Ltd., H		Automobiles		2,000		9,988
	BYD Electronic International Co. Ltd.		Communications Equipment		3,000		4,493
	Caitong Securities Co. Ltd., A		Capital Markets		200		279
	Camel Group Co. Ltd., A		Electrical Equipment		200		255
a	CAR Inc.		Road & Rail		2,000		1,544
	CECEP Solar Energy Co. Ltd.		Semiconductors & Semiconductor Equipment		800		353
	CECEP Wind-Power Corp.		Independent Power and Renewable Electricity Producers		400		136
	Central China Securities Co. Ltd., A		Capital Markets		600		418
	Central China Securities Co. Ltd., H		Capital Markets		2,000		395
	CGN Power Co. Ltd., H		Independent Power and Renewable Electricity Producers		38,000		9,598
	Changjiang Securities Co. Ltd.		Capital Markets		600		588
a	Changyuan Group Ltd., A		Electrical Equipment		200		178
	Chaozhou Three-Circle Group Co. Ltd.		Electronic Equipment, Instruments & Components		200		560
	Chengdu Xingrong Environment Co. Ltd.		Water Utilities		800		537
a	China Aerospace Times Electronics Co. Ltd., A		Aerospace & Defense		400		338
	China Agri-Industries Holdings Ltd.		Food Products		8,000		2,602
	China Aoyuan Group Ltd.		Real Estate Management & Development		4,000		4,531
	China Avic Avionics Equipment Co. Ltd., A		Aerospace & Defense		200		398
	China Baoan Group Co. Ltd.		Industrial Conglomerates		200		124
a	China Biologic Products Holdings Inc.		Biotechnology		90		10,302
	China Bluechemical Ltd.		Chemicals		8,000		1,929
a	China Calxon Group Co. Ltd.		Real Estate Management & Development		200		180
	China Cinda Asset Management Co. Ltd., H		Capital Markets		32,000		6,286
	China CITIC Bank Corp. Ltd., A		Banks		800		632
	China CITIC Bank Corp. Ltd., H		Banks		34,000		18,129
	China Coal Energy Co. Ltd., A		Oil, Gas & Consumable Fuels		600		413
	China Coal Energy Co. Ltd., H		Oil, Gas & Consumable Fuels		8,000		3,255
	China Communications Construction Co. Ltd., A		Construction & Engineering		600		849
	China Communications Construction Co. Ltd., H		Construction & Engineering		16,000		12,511
	China Communications Services Corp. Ltd.		Construction & Engineering		8,000		4,531
	China Conch Venture Holdings Ltd.		Machinery		6,000		22,196
	China Construction Bank Corp., A		Banks		1,600		1,566
	China Construction Bank Corp., H		Banks		324,000		247,152
a	China COSCO Holdings Co. Ltd., A		Marine		800		533
	China CYTS Tours Holding Co. Ltd., A		Hotels, Restaurants & Leisure		200		339
a	China Eastern Airlines Corp. Ltd., A		Airlines		1,200		870
a	China Eastern Airlines Corp. Ltd., H		Airlines		4,000		1,944
	China Enterprise Co. Ltd., A		Real Estate Management & Development		600		381
	China Everbright Bank Co. Ltd., A		Banks		6,200		3,421
	China Everbright Bank Co. Ltd., H		Banks		10,000		4,261
	China Everbright International Ltd.		Commercial Services & Supplies		11,703		9,017
	China Everbright Ltd.		Capital Markets		4,000		4,679
a	China Evergrande Group		Real Estate Management & Development		8,000		17,042
	China Film Co. Ltd., A		Entertainment		200		433
	China Foods Ltd.		Food Products		4,000		1,771
	China Fortune Land Development Co. Ltd., A		Real Estate Management & Development		400		1,511
	China Galaxy Securities Co. Ltd., A		Capital Markets		400		610



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STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin FTSE Asia ex Japan ETF(continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	China (continued)
	China Galaxy Securities Co. Ltd., H		Capital Markets		12,000	$	6,383
	China Gezhouba Group Co. Ltd., A		Construction & Engineering		800		653
	China Grand Automotive Services Group Co. Ltd., A		Specialty Retail		600		323
	China Great Wall Securities Co. Ltd., A		Capital Markets		400		829
	China Greatwall Technology Group Co. Ltd.		Technology Hardware, Storage & Peripherals		400		723
	China Hongqiao Group Ltd.		Metals & Mining		9,000		5,752
	China Huarong Asset Management Co. Ltd., H		Capital Markets		36,000		5,419
	China International Capital Corp. Ltd., H		Capital Markets		3,200		6,205
	China International Marine Containers (Group) Co. Ltd., H		Machinery		1,320		1,147
	China International Marine Containers Group Co. Ltd.		Machinery		600		855
	China International Travel Service Corp. Ltd., A		Hotels, Restaurants & Leisure		400		5,213
	China Jinmao Holdings Group Ltd.		Real Estate Management & Development		20,000		11,455
	China Jushi Co. Ltd., A		Construction Materials		600		682
	China Life Insurance Co. Ltd., A		Insurance		600		2,309
	China Life Insurance Co. Ltd., H		Insurance		26,000		60,229
a	China Literature Ltd.		Media		800		2,720
	China Lodging Group Ltd., ADR		Hotels, Restaurants & Leisure		360		11,887
	China Longyuan Power Group Corp.		Independent Power and Renewable Electricity Producers		12,000		6,735
	China Machinery Engineering Corp., H		Construction & Engineering		4,000		1,694
	China Medical System Holdings Ltd.		Pharmaceuticals		4,000		4,755
	China Meheco Co. Ltd., A		Trading Companies & Distributors		200		362
	China Mengniu Dairy Co. Ltd.		Food Products		9,000		33,695
	China Merchants Bank Co. Ltd., A		Banks		3,000		14,598
	China Merchants Bank Co. Ltd., H		Banks		13,000		61,854
	China Merchants Energy Shipping Co. Ltd., A		Oil, Gas & Consumable Fuels		600		401
	China Merchants Expressway Network & Technology Holdings Co. Ltd.		Transportation Infrastructure		200		220
	China Merchants Port Holdings Co. Ltd.		Transportation Infrastructure		4,000		6,021
	China Merchants Securities Co. Ltd.		Capital Markets		2,800		3,165
	China Merchants Securities Co. Ltd., A		Capital Markets		800		1,843
	China Merchants Shekou Industrial Zone Holdings Co. Ltd., A		Real Estate Management & Development		1,000		2,659
	China Minsheng Banking Corp. Ltd., A		Banks		5,000		4,215
	China Minsheng Banking Corp. Ltd., H		Banks		23,000		15,638
	China Mobile Ltd.		Wireless Telecommunication Services		18,000		148,902
	China Molybdenum Co. Ltd., A		Metals & Mining		1,000		510
	China Molybdenum Co. Ltd., H		Metals & Mining		12,000		3,980
	China National Building Material Co. Ltd., H		Construction Materials		13,700		12,303
	China National Chemical Engineering Co. Ltd., A		Construction & Engineering		1,200		975
	China National Nuclear Power Co. Ltd., A		Independent Power and Renewable Electricity Producers		1,600		1,185
	China Nonferrous Metal Industry’s Foreign Engineering and Construction Co. Ltd.		Metals & Mining		400		246
	China Northern Rare Earth Group High-Tech Co. Ltd., A		Metals & Mining		600		913
	China Oilfield Services Ltd., A		Energy Equipment & Services		200		343
	China Oilfield Services Ltd., H		Energy Equipment & Services		8,000		9,562
	China Orient Securities Co. Ltd., A		Capital Markets		600		857
	China Overseas Land & Investment Ltd.		Real Estate Management & Development		12,000		37,732
	China Pacific Insurance Group Co. Ltd., A		Insurance		800		3,906
	China Pacific Insurance Group Co. Ltd., H		Insurance		8,800		32,329



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STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin FTSE Asia ex Japan ETF(continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	China (continued)
	China Petroleum & Chemical Corp., A		Oil, Gas & Consumable Fuels		4,000	$	2,812
	China Petroleum & Chemical Corp., H		Oil, Gas & Consumable Fuels		92,000		54,688
	China Power International Development Ltd.		Independent Power and Renewable Electricity Producers		16,000		3,327
	China Railway Construction Corp. Ltd., A		Construction & Engineering		1,600		2,120
	China Railway Construction Corp. Ltd., H		Construction & Engineering		6,000		6,559
	China Railway Group Ltd., H		Construction & Engineering		14,000		8,501
	China RailwayHi-tech Industry Co. Ltd., A		Construction & Engineering		400		575
b	China Railway Signal & Communication Corp. Ltd., H, Reg S		Electronic Equipment, Instruments & Components		6,000		3,712
	China Railway Tielong Container Logistics Co. Ltd., A		Road & Rail		400		330
	China Reinsurance Group Corp., H		Insurance		22,000		3,564
	China Resources Beer Holdings Co. Ltd.		Beverages		6,000		31,801
	China Resources Cement Holdings Ltd.		Construction Materials		8,000		8,021
	China Resources Double Crane Pharmaceutical Co. Ltd., A		Pharmaceuticals		200		342
	China Resources Gas Group Ltd.		Gas Utilities		3,000		14,829
	China Resources Land Ltd.		Real Estate Management & Development		8,000		33,523
	China Resources Pharmaceutical Group Ltd.		Pharmaceuticals		6,000		5,625
	China Resources Power Holdings Co. Ltd.		Independent Power and Renewable Electricity Producers		8,000		9,705
	China Resources Sanjiu Medical & Pharmaceutical Co. Ltd.		Pharmaceuticals		200		816
	China Shenhua Energy Co. Ltd., A		Oil, Gas & Consumable Fuels		800		2,104
	China Shenhua Energy Co. Ltd., H		Oil, Gas & Consumable Fuels		12,000		24,094
	China Shipbuilding Industry Co. Ltd., A		Machinery		3,200		2,469
a	China Shipbuilding Industry Group Power Co. Ltd., A		Auto Components		200		640
	China Shipping Container Lines Co. Ltd., A		Marine		600		211
	China Shipping Development Co. Ltd., A		Marine		400		376
	China South City Holdings Ltd.		Real Estate Management & Development		8,000		949
	China South Publishing & Media Group Co. Ltd., A		Media		400		678
	China Southern Airlines Co. Ltd., A		Airlines		1,200		1,114
	China Southern Airlines Co. Ltd., H		Airlines		4,000		2,424
	China Spacesat Co. Ltd., A		Aerospace & Defense		200		607
	China State Construction Engineering Corp. Ltd., A		Construction & Engineering		5,800		4,410
	China State Construction International Holdings Ltd.		Construction & Engineering		8,000		7,521
	China Taiping Insurance Holdings Co. Ltd.		Insurance		4,800		10,715
	China Telecom Corp. Ltd., H		Diversified Telecommunication Services		48,000		21,859
b,c	China Tower Corp. Ltd., H,144A, Reg S		Diversified Telecommunication Services		160,000		36,329
	China Traditional Chinese Medicine Co. Ltd.		Pharmaceuticals		8,000		3,674
	China TransInfo Technology Co. Ltd.		IT Services		200		494
	China Travel International Investment Hong Kong Ltd.		Hotels, Restaurants & Leisure		8,000		1,245
	China Unicom (Hong Kong) Ltd.		Diversified Telecommunication Services		20,000		21,226
	China United Network Communications Ltd., A		Wireless Telecommunication Services		3,800		3,198
	China Vanke Co. Ltd., A		Real Estate Management & Development		1,400		5,078
	China Vanke Co. Ltd., H		Real Estate Management & Development		5,600		19,502
	China Yangtze Power Co. Ltd., A		Independent Power and Renewable Electricity Producers		2,000		5,106
	China Zhongwang Holdings Ltd.		Metals & Mining		4,800		1,953



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STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin FTSE Asia ex Japan ETF(continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	China (continued)
	Chinese Universe Publishing and Media Group Co. Ltd., A		Media		200	$	366
	Chongqing Changan Automobile Co. Ltd.		Automobiles		600		623
	Chongqing Changan Automobile Co. Ltd., B		Automobiles		2,600		1,151
	Chongqing Dima Industry Co. Ltd., A		Real Estate Management & Development		400		179
	Chongqing Fuling Zhacai Group Co. Ltd., A		Food Products		200		625
	Chongqing Rural Commercial Bank Co. Ltd., H		Banks		8,000		4,255
	Chongqing Water Group Co. Ltd., A		Water Utilities		200		157
	Chongqing Zhifei Biological Products Co. Ltd.		Biotechnology		200		1,329
	CIFI Holdings Group Co. Ltd.		Real Estate Management & Development		12,000		7,011
	CIMC Enric Holdings Ltd.		Machinery		4,000		2,301
	Cinda Real Estate Co. Ltd., A		Real Estate Management & Development		400		215
a	CITIC Guoan Information Industry Co. Ltd.		Media		400		202
	Citic Pacific Ltd.		Industrial Conglomerates		16,000		20,206
	CITIC Securities Co. Ltd., A		Capital Markets		1,400		4,407
	CITIC Securities Co. Ltd., H		Capital Markets		8,000		14,981
	CMST Development Co. Ltd., A		Air Freight & Logistics		200		139
	CNOOC Ltd.		Oil, Gas & Consumable Fuels		56,000		85,435
	Contemporary Amperex Technology Co. Ltd.		Electrical Equipment		200		2,002
	COSCO SHIPPING Development Co. Ltd., H		Marine		16,000		1,837
	COSCO Shipping Energy Transportation Co. Ltd., H		Marine		4,000		1,771
a	COSCO Shipping Holdings Co. Ltd.		Marine		8,000		2,847
	COSCO SHIPPING Ports Ltd.		Transportation Infrastructure		8,183		6,534
	Country Garden Holdings Co. Ltd.		Real Estate Management & Development		26,000		32,934
	Country Garden Services Holdings Co. Ltd.		Commercial Services & Supplies		4,000		11,532
a	CPT Technology Group Co. Ltd.		Electronic Equipment, Instruments & Components		400		155
	CRRC Corp. Ltd., A		Machinery		2,800		2,870
	CRRC Corp. Ltd., H		Machinery		14,000		9,769
	CSC Financial Co. Ltd., A		Capital Markets		200		625
	CSC Financial Co. Ltd., H		Capital Markets		3,000		2,197
	CSG Holding Co. Ltd.		Construction Materials		3,101		981
	CSG Holding Co. Ltd.		Construction Materials		400		236
	CSPC Pharmaceutical Group Ltd.		Pharmaceuticals		16,000		32,125
a	CSSC Offshore and Marine Engineering Group Co. Ltd.		Machinery		2,000		1,564
a	CSSC Offshore and Marine Engineering Group Co. Ltd., A		Machinery		200		476
a	Ctrip.com International Ltd., ADR		Internet & Direct Marketing Retail		1,334		39,073
	Da An Gene Co. Ltd. of SunYat-Sen University		Biotechnology		200		283
	Dairy Farm International Holdings Ltd.		Food & Staples Retailing		1,000		6,300
	Dali Foods Group Co. Ltd.		Food Products		7,000		4,295
	Dalian Port PDA Co. Ltd., A		Transportation Infrastructure		1,400		396
	Daqin Railway Co. Ltd., A		Road & Rail		2,400		2,551
	Datang International Power Generation Co. Ltd., H		Independent Power and Renewable Electricity Producers		8,000		1,653
a	Datong Coal Industry Co. Ltd., A		Oil, Gas & Consumable Fuels		400		235
	Dawning Information Industry Co. Ltd., A		Technology Hardware, Storage & Peripherals		200		961
	Dazhong Transportation (Group) Co. Ltd., B		Road & Rail		2,400		1,135
	Dazhong Transportation Group Co. Ltd., A		Road & Rail		800		451
	DHC Software Co. Ltd.		IT Services		600		566



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STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin FTSE Asia ex Japan ETF(continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	China (continued)
	Digital China Information Service Co. Ltd.		IT Services		200	$	352
	Dong-E-E-Jiao Co. Ltd., A		Pharmaceuticals		200		854
	Dongfang Electric Corp. Ltd., A		Electrical Equipment		400		516
	Dongfang Electric Corp. Ltd., H		Electrical Equipment		800		445
	Dongfeng Motor Group Co. Ltd., H		Automobiles		12,000		11,404
	Dongguan Development Holdings Co. Ltd.		Transportation Infrastructure		200		228
	Dongxing Securities Co. Ltd., A		Capital Markets		400		613
a	Dr Peng Telecom & Media Group Co. Ltd., A		Diversified Telecommunication Services		200		187
	East Money Information Co. Ltd.		Capital Markets		1,000		2,070
	ENN Ecological Holdings Co. Ltd., A		Chemicals		200		293
	ENN Energy Holdings Ltd.		Gas Utilities		2,600		26,897
	Eternal Asia Supply Chain Management Ltd.		Commercial Services & Supplies		200		116
a	Eve Energy Co. Ltd.		Electrical Equipment		200		851
	Everbright Securities Co. Ltd., A		Capital Markets		600		952
	Everbright Securities Co. Ltd., H		Capital Markets		400		303
a	Fangda Carbon New Material Co. Ltd.		Electrical Equipment		400		651
	Far East Horizon Ltd.		Diversified Financial Services		8,000		7,429
	FAW CAR Co. Ltd.		Automobiles		200		232
	Fiberhome Telecommunication Technologies Co. Ltd., A		Communications Equipment		200		766
a	FIH Mobile Ltd.		Electronic Equipment, Instruments & Components		10,000		1,225
	Financial Street Holdings Co. Ltd.		Real Estate Management & Development		600		647
	First Capital Securities Co. Ltd.		Capital Markets		200		178
	Focus Media Information Technology Co. Ltd.		Media		2,000		1,470
	Foshan Electrical and Lighting Co. Ltd.		Electrical Equipment		800		564
	Foshan Haitian Flavouring & Food Co. Ltd.		Food Products		200		3,078
	Fosun International Ltd.		Industrial Conglomerates		8,000		9,899
	Founder Securities Co. Ltd., A		Capital Markets		1,200		1,158
	Foxconn Industrial Internet Co. Ltd., A		Electronic Equipment, Instruments & Components		600		1,210
	Fujian Funeng Co. Ltd., A		Independent Power and Renewable Electricity Producers		200		240
	Fujian Longking Co. Ltd., A		Machinery		200		278
	Fujian Sunner Development Co. Ltd.		Food Products		200		691
	Future Land Development Holdings Ltd.		Real Estate Management & Development		4,000		3,490
	Fuyao Glass Industry Group Co. Ltd., A		Auto Components		400		1,203
	Fuyao Group Glass Industries Co. Ltd., H		Auto Components		1,600		4,439
	Ganfeng Lithium Co. Ltd.		Metals & Mining		200		632
a	GCL System Integration Technology Co. Ltd.		Semiconductors & Semiconductor Equipment		800		752
a	GCL-Poly Energy Holdings Ltd.		Semiconductors & Semiconductor Equipment		48,000		1,929
	GD Power Development Co. Ltd., A		Independent Power and Renewable Electricity Producers		3,800		1,272
a	GDS Holdings Ltd., ADR		IT Services		182		7,295
	Geely Automobile Holdings Ltd.		Automobiles		16,000		27,145
	GEM Co. Ltd.		Metals & Mining		800		499
	Gemdale Corp., A		Real Estate Management & Development		600		970
a	Genscript Biotech Corp.		Life Sciences Tools & Services		4,000		7,664
a	GF Securities Co. Ltd.		Capital Markets		800		1,520
a	GF Securities Co. Ltd., H		Capital Markets		5,200		5,446
	Global TopE-Commerce Co. Ltd.		Internet & Direct Marketing Retail		200		213
	Glodon Co. Ltd.		Software		200		994
	GoerTek Inc.		Electronic Equipment, Instruments & Components		400		985
a	GOME Retail Holdings Ltd.		Specialty Retail		42,000		3,804
	Gosuncn Technology Group Co. Ltd.		Communications Equipment		200		192
	Grandjoy Holdings Group Co. Ltd., A		Real Estate Management & Development		400		379
	Great Wall Motor Co. Ltd., A		Automobiles		400		431
	Great Wall Motor Co. Ltd., H		Automobiles		11,000		7,367



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STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin FTSE Asia ex Japan ETF(continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	China (continued)
	Greattown Holdings Ltd., A		Real Estate Management & Development		200	$	206
	Gree Electric Appliances Inc. of Zhuhai, A		Household Durables		800		6,419
	Greendland Holdings Corp. Ltd., A		Real Estate Management & Development		600		593
	Greentown China Holdings Ltd.		Real Estate Management & Development		3,000		2,430
	GRG Banking Equipment Co. Ltd.		Technology Hardware, Storage & Peripherals		400		483
	Guangdong Baolihua New Energy Stock Co. Ltd.		Independent Power and Renewable Electricity Producers		600		519
	Guangdong Electric Power Development Co. Ltd., B		Independent Power and Renewable Electricity Producers		4,000		1,219
	Guangdong Ellington Electronics Technology Co. Ltd., A		Electronic Equipment, Instruments & Components		200		309
a	Guangdong Golden Dragon Development Inc.		Capital Markets		200		357
	Guangdong Haid Group Co. Ltd.		Food Products		200		877
	Guangdong HEC Technology Holding Co. Ltd., A		Metals & Mining		400		409
	Guangdong Investment Ltd.		Water Utilities		8,000		15,654
a	Guangdong LY Intelligent Manufacturing Co. Ltd.		Electrical Equipment		800		1,049
	Guanghui Energy Co. Ltd., A		Oil, Gas & Consumable Fuels		1,200		558
	Guangshen Railway Co. Ltd., A		Road & Rail		2,000		863
	Guangshen Railway Co. Ltd., H		Road & Rail		4,000		1,265
	Guangxi Guiguan Electric Power Co. Ltd., A		Independent Power and Renewable Electricity Producers		600		383
	Guangxi Liugong Machinery Co. Ltd.		Machinery		800		701
	Guangxi Wuzhou Zhongheng Group Co. Ltd., A		Pharmaceuticals		1,000		402
	Guangzhou Automobile Group Co. Ltd., A		Automobiles		200		344
	Guangzhou Automobile Group Co. Ltd., H		Automobiles		12,000		11,480
	Guangzhou Baiyun International Airport Co. Ltd., A		Transportation Infrastructure		200		629
	Guangzhou Baiyunshan Pharmaceutical Holdings Co. Ltd.		Pharmaceuticals		600		1,978
	Guangzhou Baiyunshan Pharmaceutical Holdings Co. Ltd., A		Pharmaceuticals		200		972
	Guangzhou Haige Communications Group Inc. Co.		Communications Equipment		400		549
	Guangzhou R&F Properties Co. Ltd., H		Real Estate Management & Development		4,000		6,051
	Guangzhou Zhujiang Brewery Co. Ltd.		Beverages		200		186
	Guizhou Panjiang Refined Coal Co. Ltd., A		Oil, Gas & Consumable Fuels		800		575
a	Guizhou Xinbang Pharmaceutical Co. Ltd.		Pharmaceuticals		200		155
	Guosen Securities Co. Ltd.		Capital Markets		600		1,032
a	Guosheng Financial Holding Inc.		Electrical Equipment		200		318
	Guotai Junan International holdings Ltd.		Capital Markets		10,000		1,697
	Guotai Junan Securities Co. Ltd.		Capital Markets		2,400		3,735
	Guotai Junan Securities Co. Ltd., A		Capital Markets		1,000		2,460
	Guoxuan High-Tech Co. Ltd.		Electrical Equipment		200		350
	Guoyuan Securities Co. Ltd.		Capital Markets		400		478
b,c	Haidilao International Holding Ltd., 144A, Reg S		Hotels, Restaurants & Leisure		1,000		4,273
	Haier Electronics Group Co. Ltd.		Household Durables		4,000		10,434
	Haier Smart Home Co. Ltd., A		Household Durables		800		1,714
	Haining China Leather Market Co. Ltd.		Real Estate Management & Development		800		467
	Haitian International Holdings Ltd.		Machinery		2,000		4,097
	Haitong Securities Co. Ltd., A		Capital Markets		1,200		2,403
	Haitong Securities Co. Ltd., H		Capital Markets		11,200		11,744
	Han’s Laser Technology Industry Group Co. Ltd., A		Machinery		200		996



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STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin FTSE Asia ex Japan ETF(continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	China (continued)
a	Hang Zhou Great Star Industrial Co. Ltd.		Household Durables		200	$	307
	Hangzhou Binjiang Real Estate Group Co. Ltd.		Real Estate Management & Development		400		214
	Hangzhou Century Co. Ltd.		Electronic Equipment, Instruments & Components		200		330
	Hangzhou Hangyang Co. Ltd.		Machinery		200		353
	Hangzhou Hikvision Digital Technology Co. Ltd., A		Electronic Equipment, Instruments & Components		1,400		6,332
	Hangzhou Robam Appliances Co. Ltd., A		Household Durables		200		737
a	Hangzhou Shunwang Technology Co. Ltd.		Entertainment		200		522
	Hangzhou Tigermed Consulting Co. Ltd.		Life Sciences Tools & Services		200		1,738
a	Harbin Pharmaceutical Group Co. Ltd., A		Pharmaceuticals		400		214
	Heilan Home Co. Ltd.,A-SHSC		Textiles, Apparel & Luxury Goods		600		682
	Heilongjiang Agriculture Co. Ltd., A		Food Products		400		543
	Henan Senyuan Electric Co. Ltd.		Electrical Equipment		200		209
	Henan Shuanghui Investment & Development Co. Ltd.		Food Products		400		1,384
	Henan Zhongyuan Expressway Co. Ltd., A		Transportation Infrastructure		400		229
	Hengan International Group Co. Ltd.		Personal Products		2,000		13,113
	Hengdian Group DMEGC Magnetics Co. Ltd.		Electronic Equipment, Instruments & Components		400		382
	Hengli Petrochemical Co. Ltd., A		Chemicals		360		753
a	HengTen Networks Group Ltd.		Internet & Direct Marketing Retail		48,000		729
	Hengtong Optic-electric Co. Ltd., A		Communications Equipment		400		872
	Hesteel Co. Ltd.		Metals & Mining		1,400		494
	Hisense Electric Co. Ltd., A		Household Durables		400		455
	Hithink RoyalFlush Information Network Co. Ltd.		Capital Markets		200		2,778
	Holitech Technology Co. Ltd.		Electronic Equipment, Instruments & Components		400		325
	Hopson Development Holdings Ltd.		Real Estate Management & Development		4,000		4,000
	Huaan Securities Co. Ltd., A		Capital Markets		400		345
	Huabao Flavours & Fragrances Co. Ltd.		Chemicals		200		853
	Huadian Fuxin Energy Corp. Ltd., H		Independent Power and Renewable Electricity Producers		8,000		1,398
	Huadian Power International Corp. Ltd., A		Independent Power and Renewable Electricity Producers		600		301
	Huadian Power International Corp. Ltd., H		Independent Power and Renewable Electricity Producers		4,000		1,521
	Huadong Medicine Co. Ltd., A		Health Care Providers & Services		200		734
	Huafa Industrial Co. Ltd. Zhuhai, A		Real Estate Management & Development		400		394
	Huagong Tech Co. Ltd.		Electronic Equipment, Instruments & Components		200		532
	Hualan Biological Engineering Inc.		Biotechnology		200		961
	Huaneng Power International Inc., A		Independent Power and Renewable Electricity Producers		800		650
	Huaneng Power International Inc., H		Independent Power and Renewable Electricity Producers		16,000		7,694
	Huaneng Renewables Corp. Ltd., H		Independent Power and Renewable Electricity Producers		16,000		5,449
	Huapont Life Sciences Co. Ltd.		Chemicals		600		406
	Huatai Securities Co. Ltd., A		Capital Markets		1,000		2,673
	Huatai Securities Co. Ltd., H		Capital Markets		6,000		8,985
	Huaxi Securities Co. Ltd.		Capital Markets		400		550
	Huaxia Bank Co. Ltd., A		Banks		2,000		2,067
	Huaxin Cement Co. Ltd., A		Construction Materials		200		528
	Huaxin Cement Co. Ltd., B		Construction Materials		1,000		1,965
a	Huayi Brothers Media Corp.		Entertainment		400		265
	Huayu Automotive Systems Co. Ltd.		Auto Components		400		1,316
	Hubei Biocause Pharmaceutical Co. Ltd.		Insurance		200		197
	Hubei Energy Group Co. Ltd.		Independent Power and Renewable Electricity Producers		800		456
	Hubei Xinyangfeng Fertilizer Co. Ltd.		Chemicals		400		577
	Hunan Gold Corp. Ltd.		Metals & Mining		200		239
a	Hunan Valin Steel Co. Ltd.		Metals & Mining		600		343
	Hundsun Technologies Inc., A		Software		200		2,071
a	Huolinhe Opencut Coal Industry Corp. Ltd. of Inner Mongolia		Oil, Gas & Consumable Fuels		200		229



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STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin FTSE Asia ex Japan ETF(continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	China (continued)
a	Hybio Pharmaceutical Co. Ltd.		Pharmaceuticals		200	$	203
	Hytera Communications Corp. Ltd., A		Communications Equipment		200		287
	HyUnion Holding Co. Ltd.		Auto Components		200		265
a	Iflytek Co. Ltd.		Software		400		1,785
	Industrial and Commercial Bank of China Ltd.		Banks		10,200		7,899
	Industrial and Commercial Bank of China Ltd., H		Banks		272,000		182,157
	Industrial Bank Co. Ltd., A		Banks		3,000		7,364
	Industrial Securities Co. Ltd., A		Capital Markets		800		697
	Inner Mongolia BaoTou Steel Union Co. Ltd., A		Metals & Mining		4,200		859
	Inner Mongolia First Machinery Group Co. Ltd., A		Machinery		200		295
	Inner Mongolia MengDian HuaNeng Thermal Power Co. Ltd., A		Independent Power and Renewable Electricity Producers		1,200		501
	Inner Mongolia Xishui Strong Year Co. Ltd., A		Insurance		200		245
	Inner Mongolia Yili Industrial Group Co. Ltd., A		Food Products		800		3,195
	Inner Mongolia Yitai Coal Co. Ltd., B		Oil, Gas & Consumable Fuels		4,000		3,668
a,b,c	Innovent Biologics Inc., 144A, Reg S		Biotechnology		3,000		9,548
	Inspur Electronic Information Industry Co. Ltd.		Technology Hardware, Storage & Peripherals		200		720
a,d	Iqiyi Inc., ADR		Entertainment		456		7,355
a	JD.com Inc., ADR		Internet & Direct Marketing Retail		2,750		77,578
a	Jiangsu Changjiang Electronics Technology Co. Ltd., A		Semiconductors & Semiconductor Equipment		200		482
	Jiangsu Expressway Co. Ltd., A		Transportation Infrastructure		200		291
	Jiangsu Expressway Co. Ltd., H		Transportation Infrastructure		4,000		5,082
	Jiangsu Financial Leasing Co. Ltd., A		Diversified Financial Services		600		482
	Jiangsu Hengli Hydraulic Co. Ltd., A		Machinery		200		1,078
	Jiangsu Hengrui Medicine Co. Ltd., A		Pharmaceuticals		600		6,779
	Jiangsu King’s Luck Brewery JSC Ltd.		Beverages		200		905
	Jiangsu Linyang Energy Co. Ltd., A		Electrical Equipment		200		133
	Jiangsu Yanghe Brewery JST Co. Ltd., A		Beverages		200		2,913
	Jiangsu Yuyue Medical Equipment & Supply Co. Ltd.		Health Care Equipment & Supplies		200		605
	Jiangsu Zhangjiagang Rural Commercial Bank Co. Ltd.		Banks		200		150
	Jiangsu Zhongnan Construction Group Co. Ltd.		Real Estate Management & Development		400		435
	Jiangsu Zhongtian Technology Co. Ltd., A		Electrical Equipment		400		484
	Jiangsu Zijin Rural Commercial Bank Co. Ltd., A		Banks		200		174
	Jiangxi Bank Co. Ltd., H		Banks		3,000		1,776
	Jiangxi Copper Co. Ltd., A		Metals & Mining		400		805
	Jiangxi Copper Co. Ltd., H		Metals & Mining		4,000		4,633
a	Jiangxi Special Electric Motor Co. Ltd.		Electrical Equipment		200		112
	Jiangxi Zhengbang Technology Co. Ltd., A		Food Products		400		846
	Jiayuan International Group Ltd.		Real Estate Management & Development		4,000		1,669
	Jilin Aodong Pharmaceutical Group Co. Ltd.		Pharmaceuticals		400		863
	Jinduicheng Molybdenum Co. Ltd., A		Metals & Mining		600		634
	Jinke Properties Group Co. Ltd.		Real Estate Management & Development		800		735



128	Semiannual Report	franklintempleton.com

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STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin FTSE Asia ex Japan ETF(continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	China (continued)
	JinyuBio-Technology Co. Ltd., A		Biotechnology		200	$	528
	Jiuzhitang Co. Ltd.		Pharmaceuticals		200		230
	Jizhong Energy Resources Co. Ltd.		Oil, Gas & Consumable Fuels		1,000		490
	JoInc. Aare Pharmaceutical Group Industry Co. Ltd., A		Pharmaceuticals		400		550
	Jointo Energy Investment Co. Ltd.		Independent Power and Renewable Electricity Producers		200		151
	Jointown Pharmaceutical Group Co. Ltd., A		Health Care Providers & Services		200		400
	JonjeeHi-Tech Industrial And Commercial Holding Co. Ltd., A		Food Products		200		1,188
	Joyoung Co. Ltd.		Household Durables		200		613
	Kerry Logistics Network Ltd.		Air Freight & Logistics		2,000		3,199
	Kingboard Holdings Ltd.		Electronic Equipment, Instruments & Components		3,000		7,941
	Kingdee International Software Group Co. Ltd.		Software		8,000		8,429
a	Kingsoft Corp. Ltd.		Software		2,000		4,245
a	Kuang-Chi Technologies Co. Ltd.		Auto Components		200		251
	Kunlun Energy Co. Ltd.		Gas Utilities		12,000		10,332
	Kweichow Moutai Co. Ltd., A		Beverages		200		32,207
	KWG Group Holdings Ltd.		Real Estate Management & Development		4,000		3,505
	Lao Feng Xiang Co. Ltd., B		Textiles, Apparel & Luxury Goods		1,000		3,378
	Legend Holdings Corp., H		Technology Hardware, Storage & Peripherals		1,800		3,890
a,e	Legend Holdings Corp., rts., 2/20/49		Technology Hardware, Storage & Peripherals		123		—
	Lenovo Group Ltd.		Technology Hardware, Storage & Peripherals		24,000		16,011
	Lens Technology Co. Ltd.		Electronic Equipment, Instruments & Components		200		288
a	Leo Group Co. Ltd.		Media		1,200		281
	Lepu Medical Technology Beijing Co. Ltd.		Health Care Equipment & Supplies		200		702
	Leyard Optoelectronic Co. Ltd.		Electronic Equipment, Instruments & Components		200		195
	Li Ning Co. Ltd.		Textiles, Apparel & Luxury Goods		6,000		17,221
a	Liaoning Cheng Da Co. Ltd., A		Distributors		200		371
	Liuzhou Iron & Steel Co. Ltd., A		Metals & Mining		200		143
	Livzon Pharmaceutical Group Inc.		Pharmaceuticals		260		966
	Livzon Pharmaceutical Group Inc., H		Pharmaceuticals		380		974
	Logan Property Holdings Co. Ltd.		Real Estate Management & Development		4,000		5,694
	Lomon Billions Group Co. Ltd.		Chemicals		200		355
	Loncin Motor Co. Ltd., A		Automobiles		400		197
b,c	Longfor Group Holdings Ltd., 144A, Reg S		Real Estate Management & Development		6,000		22,425
	LONGi Green Energy Technology Co. Ltd., A		Semiconductors & Semiconductor Equipment		600		2,204
	Luolai Lifestyle Technology Co. Ltd.		Textiles, Apparel & Luxury Goods		200		253
	Luxi Chemical Group Co. Ltd.		Chemicals		400		552
	Luxshare Precision Industry Co. Ltd.		Electronic Equipment, Instruments & Components		720		2,698
	Luye Pharma Group Ltd.		Pharmaceuticals		6,000		4,278
	Luzhou Laojiao Co. Ltd.		Beverages		200		2,387
	Maanshan Iron & Steel Co. Ltd., A		Metals & Mining		800		301
	Maanshan Iron & Steel Co. Ltd., H		Metals & Mining		8,000		3,010
a	Mango Excellent Media Co. Ltd.		Entertainment		200		1,282
	Meinian Onehealth Healthcare Holdings Co. Ltd.		Health Care Providers & Services		520		885
a,b,c	Meitu Inc., 144A, Reg S		Technology Hardware, Storage & Peripherals		7,000		1,607
a,b	Meituan Dianping, B, Reg S		Internet & Direct Marketing Retail		11,800		120,568
	Metallurgical Corp. Of China Ltd.		Construction & Engineering		10,000		2,245
	Metallurgical Corp. of China Ltd., A		Construction & Engineering		2,000		781
	MGM China Holdings Ltd.		Hotels, Restaurants & Leisure		2,400		3,741
	Minth Group Ltd.		Auto Components		2,000		6,773
a	MMG Ltd.		Metals & Mining		8,000		1,888



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STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin FTSE Asia ex Japan ETF(continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	China (continued)
	Momo Inc., ADR		Interactive Media & Services		356	$	11,029
a	Montnets Rongxin Technology Group Co. Ltd.		Software		200		471
	Muyuan Foodstuff Co. Ltd.		Food Products		200		1,974
	MYS Group Co. Ltd.		Containers & Packaging		200		133
a	NanJiE-Commerce Co. Ltd.		Textiles, Apparel & Luxury Goods		400		578
	Nanjing Iron & Steel Co. Ltd., A		Metals & Mining		600		258
	Nanjing Securities Co. Ltd., A		Capital Markets		200		234
	Nari Technology Development Co. Ltd., A		Electrical Equipment		600		1,718
	NavInfo Co. Ltd.		Household Durables		200		456
	NetEase Inc., ADR		Entertainment		248		66,013
	New China Life Insurance Co. Ltd., A		Insurance		200		1,363
	New China Life Insurance Co. Ltd., H		Insurance		3,000		11,863
	New Hope Liuhe Co. Ltd.		Food Products		600		1,443
a	New Oriental Education & Technology Group Inc., ADR		Diversified Consumer Services		474		52,500
	Newland Digital Technology Co. Ltd.		Software		200		459
	Nexteer Automotive Group Ltd.		Auto Components		2,000		1,651
	Nine Dragons Paper Holdings Ltd.		Paper & Forest Products		6,000		5,051
a	Ningbo Joyson Electronic Corp.		Auto Components		200		486
	Ningbo Sanxing Medical Electric Co. Ltd., A		Electrical Equipment		200		199
	Ningbo Shanshan Co. Ltd., A		Chemicals		200		300
	Ningbo Zhoushan Port Co. Ltd., A		Transportation Infrastructure		600		313
a,d	NIO Inc., ADR		Automobiles		576		899
	North Huajin Chemical Industries Co. Ltd.		Chemicals		800		643
	Northeast Securities Co. Ltd.		Capital Markets		400		455
	NSFOCUS Information Technology Co. Ltd.		Software		200		471
	Oceanwide Holdings Co. Ltd.		Real Estate Management & Development		400		242
	Offshore Oil Engineering Co. Ltd., A		Energy Equipment & Services		1,000		755
a	OFILM Group Co. Ltd.		Electronic Equipment, Instruments & Components		400		667
a	ORG Technology Co. Ltd.		Containers & Packaging		400		264
	Orient Securities Co. Ltd. of China, H		Capital Markets		3,200		1,902
	Oriental Pearl Group Co. Ltd., A		Media		400		513
a	Ourpalm Co. Ltd.		Entertainment		800		531
a	Pangang Group Vanadium Titanium & Resources Co. Ltd., A		Metals & Mining		1,400		586
	People’s Insurance Co. Group of China Ltd., H		Insurance		28,000		11,215
	PetroChina Co. Ltd., H		Oil, Gas & Consumable Fuels		72,000		37,013
	PICC Property and Casualty Co. Ltd., H		Insurance		24,000		28,012
a	Pinduoduo Inc., ADR		Internet & Direct Marketing Retail		368		11,857
	Ping An Bank Co. Ltd., A		Banks		2,400		5,239
a,b	Ping An Healthcare and Technology Co. Ltd., Reg S		Health Care Technology		600		3,509
	Ping An Insurance (Group) Co. of China Ltd., H		Insurance		19,000		218,250
	Ping An Insurance Group Co. of China Ltd., A		Insurance		1,600		19,501
a	Pingdingshan Tianan Coal Mining Co. Ltd., A		Oil, Gas & Consumable Fuels		600		318
	Poly Developments and Holdings Group Co. Ltd., A		Real Estate Management & Development		1,800		3,604
	Poly Property Group Co. Ltd.		Real Estate Management & Development		8,000		2,786
	Postal Savings Bank of China Co. Ltd., H		Banks		32,000		19,512
	Power Construction Corp. of China Ltd.		Construction & Engineering		800		519
	Qingdao Port International Co. Ltd., A		Transportation Infrastructure		200		208
b	Qingdao Port International Co. Ltd., H, Reg S		Transportation Infrastructure		4,000		2,449
	Qingdao TGOOD Electric Co. Ltd.		Electrical Equipment		200		452
	Rainbow Department Store Co. Ltd.		Multiline Retail		200		336
	Realcan Pharmaceutical Group Co. Ltd.		Health Care Providers & Services		200		225
	Red Star Macalline Group Corp. Ltd.		Real Estate Management & Development		2,000		1,671
	Red Star Macalline Group Corp. Ltd., A		Real Estate Management & Development		200		318
	RiseSun Real Estate Development Co. Ltd.		Real Estate Management & Development		600		696



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STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin FTSE Asia ex Japan ETF(continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	China (continued)
	Rongsheng Petro Chemical Co. Ltd.		Chemicals		200	$	307
	SAIC Motor Corp. Ltd.		Automobiles		1,400		4,662
	Sanan Optoelectronics Co. Ltd., A		Semiconductors & Semiconductor Equipment		600		1,183
	Sands China Ltd.		Hotels, Restaurants & Leisure		8,000		36,227
	Sansteel Minguang Co. Ltd.		Metals & Mining		400		450
	Sany Heavy Industry Co. Ltd., A		Machinery		1,200		2,400
	SDIC Capital Co. Ltd., A		Capital Markets		400		698
	SDIC Power Holdings Co. Ltd., A		Independent Power and Renewable Electricity Producers		1,000		1,262
	Sealand Securities Co. Ltd.		Capital Markets		600		415
	Seazen Holdings Co. Ltd., A		Real Estate Management & Development		400		1,590
a	Semiconductor Manufacturing International Corp.		Semiconductors & Semiconductor Equipment		11,000		13,751
	SF Holding Co. Ltd.		Air Freight & Logistics		400		2,208
	Shaan Xi ProvIncial Natural Gas Co. Ltd.		Gas Utilities		400		401
	Shaanxi Aerospace PowerHi-Tech Co. Ltd., A		Machinery		200		265
	Shaanxi Coal Industry Co. Ltd.		Oil, Gas & Consumable Fuels		1,000		1,222
	Shaanxi International Trust Co. Ltd.		Capital Markets		400		230
	Shandong Chenming Paper Holdings Ltd.		Paper & Forest Products		1,000		664
	Shandong Chenming Paper Holdings Ltd., B		Paper & Forest Products		2,800		1,136
	Shandong Chenming Paper Holdings Ltd., H		Paper & Forest Products		1,000		401
b,c	Shandong Gold Mining Co. Ltd., 144A, Reg S		Metals & Mining		1,000		2,477
	Shandong Gold Mining Co. Ltd., A		Metals & Mining		400		1,898
	ShandongHi-speed Co. Ltd., A		Transportation Infrastructure		600		367
	Shandong Hualu Hengsheng Chemical Co. Ltd., A		Chemicals		200		460
a	Shandong Humon Smelting Co. Ltd.		Metals & Mining		200		368
	Shandong Linglong Tyre Co. Ltd., A		Auto Components		200		571
	Shandong Nanshan Aluminum Co. Ltd., A		Metals & Mining		2,800		831
	Shandong Publishing & Media Co. Ltd., A		Media		400		401
	Shandong Sun Paper Industry JSC Ltd.		Paper & Forest Products		400		444
	Shandong Weigao Group Medical Polymer Co. Ltd., H		Health Care Equipment & Supplies		8,000		8,235
a	Shandong XInc. Ahao Energy Corp. Ltd., A		Oil, Gas & Consumable Fuels		400		113
	Shanghai 2345 Network Holding Group Co. Ltd.		Software		600		278
	Shanghai AJ Group Co. Ltd., A		Diversified Financial Services		200		243
	Shanghai Bailian Group Co. Ltd., B		Food & Staples Retailing		1,000		925
	Shanghai Baosight Software Co. Ltd., B		Software		1,100		2,132
	Shanghai Chlor-Alkali Chemical Co. Ltd., B		Chemicals		1,800		1,107
	Shanghai Construction Group Co. Ltd., A		Construction & Engineering		1,400		665
	Shanghai Dazhong Public Utilities Group Co. Ltd., A		Gas Utilities		400		273
	Shanghai Electric Group Co. Ltd., A		Electrical Equipment		1,000		703
	Shanghai Electric Group Co. Ltd., H		Electrical Equipment		8,000		2,582
	Shanghai Electric Power Co. Ltd., A		Independent Power and Renewable Electricity Producers		200		221
	Shanghai Environment Group Co. Ltd., A		Commercial Services & Supplies		200		311
	Shanghai Fosun Pharmaceutical Group Co. Ltd., A		Pharmaceuticals		400		1,415
	Shanghai Fosun Pharmaceutical Group Co. Ltd., H		Pharmaceuticals		2,000		5,370
	Shanghai Haixin Group Co., B		Pharmaceuticals		2,200		904



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STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin FTSE Asia ex Japan ETF(continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	China (continued)
	Shanghai Huayi Group Co. Ltd., B		Chemicals		1,200	$	828
	Shanghai Industrial Development Co. Ltd., A		Real Estate Management & Development		200		167
	Shanghai Industrial Holdings Ltd.		Industrial Conglomerates		2,000		3,725
	Shanghai Industrial Urban Development Group Ltd.		Real Estate Management & Development		2,000		253
	Shanghai International Airport Co. Ltd., A		Transportation Infrastructure		200		2,234
	Shanghai International Port Group Co. Ltd., A		Transportation Infrastructure		1,400		1,116
	Shanghai Jahwa United Co. Ltd., A		Personal Products		200		962
	Shanghai Jinjiang International Hotels Co. Ltd.		Hotels, Restaurants & Leisure		600		1,145
	Shanghai Jinjiang International Industrial Investment Co. Ltd.		Road & Rail		1,000		948
	Shanghai Jinqiao Export Processing Zone Development, B		Real Estate Management & Development		1,400		1,490
	Shanghai Lujiazui Finance & Trade Zone Develop Co. Ltd., B		Real Estate Management & Development		4,280		4,802
	Shanghai Mechanical and Electrical Industry Co. Ltd., A		Machinery		200		466
	Shanghai Mechanical and Electrical Industry Co. Ltd., B		Machinery		1,000		1,674
	Shanghai Pharmaceuticals Holding Co. Ltd., A		Health Care Providers & Services		400		1,019
	Shanghai Pharmaceuticals Holding Co. Ltd., H		Health Care Providers & Services		3,000		5,434
	Shanghai Pudong Development Bank Co. Ltd., A		Banks		4,000		6,632
	Shanghai ShibeiHi-Tech Co. Ltd., B		Real Estate Management & Development		1,800		704
	Shanghai Shimao Co. Ltd., A		Real Estate Management & Development		800		473
	Shanghai Tunnel Engineering Co. Ltd., A		Construction & Engineering		800		660
	Shanghai Waigaoqiao Free Trade Zone Group Co. Ltd.		Trading Companies & Distributors		800		1,113
	Shanghai Yuyuan Tourist Mart Group Co. Ltd., A		Specialty Retail		600		685
	Shanghai Zhangjiang High-Tech Park Development Co. Ltd., A		Real Estate Management & Development		200		434
	Shanghai Zhenhua Port Machinery Co. Ltd., B		Machinery		4,080		1,395
	Shanxi LanhuaSci-Tech Venture Co. Ltd., A		Oil, Gas & Consumable Fuels		600		547
	Shanxi Lu’an Environmental Energy Development Co. Ltd., A		Oil, Gas & Consumable Fuels		400		406
	Shanxi Securities Co. Ltd.		Capital Markets		400		440
	Shanxi Xinghuacun Fen Wine Factory Co. Ltd., A		Beverages		200		2,165
	Shanxi Xishan Coal & Electricity Power Co. Ltd.		Oil, Gas & Consumable Fuels		600		494
a	Shanxi Zhangze Electric Power Co. Ltd.		Independent Power and Renewable Electricity Producers		800		282
a	Shanying International Holding Co. Ltd., A		Paper & Forest Products		600		259
	Shenergy Co. Ltd., A		Independent Power and Renewable Electricity Producers		1,000		777
	Shenghe Resources Holding Co. Ltd., A		Metals & Mining		200		255
	Shengyi Technology Co. Ltd., A		Electronic Equipment, Instruments & Components		400		1,397
	Shenwan Hongyuan Group Co. Ltd.		Capital Markets		2,800		1,874
	Shenzhen Accord Pharmaceutical Co. Ltd., B		Health Care Providers & Services		200		733
	Shenzhen Agricultural Products Group Co. Ltd.		Food & Staples Retailing		200		146



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STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin FTSE Asia ex Japan ETF(continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	China (continued)
	Shenzhen Airport Co. Ltd.		Transportation Infrastructure		400	$	617
	Shenzhen Aisidi Co. Ltd.		Electronic Equipment, Instruments & Components		200		151
	Shenzhen Energy Group Co. Ltd.		Independent Power and Renewable Electricity Producers		400		324
	Shenzhen Everwin Precision Technology Co. Ltd.		Electronic Equipment, Instruments & Components		200		397
	Shenzhen Expressway Co. Ltd., H		Transportation Infrastructure		4,000		5,215
	Shenzhen Gas Corporation Ltd., A		Gas Utilities		600		541
	Shenzhen Grandland Group Co. Ltd.		Construction & Engineering		400		260
	Shenzhen Huaqiang Industry Co. Ltd.		Real Estate Management & Development		200		405
	Shenzhen Inovance Technology Co. Ltd.		Machinery		200		681
	Shenzhen International Holdings Ltd.		Transportation Infrastructure		3,000		5,763
	Shenzhen Investment Ltd.		Real Estate Management & Development		12,000		4,424
	Shenzhen Jinjia Group Co. Ltd.		Containers & Packaging		200		269
	Shenzhen Kaifa Technology Co. Ltd.		Technology Hardware, Storage & Peripherals		200		312
a	Shenzhen KingdomSci-Tech Co. Ltd., A		Software		200		585
a	Shenzhen MTC Co. Ltd.		Household Durables		400		156
a	Shenzhen Noposion Agrochemicals Co. Ltd.		Chemicals		200		168
	Shenzhen Overseas Chinese Town Co. Ltd.		Hotels, Restaurants & Leisure		1,400		1,378
	Shenzhen Salubris Pharmaceuticals Co. Ltd.		Pharmaceuticals		200		524
a	Shenzhen Sunway Communication Co. Ltd.		Communications Equipment		200		1,003
	Shenzhen Yan Tian Port Holding Co. Ltd.		Transportation Infrastructure		200		164
	Shenzhen Zhongjin Lingnan Nonfemet Co. Ltd.		Metals & Mining		600		339
	Shenzhou International Group Holdings Ltd.		Textiles, Apparel & Luxury Goods		2,400		31,349
a	Shijiazhuang Changshan BeiMing Technology Co. Ltd.		Textiles, Apparel & Luxury Goods		200		150
	Shijiazhuang Yiling Pharmaceutical Co. Ltd.		Pharmaceuticals		200		302
	Shimao Property Holdings Ltd.		Real Estate Management & Development		4,000		11,685
	Shougang Fushan Resources Group Ltd.		Metals & Mining		12,000		2,480
	Shui On Land Ltd.		Real Estate Management & Development		13,000		2,587
a	Siasun Robot & Automation Co. Ltd.		Machinery		200		404
	Sichuan Chuantou Energy Co. Ltd., A		Independent Power and Renewable Electricity Producers		800		1,118
	Sichuan Expressway Co. Ltd., H		Transportation Infrastructure		8,000		2,378
a	Sichuan Hebang Biotechnology Co. Ltd., A		Chemicals		1,200		260
	Sichuan Kelun Pharmaceutical Co. Ltd.		Pharmaceuticals		200		724
	Sichuan Languang Development Co. Ltd., A		Real Estate Management & Development		200		168
	Sichuan Road & Bridge Co. Ltd., A		Construction & Engineering		1,000		452
	Sieyuan Electric Co. Ltd.		Electrical Equipment		200		310
	Sihuan Pharmaceutical Holdings Group Ltd.		Pharmaceuticals		14,000		2,125
a	SINA Corp.		Interactive Media & Services		214		8,387
	Sino-Ocean Land Holdings Ltd.		Real Estate Management & Development		10,000		3,393
	Sinochem International Corp., A		Trading Companies & Distributors		600		416
	Sinolink Securities Co. Ltd., A		Capital Markets		400		488
	Sinoma International Engineering Co.		Construction & Engineering		600		492
	Sinoma Science & Technology Co. Ltd.		Chemicals		200		292
	Sinopec Engineering Group Co. Ltd.		Construction & Engineering		5,000		3,138
a	Sinopec Oilfield Service Corp.		Energy Equipment & Services		8,000		837
a	Sinopec Oilfield Service Corp., A		Energy Equipment & Services		600		188



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STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin FTSE Asia ex Japan ETF(continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	China (continued)
	Sinopec Shanghai Petrochemical Co. Ltd., A		Chemicals		600	$	350
	Sinopec Shanghai Petrochemical Co. Ltd., H		Chemicals		12,000		3,490
	Sinopharm Group Co. Ltd., H		Health Care Providers & Services		4,000		12,526
	Sinotrans Ltd., A		Air Freight & Logistics		800		476
	Sinotrans Ltd., H		Air Freight & Logistics		6,000		1,883
	Sinotruk Hong Kong Ltd.		Machinery		2,000		2,965
	Soho China Ltd.		Real Estate Management & Development		7,000		2,000
	Songcheng Performance Development Co. Ltd.		Hotels, Restaurants & Leisure		200		783
	SooChow Securities Co. Ltd., A		Capital Markets		400		518
	Southwest Securities Co. Ltd., A		Capital Markets		800		505
	STO Express Co. Ltd.		Air Freight & Logistics		200		644
	Sunac China Holdings Ltd.		Real Estate Management & Development		8,000		32,145
	Sungrow Power Supply Co. Ltd.		Electrical Equipment		200		316
	Suning Universal Co. Ltd.		Real Estate Management & Development		1,000		517
	Suning.com Co. Ltd.		Specialty Retail		1,200		1,741
	Sunny Optical Technology Group Co. Ltd.		Electronic Equipment, Instruments & Components		2,200		32,329
	Sunwoda Electronic Co. Ltd.		Electrical Equipment		200		424
	Suofeiya Home Collection Co. Ltd.		Household Durables		200		479
	Suzhou Gold Mantis Construction Decoration Co. Ltd.		Construction & Engineering		400		508
	Tahoe Group Co. Ltd.		Real Estate Management & Development		200		168
a	TAL Education Group, ADR		Diversified Consumer Services		1,180		40,403
	Tangshan Jidong Cement Co. Ltd.		Construction Materials		200		429
	TangShan Port Group Co. Ltd., A		Transportation Infrastructure		800		276
	Tangshan Sanyou Chemical Industries Co. Ltd., A		Chemicals		400		289
	Tasly Pharmaceutical Group Co. Ltd., A		Pharmaceuticals		200		436
	TBEA Co. Ltd., A		Electrical Equipment		1,000		910
	TCL Corp.		Household Durables		2,000		997
	Tencent Holdings Ltd.		Interactive Media & Services		19,800		833,987
a	Tencent Music Entertainment Group, ADR		Entertainment		384		4,904
a	The China Pacific Securities Co. Ltd., A		Capital Markets		1,000		479
	Tian Di Science & Technology Co. Ltd., A		Machinery		800		367
	Tianfeng Securities Co. Ltd., A		Capital Markets		800		962
	Tianjin Capital Environmental Protection Group Co. Ltd., A		Commercial Services & Supplies		200		196
	Tianjin Chase Sun Pharmaceutical Co. Ltd.		Pharmaceuticals		1,000		468
	Tianjin Port Co. Ltd., A		Transportation Infrastructure		1,200		1,035
	Tianjin Zhonghuan Semiconductor Co. Ltd.		Semiconductors & Semiconductor Equipment		400		678
	Tianma Microelectronics Co. Ltd.		Electronic Equipment, Instruments & Components		200		387
	Tianqi Lithium Corp.		Chemicals		200		762
	Times China Holdings Ltd.		Real Estate Management & Development		2,000		3,112
	Tingyi Cayman Islands Holding Corp.		Food Products		8,000		11,266
a,b	Tongcheng-Elong Holdings Ltd., Reg S		Internet & Direct Marketing Retail		2,400		3,686
	Tongding Interconnection Information Co. Ltd.		Communications Equipment		200		215
	Tonghua Dongbao Pharmaceutical Co. Ltd.		Pharmaceuticals		400		980
	Tongkun Group Co. Ltd., A		Chemicals		200		356
	Tongling Nonferrous Metals Group Co. Ltd.		Metals & Mining		1,400		425
	Tongwei Co. Ltd., A		Food Products		200		357
	Towngas China Co. Ltd.		Gas Utilities		4,000		3,000
	TravelSky Technology Ltd., H		IT Services		4,000		8,307
	Tsingtao Brewery Co. Ltd., A		Beverages		200		1,358
	Tsingtao Brewery Co. Ltd., H		Beverages		1,800		10,861
	Tunghsu Optoelectronic Technology Co. Ltd.		Electronic Equipment, Instruments & Components		600		477
	Tus-Sound Environmental Resources Co. Ltd.		Commercial Services & Supplies		200		264
	Uni-President China Holdings Ltd.		Food Products		4,000		4,317
	Unisplendour Corp. Ltd.		Electronic Equipment, Instruments & Components		200		882



134	Semiannual Report	franklintempleton.com

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STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin FTSE Asia ex Japan ETF(continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	China (continued)
	Universal Scientific Industrial Shanghai Co. Ltd., A		Electronic Equipment, Instruments & Components		200	$	432
	Venustech Group Inc.		Software		200		896
a	Vipshop Holdings Ltd., ADR		Internet & Direct Marketing Retail		1,450		12,934
	Walvax Biotechnology Co. Ltd.		Biotechnology		200		756
	Wangfujing Group Co. Ltd., A		Multiline Retail		200		403
	Wangsu Science & Technology Co. Ltd.		IT Services		400		560
	Wanhua Chemical Group Co. Ltd., A		Chemicals		400		2,473
	Want Want China Holdings Ltd.		Food Products		18,000		14,397
	Wanxiang Qianchao Co. Ltd.		Auto Components		200		145
a	Weibo Corp., ADR		Interactive Media & Services		182		8,145
	Weichai Power Co. Ltd., A		Machinery		1,000		1,571
	Weichai Power Co. Ltd., H		Machinery		6,000		8,649
	Weifu High-Technology Co. Ltd., B		Auto Components		600		951
	Weifu High-Technology Group Co. Ltd., A		Auto Components		400		918
	Wens Foodstuffs Group Co. Ltd.		Food Products		200		1,041
a	Western Mining Co. Ltd., A		Metals & Mining		1,000		776
	Western Securities Co. Ltd.		Capital Markets		600		749
	Westone Information Industry Inc.		Electronic Equipment, Instruments & Components		200		781
	Winning Health Technology Group Co. Ltd.		Health Care Technology		200		445
	Wolong Electric Group Co. Ltd., A		Electrical Equipment		200		233
	Wonders Information Co. Ltd.		IT Services		200		381
	Wuchan Zhongda Group Co. Ltd., A		Distributors		600		460
	Wuhan Guide Infrared Co. Ltd.		Electronic Equipment, Instruments & Components		200		665
	Wuhu Sanqi Interactive Entertainment Network Technology Group Co. Ltd.		Entertainment		200		505
	Wuliangye Yibin Co. Ltd.		Beverages		600		10,906
	WUS Printed Circuit Kunshan Co. Ltd.		Electronic Equipment, Instruments & Components		200		686
	WuXi AppTec Co. Ltd., H		Life Sciences Tools & Services		600		6,559
a,b,c	Wuxi Biologics Cayman Inc., 144A, Reg S		Life Sciences Tools & Services		2,000		20,410
	Wuxi Lead Intelligent Equipment Co. Ltd.		Electronic Equipment, Instruments & Components		200		944
	XCMG Construction Machinery Co. Ltd.		Machinery		1,400		868
	Xiamen C & D Inc., A		Trading Companies & Distributors		600		731
	Xiamen ITG Group Corp. Ltd., A		Trading Companies & Distributors		400		411
	Xiamen Meiya Pico Information Co. Ltd.		Electronic Equipment, Instruments & Components		200		480
	Xiamen Tungsten Co. Ltd., A		Metals & Mining		200		376
a	Xiaomi Corp., B		Technology Hardware, Storage & Peripherals		31,600		35,472
	Xinhu Zhongbao Co. Ltd., A		Real Estate Management & Development		1,200		486
	Xinhua Winshare Publishing and Media Co. Ltd., H		Distributors		2,000		1,418
	Xinjiang Goldwind Science & Technology Co. Ltd.		Electrical Equipment		600		1,052
	Xinjiang Goldwind Science & Technology Co. Ltd., H		Electrical Equipment		2,000		2,368
	Xinjiang Machinery Research Institute Co. Ltd.		Machinery		200		120
	Xinjiang Zhongtai Chemical Co. Ltd.		Chemicals		200		196
	Xinxing Ductile Iron Pipes Co. Ltd.		Metals & Mining		2,000		1,092
	Xinyi Solar Holdings Ltd.		Semiconductors & Semiconductor Equipment		12,000		7,194
	Yang Quan Coal Industry Group Co. Ltd., A		Oil, Gas & Consumable Fuels		600		434
	Yango Group Co. Ltd.		Real Estate Management & Development		400		330
b	Yangtze Optical Fibre and Cable Joint Stock Ltd. Co., H, Reg S		Communications Equipment		1,000		1,612
	Yantai Changyu Pioneer Wine Co. Ltd., B		Beverages		800		1,631
	Yantai Jereh Oilfield Services Group Co. Ltd.		Energy Equipment & Services		200		756
	Yanzhou Coal Mining Co. Ltd., A		Oil, Gas & Consumable Fuels		200		298
	Yanzhou Coal Mining Co. Ltd., H		Oil, Gas & Consumable Fuels		8,000		8,123
	Yifan Pharmaceutical Co. Ltd.		Pharmaceuticals		200		376



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STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin FTSE Asia ex Japan ETF(continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	China (continued)
	Yihai International Holding Ltd.		Food Products		2,000	$	11,889
	Yintai Resources Co. Ltd.		Metals & Mining		200		365
	Yonghui Superstores Co. Ltd., A		Food & Staples Retailing		1,200		1,494
	Yonyou Network Technology Co. Ltd., A		Software		400		1,730
	Yotrio Group Co. Ltd.		Leisure Equipment & Products		400		203
	Yuan Longping High-tech Agriculture Co. Ltd.		Food Products		200		351
	Yuexiu Property Co. Ltd.		Real Estate Management & Development		24,000		5,204
a	Yunnan Aluminium Co. Ltd.		Metals & Mining		600		378
	Yunnan Baiyao Group Co. Ltd.		Pharmaceuticals		200		2,130
a	Yunnan Copper Co. Ltd.		Metals & Mining		200		281
a	Yunnan Tin Co. Ltd.		Metals & Mining		200		284
a	YY Inc., ADR		Interactive Media & Services		188		10,571
	Zhangzhou Pientzehuang Pharmaceutical Co. Ltd., A		Pharmaceuticals		200		2,853
	Zhaojin Mining Industry Co. Ltd., H		Metals & Mining		3,000		3,471
	Zhefu Holding Group Co. Ltd.		Electrical Equipment		400		255
	Zhejiang China Commodities City Group Co. Ltd., A		Real Estate Management & Development		600		318
	Zhejiang Chint Electrics Co. Ltd., A		Electrical Equipment		200		611
	Zhejiang Conba Pharmaceutical Co. Ltd., A		Pharmaceuticals		400		355
	Zhejiang Crystal-Optech Co. Ltd.		Electronic Equipment, Instruments & Components		180		370
	Zhejiang Dahua Technology Co. Ltd.		Electronic Equipment, Instruments & Components		400		967
	Zhejiang Expressway Co. Ltd., H		Transportation Infrastructure		4,000		3,459
	Zhejiang Hailiang Co. Ltd.		Metals & Mining		200		290
	Zhejiang Hisoar Pharmaceutical Co. Ltd.		Pharmaceuticals		200		193
	Zhejiang Huace Film & TV Co. Ltd., A		Entertainment		200		185
a	Zhejiang Huahai Pharmaceutical Co. Ltd., A		Pharmaceuticals		200		414
	Zhejiang Huayou Cobalt Co. Ltd., A		Metals & Mining		200		754
	Zhejiang Juhua Co. Ltd., A		Chemicals		400		396
	Zhejiang Longsheng Group Co. Ltd., A		Chemicals		400		788
	Zhejiang Medicine Co. Ltd., A		Pharmaceuticals		200		321
	Zhejiang NHU Co. Ltd.		Pharmaceuticals		400		1,198
	Zhejiang Runtu Co. Ltd.		Chemicals		200		327
	Zhejiang Sanhua Intelligent Controls Co. Ltd.		Machinery		400		737
	Zhejiang Semir Garment Co. Ltd.		Textiles, Apparel & Luxury Goods		200		346
	Zhejiang Wanfeng Auto Wheel Co. Ltd.		Auto Components		200		197
	Zhejiang Wanliyang Co. Ltd.		Machinery		200		201
	Zhejiang Wanma Co. Ltd.		Electrical Equipment		200		155
	Zhejiang Weixing New Building Materials Co. Ltd.		Building Products		200		445
	Zhejiang Yasha Decoration Co. Ltd.		Diversified Consumer Services		600		451
	Zhengzhou Coal Mining Machinery Group Co. Ltd., A		Machinery		200		173
	Zhengzhou Yutong Bus Co. Ltd., A		Machinery		400		779
	Zheshang Securities Co. Ltd., A		Capital Markets		200		242
a,b	ZhongAn Online P&C Insurance Co. Ltd., Reg S		Insurance		1,200		2,832
	Zhongjin Gold Corp. Ltd., A		Metals & Mining		400		486
	Zhongshan Public Utilities Group Co. Ltd.		Water Utilities		400		445
	Zhongsheng Group Holdings Ltd.		Specialty Retail		2,000		6,314
	Zhuzhou CRRC Times Electric Co. Ltd., H		Electrical Equipment		1,800		7,451
	Zijin Mining Group Co. Ltd., A		Metals & Mining		2,400		1,099
	Zijin Mining Group Co. Ltd., H		Metals & Mining		20,000		6,914
	Zoomlion Heavy Industry Science and Technology Co. Ltd.		Machinery		1,200		958
	Zoomlion Heavy Industry Science and Technology Development Co. Ltd., H		Machinery		4,400		2,980
a	ZTE Corp.		Communications Equipment		600		2,689



136	Semiannual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin FTSE Asia ex Japan ETF(continued)



		Industry			Shares		Value
	Common Stocks and Other Equity Interests (continued)
	China (continued)
a	ZTE Corp., H		Communications Equipment			2,800	$	7,429
	ZTO Express Cayman Inc., ADR		Air Freight & Logistics			1,122		23,932


								6,075,920

	Hong Kong 10.0%
	AIA Group Ltd.		Insurance			42,000		396,727
a	Alibaba Pictures Group Ltd.		Entertainment			40,000		6,480
	ASM Pacific Technology Ltd.		Semiconductors & Semiconductor Equipment			1,000		12,208
	BOC Hong Kong (Holdings) Ltd.		Banks			12,000		40,717
	Bosideng International Holdings Ltd.		Textiles, Apparel & Luxury Goods			8,000		3,408
	Cathay Pacific Airways Ltd.		Airlines			2,000		2,500
	Champion REIT		Equity Real Estate Investment Trusts (REITs	)		8,000		5,174
	China Gas Holdings Ltd.		Gas Utilities			7,200		27,829
	Chow Tai Fook Jewellery Co. Ltd.		Specialty Retail			3,600		2,971
	CK Asset Holdings Ltd.		Real Estate Management & Development			9,000		60,961
	CK Hutchison Holdings Ltd.		Industrial Conglomerates			9,500		83,859
	CK Infrastructure Holdings Ltd.		Electric Utilities			2,000		13,458
	CLP Holdings Ltd.		Electric Utilities			6,000		63,028
	Dah Sing Banking Group Ltd.		Banks			800		1,076
	Dah Sing Financial Group		Banks			800		2,959
	First Pacific Co. Ltd.		Diversified Financial Services			8,000		3,061
a	Fullshare Holdings Ltd.		Electrical Equipment			25,000		813
	Haitong International Securities Group Ltd.		Capital Markets			8,000		2,266
	Hang Lung Group Ltd.		Real Estate Management & Development			4,000		9,960
	Hang Lung Properties Ltd.		Real Estate Management & Development			8,000		18,165
	Hang Seng Bank Ltd.		Banks			2,400		51,739
	Henderson Land Development Co. Ltd.		Real Estate Management & Development			4,840		22,535
	Hong Kong and China Gas Co. Ltd.		Gas Utilities			34,320		66,894
	Hong Kong Exchanges and Clearing Ltd.		Capital Markets			4,400		129,092
	Hongkong Land Holdings Ltd.		Real Estate Management & Development			4,000		22,480
	Huabao International Holdings Ltd.		Chemicals			4,000		1,464
	Hutchison Telecommunications Hong Kong Holdings Ltd.		Wireless Telecommunication Services			4,000		674
	Hysan Development Co. Ltd.		Real Estate Management & Development			2,000		8,062
	Jardine Matheson Holdings Ltd.		Industrial Conglomerates			800		42,800
	Jardine Strategic Holdings Ltd.		Industrial Conglomerates			600		17,928
	Johnson Electric Holdings Ltd.		Electrical Equipment			1,000		1,791
	Kerry Properties Ltd.		Real Estate Management & Development			2,000		6,161
	Kingboard Laminates Holdings Ltd.		Chemicals			4,000		3,607
	Lee & Man Paper Manufacturing Ltd.		Paper & Forest Products			6,000		3,245
	Li & Fung Ltd.		Textiles, Apparel & Luxury Goods			20,000		2,271
	Lifestyle International Holdings Ltd.		Multiline Retail			2,000		2,084
	Link REIT		Equity Real Estate Investment Trusts (REITs	)		7,500		82,707
	Melco International Development Ltd.		Hotels, Restaurants & Leisure			2,000		4,756
	MTR Corp. Ltd.		Road & Rail			5,000		28,063
	New World Development Co. Ltd.		Real Estate Management & Development			20,000		25,971
	NWS Holdings Ltd.		Industrial Conglomerates			4,000		6,194
	PCCW Ltd.		Diversified Telecommunication Services			16,000		8,980
	Power Assets Holdings Ltd.		Electric Utilities			5,000		33,580
	Sa Sa International Holdings Ltd.		Specialty Retail			4,153		922
	Samsonite International SA		Textiles, Apparel & Luxury Goods			4,200		8,894
	Shangri-La Asia Ltd.		Hotels, Restaurants & Leisure			4,000		4,082
	Shun Tak Holdings Ltd.		Industrial Conglomerates			8,000		3,184
	Sino Biopharmaceutical Ltd.		Pharmaceuticals			22,000		27,951
	Sino Land Co. Ltd.		Real Estate Management & Development			12,000		18,032
	Sun Art Retail Group Ltd.		Food & Staples Retailing			8,000		8,123
	Sun Hung Kai Properties Ltd.		Real Estate Management & Development			5,000		71,944
	Swire Pacific Ltd., A		Real Estate Management & Development			2,000		18,611



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STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin FTSE Asia ex Japan ETF(continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Hong Kong (continued)
	Swire Properties Ltd.		Real Estate Management & Development		3,600	$	11,297
	Techtronic Industries Co. Ltd.		Machinery		4,000		27,834
	Television Broadcasts Ltd.		Media		1,200		1,956
	The Bank of East Asia Ltd.		Banks		4,400		10,833
	The Wharf Holdings Ltd.		Real Estate Management & Development		4,000		8,725
a	United Energy Group Ltd.		Oil, Gas & Consumable Fuels		24,000		4,929
	Vitasoy International Holdings Ltd.		Food Products		2,000		8,100
	VTech Holdings Ltd.		Communications Equipment		600		5,231
	WH Group Ltd., Reg S		Food Products		29,000		25,969
	Wharf Real Estate Investment Co. Ltd.		Real Estate Management & Development		4,000		21,838
	Wheelock and Co. Ltd.		Real Estate Management & Development		3,000		17,087
	Xinyi Glass Holdings Ltd.		Auto Components		8,000		8,807
	Yue Yuen Industrial Holdings Ltd.		Textiles, Apparel & Luxury Goods		2,000		5,472


							1,650,519

	India 11.2%
a	3M India Ltd.		Industrial Conglomerates		6		1,750
	ABB India Ltd.		Electrical Equipment		170		3,635
	ACC Ltd.		Construction Materials		174		3,948
	Adani Enterprises Ltd.		Trading Companies & Distributors		1,018		2,095
	Adani Ports And Special Economic Zone Ltd.		Transportation Infrastructure		2,378		13,890
a	Adani Power Ltd.		Independent Power and Renewable Electricity Producers		3,204		2,907
a	Adani Transmissions Ltd.		Electric Utilities		894		2,884
a	Aditya Birla Capital Ltd.		Diversified Financial Services		1,764		2,112
	Alkem Laboratories Ltd.		Pharmaceuticals		128		3,441
	Ambuja Cements Ltd.		Construction Materials		2,584		7,436
	Ashok Leyland Ltd.		Machinery		4,202		4,073
	Asian Paints Ltd.		Chemicals		994		24,716
	AU Small Finance Bank Ltd.		Banks		470		4,374
	Aurobindo Pharma Ltd.		Pharmaceuticals		926		7,696
a	Avenue Supermarts Ltd.		Food & Staples Retailing		398		10,449
	Axis Bank Ltd.		Banks		6,356		61,435
	Bajaj Auto Ltd.		Automobiles		302		12,536
	Bajaj Finance Ltd.		Consumer Finance		602		34,369
	Bajaj Finserv Ltd.		Insurance		132		15,856
	Bajaj Holdings & Investment Ltd.		Diversified Financial Services		90		4,563
	Bandhan Bank Ltd.		Banks		374		2,596
a	Bank of Baroda		Banks		2,666		3,500
a	Bank of India		Banks		972		863
	Berger Paints India Ltd.		Chemicals		830		5,092
	Bharat Electronics Ltd.		Aerospace & Defense		2,016		3,081
	Bharat Forge Ltd.		Auto Components		668		4,207
	Bharat Heavy Electricals Ltd.		Electrical Equipment		2,868		1,959
	Bharat Petroleum Corp. Ltd.		Oil, Gas & Consumable Fuels		3,446		22,859
	Bharti Airtel Ltd.		Wireless Telecommunication Services		5,638		29,201
	Bharti Infratel Ltd.		Diversified Telecommunication Services		3,012		10,936
	Biocon Ltd.		Biotechnology		984		3,096
	Bosch Ltd.		Auto Components		24		4,763
	Britannia Industries Ltd.		Food Products		202		8,392
	Cadila Healthcare Ltd.		Pharmaceuticals		816		2,686
a	Canara Bank Ltd.		Banks		546		1,405
	Castrol India Ltd.		Chemicals		1,746		3,352
	Cholamandalam Investment and Finance Co. Ltd.		Consumer Finance		652		2,832
	Cipla Ltd.		Pharmaceuticals		1,130		6,785
	Coal India Ltd.		Oil, Gas & Consumable Fuels		4,968		14,010
	Colgate-Palmolive India Ltd.		Personal Products		242		5,136



138	Semiannual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin FTSE Asia ex Japan ETF(continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	India (continued)
	Container Corp. of India Ltd.		Road & Rail		734	$	6,264
	Cummins India Ltd.		Machinery		256		2,069
	Dabur India Ltd.		Personal Products		1,880		11,865
	Dalmia Bharat Ltd.		Construction Materials		142		1,648
	Divi’s Laboratories Ltd.		Life Sciences Tools & Services		282		6,627
	DLF Ltd.		Real Estate Management & Development		2,114		4,642
	Dr Reddy’s Laboratories Ltd.		Pharmaceuticals		288		10,982
	Eicher Motors Ltd.		Automobiles		46		11,531
	Emami Ltd.		Personal Products		420		1,888
	Exide Industries Ltd.		Auto Components		786		2,165
	Federal Bank Ltd.		Banks		5,306		6,768
a	Future Retail Ltd.		Multiline Retail		696		3,740
	GAIL India Ltd.		Gas Utilities		3,792		7,197
	Gillette India Ltd.		Personal Products		28		2,805
	GlaxoSmithKline Consumer Healthcare Ltd.		Food Products		34		4,092
	Glenmark Pharmaceuticals Ltd.		Pharmaceuticals		474		2,174
a	GMR Infrastructure Ltd.		Construction & Engineering		5,980		1,434
	Godrej Consumer Products Ltd.		Personal Products		1,284		12,452
	Godrej Industries Ltd.		Industrial Conglomerates		270		1,556
a	Godrej Properties Ltd.		Real Estate Management & Development		208		3,049
	Grasim Industries Ltd.		Construction Materials		1,106		11,394
	Gruh Finance Ltd.		Thrifts & Mortgage Finance		1,006		3,823
	Havell’s India Ltd.		Electrical Equipment		866		8,777
	HCL Technologies Ltd.		IT Services		1,882		28,697
	HDFC Asset Management Co. Ltd.		Capital Markets		96		3,795
	HDFC Life Insurance Co. Ltd.		Insurance		1,576		13,369
a,e	Hemisphere Properties India Ltd.		Real Estate Management & Development		262		617
	Hero Motocorp Ltd.		Automobiles		342		13,053
	Hindalco Industries Ltd.		Metals & Mining		3,164		8,543
	Hindustan Petroleum Corp. Ltd.		Oil, Gas & Consumable Fuels		2,108		8,974
	Hindustan Unilever Ltd.		Household Products		2,460		68,798
	Hindustan Zinc Ltd.		Metals & Mining		690		2,078
	Housing Development Finance Corp. Ltd.		Thrifts & Mortgage Finance		5,960		166,268
	ICICI Bank Ltd.		Banks		1,060		6,487
b	ICICI Lombard General Insurance Co. Ltd., Reg S		Insurance		546		9,321
b	ICICI Prudential Life Insurance Co. Ltd., Reg S		Insurance		1,046		6,841
a	IDFC First Bank Ltd.		Banks		7,850		4,453
	IDFC Ltd.		Diversified Financial Services		1,692		821
	Indiabulls Housing Finance Ltd.		Thrifts & Mortgage Finance		1,154		4,167
	Indian Oil Corp. Ltd.		Oil, Gas & Consumable Fuels		7,364		15,316
	Info Edge India Ltd.		Interactive Media & Services		214		6,103
	Infosys Ltd.		IT Services		12,862		146,218
b	InterGlobe Aviation Ltd., Reg S		Airlines		326		8,692
	ITC Ltd.		Tobacco		10,136		37,165
a	Jindal Steel & Power Ltd.		Metals & Mining		1,410		2,060
	JSW Energy Ltd.		Independent Power and Renewable Electricity Producers		1,352		1,241
	JSW Steel Ltd.		Metals & Mining		4,052		13,148
	Kansai Nerolac Paints Ltd.		Chemicals		428		3,170
	L&T Finance Holdings Ltd.		Diversified Financial Services		1,686		2,016
b	Larsen & Toubro Infotech Ltd., Reg S		IT Services		114		2,431
	Larsen & Toubro Ltd.		Construction & Engineering		1,170		24,339
	LIC Housing Finance Ltd.		Thrifts & Mortgage Finance		886		4,709
	Lupin Ltd.		Pharmaceuticals		772		7,796
	Mahindra & Mahindra Financial Services Ltd.		Consumer Finance		1,052		4,869



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STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin FTSE Asia ex Japan ETF(continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	India (continued)
	Mahindra & Mahindra Ltd.		Automobiles		2,024	$	15,627
	Mangalore Refinery and Petrochemicals Ltd.		Oil, Gas & Consumable Fuels		446		305
	Marico Ltd.		Personal Products		1,620		9,012
	Maruti Suzuki India Ltd.		Automobiles		420		39,801
	Motherson Sumi Systems Ltd.		Auto Components		3,225		4,776
	Mphasis Ltd.		IT Services		275		3,714
	MRF Ltd.		Auto Components		4		3,572
	Muthoot Finance Ltd.		Consumer Finance		354		3,376
	Nestle India Ltd.		Food Products		80		15,679
	NHPC Ltd.		Independent Power and Renewable Electricity Producers		9,042		2,845
	NMDC Ltd.		Metals & Mining		2,567		3,213
	NTPC Ltd.		Independent Power and Renewable Electricity Producers		8,220		13,629
	Oberoi Realty Ltd.		Real Estate Management & Development		290		2,077
	Oil & Natural Gas Corp. Ltd.		Oil, Gas & Consumable Fuels		10,316		19,185
	Oil India Ltd.		Oil, Gas & Consumable Fuels		984		2,017
a	Oracle Financial Services Software Ltd.		Software		76		3,403
	Page Industries Ltd.		Textiles, Apparel & Luxury Goods		18		5,719
	Petronet LNG Ltd.		Oil, Gas & Consumable Fuels		1,926		7,063
	Pidilite Industries Ltd.		Chemicals		426		8,679
	Piramal Enterprises Ltd.		Pharmaceuticals		324		7,463
a	Power Finance Corp. Ltd.		Diversified Financial Services		2,200		3,086
	Power Grid Corp. of India Ltd.		Electric Utilities		1,746		4,904
a	Punjab National Bank Ltd.		Banks		3,206		2,803
	Rajesh Exports Ltd.		Textiles, Apparel & Luxury Goods		478		4,498
b	RBL Bank Ltd., Reg S		Banks		1,086		5,039
	REC Ltd.		Diversified Financial Services		2,438		4,237
	Reliance Industries Ltd.		Oil, Gas & Consumable Fuels		10,758		202,238
	SBI Life Insurance Co. Ltd.		Insurance		814		9,722
	Shree Cement Ltd.		Construction Materials		28		7,463
	Shriram Transport Finance Co. Ltd.		Consumer Finance		584		8,826
	Siemens Ltd.		Industrial Conglomerates		294		6,289
a	State Bank of India		Banks		6,178		23,607
	Steel Authority of India Ltd.		Metals & Mining		3,318		1,566
	Sun Pharmaceutical Industries Ltd.		Pharmaceuticals		3,784		20,794
	Sun TV Network Ltd.		Media		324		2,161
	Tata Communications Ltd.		Diversified Telecommunication Services		262		1,387
	Tata Consultancy Services Ltd.		IT Services		3,122		92,481
a	Tata Motors Ltd.		Automobiles		3,862		6,400
a	Tata Motors Ltd., A		Automobiles		1,030		772
	Tata Power Co. Ltd.		Electric Utilities		3,270		2,884
	Tata Steel Ltd.		Metals & Mining		946		4,812
	Tech Mahindra Ltd.		IT Services		1,658		16,716
	Titan Co. Ltd.		Textiles, Apparel & Luxury Goods		1,092		19,616
	Torrent Pharmaceuticals Ltd.		Pharmaceuticals		144		3,388
	Torrent Power Ltd.		Electric Utilities		444		1,801
	TVS Motor Co. Ltd.		Automobiles		390		2,322
	UltraTech Cement Ltd.		Construction Materials		356		21,808
a	Union Bank of India Ltd.		Banks		1,284		957
	United Breweries Ltd.		Beverages		234		4,448
a	United Spirits Ltd.		Beverages		1,032		9,713
	UPL Ltd.		Chemicals		1,854		15,800
	Vedanta Ltd.		Metals & Mining		5,832		12,685
a	Vodafone Idea Ltd.		Wireless Telecommunication Services		30,442		2,642
	Voltas Ltd.		Construction & Engineering		384		3,682
	Whirlpool of India Ltd.		Household Durables		102		2,717
	Wipro Ltd.		IT Services		5,004		16,932



140	Semiannual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin FTSE Asia ex Japan ETF(continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	India (continued)
a	Wockhardt Ltd.		Pharmaceuticals		112	$	405
	Yes Bank Ltd.		Banks		5,922		3,460
	Zee Entertainment Enterprises Ltd.		Media		1,850		6,931


							1,848,560

	Indonesia 2.3%
	Adaro Energy Tbk PT		Oil, Gas & Consumable Fuels		44,600		4,053
	Astra Agro Lestari Tbk PT		Food Products		1,400		1,063
	Astra International Tbk PT		Automobiles		70,000		32,547
	Bank Central Asia Tbk PT		Banks		33,400		71,412
	Bank Danamon Indonesia Tbk PT		Banks		2,400		803
	Bank Mandiri Persero Tbk PT		Banks		64,400		31,644
	Bank Negara Indonesia Persero Tbk PT		Banks		25,800		13,359
	Bank Rakyat Indonesia Persero Tbk PT		Banks		183,200		53,172
	Bukit Asam Tbk PT		Oil, Gas & Consumable Fuels		15,600		2,484
a	Bumi Serpong Damai Tbk PT		Real Estate Management & Development		25,200		2,468
	Charoen Pokphand Indonesia Tbk PT		Food Products		25,200		9,498
	Gudang Garam Tbk PT		Tobacco		1,600		5,903
	Hanjaya Mandala Sampoerna Tbk PT		Tobacco		28,400		4,582
	Indah Kiat Pulp & Paper Corp Tbk PT		Paper & Forest Products		9,000		4,105
	Indocement Tunggal Prakarsa Tbk PT		Construction Materials		4,400		5,804
	Indofood CBP Sukses Makmur Tbk PT		Food Products		7,800		6,608
	Indofood Sukses Makmur Tbk PT		Food Products		15,200		8,245
	Jasa Marga Persero Tbk PT		Transportation Infrastructure		8,000		3,212
	Kalbe Farma Tbk PT		Pharmaceuticals		64,600		7,623
	Matahari Department Store Tbk PT		Multiline Retail		8,600		2,078
	Media Nusantara Citra Tbk PT		Media		19,000		1,653
	Perusahaan Gas Negara (Persero) Tbk PT		Gas Utilities		37,600		5,562
	Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk, B		Diversified Telecommunication Services		160,200		48,641
	PT Barito Pacific Tbk		Chemicals		63,800		4,450
a	PT XL Axiata Tbk		Wireless Telecommunication Services		12,800		3,102
	Semen Indonesia (Persero) Tbk PT		Construction Materials		10,000		8,137
a	Smartfren Telecom Tbk PT		Wireless Telecommunication Services		130,200		1,559
	Surya Citra Media Tbk PT		Media		22,000		1,798
	Tower Bersama Infrastructure Tbk PT		Diversified Telecommunication Services		7,200		3,107
	Unilever Indonesia Tbk PT		Household Products		3,800		12,448
	United Tractors Tbk PT		Oil, Gas & Consumable Fuels		5,200		7,537
a	Vale Indonesia Tbk PT		Metals & Mining		7,000		1,731


							370,388

	Italy 0.0%^†
	Prada SpA		Textiles, Apparel & Luxury Goods		1,800		5,235

	Luxembourg 0.0%^†
	L’Occitane International SA		Personal Products		1,500		2,985

	Macau 0.4%
	Galaxy Entertainment Group Ltd.		Hotels, Restaurants & Leisure		8,000		49,749
a	Macau Legend Development Ltd.		Hotels, Restaurants & Leisure		4,000		444
	SJM Holdings Ltd.		Hotels, Restaurants & Leisure		6,000		5,702
	Wynn Macau Ltd.		Hotels, Restaurants & Leisure		4,800		9,368


							65,263

	Malaysia 2.8%
	AirAsia Group Bhd		Airlines		5,800		2,438
	Alliance Bank Malaysia Bhd.		Banks		4,200		2,859
	AMMB Holdings Bhd.		Banks		7,000		6,921
	Astro Malaysia Holdings Bhd.		Media		5,400		1,883



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STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin FTSE Asia ex Japan ETF(continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Malaysia (continued)
	Axiata Group Bhd.		Wireless Telecommunication Services		15,400	$	15,816
	British American Tobacco Malaysia Bhd.		Tobacco		400		1,809
	CIMB Group Holdings Bhd.		Banks		23,800		28,592
	Dialog Group Bhd.		Energy Equipment & Services		16,400		13,317
	Digi.com Bhd.		Wireless Telecommunication Services		12,800		14,521
a	FGV Holdings Bhd.		Food Products		7,200		1,530
	Fraser & Neave Holdings Bhd.		Beverages		400		3,334
	Gamuda Bhd.		Construction & Engineering		7,600		6,716
	Genting Bhd.		Hotels, Restaurants & Leisure		8,000		10,967
	Genting Malaysia Bhd.		Hotels, Restaurants & Leisure		9,800		7,092
	HAP Seng Consolidated Bhd.		Industrial Conglomerates		2,400		5,652
	Hartalega Holdings Bhd.		Health Care Equipment & Supplies		5,200		6,520
	Hong Leong Bank Bhd.		Banks		2,200		8,596
	Hong Leong Financial Group Bhd.		Banks		800		3,107
	IHH Healthcare Bhd.		Health Care Providers & Services		10,000		13,566
	IJM Corp. Bhd.		Construction & Engineering		10,600		5,544
	IOI Corp. Bhd.		Food Products		10,800		11,427
	IOI Properties Group Bhd.		Real Estate Management & Development		6,600		1,797
	Kuala Lumpur Kepong Bhd.		Food Products		1,600		8,820
	Malayan Banking Bhd.		Banks		21,038		42,759
	Malaysia Airports Holdings Bhd.		Transportation Infrastructure		3,200		6,611
	Maxis Bhd.		Wireless Telecommunication Services		9,200		12,305
	MISC Bhd.		Marine		4,800		8,942
	Nestle (Malaysia) Bhd.		Food Products		200		6,960
	Petronas Chemicals Group Bhd.		Chemicals		9,600		17,288
	Petronas Dagangan Bhd.		Oil, Gas & Consumable Fuels		1,000		5,637
	Petronas Gas Bhd.		Gas Utilities		2,600		10,172
	PPB Group Bhd.		Food Products		2,440		10,571
	Press Metal Aluminium Holdings Bhd.		Metals & Mining		6,600		7,503
	Public Bank Bhd.		Banks		10,800		51,795
	QL Resources Bhd.		Food Products		2,600		4,477
	RHB Bank Bhd.		Banks		5,600		7,543
	Sime Darby Bhd.		Industrial Conglomerates		12,400		6,664
	Sime Darby Plantation Bhd.		Food Products		12,000		13,556
	Sime Darby Property Bhd.		Real Estate Management & Development		13,600		2,729
	Telekom Malaysia Bhd.		Diversified Telecommunication Services		3,800		3,267
	Tenaga Nasional Bhd.		Electric Utilities		13,400		43,653
	Top Glove Corp. Bhd.		Health Care Equipment & Supplies		6,200		6,589
a	UEM Sunrise Bhd.		Real Estate Management & Development		4,800		762
	Westports Holdings Bhd.		Transportation Infrastructure		3,800		3,748
	YTL Corp. Bhd.		Multi-Utilities		15,400		3,384


							459,739

	Pakistan 0.0%^†
	Fauji Fertilizer Co. Ltd.		Chemicals		2,000		1,190
	Habib Bank Ltd.		Banks		2,000		1,512
	Oil & Gas Development Co. Ltd.		Oil, Gas & Consumable Fuels		2,000		1,574
	Pakistan Petroleum Ltd.		Oil, Gas & Consumable Fuels		1,670		1,453


							5,729

	Philippines 1.4%
	Aboitiz Power Corp.		Independent Power and Renewable Electricity Producers		5,200		3,848
	Alliance Global Group Inc.		Industrial Conglomerates		15,000		3,154
	Ayala Corp.		Industrial Conglomerates		865		14,761
	Ayala Land Inc.		Real Estate Management & Development		24,200		23,089
	Bank of the Philippine Islands		Banks		6,124		10,988
	BDO Unibank Inc.		Banks		6,720		18,541



142	Semiannual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin FTSE Asia ex Japan ETF(continued)



		Industry			Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Philippines (continued)
	Bloomberry Resorts Corp.		Hotels, Restaurants & Leisure			11,800	$	2,472
	DMCI Holdings Inc.		Industrial Conglomerates			14,200		2,277
	Globe Telecom Inc.		Wireless Telecommunication Services			100		3,531
	GT Capital Holdings Inc.		Industrial Conglomerates			337		5,475
	International Container Terminal Services Inc.		Transportation Infrastructure			3,700		8,595
	JG Summit Holdings Inc.		Industrial Conglomerates			9,680		13,540
	Jollibee Foods Corp.		Hotels, Restaurants & Leisure			1,420		6,082
	LT Group Inc.		Industrial Conglomerates			9,000		2,421
	Manila Electric Co.		Electric Utilities			920		6,568
	Megaworld Corp.		Real Estate Management & Development			41,000		3,457
	Metro Pacific Investments Corp.		Diversified Financial Services			50,000		4,804
	Metropolitan Bank & Trust Co.		Banks			5,546		7,319
	PLDT Inc.		Wireless Telecommunication Services			420		9,173
	San Miguel Corp.		Industrial Conglomerates			1,240		4,103
	San Miguel Pure Foods Co. Inc.		Food Products			2,200		3,905
	Semirara Mining and Power Corp.		Oil, Gas & Consumable Fuels			4,000		1,760
	SM Investments Corp.		Industrial Conglomerates			1,660		31,099
	SM Prime Holdings Inc.		Real Estate Management & Development			31,200		22,393
	Universal Robina Corp.		Food Products			3,020		9,090


								222,445

	Singapore 4.1%
	Ascendas REIT		Equity Real Estate Investment Trusts (REITs	)		9,000		20,305
	BOC Aviation Ltd.		Trading Companies & Distributors			800		7,383
	CapitaLand Commercial Trust		Equity Real Estate Investment Trusts (REITs	)		8,800		13,172
	CapitaLand Ltd.		Real Estate Management & Development			8,600		21,952
	CapitaLand Mall Trust		Equity Real Estate Investment Trusts (REITs	)		8,400		15,975
	City Developments Ltd.		Real Estate Management & Development			1,600		11,362
	ComfortDelGro Corp. Ltd.		Road & Rail			7,200		12,496
	DBS Group Holdings Ltd.		Banks			6,200		112,083
	Frasers Property Ltd.		Real Estate Management & Development			600		759
	Genting Singapore Ltd.		Hotels, Restaurants & Leisure			20,400		12,981
	Golden Agri-Resources Ltd.		Food Products			21,200		3,449
	Hutchison Port Holdings Trust		Transportation Infrastructure			18,800		2,933
	Jardine Cycle & Carriage Ltd.		Distributors			400		8,677
	Keppel Corp. Ltd.		Industrial Conglomerates			5,000		21,441
	Keppel REIT		Equity Real Estate Investment Trusts (REITs	)		7,200		6,560
	Mapletree Commercial Trust		Equity Real Estate Investment Trusts (REITs	)		6,600		10,929
b	Mapletree Greater China Commercial Trust, Reg S		Equity Real Estate Investment Trusts (REITs	)		7,800		7,445
	Mapletree Industrial Trust		Equity Real Estate Investment Trusts (REITs	)		5,200		9,137
	Mapletree Logistics Trust		Equity Real Estate Investment Trusts (REITs	)		8,600		10,075
	Olam International Ltd.		Food & Staples Retailing			1,800		2,343
	Oversea-Chinese Banking Corp. Ltd.		Banks			11,600		91,096
	SATS Ltd.		Transportation Infrastructure			2,200		7,700
	SembCorp Industries Ltd.		Industrial Conglomerates			3,200		4,813
a	SembCorp Marine Ltd.		Machinery			3,000		2,560
	SIA Engineering Co. Ltd.		Transportation Infrastructure			800		1,493
	Singapore Airlines Ltd.		Airlines			1,800		11,897
	Singapore Exchange Ltd.		Capital Markets			2,800		17,150
	Singapore Post Ltd.		Air Freight & Logistics			5,200		3,666
	Singapore Press Holdings Ltd.		Media			6,000		9,025
	Singapore Technologies Engineering Ltd.		Aerospace & Defense			5,200		14,439
	Singapore Telecommunications Ltd.		Diversified Telecommunication Services			25,600		57,387
	StarHub Ltd.		Wireless Telecommunication Services			2,200		2,068
	Suntec REIT		Equity Real Estate Investment Trusts (REITs	)		7,600		10,442
	United Overseas Bank Ltd.		Banks			4,400		81,643
	UOL Group Ltd.		Real Estate Management & Development			1,600		8,677



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STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin FTSE Asia ex Japan ETF(continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Singapore (continued)
	Venture Corp. Ltd.		Electronic Equipment, Instruments & Components		1,000	$	11,071
	Wilmar International Ltd.		Food Products		6,600		17,802
	Wing Tai Holdings Ltd.		Real Estate Management & Development		1,800		2,668
	Yangzijiang Shipbuilding Holdings Ltd.		Machinery		7,200		4,998
	Yanlord Land Group Ltd.		Real Estate Management & Development		2,200		1,861


							673,913

	South Korea 12.9%
	Amorepacific Corp.		Personal Products		110		12,921
	AmorePacific Group		Personal Products		96		5,249
	BGF Co. Ltd.		Industrial Conglomerates		150		752
	BGF Retail Co. Ltd.		Food & Staples Retailing		20		3,294
	BNK Financial Group Inc.		Banks		1,016		6,107
a	Celltrion Healthcare Co. Ltd.		Health Care Providers & Services		198		8,343
a	Celltrion Inc.		Biotechnology		340		46,616
	Cheil Worldwide Inc.		Media		246		5,100
	CJ CheilJedang Corp.		Food Products		28		5,489
	CJ Corp.		Industrial Conglomerates		40		2,742
	CJ ENM Co. Ltd.		Internet & Direct Marketing Retail		34		4,815
a	CJ Logistics Corp.		Road & Rail		24		2,899
	Daelim Industrial Co. Ltd.		Construction & Engineering		92		7,999
a	Daewoo Engineering & Construction Co. Ltd.		Construction & Engineering		558		2,253
a	Daewoo Shipbuilding & Marine Engineering Co. Ltd.		Machinery		166		4,247
	DB Insurance Co. Ltd.		Insurance		160		6,902
	DGB Financial Group Inc.		Banks		616		3,837
	Dongsuh Cos. Inc.		Food & Staples Retailing		118		1,776
	Doosan Bobcat Inc.		Machinery		86		2,545
e	Doosan Corp.		Industrial Conglomerates		22		1,926
a	Doosan Heavy Industries and Construction Co. Ltd.		Electrical Equipment		415		2,359
a	Doosan Infracore Co. Ltd.		Machinery		478		2,518
	E-MART Inc.		Food & Staples Retailing		72		6,802
	Fila Korea Ltd.		Textiles, Apparel & Luxury Goods		180		8,713
	GS Engineering & Construction Corp.		Construction & Engineering		202		5,573
	GS Holdings Corp.		Oil, Gas & Consumable Fuels		176		7,401
	GS Retail Co. Ltd.		Food & Staples Retailing		88		3,035
	Hana Financial Group Inc.		Banks		1,030		30,354
	Hankook Tire & Technology Co. Ltd.		Auto Components		254		6,848
	Hanmi Pharm Co. Ltd.		Pharmaceuticals		24		5,538
	Hanmi Science Co. Ltd.		Pharmaceuticals		43		1,424
	Hanon Systems		Auto Components		548		5,498
	Hanssem Co. Ltd.		Household Durables		30		1,505
a	Hanwha Aerospace Co. Ltd.		Aerospace & Defense		118		4,158
	Hanwha Chemical Corp.		Chemicals		266		3,992
	Hanwha Corp.		Industrial Conglomerates		120		2,533
	Hanwha Corp.		Industrial Conglomerates		140		1,609
	Hanwha Life Insurance Co. Ltd.		Insurance		940		1,870
	HDC Holdings Co. Ltd.		Construction & Engineering		136		1,467
	HDC Hyundai DevelopmentCo-Engineering & Construction		Construction & Engineering		102		2,801
a	Helixmith Co. Ltd.		Biotechnology		63		3,492
	Hite Jinro Co. Ltd.		Beverages		116		2,638
a	HLB Inc.		Leisure Equipment & Products		126		6,362
	Hotel Shilla Co. Ltd.		Specialty Retail		108		7,783
	Hyundai Construction Equipment Co. Ltd.		Machinery		44		1,162
	Hyundai Department Store Co. Ltd.		Multiline Retail		54		3,526
	Hyundai Engineering & Construction Co. Ltd.		Construction & Engineering		252		9,754



144	Semiannual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin FTSE Asia ex Japan ETF(continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	South Korea (continued)
	Hyundai Glovis Co. Ltd.		Air Freight & Logistics		62	$	8,086
	Hyundai Heavy Industries Holdings Co. Ltd.		Machinery		36		10,519
	Hyundai Marine & Fire Insurance Co. Ltd.		Insurance		206		4,547
	Hyundai Mipo Dockyard Co. Ltd.		Machinery		76		2,866
	Hyundai Mobis Co. Ltd.		Auto Components		224		47,191
	Hyundai Motor Co.		Automobiles		488		54,669
	Hyundai Steel Co.		Metals & Mining		250		8,130
	Hyundai Wia Corp.		Auto Components		54		2,302
	Industrial Bank of Korea		Banks		964		10,638
	Kakao Corp.		Interactive Media & Services		172		19,484
	Kangwon Land Inc.		Hotels, Restaurants & Leisure		376		9,289
	KB Financial Group Inc.		Banks		1,338		47,764
	KCC Corp.		Building Products		20		3,645
	KEPCO Plant Service and Engineering Co. Ltd.		Commercial Services & Supplies		82		2,368
	Kia Motors Corp.		Automobiles		884		33,700
	Korea Aerospace Industries Ltd.		Aerospace & Defense		220		7,191
a	Korea Electric Power Corp.		Electric Utilities		872		18,881
	Korea Gas Corp.		Gas Utilities		102		3,377
	Korea Investment Holdings Co. Ltd.		Capital Markets		132		8,310
a	Korea Shipbuilding & Offshore Engineering Co Ltd.		Machinery		148		15,343
	Korea Zinc Co. Ltd.		Metals & Mining		34		12,734
	Korean Air Lines Co. Ltd.		Airlines		174		3,331
	KT&G Corp.		Tobacco		382		33,692
	Kumho Petrochemical Co. Ltd.		Chemicals		60		3,591
	LG Chem Ltd.		Chemicals		158		39,561
	LG Corp.		Industrial Conglomerates		312		18,259
a	LG Display Co. Ltd.		Electronic Equipment, Instruments & Components		770		9,109
	LG Electronics Inc.		Household Durables		382		21,525
	LG Household & Health Care Ltd.		Personal Products		30		32,780
	LG Uplus Corp.		Diversified Telecommunication Services		672		7,669
	Lotte Chemical Corp.		Chemicals		50		9,865
	Lotte Chilsung Beverage Co. Ltd.		Beverages		12		1,389
	Lotte Corp.		Industrial Conglomerates		76		2,303
	LOTTE Fine Chemical Co. Ltd.		Chemicals		68		2,592
	Lotte Shopping Co. Ltd.		Multiline Retail		40		4,314
	LS Corp.		Electrical Equipment		66		2,618
	Mando Corp.		Auto Components		114		3,450
	Medy-tox Inc.		Biotechnology		14		4,215
	Mirae Asset Daewoo Co. Ltd.		Capital Markets		202		714
	Mirae Asset Daewood Co. Ltd.		Capital Markets		1,486		9,317
	Naver Corp.		Interactive Media & Services		460		60,377
	NCsoft Corp.		Entertainment		58		25,263
a	Netmarble Corp.		Entertainment		58		4,582
	NH Investment & Securities Co. Ltd.		Capital Markets		468		4,969
a	NHN Corp.		Entertainment		38		1,979
	Nongshim Co. Ltd.		Food Products		10		2,086
	OCI Co. Ltd.		Chemicals		66		3,835
	Orion Corp.		Food Products		74		6,088
	Ottogi Corp.		Food Products		4		1,950
	Paradise Co. Ltd.		Hotels, Restaurants & Leisure		174		2,691
	POSCO		Metals & Mining		234		44,407
	POSCO Chemical Co. Ltd.		Construction Materials		76		2,805
	Posco International Corp.		Trading Companies & Distributors		168		2,683
	S-1 Corp.		Commercial Services & Supplies		64		5,249
	S-Oil Corp.		Oil, Gas & Consumable Fuels		140		11,634
a	Samsung Biologics Co. Ltd.		Life Sciences Tools & Services		46		11,825



franklintempleton.com	Semiannual Report	145

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

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		284	$	21,297
	Samsung Card Co. Ltd.		Consumer Finance		106		3,115
	Samsung Electro-Mechanics Co. Ltd.		Electronic Equipment, Instruments & Components		196		16,877
	Samsung Electronics Co. Ltd.		Technology Hardware, Storage & Peripherals		16,268		667,095
a	Samsung Engineering Co. Ltd.		Construction & Engineering		546		7,669
	Samsung Fire & Marine Insurance Co. Ltd.		Insurance		110		20,507
a	Samsung Heavy Industries Co. Ltd.		Machinery		1,520		10,013
	Samsung Life Insurance Co. Ltd.		Insurance		218		12,958
	Samsung SDI Co. Ltd.		Electronic Equipment, Instruments & Components		182		33,931
	Samsung SDS Co. Ltd.		IT Services		110		17,519
	Samsung Securities Co. Ltd.		Capital Markets		228		6,738
	Shinhan Financial Group Co. Ltd.		Banks		1,558		54,445
	Shinsegae Co. Ltd.		Multiline Retail		24		5,267
a	SillaJen Inc.		Biotechnology		196		1,334
	SK Holdings Co. Ltd.		Industrial Conglomerates		112		19,101
	SK Hynix Inc.		Semiconductors & Semiconductor Equipment		1,786		122,735
	SK Innovation Co. Ltd.		Oil, Gas & Consumable Fuels		198		27,478
	SK Networks Co. Ltd.		Trading Companies & Distributors		538		2,501
	SK Telecom Co. Ltd.		Wireless Telecommunication Services		80		16,152
	SKC Co. Ltd.		Chemicals		72		2,396
	Ssangyong Cement Industrial Co. Ltd.		Construction Materials		372		1,900
	Woongjin Coway Co. Ltd.		Household Durables		192		13,580
	Woori Financial Group Inc.		Banks		1,928		20,067
	Yuhan Corp.		Pharmaceuticals		31		5,922


							2,120,875

	Taiwan 12.9%
	Acer Inc.		Technology Hardware, Storage & Peripherals		10,000		5,737
	Advantech Co. Ltd.		Technology Hardware, Storage & Peripherals		1,000		8,800
	ASE Industrial Holding Co. Ltd.		Semiconductors & Semiconductor Equipment		11,500		26,244
	Asia Cement Corp.		Construction Materials		8,000		11,165
	Asustek Computer Inc.		Technology Hardware, Storage & Peripherals		2,000		13,312
	AU Optronics Corp.		Electronic Equipment, Instruments & Components		32,000		8,107
	Capital Securities Corp.		Capital Markets		10,840		3,078
	Catcher Technology Co. Ltd.		Technology Hardware, Storage & Peripherals		2,780		21,058
	Cathay Financial Holding Co. Ltd.		Insurance		28,000		36,913
	Chailease Holding Co. Ltd.		Diversified Financial Services		4,120		16,600
	Chang Hwa Commercial Bank Ltd.		Banks		21,337		14,890
	Cheng Shin Rubber Industry Co. Ltd.		Auto Components		6,000		8,858
	Chicony Electronics Co. Ltd.		Technology Hardware, Storage & Peripherals		2,010		5,922
	China Airlines Ltd.		Airlines		8,000		2,341
	China Development Financial Holding Corp.		Insurance		48,000		14,296
a	China Life Insurance Co. Ltd.		Insurance		9,550		7,572
e	China Motor Corp.		Automobiles		800		1,202
	China Steel Corp.		Metals & Mining		42,000		31,137
	Chunghwa Telecom Co. Ltd.		Diversified Telecommunication Services		14,000		50,089
	Compal Electronics Inc.		Technology Hardware, Storage & Peripherals		16,000		9,231
	CTBC Financial Holding Co. Ltd.		Banks		62,000		41,167
	Delta Electronics Inc.		Electronic Equipment, Instruments & Components		8,000		34,167
	E.Sun Financial Holding Co. Ltd.		Banks		37,052		31,350
	Eclat Textile Co. Ltd.		Textiles, Apparel & Luxury Goods		700		9,386
a	Epistar Corp.		Semiconductors & Semiconductor Equipment		4,000		3,127
	Eternal Materials Co. Ltd.		Chemicals		4,000		3,268
	EVA Airways Corp.		Airlines		7,124		3,134
a	Evergreen Marine Corp. Taiwan Ltd.		Marine		6,878		2,882
	Far Eastern International Bank		Banks		8,212		3,176
	Far Eastern New Century Corp.		Industrial Conglomerates		14,000		12,929



146	Semiannual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin FTSE Asia ex Japan ETF(continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Taiwan (continued)
	Far EasTone Telecommunications Co. Ltd.		Wireless Telecommunication Services		6,000	$	14,021
	Feng Tay Enterprise Co. Ltd.		Textiles, Apparel & Luxury Goods		1,100		7,889
	First Financial Holding Co. Ltd.		Banks		34,743		24,413
	FIT Hon Teng Ltd.		Electronic Equipment, Instruments & Components		2,000		821
	Formosa Chemicals & Fibre Corp.		Chemicals		12,000		33,535
	Formosa Petrochemical Corp.		Oil, Gas & Consumable Fuels		4,000		12,661
	Formosa Plastics Corp.		Chemicals		16,000		48,736
	Formosa Taffeta Co. Ltd.		Textiles, Apparel & Luxury Goods		4,000		4,358
	Foxconn Technology Co. Ltd.		Electronic Equipment, Instruments & Components		4,000		8,342
	Fubon Financial Holding Co. Ltd.		Insurance		26,000		37,335
	Giant Manufacturing Co. Ltd.		Leisure Equipment & Products		1,000		6,801
	Globalwafers Co. Ltd.		Semiconductors & Semiconductor Equipment		1,000		10,121
	Hon Hai Precision Industry Co. Ltd.		Electronic Equipment, Instruments & Components		40,800		96,265
	Hotai Motor Co. Ltd.		Specialty Retail		1,000		15,198
	HTC Corp.		Technology Hardware, Storage & Peripherals		2,000		2,289
	Hua Nan Financial Holdings Co. Ltd.		Banks		31,153		21,037
	Innolux Corp.		Electronic Equipment, Instruments & Components		30,000		6,382
	Inventec Corp.		Technology Hardware, Storage & Peripherals		12,000		8,277
	Largan Precision Co. Ltd.		Electronic Equipment, Instruments & Components		360		51,637
	Lite-On Technology Corp.		Technology Hardware, Storage & Peripherals		8,000		12,713
	MediaTek Inc.		Semiconductors & Semiconductor Equipment		5,000		59,469
	Mega Financial Holding Co. Ltd.		Banks		38,000		35,214
	Nan Ya Plastics Corp.		Chemicals		20,000		44,932
	Nanya Technology Corp.		Semiconductors & Semiconductor Equipment		2,000		5,189
	Novatek Microelectronics Corp. Ltd.		Semiconductors & Semiconductor Equipment		2,000		11,475
	Oriental Union Chemical Corp.		Chemicals		2,000		1,421
	Pegatron Corp.		Technology Hardware, Storage & Peripherals		6,000		10,443
	Pou Chen Corp.		Textiles, Apparel & Luxury Goods		10,000		12,812
	President Chain Store Corp.		Food & Staples Retailing		2,000		18,695
	Quanta Computer Inc.		Technology Hardware, Storage & Peripherals		10,000		18,244
	Realtek Semiconductor Corp.		Semiconductors & Semiconductor Equipment		2,000		14,827
	Shin Kong Financial Holding Co. Ltd.		Insurance		41,275		12,492
	SinoPac Financial Holdings Co. Ltd.		Banks		36,800		14,353
	Synnex Technology International Corp.		Electronic Equipment, Instruments & Components		6,000		7,020
	Taishin Financial Holding Co. Ltd.		Banks		35,357		15,784
	Taiwan Business Bank		Banks		15,372		6,317
	Taiwan Cement Corp.		Construction Materials		16,479		21,061
	Taiwan Cooperative Financial Holding Co. Ltd.		Banks		32,010		21,151
	Taiwan Fertilizer Co. Ltd.		Chemicals		2,000		2,933
	Taiwan Glass Industry Corp.		Building Products		4,000		1,502
	Taiwan High Speed Rail Corp.		Transportation Infrastructure		8,000		9,102
	Taiwan Mobile Co. Ltd.		Wireless Telecommunication Services		6,000		21,660
	Taiwan Secom Co. Ltd.		Commercial Services & Supplies		1,000		2,836
	Taiwan Semiconductor Manufacturing Co. Ltd.		Semiconductors & Semiconductor Equipment		84,000		736,450
	Teco Electric & Machinery Co. Ltd.		Electrical Equipment		6,000		4,835
	The Shanghai Commercial & Savings Bank Ltd.		Banks		12,000		20,152
a	TPK Holding Co. Ltd.		Electronic Equipment, Instruments & Components		2,000		3,604
	Transcend Information Inc.		Technology Hardware, Storage & Peripherals		2,000		4,152
	U-Ming Marine Transport Corp.		Marine		2,000		2,163
	Uni-President Enterprises Corp.		Food Products		16,000		38,576
	Unimicron Technology Corp.		Electronic Equipment, Instruments & Components		4,000		5,628
	United Microelectronics Corp.		Semiconductors & Semiconductor Equipment		38,000		16,413
	Vanguard International Semiconductor Corp.		Semiconductors & Semiconductor Equipment		4,000		8,084
	Walsin Lihwa Corp.		Electrical Equipment		12,000		5,608
	Walsin Technology Corp.		Electronic Equipment, Instruments & Components		2,000		11,249
	Wan Hai Lines Ltd.		Marine		2,000		1,177
	Wistron Corp.		Technology Hardware, Storage & Peripherals		10,293		8,311



franklintempleton.com	Semiannual Report	147

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin FTSE Asia ex Japan ETF(continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Taiwan (continued)
	Yageo Corp.		Electronic Equipment, Instruments & Components		1,000	$	7,945
	Yuanta Financial Holding Co. Ltd.		Capital Markets		40,000		23,852
	Yulon Motor Co. Ltd.		Automobiles		4,000		2,533


							2,133,633

	Thailand 3.7%
	Advanced Info Service PCL		Wireless Telecommunication Services		3,800		27,334
	Airports of Thailand Public Co. Ltd., NVDR		Transportation Infrastructure		14,800		36,171
	B Grimm Power PCL, NVDR		Independent Power and Renewable Electricity Producers		2,389		3,378
	Bangkok Bank PCL, fgn.		Banks		1,600		9,207
	Bangkok Dusit Medical Services PCL		Health Care Providers & Services		30,400		24,054
	Bangkok Expressway and Metro PCL, NVDR		Transportation Infrastructure		28,200		9,958
	Bangkok Life Assurance PCL, NVDR		Insurance		1,400		929
	Banpu PCL, NVDR		Oil, Gas & Consumable Fuels		15,200		5,864
	Berli Jucker PCL, NVDR		Food & Staples Retailing		3,400		5,864
	BTS Group Holdings PCL, NVDR		Road & Rail		27,600		12,092
	Bumrungrad Hospital PCL		Health Care Providers & Services		1,200		5,022
	Central Pattana PCL		Real Estate Management & Development		8,600		19,120
	Charoen Pokphand Foods PCL, NVDR		Food Products		12,400		10,642
	CP ALL PCL		Food & Staples Retailing		18,000		47,817
	Delta Electronics Thailand PCL		Electronic Equipment, Instruments & Components		1,400		2,266
	Digital Telecommunications Infrastructure Fund, fgn.		Diversified Financial Services		15,000		8,534
	Electricity Generating PCL		Independent Power and Renewable Electricity Producers		1,000		11,738
	Energy Absolute PCL, NVDR		Independent Power and Renewable Electricity Producers		5,600		8,789
	Global Power Synergy PCL		Independent Power and Renewable Electricity Producers		2,400		5,512
a	Global Power Synergy PCL, rts., 10/04/19		Independent Power and Renewable Electricity Producers		1,234		575
	Gulf Energy Development PCL, NVDR		Independent Power and Renewable Electricity Producers		2,600		13,601
	Home Product Center PCL, NVDR		Specialty Retail		20,000		11,182
	Indorama Ventures PCL, NVDR		Chemicals		6,400		6,801
	Intouch Holdings PCL		Wireless Telecommunication Services		7,600		16,276
	IRPC PCL		Oil, Gas & Consumable Fuels		36,400		4,380
	Kasikornbank PCL, fgn.		Banks		4,000		20,533
	Kasikornbank PCL, NVDR		Banks		2,800		14,327
	Krung Thai Bank PCL		Banks		22,400		12,597
	Krungthai Card PCL, NVDR		Consumer Finance		4,644		6,491
	Land and Houses PCL, NVDR		Real Estate Management & Development		25,800		8,098
	Minor International PCL		Hotels, Restaurants & Leisure		12,600		15,449
	Muangthai Capital PCL		Consumer Finance		2,400		4,473
	Osotspa PCL, NVDR		Beverages		4,200		5,115
	PTT Exploration and Production PCL, NVDR		Oil, Gas & Consumable Fuels		4,800		18,990
	PTT Global Chemical PCL, NVDR		Chemicals		7,400		13,005
	PTT PCL		Oil, Gas & Consumable Fuels		49,400		74,702
	Ratch Group PCL, NVDR		Independent Power and Renewable Electricity Producers		2,800		6,546
	Siam City Cement PCL, NVDR		Construction Materials		200		1,406
	Siam Commercial Bank PCL		Banks		8,400		32,408
	Siam Makro Public Company Ltd.		Food & Staples Retailing		800		883
a	Thai Airways International PCL, NVDR		Airlines		3,600		1,071
	Thai Oil PCL		Oil, Gas & Consumable Fuels		3,600		8,210
	Thai Union Frozen Products PCL		Food Products		10,000		5,460
	The Siam Cement PCL		Construction Materials		3,000		40,020
	TMB Bank PCL, rts., 02/20/49		Banks		73,600		3,778
a	TMB Bank PCL, rts., 2/20/49		Banks		50,951		283
	Total Access Communication PCL		Wireless Telecommunication Services		2,400		4,512



148	Semiannual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

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

36,600

6,282

611,745

Total Common Stocks and Other Equity Interests
(Cost $18,418,254)

16,253,205

Preferred Stocks 0.7%

South Korea 0.7%

Amorepacific Corp., 1.617%, pfd.

Personal Products

1,838

CJ CheilJedang Corp., 3.381%, pfd.

Food Products

351

Hyundai Motor Co., 4.829%, pfd., 2

Automobiles

124

8,801

Hyundai Motor Co., 5.301%, pfd.

Automobiles

4,854

LG Chem Ltd., 3.612%, pfd.

Chemicals

3,361

LG Electronics Inc., 2.914%, pfd.

Household Durables

1,515

LG Household & Health Care Ltd., 1.206%, pfd.

Personal Products

3,867

Samsung Electronics Co. Ltd., 3.587%, pfd.

Technology Hardware, Storage & Peripherals

2,848

94,049

Samsung Fire & Marine Insurance Co. Ltd., 7.080%, pfd.

Insurance

1,902

Total Preferred Stocks
(Cost $140,067)

120,538

Warrants (Cost $—) 0.0%^†

Thailand 0.0%^†

BTS Group Holdings PCL, wts., 11/29/19

Road & Rail

—

Corporate Bonds & Notes (Cost $90) 0.0%^†

India 0.0%^†

Britannia Industries Ltd., senior secured note,
first lien, 8.00%

Food Products

6,300

Short Term Investments 0.1%

Investments from Cash Collateral Received for Loaned Securities 0.1%

United States 0.1%

g,h

Institutional Fiduciary Trust Portfolio, 1.71%

Money Market Funds

5,820

Total Investments
(Cost $18,564,231) 99.3%

16,379,654

Other Assets, less Liabilities 0.7%

122,447

Net Assets 100.0%

16,502,101

See Abbreviations on page 322.

^†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 September 30, 2019, the aggregate value of these securities was $97,069, representing 0.6% of net assets.

^dA portion or all of the security is on loan at September 30, 2019. See Note 1(c).

^eFair valued using significant unobservable inputs. See Note 8 regarding fair value measurements.

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

^gSee Note 3(c) regarding investments in affiliated management investment companies.

^hThe rate shown is the annualizedseven-day effective yield at period end.



franklintempleton.com	Semiannual Report	149

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin FTSE Asia ex Japan ETF(continued)

At September 30, 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

100,190

12/20/19

(2,454

)

*As of period end.



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

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin FTSE Australia ETF


	Six Months Ended September 30, 2019 (unaudited)			Year Ended March 31,
	Six Months Ended September 30, 2019 (unaudited)			2019			2018^a

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

Net asset value, beginning of period	$	24.63		$	24.67		$	25.23


Income from investment operations^b:

Net investment income^c		0.60			1.29			0.52

Net realized and unrealized gains (losses)		0.77			(0.37	)		(1.03	)


Total from investment operations		1.37			0.92			(0.51	)


Less distributions from net investment income		(0.69	)		(0.96	)		(0.05	)


Net asset value, end of period	$	25.31		$	24.63		$	24.67


Total return^d		5.58%			4.00%			(2.05)%

Ratios to average net assets^e

Total expenses		0.09%			0.09%			0.09%

Net investment income		4.78%			5.30%			4.96%

Supplemental data

Net assets, end of period (000’s)		$11,389			$7,389			$2,467

Portfolio turnover rate^f		5.55%			4.56%			1.63%

Portfolio turnover rate excluding portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely or in part for cash^f,g		5.55%			—%			—%

^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.

^gEffective September 30, 2019.



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FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, September 30, 2019 (unaudited)

Franklin FTSE Australia ETF



		Industry			Shares		Value
	Common Stocks 99.7%
	Australia 97.8%
	Adelaide Brighton Ltd.		Construction Materials			4,932	$	10,145
a	Afterpay Touch Group Ltd.		IT Services			1,962		47,466
	AGL Energy Ltd.		Multi-Utilities			7,011		90,599
	ALS Ltd.		Professional Services			5,166		27,943
	Altium Ltd.		Software			1,152		25,912
	Alumina Ltd.		Metals & Mining			26,604		42,525
	AMP Ltd.		Diversified Financial Services			35,856		44,134
	Ansell Ltd.		Health Care Equipment & Supplies			1,431		26,454
	Apa Group		Gas Utilities			12,654		97,805
	Aristocrat Leisure Ltd.		Hotels, Restaurants & Leisure			6,822		140,794
	Atlas Arteria Ltd.		Transportation Infrastructure			7,173		37,735
	Aurizon Holdings Ltd.		Road & Rail			20,484		81,511
	AusNet Services		Electric Utilities			19,395		23,742
	Australia & New Zealand Banking Group Ltd.		Banks			30,312		583,061
	Australian Stock Exchange Ltd.		Capital Markets			2,070		113,183
	Bank of Queensland Ltd.		Banks			4,320		28,903
	Beach Energy Ltd.		Oil, Gas & Consumable Fuels			18,747		31,989
	Bendigo and Adelaide Bank Ltd.		Banks			5,247		40,661
	BHP Group Ltd.		Metals & Mining			31,518		780,568
	Bluescope Steel Ltd.		Metals & Mining			5,481		44,397
	Boral Ltd.		Construction Materials			12,447		40,547
	Brambles Ltd.		Commercial Services & Supplies			17,055		131,131
	Caltex Australia Ltd.		Oil, Gas & Consumable Fuels			2,664		47,290
	Challenger Ltd.		Diversified Financial Services			6,093		30,286
	Charter Hall Group		Equity Real Estate Investment Trusts (REITs	)		4,896		38,470
	Cimic Group Ltd.		Construction & Engineering			1,044		22,145
	Cleanaway Waste Management Ltd.		Commercial Services & Supplies			14,211		18,690
	Coca-Cola Amatil Ltd.		Beverages			5,490		39,434
	Cochlear Ltd.		Health Care Equipment & Supplies			603		84,653
	Coles Group Ltd.		Food & Staples Retailing			12,114		125,822
	Commonwealth Bank of Australia		Banks			18,945		1,032,801
	Computershare Ltd.		IT Services			5,166		56,270
	Crown Resorts Ltd.		Hotels, Restaurants & Leisure			3,735		30,355
	CSL Ltd.		Biotechnology			4,833		761,740
	CSR Ltd.		Construction Materials			5,355		15,422
	Dexus		Equity Real Estate Investment Trusts (REITs	)		11,655		93,778
	Domain Holdings Australia Ltd.		Interactive Media & Services			2,520		5,762
	Domino’s Pizza Enterprises Ltd.		Hotels, Restaurants & Leisure			639		20,019
	Downer EDI Ltd.		Commercial Services & Supplies			6,327		33,285
	Evolution Mining Ltd.		Metals & Mining			11,223		34,289
	Flight Centre Travel Group Ltd.		Hotels, Restaurants & Leisure			603		19,359
	Fortescue Metals Group Ltd.		Metals & Mining			17,010		100,957
	Goodman Group		Equity Real Estate Investment Trusts (REITs	)		19,026		181,959
	GPT Group		Equity Real Estate Investment Trusts (REITs	)		20,691		85,963
	Harvey Norman Holdings Ltd.		Multiline Retail			6,111		18,671
a	Harvey Norman Holdings Ltd., rts., 10/11/19		Multiline Retail			356		431
	IDP Education Ltd.		Diversified Consumer Services			1,341		14,082
	Iluka Resources Ltd.		Metals & Mining			4,473		24,104
	Incitec Pivot Ltd.		Chemicals			17,145		39,200
	Insurance Australia Group Ltd.		Insurance			24,714		131,680
	IOOF Holdings Ltd.		Capital Markets			3,681		15,864
	James Hardie Industries PLC, CDI		Construction Materials			4,725		79,223
	LendLease Group		Real Estate Management & Development			6,039		71,522
	Macquarie Group Ltd.		Capital Markets			3,294		291,212
	Magellan Financial Group Ltd.		Capital Markets			1,422		49,334
	Medibank Private Ltd.		Insurance			29,448		67,528
	Metcash Ltd.		Food & Staples Retailing			9,684		19,529



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FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin FTSE Australia ETF(continued)



		Industry			Shares		Value
	Common Stocks (continued)
	Australia (continued)
	Mirvac Group		Equity Real Estate Investment Trusts (REITs	)		41,787	$	86,241
	National Australia Bank Ltd.		Banks			30,789		616,739
	Newcrest Mining Ltd.		Metals & Mining			8,226		192,794
	Northern Star Resources Ltd.		Metals & Mining			6,606		49,188
	Nufarm Ltd.		Chemicals			3,087		11,743
	Oil Search Ltd.		Oil, Gas & Consumable Fuels			14,202		70,115
	Orica Ltd.		Chemicals			4,059		61,705
	Origin Energy Ltd.		Oil, Gas & Consumable Fuels			18,792		101,014
	Orora Ltd.		Containers & Packaging			12,870		25,086
	OZ Minerals Ltd.		Metals & Mining			3,357		21,758
	Perpetual Ltd.		Capital Markets			468		11,818
	Platinum Asset Management Ltd.		Capital Markets			3,114		8,905
	Qantas Airways Ltd.		Airlines			6,570		27,872
	QBE Insurance Group Ltd.		Insurance			14,148		119,849
	Qube Logistics Holdings Ltd.		Transportation Infrastructure			13,032		28,126
	Ramsay Health Care Ltd.		Health Care Providers & Services			1,368		59,852
	REA Group Ltd.		Interactive Media & Services			540		39,414
	Rio Tinto Ltd.		Metals & Mining			3,969		248,068
	Santos Ltd.		Oil, Gas & Consumable Fuels			18,909		98,582
	Scentre Group		Equity Real Estate Investment Trusts (REITs	)		54,657		144,873
	Seek Ltd.		Professional Services			3,708		53,693
	Seven Group Holdings Ltd.		Trading Companies & Distributors			1,404		16,495
	Shopping Centres Australasia Property Group		Equity Real Estate Investment Trusts (REITs	)		9,711		17,094
	Sonic Healthcare Ltd.		Health Care Providers & Services			5,058		95,689
	South32 Ltd.		Metals & Mining			53,784		95,040
	Stockland		Equity Real Estate Investment Trusts (REITs	)		25,524		78,327
	Suncorp-Metway Ltd.		Insurance			13,493		124,220
	Sydney Airport		Transportation Infrastructure			11,862		64,243
	Tabcorp Holdings Ltd.		Hotels, Restaurants & Leisure			20,061		65,621
	Telstra Corp. Ltd.		Diversified Telecommunication Services			44,640		105,677
	The Star Entertainment Group Ltd.		Hotels, Restaurants & Leisure			8,829		25,963
	TPG Telecom Ltd.		Diversified Telecommunication Services			3,843		17,988
	Transurban Group		Transportation Infrastructure			28,953		286,857
	Treasury Wine Estates Ltd.		Beverages			7,686		96,264
	Vicinity Centres		Equity Real Estate Investment Trusts (REITs	)		33,471		58,017
a	Vocus Group Ltd.		Diversified Telecommunication Services			6,345		14,892
	Washington H. Soul Pattinson & Co. Ltd.		Oil, Gas & Consumable Fuels			963		13,659
	Wesfarmers Ltd.		Multiline Retail			12,114		325,177
	Westpac Banking Corp.		Banks			37,332		746,293
	Whitehaven Coal Ltd.		Oil, Gas & Consumable Fuels			7,272		15,253
	Wisetech Global Ltd.		Software			873		20,449
	Woodside Petroleum Ltd.		Oil, Gas & Consumable Fuels			9,990		218,168
	Woolworths Group Ltd.		Food & Staples Retailing			13,464		338,532
	WorleyParsons Ltd.		Energy Equipment & Services			3,411		29,930


								11,139,617

	New Zealand 0.3%
a	Xero Ltd.		Software			990		41,592

	United States 1.6%
	Amcor PLC, IDR		Containers & Packaging			17,307		166,336
	Sims Metal Management Ltd.		Metals & Mining			1,773		12,436


								178,772

	Total Investments (Cost $11,483,850) 99.7%							11,359,981
	Other Assets, less Liabilities 0.3%							29,468

	Net Assets 100.0%						$	11,389,449

See Abbreviations on page 322.

^aNon-income producing.



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FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin FTSE Brazil ETF


	Six Months Ended September 30, 2019 (unaudited)			Year Ended March 31,
	Six Months Ended September 30, 2019 (unaudited)			2019			2018^a

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

Net asset value, beginning of period	$	25.72		$	27.87		$	24.37


Income from investment operations^b:

Net investment income^c		0.29			0.80			0.50

Net realized and unrealized gains (losses)		0.41			(2.07	)		3.11


Total from investment operations		0.70			(1.27	)		3.61


Less distributions from net investment income		(0.38	)		(0.88	)		(0.11	)


Net asset value, end of period	$	26.04		$	25.72		$	27.87


Total return^d		2.69%			(3.98)%			14.86%

Ratios to average net assets^e

Total expenses		0.19%			0.19%			0.19%

Net investment income		2.23%			3.37%			4.53%

Supplemental data

Net assets, end of period (000’s)		$15,623			$20,579			$44,593

Portfolio turnover rate^f		4.67%			39.76%			4.79%

Portfolio turnover rate excluding portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely or in part for cash^f,g		4.67%			0.00%			0.00%

^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.

^gEffective September 30, 2019.



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

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, September 30, 2019 (unaudited)

Franklin FTSE Brazil ETF



		Industry		Shares		Value
	Common Stocks 65.9%
	Brazil 64.1%
	Ambev SA		Beverages		157,320	$	727,039
	Atacadao Distribuicao Comercio e Industria Ltd.		Food & Staples Retailing		12,000		60,642
a	Azul SA		Airlines		7,200		85,925
a	B2W Cia Digital		Internet & Direct Marketing Retail		6,000		69,645
a	B2W Cia Digital, SCR		Internet & Direct Marketing Retail		1,120		12,877
	B3 SA – Brasil Bolsa Balcao		Capital Markets		71,700		751,013
	Banco Bradesco SA		Banks		36,600		274,584
	Banco BTG Pactual SA		Capital Markets		9,000		126,506
	Banco do Brasil SA		Banks		37,404		408,486
	Banco Santander Brasil SA		Banks		14,400		156,708
	BB Seguridade Participacoes SA		Insurance		24,000		201,834
	BR Malls Paricipacoes SA		Real Estate Management & Development		27,600		95,481
a	BRF SA		Food Products		19,800		181,582
	CCR SA		Transportation Infrastructure		40,200		166,479
	Centrais Eletricas Brasileiras SA		Electric Utilities		13,800		133,017
	Cia Siderurgica Nacional SA		Metals & Mining		22,200		70,511
	Cielo SA		IT Services		40,200		77,208
	Companhia de Saneamento Basico do Estado de Sao Paulo		Water Utilities		12,000		142,891
	Companhia Energetica de Minas Gerais		Electric Utilities		3,000		11,452
	Companhia Paranaense de Energia-Copel		Electric Utilities		600		7,361
	Cosan SA		Oil, Gas & Consumable Fuels		6,000		76,631
	CPFL Energia SA		Electric Utilities		6,600		52,114
	CVC Brasil Operadora e Agencia de Viagens SA		Hotels, Restaurants & Leisure		4,200		56,314
	EDP-Energias do Brasil SA		Electric Utilities		10,800		50,819
	Embraer SA		Aerospace & Defense		26,400		113,512
	Energisa SA		Electric Utilities		6,880		82,503
	Engie Brasil SA		Independent Power and Renewable Electricity Producers		6,200		66,072
	Equatorial Energia SA		Electric Utilities		6,200		149,277
	Fleury SA		Health Care Providers & Services		7,800		49,473
	Grendene SA		Textiles, Apparel & Luxury Goods		9,600		20,120
b,c	Hapvida Participacoes e Investimentos SA, Reg S, 144A		Health Care Providers & Services		5,200		67,225
	Hypera SA		Pharmaceuticals		14,400		115,915
	IRB Brasil Resseguros SA		Insurance		29,748		268,956
	Klabin SA		Containers & Packaging		25,800		95,324
	Kroton Educacional SA		Diversified Consumer Services		53,400		143,326
	Localiza Rent a Car SA		Road & Rail		19,200		209,543
	Lojas Americanas SA		Multiline Retail		8,400		30,108
	Lojas Renner SA		Multiline Retail		28,520		345,562
	M. Dias Branco SA		Food Products		3,000		25,208
	Magazine Luiza SA		Multiline Retail		21,120		187,805
	Multiplan Empreendimentos Imobiliarios SA		Real Estate Management & Development		9,600		66,491
	Natura Cosmeticos SA		Personal Products		13,200		107,301
	Notre Dame Intermedica Participacoes SA		Health Care Providers & Services		13,600		177,126
	Odontoprev SA		Health Care Providers & Services		9,600		37,244
	Petrobras Distribuidora SA		Specialty Retail		24,600		162,587
	Petroleo Brasileiro SA		Oil, Gas & Consumable Fuels		104,040		753,062
	Porto Seguro SA		Insurance		3,600		50,896
	Raia Drogasil SA		Food & Staples Retailing		8,172		187,967
a	Rumo SA		Road & Rail		40,160		236,213
	Sao Martinho SA		Food Products		6,000		27,296
	Sul America SA		Insurance		8,200		93,922
	Suzano SA		Paper & Forest Products		28,872		233,241
	Tim Participacoes SA		Wireless Telecommunication Services		28,800		82,347
	Transmissora Alianca de Energia Eletrica SA		Electric Utilities		7,800		53,930
	Ultrapar Participacoes SA		Oil, Gas & Consumable Fuels		30,528		135,512



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FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin FTSE Brazil ETF(continued)



		Industry		Shares		Value
	Common Stocks (continued)
	Brazil (continued)
a	Vale SA		Metals & Mining		121,300	$	1,390,521
a	Via Varejo SA		Specialty Retail		13,800		26,239
	Weg SA		Electrical Equipment		26,400		153,568
	YDUQS PART		Diversified Consumer Services		9,000		77,957

							10,020,468

	United States 1.8%
	JBS SA		Food Products		34,800		273,945

	Total Common Stocks (Cost $8,822,025)						10,294,413

	Preferred Stocks 33.8%
	Brazil 33.8%
a	Alpargatas SA, pfd.		Textiles, Apparel & Luxury Goods		6,800		42,282
d	Banco Bradesco SA, 2.969%, pfd.		Banks		142,080		1,156,997
d	Banco do Estado do Rio Grande do Sul SA, 9.761%, pfd., B		Banks		7,200		38,978
d	Bradespar SA, 3.926%, pfd.		Metals & Mining		7,800		59,098
a	Braskem SA, pfd., A		Chemicals		7,000		54,650
d	Centrais Eletricas Brasileiras SA, 3.372%, pfd., B		Electric Utilities		8,400		84,738
d	Cia de Transmissao de Energia Eletrica Paulista, 9.802%, pfd.		Electric Utilities		6,600		39,137
d	Cia Energetica de Sao Paulo, 3.112%, pfd., B		Independent Power and Renewable Electricity Producers		6,600		45,158
d	Companhia Brasileira de Distribuicao, 2.023%, pfd., A		Food & Staples Retailing		5,748		110,119
d	Companhia Energetica de Minas Gerais, 4.152%, pfd.		Electric Utilities		33,600		115,592
d	Companhia Paranaense de Energia, 2.927%, pfd., B		Electric Utilities		3,600		42,876
d	Gerdau SA, 2.432%, pfd.		Metals & Mining		37,200		117,528
d	Itau Unibanco Holding SA, 4.930%, pfd.		Banks		166,800		1,402,747
d	Itausa-Investimentos Itau SA, 5.463%, pfd.		Banks		219,360		694,091
d	Lojas Americanas SA, 0.376%, pfd.		Multiline Retail		26,400		126,505
d	Petroleo Brasileiro SA, 4.123%, pfd.		Oil, Gas & Consumable Fuels		139,240		920,935
d	Telefonica Brasil SA, 6.735%, pfd.		Diversified Telecommunication Services		15,000		197,844
d	Usinas Siderurgicas de Minas Gerais SA Usiminas, 2.036%, pfd., A		Metals & Mining		13,800		25,875

	Total Preferred Stocks (Cost $5,020,104)						5,275,150

	Total Investments (Cost $13,842,129) 99.7%						15,569,563
	Other Assets, less Liabilities 0.3%						53,113

	Net Assets 100.0%					$	15,622,676

See Abbreviations on page 322.

^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 September 30, 2019, the value of this security was $67,225, representing 0.4% of net assets.

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



156	Semiannual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin FTSE Brazil ETF(continued)

At September 30, 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

50,482

10/16/19

3,066

*As of period end.

See Note 7 regarding other derivative information.



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FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin FTSE Canada ETF


	Six Months Ended September 30, 2019 (unaudited)			Year Ended March 31,
	Six Months Ended September 30, 2019 (unaudited)			2019			2018^a

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

Net asset value, beginning of period	$	24.13		$	23.77		$	24.80


Income from investment operations^b:

Net investment income^c		0.35			0.67			0.24

Net realized and unrealized gains (losses)		1.37			0.33			(1.25	)


Total from investment operations		1.72			1.00			(1.01	)


Less distributions from net investment income		(0.23	)		(0.64	)		(0.02	)


Net asset value, end of period	$	25.62		$	24.13		$	23.77


Total return^d		7.18%			4.48%			(4.06)%

Ratios to average net assets^e

Total expenses		0.09%			0.09%			0.09%

Net investment income		2.78%			2.79%			2.39%

Supplemental data

Net assets, end of period (000’s)		$5,124			$4,827			$2,377

Portfolio turnover rate^f		2.48%			6.95%			1.26%

Portfolio turnover rate excluding portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely or in part for cash^f,g		2.48%			—%			—%

^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.

^gEffective September 30, 2019.



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

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, September 30, 2019 (unaudited)

Franklin FTSE Canada ETF



		Industry			Shares		Value

	Common Stocks 100.0%
	Canada 97.6%
	Agnico Eagle Mines Ltd.		Metals & Mining			928	$	49,764
	Alimentation Couche-Tard Inc., B		Food & Staples Retailing			3,312		101,561
	Bank of Montreal		Banks			2,484		183,073
	Bank of Nova Scotia		Banks			4,796		272,582
	Barrick Gold Corp.		Metals & Mining			6,848		118,547
	BCE Inc.		Diversified Telecommunication Services			1,168		56,530
	Brookfield Asset Management Inc., A		Capital Markets			3,432		182,357
	Canadian Imperial Bank of Commerce		Banks			1,728		142,664
	Canadian National Railway Co.		Road & Rail			2,824		253,733
	Canadian Natural Resources Ltd.		Oil, Gas & Consumable Fuels			4,572		121,724
	Canadian Pacific Railway Ltd.		Road & Rail			540		120,081
	Canadian Tire Corp. Ltd., A		Multiline Retail			224		25,153
	Canadian Utilities Ltd., A		Multi-Utilities			472		13,921
a	Canopy Growth Corp.		Pharmaceuticals			700		16,046
	Cenovus Energy Inc.		Oil, Gas & Consumable Fuels			3,972		37,290
a	CGI Inc., A		IT Services			924		73,111
	Constellation Software Inc.		Software			78		77,950
	Dollarama Inc.		Multiline Retail			1,212		43,418
	Enbridge Inc.		Oil, Gas & Consumable Fuels			7,708		270,712
	EnCana Corp.		Oil, Gas & Consumable Fuels			5,772		26,462
	Fairfax Financial Holdings Ltd.		Insurance			104		45,873
	Fortis Inc.		Electric Utilities			1,680		71,070
	Franco-Nevada Corp.		Metals & Mining			712		64,919
	George Weston Ltd.		Food & Staples Retailing			280		23,572
	Great-West Lifeco Inc.		Insurance			1,012		24,314
	Husky Energy Inc.		Oil, Gas & Consumable Fuels			1,184		8,335
	Hydro One Ltd.		Electric Utilities			1,228		22,714
	IGM Financial Inc.		Capital Markets			328		9,320
	Imperial Oil Ltd.		Oil, Gas & Consumable Fuels			904		23,556
	Intact Financial Corp.		Insurance			536		53,981
	Inter Pipeline Ltd.		Oil, Gas & Consumable Fuels			1,592		27,956
	Loblaw Cos. Ltd.		Food & Staples Retailing			708		40,352
	Magna International Inc.		Auto Components			1,152		61,446
	Manulife Financial Corp.		Insurance			7,656		140,514
	Metro Inc., A		Food & Staples Retailing			932		41,060
	National Bank of Canada		Banks			1,308		65,123
	Nutrien Ltd.		Chemicals			2,228		111,063
	Pembina Pipeline Corp.		Oil, Gas & Consumable Fuels			1,984		73,591
	Power Corp. of Canada		Insurance			1,364		31,442
	Power Financial Corp.		Insurance			896		20,789
	Restaurant Brands International Inc.		Hotels, Restaurants & Leisure			936		66,595
	RioCan REIT		Equity Real Estate Investment Trusts (REITs	)		1,196		23,830
	Rogers Communications Inc., B		Wireless Telecommunication Services			1,392		67,844
	Royal Bank of Canada		Banks			5,620		456,179
	Saputo Inc.		Food Products			852		26,204
	Shaw Communications Inc.		Media			1,744		34,287
a	Shopify Inc., A		IT Services			384		119,580
	Sun Life Financial Inc.		Insurance			2,304		103,088
	Suncor Energy Inc.		Oil, Gas & Consumable Fuels			6,116		193,042
	TC Energy Corp.		Oil, Gas & Consumable Fuels			3,572		185,075
	Teck Resources Ltd., B		Metals & Mining			1,956		31,733
	TELUS Corp.		Diversified Telecommunication Services			776		27,635
	The Toronto-Dominion Bank		Banks			7,180		418,924
	Thomson Reuters Corp.		Professional Services			768		51,364
	Wheaton Precious Metals Corp.		Metals & Mining			1,732		45,445


								4,998,494



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STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin FTSE Canada ETF(continued)



		Industry		Shares		Value

	Common Stocks (continued)
	United States 2.4%
a	Bausch Health Cos. Inc.		Pharmaceuticals		1,344	$	29,337
	IESI-BFC Ltd.		Commercial Services & Supplies		1,024		94,132


							123,469

	Total Investments (Cost $4,896,342) 100.0%						5,121,963
	Other Assets, less Liabilities 0.0%^†						1,973

	Net Assets 100.0%					$	5,123,936

See Abbreviations on page 322.

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

^aNon-income producing.



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

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin FTSE China ETF


	Six Months Ended September 30, 2019 (unaudited)			Year Ended March 31,
	Six Months Ended September 30, 2019 (unaudited)			2019			2018^a

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

Net asset value, beginning of period	$	24.01		$	25.99		$	24.95


Income from investment operations^b:

Net investment income (loss)^c		0.44			0.40			(0.01	)

Net realized and unrealized gains (losses)		(2.50	)		(1.99	)		1.05


Total from investment operations		(2.06	)		(1.59	)		1.04


Less distributions from net investment income		(0.03	)		(0.39	)		—	^d


Net asset value, end of period	$	21.92		$	24.01		$	25.99


Total return^e		(8.58)%			(5.94)%			4.17%

Ratios to average net assets^f

Total expenses		0.19%			0.19%			0.19%

Net investment income (loss)		3.83%			1.70%			(0.12)%

Supplemental data

Net assets, end of period (000’s)		$39,450			$43,220			$31,191

Portfolio turnover rate^g		13.38%			7.21%			2.71%

Portfolio turnover rate excluding portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely or in part for cash^g,h		13.38%			—%			—%

^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.

^hEffective September 30, 2019.



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FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, September 30, 2019 (unaudited)

Franklin FTSE China ETF



		Industry		Shares		Value
	Common Stocks 99.8%
	China 98.5%
	360 Security Technology Inc., A		Software		1,800	$	5,918
a	3SBio Inc.		Biotechnology		27,000		44,774
a	51job Inc., ADR		Professional Services		522		38,628
a	58.com Inc., ADR		Interactive Media & Services		2,214		109,172
	AECC Aviation Power Co. Ltd., A		Aerospace & Defense		1,800		5,513
	Agile Group Holdings Ltd.		Real Estate Management & Development		36,000		43,718
	Agricultural Bank of China Ltd., A		Banks		128,700		62,357
	Agricultural Bank of China Ltd., H		Banks		702,000		274,911
	Aier Eye Hospital Group Co. Ltd.		Health Care Providers & Services		3,600		17,881
	Air China Ltd., A		Airlines		8,100		9,074
	Air China Ltd., H		Airlines		36,000		31,686
	Aisino Co. Ltd., A		Software		1,800		5,281
a	Alibaba Group Holding Ltd., ADR		Internet & Direct Marketing Retail		32,616		5,454,374
a	Alibaba Health Information Technology Ltd.		Health Care Technology		90,000		78,641
a	Alpha Group		Leisure Equipment & Products		1,800		1,543
a	Aluminum Corp. of China Ltd., A		Metals & Mining		11,700		5,767
a	Aluminum Corp. of China Ltd., H		Metals & Mining		90,000		28,357
	An Hui Wenergy Co. Ltd.		Independent Power and Renewable Electricity Producers		3,600		2,198
	Angang Steel Co. Ltd.		Metals & Mining		8,190		3,544
	Angang Steel Co. Ltd., H		Metals & Mining		36,000		13,134
	Angel Yeast Co. Ltd., A		Food Products		900		3,409
	Anhui Anke Biotechnology Group Co. Ltd.		Pharmaceuticals		900		1,899
	Anhui Conch Cement Co. Ltd., A		Construction Materials		4,500		26,050
	Anhui Conch Cement Co. Ltd., H		Construction Materials		27,000		160,325
	Anhui Expressway Co. Ltd., H		Transportation Infrastructure		18,000		10,057
	Anhui Gujing Distillery Co. Ltd., B		Beverages		2,700		22,687
	Anta Sports Products Ltd.		Textiles, Apparel & Luxury Goods		27,000		223,353
a	Anxin Trust Co. Ltd.		Capital Markets		6,300		4,155
a	Autohome Inc., ADR		Interactive Media & Services		1,242		103,247
	Avary Holding Shenzhen Co. Ltd., A		Electronic Equipment, Instruments & Components		900		5,056
	AVIC Aircraft Co. Ltd.		Aerospace & Defense		1,800		3,920
	Avic Capital Co. Ltd., A		Diversified Financial Services		9,000		5,886
	AVIC Electromechanical Systems Co. Ltd.		Aerospace & Defense		4,500		4,102
	AVIC Jonhon Optronic Technology Co. Ltd.		Electronic Equipment, Instruments & Components		900		5,190
a	AVIC Shenyang Aircraft Co. Ltd., A		Aerospace & Defense		1,800		7,814
	AviChina Industry & Technology Co. Ltd., H		Aerospace & Defense		54,000		26,520
	BAIC Motor Corp. Ltd., H		Automobiles		54,000		33,339
a	Baidu Inc., ADR		Interactive Media & Services		6,300		647,388
	Bank of Beijing Co. Ltd., A		Banks		21,600		16,212
	Bank of Changsha Co. Ltd., A		Banks		3,600		4,340
	Bank of China Ltd., A		Banks		70,200		35,192
	Bank of China Ltd., H		Banks		1,737,000		682,445
	Bank of Communications Co. Ltd., A		Banks		37,800		28,848
	Bank of Communications Co. Ltd., H		Banks		171,000		111,682
	Bank of Guiyang Co. Ltd.		Banks		2,700		3,218
	Bank of Hangzhou Co. Ltd.		Banks		1,800		2,130
	Bank of Jiangsu Co. Ltd., A		Banks		4,500		4,228
	Bank of Nanjing Co. Ltd., A		Banks		7,200		8,661
	Bank of Ningbo Co. Ltd., A		Banks		5,400		19,063
	Bank of Shanghai Co. Ltd., A		Banks		13,510		17,689
	Baoshan Iron & Steel Co. Ltd., A		Metals & Mining		18,900		15,642
	BBMG Corp., A		Construction Materials		10,800		5,021
	BBMG Corp., H		Construction Materials		54,000		15,499



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STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin FTSE China ETF(continued)



		Industry		Shares		Value
	Common Stocks (continued)
	China (continued)
a	BeiGene Ltd., ADR		Biotechnology		738	$	90,375
	Beijing Capital Development Co. Ltd., A		Real Estate Management & Development		2,700		3,070
	Beijing Capital International Airport Co. Ltd.		Transportation Infrastructure		36,000		30,722
	Beijing Dabeinong Technology Group Co. Ltd.		Food Products		4,500		2,880
	Beijing Enlight Media Co. Ltd.		Entertainment		3,600		4,719
	Beijing Enterprises Holdings Ltd.		Gas Utilities		13,500		62,081
	Beijing Enterprises Water Group Ltd.		Water Utilities		126,000		64,451
	Beijing Jingneng Clean Energy Co. Ltd., H		Independent Power and Renewable Electricity Producers		36,000		5,970
a	Beijing Kunlun Tech Co. Ltd.		Entertainment		1,800		3,088
	Beijing New Building Materials PLC		Building Products		900		2,269
	Beijing North Star Co. Ltd., H		Real Estate Management & Development		18,000		5,419
	Beijing Orient National Communication Science & Technology Co. Ltd.		Software		1,800		3,234
	Beijing Oriental Yuhong Waterproof Technology Co. Ltd.		Construction Materials		900		2,649
	Beijing Originwater Technology Co. Ltd.		Commercial Services & Supplies		4,500		4,228
	Beijing Sanju Environmental Protection and New Material Co. Ltd.		Chemicals		4,500		3,926
	Beijing Shiji Information Technology Co. Ltd.		Software		900		4,972
a	Beijing Shougang Co. Ltd.		Metals & Mining		5,400		2,526
	Beijing Shunxin Agriculture Co. Ltd., A		Beverages		900		6,574
	Beijing SL Pharmaceutical Co. Ltd.		Biotechnology		1,800		3,146
a	Beijing Teamsun Technology Co. Ltd., A		IT Services		1,800		2,785
	Beijing Tiantan Biological Products Corp. Ltd., A		Biotechnology		900		3,578
	Beijing Tongrentang Co. Ltd., A		Pharmaceuticals		1,800		6,780
	Beijing Yanjing Brewery Co. Ltd.		Beverages		4,500		3,661
	Bengang Steel Plates Co. Ltd., B		Metals & Mining		10,800		2,797
a	Bilibili Inc., ADR		Entertainment		1,089		15,377
	Bluefocus Intelligent Communications Group Co. Ltd.		Media		2,700		2,242
	Bluestar Adisseo Co., A		Chemicals		1,800		2,609
	BOE Technology Group Co. Ltd.		Electronic Equipment, Instruments & Components		18,900		6,992
	BOE Technology Group Co. Ltd.		Electronic Equipment, Instruments & Components		33,300		17,487
	Bright Dairy & Food Co. Ltd., A		Food Products		1,800		2,634
	Brilliance China Automotive Holdings Ltd.		Automobiles		62,000		66,592
	BTG Hotels Group Co. Ltd., A		Hotels, Restaurants & Leisure		1,800		4,232
	BYD Co. Ltd.		Automobiles		1,800		12,295
	BYD Co. Ltd., H		Automobiles		16,000		79,904
	BYD Electronic International Co. Ltd.		Communications Equipment		18,000		26,956
a	CAR Inc.		Road & Rail		18,000		13,891
	Central China Securities Co. Ltd., A		Capital Markets		3,600		2,505
	Central China Securities Co. Ltd., H		Capital Markets		18,000		3,559
	CGN Power Co. Ltd., H		Independent Power and Renewable Electricity Producers		243,000		61,375
	Changchun High & New Technology Industry Group Inc.		Pharmaceuticals		200		11,045
	Changjiang Securities Co. Ltd.		Capital Markets		5,400		5,293
	Chaozhou Three-Circle Group Co. Ltd.		Electronic Equipment, Instruments & Components		1,800		5,041
	Chengdu Xingrong Environment Co. Ltd.		Water Utilities		3,600		2,415
a	China Aerospace Times Electronics Co. Ltd., A		Aerospace & Defense		2,700		2,280
	China Agri-Industries Holdings Ltd.		Food Products		45,000		14,638
	China Aoyuan Group Ltd.		Real Estate Management & Development		27,000		30,584
	China Avic Avionics Equipment Co. Ltd., A		Aerospace & Defense		1,800		3,579
	China Baoan Group Co. Ltd.		Industrial Conglomerates		3,600		2,223



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STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin FTSE China ETF(continued)



		Industry		Shares		Value
	Common Stocks (continued)
	China (continued)
a	China Biologic Products Holdings Inc.		Biotechnology		567	$	64,905
	China Bluechemical Ltd.		Chemicals		36,000		8,679
	China Cinda Asset Management Co. Ltd., H		Capital Markets		198,000		38,896
	China CITIC Bank Corp. Ltd., A		Banks		9,900		7,819
	China CITIC Bank Corp. Ltd., H		Banks		216,000		115,172
	China Coal Energy Co. Ltd., A		Oil, Gas & Consumable Fuels		7,200		4,961
	China Coal Energy Co. Ltd., H		Oil, Gas & Consumable Fuels		45,000		18,311
	China Communications Construction Co. Ltd., A		Construction & Engineering		5,400		7,645
	China Communications Construction Co. Ltd., H		Construction & Engineering		99,000		77,413
	China Communications Services Corp. Ltd.		Construction & Engineering		54,000		30,584
	China Conch Venture Holdings Ltd.		Machinery		36,000		133,173
	China Construction Bank Corp., A		Banks		9,900		9,690
	China Construction Bank Corp., H		Banks		2,133,000		1,627,081
a	China COSCO Holdings Co. Ltd., A		Marine		9,900		6,599
a	China Eastern Airlines Corp. Ltd., A		Airlines		9,000		6,528
a	China Eastern Airlines Corp. Ltd., H		Airlines		36,000		17,496
	China Enterprise Co. Ltd., A		Real Estate Management & Development		4,500		2,855
	China Everbright Bank Co. Ltd., A		Banks		39,600		21,848
	China Everbright Bank Co. Ltd., H		Banks		72,000		30,676
	China Everbright International Ltd.		Commercial Services & Supplies		81,000		62,408
	China Everbright Ltd.		Capital Markets		18,000		21,055
a	China Evergrande Group		Real Estate Management & Development		45,000		95,862
	China Film Co. Ltd., A		Entertainment		2,700		5,841
	China Foods Ltd.		Food Products		18,000		7,967
	China Fortune Land Development Co. Ltd., A		Real Estate Management & Development		2,700		10,197
	China Galaxy Securities Co. Ltd., A		Capital Markets		1,800		2,745
	China Galaxy Securities Co. Ltd., H		Capital Markets		85,500		45,480
	China Gezhouba Group Co. Ltd., A		Construction & Engineering		5,400		4,409
	China Grand Automotive Services Group Co. Ltd., A		Specialty Retail		9,900		5,337
	China Great Wall Securities Co. Ltd., A		Capital Markets		1,800		3,730
	China Greatwall Technology Group Co. Ltd.		Technology Hardware, Storage & Peripherals		2,700		4,877
	China Hongqiao Group Ltd.		Metals & Mining		58,500		37,386
	China Huarong Asset Management Co. Ltd., H		Capital Markets		252,000		37,931
	China International Capital Corp. Ltd., H		Capital Markets		25,200		48,861
	China International Marine Containers (Group) Co. Ltd., H		Machinery		11,700		10,164
	China International Travel Service Corp. Ltd., A		Hotels, Restaurants & Leisure		1,800		23,457
	China Jinmao Holdings Group Ltd.		Real Estate Management & Development		126,000		72,166
	China Jushi Co. Ltd., A		Construction Materials		4,500		5,117
	China Life Insurance Co. Ltd., A		Insurance		5,400		20,780
	China Life Insurance Co. Ltd., H		Insurance		171,000		396,122
a	China Literature Ltd.		Media		5,400		18,357
	China Lodging Group Ltd., ADR		Hotels, Restaurants & Leisure		2,277		75,187
	China Longyuan Power Group Corp.		Independent Power and Renewable Electricity Producers		72,000		40,411
	China Machinery Engineering Corp., H		Construction & Engineering		18,000		7,623
	China Medical System Holdings Ltd.		Pharmaceuticals		27,000		32,099
	China Meheco Co. Ltd., A		Trading Companies & Distributors		1,800		3,259
	China Merchants Bank Co. Ltd., A		Banks		19,800		96,349
	China Merchants Bank Co. Ltd., H		Banks		85,500		406,810



164	Semiannual Report	franklintempleton.com

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STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin FTSE China ETF(continued)



		Industry		Shares		Value
	Common Stocks (continued)
	China (continued)
	China Merchants Energy Shipping Co. Ltd., A		Oil, Gas & Consumable Fuels		4,500	$	3,006
	China Merchants Expressway Network & Technology Holdings Co. Ltd.		Transportation Infrastructure		1,800		1,984
	China Merchants Port Holdings Co. Ltd.		Transportation Infrastructure		36,000		54,188
	China Merchants Securities Co. Ltd.		Capital Markets		21,600		24,412
	China Merchants Securities Co. Ltd., A		Capital Markets		5,400		12,439
	China Merchants Shekou Industrial Zone Holdings Co. Ltd., A		Real Estate Management & Development		7,200		19,146
	China Minsheng Banking Corp. Ltd., A		Banks		34,200		28,830
	China Minsheng Banking Corp. Ltd., H		Banks		144,000		97,905
	China Mobile Ltd.		Wireless Telecommunication Services		121,500		1,005,087
	China Molybdenum Co. Ltd., A		Metals & Mining		12,600		6,422
	China Molybdenum Co. Ltd., H		Metals & Mining		81,000		26,864
	China National Building Material Co. Ltd., H		Construction Materials		90,000		80,823
	China National Chemical Engineering Co. Ltd., A		Construction & Engineering		5,400		4,386
	China National Nuclear Power Co. Ltd., A		Independent Power and Renewable Electricity Producers		10,800		8,000
	China National Software & Service Co. Ltd., A		Software		900		9,046
	China Nonferrous Metal Industry’s Foreign Engineering and Construction Co. Ltd.		Metals & Mining		3,600		2,213
	China Northern Rare Earth Group High-Tech Co. Ltd., A		Metals & Mining		2,700		4,110
	China Oilfield Services Ltd., A		Energy Equipment & Services		3,600		6,175
	China Oilfield Services Ltd., H		Energy Equipment & Services		36,000		43,029
	China Orient Securities Co. Ltd., A		Capital Markets		5,400		7,713
	China Overseas Land & Investment Ltd.		Real Estate Management & Development		90,000		282,994
	China Pacific Insurance Group Co. Ltd., A		Insurance		6,300		30,762
	China Pacific Insurance Group Co. Ltd., H		Insurance		59,400		218,221
	China Petroleum & Chemical Corp., A		Oil, Gas & Consumable Fuels		32,400		22,776
	China Petroleum & Chemical Corp., H		Oil, Gas & Consumable Fuels		594,000		353,093
	China Power International Development Ltd.		Independent Power and Renewable Electricity Producers		90,000		18,713
	China Railway Construction Corp. Ltd., A		Construction & Engineering		10,800		14,307
	China Railway Construction Corp. Ltd., H		Construction & Engineering		45,000		49,194
	China Railway Group Ltd., H		Construction & Engineering		90,000		54,647
	China RailwayHi-tech Industry Co. Ltd., A		Construction & Engineering		1,800		2,586
b	China Railway Signal & Communication Corp. Ltd., H, Reg S		Electronic Equipment, Instruments & Components		36,000		22,272
	China Reinsurance Group Corp., H		Insurance		144,000		23,328
	China Resources Beer Holdings Co. Ltd.		Beverages		36,000		190,805
	China Resources Cement Holdings Ltd.		Construction Materials		54,000		54,142
	China Resources Double Crane Pharmaceutical Co. Ltd., A		Pharmaceuticals		900		1,538
	China Resources Gas Group Ltd.		Gas Utilities		18,000		88,974
	China Resources Land Ltd.		Real Estate Management & Development		61,500		257,708
	China Resources Pharmaceutical Group Ltd.		Pharmaceuticals		36,000		33,753
	China Resources Power Holdings Co. Ltd.		Independent Power and Renewable Electricity Producers		44,100		53,498
	China Resources Sanjiu Medical & Pharmaceutical Co. Ltd.		Pharmaceuticals		900		3,671
	China Shenhua Energy Co. Ltd., A		Oil, Gas & Consumable Fuels		7,200		18,935
	China Shenhua Energy Co. Ltd., H		Oil, Gas & Consumable Fuels		76,500		153,597
	China Shipbuilding Industry Co. Ltd., A		Machinery		21,600		16,666
a	China Shipbuilding Industry Group Power Co. Ltd., A		Auto Components		1,800		5,762



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STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin FTSE China ETF(continued)



		Industry		Shares		Value
	Common Stocks (continued)
	China (continued)
	China Shipping Container Lines Co. Ltd., A		Marine		10,800	$	3,796
	China Shipping Development Co. Ltd., A		Marine		4,500		4,235
	China South City Holdings Ltd.		Real Estate Management & Development		54,000		6,406
	China South Publishing & Media Group Co. Ltd., A		Media		1,800		3,050
	China Southern Airlines Co. Ltd., A		Airlines		8,100		7,520
	China Southern Airlines Co. Ltd., H		Airlines		36,000		21,813
	China Spacesat Co. Ltd., A		Aerospace & Defense		1,800		5,462
	China State Construction Engineering Corp. Ltd., A		Construction & Engineering		39,600		30,111
	China State Construction International Holdings Ltd.		Construction & Engineering		36,000		33,844
	China Taiping Insurance Holdings Co. Ltd.		Insurance		34,200		76,345
	China Telecom Corp. Ltd., H		Diversified Telecommunication Services		324,000		147,547
b,c	China Tower Corp. Ltd., H,144A, Reg S		Diversified Telecommunication Services		1,062,000		241,136
	China Traditional Chinese Medicine Co. Ltd.		Pharmaceuticals		54,000		24,798
	China TransInfo Technology Co. Ltd.		IT Services		900		2,223
	China Unicom (Hong Kong) Ltd.		Diversified Telecommunication Services		126,000		133,725
	China United Network Communications Ltd., A		Wireless Telecommunication Services		25,200		21,208
	China Vanke Co. Ltd., A		Real Estate Management & Development		9,000		32,642
	China Vanke Co. Ltd., H		Real Estate Management & Development		35,100		122,233
	China Yangtze Power Co. Ltd., A		Independent Power and Renewable Electricity Producers		12,600		32,165
	China Zhongwang Holdings Ltd.		Metals & Mining		36,000		14,649
	Chinese Universe Publishing and Media Group Co. Ltd., A		Media		1,800		3,292
	Chongqing Brewery Co. Ltd., A		Beverages		900		5,171
	Chongqing Changan Automobile Co. Ltd.		Automobiles		3,600		3,736
	Chongqing Changan Automobile Co. Ltd., B		Automobiles		18,000		7,967
	Chongqing Fuling Zhacai Group Co. Ltd., A		Food Products		900		2,814
	Chongqing Rural Commercial Bank Co. Ltd., H		Banks		54,000		28,724
	Chongqing Water Group Co. Ltd., A		Water Utilities		2,700		2,117
	Chongqing Zhifei Biological Products Co. Ltd.		Biotechnology		900		5,980
	CIFI Holdings Group Co. Ltd.		Real Estate Management & Development		72,000		42,064
	CIMC Enric Holdings Ltd.		Machinery		18,000		10,355
a	CITIC Guoan Information Industry Co. Ltd.		Media		5,400		2,730
	Citic Pacific Ltd.		Industrial Conglomerates		108,000		136,388
	CITIC Securities Co. Ltd., A		Capital Markets		9,000		28,331
	CITIC Securities Co. Ltd., H		Capital Markets		54,000		101,120
	CMST Development Co. Ltd., A		Air Freight & Logistics		2,700		1,872
	CNOOC Ltd.		Oil, Gas & Consumable Fuels		360,000		549,226
	Contemporary Amperex Technology Co. Ltd.		Electrical Equipment		900		9,011
	COSCO SHIPPING Development Co. Ltd., H		Marine		81,000		9,299
	COSCO Shipping Energy Transportation Co. Ltd., H		Marine		36,000		15,935
a	COSCO Shipping Holdings Co. Ltd.		Marine		54,000		19,218
	COSCO SHIPPING Ports Ltd.		Transportation Infrastructure		36,000		28,747



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Franklin FTSE China ETF(continued)



		Industry		Shares		Value
	Common Stocks (continued)
	China (continued)
	Country Garden Holdings Co. Ltd.		Real Estate Management & Development		171,000	$	216,602
	Country Garden Services Holdings Co. Ltd.		Commercial Services & Supplies		27,000		77,838
	CRRC Corp. Ltd., A		Machinery		26,100		26,754
	CRRC Corp. Ltd., H		Machinery		90,000		62,798
	CSC Financial Co. Ltd., A		Capital Markets		1,800		5,626
	CSC Financial Co. Ltd., H		Capital Markets		18,000		13,180
	CSG Holding Co. Ltd.		Construction Materials		29,700		9,396
	CSPC Pharmaceutical Group Ltd.		Pharmaceuticals		100,000		200,781
a	CSSC Offshore and Marine Engineering Group Co. Ltd.		Machinery		6,000		4,692
a	Ctrip.com International Ltd., ADR		Internet & Direct Marketing Retail		8,829		258,601
	Dali Foods Group Co. Ltd.		Food Products		45,000		27,611
	Dalian Port PDA Co. Ltd., A		Transportation Infrastructure		7,200		2,037
	Daqin Railway Co. Ltd., A		Road & Rail		12,600		13,392
	Datang International Power Generation Co. Ltd., A		Independent Power and Renewable Electricity Producers		8,100		3,040
	Datang International Power Generation Co. Ltd., H		Independent Power and Renewable Electricity Producers		54,000		11,159
	Dawning Information Industry Co. Ltd., A		Technology Hardware, Storage & Peripherals		900		4,327
	Dazhong Transportation (Group) Co. Ltd., B		Road & Rail		20,700		9,791
	DHC Software Co. Ltd.		IT Services		4,500		4,247
	Dongfang Electric Corp. Ltd., A		Electrical Equipment		2,700		3,482
	Dongfang Electric Corp. Ltd., H		Electrical Equipment		9,000		5,005
	Dongfeng Motor Group Co. Ltd., H		Automobiles		72,000		68,424
	Dongxing Securities Co. Ltd., A		Capital Markets		2,700		4,140
a	Dr Peng Telecom & Media Group Co. Ltd., A		Diversified Telecommunication Services		2,700		2,518
	East Money Information Co. Ltd.		Capital Markets		5,400		11,176
	ENN Energy Holdings Ltd.		Gas Utilities		17,100		176,903
a	Eve Energy Co. Ltd.		Electrical Equipment		900		3,830
	Everbright Securities Co. Ltd., A		Capital Markets		4,500		7,140
	Everbright Securities Co. Ltd., H		Capital Markets		3,600		2,728
a	Fangda Carbon New Material Co. Ltd.		Electrical Equipment		2,682		4,364
	Far East Horizon Ltd.		Diversified Financial Services		45,000		41,789
	FAW CAR Co. Ltd.		Automobiles		1,800		2,092
	Fiberhome Telecommunication Technologies Co. Ltd., A		Communications Equipment		1,800		6,896
	Financial Street Holdings Co. Ltd.		Real Estate Management & Development		4,500		4,852
	Focus Media Information Technology Co. Ltd.		Media		15,300		11,248
	Foshan Haitian Flavouring & Food Co. Ltd.		Food Products		900		13,852
	Fosun International Ltd.		Industrial Conglomerates		49,500		61,248
	Founder Securities Co. Ltd., A		Capital Markets		7,200		6,947
	Foxconn Industrial Internet Co. Ltd., A		Electronic Equipment, Instruments & Components		4,500		9,074
	Fujian Longking Co. Ltd., A		Machinery		1,800		2,503
	Fujian Sunner Development Co. Ltd.		Food Products		900		3,108
	Future Land Development Holdings Ltd.		Real Estate Management & Development		36,000		31,411
	Fuyao Glass Industry Group Co. Ltd., A		Auto Components		2,700		8,121
	Fuyao Group Glass Industries Co. Ltd., H		Auto Components		10,800		29,964
	Ganfeng Lithium Co. Ltd.		Metals & Mining		900		2,843
a	GCL System Integration Technology Co. Ltd.		Semiconductors & Semiconductor Equipment		5,400		5,074
a	GCL-Poly Energy Holdings Ltd.		Semiconductors & Semiconductor Equipment		315,000		12,657
	GD Power Development Co. Ltd., A		Independent Power and Renewable Electricity Producers		13,500		4,518
a	GDS Holdings Ltd., ADR		IT Services		1,152		46,172



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		Industry			Shares		Value
	Common Stocks (continued)
	China (continued)
	Geely Automobile Holdings Ltd.		Automobiles			108,000	$	183,228
	GEM Co. Ltd.		Metals & Mining			4,500		2,804
	Gemdale Corp., A		Real Estate Management & Development			3,600		5,823
a	Genscript Biotech Corp.		Life Sciences Tools & Services			20,000		38,319
a	GF Securities Co. Ltd.		Capital Markets			5,400		10,261
a	GF Securities Co. Ltd., H		Capital Markets			36,000		37,702
	Gigadevice Semiconductor Beijing Inc., A		Semiconductors & Semiconductor Equipment			400		8,143
	Glodon Co. Ltd.		Software			900		4,473
	GoerTek Inc.		Electronic Equipment, Instruments & Components			4,500		11,078
a	GOME Retail Holdings Ltd.		Specialty Retail			243,000		22,008
	Grandjoy Holdings Group Co. Ltd., A		Real Estate Management & Development			2,700		2,560
	Great Wall Motor Co. Ltd., A		Automobiles			4,500		4,852
	Great Wall Motor Co. Ltd., H		Automobiles			72,000		48,218
	Greattown Holdings Ltd., A		Real Estate Management & Development			2,700		2,787
	Gree Electric Appliances Inc. of Zhuhai, A		Household Durables			5,400		43,329
	Greendland Holdings Corp. Ltd., A		Real Estate Management & Development			6,300		6,228
	Greentown China Holdings Ltd.		Real Estate Management & Development			18,000		14,580
	GRG Banking Equipment Co. Ltd.		Technology Hardware, Storage & Peripherals			2,700		3,259
	Guangdong Baolihua New Energy Stock Co. Ltd.		Independent Power and Renewable Electricity Producers			2,700		2,337
	Guangdong Electric Power Development Co. Ltd.		Independent Power and Renewable Electricity Producers			3,600		1,966
	Guangdong Electric Power Development Co. Ltd., B		Independent Power and Renewable Electricity Producers			12,600		3,841
	Guangdong Haid Group Co. Ltd.		Food Products			1,800		7,889
	Guangdong HEC Technology Holding Co. Ltd., A		Metals & Mining			2,700		2,760
	Guangdong Investment Ltd.		Water Utilities			72,000		140,888
a	Guangdong LY Intelligent Manufacturing Co. Ltd.		Electrical Equipment			6,300		8,257
	Guanghui Energy Co. Ltd., A		Oil, Gas & Consumable Fuels			7,200		3,347
	Guangshen Railway Co. Ltd., A		Road & Rail			7,200		3,105
	Guangshen Railway Co. Ltd., H		Road & Rail			36,000		11,389
	Guangxi Guiguan Electric Power Co. Ltd., A		Independent Power and Renewable Electricity Producers			3,600		2,299
	Guangxi Wuzhou Zhongheng Group Co. Ltd., A		Pharmaceuticals			5,400		2,170
	Guangzhou Automobile Group Co. Ltd., A		Automobiles			4,500		7,732
	Guangzhou Automobile Group Co. Ltd., H		Automobiles			72,000		68,883
	Guangzhou Baiyun International Airport Co. Ltd., A		Transportation Infrastructure			1,800		5,659
	Guangzhou Baiyunshan Pharmaceutical Holdings Co. Ltd.		Pharmaceuticals			5,400		17,806
	Guangzhou Baiyunshan Pharmaceutical Holdings Co. Ltd., A		Pharmaceuticals			1,800		8,746
	Guangzhou Haige Communications Group Inc. Co.		Communications Equipment			1,800		2,470
	Guangzhou R&F Properties Co. Ltd., H		Real Estate Management & Development			21,600		32,678
	Guangzhou Zhujiang Brewery Co. Ltd.		Beverages			2,700		2,514
a	Guizhou Xinbang Pharmaceutical Co. Ltd.		Pharmaceuticals			2,700		2,098
	Guosen Securities Co. Ltd.		Capital Markets	��		3,600		6,191
a	Guosheng Financial Holding Inc.		Electrical Equipment			1,800		2,861
	Guotai Junan Securities Co. Ltd.		Capital Markets			18,000		28,012
	Guotai Junan Securities Co. Ltd., A		Capital Markets			7,200		17,715
	Guoxuan High-Tech Co. Ltd.		Electrical Equipment			2,700		4,730
	Guoyuan Securities Co. Ltd.		Capital Markets			3,600		4,305
b,c	Haidilao International Holding Ltd., 144A, Reg S		Hotels, Restaurants & Leisure			9,000		38,460



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STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin FTSE China ETF(continued)



		Industry		Shares		Value
	Common Stocks (continued)
	China (continued)
	Haier Electronics Group Co. Ltd.		Household Durables		27,000	$	70,433
	Haier Smart Home Co. Ltd., A		Household Durables		6,300		13,498
	Haisco Pharmaceutical Group Co. Ltd.		Pharmaceuticals		900		2,286
	Haitian International Holdings Ltd.		Machinery		9,000		18,438
	Haitong Securities Co. Ltd., A		Capital Markets		7,200		14,418
	Haitong Securities Co. Ltd., H		Capital Markets		75,600		79,270
	Han’s Laser Technology Industry Group Co. Ltd., A		Machinery		1,800		8,961
a	Hang Zhou Great Star Industrial Co. Ltd.		Household Durables		2,700		4,148
	Hangzhou Binjiang Real Estate Group Co. Ltd.		Real Estate Management & Development		6,300		3,370
	Hangzhou Hikvision Digital Technology Co. Ltd., A		Electronic Equipment, Instruments & Components		9,000		40,707
	Hangzhou Robam Appliances Co. Ltd., A		Household Durables		900		3,315
	Hangzhou Tigermed Consulting Co. Ltd.		Life Sciences Tools & Services		900		7,820
	Harbin Boshi Automation Co. Ltd.		Machinery		1,800		2,478
a	Harbin Pharmaceutical Group Co. Ltd., A		Pharmaceuticals		3,600		1,926
	Health & Happiness H&H International Holdings Ltd.		Food Products		4,500		18,971
	Heilan Home Co. Ltd.,A-SHSC		Textiles, Apparel & Luxury Goods		3,600		4,093
	Heilongjiang Agriculture Co. Ltd., A		Food Products		2,700		3,664
	Henan Pinggao Electric Co. Ltd., A		Electrical Equipment		2,700		2,639
	Henan Shuanghui Investment & Development Co. Ltd.		Food Products		2,700		9,339
	Henan Zhongyuan Expressway Co. Ltd., A		Transportation Infrastructure		3,600		2,062
	Hengan International Group Co. Ltd.		Personal Products		18,000		118,019
	Hengdian Group DMEGC Magnetics Co. Ltd.		Electronic Equipment, Instruments & Components		2,700		2,579
	Hengli Petrochemical Co. Ltd., A		Chemicals		4,520		9,450
a	HengTen Networks Group Ltd.		Internet & Direct Marketing Retail		468,000		7,104
	Hengtong Optic-electric Co. Ltd., A		Communications Equipment		1,800		3,922
	Hesteel Co. Ltd.		Metals & Mining		14,400		5,082
	Hisense Electric Co. Ltd., A		Household Durables		2,700		3,070
	Hithink RoyalFlush Information Network Co. Ltd.		Capital Markets		900		12,502
	Holitech Technology Co. Ltd.		Electronic Equipment, Instruments & Components		4,500		3,655
	Hopson Development Holdings Ltd.		Real Estate Management & Development		18,000		18,001
	Huaan Securities Co. Ltd., A		Capital Markets		4,500		3,882
	Huadian Fuxin Energy Corp. Ltd., H		Independent Power and Renewable Electricity Producers		54,000		9,437
	Huadian Power International Corp. Ltd., A		Independent Power and Renewable Electricity Producers		8,100		4,061
	Huadian Power International Corp. Ltd., H		Independent Power and Renewable Electricity Producers		36,000		13,685
	Huadong Medicine Co. Ltd., A		Health Care Providers & Services		2,700		9,906
	Huafa Industrial Co. Ltd. Zhuhai, A		Real Estate Management & Development		3,600		3,544
	Huagong Tech Co. Ltd.		Electronic Equipment, Instruments & Components		900		2,392
	Huaibei Mining Holdings Co. Ltd., A		Metals & Mining		1,800		2,558
	Hualan Biological Engineering Inc.		Biotechnology		1,800		8,646
	Huaneng Power International Inc., A		Independent Power and Renewable Electricity Producers		8,100		6,579
	Huaneng Power International Inc., H		Independent Power and Renewable Electricity Producers		90,000		43,281
	Huaneng Renewables Corp. Ltd., H		Independent Power and Renewable Electricity Producers		108,000		36,783
	Huatai Securities Co. Ltd., A		Capital Markets		7,200		19,247
	Huatai Securities Co. Ltd., H		Capital Markets		39,600		59,304
	Huaxi Securities Co. Ltd.		Capital Markets		1,800		2,475
	Huaxia Bank Co. Ltd., A		Banks		15,300		15,812



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		Industry		Shares		Value
	Common Stocks (continued)
	China (continued)
	Huaxin Cement Co. Ltd., A		Construction Materials		1,800	$	4,751
	Huaxin Cement Co. Ltd., B		Construction Materials		6,320		12,419
a	Huayi Brothers Media Corp.		Entertainment		5,400		3,577
	Huayu Automotive Systems Co. Ltd.		Auto Components		3,600		11,847
	Hubei Biocause Pharmaceutical Co. Ltd.		Insurance		5,400		5,331
	Hubei Energy Group Co. Ltd.		Independent Power and Renewable Electricity Producers		5,400		3,078
	Hubei Xinyangfeng Fertilizer Co. Ltd.		Chemicals		1,800		2,596
	Hunan Gold Corp. Ltd.		Metals & Mining		1,800		2,150
a	Hunan Valin Steel Co. Ltd.		Metals & Mining		5,400		3,085
	Hundsun Technologies Inc., A		Software		900		9,317
	Hytera Communications Corp. Ltd., A		Communications Equipment		1,800		2,586
a	Iflytek Co. Ltd.		Software		2,700		12,046
	Industrial and Commercial Bank of China Ltd.		Banks		72,900		56,452
	Industrial and Commercial Bank of China Ltd., H		Banks		1,782,000		1,193,395
	Industrial Bank Co. Ltd., A		Banks		19,800		48,604
	Industrial Securities Co. Ltd., A		Capital Markets		6,300		5,487
	Inner Mongolia BaoTou Steel Union Co. Ltd., A		Metals & Mining		37,800		7,728
	Inner Mongolia First Machinery Group Co. Ltd., A		Machinery		1,800		2,654
	Inner Mongolia MengDian HuaNeng Thermal Power Co. Ltd., A		Independent Power and Renewable Electricity Producers		7,200		3,005
	Inner Mongolia Yili Industrial Group Co. Ltd., A		Food Products		5,400		21,566
	Inner Mongolia Yitai Coal Co. Ltd., B		Oil, Gas & Consumable Fuels		22,500		20,633
a,b,c	Innovent Biologics Inc., 144A, Reg S		Biotechnology		22,500		71,609
	Inspur Electronic Information Industry Co. Ltd.		Technology Hardware, Storage & Peripherals		1,800		6,478
a	Iqiyi Inc., ADR		Entertainment		2,970		47,906
a	JD.com Inc., ADR		Internet & Direct Marketing Retail		18,171		512,604
a	Jiangsu Changjiang Electronics Technology Co. Ltd., A		Semiconductors & Semiconductor Equipment		2,700		6,507
	Jiangsu Eastern Shenghong Co. Ltd.		Chemicals		4,500		3,239
	Jiangsu Expressway Co. Ltd., H		Transportation Infrastructure		36,000		45,738
	Jiangsu Financial Leasing Co. Ltd., A		Diversified Financial Services		2,700		2,170
a	Jiangsu Guoxin Corp. Ltd.		Electric Utilities		2,700		2,862
	Jiangsu Hengli Hydraulic Co. Ltd., A		Machinery		900		4,852
	Jiangsu Hengrui Medicine Co. Ltd., A		Pharmaceuticals		4,500		50,840
	Jiangsu King’s Luck Brewery JSC Ltd.		Beverages		900		4,073
	Jiangsu Yanghe Brewery JST Co. Ltd., A		Beverages		1,800		26,214
	Jiangsu Yuyue Medical Equipment & Supply Co. Ltd.		Health Care Equipment & Supplies		900		2,722
	Jiangsu Zhongnan Construction Group Co. Ltd.		Real Estate Management & Development		4,500		4,890
	Jiangsu Zhongtian Technology Co. Ltd., A		Electrical Equipment		4,500		5,444
	Jiangsu Zijin Rural Commercial Bank Co. Ltd., A		Banks		2,700		2,348
	Jiangxi Bank Co. Ltd., H		Banks		22,500		13,317
	Jiangxi Copper Co. Ltd., A		Metals & Mining		1,800		3,622
	Jiangxi Copper Co. Ltd., H		Metals & Mining		27,000		31,273
	Jiangxi Zhengbang Technology Co. Ltd., A		Food Products		1,800		3,809
	Jiayuan International Group Ltd.		Real Estate Management & Development		36,000		15,016



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STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin FTSE China ETF(continued)



		Industry		Shares		Value
	Common Stocks (continued)
	China (continued)
	Jilin Aodong Pharmaceutical Group Co. Ltd.		Pharmaceuticals		900	$	1,941
	Jinduicheng Molybdenum Co. Ltd., A		Metals & Mining		4,500		4,758
	Jinke Properties Group Co. Ltd.		Real Estate Management & Development		4,500		4,134
	JinyuBio-Technology Co. Ltd., A		Biotechnology		900		2,378
	Jizhong Energy Resources Co. Ltd.		Oil, Gas & Consumable Fuels		5,400		2,647
	JoInc. Aare Pharmaceutical Group Industry Co. Ltd., A		Pharmaceuticals		1,800		2,473
	Jointown Pharmaceutical Group Co. Ltd., A		Health Care Providers & Services		1,800		3,597
	JonjeeHi-Tech Industrial And Commercial Holding Co. Ltd., A		Food Products		900		5,347
	Joyoung Co. Ltd.		Household Durables		900		2,758
	Kingboard Holdings Ltd.		Electronic Equipment, Instruments & Components		18,000		47,644
	Kingdee International Software Group Co. Ltd.		Software		54,000		56,897
a	Kingsoft Corp. Ltd.		Software		21,000		44,575
a	Kuang-Chi Technologies Co. Ltd.		Auto Components		3,600		4,517
	Kunlun Energy Co. Ltd.		Gas Utilities		72,000		61,995
	Kweichow Moutai Co. Ltd., A		Beverages		1,200		193,245
	KWG Group Holdings Ltd.		Real Estate Management & Development		27,000		23,661
	Lao Feng Xiang Co. Ltd., B		Textiles, Apparel & Luxury Goods		5,400		18,241
	Legend Holdings Corp., H		Technology Hardware, Storage & Peripherals		11,700		25,282
a,d	Legend Holdings Corp., rts., 2/20/49		Technology Hardware, Storage & Peripherals		830		—
	Lens Technology Co. Ltd.		Electronic Equipment, Instruments & Components		1,800		2,596
a	Leo Group Co. Ltd.		Media		11,700		2,736
	Lepu Medical Technology Beijing Co. Ltd.		Health Care Equipment & Supplies		1,800		6,317
	Leyard Optoelectronic Co. Ltd.		Electronic Equipment, Instruments & Components		3,600		3,509
	Li Ning Co. Ltd.		Textiles, Apparel & Luxury Goods		40,500		116,240
a	Liaoning Cheng Da Co. Ltd., A		Distributors		1,800		3,335
	Livzon Pharmaceutical Group Inc., H		Pharmaceuticals		4,500		11,538
	Logan Property Holdings Co. Ltd.		Real Estate Management & Development		22,000		31,319
	Lomon Billions Group Co. Ltd.		Chemicals		1,800		3,199
b,c	Longfor Group Holdings Ltd., 144A, Reg S		Real Estate Management & Development		36,000		134,551
	LONGi Green Energy Technology Co. Ltd., A		Semiconductors & Semiconductor Equipment		3,600		13,223
	Luenmei Quantum Co. Ltd., A		Water Utilities		2,700		4,235
	Luxi Chemical Group Co. Ltd.		Chemicals		1,800		2,483
	Luxshare Precision Industry Co. Ltd.		Electronic Equipment, Instruments & Components		5,440		20,385
	Luye Pharma Group Ltd.		Pharmaceuticals		36,000		25,670
	Luzhou Laojiao Co. Ltd.		Beverages		1,800		21,480
	Maanshan Iron & Steel Co. Ltd., H		Metals & Mining		36,000		13,547
a	Mango Excellent Media Co. Ltd.		Entertainment		900		5,767
	Meinian Onehealth Healthcare Holdings Co. Ltd.		Health Care Providers & Services		4,560		7,765
a,b,c	Meitu Inc., 144A, Reg S		Technology Hardware, Storage & Peripherals		45,000		10,332
a,b	Meituan Dianping, B, Reg S		Internet & Direct Marketing Retail		77,400		790,844
	Metallurgical Corp. Of China Ltd.		Construction & Engineering		63,000		14,144
	Metallurgical Corp. of China Ltd., A		Construction & Engineering		19,800		7,736
	Momo Inc., ADR		Interactive Media & Services		2,385		73,887
	Muyuan Foodstuff Co. Ltd.		Food Products		1,800		17,770
a	NanJiE-Commerce Co. Ltd.		Textiles, Apparel & Luxury Goods		2,700		3,898
	Nanjing Securities Co. Ltd., A		Capital Markets		1,800		2,110
	Nari Technology Development Co. Ltd., A		Electrical Equipment		4,500		12,886
	NAURA Technology Group Co. Ltd., A		Electronic Equipment, Instruments & Components		900		8,265
	NavInfo Co. Ltd.		Household Durables		2,700		6,155
	NetEase Inc., ADR		Entertainment		1,629		433,607
	New China Life Insurance Co. Ltd., A		Insurance		1,800		12,268
	New China Life Insurance Co. Ltd., H		Insurance		19,800		78,297
	New Hope Liuhe Co. Ltd.		Food Products		3,600		8,656
a	New Oriental Education & Technology Group Inc., ADR		Diversified Consumer Services		3,123		345,903



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Franklin FTSE China ETF(continued)



		Industry		Shares		Value
	Common Stocks (continued)
	China (continued)
	Newland Digital Technology Co. Ltd.		Software		1,800	$	4,129
	Nine Dragons Paper Holdings Ltd.		Paper & Forest Products		36,000		30,308
a	Ningbo Joyson Electronic Corp.		Auto Components		1,260		3,059
	Ningbo Shanshan Co. Ltd., A		Chemicals		1,800		2,700
	Ningbo Zhoushan Port Co. Ltd., A		Transportation Infrastructure		6,300		3,291
a	NIO Inc., ADR		Automobiles		3,537		5,518
	Northeast Securities Co. Ltd.		Capital Markets		1,800		2,049
	Oceanwide Holdings Co. Ltd.		Real Estate Management & Development		5,400		3,267
	Offshore Oil Engineering Co. Ltd., A		Energy Equipment & Services		5,400		4,076
a	OFILM Group Co. Ltd.		Electronic Equipment, Instruments & Components		2,700		4,499
a	ORG Technology Co. Ltd.		Containers & Packaging		3,600		2,374
	Orient Securities Co. Ltd. of China, H		Capital Markets		18,000		10,700
	Oriental Pearl Group Co. Ltd., A		Media		1,800		2,306
a	Pangang Group Vanadium Titanium & Resources Co. Ltd., A		Metals & Mining		8,100		3,391
	People’s Insurance Co. Group of China Ltd., H		Insurance		180,000		72,097
	Perfect World Co. Ltd.		Entertainment		900		3,491
	PetroChina Co. Ltd., H		Oil, Gas & Consumable Fuels		468,000		240,585
	PICC Property and Casualty Co. Ltd., H		Insurance		154,000		179,746
a	Pinduoduo Inc., ADR		Internet & Direct Marketing Retail		2,403		77,425
	Ping An Bank Co. Ltd., A		Banks		16,200		35,366
a,b	Ping An Healthcare and Technology Co. Ltd., Reg S		Health Care Technology		3,600		21,055
	Ping An Insurance (Group) Co. of China Ltd., H		Insurance		126,000		1,447,343
	Ping An Insurance Group Co. of China Ltd., A		Insurance		10,800		131,635
a	Pingdingshan Tianan Coal Mining Co. Ltd., A		Oil, Gas & Consumable Fuels		3,600		1,911
	Poly Developments and Holdings Group Co. Ltd., A		Real Estate Management & Development		9,900		19,824
	Poly Property Group Co. Ltd.		Real Estate Management & Development		45,000		15,671
	Postal Savings Bank of China Co. Ltd., H		Banks		216,000		131,704
	Power Construction Corp. of China Ltd.		Construction & Engineering		11,700		7,586
	Qingdao Port International Co. Ltd., A		Transportation Infrastructure		1,800		1,875
b	Qingdao Port International Co. Ltd., H, Reg S		Transportation Infrastructure		27,000		16,532
	Qingdao TGOOD Electric Co. Ltd.		Electrical Equipment		900		2,035
	Red Star Macalline Group Corp. Ltd.		Real Estate Management & Development		10,800		9,024
	Red Star Macalline Group Corp. Ltd., A		Real Estate Management & Development		2,700		4,291
	RiseSun Real Estate Development Co. Ltd.		Real Estate Management & Development		3,600		4,174
	Rongsheng Petro Chemical Co. Ltd.		Chemicals		1,800		2,760
	SAIC Motor Corp. Ltd.		Automobiles		9,900		32,967
	Sanan Optoelectronics Co. Ltd., A		Semiconductors & Semiconductor Equipment		4,500		8,872
	Sansteel Minguang Co. Ltd.		Metals & Mining		3,600		4,053
	Sany Heavy Industry Co. Ltd., A		Machinery		7,200		14,398
	SDIC Capital Co. Ltd., A		Capital Markets		3,600		6,281
	SDIC Power Holdings Co. Ltd., A		Independent Power and Renewable Electricity Producers		5,400		6,813
	Sealand Securities Co. Ltd.		Capital Markets		5,400		3,736
	Seazen Holdings Co. Ltd., A		Real Estate Management & Development		1,800		7,153
	SF Holding Co. Ltd.		Air Freight & Logistics		2,700		14,904
	Shaanxi Coal Industry Co. Ltd.		Oil, Gas & Consumable Fuels		6,300		7,702
	Shaanxi International Trust Co. Ltd.		Capital Markets		5,400		3,108
	Shandong Chenming Paper Holdings Ltd.		Paper & Forest Products		7,200		4,779
	Shandong Chenming Paper Holdings Ltd., B		Paper & Forest Products		12,600		5,111



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STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin FTSE China ETF(continued)



		Industry		Shares		Value
	Common Stocks (continued)
	China (continued)
	Shandong Chenming Paper Holdings Ltd., H		Paper & Forest Products		4,500	$	1,802
b,c	Shandong Gold Mining Co. Ltd., 144A, Reg S		Metals & Mining		9,000		22,295
	Shandong Gold Mining Co. Ltd., A		Metals & Mining		1,860		8,827
	ShandongHi-speed Co. Ltd., A		Transportation Infrastructure		3,600		2,203
	Shandong Hualu Hengsheng Chemical Co. Ltd., A		Chemicals		1,800		4,141
	Shandong Linglong Tyre Co. Ltd., A		Auto Components		900		2,568
	Shandong Nanshan Aluminum Co. Ltd., A		Metals & Mining		16,200		4,809
	Shandong Sun Paper Industry JSC Ltd.		Paper & Forest Products		1,800		1,999
	Shandong Weigao Group Medical Polymer Co. Ltd., H		Health Care Equipment & Supplies		52,000		53,530
a	Shandong XInc. Ahao Energy Corp. Ltd., A		Oil, Gas & Consumable Fuels		10,800		3,040
	Shanghai 2345 Network Holding Group Co. Ltd.		Software		3,600		1,669
	Shanghai Bailian Group Co. Ltd., B		Food & Staples Retailing		4,500		4,163
	Shanghai Baosight Software Co. Ltd., A		Software		900		4,507
	Shanghai Baosight Software Co. Ltd., B		Software		6,320		12,248
	Shanghai Chlor-Alkali Chemical Co. Ltd., B		Chemicals		10,800		6,642
	Shanghai Construction Group Co. Ltd., A		Construction & Engineering		4,500		2,136
	Shanghai Electric Group Co. Ltd., A		Electrical Equipment		7,200		5,061
	Shanghai Electric Group Co. Ltd., H		Electrical Equipment		72,000		23,236
	Shanghai Electric Power Co. Ltd., A		Independent Power and Renewable Electricity Producers		1,800		1,989
	Shanghai Fosun Pharmaceutical Group Co. Ltd., A		Pharmaceuticals		1,800		6,370
	Shanghai Fosun Pharmaceutical Group Co. Ltd., H		Pharmaceuticals		13,500		36,250
	Shanghai Haixin Group Co., B		Pharmaceuticals		10,800		4,439
	Shanghai Huayi Group Co. Ltd., B		Chemicals		6,300		4,347
	Shanghai Industrial Development Co. Ltd., A		Real Estate Management & Development		2,700		2,257
	Shanghai Industrial Holdings Ltd.		Industrial Conglomerates		9,000		16,762
	Shanghai Industrial Urban Development Group Ltd.		Real Estate Management & Development		9,000		1,137
	Shanghai International Airport Co. Ltd., A		Transportation Infrastructure		1,800		20,109
	Shanghai International Port Group Co. Ltd., A		Transportation Infrastructure		9,900		7,888
	Shanghai Jahwa United Co. Ltd., A		Personal Products		900		4,329
	Shanghai Jinjiang International Hotels Co. Ltd.		Hotels, Restaurants & Leisure		3,600		6,869
	Shanghai Jinjiang International Industrial Investment Co. Ltd.		Road & Rail		4,500		4,266
	Shanghai Jinqiao Export Processing Zone Development, B		Real Estate Management & Development		6,300		6,703
	Shanghai Lujiazui Finance & Trade Zone Develop Co. Ltd., B		Real Estate Management & Development		25,200		28,274
	Shanghai Lujiazui Finance & Trade Zone Development Co. Ltd., A		Real Estate Management & Development		1,800		3,443
	Shanghai M&G Stationery Inc., A		Commercial Services & Supplies		900		5,616
	Shanghai Mechanical and Electrical Industry Co. Ltd., B		Machinery		8,100		13,559
	Shanghai Pharmaceuticals Holding Co. Ltd., A		Health Care Providers & Services		1,800		4,587
	Shanghai Pharmaceuticals Holding Co. Ltd., H		Health Care Providers & Services		18,900		34,235
	Shanghai Pudong Development Bank Co. Ltd., A		Banks		27,900		46,258



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Franklin FTSE China ETF(continued)



		Industry		Shares		Value
	Common Stocks (continued)
	China (continued)
	Shanghai ShibeiHi-Tech Co. Ltd., B		Real Estate Management & Development		12,600	$	4,927
	Shanghai Shimao Co. Ltd., A		Real Estate Management & Development		6,300		3,723
	Shanghai Tunnel Engineering Co. Ltd., A		Construction & Engineering		5,400		4,454
	Shanghai Waigaoqiao Free Trade Zone Group Co. Ltd.		Trading Companies & Distributors		6,300		8,763
	Shanghai Yuyuan Tourist Mart Group Co. Ltd., A		Specialty Retail		4,500		5,136
	Shanghai Zhangjiang High-Tech Park Development Co. Ltd., A		Real Estate Management & Development		900		1,953
	Shanghai Zhenhua Port Machinery Co. Ltd., B		Machinery		24,340		8,324
	Shanxi Lu’an Environmental Energy Development Co. Ltd., A		Oil, Gas & Consumable Fuels		3,600		3,650
	Shanxi Securities Co. Ltd.		Capital Markets		3,600		3,957
	Shanxi Xinghuacun Fen Wine Factory Co. Ltd., A		Beverages		900		9,743
	Shanxi Xishan Coal & Electricity Power Co. Ltd.		Oil, Gas & Consumable Fuels		4,500		3,705
a	Shanying International Holding Co. Ltd., A		Paper & Forest Products		4,500		1,941
	Shenergy Co. Ltd., A		Independent Power and Renewable Electricity Producers		4,500		3,497
	Shenghe Resources Holding Co. Ltd., A		Metals & Mining		1,800		2,299
	Shengyi Technology Co. Ltd., A		Electronic Equipment, Instruments & Components		1,800		6,286
	Shenwan Hongyuan Group Co. Ltd.		Capital Markets		21,600		14,458
	Shenzhen Accord Pharmaceutical Co. Ltd., B		Health Care Providers & Services		1,800		6,601
	Shenzhen Airport Co. Ltd.		Transportation Infrastructure		1,800		2,775
	Shenzhen Energy Group Co. Ltd.		Independent Power and Renewable Electricity Producers		4,500		3,642
	Shenzhen Everwin Precision Technology Co. Ltd.		Electronic Equipment, Instruments & Components		1,800		3,577
	Shenzhen Expressway Co. Ltd., H		Transportation Infrastructure		18,000		23,466
	Shenzhen Gas Corporation Ltd., A		Gas Utilities		2,700		2,435
	Shenzhen Huaqiang Industry Co. Ltd.		Real Estate Management & Development		1,800		3,645
	Shenzhen Infogem Technologies Co. Ltd.		Software		900		2,015
	Shenzhen Inovance Technology Co. Ltd.		Machinery		1,800		6,133
	Shenzhen International Holdings Ltd.		Transportation Infrastructure		22,500		43,224
	Shenzhen Investment Ltd.		Real Estate Management & Development		72,000		26,543
	Shenzhen Jinjia Group Co. Ltd.		Containers & Packaging		1,800		2,422
	Shenzhen Kaifa Technology Co. Ltd.		Technology Hardware, Storage & Peripherals		1,800		2,805
	Shenzhen Kangtai Biological Products Co. Ltd.		Biotechnology		900		9,356
a	Shenzhen KingdomSci-Tech Co. Ltd., A		Software		900		2,634
	Shenzhen MindrayBio-Medical Electronics Co. Ltd., A		Health Care Equipment & Supplies		400		10,332
a	Shenzhen MTC Co. Ltd.		Household Durables		9,900		3,868
	Shenzhen Neptunus Bioengineering Co. Ltd.		Health Care Providers & Services		4,500		2,092
	Shenzhen Overseas Chinese Town Co. Ltd.		Hotels, Restaurants & Leisure		9,000		8,860
a	Shenzhen Sunway Communication Co. Ltd.		Communications Equipment		900		4,512
	Shenzhen Yan Tian Port Holding Co. Ltd.		Transportation Infrastructure		2,700		2,219
	Shenzhen Zhongjin Lingnan Nonfemet Co. Ltd.		Metals & Mining		5,400		3,055
	Shenzhou International Group Holdings Ltd.		Textiles, Apparel & Luxury Goods		16,200		211,608
a	Shijiazhuang Changshan BeiMing Technology Co. Ltd.		Textiles, Apparel & Luxury Goods		4,500		3,384
	Shimao Property Holdings Ltd.		Real Estate Management & Development		27,000		78,871



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STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin FTSE China ETF(continued)



		Industry		Shares		Value
	Common Stocks (continued)
	China (continued)
a	Siasun Robot & Automation Co. Ltd.		Machinery		2,700	$	5,456
	Sichuan Chuantou Energy Co. Ltd., A		Independent Power and Renewable Electricity Producers		2,700		3,773
	Sichuan Expressway Co. Ltd., H		Transportation Infrastructure		18,000		5,350
a	Sichuan Hebang Biotechnology Co. Ltd., A		Chemicals		14,400		3,126
	Sichuan Kelun Pharmaceutical Co. Ltd.		Pharmaceuticals		900		3,259
	Sichuan Languang Development Co. Ltd., A		Real Estate Management & Development		2,700		2,272
	Sichuan Swellfun Co. Ltd., A		Beverages		900		5,712
	Sihuan Pharmaceutical Holdings Group Ltd.		Pharmaceuticals		99,000		15,028
a	SINA Corp.		Interactive Media & Services		1,386		54,317
	Sino-Ocean Land Holdings Ltd.		Real Estate Management & Development		63,000		21,377
	Sinolink Securities Co. Ltd., A		Capital Markets		3,600		4,391
	Sinoma Science & Technology Co. Ltd.		Chemicals		1,800		2,626
	Sinopec Engineering Group Co. Ltd.		Construction & Engineering		36,000		22,594
a	Sinopec Oilfield Service Corp.		Energy Equipment & Services		36,000		3,766
a	Sinopec Oilfield Service Corp., A		Energy Equipment & Services		10,800		3,388
	Sinopec Shanghai Petrochemical Co. Ltd., A		Chemicals		8,100		4,730
	Sinopec Shanghai Petrochemical Co. Ltd., H		Chemicals		72,000		20,940
	Sinopharm Group Co. Ltd., H		Health Care Providers & Services		28,800		90,191
	Sinotrans Ltd., A		Air Freight & Logistics		4,500		2,678
	Sinotrans Ltd., H		Air Freight & Logistics		45,000		14,121
	Sinotruk Hong Kong Ltd.		Machinery		13,500		20,010
	Soho China Ltd.		Real Estate Management & Development		36,000		10,287
	Songcheng Performance Development Co. Ltd.		Hotels, Restaurants & Leisure		1,800		7,043
	SooChow Securities Co. Ltd., A		Capital Markets		3,600		4,663
	Southwest Securities Co. Ltd., A		Capital Markets		5,400		3,410
	STO Express Co. Ltd.		Air Freight & Logistics		900		2,897
	Sunac China Holdings Ltd.		Real Estate Management & Development		54,000		216,981
	Sungrow Power Supply Co. Ltd.		Electrical Equipment		1,800		2,848
	Suning Universal Co. Ltd.		Real Estate Management & Development		3,600		1,860
	Suning.com Co. Ltd.		Specialty Retail		9,900		14,362
	Sunny Optical Technology Group Co. Ltd.		Electronic Equipment, Instruments & Components		14,400		211,608
	Sunwoda Electronic Co. Ltd.		Electrical Equipment		1,800		3,819
	Suofeiya Home Collection Co. Ltd.		Household Durables		900		2,158
	Suzhou Gold Mantis Construction Decoration Co. Ltd.		Construction & Engineering		4,500		5,715
	Tahoe Group Co. Ltd.		Real Estate Management & Development		2,700		2,272
a	TAL Education Group, ADR		Diversified Consumer Services		7,767		265,942
	Tangshan Jidong Cement Co. Ltd.		Construction Materials		1,800		3,864
	TangShan Port Group Co. Ltd., A		Transportation Infrastructure		11,700		4,030
	Tasly Pharmaceutical Group Co. Ltd., A		Pharmaceuticals		900		1,964
	TBEA Co. Ltd., A		Electrical Equipment		5,400		4,915
	TCL Corp.		Household Durables		10,800		5,384
	Tencent Holdings Ltd.		Interactive Media & Services		130,200		5,484,098
a	Tencent Music Entertainment Group, ADR		Entertainment		2,448		31,261
a	The China Pacific Securities Co. Ltd., A		Capital Markets		8,100		3,879
	Tian Di Science & Technology Co. Ltd., A		Machinery		7,200		3,307
	Tianfeng Securities Co. Ltd., A		Capital Markets		4,500		5,413
	Tianjin Capital Environmental Protection Group Co. Ltd.		Commercial Services & Supplies		18,000		6,199
	Tianjin Port Co. Ltd., A		Transportation Infrastructure		2,700		2,329
	Tianjin Zhonghuan Semiconductor Co. Ltd.		Semiconductors & Semiconductor Equipment		3,600		6,105
	Tianma Microelectronics Co. Ltd.		Electronic Equipment, Instruments & Components		1,800		3,483
	Tianqi Lithium Corp.		Chemicals		1,800		6,856



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STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin FTSE China ETF(continued)



		Industry		Shares		Value
	Common Stocks (continued)
	China (continued)
	Times China Holdings Ltd.		Real Estate Management & Development		18,000	$	28,012
a,b	Tongcheng-Elong Holdings Ltd., Reg S		Internet & Direct Marketing Retail		18,000		27,645
	Tonghua Dongbao Pharmaceutical Co. Ltd.		Pharmaceuticals		900		2,206
	Tongkun Group Co. Ltd., A		Chemicals		1,800		3,201
	Tongling Nonferrous Metals Group Co. Ltd.		Metals & Mining		9,900		3,008
	Tongwei Co. Ltd., A		Food Products		1,800		3,211
	TravelSky Technology Ltd., H		IT Services		18,000		37,380
	Tsingtao Brewery Co. Ltd., A		Beverages		900		6,112
	Tsingtao Brewery Co. Ltd., H		Beverages		9,000		54,303
	Tunghsu Optoelectronic Technology Co. Ltd.		Electronic Equipment, Instruments & Components		6,300		5,011
	Unigroup Guoxin Microelectronics Co. Ltd.		Electronic Equipment, Instruments & Components		900		6,439
	Unisplendour Corp. Ltd.		Electronic Equipment, Instruments & Components		900		3,967
	Venustech Group Inc.		Software		900		4,030
a	Vipshop Holdings Ltd., ADR		Internet & Direct Marketing Retail		9,342		83,331
	Walvax Biotechnology Co. Ltd.		Biotechnology		1,800		6,803
	Wangsu Science & Technology Co. Ltd.		IT Services		4,500		6,301
	Wanhua Chemical Group Co. Ltd., A		Chemicals		2,700		16,693
	Wanxiang Qianchao Co. Ltd.		Auto Components		5,400		3,917
a	Weibo Corp., ADR		Interactive Media & Services		1,179		52,760
	Weichai Power Co. Ltd., A		Machinery		6,300		9,898
	Weichai Power Co. Ltd., H		Machinery		45,000		64,865
	Weifu High-Technology Co. Ltd., B		Auto Components		4,500		7,129
	Wens Foodstuffs Group Co. Ltd.		Food Products		1,800		9,372
a	Western Mining Co. Ltd., A		Metals & Mining		2,700		2,095
	Western Securities Co. Ltd.		Capital Markets		3,600		4,492
	Winning Health Technology Group Co. Ltd.		Health Care Technology		1,800		4,003
	Wolong Electric Group Co. Ltd., A		Electrical Equipment		1,800		2,095
	Wonders Information Co. Ltd.		IT Services		1,800		3,431
	Wuchan Zhongda Group Co. Ltd., A		Distributors		5,400		4,144
	Wuhan Guide Infrared Co. Ltd.		Electronic Equipment, Instruments & Components		900		2,994
	Wuhu Sanqi Interactive Entertainment Network Technology Group Co. Ltd.		Entertainment		1,800		4,545
	Wuliangye Yibin Co. Ltd.		Beverages		3,600		65,434
	WUS Printed Circuit Kunshan Co. Ltd.		Electronic Equipment, Instruments & Components		1,800		6,175
	WuXi AppTec Co. Ltd., A		Life Sciences Tools & Services		900		10,927
	WuXi AppTec Co. Ltd., H		Life Sciences Tools & Services		3,600		39,355
a,b,c	Wuxi Biologics Cayman Inc., 144A, Reg S		Life Sciences Tools & Services		13,500		137,766
	Wuxi Lead Intelligent Equipment Co. Ltd.		Electronic Equipment, Instruments & Components		1,800		8,494
	XCMG Construction Machinery Co. Ltd.		Machinery		8,100		5,025
	Xiamen C & D Inc., A		Trading Companies & Distributors		4,500		5,482
	Xiamen Tungsten Co. Ltd., A		Metals & Mining		1,800		3,380
a	Xiaomi Corp., B		Technology Hardware, Storage & Peripherals		208,800		234,385
	Xinhu Zhongbao Co. Ltd., A		Real Estate Management & Development		9,900		4,006
	Xinhua Winshare Publishing and Media Co. Ltd., H		Distributors		9,000		6,383
	Xinjiang Goldwind Science & Technology Co. Ltd.		Electrical Equipment		3,600		6,312
	Xinjiang Goldwind Science & Technology Co. Ltd., H		Electrical Equipment		14,400		17,046
	Xinjiang Zhongtai Chemical Co. Ltd.		Chemicals		2,700		2,639
	Xinxing Ductile Iron Pipes Co. Ltd.		Metals & Mining		8,100		4,424
	Yang Quan Coal Industry Group Co. Ltd., A		Oil, Gas & Consumable Fuels		3,600		2,601
	Yango Group Co. Ltd.		Real Estate Management & Development		4,500		3,718
b	Yangtze Optical Fibre and Cable Joint Stock Ltd. Co., H, Reg S		Communications Equipment		4,500		7,256
	Yantai Changyu Pioneer Wine Co. Ltd., B		Beverages		5,400		11,007
	Yantai Jereh Oilfield Services Group Co. Ltd.		Energy Equipment & Services		1,800		6,808
	Yanzhou Coal Mining Co. Ltd., A		Oil, Gas & Consumable Fuels		4,500		6,711



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STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin FTSE China ETF(continued)



		Industry		Shares		Value
	Common Stocks (continued)
	China (continued)
	Yanzhou Coal Mining Co. Ltd., H		Oil, Gas & Consumable Fuels		36,000	$	36,554
	Yifan Pharmaceutical Co. Ltd.		Pharmaceuticals		1,800		3,380
	Yihai International Holding Ltd.		Food Products		11,000		65,388
	Yintai Resources Co. Ltd.		Metals & Mining		1,800		3,287
	Yonghui Superstores Co. Ltd., A		Food & Staples Retailing		7,200		8,963
	Yonyou Network Technology Co. Ltd., A		Software		2,700		11,679
	YTO Express Group Co. Ltd., A		Air Freight & Logistics		1,800		2,901
	Yuan Longping High-tech Agriculture Co. Ltd.		Food Products		2,700		4,741
	Yuexiu Property Co. Ltd.		Real Estate Management & Development		144,000		31,227
	Yunda Holding Co. Ltd.		Air Freight & Logistics		900		4,335
a	Yunnan Aluminium Co. Ltd.		Metals & Mining		3,600		2,269
	Yunnan Baiyao Group Co. Ltd.		Pharmaceuticals		900		9,585
	Yunnan Hongxiang Yixintang Pharmaceutical Co. Ltd.		Food & Staples Retailing		900		2,824
a	Yunnan Tin Co. Ltd.		Metals & Mining		1,800		2,558
a	YY Inc., ADR		Interactive Media & Services		1,215		68,319
	Zhangzhou Pientzehuang Pharmaceutical Co. Ltd., A		Pharmaceuticals		900		12,840
	Zhaojin Mining Industry Co. Ltd., H		Metals & Mining		22,500		26,032
	Zhefu Holding Group Co. Ltd.		Electrical Equipment		3,600		2,299
	Zhejiang China Commodities City Group Co. Ltd., A		Real Estate Management & Development		8,100		4,288
	Zhejiang Chint Electrics Co. Ltd., A		Electrical Equipment		1,800		5,502
	Zhejiang Crystal-Optech Co. Ltd.		Electronic Equipment, Instruments & Components		1,800		3,698
	Zhejiang Dahua Technology Co. Ltd.		Electronic Equipment, Instruments & Components		3,600		8,706
	Zhejiang Expressway Co. Ltd., H		Transportation Infrastructure		36,000		31,135
	Zhejiang Hailiang Co. Ltd.		Metals & Mining		1,800		2,609
	Zhejiang Hisoar Pharmaceutical Co. Ltd.		Pharmaceuticals		2,700		2,601
	Zhejiang Huace Film & TV Co. Ltd., A		Entertainment		2,700		2,495
a	Zhejiang Huahai Pharmaceutical Co. Ltd., A		Pharmaceuticals		900		1,863
	Zhejiang Huayou Cobalt Co. Ltd., A		Metals & Mining		900		3,391
	Zhejiang Juhua Co. Ltd., A		Chemicals		4,500		4,455
	Zhejiang Longsheng Group Co. Ltd., A		Chemicals		3,600		7,088
	Zhejiang Medicine Co. Ltd., A		Pharmaceuticals		1,800		2,886
	Zhejiang NHU Co. Ltd.		Pharmaceuticals		2,700		8,087
	Zhejiang Runtu Co. Ltd.		Chemicals		1,800		2,939
	Zhejiang Sanhua Intelligent Controls Co. Ltd.		Machinery		2,700		4,976
	Zhejiang Satellite Petrochemical Co. Ltd.		Chemicals		1,800		3,133
	Zhejiang Semir Garment Co. Ltd.		Textiles, Apparel & Luxury Goods		1,800		3,115
	Zhejiang Supor Co. Ltd.		Household Durables		900		9,040
	Zhejiang Wanfeng Auto Wheel Co. Ltd.		Auto Components		1,800		1,777
	Zhejiang Weixing New Building Materials Co. Ltd.		Building Products		1,800		4,008
	Zhengzhou Coal Mining Machinery Group Co. Ltd., A		Machinery		2,700		2,340
	Zhengzhou Yutong Bus Co. Ltd., A		Machinery		1,800		3,504
a,b	ZhongAn Online P&C Insurance Co. Ltd., Reg S		Insurance		8,100		19,115
	Zhongji Innolight Co. Ltd.		Machinery		900		5,122
	Zhongjin Gold Corp. Ltd., A		Metals & Mining		2,700		3,282
	Zhongshan Public Utilities Group Co. Ltd.		Water Utilities		1,800		2,004
	Zhongsheng Group Holdings Ltd.		Specialty Retail		13,500		42,621
	Zhuzhou CRRC Times Electric Co. Ltd., H		Electrical Equipment		11,700		48,430
	Zijin Mining Group Co. Ltd., A		Metals & Mining		18,000		8,242
	Zijin Mining Group Co. Ltd., H		Metals & Mining		126,000		43,557
	Zoomlion Heavy Industry Science and Technology Co. Ltd.		Machinery		6,300		5,029
	Zoomlion Heavy Industry Science and Technology Development Co. Ltd., H		Machinery		28,800		19,508



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FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin FTSE China ETF(continued)



		Industry		Shares		Value
	Common Stocks (continued)
	China (continued)
a	ZTE Corp.		Communications Equipment		3,600	$	16,137
a	ZTE Corp., H		Communications Equipment		18,000		47,759
	ZTO Express Cayman Inc., ADR		Air Freight & Logistics		7,452		158,951


							38,846,020

	Hong Kong 1.2%
a	Alibaba Pictures Group Ltd.		Entertainment		270,000		43,740
	Bosideng International Holdings Ltd.		Textiles, Apparel & Luxury Goods		54,000		23,007
	China Gas Holdings Ltd.		Gas Utilities		46,800		180,886
a	Fullshare Holdings Ltd.		Electrical Equipment		202,500		6,587
	Kingboard Laminates Holdings Ltd.		Chemicals		22,500		20,292
	Lee & Man Paper Manufacturing Ltd.		Paper & Forest Products		36,000		19,471
	Sino Biopharmaceutical Ltd.		Pharmaceuticals		144,000		182,953


							476,936

	Singapore 0.1%
	Yangzijiang Shipbuilding Holdings Ltd.		Machinery		47,700		33,113
	Yanlord Land Group Ltd.		Real Estate Management & Development		14,400		12,183


							45,296

	Total Investments (Cost $45,021,637) 99.8%						39,368,252
	Other Assets, less Liabilities 0.2%						82,120

	Net Assets 100.0%					$	39,450,372

See Abbreviations on page 322.

^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 September 30, 2019, the aggregate value of these securities was $656,149, representing 1.7% of net assets.

^dFair valued using significant unobservable inputs. See Note 6 regarding fair value measurements.

At September 30, 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 China Enterprise Index

Long

65,120

10/30/19

(2,831

)

*As of period end.

See Note 7 regarding other derivative information.



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

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin FTSE Europe ETF


	Six Months Ended September 30, 2019 (unaudited)			Year Ended March 31,
	Six Months Ended September 30, 2019 (unaudited)			2019			2018^a

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

Net asset value, beginning of period	$	23.24		$	24.98		$	25.05


Income from investment operations^b:

Net investment income^c		0.49			0.86			0.24

Net realized and unrealized gains (losses)		0.12			(1.79	)		(0.30	)


Total from investment operations		0.61			(0.93	)		(0.06	)


Less distributions from net investment income		(0.34	)		(0.81	)		(0.01	)


Net asset value, end of period	$	23.51		$	23.24		$	24.98


Total return^d		2.64%			(3.69)%			(0.26)%

Ratios to average net assets^e

Total expenses		0.09%			0.09%			0.09%

Net investment income		4.16%			3.61%			2.35%

Supplemental data

Net assets, end of period (000’s)		$65,825			$74,359			$104,911

Portfolio turnover rate^f		2.11%			5.81%			0.96%

Portfolio turnover rate excluding portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely or in part for cash^f,g		2.11%			—%			—%

^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.

^gEffective September 30, 2019.



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FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, September 30, 2019 (unaudited)

Franklin FTSE Europe ETF



		Industry		Shares		Value
	Common Stocks and Other Equity Interests 98.6%
	Australia 0.6%
	Rio Tinto PLC		Metals & Mining		8,092	$	419,712

	Austria 0.4%
	Andritz AG		Machinery		518		21,177
	Erste Group Bank AG		Banks		2,100		69,461
	OMV AG		Oil, Gas & Consumable Fuels		1,036		55,614
	Raiffeisen Bank International AG		Banks		952		22,096
	Telekom Austria AG		Diversified Telecommunication Services		1,008		7,330
	Verbund AG		Electric Utilities		476		26,051
	Vienna Insurance Group AG Wiener Versicherung Gruppe		Insurance		294		7,660
	Voestalpine AG		Metals & Mining		826		18,983

							228,372

	Belgium 1.7%
	Ackermans & van Haaren NV		Diversified Financial Services		168		25,532
	Ageas		Insurance		1,358		75,327
	Anheuser-Busch InBev SA/NV		Beverages		5,670		540,381
	Colruyt SA		Food & Staples Retailing		364		19,953
a	Galapagos NV		Biotechnology		350		53,343
	Groupe Bruxelles Lambert SA		Diversified Financial Services		546		52,441
	KBC Groep NV		Banks		2,016		131,035
	Proximus SADP		Diversified Telecommunication Services		1,022		30,362
	Sofina SA		Diversified Financial Services		112		24,909
	Solvay SA		Chemicals		504		52,199
	Telenet Group Holding NV		Media		350		16,522
	UCB SA		Pharmaceuticals		882		64,040
	Umicore SA		Chemicals		1,526		57,612

							1,143,656

	China 0.3%
a	Prosus NV		Internet & Direct Marketing Retail		3,010		221,009

	Denmark 2.7%
	A.P. Moeller-Maersk AS, A		Marine		28		29,886
	A.P. Moeller-Maersk AS, B		Marine		42		47,504
	Ambu AS, B		Health Care Equipment & Supplies		1,260		20,882
	Carlsberg AS, B		Beverages		784		115,908
	Chr. Hansen Holding AS		Chemicals		756		64,180
	Coloplast AS, B		Health Care Equipment & Supplies		980		118,054
	Danske Bank AS		Banks		4,928		68,632
	DSV AS		Road & Rail		1,498		142,570
a	Genmab AS		Biotechnology		434		88,117
	GN Store Nord AS		Health Care Equipment & Supplies		952		38,658
	H. Lundbeck AS		Pharmaceuticals		434		14,398
	ISS AS		Commercial Services & Supplies		1,386		34,303
a	Jyske Bank AS		Banks		476		15,381
	Novo Nordisk AS, B		Pharmaceuticals		12,138		624,132
	Novozymes AS		Chemicals		1,526		64,172
	Orsted AS		Electric Utilities		1,092		101,506
	Pandora AS		Household Durables		644		25,850
	Rockwool International AS, B		Building Products		42		8,402
a	The Drilling Co. of 1972 AS		Energy Equipment & Services		140		7,854
	Tryg AS		Insurance		882		25,281
	Vestas Wind Systems AS		Electrical Equipment		1,415		109,877
a	William Demant Holding AS		Health Care Equipment & Supplies		784		20,085

							1,785,632

	Finland 1.9%
	Elisa OYJ		Diversified Telecommunication Services		1,050		54,145



180	Semiannual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin FTSE Europe ETF(continued)



		Industry			Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Finland (continued)
b	Fortum OYJ, Reg S		Electric Utilities			3,164	$	74,817
	Huhtamaki OYJ		Containers & Packaging			686		27,357
	Kesko OYJ		Food & Staples Retailing			490		30,962
	Kone OYJ, B		Machinery			2,884		164,250
	Metso OYJ		Machinery			784		29,291
	Neste Oil OYJ		Oil, Gas & Consumable Fuels			3,024		100,123
	Nokia OYJ, A		Communications Equipment			41,370		209,722
	Nokian Renkaat OYJ		Auto Components			980		27,650
	Nordea Bank Abp		Banks			23,704		168,025
	Orion OYJ		Pharmaceuticals			742		27,682
	Sampo OYJ, A		Insurance			3,598		143,094
	Stora Enso OYJ, R		Paper & Forest Products			4,186		50,450
	UPM-Kymmene OYJ		Paper & Forest Products			3,906		115,486
	Wartsila OYJ ABP		Machinery			3,570		39,991

								1,263,045

	France 17.0%
	Accor SA		Hotels, Restaurants & Leisure			1,400		58,380
a	Adevinta ASA, A		Interactive Media & Services			588		6,821
a	Adevinta ASA, B		Interactive Media & Services			1,092		12,644
	Aeroports de Paris SA		Transportation Infrastructure			210		37,363
a	AirFrance-KLM		Airlines			1,400		14,655
	Air Liquide SA		Chemicals			3,108		442,517
	Airbus SE		Aerospace & Defense			4,060		527,604
c	ALD SA, 144A		Road & Rail			630		8,997
	Alstom SA		Machinery			1,372		56,884
	Amundi SA		Capital Markets			406		28,328
	ArcelorMittal		Metals & Mining			4,410		62,049
	Arkema SA		Chemicals			518		48,295
	Atos SE		IT Services			686		48,373
	AXA SA		Insurance			14,140		361,183
	Biomerieux		Health Care Equipment & Supplies			308		25,486
	BNP Paribas SA		Banks			7,924		385,893
	Bollore		Air Freight & Logistics			7,480		31,004
	Bouygues SA		Construction & Engineering			1,526		61,139
	Bureau Veritas SA		Professional Services			2,058		49,584
	Capgemini SE		IT Services			1,148		135,292
	Carrefour SA		Food & Staples Retailing			4,250		74,412
	Casino Guichard-Perrachon SA		Food & Staples Retailing			420		20,051
	Cie Generale des Etablissements Michelin SCA		Auto Components			1,302		145,351
	CNP Assurances		Insurance			1,176		22,731
	Compagnie de Saint-Gobain		Building Products			3,570		140,112
	Covivio		Equity Real Estate Investment Trusts (REITs	)		322		34,086
	Credit Agricole SA		Banks			8,400		102,017
	Danone SA		Food Products			4,382		386,098
	Dassault Aviation SA		Aerospace & Defense			14		19,811
	Dassault Systemes		Software			966		137,697
	Edenred		Commercial Services & Supplies			1,778		85,347
	EDF SA		Electric Utilities			3,696		41,382
	Eiffage SA		Construction & Engineering			532		55,168
	Elis SA		Commercial Services & Supplies			1,414		25,004
	Engie SA		Multi-Utilities			12,208		199,371
	EssilorLuxottica SA		Textiles, Apparel & Luxury Goods			2,156		310,850
	Eurazeo SE		Diversified Financial Services			328		24,405
	Eutelsat Communications SA		Media			1,358		25,279
	Faurecia SE		Auto Components			546		25,905
	Gecina SA		Equity Real Estate Investment Trusts (REITs	)		378		59,424
	Getlink SE		Transportation Infrastructure			3,318		49,846



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FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin FTSE Europe ETF(continued)



		Industry			Shares		Value
	Common Stocks and Other Equity Interests (continued)
	France (continued)
	Hermes International		Textiles, Apparel & Luxury Goods			224	$	154,826
	ICADE		Equity Real Estate Investment Trusts (REITs	)		238		21,289
	Iliad SA		Diversified Telecommunication Services			182		17,107
	Imerys SA		Construction Materials			280		11,258
	Ingenico Group SA		Electronic Equipment, Instruments & Components			446		43,518
	Ipsen SA		Pharmaceuticals			252		23,929
	JCDecaux SA		Media			532		14,407
	Kering SA		Textiles, Apparel & Luxury Goods			546		278,309
	Klepierre SA		Equity Real Estate Investment Trusts (REITs	)		1,400		47,559
	L’Oreal SA		Personal Products			1,764		494,048
	Lagardere SCA		Media			840		18,590
	Legrand SA		Electrical Equipment			1,960		139,917
	LVMH Moet Hennessy Louis Vuitton SE		Textiles, Apparel & Luxury Goods			1,834		729,091
	Natixis SA		Capital Markets			6,118		25,379
	Orange SA		Diversified Telecommunication Services			14,070		220,807
	Orpea		Health Care Providers & Services			336		41,063
	Pernod Ricard SA		Beverages			1,554		276,827
	Peugeot SA		Automobiles			3,990		99,526
	Plastic Omnium SA		Auto Components			392		10,752
	Publicis Groupe		Media			1,596		78,507
	Remy Cointreau SA		Beverages			182		24,167
	Renault SA		Automobiles			1,344		77,159
	Rexel SA		Trading Companies & Distributors			2,212		23,676
	Rubis SCA		Gas Utilities			677		39,339
	Safran SA		Aerospace & Defense			2,422		381,415
	Sanofi		Pharmaceuticals			7,966		738,706
	Sartorius Stedim Biotech		Life Sciences Tools & Services			182		25,477
	Schneider Electric SE		Electrical Equipment			3,850		337,880
	SCOR SE		Insurance			1,162		48,000
	SEB SA		Household Durables			196		29,766
	Societe BIC SA		Commercial Services & Supplies			168		11,282
	Societe Generale SA		Banks			5,656		155,018
	Sodexo SA		Hotels, Restaurants & Leisure			630		70,743
	Suez		Multi-Utilities			2,660		41,832
	Teleperformance		Professional Services			420		91,073
	Thales SA		Aerospace & Defense			728		83,732
	Total SA		Oil, Gas & Consumable Fuels			17,752		926,729
a	UbiSoft Entertainment SA		Entertainment			616		44,552
	Unibail-Rodamco-Westfield		Equity Real Estate Investment Trusts (REITs	)		14		2,041
	Unibail-Rodamco-Westfield		Equity Real Estate Investment Trusts (REITs	)		980		142,898
	Valeo SA		Auto Components			1,750		56,759
	Veolia Environnement SA		Multi-Utilities			3,682		93,368
	Vinci SA		Construction & Engineering			3,430		369,526
	Vivendi SA		Entertainment			5,978		164,103
	Wendel SA		Diversified Financial Services			210		28,984
a,b	Worldline SA, Reg S		IT Services			616		38,884

								11,180,656

	Germany 12.8%
	1&1 Drillisch AG		Wireless Telecommunication Services			350		10,913
	Adidas AG		Textiles, Apparel & Luxury Goods			1,442		449,061
	Allianz SE		Insurance			3,108		724,597
	Aroundtown SA		Real Estate Management & Development			6,566		53,715
	Axel Springer SE		Media			322		22,221
	BASF SE		Chemicals			6,706		468,774
	Bayer AG		Pharmaceuticals			6,846		482,814
	Bayerische Motoren Werke AG		Automobiles			2,380		167,590
	Beiersdorf AG		Personal Products			742		87,526



182	Semiannual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin FTSE Europe ETF(continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Germany (continued)
	Brenntag AG		Trading Companies & Distributors		1,134	$	54,891
	Carl Zeiss Meditec AG		Health Care Equipment & Supplies		280		31,930
	Commerzbank AG		Banks		7,644		44,351
	Continental AG		Auto Components		798		102,396
	Covestro AG		Chemicals		1,260		62,364
	Daimler AG		Automobiles		6,314		314,026
a	Delivery Hero SE		Internet & Direct Marketing Retail		812		36,082
	Deutsche Bank AG		Capital Markets		15,120		113,260
	Deutsche Boerse AG		Capital Markets		1,344		210,114
	Deutsche Lufthansa AG		Airlines		1,764		28,039
	Deutsche Post AG		Air Freight & Logistics		7,168		239,477
	Deutsche Telekom AG		Diversified Telecommunication Services		23,744		398,484
	Deutsche Wohnen AG		Real Estate Management & Development		2,660		97,119
c	DWS Group GmbH & Co. KGaA, 144A		Capital Markets		252		7,451
	E.ON SE		Multi-Utilities		15,946		155,051
	Evonik Industries AG		Chemicals		1,190		29,385
	Fielmann AG		Specialty Retail		168		12,372
	Fraport AG Frankfurt Airport Services Worldwide		Transportation Infrastructure		266		22,567
	Fresenius Medical Care AG & Co. KGaA		Health Care Providers & Services		1,526		102,647
	Fresenius SE and Co. KGaA		Health Care Providers & Services		2,996		140,105
	Fuchs Petrolub SE		Chemicals		266		9,671
	GEA Group AG		Machinery		1,232		33,269
	Grenkeleasing AG		Consumer Finance		196		16,154
	Hannover Rueck SE		Insurance		448		75,752
	Hapag-Lloyd AG		Marine		196		14,103
	HeidelbergCement AG		Construction Materials		1,092		78,954
	Hella GmbH & Co. KGaA		Auto Components		322		14,400
	Henkel AG & Co. KGaA		Household Products		742		67,950
	Hochtief AG		Construction & Engineering		140		15,965
	Hugo Boss AG		Textiles, Apparel & Luxury Goods		476		25,506
	Infineon Technologies AG		Semiconductors & Semiconductor Equipment		9,170		165,073
	K+S AG		Chemicals		1,400		19,407
	KION Group AG		Machinery		518		27,248
	Knorr-Bremse AG		Machinery		350		32,907
	Lanxess AG		Chemicals		616		37,607
	LEG Immobilien AG		Real Estate Management & Development		462		52,886
	Merck KGaA		Pharmaceuticals		952		107,264
	METRO AG		Food & Staples Retailing		1,246		19,669
	MTU Aero Engines AG		Aerospace & Defense		378		100,469
	Muenchener Rueckversicherungs-Gesellschaft Aktiengesellschaft in Muenchen		Insurance		1,050		271,754
	Nemetschek AG		Software		420		21,438
	Osram Licht AG		Electrical Equipment		644		28,329
	ProSiebenSat.1 Media SE		Media		1,484		20,450
	Puma SE		Textiles, Apparel & Luxury Goods		602		46,597
	Rational AG		Machinery		28		20,086
	Rheinmetall AG		Industrial Conglomerates		322		40,739
a,c	Rocket Internet SE, 144A		Internet & Direct Marketing Retail		490		12,660
	RWE AG		Multi-Utilities		4,186		130,929
	SAP SE		Software		7,112		836,448
b	Scout24 AG, Reg S		Interactive Media & Services		798		45,500
	Siemens AG		Industrial Conglomerates		5,572		596,829
	Siemens Healthineers AG		Health Care Equipment & Supplies		966		38,013
	Suedzucker AG		Food Products		574		8,830
	Symrise AG		Chemicals		910		88,454
a	Talanx AG		Insurance		294		12,705
	Telefonica Deutschland Holding AG		Diversified Telecommunication Services		4,914		13,704
	thyssenkrupp AG		Metals & Mining		3,416		47,315



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FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin FTSE Europe ETF(continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Germany (continued)
	TUI AG		Hotels, Restaurants & Leisure		3,192	$	37,203
	Uniper SE		Independent Power and Renewable Electricity Producers		1,442		47,303
	United Internet AG		Diversified Telecommunication Services		854		30,473
	Volkswagen AG		Automobiles		238		40,918
	Vonovia SE		Real Estate Management & Development		3,990		202,488
	Wacker Chemie AG		Chemicals		112		7,363
	Wirecard AG		IT Services		840		134,389
a,c	Zalando SE, 144A		Internet & Direct Marketing Retail		1,092		49,858

							8,414,351

	Ireland 0.8%
	AIB Group PLC		Banks		6,006		17,836
	Bank of Ireland Group PLC		Banks		6,804		27,000
	CRH PLC		Construction Materials		5,880		202,016
	Flutter Entertainment PLC		Hotels, Restaurants & Leisure		546		51,203
	Glanbia PLC		Food Products		1,428		18,106
	Kerry Group		Food Products		1,078		126,103
	Kingspan Group PLC		Building Products		1,092		53,334
	Smurfit Kappa Group PLC		Containers & Packaging		1,736		52,070

							547,668

	Italy 3.7%
	A2A SpA		Multi-Utilities		11,312		20,768
	Amplifon SpA		Health Care Providers & Services		896		21,978
	Assicurazioni Generali SpA		Insurance		9,422		182,634
	Atlantia SpA		Transportation Infrastructure		3,892		94,153
	Banca Mediolanum SpA		Diversified Financial Services		2,114		15,879
a	Banco BPM SpA		Banks		11,116		22,710
	Buzzi Unicem SpA		Construction Materials		518		11,882
	Buzzi Unicem SpA, di Risp		Construction Materials		308		4,459
	Davide Campari-Milano SpA		Beverages		4,158		37,579
	DiaSorin SpA		Health Care Equipment & Supplies		154		17,914
	Enel SpA		Electric Utilities		57,288		427,882
	Eni SpA		Oil, Gas & Consumable Fuels		18,396		281,456
	Ferrari NV		Automobiles		910		140,429
	FinecoBank Banca Fineco SpA		Banks		4,466		47,286
	Hera SpA		Multi-Utilities		6,160		25,291
b	Infrastrutture Wireless Italiane SpA, Reg S		Diversified Telecommunication Services		1,806		18,744
	Intesa Sanpaolo SpA		Banks		109,774		260,354
	Italgas Reti SpA		Gas Utilities		2,814		18,168
	Leonardo SpA		Aerospace & Defense		2,842		33,431
a	Mediaset SpA		Media		2,520		7,423
	Mediobanca Banca di Credito Finanziario SpA		Banks		5,264		57,503
	Moncler SpA		Textiles, Apparel & Luxury Goods		1,344		47,913
	Pirelli & C SpA		Auto Components		3,206		18,972
b	Poste Italiane SpA, Reg S		Insurance		3,388		38,524
	Prysmian SpA		Electrical Equipment		1,834		39,389
	Recordati SpA		Pharmaceuticals		686		29,436
a	Saipem SpA		Energy Equipment & Services		4,186		18,948
	Salvatore Ferragamo SpA		Textiles, Apparel & Luxury Goods		462		8,540
	Snam SpA		Gas Utilities		16,674		84,237
a	Telecom Italia SpA/Milano		Diversified Telecommunication Services		79,786		45,535
	Telecom Italia SpA/Milano, di Risp		Diversified Telecommunication Services		44,212		24,177
	Tenaris SA		Energy Equipment & Services		3,430		36,399
	Terna Rete Elettrica Nazionale SpA		Electric Utilities		10,346		66,480
	UniCredit SpA		Banks		16,352		192,888
	Unione di Banche Italiane SpA		Banks		7,196		20,209



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STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin FTSE Europe ETF(continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Italy (continued)
	UnipolSai Assicurazioni SpA		Insurance		4,326	$	11,508

							2,431,078

	Kazakhstan 0.0%^†
	KAZ Minerals PLC		Metals & Mining		1,722		9,195

	Luxembourg 0.2%
	Eurofins Scientific SE		Life Sciences Tools & Services		84		39,048
	RTL Group SA		Media		294		14,141
	SES SA, IDR		Media		2,576		46,970

							100,159

	Netherlands 4.5%
	Aalberts NV		Machinery		700		27,748
	ABN AMRO Bank NV, GDR,		Banks		3,038		53,572
a	Adyen NV		IT Services		70		46,124
	Aegon NV		Insurance		14,197		59,078
	Akzo Nobel NV		Chemicals		1,680		149,801
a	Argenx SE		Biotechnology		266		30,188
	ASML Holding NV		Semiconductors & Semiconductor Equipment		2,940		728,379
	ASR Nederland NV		Insurance		1,036		38,254
	Boskalis Westminster		Construction & Engineering		616		12,854
b	Euronext NV, Reg S		Capital Markets		462		37,801
	EXOR NV		Diversified Financial Services		756		50,671
	Grandvision NV		Specialty Retail		364		10,905
	Heineken Holding NV		Beverages		770		76,684
	Heineken NV		Beverages		1,736		187,669
	ING Groep NV		Banks		28,714		300,644
	Koninklijke Ahold Delhaize NV		Food & Staples Retailing		8,134		203,558
	Koninklijke DSM NV		Chemicals		1,303		156,826
	Koninklijke KPN NV		Diversified Telecommunication Services		24,164		75,369
	Koninklijke Philips NV		Health Care Equipment & Supplies		6,664		308,766
	Koninklijke Vopak NV		Oil, Gas & Consumable Fuels		490		25,193
	NN Group NV		Insurance		2,458		87,198
a	OCI NV		Chemicals		700		16,530
a	QIAGEN NV		Life Sciences Tools & Services		1,624		53,185
	Randstad NV		Professional Services		812		39,916
	Signify NV		Electrical Equipment		756		20,794
a,b	Takeaway.com NV, Reg S		Internet & Direct Marketing Retail		294		23,462
	Wolters Kluwer NV		Professional Services		2,016		147,211

							2,968,380

	Norway 1.1%
	Aker ASA		Diversified Financial Services		182		9,695
	Aker BP ASA		Oil, Gas & Consumable Fuels		812		21,752
	DNB ASA		Banks		7,672		135,312
	Equinor ASA		Oil, Gas & Consumable Fuels		7,280		138,654
	Gjensidige Forsikring ASA		Insurance		1,218		24,177
	Leroy Seafood Group ASA		Food Products		1,848		11,239
	Mowi ASA		Food Products		3,150		72,770
	Norsk Hydro ASA		Metals & Mining		9,772		34,416
	Orkla ASA		Food Products		5,684		51,773
	Salmar ASA		Food Products		378		16,600
	Schibsted ASA, A		Media		588		17,415
	Schibsted ASA, B		Media		700		19,646
	Telenor ASA		Diversified Telecommunication Services		4,760		95,635
	Yara International ASA		Chemicals		1,274		54,937

							704,021



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STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin FTSE Europe ETF(continued)



		Industry			Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Poland 0.5%
	Bank Pekao SA		Banks			1,148	$	29,322
	CD Projekt SA		Entertainment			448		27,199
	Cyfrowy Polsat SA		Media			1,862		12,270
a	Dino Polska SA		Food & Staples Retailing			350		13,706
	Grupa Lotos SA		Oil, Gas & Consumable Fuels			728		16,081
a	KGHM Polska Miedz SA		Metals & Mining			1,008		20,114
	LPP SA		Textiles, Apparel & Luxury Goods			7		15,016
a	mBank SA		Banks			112		9,711
a	PGE Polska Grupa Energetyczna SA		Electric Utilities			5,334		10,633
	Polski Koncern Naftowy Orlen SA		Oil, Gas & Consumable Fuels			2,296		56,525
	Polskie Gornictwo Naftowe i Gazownictwo SA		Oil, Gas & Consumable Fuels			12,390		14,537
	Powszechna Kasa Oszczednosci Bank Polski SA		Banks			6,244		61,238
	Powszechny Zaklad Ubezpieczen SA		Insurance			4,130		38,507
	Santander Bank Polska SA		Banks			196		15,331

								340,190

	Portugal 0.2%
	EDP-Energias de Portugal SA		Electric Utilities			16,604		64,478
	Galp Energia SGPS SA, B		Oil, Gas & Consumable Fuels			3,766		56,761
	Jeronimo Martins SGPS SA		Food & Staples Retailing			1,792		30,243

								151,482

	Russia 0.1%
	Evraz PLC		Metals & Mining			3,990		22,991
	Polymetal International PLC		Metals & Mining			2,254		31,665

								54,656

	South Africa 0.0%^†
	Investec PLC		Capital Markets			4,928		25,427

	Spain 4.6%
	Acciona SA		Electric Utilities			154		16,302
	ACS Actividades de Construccion y Servicios SA		Construction & Engineering			1,793		71,660
	Aena SME SA		Transportation Infrastructure			518		94,874
	Amadeus IT Group SA, A		IT Services			2,940		210,645
	Banco Bilbao Vizcaya Argentaria SA		Banks			48,818		254,425
	Banco de Sabadell SA		Banks			41,076		39,864
	Banco Santander SA		Banks			120,890		492,449
	Bankia SA		Banks			8,988		16,976
	Bankinter SA		Banks			5,026		31,747
	CaixaBank SA		Banks			26,390		69,337
	Cellnex Telecom SA		Diversified Telecommunication Services			1,526		63,052
	Corporacion Financiera Alba SA		Diversified Financial Services			168		8,187
	Corporacion Mapfre SA		Insurance			7,238		19,498
	EDP Renovaveis SA		Independent Power and Renewable Electricity Producers			1,120		12,076
	Enagas SA		Gas Utilities			1,666		38,614
	Endesa SA		Electric Utilities			2,324		61,162
	Ferrovial SA		Construction & Engineering			3,464		100,114
	Fomento de Construcciones y Contratas SA		Construction & Engineering			560		6,423
	Grifols SA		Biotechnology			2,422		71,398
	Iberdrola SA		Electric Utilities			43,414		451,338
	Industria de Diseno Textil SA		Specialty Retail			7,686		237,972
	Inmobiliaria Colonial SA		Equity Real Estate Investment Trusts (REITs	)		2,338		28,216
	Merlin Properties Socimi SA		Equity Real Estate Investment Trusts (REITs	)		2,450		34,215
	Naturgy Energy Group SA		Gas Utilities			2,268		60,182



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STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin FTSE Europe ETF(continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Spain (continued)
	Red Electrica Corp. SA		Electric Utilities		3,164	$	64,280
	Repsol SA		Oil, Gas & Consumable Fuels		9,846		153,927
	Siemens Gamesa Renewable Energy SA		Electrical Equipment		1,638		22,233
	Telefonica SA		Diversified Telecommunication Services		33,278		253,994
	Zardoya Otis SA		Machinery		1,302		8,843

							2,994,003

	Sweden 4.1%
	Alfa Laval AB		Machinery		2,296		45,373
	Assa Abloy AB, B		Building Products		6,804		151,621
	Atlas Copco AB		Machinery		2,772		75,219
	Atlas Copco AB, A		Machinery		4,634		142,901
	Boliden AB		Metals & Mining		2,002		46,068
	Castellum AB		Real Estate Management & Development		1,946		41,722
	Electrolux AB, B		Household Durables		1,806		42,872
	Elekta AB, B		Health Care Equipment & Supplies		2,646		34,904
	Epiroc AB, A		Machinery		4,606		49,985
	Epiroc AB, B		Machinery		2,772		28,672
	Ericsson, B		Communications Equipment		21,966		175,734
	Essity AB, B		Household Products		4,438		129,680
a	Fastighets AB Balder, B		Real Estate Management & Development		728		27,603
	Hennes & Mauritz AB, B		Specialty Retail		6,468		125,542
	Hexagon AB, B		Electronic Equipment, Instruments & Components		1,834		88,528
	Husqvarna AB, B		Household Durables		3,010		22,924
	ICA Gruppen AB		Food & Staples Retailing		574		26,551
	Industrivarden AB, A		Diversified Financial Services		1,526		34,362
	Industrivarden AB, C		Diversified Financial Services		1,246		27,310
	Investment AB Latour, B		Industrial Conglomerates		882		11,626
	Investor AB, A		Diversified Financial Services		1,008		48,533
	Investor AB, B		Diversified Financial Services		3,318		162,354
	Kinnevik AB, B		Diversified Financial Services		1,806		47,556
	L E Lundbergforetagen AB, B		Diversified Financial Services		560		21,096
	Lundin Petroleum AB		Oil, Gas & Consumable Fuels		1,260		37,843
	Nibe Industrier AB		Building Products		2,212		28,088
	Saab AB, B		Aerospace & Defense		672		19,315
	Sandvik AB		Machinery		7,868		122,716
	Securitas AB, B		Commercial Services & Supplies		2,352		36,074
	Skandinaviska Enskilda Banken AB, A		Banks		10,472		96,368
	Skandinaviska Enskilda Banken AB, C		Banks		154		1,435
	Skanska AB, B		Construction & Engineering		2,604		52,810
	SKF AB, B		Machinery		2,786		46,102
	Svenska Cellulosa AB, A		Paper & Forest Products		210		1,959
	Svenska Cellulosa AB, B		Paper & Forest Products		4,340		38,747
	Svenska Handelsbanken AB, A		Banks		10,752		100,804
	Svenska Handelsbanken AB, B		Banks		266		2,516
	Swedbank AB, A		Banks		7,336		105,726
	Swedish Match AB		Tobacco		1,232		51,011
a	Swedish Orphan Biovitrum AB		Biotechnology		1,330		20,406
	Tele2 AB, B		Wireless Telecommunication Services		3,948		58,826
	Telefonaktiebolaget LM Ericsson, A		Communications Equipment		266		2,132
	Telia Co. AB		Diversified Telecommunication Services		19,586		87,789
	Trelleborg AB, B		Machinery		1,778		24,973
	Volvo AB, B		Machinery		10,990		154,531

							2,698,907

	Switzerland 15.1%
	ABB Ltd.		Electrical Equipment		13,090		257,429
	Adecco Group AG		Professional Services		1,120		62,023



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Franklin FTSE Europe ETF(continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Switzerland (continued)
a	Alcon Inc.		Health Care Equipment & Supplies		3,374	$	196,928
	Baloise Holding AG		Insurance		336		60,249
	Banque Cantonale Vaudoise		Banks		28		21,453
	Barry Callebaut AG		Food Products		14		28,894
	Chocoladefabriken Lindt & Spruengli AG		Food Products		14		103,475
	Clariant AG		Chemicals		1,498		29,189
	Coca-Cola HBC AG		Beverages		1,428		46,756
	Compagnie Financiere Richemont SA		Textiles, Apparel & Luxury Goods		3,752		275,507
	Credit Suisse Group AG		Capital Markets		18,480		226,749
	DKSH Holding AG		Professional Services		266		13,290
	Dufry AG		Specialty Retail		210		17,581
	EMS-Chemie Holding AG		Chemicals		56		34,903
	Flughafen Zurich AG		Transportation Infrastructure		140		25,946
	Geberit AG		Building Products		266		127,138
	Georg Fischer AG		Machinery		28		24,275
	Givaudan AG		Chemicals		70		195,437
	Glencore PLC		Metals & Mining		81,284		245,157
	Helvetia Holding AG		Insurance		238		32,866
	Julius Baer Group Ltd.		Capital Markets		1,582		70,156
	Kuehne + Nagel International AG		Marine		378		55,725
	LafargeHolcim Ltd., B		Construction Materials		3,738		184,135
	Logitech International SA		Technology Hardware, Storage & Peripherals		1,078		43,762
	Lonza Group AG		Life Sciences Tools & Services		546		184,747
	Nestle SA		Food Products		21,294		2,312,304
	Novartis AG		Pharmaceuticals		15,862		1,376,621
	OC Oerlikon Corp. AG		Machinery		1,470		14,757
	Pargesa Holding SA, B		Diversified Financial Services		280		21,551
	Partners Group Holding AG		Capital Markets		126		96,767
	PSP Swiss Property AG		Real Estate Management & Development		294		37,356
	Roche Holding AG		Pharmaceuticals		210		60,821
	Roche Holding AG		Pharmaceuticals		5,110		1,488,442
	Schindler Holding AG		Machinery		140		31,253
	Schindler Holding AG, PC		Machinery		294		65,808
	SGS SA		Professional Services		42		104,205
	Sika AG		Chemicals		1,022		149,639
	Sonova Holding AG		Health Care Equipment & Supplies		406		94,461
	STMicroelectronics NV		Semiconductors & Semiconductor Equipment		4,662		90,113
	Straumann Holding AG		Health Care Equipment & Supplies		70		57,269
	Sulzer AG		Machinery		126		12,402
	Swatch Group AG		Textiles, Apparel & Luxury Goods		210		55,788
	Swatch Group AG		Textiles, Apparel & Luxury Goods		336		16,899
	Swiss Life Holding AG		Insurance		252		120,573
	Swiss Prime Site AG		Real Estate Management & Development		560		54,840
	Swiss Re AG		Insurance		2,044		213,389
	Swisscom AG		Diversified Telecommunication Services		182		89,855
	Temenos AG		Software		434		72,685
	UBS Group AG		Capital Markets		25,200		286,332
	Vifor Pharma AG		Pharmaceuticals		322		51,490
	Zurich Insurance Group AG		Insurance		1,078		412,973

							9,952,363

	United Arab Emirates 0.0%^†
	NMC Health PLC		Health Care Providers & Services		644		21,507

	United Kingdom 26.2%
	3i Group PLC		Capital Markets		6,972		100,221
	Admiral Group PLC		Insurance		1,554		40,560
	Anglo American PLC		Metals & Mining		9,226		212,740



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STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin FTSE Europe ETF(continued)



		Industry			Shares		Value
	Common Stocks and Other Equity Interests (continued)
	United Kingdom (continued)
	Antofagasta PLC		Metals & Mining			2,534	$	28,073
	Ashmore Group PLC		Capital Markets			2,814		17,547
	Ashtead Group PLC		Trading Companies & Distributors			3,416		95,304
	Associated British Foods PLC		Food Products			2,548		72,312
	AstraZeneca PLC		Pharmaceuticals			9,646		863,098
	Auto Trader Group PLC		Interactive Media & Services			6,678		41,969
	Aveva Group PLC		Software			448		20,427
	Aviva PLC		Insurance			28,784		141,634
	B&M European Value Retail SA		Multiline Retail			6,146		28,735
	Babcock International Group PLC		Commercial Services & Supplies			1,848		12,707
	BAE Systems PLC		Aerospace & Defense			23,506		165,109
	Barclays PLC		Banks			127,190		235,731
	Barratt Developments PLC		Household Durables			7,336		58,580
	Bellway PLC		Household Durables			924		38,099
	BHP Group PLC		Metals & Mining			15,246		325,477
	BP PLC		Oil, Gas & Consumable Fuels			146,762		932,849
	British American Tobacco PLC		Tobacco			16,772		621,594
	British Land Co. PLC		Equity Real Estate Investment Trusts (REITs	)		7,070		50,950
	BT Group PLC		Diversified Telecommunication Services			64,540		142,029
	Bunzl PLC		Trading Companies & Distributors			2,464		64,523
	Burberry Group PLC		Textiles, Apparel & Luxury Goods			3,024		81,014
	Centrica PLC		Multi-Utilities			42,560		38,674
	Cineworld Group PLC		Entertainment			7,644		21,477
	CNH Industrial NV		Machinery			7,294		74,271
a	Cobham PLC		Aerospace & Defense			17,528		33,879
	Compass Group PLC		Hotels, Restaurants & Leisure			11,662		300,787
	ConvaTec Group PLC		Health Care Equipment & Supplies			10,752		23,213
	Croda International PLC		Chemicals			910		54,500
	CYBG PLC		Banks			8,820		12,488
	DCC PLC		Industrial Conglomerates			742		64,883
	Derwent London PLC		Equity Real Estate Investment Trusts (REITs	)		728		30,233
	Diageo PLC		Beverages			17,178		705,544
	Direct Line Insurance Group PLC		Insurance			10,080		37,290
	DS Smith PLC		Containers & Packaging			9,212		40,912
	easyJet PLC		Airlines			1,442		20,435
	Experian PLC		Professional Services			6,720		215,225
	Ferguson PLC		Trading Companies & Distributors			1,680		123,056
	Fiat Chrysler Automobiles NV		Automobiles			8,134		105,277
	Fresnillo PLC		Metals & Mining			1,358		11,440
	G4S PLC		Commercial Services & Supplies			11,340		26,439
	GlaxoSmithKline PLC		Pharmaceuticals			36,022		774,426
	GVC Holdings PLC		Hotels, Restaurants & Leisure			4,270		39,117
	Halma PLC		Electronic Equipment, Instruments & Components			2,772		67,328
	Hargreaves Lansdown PLC		Capital Markets			1,988		50,932
	Hikma Pharmaceuticals PLC		Pharmaceuticals			1,022		27,707
	Hiscox Ltd.		Insurance			2,072		42,385
	Howden Joinery Group PLC		Trading Companies & Distributors			4,410		30,455
	HSBC Holdings PLC		Banks			149,156		1,148,045
	IMI PLC		Machinery			1,960		23,192
	Imperial Brands PLC		Tobacco			7,042		158,648
	Inchcape PLC		Distributors			3,052		23,751
	Informa PLC		Media			9,296		97,600
	InterContinental Hotels Group PLC		Hotels, Restaurants & Leisure			1,344		84,053
	International Consolidated Airlines Group SA		Airlines			4,816		28,190
	Intertek Group PLC		Professional Services			1,204		81,276
	ITV PLC		Media			27,300		42,355
	J Sainsbury PLC		Food & Staples Retailing			11,802		31,967
	JD Sports Fashion PLC		Specialty Retail			2,702		25,019



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STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin FTSE Europe ETF(continued)



		Industry			Shares		Value
	Common Stocks and Other Equity Interests (continued)
	United Kingdom (continued)
	John Wood Group PLC		Energy Equipment & Services			4,900	$	22,939
	Johnson Matthey PLC		Chemicals			1,386		52,213
a	Just Eat PLC		Internet & Direct Marketing Retail			4,200		34,584
	Kingfisher PLC		Specialty Retail			15,484		39,459
	Land Securities Group PLC		Equity Real Estate Investment Trusts (REITs	)		5,222		55,110
	Legal & General Group PLC		Insurance			43,904		134,392
	Lloyds Banking Group PLC		Banks			521,458		347,771
	London Stock Exchange Group PLC		Capital Markets			2,296		206,770
	Marks & Spencer Group PLC		Multiline Retail			14,198		32,272
	Meggitt PLC		Aerospace & Defense			5,670		44,368
	Melrose Industries PLC		Electrical Equipment			35,532		88,273
	Merlin Entertainments PLC		Hotels, Restaurants & Leisure			5,138		28,644
	Micro Focus International PLC		Software			2,506		35,106
	Mondi PLC		Paper & Forest Products			3,570		68,541
	National Grid PLC		Multi-Utilities			25,704		279,342
	Next PLC		Multiline Retail			924		70,437
a	Ocado Group PLC		Internet & Direct Marketing Retail			3,360		54,758
	Pearson PLC		Media			5,726		52,074
	Pennon Group PLC		Water Utilities			3,052		31,103
	Persimmon PLC		Household Durables			2,338		62,520
	Phoenix Group Holdings PLC		Insurance			3,892		33,156
	Prudential PLC		Insurance			19,180		348,624
	Quilter PLC		Capital Markets			13,328		22,394
	Reckitt Benckiser Group PLC		Household Products			4,606		360,084
	RELX PLC		Professional Services			13,832		329,398
	Renishaw PLC		Electronic Equipment, Instruments & Components			252		11,378
	Rentokil Initial PLC		Commercial Services & Supplies			13,482		77,720
	Rightmove PLC		Interactive Media & Services			6,468		43,886
	Rolls-Royce Holdings PLC		Aerospace & Defense			12,516		122,215
	Royal Bank of Scotland Group PLC		Banks			33,488		85,671
	Royal Dutch Shell PLC, A		Oil, Gas & Consumable Fuels			31,598		928,287
	Royal Dutch Shell PLC, B		Oil, Gas & Consumable Fuels			27,594		814,738
	RSA Insurance Group PLC		Insurance			7,462		49,122
	Schroders PLC		Capital Markets			826		31,300
	Segro PLC		Equity Real Estate Investment Trusts (REITs	)		8,050		80,431
	Severn Trent PLC		Water Utilities			1,736		46,315
	Smith & Nephew PLC		Health Care Equipment & Supplies			6,412		154,790
	Smiths Group PLC		Industrial Conglomerates			2,898		56,068
	Spirax-Sarco Engineering PLC		Machinery			532		51,431
	SSE PLC		Electric Utilities			7,546		115,818
	St. James’s Place Capital PLC		Capital Markets			3,822		46,128
	Standard Chartered PLC		Banks			19,516		164,547
	Standard Life Aberdeen PLC		Capital Markets			17,710		62,373
	Subsea 7 SA		Energy Equipment & Services			1,736		17,956
	Tate & Lyle PLC		Food Products			3,402		30,855
	Taylor Wimpey PLC		Household Durables			23,800		47,366
	TechnipFMC PLC		Energy Equipment & Services			3,346		80,288
	Tesco PLC		Food & Staples Retailing			71,036		210,966
	The Berkeley Group Holdings PLC		Household Durables			854		43,979
	The Sage Group PLC		Software			7,924		67,513
	Travis Perkins PLC		Trading Companies & Distributors			1,848		29,400
	Unilever NV, IDR		Personal Products			10,654		640,567
	Unilever PLC		Personal Products			8,022		483,401
	United Utilities Group PLC		Water Utilities			4,998		50,861
	Vodafone Group PLC		Wireless Telecommunication Services			198,212		395,696
	Weir Group PLC		Machinery			1,918		33,692
	Whitbread PLC		Hotels, Restaurants & Leisure			994		52,597
	William Morrison Supermarkets PLC		Food & Staples Retailing			16,436		40,569



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FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin FTSE Europe ETF(continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	United Kingdom (continued)
	WPP PLC		Media		9,002	$	112,928


							17,222,935

	United States 0.1%
	Carnival PLC		Hotels, Restaurants & Leisure		1,148		47,675

	Total Common Stocks and Other Equity Interests (Cost $72,563,639)						64,926,079

	Preferred Stocks 0.8%
	Germany 0.8%
d	Bayerische Motoren Werke AG, 6.909%, pfd.		Automobiles		420		23,329
d	Fuchs Petrolub SE, 2.757%, pfd.		Chemicals		518		19,460
d	Henkel AG & Co. KGaA, 2.037%, pfd.		Household Products		1,288		127,499
d	Porsche Automobil Holding SE, 3.702%, pfd.		Automobiles		1,106		71,984
d	Sartorius AG, 0.370%, pfd.		Health Care Equipment & Supplies		252		45,990
d	Volkswagen AG, 3.114%, pfd.		Automobiles		1,344		228,664

	Total Preferred Stocks (Cost $640,032)						516,926

	Total Investments (Cost $73,203,671) 99.4%						65,443,005
	Other Assets, less Liabilities 0.6%						381,807

	Net Assets 100.0%					$	65,824,812

See Abbreviations on page 322.

^†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 September 30, 2019, the aggregate value of these securities was $78,966, representing 0.1% of net assets.

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

At September 30, 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

193,783

12/20/19

8,039

FTSE 100 Index

Long

90,987

12/20/19

3,887

Total Futures Contracts

11,926

*As of period end.

See Note 7 regarding other derivative information.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Semiannual Report	191

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin FTSE Europe Hedged ETF


	Six Months Ended September 30, 2019 (unaudited)			Year Ended March 31,
	Six Months Ended September 30, 2019 (unaudited)			2019			2018^a

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

Net asset value, beginning of period	$	22.81		$	23.88		$	25.05


Income from investment operations^b:

Net investment income^c		0.52			0.79			0.25

Net realized and unrealized gains (losses)		1.24			0.62			(1.40	)


Total from investment operations		1.76			1.41			(1.15	)


Less distributions from:

Net investment income		(0.31	)		(0.38	)		(0.02	)

Net realized gains		—			(2.10	)		—	^d


Total distributions		(0.31	)		(2.48	)		(0.02	)


Net asset value, end of period	$	24.26		$	22.81		$	23.88


Total return^e		7.76%			6.98%			(4.61)%

Ratios to average net assets^f

Total expenses		0.09%			0.09%			0.09%

Net investment income		4.40%			3.28%			2.47%

Supplemental data

Net assets, end of period (000’s)		$4,853			$4,563			$33,428

Portfolio turnover rate^g		4.11%			26.81%			5.33%

Portfolio turnover rate excluding portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely or in part for cash^g,h		4.11%			—%			—%

^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.

^hEffective September 30, 2019.



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

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, September 30, 2019 (unaudited)

Franklin FTSE Europe Hedged ETF



		Industry		Shares		Value
	Common Stocks and Other Equity Interests 97.3%
	Australia 0.6%
	Rio Tinto PLC		Metals & Mining		588	$	30,498

	Austria 0.4%
	Andritz AG		Machinery		37		1,513
	Erste Group Bank AG		Banks		156		5,160
	OMV AG		Oil, Gas & Consumable Fuels		76		4,080
	Raiffeisen Bank International AG		Banks		65		1,509
	Telekom Austria AG		Diversified Telecommunication Services		53		385
	Verbund AG		Electric Utilities		35		1,915
	Vienna Insurance Group AG Wiener Versicherung Gruppe		Insurance		22		573
	Voestalpine AG		Metals & Mining		66		1,517


							16,652

	Belgium 1.7%
	Ackermans & van Haaren NV		Diversified Financial Services		14		2,128
	Ageas		Insurance		102		5,658
	Anheuser-Busch InBev SA/NV		Beverages		413		39,361
	Colruyt SA		Food & Staples Retailing		25		1,370
a	Galapagos NV		Biotechnology		25		3,810
	Groupe Bruxelles Lambert SA		Diversified Financial Services		41		3,938
	KBC Groep NV		Banks		145		9,425
	Proximus SADP		Diversified Telecommunication Services		76		2,258
	Sofina SA		Diversified Financial Services		9		2,002
	Solvay SA		Chemicals		36		3,728
	Telenet Group Holding NV		Media		23		1,086
	UCB SA		Pharmaceuticals		63		4,574
	Umicore SA		Chemicals		108		4,077


							83,415

	China 0.3%
a	Prosus NV		Internet & Direct Marketing Retail		220		16,153

	Denmark 2.7%
	A.P. Moeller-Maersk AS, A		Marine		2		2,135
	A.P. Moeller-Maersk AS, B		Marine		3		3,393
	Ambu AS, B		Health Care Equipment & Supplies		86		1,425
	Carlsberg AS, B		Beverages		56		8,279
	Chr. Hansen Holding AS		Chemicals		53		4,499
	Coloplast AS, B		Health Care Equipment & Supplies		70		8,432
	Danske Bank AS		Banks		360		5,014
	DSV AS		Road & Rail		110		10,469
a	Genmab AS		Biotechnology		31		6,294
	GN Store Nord AS		Health Care Equipment & Supplies		70		2,843
	H. Lundbeck AS		Pharmaceuticals		37		1,228
	ISS AS		Commercial Services & Supplies		104		2,574
a	Jyske Bank AS		Banks		36		1,163
	Novo Nordisk AS, B		Pharmaceuticals		884		45,455
	Novozymes AS		Chemicals		109		4,584
	Orsted AS		Electric Utilities		79		7,343
	Pandora AS		Household Durables		50		2,007
	Rockwool International AS, B		Building Products		4		800
a	The Drilling Co. of 1972 AS		Energy Equipment & Services		17		954
	Tryg AS		Insurance		59		1,691
	Vestas Wind Systems AS		Electrical Equipment		106		8,231
a	William Demant Holding AS		Health Care Equipment & Supplies		59		1,512


							130,325

	Finland 1.9%
	Elisa OYJ		Diversified Telecommunication Services		74		3,816



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FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin FTSE Europe Hedged ETF(continued)



		Industry			Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Finland (continued)
b	Fortum OYJ, Reg S		Electric Utilities			228	$	5,392
	Huhtamaki OYJ		Containers & Packaging			48		1,914
	Kesko OYJ		Food & Staples Retailing			38		2,401
	Kone OYJ, B		Machinery			211		12,017
	Metso OYJ		Machinery			56		2,092
	Neste Oil OYJ		Oil, Gas & Consumable Fuels			221		7,317
	Nokia OYJ, A		Communications Equipment			2,991		15,163
	Nokian Renkaat OYJ		Auto Components			74		2,088
	Nordea Bank Abp		Banks			1,706		12,093
	Orion OYJ		Pharmaceuticals			53		1,977
	Sampo OYJ, A		Insurance			260		10,340
	Stora Enso OYJ, R		Paper & Forest Products			317		3,821
	UPM-Kymmene OYJ		Paper & Forest Products			283		8,367
	Wartsila OYJ ABP		Machinery			263		2,946


								91,744

	France 16.8%
	Accor SA		Hotels, Restaurants & Leisure			100		4,170
a	Adevinta ASA, A		Interactive Media & Services			38		441
a	Adevinta ASA, B		Interactive Media & Services			74		857
	Aeroports de Paris SA		Transportation Infrastructure			14		2,491
a	AirFrance-KLM		Airlines			109		1,141
	Air Liquide SA		Chemicals			224		31,893
	Airbus SE		Aerospace & Defense			295		38,336
c	ALD SA, 144A		Road & Rail			46		657
	Alstom SA		Machinery			100		4,146
	Amundi SA		Capital Markets			32		2,233
	ArcelorMittal		Metals & Mining			322		4,531
	Arkema SA		Chemicals			40		3,729
	Atos SE		IT Services			53		3,737
	AXA SA		Insurance			1,033		26,386
	Biomerieux		Health Care Equipment & Supplies			23		1,903
	BNP Paribas SA		Banks			581		28,294
	Bollore		Air Freight & Logistics			519		2,151
	Bouygues SA		Construction & Engineering			109		4,367
	Bureau Veritas SA		Professional Services			141		3,397
	Capgemini SE		IT Services			82		9,664
	Carrefour SA		Food & Staples Retailing			307		5,375
	Casino Guichard-Perrachon SA		Food & Staples Retailing			30		1,432
	Cie Generale des Etablissements Michelin SCA		Auto Components			95		10,605
	CNP Assurances		Insurance			85		1,643
	Compagnie de Saint-Gobain		Building Products			264		10,361
	Covivio		Equity Real Estate Investment Trusts (REITs	)		27		2,858
	Credit Agricole SA		Banks			606		7,360
	Danone SA		Food Products			319		28,107
	Dassault Aviation SA		Aerospace & Defense			1		1,415
	Dassault Systemes		Software			71		10,121
	Edenred		Commercial Services & Supplies			132		6,336
	EDF SA		Electric Utilities			264		2,956
	Eiffage SA		Construction & Engineering			38		3,941
	Elis SA		Commercial Services & Supplies			107		1,892
	Engie SA		Multi-Utilities			888		14,502
	EssilorLuxottica SA		Textiles, Apparel & Luxury Goods			156		22,492
	Eurazeo SE		Diversified Financial Services			26		1,935
	Eutelsat Communications SA		Media			100		1,862
	Faurecia SE		Auto Components			40		1,898
	Gecina SA		Equity Real Estate Investment Trusts (REITs	)		28		4,402
	Getlink SE		Transportation Infrastructure			248		3,726



194	Semiannual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin FTSE Europe Hedged ETF(continued)



		Industry			Shares		Value
	Common Stocks and Other Equity Interests (continued)
	France (continued)
	Hermes International		Textiles, Apparel & Luxury Goods			17	$	11,750
	ICADE		Equity Real Estate Investment Trusts (REITs	)		18		1,610
	Iliad SA		Diversified Telecommunication Services			14		1,316
	Imerys SA		Construction Materials			19		764
	Ingenico Group SA		Electronic Equipment, Instruments & Components			33		3,220
	Ipsen SA		Pharmaceuticals			20		1,899
	JCDecaux SA		Media			40		1,083
	Kering SA		Textiles, Apparel & Luxury Goods			40		20,389
	Klepierre SA		Equity Real Estate Investment Trusts (REITs	)		102		3,465
	L’Oreal SA		Personal Products			129		36,129
	Lagardere SCA		Media			61		1,350
	Legrand SA		Electrical Equipment			142		10,137
	LVMH Moet Hennessy Louis Vuitton SE		Textiles, Apparel & Luxury Goods			133		52,873
	Natixis SA		Capital Markets			452		1,875
	Orange SA		Diversified Telecommunication Services			1,014		15,913
	Orpea		Health Care Providers & Services			24		2,933
	Pernod Ricard SA		Beverages			112		19,952
	Peugeot SA		Automobiles			289		7,209
	Plastic Omnium SA		Auto Components			29		795
	Publicis Groupe		Media			115		5,657
	Remy Cointreau SA		Beverages			13		1,726
	Renault SA		Automobiles			98		5,626
	Rexel SA		Trading Companies & Distributors			163		1,745
	Rubis SCA		Gas Utilities			49		2,847
	Safran SA		Aerospace & Defense			177		27,874
	Sanofi		Pharmaceuticals			580		53,785
	Sartorius Stedim Biotech		Life Sciences Tools & Services			12		1,680
	Schneider Electric SE		Electrical Equipment			279		24,485
	SCOR SE		Insurance			83		3,429
	SEB SA		Household Durables			15		2,278
	Societe BIC SA		Commercial Services & Supplies			13		873
	Societe Generale SA		Banks			415		11,374
	Sodexo SA		Hotels, Restaurants & Leisure			45		5,053
	Suez		Multi-Utilities			196		3,082
	Teleperformance		Professional Services			30		6,505
	Thales SA		Aerospace & Defense			54		6,211
	Total SA		Oil, Gas & Consumable Fuels			1,290		67,343
a	UbiSoft Entertainment SA		Entertainment			46		3,327
	Unibail-Rodamco-Westfield		Equity Real Estate Investment Trusts (REITs	)		71		10,353
	Valeo SA		Auto Components			125		4,054
	Veolia Environnement SA		Multi-Utilities			267		6,771
	Vinci SA		Construction & Engineering			247		26,610
	Vivendi SA		Entertainment			436		11,969
	Wendel SA		Diversified Financial Services			15		2,070
a,b	Worldline SA, Reg S		IT Services			47		2,967


								814,099

	Germany 12.6%
	1&1 Drillisch AG		Wireless Telecommunication Services			23		717
	Adidas AG		Textiles, Apparel & Luxury Goods			104		32,387
	Allianz SE		Insurance			226		52,689
	Aroundtown SA		Real Estate Management & Development			471		3,853
	Axel Springer SE		Media			24		1,656
	BASF SE		Chemicals			488		34,113
	Bayer AG		Pharmaceuticals			499		35,192
	Bayerische Motoren Werke AG		Automobiles			171		12,041
	Beiersdorf AG		Personal Products			53		6,252
	Brenntag AG		Trading Companies & Distributors			80		3,872



franklintempleton.com	Semiannual Report	195

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin FTSE Europe Hedged ETF(continued)



		Industry			Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Germany (continued)
	Carl Zeiss Meditec AG		Health Care Equipment & Supplies			20	$	2,281
	Commerzbank AG		Banks			542		3,145
	Continental AG		Auto Components			57		7,314
	Covestro AG		Chemicals			88		4,356
	Daimler AG		Automobiles			457		22,729
a	Delivery Hero SE		Internet & Direct Marketing Retail			60		2,666
	Deutsche Bank AG		Capital Markets			1,091		8,172
	Deutsche Boerse AG		Capital Markets			98		15,321
	Deutsche Lufthansa AG		Airlines			126		2,003
	Deutsche Post AG		Air Freight & Logistics			525		17,540
	Deutsche Telekom AG		Diversified Telecommunication Services			1,729		29,017
	Deutsche Wohnen AG		Real Estate Management & Development			189		6,901
c	DWS Group GmbH & Co. KGaA, 144A		Capital Markets			21		621
	E.ON SE		Multi-Utilities			1,148		11,163
	Evonik Industries AG		Chemicals			91		2,247
	Fielmann AG		Specialty Retail			14		1,031
	Fraport AG Frankfurt Airport Services Worldwide		Transportation Infrastructure			19		1,612
	Fresenius Medical Care AG & Co. KGaA		Health Care Providers & Services			112		7,534
	Fresenius SE and Co. KGaA		Health Care Providers & Services	��		216		10,101
	Fuchs Petrolub SE		Chemicals			17		618
	GEA Group AG		Machinery			92		2,484
	Grenkeleasing AG		Consumer Finance			14		1,154
	Hannover Rueck SE		Insurance			33		5,580
	Hapag-Lloyd AG		Marine			17		1,223
	HeidelbergCement AG		Construction Materials			78		5,640
	Hella GmbH & Co. KGaA		Auto Components			24		1,073
	Henkel AG & Co. KGaA		Household Products			54		4,945
	Hochtief AG		Construction & Engineering			11		1,254
	Hugo Boss AG		Textiles, Apparel & Luxury Goods			36		1,929
	Infineon Technologies AG		Semiconductors & Semiconductor Equipment			670		12,061
	K+S AG		Chemicals			98		1,358
	KION Group AG		Machinery			41		2,157
	Knorr-Bremse AG		Machinery			25		2,350
	Lanxess AG		Chemicals			45		2,747
	LEG Immobilien AG		Real Estate Management & Development			34		3,892
	Merck KGaA		Pharmaceuticals			70		7,887
	METRO AG		Food & Staples Retailing			86		1,358
	MTU Aero Engines AG		Aerospace & Defense			27		7,176
	Muenchener Rueckversicherungs-Gesellschaft Aktiengesellschaft in Muenchen		Insurance			77		19,929
	Nemetschek AG		Software			28		1,429
	Osram Licht AG		Electrical Equipment			46		2,024
	ProSiebenSat.1 Media SE		Media			130		1,791
	Puma SE		Textiles, Apparel & Luxury Goods			44		3,406
	Rational AG		Machinery			2		1,435
	Rheinmetall AG		Industrial Conglomerates			22		2,783
a,c	Rocket Internet SE, 144A		Internet & Direct Marketing Retail			33		853
	RWE AG		Multi-Utilities			311		9,727
	SAP SE		Software			518		60,922
b	Scout24 AG, Reg S		Interactive Media & Services			56		3,193
	Siemens AG		Industrial Conglomerates			404		43,273
	Siemens Healthineers AG		Health Care Equipment & Supplies			74		2,912
	Suedzucker AG		Food Products			42		646
	Symrise AG		Chemicals			68		6,610
a	Talanx AG		Insurance			17		735
	Telefonica Deutschland Holding AG		Diversified Telecommunication Services			351		979
	thyssenkrupp AG		Metals & Mining			244		3,380
	TUI AG		Hotels, Restaurants & Leisure			243		2,832



196	Semiannual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

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		106		$	3,477
	United Internet AG		Diversified Telecommunication Services		59			2,105
	Volkswagen AG		Automobiles		18			3,095
	Vonovia SE		Real Estate Management & Development		291			14,768
	Wacker Chemie AG		Chemicals		8			526
	Wirecard AG		IT Services		61			9,759
a,c	Zalando SE, 144A		Internet & Direct Marketing Retail		77			3,516


								611,517

	Ireland 0.8%
	AIB Group PLC		Banks		402			1,194
	Bank of Ireland Group PLC		Banks		517			2,052
	CRH PLC		Construction Materials		423			14,533
	Flutter Entertainment PLC		Hotels, Restaurants & Leisure		40			3,751
	Glanbia PLC		Food Products		99			1,255
	Kerry Group		Food Products		78			9,124
	Kingspan Group PLC		Building Products		79			3,859
	Smurfit Kappa Group PLC		Containers & Packaging		124			3,719


								39,487

	Italy 3.7%
	A2A SpA		Multi-Utilities		819			1,504
	Amplifon SpA		Health Care Providers & Services		63			1,545
	Assicurazioni Generali SpA		Insurance		686			13,297
	Atlantia SpA		Transportation Infrastructure		282			6,822
	Banca Mediolanum SpA		Diversified Financial Services		130			976
a	Banco BPM SpA		Banks		888			1,814
	Buzzi Unicem SpA		Construction Materials		43			986
	Buzzi Unicem SpA, di Risp		Construction Materials		23			333
	Davide Campari-Milano SpA		Beverages		297			2,684
	DiaSorin SpA		Health Care Equipment & Supplies		12			1,396
	Enel SpA		Electric Utilities		4,147			30,974
	Eni SpA		Oil, Gas & Consumable Fuels		1,343			20,548
	Ferrari NV		Automobiles		67			10,339
	FinecoBank Banca Fineco SpA		Banks		322			3,409
	Hera SpA		Multi-Utilities		463			1,901
b	Infrastrutture Wireless Italiane SpA, Reg S		Diversified Telecommunication Services		124			1,287
	Intesa Sanpaolo SpA		Banks		7,968			18,898
	Italgas Reti SpA		Gas Utilities		201			1,298
	Leonardo SpA		Aerospace & Defense		217			2,553
a	Mediaset SpA		Media		178			524
	Mediobanca Banca di Credito Finanziario SpA		Banks		385			4,206
	Moncler SpA		Textiles, Apparel & Luxury Goods		98			3,494
	Pirelli & C SpA		Auto Components		231	��		1,367
b	Poste Italiane SpA, Reg S		Insurance		235			2,672
	Prysmian SpA		Electrical Equipment		139			2,985
	Recordati SpA		Pharmaceuticals		50			2,146
a	Saipem SpA		Energy Equipment & Services		299			1,353
	Salvatore Ferragamo SpA		Textiles, Apparel & Luxury Goods		39			721
	Snam SpA		Gas Utilities		1,212			6,123
	Telecom Italia SpA, di Risp		Diversified Telecommunication Services		3,158			1,727
a	Telecom Italia SpA/Milano		Diversified Telecommunication Services		5,942			3,391
	Tenaris SA		Energy Equipment & Services		244			2,589
	Terna Rete Elettrica Nazionale SpA		Electric Utilities		753			4,839
	UniCredit SpA		Banks		1,204			14,202
	Unione di Banche Italiane SpA		Banks		540			1,517
	UnipolSai Assicurazioni SpA		Insurance		285			758


								177,178



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STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin FTSE Europe Hedged ETF(continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Kazakhstan 0.0%^†
	KAZ Minerals PLC		Metals & Mining		118	$	630

	Luxembourg 0.2%
	Eurofins Scientific SE		Life Sciences Tools & Services		6		2,789
	RTL Group SA		Media		21		1,010
	SES SA, IDR		Media		188		3,428


							7,227

	Netherlands 4.4%
	Aalberts NV		Machinery		52		2,061
	ABN AMRO Bank NV, GDR,		Banks		219		3,862
a	Adyen NV		IT Services		5		3,295
	Aegon NV		Insurance		960		3,995
	Akzo Nobel NV		Chemicals		121		10,789
a	Argenx SE		Biotechnology		19		2,156
	ASML Holding NV		Semiconductors & Semiconductor Equipment		214		53,018
	ASR Nederland NV		Insurance		78		2,880
	Boskalis Westminster		Construction & Engineering		45		939
b	Euronext NV, Reg S		Capital Markets		32		2,618
	EXOR NV		Diversified Financial Services		56		3,754
	Grandvision NV		Specialty Retail		27		809
	Heineken Holding NV		Beverages		58		5,776
	Heineken NV		Beverages		127		13,729
	ING Groep NV		Banks		2,075		21,726
	Koninklijke Ahold Delhaize NV		Food & Staples Retailing		597		14,940
	Koninklijke DSM NV		Chemicals		94		11,314
	Koninklijke KPN NV		Diversified Telecommunication Services		1,776		5,540
	Koninklijke Philips NV		Health Care Equipment & Supplies		484		22,425
	Koninklijke Vopak NV		Oil, Gas & Consumable Fuels		36		1,851
	NN Group NV		Insurance		176		6,244
a	OCI NV		Chemicals		50		1,181
a	QIAGEN NV		Life Sciences Tools & Services		115		3,766
	Randstad NV		Professional Services		60		2,949
	Signify NV		Electrical Equipment		60		1,650
a,b	Takeaway.com NV, Reg S		Internet & Direct Marketing Retail		20		1,596
	Wolters Kluwer NV		Professional Services		147		10,734


							215,597

	Norway 1.1%
	Aker ASA		Diversified Financial Services		13		693
	Aker BP ASA		Oil, Gas & Consumable Fuels		55		1,473
	DNB ASA		Banks		561		9,895
	Equinor ASA		Oil, Gas & Consumable Fuels		519		9,885
	Gjensidige Forsikring ASA		Insurance		84		1,667
	Leroy Seafood Group ASA		Food Products		140		852
	Mowi ASA		Food Products		224		5,175
	Norsk Hydro ASA		Metals & Mining		717		2,525
	Orkla ASA		Food Products		415		3,780
	Salmar ASA		Food Products		31		1,361
	Schibsted ASA, A		Media		47		1,392
	Schibsted ASA, B		Media		49		1,375
	Telenor ASA		Diversified Telecommunication Services		349		7,012
	Yara International ASA		Chemicals		93		4,010


							51,095

	Poland 0.5%
	Bank Pekao SA		Banks		82		2,094
	CD Projekt SA		Entertainment		33		2,003



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STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin FTSE Europe Hedged ETF(continued)



		Industry			Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Poland (continued)
	Cyfrowy Polsat SA		Media			158	$	1,041
a	Dino Polska SA		Food & Staples Retailing			22		862
	Grupa Lotos SA		Oil, Gas & Consumable Fuels			52		1,149
a	KGHM Polska Miedz SA		Metals & Mining			71		1,417
	LPP SA		Textiles, Apparel & Luxury Goods			1		2,145
a	mBank SA		Banks			7		607
a	PGE Polska Grupa Energetyczna SA		Electric Utilities			353		704
	Polski Koncern Naftowy Orlen SA		Oil, Gas & Consumable Fuels			159		3,914
	Polskie Gornictwo Naftowe i Gazownictwo SA		Oil, Gas & Consumable Fuels			897		1,052
	Powszechna Kasa Oszczednosci Bank Polski SA		Banks			442		4,335
	Powszechny Zaklad Ubezpieczen SA		Insurance			288		2,685
	Santander Bank Polska SA		Banks			16		1,252


								25,260

	Portugal 0.2%
	EDP- Energias de Portugal SA		Electric Utilities			1,209		4,695
	Galp Energia SGPS SA, B		Oil, Gas & Consumable Fuels			267		4,024
	Jeronimo Martins SGPS SA		Food & Staples Retailing			128		2,160


								10,879

	Russia 0.1%
	Evraz PLC		Metals & Mining			281		1,619
	Polymetal International PLC		Metals & Mining			164		2,304


								3,923

	South Africa 0.0%^†
	Investec PLC		Capital Markets			371		1,914

	Spain 4.5%
	Acciona SA		Electric Utilities			11		1,164
	ACS Actividades de Construccion y Servicios SA		Construction & Engineering			133		5,316
	Aena SME SA		Transportation Infrastructure			38		6,960
	Amadeus IT Group SA, A		IT Services			213		15,261
	Banco Bilbao Vizcaya Argentaria SA		Banks			3,534		18,418
	Banco de Sabadell SA		Banks			2,921		2,835
	Banco Santander SA		Banks			8,805		35,867
	Bankia SA		Banks			700		1,322
	Bankinter SA		Banks			350		2,211
	CaixaBank SA		Banks			1,938		5,092
	Cellnex Telecom SA		Diversified Telecommunication Services			112		4,628
	Corporacion Financiera Alba SA		Diversified Financial Services			10		487
	Corporacion Mapfre SA		Insurance			505		1,360
	EDP Renovaveis SA		Independent Power and Renewable Electricity Producers			103		1,111
	Enagas SA		Gas Utilities			114		2,642
	Endesa SA		Electric Utilities			168		4,421
	Ferrovial SA		Construction & Engineering			251		7,254
	Fomento de Construcciones y Contratas SA		Construction & Engineering			33		378
	Grifols SA		Biotechnology			181		5,336
	Iberdrola SA		Electric Utilities			3,170		32,956
	Industria de Diseno Textil SA		Specialty Retail			560		17,339
	Inmobiliaria Colonial SA		Equity Real Estate Investment Trusts (REITs	)		175		2,112
	Merlin Properties Socimi SA		Equity Real Estate Investment Trusts (REITs	)		169		2,360
	Naturgy Energy Group SA		Gas Utilities			167		4,431
	Red Electrica Corp. SA		Electric Utilities			235		4,774
	Repsol SA		Oil, Gas & Consumable Fuels			718		11,225
	Siemens Gamesa Renewable Energy SA		Electrical Equipment			113		1,534



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Franklin FTSE Europe Hedged ETF(continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Spain (continued)
	Telefonica SA		Diversified Telecommunication Services		2,422	$	18,486
	Zardoya Otis SA		Machinery		112		761


							218,041

	Sweden 4.0%
	Alfa Laval AB		Machinery		166		3,280
	Assa Abloy AB, B		Building Products		486		10,830
	Atlas Copco AB		Machinery		200		5,427
	Atlas Copco AB, A		Machinery		337		10,392
	Boliden AB		Metals & Mining		149		3,429
	Castellum AB		Real Estate Management & Development		144		3,087
	Electrolux AB, B		Household Durables		126		2,991
	Elekta AB, B		Health Care Equipment & Supplies		196		2,586
	Epiroc AB, A		Machinery		340		3,690
	Epiroc AB, B		Machinery		199		2,058
	Ericsson, B		Communications Equipment		1,604		12,833
	Essity AB, B		Household Products		325		9,497
a	Fastighets AB Balder, B		Real Estate Management & Development		53		2,010
	Hennes & Mauritz AB, B		Specialty Retail		468		9,084
	Hexagon AB, B		Electronic Equipment, Instruments & Components		133		6,420
	Husqvarna AB, B		Household Durables		217		1,653
	ICA Gruppen AB		Food & Staples Retailing		40		1,850
	Industrivarden AB, A		Diversified Financial Services		121		2,725
	Industrivarden AB, C		Diversified Financial Services		95		2,082
	Investment AB Latour, B		Industrial Conglomerates		63		830
	Investor AB, A		Diversified Financial Services		70		3,370
	Investor AB, B		Diversified Financial Services		245		11,988
	Kinnevik AB, B		Diversified Financial Services		133		3,502
	L E Lundbergforetagen AB, B		Diversified Financial Services		40		1,507
	Lundin Petroleum AB		Oil, Gas & Consumable Fuels		91		2,733
	Nibe Industrier AB		Building Products		167		2,121
	Saab AB, B		Aerospace & Defense		48		1,380
	Sandvik AB		Machinery		582		9,077
	Securitas AB, B		Commercial Services & Supplies		157		2,408
	Skandinaviska Enskilda Banken AB, A		Banks		756		6,957
	Skandinaviska Enskilda Banken AB, C		Banks		12		112
	Skanska AB, B		Construction & Engineering		195		3,955
	SKF AB, B		Machinery		203		3,359
	Svenska Cellulosa AB, A		Paper & Forest Products		12		112
	Svenska Cellulosa AB, B		Paper & Forest Products		321		2,866
	Svenska Handelsbanken AB, A		Banks		763		7,153
	Svenska Handelsbanken AB, B		Banks		18		170
	Swedbank AB, A		Banks		527		7,595
	Swedish Match AB		Tobacco		88		3,644
a	Swedish Orphan Biovitrum AB		Biotechnology		103		1,580
	Tele2 AB, B		Wireless Telecommunication Services		290		4,321
	Telefonaktiebolaget LM Ericsson, A		Communications Equipment		19		152
	Telia Co. AB		Diversified Telecommunication Services		1,418		6,356
	Trelleborg AB, B		Machinery		121		1,700
	Volvo AB, B		Machinery		794		11,164


							196,036

	Switzerland 14.9%
	ABB Ltd.		Electrical Equipment		951		18,702
	Adecco Group AG		Professional Services		81		4,486
a	Alcon Inc.		Health Care Equipment & Supplies		243		14,183
	Baloise Holding AG		Insurance		26		4,662
	Banque Cantonale Vaudoise		Banks		2		1,532



200	Semiannual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin FTSE Europe Hedged ETF(continued)



	Industry		Shares		Value
Common Stocks and Other Equity Interests (continued)
Switzerland (continued)
Barry Callebaut AG		Food Products		1	$	2,064
Chocoladefabriken Lindt & Spruengli AG		Food Products		1		7,391
Clariant AG		Chemicals		112		2,182
Coca-Cola HBC AG		Beverages		103		3,373
Compagnie Financiere Richemont SA		Textiles, Apparel & Luxury Goods		271		19,899
Credit Suisse Group AG		Capital Markets		1,338		16,417
DKSH Holding AG		Professional Services		18		899
Dufry AG		Specialty Retail		16		1,340
EMS-Chemie Holding AG		Chemicals		4		2,493
Flughafen Zurich AG		Transportation Infrastructure		10		1,853
Geberit AG		Building Products		19		9,081
Georg Fischer AG		Machinery		2		1,734
Givaudan AG		Chemicals		5		13,960
Glencore PLC		Metals & Mining		5,963		17,985
Helvetia Holding AG		Insurance		19		2,624
Julius Baer Group Ltd.		Capital Markets		119		5,277
Kuehne + Nagel International AG		Marine		27		3,980
LafargeHolcim Ltd., B		Construction Materials		267		13,153
Logitech International SA		Technology Hardware, Storage & Peripherals		76		3,085
Lonza Group AG		Life Sciences Tools & Services		40		13,535
Nestle SA		Food Products		1,546		167,879
Novartis AG		Pharmaceuticals		1,152		99,979
OC Oerlikon Corp. AG		Machinery		103		1,034
Pargesa Holding SA, B		Diversified Financial Services		20		1,539
Partners Group Holding AG		Capital Markets		9		6,912
PSP Swiss Property AG		Real Estate Management & Development		23		2,923
Roche Holding AG		Pharmaceuticals		15		4,344
Roche Holding AG		Pharmaceuticals		372		108,356
Schindler Holding AG		Machinery		11		2,456
Schindler Holding AG, PC		Machinery		21		4,701
SGS SA		Professional Services		3		7,443
Sika AG		Chemicals		74		10,835
Sonova Holding AG		Health Care Equipment & Supplies		29		6,747
STMicroelectronics NV		Semiconductors & Semiconductor Equipment		339		6,553
Straumann Holding AG		Health Care Equipment & Supplies		5		4,091
Sulzer AG		Machinery		10		984
Swatch Group AG		Textiles, Apparel & Luxury Goods		15		3,985
Swatch Group AG		Textiles, Apparel & Luxury Goods		24		1,207
Swiss Life Holding AG		Insurance		18		8,612
Swiss Prime Site AG		Real Estate Management & Development		40		3,917
Swiss Re AG		Insurance		147		15,347
Swisscom AG		Diversified Telecommunication Services		14		6,912
Temenos AG		Software		31		5,192
UBS Group AG		Capital Markets		1,841		20,918
Vifor Pharma AG		Pharmaceuticals		24		3,838
Zurich Insurance Group AG		Insurance		78		29,881


						722,475

United Arab Emirates 0.0%^†
NMC Health PLC		Health Care Providers & Services		48		1,603

United Kingdom 25.8%
3i Group PLC		Capital Markets		509		7,317
Admiral Group PLC		Insurance		113		2,949
Anglo American PLC		Metals & Mining		672		15,495
Antofagasta PLC		Metals & Mining		179		1,983
Ashmore Group PLC		Capital Markets		192		1,197
Ashtead Group PLC		Trading Companies & Distributors		249		6,947
Associated British Foods PLC		Food Products		187		5,307



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STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin FTSE Europe Hedged ETF(continued)



		Industry			Shares		Value
	Common Stocks and Other Equity Interests (continued)
	United Kingdom (continued)
	AstraZeneca PLC		Pharmaceuticals			703	$	62,902
	Auto Trader Group PLC		Interactive Media & Services			473		2,973
	Aveva Group PLC		Software			36		1,641
	Aviva PLC		Insurance			2,071		10,190
	B&M European Value Retail SA		Multiline Retail			466		2,179
	Babcock International Group PLC		Commercial Services & Supplies			132		908
	BAE Systems PLC		Aerospace & Defense			1,726		12,124
	Barclays PLC		Banks			9,204		17,058
	Barratt Developments PLC		Household Durables			545		4,352
	Bellway PLC		Household Durables			64		2,639
	BHP Group PLC		Metals & Mining			1,108		23,654
	BP PLC		Oil, Gas & Consumable Fuels			10,674		67,846
	British American Tobacco PLC		Tobacco			1,223		45,326
	British Land Co. PLC		Equity Real Estate Investment Trusts (REITs	)		489		3,524
	BT Group PLC		Diversified Telecommunication Services			4,608		10,141
	Bunzl PLC		Trading Companies & Distributors			174		4,556
	Burberry Group PLC		Textiles, Apparel & Luxury Goods			219		5,867
	Centrica PLC		Multi-Utilities			2,949		2,680
	Cineworld Group PLC		Entertainment			531		1,492
	CNH Industrial NV		Machinery			535		5,448
a	Cobham PLC		Aerospace & Defense			1,261		2,437
	Compass Group PLC		Hotels, Restaurants & Leisure			852		21,975
	ConvaTec Group PLC		Health Care Equipment & Supplies			758		1,637
	Croda International PLC		Chemicals			66		3,953
	CYBG PLC		Banks			641		908
	DCC PLC		Industrial Conglomerates			52		4,547
	Derwent London PLC		Equity Real Estate Investment Trusts (REITs	)		53		2,201
	Diageo PLC		Beverages			1,252		51,423
	Direct Line Insurance Group PLC		Insurance			708		2,619
	DS Smith PLC		Containers & Packaging			675		2,998
	easyJet PLC		Airlines			95		1,346
	Experian PLC		Professional Services			485		15,533
	Ferguson PLC		Trading Companies & Distributors			124		9,083
	Fiat Chrysler Automobiles NV		Automobiles			591		7,649
	Fresnillo PLC		Metals & Mining			93		783
	G4S PLC		Commercial Services & Supplies			828		1,930
	GlaxoSmithKline PLC		Pharmaceuticals			2,625		56,434
	GVC Holdings PLC		Hotels, Restaurants & Leisure			322		2,950
	Halma PLC		Electronic Equipment, Instruments & Components			207		5,028
	Hargreaves Lansdown PLC		Capital Markets			142		3,638
	Hikma Pharmaceuticals PLC		Pharmaceuticals			73		1,979
	Hiscox Ltd.		Insurance			153		3,130
	Howden Joinery Group PLC		Trading Companies & Distributors			318		2,196
	HSBC Holdings PLC		Banks			10,825		83,319
	IMI PLC		Machinery			136		1,609
	Imperial Brands PLC		Tobacco			509		11,467
	Inchcape PLC		Distributors			212		1,650
	Informa PLC		Media			667		7,003
	InterContinental Hotels Group PLC		Hotels, Restaurants & Leisure			96		6,004
	International Consolidated Airlines Group SA		Airlines			361		2,113
	Intertek Group PLC		Professional Services			85		5,738
	ITV PLC		Media			1,936		3,004
	J Sainsbury PLC		Food & Staples Retailing			905		2,451
	JD Sports Fashion PLC		Specialty Retail			190		1,759
	John Wood Group PLC		Energy Equipment & Services			364		1,704
	Johnson Matthey PLC		Chemicals			100		3,767
a	Just Eat PLC		Internet & Direct Marketing Retail			305		2,511
	Kingfisher PLC		Specialty Retail			1,174		2,992



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STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin FTSE Europe Hedged ETF(continued)



		Industry			Shares		Value
	Common Stocks and Other Equity Interests (continued)
	United Kingdom (continued)
	Land Securities Group PLC		Equity Real Estate Investment Trusts (REITs	)		387	$	4,084
	Legal & General Group PLC		Insurance			3,210		9,826
	Lloyds Banking Group PLC		Banks			37,578		25,062
	London Stock Exchange Group PLC		Capital Markets			168		15,129
	Marks & Spencer Group PLC		Multiline Retail			1,027		2,334
	Meggitt PLC		Aerospace & Defense			428		3,349
	Melrose Industries PLC		Electrical Equipment			2,620		6,509
	Merlin Entertainments PLC		Hotels, Restaurants & Leisure			394		2,197
	Micro Focus International PLC		Software			177		2,480
	Mondi PLC		Paper & Forest Products			257		4,934
	National Grid PLC		Multi-Utilities			1,865		20,268
	Next PLC		Multiline Retail			69		5,260
a	Ocado Group PLC		Internet & Direct Marketing Retail			242		3,944
	Pearson PLC		Media			425		3,865
	Pennon Group PLC		Water Utilities			218		2,222
	Persimmon PLC		Household Durables			164		4,385
	Phoenix Group Holdings PLC		Insurance			264		2,249
	Prudential PLC		Insurance			1,386		25,192
	Quilter PLC		Capital Markets			989		1,662
	Reckitt Benckiser Group PLC		Household Products			337		26,346
	RELX PLC		Professional Services			1,009		24,029
	Renishaw PLC		Electronic Equipment, Instruments & Components			19		858
	Rentokil Initial PLC		Commercial Services & Supplies			989		5,701
	Rightmove PLC		Interactive Media & Services			487		3,304
	Rolls-Royce Holdings PLC		Aerospace & Defense			898		8,769
	Royal Bank of Scotland Group PLC		Banks			2,390		6,114
	Royal Dutch Shell PLC, A		Oil, Gas & Consumable Fuels			2,296		67,452
	Royal Dutch Shell PLC, B		Oil, Gas & Consumable Fuels			2,007		59,258
	RSA Insurance Group PLC		Insurance			554		3,647
	Schroders PLC		Capital Markets			59		2,236
	Segro PLC		Equity Real Estate Investment Trusts (REITs	)		587		5,865
	Severn Trent PLC		Water Utilities			123		3,282
	Smith & Nephew PLC		Health Care Equipment & Supplies			467		11,274
	Smiths Group PLC		Industrial Conglomerates			216		4,179
	Spirax-Sarco Engineering PLC		Machinery			39		3,770
	SSE PLC		Electric Utilities			549		8,426
	St. James’s Place Capital PLC		Capital Markets			286		3,452
	Standard Chartered PLC		Banks			1,406		11,855
	Standard Life Aberdeen PLC		Capital Markets			1,281		4,512
	Subsea 7 SA		Energy Equipment & Services			125		1,293
	Tate & Lyle PLC		Food Products			250		2,267
	Taylor Wimpey PLC		Household Durables			1,801		3,584
	TechnipFMC PLC		Energy Equipment & Services			246		5,903
	Tesco PLC		Food & Staples Retailing			5,182		15,390
	The Berkeley Group Holdings PLC		Household Durables			62		3,193
	The Sage Group PLC		Software			581		4,950
	Travis Perkins PLC		Trading Companies & Distributors			142		2,259
	Unilever NV, IDR		Personal Products			776		46,657
	Unilever PLC		Personal Products			581		35,011
	United Utilities Group PLC		Water Utilities			357		3,633
	Vodafone Group PLC		Wireless Telecommunication Services			14,411		28,769
	Weir Group PLC		Machinery			138		2,424
	Whitbread PLC		Hotels, Restaurants & Leisure			70		3,704
	William Morrison Supermarkets PLC		Food & Staples Retailing			1,240		3,061
	WPP PLC		Media			651		8,167


								1,251,708



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FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin FTSE Europe Hedged ETF(continued)

Industry

Shares

Value

Common Stocks and Other Equity Interests (continued)

United States 0.1%

Carnival PLC

Hotels, Restaurants & Leisure

3,530

Total Common Stocks and Other Equity Interests
(Cost $5,395,371)

4,720,986

Preferred Stocks 0.8%

Germany 0.8%

Bayerische Motoren Werke AG, 6.909%, pfd.

Automobiles

1,889

Fuchs Petrolub SE, 2.757%, pfd.

Chemicals

1,503

Henkel AG & Co. KGaA, 2.037%, pfd.

Household Products

9,206

Porsche Automobil Holding SE, 3.702%, pfd.

Automobiles

5,207

Sartorius AG, 0.370%, pfd.

Health Care Equipment & Supplies

3,467

Volkswagen AG, 3.114%, pfd.

Automobiles

16,503

Total Preferred Stocks (Cost $48,688)

37,775

Short Term Investments (Cost $41,913) 0.8%

United States 0.8%

e,f

Institutional Fiduciary Trust Portfolio, 1.71%

Money Market Funds

41,913

Total Investments (Cost $5,485,972) 98.9%

4,800,674

Other Assets, less Liabilities 1.1%

51,945

Net Assets 100.0%

4,852,619

See Abbreviations on page 322.

^†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 September 30, 2019, the aggregate value of these securities was $5,647, representing 0.1% of net assets.

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

^eSee Note 4(a) regarding investments in affiliated management investment companies.

^fThe rate shown is the annualizedseven-day effective yield at period end.

At September 30, 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		902,885	$	131,829		10/02/19	$	7	$	—
Danish Krone		BOFA		Sell		902,885		133,667		10/02/19		1,831		—
Euro		HSBK		Buy		707,130		770,899		10/02/19		14		—
Euro		UBSW		Buy		707,130		770,898		10/02/19		15		—
Euro		BOFA		Buy		707,130		770,890		10/02/19		22		—
Euro		BOFA		Sell		707,130		780,490		10/02/19		9,577		—
Euro		UBSW		Sell		707,130		780,486		10/02/19		9,573		—
Euro		HSBK		Sell		707,130		780,485		10/02/19		9,572		—
Great British Pound		BOFA		Buy		1,019,640		1,256,466		10/02/19		36		—
Great British Pound		BOFA		Sell		1,019,640		1,243,423		10/02/19		—		(13,078	)
Norwegian Krone		BOFA		Buy		483,385		53,204		10/02/19		—		(3	)
Norwegian Krone		BOFA		Sell		483,385		53,120		10/02/19		—		(81	)
Polish Zloty		BOFA		Buy		95,405		23,795		10/02/19		2		—
Polish Zloty		BOFA		Sell		95,405		24,034		10/02/19		237		—



204	Semiannual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin FTSE Europe Hedged ETF(continued)


Forward Exchange Contracts(continued)

Currency	Counterparty^a		Type		Quantity		Contract Amount		Settlement Date		Unrealized Appreciation		Unrealized Depreciation
OTC Forward Exchange Contracts(continued)
Swedish Krona		BOFA		Buy		1,874,170	$	190,607		10/02/19	$	9	$	—
Swedish Krona		BOFA		Sell		1,874,170		191,480		10/02/19		864		—
Swiss Franc		MSCO		Buy		699,970		701,953		10/02/19		18		—
Swiss Franc		MSCO		Sell		699,970		709,315		10/02/19		7,345		—
Danish Krone		BOFA		Sell		919,000		134,536		11/04/19		—		(11	)
Euro		HSBK		Sell		740,333		809,059		11/04/19		—		(44	)
Euro		UBSW		Sell		740,333		809,057		11/04/19		—		(46	)
Euro		BOFA		Sell		740,333		809,093		11/04/19		—		(10	)
Great British Pound		BOFA		Sell		1,052,100		1,298,205		11/04/19		—		(23	)
Norwegian Krone		BOFA		Sell		496,600		54,691		11/04/19		3		—
Polish Zloty		BOFA		Sell		101,700		25,376		11/04/19		—		(3	)
Swedish Krona		BOFA		Sell		1,960,800		199,844		11/04/19		—		(13	)
Swiss Franc		MSCO		Sell		704,000		707,966		11/04/19		30		—

Total Forward Exchange Contracts											$	39,155	$	(13,312	)

Net unrealized appreciation (depreciation)													$	25,843

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

At September 30, 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

77,513

12/20/19

1,240

*As of period end.

See Note 7 regarding other derivative information.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Semiannual Report	205

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin FTSE France ETF


	Six Months Ended September 30, 2019 (unaudited)			Year Ended March 31,
	Six Months Ended September 30, 2019 (unaudited)			2019			2018^a

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

Net asset value, beginning of period	$	23.86		$	25.33		$	25.32


Income from investment operations^b:

Net investment income^c		0.56			0.70			0.08

Net realized and unrealized gains (losses)		0.75			(1.48	)		(0.01	)


Total from investment operations		1.31			(0.78	)		0.07


Less distributions from net investment income		(0.28	)		(0.69	)		(0.06	)


Net asset value, end of period	$	24.89		$	23.86		$	25.33


Total return^d		5.52%			(3.07)%			0.26%

Ratios to average net assets^e

Total expenses		0.09%			0.09%			0.09%

Net investment income		4.60%			2.90%			0.78%

Supplemental data

Net assets, end of period (000’s)		$3,733			$2,386			$2,533

Portfolio turnover rate^f		1.50%			5.80%			1.90%

Portfolio turnover rate excluding portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely or in part for cash^f,g		1.50%			—%			—%

^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.

^gEffective September 30, 2019.



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

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, September 30, 2019 (unaudited)

Franklin FTSE France ETF



		Industry			Shares		Value
	Common Stocks 100.0%
	France 97.4%
	Accor SA		Hotels, Restaurants & Leisure			462	$	19,265
	Aeroports de Paris SA		Transportation Infrastructure			69		12,277
a	AirFrance-KLM		Airlines			471		4,930
	Air Liquide SA		Chemicals			1,026		146,082
	Airbus SE		Aerospace & Defense			1,341		174,265
b	ALD SA, 144A		Road & Rail			198		2,828
	Alstom SA		Machinery			447		18,533
	Amundi SA		Capital Markets			138		9,629
	Arkema SA		Chemicals			174		16,223
	Atos SE		IT Services			231		16,289
	AXA SA		Insurance			4,680		119,543
	Biomerieux		Health Care Equipment & Supplies			102		8,440
	BNP Paribas SA		Banks			2,637		128,420
	Bollore		Air Freight & Logistics			2,394		9,923
	Bouygues SA		Construction & Engineering			507		20,313
	Bureau Veritas SA		Professional Services			672		16,191
	Capgemini SE		IT Services			378		44,548
	Carrefour SA		Food & Staples Retailing			1,398		24,477
	Casino Guichard-Perrachon SA		Food & Staples Retailing			132		6,302
	Cie Generale des Etablissements Michelin SCA		Auto Components			429		47,892
	CNP Assurances		Insurance			390		7,538
	Compagnie de Saint-Gobain		Building Products			1,185		46,508
	Covivio		Equity Real Estate Investment Trusts (REITs	)		114		12,068
	Credit Agricole SA		Banks			2,799		33,993
	Danone SA		Food Products			1,461		128,729
	Dassault Aviation SA		Aerospace & Defense			6		8,490
	Dassault Systemes		Software			321		45,757
	Edenred		Commercial Services & Supplies			594		28,513
	EDF SA		Electric Utilities			1,226		13,727
	Eiffage SA		Construction & Engineering			180		18,666
	Elis SA		Commercial Services & Supplies			459		8,117
	Engie SA		Multi-Utilities			4,038		65,945
	EssilorLuxottica SA		Textiles, Apparel & Luxury Goods			717		103,376
	Eurazeo SE		Diversified Financial Services			114		8,482
	Eutelsat Communications SA		Media			450		8,377
	Faurecia SE		Auto Components			180		8,540
	Gecina SA		Equity Real Estate Investment Trusts (REITs	)		126		19,808
	Getlink SE		Transportation Infrastructure			1,104		16,585
	Hermes International		Textiles, Apparel & Luxury Goods			75		51,839
	ICADE		Equity Real Estate Investment Trusts (REITs	)		78		6,977
	Iliad SA		Diversified Telecommunication Services			57		5,358
	Imerys SA		Construction Materials			90		3,619
	Ingenico Group SA		Electronic Equipment, Instruments & Components			150		14,636
	Ipsen SA		Pharmaceuticals			84		7,976
	JCDecaux SA		Media			177		4,793
	Kering SA		Textiles, Apparel & Luxury Goods			180		91,750
	Klepierre SA		Equity Real Estate Investment Trusts (REITs	)		465		15,796
	L’Oreal SA		Personal Products			588		164,683
	Lagardere SCA		Media			282		6,241
	Legrand SA		Electrical Equipment			651		46,472
	LVMH Moet Hennessy Louis Vuitton SE		Textiles, Apparel & Luxury Goods			606		240,910
	Natixis SA		Capital Markets			2,046		8,487
	Orange SA		Diversified Telecommunication Services			4,668		73,257
	Orpea		Health Care Providers & Services			108		13,199
	Pernod Ricard SA		Beverages			516		91,920
	Peugeot SA		Automobiles			1,326		33,075
	Plastic Omnium SA		Auto Components			135		3,703
	Publicis Groupe		Media			525		25,825
	Remy Cointreau SA		Beverages			60		7,967



franklintempleton.com	Semiannual Report	207

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin FTSE France ETF(continued)



		Industry		Shares		Value
	Common Stocks (continued)
	France (continued)
	Renault SA		Automobiles		447	$	25,662
	Rexel SA		Trading Companies & Distributors		735		7,867
	Rubis SCA		Gas Utilities		222		12,900
	Safran SA		Aerospace & Defense		804		126,613
	Sanofi		Pharmaceuticals		2,643		245,092
	Sartorius Stedim Biotech		Life Sciences Tools & Services		60		8,399
	Schneider Electric SE		Electrical Equipment		1,281		112,422
	SCOR SE		Insurance		381		15,738
	SEB SA		Household Durables		66		10,023
	Societe BIC SA		Commercial Services & Supplies		63		4,231
	Societe Generale SA		Banks		1,875		51,389
	Sodexo SA		Hotels, Restaurants & Leisure		213		23,918
	Suez		Multi-Utilities		894		14,059
	Teleperformance		Professional Services		141		30,575
	Thales SA		Aerospace & Defense		243		27,949
	Total SA		Oil, Gas & Consumable Fuels		5,886		307,274
a	UbiSoft Entertainment SA		Entertainment		210		15,188
	Valeo SA		Auto Components		579		18,779
	Veolia Environnement SA		Multi-Utilities		1,224		31,038
	Vinci SA		Construction & Engineering		1,134		122,170
	Vivendi SA		Entertainment		1,971		54,106
	Wendel SA		Diversified Financial Services		66		9,109
a,c	Worldline SA, Reg S		IT Services		204		12,877


							3,635,450

	Luxembourg 0.8%
	Eurofins Scientific SE		Life Sciences Tools & Services		27		12,551
	SES SA, IDR		Media		858		15,645


							28,196

	Netherlands 0.3%
c	Euronext NV, Reg S		Capital Markets		150		12,273

	Switzerland 0.8%
	STMicroelectronics NV		Semiconductors & Semiconductor Equipment		1,539		29,748

	United Kingdom 0.7%
	TechnipFMC PLC		Energy Equipment & Services		1,116		26,779

	Total Investments (Cost $3,756,365) 100.0%						3,732,446
	Other Assets, less Liabilities 0.0%^†						565

	Net Assets 100.0%					$	3,733,011

See Abbreviations on page 322.

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

^aNon-income producing.

^bSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. This security has been deemed liquid under guidelines approved by the Trust’s Board of Trustees. At September 30, 2019, the value of this security was $2,828, representing 0.1% of net assets.



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

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin FTSE Germany ETF


	Six Months Ended September 30, 2019 (unaudited)			Year Ended March 31,
	Six Months Ended September 30, 2019 (unaudited)			2019			2018^a

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

Net asset value, beginning of period	$	20.70		$	24.60		$	25.55


Income from investment operations^b:

Net investment income^c		0.48			0.53			0.05

Net realized and unrealized gains (losses)		0.22			(3.83	)		(1.00	)


Total from investment operations		0.70			(3.30	)		(0.95	)


Less distributions from net investment income		(0.48	)		(0.60	)		—


Net asset value, end of period	$	20.92		$	20.70		$	24.60


Total return^d		3.35%			(13.72)%			(3.72)%

Ratios to average net assets^e

Total expenses		0.09%			0.09%			0.09%

Net investment income		4.54%			2.44%			0.52%

Supplemental data

Net assets, end of period (000’s)		$4,185			$4,140			$2,460

Portfolio turnover rate^f		3.30%			10.75%			1.75%

Portfolio turnover rate excluding portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely or in part for cash^f,g		3.30%			—%			—%

^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.

^gEffective September 30, 2019.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Semiannual Report	209

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, September 30, 2019 (unaudited)

Franklin FTSE Germany ETF



		Industry		Shares		Value
	Common Stocks 94.2%
	Germany 93.5%
	1&1 Drillisch AG		Wireless Telecommunication Services		160	$	4,989
	Adidas AG		Textiles, Apparel & Luxury Goods		672		209,271
	Allianz SE		Insurance		1,452		338,518
	Aroundtown SA		Real Estate Management & Development		3,032		24,804
	Axel Springer SE		Media		152		10,489
	BASF SE		Chemicals		3,144		219,777
	Bayer AG		Pharmaceuticals		3,204		225,962
	Bayerische Motoren Werke AG		Automobiles		1,100		77,458
	Beiersdorf AG		Personal Products		344		40,578
	Brenntag AG		Trading Companies & Distributors		532		25,751
	Carl Zeiss Meditec AG		Health Care Equipment & Supplies		128		14,596
	Commerzbank AG		Banks		3,576		20,748
	Continental AG		Auto Components		372		47,734
	Covestro AG		Chemicals		588		29,103
	Daimler AG		Automobiles		2,948		146,619
a	Delivery Hero SE		Internet & Direct Marketing Retail		376		16,708
	Deutsche Bank AG		Capital Markets		7,012		52,525
	Deutsche Boerse AG		Capital Markets		628		98,178
	Deutsche Lufthansa AG		Airlines		812		12,907
	Deutsche Post AG		Air Freight & Logistics		3,352		111,988
	Deutsche Telekom AG		Diversified Telecommunication Services		11,092		186,152
	Deutsche Wohnen AG		Real Estate Management & Development		1,224		44,689
b	DWS Group GmbH & Co. KGaA, 144A		Capital Markets		120		3,548
	E.ON SE		Multi-Utilities		7,436		72,304
	Evonik Industries AG		Chemicals		572		14,124
	Fielmann AG		Specialty Retail		84		6,186
	Fraport AG Frankfurt Airport Services Worldwide		Transportation Infrastructure		124		10,520
	Fresenius Medical Care AG & Co. KGaA		Health Care Providers & Services		720		48,431
	Fresenius SE and Co. KGaA		Health Care Providers & Services		1,396		65,283
	Fuchs Petrolub SE		Chemicals		120		4,363
	GEA Group AG		Machinery		576		15,554
	Grenkeleasing AG		Consumer Finance		88		7,253
	Hannover Rueck SE		Insurance		204		34,494
	Hapag-Lloyd AG		Marine		92		6,620
	HeidelbergCement AG		Construction Materials		512		37,019
	Hella GmbH & Co. KGaA		Auto Components		156		6,976
	Henkel AG & Co. KGaA		Household Products		348		31,869
	Hochtief AG		Construction & Engineering		68		7,754
	Hugo Boss AG		Textiles, Apparel & Luxury Goods		212		11,360
	Infineon Technologies AG		Semiconductors & Semiconductor Equipment		4,276		76,974
	K+S AG		Chemicals		656		9,093
	KION Group AG		Machinery		244		12,835
	Knorr-Bremse AG		Machinery		164		15,419
	Lanxess AG		Chemicals		284		17,339
	LEG Immobilien AG		Real Estate Management & Development		220		25,184
	Merck KGaA		Pharmaceuticals		444		50,026
	METRO AG		Food & Staples Retailing		576		9,093
	MTU Aero Engines AG		Aerospace & Defense		176		46,779
	Muenchener Rueckversicherungs-Gesellschaft Aktiengesellschaft in Muenchen		Insurance		496		128,372
	Nemetschek AG		Software		188		9,596
	Osram Licht AG		Electrical Equipment		300		13,197
	ProSiebenSat.1 Media SE		Media		700		9,646
	Puma SE		Textiles, Apparel & Luxury Goods		284		21,983
	Rational AG		Machinery		12		8,608
	Rheinmetall AG		Industrial Conglomerates		148		18,725
a,b	Rocket Internet SE, 144A		Internet & Direct Marketing Retail		220		5,684



210	Semiannual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin FTSE Germany ETF(continued)



		Industry		Shares		Value
	Common Stocks (continued)
	Germany (continued)
	RWE AG		Multi-Utilities		1,964	$	61,430
	SAP SE		Software		3,328		391,409
c	Scout24 AG, Reg S		Interactive Media & Services		368		20,982
	Siemens AG		Industrial Conglomerates		2,600		278,492
	Siemens Healthineers AG		Health Care Equipment & Supplies		452		17,787
	Suedzucker AG		Food Products		268		4,123
	Symrise AG		Chemicals		432		41,991
a	Talanx AG		Insurance		132		5,704
	Telefonica Deutschland Holding AG		Diversified Telecommunication Services		2,308		6,436
	thyssenkrupp AG		Metals & Mining		1,592		22,051
	Uniper SE		Independent Power and Renewable Electricity Producers		672		22,044
	United Internet AG		Diversified Telecommunication Services		396		14,130
	Volkswagen AG		Automobiles		112		19,256
	Vonovia SE		Real Estate Management & Development		1,864		94,596
	Wacker Chemie AG		Chemicals		52		3,418
	Wirecard AG		IT Services		392		62,715
a,b	Zalando SE, 144A		Internet & Direct Marketing Retail		512		23,377


							3,911,696

	Luxembourg 0.1%
	RTL Group SA		Media		132		6,349

	Netherlands 0.6%
a	QIAGEN NV		Life Sciences Tools & Services		756		24,759

	Total Common Stocks (Cost $4,359,835)						3,942,804

	Preferred Stocks 5.8%
	Germany 5.8%
d	Bayerische Motoren Werke AG, 6.909%, pfd.		Automobiles		196		10,887
d	Fuchs Petrolub SE, 2.757%, pfd.		Chemicals		236		8,866
d	Henkel AG & Co. KGaA, 2.037%, pfd.		Household Products		600		59,394
d	Porsche Automobil Holding SE, 3.702%, pfd.		Automobiles		524		34,104
d	Sartorius AG, 0.370%, pfd.		Health Care Equipment & Supplies		116		21,170
d	Volkswagen AG, 3.114%, pfd.		Automobiles		628		106,846

	Total Preferred Stocks (Cost $269,116)						241,267

	Total Investments (Cost $4,628,951) 100.0%						4,184,071
	Other Assets, less Liabilities 0.0%^†						477

	Net Assets 100.0%					$	4,184,548

See Abbreviations on page 322.

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

^aNon-income producing.

^bSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. These securities have been deemed liquid under guidelines approved by the Fund’s Board of Trustees. At September 30, 2019, the aggregate value of these securities was $32,609, representing 0.8% of net assets.

^cSecurity was purchased pursuant to Regulation S under the Securities Act of 1933, which exempts from registration securities offered and sold outside of the United States. Such a security cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration. This security has been deemed liquid under guidelines approved by the Fund’s Board of Trustees. At September 30, 2019, the value of this security was $20,982, representing 0.5% of net assets.

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



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Semiannual Report	211

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin FTSE Hong Kong ETF


	Six Months Ended September 30, 2019 (unaudited)			Year Ended March 31,
	Six Months Ended September 30, 2019 (unaudited)			2019			2018^a

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

Net asset value, beginning of period	$	26.82		$	26.17		$	25.30


Income from investment operations^b:

Net investment income^c		0.56			0.66			0.16

Net realized and unrealized gains (losses)		(3.38	)		0.59			0.78


Total from investment operations		(2.82	)		1.25			0.94


Less distributions from net investment income		(0.35	)		(0.60	)		(0.07	)


Net asset value, end of period	$	23.65		$	26.82		$	26.17


Total return^d		(10.63)%			4.97%			3.70%

Ratios to average net assets^e

Total expenses		0.09%			0.09%			0.09%

Net investment income		4.31%			2.67%			1.49%

Supplemental data

Net assets, end of period (000’s)		$17,738			$20,118			$7,852

Portfolio turnover rate^f		2.61%			5.33%			0.93%

Portfolio turnover rate excluding portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely or in part for cash^f,g		2.61%			—%			—%

^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.

^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.

^gEffective September 30, 2019.



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

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, September 30, 2019 (unaudited)

Franklin FTSE Hong Kong ETF



		Industry			Shares		Value

	Common Stocks 99.6%
	Cambodia 0.4%
	NagaCorp Ltd.		Hotels, Restaurants & Leisure			50,000	$	78,195

	China 10.4%
	AAC Technologies Holdings Inc.		Electronic Equipment, Instruments & Components			22,500		119,110
	China Mengniu Dairy Co. Ltd.		Food Products			90,000		336,952
	China Travel International Investment Hong Kong Ltd.		Hotels, Restaurants & Leisure			80,000		12,450
	Dairy Farm International Holdings Ltd.		Food & Staples Retailing			10,000		63,000
a	FIH Mobile Ltd.		Electronic Equipment, Instruments & Components			100,000		12,246
	Guotai Junan International holdings Ltd.		Capital Markets			105,000		17,814
	Kerry Logistics Network Ltd.		Air Freight & Logistics			20,000		31,992
	Lenovo Group Ltd.		Technology Hardware, Storage & Peripherals			250,000		166,786
	MGM China Holdings Ltd.		Hotels, Restaurants & Leisure			26,000		40,529
	Minth Group Ltd.		Auto Components			23,050		78,064
a	MMG Ltd.		Metals & Mining			80,000		18,879
	Nexteer Automotive Group Ltd.		Auto Components			30,000		24,760
	Sands China Ltd.		Hotels, Restaurants & Leisure			82,000		371,329
a	Semiconductor Manufacturing International Corp.		Semiconductors & Semiconductor Equipment			102,500		128,135
	Shougang Fushan Resources Group Ltd.		Metals & Mining			120,000		24,798
	Shui On Land Ltd.		Real Estate Management & Development			115,000		22,884
	Tingyi Cayman Islands Holding Corp.		Food Products			64,000		90,129
	Towngas China Co. Ltd.		Gas Utilities			35,000		26,252
	Uni-President China Holdings Ltd.		Food Products			40,000		43,167
	Want Want China Holdings Ltd.		Food Products			185,000		147,964
	Xinyi Solar Holdings Ltd.		Semiconductors & Semiconductor Equipment			120,000		71,944


								1,849,184

	Hong Kong 84.3%
	AIA Group Ltd.		Insurance			364,000		3,438,299
	ASM Pacific Technology Ltd.		Semiconductors & Semiconductor Equipment			10,500		128,179
	BOC Hong Kong (Holdings) Ltd.		Banks			122,500		415,657
	Cafe de Coral Holdings Ltd.		Hotels, Restaurants & Leisure			10,000		26,788
	Cathay Pacific Airways Ltd.		Airlines			20,000		25,002
	Champion REIT		Equity Real Estate Investment Trusts (REITs	)		65,000		42,038
	Chow Tai Fook Jewellery Co. Ltd.		Specialty Retail			37,000		30,537
	CK Asset Holdings Ltd.		Real Estate Management & Development			91,500		619,773
	CK Hutchison Holdings Ltd.		Industrial Conglomerates			91,000		803,276
	CK Infrastructure Holdings Ltd.		Electric Utilities			21,000		141,305
	CLP Holdings Ltd.		Electric Utilities			55,500		583,007
	Dah Sing Banking Group Ltd.		Banks			12,000		16,134
	Dah Sing Financial Group		Banks			4,000		14,797
	First Pacific Co. Ltd.		Diversified Financial Services			80,000		30,615
	Haitong International Securities Group Ltd.		Capital Markets			85,000		24,071
	Hang Lung Group Ltd.		Real Estate Management & Development			30,000		74,700
	Hang Lung Properties Ltd.		Real Estate Management & Development			70,000		158,941
	Hang Seng Bank Ltd.		Banks			24,500		528,165
	Henderson Land Development Co. Ltd.		Real Estate Management & Development			44,000		204,863
	Hong Kong and China Gas Co. Ltd.		Gas Utilities			335,000		652,958
	Hong Kong Exchanges and Clearing Ltd.		Capital Markets			42,500		1,246,907
	Hongkong Land Holdings Ltd.		Real Estate Management & Development			39,000		219,180
	Huabao International Holdings Ltd.		Chemicals			30,000		10,983
	Hutchison Telecommunications Hong Kong Holdings Ltd.		Wireless Telecommunication Services			40,000		6,735
	Hysan Development Co. Ltd.		Real Estate Management & Development			20,000		80,618
	Jardine Matheson Holdings Ltd.		Industrial Conglomerates			7,200		385,200
	Jardine Strategic Holdings Ltd.		Industrial Conglomerates			6,100		182,268
	Johnson Electric Holdings Ltd.		Electrical Equipment			12,500		22,387
	Kerry Properties Ltd.		Real Estate Management & Development			20,000		61,612
	Li & Fung Ltd.		Textiles, Apparel & Luxury Goods			190,000		21,571
	Lifestyle International Holdings Ltd.		Multiline Retail			15,000		15,633



franklintempleton.com	Semiannual Report	213

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin FTSE Hong Kong ETF(continued)



		Industry			Shares		Value
	Common Stocks (continued)
	Hong Kong (continued)
	Link REIT		Equity Real Estate Investment Trusts (REITs	)		71,500	$	788,476
	Melco International Development Ltd.		Hotels, Restaurants & Leisure			25,000		59,443
	MTR Corp. Ltd.		Road & Rail			47,500		266,602
	New World Development Co. Ltd.		Real Estate Management & Development			195,000		253,221
	NWS Holdings Ltd.		Industrial Conglomerates			50,000		77,429
	PCCW Ltd.		Diversified Telecommunication Services			145,000		81,384
	Power Assets Holdings Ltd.		Electric Utilities			46,500		312,298
	Sa Sa International Holdings Ltd.		Specialty Retail			40,000		8,878
	Samsonite International SA		Textiles, Apparel & Luxury Goods			43,500		92,112
	Shangri-La Asia Ltd.		Hotels, Restaurants & Leisure			40,000		40,819
	Shun Tak Holdings Ltd.		Industrial Conglomerates			60,000		23,879
	Sino Land Co. Ltd.		Real Estate Management & Development			110,000		165,293
	Sun Art Retail Group Ltd.		Food & Staples Retailing			75,000		76,154
	Sun Hung Kai Properties Ltd.		Real Estate Management & Development			48,000		690,665
	Swire Pacific Ltd., A		Real Estate Management & Development			17,500		162,847
	Swire Pacific Ltd., B		Real Estate Management & Development			30,000		43,855
	Swire Properties Ltd.		Real Estate Management & Development			36,000		112,968
	Techtronic Industries Co. Ltd.		Machinery			42,500		295,734
	Television Broadcasts Ltd.		Media			10,000		16,302
	The Bank of East Asia Ltd.		Banks			42,000		103,401
	The Wharf Holdings Ltd.		Real Estate Management & Development			40,000		87,252
a	United Energy Group Ltd.		Oil, Gas & Consumable Fuels			250,000		51,343
	Vitasoy International Holdings Ltd.		Food Products			27,000		109,351
	VTech Holdings Ltd.		Communications Equipment			5,500		47,953
b	WH Group Ltd., Reg S		Food Products			285,000		255,211
	Wharf Real Estate Investment Co. Ltd.		Real Estate Management & Development			41,000		223,844
	Wheelock and Co. Ltd.		Real Estate Management & Development			27,800		158,337
	Xinyi Glass Holdings Ltd.		Auto Components			70,000		77,059
	Yue Yuen Industrial Holdings Ltd.		Textiles, Apparel & Luxury Goods			25,000		68,404


								14,962,713

	Italy 0.3%
	Prada SpA		Textiles, Apparel & Luxury Goods			17,500		50,897

	Luxembourg 0.2%	��
	L’Occitane International SA		Personal Products			15,000		29,849

	Macau 3.5%
	Galaxy Entertainment Group Ltd.		Hotels, Restaurants & Leisure			72,000		447,738
a	Macau Legend Development Ltd.		Hotels, Restaurants & Leisure			55,000		6,104
	SJM Holdings Ltd.		Hotels, Restaurants & Leisure			65,000		61,771
	Wynn Macau Ltd.		Hotels, Restaurants & Leisure			50,000		97,584


								613,197

	Singapore 0.4%
	BOC Aviation Ltd.		Trading Companies & Distributors			7,000		64,603

	Taiwan 0.1%
	FIT Hon Teng Ltd.		Electronic Equipment, Instruments & Components			35,000		14,376

	Total Investments (Cost $18,470,227) 99.6%							17,663,014
	Other Assets, less Liabilities 0.4%							74,810

	Net Assets 100.0%						$	17,737,824

See Abbreviations on page 322.

^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 September 30, 2019, the value of this security was $255,211, representing 1.4% of net assets.



214	Semiannual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin FTSE Hong Kong ETF(continued)

At September 30, 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		1	$	33,293		12/30/19	$	(384	)
HKG Mini Hang Seng Index		Long		1		33,220		10/30/19		(1,500	)

Total Futures Contracts										(1,884	)

*As of period end.

See Note 7 regarding other derivative information.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Semiannual Report	215

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin FTSE India ETF


	Six Months Ended September 30, 2019 (unaudited)			Year Ended March 31,
	Six Months Ended September 30, 2019 (unaudited)			2019			2018^a

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

Net asset value, beginning of period	$	23.36		$	22.74		$	23.72


Income from investment operations^b:

Net investment income^c		0.15			0.29			0.09

Net realized and unrealized gains (losses)		(1.38	)		0.53			(1.07	)


Total from investment operations		(1.23	)		0.82			(0.98	)


Less distributions from net investment income		(0.18	)		(0.20	)		—


Net asset value, end of period	$	21.95		$	23.36		$	22.74


Total return^d		(5.33)%			3.66%			(4.13)%

Ratios to average net assets^e

Total expenses		0.19%			0.19%			0.19%

Net investment income		1.33%			1.33%			2.78%

Supplemental data

Net assets, end of period (000’s)		$15,366			$7,007			$2,274

Portfolio turnover rate^f		3.87%			8.03%			1.59%

Portfolio turnover rate excluding portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely or in part for cash^f,g		3.84%			0.00%			0.00%

^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.

^gEffective September 30, 2019.



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

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, September 30, 2019 (unaudited)

Franklin FTSE India ETF



		Industry			Shares		Value
	Common Stocks100.1%
	India 100.1%
a	3M India Ltd.		Industrial Conglomerates			56	$	16,334
	ABB India Ltd.		Electrical Equipment			1,456		31,133
	ACC Ltd.		Construction Materials			1,316		29,863
	Adani Enterprises Ltd.		Trading Companies & Distributors			7,672		15,789
	Adani Ports And Special Economic Zone Ltd.		Transportation Infrastructure			20,201		117,996
a	Adani Power Ltd.		Independent Power and Renewable Electricity Producers			26,698		24,223
a	Adani Transmissions Ltd.		Electric Utilities			7,868		25,380
a	Aditya Birla Capital Ltd.		Diversified Financial Services			14,868		17,801
	Alkem Laboratories Ltd.		Pharmaceuticals			1,148		30,861
	Ambuja Cements Ltd.		Construction Materials			22,358		64,343
	Ashok Leyland Ltd.		Machinery			33,922		32,884
	Asian Paints Ltd.		Chemicals			8,316		206,777
	AU Small Finance Bank Ltd.		Banks			4,074		37,912
	Aurobindo Pharma Ltd.		Pharmaceuticals			7,672		63,763
a	Avenue Supermarts Ltd.		Food & Staples Retailing			3,388		88,949
	Axis Bank Ltd.		Banks			52,906		511,376
	Bajaj Auto Ltd.		Automobiles			2,506		104,025
	Bajaj Finance Ltd.		Consumer Finance			5,012		286,146
	Bajaj Finserv Ltd.		Insurance			1,106		132,856
	Bajaj Holdings & Investment Ltd.		Diversified Financial Services			770		39,041
	Bandhan Bank Ltd.		Banks			3,402		23,613
a	Bank of Baroda		Banks			22,218		29,172
a	Bank of India		Banks			8,568		7,611
	Berger Paints India Ltd.		Chemicals			6,748		41,401
	Bharat Electronics Ltd.		Aerospace & Defense			17,038		26,037
	Bharat Forge Ltd.		Auto Components			5,390		33,948
	Bharat Heavy Electricals Ltd.		Electrical Equipment			24,346		16,627
	Bharat Petroleum Corp. Ltd.		Oil, Gas & Consumable Fuels			28,882		191,585
	Bharti Airtel Ltd.		Wireless Telecommunication Services			47,324		245,105
	Bharti Infratel Ltd.		Diversified Telecommunication Services			24,808		90,069
	Biocon Ltd.		Biotechnology			8,176		25,721
	Bosch Ltd.		Auto Components			199		39,491
	Britannia Industries Ltd.		Food Products			1,666		69,212
	Cadila Healthcare Ltd.		Pharmaceuticals			7,084		23,320
a	Canara Bank Ltd.		Banks			4,368		11,242
	Castrol India Ltd.		Chemicals			14,126		27,118
	Cholamandalam Investment and Finance Co. Ltd.		Consumer Finance			5,334		23,167
	Cipla Ltd.		Pharmaceuticals			9,310		55,898
	Coal India Ltd.		Oil, Gas & Consumable Fuels			41,944		118,282
	Colgate-Palmolive India Ltd.		Personal Products			1,904		40,406
	Container Corp. of India Ltd.		Road & Rail			6,020		51,371
	Cummins India Ltd.		Machinery			1,946		15,729
	Dabur India Ltd.		Personal Products			15,330		96,747
	Dalmia Bharat Ltd.		Construction Materials			1,302		15,113
	Divi’s Laboratories Ltd.		Life Sciences Tools & Services			2,310		54,288
	DLF Ltd.		Real Estate Management & Development			17,192		37,747
	Dr Reddy’s Laboratories Ltd.		Pharmaceuticals			2,352		89,682
	Eicher Motors Ltd.		Automobiles			392		98,265
	Emami Ltd.		Personal Products			3,122		14,035
	Embassy Office Parks REIT		Equity Real Estate Investment Trusts (REITs	)		3,200		18,131
	Exide Industries Ltd.		Auto Components			5,810		16,003
	Federal Bank Ltd.		Banks			42,462		54,164
a	Future Retail Ltd.		Multiline Retail			5,950		31,971
	GAIL India Ltd.		Gas Utilities			31,724		60,208
	Gillette India Ltd.		Personal Products			224		22,439
	GlaxoSmithKline Consumer Healthcare Ltd.		Food Products			294		35,382



franklintempleton.com	Semiannual Report	217

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin FTSE India ETF(continued)



		Industry		Shares		Value
	Common Stocks (continued)
	India(continued)
	Glenmark Pharmaceuticals Ltd.		Pharmaceuticals		3,990	$	18,301
a	GMR Infrastructure Ltd.		Construction & Engineering		40,544		9,726
	Godrej Consumer Products Ltd.		Personal Products		10,640		103,189
	Godrej Industries Ltd.		Industrial Conglomerates		1,974		11,376
a	Godrej Properties Ltd.		Real Estate Management & Development		1,736		25,444
	Grasim Industries Ltd.		Construction Materials		9,268		95,480
	Gruh Finance Ltd.		Thrifts & Mortgage Finance		8,442		32,085
	Havell’s India Ltd.		Electrical Equipment		6,958		70,524
	HCL Technologies Ltd.		IT Services		15,624		238,233
	HDFC Asset Management Co. Ltd.		Capital Markets		812		32,101
	HDFC Life Insurance Co. Ltd.		Insurance		13,160		111,631
a,b	Hemisphere Properties India Ltd.		Real Estate Management & Development		2,002		4,712
	Hero Motocorp Ltd.		Automobiles		2,828		107,932
	Hindalco Industries Ltd.		Metals & Mining		25,816		69,705
	Hindustan Petroleum Corp. Ltd.		Oil, Gas & Consumable Fuels		17,668		75,216
	Hindustan Unilever Ltd.		Household Products		20,468		572,418
	Hindustan Zinc Ltd.		Metals & Mining		6,874		20,704
	Housing Development Finance Corp. Ltd.		Thrifts & Mortgage Finance		49,728		1,387,278
	ICICI Bank Ltd.		Banks		9,240		56,547
c	ICICI Lombard General Insurance Co. Ltd., Reg S		Insurance		4,606		78,632
c	ICICI Prudential Life Insurance Co. Ltd., Reg S		Insurance		8,820		57,685
a	IDFC First Bank Ltd.		Banks		66,808		37,897
	IDFC Ltd.		Diversified Financial Services		7,504		3,642
	Indiabulls Housing Finance Ltd.		Thrifts & Mortgage Finance		9,464		34,174
	Indian Oil Corp. Ltd.		Oil, Gas & Consumable Fuels		61,264		127,423
	Info Edge India Ltd.		Interactive Media & Services		1,764		50,309
	Infosys Ltd.		IT Services		106,974		1,216,101
c	InterGlobe Aviation Ltd., Reg S		Airlines		2,772		73,913
	ITC Ltd.		Tobacco		85,078		311,950
a	Jindal Steel & Power Ltd.		Metals & Mining		11,662		17,040
	JSW Energy Ltd.		Independent Power and Renewable Electricity Producers		10,976		10,075
	JSW Steel Ltd.		Metals & Mining		33,992		110,295
	Kansai Nerolac Paints Ltd.		Chemicals		3,738		27,689
	L&T Finance Holdings Ltd.		Diversified Financial Services		13,930		16,658
c	Larsen & Toubro Infotech Ltd., Reg S		IT Services		826		17,614
	Larsen & Toubro Ltd.		Construction & Engineering		9,730		202,409
	LIC Housing Finance Ltd.		Thrifts & Mortgage Finance		7,168		38,096
	Lupin Ltd.		Pharmaceuticals		6,412		64,754
	Mahindra & Mahindra Financial Services Ltd.		Consumer Finance		8,512		39,396
	Mahindra & Mahindra Ltd.		Automobiles		16,800		129,706
	Mangalore Refinery and Petrochemicals Ltd.		Oil, Gas & Consumable Fuels		5,600		3,832
	Marico Ltd.		Personal Products		13,104		72,899
	Maruti Suzuki India Ltd.		Automobiles		3,486		330,347
	Motherson Sumi Systems Ltd.		Auto Components		27,300		40,429
	Mphasis Ltd.		IT Services		2,128		28,736
	MRF Ltd.		Auto Components		28		25,006
	Muthoot Finance Ltd.		Consumer Finance		2,758		26,304
	Nestle India Ltd.		Food Products		672		131,706
	NHPC Ltd.		Independent Power and Renewable Electricity Producers		69,734		21,943
	NMDC Ltd.		Metals & Mining		21,406		26,792
	NTPC Ltd.		Independent Power and Renewable Electricity Producers		68,643		113,810
	Oberoi Realty Ltd.		Real Estate Management & Development		2,534		18,150
	Oil & Natural Gas Corp. Ltd.		Oil, Gas & Consumable Fuels		87,290		162,340
	Oil India Ltd.		Oil, Gas & Consumable Fuels		7,546		15,466



218	Semiannual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin FTSE India ETF(continued)



		Industry		Shares		Value
	Common Stocks (continued)
	India(continued)
a	Oracle Financial Services Software Ltd.		Software		630	$	28,210
	Page Industries Ltd.		Textiles, Apparel & Luxury Goods		140		44,484
	Petronet LNG Ltd.		Oil, Gas & Consumable Fuels		15,246		55,912
	Pidilite Industries Ltd.		Chemicals		3,528		71,873
	Piramal Enterprises Ltd.		Pharmaceuticals		2,660		61,273
a	Power Finance Corp. Ltd.		Diversified Financial Services		18,354		25,743
	Power Grid Corp. of India Ltd.		Electric Utilities		14,602		41,013
a	Punjab National Bank Ltd.		Banks		26,586		23,240
	Rajesh Exports Ltd.		Textiles, Apparel & Luxury Goods		3,976		37,413
c	RBL Bank Ltd., Reg S		Banks		9,100		42,226
	REC Ltd.		Diversified Financial Services		19,068		33,135
	Reliance Industries Ltd.		Oil, Gas & Consumable Fuels		89,768		1,687,533
	SBI Life Insurance Co. Ltd.		Insurance		6,916		82,599
	Shree Cement Ltd.		Construction Materials		238		63,432
	Shriram Transport Finance Co. Ltd.		Consumer Finance		4,858		73,416
	Siemens Ltd.		Industrial Conglomerates		2,478		53,010
a	State Bank of India		Banks		51,590		197,133
	Steel Authority of India Ltd.		Metals & Mining		28,280		13,348
	Sun Pharmaceutical Industries Ltd.		Pharmaceuticals		31,654		173,950
	Sun TV Network Ltd.		Media		2,436		16,248
	Tata Communications Ltd.		Diversified Telecommunication Services		1,852		9,802
	Tata Consultancy Services Ltd.		IT Services		26,026		770,951
a	Tata Motors Ltd.		Automobiles		29,050		48,144
a	Tata Motors Ltd., A		Automobiles		11,200		8,392
	Tata Power Co. Ltd.		Electric Utilities		27,174		23,965
	Tata Steel Ltd.		Metals & Mining		7,826		39,810
	Tech Mahindra Ltd.		IT Services		13,398		135,079
	Titan Co. Ltd.		Textiles, Apparel & Luxury Goods		8,988		161,456
	Torrent Pharmaceuticals Ltd.		Pharmaceuticals		1,162		27,339
	Torrent Power Ltd.		Electric Utilities		3,332		13,517
	TVS Motor Co. Ltd.		Automobiles		3,290		19,591
	UltraTech Cement Ltd.		Construction Materials		3,010		184,385
a	Union Bank of India Ltd.		Banks		10,262		7,646
	United Breweries Ltd.		Beverages		1,932		36,725
a	United Spirits Ltd.		Beverages		8,582		80,772
	UPL Ltd.		Chemicals		15,487		131,982
	Vedanta Ltd.		Metals & Mining		48,188		104,816
a	Vodafone Idea Ltd.		Wireless Telecommunication Services		236,642		20,536
	Voltas Ltd.		Construction & Engineering		2,884		27,654
	Whirlpool of India Ltd.		Household Durables		868		23,117
	Wipro Ltd.		IT Services		41,692		141,074
a	Wockhardt Ltd.		Pharmaceuticals		854		3,090
	Yes Bank Ltd.		Banks		49,476		28,903
	Zee Entertainment Enterprises Ltd.		Media		15,358		57,537

	Total Common Stocks (Cost $15,298,184)						15,385,046

	Corporate Bonds & Notes (Cost $415) 0.0%^†
	India 0.0%^†
	Britannia Industries Ltd., senior secured note, first lien, 8.00%		Food Products		29,040		418

	Total Investments (Cost $15,298,599) 100.1%						15,385,464
	Other Assets, less Liabilities (0.1)%						(19,683	)

	Net Assets 100.0%					$	15,365,781



franklintempleton.com	Semiannual Report	219

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin FTSE India ETF(continued)

See Abbreviations on page 322.

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

^aNon-income producing.

^bFair valued using significant unobservable inputs. See Note 8 regarding fair value measurements.

At September 30, 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

23,076

10/31/19

(351

)

*As of period end.

See Note 7 regarding other derivative information.



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

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin FTSE Italy ETF


	Six Months Ended September 30, 2019 (unaudited)			Year Ended March 31,
	Six Months Ended September 30, 2019 (unaudited)			2019			2018^a

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

Net asset value, beginning of period	$	23.13		$	26.27		$	25.51


Income from investment operations^b:

Net investment income^c		0.78			0.46			0.11

Net realized and unrealized gains (losses)		(0.11	)		(2.99	)		0.70


Total from investment operations		0.67			(2.53	)		0.81


Less distributions from net investment income		(0.67	)		(0.61	)		(0.05	)


Net asset value, end of period	$	23.13		$	23.13		$	26.27


Total return^d		3.01%			(9.67)%			3.19%

Ratios to average net assets^e

Total expenses		0.09%			0.09%			0.09%

Net investment income		6.78%			2.05%			1.01%

Supplemental data

Net assets, end of period (000’s)		$11,563			$10,410			$2,627

Portfolio turnover rate^f		6.50%			16.67%			3.09%

Portfolio turnover rate excluding portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely or in part for cash^f,g		6.50%			—%			—%

^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.

^gEffective September 30, 2019.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Semiannual Report	221

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, September 30, 2019 (unaudited)

Franklin FTSE Italy ETF



		Industry		Shares		Value

	Common Stocks 100.0%
	Italy 91.4%
	A2A SpA		Multi-Utilities		54,490	$	100,038
	Amplifon SpA		Health Care Providers & Services		4,200		103,024
	Assicurazioni Generali SpA		Insurance		39,940		774,187
	Atlantia SpA		Transportation Infrastructure		16,500		399,160
	Banca Mediolanum SpA		Diversified Financial Services		10,110		75,941
a	Banco BPM SpA		Banks		53,510		109,323
	Buzzi Unicem SpA		Construction Materials		2,360		54,133
	Buzzi Unicem SpA, di Risp		Construction Materials		1,420		20,559
	Davide Campari-Milano SpA		Beverages		19,530		176,507
	DiaSorin SpA		Health Care Equipment & Supplies		790		91,896
	Enel SpA		Electric Utilities		234,430		1,750,948
	Eni SpA		Oil, Gas & Consumable Fuels		76,300		1,167,380
	Ferrari NV		Automobiles		3,450		532,396
	FinecoBank Banca Fineco SpA		Banks		21,460		227,219
	Hera SpA		Multi-Utilities		28,750		118,039
b	Infrastrutture Wireless Italiane SpA, Reg S		Diversified Telecommunication Services		8,440		87,596
	Intesa Sanpaolo SpA		Banks		457,370		1,084,758
	Italgas Reti SpA		Gas Utilities		13,390		86,448
	Leonardo SpA		Aerospace & Defense		13,630		160,333
a	Mediaset SpA		Media		10,870		32,020
	Mediobanca Banca di Credito Finanziario SpA		Banks		25,680		280,523
	Moncler SpA		Textiles, Apparel & Luxury Goods		6,440		229,583
	Pirelli & C SpA		Auto Components		15,180		89,829
b	Poste Italiane SpA, Reg S		Insurance		16,100		183,070
	Prysmian SpA		Electrical Equipment		8,820		189,427
	Recordati SpA		Pharmaceuticals		3,340		143,320
a	Saipem SpA		Energy Equipment & Services		19,810		89,670
	Salvatore Ferragamo SpA		Textiles, Apparel & Luxury Goods		2,360		43,623
	Snam SpA		Gas Utilities		74,300		375,363
a	Telecom Italia SpA/Milano		Diversified Telecommunication Services		371,800		212,194
	Telecom Italia SpA/Milano, di Risp		Diversified Telecommunication Services		210,750		115,247
	Tenaris SA		Energy Equipment & Services		16,500		175,098
	Terna Rete Elettrica Nazionale SpA		Electric Utilities		49,790		319,933
	UniCredit SpA		Banks		69,070		814,747
	Unione di Banche Italiane SpA		Banks		33,720		94,698
	UnipolSai Assicurazioni SpA		Insurance		20,440		54,372

							10,562,602

	Netherlands 2.1%
	EXOR NV		Diversified Financial Services		3,680		246,654

	United Kingdom 6.5%
	CNH Industrial NV		Machinery		32,480		330,727
	Fiat Chrysler Automobiles NV		Automobiles		32,470		420,254


							750,981

	Total Investments (Cost $10,967,451) 100.0%						11,560,237
	Other Assets, less Liabilities 0.0%^†						3,038

	Net Assets 100.0%					$	11,563,275

See Abbreviations on page 322.

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

^aNon-income producing.



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

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin FTSE Japan ETF


	Six Months Ended September 30, 2019 (unaudited)			Year Ended March 31,
	Six Months Ended September 30, 2019 (unaudited)			2019			2018^a

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

Net asset value, beginning of period	$	24.18		$	26.69		$	25.91


Income from investment operations^b:

Net investment income^c		0.22			0.59			0.44

Net realized and unrealized gains (losses)		0.63			(2.76	)		0.37


Total from investment operations		0.85			(2.17	)		0.81


Less distributions from net investment income		(0.29	)		(0.34	)		(0.03	)


Net asset value, end of period	$	24.74		$	24.18		$	26.69


Total return^d		3.61%			(8.10)%			3.11%

Ratios to average net assets^e

Total expenses		0.09%			0.09%			0.09%

Net investment income		1.82%			2.39%			4.07%

Supplemental data

Net assets, end of period (000’s)		$207,857			$290,205			$96,082

Portfolio turnover rate^f		3.32%			4.35%			0.93%

Portfolio turnover rate excluding portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely or in part for cash^f,g		3.27%			0.00%			0.00%

^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.

^gEffective September 30, 2019.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Semiannual Report	223

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, September 30, 2019 (unaudited)

Franklin FTSE Japan ETF



	Industry		Shares		Value
Common Stocks 99.1%
Japan 99.1%
ABC-Mart Inc.		Specialty Retail		1,400	$	88,994
Acom Co. Ltd.		Consumer Finance		21,000		82,387
Advantest Corp.		Semiconductors & Semiconductor Equipment		11,200		494,842
AEON Co. Ltd.		Food & Staples Retailing		39,200		718,349
AEON Financial Service Co. Ltd.		Consumer Finance		7,000		105,316
AEON Mall Co. Ltd.		Real Estate Management & Development		7,000		110,433
AGC Inc.		Building Products		9,800		303,771
Aica Kogyo Co. Ltd.		Building Products		2,800		82,387
AIN Holdings Inc.		Food & Staples Retailing		1,400		81,480
Air Water Inc.		Chemicals		8,400		150,162
Aisin Seiki Co. Ltd.		Auto Components		9,800		307,851
Ajinomoto Co. Inc.		Food Products		26,600		502,096
Alfresa Holdings Corp.		Health Care Providers & Services		9,800		218,805
Alps Alpine Co. Ltd.		Electronic Equipment, Instruments & Components		11,200		209,025
Amada Holdings Co. Ltd.		Machinery		18,200		196,019
Amano Corp.		Electronic Equipment, Instruments & Components		2,800		85,237
ANA Holdings Inc.		Airlines		5,600		188,299
Anritsu Corp.		Electronic Equipment, Instruments & Components		7,000		137,247
Aozora Bank Ltd.		Banks		5,600		140,006
Ariake Japan Co. Ltd.		Food Products		1,400		109,072
Asahi Group Holdings Ltd.		Beverages		21,000		1,039,556
Asahi Intecc Co. Ltd.		Health Care Equipment & Supplies		11,200		294,003
Asahi Kasei Corp.		Chemicals		70,000		689,151
Asics Corp.		Textiles, Apparel & Luxury Goods		9,800		167,300
ASKUL Corp.		Internet & Direct Marketing Retail		1,400		37,813
Astellas Pharma Inc.		Pharmaceuticals		105,000		1,494,726
Autobacs Seven Co. Ltd.		Specialty Retail		2,800		45,805
Azbil Corp.		Electronic Equipment, Instruments & Components		7,000		187,120
Bandai Namco Holdings Inc.		Leisure Products		11,200		697,442
Benefit One Inc.		Professional Services		2,800		52,904
Benesse Holdings Inc.		Diversified Consumer Services		4,200		109,047
BIC CAMERA Inc.		Specialty Retail		8,400		88,372
Bridgestone Corp.		Auto Components		33,600		1,300,786
Brother Industries Ltd.		Technology Hardware, Storage & Peripherals		12,600		228,042
Calbee Inc.		Food Products		4,200		130,576
CANON Inc.		Technology Hardware, Storage & Peripherals		56,000		1,493,592
Canon Marketing Japan Inc.		Electronic Equipment, Instruments & Components		2,800		59,433
Capcom Co. Ltd.		Entertainment		5,600		148,349
Casio Computer Co. Ltd.		Household Durables		12,600		195,281
Central Japan Railway Co.		Road & Rail		10,000		2,055,980
Chubu Electric Power Co. Inc.		Electric Utilities		37,800		547,370
Chugai Pharmaceutical Co. Ltd.		Pharmaceuticals		12,600		979,320
Chuo Mitsui Trust Holdings Inc.		Banks		21,000		757,030
Citizen Watch Co. Ltd.		Electronic Equipment, Instruments & Components		15,400		75,237
Coca-Cola Bottlers Japan Holdings Inc.		Beverages		8,400		188,403
COMSYS Holdings Corp.		Construction & Engineering		7,000		198,196
Concordia Financial Group Ltd.		Banks		65,800		252,058
Cosmo Energy Holdings Co. Ltd.		Oil, Gas & Consumable Fuels		4,200		86,468
Cosmos Pharmaceutical Corp.		Food & Staples Retailing		500		97,849
Credit Saison Co. Ltd.		Consumer Finance		8,400		112,622
CyberAgent Inc.		Media		5,600		215,036
Dai Nippon Printing Co. Ltd.		Commercial Services & Supplies		16,800		433,854
Daicel Corp.		Chemicals		15,400		130,097
Daido Steel Co. Ltd.		Metals & Mining		1,400		54,860
Daifuku Co. Ltd.		Machinery		5,600		288,614
Daiichi Sankyo Co. Ltd.		Pharmaceuticals		35,000		2,203,470
Daiichikosho Co. Ltd.		Entertainment		2,800		129,281



224	Semiannual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin FTSE Japan ETF(continued)



	Industry		Shares		Value
Common Stocks (continued)
Japan (continued)
Daikin Industries Ltd.		Building Products		14,600	$	1,915,596
Daishi Hokuetsu Financial Group Inc.		Banks		2,800		70,418
Daito Trust Construction Co. Ltd.		Real Estate Management & Development		3,708		473,814
Daiwa House Industry Co. Ltd.		Real Estate Management & Development		36,400		1,180,832
Daiwa Securities Group Inc.		Capital Markets		84,000		374,162
DeNA Co. Ltd.		Entertainment		5,600		98,813
Denka Co. Ltd.		Chemicals		4,200		115,459
Denso Corp.		Auto Components		25,200		1,107,331
Dentsu Inc.		Media		12,600		443,609
DIC Corp.		Chemicals		4,200		116,508
Disco Corp.		Semiconductors & Semiconductor Equipment		1,567		296,653
DMG Mori Co. Ltd.		Machinery		5,600		79,330
Dowa Holdings Co. Ltd.		Metals & Mining		2,800		95,600
East Japan Railway Co.		Road & Rail		20,400		1,946,093
EBARA Corp.		Machinery		5,600		149,074
Eisai Co. Ltd.		Pharmaceuticals		14,000		711,302
Electric Power Development Co. Ltd.		Independent Power and Renewable Electricity Producers		9,800		223,521
Ezaki Glico Co. Ltd.		Food Products		2,800		116,197
FamilyMart Co. Ltd.		Food & Staples Retailing		12,600		306,970
Fancl Corp.		Personal Products		4,200		111,650
FANUC Corp.		Machinery		11,200		2,107,870
Fast Retailing Co. Ltd.		Specialty Retail		2,800		1,663,548
FP Corp.		Containers & Packaging		1,400		87,310
Fuji Electric Co. Ltd.		Electrical Equipment		7,000		214,064
Fuji Media Holdings Inc.		Media		2,800		36,038
Fuji Oil Holdings Inc.		Food Products		2,800		81,092
Fuji Seal International Inc.		Containers & Packaging		2,800		70,703
FUJIFILM Holdings Corp.		Technology Hardware, Storage & Peripherals		19,600		859,625
Fujikura Ltd.		Electrical Equipment		15,400		58,992
Fujitsu General Ltd.		Household Durables		2,800		46,608
Fujitsu Ltd.		IT Services		11,200		896,933
Fukuoka Financial Group Inc.		Banks		8,400		158,634
Fukuyama Transporting Co. Ltd.		Road & Rail		1,400		49,096
Furukawa Electric Co. Ltd.		Electrical Equipment		2,800		67,335
Fuyo General Lease Co. Ltd.		Diversified Financial Services		1,400		83,942
Glory Ltd.		Machinery		2,800		78,501
GMO Internet Inc.		IT Services		2,800		48,085
GMO Payment Gateway Inc.		IT Services		2,500		167,245
Goldwin Inc.		Textiles, Apparel & Luxury Goods		2,000		171,362
GS Yuasa Corp.		Electrical Equipment		4,200		72,555
GungHo Online Entertainment Inc.		Entertainment		2,250		51,006
Gunma Bank Ltd.		Banks		23,800		77,076
H2O Retailing Corp.		Multiline Retail		4,200		45,896
Hachijuni Bank Ltd.		Banks		23,800		96,896
Hakuhodo DY Holdings Inc.		Media		14,000		202,211
Hamamatsu Photonics K.K.		Electronic Equipment, Instruments & Components		7,000		259,727
Hankyu Hanshin Holdings Inc.		Road & Rail		12,600		485,579
Haseko Corp.		Household Durables		15,400		179,257
Heiwa Corp.		Leisure Products		2,800		57,645
Hikari Tsushin Inc.		Specialty Retail		1,400		302,864
Hino Motors Ltd.		Machinery		15,400		126,819
Hirose Electric Co. Ltd.		Electronic Equipment, Instruments & Components		1,800		220,514
HIS Co. Ltd.		Hotels, Restaurants & Leisure		1,400		34,755
Hisamitsu Pharmaceutical Co. Inc.		Pharmaceuticals		4,200		183,622
Hitachi Capital Corp.		Consumer Finance		2,800		56,868
Hitachi Chemical Co. Ltd.		Chemicals		5,600		182,651
Hitachi Construction Machinery Co. Ltd.		Machinery		5,600		134,980



franklintempleton.com	Semiannual Report	225

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin FTSE Japan ETF(continued)



		Industry		Shares		Value
	Common Stocks (continued)
	Japan (continued)
	Hitachi High-Technologies Corp.		Electronic Equipment, Instruments & Components		4,200	$	242,498
	Hitachi Ltd.		Electronic Equipment, Instruments & Components		51,800		1,928,211
	Hitachi Metals Ltd.		Metals & Mining		11,200		120,835
	Hitachi Transport System Ltd.		Road & Rail		2,800		81,869
	Hokkaido Electric Power Co. Inc.		Electric Utilities		9,800		51,596
	Hokugin Financial Group Inc.		Banks		7,000		67,684
a	Hokuriku Electric Power Co.		Electric Utilities		9,800		65,832
	Honda Motor Co. Ltd.		Automobiles		96,600		2,501,366
	HORIBA Ltd.		Electronic Equipment, Instruments & Components		2,800		161,666
	Hoshizaki Corp.		Machinery		2,800		219,958
	House Foods Group Inc.		Food Products		4,200		157,002
	Hoya Corp.		Health Care Equipment & Supplies		21,000		1,713,616
	Ibiden Co. Ltd.		Electronic Equipment, Instruments & Components		5,600		112,700
	Ichigo Inc.		Real Estate Management & Development		9,800		39,445
	Idemitsu Kosan Co. Ltd.		Oil, Gas & Consumable Fuels		12,600		356,169
	IHI Corp.		Machinery		7,000		152,080
	Iida Group Holdings Co. Ltd.		Household Durables		8,400		136,638
	INPEX Corp.		Oil, Gas & Consumable Fuels		51,800		475,031
	Isetan Mitsukoshi Holdings Ltd.		Multiline Retail		19,600		156,328
	Isuzu Motors Ltd.		Automobiles		29,400		323,856
	Ito En Ltd.		Beverages		2,800		131,871
	ITOCHU Corp.		Trading Companies & Distributors		77,000		1,589,517
	ITOCHU Techno-Solutions Corp.		IT Services		5,600		148,297
	Itoham Yonekyu Holdings Inc.		Food Products		8,400		52,697
	Izumi Co. Ltd.		Multiline Retail		2,800		109,591
	J Front Retailing Co. Ltd.		Multiline Retail		14,000		163,738
	Japan Airlines Co. Ltd.		Airlines		7,000		208,041
	Japan Airport Terminal Co. Ltd.		Transportation Infrastructure		2,800		121,249
	Japan Aviatn Elect		Electronic Equipment, Instruments & Components		1,400		19,833
	Japan Exchange Group Inc.		Capital Markets		29,400		462,185
	Japan Petroleum Exploration Co. Ltd.		Oil, Gas & Consumable Fuels		1,400		35,481
	Japan Post Bank Co. Ltd.		Banks		22,400		217,005
	Japan Post Holdings Co. Ltd.		Insurance		74,200		683,127
	Japan Post Insurance Co. Ltd.		Insurance		11,200		168,920
	Japan Tobacco Inc.		Tobacco		65,800		1,440,507
	JFE Holdings Inc.		Metals & Mining		28,000		336,803
	JGC Holdings Corp.		Construction & Engineering		12,600		164,736
	JSR Corp.		Chemicals		11,200		179,179
	JTEKT Corp.		Machinery		12,600		144,450
	Justsystems Corp.		Software		1,400		52,982
	JXTG Holdings Inc.		Oil, Gas & Consumable Fuels		172,200		784,560
	K’s Holdings Corp.		Specialty Retail		11,200		121,871
	Kagome Co. Ltd.		Food Products		4,200		106,054
	Kajima Corp.		Construction & Engineering		25,200		330,404
	Kakaku.com Inc.		Interactive Media & Services		7,000		172,158
	Kaken Pharmaceutical Co. Ltd.		Pharmaceuticals		1,400		64,899
	Kamigumi Co. Ltd.		Transportation Infrastructure		5,600		126,845
	Kandenko Co. Ltd.		Construction & Engineering		5,600		50,054
	Kaneka Corp.		Chemicals		2,800		87,180
	Kansai Electric Power Co. Inc.		Electric Utilities		40,600		453,991
	Kansai Mirai Financial Group Inc		Banks		8,400		52,774
	Kansai Paint Co. Ltd.		Chemicals		11,200		260,219
	KAO Corp.		Personal Products		26,354		1,946,892
	Kawasaki Heavy Industries Ltd.		Machinery		8,400		185,915
a	Kawasaki Kisen Kaisha Ltd.		Marine		4,200		48,849
	KDDI Corp.		Wireless Telecommunication Services		96,600		2,525,052
	Keihan Holdings Co. Ltd.		Industrial Conglomerates		5,600		248,975
	Keikyu Corp.		Road & Rail		14,000		271,386



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FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin FTSE Japan ETF(continued)



		Industry		Shares		Value
	Common Stocks (continued)
	Japan (continued)
	Keio Corp.		Road & Rail		7,000	$	435,901
	Keisei Electric Railway Co. Ltd.		Road & Rail		8,400		345,482
	Kewpie Corp.		Food Products		5,600		130,731
	Keyence Corp.		Electronic Equipment, Instruments & Components		5,026		3,111,167
	Kikkoman Corp.		Food Products		9,800		467,897
	Kinden Corp.		Construction & Engineering		7,000		103,826
	Kintetsu Group Holdings Co. Ltd.		Road & Rail		9,800		510,516
	Kirin Holdings Co. Ltd.		Beverages		44,800		948,438
	Kissei Pharmaceutical Co. Ltd.		Pharmaceuticals		1,400		33,693
	Kobayashi Pharmaceutical Co. Ltd.		Personal Products		3,500		266,204
	Kobe Bussan Co Ltd		Food & Staples Retailing		800		38,788
	Kobe Steel Ltd.		Metals & Mining		16,800		89,538
	Koei Tecmo Holdings Co. Ltd.		Entertainment		2,800		60,806
	Koito Manufacturing Co. Ltd.		Auto Components		7,000		341,985
	Kokuyo Co. Ltd.		Commercial Services & Supplies		4,200		58,604
	Komatsu Ltd.		Machinery		50,400		1,154,198
	Konami Holdings Corp.		Entertainment		5,600		270,479
	Konica Minolta Inc.		Technology Hardware, Storage & Peripherals		25,200		175,345
	KOSE Corp.		Personal Products		1,400		236,410
	Kubota Corp.		Machinery		61,600		931,623
	Kuraray Co. Ltd.		Chemicals		19,600		240,659
	Kurita Water Industries Ltd.		Machinery		5,600		149,903
	Kusuri No Aoki Holdings Co. Ltd.		Food & Staples Retailing		1,000		68,101
	Kyocera Corp.		Electronic Equipment, Instruments & Components		16,800		1,042,276
	Kyoritsu Maintenance Co. Ltd.		Hotels, Restaurants & Leisure		1,400		59,912
	Kyowa Exeo Corp.		Construction & Engineering		5,600		135,758
	Kyowa Kirin Co. Ltd.		Pharmaceuticals		14,000		271,774
	Kyudenko Corp.		Construction & Engineering		2,800		93,269
	Kyushu Electric Power Co. Inc.		Electric Utilities		25,200		237,835
	Kyushu Financial Group Inc.		Banks		22,400		91,196
	Kyushu Railway Co.		Road & Rail		8,400		267,759
	Lawson Inc.		Food & Staples Retailing		2,800		143,271
a	Line Corp.		Interactive Media & Services		2,800		100,134
	LINTEC Corp.		Chemicals		2,800		55,365
	Lion Corp.		Household Products		14,000		276,049
	LIXIL Group Corp.		Building Products		14,000		246,125
	M3 Inc.		Health Care Technology		23,800		573,006
	Mabuchi Motor Co. Ltd.		Electrical Equipment		2,800		104,279
	Maeda Corp.		Construction & Engineering		7,000		61,013
	Maeda Road Construction Co. Ltd.		Construction & Engineering		2,800		60,884
	Makita Corp.		Machinery		14,000		440,435
	Mani Inc.		Health Care Equipment & Supplies		2,800		73,604
	Marubeni Corp.		Trading Companies & Distributors		85,400		567,121
	Maruha Nichiro Corp.		Food Products		1,400		35,287
	Marui Group Co. Ltd.		Multiline Retail		11,200		236,488
	Maruichi Steel Tube Ltd.		Metals & Mining		4,200		110,873
	Matsui Securities Co. Ltd.		Capital Markets		7,000		58,811
	Matsumotokiyoshi Holdings Co. Ltd.		Food & Staples Retailing		4,200		153,699
	Mazda Motor Corp.		Automobiles		32,200		285,875
	Mebuki Financial Group Inc.		Banks		57,400		141,276
	Medipal Holdings Corp.		Health Care Providers & Services		8,400		187,003
	Megmilk Snow Brand Co. Ltd.		Food Products		2,800		67,387
	Meiji Holdings Co. Ltd.		Food Products		7,000		510,386
	Minebea Mitsumi Inc.		Machinery		22,400		354,628
	Miraca Holdings Inc.		Health Care Providers & Services		2,800		63,785
	MISUMI Group Inc.		Machinery		15,400		362,361
	Mitsubishi Chemical Holdings Corp.		Chemicals		72,800		518,744
	Mitsubishi Corp.		Trading Companies & Distributors		71,400		1,751,389



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STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin FTSE Japan ETF(continued)



		Industry		Shares		Value
	Common Stocks (continued)
	Japan (continued)
	Mitsubishi Electric Corp.		Electrical Equipment		109,200	$	1,447,412
	Mitsubishi Estate Co. Ltd.		Real Estate Management & Development		65,800		1,268,815
	Mitsubishi Gas Chemical Co. Inc.		Chemicals		9,800		130,757
	Mitsubishi Heavy Industries Ltd.		Machinery		15,400		603,033
	Mitsubishi Logistics Corp.		Transportation Infrastructure		4,200		106,754
	Mitsubishi Materials Corp.		Metals & Mining		7,000		188,804
	Mitsubishi Motors Corp.		Automobiles		35,000		151,885
	Mitsubishi Shokuhin Co. Ltd.		Food & Staples Retailing		1,400		35,040
	Mitsubishi Tanabe Pharma Corp.		Pharmaceuticals		12,600		138,154
	Mitsubishi UFJ Financial Group Inc.		Banks		694,400		3,523,562
	Mitsubishi UFJ Lease & Finance Co. Ltd.		Diversified Financial Services		25,200		145,499
	Mitsui & Co. Ltd.		Trading Companies & Distributors		93,800		1,534,475
	Mitsui Chemicals Inc.		Chemicals		9,800		219,077
	Mitsui Fudosan Co. Ltd.		Real Estate Management & Development		51,800		1,284,036
	Mitsui Mining and Smelting Co. Ltd.		Metals & Mining		2,800		66,143
	Mitsui O.S.K. Lines Ltd.		Marine		5,600		141,457
	Miura Co. Ltd.		Machinery		5,600		155,966
	Mizuho Financial Group Inc.		Banks		1,409,800		2,160,193
	Mochida Pharmaceutical Co. Ltd.		Pharmaceuticals		1,400		53,500
	Monotaro Co. Ltd.		Trading Companies & Distributors		7,000		183,040
	Morinaga & Co. Ltd.		Food Products		2,800		136,017
	Morinaga Milk Industry Co. Ltd.		Food Products		2,800		106,741
	MS&AD Insurance Group Holdings Inc.		Insurance		26,600		861,439
	Murata Manufacturing Co. Ltd.		Electronic Equipment, Instruments & Components		32,200		1,544,825
	Nabtesco Corp.		Machinery		7,000		216,655
	Nagase & Co. Ltd.		Trading Companies & Distributors		5,600		78,035
	Nagoya Railroad Co. Ltd.		Road & Rail		11,200		334,731
	Nankai Electric Railway Co. Ltd.		Road & Rail		5,600		141,716
	NEC Corp.		Technology Hardware, Storage & Peripherals		14,000		590,701
	Net One Systems Co. Ltd.		IT Services		4,200		113,205
a	Nexon Co. Ltd.		Entertainment		22,400		271,722
	NGK Insulators Ltd.		Machinery		15,400		219,298
	NGK Spark Plug Co. Ltd.		Auto Components		11,200		213,274
	NH Foods Ltd.		Food Products		5,600		225,140
	NHK Spring Co. Ltd.		Auto Components		8,400		64,044
	Nichirei Corp.		Food Products		5,600		127,674
	Nidec Corp.		Electrical Equipment		13,000		1,746,565
	Nifco Inc.		Auto Components		4,200		100,303
	Nihon Kohden Corp.		Health Care Equipment & Supplies		4,200		123,387
	Nihon M&A Center Inc.		Professional Services		7,000		196,900
	Nihon Unisys Ltd.		IT Services		4,200		135,239
	Nikon Corp.		Household Durables		19,600		244,467
	Nintendo Co. Ltd.		Entertainment		6,000		2,221,790
	Nippo Corp.		Construction & Engineering		2,800		51,790
	Nippon Electric Glass Co. Ltd.		Electronic Equipment, Instruments & Components		4,200		93,424
	Nippon Express Co. Ltd.		Road & Rail		4,200		214,129
	Nippon Kayaku Co. Ltd.		Chemicals		9,800		116,974
	Nippon Paint Holdings Co. Ltd.		Chemicals		8,400		436,031
	Nippon Paper Industries Co. Ltd.		Paper & Forest Products		5,600		91,144
	Nippon Shinyaku Co. Ltd.		Pharmaceuticals		2,800		235,503
	Nippon Shobukai Co. Ltd.		Chemicals		1,400		79,537
	Nippon Steel Corp.		Metals & Mining		46,200		643,573
	Nippon Telegraph & Telephone Corp.		Diversified Telecommunication Services		35,000		1,669,766
	Nippon Television Holdings Inc.		Media		1,400		17,928
	Nippon Yusen KK		Marine		9,800		163,673
	Nipro Corp.		Health Care Equipment & Supplies		7,000		78,566
	Nishi-Nippon Financial Holdings Inc.		Banks		8,400		58,837
	Nishi-Nippon Railroad Co. Ltd.		Road & Rail		4,200		92,180



228	Semiannual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin FTSE Japan ETF(continued)



		Industry		Shares		Value
	Common Stocks (continued)
	Japan (continued)
	Nissan Chemical Corp.		Chemicals		7,000	$	291,140
	Nissan Motor Co. Ltd.		Automobiles		106,400		663,652
	Nissan Shatai Co. Ltd.		Automobiles		2,800		22,669
	Nisshin Seifun Group Inc.		Food Products		14,000		258,820
	Nisshinbo Holdings Inc.		Industrial Conglomerates		7,000		54,536
	Nissin Foods Holdings Co. Ltd.		Food Products		4,200		303,123
	Nitori Co. Ltd.		Specialty Retail		4,200		614,407
	Nitto Denko Corp.		Chemicals		8,400		404,475
	Noevir Holdings Co. Ltd.		Personal Products		1,400		73,060
	NOF Corp.		Chemicals		4,200		138,154
	NOK Corp.		Auto Components		7,000		103,761
	Nomura Holdings Inc.		Capital Markets		183,400		777,042
	Nomura Real Estate Holdings Inc.		Real Estate Management & Development		7,000		151,173
	Nomura Research Institute Ltd.		IT Services		14,000		278,640
	NS Solutions Corp.		IT Services		1,400		45,663
	NSK Ltd.		Machinery		23,800		200,398
	NTN Corp.		Machinery		21,000		60,236
	NTT Data Corp.		IT Services		35,000		451,446
	NTT DOCOMO Inc.		Wireless Telecommunication Services		64,400		1,640,464
	Obayashi Corp.		Construction & Engineering		37,800		376,339
	OBIC Business Consultants Co. Ltd.		Software		1,400		56,674
	OBIC Co. Ltd.		IT Services		3,900		444,580
	Odakyu Electric Railway Co. Ltd.		Road & Rail		16,800		402,298
	Oji Holdings Corp.		Paper & Forest Products		51,800		241,566
	Okuma Corp.		Machinery		1,400		75,781
	Olympus Corp.		Health Care Equipment & Supplies		61,600		829,883
	Omron Corp.		Electronic Equipment, Instruments & Components		11,200		612,464
	Ono Pharmaceutical Co. Ltd.		Pharmaceuticals		23,800		430,966
	Open House Co. Ltd.		Real Estate Management & Development		2,800		66,687
	Oracle Corp. Japan		Software		1,895		164,295
	Orient Corp.		Consumer Finance		32,200		43,201
	Oriental Land Co. Ltd.		Hotels, Restaurants & Leisure		10,400		1,582,012
	ORIX Corp.		Diversified Financial Services		71,400		1,064,311
	Osaka Gas Co. Ltd.		Gas Utilities		21,000		401,638
	OSG Corp.		Machinery		4,200		86,817
	Otsuka Corp.		IT Services		5,600		223,067
	Otsuka Holdings Co. Ltd.		Pharmaceuticals		23,800		889,678
	Paltac Corp.		Distributors		1,400		68,397
	Pan Pacific International Holdings Corp.		Multiline Retail		28,000		467,638
	Panasonic Corp.		Household Durables		117,600		952,769
	Park24 Co. Ltd.		Commercial Services & Supplies		5,600		129,954
	Penta-Ocean Construction Co. Ltd.		Construction & Engineering		15,400		85,211
a	PeptiDream Inc.		Biotechnology		4,200		199,362
	Persol Holdings Co. Ltd.		Professional Services		9,800		185,164
	Pigeon Corp.		Household Products		5,600		230,840
	Pilot Corp.		Commercial Services & Supplies		1,400		51,816
	Pola Orbis Holdings Inc.		Personal Products		4,200		94,007
	Rakuten Inc.		Internet & Direct Marketing Retail		44,800		441,471
	Recruit Holdings Co. Ltd.		Professional Services		71,400		2,170,904
	Relo Group Inc.		Real Estate Management & Development		5,600		137,208
a	Renesas Electronics Corp.		Semiconductors & Semiconductor Equipment		39,200		254,623
	Rengo Co. Ltd.		Containers & Packaging		11,200		80,625
	Resona Holdings Inc.		Banks		121,800		521,799
	Resorttrust Inc.		Hotels, Restaurants & Leisure		4,200		67,931
	Ricoh Co. Ltd.		Technology Hardware, Storage & Peripherals		37,800		340,314
	Rinnai Corp.		Household Durables		1,400		94,046
	Rohm Co. Ltd.		Semiconductors & Semiconductor Equipment		5,000		381,679
	Rohto Pharmaceutical Co. Ltd.		Personal Products		5,600		152,753



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STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin FTSE Japan ETF(continued)



	Industry		Shares		Value
Common Stocks (continued)
Japan (continued)
Ryohin Keikaku Co. Ltd.		Multiline Retail		14,000	$	261,411
Sankyo Co. Ltd.		Leisure Products		2,800		96,248
Sankyu Inc.		Road & Rail		2,800		145,344
Sanrio Co. Ltd.		Specialty Retail		2,800		53,914
Santen Pharmaceutical Co. Ltd.		Pharmaceuticals		19,600		340,586
Sanwa Holdings Corp.		Building Products		11,200		125,187
Sapporo Holdings Ltd.		Beverages		4,200		104,694
Sawai Pharmaceutical Co. Ltd.		Pharmaceuticals		1,400		72,283
SBI Holdings Inc.		Capital Markets		12,600		269,430
SCREEN Holdings Co. Ltd.		Semiconductors & Semiconductor Equipment		2,000		117,881
SCSK Corp.		IT Services		1,400		65,677
Secom Co. Ltd.		Commercial Services & Supplies		11,200		1,021,602
Sega Sammy Holdings Inc.		Leisure Products		11,200		156,691
Seibu Holdings Inc.		Road & Rail		12,600		219,531
Seiko Epson Corp.		Technology Hardware, Storage & Peripherals		15,400		216,590
Seino Holdings Co. Ltd.		Road & Rail		8,400		105,083
Sekisui Chemical Co. Ltd.		Household Durables		19,600		303,408
Sekisui House Ltd.		Household Durables		32,200		633,125
Seven & i Holdings Co. Ltd.		Food & Staples Retailing		43,400		1,659,300
Seven Bank Ltd.		Banks		36,400		99,694
SG Holdings Co. Ltd.		Air Freight & Logistics		11,200		274,106
Sharp Corp.		Household Durables		8,400		92,880
Shikoku Electric Power Co. Inc.		Electric Utilities		8,400		79,201
Shimadzu Corp.		Electronic Equipment, Instruments & Components		15,400		388,723
Shimamura Co. Ltd.		Specialty Retail		1,400		110,886
SHIMANO Inc.		Leisure Products		4,200		632,672
Shimizu Corp.		Construction & Engineering		32,200		291,387
Shin-Etsu Chemical Co. Ltd.		Chemicals		22,400		2,395,966
Shinsei Bank Ltd.		Banks		9,800		142,727
Shionogi & Co. Ltd.		Pharmaceuticals		15,400		854,819
Shiseido Co. Ltd.		Personal Products		21,700		1,732,587
SHO-BOND Holdings Co. Ltd.		Construction & Engineering		2,800		98,191
Shochiku Co. Ltd.		Entertainment		495		64,122
Shoei Co. Ltd.		Real Estate Management & Development		21,000		214,712
Showa Denko K.K.		Chemicals		8,400		219,570
Sky Perfect JSAT Holdings Inc.		Media		7,000		28,304
Skylark Holdings Co. Ltd.		Hotels, Restaurants & Leisure		11,200		203,740
SMC Corp.		Machinery		3,213		1,370,523
Softbank Corp.		Wireless Telecommunication Services		89,600		1,213,735
SoftBank Group Corp.		Wireless Telecommunication Services		91,000		3,570,113
Sohgo Security Services Co. Ltd.		Commercial Services & Supplies		4,200		219,958
Sojitz Corp.		Trading Companies & Distributors		70,000		216,979
Sompo Holdings Inc.		Insurance		19,600		819,183
Sony Corp.		Household Durables		70,000		4,110,941
Sony Financial Holdings Inc.		Insurance		8,400		182,029
Sotetsu Holdings Inc.		Road & Rail		4,200		109,707
Square Enix Holdings Co. Ltd.		Entertainment		4,200		204,025
Stanley Electric Co. Ltd.		Auto Components		8,400		221,979
Subaru Corp.		Automobiles		33,600		945,121
Sugi Pharmacy Co. Ltd.		Food & Staples Retailing		1,400		75,781
Sumco Corp.		Semiconductors & Semiconductor Equipment		12,600		169,049
Sumitomo Bakelite Co. Ltd.		Chemicals		1,400		54,666
Sumitomo Chemical Co. Ltd.		Chemicals		84,000		376,960
Sumitomo Corp.		Trading Companies & Distributors		61,600		962,117
Sumitomo Dainippon Pharma Co. Ltd.		Pharmaceuticals		9,800		160,953
Sumitomo Electric Industries Ltd.		Auto Components		42,000		532,797
Sumitomo Forestry Co. Ltd.		Household Durables		7,000		93,009
Sumitomo Heavy Industries Ltd.		Machinery		7,000		207,263



230	Semiannual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin FTSE Japan ETF(continued)



		Industry		Shares		Value
	Common Stocks (continued)
	Japan (continued)
	Sumitomo Metal Mining Co. Ltd.		Metals & Mining		14,000	$	433,569
	Sumitomo Mitsui Financial Group Inc.		Banks		72,800		2,488,975
	Sumitomo Osaka Cement Co. Ltd.		Construction Materials		1,400		59,912
	Sumitomo Realty & Development Co. Ltd.		Real Estate Management & Development		21,000		799,195
	Sumitomo Rubber Industries Ltd.		Auto Components		11,200		132,856
	Sundrug Co. Ltd.		Food & Staples Retailing		4,200		132,130
	Suntory Beverage & Food Ltd.		Beverages		7,000		299,237
	Suzuken Co. Ltd.		Health Care Providers & Services		4,200		225,399
	Suzuki Motor Corp.		Automobiles		23,800		1,010,137
	Sysmex Corp.		Health Care Equipment & Supplies		10,400		695,932
	T&D Holdings Inc.		Insurance		30,800		326,310
	Tadano Ltd.		Machinery		5,600		53,319
	Taiheiyo Cement Corp.		Construction Materials		7,000		187,250
	Taisei Corp.		Construction & Engineering		11,200		433,699
	Taisho Pharmaceutical Holdings Co. Ltd.		Pharmaceuticals		2,800		203,377
	Taiyo Nippon Sanso Corp.		Chemicals		8,400		169,671
	Taiyo Yuden Co. Ltd.		Electronic Equipment, Instruments & Components		7,000		170,280
	Takara Bio Inc.		Biotechnology		2,800		57,023
	Takara Holdings Inc.		Beverages		9,800		96,935
	Takashimaya Co. Ltd.		Multiline Retail		7,000		81,545
	Takeda Pharmaceutical Co. Ltd.		Pharmaceuticals		85,400		2,915,808
	TDK Corp.		Electronic Equipment, Instruments & Components		7,000		626,324
	TechnoPro Holdings Inc.		Professional Services		1,400		82,905
	Teijin Ltd.		Chemicals		9,800		188,247
	Terumo Corp.		Health Care Equipment & Supplies		36,400		1,172,075
	The 77 Bank Ltd.		Banks		4,200		62,296
	The Bank of Kyoto Ltd.		Banks		4,200		164,192
	The Chiba Bank Ltd.		Banks		36,400		187,263
	The Chugoku Bank Ltd.		Banks		9,800		92,038
	The Chugoku Electric Power Co. Inc.		Electric Utilities		15,400		197,924
	TheDai-ichi Life Holdings Inc.		Insurance		61,600		928,489
	The Hiroshima Bank Ltd.		Banks		16,800		83,009
	The Iyo Bank Ltd.		Banks		15,400		80,509
	The Japan Steel Works Ltd.		Machinery		2,800		53,785
	The Shiga Bank Ltd.		Banks		2,800		63,604
	The Shizuoka Bank Ltd.		Banks		28,000		208,559
	THK Co. Ltd.		Machinery		7,000		183,493
	TIS Inc.		IT Services		4,200		242,110
	Tobu Railway Co. Ltd.		Road & Rail		11,200		362,711
	Toda Corp.		Construction & Engineering		14,000		80,444
	Toho Co. Ltd.		Entertainment		5,600		245,348
	Toho Gas Co. Ltd.		Gas Utilities		5,600		214,000
	Tohoku Electric Power Co. Inc.		Electric Utilities		25,200		245,763
	Tokai Carbon Co. Ltd.		Chemicals		11,200		112,648
	Tokai Rika Co. Ltd.		Auto Components		2,800		47,308
	Tokio Marine Holdings Inc.		Insurance		36,400		1,946,385
	Tokuyama Corp.		Chemicals		4,200		96,261
	Tokyo Broadcasting System Holdings Inc.		Media		1,400		22,644
	Tokyo Century Corp.		Diversified Financial Services		2,800		129,410
a	Tokyo Electric Power Co. Holdings Inc.		Electric Utilities		86,800		424,864
	Tokyo Electron Ltd.		Semiconductors & Semiconductor Equipment		8,400		1,598,390
	Tokyo Gas Co. Ltd.		Gas Utilities		23,800		599,982
	Tokyo Tatemono Co. Ltd.		Real Estate Management & Development		11,200		157,313
	TOKYU Corp.		Road & Rail		28,000		525,413
	Tokyu Fudosan Holdings Corp.		Real Estate Management & Development		33,600		214,207
	Topcon Corp.		Electronic Equipment, Instruments & Components		5,600		74,252
	Toppan Printing Co. Ltd.		Commercial Services & Supplies		14,000		247,680
	Toray Industries Inc.		Chemicals		85,400		633,813



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FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin FTSE Japan ETF(continued)



		Industry		Shares		Value
	Common Stocks (continued)
	Japan (continued)
	Toshiba Corp.		Industrial Conglomerates		28,000	$	854,962
	Toshiba Plant Systems & Services Corp.		Construction & Engineering		2,800		46,686
	Tosoh Corp.		Chemicals		15,400		203,481
	TOTO Ltd.		Building Products		8,400		314,393
	Toyo Seikan Group Holdings Ltd.		Containers & Packaging		8,400		130,265
	Toyo Suisan Kaisha Ltd.		Food Products		5,600		224,363
	Toyo Tire Corp.		Auto Components		5,600		70,780
	Toyobo Co. Ltd.		Chemicals		5,600		73,423
	Toyoda Gosei Co. Ltd.		Auto Components		4,200		84,058
	Toyota Boshoku Corp.		Auto Components		4,200		58,720
	Toyota Industries Corp.		Auto Components		8,400		481,888
	Toyota Motor Corp.		Automobiles		138,600		9,254,107
	Toyota Tsusho Corp.		Trading Companies & Distributors		12,600		406,301
	Trend Micro Inc.		Software		7,000		332,917
	TS TECH Co. Ltd.		Auto Components		2,800		84,978
	Tsumura & Co.		Pharmaceuticals		4,200		112,311
	Tsuruha Holdings Inc.		Food & Staples Retailing		2,000		217,812
	TV Asahi Holdings Corp.		Media		1,400		21,957
	Ube Industries Ltd.		Chemicals		5,600		112,907
	Ulvac Inc.		Semiconductors & Semiconductor Equipment		2,800		112,440
	Unicharm Corp.		Household Products		21,000		664,539
	Ushio Inc.		Electrical Equipment		7,000		98,839
	USS Co. Ltd.		Specialty Retail		12,600		244,480
	Wacoal Corp.		Textiles, Apparel & Luxury Goods		2,800		71,946
	Welcia Holdings Co. Ltd.		Food & Staples Retailing		2,800		140,939
	West Japan Railway Co.		Road & Rail		9,800		827,979
	Yakult Honsha Co. Ltd.		Food Products		7,000		391,210
	Yamada Denki Co. Ltd.		Specialty Retail		44,800		216,798
	Yamaguchi Financial Group Inc.		Banks		12,600		86,507
	Yamaha Corp.		Leisure Products		8,400		376,960
	Yamaha Motor Co. Ltd.		Automobiles		15,400		279,003
	Yamato Holdings Co. Ltd.		Air Freight & Logistics		19,600		294,884
	Yamato Kogyo Co. Ltd.		Metals & Mining		1,400		34,717
	Yamazaki Baking Co. Ltd.		Food Products		7,000		124,876
	Yaoko Co. Ltd.		Food & Staples Retailing		1,400		62,568
	YASKAWA Electric Corp.		Electronic Equipment, Instruments & Components		14,000		513,625
	Yokogawa Electric Corp.		Electronic Equipment, Instruments & Components		14,000		256,100
	Yokohama Rubber Co. Ltd.		Auto Components		5,600		111,974
	Z Holdings Corp.		Interactive Media & Services		147,000		413,491
	Zenkoku Hosho Co. Ltd.		Diversified Financial Services		2,800		108,943
	Zensho Holdings Co. Ltd.		Hotels, Restaurants & Leisure		5,600		120,731
	Zeon Corp.		Chemicals		8,400		102,362
	Zozo Inc.		Internet & Direct Marketing Retail		9,800		225,969

	Total Investments before Short Term Investments (Cost $232,856,638)						205,943,393

	Short Term Investments (Cost $64,467) 0.0%^†
	United States 0.0%^†
b,c	Institutional Fiduciary Trust Portfolio, 2.05%				64,467		64,467

	Total Investments (Cost $232,921,105) 99.1%						206,007,860
	Other Assets, less Liabilities 0.9%						1,849,455

	Net Assets 100.0%					$	207,857,315



232	Semiannual Report	franklintempleton.com

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STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin FTSE Japan ETF(continued)

See Abbreviations on page 322.

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

^aNon-income producing.

^bSee Note 4(a) regarding investments in affiliated management investment companies.

^cThe rate shown is the annualizedseven-day effective yield at period end.

At September 30, 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		70	$	1,409,391		12/12/19	$	(6,935	)
Nikkei 225 Mini		Long		7		140,907		10/10/19		3,426

Total Futures Contracts										(3,509	)

*As of period end.

See Note 7 regarding other derivative information.



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FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin FTSE Japan Hedged ETF


	Six Months Ended September 30, 2019 (unaudited)		Year Ended March 31,
	Six Months Ended September 30, 2019 (unaudited)		2019			2018^a

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

Net asset value, beginning of period	$	23.12	$	25.11		$	25.91


Income from investment operations^b:

Net investment income^c		0.14		0.38			0.32

Net realized and unrealized gains (losses)		0.35		(1.11	)		(1.11	)


Total from investment operations		0.49		(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 period	$	23.61	$	23.12		$	25.11


Total return^e		2.16%		(2.59)%			(3.04)%

Ratios to average net assets^f

Total expenses		0.09%		0.09%			0.09%

Net investment income		1.25%		1.51%			3.10%

Supplemental data

Net assets, end of period (000’s)		$4,723		$13,870			$45,197

Portfolio turnover rate^g		6.19%		19.78%			1.92%

Portfolio turnover rate excluding portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely or in part for cash^g,h		6.19%		0.00%			0.00%

^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, except for non-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.

^hEffective September 30, 2019.



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

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, September 30, 2019 (unaudited)

Franklin FTSE Japan Hedged ETF



	Industry		Shares		Value
Common Stocks 98.8%
Japan 98.8%
ABC-Mart Inc.		Specialty Retail		34	$	2,161
Acom Co. Ltd.		Consumer Finance		668		2,621
Advantest Corp.		Semiconductors & Semiconductor Equipment		250		11,046
AEON Co. Ltd.		Food & Staples Retailing		868		15,906
AEON Financial Service Co. Ltd.		Consumer Finance		134		2,016
AEON Mall Co. Ltd.		Real Estate Management & Development		168		2,650
AGC Inc.		Building Products		234		7,253
Aica Kogyo Co. Ltd.		Building Products		68		2,001
AIN Holdings Inc.		Food & Staples Retailing		34		1,979
Air Water Inc.		Chemicals		200		3,575
Aisin Seiki Co. Ltd.		Auto Components		214		6,722
Ajinomoto Co. Inc.		Food Products		614		11,590
Alfresa Holdings Corp.		Health Care Providers & Services		200		4,465
Alps Alpine Co. Ltd.		Electronic Equipment, Instruments & Components		268		5,002
Amada Holdings Co. Ltd.		Machinery		434		4,674
Amano Corp.		Electronic Equipment, Instruments & Components		100		3,044
ANA Holdings Inc.		Airlines		142		4,775
Anritsu Corp.		Electronic Equipment, Instruments & Components		200		3,921
Aozora Bank Ltd.		Banks		168		4,200
Ariake Japan Co. Ltd.		Food Products		24		1,870
Asahi Group Holdings Ltd.		Beverages		481		23,811
Asahi Intecc Co. Ltd.		Health Care Equipment & Supplies		200		5,250
Asahi Kasei Corp.		Chemicals		1,561		15,368
Asics Corp.		Textiles, Apparel & Luxury Goods		200		3,414	��
ASKUL Corp.		Internet & Direct Marketing Retail		34		918
Astellas Pharma Inc.		Pharmaceuticals		2,300		32,742
Autobacs Seven Co. Ltd.		Specialty Retail		68		1,112
Azbil Corp.		Electronic Equipment, Instruments & Components		168		4,491
Bandai Namco Holdings Inc.		Leisure Products		245		15,257
Benefit One Inc.		Professional Services		68		1,285
Benesse Holdings Inc.		Diversified Consumer Services		100		2,596
BIC CAMERA Inc.		Specialty Retail		168		1,767
Bridgestone Corp.		Auto Components		746		28,881
Brother Industries Ltd.		Technology Hardware, Storage & Peripherals		300		5,430
Calbee Inc.		Food Products		100		3,109
CANON Inc.		Technology Hardware, Storage & Peripherals		1,300		34,673
Canon Marketing Japan Inc.		Electronic Equipment, Instruments & Components		68		1,443
Capcom Co. Ltd.		Entertainment		113		2,993
Casio Computer Co. Ltd.		Household Durables		268		4,154
Central Japan Railway Co.		Road & Rail		228		46,876
Chubu Electric Power Co. Inc.		Electric Utilities		885		12,815
Chugai Pharmaceutical Co. Ltd.		Pharmaceuticals		273		21,219
Chuo Mitsui Trust Holdings Inc.		Banks		468		16,871
Citizen Watch Co. Ltd.		Electronic Equipment, Instruments & Components		434		2,120
Coca-Cola Bottlers Japan Holdings Inc.		Beverages		168		3,768
COMSYS Holdings Corp.		Construction & Engineering		134		3,794
Concordia Financial Group Ltd.		Banks		1,568		6,006
Cosmo Energy Holdings Co. Ltd.		Oil, Gas & Consumable Fuels		80		1,647
Cosmos Pharmaceutical Corp.		Food & Staples Retailing		11		2,153
Credit Saison Co. Ltd.		Consumer Finance		200		2,681
CyberAgent Inc.		Media		124		4,762
Dai Nippon Printing Co. Ltd.		Commercial Services & Supplies		368		9,503
Daicel Corp.		Chemicals		268		2,264
Daido Steel Co. Ltd.		Metals & Mining		42		1,646
Daifuku Co. Ltd.		Machinery		120		6,185
Daiichi Sankyo Co. Ltd.		Pharmaceuticals		808		50,869
Daiichikosho Co. Ltd.		Entertainment		34		1,570



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FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin FTSE Japan Hedged ETF(continued)



	Industry		Shares		Value
Common Stocks (continued)
Japan (continued)
Daikin Industries Ltd.		Building Products		326	$	42,773
Daishi Hokuetsu Financial Group Inc.		Banks		34		855
Daito Trust Construction Co. Ltd.		Real Estate Management & Development		86		10,989
Daiwa House Industry Co. Ltd.		Real Estate Management & Development		818		26,536
Daiwa Securities Group Inc.		Capital Markets		2,034		9,060
DeNA Co. Ltd.		Entertainment		134		2,364
Denka Co. Ltd.		Chemicals		100		2,749
Denso Corp.		Auto Components		574		25,223
Dentsu Inc.		Media		275		9,682
DIC Corp.		Chemicals		100		2,774
Disco Corp.		Semiconductors & Semiconductor Equipment		34		6,437
DMG Mori Co. Ltd.		Machinery		134		1,898
Dowa Holdings Co. Ltd.		Metals & Mining		68		2,322
East Japan Railway Co.		Road & Rail		447		42,642
EBARA Corp.		Machinery		134		3,567
Eisai Co. Ltd.		Pharmaceuticals		332		16,868
Electric Power Development Co. Ltd.		Independent Power and Renewable Electricity Producers		200		4,562
Ezaki Glico Co. Ltd.		Food Products		68		2,822
FamilyMart Co. Ltd.		Food & Staples Retailing		286		6,968
Fancl Corp.		Personal Products		83		2,206
FANUC Corp.		Machinery		257		48,368
Fast Retailing Co. Ltd.		Specialty Retail		65		38,618
FP Corp.		Containers & Packaging		34		2,120
Fuji Electric Co. Ltd.		Electrical Equipment		168		5,138
Fuji Media Holdings Inc.		Media		68		875
Fuji Oil Holdings Inc.		Food Products		68		1,969
Fuji Seal International Inc.		Containers & Packaging		68		1,717
FUJIFILM Holdings Corp.		Technology Hardware, Storage & Peripherals		456		19,999
Fujikura Ltd.		Electrical Equipment		534		2,046
Fujitsu General Ltd.		Household Durables		68		1,132
Fujitsu Ltd.		IT Services		240		19,220
Fukuoka Financial Group Inc.		Banks		200		3,777
Fukuyama Transporting Co. Ltd.		Road & Rail		34		1,192
Furukawa Electric Co. Ltd.		Electrical Equipment		78		1,876
Fuyo General Lease Co. Ltd.		Diversified Financial Services		25		1,499
Glory Ltd.		Machinery		68		1,906
GMO Internet Inc.		IT Services		100		1,717
GMO Payment Gateway Inc.		IT Services		52		3,479
Goldwin Inc.		Textiles, Apparel & Luxury Goods		44		3,770
GS Yuasa Corp.		Electrical Equipment		100		1,728
GungHo Online Entertainment Inc.		Entertainment		50		1,133
Gunma Bank Ltd.		Banks		734		2,377
H2O Retailing Corp.		Multiline Retail		100		1,093
Hachijuni Bank Ltd.		Banks		568		2,312
Hakuhodo DY Holdings Inc.		Media		300		4,333
Hamamatsu Photonics K.K.		Electronic Equipment, Instruments & Components		168		6,233
Hankyu Hanshin Holdings Inc.		Road & Rail		275		10,598
Haseko Corp.		Household Durables		268		3,120
Heiwa Corp.		Leisure Products		68		1,400
Hikari Tsushin Inc.		Specialty Retail		29		6,274
Hino Motors Ltd.		Machinery		368		3,030
Hirose Electric Co. Ltd.		Electronic Equipment, Instruments & Components		42		5,145
HIS Co. Ltd.		Hotels, Restaurants & Leisure		34		844
Hisamitsu Pharmaceutical Co. Inc.		Pharmaceuticals		100		4,372
Hitachi Capital Corp.		Consumer Finance		68		1,381
Hitachi Chemical Co. Ltd.		Chemicals		134		4,371
Hitachi Construction Machinery Co. Ltd.		Machinery		134		3,230



236	Semiannual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin FTSE Japan Hedged ETF(continued)



		Industry		Shares		Value
	Common Stocks (continued)
	Japan (continued)
	Hitachi High-Technologies Corp.		Electronic Equipment, Instruments & Components		80	$	4,619
	Hitachi Ltd.		Electronic Equipment, Instruments & Components		1,168		43,478
	Hitachi Metals Ltd.		Metals & Mining		268		2,891
	Hitachi Transport System Ltd.		Road & Rail		52		1,520
	Hokkaido Electric Power Co. Inc.		Electric Utilities		134		705
	Hokugin Financial Group Inc.		Banks		134		1,296
a	Hokuriku Electric Power Co.		Electric Utilities		200		1,344
	Honda Motor Co. Ltd.		Automobiles		2,206		57,122
	HORIBA Ltd.		Electronic Equipment, Instruments & Components		46		2,656
	Hoshizaki Corp.		Machinery		68		5,342
	House Foods Group Inc.		Food Products		100		3,738
	Hoya Corp.		Health Care Equipment & Supplies		459		37,455
	Ibiden Co. Ltd.		Electronic Equipment, Instruments & Components		134		2,697
	Ichigo Inc.		Real Estate Management & Development		400		1,610
	Idemitsu Kosan Co. Ltd.		Oil, Gas & Consumable Fuels		297		8,395
	IHI Corp.		Machinery		168		3,650
	Iida Group Holdings Co. Ltd.		Household Durables		168		2,733
	INPEX Corp.		Oil, Gas & Consumable Fuels		1,160		10,638
	Isetan Mitsukoshi Holdings Ltd.		Multiline Retail		334		2,664
	Isuzu Motors Ltd.		Automobiles		634		6,984
	Ito En Ltd.		Beverages		68		3,203
	ITOCHU Corp.		Trading Companies & Distributors		1,738		35,878
	ITOCHU Techno-Solutions Corp.		IT Services		100		2,648
	Itoham Yonekyu Holdings Inc.		Food Products		68		427
	Izumi Co. Ltd.		Multiline Retail		52		2,035
	J Front Retailing Co. Ltd.		Multiline Retail		300		3,509
	Japan Airlines Co. Ltd.		Airlines		146		4,339
	Japan Airport Terminal Co. Ltd.		Transportation Infrastructure		68		2,945
	Japan Aviatn Elect		Electronic Equipment, Instruments & Components		68		963
	Japan Exchange Group Inc.		Capital Markets		668		10,501
	Japan Petroleum Exploration Co. Ltd.		Oil, Gas & Consumable Fuels		34		862
	Japan Post Bank Co. Ltd.		Banks		525		5,086
	Japan Post Holdings Co. Ltd.		Insurance		1,734		15,964
	Japan Post Insurance Co. Ltd.		Insurance		249		3,755
	Japan Tobacco Inc.		Tobacco		1,500		32,838
	JFE Holdings Inc.		Metals & Mining		653		7,855
	JGC Holdings Corp.		Construction & Engineering		268		3,504
	JSR Corp.		Chemicals		234		3,744
	JTEKT Corp.		Machinery		300		3,439
	Justsystems Corp.		Software		50		1,892
	JXTG Holdings Inc.		Oil, Gas & Consumable Fuels		4,016		18,297
	K’s Holdings Corp.		Specialty Retail		234		2,546
	Kagome Co. Ltd.		Food Products		100		2,525
	Kajima Corp.		Construction & Engineering		568		7,447
	Kakaku.com Inc.		Interactive Media & Services		168		4,132
	Kaken Pharmaceutical Co. Ltd.		Pharmaceuticals		40		1,854
	Kamigumi Co. Ltd.		Transportation Infrastructure		134		3,035
	Kandenko Co. Ltd.		Construction & Engineering		134		1,198
	Kaneka Corp.		Chemicals		68		2,117
	Kansai Electric Power Co. Inc.		Electric Utilities		920		10,287
	Kansai Mirai Financial Group Inc		Banks		200		1,257
	Kansai Paint Co. Ltd.		Chemicals		247		5,739
	KAO Corp.		Personal Products		581		42,921
	Kawasaki Heavy Industries Ltd.		Machinery		178		3,940
a	Kawasaki Kisen Kaisha Ltd.		Marine		100		1,163
	KDDI Corp.		Wireless Telecommunication Services		2,149		56,173
	Keihan Holdings Co. Ltd.		Industrial Conglomerates		123		5,469



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FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin FTSE Japan Hedged ETF(continued)



		Industry		Shares		Value
	Common Stocks (continued)
	Japan (continued)
	Keikyu Corp.		Road & Rail		300	$	5,815
	Keio Corp.		Road & Rail		145		9,029
	Keisei Electric Railway Co. Ltd.		Road & Rail		176		7,239
	Kewpie Corp.		Food Products		134		3,128
	Keyence Corp.		Electronic Equipment, Instruments & Components		111		68,711
	Kikkoman Corp.		Food Products		234		11,172
	Kinden Corp.		Construction & Engineering		168		2,492
	Kintetsu Group Holdings Co. Ltd.		Road & Rail		224		11,669
	Kirin Holdings Co. Ltd.		Beverages		1,016		21,509
	Kissei Pharmaceutical Co. Ltd.		Pharmaceuticals		34		818
	Kobayashi Pharmaceutical Co. Ltd.		Personal Products		76		5,780
	Kobe Steel Ltd.		Metals & Mining		300		1,599
	Koei Tecmo Holdings Co. Ltd.		Entertainment		84		1,824
	Koito Manufacturing Co. Ltd.		Auto Components		142		6,937
	Kokuyo Co. Ltd.		Commercial Services & Supplies		100		1,395
	Komatsu Ltd.		Machinery		1,149		26,313
	Konami Holdings Corp.		Entertainment		119		5,748
	Konica Minolta Inc.		Technology Hardware, Storage & Peripherals		468		3,256
	KOSE Corp.		Personal Products		36		6,079
	Kubota Corp.		Machinery		1,396		21,113
	Kuraray Co. Ltd.		Chemicals		434		5,329
	Kurita Water Industries Ltd.		Machinery		134		3,587
	Kusuri No Aoki Holdings Co. Ltd.		Food & Staples Retailing		10		681
	Kyocera Corp.		Electronic Equipment, Instruments & Components		386		23,948
	Kyoritsu Maintenance Co. Ltd.		Hotels, Restaurants & Leisure		34		1,455
	Kyowa Exeo Corp.		Construction & Engineering		134		3,248
	Kyowa Kirin Co. Ltd.		Pharmaceuticals		334		6,484
	Kyudenko Corp.		Construction & Engineering		45		1,499
	Kyushu Electric Power Co. Inc.		Electric Utilities		568		5,361
	Kyushu Financial Group Inc.		Banks		268		1,091
	Kyushu Railway Co.		Road & Rail		200		6,375
	Lawson Inc.		Food & Staples Retailing		68		3,479
a	Line Corp.		Interactive Media & Services		68		2,432
	LINTEC Corp.		Chemicals		68		1,345
	Lion Corp.		Household Products		314		6,191
	LIXIL Group Corp.		Building Products		334		5,872
	M3 Inc.		Health Care Technology		527		12,688
	Mabuchi Motor Co. Ltd.		Electrical Equipment		68		2,533
	Maeda Corp.		Construction & Engineering		168		1,464
	Maeda Road Construction Co. Ltd.		Construction & Engineering		68		1,479
	Makita Corp.		Machinery		307		9,658
	Mani Inc.		Health Care Equipment & Supplies		100		2,629
	Marubeni Corp.		Trading Companies & Distributors		1,968		13,069
	Maruha Nichiro Corp.		Food Products		43		1,084
	Marui Group Co. Ltd.		Multiline Retail		268		5,659
	Maruichi Steel Tube Ltd.		Metals & Mining		78		2,059
	Matsui Securities Co. Ltd.		Capital Markets		134		1,126
	Matsumotokiyoshi Holdings Co. Ltd.		Food & Staples Retailing		100		3,660
	Mazda Motor Corp.		Automobiles		724		6,428
	Mebuki Financial Group Inc.		Banks		1,568		3,859
	Medipal Holdings Corp.		Health Care Providers & Services		200		4,452
	Megmilk Snow Brand Co. Ltd.		Food Products		46		1,107
	Meiji Holdings Co. Ltd.		Food Products		168		12,249
	Minebea Mitsumi Inc.		Machinery		534		8,454
	Miraca Holdings Inc.		Health Care Providers & Services		68		1,549
	MISUMI Group Inc.		Machinery		345		8,118
	Mitsubishi Chemical Holdings Corp.		Chemicals		1,600		11,401
	Mitsubishi Corp.		Trading Companies & Distributors		1,626		39,885



238	Semiannual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin FTSE Japan Hedged ETF(continued)



		Industry		Shares		Value
	Common Stocks (continued)
	Japan (continued)
	Mitsubishi Electric Corp.		Electrical Equipment		2,487	$	32,964
	Mitsubishi Estate Co. Ltd.		Real Estate Management & Development		1,488		28,693
	Mitsubishi Gas Chemical Co. Inc.		Chemicals		234		3,122
	Mitsubishi Heavy Industries Ltd.		Machinery		360		14,097
	Mitsubishi Logistics Corp.		Transportation Infrastructure		81		2,059
	Mitsubishi Materials Corp.		Metals & Mining		168		4,531
	Mitsubishi Motors Corp.		Automobiles		700		3,038
	Mitsubishi Shokuhin Co. Ltd.		Food & Staples Retailing		34		851
	Mitsubishi Tanabe Pharma Corp.		Pharmaceuticals		300		3,289
	Mitsubishi UFJ Financial Group Inc.		Banks		15,700		79,666
	Mitsubishi UFJ Lease & Finance Co. Ltd.		Diversified Financial Services		534		3,083
	Mitsui & Co. Ltd.		Trading Companies & Distributors		2,137		34,959
	Mitsui Chemicals Inc.		Chemicals		234		5,231
	Mitsui Fudosan Co. Ltd.		Real Estate Management & Development		1,181		29,275
	Mitsui Mining and Smelting Co. Ltd.		Metals & Mining		68		1,606
	Mitsui O.S.K. Lines Ltd.		Marine		134		3,385
	Miura Co. Ltd.		Machinery		134		3,732
	Mizuho Financial Group Inc.		Banks		32,300		49,492
	Mochida Pharmaceutical Co. Ltd.		Pharmaceuticals		34		1,299
	Monotaro Co. Ltd.		Trading Companies & Distributors		145		3,792
	Morinaga & Co. Ltd.		Food Products		51		2,477
	Morinaga Milk Industry Co. Ltd.		Food Products		52		1,982
	MS&AD Insurance Group Holdings Inc.		Insurance		618		20,014
	Murata Manufacturing Co. Ltd.		Electronic Equipment, Instruments & Components		713		34,207
	Nabtesco Corp.		Machinery		144		4,457
	Nagase & Co. Ltd.		Trading Companies & Distributors		134		1,867
	Nagoya Railroad Co. Ltd.		Road & Rail		244		7,292
	Nankai Electric Railway Co. Ltd.		Road & Rail		134		3,391
	NEC Corp.		Technology Hardware, Storage & Peripherals		315		13,291
	Net One Systems Co. Ltd.		IT Services		100		2,695
a	Nexon Co. Ltd.		Entertainment		518		6,284
	NGK Insulators Ltd.		Machinery		268		3,816
	NGK Spark Plug Co. Ltd.		Auto Components		247		4,703
	NH Foods Ltd.		Food Products		134		5,387
	NHK Spring Co. Ltd.		Auto Components		200		1,525
	Nichirei Corp.		Food Products		134		3,055
	Nidec Corp.		Electrical Equipment		287		38,559
	Nifco Inc.		Auto Components		100		2,388
	Nihon Kohden Corp.		Health Care Equipment & Supplies		100		2,938
	Nihon M&A Center Inc.		Professional Services		168		4,726
	Nihon Unisys Ltd.		IT Services		78		2,512
	Nikon Corp.		Household Durables		434		5,413
	Nintendo Co. Ltd.		Entertainment		133		49,250
	Nippo Corp.		Construction & Engineering		68		1,258
	Nippon Electric Glass Co. Ltd.		Electronic Equipment, Instruments & Components		100		2,224
	Nippon Express Co. Ltd.		Road & Rail		100		5,098
	Nippon Kayaku Co. Ltd.		Chemicals		200		2,387
	Nippon Paint Holdings Co. Ltd.		Chemicals		200		10,382
	Nippon Paper Industries Co. Ltd.		Paper & Forest Products		114		1,855
	Nippon Shinyaku Co. Ltd.		Pharmaceuticals		64		5,383
	Nippon Shobukai Co. Ltd.		Chemicals		39		2,216
	Nippon Steel Corp.		Metals & Mining		1,025		14,278
	Nippon Telegraph & Telephone Corp.		Diversified Telecommunication Services		781		37,260
	Nippon Television Holdings Inc.		Media		68		871
	Nippon Yusen KK		Marine		200		3,340
	Nipro Corp.		Health Care Equipment & Supplies		134		1,504
	Nishi-Nippon Financial Holdings Inc.		Banks		200		1,401



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STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin FTSE Japan Hedged ETF(continued)



		Industry		Shares		Value
	Common Stocks (continued)
	Japan (continued)
	Nishi-Nippon Railroad Co. Ltd.		Road & Rail		100	$	2,195
	Nissan Chemical Corp.		Chemicals		168		6,987
	Nissan Motor Co. Ltd.		Automobiles		2,546		15,880
	Nissan Shatai Co. Ltd.		Automobiles		68		551
	Nisshin Seifun Group Inc.		Food Products		316		5,842
	Nisshinbo Holdings Inc.		Industrial Conglomerates		168		1,309
	Nissin Foods Holdings Co. Ltd.		Food Products		88		6,351
	Nitori Co. Ltd.		Specialty Retail		93		13,605
	Nitto Denko Corp.		Chemicals		195		9,390
	Noevir Holdings Co. Ltd.		Personal Products		23		1,200
	NOF Corp.		Chemicals		100		3,289
	NOK Corp.		Auto Components		168		2,490
	Nomura Holdings Inc.		Capital Markets		4,100		17,371
	Nomura Real Estate Holdings Inc.		Real Estate Management & Development		134		2,894
	Nomura Research Institute Ltd.		IT Services		402		8,001
	NS Solutions Corp.		IT Services		34		1,109
	NSK Ltd.		Machinery		568		4,783
	NTN Corp.		Machinery		734		2,105
	NTT Data Corp.		IT Services		900		11,609
	NTT DOCOMO Inc.		Wireless Telecommunication Services		1,482		37,751
	Obayashi Corp.		Construction & Engineering		968		9,637
	OBIC Business Consultants Co. Ltd.		Software		21		850
	OBIC Co. Ltd.		IT Services		83		9,462
	Odakyu Electric Railway Co. Ltd.		Road & Rail		380		9,100
	Oji Holdings Corp.		Paper & Forest Products		1,100		5,130
	Okuma Corp.		Machinery		34		1,840
	Olympus Corp.		Health Care Equipment & Supplies		1,412		19,023
	Omron Corp.		Electronic Equipment, Instruments & Components		234		12,796
	Ono Pharmaceutical Co. Ltd.		Pharmaceuticals		551		9,977
	Open House Co. Ltd.		Real Estate Management & Development		68		1,620
	Oracle Corp. Japan		Software		40		3,468
	Orient Corp.		Consumer Finance		1,100		1,476
	Oriental Land Co. Ltd.		Hotels, Restaurants & Leisure		233		35,443
	ORIX Corp.		Diversified Financial Services		1,617		24,104
	Osaka Gas Co. Ltd.		Gas Utilities		500		9,563
	OSG Corp.		Machinery		100		2,067
	Otsuka Corp.		IT Services		134		5,338
	Otsuka Holdings Co. Ltd.		Pharmaceuticals		526		19,663
	Paltac Corp.		Distributors		40		1,954
	Pan Pacific International Holdings Corp.		Multiline Retail		632		10,555
	Panasonic Corp.		Household Durables		2,668		21,616
	Park24 Co. Ltd.		Commercial Services & Supplies		143		3,318
	Penta-Ocean Construction Co. Ltd.		Construction & Engineering		234		1,295
a	PeptiDream Inc.		Biotechnology		105		4,984
	Persol Holdings Co. Ltd.		Professional Services		210		3,968
	Pigeon Corp.		Household Products		134		5,524
	Pilot Corp.		Commercial Services & Supplies		41		1,517
	Pola Orbis Holdings Inc.		Personal Products		100		2,238
	Rakuten Inc.		Internet & Direct Marketing Retail		993		9,785
	Recruit Holdings Co. Ltd.		Professional Services		1,611		48,982
	Relo Group Inc.		Real Estate Management & Development		134		3,283
a	Renesas Electronics Corp.		Semiconductors & Semiconductor Equipment		900		5,846
	Rengo Co. Ltd.		Containers & Packaging		268		1,929
	Resona Holdings Inc.		Banks		2,534		10,856
	Resorttrust Inc.		Hotels, Restaurants & Leisure		68		1,100
	Ricoh Co. Ltd.		Technology Hardware, Storage & Peripherals		759		6,833
	Rinnai Corp.		Household Durables		44		2,956



240	Semiannual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin FTSE Japan Hedged ETF(continued)



	Industry		Shares		Value
Common Stocks (continued)
Japan (continued)
Rohm Co. Ltd.		Semiconductors & Semiconductor Equipment		109	$	8,321
Rohto Pharmaceutical Co. Ltd.		Personal Products		134		3,655
Ryohin Keikaku Co. Ltd.		Multiline Retail		300		5,602
Sankyo Co. Ltd.		Leisure Products		68		2,337
Sankyu Inc.		Road & Rail		68		3,530
Sanrio Co. Ltd.		Specialty Retail		68		1,309
Santen Pharmaceutical Co. Ltd.		Pharmaceuticals		448		7,785
Sanwa Holdings Corp.		Building Products		234		2,616
Sapporo Holdings Ltd.		Beverages		68		1,695
Sawai Pharmaceutical Co. Ltd.		Pharmaceuticals		47		2,427
SBI Holdings Inc.		Capital Markets		278		5,945
SCREEN Holdings Co. Ltd.		Semiconductors & Semiconductor Equipment		48		2,829
SCSK Corp.		IT Services		56		2,627
Secom Co. Ltd.		Commercial Services & Supplies		244		22,256
Sega Sammy Holdings Inc.		Leisure Products		234		3,274
Seibu Holdings Inc.		Road & Rail		268		4,669
Seiko Epson Corp.		Technology Hardware, Storage & Peripherals		334		4,697
Seino Holdings Co. Ltd.		Road & Rail		200		2,502
Sekisui Chemical Co. Ltd.		Household Durables		468		7,245
Sekisui House Ltd.		Household Durables		734		14,432
Seven & i Holdings Co. Ltd.		Food & Staples Retailing		973		37,200
Seven Bank Ltd.		Banks		968		2,651
SG Holdings Co. Ltd.		Air Freight & Logistics		268		6,559
Sharp Corp.		Household Durables		200		2,211
Shikoku Electric Power Co. Inc.		Electric Utilities		200		1,886
Shimadzu Corp.		Electronic Equipment, Instruments & Components		334		8,431
Shimamura Co. Ltd.		Specialty Retail		34		2,693
SHIMANO Inc.		Leisure Products		100		15,064
Shimizu Corp.		Construction & Engineering		734		6,642
Shin-Etsu Chemical Co. Ltd.		Chemicals		500		53,481
Shinsei Bank Ltd.		Banks		300		4,369
Shionogi & Co. Ltd.		Pharmaceuticals		353		19,594
Shiseido Co. Ltd.		Personal Products		482		38,484
SHO-BOND Holdings Co. Ltd.		Construction & Engineering		68		2,385
Shochiku Co. Ltd.		Entertainment		14		1,814
Shoei Co. Ltd.		Real Estate Management & Development		534		5,460
Showa Denko K.K.		Chemicals		178		4,653
Sky Perfect JSAT Holdings Inc.		Media		268		1,084
Skylark Holdings Co. Ltd.		Hotels, Restaurants & Leisure		234		4,257
SMC Corp.		Machinery		73		31,139
Softbank Corp.		Wireless Telecommunication Services		2,031		27,512
SoftBank Group Corp.		Wireless Telecommunication Services		2,043		80,151
Sohgo Security Services Co. Ltd.		Commercial Services & Supplies		82		4,294
Sojitz Corp.		Trading Companies & Distributors		1,768		5,480
Sompo Holdings Inc.		Insurance		434		18,139
Sony Corp.		Household Durables		1,588		93,260
Sony Financial Holdings Inc.		Insurance		200		4,334
Sotetsu Holdings Inc.		Road & Rail		100		2,612
Square Enix Holdings Co. Ltd.		Entertainment		100		4,858
Stanley Electric Co. Ltd.		Auto Components		179		4,730
Subaru Corp.		Automobiles		768		21,603
Sugi Pharmacy Co. Ltd.		Food & Staples Retailing		41		2,219
Sumco Corp.		Semiconductors & Semiconductor Equipment		300		4,025
Sumitomo Bakelite Co. Ltd.		Chemicals		34		1,328
Sumitomo Chemical Co. Ltd.		Chemicals		2,000		8,975
Sumitomo Corp.		Trading Companies & Distributors		1,500		23,428
Sumitomo Dainippon Pharma Co. Ltd.		Pharmaceuticals		200		3,285



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FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin FTSE Japan Hedged ETF(continued)



		Industry		Shares		Value
	Common Stocks (continued)
	Japan (continued)
	Sumitomo Electric Industries Ltd.		Auto Components		934	$	11,848
	Sumitomo Forestry Co. Ltd.		Household Durables		168		2,232
	Sumitomo Heavy Industries Ltd.		Machinery		134		3,968
	Sumitomo Metal Mining Co. Ltd.		Metals & Mining		300		9,291
	Sumitomo Mitsui Financial Group Inc.		Banks		1,622		55,455
	Sumitomo Osaka Cement Co. Ltd.		Construction Materials		41		1,755
	Sumitomo Realty & Development Co. Ltd.		Real Estate Management & Development		495		18,838
	Sumitomo Rubber Industries Ltd.		Auto Components		234		2,776
	Sundrug Co. Ltd.		Food & Staples Retailing		77		2,422
	Suntory Beverage & Food Ltd.		Beverages		183		7,823
	Suzuken Co. Ltd.		Health Care Providers & Services		100		5,367
	Suzuki Motor Corp.		Automobiles		543		23,046
	Sysmex Corp.		Health Care Equipment & Supplies		238		15,926
	T&D Holdings Inc.		Insurance		700		7,416
	Tadano Ltd.		Machinery		134		1,276
	Taiheiyo Cement Corp.		Construction Materials		145		3,879
	Taisei Corp.		Construction & Engineering		268		10,378
	Taisho Pharmaceutical Holdings Co. Ltd.		Pharmaceuticals		54		3,922
	Taiyo Nippon Sanso Corp.		Chemicals		181		3,656
	Taiyo Yuden Co. Ltd.		Electronic Equipment, Instruments & Components		168		4,087
	Takara Bio Inc.		Biotechnology		68		1,385
	Takara Holdings Inc.		Beverages		200		1,978
	Takashimaya Co. Ltd.		Multiline Retail		168		1,957
	Takeda Pharmaceutical Co. Ltd.		Pharmaceuticals		1,914		65,350
	TDK Corp.		Electronic Equipment, Instruments & Components		155		13,869
	TechnoPro Holdings Inc.		Professional Services		44		2,606
	Teijin Ltd.		Chemicals		234		4,495
	Terumo Corp.		Health Care Equipment & Supplies		814		26,211
	The 77 Bank Ltd.		Banks		84		1,246
	The Bank of Kyoto Ltd.		Banks		100		3,909
	The Chiba Bank Ltd.		Banks		900		4,630
	The Chugoku Bank Ltd.		Banks		200		1,878
	The Chugoku Electric Power Co. Inc.		Electric Utilities		468		6,015
	The Dai-ichi Life Holdings Inc.		Insurance		1,368		20,620
	The Hiroshima Bank Ltd.		Banks		368		1,818
	The Iyo Bank Ltd.		Banks		334		1,746
	The Japan Steel Works Ltd.		Machinery		100		1,921
	The Shiga Bank Ltd.		Banks		68		1,545
	The Shizuoka Bank Ltd.		Banks		634		4,722
	THK Co. Ltd.		Machinery		145		3,801
	TIS Inc.		IT Services		100		5,765
	Tobu Railway Co. Ltd.		Road & Rail		268		8,679
	Toda Corp.		Construction & Engineering		200		1,149
	Toho Co. Ltd.		Entertainment		140		6,134
	Toho Gas Co. Ltd.		Gas Utilities		109		4,165
	Tohoku Electric Power Co. Inc.		Electric Utilities		568		5,539
	Tokai Carbon Co. Ltd.		Chemicals		234		2,354
	Tokai Rika Co. Ltd.		Auto Components		68		1,149
	Tokio Marine Holdings Inc.		Insurance		832		44,489
	Tokuyama Corp.		Chemicals		100		2,292
	Tokyo Broadcasting System Holdings Inc.		Media		68		1,100
	Tokyo Century Corp.		Diversified Financial Services		68		3,143
a	Tokyo Electric Power Co. Holdings Inc.		Electric Utilities		1,934		9,466
	Tokyo Electron Ltd.		Semiconductors & Semiconductor Equipment		187		35,583
	Tokyo Gas Co. Ltd.		Gas Utilities		544		13,714
	Tokyo Tatemono Co. Ltd.		Real Estate Management & Development		268		3,764
	TOKYU Corp.		Road & Rail		616		11,559



242	Semiannual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin FTSE Japan Hedged ETF(continued)



	Industry		Shares		Value
Common Stocks (continued)
Japan (continued)
Tokyu Fudosan Holdings Corp.		Real Estate Management & Development		768	$	4,896
Topcon Corp.		Electronic Equipment, Instruments & Components		134		1,777
Toppan Printing Co. Ltd.		Commercial Services & Supplies		334		5,909
Toray Industries Inc.		Chemicals		1,900		14,101
Toshiba Corp.		Industrial Conglomerates		611		18,656
Toshiba Plant Systems & Services Corp.		Construction & Engineering		34		567
Tosoh Corp.		Chemicals		368		4,862
TOTO Ltd.		Building Products		179		6,700
Toyo Seikan Group Holdings Ltd.		Containers & Packaging		200		3,102
Toyo Suisan Kaisha Ltd.		Food Products		111		4,447
Toyo Tire Corp.		Auto Components		134		1,694
Toyobo Co. Ltd.		Chemicals		100		1,311
Toyoda Gosei Co. Ltd.		Auto Components		100		2,001
Toyota Boshoku Corp.		Auto Components		68		951
Toyota Industries Corp.		Auto Components		200		11,474
Toyota Motor Corp.		Automobiles		3,150		210,321
Toyota Tsusho Corp.		Trading Companies & Distributors		300		9,674
Trend Micro Inc.		Software		142		6,753
TS TECH Co. Ltd.		Auto Components		68		2,064
Tsumura & Co.		Pharmaceuticals		100		2,674
Tsuruha Holdings Inc.		Food & Staples Retailing		46		5,010
TV Asahi Holdings Corp.		Media		34		533
Ube Industries Ltd.		Chemicals		134		2,702
Ulvac Inc.		Semiconductors & Semiconductor Equipment		68		2,731
Unicharm Corp.		Household Products		487		15,411
Ushio Inc.		Electrical Equipment		134		1,892
USS Co. Ltd.		Specialty Retail		268		5,200
Wacoal Corp.		Textiles, Apparel & Luxury Goods		68		1,747
Welcia Holdings Co. Ltd.		Food & Staples Retailing		68		3,423
West Japan Railway Co.		Road & Rail		230		19,432
Yakult Honsha Co. Ltd.		Food Products		153		8,551
Yamada Denki Co. Ltd.		Specialty Retail		1,000		4,839
Yamaguchi Financial Group Inc.		Banks		268		1,840
Yamaha Corp.		Leisure Products		200		8,975
Yamaha Motor Co. Ltd.		Automobiles		349		6,323
Yamato Holdings Co. Ltd.		Air Freight & Logistics		446		6,710
Yamato Kogyo Co. Ltd.		Metals & Mining		34		843
Yamazaki Baking Co. Ltd.		Food Products		168		2,997
Yaoko Co. Ltd.		Food & Staples Retailing		34		1,520
YASKAWA Electric Corp.		Electronic Equipment, Instruments & Components		334		12,254
Yokogawa Electric Corp.		Electronic Equipment, Instruments & Components		300		5,488
Yokohama Rubber Co. Ltd.		Auto Components		134		2,679
Z Holdings Corp.		Interactive Media & Services		3,434		9,659
Zenkoku Hosho Co. Ltd.		Diversified Financial Services		68		2,646
Zensho Holdings Co. Ltd.		Hotels, Restaurants & Leisure		113		2,436
Zeon Corp.		Chemicals		168		2,047
Zozo Inc.		Internet & Direct Marketing Retail		234		5,396

Total Investments before Short Term Investments (Cost $5,311,863)						4,663,266



franklintempleton.com	Semiannual Report	243

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin FTSE Japan Hedged ETF(continued)

Industry

Shares

Value

Short Term Investments (Cost $1,813) 0.0%^†

United States 0.0%^†

b,c

Institutional Fiduciary Trust Portfolio, 1.71%

Money Market Funds

1,813

Total Investments (Cost $5,313,676) 98.8%

4,665,079

Other Assets, less Liabilities 1.2%

57,533

Net Assets 100.0%

4,722,612

See Abbreviations on page 322.

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

^aNon-income producing.

^bSee Note 4(a) regarding investments in affiliated management investment companies.

^cThe rate shown is the annualized seven-day effective yield at period end.

At September 30, 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		HSBK		Buy		138,445,000	$	1,280,990		10/02/19	$	19	$	—
Japanese Yen		UBSW		Buy		138,445,000		1,280,982		10/02/19		26		—
Japanese Yen		BOFA		Buy		138,445,000		1,280,971		10/02/19		38		—
Japanese Yen		MSCO		Buy		56,637,000		524,040		10/02/19		13		—
Japanese Yen		MSCO		Sell		56,637,000		534,754		10/02/19		10,701		—
Japanese Yen		BOFA		Sell		138,445,000		1,307,166		10/02/19		26,158		—
Japanese Yen		UBSW		Sell		138,445,000		1,307,141		10/02/19		26,132		—
Japanese Yen		HSBK		Sell		138,445,000		1,307,142		10/02/19		26,133		—
Japanese Yen		MSCO		Sell		61,169,000		567,215		11/05/19		—		(23	)
Japanese Yen		HSBK		Sell		149,525,000		1,386,511		11/05/19		—		(79	)
Japanese Yen		UBSW		Sell		149,525,000		1,386,260		11/05/19		—		(330	)
Japanese Yen		BOFA		Sell		149,525,000		1,386,564		11/05/19		—		(26	)

Total Forward Exchange Contracts											$	89,220	$	(458	)

Net unrealized appreciation (depreciation)													$	88,762

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

At September 30, 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

40,268

12/12/19

(233

)

*As of period end.

See Note 7 regarding other derivative information.



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

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin FTSE Latin America ETF



	Six Months Ended September 30, 2019 (unaudited)			Year Ended March 31, 2019^a
Per share operating performance (for a share outstanding throughout the period)

Net asset value, beginning of period	$	26.41		$	26.17


Income from investment operations^b:

Net investment income^c		0.38			0.38

Net realized and unrealized gains (losses)		(0.34	)		(0.02	)


Total from investment operations		0.04			0.36


Less distributions from net investment income		(0.46	)		(0.12	)


Net asset value, end of period	$	25.99		$	26.41


Total return^d		0.10%			1.42%

Ratios to average net assets^e

Total expenses		0.19%			0.19%

Net investment income		2.89%			3.08%

Supplemental data

Net assets, end of period (000’s)		$2,599			$2,641

Portfolio turnover rate^f		6.22%			4.08%

Portfolio turnover rate excluding portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely or in part for cash^f,g		6.22%			—%

^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.

^gEffective September 30, 2019.



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FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, September 30, 2019 (unaudited)

Franklin FTSE Latin America ETF



		Industry		Shares		Value
	Common Stocks 76.4%
	Brazil 42.5%
	Ambev SA		Beverages		17,200	$	79,488
	Atacadao Distribuicao Comercio e Industria Ltd.		Food & Staples Retailing		1,300		6,570
a	Azul SA		Airlines		800		9,547
a	B2W Cia Digital		Internet & Direct Marketing Retail		600		6,964
a	B2W Cia Digital, SCR		Internet & Direct Marketing Retail		98		1,127
	B3 SA – Brasil Bolsa Balcao		Capital Markets		7,800		81,700
	Banco Bradesco SA		Banks		4,100		30,759
	Banco BTG Pactual SA		Capital Markets		1,000		14,056
	Banco do Brasil SA		Banks		4,100		44,776
	Banco Santander Brasil SA		Banks		1,600		17,412
	BB Seguridade Participacoes SA		Insurance		2,700		22,706
	BR Malls Paricipacoes SA		Real Estate Management & Development		2,800		9,686
a	BRF SA		Food Products		2,200		20,176
	CCR SA		Transportation Infrastructure		4,400		18,222
	Centrais Eletricas Brasileiras SA		Electric Utilities		1,500		14,458
	Cia Siderurgica Nacional SA		Metals & Mining		2,400		7,623
	Cielo SA		IT Services		4,400		8,451
	Companhia de Saneamento Basico do Estado de Sao Paulo		Water Utilities		1,300		15,480
	Companhia Energetica de Minas Gerais		Electric Utilities		300		1,145
	Companhia Paranaense de Energia-Copel		Electric Utilities		100		1,227
	Cosan SA		Oil, Gas & Consumable Fuels		700		8,940
	CPFL Energia SA		Electric Utilities		700		5,527
	CVC Brasil Operadora e Agencia de Viagens SA		Hotels, Restaurants & Leisure		500		6,704
	EDP-Energias do Brasil SA		Electric Utilities		1,200		5,646
	Embraer SA		Aerospace & Defense		2,900		12,469
	Energisa SA		Electric Utilities		735		8,814
	Engie Brasil SA		Independent Power and Renewable Electricity Producers		725		7,726
	Equatorial Energia SA		Electric Utilities		700		16,854
	Fleury SA		Health Care Providers & Services		800		5,074
	Grendene SA		Textiles, Apparel & Luxury Goods		800		1,677
b,c	Hapvida Participacoes e Investimentos SA, Reg S, 144A		Health Care Providers & Services		600		7,757
	Hypera SA		Pharmaceuticals		1,600		12,879
	IRB Brasil Resseguros SA		Insurance		3,300		29,836
	Klabin SA		Containers & Packaging		2,900		10,715
	Kroton Educacional SA		Diversified Consumer Services		5,800		15,567
	Localiza Rent a Car SA		Road & Rail		2,100		22,919
	Lojas Americanas SA		Multiline Retail		900		3,226
	Lojas Renner SA		Multiline Retail		3,080		37,319
	M. Dias Branco SA		Food Products		300		2,521
	Magazine Luiza SA		Multiline Retail		2,328		20,701
	Multiplan Empreendimentos Imobiliarios SA		Real Estate Management & Development		1,100		7,619
	Natura Cosmeticos SA		Personal Products		1,400		11,380
	Notre Dame Intermedica Participacoes SA		Health Care Providers & Services		1,500		19,536
	Odontoprev SA		Health Care Providers & Services		1,100		4,268
	Petrobras Distribuidora SA		Specialty Retail		2,700		17,845
	Petroleo Brasileiro SA		Oil, Gas & Consumable Fuels		11,700		84,687
	Porto Seguro SA		Insurance		400		5,655
	Raia Drogasil SA		Food & Staples Retailing		899		20,678
a	Rumo SA		Road & Rail		4,400		25,880
	Sao Martinho SA		Food Products		600		2,730
	Sul America SA		Insurance		900		10,308
	Suzano SA		Paper & Forest Products		3,119		25,197
	Tim Participacoes SA		Wireless Telecommunication Services		3,300		9,436
	Transmissora Alianca de Energia Eletrica SA		Electric Utilities		900		6,223



246	Semiannual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin FTSE Latin America ETF(continued)



		Industry			Shares		Value
	Common Stocks (continued)
	Brazil (continued)
	Ultrapar Participacoes SA		Oil, Gas & Consumable Fuels			3,364	$	14,933
a	Vale SA		Metals & Mining			13,600		155,903
a	Via Varejo SA		Specialty Retail			1,600		3,042
	Weg SA		Electrical Equipment			2,900		16,869
	YDUQS PART		Diversified Consumer Services			1,000		8,662


								1,105,295

	Chile 7.6%
	AES Gener SA		Independent Power and Renewable Electricity Producers			11,437		2,489
	Aguas Andinas SA, A		Water Utilities			11,033		6,042
	Banco de Chile		Banks			175,481		24,604
	Banco de Credito e Inversiones SA		Banks			174		10,973
	Banco Santander Chile SA		Banks			245,168		17,295
	Cencosud SA		Food & Staples Retailing			5,308		8,747
	Colbun SA		Independent Power and Renewable Electricity Producers			27,494		4,965
	Compania Cervecerias Unidas SA		Beverages			579		6,476
	E CL SA		Electric Utilities			1,895		3,357
a	Empresa Nacional de Telecomunicaciones SA		Wireless Telecommunication Services			530		4,653
	Empresas CMPC SA		Paper & Forest Products			4,428		10,313
	Empresas COPEC SA		Oil, Gas & Consumable Fuels			1,930		18,221
	Enel Americas SA		Electric Utilities			144,848		26,555
	Enel Chile SA		Electric Utilities			107,798		9,331
	Itau CorpBanca		Banks			649,633		4,925
	Latam Airlines Group SA		Airlines			1,215		13,448
	Parque Arauco SA		Real Estate Management & Development			2,321		6,630
	Plaza SA		Real Estate Management & Development			941		2,363
	S.A.C.I. Falabella		Multiline Retail			2,799		15,663


								197,050

	Colombia 2.5%
d	Almacenes Exito SA		Food & Staples Retailing			819		4,149
	Bancolombia SA		Banks			1,086		12,332
	Cementos Argos SA		Construction Materials			2,021		4,323
a	Corporacion Financiera Colombiana SA		Diversified Financial Services			428		3,450
	Ecopetrol SA		Oil, Gas & Consumable Fuels			18,757		15,907
	Grupo Agros SA		Construction Materials			1,288		6,317
	Grupo Inversiones Suramericana SA		Diversified Financial Services			993		9,420
	Interconexion Electrica SA ESP		Electric Utilities			1,665		8,731


								64,629

	Mexico 22.1%
	Alfa SAB de CV		Industrial Conglomerates			12,070		10,594
	Alpek SAB de CV		Chemicals			1,472		1,713
a	Alsea de Mexico S.A.B de C.V.		Hotels, Restaurants & Leisure			2,039		4,738
	America Movil SAB de CV, L		Wireless Telecommunication Services			108,556		80,493
	Arca Continental SAB de CV		Beverages			1,541		8,325
	Banco del Bajio SA		Banks			2,693		4,451
	Banco Santander (Mexico), SA, Institucion de Banca Multiple, Grupo Financiero Santander, B		Banks			2,272		2,865
	Becle SA de CV		Beverages			2,168		3,194
	Cemex SAB de CV		Construction Materials			59,933		23,343
	Coca-Cola FEMSA SA de CV		Beverages			2,040		12,408
	Concentradora Fibra Danhos SA de CV		Equity Real Estate Investment Trusts (REITs	)		895		1,245
	El Puerto de Liverpool SAB de CV		Multiline Retail			770		4,217
	Fibra Uno Administracion SA de CV		Equity Real Estate Investment Trusts (REITs	)		12,021		17,559
	Fomento Economico Mexicano SAB de CV		Beverages			8,339		76,468



franklintempleton.com	Semiannual Report	247

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin FTSE Latin America ETF(continued)



		Industry		Shares		Value
	Common Stocks (continued)
	Mexico (continued)
c	GMexico Transportes SAB de CV, 144A		Road & Rail		1,697	$	2,109
	Gruma SAB de CV		Food Products		795		8,131
	Grupo Aeroportuario del Centro Norte SAB de CV		Transportation Infrastructure		1,264		7,495
	Grupo Aeroportuario del Pacifico SAB de CV		Transportation Infrastructure		1,397		13,437
	Grupo Aeroportuario del Sureste SAB de CV, B		Transportation Infrastructure		800		12,222
	Grupo Bimbo SAB de CV, A		Food Products		9,418		17,167
	Grupo Carso SAB de CV		Industrial Conglomerates		1,882		5,522
	Grupo Comercial Chedraui SA de CV		Food & Staples Retailing		1,180		1,844
	Grupo Elektra SAB de CV		Banks		256		18,149
	Grupo Financiero Banorte SAB de CV		Banks		11,129		59,788
	Grupo Financiero Inbursa SAB de CV		Banks		8,928		11,350
	Grupo Lala SAB de CV		Food Products		2,276		2,609
	Grupo Mexico SAB de CV, B		Metals & Mining		14,191		33,163
	Grupo Televisa SA		Media		8,493		16,617
	Industrias Bachoco SAB de CV, B		Food Products		633		2,785
	Industrias Penoles SA		Metals & Mining		490		6,519
a	Infraestructura Energetica Nova SAB de CV		Gas Utilities		2,045		8,124
	Kimberly-Clark de Mexico SAB de CV, A		Household Products		3,284		6,592
	Megacable Holdings SAB de CV		Media		1,181		4,754
	Nemak SAB de CV		Auto Components		2,300		1,037
	Orbia Advance Corp SAB de CV		Chemicals		4,095		7,987
	Promotora y Operadora de Infraestructura SAB de CV		Transportation Infrastructure		844		7,564
	Regional SAB de CV		Banks		903		4,139
a	Telesites SAB de CV		Diversified Telecommunication Services		4,973		3,284
	Wal-Mart de Mexico SAB de CV, V		Food & Staples Retailing		20,411		60,456


							574,457

	Peru 0.5%
	Compania de Minas Buenaventura SA, ADR		Metals & Mining		834		12,660

	United States 1.2%
	JBS SA		Food Products		3,800		29,914

	Total Common Stocks (Cost $2,005,036)						1,984,005

	Preferred Stocks 23.4%
	Brazil 21.7%
a	Alpargatas SA, pfd.		Textiles, Apparel & Luxury Goods		750		4,663
e	Banco Bradesco SA, 2.969%, pfd.		Banks		15,920		129,641
e	Banco do Estado do Rio Grande do Sul SA, 9.761%, pfd., B		Banks		800		4,331
e	Bradespar SA, 3.926%, pfd.		Metals & Mining		900		6,819
a	Braskem SA, pfd., A		Chemicals		700		5,465
e	Centrais Eletricas Brasileiras SA, 3.372%, pfd., B		Electric Utilities		900		9,079
e	Cia de Transmissao de Energia Eletrica Paulista, 9.802%, pfd.		Electric Utilities		800		4,744
e	Cia Energetica de Sao Paulo, 3.112%, pfd., B		Independent Power and Renewable Electricity Producers		700		4,789
e	Companhia Brasileira de Distribuicao, 2.023%, pfd., A		Food & Staples Retailing		619		11,859
e	Companhia Energetica de Minas Gerais, 4.152%, pfd.		Electric Utilities		3,700		12,729
e	Companhia Paranaense de Energia, 2.927%, pfd., B		Electric Utilities		400		4,764
e	Gerdau SA, 2.432%, pfd.		Metals & Mining		4,100		12,953
e	Itau Unibanco Holding SA, 4.930%, pfd.		Banks		18,700		157,262
e	Itausa-Investimentos Itau SA, 5.463, pfd.		Banks		17,200		54,424
e	Lojas Americanas SA, 0.376%, pfd.		Multiline Retail		3,000		14,376
e	Petroleo Brasileiro SA, 4.123%, pfd.		Oil, Gas & Consumable Fuels		15,600		103,179
e	Telefonica Brasil SA, 6.735%, pfd.		Diversified Telecommunication Services		1,600		21,103
e	Usinas Siderurgicas de Minas Gerais SA Usiminas, 2.036%, pfd., A		Metals & Mining		1,600		3,000


							565,180



248	Semiannual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin FTSE Latin America ETF(continued)



		Industry		Shares		Value
	Preferred Stocks (continued)
	Chile 0.5%
e	Embotelladora Andina SA, 3.877%, pfd., B		Beverages		775	$	2,597
e	Sociedad Quimica y Minera de Chile SA, 0.006%, pfd., B		Chemicals		376		10,363


							12,960

	Colombia 1.2%
e	Bancolombia SA, 2.498%, pfd.		Banks		1,779		21,992
e	Grupo Aval Acciones y Valores SA, 4.231%, pfd.		Banks		15,903		5,943
e	Grupo de Inversiones Suramericana SA, 1.845%, pfd.		Diversified Financial Services		302		2,551

							30,486

	Total Preferred Stocks (Cost $611,869)						608,626

	Total Investments (Cost $2,616,905) 99.8%						2,592,631
	Other Assets, less Liabilities 0.2%						5,908

	Net Assets 100.0%					$	2,598,539

See Abbreviations on page 322.

^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 September 30, 2019, the value of this security was $7,757, representing 0.3% 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. These securities have been deemed liquid under guidelines approved by the Fund’s Board of Trustees. At September 30, 2019, the aggregate value of these securities was $9,866, representing 0.4% 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.



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FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin FTSE Mexico ETF


	Six Months Ended September 30, 2019 (unaudited)			Year Ended March 31,
	Six Months Ended September 30, 2019 (unaudited)			2019			2018^a
Per share operating performance (for a share outstanding throughout the period)

Net asset value, beginning of period	$	22.11		$	24.98		$	24.90


Income from investment operations^b:

Net investment income^c		0.44			0.51			0.12

Net realized and unrealized gains (losses)		(0.53	)		(2.86	)		0.04


Total from investment operations		(0.09	)		(2.35	)		0.16


Less distributions from net investment income		(0.31	)		(0.52	)		(0.08	)


Net asset value, end of period	$	21.71		$	22.11		$	24.98


Total return^d		(0.46)%			(9.28)%			0.63%

Ratios to average net assets^e

Total expenses		0.19%			0.19%			0.19%

Net investment income		3.99%			2.21%			1.18%

Supplemental data

Net assets, end of period (000’s)		$4,342			$4,422			$2,498

Portfolio turnover rate^f		8.50%			10.31%			9.64%

Portfolio turnover rate excluding portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely or in part for cash^f,g		8.50%			—%			—%

^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.

^gEffective September 30, 2019.



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

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, September 30, 2019 (unaudited)

Franklin FTSE Mexico ETF



		Industry			Shares		Value
	Common Stocks 99.9%
	Mexico 99.9%
	Alfa SAB de CV		Industrial Conglomerates			97,028	$	85,165
	Alpek SAB de CV		Chemicals			12,068		14,040
a	Alsea de Mexico S.A.B de C.V.		Hotels, Restaurants & Leisure			16,672		38,742
	America Movil SAB de CV, L		Wireless Telecommunication Services			817,520		606,184
	Arca Continental SAB de CV		Beverages			12,428		67,144
	Banco del Bajio SA		Banks			22,040		36,425
	Banco Santander (Mexico), SA, Institucion de Banca Multiple, Grupo Financiero Santander, B		Banks			18,000		22,701
	Becle SA de CV		Beverages			17,552		25,860
	Cemex SAB de CV		Construction Materials			395,576		154,071
	Coca-Cola FEMSA SA de CV		Beverages			16,428		99,921
	Concentradora Fibra Danhos SA de CV		Equity Real Estate Investment Trusts (REITs	)		7,180		9,990
	El Puerto de Liverpool SAB de CV		Multiline Retail			6,320		34,612
	Fibra Uno Administracion SA de CV		Equity Real Estate Investment Trusts (REITs	)		88,400		129,126
	Fomento Economico Mexicano SAB de CV		Beverages			62,620		574,218
b	GMexico Transportes SAB de CV, 144A		Road & Rail			13,796		17,147
	Gruma SAB de CV		Food Products			6,428		65,745
	Grupo Aeroportuario del Centro Norte SAB de CV		Transportation Infrastructure			10,248		60,770
	Grupo Aeroportuario del Pacifico SAB de CV		Transportation Infrastructure			11,264		108,338
	Grupo Aeroportuario del Sureste SAB de CV, B		Transportation Infrastructure			6,476		98,937
	Grupo Bimbo SAB de CV, A		Food Products			69,052		125,870
	Grupo Carso SAB de CV		Industrial Conglomerates			15,352		45,044
	Grupo Comercial Chedraui SA de CV		Food & Staples Retailing			9,720		15,192
	Grupo Elektra SAB de CV		Banks			1,852		131,297
	Grupo Financiero Banorte SAB de CV		Banks			83,832		450,368
	Grupo Financiero Inbursa SAB de CV		Banks			72,272		91,877
	Grupo Lala SAB de CV		Food Products			18,508		21,213
	Grupo Mexico SAB de CV, B		Metals & Mining			83,984		196,263
	Grupo Televisa SA		Media			64,568		126,330
	Industrias Bachoco SAB de CV, B		Food Products			5,160		22,700
	Industrias Penoles SA		Metals & Mining			3,968		52,789
a	Infraestructura Energetica Nova SAB de CV		Gas Utilities			16,488		65,504
	Kimberly-Clark de Mexico SAB de CV, A		Household Products			26,624		53,440
	Megacable Holdings SAB de CV		Media			9,596		38,624
	Nemak SAB de CV		Auto Components			19,008		8,568
	Orbia Advance Corp SAB de CV		Chemicals			32,968		64,303
	Promotora y Operadora de Infraestructura SAB de CV		Transportation Infrastructure			6,848		61,370
	Regional SAB de CV		Banks			7,256		33,255
a	Telesites SAB de CV		Diversified Telecommunication Services			41,408		27,348
	Wal-Mart de Mexico SAB de CV, V		Food & Staples Retailing			153,732		455,341

	Total Investments (Cost $4,659,333) 99.9%							4,335,832
	Other Assets, less Liabilities 0.1%							6,445

	Net Assets 100.0%						$	4,342,277

See Abbreviations on page 322.

^aNon-income producing.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Semiannual Report	251

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin FTSE Russia ETF


	Six Months Ended September 30, 2019 (unaudited)			Year Ended March 31,
	Six Months Ended September 30, 2019 (unaudited)			2019			2018^a
Per share operating performance (for a share outstanding throughout the period)

Net asset value, beginning of period	$	23.37		$	24.24		$	23.90


Income from investment operations^b:

Net investment income (loss)^c		1.35			1.03			(—	)^d

Net realized and unrealized gains (losses)		2.06			(1.26	)		0.34


Total from investment operations		3.41			(0.23	)		0.34


Less distributions from net investment income		(0.17	)		(0.64	)		—


Net asset value, end of period	$	26.61		$	23.37		$	24.24


Total return^e		14.61%			(0.63)%			1.42%

Ratios to average net assets^f

Total expenses		0.19%			0.19%			0.19%

Net investment income (loss)		10.45%			4.57%			(0.13)%

Supplemental data

Net assets, end of period (000’s)		$17,293			$11,683			$2,424

Portfolio turnover rate^g		4.82%			31.57%			7.58%

Portfolio turnover rate excluding portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely or in part for cash^g,h		4.82%			—%			—%

^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.

^hEffective September 30, 2019.



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

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, September 30, 2019 (unaudited)

Franklin FTSE Russia ETF



		Industry		Shares		Value
	Common Stocks 95.0%
	Russia 95.0%
	Aeroflot – Russian Airlines PJSC		Airlines		100,308	$	159,516
	Alrosa PJSC		Metals & Mining		357,318		410,283
	Federal Grid Co. Unified Energy System PJSC		Electric Utilities		49,859,693		142,749
	Federal Hydrogenerating Co.		Electric Utilities		22,010,352		176,978
	Gazprom PJSC		Oil, Gas & Consumable Fuels		794,443		2,765,995
	Inter RAO UES PJSC		Electric Utilities		5,468,502		378,389
	LUKOIL PJSC		Oil, Gas & Consumable Fuels		33,800		2,806,574
	Magnit PJSC		Food & Staples Retailing		7,904		433,436
	Magnitogorsk Iron & Steel Works		Metals & Mining		339,027		204,595
	MMC Norilsk Nickel PJSC		Metals & Mining		2,561		658,619
	Mobile TeleSystems PJSC		Wireless Telecommunication Services		105,989		432,892
	Moscow Exchange MICEX		Capital Markets		270,894		395,554
	Mosenergo PAO		Electric Utilities		1,533,376		53,186
	NLMK PJSC		Metals & Mining		178,646		391,585
	NovaTek PJSC		Oil, Gas & Consumable Fuels		40,417		817,528
	PhosAgro PJSC		Chemicals		6,760		259,012
	Polyus Gold OJSC		Metals & Mining		3,692		429,332
	Rosneft PJSC		Oil, Gas & Consumable Fuels		81,016		523,562
	Rosseti PJSC		Electric Utilities		5,652,855		107,590
	Rostelecom PJSC		Diversified Telecommunication Services		165,347		200,050
a	RussNeft PJSC		Oil, Gas & Consumable Fuels		8,502		75,556
	Sberbank of Russia PJSC		Banks		775,359		2,721,181
	Severstal PJSC		Metals & Mining		26,936		387,418
	Sistema PJSFC		Wireless Telecommunication Services		543,647		106,245
	Surgutneftegas PJSC		Oil, Gas & Consumable Fuels		448,370		244,631
	Tatneft PAO		Oil, Gas & Consumable Fuels		60,034		636,032
	Unipro PJSC		Independent Power and Renewable Electricity Producers		1,977,339		80,822
	VTB Bank PJSC		Banks		651,464,255		427,683

	Total Common Stocks (Cost $14,920,273)						16,426,993

	Preferred Stocks 4.9%
	Russia 4.9%
b	Bashneft PJSC, 9.547%, pfd.		Oil, Gas & Consumable Fuels		3,679		94,410
b	Surgutneftegas PJSC, 20.342%, pfd.		Oil, Gas & Consumable Fuels		483,366		279,072
b	Tatneft PJSC, 19.949%, pfd., 3		Oil, Gas & Consumable Fuels		5,902		57,007
b	Transneft PJSC, 7.147%, pfd.		Oil, Gas & Consumable Fuels		184		424,817

	Total Preferred Stocks (Cost $888,425)						855,306

	Total Investments (Cost $15,808,698) 99.9%						17,282,299
	Other Assets, less Liabilities 0.1%						10,969

	Net Assets 100.0%					$	17,293,268

See Abbreviations on page 322.

^aNon-income producing.

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



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Semiannual Report	253

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin FTSE Saudi Arabia ETF



	Six Months Ended September 30, 2019 (unaudited)			Year Ended March 31, 2019^a

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

Net asset value, beginning of period	$	27.89		$	24.71


Income from investment operations^b:

Net investment income^c		0.70			0.11

Net realized and unrealized gains (losses)		(2.51	)		3.07


Total from investment operations		(1.81	)		3.18


Less distributions from net investment income		(0.47	)		—


Net asset value, end of period	$	25.61		$	27.89


Total return^d		(6.70)%			12.87%

Ratios to average net assets^e

Total expenses		0.39%			0.39%

Net investment income		5.06%			0.93%

Supplemental data

Net assets, end of period (000’s)		$2,561			$2,789

Portfolio turnover rate^f		14.22%			12.41%

Portfolio turnover rate excluding portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely or in part for cash^f,g		14.22%			—%

^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.

^gEffective September 30, 2019.



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

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, September 30, 2019 (unaudited)

Franklin FTSE Saudi Arabia ETF



		Industry		Shares		Value
	Common Stocks 99.7%
	Saudi Arabia 99.7%
	Abdullah Al Othaim Markets Co.		Food & Staples Retailing		808	$	17,792
	Advanced Petrochemical Co.		Chemicals		2,118		27,384
	Al-Rajhi Bank		Banks		19,586		330,506
	Alinma Bank		Banks		12,426		74,466
	Almarai Co. JSC		Food Products		4,636		61,485
	BankAl-Jazira		Banks		7,370		26,563
	Bank Albilad		Banks		6,742		47,628
	Bupa Arabia for Cooperative Insurance Co.		Insurance		1,140		32,335
	Dallah Healthcare Co.		Health Care Providers & Services		524		6,789
a	Dar Al Arkan Real Estate Development Co.		Real Estate Management & Development		9,708		30,900
a	Emaar Economic City		Real Estate Management & Development		7,640		20,204
a	Etihad Etisalat Co.		Wireless Telecommunication Services		6,922		44,545
a	Fawaz Abdulaziz Al Hokair & Co.		Specialty Retail		1,194		8,212
	Jarir Marketing Co.		Specialty Retail		1,078		45,405
a	Mobile Telecommunications Co.		Wireless Telecommunication Services		5,246		16,754
	Mouwasat Medical Services Co.		Health Care Providers & Services		880		20,597
	National Commercial Bank		Banks		21,560		264,672
	National Petrochemical Co.		Chemicals		2,898		18,387
a	Rabigh Refining and Petrochemical Co.		Oil, Gas & Consumable Fuels		4,018		21,273
	Riyad Bank		Banks		17,210		111,944
	Sahara International Petrochemical Co.		Chemicals		7,676		36,874
	Samba Financial Group		Banks		13,486		102,820
	Saudi Airlines Catering Co.		Hotels, Restaurants & Leisure		696		16,253
	Saudi Arabian Fertilizer Co.		Chemicals		3,650		78,134
a	Saudi Arabian Mining Co.		Metals & Mining		7,058		85,422
	Saudi Basic Industries Corp.		Chemicals		14,806		363,124
	Saudi Cement Co.		Construction Materials		1,498		28,433
	Saudi Electricity Co.		Electric Utilities		14,008		79,540
	Saudi Ground Services Co.		Transportation Infrastructure		1,638		14,366
	Saudi Industrial Investment Group		Chemicals		5,104		31,403
	Saudi Pharmaceutical Industries & Medical Appliances Corp.		Pharmaceuticals		1,078		7,558
a	Saudi Research & Marketing Group		Media		602		12,807
	Saudi Telecom Co.		Diversified Telecommunication Services		9,656		280,063
a	SavolaAl-Azizia United Co.		Food Products		4,800		39,475
a	Seera Group Holdings		Hotels, Restaurants & Leisure		2,696		13,368
	Southern Province Cement Co.		Construction Materials		1,258		19,149
a	The Company for Cooperative Insurance		Insurance		1,124		20,315
	The Qassim Cement		Construction Materials		878		12,452
	Yanbu Cement		Construction Materials		1,646		15,204
	Yanbu National Petrochemical Co.		Chemicals		4,750		67,745

	Total Investments (Cost $2,502,418) 99.7%						2,552,346
	Other Assets, less Liabilities 0.3%						8,212

	Net Assets 100.0%					$	2,560,558

See Abbreviations on page 322.

^aNon-income producing.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Semiannual Report	255

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin FTSE South Africa ETF



	Six Months Ended September 30, 2019 (unaudited)			Year Ended March 31, 2019^a

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

Net asset value, beginning of period	$	26.62		$	24.42


Income from investment operations^b:

Net investment income^c		2.42			0.22

Net realized and unrealized gains (losses)		(4.11	)		2.04


Total from investment operations		(1.69	)		2.26


Less distributions from net investment income		(0.38	)		(0.06	)


Net asset value, end of period	$	24.55		$	26.62


Total return^d		(6.50)%			9.26%

Ratios to average net assets^e

Total expenses		0.19%			0.19%

Net investment income		17.98%			1.75%

Supplemental data

Net assets, end of period (000’s)		$2,455			$2,662

Portfolio turnover rate^f		11.35%			7.12%

Portfolio turnover rate excluding portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely or in part for cash^f,g		11.35%			—%

^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.

^gEffective September 30, 2019.



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

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, September 30, 2019 (unaudited)

Franklin FTSE South Africa ETF



		Industry			Shares		Value
	Common Stocks 100.0%
	Isle Of Man 0.2%
	MAS Real Estate Inc.		Real Estate Management & Development			4,048	$	4,859

	Romania 1.2%
	NEPI Rockcastle PLC		Real Estate Management & Development			3,292		28,820

	South Africa 98.6%
	Absa Group Ltd.		Banks			6,760		68,155
	African Rainbow Minerals Ltd.		Metals & Mining			972		9,022
	Anglo American Platinum Ltd.		Metals & Mining			564		33,962
	AngloGold Ashanti Ltd.		Metals & Mining			3,880		72,697
	Aspen Pharmacare Holdings Ltd.		Pharmaceuticals			3,580		20,294
	Assore Ltd.		Metals & Mining			314		5,282
	AVI Ltd.		Food Products			3,060		16,603
	Barloworld Ltd.		Trading Companies & Distributors			1,988		15,157
	Bid Corp. Ltd.		Food & Staples Retailing			3,104		65,929
	Bidvest Group Ltd.		Industrial Conglomerates			3,158		39,741
	Capitec Bank Holdings Ltd.		Banks			498		42,285
	Clicks Group Ltd.		Food & Staples Retailing			2,360		33,463
	Coronation Fund Managers Ltd.		Capital Markets			2,416		6,643
a	Dis-Chem Pharmacies Ltd., Reg S		Food & Staples Retailing			3,672		5,449
	Discovery Ltd.		Insurance			3,388		25,484
	Distell Group Holdings Ltd.		Beverages			750		6,727
	Exxaro Resources Ltd.		Oil, Gas & Consumable Fuels			2,348		20,224
	FirstRand Ltd.		Diversified Financial Services			29,736		121,964
	Fortress REIT Ltd.		Equity Real Estate Investment Trusts (REITs	)		8,160		5,091
	Fortress REIT Ltd., A		Equity Real Estate Investment Trusts (REITs	)		10,964		14,896
	Gold Fields Ltd.		Metals & Mining			7,604		38,174
	Growthpoint Properties Ltd.		Equity Real Estate Investment Trusts (REITs	)		27,092		41,274
b	Harmony Gold Mining Co. Ltd.		Metals & Mining			4,272		12,200
	Hyprop Investments Ltd.		Equity Real Estate Investment Trusts (REITs	)		2,346		9,568
b	Impala Platinum Holdings Ltd.		Metals & Mining			6,844		43,007
	Investec Ltd.		Capital Markets			2,818		14,840
	JSE Ltd.		Capital Markets			780		6,739
	KAP Industrial Holdings Ltd.		Industrial Conglomerates			24,668		7,695
	Kumba Iron Ore Ltd.		Metals & Mining			482		11,904
	Liberty Holdings Ltd.		Insurance			1,124		8,332
	Life Healthcare Group Holdings Ltd.		Health Care Providers & Services			12,980		19,415
	Massmart Holdings Ltd.		Food & Staples Retailing			956		2,763
	Momentum Metropolitan Holdings		Insurance			9,302		11,442
	Motus Holdings Ltd.		Specialty Retail			1,622		7,362
	Mr. Price Group Ltd.		Specialty Retail			2,342		24,443
	MTN Group Ltd.		Wireless Telecommunication Services			16,838		106,941
b	MultiChoice Group Ltd.		Media			3,990		31,044
	Naspers Ltd., N		Internet & Direct Marketing Retail			3,118		471,952
	Nedbank Group Ltd.		Banks			3,726		55,738
	Netcare Ltd.		Health Care Providers & Services			13,476		15,598
b	Northam Platinum Ltd.		Metals & Mining			3,278		17,970
	Old Mutual Ltd.		Insurance			44,200		56,349
a	PepKor Holdings Ltd., Reg S		Specialty Retail			6,516		7,628
	Pick ‘N Pay Stores Ltd.		Food & Staples Retailing			3,186		12,511
	Pioneer Foods Group Ltd.		Food Products			1,290		9,019
	PSG Group Ltd.		Diversified Financial Services			1,526		21,252
	Rand Merchant Investment Holdings Ltd.		Insurance			7,046		13,913
	Redefine Properties Ltd.		Equity Real Estate Investment Trusts (REITs	)		52,710		27,220
	Remgro Ltd.		Diversified Financial Services			4,816		51,833
	Resilient REIT Ltd.		Equity Real Estate Investment Trusts (REITs	)		2,514		10,744
	Reunert Ltd.		Industrial Conglomerates			1,492		6,790
	RMB Holdings Ltd.		Diversified Financial Services			7,010		34,721
	Sanlam Ltd.		Insurance			16,344		80,391



franklintempleton.com	Semiannual Report	257

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin FTSE South Africa ETF(continued)



		Industry			Shares		Value
	Common Stocks (continued)
	South Africa (continued)
	Santam Ltd.		Insurance			388	$	7,523
	Sappi Ltd.		Paper & Forest Products			5,120		12,680
	Sasol Ltd.		Chemicals			5,222		87,154
	Shoprite Holdings Ltd.		Food & Staples Retailing			4,410		35,670
b	Sibanye Gold Ltd.		Metals & Mining			20,234		27,997
	Standard Bank Group Ltd.		Banks			11,982		138,047
b	Super Group Ltd.		Specialty Retail			3,376		6,179
	Telkom SA SOC Ltd.		Diversified Telecommunication Services			2,746		12,784
	The Foschini Group Ltd.		Specialty Retail			2,150		23,178
	The Spar Group Ltd.		Food & Staples Retailing			1,804		22,726
	Tiger Brands Ltd.		Food Products			1,550		21,525
	Truworths International Ltd.		Specialty Retail			3,994		13,961
	Tsogo Sun Gaming Ltd.		Hotels, Restaurants & Leisure			4,884		4,249
b	Tsogo Sun Hotels Ltd.		Hotels, Restaurants & Leisure			4,884		1,305
	Vodacom Group Ltd.		Wireless Telecommunication Services			5,580		44,029
	Vukile Property Fund Ltd.		Equity Real Estate Investment Trusts (REITs	)		8,262		10,353
	Woolworths Holdings Ltd.		Multiline Retail			8,942		32,483

								2,421,683

	Total Investments (Cost $2,641,499) 100.0%							2,455,362
	Other Assets, less Liabilities 0.0%^†							(146	)

	Net Assets 100.0%						$	2,455,216

See Abbreviations on page 322.

^†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 September 30, 2019, the aggregate value of these securities was $13,077, representing 0.5% of net assets.

^bNon-income producing.



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

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin FTSE South Korea ETF


	Six Months Ended September 30, 2019 (unaudited)			Year Ended March 31,
	Six Months Ended September 30, 2019 (unaudited)			2019			2018^a

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

Net asset value, beginning of period	$	21.19		$	25.98		$	25.75


Income from investment operations^b:

Net investment income^c		0.07			0.40			0.10

Net realized and unrealized gains (losses)		(1.58	)		(4.81	)		0.40


Total from investment operations		(1.51	)		(4.41	)		0.50


Less distributions from net investment income		(0.05	)		(0.38	)		(0.27	)


Net asset value, end of period	$	19.63		$	21.19		$	25.98


Total return^d		(7.12)%			(16.92)%			1.95%

Ratios to average net assets^e

Total expenses		0.09%			0.09%			0.09%

Net investment income		0.69%			1.74%			0.94%

Supplemental data

Net assets, end of period (000’s)		$13,740			$16,948			$25,981

Portfolio turnover rate^f		16.95%			5.21%			3.85%

Portfolio turnover rate excluding portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely or in part for cash^f,g		2.34%			0.00%			0.00%

^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.

^gEffective September 30, 2019.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Semiannual Report	259

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, September 30, 2019 (unaudited)

Franklin FTSE South Korea ETF



		Industry		Shares		Value
	Common Stocks 95.6%
	South Korea 95.6%
	Amorepacific Corp.		Personal Products		805	$	94,555
	AmorePacific Group		Personal Products		742		40,569
	BGF Co. Ltd.		Industrial Conglomerates		672		3,371
	BGF Retail Co. Ltd.		Food & Staples Retailing		154		25,363
	BNK Financial Group Inc.		Banks		7,280		43,760
a	Celltrion Healthcare Co. Ltd.		Health Care Providers & Services		1,463		61,644
a	Celltrion Inc.		Biotechnology		2,492		341,670
	Cheil Worldwide Inc.		Media		1,771		36,718
	CJ CheilJedang Corp.		Food Products		196		38,425
	CJ Corp.		Industrial Conglomerates		315		21,594
	CJ ENM Co. Ltd.		Internet & Direct Marketing Retail		245		34,697
a	CJ Logistics Corp.		Road & Rail		182		21,986
	Daelim Industrial Co. Ltd.		Construction & Engineering		686		59,645
a	Daewoo Engineering & Construction Co. Ltd.		Construction & Engineering		4,522		18,260
a	Daewoo Shipbuilding & Marine Engineering Co. Ltd.		Machinery		1,218		31,159
	DB Insurance Co. Ltd.		Insurance		1,190		51,335
	DGB Financial Group Inc.		Banks		3,815		23,761
	Dongsuh Cos. Inc.		Food & Staples Retailing		805		12,114
	Doosan Bobcat Inc.		Machinery		616		18,230
b	Doosan Corp.		Industrial Conglomerates		147		12,867
a	Doosan Heavy Industries and Construction Co. Ltd.		Electrical Equipment		3,017		17,151
a	Doosan Infracore Co. Ltd.		Machinery		3,409		17,955
	E-MART Inc.		Food & Staples Retailing		511		48,274
	Fila Korea Ltd.		Textiles, Apparel & Luxury Goods		1,316		63,701
	GS Engineering & Construction Corp.		Construction & Engineering		1,477		40,748
	GS Holdings Corp.		Oil, Gas & Consumable Fuels		1,288		54,162
	GS Retail Co. Ltd.		Food & Staples Retailing		679		23,416
	Hana Financial Group Inc.		Banks		7,504		221,139
	Hankook Tire & Technology Co. Ltd.		Auto Components		1,897		51,146
	Hanmi Pharm Co. Ltd.		Pharmaceuticals		179		41,303
	Hanmi Science Co. Ltd.		Pharmaceuticals		350		11,587
	Hanon Systems		Auto Components		4,102		41,152
	Hanssem Co. Ltd.		Household Durables		252		12,641
a	Hanwha Aerospace Co. Ltd.		Aerospace & Defense		903		31,820
	Hanwha Chemical Corp.		Chemicals		2,030		30,463
	Hanwha Corp.		Industrial Conglomerates		1,085		22,904
a	Hanwha Corp.		Industrial Conglomerates		553		6,357
	Hanwha Life Insurance Co. Ltd.		Insurance		7,063		14,053
	HDC Holdings Co. Ltd.		Construction & Engineering		980		10,569
	HDC Hyundai DevelopmentCo-Engineering & Construction		Construction & Engineering		784		21,531
a	Helixmith Co. Ltd.		Biotechnology		462		25,608
	Hite Jinro Co. Ltd.		Beverages		749		17,032
a	HLB Inc.		Leisure Equipment & Products		896		45,244
	Hotel Shilla Co. Ltd.		Specialty Retail		784		56,499
	Hyundai Construction Equipment Co. Ltd.		Machinery		308		8,137
	Hyundai Department Store Co. Ltd.		Multiline Retail		385		25,138
	Hyundai Engineering & Construction Co. Ltd.		Construction & Engineering		1,841		71,261
	Hyundai Glovis Co. Ltd.		Air Freight & Logistics		469		61,166
	Hyundai Heavy Industries Holdings Co. Ltd.		Machinery		266		77,722
	Hyundai Marine & Fire Insurance Co. Ltd.		Insurance		1,540		33,989
	Hyundai Mipo Dockyard Co. Ltd.		Machinery		511		19,267
	Hyundai Mobis Co. Ltd.		Auto Components		1,652		348,037
	Hyundai Motor Co.		Automobiles		3,584		401,501
	Hyundai Steel Co.		Metals & Mining		1,897		61,692
	Hyundai Wia Corp.		Auto Components		399		17,012
	Industrial Bank of Korea		Banks		6,867		75,780
	Kakao Corp.		Interactive Media & Services		1,267		143,526
	Kangwon Land Inc.		Hotels, Restaurants & Leisure		2,695		66,578



260	Semiannual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin FTSE South Korea ETF(continued)



		Industry		Shares		Value
	Common Stocks (continued)
	South Korea (continued)
	KB Financial Group Inc.		Banks		9,828	$	350,839
	KCC Corp.		Building Products		140		25,515
	KEPCO Plant Service and Engineering Co. Ltd.		Commercial Services & Supplies		539		15,569
	Kia Motors Corp.		Automobiles		6,517		248,443
	Korea Aerospace Industries Ltd.		Aerospace & Defense		1,638		53,543
a	Korea Electric Power Corp.		Electric Utilities		6,433		139,292
	Korea Gas Corp.		Gas Utilities		672		22,247
	Korea Investment Holdings Co. Ltd.		Capital Markets		959		60,371
a	Korea Shipbuilding & Offshore Engineering Co Ltd.		Machinery		1,085		112,478
	Korea Zinc Co. Ltd.		Metals & Mining		252		94,383
	Korean Air Lines Co. Ltd.		Airlines		1,190		22,782
	KT&G Corp.		Tobacco		2,800		246,959
	Kumho Petrochemical Co. Ltd.		Chemicals		448		26,817
	LG Chem Ltd.		Chemicals		1,155		289,197
	LG Corp.		Industrial Conglomerates		2,282		133,545
a	LG Display Co. Ltd.		Electronic Equipment, Instruments & Components		5,691		67,322
	LG Electronics Inc.		Household Durables		2,716		153,040
	LG Household & Health Care Ltd.		Personal Products		224		244,759
	LG Uplus Corp.		Diversified Telecommunication Services		4,907		55,997
	Lotte Chemical Corp.		Chemicals		371		73,198
	Lotte Chilsung Beverage Co. Ltd.		Beverages		91		10,537
	Lotte Corp.		Industrial Conglomerates		651		19,729
	LOTTE Fine Chemical Co. Ltd.		Chemicals		441		16,812
	Lotte Shopping Co. Ltd.		Multiline Retail		287		30,952
	LS Corp.		Electrical Equipment		448		17,772
	Mando Corp.		Auto Components		847		25,633
	Medy-tox Inc.		Biotechnology		102		30,707
a	Mirae Asset Daewoo Co. Ltd.		Capital Markets		3,815		13,491
	Mirae Asset Daewood Co. Ltd.		Capital Markets		9,541		59,823
	Naver Corp.		Interactive Media & Services		3,381		443,771
	NCsoft Corp.		Entertainment		427		185,986
a	Netmarble Corp.		Entertainment		441		34,841
	NH Investment & Securities Co. Ltd.		Capital Markets		3,248		34,485
a	NHN Corp.		Entertainment		245		12,761
	Nongshim Co. Ltd.		Food Products		77		16,061
	OCI Co. Ltd.		Chemicals		462		26,844
	Orion Corp.		Food Products		553		45,492
	Ottogi Corp.		Food Products		35		17,059
	Paradise Co. Ltd.		Hotels, Restaurants & Leisure		1,162		17,972
	POSCO		Metals & Mining		1,722		326,793
	POSCO Chemical Co. Ltd.		Construction Materials		546		20,153
	Posco International Corp.		Trading Companies & Distributors		1,253		20,008
	S-1 Corp.		Commercial Services & Supplies		490		40,186
	S-Oil Corp.		Oil, Gas & Consumable Fuels		1,036		86,092
a	Samsung Biologics Co. Ltd.		Life Sciences Tools & Services		336		86,377
	Samsung C&T Corp.		Industrial Conglomerates		2,121		159,055
	Samsung Card Co. Ltd.		Consumer Finance		749		22,010
	Samsung Electro-Mechanics Co. Ltd.		Electronic Equipment, Instruments & Components		1,407		121,156
	Samsung Electronics Co. Ltd.		Technology Hardware, Storage & Peripherals		60,459		2,479,216
a	Samsung Engineering Co. Ltd.		Construction & Engineering		3,983		55,941
	Samsung Fire & Marine Insurance Co. Ltd.		Insurance		833		155,297
a	Samsung Heavy Industries Co. Ltd.		Machinery		11,025		72,631
	Samsung Life Insurance Co. Ltd.		Insurance		1,603		95,283
	Samsung SDI Co. Ltd.		Electronic Equipment, Instruments & Components		1,330		247,954
	Samsung SDS Co. Ltd.		IT Services		805		128,205
	Samsung Securities Co. Ltd.		Capital Markets		1,596		47,167
	Shinhan Financial Group Co. Ltd.		Banks		11,459		400,440



franklintempleton.com	Semiannual Report	261

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin FTSE South Korea ETF(continued)



		Industry		Shares		Value
	Common Stocks (continued)
	South Korea (continued)
	Shinsegae Co. Ltd.		Multiline Retail		175	$	38,404
a	SillaJen Inc.		Biotechnology		1,379		9,384
	SK Holdings Co. Ltd.		Industrial Conglomerates		840		143,260
	SK Hynix Inc.		Semiconductors & Semiconductor Equipment		13,118		901,475
	SK Innovation Co. Ltd.		Oil, Gas & Consumable Fuels		1,449		201,090
	SK Networks Co. Ltd.		Trading Companies & Distributors		3,633		16,887
	SK Telecom Co. Ltd.		Wireless Telecommunication Services		588		118,716
	SKC Co. Ltd.		Chemicals		469		15,605
	Ssangyong Cement Industrial Co. Ltd.		Construction Materials		2,674		13,659
	Woongjin Coway Co. Ltd.		Household Durables		1,428		100,998
	Woori Financial Group Inc.		Banks		14,140		147,175
	Yuhan Corp.		Pharmaceuticals		217		41,453

	Total Common Stocks (Cost $16,946,332)						13,138,078

	Preferred Stocks 4.1%
	South Korea 4.1%
c	Amorepacific Corp., 1.617%, pfd.		Personal Products		273		16,729
c	CJ CheilJedang Corp., 3.381%, pfd.		Food Products		42		3,687
c	Hyundai Motor Co., 4.829%, pfd., 2		Automobiles		910		64,590
c	Hyundai Motor Co., 5.301%, pfd.		Automobiles		574		36,662
c	LG Chem Ltd., 3.612%, pfd.		Chemicals		196		27,446
c	LG Electronics Inc., 2.914%, pfd.		Household Durables		469		10,763
c	LG Household & Health Care Ltd., 1.206%, pfd.		Personal Products		53		34,162
c	Samsung Electronics Co. Ltd., 3.587%, pfd.		Technology Hardware, Storage & Peripherals		10,605		350,205
c	Samsung Fire & Marine Insurance Co. Ltd., 7.080%, pfd.		Insurance		70		9,510

	Total Preferred Stocks (Cost $657,045)						553,754

	Total Investments (Cost $17,603,377) 99.7%						13,691,832
	Other Assets, less Liabilities 0.3%						47,956

	Net Assets 100.0%					$	13,739,788

See Abbreviations on page 322.

^aNon-income producing.

^bFair valued using significant unobservable inputs. See Note 8 regarding fair value measurements.

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

Futures Contracts

At September 30, 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

34,298

10/10/19

717

*As of period end.

See Note 7 regarding other derivative information.



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

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin FTSE Switzerland ETF


	Six Months Ended September 30, 2019 (unaudited)			Year Ended March 31,
	Six Months Ended September 30, 2019 (unaudited)			2019			2018^a

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

Net asset value, beginning of period	$	23.86		$	23.11		$	23.56


Income from investment operations^b:

Net investment income^c		0.25			0.53			0.22

Net realized and unrealized gains (losses)		1.82			0.83			(0.67	)


Total from investment operations		2.07			1.36			(0.45	)


Less distributions from net investment income		(0.30	)		(0.61	)		—


Net asset value, end of period	$	25.63		$	23.86		$	23.11


Total return^d		8.72%			6.13%			(1.91)%

Ratios to average net assets^e

Total expenses		0.09%			0.09%			0.09%

Net investment income		1.97%			2.35%			6.54%

Supplemental data

Net assets, end of period (000’s)		$7,689			$2,386			$2,311

Portfolio turnover rate^f		5.85%			14.06%			2.72%

Portfolio turnover rate excluding portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely or in part for cash^f,g		5.85%			—%			—%

^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.

^gEffective September 30, 2019.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Semiannual Report	263

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, September 30, 2019 (unaudited)

Franklin FTSE Switzerland ETF



		Industry		Shares		Value

	Common Stocks 99.8%
	Switzerland 99.8%
	ABB Ltd.		Electrical Equipment		11,622	$	228,559
	Adecco Group AG		Professional Services		1,044		57,815
a	Alcon Inc.		Health Care Equipment & Supplies		3,117		181,928
	Baloise Holding AG		Insurance		315		56,483
	Banque Cantonale Vaudoise		Banks		18		13,791
	Barry Callebaut AG		Food Products		15		30,958
	Chocoladefabriken Lindt & Spruengli AG		Food Products		14		103,475
	Clariant AG		Chemicals		1,362		26,539
	Compagnie Financiere Richemont SA		Textiles, Apparel & Luxury Goods		3,264		239,673
	Credit Suisse Group AG		Capital Markets		16,590		203,559
	DKSH Holding AG		Professional Services		243		12,141
	Dufry AG		Specialty Retail		195		16,325
	EMS-Chemie Holding AG		Chemicals		48		29,917
	Flughafen Zurich AG		Transportation Infrastructure		129		23,907
	Geberit AG		Building Products		243		116,145
	Georg Fischer AG		Machinery		27		23,408
	Givaudan AG		Chemicals		63		175,893
	Helvetia Holding AG		Insurance		222		30,657
	Julius Baer Group Ltd.		Capital Markets		1,467		65,056
	Kuehne + Nagel International AG		Marine		342		50,418
	LafargeHolcim Ltd., B		Construction Materials		3,426		168,766
	Logitech International SA		Technology Hardware, Storage & Peripherals		990		40,190
	Lonza Group AG		Life Sciences Tools & Services		504		170,536
	Nestle SA		Food Products		14,352		1,558,476
	Novartis AG		Pharmaceuticals		11,985		1,040,146
	OC Oerlikon Corp. AG		Machinery		1,323		13,281
	Pargesa Holding SA, B		Diversified Financial Services		258		19,858
	Partners Group Holding AG		Capital Markets		111		85,247
	PSP Swiss Property AG		Real Estate Management & Development		267		33,926
	Roche Holding AG		Pharmaceuticals		147		42,575
	Roche Holding AG		Pharmaceuticals		3,864		1,125,507
	Schindler Holding AG		Machinery		129		28,798
	Schindler Holding AG, PC		Machinery		276		61,779
	SGS SA		Professional Services		34		84,356
	Sika AG		Chemicals		942		137,925
	Sonova Holding AG		Health Care Equipment & Supplies		375		87,249
	Straumann Holding AG		Health Care Equipment & Supplies		69		56,451
	Sulzer AG		Machinery		117		11,516
	Swatch Group AG		Textiles, Apparel & Luxury Goods		300		15,088
	Swatch Group AG		Textiles, Apparel & Luxury Goods		198		52,600
	Swiss Life Holding AG		Insurance		228		109,090
	Swiss Prime Site AG		Real Estate Management & Development		513		50,238
	Swiss Re AG		Insurance		1,875		195,745
	Swisscom AG		Diversified Telecommunication Services		174		85,905
	Temenos AG		Software		405		67,828
	UBS Group AG		Capital Markets		22,008		250,063
	Vifor Pharma AG		Pharmaceuticals		303		48,451
	Zurich Insurance Group AG		Insurance		903		345,932

	Total Investments (Cost $7,332,109) 99.8%						7,674,169
	Other Assets, less Liabilities 0.2%						14,620

	Net Assets 100.0%					$	7,688,789

See Abbreviations on page 322.

^aNon-income producing.



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

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin FTSE Taiwan ETF


	Six Months Ended September 30, 2019 (unaudited)			Year Ended March 31,
	Six Months Ended September 30, 2019 (unaudited)			2019			2018^a

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

Net asset value, beginning of period	$	24.72		$	26.34		$	25.59


Income from investment operations^b:

Net investment income (loss)^c		0.84			0.47			(0.02	)

Net realized and unrealized gains (losses)		0.18			(1.85	)		0.77


Total from investment operations		1.02			(1.38	)		0.75


Less distributions from net investment income		(0.01	)		(0.24	)		(—	)^d


Net asset value, end of period	$	25.73		$	24.72		$	26.34


Total return^e		4.13%			(5.15)%			2.93%

Ratios to average net assets^f

Total expenses		0.19%			0.19%			0.19%

Net investment income (loss)		6.74%			1.96%			(0.19)%

Supplemental data

Net assets, end of period (000’s)		$15,438			$14,834			$5,268

Portfolio turnover rate^g		2.31%			8.71%			3.63%

Portfolio turnover rate excluding portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely or in part for cash^g,h		2.31%			—%			—%

^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.

^hEffective September 30, 2019.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Semiannual Report	265

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, September 30, 2019 (unaudited)

Franklin FTSE Taiwan ETF



		Industry		Shares		Value

	Common Stocks 99.6%
	Taiwan 99.6%
	Acer Inc.		Technology Hardware, Storage & Peripherals		87,000	$	49,915
	Advantech Co. Ltd.		Technology Hardware, Storage & Peripherals		11,000		96,795
	ASE Industrial Holding Co. Ltd.		Semiconductors & Semiconductor Equipment		102,000		232,771
	Asia Cement Corp.		Construction Materials		72,000		100,488
	Asustek Computer Inc.		Technology Hardware, Storage & Peripherals		21,000		139,777
	AU Optronics Corp.		Electronic Equipment, Instruments & Components		267,000		67,644
	Capital Securities Corp.		Capital Markets		66,470		18,875
	Catcher Technology Co. Ltd.		Technology Hardware, Storage & Peripherals		23,000		174,217
	Cathay Financial Holding Co. Ltd.		Insurance		240,000		316,395
	Chailease Holding Co. Ltd.		Diversified Financial Services		37,080		149,398
	Chang Hwa Commercial Bank Ltd.		Banks		192,000		133,985
	Cheng Shin Rubber Industry Co. Ltd.		Auto Components		57,000		84,146
	Chicony Electronics Co. Ltd.		Technology Hardware, Storage & Peripherals		18,030		53,118
	China Airlines Ltd.		Airlines		81,000		23,706
	China Development Financial Holding Corp.		Insurance		423,000		125,982
a	China Life Insurance Co. Ltd.		Insurance		87,000		68,984
b	China Motor Corp.		Automobiles		8,400		12,624
	China Steel Corp.		Metals & Mining		375,000		278,006
	Chunghwa Telecom Co. Ltd.		Diversified Telecommunication Services		117,000		418,605
	Compal Electronics Inc.		Technology Hardware, Storage & Peripherals		126,000		72,697
	CTBC Financial Holding Co. Ltd.		Banks		552,000		366,523
	Delta Electronics Inc.		Electronic Equipment, Instruments & Components		66,000		281,874
	E.Sun Financial Holding Co. Ltd.		Banks		333,543		282,213
	Eclat Textile Co. Ltd.		Textiles, Apparel & Luxury Goods		6,000		80,453
	Epistar Corp.		Semiconductors & Semiconductor Equipment		30,000		23,449
	Eternal Materials Co. Ltd.		Chemicals		30,630		25,028
	EVA Airways Corp.		Airlines		72,000		31,678
a	Evergreen Marine Corp. Taiwan Ltd.		Marine		69,196		28,995
	Far Eastern International Bank		Banks		63,146		24,424
	Far Eastern New Century Corp.		Industrial Conglomerates		120,000		110,816
	Far EasTone Telecommunications Co. Ltd.		Wireless Telecommunication Services		48,000		112,169
	Feng Tay Enterprise Co. Ltd.		Textiles, Apparel & Luxury Goods		11,000		78,889
	First Financial Holding Co. Ltd.		Banks		300,000		210,801
	Formosa Chemicals & Fibre Corp.		Chemicals		105,000		293,429
	Formosa Petrochemical Corp.		Oil, Gas & Consumable Fuels		42,000		132,940
	Formosa Plastics Corp.		Chemicals		147,000		447,759
	Formosa Taffeta Co. Ltd.		Textiles, Apparel & Luxury Goods		30,000		32,684
	Foxconn Technology Co. Ltd.		Electronic Equipment, Instruments & Components		33,000		68,820
	Fubon Financial Holding Co. Ltd.		Insurance		222,000		318,784
	Giant Manufacturing Co. Ltd.		Leisure Equipment & Products		9,000		61,210
	Globalwafers Co. Ltd.		Semiconductors & Semiconductor Equipment		6,300		63,763
	Hon Hai Precision Industry Co. Ltd.		Electronic Equipment, Instruments & Components		363,000		856,472
	Hotai Motor Co. Ltd.		Specialty Retail		9,480		144,074
	HTC Corp.		Technology Hardware, Storage & Peripherals		21,000		24,029
	Hua Nan Financial Holdings Co. Ltd.		Banks		276,000		186,375
	Innolux Corp.		Electronic Equipment, Instruments & Components		261,000		55,524
	Inventec Corp.		Technology Hardware, Storage & Peripherals		93,000		64,149
	Largan Precision Co. Ltd.		Electronic Equipment, Instruments & Components		3,120		447,517
	Lite-On Technology Corp.		Technology Hardware, Storage & Peripherals		66,000		104,878
	MediaTek Inc.		Semiconductors & Semiconductor Equipment		45,000		535,222
	Mega Financial Holding Co. Ltd.		Banks		330,000		305,807
	Nan Ya Plastics Corp.		Chemicals		171,000		384,171
	Nanya Technology Corp.		Semiconductors & Semiconductor Equipment		24,000		62,273
	Novatek Microelectronics Corp. Ltd.		Semiconductors & Semiconductor Equipment		18,000		103,273
a	OBI Pharma Inc.		Biotechnology		4,194		18,858
	Oriental Union Chemical Corp.		Chemicals		21,000		14,925
	Pegatron Corp.		Technology Hardware, Storage & Peripherals		60,000		104,434



266	Semiannual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin FTSE Taiwan ETF(continued)



		Industry		Shares		Value

	Common Stocks (continued)
	Taiwan (continued)
	Pou Chen Corp.		Textiles, Apparel & Luxury Goods		81,000	$	103,781
	President Chain Store Corp.		Food & Staples Retailing		17,100		159,841
	Quanta Computer Inc.		Technology Hardware, Storage & Peripherals		81,000		147,774
	Realtek Semiconductor Corp.		Semiconductors & Semiconductor Equipment		14,000		103,789
	Shin Kong Financial Holding Co. Ltd.		Insurance		355,008		107,448
	SinoPac Financial Holdings Co. Ltd.		Banks		321,040		125,210
	Synnex Technology International Corp.		Electronic Equipment, Instruments & Components		42,000		49,142
	Taishin Financial Holding Co. Ltd.		Banks		309,114		137,995
	Taiwan Business Bank		Banks		135,822		55,818
	Taiwan Cement Corp.		Construction Materials		147,000		187,869
	Taiwan Cooperative Financial Holding Co. Ltd.		Banks		285,000		188,319
	Taiwan Fertilizer Co. Ltd.		Chemicals		21,000		30,798
	Taiwan Glass Industry Corp.		Building Products		51,000		19,151
	Taiwan High Speed Rail Corp.		Transportation Infrastructure		63,000		71,682
	Taiwan Mobile Co. Ltd.		Wireless Telecommunication Services		48,000		173,282
	Taiwan Secom Co. Ltd.		Commercial Services & Supplies		9,000		25,528
	Taiwan Semiconductor Manufacturing Co. Ltd.		Semiconductors & Semiconductor Equipment		364,000		3,191,284
	Teco Electric & Machinery Co. Ltd.		Electrical Equipment		54,000		43,514
	The Shanghai Commercial & Savings Bank Ltd.		Banks		99,000		166,253
a	TPK Holding Co. Ltd.		Electronic Equipment, Instruments & Components		9,000		16,216
	Transcend Information Inc.		Technology Hardware, Storage & Peripherals		9,000		18,682
	U-Ming Marine Transport Corp.		Marine		12,000		12,977
	Uni-President Enterprises Corp.		Food Products		147,000		354,417
	Unimicron Technology Corp.		Electronic Equipment, Instruments & Components		39,000		54,871
	United Microelectronics Corp.		Semiconductors & Semiconductor Equipment		333,000		143,828
	Vanguard International Semiconductor Corp.		Semiconductors & Semiconductor Equipment		27,000		54,567
	Walsin Lihwa Corp.		Electrical Equipment		93,000		43,466
	Walsin Technology Corp.		Electronic Equipment, Instruments & Components		15,000		84,369
	Wan Hai Lines Ltd.		Marine		21,000		12,353
	Wistron Corp.		Technology Hardware, Storage & Peripherals		84,000		67,824
	Yageo Corp.		Electronic Equipment, Instruments & Components		12,000		95,344
	Yuanta Financial Holding Co. Ltd.		Capital Markets		339,000		202,147
	Yulon Motor Co. Ltd.		Automobiles		27,000		17,101
	Yulon Nissan Motor Co. Ltd.		Automobiles		1,000		8,042

	Total Investments (Cost $14,744,842) 99.6%						15,381,492
	Other Assets, less Liabilities 0.4%						56,903

	Net Assets 100.0%					$	15,438,395

See Abbreviations on page 322.

^aNon-income producing.

^bFair valued using significant unobservable inputs. See Note 8 regarding fair value measurements.

At September 30, 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 MSCI Taiwan Index

Long

40,710

10/30/19

248

*As of period end.

See Note 7 regarding other derivative information.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Semiannual Report	267

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin FTSE United Kingdom ETF


	Six Months Ended September 30, 2019 (unaudited)			Year Ended March 31,
	Six Months Ended September 30, 2019 (unaudited)			2019			2018^a

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

Net asset value, beginning of period	$	24.23		$	25.23		$	24.89


Income from investment operations^b:

Net investment income^c		0.63			1.05			0.38

Net realized and unrealized gains (losses)		(0.92	)		(1.21	)		0.07


Total from investment operations		(0.29	)		(0.16	)		0.45


Less distributions from net investment income		(0.53	)		(0.84	)		(0.11	)


Net asset value, end of period	$	23.41		$	24.23		$	25.23


Total return^d		(1.23)%			(0.51)%			1.80%

Ratios to average net assets^e

Total expenses		0.09%			0.09%			0.09%

Net investment income		5.34%			4.46%			3.68%

Supplemental data

Net assets, end of period (000’s)		$28,097			$29,076			$2,523

Portfolio turnover rate^f		2.27%			10.10%			1.61%

Portfolio turnover rate excluding portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely or in part for cash^f,g		2.27%			0.00%			0.00%

^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.

^gEffective September 30, 2019.



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

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, September 30, 2019 (unaudited)

Franklin FTSE United Kingdom ETF



		Industry			Shares		Value

	Common Stocks 99.3%
	Australia 2.4%
	Rio Tinto PLC		Metals & Mining			12,888	$	668,468

	Germany 0.2%
	TUI AG		Hotels, Restaurants & Leisure			5,160		60,140

	Ireland 1.7%
	CRH PLC		Construction Materials			9,360		321,577
	Flutter Entertainment PLC		Hotels, Restaurants & Leisure			888		83,275
	Smurfit Kappa Group PLC		Containers & Packaging			2,760		82,784


								487,636

	Kazakhstan 0.1%
	KAZ Minerals PLC		Metals & Mining			2,520		13,456

	Russia 0.3%
	Evraz PLC		Metals & Mining			6,312		36,371
	Polymetal International PLC		Metals & Mining			3,600		50,574


								86,945

	South Africa 0.1%
	Investec PLC		Capital Markets			7,824		40,369

	Switzerland 1.7%
	Coca-Cola HBC AG		Beverages			2,304		75,438
	Glencore PLC		Metals & Mining			128,784		388,419


								463,857

	United Arab Emirates 0.1%
	NMC Health PLC		Health Care Providers & Services			1,008		33,662

	United Kingdom 92.4%
	3i Group PLC		Capital Markets			11,232		161,457
	Admiral Group PLC		Insurance			2,448		63,893
	Anglo American PLC		Metals & Mining			14,688		338,688
	Antofagasta PLC		Metals & Mining			4,080		45,200
	Ashmore Group PLC		Capital Markets			4,488		27,985
	Ashtead Group PLC		Trading Companies & Distributors			5,400		150,656
	Associated British Foods PLC		Food Products			4,104		116,471
	AstraZeneca PLC		Pharmaceuticals			15,384		1,376,518
	Auto Trader Group PLC		Interactive Media & Services			10,560		66,367
	Aveva Group PLC		Software			768		35,017
	Aviva PLC		Insurance			45,840		225,559
	B&M European Value Retail SA		Multiline Retail			10,128		47,352
	Babcock International Group PLC		Commercial Services & Supplies			3,011		20,704
	BAE Systems PLC		Aerospace & Defense			37,560		263,826
	Barclays PLC		Banks			201,360		373,196
	Barratt Developments PLC		Household Durables			11,688		93,332
	Bellway PLC		Household Durables			1,488		61,354
	BHP Group PLC		Metals & Mining			24,384		520,558
	BP PLC		Oil, Gas & Consumable Fuels			233,424		1,483,690
	British American Tobacco PLC		Tobacco			26,760		991,763
	British Land Co. PLC		Equity Real Estate Investment Trusts (REITs	)		10,992		79,214
	BT Group PLC		Diversified Telecommunication Services			102,264		225,046
	Bunzl PLC		Trading Companies & Distributors			3,984		104,326
	Burberry Group PLC		Textiles, Apparel & Luxury Goods			4,800		128,593
	Centrica PLC		Multi-Utilities			67,632		61,457
	Cineworld Group PLC		Entertainment			11,688		32,839
a	Cobham PLC		Aerospace & Defense			27,744		53,625
	Compass Group PLC		Hotels, Restaurants & Leisure			18,576		479,113
	ConvaTec Group PLC		Health Care Equipment & Supplies			17,496		37,774
	Croda International PLC		Chemicals			1,464		87,679



franklintempleton.com	Semiannual Report	269

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin FTSE United Kingdom ETF(continued)



		Industry			Shares		Value

	Common Stocks (continued)
	United Kingdom (continued)
	CYBG PLC		Banks			14,376	$	20,355
	DCC PLC		Industrial Conglomerates			1,152		100,735
	Derwent London PLC		Equity Real Estate Investment Trusts (REITs	)		1,224		50,831
	Diageo PLC		Beverages			27,384		1,124,731
	Direct Line Insurance Group PLC		Insurance			16,344		60,462
	DS Smith PLC		Containers & Packaging			15,024		66,725
	easyJet PLC		Airlines			2,280		32,311
	Experian PLC		Professional Services			10,632		340,516
	Ferguson PLC		Trading Companies & Distributors			2,688		196,890
	Fresnillo PLC		Metals & Mining			2,160		18,196
	G4S PLC		Commercial Services & Supplies			17,832		41,576
	GlaxoSmithKline PLC		Pharmaceuticals			57,408		1,234,197
	GVC Holdings PLC		Hotels, Restaurants & Leisure			6,744		61,781
	Halma PLC		Electronic Equipment, Instruments & Components			4,464		108,424
	Hargreaves Lansdown PLC		Capital Markets			3,120		79,933
	Hikma Pharmaceuticals PLC		Pharmaceuticals			1,632		44,244
	Hiscox Ltd.		Insurance			3,240		66,278
	Howden Joinery Group PLC		Trading Companies & Distributors			6,672		46,076
	HSBC Holdings PLC		Banks			237,240		1,826,023
	IMI PLC		Machinery			3,096		36,634
	Imperial Brands PLC		Tobacco			11,160		251,423
	Inchcape PLC		Distributors			4,824		37,540
	Informa PLC		Media			14,640		153,708
	InterContinental Hotels Group PLC		Hotels, Restaurants & Leisure			2,136		133,584
	International Consolidated Airlines Group SA		Airlines			7,512		43,971
	Intertek Group PLC		Professional Services			1,896		127,990
	ITV PLC		Media			43,872		68,066
	J Sainsbury PLC		Food & Staples Retailing			18,864		51,095
	JD Sports Fashion PLC		Specialty Retail			4,152		38,445
	John Wood Group PLC		Energy Equipment & Services			7,800		36,516
	Johnson Matthey PLC		Chemicals			2,256		84,987
a	Just Eat PLC		Internet & Direct Marketing Retail			6,696		55,136
	Kingfisher PLC		Specialty Retail			25,056		63,853
	Land Securities Group PLC		Equity Real Estate Investment Trusts (REITs	)		8,400		88,649
	Legal & General Group PLC		Insurance			69,480		212,681
	Lloyds Banking Group PLC		Banks			826,824		551,426
	London Stock Exchange Group PLC		Capital Markets			3,672		330,687
	Marks & Spencer Group PLC		Multiline Retail			22,516		51,178
	Meggitt PLC		Aerospace & Defense			9,000		70,426
	Melrose Industries PLC		Electrical Equipment			56,448		140,235
	Merlin Entertainments PLC		Hotels, Restaurants & Leisure			8,232		45,893
	Micro Focus International PLC		Software			3,912		54,802
	Mondi PLC		Paper & Forest Products			5,640		108,284
	National Grid PLC		Multi-Utilities			40,752		442,878
	Next PLC		Multiline Retail			1,488		113,430
a	Ocado Group PLC		Internet & Direct Marketing Retail			5,280		86,049
	Pearson PLC		Media			9,072		82,504
	Pennon Group PLC		Water Utilities			4,848		49,407
	Persimmon PLC		Household Durables			3,720		99,476
	Phoenix Group Holdings PLC		Insurance			6,120		52,136
	Prudential PLC		Insurance			30,480		554,017
	Quilter PLC		Capital Markets			21,600		36,293
	Reckitt Benckiser Group PLC		Household Products			7,368		576,009
	RELX PLC		Professional Services			22,032		524,674
	Renishaw PLC		Electronic Equipment, Instruments & Components			432		19,505
	Rentokil Initial PLC		Commercial Services & Supplies			21,731		125,273
	Rightmove PLC		Interactive Media & Services			10,224		69,370
	Rolls-Royce Holdings PLC		Aerospace & Defense			19,944		194,748



270	Semiannual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin FTSE United Kingdom ETF(continued)



	Industry			Shares		Value

Common Stocks (continued)
United Kingdom (continued)
Royal Bank of Scotland Group PLC		Banks			53,208	$	136,120
Royal Dutch Shell PLC, A		Oil, Gas & Consumable Fuels			50,304		1,477,832
Royal Dutch Shell PLC, B		Oil, Gas & Consumable Fuels			43,920		1,296,777
RSA Insurance Group PLC		Insurance			12,096		79,627
Schroders PLC		Capital Markets			1,344		50,928
Segro PLC		Equity Real Estate Investment Trusts (REITs	)		12,816		128,051
Severn Trent PLC		Water Utilities			2,760		73,635
Smith & Nephew PLC		Health Care Equipment & Supplies			10,272		247,974
Smiths Group PLC		Industrial Conglomerates			4,608		89,151
Spirax-Sarco Engineering PLC		Machinery			864		83,526
SSE PLC		Electric Utilities			12,000		184,180
St. James’s Place Capital PLC		Capital Markets			6,072		73,284
Standard Chartered PLC		Banks			30,864		260,227
Standard Life Aberdeen PLC		Capital Markets			27,904		98,275
Tate & Lyle PLC		Food Products			5,496		49,847
Taylor Wimpey PLC		Household Durables			38,136		75,897
Tesco PLC		Food & Staples Retailing			113,352		336,638
The Berkeley Group Holdings PLC		Household Durables			1,392		71,685
The Sage Group PLC		Software			12,768		108,785
Travis Perkins PLC		Trading Companies & Distributors			2,952		46,963
Unilever PLC		Personal Products			12,768		769,393
United Utilities Group PLC		Water Utilities			7,920		80,597
Vodafone Group PLC		Wireless Telecommunication Services			314,208		627,261
Weir Group PLC		Machinery			3,024		53,121
Whitbread PLC		Hotels, Restaurants & Leisure			1,584		83,817
William Morrison Supermarkets PLC		Food & Staples Retailing			25,536		63,030
WPP PLC		Media			14,352		180,043


							25,963,178

United States 0.3%
Carnival PLC		Hotels, Restaurants & Leisure			1,824		75,748

Total Investments (Cost $29,743,820) 99.3%							27,893,459
Other Assets, less Liabilities 0.7%							203,993

Net Assets 100.0%						$	28,097,452

See Abbreviations on page 322.

^aNon-income producing.

At September 30, 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

181,974

12/20/19

2,487

*As of period end.

See Note 7 regarding other derivative information.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Semiannual Report	271

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Assets and Liabilities

September 30, 2019 (unaudited)



	Franklin FTSE Asia ex Japan ETF			Franklin FTSE Australia ETF			Franklin FTSE Brazil ETF			Franklin FTSE Canada ETF
Assets:
Investments in securities:
Cost – Unaffiliated issuers	$	18,558,411		$	11,483,850		$	13,842,129		$	4,896,342
Cost – Non-controlled affiliates (Note 3c)		5,820			—			—			—

Value – Unaffiliated issuers+	$	16,373,834		$	11,359,981		$	15,569,563		$	5,121,963
Value – Non-controlled affiliates (Note 3c)		5,820			—			—			—
Cash		11,208			—			—			—
Foreign currency, at value (cost $82,995, $45,153, $36,668 and $-, respectively)		82,903			45,051			36,725			—
Receivables:
Dividends and interest		33,673			34,810			68,203			12,012
Variation margin on futures contracts		509			—			3,077			—
Deposits with brokers for:
Futures contracts		5,200			—			6,988			—

Total assets		16,513,147			11,439,842			15,684,556			5,133,975

Liabilities:
Payables:
Investment securities purchased		—			—			—			7,557
Management fees		2,577			843			3,085			376
Funds advanced by custodian		—			49,550			58,795			133
Foreign currency advanced by custodian		—			—			—			1,973
Deferred tax		2,649			—			—			—
Payable upon return of securities loaned		5,820			—			—			—

Total liabilities		11,046			50,393			61,880			10,039

Net assets, at value	$	16,502,101		$	11,389,449		$	15,622,676		$	5,123,936

Net assets consist of:
Paid-in capital	$	18,898,409		$	11,490,787		$	24,145,329		$	4,915,900
Total distributable earnings (loss)		(2,396,308	)		(101,338	)		(8,522,653	)		208,036

Net assets, at value	$	16,502,101		$	11,389,449		$	15,622,676		$	5,123,936

Shares outstanding		800,000			450,000			600,000			200,000

Net asset value per share	$	20.63		$	25.31		$	26.04		$	25.62


+Includes securities loaned	$	5,683	$	—	$	—	$	—



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

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Assets and Liabilities(continued)

September 30, 2019 (unaudited)



	Franklin FTSE China ETF			Franklin FTSE Europe ETF			Franklin FTSE Europe Hedged ETF			Franklin FTSE France ETF
Assets:
Investments in securities:
Cost – Unaffiliated issuers	$	45,021,637		$	73,203,671		$	5,444,059		$	3,756,365
Cost –Non-controlled affiliates (Note 3c)		—			—			41,913			—

Value – Unaffiliated issuers	$	39,368,252		$	65,443,005		$	4,758,761		$	3,732,446
Value –Non-controlled affiliates (Note 3c)		—			—			41,913			—
Cash		—			15,788			—			209
Foreign currency, at value (cost $14,677, $152,684, $20,528 and $4,003, respectively)		14,674			152,021			20,342			3,968
Receivables:
Dividends and interest		71,659			201,210			33,089			4,377
Variation margin on futures contracts		—			1,216			511			—
Deposits with brokers for:
Futures contracts		5,183			17,670			5,408			—
Unrealized appreciation on OTC forward exchange contracts		—			—			39,155			—

Total assets		39,459,768			65,830,910			4,899,179			3,741,000

Liabilities:
Payables:
Investment securities purchased		—			—			14,698			7,714
Management fees		6,308			6,098			343			275
Variation margin on futures contracts		114			—			—			—
Funds advanced by custodian		2,974			—			18,207			—
Unrealized depreciation on OTC forward exchange contracts		—			—			13,312			—

Total liabilities		9,396			6,098			46,560			7,989

Net assets, at value	$	39,450,372		$	65,824,812		$	4,852,619		$	3,733,011

Net assets consist of:
Paid-in capital	$	46,922,952		$	70,748,087		$	5,849,092		$	3,735,560
Total distributable earnings (loss)		(7,472,580	)		(4,923,275	)		(996,473	)		(2,549	)

Net assets, at value	$	39,450,372		$	65,824,812		$	4,852,619		$	3,733,011

Shares outstanding		1,800,000			2,800,000			200,000			150,000

Net asset value per share	$	21.92		$	23.51		$	24.26		$	24.89



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Semiannual Report	273

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Assets and Liabilities(continued)

September 30, 2019 (unaudited)



	Franklin FTSE Germany ETF			Franklin FTSE Hong Kong ETF			Franklin FTSE India ETF			Franklin FTSE Italy ETF
Assets:
Investments in securities:
Cost – Unaffiliated issuers	$	4,628,951		$	18,470,227		$	15,298,599		$	10,967,451

Value – Unaffiliated issuers	$	4,184,071		$	17,663,014		$	15,385,464		$	11,560,237
Cash		84			1,019			16,061			465
Foreign currency, at value (cost $220, $25,870, $6,801 and $3,014, respectively)		219			25,860			6,804			2,998
Receivables:
Dividends and interest		484			43,901			1,828			417
Variation margin on futures contracts		—			53			—			—
Deposits with brokers for:
Futures contracts		—			5,317			990			10

Total assets		4,184,858			17,739,164			15,411,147			11,564,127

Liabilities:
Payables:
Management fees		310			1,340			2,333			852
Variation margin on futures contracts		—			—			75			—
Deferred tax		—			—			42,958			—

Total liabilities		310			1,340			45,366			852

Net assets, at value	$	4,184,548		$	17,737,824		$	15,365,781		$	11,563,275

Net assets consist of:
Paid-in capital	$	4,666,843		$	18,380,357		$	15,506,134		$	11,136,047
Total distributable earnings (loss)		(482,295	)		(642,533	)		(140,353	)		427,228

Net assets, at value	$	4,184,548		$	17,737,824		$	15,365,781		$	11,563,275

Shares outstanding		200,000			750,000			700,000			500,000

Net asset value per share	$	20.92		$	23.65		$	21.95		$	23.13



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

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Assets and Liabilities(continued)

September 30, 2019 (unaudited)



	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	$	232,856,638		$	5,311,863		$	2,616,905		$	4,659,333
Cost – Non-controlled affiliates (Note 3c)		64,467			1,813			—			—

Value – Unaffiliated issuers	$	205,943,393		$	4,663,266		$	2,592,631		$	4,335,832
Value – Non-controlled affiliates (Note 3c)		64,467			1,813			—			—
Cash		—			—			—			2,008
Foreign currency, at value (cost $10,757, $-, $9,207 and $5,017, respectively)		10,764			—			9,131			4,940
Receivables:
Dividends and interest		1,873,342			41,838			5,973			176
Deposits with brokers for:
Futures contracts		49,160			1,277			49			—
Unrealized appreciation on OTC forward exchange contracts		—			89,220			—			—

Total assets		207,941,126			4,797,414			2,607,784			4,342,956

Liabilities:
Payables:
Investment securities purchased		96			72,893			—			—
Management fees		16,055			342			406			679
Variation margin on futures contracts		3,754			191			—			—
Funds advanced by custodian		63,906			72			8,839			—
Foreign currency advanced by custodian		—			846			—			—
Unrealized depreciation on OTC forward exchange contracts		—			458			—			—

Total liabilities		83,811			74,802			9,245			679

Net assets, at value	$	207,857,315		$	4,722,612		$	2,598,539		$	4,342,277

Net assets consist of:
Paid-in capital	$	235,234,911		$	8,407,339		$	2,619,441		$	4,836,326
Total distributable earnings (loss)		(27,377,596	)		(3,684,727	)		(20,902	)		(494,049	)

Net assets, at value	$	207,857,315		$	4,722,612		$	2,598,539		$	4,342,277

Shares outstanding		8,400,000			200,000			100,000			200,000

Net asset value per share	$	24.74		$	23.61		$	25.99		$	21.71



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Semiannual Report	275

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Assets and Liabilities(continued)

September 30, 2019 (unaudited)



	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	$	15,808,698	$	2,502,418	$	2,641,499	$	17,603,377

Value – Unaffiliated issuers	$	17,282,299	$	2,552,346	$	2,455,362	$	13,691,832
Cash		10,717		345		47		6,927
Foreign currency, at value (cost $-, $8,674, $6,470 and $37,663, respectively)		—		8,674		6,441		37,651
Receivables:
Dividends and interest		47,406		—		1,104		21,365
Variation margin on futures contracts		—		—		—		260
Deposits with brokers for:
Futures contracts		—		—		—		2,573

Total assets		17,340,422		2,561,365		2,462,954		13,760,608

Liabilities:
Payables:
Investment securities purchased		44,767		—		7,337		19,817
Management fees		2,387		807		401		1,003

Total liabilities		47,154		807		7,738		20,820

Net assets, at value	$	17,293,268	$	2,560,558	$	2,455,216	$	13,739,788

Net assets consist of:
Paid-in capital	$	15,300,794	$	2,482,525	$	2,441,624	$	21,044,528
Total distributable earnings (loss)		1,992,474		78,033		13,592		(7,304,740	)

Net assets, at value	$	17,293,268	$	2,560,558	$	2,455,216	$	13,739,788

Shares outstanding		650,000		100,000		100,000		700,000

Net asset value per share	$	26.61	$	25.61	$	24.55	$	19.63



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

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Assets and Liabilities(continued)

September 30, 2019 (unaudited)



	Franklin FTSE Switzerland ETF		Franklin FTSE Taiwan ETF		Franklin FTSE United Kingdom ETF
Assets:
Investments in securities:
Cost – Unaffiliated issuers	$	7,332,109	$	14,744,842	$	29,743,820

Value – Unaffiliated issuers	$	7,674,169	$	15,381,492	$	27,893,459
Cash		—		4,172		34,274
Foreign currency, at value (cost $5,886, $4,925 and $116,395, respectively)		5,831		4,922		116,064
Receivables:
Dividends and interest		23,568		48,038		47,455
Variation margin on futures contracts		—		292		—
Deposits with brokers for:
Futures contracts		—		1,870		8,160

Total assets		7,703,568		15,440,786		28,099,412

Liabilities:
Payables:
Management fees		568		2,391		1,839
Variation margin on futures contracts		—		—		121
Funds advanced by custodian		14,211		—		—

Total liabilities		14,779		2,391		1,960

Net assets, at value	$	7,688,789	$	15,438,395	$	28,097,452

Net assets consist of:
Paid-in capital	$	7,394,668	$	14,383,078	$	29,505,800
Total distributable earnings (loss)		294,121		1,055,317		(1,408,348	)

Net assets, at value	$	7,688,789	$	15,438,395	$	28,097,452

Shares outstanding		300,000		600,000		1,200,000

Net asset value per share	$	25.63	$	25.73	$	23.41



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FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Operations

for the period ended September 30, 2019 (unaudited)



	Franklin FTSE Asia ex Japan ETF			Franklin FTSE Australia ETF			Franklin FTSE Brazil ETF			Franklin FTSE Canada ETF
Investment income:
Dividends: (net of foreign taxes)^a
Unaffiliated issuers	$	321,229		$	238,784		$	251,555		$	71,463
Interest:
Unaffiliated issuers		—			—			26			—
Interest from securities loaned:
Unaffiliated issuers (net of fees and rebates)		23			—			—			—
Non-Controlled affiliates (Note 3c)		17			—			—			—

Total investment income		321,269			238,784			251,581			71,463

Expenses:
Management fees (Note 3a)		16,078			4,413			19,778			2,244
Other		17			—			77			—

Total expenses		16,095			4,413			19,855			2,244
Expenses waived/paid by affiliates (Note 3c)		(59	)		—			—			—

Net investment income		305,233			234,371			231,726			69,219

Realized and unrealized gains (losses):
Net realized gain (loss) from:
Investments:
Unaffiliated issuers		(200,036	)		(69,982	)		(395,755	)		(26,423	)
Foreign currency transactions		(2,311	)		(16	)		(2,556	)		387
Futures contracts		(2,427	)		—			3,822			—

Net realized gain (loss)		(204,774	)		(69,998	)		(394,489	)		(26,036	)

Net change in unrealized appreciation (depreciation) on:
Investments:
Unaffiliated issuers		(998,511	)		327,365			700,446			300,217
Translation of other assets and liabilities denominated in foreign currencies		431			(375	)		(2,870	)		(52	)
Futures contracts		(2,973	)		—			5,381			—
Change in deferred taxes on unrealized appreciation		13,992			—			—			—

Net change in unrealized appreciation (depreciation)		(987,061	)		326,990			702,957			300,165

Net realized and unrealized gain (loss)		(1,191,835	)		256,992			308,468			274,129

Net increase (decrease) in net assets resulting from operations	$	(886,602	)	$	491,363		$	540,194		$	343,348


^aForeign taxes withheld on dividends		$34,866			$4,169			$15,921			$12,610



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FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Operations(continued)

for the period ended September 30, 2019 (unaudited)



	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	$	825,917		$	2,039,578		$	105,250		$	79,346
Non-Controlled affiliates (Note 3c)		—			—			278			—
Interest:
Unaffiliated issuers		—			—			45			—
Interest from securities loaned:
Unaffiliated issuers (net of fees and rebates)		—			236			—			—
Non-Controlled affiliates (Note 3)		—			489			—			—

Total investment income		825,917			2,040,303			105,573			79,346

Expenses:
Management fees (Note 3a)		39,032			43,234			2,117			1,521
Other		—			85			101			—

Total expenses		39,032			43,319			2,218			1,521
Expenses waived/paid by affiliates (Note 3c)		—			—			(44	)		—

Net investment income		786,885			1,996,984			103,399			77,825

Realized and unrealized gains (losses):
Net realized gain (loss) from:
Investments:
Unaffiliated issuers		(1,898,474	)		(320,924	)		(11,926	)		(4,812	)
In-kind redemptions		—			2,479,647			—			—
Foreign currency transactions		7,664			(12,073	)		19,003			115
Futures contracts		(765	)		38,389			10,957			965
Foreign exchange contracts		—			—			404,827			—

Net realized gain (loss)		(1,891,575	)		2,185,039			422,861			(3,732	)

Net change in unrealized appreciation (depreciation) on:
Investments:
Unaffiliated issuers		(2,615,024	)		(1,250,007	)		24,556			111,489
Translation of other assets and liabilities denominated in foreign currencies		(30	)		2,432			285			(57	)
Futures contracts		(2,831	)		5,970			334			—
Forward exchange contracts		—			—			(199,957	)		—

Net change in unrealized appreciation (depreciation)		(2,617,885	)		(1,241,605	)		(174,782	)		111,432

Net realized and unrealized gain (loss)		(4,509,460	)		943,434			248,079			107,700

Net increase (decrease) in net assets resulting from operations	$	(3,722,575	)	$	2,940,418		$	351,478		$	185,525


^aForeign taxes withheld on dividends		$65,337			$219,116			$13,435			$13,368



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FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Operations(continued)

for the period ended September 30, 2019 (unaudited)



	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	$	98,201		$	425,490		$	68,857		$	366,261

Total investment income		98,201			425,490			68,857			366,261

Expenses:
Management fees (Note 3a)		1,908			8,699			8,624			4,795
Other		—			—			44			7

Total expenses		1,908			8,699			8,668			4,802

Net investment income		96,293			416,791			60,189			361,459

Realized and unrealized gains (losses):
Net realized gain (loss) from:
Investments:
Unaffiliated issuers		(29,803	)		24,783			(84,357	)		(113,336	)
Foreign currency transactions		173			258			(41,926	)		127
Futures contracts		—			2,699			(177	)		6

Net realized gain (loss)		(29,630	)		27,740			(126,460	)		(113,203	)

Net change in unrealized appreciation (depreciation) on:
Investments:
Unaffiliated issuers		73,704			(2,559,699	)		(18,355	)		87,702
Translation of other assets and liabilities denominated in foreign currencies		35			(34	)		146			108
Futures contracts		—			(1,885	)		(771	)		—
Change in deferred taxes on unrealized appreciation		—			—			(4,567	)		—

Net change in unrealized appreciation (depreciation)		73,739			(2,561,618	)		(23,547	)		87,810

Net realized and unrealized gain (loss)		44,109			(2,533,878	)		(150,007	)		(25,393	)

Net increase (decrease) in net assets resulting from operations	$	140,402		$	(2,117,087	)	$	(89,818	)	$	336,066


^aForeign taxes withheld on dividends		$15,439			$242			$—			$50,891



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FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Operations(continued)

for the period ended September 30, 2019 (unaudited)^a



	Franklin FTSE Japan ETF			Franklin FTSE Japan Hedged ETF			Franklin FTSE Latin America ETF			Franklin FTSE Mexico ETF
Investment income:
Dividends: (net of foreign taxes)^a
Unaffiliated issuers	$	2,360,897		$	54,928		$	40,629		$	91,963
Non-Controlled affiliates (Note 3c)		1,583			431			—			—
Interest from securities loaned:
Unaffiliated issuers (net of fees and rebates)		1,599			—			—			—
Non-Controlled affiliates (Note 3c)		1,012			—			—			—

Total investment income		2,365,091			55,359			40,629			91,963

Expenses:
Management fees (Note 3a)		111,460			3,715			2,506			4,182
Other		1,021			77			—			—

Total expenses		112,481			3,792			2,506			4,182
Expenses waived/paid by affiliates (Note 3c)		(422	)		(89	)		—			—

Net investment income		2,253,032			51,656			38,123			87,781

Realized and unrealized gains (losses):
Net realized gain (loss) from:
Investments:
Unaffiliated issuers		(1,391,937	)		(95,693	)		(8,279	)		(115,719	)
In-kind redemptions		620,514			(1,341,580	)		—			—
Foreign currency transactions		69,094			1,990			(775	)		374
Futures contracts		62,163			(5,731	)		156			127
Foreign exchange contracts		—			(252,553	)		—			—

Net realized gain (loss)		(640,166	)		(1,693,567	)		(8,898	)		(115,218	)

Net change in unrealized appreciation (depreciation) on:
Investments:
Unaffiliated issuers		5,776,595			1,542,664			(25,753	)		9,982
Translation of other assets and liabilities denominated in foreign currencies		7,877			253			30			30
Futures contracts		2,273			1,470			245			—
Forward exchange contracts		—			69,721			—			—

Net change in unrealized appreciation (depreciation)		5,786,745			1,614,108			(25,478	)		10,012

Net realized and unrealized gain (loss)		5,146,579			(79,459	)		(34,376	)		(105,206	)

Net increase (decrease) in net assets resulting from operations	$	7,399,611		$	(27,803	)	$	3,747		$	(17,425	)

^aFor the period October 9, 2018 (commencement of operations) to March 31, 2019.


^aForeign taxes withheld on dividends	$	263,009	$	6,168	$	3,203	$	4,260



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FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Operations(continued)

for the period ended September 30, 2019 (unaudited)^a



	Franklin FTSE Russia ETF			Franklin FTSE Saudi Arabia ETF			Franklin FTSE South Africa ETF			Franklin FTSE South Korea ETF
Investment income:
Dividends: (net of foreign taxes)^a
Unaffiliated issuers	$	730,470		$	75,024		$	244,053		$	59,396
Interest from securities loaned:
Unaffiliated issuers (net of fees and rebates)		4			—			—			578
Non-Controlled affiliates (Note 3)		359			—			—			79

Total investment income		730,833			75,024			244,053			60,053

Expenses:
Management fees (Note 3a)		13,053			5,371			2,552			6,968
Other		—			—			—			14

Total expenses		13,053			5,371			2,552			6,982
Expenses waived/paid by affiliates (Note 3c)		(133	)		—			—			(13	)

Net investment income		717,913			69,653			241,501			53,084

Realized and unrealized gains (losses):
Net realized gain (loss) from:
Investments:
Unaffiliated issuers		8,485			(3,991	)		(15,476	)		(1,834,788	)
Foreign currency transactions		(8,641	)		(48	)		(69	)		19,031
Futures contracts		—			—			—			2,099
Foreign exchange contracts		—			(36	)		—			—

Net realized gain (loss)		(156	)		(4,075	)		(15,545	)		(1,813,658	)

Net change in unrealized appreciation (depreciation) on:
Investments:
Unaffiliated issuers		937,552			(247,050	)		(394,849	)		222,650
Translation of other assets and liabilities denominated in foreign currencies		293			—			(93	)		3,576
Futures contracts		—			—			—			2,015

Net change in unrealized appreciation (depreciation)		937,845			(247,050	)		(394,942	)		228,241

Net realized and unrealized gain (loss)		937,689			(251,125	)		(410,487	)		(1,585,417	)

Net increase (decrease) in net assets resulting from operations	$	1,655,602		$	(181,472	)	$	(168,986	)	$	(1,532,333	)

^aFor the period October 9, 2018 (commencement of operations) to September, 2019.


^aForeign taxes withheld on dividends	$	81,163	$	2,556	$	8,250	$	11,193



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FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Operations(continued)

for the period ended September 30, 2019 (unaudited)



	Franklin FTSE Switzerland ETF			Franklin FTSE Taiwan ETF			Franklin FTSE United Kingdom ETF
Investment income:
Dividends: (net of foreign taxes)^a
Unaffiliated issuers	$	50,628		$	518,692		$	767,295
Interest:
Unaffiliated issuers		—			36			—

Total investment income		50,628			518,728			767,295

Expenses:
Management fees (Note 3a)		2,216			14,213			12,722

Total expenses		2,216			14,213			12,722

Net investment income		48,412			504,515			754,573

Realized and unrealized gains (losses):
Net realized gain (loss) from:
Investments:
Unaffiliated issuers		(23,991	)		15,174			(131,648	)
In-kind redemptions		—			—			162,136
Foreign currency transactions		(103	)		(900	)		(17,249	)
Futures contracts		—			3,185			16,542

Net realized gain (loss)		(24,094	)		17,459			29,781

Net change in unrealized appreciation (depreciation) on:
Investments:
Unaffiliated issuers		389,743			87,944			(1,673,355	)
Translation of other assets and liabilities denominated in foreign currencies		19			191			3,104
Futures contracts		—			248			(4,316	)

Net change in unrealized appreciation (depreciation)		389,762			88,383			(1,674,567	)

Net realized and unrealized gain (loss)		365,668			105,842			(1,644,786	)

Net increase (decrease) in net assets resulting from operations	$	414,080		$	610,357		$	(890,213	)


^aForeign taxes withheld on dividends		$7,957			$139,085			$9,090



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FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Changes in Net Assets



	Franklin FTSE Asia ex Japan ETF						Franklin FTSE Australia ETF

	Six Months Ended September 30, 2019 (unaudited)			Year Ended March 31, 2019			Six Months Ended September 30, 2019 (unaudited)			Year Ended March 31, 2019
Increase (decrease) in net assets:
Operations:
Net investment income	$	305,233		$	382,992		$	234,371		$	374,062
Net realized gain (loss)		(204,774	)		(215,726	)		(69,998	)		392,801
Net change in unrealized appreciation (depreciation)		(987,061	)		(1,187,115	)		326,990			(276,343	)

Net increase (decrease) in net assets resulting from operations		(886,602	)		(1,019,849	)		491,363			490,520

Distributions to shareholders:		(99,368	)		(370,953	)		(275,732	)		(242,641	)

Capital share transactions: (Note 2)		—			9,428,138			3,784,703			4,674,690

Net increase (decrease) in net assets		(985,970	)		8,037,336			4,000,334			4,922,569
Net assets:
Beginning of period		17,488,071			9,450,735			7,389,115			2,466,546

End of period	$	16,502,101		$	17,488,071		$	11,389,449		$	7,389,115



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FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Changes in Net Assets(continued)



	Franklin FTSE Brazil ETF						Franklin FTSE Canada ETF

	Six Months Ended September 30, 2019 (unaudited)			Year Ended March 31, 2019			Six Months Ended September 30, 2019 (unaudited)			Year Ended March 31, 2019
Increase (decrease) in net assets:
Operations:
Net investment income	$	231,726		$	831,596		$	69,219		$	110,177
Net realized gain (loss)		(394,489	)		(9,920,956	)		(26,036	)		(143,008	)
Net change in unrealized appreciation (depreciation)		702,957			950,677			300,165			91,259

Net increase (decrease) in net assets resulting from operations		540,194			(8,138,683	)		343,348			58,428

Distributions to shareholders:		(302,769	)		(923,263	)		(46,308	)		(95,664	)

Capital share transactions: (Note 2)		(5,193,574	)		(14,952,279	)		—			2,487,064

Net increase (decrease) in net assets		(4,956,149	)		(24,014,225	)		297,040			2,449,828
Net assets:
Beginning of period		20,578,825			44,593,050			4,826,896			2,377,068

End of period	$	15,622,676		$	20,578,825		$	5,123,936		$	4,826,896



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FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Changes in Net Assets(continued)



	Franklin FTSE China ETF						Franklin FTSE Europe ETF

	Six Months Ended September 30, 2019 (unaudited)			Year Ended March 31, 2019			Six Months Ended September 30, 2019 (unaudited)			Year Ended March 31, 2019
Increase (decrease) in net assets:
Operations:
Net investment income	$	786,885		$	576,193		$	1,996,984		$	3,116,118
Net realized gain (loss)		(1,891,575	)		(603,039	)		2,185,039			(1,055,832	)
Net change in unrealized appreciation (depreciation)		(2,617,885	)		(1,780,744	)		(1,241,605	)		(5,306,884	)

Net increase (decrease) in net assets resulting from operations		(3,722,575	)		(1,807,590	)		2,940,418			(3,246,598	)

Distributions to shareholders:		(54,680	)		(584,365	)		(1,646,698	)		(3,141,008	)

Capital share transactions: (Note 2)		7,205			14,421,020			(9,828,228	)		(24,163,732	)

Net increase (decrease) in net assets		(3,770,050	)		12,029,065			(8,534,508	)		(30,551,338	)
Net assets:
Beginning of period		43,220,422			31,191,357			74,359,320			104,910,658

End of period	$	39,450,372		$	43,220,422		$	65,824,812		$	74,359,320



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FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Changes in Net Assets(continued)



	Franklin FTSE Europe Hedged ETF						Franklin FTSE France ETF

	Six Months Ended September 30, 2019 (unaudited)			Year Ended March 31, 2019			Six Months Ended September 30, 2019 (unaudited)			Year Ended March 31, 2019
Increase (decrease) in net assets:
Operations:
Net investment income	$	103,399		$	1,007,339		$	77,825		$	70,225
Net realized gain (loss)		422,861			(619,268	)		(3,732	)		(13,591	)
Net change in unrealized appreciation (depreciation)		(174,782	)		581,744			111,432			(134,495	)

Net increase (decrease) in net assets resulting from operations		351,478			969,815			185,525			(77,861	)

Distributions to shareholders:		(61,666	)		(3,462,145	)		(42,424	)		(68,766	)

Capital share transactions: (Note 2)		—			(26,372,741	)		1,203,488			—

Net increase (decrease) in net assets		289,812			(28,865,071	)		1,346,589			(146,627	)
Net assets:
Beginning of period		4,562,807			33,427,878			2,386,422			2,533,049

End of period	$	4,852,619		$	4,562,807		$	3,733,011		$	2,386,422



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FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Changes in Net Assets(continued)



	Franklin FTSE Germany ETF						Franklin FTSE Hong Kong ETF

	Six Months Ended September 30, 2019 (unaudited)			Year Ended March 31, 2019			Six Months Ended September 30, 2019 (unaudited)			Year Ended March 31, 2019
Increase (decrease) in net assets:
Operations:
Net investment income	$	96,293		$	74,153		$	416,791		$	329,771
Net realized gain (loss)		(29,630	)		(26,064	)		27,740			(82,452	)
Net change in unrealized appreciation (depreciation)		73,739			(420,241	)		(2,561,618	)		1,512,009

Net increase (decrease) in net assets resulting from operations		140,402			(372,152	)		(2,117,087	)		1,759,328

Distributions to shareholders:		(96,019	)		(59,669	)		(262,786	)		(273,434	)

Capital share transactions: (Note 2)		—			2,111,997			—			10,779,669

Net increase (decrease) in net assets		44,383			1,680,176			(2,379,873	)		12,265,563
Net assets:
Beginning of period		4,140,165			2,459,989			20,117,697			7,852,134

End of period	$	4,184,548		$	4,140,165		$	17,737,824		$	20,117,697



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FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Changes in Net Assets(continued)



	Franklin FTSE India ETF						Franklin FTSE Italy ETF

	Six Months Ended September 30, 2019 (unaudited)			Year Ended March 31, 2019			Six Months Ended September 30, 2019 (unaudited)			Year Ended March 31, 2019
Increase (decrease) in net assets:
Operations:
Net investment income	$	60,189		$	70,302		$	361,459		$	117,532
Net realized gain (loss)		(126,460	)		(78,187	)		(113,203	)		(226,842	)
Net change in unrealized appreciation (depreciation)		(23,547	)		175,178			87,810			433,507

Net increase (decrease) in net assets resulting from operations		(89,818	)		167,293			336,066			324,197

Distributions to shareholders:		(61,381	)		(47,624	)		(302,027	)		(91,568	)

Capital share transactions: (Note 2)		8,509,806			4,613,517			1,118,853			7,550,898

Net increase (decrease) in net assets		8,358,607			4,733,186			1,152,892			7,783,527
Net assets:
Beginning of period		7,007,174			2,273,988			10,410,383			2,626,856

End of period	$	15,365,781		$	7,007,174		$	11,563,275		$	10,410,383



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FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Changes in Net Assets(continued)



	Franklin FTSE Japan ETF						Franklin FTSE Japan Hedged ETF

	Six Months Ended September 30, 2019 (unaudited)			Year Ended March 31, 2019			Six Months Ended September 30, 2019 (unaudited)			Year Ended March 31, 2019
Increase (decrease) in net assets:
Operations:
Net investment income	$	2,253,032		$	5,403,894		$	51,656		$	618,951
Net realized gain (loss)		(640,166	)		1,361,394			(1,693,567	)		(379,945	)
Net change in unrealized appreciation (depreciation)		5,786,745			(27,193,949	)		1,614,108			(1,905,925	)

Net increase (decrease) in net assets resulting from operations		7,399,611			(20,428,661	)		(27,803	)		(1,666,919	)

Distributions to shareholders:		(2,996,719	)		(3,317,982	)		—			(2,263,375	)

Capital share transactions: (Note 2)		(86,750,981	)		217,869,864			(9,119,220	)		(27,397,137	)

Net increase (decrease) in net assets		(82,348,089	)		194,123,221			(9,147,023	)		(31,327,431	)
Net assets:
Beginning of period		290,205,404			96,082,183			13,869,635			45,197,066

End of period	$	207,857,315		$	290,205,404		$	4,722,612		$	13,869,635



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	Franklin FTSE Latin America ETF						Franklin FTSE Mexico ETF

	Six Months Ended September 30, 2019 (unaudited)			Year Ended March 31, 2019^a			Six Months Ended September 30, 2019 (unaudited)			Year Ended March 31, 2019
Increase (decrease) in net assets:
Operations:
Net investment income	$	38,123		$	37,946		$	87,781		$	79,171
Net realized gain (loss)		(8,898	)		(5,596	)		(115,218	)		(72,084	)
Net change in unrealized appreciation (depreciation)		(25,478	)		834			10,012			(350,568	)

Net increase (decrease) in net assets resulting from operations		3,747			33,184			(17,425	)		(343,481	)

Distributions to shareholders:		(45,918	)		(11,915	)		(61,916	)		(78,632	)

Capital share transactions: (Note 2)		—			2,619,441			—			2,346,009

Net increase (decrease) in net assets		(42,171	)		2,640,710			(79,341	)		1,923,896
Net assets:
Beginning of period		2,640,710			—			4,421,618			2,497,722

End of period	$	2,598,539		$	2,640,710		$	4,342,277		$	4,421,618

^aFor the period October 9, 2018 (commencement of operations) to March 31, 2019.



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Statements of Changes in Net Assets(continued)



	Franklin FTSE Russia ETF						Franklin FTSE Saudi Arabia ETF

	Six Months Ended September 30, 2019 (unaudited)			Year Ended March 31, 2019			Six Months Ended September 30, 2019 (unaudited)			Year Ended March 31, 2019^a
Increase (decrease) in net assets:
Operations:
Net investment income	$	717,913		$	319,495		$	69,653		$	11,269
Net realized gain (loss)		(156	)		(76,440	)		(4,075	)		(1,893	)
Net change in unrealized appreciation (depreciation)		937,845			499,491			(247,050	)		296,978

Net increase (decrease) in net assets resulting from operations		1,655,602			742,546			(181,472	)		306,354

Distributions to shareholders:		(85,496	)		(307,541	)		(46,849	)		—

Capital share transactions: (Note 2)		4,040,147			8,824,329			—			2,482,525

Net increase (decrease) in net assets		5,610,253			9,259,334			(228,321	)		2,788,879
Net assets:
Beginning of period		11,683,015			2,423,681			2,788,879			—

End of period	$	17,293,268		$	11,683,015		$	2,560,558		$	2,788,879

^aFor the period October 9, 2018 (commencement of operations) to March 31, 2019.



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	Franklin FTSE South Africa ETF						Franklin FTSE South Korea ETF

	Six Months Ended September 30, 2019 (unaudited)			Year Ended March 31, 2019^a			Six Months Ended September 30, 2019 (unaudited)			Year Ended March 31, 2019
Increase (decrease) in net assets:
Operations:
Net investment income	$	241,501		$	21,691		$	53,084		$	378,016
Net realized gain (loss)		(15,545	)		(4,371	)		(1,813,658	)		(1,589,948	)
Net change in unrealized appreciation (depreciation)		(394,942	)		208,803			228,241			(3,252,311	)

Net increase (decrease) in net assets resulting from operations		(168,986	)		226,123			(1,532,333	)		(4,464,243	)

Distributions to shareholders:		(37,595	)		(5,950	)		(41,710	)		(340,269	)

Capital share transactions: (Note 2)		—			2,441,624			(1,634,635	)		(4,227,746	)

Net increase (decrease) in net assets		(206,581	)		2,661,797			(3,208,678	)		(9,032,258	)
Net assets:
Beginning of period		2,661,797			—			16,948,466			25,980,724

End of period	$	2,455,216		$	2,661,797		$	13,739,788		$	16,948,466

^aFor the period October 10, 2018 (commencement of operations) to March 31, 2019.



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Statements of Changes in Net Assets(continued)



	Franklin FTSE Switzerland ETF						Franklin FTSE Taiwan ETF

	Six Months Ended September 30, 2019 (unaudited)			Year Ended March 31, 2019			Six Months Ended September 30, 2019 (unaudited)			Year Ended March 31, 2019
Increase (decrease) in net assets:
Operations:
Net investment income	$	48,412		$	57,316		$	504,515		$	158,804
Net realized gain (loss)		(24,094	)		(119,463	)		17,459			(103,534	)
Net change in unrealized appreciation (depreciation)		389,762			18,957			88,383			400,486

Net increase (decrease) in net assets resulting from operations		414,080			(43,190	)		610,357			455,756

Distributions to shareholders:		(60,643	)		(60,937	)		(5,578	)		(144,725	)

Capital share transactions: (Note 2)		4,949,338			179,347			—			9,254,307

Net increase (decrease) in net assets		5,302,775			75,220			604,779			9,565,338
Net assets:
Beginning of period		2,386,014			2,310,794			14,833,616			5,268,278

End of period	$	7,688,789		$	2,386,014		$	15,438,395		$	14,833,616



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FINANCIAL STATEMENTS

Statements of Changes in Net Assets(continued)



	Franklin FTSE United Kingdom ETF

	Six Months Ended September 30, 2019 (unaudited)			Year Ended March 31, 2019
Increase (decrease) in net assets:
Operations:
Net investment income	$	754,573		$	633,075
Net realized gain (loss)		29,781			680,822
Net change in unrealized appreciation (depreciation)		(1,674,567	)		(181,708	)

Net increase (decrease) in net assets resulting from operations		(890,213	)		1,132,189

Distributions to shareholders:		(636,434	)		(324,863	)

Capital share transactions: (Note 2)		547,878			25,746,068

Net increase (decrease) in net assets		(978,769	)		26,553,394
Net assets:
Beginning of period		29,076,221			2,522,827

End of period	$	28,097,452		$	29,076,221



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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-nine 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 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.

When the last day of the reporting period is anon-business day, certain foreign markets may be open on those days that



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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. Derivative Financial Instruments

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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and/or received by the Fund, if any, is held in segregated accounts with the Fund’s custodian/counterparty broker and can be in the form of cash and/or securities. Unrestricted cash may be invested according to the Funds’ investment objectives. To the extent that the amounts due to the Fund from its counterparties are not subject to collateralization or are not fully collateralized, the Fund bears the risk of loss from 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 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.

e. Income and Deferred Taxes

f. Security Transactions, Investment Income, Expenses and Distributions



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c. Derivative Financial Instruments(continued)

FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS

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

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

2. Shares of Beneficial Interest



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2. Shares of Beneficial Interest(continued)

At September 30, 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

	Six Months Ended September 30, 2019						Year Ended March 31, 2019

	Shares			Amount			Shares			Amount
Shares sold		—		$	—			400,000		$	9,428,138

Net increase (decrease)		—		$	—			400,000		$	9,428,138


	Franklin FTSE Australia ETF

	Six Months Ended September 30, 2019						Year Ended March 31, 2019

	Shares			Amount			Shares			Amount
Shares sold		150,000		$	3,784,703			500,000		$	12,241,732
Shares redeemed		—			—			(300,000	)		(7,567,042	)

Net increase (decrease)		150,000		$	3,784,703			200,000		$	4,674,690


	Franklin FTSE Brazil ETF

	Six Months Ended September 30, 2019						Year Ended March 31, 2019

	Shares			Amount			Shares			Amount
Shares sold		—		$	4,614			300,000		$	7,431,063
Shares redeemed		(200,000	)		(5,198,188	)		(1,100,000	)		(22,383,342	)

Net increase (decrease)		(200,000	)	$	(5,193,574	)		(800,000	)	$	(14,952,279	)


	Franklin FTSE Canada ETF

	Six Months Ended September 30, 2019						Year Ended March 31, 2019

	Shares			Amount			Shares			Amount
Shares sold		—		$	—			200,000		$	4,802,307
Shares redeemed		—			—			(100,000	)		(2,315,243	)

Net increase (decrease)		—		$	—			100,000		$	2,487,064


	Franklin FTSE China ETF

	Six Months Ended September 30, 2019						Year Ended March 31, 2019

	Shares			Amount			Shares			Amount
Shares sold		—		$	7,205			600,000		$	14,421,020

Net increase (decrease)		—		$	7,205			600,000		$	14,421,020



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	Franklin FTSE Europe ETF

	Six Months Ended September 30, 2019						Year Ended March 31, 2019

	Shares			Amount			Shares			Amount
Shares sold		1,600,000		$	36,983,074			—		$	—
Shares redeemed		(2,000,000	)		(46,811,302	)		(1,000,000	)		(24,163,732	)

Net increase (decrease)		(400,000	)	$	(9,828,228	)		(1,000,000	)	$	(24,163,732	)


	Franklin FTSE Europe Hedged ETF

	Six Months Ended September 30, 2019						Year Ended March 31, 2019

	Shares			Amount			Shares			Amount
Shares redeemed		—		$	—			(1,200,000	)	$	(26,372,741	)

Net increase (decrease)		—		$	—			(1,200,000	)	$	(26,372,741	)


	Franklin FTSE France ETF

	Six Months Ended September 30, 2019						Year Ended March 31, 2019

	Shares			Amount			Shares			Amount
Shares sold		50,000		$	1,203,488			—		$	—

Net increase (decrease)		50,000		$	1,203,488			—		$	—


	Franklin FTSE Germany ETF

	Six Months Ended September 30, 2019						Year Ended March 31, 2019

	Shares			Amount			Shares			Amount
Shares sold		—		$	—			100,000		$	2,111,997

Net increase (decrease)		—		$	—			100,000		$	2,111,997


	Franklin FTSE Hong Kong ETF

	Six Months Ended September 30, 2019						Year Ended March 31, 2019

	Shares			Amount			Shares			Amount
Shares sold		—		$	—			450,000		$	10,779,669

Net increase (decrease)		—		$	—			450,000		$	10,779,669


	Franklin FTSE India ETF

	Six Months Ended September 30, 2019						Year Ended March 31, 2019

	Shares			Amount			Shares			Amount
Shares sold		400,000		$	8,509,806			200,000		$	4,613,517

Net increase (decrease)		400,000		$	8,509,806			200,000		$	4,613,517



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2. Shares of Beneficial Interest(continued)


	Franklin FTSE Italy ETF

	Six Months Ended September 30, 2019						Year Ended March 31, 2019

	Shares			Amount			Shares			Amount
Shares sold		50,000		$	1,118,853			650,000		$	14,664,447
Shares redeemed		—			—			(300,000	)		(7,113,549	)

Net increase (decrease)		50,000		$	1,118,853			350,000		$	7,550,898


	Franklin FTSE Japan ETF

	Six Months Ended September 30, 2019						Year Ended March 31, 2019

	Shares			Amount			Shares			Amount
Shares sold		600,000		$	14,601,379			9,600,000		$	246,910,441
Shares redeemed		(4,200,000	)		(101,352,360	)		(1,200,000	)		(29,040,577	)

Net increase (decrease)		(3,600,000	)	$	(86,750,981	)		8,400,000		$	217,869,864


	Franklin FTSE Japan Hedged ETF

	Six Months Ended September 30, 2019						Year Ended March 31, 2019

	Shares			Amount			Shares			Amount
Shares redeemed		(400,000	)	$	(9,119,220	)		(1,200,000	)	$	(27,397,137	)

Net increase (decrease)		(400,000	)	$	(9,119,220	)		(1,200,000	)	$	(27,397,137	)


	Franklin FTSE Latin America ETF

	Six Months Ended September 30, 2019						Year Ended March 31, 2019^a

	Shares			Amount			Shares			Amount
Shares sold		—		$	—			100,000		$	2,619,441

Net increase (decrease)		—		$	—			100,000		$	2,619,441


	Franklin FTSE Mexico ETF

	Six Months Ended September 30, 2019						Year Ended March 31, 2019

	Shares			Amount			Shares			Amount
Shares sold		—		$	—			100,000		$	2,346,009

Net increase (decrease)		—		$	—			100,000		$	2,346,009


	Franklin FTSE Russia ETF

	Six Months Ended September 30, 2019						Year Ended March 31, 2019

	Shares			Amount			Shares			Amount
Shares sold		150,000		$	4,040,147			500,000		$	11,087,284
Shares redeemed		—			—			(100,000	)		(2,262,955	)

Net increase (decrease)		150,000		$	4,040,147			400,000		$	8,824,329



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	Franklin FTSE Saudi Arabia ETF

	Six Months Ended September 30, 2019						Year Ended March 31, 2019^a

	Shares			Amount			Shares			Amount
Shares sold		—		$	—			100,000		$	2,482,525

Net increase (decrease)		—		$	—			100,000		$	2,482,525


	Franklin FTSE South Africa ETF

	Six Months Ended September 30, 2019						Year Ended March 31, 2019^b

	Shares			Amount			Shares			Amount
Shares sold		—		$	—			100,000		$	2,441,624

Net increase (decrease)		—		$	—			100,000		$	2,441,624


	Franklin FTSE South Korea ETF

	Six Months Ended September 30, 2019						Year Ended March 31, 2019

	Shares			Amount			Shares			Amount
Shares sold		100,000		$	2,002,593			—		$	13,712
Shares redeemed		(200,000	)		(3,637,228	)		(200,000	)		(4,241,458	)

Net increase (decrease)		(100,000	)	$	(1,634,635	)		(200,000	)	$	(4,227,746	)


	Franklin FTSE Switzerland ETF

	Six Months Ended September 30, 2019						Year Ended March 31, 2019

	Shares			Amount			Shares			Amount
Shares sold		200,000		$	4,949,338			100,000		$	2,352,537
Shares redeemed		—			—			(100,000	)		(2,173,190	)

Net increase (decrease)		200,000		$	4,949,338			—		$	179,347


	Franklin FTSE Taiwan ETF

	Six Months Ended September 30, 2019						Year Ended March 31, 2019

	Shares			Amount			Shares			Amount
Shares sold		—		$	—			400,000		$	9,254,307

Net increase (decrease)		—		$	—			400,000		$	9,254,307


	Franklin FTSE United Kingdom ETF

	Six Months Ended September 30, 2019						Year Ended March 31, 2019

	Shares			Amount			Shares			Amount
Shares sold		400,000		$	9,464,061			1,450,000		$	34,027,374
Shares redeemed		(400,000	)		(8,916,183	)		(350,000	)		(8,281,306	)

Net increase (decrease)		—		$	547,878			1,100,000		$	25,746,068

^aFor the period October 9, 2018 (commencement of operations) to March 31, 2019.

^bFor the period October 10, 2018 (commencement of operations) to March 31, 2019.



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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

The Funds pay a unified management fee to Advisers whereby Advisers 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 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%
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%



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b. Administrative Fees

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, in an amount not to exceed the management and administrative fees paid directly or indirectly by each affiliate. During the period ended September 30, 2019, investments in affiliated management investment companies were as follows:



	Value at Beginning of Period		Purchases		Sales			Realized Gain (Loss)		Net Change in Unrealized Appreciation (Depreciation)		Value at End of Period		Number of Shares Held at End of Period		Investment Income

Franklin FTSE Asia ex Japan ETF
Non-Controlled Affiliates																	Income from securities loaned

Institutional Fiduciary Trust Money Market Portfolio 1.71%	$	—	$	51,360	$	(45,540	)	$	—	$	—	$	5,820		5,820	$	17


Franklin FTSE Europe Hedged ETF
Non-Controlled Affiliates																Dividend Income

Institutional Fiduciary Trust Money Market Portfolio 1.71%	$	38	$	154,400	$	(112,525	)	$	—	$	—	$	41,913		41,913	$	278


Franklin FTSE Japan ETF
Non-Controlled Affiliates																Dividend Income

Institutional Fiduciary Trust Money Market Portfolio 1.71%	$	114,341	$	3,244,997	$	(3,294,870	)	$	—	$	—	$	64,468		64,468	$	1,583

Non-Controlled Affiliates																Income from securities loaned

Institutional Fiduciary Trust Money Market Portfolio 1.71%	$	117,035	$	444,973	$	(562,008	)	$	—		—	$	—		—	$	1,012

Total Affiliated Securities	$	231,376	$	3,689,970	$	(3,856,878	)	$	—	$	—	$	64,468		64,468	$	2,595


Franklin FTSE Japan Hedged ETF
Non-Controlled Affiliates																Dividend Income

Institutional Fiduciary Trust Money Market Portfolio 1.71%	$	28,014	$	116,660	$	(142,861	)	$	—	$	—	$	1,813		1,813	$	431


Franklin FTSE Russia ETF
Non-Controlled Affiliates																Income from securities loaned

Institutional Fiduciary Trust Money Market Portfolio 1.71%	$	—	$	1,728,315	$	(1,728,315	)	$	—	$	—	$	—		—	$	359



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3. Transactions with Affiliates(continued)

c. Investments in Affiliated Management Investment Companies(continued)



	Value at Beginning of Period		Purchases		Sales			Realized Gain (Loss)		Net Change in Unrealized Appreciation (Depreciation)		Value at End of Period		Number of Shares Held at End of Period		Investment Income

Franklin FTSE South Korea ETF
Non-Controlled Affiliates																Income from securities loaned

Institutional Fiduciary Trust Money Market Portfolio 1.71%	$	—	$	64,622	$	(64,622	)	$	—	$	—	$	—		—	$	79

d. Other Affiliated Transactions

At September 30, 2019, 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		386,855		13.8%
Franklin Moderate Allocation Fund		964,812		34.5%
Franklin Growth Allocation Fund		851,550		30.4%
Franklin LifeSmart^™ 2020 – 2055 Retirement Target Funds		343,805		12.3%

		2,547,022		91.0%

Franklin FTSE Europe Hedged ETF
Franklin Resources Inc.		50,000		25.0%

Franklin FTSE Japan ETF
Franklin Moderate Allocation Fund		466,227		5.6%

Franklin FTSE Japan Hedged ETF
Franklin Resources Inc.		75,000		37.5%

Franklin FTSE Latin America ETF
Franklin Resources Inc.		46,000		46.0%

Franklin FTSE Saudi Arabia ETF
Franklin Resources Inc.		46,000		46.0%

Franklin FTSE South Africa ETF
Franklin Resources Inc.		41,000		41.0%

^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, 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:
Long term	$	167,800	$	18,758	$	9,461,679	$	24,527
Short term		39,257		8,557		55,524		13,525

Total capital loss carryforwards	$	207,057	$	27,315	$	9,517,203	$	38,052



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	Franklin FTSE China ETF		Franklin FTSE Europe ETF		Franklin FTSE Europe Hedged ETF		Franklin FTSE France ETF
Capital loss carryforwards:
Long term	$	471,553	$	117,199	$	—	$	6,306
Short 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:
Long term	$	16,006	$	47,969	$	43,692	$	17,074
Short 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:
Long term	$	1,690,921	$	—	$	2,923	$	50,983
Short 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:
Long term	$	79,193	$	33	$	4,187	$	870,257
Short term		5,575		—		—		679,368

Total capital loss carryforwards	$	84,768	$	33	$	4,187	$	1,549,625


	Franklin FTSE Switzerland ETF		Franklin FTSE Taiwan ETF		Franklin FTSE United Kingdom ETF
Capital loss carryforwards:
Long term	$	18,741	$	8,374	$	—
Short term		8,968		36,114		—

Total capital loss carryforwards	$	27,709	$	44,488	$	—



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4. Income Taxes (continued)



	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	)

At September 30, 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	$	18,558,411		$	11,483,850		$	13,842,129		$	4,896,342

Unrealized appreciation	$	827,306		$	403,397		$	2,396,482		$	387,317
Unrealized depreciation		(3,011,883	)		(527,266	)		(669,048	)		(161,696	)

Net unrealized appreciation (depreciation)	$	(2,184,577	)	$	(123,869	)	$	1,727,434		$	225,621


	Franklin FTSE China ETF			Franklin FTSE Europe ETF			Franklin FTSE Europe Hedged ETF			Franklin FTSE France ETF
Cost of investments	$	45,021,637		$	73,203,671		$	5,485,972		$	3,756,365

Unrealized appreciation	$	1,467,411		$	3,097,938		$	260,913		$	253,098
Unrealized depreciation		(7,120,796	)		(10,858,604	)		(946,211	)		(277,017	)

Net unrealized appreciation (depreciation)	$	(5,653,385	)	$	(7,760,666	)	$	(685,298	)	$	(23,919	)


	Franklin FTSE Germany ETF			Franklin FTSE Hong Kong ETF			Franklin FTSE India ETF			Franklin FTSE Italy ETF
Cost of investments	$	4,628,951		$	18,470,227		$	15,298,599		$	10,967,451

Unrealized appreciation	$	241,064		$	976,266		$	1,039,481		$	1,056,106
Unrealized depreciation		(685,944	)		(1,783,479	)		(952,616	)		(463,320	)

Net unrealized appreciation (depreciation)	$	(444,880	)	$	(807,213	)	$	86,865		$	592,786


	Franklin FTSE Japan ETF			Franklin FTSE Japan Hedged ETF			Franklin FTSE Latin America ETF			Franklin FTSE Mexico ETF
Cost of investments	$	232,921,105		$	5,313,676		$	2,616,905		$	4,659,333

Unrealized appreciation	$	7,249,198		$	214,276		$	246,607		$	163,892
Unrealized depreciation		(34,162,443	)		(862,873	)		(270,881	)		(487,393	)

Net unrealized appreciation (depreciation)	$	(26,913,245	)	$	(648,597	)	$	(24,274	)	$	(323,501	)



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	Franklin FTSE Russia ETF			Franklin FTSE Saudi Arabia ETF			Franklin FTSE South Africa ETF			Franklin FTSE South Korea ETF
Cost of investments	$	15,808,698		$	2,502,418		$	2,641,499		$	17,603,377

Unrealized appreciation	$	1,838,580		$	220,321		$	171,199		$	105,973
Unrealized depreciation		(364,979	)		(170,393	)		(357,336	)		(4,017,518	)

Net unrealized appreciation (depreciation)	$	1,473,601		$	49,928		$	(186,137	)	$	(3,911,545	)


	Franklin FTSE Switzerland ETF			Franklin FTSE Taiwan ETF			Franklin FTSE United Kingdom ETF
Cost of investments	$	7,332,109		$	14,744,842		$	29,743,820

Unrealized appreciation	$	464,156		$	1,432,875		$	682,417
Unrealized depreciation		(122,096	)		(796,225	)		(2,532,778	)

Net unrealized appreciation (depreciation)	$	342,060		$	636,650		$	(1,850,361	)

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 period ended September 30, 2019, were as follows:



	Franklin FTSE Asia ex Japan ETF		Franklin FTSE Australia ETF		Franklin FTSE Brazil ETF		Franklin FTSE Canada ETF
Purchases	$	1,236,631	$	537,776	$	943,222	$	159,544
Sales	$	1,082,556	$	565,140	$	6,136,279	$	123,202

	Franklin FTSE China ETF		Franklin FTSE Europe ETF		Franklin FTSE Europe Hedged ETF		Franklin FTSE France ETF
Purchases	$	6,163,985	$	2,724,321	$	552,500	$	92,706
Sales	$	5,477,845	$	1,971,755	$	190,191	$	49,893

	Franklin FTSE Germany ETF		Franklin FTSE Hong Kong ETF		Franklin FTSE India ETF		Franklin FTSE Italy ETF
Purchases	$	151,867	$	771,696	$	8,841,532	$	762,198
Sales	$	139,086	$	497,657	$	377,741	$	687,570

	Franklin FTSE Japan ETF		Franklin FTSE Japan Hedged ETF		Franklin FTSE Latin America ETF		Franklin FTSE Mexico ETF
Purchases	$	8,218,942	$	522,557	$	163,508	$	398,123
Sales	$	8,276,956	$	570,123	$	164,392	$	371,432



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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
Purchases	$	1,312,009	$	403,657	$	318,151	$	2,650,719
Sales	$	671,006	$	387,778	$	301,212	$	3,990,704

	Franklin FTSE Switzerland ETF		Franklin FTSE Taiwan ETF		Franklin FTSE United Kingdom ETF
Purchases	$	293,336	$	787,539	$	1,056,280
Sales	$	296,545	$	344,832	$	629,806

In-kind transactions associated with creation and redemptions for the period ended September 30, 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	$	—	$	3,780,508	$	—	$	—
Value of Securities Delivered	$	—	$	—	$	—	$	—

	Franklin FTSE China ETF		Franklin FTSE Europe ETF		Franklin FTSE Europe Hedged ETF		Franklin FTSE France ETF
Cost of Securities Received	$	—	$	36,634,002	$	—	$	1,201,434
Value of Securities Delivered	$	—	$	46,582,428	$	—	$	—

	Franklin FTSE Germany ETF		Franklin FTSE Hong Kong ETF		Franklin FTSE India ETF		Franklin FTSE Italy ETF
Cost of Securities Received	$	—	$	—	$	—	$	1,115,735
Value of Securities Delivered	$	—	$	—	$	—	$	—

	Franklin FTSE Japan ETF		Franklin FTSE Japan Hedged ETF		Franklin FTSE Latin America ETF		Franklin FTSE Mexico ETF
Cost of Securities Received	$	14,338,754	$	—	$	—	$	—
Value of Securities Delivered	$	99,995,106	$	9,007,028	$	—	$	—

	Franklin FTSE Russia ETF		Franklin FTSE Saudi Arabia ETF		Franklin FTSE South Africa ETF		Franklin FTSE South Korea ETF
Cost of Securities Received	$	4,030,887	$	—	$	—	$	—
Value of Securities Delivered	$	—	$	—	$	—	$	—

	Franklin FTSE Switzerland ETF		Franklin FTSE Taiwan ETF		Franklin FTSE United Kingdom ETF
Cost of Securities Received	$	4,935,191	$	—	$	9,285,379
Value of Securities Delivered	$	—	$	—	$	8,816,629



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At September 30, 2019, in connection with securities lending transactions, certain or all Funds loaned investments and received cash collateral as follows:



	Franklin FTSE Asia Ex Japan ETF
Securities lending transactions^a:
Equity investments^b	$	5,820

^aThe agreements can be terminated at any time.

^bThe gross amount of recognized liability for such transactions is included in payable upon return of securities loaned in the Statements of Assets and Liabilities.

6. Concentration of Risk

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 Funds’ ability to sell these securities. At September 30, 2019, Franklin FTSE Russia ETF had 99.9% of its net assets invested in Russia. The remaining Funds in the Trust did not have significant investment in Russia.

7. Other Derivative Information

At September 30, 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	$	—		Variation margin on futures contracts	$	2,454	^a

Totals		$	—			$	2,454

Franklin FTSE Brazil ETF

Equity contracts	Variation margin on futures contracts	$	3,066	^a	Variation margin on futures contracts	$	—

Totals		$	3,066			$	—

Franklin FTSE China ETF

Equity contracts	Variation margin on futures contracts	$	—		Variation margin on futures contracts	$	2,831	^a

Totals		$	—			$	2,831



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7. Other Derivative Information(continued)



	Asset Derivatives				Liability Derivatives

	Statements of Assets and Liabilities Location	Fair Value			Statements of Assets and Liabilities Location	Fair Value
Franklin FTSE Europe ETF

Equity contracts	Variation margin on futures contracts	$	11,926	^a	Variation margin on futures contracts	$	—

Totals		$	11,926			$	—

Franklin FTSE Europe Hedged ETF

Foreign exchange contracts	Unrealized appreciation on OTC forward exchange contracts	$	39,155		Unrealized depreciation on OTC forward exchange contracts	$	13,312

Equity contracts	Variation margin on futures contracts		1,240	^a	Variation margin on futures contracts		—

Totals		$	40,395			$	13,312

Franklin FTSE Hong Kong ETF

Equity contracts	Variation margin on futures contracts	$	—		Variation margin on futures contracts	$	1,884	^a

Totals		$	—			$	1,884

Franklin FTSE India ETF

Equity contracts	Variation margin on futures contracts	$	—		Variation margin on futures contracts	$	351	^a

Totals		$	—			$	351

Franklin FTSE Japan ETF

Equity contracts	Variation margin on futures contracts	$	3,426	^a	Variation margin on futures contracts	$	6,935	^a

Totals		$	3,426			$	6,935

Franklin FTSE Japan Hedged ETF

Foreign exchange contracts	Unrealized appreciation on OTC forward exchange contracts	$	89,220		Unrealized depreciation on OTC forward exchange contracts	$	458

Equity contracts	Variation margin on futures contracts		—		Variation margin on futures contracts		233	^a

Totals		$	89,220			$	691

Franklin FTSE South Korea ETF

Equity Contracts	Variation margin on futures contracts	$	717	^a	Variation margin on futures contracts	$	—


Totals		$	717			$	—

Franklin FTSE Taiwan ETF

Equity contracts	Variation margin on futures contracts	$	248	^a	Variation margin on futures contracts	$	—

Totals		$	248			$	—

Franklin FTSE United Kingdom ETF

Equity contracts	Variation margin on futures contracts	$	2,487	^a	Variation margin on futures contracts	$	—

Totals		$	2,487			$	—



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For the period ended September 30, 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 FTSE Asia ex Japan ETF
	Net realized gain (loss) from:				Net change in unrealized appreciation (depreciation) on:

Equity contracts	Futures contracts	$	(2,427	)	Futures contracts	$	(2,973	)


Totals		$	(2,427	)		$	(2,973	)

Franklin FTSE Brazil ETF

	Net realized gain (loss) from:				Net change in unrealized appreciation (depreciation) on:
Equity contracts	Futures contracts	$	3,822		Futures contracts	$	5,381

Totals		$	3,822			$	5,381

Franklin FTSE China ETF

	Net realized gain (loss) from:				Net change in unrealized appreciation (depreciation) on:

Equity contracts	Futures contracts	$	(765	)	Futures contracts	$	(2,831	)

Totals		$	(765	)		$	(2,831	)

Franklin FTSE Europe ETF
	Net realized gain (loss) from:				Net change in unrealized appreciation (depreciation) on:

Equity contracts	Futures contracts	$	38,389		Futures contracts	$	5,970

Totals		$	38,389			$	5,970

Franklin FTSE Europe Hedged ETF
	Net realized gain (loss) from:				Net change in unrealized appreciation (depreciation) on:

Equity contracts	Futures contracts	$	10,957		Futures contracts	$	334

Foreign exchange contracts	Foreign currency transactions		404,827		Translation of other assets and liabilities denominated in foreign currencies		(199,957	)

Totals		$	415,784			$	(199,623	)

Franklin FTSE France ETF

	Net realized gain (loss) from:				Net change in unrealized appreciation (depreciation) on:

Equity contracts	Futures contracts	$	965		Futures contracts	$	—

Totals		$	965			$	—

Franklin FTSE Hong Kong ETF

	Net realized gain (loss) from:				Net change in unrealized appreciation (depreciation) on:

Equity contracts	Futures contracts	$	2,699		Futures contracts	$	(1,885	)

Totals		$	2,699			$	(1,885	)



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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 Period			Statements of Operations Locations	Net Change in Unrealized Appreciation (Depreciation) for the Period
Franklin FTSE India ETF

	Net realized gain (loss) from:				Net change in unrealized appreciation (depreciation) on:

Equity contracts	Futures contracts	$	(177	)	Futures contracts	$	(771	)

Totals		$	(177	)		$	(771	)

Franklin FTSE Italy ETF

	Net realized gain (loss) from:				Net change in unrealized appreciation (depreciation) on:

Equity contracts	Futures contracts	$	6		Futures contracts	$	—

Totals		$	6			$	—

Franklin FTSE Japan ETF

	Net realized gain (loss) from:				Net change in unrealized appreciation (depreciation) on:

Equity contracts	Futures contracts	$	62,163		Futures contracts	$	2,273

Totals		$	62,163			$	2,273

Franklin FTSE Japan Hedged ETF

	Net realized gain (loss) from:				Net change in unrealized appreciation (depreciation) on:

Equity contracts	Futures contracts	$	(5,731	)	Futures contracts	$	1,470

Foreign exchange contracts	Foreign currency transactions		(252,553	)	Translation of other assets and liabilities denominated in foreign currencies		69,721

Totals		$	(258,284	)		$	71,191

Franklin FTSE Latin America ETF

	Net realized gain (loss) from:				Net change in unrealized appreciation (depreciation) on:

Equity contracts	Futures contracts	$	156		Futures contracts	$	245

Totals		$	156			$	245

Franklin FTSE Mexico ETF

	Net realized gain (loss) from:				Net change in unrealized appreciation (depreciation) on:

Equity contracts	Futures contracts	$	127		Futures contracts	$	—

Totals		$	127			$	—

Franklin FTSE South Korea ETF

	Net realized gain (loss) from:				Net change in unrealized appreciation (depreciation) on:

Equity contracts	Futures contracts	$	2,099		Futures contracts	$	2,015

Totals		$	2,099			$	2,015



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Derivative Contracts Not Accounted for as Hedging Instruments	Statements of Operations Locations	Net Realized Gain (Loss) for the Period		Statements of Operations Locations	Net Change in Unrealized Appreciation (Depreciation) for the Period
Franklin FTSE Taiwan ETF

	Net realized gain (loss) from:			Net change in unrealized appreciation (depreciation) on:

Equity contracts	Futures contracts	$	3,185	Futures contracts	$	248

Totals		$	3,185		$	248

Franklin FTSE United Kingdom ETF

	Net realized gain (loss) from:			Net change in unrealized appreciation (depreciation) on:

Equity contracts	Futures contracts	$	16,542	Futures contracts	$	(4,316	)

Totals		$	16,542		$	(4,316	)

For the period ended September 30, 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
Futures contracts	$	72,958	$	84,259	$	94,755	$	542,477

	Franklin FTSE Europe Hedged ETF		Franklin FTSE Hong Kong ETF		Franklin FTSE India ETF		Franklin FTSE Italy ETF
Futures contracts	$	86,135	$	74,919	$	23,123	$	23,370
Foreign exchange contracts	$	17,753,517	$	—	$	—	$	—

	Franklin FTSE Japan ETF		Franklin FTSE Japan Hedged ETF		Franklin FTSE South Korea ETF		Franklin FTSE Taiwan ETF
Futures contracts	$	2,191,122	$	124,803	$	69,344	$	79,025
Foreign exchange contracts	$	—	$	32,181,376	$	—	$	—

	Franklin FTSE United Kingdom ETF
Futures contracts	$	289,621



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NOTES TO FINANCIAL STATEMENTS

7. Other Derivative Information(continued)

At September 30, 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
Foreign exchange contracts	$	39,155	$	13,312


Franklin FTSE Japan Hedged ETF
Foreign exchange contracts	$	89,220	$	458

^aAbsent an event of default or early termination, OTC derivative assets and liabilities are presented gross and not offset in the Statements of Assets and Liabilities.

At September 30, 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^a		Cash Collateral Received^a		Net Amount (Not less than zero)
Franklin FTSE Europe Hedged ETF
Counterparty
BOFA	$	12,588	$	(12,588	)	$	—	$	—	$	—
HSBK		9,586		(44	)		—		—		9,542
MSCO		7,393		—			—		—		7,393
UBSW		9,588		(46	)		—		—		9,542

Total	$	39,155	$	(12,678	)	$	—	$	—	$	26,477


			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^a		Cash Collateral Received^a		Net Amount (Not less than zero)
Franklin FTSE Japan Hedged ETF
Counterparty
BOFA	$	26,196	$	(26	)	$	—	$	—	$	26,170
HSBK		26,152		(79	)		—		—		26,073
MSCO		10,714		(23	)		—		—		10,691
UBSW		26,158		(330	)		—		—		25,828

Total	$	89,220	$	(458	)	$	—	$	—	$	88,762



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NOTES TO FINANCIAL STATEMENTS

At September 30, 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 Assets Presented in the Statements of Assets and Liabilities		Financial Instruments Available for Offset			Financial Instruments Collateral Received^a		Cash Collateral Received^a		Net Amount (Not less than zero)
Franklin FTSE Europe Hedged ETF
Counterparty
BOFA	$	13,222	$	(12,588	)	$	—	$	—	$	634
HSBK		44		(44	)		—		—		—
UBSW		46		(46	)		—		—		—

Total	$	13,312	$	(12,678	)	$	—	$	—	$	634


			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^a		Cash Collateral Received^a		Net Amount (Not less than zero)
Franklin FTSE Japan Hedged ETF
Counterparty
BOFA	$	26	$	(26	)	$	—	$	—	$	—
HSBK		79		(79	)		—		—		—
MSCO		23		(23	)		—		—		—
UBSW		330		(330	)		—		—		—

Total	$	458	$	(458	)	$	—	$	—	$	—

See Note 1(c) regarding derivative financial instruments.

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.



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8. Fair Value Measurements(continued)

A summary of inputs used as of September 30, 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	$	6,070,225	$	5,695	$	—	^c	$	6,075,920
India		1,847,943		—		617			1,848,560
South Korea		2,239,487		—		1,926			2,241,413
Taiwan		2,132,431		—		1,202			2,133,633
Thailand		611,745		—		—			611,745
Other Equity Investments		3,462,472		—		—			3,462,472
Corporate Bonds & Notes		—		91		—			91
Short-Term Investments		5,820		—		—			5,820

Total Investments in Securities	$	16,370,123	$	5,786	$	3,745	^c	$	16,379,654


Liabilities:
Other Financial Instruments:
Futures Contracts	$	2,454	$	—	$	—		$	2,454


Franklin FTSE Australia ETF

Assets:
Investments in Securities:^a
Equity Investments^b	$	11,359,981	$	—	$	—		$	11,359,981


Franklin FTSE Brazil ETF

Assets:
Investments in Securities:^a
Equity Investments^b	$	15,569,563	$	—	$	—		$	15,569,563

Other Financial Instruments:
Futures Contracts	$	3,066	$	—	$	—		$	3,066


Franklin FTSE Canada ETF

Assets:
Investments in Securities:^a
Equity Investments^b	$	5,121,963	$	—	$	—		$	5,121,963


Franklin FTSE China ETF

Assets:
Investments in Securities:^a
Equity Investments:^b
China	$	38,807,024	$	38,996	$	—	^c	$	38,846,020
Other Equity Investments		522,232		—		—			522,232

Total Investments in Securities	$	39,329,256	$	38,996	$	—	^c	$	39,368,252


Liabilities:
Other Financial Instruments:
Futures Contracts	$	2,831	$	—	$	—		$	2,831



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	Level 1		Level 2		Level 3			Total

Franklin FTSE Europe ETF

Assets:
Investments in Securities:^a
Equity Investments^b	$	65,443,005	$	—	$	—		$	65,443,005

Other Financial Instruments:
Futures Contracts	$	11,926	$	—	$	—		$	11,926


Franklin FTSE Europe Hedged ETF

Assets:
Investments in Securities:^a
Equity Investments^b	$	4,758,761	$	—	$	—		$	4,758,761
Short-Term Investments		41,913		—		—			41,913

Total Investments in Securities	$	4,800,674	$	—	$	—		$	4,800,674

Other Financial Instruments:
Forward Exchange Contracts	$	—	$	39,155	$	—		$	39,155
Futures Contracts		1,240		—		—			1,240

Total Other Financial Instruments	$	1,240	$	39,155	$	—		$	40,395


Liabilities:
Other Financial Instruments:
Forward Exchange Contracts	$	—	$	13,312	$	—		$	13,312


Franklin FTSE France ETF

Assets:
Investments in Securities:^a
Equity Investments^b	$	3,732,446	$	—	$	—		$	3,732,446


Franklin FTSE Germany ETF

Assets:
Investments in Securities:^a
Equity Investments^b	$	4,184,071	$	—	$	—		$	4,184,071


Franklin FTSE Hong Kong ETF

Assets:
Investments in Securities:^a
Equity Investments^b	$	17,663,014	$	—	$	—		$	17,663,014


Liabilities:
Other Financial Instruments:
Futures Contracts	$	1,884	$	—	$	—		$	1,884


Franklin FTSE India ETF

Assets:
Investments in Securities:^a
Equity Investments:^b
India	$	15,380,334	$	—	$	4,712	^c	$	15,385,046
Corporate Bonds & Notes		—		418		—			418

Total Investments in Securities	$	15,380,334	$	418	$	4,712	^c	$	15,385,464


Liabilities:
Other Financial Instruments:
Futures Contracts	$	351	$	—	$	—		$	351



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8. Fair Value Measurements(continued)



	Level 1		Level 2		Level 3		Total

Franklin FTSE Italy ETF

Assets:
Investments in Securities:^a
Equity Investments^b	$	11,560,237	$	—	$	—	$	11,560,237


Franklin FTSE Japan ETF

Assets:
Investments in Securities:^a
Equity Investments^b	$	205,943,393	$	—	$	—	$	205,943,393
Short-Term Investments		64,467		—		—		64,467

Total Investments in Securities	$	206,007,860	$	—	$	—	$	206,007,860

Other Financial Instruments:
Futures Contracts	$	3,426	$	—	$	—	$	3,426


Liabilities:
Other Financial Instruments:
Futures Contracts	$	6,935	$	—	$	—	$	6,935


Franklin FTSE Japan Hedged ETF

Assets:
Investments in Securities:^a
Equity Investments^b	$	4,663,266	$	—	$	—	$	4,663,266
Short-Term Investments		1,813		—		—		1,813

Total Investments in Securities	$	4,665,079	$	—	$	—	$	4,665,079

Other Financial Instruments:
Forward Exchange Contracts	$	—	$	89,220	$	—	$	89,220

Liabilities:
Other Financial Instruments:
Forward Exchange Contracts	$	—	$	458	$	—	$	458
Futures Contracts		233		—		—		233

Total Other Financial Instruments	$	233	$	458	$	—	$	691


Franklin FTSE Latin America ETF

Assets:
Investments in Securities:^a
Equity Investments:^b
Colombia	$	90,966	$	—	$	4,149	$	95,115
Other Equity Investments		2,497,516		—		—		2,497,516

Total Investments in Securities	$	2,588,482	$	—	$	4,149	$	2,592,631


Franklin FTSE Mexico ETF

Assets:
Investments in Securities:^a
Equity Investments^b	$	4,335,832	$	—	$	—	$	4,335,832


Franklin FTSE Russia ETF

Assets:
Investments in Securities:^a
Equity Investments^b	$	17,282,299	$	—	$	—	$	17,282,299



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NOTES TO FINANCIAL STATEMENTS



	Level 1		Level 2		Level 3		Total

Franklin FTSE Saudi Arabia ETF

Assets:
Investments in Securities:^a
Equity Investments^b	$	2,552,346	$	—	$	—	$	2,552,346


Franklin FTSE South Africa ETF

Assets:
Investments in Securities:^a
Equity Investments^b	$	2,455,362	$	—	$	—	$	2,455,362


Franklin FTSE South Korea ETF

Assets:
Investments in Securities:^a
Equity Investments:^b
South Korea	$	13,678,965	$	—	$	12,867	$	13,691,832

Other Financial Instruments:
Futures Contracts	$	717	$	—	$	—	$	717


Franklin FTSE Switzerland ETF

Assets:
Investments in Securities:^a
Equity Investments^b	$	7,674,169	$	—	$	—	$	7,674,169


Franklin FTSE Taiwan ETF

Assets:
Investments in Securities:^a
Equity Investments:^b
Taiwan	$	15,368,868	$	—	$	12,624	$	15,381,492

Other Financial Instruments:
Futures Contracts	$	248	$	—	$	—	$	248


Franklin FTSE United Kingdom ETF

Assets:
Investments in Securities:^a
Equity Investments^b	$	27,893,459	$	—	$	—	$	27,893,459

Other Financial Instruments:
Futures Contracts	$	2,487	$	—	$	—	$	2,487

^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 September 30, 2019



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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
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
SF		Single Family

Counterparty
BOFA		Bank of America Corp.
HSBK		HSBC Bank PLC
MSCO		Morgan Stanley
UBSW		UBS AG



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Tax Information (unaudited)

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. As shown in the table below, the Funds hereby report to shareholders the foreign source income and foreign taxes paid, pursuant to Section 853 of the Internal Revenue Code. This written statement will allow shareholders of record on June 12, 2019, 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.

The following table provides a detailed analysis of foreign tax paid, foreign source income, and foreign source qualified dividends as reported by the Funds to shareholders of record.



Fund	Foreign Tax Paid Per Share		Foreign Source Income Per Share		Foreign Source Qualified Dividends Per Share
Franklin FTSE Asia ex Japan ETF	$	0.0558	$	0.5368	$	0.2337
Franklin FTSE Australia ETF	$	0.0129	$	0.9498	$	0.8684
Franklin FTSE Brazil ETF	$	0.0959	$	1.1363	$	0.0000
Franklin FTSE Canada ETF	$	0.0972	$	0.6481	$	0.6128
Franklin FTSE Europe ETF	$	0.0655	$	0.7150	$	0.7057
Franklin FTSE Europe Hedged ETF	$	0.5101	$	5.4492	$	5.3667
Franklin FTSE France ETF	$	0.0867	$	0.5548	$	0.5538
Franklin FTSE Germany ETF	$	0.0524	$	0.4232	$	0.4226
Franklin FTSE Italy ETF	$	0.0477	$	0.3092	$	0.3072
Franklin FTSE Japan ETF	$	0.0611	$	0.5897	$	0.5171
Franklin FTSE Japan Hedged ETF	$	0.3720	$	3.7665	$	3.6029
Franklin FTSE Mexico ETF	$	0.0226	$	0.4264	$	0.4253
Franklin FTSE South Korea ETF	$	0.0900	$	0.5572	$	0.5359
Franklin FTSE Switzerland ETF	$	0.0496	$	0.3356	$	0.3342
Franklin FTSE United Kingdom ETF	$	0.0070	$	0.5349	$	0.4869
Franklin FTSE China ETF	$	0.0285	$	0.3493	$	0.2491
Franklin FTSE Taiwan ETF	$	0.0744	$	0.3398	$	0.0000
Franklin FTSE Latin America ETF	$	0.0418	$	0.4240	$	0.0539
Franklin FTSE Saudi Arabia ETF	$	0.0078	$	0.1214	$	0.0000
Franklin FTSE Russia ETF	$	0.1164	$	0.7571	$	0.7389
Franklin FTSE South Africa ETF	$	0.0435	$	0.2613	$	0.2497
Franklin FTSE Hong Kong ETF	$	0.0003	$	0.4404	$	0.0007

Bymid-February 2020, shareholders will receive Form1099-DIV which will include their share of taxes paid and foreign source income distributed during the prior calendar year 2019. The Foreign Source Income reported on Form1099-DIV has not been adjusted for the rate differential on foreign source qualified dividend income. 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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Shareholder Information

Board Approval of Investment Management Agreements

FRANKLIN TEMPLETON ETF TRUST

Franklin FTSE Asia ex Japan ETF

Franklin FTSE Australia ETF

Franklin FTSE Brazil ETF

Franklin FTSE Canada ETF

Franklin FTSE China ETF

Franklin FTSE Europe ETF

Franklin FTSE 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 Mexico ETF

Franklin FTSE Russia ETF

Franklin FTSE South Korea ETF

Franklin FTSE Switzerland ETF

Franklin FTSE Taiwan ETF

Franklin FTSE United Kingdom ETF

(each a Fund)

response to a detailed set of requests for information submitted to the Manager by Independent Trustee counsel on behalf of the Independent Trustees in connection with the annual contract renewal process. In addition, prior to the Meeting, the Independent Trustees held a telephonic contract renewal meeting at which the Independent Trustees conferred amongst themselves and Independent Trustee counsel about contract renewal matters. The Board reviewed and considered all of the factors it deemed relevant in approving the continuance of each Management Agreement, including, but not limited to: (i) the nature, extent and quality of the services provided by the Manager; (ii) each Fund’s tracking error against a specified benchmark index as of a recent period; (iii) the costs of the services provided and profits realized by the Manager and its affiliates from the relationship with each Fund; (iv) the extent to which economies of scale are realized as each Fund grows; and (v) whether fee levels reflect these economies of scale for the benefit of Fund investors.



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SHAREHOLDER INFORMATION

commitment to facilitating Board oversight of liquidity through the designation of a liquidity/risk administrator and the development of reports that highlight the amount of illiquid investments for each Fund.

Following consideration of such information, the Board was satisfied with the nature, extent and quality of services provided by the Manager and its affiliates to the Funds and their shareholders.

FUND PERFORMANCE. The Board noted that, in light of the Funds’ use of a “passive” or indexing investment approach, management evaluates the Funds based on their tracking error against a specified benchmark. The Board also noted that management did not provide peer fund performance analysis typically prepared by Broadridge Financial Solutions, Inc. (Broadridge), an independent provider of investment company data, as the Funds’ are pure-index exchange-traded funds as opposed to active or smart beta funds. The Board referenced earlier discussions with management on matters related to, among other things, the strategy behind the overall productline-up, the design and construction of the Manager’s proprietary indices, the comparability of peer data, the nature of the Manager’s research, the potential use of innovative data and technology, and investments in marketing and distribution. The Board noted that for theone-year period ended February 28, 2019, each Fund’s tracking error was within the tolerance anticipated for such Fund, except that the tracking error for the Franklin FTSE Switzerland ETF was 9.6 basis points above the tolerance anticipated for this Fund.

each Fund in comparison to the median expense ratio and median Management Rate, respectively, of other exchange-traded funds deemed comparable to and with a similar expense structure to the Fund selected by Broadridge (Expense Group). Broadridge fee and expense data is based upon information taken from each fund’s most recent annual report, which reflects historical asset levels that may be quite different from those currently existing, particularly in a period of market volatility. While recognizing such inherent limitation and the fact that expense ratios and Management Rates generally increase as assets decline and decrease as assets grow, the Board believed the independent analysis conducted by Broadridge to be an appropriate measure of comparative fees and expenses. The Broadridge Management Rate includes administrative charges. The Board received a description of the methodology used by Broadridge to select the exchange-traded funds included in an Expense Group. The Expense Group for each Fund was as follows:

•

The Expense Group for the Franklin FTSE Asia Ex Japan ETF was comprised of pure-index exchange-traded funds, which included the Fund and two other Pacificex-Japan funds.

•

The Expense Group for the Franklin FTSE Australia ETF was comprised of pure-index exchange-traded funds, which included the Fund and one other Pacific region fund.

•

The Expense Group for the Franklin FTSE Brazil ETF was comprised of pure-index exchange-traded funds, which included the Fund and two other Latin American funds.

•

The Expense Group for the Franklin FTSE Canada ETF was comprised of pure-index exchange-traded funds, which included the Fund and two internationalmulti-cap core funds.

•

The Expense Group for the Franklin FTSE China ETF was comprised of pure-index exchange-traded funds, which included the Fund and seven other China region funds.

•

The Expense Group for the Franklin FTSE Europe ETF was comprised of pure-index exchange-traded funds, which included the Fund and five other European region funds.

•

The Expense Group for the Franklin FTSE Europe Hedged ETF was comprised of pure-index exchange-traded funds, which included the Fund and three other European region funds.

•

The Expense Group for the Franklin FTSE France ETF was comprised of pure-index exchange-traded funds,



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which included the Fund and three other European region funds.

•

The Expense Group for the Franklin FTSE German ETF was comprised of pure-index exchange-traded funds, which included the Fund and four other European region funds.

•

The Expense Group for the Franklin FTSE Hong Kong ETF was comprised of pure-index exchange-traded funds, which included the Fund and one other China region fund.

•

The Expense Group for the Franklin FTSE India ETF was comprised of pure-index exchange-traded funds, which included the Fund and four other India region funds.

•

The Expense Group for the Franklin FTSE Italy ETF was comprised of pure-index exchange-traded funds, which included the Fund and one other European region fund.

•

The Expense Group for the Franklin FTSE Japan ETF was comprised of pure-index exchange-traded funds, which included the Fund and four other Japanese funds.

•

The Expense Group for the Franklin FTSE Japan Hedged ETF was comprised of pure-index exchange-traded funds, which included the Fund and four other Japanese funds.

•

The Expense Group for the Franklin FTSE Mexico ETF was comprised of pure-index exchange-traded funds, which included the Fund and two other Latin American funds.

•

The Expense Group for the Franklin FTSE Russia ETF was comprised of pure-index exchange-traded funds, which included the Fund and two other emerging markets funds.

•

The Expense Group for the Franklin FTSE South Korea ETF was comprised of pure-index exchange-traded funds, which included the Fund and two other Pacificex-Japan funds.

•

The Expense Group for the Franklin FTSE Switzerland ETF was comprised of pure-index exchange-traded funds, which included the Fund and one other European region fund.

•

The Expense Group for the Franklin FTSE Taiwan ETF was comprised of pure-index exchange-traded funds, which included the Fund and one other China region fund.

•

The Expense Group for the Franklin FTSE United Kingdom ETF was comprised of pure-index exchange-traded funds, which included the Fund and three other European region funds.

The Board noted that the Management Rates and actual total expense ratios for the Funds were below the medians of their respective Expense Groups, except that the actual total expense ratio for the Franklin FTSE Mexico ETF was equal to the median of its Expense Group. The Board also noted the small size of each Fund’s Expense Group, except for the Franklin FTSE China ETF which had 8 peers in its Expense Group. The Board further noted each Fund’s unified management fee (Unified Fee). The Board also noted that pursuant to the Unified Fee arrangement the Manager reimburses the Fund for all of its acquired fund fees and expenses (if any) and pays all of the ordinary operating expenses of the Fund, except for (i) the Fund’s investment management fee, (ii) payments under the Fund’s Rule12b-1 plan (if any), (iii) brokerage expenses, (iv) taxes, (v) interest (including borrowing costs and dividend expenses on securities sold short and overdraft charges), (vi) litigation expenses (including litigation to which the Trust or the Fund may be a party and indemnification of the Trustees and officers with respect thereto), and (vii) othernon-routine or extraordinary expenses (Unified Fee Arrangement). The Board concluded that the Management Rate charged to each Fund is reasonable.



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SHAREHOLDER INFORMATION

also noted management’s expenditures in improving shareholder services provided to the Funds, as well as the need to implement systems and meet additional regulatory and compliance requirements resulting from recent SEC and other regulatory requirements.

ECONOMIES OF SCALE. The Board reviewed and considered the extent to which the Manager may realize economies of scale, if any, as each Fund grows larger and whether each Fund’s management fee structure reflects any economies of scale for the benefit of shareholders. The Board considered that each Fund would likely experience benefits from the Unified Fee at the Fund’s projected asset levels because of the Manager’s contractual requirement to bear most of the Fund’s ordinary operating expenses. The Board noted that, under the Unified Fee, it is not anticipated that any of the Funds will generate significant, if any, profit for the Manager and/or its affiliates for some time. The Board considered the Manager’s view that any analyses of potential economies of scale in managing a particular fund are inherently limited in light of the joint and common costs and investments the Manager incurs across the Franklin Templeton family of funds as a whole. The Board noted that at the end of 2018, the net assets of each Fund were less than $68 million (and in most cases much less), except for the Franklin FTSE Japan ETF which had assets of approximately $258 million. The Board recognized that there would not likely be any economies of scale until these Funds’ assets grow.

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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SEMIANNUAL REPORT

FRANKLIN TEMPLETON

ETF TRUST

September 30, 2019

LOGO


Franklin Liberty High Yield Corporate ETF		Franklin Liberty Senior Loan ETF
Franklin Liberty International Aggregate Bond ETF

Franklin Templeton Investments



Contents

Semiannual Report

Economic and Market Overview			2
Franklin Liberty High Yield Corporate ETF			3
Franklin Liberty International Aggregate Bond ETF			9
Franklin Liberty Senior Loan ETF			14
Financial Highlights and Statements of Investments			20
Financial Statements			31
Notes to Financial Statements			35
Tax Information			43
Shareholder Information			44

Visitfranklintempleton.com/investor/investments-and-solutions/investment-options/etfs/for fund updates and documents.


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



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SEMIANNUAL REPORT

Economic and Market Overview

The U.S. economy expanded during the six months ended September 30, 2019. However, the economy moderated in 2019’s second and third quarters, due partly to weakness in inventory and business investment. The manufacturing sector expanded during the period’s first four months, but contracted in August and September 2019. The services sector continued to expand throughout the period, although the rate of expansion slowed in September. The unemployment rate decreased from 3.8% in March 2019 to 3.5% atperiod-end.¹ The annual inflation rate, as measured by the Consumer Price Index, decreased from 1.9% in March 2019 to 1.7% atperiod-end.¹

The10-year Treasury yield, which moves inversely to its price, decreased during the period. The yield rose briefly at the start of the period, but fell to multi-year lows in 2019’s third quarter. Political uncertainties in the U.S. (including the impeachment inquiry into President Donald Trump), geopolitical tensions in certain regions, slower domestic and global economic growth, the Fed’s more accommodative monetary policy stance and expectations of more stimulus from global central banks weighed on the Treasury yield at certain points during the period. However, several better-than-expected U.S. economic reports and periods of optimism about a potential U.S.-China trade deal supported the yield. The10-year yield persistently fell below certain short-term yields due to weaker economic data, escalating U.S. trade tensions with China and other trading partners, and the Fed’s recent monetary policy easing. Overall, the10-year Treasury yield declined from 2.41% at the beginning of the period to 1.68% atperiod-end.

International bonds outside the U.S. generally registered strong gains over the review period, as yields in many government bond markets fell to record low levels, amid heightened concerns among investors about global economic growth and trade tensions. Many central banks eased monetary policy, with the U.S. Fed cutting interest rates in July and September, and the European Central Bank responding with a package of easing measures in September, including a rate cut and restarting its bond purchases. The overall impact of global headwinds on the U.S. economy remained unclear, and while data showed that overall growth had slowed in the second quarter, activity remained robust in many areas, particularly consumer spending. The eurozone economy, however, appeared more vulnerable to global trade concerns than the U.S., and activity in many member countries showed what we considered signs of faltering. We believe Germany, in particular, appeared to be close to a recession.

1. Source: Bureau of Labor Statistics



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Franklin Liberty High Yield Corporate ETF

This semiannual report for Franklin Liberty High Yield Corporate ETF covers the period ended September 30, 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

During thesix-month period, the Fund posted cumulative total returns of +4.54% based on market price and +4.43% based on net asset value (NAV). In comparison, the ICE BofAML U.S. High Yield Constrained Index posted a +3.82% total return for the same period.¹ 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

9/30/19

	% of Total Net Assets
Media		11.2%
Containers & Packaging		9.4%
Oil, Gas & Consumable Fuels		7.9%
Hotels Restaurants & Leisure		5.5%
Health Care Providers & Services		5.1%
Machinery		4.7%
Entertainment		4.6%
Chemicals		4.3%
Energy Equipment & Services		3.4%
Pharmaceuticals		3.2%

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. 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 21.



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FRANKLIN LIBERTY HIGH YIELD CORPORATE ETF

Portfolio Composition

Based on Total Net Assets as of 9/30/19

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 generally performed well during the period under review, as the benchmark ICE BofAML U.S. High Yield Constrained Index returned +3.82%. However, performance was decidedly more mixed compared to the first three months of the calendar year, as the market experienced meaningful trade policy-related sell-offs in May and early August. Market drivers included slowing economic data, increasingly accommodative central banks and headlines about global trade disputes. Standard & Poor’s 500^® Index corporate earnings were weaker compared to the prior year, but corporate credit metrics remained broadly stable.

U.S. Treasury yields generally declined across the curve and lower government bond yields globally likely helped to support demand for high-yield corporate bonds during the period, particularly for higher rated segments of the market, which notably outperformed. Based on Bloomberg Barclays High Yield indexes, BB rated bonds led the way with a return of +5.17%, compared to respective returns of +4.35% and-1.47% for the B and CCC rated segments. Based on the ICE BofAML U.S. High Yield Index, high-yield spreads narrowed very slightly from 405 basis points (bps) to 402 bps, levels that belied market volatility more accurately captured by a low of 364 bps inmid-May and a high of 470 bps in early June. From an industry standpoint, all major groups posted positive total returns during the period with the exception of energy, which underperformed by a notable margin as volatile oil prices and geopolitical tensions in the Middle East presented headwinds for the segment. Despite positive absolute results, health care, metals and mining, and chemicals all lagged the broader high-yield market as well. In contrast, the retail, financial services and housing industries posted strong performance during the period.


Top 10 Fund Holdings

9/30/19

Company *Sector/Industry*	% of Total Net Assets
FHLB, 1.602%, 10/01/2019 Bank		3.3%
CCO Holdings LLC / CCO Holdings Capital Corp., senior bond, senior bond, 144A, 5.375%, 6/01/2029 Media		2.4%
Cheniere Energy Partners LP, senior bond, 144A, senior secured note, first lien, 5.25%, 10/01/2025 Oil, Gas & Consumable Fuels		2.3%
CSC Holdings LLC, senior bond, 144A, 6.625%, 10/15/2025 Media		2.1%
Altice Luxembourg SA, first lien, 144A, 10.50%, 5/15/2027 Media		1.5%
Performance Food Group Inc., senior note, 144A, 5.50%, 10/15/2027 Food & Staples Retailing		1.4%
Trivium Packaging Finance BV, senior secured note, 144A, 5.50%, 8/15/2026 Containers & Packaging		1.4%
Ardagh Packaging Finance PLC / Ardagh Holdings USA Inc., senior note, 144A, 6.00%, 2/15/2025 Containers & Packaging		1.4%
CyrusOne LP / CyrusOne Finance Corp., senior note, 5.00%, 3/15/2024 Equity Real Estate Investment Trusts		1.3%
Terex Corp., senior note, 144A, 5.625%, 2/01/25 Machinery		1.3%

The Fund outperformed its benchmark as well as its Morningstar High Yield category average both in market price and NAV terms.

During the period, the primary driver of relative performance was the overall allocation effect, which saw meaningful contributions from both quality and sector contexts. Specifically, the Fund benefited from its overweight exposures to BBB and BB rated bonds, which outperformed, along with its concurrent underweight to CCC bonds, which notably underperformed during the period. The quality trend also generally applied to the Fund’s sector performance, where the Fund benefited significantly from its underweight to the energy sector. The Fund’s overweight to the building industry also contributed as it outperformed the broader market for the period.



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FRANKLIN LIBERTY HIGH YIELD CORPORATE ETF

In contrast, security selection detracted from relative results overall, with energy representing a major detractor as select holdings experienced bouts of distress during the period. For similar reasons, the packaging sector also detracted based on a select holding which struggled due to idiosyncratic factors. We continued to see positive selection effects across several sectors, particularly in the media/cable and health care sectors.

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

CFA^® is a trademark owned by CFA Institute.



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FRANKLIN LIBERTY HIGH YIELD CORPORATE ETF

Performance Summary as of September 30, 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 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 9/30/19¹

Cumulative Total Return²

Average Annual Total Return²

Based on
NAV³

Based on

market price⁴

Based on
NAV³

Based on

market price⁴

6-Month⁷

+4.43%

+4.54%

+4.43%

+4.54%

1-Year

+8.28%

+8.73%

+8.28%

+8.73%

Since Inception (5/30/18)

+11.82%

+12.28%

+8.71%

+9.05%



	30-Day Standardized Yield⁶
Distribution Rate⁵	(with fee waiver)		(without fee waiver)
2.16%		4.97%		4.09%

See page 7 for Performance Summary footnotes.



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FRANKLIN LIBERTY HIGH YIELD CORPORATE ETF

PERFORMANCE SUMMARY

Distributions(4/1/19–9/30/19)

Net Investment
Income

$0.827208

Total Annual Operating Expenses⁸



With Fee Waiver	Without Fee Waiver
0.40%		1.54%

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’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 September dividend and the NAV per share on 9/30/19.

7. Total return information is based on net asset values calculated for shareholder transactions. Certain adjustments were made to the net assets of the Fund at 9/30/19 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.



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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 4/1/19		Ending Account Value 9/30/19		Expenses Paid During Period 4/1/19–9/30/19^1,2		Ending Account Value 9/30/19		Expenses Paid During Period 4/1/19–9/30/19^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	1,044.30	$	2.04	$	1,023.00	$	2.02		0.40	%

2. Reflects expenses after fee waivers and expense reimbursements.



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Franklin Liberty International Aggregate Bond ETF

This semiannual report for Franklin Liberty International Aggregate Bond ETF covers the period ended September 30, 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

During thesix-month period, the Fund posted cumulative total returns of +5.09% based on market price and +5.02% based on net asset value (NAV). In comparison, the Bloomberg Barclays Global Aggregateex-USD Index posted a +2.82% total return for the same period.¹ You can find more of the Fund’s performance data in the Performance Summary beginning on page 11.

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 the investment manager’s outlook on changing market, economic and political conditions.


Geographic Composition

Based on Total Net Assets as of 9/30/19

Europe			57.7%
Asia			16.8%
Supranationals			8.6%
North America			4.8%
Australia & New Zealand			2.2%
Latin America & Caribbean			1.0%
Middle East & Africa			0.5%
Short-Term Investments & Other Net Assets			8.4%

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 changes in the issuer’s fundamentals, or when we believe another security is a more attractive investment opportunity.

Manager’s Discussion

The Fund’s security selection and sector allocation contributed to relative returns, boosted mainly by positioning in Italian and Spanish government bonds as well as selection among corporate financial issues.

The Fund’s duration and yield-curve positioning also helped relative results, largely due to overweight duration exposure to eurozone and Polish bonds. An underweight duration

1. 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 25.



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FRANKLIN LIBERTY INTERNATIONAL AGGREGATE BOND ETF

Portfolio Composition

Based on Total Net Assets as of 9/30/19

position in U.K. issues taken early in the period had a positive impact, although a similar stance in Canadian debt detracted from relative performance.

The Fund’s currency positioning further added to relative returns, partly due to underweight exposures to the Chinese renminbi and South Korean won. However, an overweight allocation to the Polish zloty weighed on relative results.

In contrast, the Fund’s local market allocation slightly detracted from relative returns, largely as a result of an overweight exposure to the Polish market.

Effective October 15, 2019, after period-end, David Zahn, CFA, and Patrick Klein, Ph.D., were added asco-lead portfolio managers, joining currentco-lead portfolio managers John Beck and Sonal Desai, Ph.D.

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

LOGO

John Beck

Co-Lead Portfolio Manager

LOGO

Sonal Desai, Ph.D.

Co-Lead Portfolio Manager



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FRANKLIN LIBERTY INTERNATIONAL AGGREGATE BOND ETF

Performance Summary as of September 30, 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 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 9/30/19¹

Cumulative Total Return²

Average Annual Total Return²

Based on
NAV³

Based on
market price⁴

Based on
NAV³

Based on
market price⁴

6-Month

+5.02%

+5.09%

+5.02%

+5.09%

1-Year

+7.08%

+7.85%

+7.08%

+7.85%

Since Inception (5/30/18)

+5.02%

+5.22%

+3.73%

+3.88%



	30-Day Standardized Yield⁶
Distribution Rate⁵	(with fee waiver)		(without fee waiver)
2.15%		0.46%		-2.02%

See page 12 for Performance Summary footnotes.



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FRANKLIN LIBERTY INTERNATIONAL AGGREGATE BOND ETF

PERFORMANCE SUMMARY

Distributions(4/1/19–9/30/19)

Net Investment
Income

$0.089110

Total Annual Operating Expenses⁷



With Fee Waiver	Without Fee Waiver
0.25%		2.32%

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’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 September dividend and the NAV per share on 9/30/19.



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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 4/1/19		Ending Account Value 9/30/19		Expenses Paid During Period 4/1/19–9/30/19^1,2		Ending Account Value 9/30/19		Expenses Paid During Period 4/1/19–9/30/19^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	1,050.20	$	1.64	$	1,023.40	$	1.62		0.32	%³

2. Reflects expenses after fee waivers and expense reimbursements.

3. Effective 08/01/19, the investment manager has contractually agreed to waive or assume certain expenses so that expenses (including acquired fund fees and expenses) do not exceed 0.25% (other than certain non-routine expenses) until 07/31/20. Prior to 08/01/19, the fund was capped at 0.35%. The table above is calculated at a rate of 0.32%, which reflects a blended rate for the period noted.



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Franklin Liberty Senior Loan ETF

This semiannual report for Franklin Liberty Senior Loan ETF covers the period ended September 30, 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

During thesix-month period, the Fund posted cumulative total returns of +2.93% based on market price and +2.65% based on net asset value (NAV). In comparison, the Fund’s primary benchmark, the S&P/LSTA U.S. Leveraged Loan 100 Index, posted a +2.93% total return for the same period.¹ The Fund’s additional benchmark, the Custom Franklin Senior Loan Index, posted a +3.75% total return for the same period.¹ You can find more of the Fund’s performance data in the Performance Summary beginning on page 17.

Investment Strategy

The Fund invests predominantly in income-producing senior floating interest rate corporateloans 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 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


Top 10 Sectors/Industries

9/30/19

	% of Total Net Assets
Diversified Financial Services		14.6%
Media		10.6%
Hotels Restaurants & Leisure		8.7%
Health Care Providers & Services		7.3%
Pharmaceuticals		6.2%
Containers & Packaging		4.9%
Commercial Services & Supplies		4.5%
Food & Staples Retailing		4.2%
Food Products		4.1%
Chemicals		3.8%

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

Expectations of rate cuts that would decrease income generation helped to limit principal gains during the period, as retail investors continued to redeem from loan mutual funds. However, healthy demand from collateralized loan obligations remained, which helped to support loan prices amid periodic bouts of volatility. While the market experienced an increase in new issuance to finance mergers and acquisitions, there were also large paydowns that helped to keep net new issuance relatively lower, which balanced out technical conditions.

During the period, the Fund underperformed its primary benchmark, the S&P/LSTA U.S. Leveraged Loan 100 Index, and its additional benchmark, the Custom Franklin Senior Loan Index. The Fund continued to invest in loans from the largest obligors in the loan market, which outperformed the

1. Source: FactSet. The Custom Franklin Senior Loan Index comprises the Subset Index of Top 50 Obligors in Credit Suisse Leveraged Loan Index, which 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. They do 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 28.



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FRANKLIN LIBERTY SENIOR LOAN ETF


Portfolio Composition

Based on Total Net Assets as of 9/30/19

LOGO

broader market during the period. These larger loans had higher weightings in the custom benchmark, which led to higher returns compared to our primary benchmark, as well as the portfolio. Higher-rated loans outperformed within the broader loan market, but within the Fund’s investable universe, middle-tier loans outperformed. During the period, upper-tier loans in the custom index returned +3.74%, middle-tier loans returned +3.77% and lower-tier loans returned +6.55%. As of 9/30/19, the Fund had approximately 76% of its loan portfolio in the upper tier and 23% in the middle tier, compared to the custom index, which had 44% in the upper tier and 54% in the middle tier.

Among individual positions, US Foods (a foodservice distributor) contributed to performance as it reported solid results during the period and completed an acquisition with an incremental term loan that attracted strong demand. The term loan of CSC Holdings (a broadband and communications provider) also contributed to performance as the company reported solid results during the period and the company was able to refinance a portion of its debt. However, two specialty pharmaceutical companies, Endo International and Mallinckrodt International detracted from performance during the period. The term loans traded lower amid uncertainty of future liability obligations due to ongoing litigation concerning the opioid crisis.


Top 10 Fund Holdings

9/30/19

Company Sector/Industry	% of Total Net Assets
FHLB , 1.602%, 10/01/2019 Banks		9.1%
DaVita, Inc., Term Loan B, 4.431%, 8/12/2026 Health Care Providers & Services		2.8%
Nexstar Broadcasting, Inc., TermB-4 Loan, 4.807%, 9/18/2026 Media		2.8%
CommScope, Inc., Initial Term Loans, 5.362%, 4/06/2026 Communications Equipment		2.8%
Panther BF Aggregator 2 LP, Initial Dollar Term Loan, 5.612%, 4/30/2026 Auto Components		2.8%
Asurion LLC, ReplacementB-6 Term Loans, 5.112%, 11/03/2023 Diversified Financial Services		2.7%
Berry Global, Inc., Term Q Loan, 4.299%, Term U Loans, 4.549%, 7/01/2026 Containers & Packaging		2.7%
Grifols Worldwide Operations USA, Inc., Tranche B Term Loan, 4.196%, 1/31/2025 Pharmaceuticals		2.7%
Global Medical Response, Inc., New Term Loans, 6.652%, 3/14/2025 Health Care Providers & Services		2.6%
CSC Holdings, LLC, March 2017 Incremental Term Loans, 4.277%, 7/17/2025 Media		2.6%



franklintempleton.com	Semiannual Report	15

FRANKLIN LIBERTY SENIOR LOAN ETF

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

LOGO

Reema Agarwal, CFA

Co-Lead Portfolio Manager


		Justin Ma, CFA Co-Lead Portfolio Manager
		Margaret Chiu, CFA, FRM

		Portfolio Management Team



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FRANKLIN LIBERTY SENIOR LOAN ETF

Performance Summary as of September 30, 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 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 9/30/19¹

Cumulative Total Return²

Average Annual Total Return²

Based on
NAV³

Based on
market price⁴

Based on
NAV³

Based on
market price⁴

6-Month

+2.65%

+2.93%

+2.65%

+2.93%

1-Year

+3.22%

+3.42%

+3.22%

+3.42%

Since Inception (5/30/18)

+5.15%

+5.60%

+3.83%

+4.16%



	30-Day Standardized Yield⁶
Distribution Rate⁵	(with fee waiver)		(without fee waiver)
3.75%		4.27%		3.78%

See page 18 for Performance Summary footnotes.



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FRANKLIN LIBERTY SENIOR LOAN ETF

PERFORMANCE SUMMARY

Distributions(4/1/19–9/30/19)

Net Investment

Income

$0.611602

Total Annual Operating Expenses⁷



With Fee Waiver	Without Fee Waiver
0.45%		1.00%

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’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 September dividend and the NAV per share on 9/30/19.



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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 4/1/19		Ending Account Value 9/30/19		Expenses Paid During Period 4/1/19–9/30/19^1,2		Ending Account Value 9/30/19		Expenses Paid During Period 4/1/19–9/30/19^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	1,026.50	$	2.28	$	1,022.75	$	2.28		0.45	%

2. Reflects expenses after fee waivers and expense reimbursements.



franklintempleton.com	Semiannual Report	19

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin Liberty High Yield Corporate ETF



	Six Months Ended September 30, 2019 (unaudited)			Year Ended March 31, 2019^a

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

Net asset value, beginning of period	$	25.45		$	25.00


Income from investment operations^b:

Net investment income^c		0.72			1.21

Net realized and unrealized gains (losses)		0.45			0.49


Total from investment operations		1.17			1.70


Less distributions from:


Net investment income		(0.83	)		(1.23	)

Net realized gains		—			(0.02	)


Total distributions		(0.83	)		(1.25	)


Net asset value, end of period	$	25.79		$	25.45


Total return^d		4.43%			7.07%

Ratios to average net assets^e

Expenses before waiver and payments by affiliates		1.58%			1.54%

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

Net investment income		5.70%			5.80%

Supplemental data

Net assets, end of period (000’s)		$30,944			$10,181

Portfolio turnover rate^f		21.24%			23.57%

Portfolio turnover rate excluding portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely or in part for cash^f,g		21.24%			—%

^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.

^gEffective September 30, 2019.



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FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, September 30, 2019 (unaudited)

Franklin Liberty High Yield Corporate ETF



		Country		Principal Amount*		Value
	Corporate Bonds & Notes 94.3%
	Automobiles & Components 1.0%
a	Adient US LLC, senior secured note, 144A, 7.00%, 5/15/26		United States		300,000	$	314,250

	Banks 1.0%
	Royal Bank of Scotland Group PLC, sub. note, 5.125%, 5/28/24		United Kingdom		300,000		320,039

	Capital Goods 11.6%
a	BBA US Holdings Inc., senior note, 144A, 5.375%, 5/01/26		United States		300,000		315,750
a	Beacon Roofing Supply Inc., senior note, 144A, 4.875%, 11/01/25		United States		400,000		393,440
a	Cloud Crane LLC, secured note, second lien, 144A, 10.125%, 8/01/24		United States		300,000		321,750
a	Cornerstone Building Brands Inc., senior secured note, 144A, 8.00%, 4/15/26		United States		400,000		395,000
	H&E Equipment Services Inc., senior note, 5.625%, 9/01/25		United States		300,000		309,945
a	Harsco Corp., senior note, 144A, 5.75%, 7/31/27		United States		300,000		313,140
a	Jeld-Wen Inc., senior note, 144A, 4.625%, 12/15/25		United States		400,000		402,512
a	Manitowoc Co. Inc., secured note, second lien, 144A, 9.00%, 4/01/26		United States		400,000		393,000
a	Terex Corp., senior note, 144A, 5.625%, 2/01/25		United States		400,000		411,000
a	TransDigm Inc., senior secured note, 144A, 6.25%, 3/15/26		United States		300,000		322,875


							3,578,412

	Commercial & Professional Services 1.3%
	United Rentals North America Inc., senior bond, 5.875%, 9/15/26		United States		300,000		321,015
a	West Corp., senior note, 144A, 8.50%, 10/15/25		United States		100,000		80,875


							401,890

	Consumer Durables & Apparel 1.1%
a	Ashton Woods USA LLC / Ashton Woods Finance Co., senior note, 144A, 9.875%, 4/01/27		United States		300,000		329,250

	Consumer Services 5.5%
a	24 Hour Holdings III LLC, senior note, 144A, 8.00%, 6/01/22		United States		400,000		334,500
	CONTRA CB DOWNEY FIN D, 10.50%, 2/15/23		United States		100,000		1,250
a	Downstream Development Authority of Quapaw Tribe of Oklahoma, secured note, 144A, 10.50%, 2/15/23		United States		100,000		107,000
a	Golden Nugget Inc., senior note, 144A, 6.75%, 10/15/24		United States		300,000		306,000
a	Stars Group Holdings BV / Stars Group USCo-Borrower LLC, senior note, 144A, 7.00%, 7/15/26		Netherlands		300,000		320,250
a	Studio City Finance Ltd., senior note, 144A, 7.25%, 2/11/24		Macau		300,000		316,500
a	Wynn Las Vegas LLC / Wynn Las Vegas Capital Corp., senior bond, 144A, 5.50%, 3/01/25		United States		300,000		316,590


							1,702,090

	Diversified Financials 2.1%
a	HAT Holdings I LLC / HAT Holdings II LLC, senior note, 144A, 5.25%, 7/15/24		United States		300,000		316,125
	Springleaf Finance Corp., senior note, 6.625%, 1/15/28		United States		300,000		323,340


							639,465

	Energy 10.0%
a	Archrock Partners LP / Archrock Partners Finance Corp., senior note, 144A, 6.875%, 4/01/27		United States		300,000		319,863
a	California Resources Corp., secured note, second lien, 144A, 8.00%, 12/15/22		United States		100,000		50,000
	Cheniere Corpus Christi Holdings LLC, senior secured note, first lien, 5.875%, 3/31/25		United States		300,000		334,539
	Cheniere Energy Partners LP,
	^a senior bond, 144A, 4.50%, 10/01/29		United States		400,000		410,500
	senior secured note, first lien, 5.25%, 10/01/25		United States		300,000		312,375
	Chesapeake Energy Corp., senior note, 7.50%, 10/01/26		United States		400,000		274,000
	Crestwood Midstream Partners LP / Crestwood Midstream Finance Corp., senior note, 5.75%, 4/01/25		United States		300,000		309,750
	Martin Midstream Partners LP / Martin Midstream Finance Corp., senior note, 7.25%, 2/15/21		United States		100,000		93,376



franklintempleton.com	Semiannual Report	21

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin Liberty High Yield Corporate ETF(continued)



		Country		Principal Amount*		Value
	Corporate Bonds & Notes (continued)
	Energy (continued)
	Nabors Industries Inc., senior note, 5.50%, 1/15/23		United States		400,000	$	331,000
	QEP Resources Inc., senior note, 5.625%, 3/01/26		United States		400,000		347,120
	Sunoco LP / Sunoco Finance Corp., senior note, 5.50%, 2/15/26		United States		300,000		313,851


							3,096,374

	Food & Staples Retailing 1.4%
a	Performance Food Group Inc., senior note, 144A, 5.50%, 10/15/27		United States		400,000		423,000

	Food, Beverage & Tobacco 1.0%
	B&G Foods Inc., senior note, 5.25%, 4/01/25		United States		300,000		307,500

	Health Care Equipment & Services 5.4%
a	CHS / Community Health Systems Inc., senior note, 144A, 8.125%, 6/30/24		United States		400,000		320,000
	DaVita Inc., senior bond, 5.125%, 7/15/24		United States		100,000		101,875
	HCA Inc., senior bond, 5.875%, 2/01/29		United States		300,000		337,344
a	Hill-Rom Holdings Inc., senior note, 144A, 4.375%, 9/15/27		United States		100,000		102,485
a	MEDNAX Inc., senior note, 144A, 6.25%, 1/15/27		United States		400,000		397,972
a,b	Polaris Intermediate Corp., senior note, 144A, PIK, 8.50%, 12/01/22		United States		100,000		85,500
	Tenet Healthcare Corp., senior note, 8.125%, 4/01/22		United States		300,000		325,590


							1,670,766

	Materials 17.1%
a	Ardagh Packaging Finance PLC / Ardagh Holdings USA Inc., senior note, 144A, 6.00%, 2/15/25		Ireland		400,000		419,240
a	Cemex Finance LLC, senior secured note, first lien, 144A, 6.00%, 4/01/24		United States		200,000		205,800
a	Element Solutions Inc., senior note, 144A, 5.875%, 12/01/25		United States		300,000		314,969
a	First Quantum Minerals Ltd., senior note, 144A, 7.25%, 4/01/23		Zambia		400,000		396,000
a	Mauser Packaging Solutions Holding Co., senior note, 144A, 7.25%, 4/15/25		United States		400,000		379,620
a	Neon Holdings Inc., senior note, 144A, 10.125%, 4/01/26		United States		300,000		303,000
a	Novelis Corp., senior bond, 144A, 5.875%, 9/30/26		United States		300,000		315,360
a	Owens-Brockway Glass Container Inc., senior note, 144A, 5.875%, 8/15/23		United States		300,000		319,500
a	Plastipak Holdings Inc., senior note, 144A, 6.25%, 10/15/25		United States		400,000		332,000
a	Rain CII Carbon LLC / CII Carbon Corp., senior note, second lien, 144A, 7.25%, 4/01/25		United States		400,000		384,000
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		400,000		410,500
a	Sealed Air Corp., senior bond, 144A, 5.25%, 4/01/23		United States		300,000		321,000
	Steel Dynamics Inc., senior bond, 5.00%, 12/15/26		United States		100,000		105,000
a	SunCoke Energy Partners LP / SunCoke Energy Partners Finance Corp., senior note, 144A, 7.50%, 6/15/25		United States		400,000		357,500
a	TPC Group Inc., secured note, 144A, 10.50%, 8/01/24		United States		300,000		314,250
a	Trivium Packaging Finance BV, senior secured note, 144A, 5.50%, 8/15/26		Netherlands		400,000		421,480


							5,299,219

	Media & Entertainment 18.2%
a	Altice Luxembourg SA, first lien, 144A, 10.50%, 5/15/27		Luxembourg		400,000		451,800
	AMC Entertainment Holdings Inc., senior sub. note, 5.875%, 11/15/26		United States		400,000		365,000
	CCO Holdings LLC / CCO Holdings Capital Corp.,
	senior bond, 5.125%, 2/15/23		United States		400,000		407,500
	^a senior bond, 144A, 5.375%, 6/01/29		United States		300,000		320,250
a	Clear Channel Worldwide Holdings Inc., first lien, senior secured note, 144A, 5.125%, 8/15/27		United States		300,000		313,305
a	CSC Holdings LLC, senior bond, 144A, 6.625%, 10/15/25		United States		600,000		643,680
a	Diamond Sports Group LLC / Diamond Sports Finance Co., senior note, 144A, 6.625%, 8/15/27		United States		300,000		312,000
	DISH DBS Corp., senior note, 5.875%, 7/15/22		United States		300,000		313,125
a	iHeartCommunications Inc., senior secured note, first lien, 144A, 5.25%, 8/15/27		United States		300,000		312,750
	Netflix Inc., senior bond, 5.875%, 2/15/25		United States		300,000		330,192
a	Nexstar Escrow Corp., senior note, 144A, 5.625%, 7/15/27		United States		300,000		315,000
a	Scripps Escrow Inc., senior note, 144A, 5.875%, 7/15/27		United States		400,000		407,500
a	Sirius XM Radio Inc., senior note, 144A, 4.625%, 7/15/24		United States		300,000		311,799



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FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin Liberty High Yield Corporate ETF(continued)



		Country		Principal Amount*		Value
	Corporate Bonds & Notes (continued)
	Media & Entertainment (continued)
a	Univision Communications Inc., senior secured note, first lien, 144A, 5.125%, 5/15/23		United States		400,000	$	403,250
a	WMG Acquisition Corp., secured note, first lien, 144A, 5.00%, 8/01/23		United States		400,000		410,500


							5,617,651

	Pharmaceuticals, Biotechnology & Life Sciences 3.2%
a,b	Eagle Holding Co. II LLC, senior note, 144A, PIK, 7.625%, 5/15/22		United States		400,000		404,000
a	Horizon Pharma USA Inc., senior note, 144A, 5.50%, 8/01/27		United States		200,000		208,500
a	Par Pharmaceutical Inc., senior secured note, 144A, 7.50%, 4/01/27		United States		400,000		367,500


							980,000

	Real Estate 1.3%
	CyrusOne LP / CyrusOne Finance Corp., senior note, 5.00%, 3/15/24		United States		400,000		415,000

	Retailing 2.5%
	Murphy Oil USA Inc., senior bond, 4.75%, 9/15/29		United States		400,000		410,000
a	Party City Holdings Inc., senior note, 144A, 6.625%, 8/01/26		United States		400,000		397,000


							807,000

	Semiconductors & Semiconductor Equipment 1.1%
a	Amkor Technology Inc., senior note, 144A, 6.625%, 9/15/27		United States		300,000		328,500

	Technology Hardware & Equipment 2.5%
a	CommScope Technologies LLC, senior bond, 144A, 6.00%, 6/15/25		United States		400,000		364,000
a	Dell International LLC / EMC Corp., senior note, 144A, 7.125%, 6/15/24		United States		100,000		105,525
a	Tempo Acquisition LLC / Tempo Acquisition Finance Corp., senior note, 144A, 6.75%, 6/01/25		United States		300,000		310,500


							780,025

	Telecommunication Services 2.4%
a	Block Communications Inc., senior note, 144A, 6.875%, 2/15/25		United States		100,000		104,750
	Sprint Corp., senior note, 7.625%, 2/15/25		United States		300,000		330,750
	T-Mobile USA Inc., senior note, 5.125%, 4/15/25		United States		300,000		311,625


							747,125

	Transportation 1.0%
a	DAE Funding LLC, senior note, 144A, 5.75%, 11/15/23		United States		300,000		316,005

	Utilities 3.6%
	Calpine Corp., senior note, 5.375%, 1/15/23		United States		400,000		406,000
	Clearway Energy Operating LLC, senior bond, 5.00%, 9/15/26		United States		400,000		411,000
	Talen Energy Supply LLC, senior note, 6.50%, 6/01/25		United States		400,000		306,000


							1,123,000

	Total Investments before Short Term Investments (Cost $29,137,118)						29,196,561

	Short Term Investments 3.3%
	U.S. Government & Agency Securities (Cost $1,020,000) 3.3%
c	FHLB, 10/01/19				1,020,000		1,020,000

	Total Investments (Cost $30,157,118) 97.6%						30,216,561
	Other Assets, less Liabilities 2.4%						727,870

	Net Assets 100.0%					$	30,944,431

See abbreviations on page 42.

*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 September 30, 2019, the aggregate value of these securities was $20,421,460, representing 66.0% of net assets.

^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. \| Semiannual Report	23

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin Liberty International Aggregate Bond ETF



	Six Months Ended September 30, 2019 (unaudited)			Year Ended March 31, 2019^a

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

Net asset value, beginning of period	$	24.56		$	25.00


Income from investment operations^b:

Net investment income^c		0.14			0.39

Net realized and unrealized gains (losses)		1.09			(0.40	)


Total from investment operations		1.23			(0.01	)


Less distributions from net investment income		(0.09	)		(0.43	)


Net asset value, end of period	$	25.70		$	24.56


Total return^d		5.02%			0.00%

Ratios to average net assets^e

Expenses before waiver and payments by affiliates		3.17%			2.32%

Expenses net of waiver and payments by affiliates		0.32%			0.35%

Net investment income		1.13%			1.91%

Supplemental data

Net assets, end of period (000’s)		$5,140			$4,912

Portfolio turnover rate^f		63.79%			50.32%

Portfolio turnover rate excluding portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely or in part for cash^f,g		63.79%			—%

^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.

^gEffective September 30, 2019.



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

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, September 30, 2019 (unaudited)

Franklin Liberty International Aggregate Bond ETF



		Principal Amount*				Value
	Foreign Government and Agency Securities 81.5%
	Australia 2.2%
a	New South Wales Treasury Corp., senior bond, Reg S, 3.00%, 5/20/27		50,000		AUD	$	37,961
a,b	Queensland Treasury Corp., senior bond, Reg S, 144A, 3.25%, 8/21/29		50,000		AUD		39,145
a	Western Australian Treasury Corp., senior note, 26, Reg S, 3.00%, 10/21/26		50,000		AUD		37,637


							114,743

	Belgium 3.1%
a	Government of Belgium, Reg S, 1.25%, 4/22/33		125,000		EUR		160,868

	Canada 4.8%
	Government of Canada, 2.75%, 6/01/22		320,000		CAD		249,302

	Finland 1.9%
a	Government of Finland, Reg S, .375%, 9/15/20		90,000		EUR		99,059

	France 5.5%
	Government of France,
	^aReg S, 1.00%, 11/25/25		200,000		EUR		238,886
	^a,esenior note, Reg S, 0.00%, 5/25/22		40,000		EUR		44,453


							283,339

	Germany 10.2%
	Government of Germany,
	^aReg S, 1.50%, 9/04/22		140,000		EUR		163,137
	^aReg S, 5.50%, 1/04/31		30,000		EUR		55,830
	^a,eStrip, Reg S, 0.00%, 10/08/21		80,000		EUR		88,594
	KFW, senior note, 2.05%, 2/16/26		20,000,000		JPY		216,201


							523,762

	Indonesia 0.7%
	Indonesia Treasury Bond, senior bond, 8.25%, 5/15/36		500,000,000		IDR		36,799

	Ireland 3.6%
a	Government of Ireland, Reg S, 1.50%, 5/15/50		140,000		EUR		183,129

	Italy 5.0%
	Italy Treasury Bond,
	senior bond, 1.25%, 12/01/26		150,000		EUR		172,320
	^a,bsenior bond, Reg S, 144A, 4.00%, 2/01/37		55,000		EUR		82,868


							255,188

	Japan 16.1%
	Development Bank of Japan, senior bond, 2.30%, 3/19/26		20,000,000		JPY		216,153
	Government of Japan,
	senior bond, 1.00%, 12/20/35		40,000,000		JPY		425,381
	senior bond, 1.50%, 3/20/33		16,500,000		JPY		184,458


							825,992

	Mexico 1.0%
	Government of Mexico, M, 7.50%, 6/03/27		10,000	^c	MXN		52,660

	Netherlands 2.6%
a,b	Government of Netherlands, senior bond, Reg S,144A, .50%, 1/15/40		40,000		EUR		49,104
a	Government of the Netherlands, Reg S, .50%, 7/15/26		70,000		EUR		82,192


							131,296

	Poland 2.3%
	Government of Poland,
	2.50%, 7/25/27		200,000		PLN		51,886
	5.75%, 4/25/29		200,000		PLN		66,967


							118,853



franklintempleton.com	Semiannual Report	25

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin Liberty International Aggregate Bond ETF(continued)



		Principal Amount*			Value
	Foreign Government and Agency Securities (continued)
	South Africa 0.5%
	Government of South Africa, senior bond, 7.00%, 2/28/31		500,000	ZAR	$	27,956

	Spain 4.9%
	Government of Spain,
	^a,bsenior bond, Reg S, 144A, 1.85%, 7/30/35		100,000	EUR		130,137
	^a,bsenior bond, Reg S,144A, 2.70%, 10/31/48		80,000	EUR		123,313


						253,450

d	Supranational 8.6%
	Asian Development Bank, senior bond,339-00-1, 2.35%, 6/21/27		20,000,000	JPY		225,798
a	European Investment Bank, senior note, Reg S, 1.90%, 1/26/26		20,000,000	JPY		213,929


						439,727

	United Kingdom 8.5%
	United Kingdom Treasury Bond,
	^aReg S, 1.75%, 9/07/37		60,000	GBP		84,573
	^aReg S, 2.25%, 9/07/23		120,000	GBP		158,919
	^aReg S, 3.50%, 7/22/68		10,000	GBP		25,101
	^aReg S, 4.25%, 12/07/46		35,000	GBP		76,791
	^aReg S, 4.75%, 12/07/30		50,000	GBP		89,991


						435,375

	Total Foreign Government and Agency Securities (Cost $4,132,476)					4,191,498

	Corporate Bonds & Notes 10.1%
	Belgium 1.4%
a	Anheuser-Busch InBev SA/NV, senior note, Reg S, 1.50%, 3/17/25		60,000	EUR		70,518

	Czech Republic 2.2%
a	Energo-Pro AS, senior note, Reg S, 4.00%, 12/07/22		100,000	EUR		112,625

	Denmark 2.0%
a	Nordea Kredit Realkreditaktieselskab, secured bond, Reg S, 1.00%, 10/01/50		350,000	DKK		51,581
a	Nykredit Realkredit AS, secured bond, Reg S, 1.00%, 10/01/50		350,000	DKK		51,555


						103,136

	Germany 2.2%
a	Aroundtown SA, senior note, Reg S, 1.625%, 1/31/28		100,000	EUR		112,970

	Romania 2.3%
a	Globalworth Real Estate Investments Ltd., senior note, Reg S, 3.00%, 3/29/25		100,000	EUR		119,163

	Total Corporate Bonds & Notes (Cost $494,713)					518,412

	Total Investments (Cost $4,627,189) 91.6%					4,709,910
	Other Assets, less Liabilities 8.4%					430,089

	Net Assets 100.0%				$	5,139,999

See abbreviations on page 42.

*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 September 30, 2019, the aggregate value of these securities was $424,567, representing 8.3% 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.



26	Semiannual 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



	Six Months Ended September 30, 2019 (unaudited)			Year Ended March 31, 2019^a

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

Net asset value, beginning of period	$	24.85		$	25.00


Income from investment operations^b:

Net investment income^c		0.52			0.81

Net realized and unrealized gains (losses)		0.13			(0.21	)


Total from investment operations		0.65			0.60


Less distributions from net investment income		(0.61	)		(0.75	)


Net asset value, end of period	$	24.89		$	24.85


Total return^d		2.65%			2.44%

Ratios to average net assets^e

Expenses before waiver and payments by affiliates		0.96%			1.00%

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

Net investment income		4.21%			3.90%

Supplemental data

Net assets, end of period (000’s)		$57,256			$57,165

Portfolio turnover rate^f		24.63%			10.62%

Portfolio turnover rate excluding portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely or in part for cash^f,g		24.63%			—%

^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.

^gEffective September 30, 2019.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Semiannual Report	27

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, September 30, 2019 (unaudited)

Franklin Liberty Senior Loan ETF



		Country		Principal Amount*		Value
a,b	Senior Floating Rate Interests 80.7%
	Airlines 2.2%
	American Airlines, Inc., 2018 Replacement Term Loans, 4.061%,(3-month USD LIBOR + 1.75%), 6/27/25		United States		1,267,200	$	1,255,320

	Application Software 1.5%
c	SS&C European Holdings Sarl, TermB-4 Loans, TBD,(1-month USD LIBOR + 2.25%), 4/16/25		Luxembourg		215,718		216,886
	SS&C Technologies Inc., Term B-3 Loans, TBD, (1-month USD LIBOR + 2.25%), 4/16/25		United States		326,586		328,355
	SS&C Technologies Inc., Term B-5 Loan, TBD, (1-month USD LIBOR + 2.25%), 4/16/25		United States		296,965		298,636


							843,877

	Auto Parts & Equipment 2.8%
	Panther BF Aggregator 2 LP, Initial Dollar Term Loan, 5.612%,(1-month USD LIBOR + 3.500%), 4/30/26		United States		1,600,000		1,591,333

	Broadcasting 6.0%
	Diamond Sports Group, LLC, Term Loan, 5.3%,(1-month USD LIBOR + 3.250%), 8/24/26		United States		711,752		716,534
	Gray Television, Inc., Term C Loan, 4.831%,(3-month USD LIBOR + 2.50%), 1/02/26		United States		297,750		299,318
c,d	Nexstar Broadcasting, Inc., TBD, TermB-4 Loan, 4.807%,(3-month USD LIBOR + 2.750%), 9/18/26		United States		1,600,000		1,609,834
	Sinclair Television Group Inc., Tranche B Term Loans, 4.37%,(1-month USD LIBOR + 2.25%), 1/03/24		United States		827,241		831,108


							3,456,794

	Cable & Satellite 4.6%
	Charter Communications Operating, LLC, Term B Loan, 4.33%,(3-month USD LIBOR + 2.00%), 4/30/25		United States		1,135,188		1,143,250
	CSC Holdings, LLC, March 2017 Incremental Term Loans, 4.277%,(1-month USD LIBOR + 2.25%), 7/17/25		United States		1,474,946		1,475,676


							2,618,926

	Casinos & Gaming 4.3%
	Aristocrat Technologies, Inc., TermB-3 Loans, 4.027%,(3-month USD LIBOR + 1.75%), 10/19/24		United States		1,103,020		1,108,104
	Caesars Resort Collection, LLC, Term B Loans, 4.862%,(1-month USD LIBOR + 2.75%), 12/22/24		United States		1,391,625		1,384,294


							2,492,398

	Commodity Chemicals 1.8%
	Univar Inc., Initial Term Loans, 4.112%,(1-month USD LIBOR + 2.25%), 7/01/24		United States		1,049,095		1,053,497

	Communications Equipment 2.8%
	CommScope, Inc., Initial Term Loans, 5.362%,(1-month USD LIBOR + 3.25%), 4/04/26		United States		1,600,000		1,597,320

	Data Processing & Outsourced Services 2.0%
	West Corporation, Term B Loans, 6.112%,(1-month USD LIBOR + 4.00%), 10/10/24		United States		1,293,418		1,155,453

	Food Distributors 4.2%
	Aramark Corporation, U.S. TermB-3 Loan, 4.079%,(3-month USD LIBOR + 1.75%), 3/11/25		United States		997,750		1,001,492
	U.S. Foods, Inc., Initial Term Loans, 4.112%,(1-month USD LIBOR + 2.00%), 6/27/23		United States		1,399,909		1,406,179


							2,407,671

	Health Care Distributors 0.3%
	Mallinckrodt International Finance SA & Mallinckrodt CB LLC, 2017 Term B Loans, 5.079%,(3-month USD LIBOR + 2.75%), 9/24/24		Luxembourg		191,527		146,438



28	Semiannual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin Liberty Senior Loan ETF(continued)



		Country		Principal Amount*		Value
a,b	Senior Floating Rate Interests (continued)
	Health Care Facilities 1.7%
	HCA Inc., Term Loan B11, 4.079%,(3-month USD LIBOR + 1.75%), 3/18/23		United States		947,778	$	951,859

	Health Care Services 5.4%
	Air Medical Group Holdings Inc., 2018 New Term Loans, 6.362%,(1-month USD LIBOR + 4.25%), 3/14/25		United States		1,588,270		1,490,989
	DaVita, Inc., Term Loan B, 4.431%,(1-month USD LIBOR + 2.250%), 8/12/26		United States		1,600,000		1,610,777


							3,101,766

	Hotels, Resorts & Cruise Lines 1.7%
	Hilton Worldwide Finance, LLC, Refinanced SeriesB-2 Term Loans, 3.768%,1-month USD LIBOR + 1.750%, 6/17/26		United States		985,592		992,642

	Other Diversified Financial Services 4.3%
	Asurion LLC, ReplacementB-6 Term Loans, 5.112%,(1-month USD LIBOR + 3.00%), 11/03/23		United States		1,538,800		1,546,334
	Trans Union, LLC, 2017 Replacement TermA-2 Loans, 4.152%,(1-month USD LIBOR + 1.50%), 8/09/22		United States		916,199		916,389


							2,462,723

	Packaged Foods & Meats 4.1%
	JBS USA Lux S.A., New Term Loans, 4.612%,(1-month USD LIBOR + 2.50%), 5/01/26		United States		971,953		977,927
	Post Holdings Inc., Series A Incremental Term Loans, 4.04%,(1-month USD LIBOR + 2.00%), 5/24/24		United States		1,345,777		1,351,139


							2,329,066

	Paper Packaging 4.9%
	Berry Global, Inc.,
	Term Q Loan, 2.25%, 10/01/22		United States		1,227,840		1,234,688
	Term U Loan, 2.50%, 7/01/26		United States		299,250		301,035
	Reynolds Group Holdings Inc., U.S. Term Loans, 4.862%,(1-month USD LIBOR + 2.75%), 2/05/23		United States		1,265,465		1,268,924


							2,804,647

	Personal Products 2.5%
c	Sunshine Luxembourg VII SARL, Facility B1 Commitments, TBD, 9/25/26		Luxembourg		1,400,000		1,407,657

	Pharmaceuticals 6.2%
	Bausch Health Companies Inc., Initial Term Loans , 5.411%,(1-month USD LIBOR + 3.00%), 6/02/25		United States		1,447,423		1,454,919
	Endo Luxembourg Finance Co. I S.A R.L. and Endo LLC, Initial Term Loans, 6.375%,(1-month USD LIBOR + 4.25%), 4/29/24		United States		650,836		593,563
	Grifols Worldwide Operations USA, Inc., Tranche B Term Loan, 4.196%,(1-week USD LIBOR + 2.25%), 1/31/25		United States		1,513,146		1,522,367


							3,570,849

	Research & Consulting Services 2.4%
	Nielsen Finance LLC,Class B-4 Term Loans, 4.042%,(1-month USD LIBOR + 2.00%), 10/04/23		United States		1,368,621		1,369,965

	Restaurants 2.6%
	1011778 B.C. Unlimited Liability Company, TermB-3 Loan, 4.362%,(1-month USD LIBOR + 2.25%), 2/17/24		Canada		1,465,732		1,472,292

	Security & Alarm Services 2.5%
c	Prime Security Services Borrower, LLC, TermB-1 Facility, TBD,(1-month USD LIBOR + 3.25%), 9/12/26		United States		1,440,385		1,434,534



franklintempleton.com	Semiannual Report	29

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin Liberty Senior Loan ETF(continued)



		Country		Principal Amount*		Value
a,b	Senior Floating Rate Interests (continued)
	Specialized Consumer Services 0.5%
	Sabre GLBL Inc., 2018 Other Term B Loans, 4.112%,(1-month USD LIBOR + 2.00%), 2/22/24		United States		265,940	$	267,311

	Specialty Chemicals 1.9%
	Axalta Coating Systems US Holdings Inc., TermB-3 Dollar Loan, 4.079%,(3-month USD LIBOR + 1.75%), 6/01/24		United States		1,115,426		1,117,604

	Specialty Stores 3.5%
	Harbor Freight Tools USA, Inc., Refinancing Loans, 4.612%,(1-month USD LIBOR + 2.50%), 8/19/23		United States		917,198		893,504
	Michaels Stores, Inc., 2018 New Replacement Term B Loan, 4.594%,(1-month USD LIBOR + 2.50%), 1/28/23		United States		1,142,041		1,117,773


							2,011,277

	Systems Software 1.9%
	Go Daddy Operating Company, LLC, TrancheB-1 Term Loans, 4.112%,(1-month USD LIBOR + 2.00%), 2/15/24		United States		1,101,838		1,104,975

	Technology Hardware, Storage & Peripherals 2.1%
	Western Digital Corporation, U.S. TermB-4 Loan, 4.011%,(3-month USD LIBOR + 1.75%), 4/29/23		United States		1,177,308		1,176,674


	Total Floating Rate Loans (Cost $46,353,428)						46,194,868

	Asset-Backed Securities 10.3%
e,f	AMMC CLO 15 Ltd.,2014-15A, CRR, 144A, 4.603%, 01/15/2032		United States		1,000,000		987,106
e,f	Atrium XV, 15A, C 144A, 4.459%, 01/23/2031		United States		1,000,000		987,212
e,f	BlueMountain CLO Ltd.,2018-3A, C, 144A, 4.475%, 10/25/2030		United States		1,000,000		978,113
e,f	Dryden 45 Senior Loan Fund,2016-45A, CR, 144A, 4.50%, 10/15/2030		United States		1,000,000		988,276
e,f	Harbor Park CLO Ltd., 1A, C, 144A, 4.377%, 01/20/2031		United States		1,000,000		980,552
e,f	LCM XVIII LP, 2018A, CR, 144A, 4.13%, 04/20/2031		United States		1,000,000		966,344

	Total Asset-Backed Securities (Cost $5,996,875)						5,887,603

	Total Investments before Short Term Investments (Cost $52,350,303)						52,082,471

	Short Term Investments 9.1%
	U.S. Government & Agency Securities (Cost $5,220,000) 9.1%
g	FHLB,10/01/19		United States		5,220,000		5,220,000

	Total Investments (Cost $57,570,303) 100.1%						57,302,471
	Other Assets, less Liabilities (0.1)%						(46,895	)

	Net Assets 100.0%					$	57,255,576

See abbreviations on page 42.

*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 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.

^dA portion or all of the security purchased on a delayed delivery basis. Note 1(c)

^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 September 30, 2019, the aggregate value of these securities was $5,887,603, representing 10.3% 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.



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

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Assets and Liabilities

September 30, 2019 (unaudited)



	Franklin Liberty High Yield Corporate ETF		Franklin Liberty International Aggregate Bond ETF		Franklin Liberty Senior Loan ETF
Assets:
Investments in securities:
Cost – Unaffiliated issuers	$	30,157,118	$	4,627,189	$	57,570,303

Value – Unaffiliated issuers	$	30,216,561	$	4,709,910	$	57,302,471
Cash		559,175		69,760		1,127,857
Foreign currency, at value (cost $–, $347,985 and $–, respectively)		—		343,913		—
Receivables:
Investment securities sold		—		—		606,645
Interest		542,769		30,530		156,824
Affiliates		4,798		17,673		—

Total assets		31,323,303		5,171,786		59,193,797

Liabilities:
Payables:
Investment securities purchased		290,948		—		1,697,625
Management fees		—		—		4,781
Transfer agent fees		6,500		6,500		6,500
Distributions to shareholders		55,466		—		178,664
Custodian fees		2,505		2,657		24,802
Professional fees		12,528		12,532		12,542
Reports to shareholders		1,796		1,609		1,700
Registration and filing fees		3,255		2,753		5,448
Accrued expenses and other liabilities		5,874		5,736		6,159

Total liabilities		378,872		31,787		1,938,221

Net assets, at value	$	30,944,431	$	5,139,999	$	57,255,576

Net assets consist of:
Paid-in capital	$	30,820,579	$	5,005,000	$	57,928,461
Total distributable earnings (loss)		123,852		134,999		(672,885	)

Net assets, at value	$	30,944,431	$	5,139,999	$	57,255,576

Shares outstanding		1,200,000		200,000		2,300,000

Net asset value per share	$	25.79	$	25.70	$	24.89



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

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Operations

for the six months ended September 30, 2019 (unaudited)



	Franklin Liberty High Yield Corporate ETF			Franklin Liberty International Aggregate Bond ETF			Franklin Liberty Senior Loan ETF
Investment income:
Interest: (net of foreign taxes)^a
Unaffiliated issuers	$	333,186		$	36,549		$	1,336,414

Total investment income		333,186			36,549			1,336,414

Expenses:
Management fees (Note 3a)		34,116			11,390			186,529
Transfer agent fees		7,799			7,799			7,799
Custodian fees		2,448			2,727			24,924
Reports to shareholders		3,201			3,201			3,201
Registration and filing fees		2,332			2,230			2,775
Professional fees		27,640			44,932			38,007
Trustees’ fees and expenses		628			298			3,506
Other		7,980			7,679			8,139

Total expenses		86,144			80,256			274,880
Expenses waived/paid by affiliates (Note 3c)		(64,310	)		(72,260	)		(145,744	)

Net expenses		21,834			7,996			129,136

Net investment income		311,352			28,553			1,207,278

Realized and unrealized gains (losses):
Net realized gain (loss) from:
Investments:
Unaffiliated issuers		109,197			146,487			(170,889	)
Foreign currency transactions		—			(41,835	)		—

Net realized gain (loss)		109,197			104,652			(170,889	)

Net change in unrealized appreciation (depreciation) on:
Investments:
Unaffiliated issuers		(74,577	)		113,304			460,799
Translation of other assets and liabilities denominated in foreign currencies		—			(436	)		—

Net change in unrealized appreciation (depreciation)		(74,577	)		112,868			460,799

Net realized and unrealized gain (loss)		34,620			217,520			289,910

Net increase (decrease) in net assets resulting from operations	$	345,972		$	246,073		$	1,497,188


^aForeign taxes withheld on interest	$	—	$	31	$	—



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FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Changes in Net Assets



	Franklin Liberty High Yield Corporate ETF						Franklin Liberty International Aggregate Bond ETF

	Six Months Ended September 30, 2019 (unaudited)			Year Ended March 31, 2019^a			Six Months Ended September 30, 2019 (unaudited)			Year Ended March 31, 2019^a
Increase (decrease) in net assets:
Operations:
Net investment income	$	311,352		$	484,624		$	28,553		$	77,976
Net realized gain (loss)		109,197			28,881			104,652			(49,575	)
Net change in unrealized appreciation (depreciation)		(74,577	)		134,020			112,868			(34,953	)

Net increase (decrease) in net assets resulting from operations		345,972			647,525			246,073			(6,552	)

Distributions to shareholders		(367,861	)		(501,784	)		(17,822	)		(86,700	)

Capital share transactions: (Note 2)		20,785,579			10,035,000			—			5,005,000

Net increase (decrease) in net assets		20,763,690			10,180,741			228,251			4,911,748
Net assets:
Beginning of period		10,180,741			—			4,911,748			—

End of period	$	30,944,431		$	10,180,741		$	5,139,999		$	4,911,748

^aFor the period May 30, 2018 (commencement of operations) to March 31, 2019.



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FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Changes in Net Assets(continued)



	Franklin Liberty Senior Loan ETF

	Six Months Ended September 30, 2019 (unaudited)			Year Ended March 31, 2019^a
Increase (decrease) in net assets:
Operations:
Net investment income	$	1,207,278		$	1,318,709
Net realized gain (loss)		(170,889	)		(52,149	)
Net change in unrealized appreciation (depreciation)		460,799			(728,631	)

Net increase (decrease) in net assets resulting from operations		1,497,188			537,929

Distributions to shareholders		(1,406,685	)		(1,301,317	)

Capital share transactions: (Note 2)		—			57,928,461

Net increase (decrease) in net assets		90,503			57,165,073
Net assets:
Beginning of period		57,165,073			—

End of period	$	57,255,576		$	57,165,073

^aFor the period May 30, 2018 (commencement of operations) to March 31, 2019.



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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-nine 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 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

Securities denominated in a foreign currency are converted into their U.S. dollar equivalent at the foreign exchange rate in effect at 4 p.m. Eastern time on the date that the values of the foreign debt securities are determined.

b. Foreign Currency Translation



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FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS

1. Organization and Significant Accounting Policies(continued)

b. Foreign Currency Translation(continued)

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.

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. On July 27, 2017, the United Kingdom’s Financial Conduct Authority announced its intention to cease sustaining LIBOR after 2021. There remains uncertainty regarding the future utilization of LIBOR and the nature of any replacement rate. As such, the potential effect of a transition away from LIBOR on the Fund or the Fund’s investments that use or may use a floating rate based on LIBOR cannot yet be determined.

e. Income and Deferred Taxes

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.

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 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



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FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS

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

At September 30, 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

	Six Months Ended September 30, 2019				Year Ended March 31, 2019^a

	Shares		Amount		Shares		Amount
Shares sold		800,000	$	20,785,579		400,000	$	10,035,000

Net increase (decrease)		800,000	$	20,785,579		400,000	$	10,035,000
	��

	Franklin Liberty International Aggregate Bond ETF

	Six Months Ended September 30, 2019^b				Year Ended March 31, 2019^a

	Shares		Amount		Shares		Amount
Shares sold		—	$	—		200,000	$	5,005,000

Net increase (decrease)		—	$	—		200,000	$	5,005,000



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FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS

2. Shares of Beneficial Interest(continued)


	Franklin Liberty Senior Loan ETF

	Six Months Ended September 30, 2019^b				Year Ended March 31, 2019^a

	Shares		Amount		Shares		Amount
Shares sold		—	$	—		2,300,000	$	57,928,461

Net increase (decrease)		—	$	—		2,300,000	$	57,928,461

^aFor the period May 30, 2018 (commencement of operations) to March 31, 2019.

^bDuring the period ended September 30, 2019, there were no transactions of the Fund’s shares.

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

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



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FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS

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

For the period ended September 30, 2019, each Fund’s annualized effective investment management fee rate based on daily net assets was as follows:



		Annualized Fee Rate
Franklin Liberty High Yield Corporate ETF		0.625%
Franklin Liberty International Aggregate Bond ETF		0.450%
Franklin Liberty Senior Loan ETF		0.650%

Effective March 1, 2019, under a subadvisory agreement, FTIML, an affiliate of Advisers, 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, 2020. 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 0.25% 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, 2020. Prior to August 1, 2019, expenses (including acquired fund fees and expenses) for Franklin Liberty International Aggregate Bond ETF were limited to 0.35% based on the average net assets of the fund. 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 September 30, 2019, the shares of the Funds were owned by the following entities:



Funds	Shares		Percentage of Outstanding Shares^a
Franklin Liberty High Yield Corporate ETF
Franklin Moderate Allocation Fund		334,505		27.9%
Franklin LifeSmart^™ 2020 – 2055 Retirement Target Funds		62,218		5.2%
Franklin 529 Portfolios		576,433		48.0%

		973,156		81.1%

Franklin Liberty International Aggregate Bond ETF
Franklin Resources Inc.		110,000		55.0%

Franklin Liberty Senior Loan ETF
Franklin Total Return Fund		914,900		39.8%
Franklin Floating Rate Master Trust		1,093,000		47.5%

		2,007,900		87.3%

^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, if any. At March 31, 2019, the capital loss carryforwards were as follows:



	Franklin Liberty Senior Loan ETF
Capital loss carryforwards:
Long term	$	—
Short term		52,758

Total capital loss carryforwards	$	52,758

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 September 30, 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	$	30,172,626		$	4,653,372		$	57,583,593

Unrealized appreciation	$	385,513		$	108,210		$	160,544
Unrealized depreciation		(341,578	)		(51,672	)		(441,666	)

Net unrealized appreciation (depreciation)	$	43,935		$	56,538		$	(281,122	)

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.



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FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS

5. Investment Transactions

Purchases and sales of investments (excluding short term securities andin-kind transactions, if any) for the period ended September 30, 2019, were as follows:



	Franklin Liberty High Yield Corporate ETF		Franklin Liberty International Aggregate Bond ETF		Franklin Liberty Senior Loan ETF
Purchases	$	21,915,471	$	3,429,883	$	13,212,962
Sales	$	2,694,254	$	2,990,731	$	14,479,147

6. Credit Risk

At September 30, 2019, Franklin Liberty High Yield ETF, Franklin Liberty International Aggregate Bond ETF, and Franklin Liberty Senoir Loan ETF had 97.76%, 2.98%, and 80.51%, 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 period ended September 30, 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)



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FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS

9. Fair Value Measurements(continued)

The input levels are not necessarily an indication of the risk or liquidity associated with financial instruments at that level.

At September 30, 2019, all of the Funds’ investments in financial instruments carried at fair value were valued using Level 2 inputs.

10. 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

Tax Information (unaudited)

The following table provides a detailed analysis of foreign tax paid, foreign source income, and foreign source qualified dividends as reported by the Funds to shareholders of record.



Fund	Foreign Tax Paid Per Share		Foreign Source Income Per Share		Foreign Source Qualified Dividends Per Share
Franklin Liberty International Aggregate Bond ETF	$	0.0086	$	0.5143	$	—

Bymid-February 2020, shareholders will receive Form1099-DIV which will include their share of taxes paid and foreign source income distributed during the calendar year 2019. The Foreign Source Income reported on Form1099-DIV has not been adjusted for the rate differential on foreign source qualified dividend income. 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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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



44	Semiannual 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.

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 13(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 Baghat and he is “independent” as defined under the relevant Securities and Exchange Commission Rules and Releases.

Item 4.

Principal Accountant Fees and Services. N/A

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 for Closed-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 Vivek Pai, 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 Vivek Pai, 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		November 29, 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		November 29, 2019

By		/s/ Vivek Pai
		Vivek Pai
		Chief Financial Officer and Chief Accounting Officer
Date		November 29, 2019

Semiannual 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 S 11/19